Mon 11 Feb 2013
This is actually happening all around the world. During one day last year the Germans got all the power they used from renewable. All the old bullshit it turning into compost and will be forgotten.
Renewables cheaper than coal in Australia — a preview of things to come
Energy, politics, and more
I’m morbidly fascinated by the way conventional wisdom lags behind evidence, like the notion that renewable energy is expensive and fossil fuels cheap. In fact, there is a tectonic shift underway. Renewable energy prices are declining as technology improves, economies of scale kick in, financing mechanisms mature, and public policy begins to take some (inadequate) account of the negative externalities of fossil fuels.
Meanwhile, the cost of coal-fired electricity is heading up. It’s getting harder to finance coal plants in the face of competition from clean(er) energy, activist opposition, and the inevitability of some kind of carbon policy. Construction costs are rising. Transportation costs are rising. It’s getting harder to reach the coal that’s left in the ground. Etc.
The two lines — falling renewable energy costs and rising coal costs — are going to cross. It’ll happen everywhere eventually. According to a Bloomberg New Energy Finance (BNEF) analysis, it’s already happened down under: “Renewable energy now cheaper than new fossil fuels in Australia.”
Go there and read. More later.