Jun 8th 2015

Green Energy Surging and you’ll never Guess Why

by Juan Cole

Juan Cole is the Richard P. Mitchell Professor of History and the director of the Center for South Asian Studies at the University of Michigan. His latest book, Engaging the Muslim World, is just out in a revised paperback edition from Palgrave Macmillan. He runs the Informed Commentwebsite.


"Why is all this happening? Because solar power and wind power are competitive with hydrocarbons...."



The adoption of wind and solar for electricity generation around the world is happening at a growing pace, and the likelihood is that it will displace hydrocarbons in fifteen to twenty years (decades sooner than Big Coal, Big Oil and Big Gas expect). Here are some stories illustrating that stepped-up pace.

Germany’s wind power output is up by a third in the first five months of 2015 over the same period the previous year. In part, some offshore projects that had been delayed have started coming on line, adding 3 gigawatts of capacity. In part, Germany’s government plans to reduce incentives for wind and has already done so for solar, on the theory that these are now mature industries. The planned changes caused owners of planned wind turbine plants to rush to finish them so as to benefit from the more generous current policies. In 2015, it is expected that for the first time, Germany will generate more electricity via renewables like wind and solar than by its aging set of 8 nuclear reactors. The cost of electricity in Germany is historically low this year as a result of the wind and solar installations in the country, and is half what it is in Britain.

China added 5 gigawatts of new solar capacity in the first three months of 2015! That is nearly equivalent to all the solar installations ever built in Spain. China is going for 17 gigawatts of new solar capacity in 2015. That will make it about tied with Germany, currently the leading solar power in the world, with 33 gigawatts of installed coapacity.

The state of Maharashtra in India has announced a plan to nearly double its power generation from renewables over the next five years, with plans to have 7.5 gigawatts of solar energy and 5 gigawatts of wind by 2020. At the moment, 9% of the state’s energy comes from renewables,and this plan would bring the total to 15%. The plan is revenue-neutral, in part because of expected help from the Indian federal government. Maharashtra lies on the country’s west coast and includes the mega-city of Mumbai (Bombay), its capital. The state has a population of 114 million, making it more populous than the Philippines and nearly as populous as Mexico. That is, if it were an independent country, it would be no. 12 by population. The state’s annual gross domestic product is $233 billion, putting it in the same neighborhood as Iraq, Chile and the Philippines.

Wind power in Brazil doubled in the past year, and solar is up 62%. Brazil is looking to add 6 new gigawatts of electricity generation capacity in 2015.

The United Arab Emirates plans to add 100 megawatts of new solar PV capacity soon. By 2017 the largest solar plant in the Middle East will open, with a capacity of 200 megawatts. By 2021, the UAE plans to get 24% of its electricity from renewables. The UAE is a country of about 9 million, though only about 2 million of those are citizens. It has a GDP of about $400 billion annually, mainly income earned from petroleum exports. But Dubai has emerged as a finance hub and the country is diversifying away from oil. Unlike American CEO’s, the Gulf sheikhs are usually not in any doubt about climate change or the likelihood that the globe will have to give up burning hydrocarbons. The UAE is attempting to position itself as a major player in green energy markets via its Masdar corporation.

Why is all this happening? Because solar power and wind power are competitive with hydrocarbons even if we don’t figure in externalities. Their real price is rapidly falling. Externalities are things like pollution, which economists often do not figure into their formulas for profitability. If we considered externalities, then coal, gas and oil are worthless because they are so destructive. Burning them is like setting off multiple atomic bombs in the atmosphere. But even if you left a little thing like that out of your equations, solar and wind can now compete with other forms of energy in the global marketplace.

For instance, Dubai let a bid for a new solar PV plant that will generate electricity for only 6 cents a kilowatt hour. It would have cost the UAE more than that to build a natural gas plant. We are only at the beginning of a huge electricity price drop.




For Juan Cole's own web site, please click here.

For Juan Coles books on Amazon, please click a picture below.

To follow what's new on Facts & Arts please click here.


  

 

This article is brought to you by Project Syndicate that is a not for profit organization.

