U.S. Electrical Vehicle Sales Growth Continues Ahead of Model 3 Tsunami

During August of 2017, U.S. electrical vehicle sales continued to increase at a respectable pace year-on-year.

According to Inside EVs, total sales for electric-powered cars in the U.S. totaled 16,624 during August. This represents another record — growing by 2,032 or 12.2 percent above 2016’s previous record August total of 14,592.

The Tesla Model S and Chevy Bolt EV held the first and second rank among individual model sales by sending 2150 and 2107 vehicles out to new owners respectively. The 238 mile range Bolt priced at $36,000 before incentives continued to show strong sales growth as Chevy accelerated expanding offerings to new states across the U.S. Model S sales, while holding top position, were down year-on-year — likely in part due to anticipation of the Model 3 ramp-up.

(Elon Musk recently reassured investors that the Model 3 will achieve its 10,000 per week production target in 2018. Image source: EV Network.)

Inside EVs estimates that 75 of the game-changing Model 3 — with best in class features, a 220 to 310 mile range, and a 126 MPGe fuel efficiency rating — were produced and sent to customers during August. If this number is correct, it would signify a somewhat slower ramp than the expected 100 sales for the month. However, this report is preliminary and may be subject to revision. And there have been more than one or two hints circulating around the web that Tesla is actually ahead of its production goals — hitting 200 vehicles by end August (see tweet below).

Presently ranked 30th on the EV sales chart for all of 2017, the Model 3 (with its approximate half-million reservations) is likely to climb into the top 20 by end September. At that point, Tesla expects about 1,500 Model 3s to be produced monthly. By October, monthly sales of the Model 3 may eclipse all other U.S. EVs as production exceeds 5,000.

At this point, the Model 3 will likely start having a noticeable influence on overall U.S. EV sales — with that impact further dilating during November and December. And if Tesla meets its December sales goal of 20,000 units for the Model 3, then the U.S. overall may see December 2017 total EV sales from all models nearly double December 2016 numbers (of nearly 25,000 units).  Meanwhile, through 2018, the Model 3 could help to drive total U.S. EV sales to around half a million or more.

In other words, the U.S. EV market is about to be hit by a tidal wave of very high quality and relatively low cost Model 3s — with profound and long-lasting results. This is good news for renewable energy and climate change response advocates. For such a large wave of electrical vehicles coming to market provides considerable opportunity for reduced carbon emissions from both vehicle based fossil fuel burning and from the ancillary electrical power market where batteries used for EVs can also replace base load coal and gas fired power stations with energy storage linked to wind and solar.

Links:

Monthly Plug-in Sales Scorecard

Plug In Electric Car Sales for August

Tesla Model 3 Production

Tesla Model 3 Information

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India Utility Plans to Build EVs, Startup Bollinger Motors Launches Gritty Electric Truck, Wind Energy Boosters Push Europe to Meet Paris Goals Faster

Internal combustion engine automobile manufacturers and fossil fuel investors, eat your hearts out…

Indian electrical power generation utility JSW has decided to throw its weight behind building electrical vehicles for the larger Southeast Asian market. On the other side of the world, a small U.S. EV startup plans to sell 10,000 to 20,000 off-road all-electric SUVs each year. Meanwhile, still further east in Europe, an industry consulting group is recommending a rapid off-shore wind energy build-out to help address human-caused climate change.

An Indian Electrical Power Company Decides to take a Shot at EV Manufacturing

According to reports from The Economic Times of India, the utility JSW plans to pursue an electrical vehicle (EV) build-out as part of a larger drive by India’s government to have all new vehicles sold in the country be electrified by 2030. The company is outlaying 3,000 to 4,000 crore, or more than half a billion dollars, as an investment to jumpstart its EV manufacturing by 2020.

Though JSW’s previous economic interests have primarily focused on electrical power generation, steel, and mining, the group appears to be adopting a Tesla-like business model going forward by integrating energy storage, charging infrastructure, and electrical vehicles. Prashant Jain, JSW’s chief executive officer noted to ET that:

“India is at an inflexion point and the three businesses that we have identified offer growth. While battery storage and charging infrastructure would be a forward integration for us, electric vehicle is an adjacent business, but we believe it’s a huge opportunity as it will offer level playing field to new entrants.”

