LONG TERM CERTAINTY
The average wind or solar farm is built for up to 25 to 30 years of operation, or even longer for hydro power plants. The operator is aware that the equipment will be refurbished and expects that the newly upgraded solar module or wind turbine will be considerably more efficient at a lower cost. Therefore renewables shall continue to generate electricity for a very long time while their efficiency continues to increase, further boosting competitiveness.
Today, oil prices have hit almost $70 per barrel and some analysts believe that the global benchmark Brent crude will rise by $15 or more a barrel or more by year end. If current trends persist, it remains very likely that renewables that are now in use will serve us long after the oil price is back onto its usual track. Of course, renewables are an infinite source of power, the ultimate definition of long term certainty.