The Fire Horse Energy Transition & Creative Destruction - CleanTechnica

The article "The Fire Horse Energy Transition & Creative Destruction" from CleanTechnica explores the rapid and disruptive transformation underway in the global energy system, likening it to Joseph Schumpeter’s concept of creative destruction in capitalism. This process involves waves of innovation that dismantle existing capital, reprice assets, and reorganize industries. The current period, symbolized by the Chinese Year of the Fire Horse, is marked by intense speed and disruption, driven by the convergence of physics, cost reductions, and geopolitics. Electrification emerges as a key economic driver, significantly improving energy efficiency—electric drivetrains convert 85-90% of energy into motion compared to 20-25% for internal combustion engines—and reducing primary energy demand by 40-60%, thereby undermining fossil fuel use and associated economic rents. Cost declines in renewable technologies reinforce this shift. Since 2010, utility-scale solar costs have dropped by about 85%, onshore wind by 60%, and lithium