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The Green Blueprint

Inflation plagues clean energy. How bad is it?

Nov 3, 2023
The podcast discusses the challenges of inflation in clean energy, including the rising costs of wind, solar, and batteries. It explores the impacts on emerging sectors like offshore wind and hydrogen. The International Energy Agency's declaration of peak fossil fuel consumption is also discussed. The effects of inflation on the clean energy industry, including equipment costs and canceled projects, are examined. The impact of Basel III on renewable energy financing and the need for policy reforms are emphasized. The World Energy Outlook report's projections on the energy transition and progress in the clean energy sector are explored. Other topics include a battery electric locomotive, AI safety, drones, AI, Bitcoin, climate tech, and inflationary factors in the US.
56:13

Podcast summary created with Snipd AI

Quick takeaways

  • Inflationary pressures are raising costs for clean energy products and projects, challenging the commercial viability of emerging sectors like offshore wind and hydrogen.
  • The International Energy Agency projects that fossil fuel consumption is likely to peak by the end of the decade, signaling a significant turning point in the energy transition and a shift towards clean energy.

Deep dives

Clean energy inflation challenges commercial viability of emerging sectors

The podcast episode explores how inflationary pressures are affecting the commercial viability of emerging clean energy sectors like offshore wind and hydrogen. Factors such as supply chain disruptions, grid constraints, interest rates, and labor costs are driving up costs for clean energy products and projects. The report highlights the cancellation, delay, and renegotiation of offshore wind projects in the US and Europe due to rising financing and construction costs. The International Energy Agency also notes that the levelized cost of wind and solar has increased 10-15% globally since COVID-19, primarily due to supply chain snafus and rising material prices. The podcast delves into the potential impact of inflation on the trajectory of renewables and discusses policy interventions to address these challenges.

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