Why clean energy is now expanding even when fossil fuels are cheap

[kristopher]

13. 2) Policies

It's an interesting conversation, but beside the point. It is evidence that new solar/wind rely heavily on proper governmental policies. I think Nevada is premature, but we both know that once renewables are a significant portion of generation, retail pricing plans have to depart from net-metering and free/cheap access to the grid as backup. If I need something to be available 24/7/365 (and no... home batteries don't change that), but I don't intend to use it... then a consumption pricing model doesn't make sense. I don't think that Nevada is there yet (though they probably are there for net-metering), but that's a timing conversation.

Responding to the bold text:
No, it is exactly the point you asked about when you claimed that government policies (your example was mandates for renewables) are what is driving global investment decisions. Remember please that you are responding to an article about global investment. You cited mandates, I countered with "policies that ...have driven price reductions in renewables".

Mandates do help to lower prices by creating artificial demand that stimulates investment in manufacturing. But the strategy of strong direct support for manufacturing that has been pursued by China (which I explicitly referenced) had far, far greater impact on the rate and scale of price reduction than any government's mandated level of installed renewable generation.


Your original remark attempting to refute that the drive for investment is based on the declining cost of renewables:

It's simpler than all that. It's due to (mostly) wise governmental policy decisions. If, for instance, we require that x% of generation come from renewables, then it doesn't matter how cheap alternatives become.