Why Renewable Energy Business is Booming?
Needless to say, people knew the story of depleting non-renewable fossil fuels. How about awareness of the benefits of renewable energy sources and their abundance? Indeed, globally, we must admit, that the last decade was fruitful in such terms. Environmentalists, energy sector specialists, and other global protective agencies worked hard to create awareness of the importance of shifting from non-renewable to renewable energy sources. Kudos to their efforts!
This article highlights to you the major contributors to the boom of renewable energy businesses across the globe.
- Climate Change
- Supportive Renewable Energy Policies
- Growing Renewable Energy Technologies
- Decreasing Operational Costs
- Demand for green jobs
Climate Change – The Prime Contributor
In the recent past and present, as people start understanding the consequences of climate change and global warming, the momentum of the renewable energy business will start increasing.
A January 2023 Forbes article clearly describes how climate change has impacted energy-based business owners’ and investors’ thinking of renewable energy and its commercialization. The article also clarifies the fact that even though we have a multitude of items in renewable energy like solar power, wind power, hydroelectric power, geothermal power, etc., the industry trends remain the same or similar across each of them.
At large, energy companies are working toward lowering carbon-emission during production and consumption. And countries are toiling toward a zero-carbon footprint in the years to come. These combined yet diligent activities further increase the demand for renewable energy and serve as a boon for this business.
Supportive Renewable Energy Policies
Countries, including but not limited to India, the United States, China, Sweden, Germany, and many European nations, have encouraged and financially backed renewable energy policies in place. These policies attract investors, business owners, and even the common people.
In addition, unprecedented political events like the invasion of Russia into Ukraine have made Europe self-dependent on energy supplies than counting on Russia. Did you know? According to the International Energy Agency, the net addition of renewable electricity in 2022 accounted for around 350 GW (source: WSJ). This is much higher than the previous year’s contribution (around 280 GW).
Growing Renewable Energy Technologies
Companies are striving hard to develop less carbon and more-sustainable renewable energy technologies. In this line, both solar PV (photovoltaics) and wind energy technologies have seen the most advancements in terms of technology (source: International Energy Agency). The world is yet to see some notable progress in bioenergy production, aviation energy utilization and consumption, and energy storage.
Decreasing Operational Costs
With the combined effect of growth in renewable energy technologies and increasing supportive policies, the operational costs of renewable energy companies have seen a steady decline.
Albeit, in 2022, the United States faced unexpected supply chain disruption and inflation that led to increased costs due to project delays. Nevertheless, this will only slow down the expansion of the renewable energy business and not the overall industry trend as a whole.
Demand for green jobs
The increasing interest among people in joining green jobs has a knock-on effect on the renewable energy business. So far, according to the World Economic Forum (WEF), globally, nearly 12 million people are currently employed in renewable energy industries. This in turn creates a demand for green jobs in the minds of people which further increases the chances of renewable energy business expansion.
Clean and green renewable energy growth is good for Mother Earth. Thus, let’s continue to support such renewable energy and its related businesses!