9 Facts You Need to Know about the Renewable Energy Industry
Nicole Junkermann stated “According to Deloitte’s 2020 Renewable Energy Industry Outlook Report, the renewable energy industry looks set to enter a new phase of growth, driven by innovation, collaboration, cost competitiveness and customer demand. “
Here’s why investors are turning in increasing numbers to the renewable energy industry.
1. Currently, 11 per cent of US domestic energy comes from renewable sources.
A further 8.3 per cent is generated by the nuclear industry, while 80 per cent is derived from fossil fuels. The United States is home to 5 per cent of the world’s population but uses 25 percent of the global supply of fossil fuels. Generating electricity from fossil fuels creates CO2, as well as pollution, contributing to smog and acid rain, and causing health problems in the population.
2. Wind turbines generate zero emissions.
Critics do point out, however, that wind turbines have their shortcomings in terms of aesthetics, noise, land use, and bird and bat mortality. Nevertheless, according to the National Renewable Energy Laboratory (NREL), in addition to sizable onshore wind resources, the United States has extensive offshore wind power potential. Leading experts indicate that offshore wind farms could one day be used to power the whole of the US East Coast.
3. Notably, 2019 was a record year for investment in non-traditional energy companies.
According to the International Energy Agency, more venture capital investment than ever before is being used to fund renewable energy startups.
4. Venture capital investors play a crucial role in energy industry innovation.
They bridge the gap between the lab and the market, providing vital funding to inventors and innovative entrepreneurs. This enables us all to benefit from the development of low-carbon products.
5. Corporate investors are increasingly turning to the electric car market.
Investors from outside the auto industry are increasingly injecting funding into the development and production of electric vehicles. According to a Reuters analysis published in 2019, vehicular electrification attracted over $20 billion (£15.5 billion) in venture capital investment in 250 startups in recent years.
Analysts predict that electrification of the automobile industry could extend to other markets, such as home energy and consumer products. Electronic vehicle development has led to exponential advancements in lithium-ion batteries. This has led to calls for fleet electrification in the global effort to reduce fossil fuel consumption and associated emissions created by traditional combustion engines.
5. Royal Dutch Shell and BP are increasingly investing in green energy.
Renewables, such as solar and wind power, are playing an ever-increasing role in the energy industry. Recognising the opportunities created by new technology, some of the world’s biggest oil companies are positioning themselves to keep up with the global transition to renewable energy.
Five of the eight biggest oil companies have invested considerable resources into renewable energy. In 2018, Shell announced plans to double investment in green energy, committing to spending $4 billion (£3.1 billion) on low-carbon energy annually.
6. Investment in renewable energy far exceeds investment in dirty fuels.
According to statistics published by the United Nations, investment in renewable energy reached $288.9 billion (£225 billion) in 2018. China accounted for 32 per cent of total global investment in green energy, followed by Europe at 21 per cent; the United States at 17 per cent; and Africa and the Middle East at 5 per cent.
As BloombergNEF chief editor Angus McCrone pointed out, since renewable energy is becoming less expensive and more accessible, we are starting to see increased investment activity across Asia, Eastern Europe, Africa, and the Middle East.
7. Just one wind turbine can power up to 1,400 homes.
Wind energy installations vary greatly in terms of style and size, from large industrial windfarms, to smaller developments generating power for a single household, smallholding, or local community. A single turbine can generate enough electricity to power 1,400 homes for a year; run an average computer for more than 2,000 years; or make 230 million cups of tea.
8. Clean energy creates up to five times more jobs than fossil fuel.
Currently, clean energy creates more jobs than fossil fuels in virtually every American State. Experts predict that this growth can only continue as renewables become more accessible and affordable.
According to Department of Energy jobs data analysis by Sierra Club, jobs in clean energy outnumber those in fossil fuels by over 2.5 to one. In terms of employment in the coal and gas industries, clean energy jobs outnumber those by a reported five to one.
Employment in the renewables sector has enjoyed significant growth in recent years. Jobs in wind and solar power are growing 12 times faster than the remainder of the United States economy.
9. Investment in renewables surpassed $2.5 trillion (£1.9 trillion) between 2010 and 2019.
According to data published by the UN Environment Programme in September 2019, global investment in the renewable energy sector was set to close out on a record-breaking decade in terms of investment. In 2018 alone, 29 countries, including Spain, Vietnam, and the Ukraine invested more than $1 billion in renewable energy capacity.