The miracle of compounding not only works with returns but with an overall business and they are only talking about 10% to 20% rates
cost declines which in the last five years have made some traditional forms of thermal generation obsolete, and therefore created widespread adoption of renewables.
Over $1 trillion of capital has been invested into renewables in the last five years, and over 1 million megawatts of new renewables have been added to the global power markets. This is equivalent to the entire U.S. electrical supply being replaced by renewables in the last five years. More importantly, despite this, renewables still account for less than 30% of global power supply. We are in the midst of a 50-year long, once in a many generation, transformation of the global power grid, from 100% fossil fuels to a good portion being renewables
replacing a meaningful part of the non-renewable capacity in our core markets with wind and solar will require over $10 trillion of investment.
it may turn out that the least competitive and most profitable part of this revolution in power generation will be the storage of the notoriously erratic power generated by these renewable sources. Tesla is in the lead here, and not getting much credit because they don’t break down the profit sources.And in fact batteries at this stage may not be profitable.
Because progresses highly incremental and competition fierce I don’t see a lot of investment opportunity in wind add solar directly.