This week I will talk about ENERGY 

ENERGY  

Cost reductions and improvements in renewables ( Solar, Wind and Batteries  (SWB) )  have made these cheaper during the last Decade and even  further reductions in costs are expected  by 2030. 

Energy type	Cost reduction 2010 -2020	Expected further reductions 2020- 2030
Solar	-82%	-72%
Wind	-46%-	-43%
Battery ( storage )	-80%	-70%

Although not yet being deployed to the degree  that is needed,  SWB sources are now already the cheapest forms of energy and are  expected to reduce in costs by a further 70% by 2030.  This will result in energy  becoming very cheap and abundant which will reduce costs in many other areas.  

What does this mean and why is this important ? 

Coal and gas extractive industries  will shrink drastically or even become obsolete within 5-7 years  while companies focussed on SWB will  prosper.  If cost of energy becomes near zero, the costs of manufacturing will reduce drastically  and products  can  be made much more cheaply (Already, high energy users such a steel manufacturers are moving their plants and operations to locations where SWB  will be most readily available.)  Traditional power generation systems based on coal, gas , oil  etc will become uneconomic  and redundant.  Reducing costs and increased storage capabilities of batteries will drive forward e- vehicle expansion making the internal combustion engine (ICE)  vehicles obsolete in the higher income countries and eventually even in the lower income countries. Most large car companies already struggling with significant decline in sales will have to pivot to electric vehicles (EV) to survive in the short term but in the longer term, even many of them  will go bankrupt ( especially when the mpacts on transport  ( see  blog 2 )  also come on stream) 

Request from Alan 

As some of you know from my earlier posts on LinkedIn , there are millions of businesses in  low- and middle-income countries (LMICs ) who will not have easy affordable access  or knowledge to be able to use AI or to harness its benefits to improve their productivity and profitability. At the same time there are typically  around 20% or more unemployed  graduates in each country who are unable to find a job or to earn any income. In addition around 20% and of knowledge workers and 30% of manual workers will lose their jobs due to AI. Because of no code platforms it is no longer necessary to be a programmer to develop useful AI related products  so if any of these individuals can retrain to use AI tools, they may be able to earn an income for themselves as well as helping  local businesses to implement AI tools to improve  profitability. Both parties would benefit  

The free downloadable books available on this  website for each group  give examples how others around the world are harnessing the capabilities of AI to equip their businesses or themselves for the AI Tsunami  that is already starting to hit us. Please let others know and encourage them to download books to help them thrive in the AI era 

Dr Alan Ross

 linkedin.com/in/alan-ross-06790914 

alan.ross@global-ai.solutions