April 26, 2015

IT'LL NEVER FLY, ORVILLE:

Like shale oil, solar power is shaking up global energy (Reuters, 26 April 2015)

Japan is retiring nearly 2.4 gigawatts of expensive and polluting oil-fired energy plants by March next year and switching to alternative fuels. Japan's 43 nuclear reactors have been closed in the wake of the 2011 meltdown at the Fukushima power plant after an earthquake and a tsunami - since then, renewable energy capacity has tripled to 25 gigawatts, with solar accounting for more than 80% of that.

Once Japan reaches cost-revenue parity in solar energy, it will mean the technology is commercially viable in all G7 countries and 14 of the G20 economies, according to data from governments, industry and consumer groups.

A crash in the prices of photovoltaic panels and improved technology that harnesses more power from the sun has placed solar on the cusp of a global boom, analysts say, who compare its rise to shale oil.

"Just as shale extraction reconfigured oil and gas, no other technology is closer to transforming power markets than distributed and utility scale solar," said consultancy Wood Mackenzie, which has a focus on the oil and gas industry.

Oil major Exxon Mobil says that "solar capacity is expected to grow by more than 20 times from 2010 to 2040."

Investors are also re-discovering solar, with the global solar index up 40% this year, lifting it out of a slump following the 2008/2009 financial crisis, far outperforming struggling commodities such as iron ore, natural gas, copper or coal.

Posted by at April 26, 2015 6:19 AM
  

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