By: Rohan Bhagat
The world has an energy problem. Worldwide, we’re powered by the burning of fossil fuels, including petroleum, coal, and natural gas. Using fossil fuels produces large amounts of carbon dioxide and other greenhouse gases that trap heat inside the atmosphere and warm the planet, contributing to life-altering climate change. Luckily, we have an alternative. “Clean” energy, like hydroelectric, wind, and solar power, among others, produces almost no greenhouse emissions. Just generating 35% of our electricity using wind and solar in the western US would reduce CO2 emissions by as much as 45% [1].
Furthermore, most of those energy sources, with the notable exception of nuclear, are renewable sources, meaning relying on them would eliminate dependence on limited resources like coal and petroleum and eliminate a political dependence on countries with large reserves of such resources. However, for the past few decades, the public consensus surrounding using clean energy as our primary energy source was that it was simply unfeasible.
The Supposed Problem with Clean Energy
Solar and wind, critics argue, are just too inconsistent. How can we rely on an energy source that only works when the wind blows or the sun shines? Meanwhile, hydroelectric power is reliable and efficient, but has extremely high startup costs and poses a threat to local riverside environments. And these are all valid concerns; They are issues that will need to be solved down the line if we are to truly eliminate our use of fossil fuels. But these are not the real reasons many Americans remain skeptical of clean energy. The true problem with clean energy, as is the problem with many new technologies, is cost. America simply cannot afford to transition to energy as expensive as solar. Businesses are simply unable to bear such costs. If renewables were cheaper than fossil fuels, the free market would work its magic, and we would have already seen a massive switch away from coal, oil, and natural gas. Except, clean energy is cheaper than fossil fuels. By a lot.
The Truth
[4] Renewables represent the cheapest source of electricity generation across most of the world.
Over the past decade, wind energy prices have fallen an impressive 70%, while solar photovoltaic (PV) prices have fallen a whopping 89% [2]. According to an International Renewable Energy Agency report, in 2019, more than half, of all “newly commissioned utility-scale renewable power generation capacity provided electricity at a lower cost than the cheapest new fossil fuel-fired option.” This includes 90% of hydropower capacity and 75% of onshore wind capacity [3].
Perhaps even more importantly, battery storage technology, which is crucial for storing renewable energy, has dropped in price most dramatically, from almost $600/MWh just six years ago to about $150/MWh last year [4]. Because wind and solar energy are inconsistent and often unpredictable, affordable battery storage technology is critical to maintaining a constant supply of power able to meet our energy demands. As prices continue to drop, we move closer and closer to being able to rely on renewables for all our energy needs.
A graph depicting the global LCOE benchmarks for various renewable energy technologies.
[4] The costs of renewables and corresponding technologies have dropped dramatically.
Furthermore, clean energy is a goldmine for high-quality jobs, with 3.4 million Americans employed in the sector at the start of 2020 [5]. Clean energy employed three times as many individuals as the fossil fuel industry, and these workers made hourly wages roughly 8–19% higher than the national average [6]. The sector is only growing, as it’s projected that global renewable energy jobs will quadruple by 2050 to 42 million [7]. An aggressive transition towards a clean energy economy in the US by 2035 could create as many as 25 million jobs over the same period and 5 million sustained jobs by about 2050 [8].
So Why Haven’t We Made The Switch?
So, if clean energy presents far more environmental and economic benefits than fossil fuels, why do fossil fuels account for approximately 80% of American energy production today? [9]. It is a complex answer. A lot of it has to do with the difficulty of replacing our nation’s energy grid and infrastructure. A lot of it is the fault of fossil fuel industries. Fossil fuels are incredibly profitable. Exxon, Shell, BP, and Chevron alone have made nearly $2 trillion in profits since 1990 [10]. Naturally, fossil fuel executives are willing to do almost anything to avoid losing their market share, including spending billions on lobbying [11]. In turn, fossil fuel corporations receive massive subsidies, effectively propping up an industry that is being increasingly outpaced by renewable energy. Meanwhile, across the South, fossil fuel monopolies restricting market competition have prevented clean energy from gaining traction [12].
Renewables are already our best energy source. There are still improvements and innovations to be made, but if the past is any indication, they will come; it’s only a matter of when.