A large and rapidly-expanding global financial bubble now exists around conventional energy assets. So says RethinkX, whose report says we need to change our whole mindset about how we generate power.
Green tech is at a tipping point where it could take off explosively – just like the smartphone did. And, just like the smartphone, it could bring a revolution in how we do much more than just create energy.
This bubble has in part been created by mainstream energy analyses that have, for the last decade, significantly underestimated the levelized cost of electricity (LCOE) from conventional power plants because they assume these plants will be able to successfully sell the same quantity of electricity each year from now through 2040 and beyond.
This assumption has been false for at least ten years. The rates at which conventional power plants are utilized will continue to decrease as competitive pressure from near-zero marginal cost solar photovoltaic and onshore wind power, and battery energy storage continue to grow exponentially worldwide.
BBC reported on the rapid emergence of green tech:
After years of development, it is becoming much cheaper and more effective. The world’s best solar power schemes are now the “cheapest source of electricity in history”, the International Energy Agency (IEA), which analyses energy markets, said this month.
“Renewable energy is likely to penetrate the energy system more quickly than any fuel ever seen in history,” predicts Spencer Dale, the chief economist at the oil giant BP…
Meanwhile, Boris Johnson, the UK Prime Minister, announced a £160m investment that he said would see offshore wind producing more than half of current UK electricity demand by 2030.
That’s right. An investment of just £160m in offshore wind when the new nuclear plant at Hinkley Point, in Somerset, is costing at least £22.5 billion…
In days of Gigabyte Internet, people in charge of energy in British Columbia are promoting the equivalent of 20th century dial-up internet access.
Admitting a multi-billion mistake is never easy for politicians. Changing course now takes wisdom and nerve, qualities lacking on the government benches at the Legislature.
But the right thing is for government to protect citizens, not the handful feeding at the Site C trough.
Categories: Site C