Solar power became cheap. Why don't we use it more?
Natural gas prices fell over that time as well however, by a lesser amount--32 percent--due to the current boom in fracking rather than a trend that is more long-term like renewables, according to the report. In the past decade the price for developing coal power plants has been essentially the same.
The source of low prices
According to the paper, the low cost of solar panel installation in Mesa Az is because of processes known by the names of learning curves as well as the virtuous cycle. The cost of harnessing solar energy was once so high that it was used only to power satellites.
The energy mix that is currently in use
The energy mix of the world has changed as a result of lower prices for renewable energy. Renewable energy accounted for 72 percent of the new capacity for energy in the year 2019, and worldwide the capacity of renewable energy has more than tripled over the past 20 years.
Renewable energy has also been growing throughout the United States. The year 2007 saw the most wind power, and accounts for less than 1percent of the total energy production while solar was responsible for more than half of the capacity, while coal made up half. Although projections for 2020 aren't final, it's likely that overall output from renewables (including wind and solar, as well as other sources, like hydropower and biomass) will surpass coal and account for roughly five percent of all power generation.
According to an expert on energy at the Union of Concerned Scientists, "2020 will have been the best year ever for new wind power installations across the US and the top year to date for solar installations."
From 2001 to 2019 An area chart illustrating the fluctuating energy percentage in the United States was created.
Despite price decreases, renewable energy still accounts for a small percentage of our total energy usage. But these modifications are insufficient to reduce greenhouse gas emissions at the rate needed to counteract the negative effects of climate change.
While coal plants have been closing across the country, the fracking boom has flooded the market with inexpensive fossil gas. In spite of the fact this abundant and cost-effective fuel emits around 60 percent less carbon dioxide burning than coal nonetheless can contribute to climate change particularly through methane leaks from its plants. The oil industry still contributes to a significant portion of harmful emissions due to its usage in vehicles and trucks. Transportation emits the most carbon dioxide of any other sector across the country.
There are delays in transition to a more sustainable economy
Renewables haven't replaced fossil fuels at the pace you'd think, despite massive cost savings. The reason is that the energy sector's investment, policies and infrastructure are heavily skewed in favour of fossil fuels.
This is particularly the case especially for state-regulated monopolies which offer power in roughly half of US states. These utilities owned by investors are guaranteed the same rate of return on their investments in power plants, thus ensuring that they'll continue to make money in exchange for operating the plants. Even if the actual cost of their energy sources would make operations prohibitively expensive, these monopolies have been constructed in they don't have to be a worry.
We have existing fossil plants that we've already constructed and, in the majority of instances producing an additional unit of power using existing infrastructure is cheaper than developing new infrastructure. Since we've already paid for the fossil fuel infrastructure up upfront, the costs don't necessarily align to permit a quick elimination of fossil fuel facilities when they reach the end of their useful life.
Contracts for long-term services between utilities, energy producers, and mining companies have led to an abundance of inertia the system along with the fact that it's heavily involved in fossil fuels. There's little incentive to build more renewable power plants because the energy demand of the entire country isn't rising very rapidly each year.
Other than the monopolies and market forces, there are other barriers to the widespread adoption in renewable power.
The sun and the wind don't constantly constant throughout the year and the best places for power aren't always populated with many people. Fewer people live in the most windy areas of the nation typically located within the interior regions of those of the Great Plains, than in urban areas along the coasts that are heavily populated. Water and batteries can be used to store energy, and more efficient transmission networks can be created, so these difficulties of intermittency and geography aren't insurmountable. However, large investments will be required in order to develop and construct the infrastructure required.
Switching to renewable energy sources
Renewable energy and its now affordable price could be finally getting their chance in the midst of the pandemic's large unemployment, and low rates of interest. The United States, the federal government has a significant contribution to the energy transition process. It can lend money at low interest rates and make use of that advantage to assist states and local governments with energy transition projects.
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Advosy Energy
4411 S 40th St Suite D-5 Phoenix, AZ 8540
602-584-8294