The Future is Sunny
- Several European countries have announced they will ban all gas and diesel vehicles by 2040.
- Coal peaked in 2013, and oil and natural gas are now more expensive than solar, so solar has been rapidly on the rise the past few years.
- We may see oil peak between 2021 and 2029, and in 20 to 25 years from now, solar may account for 80% of the energy produced around the world.
- In the next two years, over 100 models of electric cars are expected to debut, and not just from specialty electric car companies, but from the big three carmakers as well.
Did you know that several European countries have announced they will outlaw the sale of gas and diesel vehicles by 2040? It might sound crazy, and you may be wondering how they plan on getting around. There’s been a lot of change in the energy arena that I am going to cover that could make this goal attainable.
You may or may not know that coal peaked in 2013 and has been on a downward slide, so much so that coal companies have lost 75% of their value. In fact, this past year, China decided to stop all plans on building 103 coal burning plants they had in the works. What are they doing instead?
Solar. But isn’t solar expensive? Not anymore.
In the Middle East, solar is down to 2.6 cents versus natural gas and coal, which are running around 4 cents, so it’s cheaper to use solar energy. That might come as a bit of a shock after hearing how expensive solar has been in the past, but over the past two years, it’s doubled in capacity. While it’s still low (around one to two percent of the world’s energy production) it’s gone up very rapidly in a short amount of time. This is because energy producers are seeing the cost savings with solar and are choosing to build solar plants versus traditional coal, gas, or even hydro plants.
So, what are the ramifications of this?
According to the experts, we may see the peak of oil between 2021 and 2029, like we did with coal. That should give you some pause, because oil prices are going to start going down, and will continue to do so. On the current glidepath, 20 to 25 years from now, we may see 80% of our energy generated by solar.
When you are looking at where these different energy sources are going, how they are evolving, recognize that there’s a very big shift that’s finally here and making a difference. So when you look at your investments, and at how you are running your life, you might be looking at getting an electric car. And guess what? There are over 100 models coming out in the next two years, and we’re not just talking Tesla here, we are talking about the big three carmakers as well.
There’s a real sea change coming in the energy arena, it’s all shifting, and solar is on the rise. Battery energy is just behind solar in terms of coming down in price as well, so I’m sure we’ll be hearing more about that in the future as well.
Until next time, enjoy.
Gary Klaben is in our Glenview, IL office and serves our clients who are now located all over the country. Instead of being afraid of change, Gary is always looking at how technology will effect clients and bringing the best of it into the practice. Whether advising his clients, mentoring his team, or coaching entrepreneurs, he is always simplifying complexity and motivating others to take the next action that’s right for them.
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