Everything has got more expensive in the last 6 months. Something I have been thinking about is that energy prices are up 300% YoY in Spain!
Pre-Putin invasion of Ukraine
Just yesterday, I was made aware that the price of Natural Gas is now x13 times higher in Europe than in the US.
Due to these absurd rises in energy costs, and growing concerns over our global geopolitical environment, a few weeks ago I was inspired to explore the state of residential solar energy in Spain. My aim was to:
(1) Examine how efficient it is(2) Gauge the pricing of installation
(3) What options were available for households looking to disconnect from the central grid and achieve energy independence
(4) Whether it is ultimately worth it
My results were extraordinary. Almost unbelievable. Although I clearly haven’t, I felt as though I had just discovered the fictitious element Vibranium of Wakanda; a clean and cheap, scalable source of energy. Here is the link to that document, but in short, residential solar is extremely enticing and something we all should be considering today. Remodelling our energy mix from dirty fossil fuels to clean renewables could be the most significant achievement our generation claims.
The conquerors of the 16th and 17th centuries sailed around the world, connecting the dispersed world into one. Those in the 18th century set the foundations for human rights and democracy. Those in the 19th century learned that burning fossil fuels created energy, catalysing the industrial revolution. Those in the 20th century created weapons powerful enough to eradicate all life on earth and also created the internet. I foresee us being remembered as the people who forged unlimited, clean electricity. What a legacy that would be hey?
With the advent of the internet, we unlocked previously unimaginable things. Anyone is now able to get the answer to any question in the world, we can communicate information across borders instantly and machines are becoming increasingly more intelligent. But in spite of these new unfound abilities, unfortunately, Europe has been very lackadaisical at organising its supply of energy throughout the start of the new millennium.
The terrors of the Chernobyl disaster in 1986 remain ripe in the minds of policymakers. Then in 2011, Japan suffered an earthquake (magnitude 9.0), causing a Tsunami that led to the infamous Fukushima Nuclear Disaster. This was the final nail in the coffin for European policymakers who were fearful of the potential negative externalities of branching out nuclear infrastructure. The majority of nuclear power plants throughout the continent were shut-down, triggering an under-investment cycle that stifled research and development into the field. Despite its dubious reporting, Russian forces supposedly setting the largest nuclear power plant in Europe on fire just a couple of days ago was a reminder that nuclear energy development can be extremely detrimental. Fracking suffered a similar fate as research showed it can poison groundwater, pollute surface water and threaten wildlife. I also read unconfirmed reports that the Kremlin was the largest funder of anti-fracking lobbying over the last decade.
So after disregarding fracking, nuclear and the fact that renewables were still too immature to host widespread adoption, Europe looked eastwards, to Russia, to supply its energy needs.
Energy is the base layer of the world we live in today. It powers everything we do. Outsourcing a large chunk of our energy needs has concluded with Europe now being highly dependent on Russia’s energy and willingness to sell it to us. Aside from his nukes, this is the most powerful weapon that Putin wields; his ability to turn off the plug at whim. It is why he was confident enough to launch a full-scale invasion of Ukraine and why nations like Germany and Italy were reluctant (and remain reluctant) to condone and respond to it.
By reducing our dependency on Russian energy, not only do we disable the main weapon currently being used by Putin, but we also have the opportunity to revolutionise our energy habits and clean our atmosphere. A double whammy! . If we do nothing, our governments will continue to wage wars over energy (Yemen, Iraq, Falklands to name a few) and everyday normal people will continue to suffer at the expense.
So, where do we go from here?
Yes Nuclear is both renewable and clean, but it is, unfortunately, a long-term project. It needs fresh investment and research into the technology, and power plants take years to build; Ukraine and the European continent do not have years.
So what about solar? Well right off the bat, Solar can be deployed on houses within a day or two. Just a couple of days of work and et voila. I have just spent a month living in an Airbnb in Switzerland and 100% of my electricity consumption was sourced from solar.
In Issue #04 of this rag, I noted that renewables are now cheaper than all fossil fuels in most parts of the world. In fact, global solar prices have fallen by 89% in the last decade.
The main hurdles inhibiting mainstream renewable adoption have been that (1) renewables are too expensive (2) they aren’t efficient enough and any investment becomes outdated in just a couple of years. I think the way we forge a sustainable, environmentally conscious 21st century is not by convincing consumers to go green in everything they do, but to build products that are environmentally sustainable and cheaper, so the consumer is economically and socially incentivised to go green. Solar is a great example of that thanks to the economies of scale relished via Moore’s law. So the cost of Solar is phenomenally cheap, it can slow down the warming of our planet, but solar presents us with one more crucial benefit: the ability for individuals to create their own energy.
By installing solar panels on one’s roof and decentralising electricity production, citizens can harness the energy emitted from the sun to power their needs. No longer are we obliged to buy electricity from the monopolised state-run grid, forced to accept the cost at which they wish to sell it for. In turn, the marginal cost of solar production is zero. Only an initial sunk cost is incurred, and from that moment on, free, unlimited, clean solar energy is created. Your monthly bill remains the same, absolutely free, regardless of what foreign and domestic policies our governments proceed with (a reminder that irresponsible monetary policy + the naive structure of our energy sector have caused the price of electricity to rise by 300% in Spain since the start of 2021. Both of which are beyond the control and wishes of regular citizens).
Ultimately, solar provides free, unlimited, clean electricity forever (albeit panels have life expectancy of 30yrs). I’d like to live in a world where energy prices can't go up 40% in just one year. I’d like to live in a world where we don't destroy our ecosystems & beautiful biodiversity. I'd like to live in a world where millions of people don’t have to suffer at the hands of unnecessary energy wars. I'd like to live in a world that isn't destroyed by forest fires every year. I’d like to live in an area that isn't polluted and causes millions of respiratory diseases every year (shoutout to my fellow asthmatics). I’d like to live in a world with free, unlimited, clean energy. Thankfully we can. Let's grab it by the balls and yank as hard as we can.