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Technology Stocks : Investing in Exponential Growth

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From: Paul H. Christiansen1/15/2018 3:31:39 PM
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The Three Stumbling Blocks to a Solar-Powered Nation

As a fraction of our energy mix, renewables in general and solar power in particular are growing faster than ever. What seemed like an impossibility just a decade ago—the displacement of fossil fuels from the U.S. power system, if not the world’s—is increasingly a reality. Here are three possible visions of our renewable-energy-powered future:

1. There’s mass defection from power grids, as citizens and corporations alike end a dependence on regulated monopolies that date all the way back to the days of Thomas Edison.

2. The same utility companies that now handle energy continue to oversee and balance a grid increasingly powered by renewable sources, and we hardly know the difference.

3. The landscape gets politically messy and technologically diverse, varying by locale, as utilities, customers and politicians battle over new ways to produce and harvest energy.

Whichever scenario we end up with, solar power is an odds-on favorite source, because of its abundance. Every hour, our sun bombards the Earth with enough light to satisfy humanity’s energy needs for an entire year. But at least three barriers stand between us and that sunny future.

Problem 1: Cell Cost

For solar power to meet 30% of the world’s electricity needs, it will need to fall from its current cost of a dollar per watt of electricity to 25 cents per watt, says Varun Sivaram, a science and technology expert at the Council on Foreign Relations, a nonprofit think tank.

Problem 2: Energy Management

One reason we’re going to need cheaper solar cells is that the more solar there is on the grid, the less valuable it is to add more. This happens because sunlight is intermittent. It isn’t hard to get to the point where solar is producing too much power at some times of day, and none at all when it’s needed most. The first solar panel added to the grid helps offset midday consumption, but the last one to be added might be completely unnecessary, because the grid might already be saturated when it’s capable of producing the most power.

Problem 3: ‘Soft’ Utility Costs

Some are skeptical that technology is the real roadblock to the spread of solar. It could be the high so-called soft costs related to building utility-scale solar power plants, including project design, permitting, siting and interconnection to the grid.

Select here to read the entire article.
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