Blog 4: Australia renewables now cheaper than fossil fuels

According to the chief executive of Bloomberg New Energy Finance, Michael Liebreich, “the perception that fossil fuels are cheap and renewables are expensive is now out of date.” Bloomberg has released a new analysis that shows non-subsidized renewable energy is now cheaper than coal and other fossil fuels in Australia. Australia, like many other nations, has put a lot of effort into the development of clean energy technology, which is now beginning to pay off. Their research shows that the cost of wind energy has dropped by 10% since 2011 while the cost of solar photovoltaics decreased by 29% in the same amount of time. The article notes that now even the four largest banks in Australia are cautious to finance new coal “without a substantial risk premium due to the reputational damage of emissions-intensive investments – if they are to finance coal at all.” It is also noted that Australia’s strict carbon pricing laws aided in making the transition to renewable energy.

This is a really wonderful article. Immediately the author states the claims made by those who have mobilized in counter-action against the renewable energy movement. And immediately after that, the author proceeds to debunk each of those claims. Australia is proof that the switch to renewable energy is possible without subsidizing the new technology and without an economic downturn. Australia is a fairly wealthy country with thriving businesses, wealthy citizens and politicians, and it has now set the precedent that, after some research and development, these technologies will become cheaper, more efficient, and, of course, better for the environment.  There is even a call to action, directed at the United States, to hop on the renewable energy bandwagon.

Article here

Jessie White

3:09pm 

2/21/13