Alternative Energy Faces New Hurdles
Biofuels, solar, wind, geothermal — everyone knows about these alternative energy sources because presidential candidates list them off in debates and speeches like they're naming their children.
But with the credit crisis squeezing capital, and oil and natural-gas prices plummeting, the outlook for alternative energy development suddenly looks less gung-ho. What does this mean for drivers? That the development of workable biofuels will slow, and that alternative energy sources like wind and solar — which would make electric vehicles so clean — face long delays.
This summer, Americans saw clearly why the switch to renewable non-fossil fuel energy is so important. The question is, will falling gas prices let them forget? In the 1980s, a newly born market for renewable energy collapsed and the U.S. entered a period of unrestrained use of fossil fuels.
State mandates for alternative energy sources will keep the market alive this time, but worldwide financing for new construction of alternative energy projects has already fallen drastically, in just one quarter — from $23.2 billion in the second quarter to $17.8 billion in the third.
Ethanol and biodiesel projects are having trouble raising capital. Tesla Motors has delayed production of its all-electric Model S sedan. Wind turbine companies have delayed projects, and solar power plants look more expensive than ever. Natural gas prices fell from a high of $13.58 per thousand cubic feet in July to $6.79 currently.
The next president was already going to be facing the massive challenge of switching the U.S. to a renewable energy economy, but with the economic challenges ahead, that task just became much harder.
Alternative Energy Suddenly Faces Headwinds (New York Times)
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I suppose it's not a bad idea to temper expectations (something neither candidate is doing on this issue)for alternative energy, but, come on, is there ANY industry that isn't facing new hurdles?
This is what happened in the 1990's. World jumped from Nuclear & Renewables to Oil & Gas only to see that a decade later, Oil prices shooting upto the sky.
Bettter to have a mix and promote the renewable, so that next time the oil prices rise again, we can easily move fast into renewables and save ourselves.
Everyone blames the mortgage and loans for this recessionary trend, but no one blames the fact that nearly $800 billion extra dollars have gone out of USA in the form of Oil Bill. Hope people start realising it.
Poor idea to ease off on clean/renewable energy. Why? Because we'll all be in a pickle when the currently cheap...er oil and gas run out without warning.
if we as a society decide that global warming is important enough to do something about it, then let's do it. and if the $800 billion a year is true and we rather see that money stay here and not be at the mercy of others, then let's do it.
the issue is that these techs will be money losing and not hold a candle to oil when it comes to energy output for at least the next few years. is like switching from a 30mpg car that is paid for to 20mpg car with $300/month payments when we are talking money.
talk is cheap. if we really mean it, it will be done. if we don't mean it, the oil addiction continues.
Hopefully the next administration will step up and create an energy policy that does not promote maximum consumption.
Lower prices will make this task a little easier. As will the the fresh memory of $5 gas. Also, throw on top of this the pain we will be causing to the petro-states that we are not terribly friendly with (Russia, Iran, and Venezula).