The Energy Zeitgeist
11 July 2019
In the last ten years the renewable energy market has experienced gigantic change. This was the theme of the recent panel discussion held at BDO's Global Annual Natural Resources Conference in London in June 2019. With renewable energy replacing traditional energy sources of coal, oil and gas at an increasing rate, it is disrupting markets and governments on a scale equivalent of previous global revolutions, albeit driven by the ecological and environmental imperative to manage climate change.
Richard Russell, RES, Abid Kazim, Next Energy Capital, Chris Newton, DNV GL and Gordon Johnston, Allianz Capital Partners joined Marc Reinecke from BDO to discuss the challenges and opportunities related to a global shift to a less carbon –intensive energy supply.
- Primary energy will peak in 2032
- Fossil energy use will decrease past 2020
- Subsidies of wind and solar have been dropped in most countries
- New build costs of wind and solar are beginning to undermine marginal costs of traditional energy, meaning there will be a number of stranded assets that are susceptible to a loss of value
- The drop in the cost of solar is causing consumers to drop off the grid
- The way we use and consume energy is fundamentally changing
- Some of the technology is not quite there – but it is coming
- The rise of the Internet of Things will have a huge impact on predicting demand with the connectivity of devices
- There is a wall of money falling into renewables – but challenging as costs are continuing to go down, returns are going down
- Aligning the consumer, producer, investor and regulator is the challenge at hand.