MANY countries are facing energy problems right now, thanks largely (but not exclusively) to sanctions against Russia.
To deal with this problem, Western leaders have turned their attention to solar and renewables. Their response is to bail out faltering companies or subsidize established ones, with the hope that they will be able to deal with energy problems long term.
As a result, many solar companies are doing well in a bearish stock market. Enphase’s (an up and coming solar manufacturer) stock price, for example, went from a little over $210 near the end of July to $305 last week. The excitement is based on the idea that solar is the most convenient path out of the power crisis.
However, solar energy has more stringent logistical and maintenance needs than traditional hydro-carbons, and that’s assuming their manufacturers have access to the necessary minerals to make them.
Panels need to be deployed in an area with consistent light to maximize its output. They also require large amounts of land, which can be a problem if you need that land for agriculture or when it’s a natural reserve. And in certain climates, this is simply unfeasible.
If the solar facility is located far from consumers there will be transport losses and storage issues. Moreover, solar energy requires cooling facilities for their turbines as well as mechanisms for keeping them clean. A European solar facility in Morocco, for example, needed 2.5 to 3 billion liters of water per year for cooling purposes. So assuming you have the right climate for solar energy, there are other problems to be concerned about.
Maybe there’s new technology to deal with these concerns. If there is, that would explain the sudden excitement over solar energy, but this one sounds more like desperation than tech breakthroughs./PN
