Showing posts with label prices. Show all posts
Showing posts with label prices. Show all posts

Wednesday, April 24, 2013

Cheap as Chips Renewables

“Three years ago, we thought wind and solar would be cheap as chips, and they’ve even gone below that,” said Michael Liebreich, chief executive officer of Bloomberg New Energy Finance.

The plummeting price of renewable energy has bankrupted more than two dozen wind and solar manufacturers, but BNEF analysts say these lower prices could lead to a tripling of investment in the sector over the next 17 years. The collapse of companies appears to be little more than natural attrition in a fast-evolving industry with an extremely bright future.

This is comparable with the car industry where just a handful of major players emerged from the hundreds of small companies that started up from the 1880s onwards.

While suppliers are suffering from falling prices, those lower prices are making more projects profitable to develop and advancing the day when renewables can rival coal and oil on cost. 

Bloomberg New Energy Finance predicts that renewables will account for half of all generation capacity by 2030. They predict that much of the future market growth will be driven by low-cost attractiveness rather than by the government subsidies that have supported renewables markets so far. As costs fall, countries are paring back subsidies.


News from the Transformation tab.  

Carbon trading in the Regional Greenhouse Gas Initiative (RGGI), involving nine states in the U.S. Northeast, has produced $1.6 billion in economic value added to the region. They have been so successful at reducing emissions that they plan to tighten the cap. 

Wednesday, April 4, 2012

Good news story

What's the good news story about climate change? For me, it is the exciting transition to a low-carbon economy.

The new low-carbon world will benefit billions of people by:
  • Reducing prices/costs – reducing the cost of energy as fossil fuel prices soar. California wind and solar generators have signed contracts to deliver electricity for less than the cost of gas generators. Solar PV is cheaper than diesel in places as sunny as Spain.
  • Security – homegrown renewable energy gives certainty of supply that can't be provided by importing fossil fuels.
And of course the switch to a low carbon economy will prevent the worst excesses of 'business as usual' climate change.

Right now I can add to my rooftop solar PV for about $4,000 and eliminate electricity bills. Forever. It will take four years to recoup the $4,000 investment, after that I get free electricity.

I look forward to the first plug-in hybrid cars. They will eliminate my petrol bills except for occasional long trips. My current Prius saves me $1,000 a year in fuel bills, compared with my previous car.

I also want to see solar and wind power in the poorest countries – funded by carbon offset programs. A quarter of the world's population does not have electricity at all. I want them to get clean power.

What's YOUR good news story?