How to Unlock US$100 trillion in Renewable Energy Investment Opportunities

  1. Renewable energy and energy storage are entirely scalable, making it possible to have tenders without a pre-defined target capacity for each bidder or project, unlike conventional energy;
  2. In most cases, the optimal and lowest-cost solution will be a combination of renewable energy sources i.e. hybrid renewable energy solutions such as co-located wind and solar combined with some form of energy storage, not a single source;
  3. While energy storage is valuable for a variety of functions, any energy storage directly increases the levelized cost of electricity (“LCOE”). Therefore, bidders should be incentivized to optimize the energy mix to minimize the amount of storage needed to provide reliable electricity;
  1. Carbon price is not being fully captured in the price of electricity anywhere (e.g. this would require an average carbon tax of around US$0.29/kWh on coal);
  2. Renewables can be built in 6–12 months versus several years for conventional energy plants; and,
  3. A typical power purchase agreement (“PPA”) has a life of 20–25 years, and some electricity generating facilities can have useful lives beyond this time frame.
  • Is tied to achievable targets that transition each country to 100% renewable energy by 2050;
  • Is technology agnostic to enable developers to deploy the optimal mix of generation at each site;
  • Incentivizes energy storage and grid stability; and
  • Properly accounts for the cost of carbon.
  1. the capacity added each year will eventually lead to a 100% RE grid but with an orderly transition, which takes into account existing generation capacity and PPAs, and ensures reliable energy throughout the transition;
  2. the project structure for all projects in the country will be standard and bankable, with risks allocated properly to those parties best equipped to manage them, regardless of project size;
  3. critical capacity targets will be awarded to firms qualified and capable of developing the projects;
  4. smaller or less experienced firms will still be able to develop projects, and will benefit from the same, bankable structure, and governments can encourage the growth of a domestic, nascent, industry, but not at the risk of critical infrastructure needs; and
  5. the private sector will still have a strong incentive to reduce price as they will want to be among the consortiums awarded capacity.
  1. a grid owner / operator (or a co-op for smaller grids) is responsible for maintaining the grid and receives a “transmission charge” for making transmission lines and an energy market available, and
  2. energy will come from independent, distributed generation & storage with companies and individuals buying and selling energy using a blockchain or similar solution.

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http://carbonnegative.energy/

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