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Thursday, December 04, 2014

Is Clean Energy Vulnerable To the Oil Price Plunge?

Historically, clean energy has been vulnerable to falling oil prices. But, that's not the case this time, as OPEC Oil Price Squeeze To Leave Renewable Energy Unscathed reveals:
Lima, Peru — While OPEC is helping drive down global prices for crude, it's having less success squeezing the $250 billion clean power industry.
Green energy will receive almost 60 percent of the $5 trillion expected to be invested in new power plants over the next decade, according to the International Energy Agency. That's because the U.S., China, Japan and the European Union are all pushing for global limits on greenhouse gases and promoting alternatives to fossil fuels.
The effort has resulted in local and national incentive policies for renewable power around the world, effectively insulating the industry from market fluctuations such as the almost 40 percent plunge in crude oil since June. So while drillers clamp down on spending, developers are on track to invest more than $250 billion this year on wind, solar, geothermal and other types of renewable power, the first gains in two years, according to data compiled by Bloomberg. "Renewables are supported by policies, and that is not something that will be amended quickly just because oil prices fall," Takashi Hongo, a senior fellow at Mitsui Global Strategic Studies Institute, which advises the Japanese government on energy policy, said in an interview in Tokyo. "There will be hardly any impact."