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| Wind, solar power soar in spite of bargain prices for fossil fuels | Wind, solar power soar in spite of bargain prices for fossil fuels |
| (about 2 hours later) | |
| In normal times, a months-long slide in energy prices would be enough to rattle a man who makes wind turbines for a living. Yet amid a worldwide glut of cheap fossil fuels, business is blowing strong for Vestas Wind Systems and its CEO, Anders Runevad. | In normal times, a months-long slide in energy prices would be enough to rattle a man who makes wind turbines for a living. Yet amid a worldwide glut of cheap fossil fuels, business is blowing strong for Vestas Wind Systems and its CEO, Anders Runevad. |
| The company posted record gains in 2015 and inked major deals to build wind farms in the United States, Europe, Africa and Asia. That boom in turbine sales was part of a global surge for wind and solar energy, which occurred despite oil, coal and natural gas selling at bargain rates. | The company posted record gains in 2015 and inked major deals to build wind farms in the United States, Europe, Africa and Asia. That boom in turbine sales was part of a global surge for wind and solar energy, which occurred despite oil, coal and natural gas selling at bargain rates. |
| “We’re seeing very good momentum across the board globally,” said Runevad, a soft-spoken Swede whose firm is now the world’s biggest producer of wind turbines. “We’re seeing growth in every region.” | “We’re seeing very good momentum across the board globally,” said Runevad, a soft-spoken Swede whose firm is now the world’s biggest producer of wind turbines. “We’re seeing growth in every region.” |
| Vestas’s performance is emblematic of the changing fortunes for renewable energy, an industry that achieved a number of milestones this year.Massive new projects are under construction from China and India to Texas, which now far outpaces California as the nation’s leading wind-power state. Just this month, the United States crossed the 70-gigawatt threshold in wind-generated electricity, with 50,000 spinning turbines producing enough power to light up 19 million homes. | Vestas’s performance is emblematic of the changing fortunes for renewable energy, an industry that achieved a number of milestones this year.Massive new projects are under construction from China and India to Texas, which now far outpaces California as the nation’s leading wind-power state. Just this month, the United States crossed the 70-gigawatt threshold in wind-generated electricity, with 50,000 spinning turbines producing enough power to light up 19 million homes. |
| Energy analysts say the boom is being spurred in part by improved technology, which has made wind and solar more competitive with fossil fuels in many regions. But equally important, experts say, are new government policies here and abroad that favor investment in renewables, as well as a growing willingness by Wall Street to pour billions of dollars into projects once considered financially risky. | Energy analysts say the boom is being spurred in part by improved technology, which has made wind and solar more competitive with fossil fuels in many regions. But equally important, experts say, are new government policies here and abroad that favor investment in renewables, as well as a growing willingness by Wall Street to pour billions of dollars into projects once considered financially risky. |
| [This could be the one of the biggest thing to come from the Paris climate talks] | [This could be the one of the biggest thing to come from the Paris climate talks] |
| “Renewables have turned a corner in a fundamental way,” said Dan Reicher, a former Energy Department assistant secretary who is now executive director of Stanford University’s Steyer-Taylor Center for Energy Policy and Finance. | “Renewables have turned a corner in a fundamental way,” said Dan Reicher, a former Energy Department assistant secretary who is now executive director of Stanford University’s Steyer-Taylor Center for Energy Policy and Finance. |
| While solar and wind power have been expanding for years because of steadily falling costs, recent regulatory and financial decisions have set the stage for continued growth for years to come, according to Reicher and other energy experts. | While solar and wind power have been expanding for years because of steadily falling costs, recent regulatory and financial decisions have set the stage for continued growth for years to come, according to Reicher and other energy experts. |
| In the United States, these include the Obama administration’s Clean Power Plan, which requires states to reduce emissions from power plants, and the latest congressional budget compromise, which extended tax credits for wind and solar energy. Also key was this month’sclimate accord in Paris, where more than 190 countries approved a plan to reduce pollution from fossil-fuel burning worldwide. | In the United States, these include the Obama administration’s Clean Power Plan, which requires states to reduce emissions from power plants, and the latest congressional budget compromise, which extended tax credits for wind and solar energy. Also key was this month’sclimate accord in Paris, where more than 190 countries approved a plan to reduce pollution from fossil-fuel burning worldwide. |
| “The policy base for renewables has strengthened, both on the incentives side and through mandates,” Reicher said. “At the same time, the financing of renewable-energy projects has become a mainstream business for Wall Street. The early-stage investments from Silicon Valley for clean energy were small potatoes compared to the massive investments Wall Street is making. It truly is a global business.” | “The policy base for renewables has strengthened, both on the incentives side and through mandates,” Reicher said. “At the same time, the financing of renewable-energy projects has become a mainstream business for Wall Street. The early-stage investments from Silicon Valley for clean energy were small potatoes compared to the massive investments Wall Street is making. It truly is a global business.” |
