The falling oil prices coupled to economic slowdown in China which is leading the world renewable energy sector will harm in the near future the renewable energy industry which may collapse if incentive measures are not taken to raise investments.
We need a smooth transition to switch from fossile to Clean energy sources.
In my opinion, the fall of oil price is not a permanent phenomenon. It is expected that the oil price will go up once again during the coming months and years. Without any doubt, a low oil price will have an impact in the energy sector of several countries, particularly in the case of oil exporter's countries and in the emerging countries. It is true that renewable-energy source will be affected as a result of a low oil price, particularly wind and solar due to their instability in the electricity generation and because there are still very expenses, making more complicate its use in comparison with other energy sources.
I agree that the oil price collapse is not a permanent phenomenon but this time with the shale oil/gas production, OPEC excess production, financial crisis and world economy starvation,...it seems the duration of cheap oil will be longer even Forecasters expect more of a rebound in oil than the market does. I expect a good resilience from RE industry and I hope it will stand ....
As renewable energy industries need fossile energy to manufacture wind turbines, solar collectors, PTC, HTF, then , There is still a risk if the prices continue to decrease...
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'soft transition' from fossil fuels to a solar, by David Appleyard:
"Nowadays, developers are more confident about STE technologies because many power plants are successfully operating in many locations, including some hybrid ones," says Rejano Flores, adding that where hybrid technology is appropriate, there is a market opportunity to develop the technology to get a 'soft transition' from fossil fuels to a solar energy source".
Renewables need fossils to make a soft smooth energy transition. If oil prices collapse, oil production will decrease. then Switching to a 100% RE with no fossils help is risky and hard.
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