In recent news, the concept of green energy and the drive to electrify everything has faced some challenges and setbacks. The initial vision of a green energy paradise promised by politicians and advocates is starting to be met with economic and practical realities.
One of the economic realities is the significant losses reported by wind turbine manufacturers like Siemens and General Electric in the first half of this year. Siemens reported losses of nearly $5 billion, while General Electric reported losses of $1 billion. Quality control issues have arisen for turbine manufacturers, resulting in costly warranty repairs. In Europe, offshore wind projects have not met their promised output, and operating costs have been higher than expected, leading to project cancellations and increased expenses. For instance, Avangrid, the developer of the Commonwealth Wind project in Massachusetts, paid $48 million to exit their existing contract and rebid the project at a higher price. Similar situations have occurred with other wind projects in Rhode Island and around Martha’s Vineyard.
Furthermore, companies like Ørsted, developing wind projects off Long Island and the New Jersey coast, have stated that without additional subsidies and higher contract prices, they will face significant losses. These challenges have resulted in a decrease in new wind power capacity in 2022 compared to the previous year.
On land, opposition to wind and solar projects continues to grow, particularly in rural communities that do not want to host large-scale turbine farms and transmission lines. This opposition poses challenges for expanding renewable energy efforts.
In the realm of electric vehicles, companies like Ford and Rivian have incurred significant losses per vehicle sold. Despite claims from alternative energy proponents that these challenges are temporary, the financial struggles of these companies raise concerns about the economic viability of widespread electric vehicle adoption.
The impact of alternative energy programs has been particularly felt in California, with New York and New Jersey following a similar path. These states have implemented mandates to ban internal combustion vehicles, require all electricity to be zero-emissions, and force the replacement of gas and oil-burning heaters with electric heat pumps. Additionally, gas stoves are being regulated out of existence. Such measures are likely to result in higher gasoline and energy prices for consumers.
In order to meet the increasing electricity demand caused by the push for electrification, massive amounts of offshore wind and solar panel installations are planned. However, the intermittency of wind and solar power necessitates a significant increase in backup resources. The plan proposes a reserve margin of over 100%, meaning there must be an equal or greater amount of generating capacity in reserve for every MW of capacity in operation. This poses challenges and raises questions about the feasibility of such a plan.
Moreover, the plan calls for the development of dispatchable emissions-free generating resources (DEFRs) and battery storage. However, DEFRs that burn pure hydrogen, produced from surplus wind and solar power, have yet to be invented. The infrastructure required for transporting hydrogen also does not exist. Relying on the invention of new technology by a certain date is not a realistic approach.
Despite these challenges and setbacks, it is clear that the pursuit of green energy and electrification continues. However, it is crucial to address the economic realities, practical limitations, and potential consequences to ensure a sustainable and viable transition to a greener future.
Denial of responsibility! VigourTimes is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
