Wednesday, February 21, 2007

Solar at Half the Cost of Oil?

I have my doubts but I certainly hope so. According to Ambrose Evans-Pritchard in the Telegraph:

In a decade, the cost may have fallen so dramatically that solar cells could undercut oil, gas, coal and nuclear power by up to half. Technology is leaping ahead of a stale political debate about fossil fuels.
I have few doubts that something will ultimately substitute oil. Though statements like this strike me as premature:
Needless to say, electricity utilities are watching the solar revolution with horror.
Horrified all the way to the bank no doubt. I would suggest the days of high oil prices are limited. Commodity prices drop with time because of technological substitutes and improved extraction technologies but in the short run, however temporary prices remain high is anyone's guess.

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