Hydrogen is emerging as one of the most important sources in “upscaling” energy, increasing both the share of renewable energy supply and the scope of decarbonization. One driving factor is that hydrogen provides easy and effective storage and transportation options. Perhaps the biggest challenge that remains is hydrogen’s cost effectiveness, which is what we look at more closely today.
Do you remember headlines predicting the imminent end of fossil fuels?
Years later, the end of fossil fuels is still being predicted. We are half way through 2020 and there is still no end in sight for fossil fuels. Without question, fossil fuels are finite, but why are accurate forecasts so hard to come by? And what does this mean for renewable energy?
Hydropower remains one of the least-expensive energy sources. This remains true even despite recent cost increases. Since 2010, hydropower’s global weighted average levelized cost of energy has increased by 27% to around USD 47 per MWh in FY2019. This uptick is due to rising installation costs, which in turn are largely due to new projects being located in more challenging locations.
One big challenge for the renewable energy sector today is the traceability or identification of the generating asset power stream.
Over the past decade, costs trends within the renewable energy sector have been dramatically decreasing, making wind (as discussed in our post “Wind Energy LCOE Breakdown”) and solar two of the most competitive energy sources.