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March 31, 2016
Jürgen Weiss Discusses Increasing Competition Between Renewables and LNG on Canada’s Business News Network

Brattle Principal Jürgen Weiss appeared on a March 30, 2016 segment of Canada’s Business News Network (BNN), where he discussed the increasing competition between renewable power and LNG-fueled gas-fired generation in global energy markets.

Dr. Weiss explains that the costs of renewable power, such as solar PV and wind, are falling fast enough that nations needing to boost their energy supply may look to renewables instead of costly LNG, thereby threatening the global LNG market and increasing the risk of LNG projects becoming stranded. He also warns that LNG investors need to be cautious that buyers may find power made from natural gas to be more expensive than other alternatives they have, such as renewables.

“Given that LNG infrastructure projects require massive capital investments… there is significant risk that over those coming decades, solar PV and wind may be cheaper alternatives to using natural gas for power generation for a lot of the countries LNG exports target,” Dr. Weiss points out.

Additionally, although energy storage technology (for example, batteries) can still present challenges and require additional investments in order to integrate renewables into the power grid, Dr. Weiss notes that the cost evolution of batteries is following a similar path as solar PV. Additionally, certain power systems, such as in Germany, have been shown to be capable of successfully handling massive amounts of renewables penetration.

Dr. Weiss co-authored a January 2016 Brattle report, which concluded that renewable cost trends suggest renewable power will increasingly compete with LNG as a “fuel source” for power generation in overseas markets.

To view the news segment in its entirety, please visit the BNN website.