In private emails, a number of people with expert economic knowledge exchange ideas about energy in BC. I get copies of some. This example, written by respected and retired economist Erik Andersen, refers to electricity markets in BC:
This is a presentation of what’s called a “coffin corner”, running out of flying speed and altitude at the same time.
I simply cannot understand people who are determined to avoid the evidence that we in North America have been both losing the financial capacity to be consumers at the same time electricity from renewable sources has been getting less and less costly, even to the point that GE does not see a commercial future for its large hydro generation machinery.
While the official annual rate of inflation has been steady at between 1-2%, the rate fails to include services related to governments that have been increasing at 5-7% per year for more than a decade.
In 2014, French economist Thomas Piketty made it incontestable that concentration of global wealth was the enemy of democracy. In other words, he feared loss of an economy that shared well enough to allow the normal open market forces to work at all.
Wealth concentration is the same as a monopoly over everything and, taken to its present extreme, makes more and more goods and services unaffordable for a growing proportion of the population.
The buy side of the domestic electricity market is the casualty, even though technology is developing to over come this condition, not just fast enough.
There is an important warning here for all of us. People who profess to believe in free markets do not want free markets. They want an economic system that works to their own advantage.
If that means using the power of the state to pick our pockets of cash, they’re OK with that, if the cash ends up in their pockets.
With citizens distracted by celebrity news and reporting designed to serve interests of the plutocrats, the schemes are successful with surprising ease.
In terms of divisions, power looks to continue to be a black hole; organic revenues may decline double digits and operating profits may fall by a quarter.
GE and Siemens: power pioneers flying too far from the sun, Financial Times, November 12, 2017:
The two industrial titans are struggling to cope with the disruption to their business models from wind and solar…
GE to shed 12,000 jobs worldwide as demand for traditional power plants drops, CBC, December 7, 2017
“This decision was painful but necessary for GE Power to respond to the disruption in the power market, which is driving significantly lower volumes in products and services,” said Russell Stokes, head of GE Power…