Be of good cheer! Reasons to feel optimistic about the energy transition at the end of 2023
Dec 22, 2023
44:03
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On this episode, Ed Crooks is joined by Melissa Lott and Amy Myers-Jaffe as they share their reasons to be cheerful this holiday season. Ed highlights the drop in the cost of solar modules, driving the adoption of solar energy. Amy discusses the continued growth of EV sales, despite setbacks. Melissa chooses the start of construction for Form Energy’s factory, making batteries for long-duration energy storage. The gang also exchanges gifts and discusses EV charger repair and reliability, as well as the board game PowerGrib.
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Quick takeaways
The precipitous drop in the cost of solar modules is making solar power highly competitive against fossil fuels and driving global adoption of solar energy.
Despite negative commentary, the growth of EV sales remains strong, with a projected increase of 35% in 2023, indicating the long-term positive outlook for electric vehicles.
Deep dives
Reasons to be Cheerful: Falling Costs of Solar Power
The cost of solar modules in China has reached a record low of 15 cents per watt, down from the goal of $1 per watt a decade ago. This significant drop in cost shows the incredible competitiveness of solar power and its potential as a highly competitive option against fossil fuel power generation. Additionally, there is still room for further cost reductions, indicating that the era of falling costs for clean energy is not over. The rapidly growing solar power industry is expected to continue expanding globally, contributing to a rapid increase in renewable energy capacity.
Positive Trends in Electric Vehicle Adoption
Despite claims that the electric vehicle (EV) market is declining, global EV sales are projected to reach 14 million in 2023, representing a 35% increase from the previous year. EVs accounted for 14% of all new car sales in 2023, up from 5% in 2020. The decreasing government share of EV costs demonstrates the economic viability of EVs. Major automakers, including Ford, Toyota, and GM, have invested billions in EV production and are committed to transitioning to all-electric fleets. The standardization of EV charging infrastructure, such as the recent announcement of North American charging standards, further supports the growth and accessibility of EVs.
Advancements in Long-Duration Energy Storage
The announcement of Form Energy's construction of a manufacturing facility in West Virginia signifies a significant step forward in the development of long-duration energy storage solutions. Form Energy's iron air batteries can provide 100 hours of continuous power, filling the gap between short-duration storage and seasonal storage options. This commercial-scale production of new storage technology addresses the need for more diverse and accessible storage options. The transition toward renewable energy sources can benefit from the increased availability and affordability of long-duration storage solutions.
The Importance of Supply Chain Attention
The increased attention given to global supply chains is a positive development for ensuring security and diversification. As the importance of clean technologies grows, it becomes crucial to evaluate and manage supply chains for resources and materials. The focus on sustainable and ethical practices, including fair wages and human rights, highlight the commitment to responsible sourcing. It is essential to strike a balance between utilizing cost-effective and innovative solutions like Chinese-produced solar modules while diversifying supply chains to ensure sustainability, security, and fair practices within the industry.
As 2023 comes to a close, the Energy Gang reflects on the events and trends of 2023 that provided grounds for optimism about the transition to a lower-carbon world.
On this week’s show, Ed Crooks is joined by Melissa Lott and Amy Myers-Jaffe as they share their reasons to be cheerful this holiday season. Ed chooses the precipitous drop in the cost of solar modules, making solar power ever more competitive against fossil fuels, and driving the adoption of solar energy on a global scale.
Amy’s choice is the continued growth of EV sales. Despite all the negative commentary about electric vehicles in recent months, and some genuine setbacks for the industry, the long-term outlook still looks bright.
Finally, Melissa chooses another important development in 2023: the start of construction for Form Energy’s new factory in West Virginia to make batteries for long-duration energy storage. The batteries use iron-air technology, an example of several advances in battery chemistry that are offering solutions to the problems associated with lithium ion storage.
We wrap the show with the gang trying a not-so-secret Secret Santa, exchanging gifts for the festive season. We hope the show will lift your spirits and put you in the frame of mind to enjoy the holidays. Thanks to everyone who listened during the year. We look forward to seeing you again in 2024. As usual we are keen to hear thoughts and comments. You can find us on most platforms – we’re @theenergygang.