- Oct 8, 2021 1:06 pm GMT
Coal and gas prices arising pretty well everywhere as a result of shortages caused by a number of factors, among them investors realization that greenhouse gas emissions limits may limit the value of their investments and the recovery time to get their money back. Under these circumstances some oil and gas companies are diverting investment money into renewable energy sources while others are staying the course. The ones that elect to divert their investment money into other areas benefit from higher prices for their products to the takes around 4 years to recover the energy invested in manufacturing solar panels. A number of new technological developments offer the hope that this may drop to as low as one year. For wind power the energy invested in making the turbines is recovered within 3 to 4 months on the best sites. A poor site with a transmission line of 100 km set of 50 might increase this by 25% or so, but it cannot be claimed to be significant.
At the moment this energy must come from fossil fuels because there is nothing else.
So demand is increasing, without a consequent matching increase in supply, which sends prices up . A number of geopolitical factors, including restrained gas supplies from Russia are also contributing to increasing natural gas prices in Europe. The relative contribution of these 2 factors is anybody's guess, but there is a risk of a backlash against green energy, deserved or not.
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