Upstart Bollinger Motors’ Serious Off-Road SUV

Across the Pacific in the U.S. a small company out of Hobart, New York, population 47,000, has produced a serious EV sport utility vehicle prototype. The Jeep-Hummer mashup looking thing has an impressive 362 horsepower and can be configured with 120 or 200 miles of all-electric range. A 6100 lb towing capacity and massive wheel base communicate an underlying attitude of grit that’s something entirely new in the electrical auto world and, well, for lack of a better set of descriptors, rough and rugged.

(With the advent of less expensive and more widely available battery packs and electrical drive trains, EV and energy storage companies are starting to pop up all over the place. The above video shows Bollinger Motor’s planned EV off-road truck — which it hopes to produce at a rate of 10,000 to 20,000 per year. JSW, a traditional India-based utility, just threw its own hat into the EV ring this week. With so few EVs available and so much demand for clean energy alternatives, the market at this time appears to be wide open. Video source: Bollinger Motors.)

At $60,000 per truck, it’s well within the traditional off-road market. And Bollinger ultimately plans to sell between 10,000 and 20,000 copies of this mean machine each year — if it can make the regulatory hurdles for U.S. auto manufacturing and find a partner that will help it produce all those thousands of units. A big if — but one that achieved could really help to jump-start the off-road EV market in the U.S.

Looking at traditional auto manufacturers, you kind of have to shrug and say — why didn’t they think of this? But one industry’s apathy is another entrepreneur’s opportunity. Or at least so thinks Bollinger.

Big Wind Energy Build Recommended for North Sea

Electrical vehicles are a key element of a synergistic suite of renewable energy technologies including wind, solar and energy storage that are increasingly capable of replacing fossil fuel burning infrastructure and removing harmful carbon emissions. Rapid growth in these industries enables swift reductions in the amount of heat-trapping gasses from human sources presently hitting the atmosphere.

Facts that were obviously on the minds of wind energy boosters in Europe during recent days as Michiel Muller of energy and climate consulting group Ecofys published a new report recommending a rapid increase in offshore wind development in order for Europe to meet Paris Climate Agreement goals. Muller noted that to prevent increasingly harmful warming, “Europe will need a fully decarbonized electricity supply by 2045. Renewables are essential to making this happen.”

(A graphic description of a large wind energy build-out recommended to help Europe meet its Paris Climate Agreement goals. Image source: Europe’s Growth Rate in Offshore Energy Must Triple to Get Paris Goals in Reach.)

Muller recommends adding significant new off-shore wind energy supplies from North Sea countries like France, Belgium, the Netherlands, Luxembourg, Germany, Denmark, Sweden, Norway, Ireland, and the United Kingdom.

During recent years, turbine size increases and industrial mass production efficiency gains have resulted in falling costs for both onshore and offshore wind generation. Offshore wind, which in the past has been somewhat more expensive than onshore wind or other traditional power sources, is becoming more cost-competitive. And it’s a power source that suffers less intermittency than its onshore brethren. However, lower solar and onshore wind prices present additional renewable energy and carbon emission reduction options for European states.

Links:

Europe Must Triple Off-Shore Wind to Bring Paris Goals Within Reach

Europe’s Growth Rate in Offshore Energy Must Triple to Get Paris Goals in Reach

JSW Energy Plans Electric Vehicles Manufacturing by 2020

JSW Energy

The Bollinger B1 is an All-Electric Truck with 360 Horsepower and up to 200 Miles of Range

Bollinger Motors

Hat tip to Suzanne

China Cracks 100 Gigawatts of Solar Capacity as Musk Pitches More U.S. Gigafactories

When it comes to solar energy, China is on one hell of a roll.

In the first half of 2017, the massive country added a record 24.4 gigawatts of solar electrical generating capacity. This boosted its total solar capacity to 101.82 gigawatts. By comparison, China has about 900 gigawatts of coal generating capacity, but recent coal curtailments provide an opportunity for renewable energy to take up a larger portion of China’s energy market share. Such an event would provide a crucial opening for the world to begin a necessary early draw-down of global carbon emissions in the face of rising risks from climate change.

