The Renewable MMI (Monthly Metals Index) slowed in terms of bearish price action, moving sideways and dropping 2.66%. Meanwhile, cobalt prices suffered another huge price drop, mainly due to weak demand and oversupply pulling the index down more than up. According to renewable energy news sources, the market could experience more metal price volatility due to several factors.
Steel plate prices dropped in the past month amid somewhat weak demand. This could work in the favor of wind turbine projects purchasing steel plate. On the flip side, the demand for and construction of more batteries to store excess solar power could lead to some bullish sentiment for battery metals.
Is California Producing TOO Much Solar?
Recently, California began encountering a surprising issue with its solar power generation: excess solar energy. Due to the state’s significant investment in solar power, there are often times when it is produces more electricity than it can utilize or store, causing it to waste a considerable quantity of solar energy.
According to renewable energy news sources, California produces more solar electricity than its population needs during hours of maximum sunlight. This overproduction forces grid operators to reduce or stop operating solar power facilities. The problem is that the development of storage systems continues to lag behind the rapid rise in solar capacity. As such, the surplus energy produced cannot be captured and stored by the current battery storage technologies, underscoring the need for a more sophisticated and extensive storage infrastructure.
As the state attempts to address this issue, it continues to lower the financial incentives for installing additional solar panels in an attempt to delay the rate of new installations.
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Necessity for More Batteries as Green Energy Increases
Meanwhile, the shift toward renewable energy continues to accelerate, driven by the urgent need to mitigate climate change and transition to sustainable power sources. As solar and wind energy grow, they create an ever-more-pressing need for sophisticated grid-forming inverters and efficient storage solutions.
Solar and wind power can only generate electricity during periods of extended sunlight or wind. So, to guarantee a steady flow of energy, there must be a way to store surplus energy produced during periods of high production, thus making it accessible during periods of low output. This ultimately necessitates more investments in battery production and critical mineral mining.
Most renewable energy news sources agree that higher efficiency and lower prices will result from the ongoing research and development in battery technology. In time, this will increase the overall viability of renewable energy on a greater scale.
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Grain Oriented Electrical Steel MMI
After seven months of straight declines, the Grain Oriented Electrical Steel MMI finally rebounded, increasing by 4.24%.
Hurricane Beryl Causes Strain on Already Sparse Transformer Inventory
Hurricane Beryl recently brought to light weaknesses in the American electricity system, especially in Houston, where the hurricane produced extensive power outages that affected around 2.7 million people. This event underscores the urgent need for a more resilient energy system, as reported by many renewable energy news sources. Meanwhile, there have been continuous efforts to restore power, with businesses like Entergy Texas striving to provide electricity to impacted consumers.
The scarcity of transformers and its effect on the American electricity system has also come to light as a result of the outages. Due to disturbances in the supply chain and increased demand, transformers—which are essential for transforming high-voltage electricity into usable power—remain in short supply. That said, the transformer shortage is an ongoing problem that the U.S. has continued to grapple with for years now.
Among other things, Hurricane Beryl emphasizes the need for significant investments in power grid infrastructure and supply chain resilience to better prepare for future storms and mitigate their impact.
Renewables MMI: Notable Price Shifts
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- Neodymium prices dropped by 6.15% month-over-month, reaching $61,269.94 per metric ton.
- Silicon prices moved sideways month-over-month, dropping by 2.88% to $1,775.13 per metric ton.
- Cobalt prices dropped the most out of all components of the index. In total, prices fell by 11.63%, down to $26.12 per kilogram.
- Finally, steel plate prices dropped by 6.14% to $1,177 per short ton.
