« Exchanges at Goldman Sachs

Markets Update: February 14, 2020

2020-02-14

Jordan Meer of Goldman Sachs' Renewable Power Group gives his quick take on the five numbers he's watching in renewable energy markets.

This is an unofficial transcript meant for reference. Accuracy is not guaranteed.
Welcome to our exchanges, the Goldman Sachs Markets, update for February Fourteenth area week, we sit down with leaders across the firm to get there quick take on the numbers they're watching in markets, I'm Jake Steward in today's guest is Jordan Mirror of the renewable power group. Welcome Jordan, supposed to be here. Before we dominant numbers gives a quick intro, explain what you do here common absolutely. So I'm ahead of investing within the renewable paragraph in the consumer investment management vision. We invest capital, on behalf of high net worth individuals and institutions in solar, wind and storage projects It is the big number in the renewable sector that you ve been looking at one point five trillion dollars in the last five years. One point five trillion dollars has been invested globally in renewable energy. Today: renewable energy accounts for roughly ten percent of the global power mix in marketing. births and folks, and our team believed that there is one way to get two thirty percent by twenty. Forty, in fact, even be
He recently upwardly revised its internal forecast in believes that renewable energies will displace call by twenty. Forty is the number one source of power in the world. What's a number, He thinks been getting a lot of attention, but doesn't really tell us exactly what we need to know: twenty six percent solar projects built and twenty twenty the projects. See by twenty six percent dollar for dollar federal investment, tax credit. This means Four acid owners like us when we build a project, fully twenty six percent of the project. Cutbacks is pay back to US visa. The attacks going forward. This tax credits slated to step down to ten percent by twenty twenty two. However, why in the policy debate around subsidizing renewables is an important fact on an unsubsidized basis, renewable energy projects today or the cheapest form of power and most markets in the? U S and why This should this trend persist in shock the answer is that the trend is sustainable and we expect that the cost of solar to decline going forward. Economies of scale and efficiencies in technology should lead to
cost declines over time, therefore outpace any declines in subsidies. Therefore, we see a long term supply and demand story, that's quite attractive in the renewables. What's a number that moved a lot or maybe has movies all that is caught your attention? Thirty three percent as Semburan, two twenty nineteen one in three Americans live in a community for which the community has committed to a hundred percent renewables by twenty fifty this means is that there is a groundswell of activity fortune, five honey. companies like Goldman Sachs and governments, municipalities, universities that are clamouring to deploy renewable energy into displace fossil fuel as their number one source of power, what's a number that you think about for the future of renewables, one hundred dollars per kilowatt hour. The story of solar life to date is a story of caustic lines. As I do. to the level eyes. Cost of energy has come down was eighty percent in terms of solar and wind over the last decade. In order to solve the biggest issue and solar, though we need batteries to become costs competitive as well so
storage reaches a hundred dollars per kilowatt hour. We anticipate that solar, coupled with storage, should deliver around the clock. Energy. That's both cheap and competitive, with baseless generation from coal and natural gas are right so podcast is coming out on Valentine's day, have to push on spot. What's an number to thinking about on February, fourteenth you're too Valentine's day, I'm getting married in two hundred and five days so happy
on ten, say Tracy, I'm well, that's a first on this pod, Gaston Congrats to you and Tracy. That's offer this week's markets update on exchanges, Goldman Sachs in case you missed it check out or other episode this week about the twenty twenty investment outlook, which mean most of our money chief investment officer of our private wealth management, division thanks and have a great weakened. All price references and market forecast correspond to the date of this recording this pod cash should not be copied, distributed, published or reproduced in whole or in part. The information contained in this package does not constitute research or recommendation from any Goldman Sachs Entity the listener. Neither Goldman Sachs nor any of its affiliates makes any representation or warranty as to the accuracy or completeness of the statements or any information contained in this podcast and any law
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Transcript generated on 2021-09-17.