The energy industry is always chasing the next hottest trend, whether it was wholesale power trading in the 1990s, shale gas in the 2000s or unconventional oil in the 2010s. Each of these eras was driven by new technology and plenty of capital. Each era also had a cast of companies that pushed the edge of development and exhibited their own hubris and swagger. As always, as one era ends, a new one begins. Currently, a COVID-driven global recession has curbed oil and gas production growth for the time being. Meanwhile in the US, many large consumer-facing companies such as Facebook, Google and AT&T have sought renewable energy power purchase agreements to further bolster their appeal to consumers. One result is the most aggressive power generation development across all fuel types is now solar. This begs the question, are solar developers the energy industries next frackers? Is the massive buildout of solar development in the US another commodity cycle race to the bottom? Shale gas E&Ps had a decade of easy access to capital as equity markets funded ‘growth at all costs’ strategies. Are solar developers in the same position now or is this time different? This Energy Market Insight will compare historical shale gas production growth rates by play to development of solar generation by ISO to see which development process is more aggressive.
https://btuanalytics.com/power-and-renewables/are-solar-developers-the-next-frackers/
No comments:
Post a Comment