Drop in oil prices and the threat of bio-fuel electric car industry

International Renewable Energy Agency (Irena) Director-General Adnan Amin warned that green energy industry than in other sectors, the impact of the oil price collapse of electric vehicles and biofuels industry seems to produce even more.

The reason for this is that they are direct rivals, is the kind of car with gasoline as fuel, while oil prices plummeted after this car will become more expensive.

Amin said that, however, wind farms, solar power and other renewable power plant should not be affected by the drop in oil prices, because they face competition with these two quite different.

Amin said: “We did not find any direct impact on oil prices for renewable power generation.” He also explained that the oil-fired generating capacity now accounts for only 5 percent of global electricity generation.

Amin acknowledged that oil prices for the renewable energy industry has brought uncertainty. He also admitted that after the drop in oil prices and gas prices may also fell, this will bring more problems for wind power and solar power.

However, the overall prospects for the industry, he was optimistic. Amin said that since Irena began operations four years ago, the renewable energy industry has undergone a thorough change.