Carbon charge will make renewables competitive, says BP
Despite the firm predicting a sharp fall in the cost of renewable energy over the next 35 years, it argues that a carbon price of $40 (£26) a ton would make gas an even more economical power source than coal in a report analysing the impact of technology on energy production and consumption in coming decades.
The paper states that a higher carbon price will be needed to make wind and solar more competitive, whilst also stating that using the best technologies to discover oil and gas resources could significantly increase reserves from 2.9 trillion barrels of oil equivalent (boe) to 4.8 trillion barrels by 2050, almost double the projected global demand.
Wind and solar costs are estimated to decline by 14% and 24% respectively each time their capacity is doubled, whilst gradually becoming more competitive in the future.
The report also stresses that a carbon dioxide price of $80 (£52) per tonne would make onshore wind technology competitive with gas-fired power and utility-scale solar power being closer to challenging.
Bob Dudley (right), BP Group Chief Executive, believes technology opens up a whole range of possibilities across the energy sector.
“Innovation can bring great value to consumers and businesses, and it can also disrupt and challenge existing models,” Mr Dudley commented.
“Today, for the first time, we are sharing our analysis of energy technologies and the options they present society in the quest for an abundant, sustainable and lower carbon energy future.”
BP’s report comes as the United Nations prepare to meet in Paris for their annual Climate Change Conference later this month, with a number of world leaders hoping to achieve a universal agreement on global climate for the first time in over 20 years of UN negotiations.
