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Economics Renewable Energy Supply Chain

A Quick Thought on the Economics of Renewable Energy

I glanced at my natural gas bill today while cleaning up the house and was a little shocked at myself. I pride myself on being better than most on conservation (at least cognizant of it) and my usage was quite high. That was last month and I can only imagine this month will get worse. And yes, I do live in a rental house right now (with an energy efficient house in my near future), but that’s the case for a lot of people, especially lower income. So I got to thinking, what will stop people from using so much energy in their frosty, great northern homes?

The answer is, of course, money. It always has been. But now we’re in a climate where the costs are beginning to rise so fast that people who sat dormant before will begin to take action. In fact, this will also likely move people in all economic groups to take action; the most important of these being the middle- to lower-income groups. Why? Because costs like heating are a larger percentage so there will be a more voluminous cry from the masses for cheaper energy (not that we don’t love our green friends, pushing the renewable energy agenda and buying recycled elephant dung paper as Christmas gifts for family). Hopefully more people clamoring for energy efficient devices and alternative fuels will push us towards a tipping point (which I incorrectly identified as a singularity), where renewables become the norm and cost of energy will drop due to the abundance of natural energy, waiting to be converted. So as prices continue to increase–and the temporary drop in gas prices is undoubtedly temporary–the push from most people will be towards a more sustainable future.

How about you? Have you felt the need to push for more conservation lately solely on energy costs? Let me know in the comments.

Photo by nothern green pixie

Categories
Politics Renewable Energy Supply Chain

McCain, Gas Prices & the Enron Loophole – Keith Olbermann

I am definitely a fan of Keith Olbermann. There is no denying that he is more than a little left of center, but I feel that he is a bare-knuckled reporter first and foremost and that he will take it to just about any politician, including Obama. Also, I know it’s corny, but I like that he has adopted the Edward Murrow sign off (“Good night and good luck”) and I think that some of his blunt and thorough investigative reports have earned him the right to do so. He definitely gets a little more riled up though…

Anyway, I think this report that Olbermann gives (see link below) is pertinent to this blog because of the effect of gas prices on renewable energy. Aside from the fact that there really are some crook speculators out there (Ben Graham is rolling over in his grave), I have to wonder if this blog would even exist if the gas prices weren’t so high? Would America really care about the environment if our pocket books weren’t shouting at us? Would anyone really care about solar power other than the environmentalists who were investigating it in the first place? I think the answer to that is no. Americans would have happily gone about their world if gas prices stayed the same. There would still be some fringe interest about the environment and about generating cheap, renewable energy (eventually). But otherwise, we’d still be loving our SUVs here in America.

As I’ve written about before, renewable energy will require economies of scale. There’s no other way to really bring down the prices enough for anyone other than Hollywood celebs and Internet startup gurus to afford the power methods available today. And so even though they mention the banks coming in and hurting the consumers in this clip (as I also mention here), it might be a necessary step in the overall evolution of renewable energy.

To make a big impact in renewable energy we have to accept that it will have to be big business.

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