Many people assume gas and coal power plants is simple economics. In fact, solar power in particular the cheapest energy at a blistering pace.
Why is the price getting lower?
Solar power became cheaper due to forces which are learning curves and virtuous cycles.
The initial demand for satellite fuels is a “virtuous cycle.”
If there are more panels for satellites, the price will be decreased. As the cost further going down due to technology improvements. Therefore, with the rise of economies of scale, solar was able to eventually debut. Due to viable general-purpose energy source.
However, Fossil fuels, in comparison, can’t keep up with this pace because fossil power plants have to buy mined fuels to operate.
The globe’s energy mix has responded to the bargain prices on renewable. In 2019, 72 per cent of new energy capacity came from renewable sources and global renewable power capacity has more than tripled in the last 20 years.
The renewable still cannot replace the fossil because of the investments, policies, and very infrastructure of the energy industry.
In fact, it is cheaper to build renewable when considering a new plant, that metric doesn’t necessarily apply to running a fossil fuel plant that already exists.
The thing that’s really preventing from rapidly transitioning is the lock-in effect. However, the economics don’t quite line up yet where we’re going to facilitate a rapid phase-out of fossil fuel plants prior to the end of their life cycle.
The renewable still cannot replace the fossil. That’s because of the investments, policies, and very infrastructure of the energy industry.
In the midst of a pandemic, renewables and their now-cheap prices could finally have their moment.
It is rare to have a policy option that leads to more jobs, cheaper prices for consumers, and a greener, safer planet.
If affluent countries invest in renewables now, the technologies will grow even more affordable and therefore more likely to be adopted worldwide to meet increasing energy demands.
While enacting a price per ton of carbon would affect energy bills and prices at the pump, some governments have developed progressive solutions to this.