Project Syndicate brings original, engaging, and thought-provoking commentaries by esteemed leaders and thinkers from around the world to readers everywhere. By offering incisive perspectives on our changing world from those who are shaping its economics, politics, science, and culture, Project Syndicate has created an unrivalled venue for informed public debate. Please see: www.project-syndicate.org.

Should you want to support Project Syndicate you can do it by using the PayPal icon below. Your donation is paid to Project Syndicate in full after PayPal has deducted its transaction fee. Facts & Arts neither receives information about your donation nor a commission.
 

 

Browse articles by author

More Current Affairs

What Ukraine Needs 
by Ivanna Klympush-Tsintsadze
Mar 3rd 2022
EXTRACT: "Although Ukraine’s armed forces are outnumbered by those of Russian President Vladimir Putin invading our country, we take heart from the growing support we are receiving from friends abroad. Nobody should forget that this is not just an unprovoked invasion of Ukraine; it is an assault on the free world. ---- Putin has been at war with the free world for decades. "
Is There a Method to Putin's Madness?
by Xavier Vives
Mar 2nd 2022
EXTRACT: "Moreover, with China sharing the Kremlin’s interest in containing the advance of liberal democracy around the world, Putin could count on the Chinese to provide an additional economic lifeline by purchasing Russian gas. But this new relationship will not be costless. As the world continues to divide into separate technological and economic blocs, Russia will become even more dependent on China, implying a loss of strategic autonomy. Russia may have a powerful military; but with a GDP similar to that of Spain and Italy, it is far from being an economic power."
‘Just short of nuclear’: the latest financial sanctions will cripple Russia’s economy
by Steven Hamilton
Mar 1st 2022
EXTRACT: "The financial measures just announced against Russia are unprecedented for a country of its size. This of course means it’s impossible to predict exactly how their impacts will reverberate around the Russian – and global – economy. And we still need to see the exact details of the plan. But on their face they threaten the collapse of the Russian ruble, a run on Russian banks, hyperinflation, a sharp recession and high levels of unemployment in Russia, as well as turmoil in international financial markets."
What's on Putin's Mind? 
by Nina L. Khrushcheva
Feb 26th 2022
EXTRACT: "Putin apparently assumes that China will back him. But while he launched the invasion just weeks after concluding something akin to an alliance agreement with Xi in Beijing, Chinese officials’ reactions have been very distant with calls for “restraint.” Given Putin’s near-total reliance on China for support in challenging the US-led international order, lying to Xi would have no political or strategic advantage. That is what is so worrying: Putin no longer seems capable of the calculations that are supposed to guide a leader’s decision-making. Far from an equal partner, Russia is now on track to become a kind of Chinese vassal state."
Russia's Stolen Future 
by Joschka Fischer
Feb 25th 2022
EXTRACTS: "Russia’s ascent to global power in the nineteenth and twentieth centuries resulted in numerous tragedies not only for the neighbors it subjugated and gradually absorbed, but also for its own people. China’s current leaders, in particular, should be mindful of this history, considering that imperial Russia seized more territory from China than from anyone else." ----- "Putin is taking Russia hurtling back toward the nineteenth century, in search of past greatness, whereas China is forging ahead to become the defining superpower of the twenty-first century. While China has achieved unprecedentedly rapid economic and technological modernization, Putin has been pouring Russia’s energy-export revenues into the military, once again cheating the Russian people out of their future."
Putin Is No Nixon 
by Nina L. Khrushcheva
Feb 18th 2022
EXTRACT: "........ Xi did what was needed to lock Russia into a vassal-like dependency on China. And Putin chose to walk straight into his trap, thinking that partnership with Xi would help him in his confrontation with the West. ---- What could be better for China than a Russian economy completely cut off from the West? All the natural gas that does not flow westward to Europe could flow eastward to an energy-hungry China. All Siberia’s mineral wealth, which Russia has required Western capital and expertise to exploit, would be available only to China, as would major new infrastructure projects in Russia." ---- "Putin seems to be ignoring that China’s leaders and people view Russia as a corrupt country which stole more Chinese territory in the nineteenth century than any other."