(The government of China proudly touts its clean energy advances. Trump Administration — not so much.)

This very rapid solar growth rate, if it continues, puts China on track to beat its 2016 record annual solar installation rate of 34 GW. And, already, it is 9 percent ahead of last year’s more than doubling of new annual solar capacity toward a likely 2017 build-out at around 40 GW. China is also adding new high voltage power cables and averaging about 25 GW of new wind energy capacity each year. A stunning combined wind and solar build rate that has led CNN to claim that China is crushing the U.S. when it comes to renewable energy production and adoption rates. With the Trump Administration still wallowing in climate change denial, withdrawing from the Paris Climate Summit, and courting dangerous deals with petro-states like Russia, it’s enough to make you wonder if American technology and climate leadership are a thing of the past.

Back in the states, more progressive American (it’s not tough to beat Trump in this regard) Elon Musk was trying to help prevent just such a slide into backward-looking regression. Addressing 30 state governors at the summer governor’s association meeting, Musk explained that only a 100 by 100 mile square region was needed to capture enough solar energy to power the U.S. and that the battery storage needed for such a system to provide energy 24/7 would only cover a region 1×1 mile in size.

(Elon Musk claims an area of solar panels the size of the blue square could power the U.S. The black square represents the size of the area needed for energy storage to provide 24/7 power. Image source: Tesla.)

This is less than the total rooftop and highway area of all buildings and roads in the U.S. Musk also soft-pitched the notion of new gigafactories to the 30 state governors in attendance. Hopefully, a few will take up what amounts to an amazing economic opportunity. With Nevada seeing major new growth surrounding Musk’s Gigafactory 1 site, you’d think that interest would be high.

Oddly enough, 20 governors were AWOL at the meeting. Primarily republicans, apparently they had “more important” work to attend to than helping America become energy independent while fighting to prevent the fat tail of global climate catastrophe from crashing down on their constituents like a 1960s Godzilla on a mad romp in Tokyo.

Steve Hanley of Clean Technica notes:

“Whether any of the governors will take Elon’s words to heart remains to be seen. Only 30 of them bothered to attend. Many Republicans stayed home so they could focus on challenging issues like how to discriminate against Muslims, slash Medicare rolls, promote more fracking on public lands, and prevent transgender people from using public bathrooms. When you are in government, it is important to keep your priorities straight.”

Links:

China Adds a Record 24.4 GW of Solar in First Half of 2017

CNN

Futurism

Clean Technica

Tesla

Wind and Solar Accounted For 57 Percent of New U.S. Generating Capacity Additions in First Quarter

Policy sure makes one heck of a difference. Thanks to legislation and investments by China, the U.S., Europe and numerous other countries around the world, solar energy has reached price parity or better with natural gas and coal over a growing subset of the globe. In the United States, fully 36 states in 2017 are seeing solar at parity with fossil fuel based generation. And costs for this new, clean energy source are expected to keep falling over at least the next five years as production lines continue to expand and technology and efficiency improves.

Wind, already competitive with natural gas and coal in many areas by the mid 2000s, is also seeing continued price declines as turbine sizes increase and industrial efficiency gains ground. As a result, the two mainstream energy sources most capable of combating human-caused climate change are taking larger and larger shares of the global power generation markets.

(Solar and wind continue to gain a larger share of new capacity additions than competing fossil fuel based generation. Image source: SEIA.)

This trend continued through Q1 of 2017 as about 4 gigawatts of new generation capacity or 57 percent of all new generation came from wind and solar in the U.S. Solar added about 2.044 GW, which was a slight drop from Q1 of 2016. Wind, however, surged to 2 GW — representing the strongest first quarter since 2009. In total, U.S. renewable generating capacity including wind, solar, hydro, biomass, geothermal and others is now at 19.51 percent of the national total. Expected to hit above 20 percent by year-end, renewables have now far outpaced nuclear (at 9.1 percent) and are swiftly closing on coal (at 24.25 percent).

Globally, 24 percent of electrical power generation was produced by renewables by the end of 2016. This share will again jump as 85 gigawatts of new solar capacity and 68 gigawatts of new wind are expected to be added during 2017. As a result, total renewable generation is now set to outpace global coal generation in relatively short order.

