Are you still under the misapprehension that solar power is more expensive than traditional sources of energy? Think again. Two really interesting articles this week underlines the reality.
Global solar dominance in sight as science trumps fossil fuels outlines the shift to solar around the world and the threat to traditional sources.
Some great quotes from this article include:
“More solar has been installed in the US in the past 18 months than in 30 years”
“We are entering a new order of global energy deflation that must ineluctably erode the viability of oil, gas and the fossil fuel nexus over time”
“A McKinsey study said the average cost of installed solar power in the US across all sectors has dropped to $2.59 from more than $6 a watt in 2010. It expects this fall to $2.30 by next year and $1.60 by 2020. This will put solar within “striking distance” of coal and gas, it said.”
“There are already 19 regional markets around the world that have achieved “grid parity”, meaning that PV solar panels can match or undercut local electricity prices without subsidy: California, Chile, Australia, Turkey, Israel, Germany, Japan, Italy, Spain and Greece, for residential power, as well as Mexico and China for industrial power.”
“Sheikh Ahmed-Zaki Yamani, the veteran Saudi oil minister, saw the writing on the wall long ago. “Thirty years from now there will be a huge amount of oil – and no buyers. Oil will be left in the ground. The Stone Age came to an end, not because we had a lack of stones, and the oil age will come to an end not because we have a lack of oil,”. Full details from The Telegraph here.
The Dawning Of The “Age Of Renewables” In The U.S. Is Now, Says Citigroup –
Great quotes underlining the inevitable, economically driven shift to renewables in the US include:
“The big decision-makers within the U.S. power industry are focused on securing low-cost power, fuel diversity and stable cash flows. As gas prices are rising and becoming more volatile, wind, solar and other renewable energy sources are more attractive.”
“In baseload generation, wind, biomass, geothermal, and hydro are becoming more economically attractive than baseload gas. Nuclear and coal are structurally disadvantaged because both technologies are viewed as uncompetitive on cost.”
“Given the large expected increase in demand for gas, offset by production gains, gas prices are expected to rise over the long term. As a result, the bar for renewables and other fuel sources to cross continues to rise, thus making it easier for alternatives to gain market share.”
“With a lower cost of capital, solar becomes much less expensive to finance and develop. In general, the growing financing market for solar has begun to recognize the strong cash flow and low risk profile that characterize solar projects.”‘