The Risk of Nuclear Disaster in Ukraine 
by Bennett Ramberg
Feb 14th 2022
EXTRACT: "Russia’s large-scale military mobilization on Ukraine’s border has grim historic precedents. But should the Kremlin pull the trigger, it will encounter a hazard that no invading army has ever faced before: 15 nuclear power reactors, which generate roughly 50% of Ukraine’s energy needs at four sites. The reactors present a daunting specter. If struck, the installations could effectively become radiological mines. And Russia itself would be a victim of the ensuing wind-borne radioactive debris. Given the vulnerability of Ukraine’s nuclear reactors and the human and environmental devastation that would follow if combat were to damage them, Russian President Vladimir Putin should think again about whether Ukraine is worth a war."
China's Triangulation Gambit 
by Stephen S. Roach
Feb 11th 2022
EXTRACT: "Yet Putin gives Xi precisely what he wants: a partner who can destabilize the Western alliance and deflect America’s strategic focus away from its China containment strategy. From Xi’s perspective, that leaves the door wide open for China’s ascendancy to great-power status, realizing the promise of national rejuvenation set forth in Xi’s cherished “China Dream.” "
America's Not-So-Great Inflation 
by Barry Eichengreen
Feb 10th 2022
EXTRACTS: "It has become abundantly clear that the United States has an inflation problem. What is not yet clear is how big the problem will turn out to be and how long it will last. ---- "Alarmed observers point to parallels with the 1970s, when commodity prices shot up,..." ------ "Today, in contrast, inflation expectations remain firmly anchored. The Michigan Survey of Consumers shows that respondents expect inflation to approach 5% over the coming year, before falling back to just above 2% in the subsequent four years. The inflation rate implicit in the price of five-year inflation-indexed Treasury securities shows basically the same thing: inflation averaging 2.8% over the next five years."
Inflation Will Hurt Both Stocks and Bonds 
by Nouriel Roubini
Jan 26th 2022
EXTRACT: "Over the past three decades, bonds have offered a negative overall yearly return only a few times. The decline of inflation rates from double-digit levels to very low single digits produced a long bull market in bonds; yields fell and returns on bonds were highly positive as their price rose. The past 30 years thus have contrasted sharply with the stagflationary 1970s, when bond yields skyrocketed alongside higher inflation, leading to massive market losses for bonds."
Ukraine crisis is reminding Nato why it was formed in the first place
by Mark Webber
Jan 26th 2022
EXTRACT: "The idea of a conventional force attack by Russia on Poland, the Baltic or Black Sea states is fanciful. But it is rendered near impossible in the minds of the Kremlin leadership by the sure knowledge that Nato would take a stand. In response to events around Ukraine, the credibility of the alliance is being affirmed through a set of coordinated measures...." ---- "The forces Moscow has assembled on Ukraine’s borders are clearly intended to intimidate the government in Kyiv. But as the weeks drag on Russia may be losing the military advantage. It has already forfeited the element of surprise essential for a swift land grab (as was used during the seizure of Crimea in 2014)."
The Fed's Mad Scramble 
by Stephen S. Roach
Jan 25th 2022
EXTRACT: "By now, it is passé to warn that the Fed is “behind the curve.” In fact, the Fed is so far behind that it can’t even see the curve. Its dot plots, not only for this year but also for 2023 and 2024, don’t do justice to the extent of monetary tightening that most likely will be required as the Fed scrambles to bring inflation back under control. In the meantime, financial markets are in for a very rude awakening."
Europe is dependent on Russian Gas during Ukraine Crisis because it didn’t Ramp up Renewables Faster
by Juan Cole
Jan 25th 2022
EXTRACT: "As it is, Germany has made strides in getting off coal. Coal provided half of power production in 2000, and is now down to about a little over a quarter. And Germany has done more to put in renewables, with its “Energiewende” or Energy Switch, than any other large industrialized nation. The new Social Democratic government, which is in coalition with the Greens, plans to put enormous amounts of new renewables in every year until 2030, projecting that by that date, 80 percent of Germany’s power will come from renewables."
Ukraine: how an armed conflict could play out
by Julien Théron
Jan 21st 2022
