The clean energy sector is entering a phase of dramatic change in which business models are being transformed against a backdrop of regulatory uncertainty, as the industry emerges from a challenging period caused by the global economic downtown. Technologies and business structures that were once abandoned, are now being revived in several key sectors.
Energy systems need to also be measured according to the potential risks associated with them in the advent of failure. And the actuarial costs of these risks need to be better understood and included into the market price for the energy that these systems produce. This post examines this catastrophic downside risk of nuclear and fossil energy focusing on the recent events in Japan and on the BP oil spill as two recent examples of hugely expensive catastrophes. It poses the question why should the taxpayers and the public bear the burden of these costs in this manner artificially lowering the price these energy sectors are thus able to charge for their products.
The disaster at the Fukushima-Daiichi nuclear power plant has highlighted the importance of nuclear energy to Japan and the power long wielded by the nuclear sector. But that influence now is sure to wane, to the relief of opponents who have fought for years to check nuclear’s rapid growth.
A new study reveals that nuclear energy and other traditional energy supplies like fossil fuels cost are and will continue to rise and not likely ever go back down. Meanwhile, renewable energy has achieved a “downward cost curve” over the last decade, and they are likely to continue to fall in price.
Sustainable Energy – Without the Hot Air, written by David MacKay, Professor in the Department of Physics at the University of Cambridge is available for free as a download. Addressing the sustainable energy crisis in an objective manner, the book analyzes the relevant numbers and organizes a plan for change on both a personal level and an international scale—for Europe, the United States, and the world. In case study format, this informative reference answers questions surrounding nuclear energy, the potential of sustainable fossil fuels, and the possibilities of sharing renewable power with foreign countries. While underlining the difficulty of minimizing consumption, the tone remains positive as it debunks misinformation and clearly explains the calculations of expenditure per person to encourage people to make individual changes that will benefit the world at large.
