Jenny Chase on Solar, Scifi, Geese, and Michael Liebreich
May 31, 2024
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Solar analyst Jenny Chase from Bloomberg NEF discusses solar finance and potential in Africa. Topics include geese, sci-fi influences on climate change views, challenges in renewable energy, and impacts of Russian invasion on energy prices.
Virtual power plants face challenges in aggregating assets from individual consumers.
Grid connectivity is crucial for scaling solar energy, efforts are underway to address challenges.
Solar energy market experiences cycles of hype and instability, stabilization efforts are ongoing.
Deep dives
Virtual Power Plants and Solar Energy
Virtual power plants have been a recurring topic of hype and discussion in the renewable energy sector. While the concept of aggregating small units like individual solar or battery installations holds promise in theory, the practical challenges lie in getting individual consumers to participate without complexity. The friction of aggregating these assets, each requiring payment and often not willing to engage with utilities, has hindered mass deployment of virtual power plants.
Challenges of Grid Connectivity and Expansion
Grid connectivity remains a crucial issue for scaling solar energy, particularly in the context of decentralized generation. The discussion around grid expansion and investment, both in the US and Europe, has been progressing, with a focus on grid studies, transmission investment plans, and encouraging project development even before grid infrastructure is fully in place. While grid connectivity is vital for solar energy, regional efforts are underway to address these challenges and streamline the deployment process.
Impact of Market Dynamics on Solar Energy
The solar energy market has experienced cycles of hype followed by periods of instability, driven by subsidies, pricing fluctuations, and supply-demand dynamics. However, concerns about spectacular blowouts or price model discrepancies primarily affect new projects, while existing solar installations continue to generate power reliably. As solar energy becomes more critical in the energy mix, efforts are being made to stabilize prices and navigate market uncertainties.
China's Role in Solar Energy Growth
China, as a dominant player in the global solar energy market, has been a significant driver of growth with substantial installations in recent years. Accounting for around half of the world market, China's solar capacity expansion is staggering, with a focus on large-scale solar projects and rooftop installations. However, constraints like grid congestion and saturation in certain regions may temper China's solar growth trajectory in the near future.
Addressing the Issue of Curtailment in Renewable Energy Markets
Curtailment of renewable energy due to grid limitations and supply-demand mismatches poses a significant challenge in global power systems. With the rise in solar and wind power, excess generation can lead to economic impacts by selling power at low prices. By 2030, curtailment is expected to be a salient issue. The solution lies in enhancing power flexibility, such as consumer-based strategies for adjusting power consumption.
Implications of Seasonal Climate Challenges and Prioritizing Wind Energy in Northern Europe
In regions like Northern Europe, seasonal climate variations pose challenges for solar power generation. Solar panels may generate insufficient power in winter compared to summer, impacting energy self-sufficiency. Prioritizing wind energy over solar may be more beneficial due to consistent generation, especially at night and in winter. Shifting focus to wind could lead to a more effective path towards achieving net zero emissions.
In our 49th episode, Richard Delevan is back with a stellar lineup featuring our long-awaited interview with solar analyst Jenny Chase from Bloomberg NEF, about the second edition of Solar Power Finance without the Jargon, as well as her views on geese, grids, and scifi.
And with European Parliament elections just days away, we speak to two climate tech journalists in Ireland for insights about how events might play out for industries seeking some policy certainty. John Reynolds, a freelance journalist whose work you can find in The Currency, and Paul O'Donoghue, the Ireland reporter for Renews.biz. We discuss the current state of climate issues, renewable energy developments, and the challenges and opportunities in the climate tech sector. Jenny Chase shares her journey in solar finance, her views on virtual power plants, and the potential of solar energy in Africa. John and Paul provide updates on Ireland's renewable energy landscape and the impact of European elections on climate policies.
Jenny Chase's Book:
* Solar Power Finance without the Jargon: The Second Edition by Jenny Chase Amazon
Jenny Chase's Catalysts:
* China Mountain Zhang by Maureen F. McHugh Amazon
* The Ministry for the Future by Kim Stanley Robinson Amazon