Clean energy: Cost is decreasing

Renewables are getting cheaper…

Economics will be a more powerful force in the world’s transition to clean energy than policies or regulations. Thanks to technological advances, the cost of wind, solar and other renewables has fallen dramatically in recent years. In the US, wind power is cheaper than any other form of energy, costing just USD25 per megawatt hour. According to the US Department of Energy, wind energy costs have fallen by 41 per cent since 2008 while those for utility-scale solar power have declined by 64 per cent.

…and likely to help further reduce the US’s carbon footprint

The US’s share of global carbon emissions has been shrinking in recent years even as its economy has grown. The improving economics in the US clean energy sector and the emergence of natural gas as a primary power source are partly responsible for this trend. Another factor is the energy efficiency regulatory framework put in place at the state and local government level, over which the Trump administration has little control.

China has the incentive and wherewithal to decarbonise

Air pollution is deadly, accounting for around 12.6 million premature deaths per year, according to the World Health Organization. The problem is particularly acute in China, the world’s biggest polluter, whose cities are regularly blanketed by choking smog.

Levels of PM2.5 – microscopic particles than can cause breathing problems – reached 630 micrograms per cubic metre in Beijing earlier this year, more than 20 times the level the WHO considers safe. They have been as high as 900 micrograms. Authorities have responded by setting in motion a radical energy reform programme, whose effects will be felt far and wide. China’s emissions have been levelling off more quickly than expected as it scraps plans for new coal plants and invests in solar, wind, nuclear and energy storage.