From “A Wave of Capital” to “Sluggish Rollout” in Just 4 Years – Watts Up With That?

Essay by Eric Worrall

I wonder how investors who bet on UBS’ 2020 imminent green energy boom hype feel today?

Power prices to surge amid sluggish rollout of clean energy: UBS

Angela Macdonald-Smith Senior resources writer
Jul 1, 2024 – 5.01pm

The sluggish buildout of clean energy generation will drive up wholesale power prices far more than expected by the end of the decade, leaving households with little chance of bill relief beyond this year’s pause.

Analysts at UBS now expect prices to peak at $104 per megawatt hour by 2029, 20 per cent higher than this year’s forecast and almost 50 per cent more than 2023.

…

“Delay in the buildout of transmission networks and renewable generation drive the continued increase in prices, particularly during peak net-demand hours during the day,” he wrote, pointing to delays in the development of projects such as Snowy 2.0 and the Central-West Orana Renewable Energy Zone in NSW.

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Read more: https://www.afr.com/companies/energy/slow-clean-energy-rollout-means-20pc-bill-surge-this-decade-ubs-20240701-p5jq2y

Back in 2020 it was a very different story;

UBS: A ‘wave of capital’ is about to flow into renewable energy

December 17, 2020 | Sam Jacobs

Australia’s wholesale electricity prices are falling as more renewable energy sources enter the mix, UBS says.

And over the next decade, the ongoing renewables rollout will help cap the cost of electricity below $70 per megawatt hour (MWh) by 2030.

While the policy stance around renewables remains a source of debate, UBS said the reality on the ground is that government support will drive “further significant penetration from renewables” over the next two to three years.

“State government policies supporting net-zero emissions will attract a wave of new capital into renewables over the next 10 years in our view,” analyst Tom Allen and his team said.

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Read more: https://stockhead.com.au/energy/ubs-a-wave-of-capital-is-about-to-flow-into-renewable-energy/

Imagine betting your life savings on the fickle promises of politicians.

Just as well UBS, which manages $1.5 TRILLION in assets, are renowned global investment experts. Otherwise some people might start to wonder if they were just making it up as they go.