The following post was written about six years ago. Since that time the production cost of renewable energy has fallen to be competitive and, in some cases, lower than fossil fuel energy costs. And, that is without the residual costs of fossil fuel acquisition, transport, litigation, and maintenance.
The virtuous cycle is a nice term, but what in the heck does it mean? In the context under which I most recently saw it used is with one of two ultimate rationales why the move to renewable energy will begin to accelerate and replace fossil fuel energy sources.
Of course, renewable energy has many benefits and as the cost of production continues to fall, it will be on par with current fossil fuel energy production costs. This does not even consider the other costs that can be avoided which are inherent in the fossil fuel process. And, a key rationale for the migration will be the avoidance of the significant water loss that occurs in the fossil fuel and nuclear power production process through dissipated steam and loss of water to retrieve natural gas and oil through fracking.
But, the virtuous cycle will be one that will join water as the key reason for the accelerated migration to renewable energy. In essence, in fossil fuel energy production, energy has to be used to create energy. For example, to create electricity with fossil fuel, we have to burn coal or natural gas to boil water into steam to turn the turbines which turn the electromagnet generators. We have to exhaust energy to make more energy.
With renewable energy, we need not exhaust energy to make energy. The sun will shine and the wind will blow. They are doing this already, so we are merely harnessing that energy to produce electricity thereby creating a virtuous cycle. Using monetary terms, we do not need to spend money to make money, once the solar panels or windmills are created. Yes, we need to maintain them, but we do not have to spend energy to create new energy.
This matters now as energy companies look to build new energy production facilities. As a company considers the building over years of a natural gas-fired plant, the virtuous cycle of renewable energy may render that natural gas investment obsolete before a return on investment can be achieved. Companies will migrate to cost-effective and environmentally friendly energy sources. The fossil fuel industry is big on focusing on the cost and jobs as reasons to do more of the status quo, yet the production cost will flip the other way and will become more favorable for renewables. The jobs are already there and growing rapidly with double-digit increases.
So, when people say we cannot afford to move to renewable energy, that is actually a very short-sighted argument. When you factor all of the added costs on environment and health of fossil fuel acquisition, use, and future maintenance, the costs are already in the favor of renewables. The virtuous cycle will accelerate the move even more.