The Sun Gets Brighter

Oil prices are dropping and so, too, are the capital costs of solar energy installations. “Solar power is now cheaper than what electricity would cost if based on either oil at $50 per barrel, or its coal equivalent – or for that matter liquefied natural gas,” writes T.N. Ninan for Business Standard. “Solar energy has become the new energy source in many countries in Africa and South America, and of course in India with its massive solar energy programme.” Increased demand for fossil fuels will come from China and India as the developed world continues to innovate on fuel efficiency and electric vehicles. Low oil prices will reduce foreign employment in oil fields and remittances. Governments in emerging and developed economies need to anticipate trends in the energy industry, for both fossil fuels and alternatives, and be competitive by responding with policies on carbon taxes, subsidies, infrastructure and emissions. – YaleGlobal