The September Renewables MMI (Monthly MetalMiner Index) decreased by 6.3%. As in previous months, energy limitations were the most significant factor in the decline as high temperatures and limited energy resources strain power generation systems around the world.
Electricity generation and the “green bottleneck”
At the end of August, President Biden officially sign the Cut Inflation Act, which provides $369 billion for renewable energy efforts. The law is striving to have over 900 million solar panels and over 100,000 wind turbines in operation by 2030. However, the movement toward renewable energy in the United States currently faces a big hurdle: the energy is not transferred from its production area.
According to a recent Bloomberg article, US renewable energy sources like wind turbines and solar panels do not have enough power lines to transfer electricity to their specific destination. This means that more and more power lines must be built to transfer this energy from solar fields and wind farms to the general population.
In other parts of the world, such as Europe, renewables can help balance events like the current energy crisis. However, Europe faces problems with green energy barriers, as does the United States. Ireland, for example, faces problems with offshore wind energy due to too deep ocean waters. In Denmark, the construction of wind turbines has not taken off due to the lengthy approval procedures put in place by the EU.
It is true that green energy technology and our demand continues to grow and evolve. However, like any other major change in the industry, hurdles must be addressed and overcome before green becomes mainstream.
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GOES MMI – High Temperature Plague Power Generation
September GOES MMI (Monthly MetalMiner Index) fell for the first time in months. Month over month, GOES prices were down 4.4%.
The current shortage of transformers presents another obstacle to power generation in the United States. For example, many transformer parts and components are unavailable due to supply chain shortages. This has already caused problems during the grueling heat waves of 2022. Without sufficient supply to meet growing demand from the power grid, outages are becoming more and more likely.
In California, the the third plus An expensive state to live in in the United States, this hits particularly hard due to the state’s high average temperatures and lack of water resources. For perspective, approximately 25% of the state of California consists of desert or near-desert conditions. Coupled with the ongoing heat waves, California’s networks are under constant strain and, with them, the level of comfort of the population.
Renewables and GOES Biggest Price Changes:
- With a price drop of 4.4%, the cost per metric ton of grain oriented magnetic steel fell from $4,236 per ton to $4,050.
- Japanese steel plates have not changed in price at all. It still sits at $803 per metric ton.
- Chinese silicon prices also remained flat. The price per metric ton is still at $1,519.
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