Negative energy prices on some days due to excess renewables capacity

“Bill Gates became the richest bloke on Earth off the end of the mainframe,” said Neil Eckert, chairman of Aggregated Micro Power Holdings Plc, an energy services company that installs small power plants. “We are seeing the end of the energy mainframe. The world will have to learn new techniques -- how to invest in small-scale distributed energy.”

https://www.bloomberg.com/news/articles/2018-08-06/negative-prices-in-power-market-as-wind-solar-cut-electricity

What does it mean for outlook for suppliers of fossil fuel equipment and services?

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That's a stupid quote. The mainframe did not end. Many thousands of them doing the computational heavy lifting in very secure locations. Bloomberg Plc should know, they maintain an impregnable fortress filled with data processing and communications controlling systems in Princeton NJ.

Future will be a mix of gas and renewables.

GE has to survive through this downturn caused by excess capacity in gt as well as renewables. Unfortunately they binged when they should be lean. Alstom will go down as worst deal ever made by GE. I’m sure it ranks there with TW-AOL deal.

The number of days with excess renewables capacity will keep going up until it hits 365. The turbines will only fire on February 29th.

That is a grid and storage issues. The demand for energy will keep going up and renewables will not be able to cover it, unless a quantum jump in solar.

It means a $23B write down in good will.

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Negative energy prices on some days due to excess renewables capacity

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