Why fuel price rise is great for the economy!

Most of the users are grumbling about the increase in fuel prices, but according to us, its really great for the economy. Yes, you heard it right, we mean that.

Well you must be wondering as to how such a thing is possible. By economy, we do not mean the economy per-SE but it is good for the Renewable Energy economy to prosper and show how things can be run in a better way. By renewable we mean pure green energy, not the one thats stored in batteries and supplied. Theoretically, consumption of a household should not be more than 15-20 units per day – (one unit 1000 watts). To further break it, its usually around 60% during day time between say 8AM to 6PM. Using a combination of solar + wind – a hybrid system – one could easily generate that part for consumption without any need for storage. Say even if each family is able to reduce their dependence on utility companies by around 30%-40% it could have a high impact on how the entire power sector works.

Ok, now we were talking about fuel price increase, where did the power sector come into picture? Yes, thats the whole economics of fuel price rise. Say the fuel price is increased by 20%, this 20% could be passed on as subsidies for users planning renewable energy for their homes. This could drastically reduce the price we currently need to pay to install and run renewable energy based power. Currently, the cost of solar based power system is between USD4-USD7 per watt. Now if this cost were to reduce to say USD2 per watt and similarly for wind we believe its around USD3-USD5 per watt, many users could shift their daily requirements to solar / wind based power for their peak daily use, this could reduce the necessity for installing additional power generation capacities. Other than direct investments, it could also reduce the transportation and manpower costs needed to move the non-renewable energy material to run these power plants. Overall, by just increasing the prices of fuel by 20% and passing it on as subsidies for renewable energy, the government could actually save over 40% theoretically considering the additional benefits.

This could further positively impact green transportation using renewable energies rather than depending on fuel.

Other advantages would be reduction in pollution levels and the overall effects on the environment would be positive. Once pollution levels decrease it could even have a positive impact on the climatic conditions.

Hence, we would sincerely love our users to comment on what they feel about this issue and how we could create a positive impact on our environment and reduce burdens on utility and fuel companies.

Leave a Reply