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Energy Glut triggers crash
Posted: 14 August 2008

A strategic issue that you have identified in the longer term is that all businesses are cyclical and how long will the energy business cycle last- this has a major effect on power utility capital projects business models as they need to plan for 40 + years of operation and 5 to 10 years to design and build power plants and possibly another 15 years for decomissioning. This long term capital model applies whether the plant is thermal, nuclear or renewable. If such a crash could occur it means that the utilities economic model would need drastic change and that ROCE would be short term as in other businesses- it means that that the c/kWh which is THE primary driver for economical electricity technology,[unless global environmental legislation changes] could rise dramatically.

MindBullet logo ENERGY GLUT TRIGGERS CRASH
Renewable energy supplies exceed traditional demand
Dateline: 18 May 2023
Investors are still shell-shocked after two days of panic selling that has wiped 27% off the Dow Jones, 32% off the London Stock Exchange and a terrifying 40% off China's main bourse. All told, investors have lost some US$ 85 trillion. The incredible boom of the last nine years has come to a spectacular and catastrophic conclusion. The renewable energy bubble started in 2011 when Advanced ...
 
 
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