Energy Musings contains articles and analyses dealing with important issues and developments within the energy industry, including historical perspective, with potentially significant implications for executives planning their companies’ future.
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June 15, 2023
Energy Transition Not Going As Smoothly As Expected
Pressure is building to accelerate the green energy transition. Moving away from the use of fossil fuels and replacing them with renewables, primarily wind and solar, is demanded. The pressure increased last week with the arrival of Eastern Canadian wildfire smoke that enveloped the Eastern and Middle Atlantic regions forcing people indoors and back to using face masks. The problem with this push is that many of the critical ingredients for a successful transition have been overlooked and are beginning to bite. Start with inflation in critical commodity prices and add in the lack of sufficient components for an expanded electric grid. Permitting the massive expansion of the grid is a problem. Less obvious, but critical, is the lack of skilled and trained workers needed to build and operate the new energy system. The list of overlooked issues is growing and resolving them will not be easy or quick. The green energy transition is experiencing a bumpy road. READ MORE
Energy Transition Not Going As Smoothly As Expected
The yellow haze that descended on East Coast cities last week sent environmental activists into overdrive claiming the smoke from eastern Canadian wildfires was proof of climate change. Wildfires are caused by fossil fuels and burning them needs to end immediately they claimed, ignoring weak forest management issues. Residents west of the Mississippi River might laugh at the claims that wildfires create unacceptable smoke. Those Western U.S. residents have been living with wildfire smoke for years, but now that smoke is in the East, it is a national emergency.
Exhibit 1. Canadian Wildfire Smoke Covers New York City
Source: Getty Images
At the heart of the climate change movement is the belief we must transition the globe’s energy system to save the planet. It means abandoning fossil fuels and powering our economies with only “green” energy – primarily wind, solar, and hydrogen. While there are other green energy sources, they are geographically limited and often involve agriculture, another greenhouse gas-producing industry.
The energy transition is embraced by politicians worldwide who are acting on this belief, but primarily in developed economies. Leaders of these countries are willing to sacrifice their citizens’ standards of living for clean energy. This is a sore point for developing economies which are told to transition before they have reached developed economies’ standards of living, capping economic improvement.
Wind and solar are preferred in the energy transition push. Their fuels are free, and the technologies seem simple. They are considered the cleanest of all the green fuel options. However, to power grids, these part-time energy sources require backup power – more expensive and producing more carbon emissions – and subject to increasing blackouts. We know the wind does not always blow and the sun does not always shine. During those times, consumers need other energy sources to generate their electricity. Thus, the cleanest green energy fuels are hurting family budgets.