Oil price, incentive for renewables

The futures price of oil has reached $133.17 per barrel. From barely $20 at the start of 2002 it has increased almost 7 times as chart below suggests.

The increase in oil price is playing a big role in the rising cost of food among other products and much anguish. However, it is providing the biggest incentive for renewables to start being viable.  With predictions of $200 a barrel, there is no better time to test high cost renewables, create a market and increase economies of scale and cut the cost of production in order to be viable again when the price of oil eventually comes down (or will it?).


5 thoughts on “Oil price, incentive for renewables

  1. Using Parabolic Mirrors …

    … is amongst others one of the top technologies that will help to turn the tide for Solar.

    Solar Millenium (S2M), builds Solar Power Plants in Spain, that are cost effective today …

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  2. What’s really needed is a relaxation of the tax regime around renewables. Shockingly, Gordon Brown tried this with the EU. Not so shockingly, they turned it down.

    Everyone’s so worried about the economy. I’m no bean counter, but it strikes me that if you forwent VAT (expenditure tax) on renewable energy generation and, importantly, electric, solar and LPG cars/conversions you’re likely stimulate the sustainable economy.

    This would be far more preferable to the UK’s current approach which is to tax carbon producing electricity generation and petrol/diesel. All stick and no carrot.

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