Crude oil and renewable energy are not direct substitutes, and therefore when the price of one increases, the demand for the other does not also increase. The private and public sectors have been hotly debating how best to meet this demand, by conventional or alternative means. Around twelve states have passed proposals written to inhibit the alternative energy movement.
Atwater pointed out during a presentation following "The Future of Energy" panel that solar still represents less than one percent of energy generation today.
Finally, as deposits are unevenly distributed worldwide, frequently in less politically stable nations, companies can suffer from flow interruptions and price spikes. While oil-fired power generation has previously been a key contributor to power supply, its relative importance has diminished over the past 40 years, favoring natural gas, coal, and in some regions nuclear.
Even if we changed today to using more renewable resources instead of fossil fuels for example, increases could be between 1 to 2. However, we should remember that low-cost electricity generation is crucial to the economy.
It is possible for a tipping point to be reached where fossil fuel-based power will in turn be set by the cost of solar or wind energy. So far, the alternative to fossil fuels has been around renewable energy sourceswhich are expected to play an increasingly vital role in the mix of power generation over the next century.
The dilemma with solar power is that silicon-based photovoltaic cells are fairly efficient but also highly expensive, whereas thin-film cells are relatively inexpensive but inefficient.
Due to the increase in oil prices and limited supply in tocountries placed a concerted effort on reducing dependence on crude oil. One can classify energy into: non-renewable energy oil, natural gas, coal, uranium -- all with finite lifetimes ; and renewable energy hydroelectric, biomass, geothermal, wind and solar.
Fossil Fuel Strengths The current power generation and distribution model operates on fossil fuels, and has for centuries if you consider coal.