Why the success of renewable energy may be the greatest threat to its future » TwistedSifter

Renewable energy sources have come a long way over the last few decades and now account for a significant part of the total energy supply.

This helped increase electricity supply to the grid and radically reduce costs.

When energy demand is low and renewable supply is high, the cost of electricity has effectively dropped to zero or, in a few rare cases, negative rates.

For the consumer, this is a great thing. It helps reduce overall energy costs, which is especially important at a time when the cost of living in many parts of the world is rising much faster than wages.

The problem, however, is that when renewable energy rates fall so low, companies lose incentive to make large investments in this type of infrastructure.

Alex Thiemann, CEO of solar developer Sonnedix, pointed this out, saying:

“Negative pricing will slow down renewable deployment for most players. That will impact your ability to invest at reasonable levels.”

Lack of investment will hamper the progress that has been made in this industry.

Although the use of this energy source is beneficial for both consumers and the environment, it is necessary to plan further investments.

One of the most promising solutions to the “problem” of such renewable energy success is improved energy storage.

Instead of forcing electricity suppliers to lower prices when there is excess energy, they can simply store the excess energy in batteries or other means.

This energy can be used during periods of peak demand or when energy production from renewable sources drops significantly (e.g. at night or on windless days).

As the market adapts to this reality of wildly successful renewable options, it is likely that investment will shift (at least temporarily) towards energy storage technologies.

If energy storage does not keep up with demand, it could have a long-term negative impact on future growth of renewable energy production.

Many world leaders are already looking at this problem and hoping to find a lasting solution.

The biggest obstacle may be the success of renewable energy.

If you think that’s impressive, check out this story about a lithium “gold mine” that was found in the US that could be a game-changer for electric vehicle batteries.