The great energy conundrum

Everyone wants cheap, reliable and environmentally friendly power. Global power demand is expected to increase by 67% by 2040. This is fuelled by the switch from oil-based transport to electricity propelled transport. Wood Mackenzie have recently reported over the last five years solar power has fallen by 54% and wind by 29%. Whilst solar and wind are cheaper than gas; they do different things in balancing supply and demand. Interestingly, with the rapidly falling price of batteries stored renewable energy has the potential to displace gas generated electricity but it is unlikely in the foreseeable future to replace gas for city heating or for cooking. Many people around the world still do not have electricity as hard as it may be to believe - they have no Internet no fridges no television and no lights in the bathroom at night. For many of these people, particularly in Asia, the prospect of coal-fired electricity which is baseload is critical for their development. The cost of solar and wind power remaining 30% above coal-fired generation which can have gas sequestration attached. As a compassionate society are we prepared to say to these people you cannot have the Internet, refrigeration or lights at night. I am glad I am not a policymaker.

Paul Raftery

www.paulraftery.com.au