Hey friends, it’s me, clean energy journalist Julian Spector, and it’s my pleasure to welcome you back for my first newsletter of 2021. If my sources are correct, this is going to be a major year for clean energy, so buckle up. The new year is a time to reflect, and for me, it’s a reminder that a year ago I was sitting in the high desert of Joshua Tree and resolving to start a newsletter about the surprising success of clean energy. I did it! The challenge now is how to follow up—“keep doing that same resolution” doesn’t have quite the same ring to it, but hey, this doesn’t spontaneously compose itself.
Since solar and wind energy "fuel" costs are zero while fossil fuel for energy plants have to be paid every year, the key to driving down renewable costs is the costs of capital If renewables paid 4% instead of 8% for capital, their Levelized Costs of Energy would be cut almost in half. Lets hope 2021 results in lower cost of capital for renewable projects, and less subsidies for fossil fuels.
Since solar and wind energy "fuel" costs are zero while fossil fuel for energy plants have to be paid every year, the key to driving down renewable costs is the costs of capital If renewables paid 4% instead of 8% for capital, their Levelized Costs of Energy would be cut almost in half. Lets hope 2021 results in lower cost of capital for renewable projects, and less subsidies for fossil fuels.