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

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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.