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Home> News>Industry Information>The Pros And Cons Of Falling Oil Prices — Gi Solar Structure Made In China

The Pros And Cons Of Falling Oil Prices — Gi Solar Structure Made In China

From:Serve (Xiamen) New Energy Co., Ltd.     Release time:2018-12-30

Overview:For renewable energy, the impact of falling oil prices may be severe - renewable energy microgrids mainly replace diesel for power generation, while many commercial users and communities in remote areas still rely mainly on diesel as a source of energy. But considering the lack of traditional energy sources, falling oil prices have some positive effects on new energy sources, let's look at two aspects of the impact of the sharp fall in oil prices.

For renewable energy, the impact of falling oil prices may be severe - renewable energy microgrids mainly replace diesel for power generation, while many commercial users and communities in remote areas still rely mainly on diesel as a source of energy. But considering the lack of traditional energy sources, falling oil prices have some positive effects on new energy sources, let's look at two aspects of the impact of the sharp fall in oil prices.


Benefits:


Potential customers of the energy industry are more cost-conscious and open to new energy sources that can provide more added value.


Fluctuations in oil prices make it more difficult for users to plan for future energy consumption, and relatively stable renewable energy is an option to consider.


Because of the low cost of diesel and the favourable contracts locked in, end users can promote renewable energy and make it more affordable.


Fuel subsidies will be eliminated in many countries, and emerging markets will reduce subsidies for traditional fuels.

Wholesale Low Ballasted Aluminum Pv Mounting System From China

Disadvantages:


Diesel power costs are lower, so alternatives to renewable energy require lower bids.


End users in the energy sector seldom consider the credit problem of financing projects.


Potential customers in the energy industry have to deal with more critical issues.


No decision-making or delayed decision-making in the changing times.


Cash flows and customers investing in the energy sector will be significantly reduced.


Overall, the recent turmoil in resource commodities and low prices will lead to some growth in renewable energy microgrids in the short term. Such a commodity recession will prompt renewable energy project developers to provide more competitive products and solutions. They should concentrate on strengthening projects and come up with more valuable solutions so that renewable energy will have a stronger foundation for growth in the future even when oil and other commodity prices rebound.


About Serve Energy

Serve (Xiamen) New Energy Co., Ltd. is a Chinese manufacturer of Low Ballasted Aluminum PV Mounting System with independent intellectual property rights. Serve Energy specializes in the research and development, production, sales and services of solar products, such as wholesale low ballasted aluminum pv mounting system from China, wholesale steel solar structure from China, GI solar structure made in China, wholesale ballasted solar racking from China.


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