Wind, solar producers top Exxon as most valuable US energy company

Dear Editor,
With the costs of creating electricity from solar power and wind continuing to fall, electricity from renewable energy will soon be “consistently cheaper” than electricity from fossil fuels.
Most wind and solar power technology now being commercially used will be priced in the same range as fossil fuels, “with most at the lower end, or even undercutting fossil fuels”.
This is particularly good news for communities in the rural and riverine areas and other parts of the Guyana which remain unconnected to power grids and without access to modern energy. Cheaper prices for improved technology, combined with new financial arrangements to help put it in place, should lead to more unconnected communities getting access to clean power.
The falling cost of solar power and an expected decline in the cost of renewable energy storage are providing a major boost to delivering electricity and related services to communities without access to energy. But it’s not just a question of solar technology which has achieved full commercial viability and is now cheaper than fuel in many countries. Many companies are also pioneering delivery methods using innovative business and financial models, as well as through “advances in super-efficient appliances.”
Decentralised solar systems, including mini-grids and home systems, are expected to serve tens of thousands of households by the year 2025. Our PPP/C Government must take advantage of the decreasing cost to equip thousands of homes in our hinterland areas with solar systems, which should enable nearly 50,000 persons to access clean electricity before the end of 2022.
With renewable power alternatives becoming consistently affordable each day, the onus is upon us to take advantage of this and ensure that we move even closer to achieving rural and hinterland access to electricity. This programme will cost us, as we all know; however, the cost of producing renewable energy has fallen consistently since 2010, with wind and solar panels leading the way, and in some cases falling in price by as much as 73 percent over that period.
The biggest price decreases have come in the cost of generating utility-scale power from solar panels, which means that such energy can now be added at a much more competitive cost. Technological advances, competitive procurement, and a large base of experienced, internationally active project developers were the main drivers of the lower costs.
Technological innovations and new business models are expected to further reduce the cost of producing electricity from renewable mini-grids by more than 60 percent in the next ten years. These are informational developments that are changing the economic models and social patterns of the past.
Evolving renewable energy technology means clean electricity could now power not just lighting in homes, but everything from farms to urban, rural and hinterland businesses. It is time for decision-makers and our Government to fully embrace the transformative power of decentralised solutions – rooftop solar and renewable mini-grids, in particular – to improve the delivery of education, healthcare, clean water, irrigation, and the many other benefits. We’re already seeing decentralised solar providing much more than just light, including replacing diesel to power solar water pumps for irrigation and telecom towers. What’s lagging is getting ever cheaper renewable energy to be used more widely; however, generating and distributing solar power, in particular, could be a huge new source of jobs, giving communities – particularly poor rural ones – new economic opportunities. Many riverine communities in Demerara and Berbice must take advantage of cost reductions to scale-up solar.
Under the PPP/C Administration, we will achieve universal access to electricity rapidly. Our communities and businesses need to take advantage of all available sources of finance, both public and private. Renewable electricity is a central element of our action on climate disruption, ensuring that we are on a pathway to meet our ambitious climate target.
Solar power not only clearly sets us on that pathway, but offers us the foundations of a thriving and cost-effective renewable electricity market that supports the growth of the economy, thus creating sustainable opportunities and ultimately benefits for the consumer as the renewable becomes more and more cost effective.
Renewable electricity is a central element of our action on climate disruption. It ensures that we are on a pathway to meet our ambitious climate targets. This not only clearly sets us on that pathway, but lays the foundation of a thriving and cost-effective renewable electricity market that supports the growth of the economy, creates sustainable work opportunities, and ultimately benefits the consumer as the renewable becomes more and more cost-effective. Our Government’s objective must be to put solar farms which are 100% community-owned, paving the way for communities to be involved in the energy transition with real community ownership of energy projects. Many of these Communities will be hugely excited at the opportunity to own the energy project where they live. They would see this as an opportunity to improve the lives of those living in the community, and for communities to create the future they want.
The costs of both wind and solar power are lower than ever, and continue to drop due to efficiencies in the supply chain and technological improvements.
On Monday, the US Department of Energy touted a new report: that alternative energy such as solar, wind and hydroelectric power are today the cheapest sources of energy in the USA; with wind and solar producers topping Exxon as most valuable US energy company.

Sincerely,
David Adams