Sunday, June 18, 2017

CEO of Alterra Energy gives thoughts on renewable sector

On My Radar:

renewable energy wind and solar

Ross Beatty's, Chairman of Alterra Power,  comments:

We are living in as profound an energy revolution as the switch from wood to coal and coal to oil…

Solar is here, it is cost competitive, it is one-tenth of the cost it was 10 years ago.

We’ve had a revolution in the transmission of energy and in things like better refrigerators, better light bulbs.

Coal and uranium (think nuclear fuel) driven power are dinosaur products. Uranium, it is extremely expensive to produce and there is lots of it around.  The main use is in producing electricity.  Solar will take over.  Bearish on uranium.

Bullish on copper. It is an electricity metal.  Copper is used in new renewable energy, pumps, cars, etc.  It is a winning metal.  It is going to go up.

Silver is a winning metal… its biggest use was in photography. That’s gone.  The biggest use today is in digital products, every computer, cell phone, and new use in photo-plutonic energy storage cells.
He sees no investment advantage in most commodities… bearish on iron ore and coal.

Need a game changer to get excited about metals. New uses.  In most metals, deflation is a reality but there are spots.  Spots are where people are using it in their everyday lives…copper and silver.

Renewable energy – Solar will take over. It is so much cheaper.

I agree with some of these comments and I am on the fence on others. I work in the renewable energy field. The one thing holding it back in my view is it is intermittent. The wind does not always blow and the sun does not shine at night.

Until this is solved and cost effective storage comes online I do not think renewable energy can reach its full potential.

I do not agree with him on nuclear power. It is clearly growing as there more nuclear power plants in service and under construction than ever before. It is clean baseload power and countries like China and India will have it in there energy mix along with renewables. It would be profoundly stupid to have all of ones energy supply based on an intermittent source.

I do like these renewable energy companies because they are the current zeitgeist and are being helped along by government mandate. Regardless of what one thinks about that it does matter.

By the way it is possible to subscribe to that newsletter On My Radar.

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