By pricing the value of wind energy according to when it is needed most, markets stimulate the development and sale of wind turbines configured to generate output over longer periods in lower winds, reducing the variability of their production
Using less energy to create each unit of economic wealth is one of the fastest and cheapest ways of bringing down CO2 emissions. For every dollar invested in energy-saving technology the return is two to four dollars. Yet the rich rewards of energy efficiency remain a largely hidden opportunity. The current issue of FORESIGHT Climate & Energy Business takes a good hard look at why investment in energy efficiency is such a hard sell and what needs to be done to unleash the enormous potential of a global business sector just waiting for take-off. FORESIGHT uncovers the way forward. Experience the new magazine of record for international energy professionals.
We face a fundamental change of the cost structure on the supply side and a need for a fundamental change.
They [the European Commission] are looking at this stuff backwards. I still think they are convinced the short-term market model could work even though they are also starting to realise that you need something parallel, with long term price signals that give investors confidence to invest in infrastructure and allow them to see a decent market return.
Despite tremendous cost decline of wind and solar technologies, electricity prices will probably remain too low to attract the level of investment needed.
The greatest barrier to overcome is the integration of variable renewables into electricity systems. This will require developing power system flexibility and also a friendly deployment of variable renewables.
The payback period for energy saving investments can be painfully long and the risk of no payback frighteningly big. There are ways to tear down both barriers. Energy efficiency part 1/5
Companies are not investing enough in energy efficiency in order to reap its benefits. This is the economic oddity of energy efficiency, says Brian Motherway, head of energy efficiency at International Energy Agency. Energy efficiency part 4/5