Will Renewable Energy Ever Rule the World?

Peabody Energy Corporation is a private coal company. It takes pride of place as the largest coal company in the world. Back in 2010, its chief executive, Gregory Boyce, declared, “Coal is the future. Wind and solar comprise just 1% of today’s U.S. energy mix. It is unrealistic to suggest that renewable could replace conventional base load fuels.

Fortunately, for the world, his words did not prove prophetic! Today, solar energy and wind power are as much in demand as are fossil fuels. In fact, the world is slowly waking up to the fact that these sources are the cheapest sources of energy that are also renewable. Many nations even hope to depend solely upon alternative sources of energy by 2050. Thus, renewable energy is all set to rule the world for several reasons.

Easy Availability

Over the years, humankind has established a deep bond with fossil fuels. However, these fuels are not available anywhere and everywhere. For instance, the Middle East holds the key to giant oil reserves. Similarly, Nigeria, Russia, etc., possess plentiful reserves of natural gas and oil.

However, every part of the globe possesses renewable sources of energy in some form or the other. These energies include solar, wind, water, geothermal, and biomass. Their presence ensures that nations develop a deeper sense of energy security. Similarly, they will be able to move towards energy independence. It may also become possible for one country to integrate its electricity grid with another in the future. In turn, this should lead to novel trading patterns. According to experts, when everything falls into place, existing gas- and oil-related conflicts are bound to decline. Even a few maritime chokepoints (narrow channels that are part of widely traveled sea routes), which become focal points of conflicts and delays, may lose their strategic importance in the future.

Lowering of Costs

Sensing the shift in mindset in recent years, governments are urging entrepreneurs and existing power suppliers to initiate renewable energy projects. They are keen to offer subsidies, as well as assistance with loans. Furthermore, even the costs of technologies are reducing. Therefore, the interest in clean energy is growing. This interest is specifically visible amongst people supplying power to the corporate sector. After all, corporate tend to run up huge electricity bills every month! Additionally, they can afford a one-time investment in solar/wind energy. They are well aware that maintenance costs are minimal.

Energy providers give their corporate customers two options for obtaining power.

• Synthetic PPA – PPA refers to a power purchase agreement, which may last anywhere between 12 and 15 years, or between 20 and 25 years. Here, the energy provider and the corporate buyer enter into a long-term agreement regarding pricing and everything else. The power supply continues through the existing power grid.
• Direct-wire solutions – Here, the renewable energy solution remains on-site. For instance, the solar installation may be on the rooftop of the corporate house or be mounted on the ground. Alternative arrangements could be the installation of small wind turbines. Sometimes, combined heat and power (CHP) systems, batteries, or biomass also come into play.

True, individual residences, or even communities, may not have lodged onto the idea of experimenting with renewable sources of energy. However, business enterprises are happy to approach energy providers for such solutions. Therefore, it has led to large-scale, global investments in renewable energy. According to BNEF from the UN Environment and the Frankfurt School, such investments have touched $273 billion!

Corporate Social Responsibility

Earlier, a business venture came into existence for the sole purpose of making large amounts of money. The focus remains the same, even today. However, a few add-ons have entered the picture too. One of them is corporate social responsibility. For instance, some companies act as champions for women’s rights at the local, national, or global level. Some determine to do everything they can for the poor. Likewise, several organizations are inclining towards protecting a deteriorating environment. One way to do this is by adopting renewable sources of energy.

This has several advantages. For one thing, such a company attracts people who are keen to do something good for the rest of the world. Working in a place using renewable energy as sources of power makes them feel good, and productivity also increases. It is the same with customers. Consumers enjoy visiting establishments that care for the environment. They also feel happy that part of the sales goes towards a Go Green cause.

Job Opportunities

If people can find jobs in the non-renewable energy sector, they can find them in the renewable energy sector too! In fact, people from diverse backgrounds may discover satisfying careers here. Salaries are no constraint either, especially if an applicant displays a keen interest in the energy arena, good knowledge, and certain skills. The renewable energy sector requires professional consultants, project managers, engineers, sales representatives, site managers, auditors, etc.