Power Struggle

A look at how the market and governments regulate power and how the green energy industry is disrupting it via The Economist article Wind and solar power are disrupting electricity systems

20170225_LDD001_0

Key takeaways:

  • Solar and wind only provide 7% of global energy consumption
  • Solar and wind are growing faster than any other energy type and prices are falling to competitive levels with fossil fuels
  • Requires significant investment over the next 10 years ($20 trillion)
  • WE NEED TO RETHINK HOW CLEAN ENERGY IS PRICED
    • Government subsidies have distorted the market
    • Green power is intermittent
    • Renewable costs are negligible or zero… aka meaning that the more used, the more depressed the prices and revenues
    • Markets do not determine energy company success and failure; politicians do
    • Small, modular power plants can help with intermittent supply as well as moving network power around more efficiently

Recommendation: 

Markets should reward those willing to use less electricity to balance the grid, just as they reward those who generate more of it.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s