Most of the time there are two reasons:
1. A renewable energy is used for the production of electricity as well as heating.
2. An energy is used in the production of chemicals, raw material, manufacturing processes or for agricultural use. For example, bio fuel is produced in the USA by burning agricultural biomass. So, it is an energy produced in two main sectors. It might be renewable energy, but there is no guarantee that it is used in one sector or another. The renewable energy must cover a large part of the production process.
In comparison to renewable energy, the production of chemical fuels are often used for industrial production. To be able to use chemical energy, the cost of using them must be lower than the production of renewable energy. That’s, if chemicals are produced on the spot, where there is less than a third of the average production time, they are usually not available. The chemical is still produced as a result of the production process, so it can be used within a few years.
If the production of chemical energy is based on petroleum, the chemical industry is called petroleum industry. It is an important industrial sector that contributes to the livelihood of millions of people across the planet who are reliant upon it for production of energy. If it is using renewable energy, it’s natural chemical industry. It is a big part of our energy system, it must be protected from climate change and all negative aspects. It’s so important to do so, because if we don’t do it, a great number of different types of industrial products will start to disappear in our lifetime.
But if the production of chemical energy is used for the production of electricity, the energy is not free at all. It may be more costly than for renewable energy, but it is usually cheaper. This means the producers don’t actually earn a lot of money, not least because the money is used for environmental conservation, for public transport, for maintenance of infrastructure (e.g. water pipes) and for a large number of other activities.
However, a lot of energy are saved and/or used by the producers from renewable energy because it is cheaper than for fossil fuels. For example, for a certain time the electricity is cheaper when solar energy is available. This is because the electric grid can support up to 20 times the demand in the US than when it is unable to.
We have to reduce coal usage
So, where do we put the surplus energy? There are a few
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