Why the renewable energy sector growth is accelerating
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Energy derived from natural sources that are produced faster than its utilization is referred to as renewable energy. With the scarcity of natural resources in ratio to the worldly population the need for more efficient and natural fuel is the need of the hour. Energy can be produced through various mediums like solar, wind, water, and geothermal energy which fall under the renewable resources bracket.
Did you know, the earth's temperature has risen ban average of 0.14° Fahrenheit (0.08° Celsius) per decade since 1880? The rate of warming since 1981 is more than twice as fast: 0.32° F (0.18° C) per decade.
The above global warming crisis requires nations to channel energies towards lowering carbon emissions and hence the acceleration in renewable energy. From 2023 to 2032, it is anticipated that the potential of non-hydro (solar and wind) renewable energy sources would expand threefold. Nearly a third of the world's total energy production by 2032 could originate from non-hydro renewable sources. The growth of solar and wind power generation has been exponential.
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Declining costs towards generating renewable energy have been a fundamental contributing factor to the expansion of the renewable energy sector. Factually, since 2010, the cost of power produced onshore and offshore, using wind as a source of energy generation has lowered by almost 50%, whereas the price for energy generated by solar cell systems has reduced by 85%. These two renewable energy sources could now compete with fossil fuel electricity in pricing.
Because of economies of scale, competitive supply chains, and other considerations, renewable energy sources grow more economical as they're implemented more extensively. These declining costs are not only engaging more adoption towards their use but also aim to make it available in every look and corner of the globe. In the past decade, for instance, the expense of installing solar power has massively declined by 34%, enabling the quantity of solar capacity deployed worldwide to expand. Due to the unique features of being flexible and regulated, technological advancements once innovated can be adopted in one location and can be immediately imitated in other areas maintaining standardization in renewable energy generation.
According to the latest report from the IEA, the global energy crisis is prompting a sharp acceleration in the deployment of renewable energy, with total capacity expansion assessed to nearly double in the following five years, overtaking coal as the primary source of electricity generation.
Countries are resorting increasingly toward renewable energy sources such as solar and wind to substantially reduce their dependency on foreign fossil fuels, whose rates have quadrupled, as a consequence of multiple issues that surround energy security prompted by Russia's incursion into Ukraine. The capacity of renewable energy is presently projected to rise by 2 400 gigawatts (GW) between 2022 and 2027, as per Renewables 2022, the IEA's most recent annual analysis on the industry. During that period, this amount would indeed be equivalent to China's entire energy capacity.
Multiple aspects of the implementation of renewable energy are likewise self-reinforcing. It gets simpler to enlist further policy assistance and monetary support as renewable energy emerges well, boosts its political power, and draws more funds. The cost of investment has declined as financiers work in tandem with the most prominent engineering consultancy not only to gain expert insights into the technicalities but also addresses project risks harmoniously.
As the energy revolution accelerates, we envisage seeing a rise in investments in renewable energy. There will undoubtedly be significant potential for renewables businesses as investments soar, notably for those functioning along the supply chain of solar and wind power. The production of solar power modules, cells, inverters, wafers, and tracking systems as well as the development and management of wind and solar power plant projects and assets all have the potential to benefit. We expect that these firms will eventually make the power sector more sustainable, providing beneficial investment possibilities in the process.
Related reads : Myths & Facts : Renewable Energy
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