From 28m agoJillian and Damian are liveJillian Ambrose and Damian Carrington are online now answering your questions about fossil fuel profits, the climate crisis, energy policy and more.Key events2m agoWhy aren’t big companies more on-board with renewables?13m agoIs it right that oil prices haven’t risen because China’s oil imports have dropped?24m agoHow does fossil fuel subsidy compare with profit?28m agoJillian and Damian are live6h agoWelcome to the conversationWhy aren’t big companies more on-board with renewables?Pazoozoo asks: If renewables are cheaper, then why aren’t more big companies getting involved?OccassionalComments asks: If renewables are so much cheaper than fossil fuels, why is replacing the older more expensive system so complicated and taking so long? What are the major obstacles?Jill:
double quotation markThis is a great question, with many answers. But the top two are: profits and grids.
Renewable energy projects may generate low-cost electricity but they are still expensive to build, and costs have climbed in recent years in line with inflation. In return for the high upfront costs, investors can expect long-term returns via steady subsidies. Major oil companies - which are used to ‘boom and bust’ market volatility - argue that these earnings have not been able to compete with the potential returns they can make from a fossil fuel project. If they intend to keep making the returns their shareholders expect, then they need to be quite picky about which renewable energy projects they choose.
