Renewable Power is Cheaper, but Massive Power Bill Spikes Will Happen Anyway

Most electricity today is provided by burning oil and coal. Yet the world is preparing for the eventual phasing out of fossil fuels and the gradual implementation of eco-friendly renewable energy.

Climate activist Greta Thunberg’s resounding UN speech could hasten the day when politicians must act.

However, during the gap between the decline of fossil fuels and the rise of renewables, energy bills could experience uncontrollable spikes.

This will be due to various factors such as deteriorating grids, increasing energy demand, errant weather, and renewable infrastructure not keeping pace with demand across the grid itself.

The fossil fuel industry must to spend $11 trillion over the next 20 years to satisfy global demand. Nevertheless, demand for fossil fuels is projected to slow in the late 2030s.

Countries throughout the world have begun retiring fossil fuel and nuclear-powered energy infrastructures.

Blackouts, heat waves, and soaring demand means that consumers are getting hit with massive bill increases renewable energy infrastructures pulled in to make up the difference.

In mid-August 2019, a heatwave, increased demand, and numerous coal-powered energy plant retirements stressed the system and almost caused blackouts in Texas.

The average $30 per megawatt hour energy price jumped to $9,000, an increase of 44,000%. One megawatt can power 200 Texan homes in a day.

Clean power cost

California is planning to implement a 100% clean energy system by 2045. Severin Borenstein, an energy expert at the University of California at Berkley, believes it will take better informed strategies to changeover infrastructures.

“We have to have systems in place to make sure we still have enough generation on the grid,” said Borenstein. “Or else, in the best case, we have a blackout, and in the worst case, we have some kind of grid collapse.”

Yet renewable energy is becoming the cheapest way to generate energy. The average cost of electricity dropped by 26% when generated by renewables.

Climate aside, the world can’t practically rely on the fossil fuel-powered energy infrastructure for much longer. Global reserves of oil and natural gas will be depleted within 50 years. Coal deposits could probably become depleted within 150 years.

Fossil fuel resources won’t just vanish. They just won’t be a globally viable business practice anymore, especially compared to their profitability during the 20th century.

In 1980, the fossil fuel industry generated 4.51% of global GDP. That percentage fell to 0.80% in 2016 but rose to 1.10% in 2017.

Small-cap winners galore

The big stock market winners share one common attribute: Near the beginning of the ascent of their shares, the companies offer revolutionary products or services, are market leaders in their respective industries, or both. Some big stock market winners that possessed the attributes outlined above are Netflix (NFLX), which we recommended to investors in October 2002; Intuitive Surgical (ISRG), which we bought and recommended in July 2004; (BIDU), which we bought and recommended in August 2006; and MercadoLibre (MELI), which we recommended to investors in October 2010. Get up-to-date small-cap stock picks from David Frazier, editor of Small-Cap Profit Confidential.
Click here

Smarter cryptocurrency investments

The stock market crash of 2008 was the catalyst for his journey into alternatives. And interestingly, it was the impetus behind the creation of Bitcoin and the blockchain technology behind it. Keene Little wasn’t ready to risk his money yet but he was very curious, so he began charting Bitcoin’s technical patterns. What finally convinced him to dip a toe into digital currencies was seeing that they followed familiar price patterns that could be analyzed and successfully acted on. Now he shares those insights with subscribers to the Crypto Wealth Protocol.
Learn more

Leave a Reply