The impacts of renewable energy sources on fossil fuel

With oil prices rising and looking set to reach $100/barrel again in the not too distant future, the ongoing debate about increased deployment of alternative and renewable energy sources is sure to be ever more in the foreground. States and industries that are heavily reliant on fossil fuel as a source of energy will continue to feel the growing pressure that the rising costs are placing on their bottom lines. As such, the price of energy becomes a motivator to invest in energy efficiency methods as well as diversify the energy mix using alternative, renewable technologies.
Of course, the price of oil is not indicative of the price of all fossil fuels, however, as the prime energy source and as a benchmark against which many commodities are traded, oil’s price has a profound impact on energy prices across the board. With the previous surge in oil prices, we did notice, however, that natural gas was no longer a follower of oil, but rather has transformed itself into a competitor and a viable alternative. In the power generation landscape this has already had an impact, but as with the price of oil, the price of natural gas, too, is also in constant flux.
Renewable energy sources do come at a cost. There is a significant upfront investment that is necessary and the scale in many economies is not yet there to allow renewable energy to viably compete without some form of assistance. This, however, is beginning to shift and we are seeing the first non-subsidized renewable energy generation projects coming online.
Fossil fuels are around to stay for the foreseeable future, however, there is an increasing need and desire for diversity in the energy generation landscape being driven by, but also made possible by the technological advancements in the energy sector.