According to several recent articles, investments in energy have been level at about US $2 trillion per year over the last two decades. However, forecasters believe it will rise soon to at least US $2.7 trillion because of the interest in getting reliable energy to the developing world and the interest in clean energy and the major infrastructure changes that would have to be implemented to achieve this.

Studies and recent efforts indicate that coal-fired utility-sized power plants are still relatively economical because the price of coal has declined a lot recently because so much is available as more is mined globally, yet more coal-fired plants are closing or converting to other fuels. However, the most economical way of developing energy, in terms of capital cost of building a utility plant, availability of the source and conversion of the source to electricity, and long-term O&M costs is wind power, particularly offshore wind, even ahead of solar technology.

Offshore wind technology is becoming more attractive to investors and governments. China and the European Union are moving to install more offshore wind plants. Offshore wind has the highest capacity of any energy technology, about 50% of the energy hitting a wind turbine is converted to electricity, comparable to a gas-fired plant and superior to solar PV panels.

If renewable technologies, such as wind and solar, become more prominent, utility executives understand that this will mean that more upfront investments will be needed for building power plants and the proper infrastructure. These projects tend to be higher cost upfront, but lower costs to maintain and the “fuel” is free. Finding investors for such outlays may be difficult. However, the long-term payoffs could be significant.

CCES has the experts to help you determine whether renewable energy is right for your facility or what your best options are for determining where your electricity and fuels are coming from. We can analyze and provide cost-effective options. Contact us today at karell@CCESworld.com or at 914-584-6720.