Another major financial institution is confirming that low oil prices will do “little to derail” the rise of renewable energy.
Citigroup Inc. “expects the long-term outlook for renewables will only get brighter, despite the price fall,” the bank reported earlier this week, since oil only produces about 5% of the world’s electricity and rarely competes head to head with wind or solar.
- The climate news you need. Subscribe now to our engaging new weekly digest.
- You’ll receive exclusive, never-before-seen-content, distilled and delivered to your inbox every weekend.
- The Weekender: Succinct, solutions-focused, and designed with the discerning reader in mind.
“Large-scale solar farms in the Middle East are competitive with oil at $30 a barrel, and onshore wind can hold its own against oil at $23 a barrel,” Bloomberg notes. “Oil would have to drop into the $20 to $30 range before mature renewable energy sources like wind and solar could be ‘seriously threatened,’ according to the report.”
Analysts at Deutsche Bank and Goldman Sachs “also expect renewable energy to shrug off crude’s decline, and expect significant investment in wind and solar projects this year,” Goossens writes.
