Before you start furiously typing out a retort, hear me out. First, I want to make it clear what I am not skeptical about. I am not skeptical about electric vehicles (EVs) continuing to grow rapidly for the foreseeable future. Indeed, I believe that will happen — although growth has slowed in the U.S. in recent years.
I am also not skeptical over the fact that EVs make sense for many people. Indeed, I would buy one myself if I could justify it economically. I have only put about 5,000 miles on my car in the past 2 years, so it’s hard to justify any sort of premium that could be paid off by fuel savings.
I am also not skeptical that EVs will get cheaper, and that improvements in batteries will extend their range. I believe tomorrow’s EV will be much better than today’s.
So far, so good. On these three points, I am on the same page with the most rabid EV enthusiast. But I am extremely skeptical about one thing. CONTINUE»
The biggest constraint to renewable energy growth in the US is the availability of tax equity to support project investment. There is not nearly as much tax equity investment as is needed to support financing and building all of the renewable energy projects in development – as a result the pace of project financing and construction is being severely constrained. Many new investors will begin to enter this tax equity investment space in pursuit of outsized returns with virtually no risk created by a significantly undersupplied investment market. These new tax investors will usher in a period of unprecedented growth in the construction of renewable energy projects.
The Strange Market of Tax Equity Investing
Investment in renewable energy comes from three sources. (1) Project Equity –the investment that actually owns the clean energy facility, this includes the risk of operation and the long-term value of the asset, and there are plenty of investors willing to participate as part of (or all of) this investment. (2) Debt – this is generally traditional project equity lending, and as with project equity there are plenty of lenders – big banks, small banks, private debt funds – ready to lend to all kinds of renewable energy projects. For these traditional sources of project financing project risks are increasingly well understood and, provided there is enough project revenue to cover debt repayment, this money is readily available. (3) Tax Equity – this third, and vital source of capital are investments made in the project that will be repaid primarily through tax credits and other tax savings to the tax equity investor. There simply is not currently enough tax equity to support the pace of growth in renewable power development in the U.S. CONTINUE»
In January of this year, as I do every year, I made several energy predictions for the upcoming year. (See My 2016 Energy Predictions). Now that half the year is in the books, I thought it might be a good idea to check in and see how these predictions are tracking.
As a reminder, I strive to make predictions that are specific, measurable, and preferably actionable. If forecasts are broad and vague, one can almost always declare victory. I would also remind readers that my predictions are based on what I believe will happen, which isn’t the same thing as predicting what I want to happen. My desire for a particular outcome has absolutely no bearing on a prediction. I am simply trying to accurately gauge the most likely outcome.
Here are the predictions, along with an update through the first half of the year. CONTINUE»
Melomys Rubicola has been declared extinct. Had it been something like a fuzzy koala or panda instead of a rat, the world might have taken more notice, but maybe not. A Google search on the topic goes over 20 pages deep. This seems to have struck a nerve.
It’s possible that an undiscovered genetically identical population exists somewhere else. It’s not unheard of for a species declared extinct to show up again. But if it has been on that tiny island off the coast of Papua New Guinea long enough for speciation to occur, then it is extinct because to repopulate someplace else a pregnant female would have needed to leave the island and establish itself elsewhere, and that is extremely unlikely.
There have been some dubious claims of extinctions caused by climate change, as one would expect, and I’m sure there will be many more. But little by little, the real extinctions will arrive. CONTINUE»
Each year in June two very important reports are released that provide a comprehensive view of the global energy markets. The highlight of the recently-released Renewables 2016 Global Status Report (GSR) was that the world’s renewable energy production has never been higher. But the biggest takeaway from this year’s newly-released BP Statistical Review may be that the world’s fossil fuel consumption has also never been higher.
Demand for crude oil set a new all time-high in 2015. Despite all the hype about electric vehicles and peak oil demand, the world’s oil demand continues to grow unabated — growing a robust 1.9 million barrels per day (bpd) from 2014 (+1.9% year-over-year).
Contrary to what you read in the lay press, nuclear energy is starting to make major headway around the world with a plethora of new technologies (and attendant potential investment opportunities) on the horizon.
The recently-released Renewables 2016 Global Status Report shows that renewables had a record year in 2015, but it wasn’t enough to make a dent in global fossil fuel consumption, which also set new records for consumption.
Cross-posted from Biodiversivist.
Andrew Revkin posted an interesting article a few weeks back:
Lately, I’ve come to frame the challenge as a question: Can we foster an online (and real-life) culture in which veracity is cool? You’ll see more on this here in the coming months.
As social primates, we are instinctively motivated to seek higher status in our given troop hierarchies. The word cool is sometimes used as a synonym for impressive. Impressive denotes a measure of status. Coolness is any marketer’s primary weapon. I like Andy’s idea of making veracity cool, but I’m skeptical it could ever take hold. How would car marketers ever convince us to buy their cars? Although, certainly, he’s on the right track in that, if you want to change behavior, like getting people to drive electric cars (or Hummers), convincing them it’s cool to drive one will work wonders. CONTINUE»
Several years ago, when I was working on my book Power Plays, I spent a lot of time thinking about the future of energy. One thing I concluded was that solar power would become one of the world’s most important sources of energy – if not eventually the most important source of energy. I also discussed this in the 2007 column “The Future Is Solar.”
There are a couple of reasons I still believe this. But first, I should make it clear that it will be a long time before solar power rivals the consumption of oil in the global energy market.
While solar power is growing rapidly, we still use about 100 times as much energy in the form of oil (and about 90 times as much in the form of coal). Further, even though solar power is growing at a fast rate, the absolute growth in oil consumption from 2013 to 2014 was about 3 times the growth in solar power consumption. In other words, even though solar consumption grew at a 38% rate and oil consumption grew at about a 0.7% rate, this amounted to an increase in solar consumption of 11.6 million metric tons of oil equivalent versus an increase in oil consumption of 32 million metric tons. CONTINUE»
What’s with the green parrots you may be asking? A parrot repeats what it hears without understanding what it’s saying. And by “green” I’m referring to people who, like myself, consider themselves to be environmentalists (whatever exactly that means). To the left of the green parrots is a screenshot of the “shares” from a guest post on the Clean Technica website, which has at least 99 parrots sitting on their wire.
It all started when an apparent shale gas enthusiast (Nick Grealy) wrote a 1,100 word article at his blog about the use of shale gas in France which contained the following rather cryptic throwaway sentence:
French nuclear exports help Germany, the UK, Italy and Spain accelerate their renewable uptake.