Oil Man Says Solar Has A Huge Future

When oil men are praising solar, you've got to listen...like this piece in Fortune:

Fossil fuels are here to stay, but solar energy will play a bigger role in our energy mix than many think. 

I’ve worked on oil platform design. I’ve worked with oil companies on four continents (North and South America, Europe, and Asia). I live in Houston. And I spend about three-quarters of my time working on oil and gas issues. In short, I’m an oil guy.

But I am also bullish on solar.

There is no contradiction here. The point of energy is to move people around the world, to keep us warm (and cool), and to power an industrial economy that has created more wealth in the last 150 years, by far, than in any other time.

There are lots of ways to provide energy. Which technology makes sense at any given time is a matter of geography, economics, and policies. And what I am seeing is that solar is building potential on all three dimensions, for three reasons.

In principle, solar cannot perpetually depend on the government’s helping hand; it needs to make its case in the market, which it is beginning to do. In states where the price of power is high, such as Hawaii, solar is already at “grid parity” with conventional sources, which need to be imported. (One in eight homes in Hawaii has rooftop solar.) But there is little doubt that at the moment that helping hand is, in fact, helping.

  • Sun-rich countries are getting serious. This matters because solar obviously has the most low-cost potential in places that get a lot of sun. And many of those places, both rich (Saudi Arabia, Dubai) and poor (South Africa, Kenya) are taking notice. Last year, oil-rich Dubai signed a deal with ACWA, a Saudi holding company for a 100 MW solar plant at a record-low price of 5.98 cents a kilowatt hour. And Saudi Arabia itself has big plans. Saudi Aramco, the state-owned enterprise that is the world’s biggest oil company, is building 10 domestic solar plants; all told, the Kingdom is talking about building 41 gigawatts of solar PV by 2032, or enough to meet about 20 percent of its power needs.

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