● The Price is Wrong: Why Capitalism Won’t Save the Planet
Brett Christophers
Review via Financial Times
Why is it so difficult to wean renewable energy off public support? While higher interest rates and steel prices clearly haven’t helped, Christophers argues we’ve missed the answer for a structural reason: we are looking at the wrong measure. It isn’t just relative power prices that determine how many wind or solar parks get built; more important is how profitable entrepreneurs think these investments will be. And here’s the rub: the anticipated returns are unappealing. On average, renewable projects earn just 5 to 8 per cent on their equity, Christophers reports, compared to more than 15 per cent for oil and gas.