In contrast, fossil fuel prices can vary dramatically and are prone to substantial price swings. For example, there was a rapid increase in US coal prices due to rising global demand before 2008, then a rapid fall after 2008 when global demands declined [23]. Likewise, natural gas prices have fluctuated greatly since 2000 [25].
Using more renewable energy can lower the prices of and demand for natural gas and coal by increasing competition and diversifying our energy supplies. And an increased reliance on renewable energy can help protect consumers when fossil fuel prices spike.
Barriers to Renewable Energy Technologies
Renewables face major obstacles. Some are inherent with all new technologies; others result from a skewed regulatory framework and marketplace.
Reliability and resilience
Wind and solar are less prone to large-scale failure because they are distributed and modular. Distributed systems are spread over a large geographical area, so a severe weather event in one location will not cut off power to an entire region. Modular systems are composed of numerous individual wind turbines or solar arrays. Even if some of the equipment in the system is damaged, the rest can typically continue to operate.
Water scarcity is another risk for non-renewable power plants. Coal, nuclear, and many natural gas plants depend on sufficient water for cooling, which means severe droughts and heat waves can put electricity generation at risk. On the other hand, wind and solar photovoltaic systems do not require water to generate electricity. They can operate reliably in conditions that otherwise require closing a fossil fuel-powered plant. (For more information, see How it Works: Water for Electricity.)
The risk of disruptive events will also increase in the future as droughts, heatwaves, more intense storms, and increasingly severe wildfires become more frequent due to global warming—increasing the need for resilient, clean technologies.