NewEnergyNews: GUEST LEAD POST: WHY THE MARKET UNDER-VALUES NEW ENERGY AND OVER-VALUES ENERGY COMMODITIES

NewEnergyNews

Gleanings from the web and the world, condensed for convenience, illustrated for enlightenment, arranged for impact...

December 7, 1941: Time to forgive but not forget.

The challenge now: To make every day Earth Day.

YESTERDAY

  • TODAY’S STUDY: How To Balance Competing Solar Interests
  • QUICK NEWS, December 6: Sliver Of Hope? Al Gore In Climate Change Meet With Donald Trump; The Opportunity In New Energy; Google Seizing New Energy Opportunity
  • THE DAY BEFORE

  • TODAY’S STUDY: A Way For New Energy To Meet Peak Demand
  • QUICK NEWS, December 5: Trial Of The Century Coming On Climate; The Wind-Solar Synergy; The Still Rising Sales Of Cars With Plugs
  • THE DAY BEFORE THE DAY BEFORE

  • Weekend Video: Trump Truth And Climate Change
  • Weekend Video: The Daily Show Talks Pipeline Politics
  • Weekend Video: Beyond Polar Bears – The Real Science Of Climate Change
  • THE DAY BEFORE THAT

  • FRIDAY WORLD HEADLINE-Aussie Farmers Worrying About Climate Change
  • FRIDAY WORLD HEADLINE-The Climate Change Solution At Hand, Part 1
  • FRIDAY WORLD HEADLINE-The Climate Change Solution At Hand, Part 2
  • FRIDAY WORLD HEADLINE-New Energy And Historic Buildings In Europe
  • AND THE DAY BEFORE THAT

    THINGS-TO-THINK-ABOUT THURSDAY, December 1:

  • TTTA Thursday-First Daughter Ivanka May Fight For Climate
  • TTTA Thursday-Low Profile High Power Ocean Wind Energy
  • TTTA Thursday-A Visionary Solar Power Plant
  • TTTA Thursday-EVs Have A Growth Path
  • THE LAST DAY UP HERE

  • ORIGINAL REPORTING: How The Clean Power Plan Drove The Utility Power Mix Transition
  • ORIGINAL REPORTING: How Utilities Are Answering The Distributed Energy Resources Challenge
  • ORIGINAL REPORTING: Looking At New Rates To Unlock The Utility Of The Future
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    Anne B. Butterfield of Daily Camera and Huffington Post, f is an occasional contributor to NewEnergyNews

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    Some of Anne's contributions:

  • Another Tipping Point: US Coal Supply Decline So Real Even West Virginia Concurs (REPORT), November 26, 2013
  • SOLAR FOR ME BUT NOT FOR THEE ~ Xcel's Push to Undermine Rooftop Solar, September 20, 2013
  • NEW BILLS AND NEW BIRDS in Colorado's recent session, May 20, 2013
  • Lies, damned lies and politicians (October 8, 2012)
  • Colorado's Elegant Solution to Fracking (April 23, 2012)
  • Shale Gas: From Geologic Bubble to Economic Bubble (March 15, 2012)
  • Taken for granted no more (February 5, 2012)
  • The Republican clown car circus (January 6, 2012)
  • Twenty-Somethings of Colorado With Skin in the Game (November 22, 2011)
  • Occupy, Xcel, and the Mother of All Cliffs (October 31, 2011)
  • Boulder Can Own Its Power With Distributed Generation (June 7, 2011)
  • The Plunging Cost of Renewables and Boulder's Energy Future (April 19, 2011)
  • Paddling Down the River Denial (January 12, 2011)
  • The Fox (News) That Jumped the Shark (December 16, 2010)
  • Click here for an archive of Butterfield columns

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    Some details about NewEnergyNews and the man behind the curtain: Herman K. Trabish, Agua Dulce, CA., Doctor with my hands, Writer with my head, Student of New Energy and Human Experience with my heart

    email: herman@NewEnergyNews.net

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      A tip of the NewEnergyNews cap to Phillip Garcia for crucial assistance in the design implementation of this site. Thanks, Phillip.

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    Pay a visit to the HARRY BOYKOFF page at Basketball Reference, sponsored by NewEnergyNews and Oil In Their Blood.

