It's not only about the environmental benefits, renewables are now aggressively competitive in the energy market. With that being said, renewable energy is becoming more accessible and is beating the price of gas and oil more and more in energy projects around the world. This energy revolution had a turning point around 2016
Globally, Fossil Fuels Have Already Lost Against Renewable Energies
"Fossil fuels have lost; the rest of the world just does not know it yet." Eddie O'Connor, Executive Chef of Mainstream Renewable Power
Now the price of renewable energy is comparable to that of fossil fuels for electricity generation. By 2020, the majority of renewables will be cheaper than fossil fuels in this area. From 2010 to 2017, the price of solar photovoltaic dropped from 0.36 to 0.10 USD / kWh (level price of energy), some solar tower project also saw their cost reach 0.17 USD / kWh while the wind offshore has arrived at 0.14 USD / kWh. For comparison, the cost of electricity from fossil fuels is between 0.18 and 0.05 USD / kWh. In addition, the curves show that this reduction in the cost of renewable energies for electricity production will continue, especially for solar thermal and photovoltaic. This means that in the coming years, energy production projects using renewable energy will be systematically more profitable than those made from fossil fuels. That's why renowned media like Bloomberg or Financial Times have already announced that fossil fuels have lost the battle against renewables.
In addition, research on energy storage is becoming more and more advanced especially thanks to industries like Tesla; the cost of batteries is now in free fall. For renewable energies which have a problem with the non-continuous availability of the resource, it is a very important point which is about to be settled. With these incredible advances in energy storage, we will surely be able one day to export solar energy as we export oil today!
Photo Credit: NREL
Industrial solar heat competes with gas and oil
This global trend is also followed at the industrial level with the production of heat. Remember that the industry consumes more heat than electricity in the world and that the heat production solutions by solar concentration or by biomass combustion are more and more efficient and follow the global trend of lowering the levelized price of renewable energy.
Although, global industrial heat is produced respectively by 40% of fuel and 41% of gas, and concentrated solar heat and biomass are the only alternative options for renewable energy to produce heat in industrial processes. The energy of parabolic solar thermal concentration, which is an ideal solution for the industry, thus becomes more and more accessible and especially profitable. Recent projects now show that the price of solar thermal beats the price of gas and oil solutions when local conditions are favorable, but that this is still an unwell solution in many countries.
A profitable solution, but not well known
Industry decision makers know very little about the existence of SHIP technology (SHIP: Solar Heat for Industrial Processes). Even in Mexico, which is a growing market in the field, a recent solar payback poll conducted on industrial decision makers has shown that despite the presence of 96 solar heat projects on Mexican soil, the vast majority of industrialists in the country knew little about this technology:
Rackam, an Innovative and Visionary Company
Today Rackam is already positioned in this market and benefits from its international experience with its smart SHIP solutions. We already offer industrial solar solutions in many countries around the world. Our goal is clear: we want to work to change the energy paradigm of this world and ensure an economic transition to a greener, more vibrant and renewable world while providing a solution for businesses to become more independent and diversify their energy resources.
For more information:
Joséanne Bélanger-Gravel, Director of Business Development: email@example.com