A sustainability analyst at a global energy company assesses trends in the electric power sector for the next 10 years. To inform strategy, the analyst focuses on the interaction among climate risks, advancements in renewable energy, and stranded asset risk for fossil fuels.
According to the analyst, what trend will likely emerge during the next decade?
The transportation sector faces technology risk if the trajectory of the learning curve for battery storage remains the same. Advances in battery storage are crucial for the growth of electric vehicles and renewable energy adoption, and if these technologies do not improve, the sector could face significant challenges. This aligns with the broader trends of technological advancement and climate risk management that the sustainability analyst is likely focusing on.
The statement (C) highlights that if the learning curve for battery storage technology does not improve over the next decade, the transportation sector could face technology risk. Battery storage advancements are essential for the widespread adoption of electric vehicles, which play a significant role in reducing greenhouse gas emissions and dependence on fossil fuels. Other options (A, B, and D) do not reflect the likely trends during the next decade: A. The levelized cost of energy for renewables has been consistently decreasing, making them increasingly competitive with fossil fuel energy generation. B. Solar and wind costs have decreased substantially, and they are becoming competitive without subsidies in many parts of the world. D. Replacing natural gas with coal would actually increase greenhouse gas emissions and transition risks, as coal is a more carbon-intensive energy source. The trend in the power sector is moving towards cleaner energy sources, such as renewables and natural gas, which emit less CO2 than coal.
B is flat out wrong. Solar and wind are doing great even without subsidies. C is right. This answer key was just crappy
Question is not about transportation but power generation. Answer C is a trap. Correct one is B.
B can't be correct because the question asks about the trends for next decade. Solar and wind have been competitive with fossil fuel in many places and the trend will continue.