Renewable Energy Development
Renewable Energy Development
Slump in Oil Prices Has Advantages and Disadvantages for Renewable Energy Development
Recently, Saudi Arabia and Russia injected a large amount of oil into the market, and oil prices have fallen below the $ 30 / barrel mark. This price slump may have a profound impact on the global transition to clean energy.
Traditional logic holds that low oil prices are bad news for renewable energy. First, it means lower gasoline and fuel prices, making electric vehicles and biofuels less competitive. It also means that some oil companies may shift their focus to natural gas production and drive down prices, reducing the competitiveness of solar and wind energy as a source of electricity. At the same time, the economic impact of the plummeting oil prices on oil giants and governments will also pose a threat to renewable energy. If governments and oil giants are forced to cut spending, renewable energy investments and subsidies are likely to be among the first to be cut.
According to Fatih Birol, the head of the International Energy Agency, the plunge in oil prices will definitely put downward pressure on the demand for a clean energy transition. At the same time, due to the economic slowdown, Bloomberg New Energy Finance (BNEF) expects global solar demand to decline significantly.
Althoughinvestment has been rising rapidly over the past 10 years, by 2018, investment growth has begun to slow. Taking these factors into account, the plunge in oil prices is likely to have a short-term negative impact on the global energy transition.
However, in the long term, the recent plunge in oil prices may accelerate the use of clean energy. In the past few years, the market has been advocating the ESG investment trend. Renewable energy has become increasingly competitive. Some non-renewable energy projects have difficulty obtaining approval due to concerns about investment in distress. Today, as oil prices fall below $ 30 / barrel, oil and gas projects can no longer earn higher returns than clean energy projects.
It is worth noting that before viable clean energy solutions are proposed, oil demand and prices will rebound and new projects are undoubtedly needed. But the second plunge in oil prices in six years has highlighted market volatility and the steady value of renewable energy solutions. As global attention shifts from fossil fuels to clean energy, competition for clean energy is becoming increasingly fierce. Oil giants and governments are redoubled efforts to diversify energy investments.
The above information is provided by.
在线联系供应商
Other supplier products
Renewable Energy Development | Renewable Energy Development Slump in Oil Prices Has Advantages and Disadvantages for Renewable Energy Development Recently, Saudi Arabia and Rus... | |
renewable power generation facilities | Advantages and disadvantages of photovoltaic power generation shared by . Advantages of photovoltaic power generation: Conventional energy sources ... | |
no electricity area micro power grid | The PID problem is the PV performance degradation caused by high voltage to the earth for a long time. Advantages The industry's first Dynamic Ad... | |
Zenergy PID Offset box protect the PV power station | Zenergy PID Offset box protect the PV power station The beginning of 2020 is bound to be extraordinary; the word is the face of all kinds of diffi... | |
micro-grid power system | Guatemala Comercial This is a grid-connected photovoltaic project with 400kW total power in Frater Ciudad San Cristobal, Guatemala. It has been d... |
Same products
Working Clamp Lamp | 卖方: ZHEJIANG TOPMB ELECTRICAL LIGHTING CO.,LTD | TOPMBportable led work light with clamp, free up your desk space while providing you calm, bright... | |
Ultra Wide Monitor Desk Lamp | 卖方: ZHEJIANG TOPMB ELECTRICAL LIGHTING CO.,LTD | TOPMB ultrawide led desk lampcan help you to lighting up your work area when you you have a doubl... | |
Task Lamp | 卖方: ZHEJIANG TOPMB ELECTRICAL LIGHTING CO.,LTD | Magnifier lamp is a really essential tool for anyone who is engaged in precision assembly, inspec... | |
Read Lamp | 卖方: ZHEJIANG TOPMB ELECTRICAL LIGHTING CO.,LTD | A great LED very bright reading lampsplays an important part in any desk work.TOPMB LED Eye Care ... | |
Reading Desk Lamp | 卖方: ZHEJIANG TOPMB ELECTRICAL LIGHTING CO.,LTD | A wider, usb powered reading lampthat can protect your eyes when reading, there is a wide selecti... |