Impact of lower oil prices on renewable energy technologies

The impacts of reduced oil prices on the economic viability of selected technologies which utilize solar, wind and biomass energy sources are examined. The technologies include dendrothermal, bagasse, fuel alcohol, wind electric, biomass gasifiers, solar water heaters, photovoltaic water pumps, and wind pumps. Specific projects in each of these categories are reviewed with oil prices above US$28 bbl, and their economic justifications recalculated at a range of lower oil prices. The findings indicate that the economic sensitivity of renewable energy technologies is mainly a function of scale and project location. Renewable energy technologies that compete directly in the modern large scale sector, such as dendrothermal are the most adversely affected by falling oil prices. Remote and rural applications are less affected because of their generally smaller sizes, and the reduced availablility and consequently greater costs of petroleum fuels.Energy and Environment,Energy and Poverty Alleviation,Environmental Economics&Policies,Energy Demand,Oil Refining&Gas Industry