Why green energy is becoming popular

Renewable energy sources have been steadily increasing for years. There are many reasons why they’re better than fossil fuel, including reduced risk of contamination, zero carbon emissions, and the affordability of solar panels.

One of the most important reasons for the rapid deployment of green or renewable energy sources is that they do not create harmful substances such as carbon dioxide. It’s leading to a sustainable future and preventing global warming. The benefits of switching to clean & renewable power sources outweigh the costs. This switch would reduce pollution and help us all breath easier. It can also be a big step towards better public health and could save many money-spending folks from expensive health care.

Energy security. It’s not just a desirable idea, renewable energy sources can really help reduce dependence on fossil fuels. European and Asian countries are rapidly switching away from fossil fuels to renewable energy imports. Quick deployment, diversification in technology, and independence from fossil fuel prices are three of the most common reasons why many countries look into renewables for energy independence.

Increased efficiency. Technology is continually advancing in the green energy industry, which has made it more efficient. With the high availability of solar and wind energy, this has made it an attractive option for commercial use.

Social factor. Renewable energy has been a great industry to invest in, with a lot of job opportunities on offer. Renewables can create jobs in the US – 12 million worldwide.

The Sustainable Development Scenario: the future of sustainability. This scenario shows how to get to these goals in a practical and cost-effective way. If this scenario unfolds rather than the one you are pursuing with your policy, renewable energy sources will receive a lot of investment.

Back in 2000, renewables made up 2.8 terawatt hours (TWh) of the annual electricity emission. In 2008, 3.8 TWh; now, renewable energy sources make up 6.7 TWh of the annual emission

Solar was the fastest-growing energy source in advanced economies, with a 33.1% average annual growth rate. Wind power and biogas showed similar annual growth rates of 20.4% and 11.3%, respectively.

As of 2019, renewable energy sources accounted for more than 50% of all installed capacities for the past 6 years. The international Renewable Energy Agency reports that in 2019, 75% of all commissioned energy plants are renewable!

New data show that clean technologies now provide more than a third of the world’s energy. This is another record.

Renewable energy investments are also on the rise. As of 2020, investments in renewable energy will amount to $ 281 million, second only to the oil and gas sector – $ 322 million. Investments in oil & gas are becoming less profitable, while they’re still invested in renewables. It is expected that by 2025, green energy will be the most lucrative area for investments.

The renewable energy industry is doing well and solar and wind energy are the two increasing fastest. Solar has also become more popular than wind farms in recent years.

The global oil market has been volatile in the last few months with a tougher. The demand for oil has been dropping due to tough quarantines and a price war between Saudi Arabia, Russia and the United States. Renewable energy looks like an industry that can insulate electricity markets and.

The International Energy Agency says that the rate of renewables growth is going to decrease by 13% in 2020 from a record pace set last year. They suggest this is the first time declining capacity growth has been seen since 1998.

This delay is due to the COVID-19 pandemic, which has lead to a slower launch and funding for many projects. But it also reflects the policy shifts that took place prior to this outbreak of the pandemic. For example, ending subsidies on green technology. With the prices of renewable energy sources dropping, it’s now affordable to let go of government support. Renewable energy is the future and it’s already taking over. China, the largest market for this clean fuel, is also a manufacturing hub for much of their infrastructure.

Renewable energy independence from fossil fuel prices is a strong advantage for American markets. Frozen transportation and suspended industrial activity are very significant factors of low energy demand – oil will decrease by an annualized rate of 12 million barrels in 2020. But the renewable energy market will still grow. Even with a sharp slowdown, growth is expected to be around 6% year-on-year.

Cost of green energy

Renewable energy sources are already more cost-effective than other choices in the current market. The rate of cost reduction is also impressive. For wind turbines, from 2009 to 2018, the price per MWh was reduced from $ 135 to $ 42. From 359 to 43, that is, by 9.7% per year. Solar panel efficiency is growing faster.

Renewable energy capacities introduced in 2025 will already be much more cost-effective. Not only that, but solar energy will also become the most efficient. Offshore wind turbines and geothermal energy will also be able to compete with gas when it comes to profitability

By 2040, the cost of solar and wind power will be lower than that of natural gas in many regions. And even if alternative energy industries are currently heavily subsidised, clean energy technologies are progressing and will eventually become cheaper than fossil fuels.

How the sector is subsidized

There are now many measures to support renewable energy sources. Here are the main ones:

1. Green certificates.

2. Reimbursement of the cost of technological connection.

3. Tariffs for connection.

A green certificate shows that they have purchased a certain amount of electricity generated from renewable sources. A lot of big companies are setting themselves “green targets”: to buy clean electricity in order to meet ambitious eco-friendly objectives. Businesses in the renewable energy industry are seeing a surge in demand. This has incited companies to secure their future by investing in green technology. Companies who made the switch are now able to create additional revenue for themselves and encourage other companies to make the same transition.

Giving companies some compensation for installing new technology is a great way to make renewable energy projects more appealing. For example, you could arrange for the government to pay the company back over time.

Fixed tariffs are the most successful way to stimulate the development of renewable energy sources. Countries with these support measures base them on three factors:

1. Guaranteed connection to the network.

2. Long-term contract for the purchase of all generated electricity.

3. Guaranteed purchase of electricity at a fixed price.

Fixed tariffs can differ not only for different renewable energy sources, but also depending on the power produced by each. One possibility for a fixed tariff system is to use fixed premiums to the market price of renewable energy. This is usually done through surcharges or fixed rates tacked on to the business’ energy bill over 10-20 years. This ensures there is a return on investments and profits for the company itself.

For an investor, a system of fixed tariffs could mean companies operating under such a scheme already have guaranteed cash flows. For good measure, let’s add in the part about decades down the road.

What an investor should do

The use of renewable energies is always up for debate. When you look past the subsidized prices, it’s easy to see that these companies are having a difficult time finding investors. AI developments are making AI accessible & cheaper. This means that in the future, many companies will be able to use it while fossil fuels may become less economically viable.

The following options in the green energy sector are available for investing.

There is also the chance to invest in the future, with growth stocks like solar energy – if it continues to grow at its current rate, with new technologies in this area which need investment.

In this case, the share price of such companies as Enphase Energy, First Solar and SolarEdge Technologies would probably be worth keeping an eye on.

If you have limited funds to invest, you’ll appreciate the ETFs on renewable energy below.

The largest clean energy fund is the iShares Global Clean Energy ETF (ICLN). Blackrock’s third-most popular fund in this space, ICLN invests in 30 top companies in renewable energy and is worth $9.5 billion.

For people who love stable & high dividends, firms that generate and sell electricity are worth looking at. The model of this business is highly stable – due to the fact that most often such companies have long-term contracts for the supply of electricity at. These are all companies in the renewable/renewable energy sector.