Fossil fuels are gradually giving way to renewable energy

In May, the Dubai Ministry of Water and Electricity said that it has received several plans for solar power projects, and the wholesale price of electricity after completion will be less than 3 cents per kWh. This sets a new contract price for global solar power transmission to the grid, and is far below the benchmark price for electricity purchases from coal-fired power plants in the country and other countries.

In the UK, which is famous for its cloudy days, solar panels in May deliver more electricity to the grid than coal-fired power plants. In Los Angeles, where energy demand is enormous, the American Electrochemical Association is installing solar panels to power hundreds of thousands of households at peak demand, replacing gas-fired power plants that are on standby to increase power to the grid.

Trina Solar, the world's largest solar panel manufacturer, said it has started selling products to 20 new markets last year, from Poland to Mauritius, from Nepal to Uruguay.

Consulting firm Wood McKinsey said that in the past two years, the cost of producing shale oil in the United States has been cut by 40%. Recently, LNG-loaded cargo ships sailed from the United States to the Gulf countries, supplying excess production in North America to Dubai and Kuwait.

The global energy system is undergoing earth-shaking changes. Obviously, the world is turning to renewable energy, and at the same time, it has gradually reduced its dependence on oil, natural gas and coal from the proportion of total consumption.

In the fossil fuel market, some fuels, such as natural gas, are becoming more popular than other fuels such as coal. The question for policy makers and industry experts is how long can these changes last? How fast is it happening?

For decades, skepticism about the latest trends in the energy sector has been generally sensible. Assets such as oil fields and power plants are large investments, and operating life can last for decades, so changes in fuel structure and power generation assets are slow.

In June, BP's chief economist Spencer Dale released an interesting chart showing the speed of adoption of existing energy and technology, and clearly shows that this is often a long process. For example, in 1899, natural gas could only meet 1% of the world's primary energy demand; 50 years later, this proportion rose to 8%.

Although renewable energy has grown rapidly in recent years, the base is very low. According to BP data, last year, modern renewable energy, mainly biofuels, wind and solar energy, did not include hydropower or traditional biomass energy, and only met 2.5% of the world's primary energy needs.

Having said that, there are also examples of historical changes in the energy system that have changed rapidly after reaching the turning point. At the end of the 19th century and the beginning of the 20th century, oil consumption has been growing steadily, but it really took off during and after World War I, because the warships turned from coal to fuel, and the Army was mechanized with gasoline and diesel engine vehicles.

In 1973, the Arab world imposed an oil embargo on the United States and other countries, and after the Chernobyl nuclear accident in 1986, nuclear power developed a similar leap.

Today, policies introduced by governments to address the threat of climate change are factors that drive changes in the energy system.

At last year's Paris Climate Conference, 195 countries and regions made commitments to take measures to address climate change. This shows that no matter how much political controversy this issue may cause in the United States, global pressures cannot disappear quickly.

There are several innovative technologies that are expected to bring more changes to some areas of the energy industry. If it is proposed, a small modular nuclear reactor that can be put into operation in the United States or the United Kingdom by 2025 can save costs.

At the same time, fossil fuel companies have made progress in maintaining their competitiveness. In the past two years, not only have oil and gas prices plummeted, but in the long run, demand is expected to weaken and supply will be more abundant. The valuation of oil and gas companies has been seriously affected.

In addition, some new energy technologies have not made much progress, such as power plants that can capture and store their own carbon dioxide emissions. Policymakers generally believe that carbon capture has become essential if humans intend to continue to enjoy the benefits of fossil fuels while avoiding environmental pollution.

In addition, the development trajectory of renewable energy and other low-carbon energy sources will obviously not be a straight line. Bloomberg New Energy Finance data shows that since the record high in 2015, investment in clean energy has lost momentum this year. In the first half of this year, clean energy investment fell by 23% year-on-year.

Even so, the factors that are needed for a fairly sudden and far-reaching energy transition are on the way, and the trigger may be an unexpected surge in oil prices. If China or India make a large-scale policy commitment to electric vehicles, it will have a dramatic impact on the oil demand outlook. (The British "Financial Times") (Xing Yu translation)

Medical Disinfect

Medical Ethanol,84 Disinfectant,Medical Disinfect,Medical Grade Alcohol

Henan Diyi Medical Technology Development Co.,Ltd. , https://www.diyimedical.com