I speak frequently to the utility industry. One of the big challenges the industry faces is that in order to meet the future energy demands of their customers they are confronted with large capital investments–in the form of building new coal or nuclear plants. The problem is that continued advances in a variety of energy technologies, including solar cells, fuel cells, wind power, wave power and advanced battery technology, may render these investments obsolete in the coming decade. The result is that the large upfront investments may be impossible to recover.
In the short term, however, the promising renewable energy technologies can’t meet the energy demands of the customers. The utility industry is thus stuck in a tough spot because they must build some electricity generating power plants.
And, short of emphasizing conservation in the form of energy saving solutions and technologies, there is no good answer.
I can only approach this issue through an analogy. At the turn of the 20th century, lighthouses were necessary to assist in the safe navigation of ships. As a result, huge capital investments in lighthouses (such as Split Rock Lighthouse in my home state of Minnesota) were required. By the mid-1940’s advances in sonar and radar had rendered many lighthouses unnecessary.
I suspect the same will be true of coal and nuclear plants. Society must invest in some of these plants in the short-term knowing that, ultimately, they will go the way of lighthouses. (And citizens and government regulators must realize this reality and be willing to pay for some of large expenditures knowing that they may never “pay” for themselves.)
