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Wednesday, January 21, 2009

Save Energy Save Cost

For mass acceptance of alternative energy sources there must be savings directly felt by the end user. The best motivation is for the energy consumer to spend less money for equivalent use and comfort. There is somewhat of a correlation between the end cost and the efficiency of delivery of the usable energy. As the efficiencies of alternatives are improved lower prices will be seen by the consumer.

At current prices solar costs per watt production capacity is about three times that of continuing with oil and other current sources. There is new hope with the thin film technology. The lack of expensive silicon in thin film is dramatically dropping the price. It appears that thin film technology will make the one to one cost ratio feasible in the next few years.

Most people prefer energy sources that are clean and don't require dangerous methods of harvest. The price paid usually overrides these concerns, however. Once the price of the environmentally friendly choice is the same there will be gradual steady mass adoption. This will lead to further cost savings because of economy of scale. That will accelerate adoption.

Environmentalists goals are best achieved through sound economics.

Wednesday, January 14, 2009

Where have all the windmills gone?

I was disappointed to hear that T. Boone Pickens had to put the west Texas wind farm project on hold. I was hoping the project would still fly based on the long run projections. It looks like the barrel price of oil needs to go back over $70 to make this practical. Too bad... The environment can use the break. Also, we need to get off the foreign oil dependence.