Tuesday, October 8, 2019

Renewable Energy and Fossil Fuel Subsidies

While the real costs of fossil fuels are increasing the costs of renewables are declining. The International Renewable Energy Agency (IRENA) released a study the shows the cost of onshore wind power generation has dropped 23 percent since 2010, while solar electricity saw a decrease of 73 percent.  Cheaper renewable energy also decreases the cost-effectiveness of fossil fuel subsidies.

Private entities are taking advantage of the ongoing price decline in renewables energy. This is driving the clean energy despite the unwavering support the fossil fuel industry receives from both governments and businesses.

A recent Forbes articles quotes Simon Buckle as saying, "Subsidies tend to stay in the system and they can become very costly as the cost of new technologies falls. Cost reductions like this were not envisageable even 10 years ago. They have transformed the situation and many renewables are now cost competitive in different locations with coal." Simon Buckle is the head of climate change, biodiversity and water division at the Organization for Economic Co-operation and Development.

Renewable energy will win the energy wars but subsidies are slowing the transition. While 100 percent renewable energy is a goal worth striving for, we could accelerate this transition by redirecting fossil fuel subsidies to renewable energy.

Related
Clean Energy is Essential to Climate Action
What Would Happen if Fossil Fuel Subsidies Were Redirected Towards Renewable Energy?
Fossil Fuel Subsidies and Renewable Energy Post COP21
Time to Reduce the Subsidy Gap Between Fossil Fuels and Renewable Energy
The Ongoing Prodigious Growth of Renewables
The Transition Away from Fossil Fuels to Renewables is Well Underway
Clean Energy from Renewable Sources is the Answer but Government Policies are a Problem
Declining Battery Storage Costs are Helping Renewables
The Dream of 100 Percent Renewable Energy is Alive and Well

No comments: