Back in May in my Substack blog , and also in my book ‘Energy Revolutions’ I argued that major increases in US LNG exports could benefit renewable growth in the USA. This could happen if LNG exports push up the domestic price of US natural gas, something that you suggest is a possible outcome. Increases in natural gas prices will make solar and wind etc more competitive. See https://davidtoke.substack.com/p/how-trump-may-unitentionally-boost
I wonder what European power markets would look like if gas prices were comparable to the US. Presumably wind & solar would still be flooding the system since they have zero marginal costs. But maybe the battery revolution would not be unfolding in the way it is? Also, CfD top-up payments would be much higher, which could have political consequences..
maybe - but a lot of other things might be different. Economies would be doing better without the price shock, there might not be so much of a drift to the right, Germany whose industrial based economy is very sensitive to energy prices would be doing better. We might not be facing an early election in Germany!
Back in May in my Substack blog , and also in my book ‘Energy Revolutions’ I argued that major increases in US LNG exports could benefit renewable growth in the USA. This could happen if LNG exports push up the domestic price of US natural gas, something that you suggest is a possible outcome. Increases in natural gas prices will make solar and wind etc more competitive. See https://davidtoke.substack.com/p/how-trump-may-unitentionally-boost
I wonder what European power markets would look like if gas prices were comparable to the US. Presumably wind & solar would still be flooding the system since they have zero marginal costs. But maybe the battery revolution would not be unfolding in the way it is? Also, CfD top-up payments would be much higher, which could have political consequences..
maybe - but a lot of other things might be different. Economies would be doing better without the price shock, there might not be so much of a drift to the right, Germany whose industrial based economy is very sensitive to energy prices would be doing better. We might not be facing an early election in Germany!
It really would be a different world.