Such rapid adds in renewable capacity are being fed in part by expanding solar production around the world and, particularly, in China. During late 2016, solar manufacturing capacity in China had expanded to 77.4 GW per year — with more on the way. And even as production capacity continues to grow in China and across Southeast Asia, places like the U.S. (with Tesla’s Buffalo Gigafactory 2 alone expected to eventually pump out 10 GW of new solar cells each year), Canada, Turkey, Korea, and Mexico are also rapidly expanding the production pipeline. Meanwhile, the global wind production pipeline continues to make significant gains.

(By 2020, global wind and solar generating capacity is expected to roughly double. Rapid growth in renewable energy is a necessary mitigation for harms resulting from human-forced climate change. Image source. FIPowerWeb.)

The rapid additions to renewable energy capacity provide hope that the world will soon start to see falling carbon emissions overall. Such an event is key to reducing harm already coming down the pipe due to human-forced climate change as global temperatures begin to challenge the 1.5 C threshold during the next two decades and as CO2e (including CO2 and all other greenhouse gasses) levels threaten to cross the critical 550 ppm demarcation line.

The strong progress of renewables does not come without a number of concerning difficulties and challenges. These challenges are primarily political — with Trump’s backing away from Paris threatening to upset the emissions reductions apple cart and Suniva’s recent ITC challenge injecting uncertainty into the U.S. solar energy market. Meanwhile, fossil fuel based industry backers continue various attempts to sand-bag or, worse, reverse renewable energy growth.

Despite these various difficulties, renewables like wind and solar will likely continue to gain ground as markets expand, technology and efficiency continue to improve, and as states, nations and industries jockey to claim their own share of the growing renewable energy market windfall. The big question that should concern pretty much everyone, however, is will this expansion in renewables proceed fast enough to afford the world a much-needed chance to slake an extraordinary amount of climate change related damage that’s now moving rapidly down the pipe in our direction.

Links:

SEIA

AWEA

2016 Was the Year Solar Panels Became Cheaper Than Fossil Fuels

FIPowerWeb

Trump Will Withdraw From Paris Climate Agreement

Global PV Manufacturing Expansion Rebounds in Q1 2017

Solar Power in China

Global Wind Capacity Nears 500 GW in 2016

GTM Forecasting More than 85 GW of PV to Be Installed in 2017

Could a Trade Dispute with China End the U.S. Solar Boom?

Spectacular Drop in Renewable Energy Costs Lead to Global Boost

Solar to See 9 Percent Growth in 2017

Wind and Solar Equal More than Half of New Generation Capacity in Q1 of 2017

Hat tip to Greg

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How Goliath Might Fall — Fossil Fuel Industry to Experience Market Crashes Over Next 10 Years

There’s a very real David vs Goliath conflict now underway in the global energy markets. On one side is a loose coalition made up of renewable energy producers and advocates, individuals who are increasingly concerned about global warming, environmentalists, technophiles, people promoting a democratization of the energy markets, and energy efficiency advocates. On the other side is a vast and powerful global fossil fuel industry backed by wealthy billionaires like the Koch Brothers and various national and nationally supported corporations around the world.

Up to 3.4 Trillion Dollars in Bad Fossil Fuel Investments

By the end of the next 1-3 decades, one set of these two forces will have won out — which will, in turn, decide whether the world continues along the path of climate devastation that is business as usual fossil fuel burning, or sees a rapid reduction in burning-related emissions to near zero which will help to mitigate climate harms while effectively crashing the 3.4 trillion dollar global fossil fuel market.

At issue is the fact that wind, solar, and electric vehicles together have the potential to rapidly take over energy markets that were traditionally monopolized by the fossil fuel industry. Earlier this year, a report out from Bloomberg vividly illustrated the stakes of this currently-raging conflict as it relates to oil and a burgeoning electric vehicles industry.

bloomberg-oil-crash

(Electrical vehicles provide hopes for keeping massive volumes of fossil fuels in the ground and similarly huge volumes of carbon out of the atmosphere. This is achieved by greatly reducing oil demand which could crash the oil markets by as soon as the 2020s. Image source: Bloomberg.)

