Falling oil prices no concern to renewables this time around
Oil pump near Moose Jaw, Saskatchewan, Canada (source: flickr/ Arthur Chapman, creative commons)
Alexander Richter
12 Kas 2014
Diesel electric power generation has much less relevance nowadays, making price changes in the resource less significant; at least for developed economies.
An article in The Guardian looks into what the falling oil prices mean to renewable energy development. Traditionally, when fossil fuel prices go down, it makes renewable energy less attractive, slowing down its development. This time around it has “little impact on renewable energy markets” according to the aforementioned news source.
The Guardian quotes Pavel Molchanov, a senior research analyst at Raymond James Financial, stating that “As far as solar and wind go, the [impact] from lower oil prices is zero in North America and Europe, where power prices do not have any link to oil,”
This is relevant for developing economies, where diesel generation is more prevalent, yet for the overall picture, it does not change as much, since “diesel and other petroleum-based fuels account for only 5% of global power generation today, according to the International Energy Agency”.
This is partially good news for the industry, since a oil and other fossil fuels have always been the main obstacle to overcome.
To read the full article, please follow the link below.
Source: The Guardian
