Exploring Hydrocarbon Depletion
Page added on August 16, 2013
Germany’s second largest energy company (RWE) made a stunning admission yesterday. Well, stunning if you have head your head stuck in the sand when it comes to the rapid evolution going on in the energy world.
RWE announced that “Due to the continuing boom in solar energy, many power stations throughout the sector and across Europe are no longer profitable to operate” and as a result announced that it will take 3.1GW of Fossil Fuel generation capacity offline because ”its no longer competitive.”
In simple terms, without any fuel cost (and against rising coal, gas and environmental costs) renewables are lowering energy prices in the market, a point highlighted by EPEXSPOT (a European power exchange) which today traded peak power at almost 3% LESS than the base load energy price (USD$0.04219 Versus USD$0.4353). The following graph demonstrates the changing trend over the last 12 months in the Austrian and German market.
There is more to complex energy trading markets than this simple story but two things are patently clear and proven by this public statement;
Now lets be 100% clear here; sending any non renewable business broke, or in much of Australia’s case, wrecking State budgets by stripping returns from State owned assets is not “a win” for anyone. I don’t know a single reasonable person in the renewables sector who wants that outcome.
Quite simply, there is a change going on and like so many others, we are simply asking for the bs to stop and for us to all get on with the job of evolution.
The truth of the matter and the alternatives are so blindingly obvious I just wonder what it’s going to take.