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But the peculiar thing about all this wrath is how rarely it is directed at what is becoming a remarkably destructive aspect of renewable energy: its ability to drive down wholesale electricity prices.

Yes, the business cycle is driven by profits. Declining profits are destructive in that they lead to past investment not being validated by current (and currently forecast) revenue. So the wholesale electricity production sector is either in crisis or looking at one, due to the excessive investment in gas powered plants over the past decade.

Because there's lower demand for gas power, gas prices have also collapsed, hurting gas prospecting companies. See the weekend Salon.

None of this is a bad thing for energy infrastructure, it is bad for energy business.

I distribute. You re-distribute. He gives your hard-earned money to lazy scroungers. -- JakeS

by Migeru (migeru at eurotrib dot com) on Mon Oct 22nd, 2012 at 05:31:42 AM EST
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