The day has come.                                                                              Renewable energy is now cheaper than fossil fuel.

The breakthrough in technology and new devices focused on renewable energy has made panel and wind industry cheaper.

 

A challenge for humanity.

One of the major challenges facing humanity today is to reduce our energy dependence on fossil fuels and to replace it with renewable, clean energy that does not pollute the environment.

Up until a few years ago the main problem was the excessive price of building an industry based on solar panels and wind "windmills", but to apply it demanded a strong subsidy from the states, who often did not agree to support this transition Energy (take Spain for instance).

However, the latest report from the World Economic Forum says that it can now generate an industry of solar panels and wind energy with the same investment as the fossil fuel industry.

 

Seen the price of electricity this winter…..

The document, which was published in mid-December and presented as a "Manual for investment in renewable infrastructure: A guide for institutional investors", states that in 2016 the investment price of fossil and renewable energy in 30 countries reached the same figure and that in some of them it is cheaper to bet on clean energy.

"It is estimated that more than 30 countries have already achieved investment-free parity, and about two-thirds of the world should achieve parity over the next two years. If the cost of electricity rises 3% per annum, 80% of the global market would reach network parity in the next two years, according to Deutsche Bank, "the report said.

 

So if electricity prices rise even more the parity will be reached even sooner. If we take the Spanish situation for example where this winter due to the very complicated method (and nebulous to say the least) of auctioning electric energy we had increases of over 30%.

The price of electricity reached its maximum on the coldest day of the year and especially from 8.00pm at night. The price of electricity in the wholesale market touched on the auction held on Tuesday a new high since December 2013. And according to the current system, the cost per megawatt recorded in the one-day auction is applied to consumers the next day. At the auction on Wednesday, again, were rises, which will be transferred to the consumption next day, so it will be again more expensive to turn on the light, the electric heating or put on the washing machine.

So I dare to say that today renewable energy must be accepted as an economically viable option because it provide a stable investment opportunity in the long term and are not threatened by inflation or these dubious wholesale auction of electricity which we have in Spain.

Renewable energy technology, especially solar and wind, has made exponential gains in efficiency in recent years, enough to achieve economic competitiveness and, in an increasing number of cases, grid parity. For instance, the unsubsidized, levelled cost of electricity (LCOE) for utility scale solar photovoltaic, which was highly uncompetitive only five years ago, has declined at a 20% compounded annual rate, making it not only viable but also more attractive than coal in a wide range of countries. By 2020, solar photovoltaic is projected to have a lower LCOE than coal or natural gas-fired generation throughout the world. Renewable infrastructure has moved much closer to utility like investments and no longer presents as risk technology.

 

The fossil industries are one of the great contaminants of our planet.

Renewable energy has reached a turning point and now stands as the best opportunity to reverse global warming.

The report also recalls that just ten years ago the solar industry investment was estimated at about $ 600 / MWh, while that of fossil fuels was around $ 100 / MWh. However, by 2016 the solar panel industry has been valued at $ 100 / MWh, while that of wind power at $ 50 / MWh.

The factor of this decrease in prices is due to the fact that the technology for renewable energies has become cheaper and more efficient, which has allowed to obtain better results with the solar panels and wind turbines.

 

Among the countries that are investing more in renewable energies, are the Asia-Pacific bloc (APAC) stands out as the most interested. However, in America, Central and Eastern Europe and Africa (EMEA), investment in this type of energy has also increased.

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