Energy
36% of Electrical Power Coming Online is From Solar or Wind
The way America uses energy can’t change overnight.
Despite the hype around renewables, it takes time, money, and new technology to build out these plants at a scale that will make a difference.
As a result, many people are still surprised that solar and wind constitute less than 2% of energy generated in the U.S. as of 2015:
Click here for a larger version of this giant diagram.
Yes, oil is the big dog for now, and it will continue to be that way for the foreseeable near-term.
However, the switch to renewables is gaining momentum fast.
We noted earlier this year that solar and wind capacity grew 31% and 5% respectively between 2014 and 2015. However, the following news is even more significant, since it shows that new power coming online from renewables is happening at a scale that will make a considerable dent in the actual energy mix.
New Power Coming Online
The following infographic comes to us from Mantena Notes, and it looks at new energy capacity coming online in the territories of different United States Independent System Operators (ISOs).
First, some background: ISOs are grids in the U.S. that are deregulated, where power plants compete to provide electricity at the lowest price. This infographic looks at what is in their interconnection queues, which are essentially waiting lines for new power plants that have applied to become a part of the grid.
It should be noted that the above additions do not technically represent the whole U.S., but it does help give an idea of what the market is moving towards and what is cost effective. The aforementioned ISOs constitute a very significant chunk of the overall market.
This is how the new power coming online breaks down:
- 46% natural gas (127 GW)
- 20% wind (55 GW)
- 16% solar (44 GW)
- 5% coal (14 GW)
- 9% other (35 GW)
The low gas price environment makes switching to natural gas easy, and thus gas makes up the most gigawatts of new capacity coming online.
Solar and wind combine for 99 GW of upcoming capacity, which is significant by almost any measure. For comparison, the largest ever peak in California’s electricity demand occurred on July 24, 2006 for 50.3 GW.
That definitely moves the needle.
Energy
Charted: 4 Reasons Why Lithium Could Be the Next Gold Rush
Visual Capitalist has partnered with EnergyX to show why drops in prices and growing demand may make now the right time to invest in lithium.
4 Reasons Why You Should Invest in Lithium
Lithium’s importance in powering EVs makes it a linchpin of the clean energy transition and one of the world’s most precious minerals.
In this graphic, Visual Capitalist partnered with EnergyX to explore why now may be the time to invest in lithium.
1. Lithium Prices Have Dropped
One of the most critical aspects of evaluating an investment is ensuring that the asset’s value is higher than its price would indicate. Lithium is integral to powering EVs, and, prices have fallen fast over the last year:
| Date | LiOH·H₂O* | Li₂CO₃** |
|---|---|---|
| Feb 2023 | $76 | $71 |
| March 2023 | $71 | $61 |
| Apr 2023 | $43 | $33 |
| May 2023 | $43 | $33 |
| June 2023 | $47 | $45 |
| July 2023 | $44 | $40 |
| Aug 2023 | $35 | $35 |
| Sept 2023 | $28 | $27 |
| Oct 2023 | $24 | $23 |
| Nov 2023 | $21 | $21 |
| Dec 2023 | $17 | $16 |
| Jan 2024 | $14 | $15 |
| Feb 2024 | $13 | $14 |
Note: Monthly spot prices were taken as close to the 14th of each month as possible.
*Lithium hydroxide monohydrate MB-LI-0033
**Lithium carbonate MB-LI-0029
2. Lithium-Ion Battery Prices Are Also Falling
The drop in lithium prices is just one reason to invest in the metal. Increasing economies of scale, coupled with low commodity prices, have caused the cost of lithium-ion batteries to drop significantly as well.
In fact, BNEF reports that between 2013 and 2023, the price of a Li-ion battery dropped by 82%.
| Year | Price per KWh |
|---|---|
| 2023 | $139 |
| 2022 | $161 |
| 2021 | $150 |
| 2020 | $160 |
| 2019 | $183 |
| 2018 | $211 |
| 2017 | $258 |
| 2016 | $345 |
| 2015 | $448 |
| 2014 | $692 |
| 2013 | $780 |
3. EV Adoption is Sustainable
One of the best reasons to invest in lithium is that EVs, one of the main drivers behind the demand for lithium, have reached a price point similar to that of traditional vehicle.
According to the Kelly Blue Book, Tesla’s average transaction price dropped by 25% between 2022 and 2023, bringing it in line with many other major manufacturers and showing that EVs are a realistic transport option from a consumer price perspective.
| Manufacturer | September 2022 | September 2023 |
|---|---|---|
| BMW | $69,000 | $72,000 |
| Ford | $54,000 | $56,000 |
| Volkswagon | $54,000 | $56,000 |
| General Motors | $52,000 | $53,000 |
| Tesla | $68,000 | $51,000 |
4. Electricity Demand in Transport is Growing
As EVs become an accessible transport option, there’s an investment opportunity in lithium. But possibly the best reason to invest in lithium is that the IEA reports global demand for the electricity in transport could grow dramatically by 2030:
| Transport Type | 2022 | 2025 | 2030 |
|---|---|---|---|
| Buses 🚌 | 23,000 GWh | 50,000 GWh | 130,000 GWh |
| Cars 🚙 | 65,000 GWh | 200,000 GWh | 570,000 GWh |
| Trucks 🛻 | 4,000 GWh | 15,000 GWh | 94,000 GWh |
| Vans 🚐 | 6,000 GWh | 16,000 GWh | 72,000 GWh |
The Lithium Investment Opportunity
Lithium presents a potentially classic investment opportunity. Lithium and battery prices have dropped significantly, and recently, EVs have reached a price point similar to other vehicles. By 2030, the demand for clean energy, especially in transport, will grow dramatically.
With prices dropping and demand skyrocketing, now is the time to invest in lithium.
EnergyX is poised to exploit lithium demand with cutting-edge lithium extraction technology capable of extracting 300% more lithium than current processes.
-
Lithium3 days agoRanked: The Top 10 EV Battery Manufacturers in 2023
Asia dominates this ranking of the world’s largest EV battery manufacturers in 2023.
-
Energy1 week agoThe World’s Biggest Nuclear Energy Producers
China has grown its nuclear capacity over the last decade, now ranking second on the list of top nuclear energy producers.
-
Energy4 weeks agoThe World’s Biggest Oil Producers in 2023
Just three countries accounted for 40% of global oil production last year.
-
Energy1 month agoHow Much Does the U.S. Depend on Russian Uranium?
Currently, Russia is the largest foreign supplier of nuclear power fuel to the U.S.
-
Uranium2 months agoCharted: Global Uranium Reserves, by Country
We visualize the distribution of the world’s uranium reserves by country, with 3 countries accounting for more than half of total reserves.
-
Energy3 months agoVisualizing the Rise of the U.S. as Top Crude Oil Producer
Over the last decade, the United States has established itself as the world’s top producer of crude oil, surpassing Saudi Arabia and Russia.
-
Markets1 week agoU.S. Debt Interest Payments Reach $1 Trillion
-
Markets2 weeks agoRanked: The Most Valuable Housing Markets in America
-
Money2 weeks agoWhich States Have the Highest Minimum Wage in America?
-
AI2 weeks agoRanked: Semiconductor Companies by Industry Revenue Share
-
Markets2 weeks agoRanked: The World’s Top Flight Routes, by Revenue
-
Countries2 weeks agoPopulation Projections: The World’s 6 Largest Countries in 2075
-
Markets2 weeks agoThe Top 10 States by Real GDP Growth in 2023
-
Money2 weeks agoThe Smallest Gender Wage Gaps in OECD Countries