Can Renewable Energy work? If you ask nicely.

Can Renewable Energy work? If you ask nicely.

The answer is yes and no. However, contrary to popular belief, the determining factor is not cost. We have subsidies to thank for that. However, renewables meaning solar and wind can only work in some circumstances and the determine factor of it all is geography. Barring unforeseen and marketed advances in electricity grid interconnection technology or high pressure hydrogen shipping, we don't have the geographic fortune to see wind or solar work for the vast majority, 80%+ of the world's population. For the other 20% though, it would do wonders with cheap electricity. Thus, the yes and no above.

To help elaborate on the above claim, let's look at this map curtesy of Peter Zeihan's last book linked below.

https://zeihan.com/portfolio/global-solar-potential-2/

The black dots show worlds population centers and meanwhile, the dark red or ideal zone are where Solar makes economic and technical sense even with subsidies. That mind you is during the last decade where global capital markets were rich with investments. Going forward, we may not see that vigor from capital markets towards the same sectors due to a coming dearth of capital density.

Without getting detoured too much, let's take the time to notice that nearly all population centers are not in the ideal zones. Except for some notable exceptions in Texas, USA and a few others places.

Thus, one must rationally conclude that, unless we see ways to transport electricity in wires over long distances or convert them to hydrogen somehow, we won't see practical or economical solar where most people live and need cheap electricity. The same can be said about wind too, mind you.

Make what you will of the above and thanks again for Peter for the map. But I hope this will enhance your judgements on renewables for the future. It is even more reason to think harder about hydrogen production which is the closest solution for problem of renewables spouted above.

Thank you for reading.



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