  • ---------------
  • TODAY AT NewEnergyNews, December 7:

  • ORIGINAL REPORTING: Turning Distributed Energy From Threat To Opportunity
  • ORIGINAL REPORTING: Solar Policy Action Heats Up
  • ORIGINAL REPORTING: Maine’s Almost Solar Policy Breakthrough

    Monday, January 26, 2015

    GUEST LEAD POST: WHY THE MARKET UNDER-VALUES NEW ENERGY AND OVER-VALUES ENERGY COMMODITIES

    Fossilized Asset Allocation Still Mis-Pricing Energy And Risk

    Hazel Henderson, January 22, 2015 (Ethical Markets via Seeking Alpha)

    Summary

    -All energy sectors are still treated alike, dominated by fossil fuels. Energy assets based on commodities: coal, oil, gas, uranium are confused and conflated with energy technology stocks.

    -Energy technology stocks in solar, wind, batteries, efficiency, hydro, ocean-based and other emerging technologies are drowned out in this oil-dominated model.

    -Oil price volatility will continue as a wild card and presents an opportunity to address today’s massive mispricing of energy and risk.

    -Disaggregation and granulation of data is needed while splitting fossilized asset allocation buckets into newer energy commodities and energy technology classifications.

    As I wrote in 2008 in Updating Fossilized Asset-Allocation Classes, all energy sectors are still treated alike, dominated by fossil fuels. This means that energy assets based on commodities: coal, oil, gas, uranium are confused and conflated with energy technology stocks in solar, wind, batteries, efficiency, hydro, ocean-based and other emerging technologies which are drowned out in this oil-dominated model. Even as oil prices fluctuate wildly, dipping below $50 in January 2015, this commodity price volatility affects both other commodities' asset values as well as highly leveraged producers and refiners, since 16% of junk bonds are energy-related. While macroeconomic effects are very real and wildly divergent between countries and sectors, this focus is on data, models and metrics. Oil prices primarily affect and misprice the energy technology players whose sunk or securitized capital costs are now producing fuel from the sun's daily photons which are free.

    Oil price volatility will continue as a wild card in 2015 and presents an opportunity to address today's massive mispricing of energy and risk. Confusion and misallocation of investments in the energy sector now can only be clarified by further disaggregation and granulation of data while splitting fossilized asset allocation buckets into newer energy commodities andenergy technology classifications while including subsidies across all energy sectors.

    ● Energy commodities should be split from other commodities - particularly food affected by unsustainable land-based biofuels. Separate "buckets" are needed for fossil-based fuels: coal, oil, gas, uranium and mining with fossil fuel-producing equipment and refining companies also treated separately. Photon-based energy captured by solar, thermal, photovoltaics, wind, ocean turbines, wave power, all of which are free after sunk or securitized capital investment, are covered by Ethical Markets and in Bloomberg New Energy Finance. These sources should be broken out for comparison with fossilized fuels and nuclear fuel (uranium).

    ● Energy capital requirements for non-renewable fossil fuel production, refining and marketing should be broken out such as by Carbon Tracker. Photon-based renewable energy should be separately tracked and accounted for - so actual comparisons can be calculated.

    ● External costs of production of all energy sources should be calculated, such as by Trucost, and stated in shadow pricing: e.g., water use comparisons between nuclear, coal, oil and gas electricity versus solar thermal, PV, wind, hydro and low-head hydro. Safety costs should also be calculated.

    ● Energy efficiency and storage technologies need separate classification to capture the real price of waste and inefficiencies. These and subsidies, calculated by energy and exergy experts, waste up to 40% of possible productivity across entire economies in the USA, China, India, Canada, Russia and Eastern European countries.

    ● Sustainability Sector - Lastly, we need a new asset allocation bucket for the burgeoning green sectors and technologies we cover in our Green Transition Scoreboard®: solar, wind, geothermal, efficiency, storage, wave power, hydro, biofuels from seawater-grown algae, electric vehicles, green infrastructure, green bonds, yieldcos and fossil-free portfolios. Such private investments since 2007 currently total $5.7 trillion worldwide. We project that these current levels of $1 trillion or more annually can leave the fossil fuel era behind by 2020 as humanity enters the knowledge richer, cleaner, greener, more equitable societies of the Solar Age.

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