Renewables Highly Competitive Though Not Yet At Scale | EnergyPolicyForum.
Investment in renewables worldwide has picked up steam. It is possible that total clean energy capacity installed in 2014 will be greater in non-OECD countries than developed nations for the first time. Oil and gas companies have long touted an expected upward growth trajectory in energy demand and assumed that they would enjoy the rewards almost exclusively. Interestingly, demand in these countries is leaning towards renewables now rather than conventional forms of energy.
This is beginning to be seen in share prices as well. Examining share performance of various solar and wind companies, it is clear that impressive returns are being generated. Further, the future looks bright. Costs and scale have not really been exploited fully and yet the technologies are providing grid parity already.
Clean energy is growing in developing countries because the economics make more sense. Many of these countries have limited grid infrastructure. Why invest large sums of money in infrastructure for hydrocarbons when renewables offer a more cost effective alternative. Wind, for instance, is significantly cheaper for industrial users now than hydrocarbons in many non-OECD countries. And solar runs neck and neck. But what is truly promising is that wind and solar are not fuels but technologies and as such they will become more and more efficient and cost effective. Hydrocarbons on the other hand offer volatility in pricing and finite supply.
Most non-OECD countries pay a great deal for electricity. In a new report called Climate Scope 2014, Bloomberg New Energy Finance (BNEF) stated:
