Engine No. 1 Activist Presentation Deck
Impact of Falling Costs for Renewables
Looking at where the industry is going, versus a snapshot of where it is today, underscores
the long-term risk to oil and gas companies
Significant and sustained improvements in the cost of renewable energy production have
been consistently underestimated by industry participants, and the cost of both Solar PV
and wind energy have rapidly become on par with natural gas-powered generation
"The [Energy] transition is driven by cheap renewable-energy technologies. Today, either wind or PV are the
cheapest new sources of electricity in countries making up around 73% of world GDP. And as costs continue to fall,
we expect new-build wind and PV to get cheaper than running existing fossil-fuel power plants. In China,
unsubsidized renewables undercut coal in 2023-24, and in the U.S. they undercut natural gas in 2024-25."
Bloomberg's New Energy Outlook 2020
Mean LCOE ($/MWh)
$400
$350
$300
$250
$200
$150
$100
$50
$0
$359
$135
$83
2009
$82
2010
$157
2011
Levelized Cost of Energy Comparison
$98
2013
2012
Gas Combined Cycle
$79
$59
2014
-Wind
2015
Solar PV and Wind both
become cheaper than
Gas for the first time in
2016, and remain cheaper
2016
Solar Photovoltaic
Quote Source: Bloomberg's New Energy Outlook 2020.
Text source: IEA Renewables 2020 (https://www.iea.org/reports/renewables-2020). Chart source: Lazard LCOE Analysis version 14.0.
2017
2018
2019
$59
2020
REENERGIZE
EXXON//
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