Renewables: It’s Really Happening
Some folks doubt that renewable energy is making an impact and enabling the migration away from fossil fuels, yet these people find themselves on an island that’s getting smaller with each passing day. Here’s an article that describes how the largest independent power producer in the world will announce a strategy for its transition to solar PV, and move away from fossil fuels, in the coming weeks. We’re not talking about some liberal arts college in New England (see pic) putting PV on its dorm roofs or divesting itself of coal and oil; we’re talking about solar energy at an amazing scale, accomplished by an organization that is finely attuned to making profits.
Great time to be alive.
The article does not state from where the power will come when the sun is not shining. It’s truly bizarre that that problem is usually ignored even though it is critically important.
Craig,
I imagine the article you found was written by one of the earnest young folk in the photo !
Taking off your rose tinted glasses, you might have noticed that the term “largest Independent Power Power” needs a little qualification.
Engie SA (formerly GDF-Suez) although a public company, after sorting through the labyrinth of inter-related subsidiaries, it’s reasonable to assume Engie is 35% owned by the Government of France, 3% by the French Treasury, 5% by employees, and complex holdings by the PRC’s China Investment Corporation may exceed 30%.
Setting that aside, the article is full of inaccuracies and distortions. (Nor is Engie SA “finely attuned to making profits ” as the 2015 annual returns show ! ).
Engie SA is an enormous corporation, but one with very political masters. It’s also very diverse, with many differing corporate components subsidiaries, entities and partnerships. (sometimes in competition with each other).
While it’s true that Engie has been reducing it coal interests (especially in India, Turkey and now the US) it has been actively seeking partners and investment to expand further into the natural gas industry. The Engie subsidiary Global Gas & LNG, is aggressively pursuing exploration and production of gas and oil, procurement, routing of gas and liquefied natural gas etc.
Engie has also been acquiring stakes in natural gas transport, supply and storage infrastructure. Engie is aggressively expanding it’s businesses in the energy services industry, including multi-technical services in engineering, installations, technology etc.
Engie just confirmed a deal with Government of Belgium for a 10-year extension to operate the Doel 1 and Doel 2 nuclear reactors. Engie is currently seeking partners to finance the future replacement of its nuclear interests in France.
The cash strapped conglomerate is disposing of some aging and poorly performing thermal power generating plants in the US, to relieve debt.
The group does have a significant investment in renewable energy generation, most wind with some solar. Engie’s enthusiasm has been long on political rhetoric, but cautious when it comes to investing in renewable energy without solid,strong and reliable government subsidies. Engie learned from the Spanish melt down, the risks associated with depending upon subsidies which can be easily altered.
What Engie’s actions do illustrate is that Coal will experience increased competition from NG, increased fears of government penalties and environmental concerns, while the costs associated with of coal extraction are increasing. It’s inevitable that these factors will mean coal investment will increasingly become an investment for specialized investors.
So, Craig while I share your enthusiasm for any investment in renewable energy, the announcement by Engie must be viewed in perspective.
The idea that Engie is about to abandon NG, Nuclear or even all it’s coal interests is sheer fantasy !