EXTRACTS: "The fear is that Moscow is backing itself into a diplomatic corner where the use of force is its only way to remain credible." ----- "The Ukrainian population has also been mobilizing in support of the troops since the seizure of Crimea and the war in Donbas. And according to a poll taken in December 2021 by the Kyiv International Institute of Sociology, 58% of Ukrainian men and almost 13% of women declared that they are ready to take up arms. A further 17% and 25% more said they would resist through other means. In what would be a classic case of asymmetrical warfare, resistance from Ukraine’s population could therefore prove a serious thorn in Moscow’s side."
Novak Djokovic: the legal problem of having one rule for some, another for everyone else
by Joshua Jowitt
Jan 12th 2022
EXTRACTS: "While at the time of writing, the outcome of Djokovic’s visa troubles was uncertain, the double standard of rules raises a much bigger question about the philosophy of law: can the application of a rule be so unfair that we have no valid reason to follow it?" ------ "......a rule that doesn’t treat like cases alike can’t be a law at all. This is because a key requirement of a legal system is that it needs to be stable, which means that people need to know what the law is and when it applies. If a rule doesn’t treat everyone equally, then it does the opposite and increases doubt and uncertainty about what the law even is. And if enough rules exist that create uncertainty about what the law is and when it applies, the system will collapse. A rule that undermines a legal system in this way can’t really be law at all, and legal officials shouldn’t create or uphold them."
Victims of the Unvaccinated
by Peter Singer
Jan 9th 2022
EXTRACT: "Novak Djokovic, the world’s top-ranking tennis player, has just been granted a medical exemption to take part in the Australian Open. Djokovic, who has won the event nine times (one more victory would give him a record-breaking 21 major titles), refused to show proof of vaccination, which is required to enter Australia. “I will not reveal my status whether I have been vaccinated or not,” he told Blic, a Serbian daily, calling it “a private matter and an inappropriate inquiry.” The family of Dale Weeks, who died last month at the age of 78, would disagree. Weeks was a patient at a small hospital in rural Iowa, being treated for sepsis. The hospital sought to transfer him to a larger hospital where he could have surgery, but a surge in COVID-19 patients, almost all of them unvaccinated, meant that there were no spare beds. It took 15 days for Weeks to obtain a transfer, and by then, it was too late."
Chaos and Opportunism in Kazakhstan 
by Djoomart Otorbaev
Jan 9th 2022
EXTRACT: "The protests that erupted across Kazakhstan on January 2 quickly turned into riots in all of the country’s major cities. What do the protesters want, and what will be the outcome of the country’s most severe civil unrest since independence in 1991? "
Kazakhstan and the Price of Russia's Empire 
by Nina L. Khrushcheva
Jan 7th 2022
EXTRACT: ".....one wonders how Chinese President Xi Jinping views Russia’s intervention in Kazakhstan, which shares a nearly 1,800-kilometer (1,120-mile) border with China, especially in light of Putin’s earlier comments diminishing the history of Kazakhstan’s independent statehood. (He has shown similar contempt for the independence of Belarus, the Baltic states, and Ukraine.)"
History by Decree 
by Ian Buruma
Jan 7th 2022
EXTRACT: "The problem with history as propaganda is not that it makes people feel good or bad, but that it creates perpetual enemies – and thus the perpetual risk of wars."
The Real Threat to American Democracy 
by Michael Lind
Jan 5th 2022
EXTRACT: ".....a scenario in which Trump (or one of his allies) is designated president by the House of Representatives after the 2024 election probably belongs in the realm of political-thriller fiction.  Now consider the unlikely event that Trump were nominated and won a clear Electoral College or popular-vote majority in 2024. Rather than establish the white-nationalist dictatorship of progressive nightmares, an elderly second-term Trump would most likely be an even more ineffectual figurehead in a party dominated by conventional Republicans than he was in his first four years. If Italian democracy could survive three terms of Silvio Berlusconi as prime minister, American democracy can survive two terms of Trump. None of this is to suggest that American democracy is not under threat. Populist demagogues like Trump are symptoms of a disease in the body politic. The real threat to American democracy is the disconnect between what the bipartisan US political establishment promises and what it delivers. This problem predates Trump by decades and helps to explain his rise. "