There is no Quick Fix for Europe's stupidity

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dan_s
Posts: 34465
Joined: Fri Apr 23, 2010 8:22 am

There is no Quick Fix for Europe's stupidity

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US RESEARCH PUBLISHED BY RAYMOND JAMES & ASSOCIATES

Renewable Energy and Clean Technology | Power
October 3, 2022

Energy Stat: Europe's Gas Crisis Bolsters Appetite for Offshore Wind - But Do NOT Expect the Same in U.S.

Even before last week’s suspected sabotage of the Nord Stream pipelines, Europe has been paying record-high prices for natural gas and electricity. While the only near-term solution is for governments to directly subsidize energy costs for businesses and consumers, the longer-term strategy is diversification.

Europe’s unprecedented spike in power prices is a combination of 1) Russia’s deliberate gas supply cut-offs during its war in Ukraine; and 2) extreme drought and resulting reduction of hydroelectric output is prompting renewed appetite for energy sources that had previously been relegated to niche status due to their high costs. Case in point: offshore wind, whose levelized cost of electricity averages 2x higher than that of its far more mainstream land-based counterpart. There are indeed signs that offshore wind development will get a long-term boost in Europe as a result of the war.

The situation in the U.S. is quite different. Not only is the U.S. offshore wind market in its infancy, but the outlook for accelerating the adoption curve is mixed at best. In fact, this is a useful case study of how media hype with regard to some clean tech solutions does not always match the substance. We are optimistic that offshore wind will play a growing role in disentangling Europe's electricity mix from imported gas, even as we remain skeptical about offshore wind reaching substantial scale in the U.S. at any point this decade. The recently enacted Inflation Reduction Act will help, but it is not a game-changer for U.S. offshore wind. For our readers who want to cut to the chase and talk stocks, we have to acknowledge that there are very few public companies focused on offshore wind, even in Europe. On the other hand, there are numerous players, on both sides of the Atlantic, as part of our database of 600-plus private companies across clean tech.

MY TAKE: I sure hope we are learning from the situation in Europe. Wind and Solar cannot be a significant percentage of the US power supply because they are unreliable. Any state the relies on Wind and Solar will have regular power shortages. Europe's economy is in big trouble thanks to their misguided energy policies.
Dan Steffens
Energy Prospectus Group
dan_s
Posts: 34465
Joined: Fri Apr 23, 2010 8:22 am

Re: There is no Quick Fix for Europe's stupidity

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Revolution In Air As Brits Burn Power Bills Amid Historic Energy Crisis

BY TYLER DURDEN
MONDAY, OCT 03, 2022 - 03:15 AM
Energy prices for millions of households across the UK rose on Saturday. Soaring power bills amid the worst cost-of-living crisis in a generation led to a continuation of growing discontent ahead of the dark winter.

Thousands of Brits marched in London and other metro areas this weekend in protest of being thrown into energy poverty while inflation is at forty-year highs.

There were countless videos on social media showing Brits holding signs about their dire financial situation. "Can't afford to live," "Freeze profit, not people," and "Eat the Tories," read some of the signs people held.

Read more: https://www.zerohedge.com/political/rev ... rgy-crisis
Dan Steffens
Energy Prospectus Group
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