The passage of the Inflation Reduction Act which includes very significant renewable energy funding is a huge step forward. Even Republican legislators who were told not to vote for it, are silently celebrating the needed investment in their states that will be forthcoming.
Four years ago, I wrote the following post which sheds progress at the same time the former president was pulling the US away from the adult table on fighting climate change. President Joe Biden has gotten us back to that table and helped pass the Inflation Reduction Act. Please note the invasion of Ukraine by Russia has caused some hiccups to the progress with Russia punishing its critics with fossil-fuel restrictions, but the progress continues.
“Global citizens are rightfully concerned the US President Donald Trump is pulling the US out of the Paris Climate Change Accord, but progress continues as “we are passed the tipping point on renewable energy.” Even the US pullout cannot stop the train, as states, cities, businesses and other countries continue the push. It just means the President and his team will not be at the adult table on this issue and may not be invited at all.
Here are a few miscellaneous energy tidbits that should offer encouragement.
Per the UK Based organization Carbon Tracker, here are a few highlights from the past year:
- more than 1/2 of the US coal plants in existence in 2010 have been closed;
- more than 1/2 of the remaining coal plants in Europe are losing money;
- the UK has slashed electricity from coal usage from 40% to 2% in the last five years; and
- there have been big strides in China and Australia on reducing coal usage.
Per the Federal Energy Regulatory Commission, the five member, Republican dominated agency denied the request by Department of Energy Secretary Rick Perry to fund the building of more coal-fired and nuclear plants. This was a surprise move given the make-up of the committee. I would call this decision as not wanting to throw good money after bad.
It should be noted, it is not just coal that is giving the FERC commissioners pause. The US division of Westinghouse Electric Company had to declare bankruptcy for cost overruns on a new nuclear power plant for SCANA, the South Carolina utility. As a result, the new plant is being shuttered and SCANA is being sold to Dominion Resources, so as not to overburden SC citizens with the cost of the lost investment.
The International Energy Agency in their 2017 Energy Outlook notes the cost of new solar photovoltaic electricity has declined by 70% and wind energy has fallen 25% since 2010. It should be noted the IEA has tended to favor fossil fuel energy in past releases. China, the new country leader in the climate change fight, will be investing US$360 billion more in renewable energy by 2020. Plus, the price of solar has fallen so much in places like Zambia, Saudi Arabia and Mexico, it has won bidding contests against fossil fuel energy sources for projects.
Finally, any discussion on future energy cannot exclude the declining cost and increasing capacity in battery storage. Per Bloomberg New Energy Financials, energy storage will double six times between 2016 and 2030. Elon Musk just helped southern Australia go live with a major battery installation and 21 states in the US have planned projects on energy storage.
All of the above stories are important because it has always been a financial argument to combat the environmental concerns, whose long term costs have been undervalued. Now, the financials are favoring the renewable energy engine, so market forces will continue to force the ultimate demise of coal-fired energy, which started with the lower cost of natural gas. If a company can find a clean energy source which is cheaper and more predictable long term, that is easily the better path forward. If you don’t believe me, just ask companies like Google, Facebook, Walmart and IKEA to name only a few.”