Odd Lots Are We Doing Decarbonization Totally the Wrong Way?
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May 29, 2024 Brett Christophers, a professor at Uppsala University and author specializing in clean energy economics, shares thought-provoking insights on decarbonization. He argues that current market-driven methods conflict with the urgent need to clean the grid. The conversation highlights the paradox of falling solar costs alongside rising electricity bills. Christophers critiques the profit motives in renewable energy funding and discusses the contrasting capabilities of wealthy and poorer nations in adopting clean technologies. He addresses the challenges in financing and investing in renewable energy amidst growing fossil fuel generation.
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Price vs. Profit
- Solar and wind power generation is getting cheaper, but profits aren't necessarily rising.
- Focus on profit, not just price, to understand renewable energy economics.
Solar Farm Business Model
- Renewable energy projects have high upfront costs and volatile electricity prices make securing financing difficult.
- Banks need price certainty to confidently lend to renewable energy projects.
Bank Manager Perspectives
- Banks are reluctant to finance renewable projects due to volatile electricity prices, despite wanting to invest in green energy.
- Price stability mechanisms, like power purchase agreements (PPAs), are needed to make projects bankable.