According to Bloomberg, present rates of electrical vehicle (EV) growth in the range of 60 percent per year would be enough to, on their own, produce an oil glut in the range of 2 million barrels of oil per day by the early to middle 2020s. Continued rapid electric vehicle adoption rates would then swiftly shrink the oil market, resulting in a very large pool of stranded assets held by oil producers, investors and associated industries. Bloomberg noted that even if EV growth rates lagged, continued expansion would eventually result in an oil market crash:

“One thing is certain: Whenever the oil crash comes, it will be only the beginning. Every year that follows will bring more electric cars to the road, and less demand for oil. Someone will be left holding the barrel.”

Bloomberg also noted that LED light bulbs are increasing market penetration by 140 percent each year all while the global solar market is growing at a rate of 50 percent per year. And when technologies like LEDs, solar, wind, and increasingly low cost batteries combine, they generate a market synergy that has the capacity to displace all fossil fuels — coal, oil, and gas.

Coal Already Seeing Severe Declines — Oil and Gas are Next

During 2010 to 2016, we’ve already seen a severe disruption of the coal markets globally and this was due in part to strong wind and solar adoption rates. Coal capacity factors are falling, coal demand is anemic and the coal industry has suffered the worst series of bankruptcies in its history. “The coal industry fundamentals remain very bleak in my opinion,” noted Matthew Miller, a coal industry analyst with S&P Global Market Intelligence in a recent report by the Sierra Club. “If there is a light at the end of the tunnel, we can’t see it yet.”

But as bad as things are for the coal industry now, in the timeframe of 2017 through the early to middle 2020s we have a reasonable expectation that renewable energy and efficiencies will produce even stronger market impacts through competition with fossil fuels. Though not as bad off as coal, natural gas has now entered an unenviable market position where rising fuel costs would cause a ramping rate of renewable energy encroachment. A feature that has tended to check natural gas price increases. Meanwhile, presently rising oil prices will only serve to incentivize the current wave of electrical vehicle adoption.

rapidly-falling-battery-prices

(Rapidly falling battery prices along with falling solar and wind energy prices will eventually make fossil fuels non-competitive on the basis of cost. Meanwhile, ramping climate harms produce strong incentives for switching energy sources now. Image source: Bloomberg.)

During this time, first cheap renewables and then cheap batteries will increasingly flood the energy markets. Applications that directly replace fossil fuels in core markets will expand. Meanwhile polices like the Clean Power Plan in the US and COP 21 on the global level will continue to erode policy supports for traditionally dominant but dirty fuels.

Coal, Oil and Gas — Noncompetitive Bad Energy Actors

The choices for fossil fuel industry will tend to be winnowed down. Competition will be less and less of an option. Meanwhile, direct attempts to dominate markets through regulatory capture by placing aligned politicians in positions of power in order to strong-arm energy policy will tend to take place more and more often. But such attempts require the expense of political capital and can quickly turn sour — resulting in public backlash. As we have seen in Nevada, Hawaii, Australia and the UK, such actions have only served to slow renewable energy advances in markets — not to halt them entirely. Furthermore, reprisals against agencies promoting fossil fuels have gained a good deal of sting — as we saw in Nevada this year when a major casino and big utility customer decided to pull the plug on its fossil fueled electricity and switch to off-grid solar in the wake of increasing net metering costs.

All that said, we should be very clear that the outcome of this fight over market dominance and for effective climate change mitigation isn’t certain. The fossil fuel industry is one of the most powerful political and economic forces in the world. And even though they are now bad actors on the issue of climate change — which threatens both human civilization and many of the species now living on Earth with collapse and mass extinction — they still, in 2016, retain a great deal of economic and political clout. And this clout endows these industries with an ability to enforce monopolies that effectively capture various markets and delay or halt renewable energy development in certain regions.

Trends Still Favor Renewables

Nonetheless, the trends for renewable energy currently remain pretty strong, despite widespread fossil fuel industry attempts to freeze out development of these alternative sources. And collapsing economic power through expanding competition by renewables would ultimately result in a loss of political power as well. In such cases, we wouldn’t expect a crash in economic power and political influence by fossil fuel interests to occur in a linear fashion — but instead to reach tipping points after which radical change occurs. And over the next 10 years there’s a high likelihood that a number of these energy market tipping points will be reached.