| [Oil prices keep falling. Here’s why.] | [Oil prices keep falling. Here’s why.] |
| Signs of the industry’s momentum appear in surprising places. | Signs of the industry’s momentum appear in surprising places. |
| In China, the world’s leader in both coal consumption and greenhouse-gas emissions, demand for coal is down for the second straight year, while investment in solar and wind is soaring, according to figures released this month by the International Energy Agency. China is expected to double its wind-power capacity to nearly 350 gigawatts over the next decade, more than any other country. Officials also intend to generate 200 gigawatts of solar by 2020. | In China, the world’s leader in both coal consumption and greenhouse-gas emissions, demand for coal is down for the second straight year, while investment in solar and wind is soaring, according to figures released this month by the International Energy Agency. China is expected to double its wind-power capacity to nearly 350 gigawatts over the next decade, more than any other country. Officials also intend to generate 200 gigawatts of solar by 2020. |
| India recently unveiled plans to install 175 gigawatts of renewable energy by 2022, and African nations have committed themselves to adding 300 gigawatts of clean-energy capacity by 2030. | |
| A gigawatt—literally a billion watts—is roughly the amount of energy needed to power 700,000 typical American households. By comparison, the current capacity of the entire U.S. electric grid is just under 1,100 megawatts. | A gigawatt—literally a billion watts—is roughly the amount of energy needed to power 700,000 typical American households. By comparison, the current capacity of the entire U.S. electric grid is just under 1,100 megawatts. |
| Still, the industry is experiencing rapid growth across the country. Solar installations were on track to hit a new yearly high in 2015, with 7 gigawatts installed and more in the construction phase. Nationwide, wind power now accounts for nearly a third of all new electric-power capacity. | Still, the industry is experiencing rapid growth across the country. Solar installations were on track to hit a new yearly high in 2015, with 7 gigawatts installed and more in the construction phase. Nationwide, wind power now accounts for nearly a third of all new electric-power capacity. |
| “We are experiencing a clean energy revolution in the United States,” Energy Secretary Ernest Moniz said in November. “We have the tools for a cleaner and more secure energy future.” | “We are experiencing a clean energy revolution in the United States,” Energy Secretary Ernest Moniz said in November. “We have the tools for a cleaner and more secure energy future.” |
| [The best year yet for U.S. solar power] | [The best year yet for U.S. solar power] |
| Energy experts caution that renewables still have far to go. Wind and solar together account for only about 6 percent of current U.S. electricity generation, compared to about 39 percent for coal. And wind and solar companies have yet to conquer the biggest challenge for renewables: How to cheaply store energy so it is reliably available on cloudy or calm days. | Energy experts caution that renewables still have far to go. Wind and solar together account for only about 6 percent of current U.S. electricity generation, compared to about 39 percent for coal. And wind and solar companies have yet to conquer the biggest challenge for renewables: How to cheaply store energy so it is reliably available on cloudy or calm days. |
| Analysts also warn that renewables could suffer if prices for natural gas remain at such historically low levels for many months or years. For now, however, industry officials say cheap fossil fuels are having little impact on purchase orders. | |
| At Vestas Wind Systems, which is based in Denmark, Runevad said the recent drop in prices for traditional fuels has prompted some of his customers to actually increase their spending on wind farms, especially in countries that are heavy importers of petroleum. | At Vestas Wind Systems, which is based in Denmark, Runevad said the recent drop in prices for traditional fuels has prompted some of his customers to actually increase their spending on wind farms, especially in countries that are heavy importers of petroleum. |
| “Some countries are having a budget surplus now because of low oil prices, and they’re using that money to invest in new infrastructure,” he said. “For importing countries, it’s a net-positive. Because of the uncertainty with gas prices, we haven’t seen any of our wind customers say, ‘Let’s build a gas-fired plant instead.’” | “Some countries are having a budget surplus now because of low oil prices, and they’re using that money to invest in new infrastructure,” he said. “For importing countries, it’s a net-positive. Because of the uncertainty with gas prices, we haven’t seen any of our wind customers say, ‘Let’s build a gas-fired plant instead.’” |
| Runevad, who recently signed major deals to sell turbines to China and India, is confident that developing economies will ultimately choose renewables over cheap coal. India and China both suffer from high levels of air pollution—mostly because of their heavy use of coal—that contribute to thousands of premature deaths annually. | Runevad, who recently signed major deals to sell turbines to China and India, is confident that developing economies will ultimately choose renewables over cheap coal. India and China both suffer from high levels of air pollution—mostly because of their heavy use of coal—that contribute to thousands of premature deaths annually. |
| “These countries need additional electricity,” he said, “but they’re also seeing a good opportunity with wind to skip over a generation of technology.” | “These countries need additional electricity,” he said, “but they’re also seeing a good opportunity with wind to skip over a generation of technology.” |