Trade Rep Talks Climate. Trade is one of the more complicated parts of domestic and international policy. Solving climate change is going to revolve around the global nature of climate and the need for global trade to function properly. Good luck thinking that any one Country can do it all…
Satellite Sniffers. Big emitters will put on a show for carbon mapping technology in space, oil and gas wells may have to hope that methane leaks don’t trace in this technology.
Have a great weekend! Let’s talk maturing clean tech economies and the pace of adoption next week!
Opinion
News
Opinions:
Have a great day!
Yann
All At Once, With Tailwinds. Everything appears to be headed into the same direction in the energy transition especially as it pertains to energy storage additions. This isn’t me talking my own book, this is in the headlines within the same media publications that have always shaped this newsletter. Bloomberg called for a quarter trillion dollar shift towards batteries earlier this week but are drastically underestimating the cost declines that are coming. We are already seeing a level of market maturity as solar executives are becoming one with the solar+ concept. Underpinning the global market is the shift from internal combustion to electric vehicles. Given the manufacturing overlap and both markets growing together, exponentially, the grid platform will benefit from a crazy increase in that manufacturing.
ERCOT Troubles Continue. On Tuesday morning there was a graph that made the online rounds where demand in ERCOT was forecast to be higher than the available power capacity. This was due to a large amount of thermal generation being down from maintenance, likely still catching up from the winter storm in February. At the 7-8pm hours, energy pricing rose to nearly $2,000/MWh for a short duration and the system operator called for consumers to shed demand as much as possible. The situation mellowed quickly and no emergency had to be declared but it came close.
The Climate Diplomat. John Kerry, as a special presidential envoy, is working with China this week to move along the climate conversations. As Kerry put it, they are talking about talking, working to have the US and China at the table working on climate issues.
Opinion
News
Opinions:
Have a great day!
Yann
The Corporate Voice. Issues like divestment and ESG are driven by the expansion of the bottom line. It may lack the progressive do better component but in most cases, especially in corporate world, the alignment of higher earnings, better talent and larger markets with lower risk with climate related focus is driving the corporate agenda. Renewables and the broader energy transition has become a reality because solar, wind and resilience has become a more attractive investment for capital, a trillion dollar market that didn’t exist previously. That is why the lobbying done on behalf of our industries isn’t solely resting on trade groups’ shoulders, it includes the corporate and capital interests that want the market to expand further while lowering the risk profile. Interestingly, it’s the combination of wall street and corporate America that is making this lobbying focus even stronger.
Why It Matters. Picking winners and losers was the legislative pushback in the early days of solar lobbying. Let the market decide, especially in light of the need for subsidies some 15 years ago, and now the markets have declared renewables the winner and corporates, as customers and investors, are throwing their support behind it full force. Not just the support for policies that enable a better functioning market but also against policies that attempt to hurt the opportunity to compete or limit access to these new sources. The headlines may label this as a ‘woke’ effort to push societal desires but when it comes to renewable energy, the bipartisan support by consumers and voters is loud and clear.
Shifting The Center. One of the topics we covered in yesterday’s market call with Roth Capital was the regulatory fight we often mention on this platform, whether that is NEM 3.0 in California, NEM cap in Michigan or Federal issues. Regulatory proceedings sometimes welcome extreme initial proposals in an effort to draw the boundaries of the argument so far outside of the norm that a settlement would be considered a victory. It is important to see the first overture as an overture but also to reject it outright in most cases with a vigorous fight. I often hear from you saying that things will sort themselves out but they only do when everyone does their part in the process otherwise David cannot take on Goliath.
Opinion
News
Opinions:
Have a great day!
Yann
Talking Market. Today at 11am eastern, join me and the Phil Shen from Roth Capital as we continue our monthly conversation about the market. It’s been an entire year since the pandemic sparked the market survey index that told us that 2020 wasn’t going to be as bad as predicted. One year later, much has changed including my role in the market. Register here and make sure you subscribe to Phil’s newsletter as well.
Opinion
News
Opinions:
Have a great day!
Yann