Market-Clearing Prices in Energy
This article discusses the International Energy Agency’ expenditure predicts that the use of renewable energy will contribute a lot more to the global electricity generation. It interesting how countries part of the Organisation for Economic Co-operation and Development in a projected graph may not contribute as much to the global electricity through renewables than Non-OECD countries are projected to. The IES hints at some countries overt way of subsidizing non-renewable energy schemes.
Renewable energy (especially wind) is making its way to the market with prices that rival with fossil fuels. But slow-growth (low-valuations) may not make renewables able to meet global energy needs or countries economic wants. Unsubsidized renewable energy’s may lead to cheaper prices compared to conventional fluids. The reduction in price may lead to better valuations and lower market clearing prices. But since valuations for renewable energy is still not enough to compete with fossil fuels, it is likely that countries will still not use fossil fuels heavily.