Links:

Here’s How Electric Cars Will Cause the Next Oil Crisis

Vegas Casino Plans to Leave Warren Buffet’s Nevada Utility

The Coal Industry is Bankrupt

Clean Power Plan

COP 21

Solar in the Desert — PV to Bury Fossil Energy on Price Before 2025

DCIM101GOPRO

(Sunlight in the Desert. Dubai solar park produces electricity at 5.98 cents per kilowatt hour, displacing a portion of the UAE’s natural gas generation. By 2025, solar systems that are less expensive than even this cutting-edge power plant will become common. By 2050, large scale solar, according to Agora, will cost less than 2 cents US per kilowatt in sun-blessed areas. Image source: International Construction News.)

*   *   *   *

Anyone tracking energy markets knows there’s a disruptive and transformational shift in the wind (or should we say sun?). For as of this year, solar has become cost-competitive with many energy sources — often beating natural gas on combined levelized costs and even edging out coal in a growing number of markets.

Perhaps the watershed event for the global energy paradigm was the construction of a solar plant in Dubai, UAE that priced electricity for sale at 5.98 cents (U.S.) per kilowatt-hour. Even in the US, where grid electricity regularly goes for 9-12 cents per kilowatt-hour, this price would have been a steal.

But the construction of this plant in a region that has traditionally relied on, what used to be, less expensive diesel and natural gas generation sources could well be a sign of things to come. For though solar can compete head-to-head with oil and gas generation in the Middle East now, its ability to threaten traditional, dirty and dangerous energy sources appears to be just starting to ramp up.

Solar’s Rapid Fall to Least Expensive Energy Source

A new report from Berlin-based Agora Energiewende finds that by 2025 solar PV prices will fall by another 1/3, cementing it as the least expensive energy source on the planet. Further, the report found that prices for solar energy fall by fully 2/3 through 2050:

Solar to be least expensive power source

(Solar is at price parity in the European Market now and set to fall by another 1/3 through 2025 according to a report by Berlin-Based Agora Energiewende.)

In Europe, solar energy already costs less than traditional electricity at 8 cents (Euro average) per kilowatt hour. And at 5-9 cents, it is currently posing severe competition to energy sources like coal and natural gas (5-10 cents) and nuclear (11 cents). But by 2025, the price of solar is expected to fall to between 3.8 and 6.2 cents per kilowatt-hour (Euro), making it the least expensive power source by any measure. By 2050, solar energy for the European market is expected to fall even further, hitting levels between 1.8 and 4.2 cents per kilowatt hour — or 1/4 to 1/2 the cost of fossil and nuclear power sources.

These predictions are for a combined market taking into account the far less sunny European continent. In regions where solar energy is more abundant, the report notes that prices will fall to less than 1.5 cents per kilowatt-hour. That’s 2 cents (US) for solar in places like Arizona and the Middle East come 2050.

IEA Shows Solar Ready For Battle Against Carbon-Emitting Industry

Already, solar energy adoption is beginning a rapid surge. As of this year, it is expected that 52 gigawatts of solar capacity will be built. But as prices keep falling this rate of build-out could easily double, then double again. By 2025, the IEA expects that solar PV alone could be installing 200 or more gigawatts each year. And by 2050 IEA expects combined solar PV and Solar Thermal Plants (STE) to exceed 30 percent of global energy production, becoming the world’s largest single power source.

Solar Parking Lot

(Parking lots and rooftops provide nearly unlimited opportunities for urban and suburban solar panel installation. Image source: Benchmark Solar)

Considering the severe challenges posed to the global climate system, to species, and to human civilizations by rampant carbon emissions now in excess of 11 gigatons each year (nearly 50 gigatons CO2e each year), the new and increased availability of solar energy couldn’t come soon enough. We now have both an undeniable imperative to prevent future harm coupled with increasingly powerful tools for bringing down world fossil fuel use and an egregious dumping of carbon into the atmosphere and oceans. But we must implement these tools — wind, solar, EVs, efficiency, biomass, geothermal, biogas, tidal and others — as swiftly as possible if we are to have much hope for avoiding the worst impacts of human-caused climate change.

