Increase in renewables push prices of conventional fuels down – Is it time to invest? Part II
In Part I, we explained how renewables will be driving 50% of global energy supply growth over the next 20 years, and whether or not there will need to be a limit.
Will renewable energy cost/benefit get better?
OPEC is trying to control demand and keep oil prices high by restricting output of hydrocarbon fuels. Nevertheless, overall the world output of hydrocarbon fuels is growing rapidly because of shale gas production in the USA. As electric vehicles take over, the oil requirement for transport will reduce.
A recent wind and solar report on the Energy Collective web site claims that as renewable capacity grows, returns will diminish, unless there are subsidies. Hence it will be difficult for renewables to overtake other sources.
In other words, the increase in renewable pushes the price of conventional fuels down, so the cost/benefit of renewable sources will diminish, particularly in countries where deployment of alternative sources is advanced, such as Germany, Ireland and the UK.
The cost/benefit calculation is better in the short term so it will be easier to justify an investment in renewable energy now. Also, making that investment allows an organisation to gain experience of managing new energy sources.
How can BAS Energy help?
BAS Energy can help you prepare an energy strategy. We can advise you on opportunities to deploy alternative and renewable energy sources. Our Openview energy procurement technology gives you full forecasting on your current and future energy prices.
We can help you analyse, plan and invest in new renewable or alternative energy sources on multiple sites. Also, we will work with you to factor-in cost savings and energy usage reductions.
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