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Rising Rates. Electricity rates are rising at a pace faster than the most absurd models I saw back 20 years ago. With the demand continuing to increase and the economy thirsty for growth underpinned by that demand, i.e. data centers. There is also a renaissance for manufacturing which requires new energy access with high capacity which translates into new utility capex, all of which is made more expensive given where today’s cost of money is. In some ways, utilities are like banks, they front the capital for infrastructure and generation (mostly infrastructure) which is then recouped by selling electrons and power via demand charges. The problem is that the total capex is spread across the board and consumers, which are largely reducing their demand, are also paying for the infrastructure investments for the corporate growth load. Solar net metering gets a knock for costing consumers money, but in reality solar has reduced the need for distribution investments.
- PV-Magazine: U.S. electricity rates rise about 5% annually – outpacing inflation
- Canary Media: The US clean energy manufacturing revolution is real
- Bloomberg: Texas Snow Threatens to Unleash Blackouts and Travel Chaos
- The Hill: Solar panels are powering through US West wildfire smoke – Study
- New York Times: A Key Part of Biden’s Climate Law Was Built to Survive Trump. Now, the Test.
- Reuters: Biden team wraps up expanded clean energy credit guidance
- Renewable Energy World: Pentagon adds world’s largest EV battery maker to blacklist, posing problems for Tesla, Ford, and GM
- Energy Storage News: New York utility Con Edison launches RFP for bulk energy storage projects
Opinion
Best, Yann