NewEnergyNews: New Energy Drives Electricity Costs Lower/

NewEnergyNews

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

The challenge now: To make every day Earth Day.

YESTERDAY

THINGS-TO-THINK-ABOUT WEDNESDAY, August 23:

  • TTTA Wednesday-ORIGINAL REPORTING: The IRA And The New Energy Boom
  • TTTA Wednesday-ORIGINAL REPORTING: The IRA And the EV Revolution
  • THE DAY BEFORE

  • Weekend Video: Coming Ocean Current Collapse Could Up Climate Crisis
  • Weekend Video: Impacts Of The Atlantic Meridional Overturning Current Collapse
  • Weekend Video: More Facts On The AMOC
  • THE DAY BEFORE THE DAY BEFORE

    WEEKEND VIDEOS, July 15-16:

  • Weekend Video: The Truth About China And The Climate Crisis
  • Weekend Video: Florida Insurance At The Climate Crisis Storm’s Eye
  • Weekend Video: The 9-1-1 On Rooftop Solar
  • THE DAY BEFORE THAT

    WEEKEND VIDEOS, July 8-9:

  • Weekend Video: Bill Nye Science Guy On The Climate Crisis
  • Weekend Video: The Changes Causing The Crisis
  • Weekend Video: A “Massive Global Solar Boom” Now
  • THE LAST DAY UP HERE

    WEEKEND VIDEOS, July 1-2:

  • The Global New Energy Boom Accelerates
  • Ukraine Faces The Climate Crisis While Fighting To Survive
  • Texas Heat And Politics Of Denial
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    Founding Editor Herman K. Trabish

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    WEEKEND VIDEOS, June 17-18

  • Fixing The Power System
  • The Energy Storage Solution
  • New Energy Equity With Community Solar
  • Weekend Video: The Way Wind Can Help Win Wars
  • Weekend Video: New Support For Hydropower
  • 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.

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  • WEEKEND VIDEOS, August 24-26:
  • Happy One-Year Birthday, Inflation Reduction Act
  • The Virtual Power Plant Boom, Part 1
  • The Virtual Power Plant Boom, Part 2

    Friday, December 18, 2020

    New Energy Drives Electricity Costs Lower

    Renewables bring deflation to the energy sector; This year has offered a taste of what is to come in energy markets over the next decade

    Mark Lewis, December 15, 2020 (Financial Times)

    “…[T]he underlying reason for the astonishing transformation of renewables over the past decade from niche to mainstream competing head-to-head with fossil fuels is economic rather than environmental. Wind and solar are intrinsically deflationary, whereas fossil fuels are intrinsically inflationary. This has huge implications for the distribution of value across the global energy system over the next three decades…With wind and solar, there is no need to explore for reserves or drill a well to exploit them — you simply have to build the infrastructure in the right place to capture the energy that is already there and that is freely available once that has been built…

    …[T]he short-run marginal cost of production is zero…[From 2010-19, the average cost of utility-scale solar] installations fell by 80 per cent. Onshore and more recently offshore wind have also seen dramatic cost reductions…[With interest rates at historic lows, new projects have had] a very competitive overall cost of capital…[By contrast, the cheapest oil] reserves are exploited first, and as these are depleted more expensive sources of supply are tapped…[Technology can mitigate this somewhat but] the essential point is that the geology of petroleum production is inherently inflationary…

    …Equity investors [leading oil] are willing to accept a higher level of risk than lenders, but they expect higher returns…[But] with the policy imperatives of decarbonisation, reducing air pollution, and electrifying transport, the required rate of return for equity investors from oil is only going to increase…[2020] will be the first year ever in which wind and solar account for 100 per cent of the increase in global energy demand…[In 2019, they] accounted for only 34 per cent…[D]emand for fossil fuels will probably bounce back…[But as renewables’ market share rises,] the global energy system will be subjected to deflationary pressure…” click here for more

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