A large and rapidly expanding global financial bubble now exists around conventional coal, gas, nuclear, and hydro-power energy assets

Key Findings

  • Conventional energy assets are severely mispriced, and their overvaluation is creating a growing asset valuation bubble in the conventional energy sector.
  • Coal, gas, nuclear, and hydro power are no longer competitive with the combination of SWB, even using inaccurate mainstream LCOE calculations.
  • Solar and wind power reached cost parity and became cheaper than coal, gas, nuclear, and hydro power several years sooner than mainstream analysts reported.
  • The widening gap between rapidly increasing conventional energy LCOE and rapidly decreasing SWB costs means that the SWB disruption will proceed faster than expected.
  • Coal and gas power plants with integrated carbon capture and storage (CCS) are doubly mispriced (overvalued).
  • Governments must protect people, not incumbent companies or industries, from the financial risk of the conventional energy asset bubble.
  • Carbon neutrality can be achieved more quickly and cheaply than generally expected.