“Clean Energy: Leaving a healthy planet for future generations!”
By Linn Smith
April 9, 2016–Things are going very well in the Clean Energy field for 2016. According to a Bloomberg News article titled, “Solar and Wind Just Did the Unthinkable,” the unpredictable happened last year–oil, coal and gas bottomed out. Even though Europe had its smallest investment in renewables in nine years, one half of the world’s annual investments in clean energy came from emerging clean energy markets, “The world is now adding more power capacity from renewables every year than from coal, natural gas and oil combined…..as fossil fuel prices crash.” It’s predicted by the International Energy Agency that renewables will lead the world’s energy market by 2020.
Investment in Fossil Fuel Exploration Declines
According to the NY Times, one of the reasons for the crash of the fossil fuel industry and rise of clean energy is the fact that investment in exploration for fossil fuels has dropped dramatically. Mining and exploration in the U.S. dropped from $135 billion in 2014 to $88 billion in 2015 and the drop will continue in 2016. It boils down to supply and demand, which is partially driven by more energy efficient-cars.
Tesla Model 3
Public interest in electric cars is on the rise, as witnessed this past week by Tesla’s Model 3, with pre-orders hitting 325,000 in the first week–and pre-orders are rapidly growing. The cost of the Tesla is about half of the previous models, costing around $35,000 for the basic Model 3.
In 2015 a poll showed that 48% of Americans said they would consider a hybrid car, while interest was at 21% for electric cars. The biggest concern for most people has been the price. With the unveiling of Tesla’s Model 3 recently, this concern has been met by an affordable electric car. The price has been cut, making it not only affordable but competitive with gas models causing people to line up at Tesla dealerships across the country.
Electric Cars and the Oil Crisis
A Bloomberg article titled, “Here’s How Electric Cars Will Cause the Next Oil Crises” states, “With all good technologies, there comes a time when buying the alternative no longer makes sense,”—as happened with smartphones, TVs, ect. The reason electric cars now make sense—price drop, less expensive batteries and better performance–plus the charging infrastructure is in place. When you travel the country you will see charging stations every couple hundred miles along major highways. Prediction of electric car growth? Tesla estimates the growth rate will be at least 60% through 2020, cutting approximately 2 million barrels a day of oil demand! (The same growth rate that pushed the Ford Model T past the horse and buggy in 1910!) Tesla, Chevy and Nissan all plan to sell electric cars for under $30,000 in the next several years!
Electric Cars: Less Pollution
But there is still the fact that electric cars aren’t any cleaner than the energy used to create the electricity that provides their charge. The Sierra Club’s article “Electric Vehicles: Myth Vs.Reality” dispels many of the arguments against electric cars. They state, “According to a range of studies, an electric car leads to significantly less carbon dioxide pollution from electricity than the CO2 pollution from oil of a conventional car.” As we retire more coal plants and provide cleaner sources of power, the carbon footprint of an electric car drops even further.
If you have solar panels for your house, the panels not only provide electricity but will recharge your electric car. Www.solarchargedDriving.org says you will need about 7-10kw of power on your roof for both your electricity and car charge. Also you can find out if there is a green option through your local utilities company.
So should you divest in oil and reinvest in renewables? Now might be the time to do it. Warren Buffet, an advocate for clean energy, offers investment bonds at 5.4% interest through his company, MidAmerican Energy. There is also a site that offers a direct buy into crowdsourcing solar startups through http://www.joinmosaic.com at a 4.5-6% interest rate. This company has a very good reputation.
So—2016 looks like a great year for clean energy!