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from the power-surges-are-not-good-though dept.
Renewable power surges as pandemic scrambles global energy outlook, new report finds:
The pandemic-induced global economic meltdown has triggered a drop in energy demand and related carbon emissions that could transform how the world gets its energy -- even after the disease wanes, according to a report released today by the International Energy Agency (IEA)[*].
The precipitous drop in energy use is unparalleled back to the Great Depression of the 1930s. But not all energy sources are suffering equally. Efforts to shift toward renewable energy could be hastened, as fossil fuels, particularly coal and oil, have borne the brunt of the decline. Use of renewable energy, meanwhile has risen, thanks to new projects coming online, and the low cost of turning wind turbines or harvesting sunlight.
[*] Link to the IEA report.
Prices for fossil fuel have plunged, while the costs of maintaining those supply chains (eg. storage) remain constant.
(Score: 5, Interesting) by corey on Thursday April 30 2020, @10:19PM (3 children)
I'm waiting for an analysis to be done, and it's just a matter of time, into the greenhouse gas emissions reduction due to COVID-19. It's got to be pretty major, which is good for buying time while the world pivots away from high emissions.
But the bushfires here in Australia in January released as much carbon dioxide as the whole country does in a year.
I'd have expected renewable projects to also be negatively impacted given the wholesale energy price has dropped, which reduces the investment potential for them. But I guess it's worse for non renewables as they have to continue digging the ground and transporting the fuel, whereas renewables just keeps on generating for free. This is ignoring maintenance costs.
(Score: 2) by meustrus on Thursday April 30 2020, @10:30PM
Surely if you're building a new project, you have good reason to believe that there will be a market for it in the future? This pandemic isn't going to last forever.
Revenue from selling energy now has to pay current maintenance costs plus debt from building previous projects. Building new projects now really shouldn't be affected. I'm sure fossil fuel companies are still prospecting new reserves, too.
If there isn't at least one reference or primary source, it's not +1 Informative. Maybe the underused +1 Interesting?
(Score: 2) by richtopia on Friday May 01 2020, @05:08PM (1 child)
I went through the thought experiment on low priced oil and how it will impact solar/wind. I suspect it will actually be a boon long term with more expensive oil. What I suspect will occur:
1. Low priced oil kills some of the producers
2. Consolidation in the oil industry thanks to low prices; only the major players survive
3. The government is left picking up the slack on infrastructure costs
4. With production finally down and the number of producers hitting oligopoly territory, prices increase again
Ultimately, this variability and track towards a return to expensive oil provides an incentive to invest in alternatives. Similarly, with the stock market being more volatile than normal, investing in renewable energy infrastructure is a reliable alternative investment.
(Score: 2) by rondon on Saturday May 02 2020, @11:59AM
Interesting analysis, but much (most?) of the production is controlled by nation states. Did you factor that in?