Transition to Clean Energy is Inevitable
Recently, clean energy stocks have gone down, banks have pulled out of a “net zero” climate alliance, and BP, a major energy company, is halting their offshore wind business to focus on oil and gas. Many companies seem to think that fossil fuels will continue to be successful long-term, however, this is incorrect. According to The Wall Street Journal, unstoppable technological and economic forces are driving the transition to clean and renewable energy.
New technologies generally follow one of three patterns:
- Volatile costs over days, months, and years but relatively flat over long time periods
- Consistently flat costs.
- Predictable long-term declines in cost and increases in performance.
Clean energy technologies like solar and wind all follow the third pattern but at different rates. Since 1990 the cost of wind power has dropped by 4% a year and the cost of solar has dropped 12% a year. These costs are projected to decrease even further. Simultaneously, barriers are falling, and innovations are being made that allow renewable energy sources to operate with larger efficiency gains. The projected growth is similar to that of mobile phones, which today have almost entirely made landlines obsolete.
Historically these technological transitions often require a kick-start from the government. This is seen in the previous growth of technologies like electric vehicles and artificial intelligence. Clean energy technologies will grow regardless, but it is critical that governments realize their importance, invest in them, and support them.
Borrum Energy Solutions designs microgeneration wind turbines and towers that provide rural dwellers with an opportunity to invest in clean energy now. Saving on propane and diesel costs, while lowering carbon emissions for off-grid dwelling owners and lowering dependence on the electrical grid for grid connected dwelling owners.