There’s no two ways about it: renewable energy is the future of energy. Cleaner, more sustainable, and with less maintenance, renewables provide an unending supply of power that is better for the planet and helps local economies develop. In addition, as global populations continue to grow, the demand for electricity and power will only ever increase, meaning the potential for energy companies – major and independent – and investors to capitalise is great.
Of course, alongside the benefits and advantages of renewable energy come a series of challenges. Establishing the correct infrastructure to replace more traditional power networks, developing solutions that can withstand fluctuations in climatic behaviour, and generating the volumes needed to match demand are some of the most common concerns. But, with the industry developing at a rapid pace, and with nearly ten million people working within the sector already, the advancements being made are almost certain to deliver a cleaner energy industry for all within the next decade.
From an investment point of view, the opportunities for growth are substantial, but understanding precisely how the industry benefits suppliers and end users alike is critical before committing.
We have already touched upon a few of the advantages of the renewable energy sector. Digging deeper – metaphorically, of course – we can learn more about the advantages of the industry. From wind and hydro power to biomass and solar energy, the many sources of renewable energy provide plenty of scope to improve:
While the benefits of the renewables sector are perhaps self-evident, there’s much to be said about the reasons for adopting such an approach. As more and more evidence demonstrates the effects humankind has had on CO2 emissions and the environment, governments from around the globe have taken measures to look into a more sustainable future. This manifested itself in the ratifying of the Paris Accord signed at the World Climate Summit in December 2015.
The accord – signed by nearly 200 nations – ensures that signatories pledge to reduce emissions in order to avoid catastrophic temperature growth around the world. Images of polar bears on ice floes and dried up lakes provide the shock factor, but the science behind the effects of burning fossil fuels is all too real.
There are, of course, other factors leading to the adoption of renewable sources. Developing nations, for example, currently lack the infrastructure to supply populations with the electricity and power they need and demand. As such, establishing regional energy sources – such as wind farms, solar fields, or even geothermal technology – helps deliver reliable and affordable networks to those that require it most.
How can we expect renewables to impact economic growth? As is already alluded to above, the number of those working in the renewables sector is growing at a steady rate, with estimates expecting more than 24 million to be working in the industry by 2030.
That’s not all. With oil and gas prices continuing to rise – as of June 2019, prices have risen once more, not least due to political tensions in Iran – finding more affordable and efficient costs for energy are essential. Without export and import costs from those nations with oil reserves, and more localised power networks reducing costs for suppliers, the benefits are manifold.
Emerging markets, meanwhile, are also set to flourish. From China to a host of African states, establishing infrastructure and delivering hitherto unavailable energy sources powered by sustainable means, the opportunity to transform more remote, agricultural-reliant nations into areas that thrive with business and potential ensures that the global economy will blossom.
Understanding the impact and advantages of the renewable energy sector is integral to successfully investing in the market. As such, ensure you have access to the best industry knowledge via the Pangea Strategic Intelligence expert network today.