Yes, I am referring to renewable energy.
If the production of renewable was doubled by 2030 it would increase the global GDP and save trillions of dollars on pollution expenses, according to a recent reports by the International Renewable Energy Agency (IRENA).
The idea that renewables are expensive is no longer true.
This interesting report shows that the idea that renewables energies are expensive is no longer true, and that is thanks to the lower costs; especially if we count the impact on pollution or climate change of other energies. What is require in in Spain is a state policy that enables the energy transition with a stable regulatory framework, allowing citizens to gravitate to self-consumption energy or to implant the so called environmental taxes in line with other European countries.
What is significant about this reports?
There is increasing evidence that renewables are not only good for the environment but also cheap, and good for the economy. The study shows that if we double the production of renewable in 2030, the GDP will improve. In Spain, where we have sun and wind, we could save money from energy import and produce more wealth in this country.
The cost of solar photovoltaic has declined in five years more than 80%"
One important thing that makes clear this report are the external costs of fossil and nuclear energies that are not included in their prices: the effects of pollution, waste, climate change, and diseases associated with these environmental impacts. It is a matter of energy policy; we urgently require an environmental tax reform. In Spain and in other countries have taxes for tasks that produce wealth (the work of ordinary people, small entrepreneurs, etc.), but not the bad things like pollution. It is shown that by taxing these factors the environment and the economy will improve. This is confirmed by the International Monetary Fund (IMF) and many other very serious economists, in Spain and abroad.
Prices are dropping every year.
This is the main point of the report. Prices on renewable energy are coming down in cost and are now fully competitive in many circumstances. People have the notion that they are expensive, and that is no longer true. It is happening as with computers: a brutal decline in prices is on its way. The cost of solar photovoltaic has been reduced in five years by as much as 80%. Renewables have entered into a virtuous circle: lower prices so that more citizens want to install, which makes it fall further. This effect is reinforced and leads to an exponential growth we are seeing in the world. Another striking fact is that in these last three years worldwide more renewable megawatts have been installed than in other types of energy (gas, coal or nuclear).
What are the countries that stand out in renewables?
No doubt the number one is China, but is because it is a huge country. China is leading the renewable energy sector for several years. Also India where they have a big ambitions programme for photovoltaic installation, and Latin America, Brazil, Chile or Uruguay. Another market with great potential in the coming years is the US where renewables have already taken off.
And the worst of the class are…?
In Europe the situation is not as good. Not much has been done on energy policy. It takes more ambition and continuity to lead, the market. At the bottom of the class is of course Spain.
There hasn’t been a serious approach by the Spanish politicians on renewable as we all know.
Heavy investments are required and avoid changing the rules of the game every few years. We need legislation stability, to ensure that investment have a degree of safety. In Spain there was a legal change that affected the photovoltaic industry and left many small investors stranded.
Spain, was a country world leader in renewable.
We were pioneers, but many mistakes were made; We learned the hard way. Some things have not been done well, but a number of companies have survived, for better and for worse and have undertaken major projects worldwide.
How could Spain recover that leadership?
Politicians should take it seriously. We should have a state policy that enables energy and energy transition efficiency. A new policy should be develop for the self-consumption solar panel and allow people to legally produce their own energy, which today does not happen because of the famous tax sun. It is not so simple I know.
The electricity sector is very complex. The need to cover the costs for the electricity grids and to design appropriate rates both for the renewable and the non-renewable energy. That is the job to be done.