Links:

Solar Energy Emerging as Cheapest Power Source

Solar at 2 Cents per Kwh

Solar Seen as Unbeatable

Dubai Solar Bid Awes Energy Market Players

US Wind Hits Record Low Price of 2.5 Cents Per Kilowatt Hour; 9-12 Gigawatts of Renewable Energy Additions Ramp up for 2014

The excuses for failing to rapidly adopt renewable energy systems grow thinner and more contorted with each passing day…

During 2013, costs for wind energy plunged to record low levels as both wind and solar set to make substantial new capacity gains in 2014 and 2015, according to a recent report from the US Department of Energy.

PPA (Power Purchase Agreement) pricing for wind during 2013 plunged to the very low range of 2.5 cents per kilowatt hour after levelized costs were included for new wind energy projects. For comparison, the average range of PPAs for all new energy sources in 2013 was 2.5 to 5 cents per kilowatt hour and included wind, solar, natural gas and coal. This made wind energy the least expensive source for new energy in 2013 following a long trend of overall falling prices.

Price of Wind at all time low

(Price of wind hits all time low in 2013 at 2.5 cents per kilowatt hour. Image source: US Department of Energy.)

Solar prices also fell to within competitive ranges, leading to record adoption rates for that energy source for the US in 2013.

New wind generation is expected to hit between 4 and 6 gigawatts in 2014 and between 5 and 9 gigawatts in 2015. Overall, 13 gigawatts of new wind energy capacity is now under construction, with the bulk focusing on the wind-rich region of the central US.

Solar is also expected to make strong gains in 2014 by adding between 5 and 7 gigawatts of new capacity. Rapidly increasing US growth in solar energy installations has been led by a combination of factors including plummeting prices and a rising adoption of home solar energy through rooftop leasing arrangements targeted to save consumers money on their power bills.

By end of 2014, total installed wind capacity is expected to hit around 74 gigawatts in the US. Meanwhile, US solar capacity is likely to climb above 18 gigawatts by year end. Altogether, these combined energy sources, when taking capacity factor into account, will have produced about 5% of the US’s electricity.

US renewables forecast 2

(US renewable energy net electrical generation from 2013 [historic] through 2018 [projected]. Image source: SUN DAY Forecast using US Energy Information Agency sources.)

With new construction projects continuing, total US renewable energy generation is expected to exceed 13.4 percent by the end of 2014 and 16.11 percent by the end of 2018.

Strong Gains Necessary to Mitigate Human-Caused Climate Change, Barriers to Adoption are Now Chiefly Political

Though the combined continued net price drop and cumulative substantial renewable energy generation gains are encouraging, they will need to advance at ever faster rates if we are to have much hope for rapidly mitigating the worst effects of human caused climate change. US generative capacity additions for renewables should probably be in the range of 2-4 times their present rate of adoption and goals should be set for the total replacement of US ghg emitting generation capacity by or before 2050.

With prices for renewable electricity generation now at levels competitive with traditional fossil fuels, and, in the case of wind, far less than fossil fuels, the primary barrier to adoption is now political. Fossil fuel related organizers have, through lobbying and media related efforts, worked on a number of fronts to water down renewable energy incentive legislation and slow or block policy measures that would speed their adoption. Many of these groups are aligned with conservative members and climate change deniers in Congress, but also include a broad array of outside organizations.

These groups represent a final, but strong road block to adoption of permanent mitigations to climate change with broad ranging benefits such as practically unlimited base fuel sources and freeing economic systems from the specter of energy scarcity and insecurity. Given both the lurking risks of human-caused climate change and the prospective benefits of widespread renewable energy generation, the time for a broad push for rapid adoption of renewable energy systems is now.

Links:

US Department of Energy Wind Energy Report for 2013

SUN DAY Forecast

Price of Wind at All Time Low of 2.5 Cents Per Kilowatt Hour

Related Reading:

Major Court Clears the Way to Let Renewables onto the Grid

Proposed Coal Export Terminal Suffers Major Setback

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