Several reports have shown that the global capacity of clean energy has increased over the years. In BMI’s recent Global Renewables Outlook, clean energy production is predicted to double between 2016 and 2026. Now, it’s starting to become a major force in the energy market for big companies as it made up more than half of the world’s new power generation capacity.
With a goal to achieve the Paris Agreement goals of keeping global warming below 2 degree Celsius, global insurers will more likely help achieve this goal by investing more on renewable energy instead of supporting coal-fired power plants. While nothing can be certain on today’s policies on clean energy, the future is still bright given the recent developments of its technology. May it bring progress on our slow but steady shift to clean energy.
While the benefits of clean energy make shifting more inviting, several barriers have made the shift difficult in the energy sector. Setting politics aside, organizations and companies often consider these barriers before pursuing their shift to renewables.
Renewable energy may have cheaper operating costs but it requires a high capital investment for it to be efficient and competitive in the market. From the installations of solar and wind farms to high construction costs, converting to renewable energy may not be possible for institutions and companies that have limited budget. However, recent developments in its technology have made capital costs cheaper compared to its cost in the previous years (or decades).
Another obstacle renewable energy shift faces is its market entry. With key players such as coal, nuclear and natural gas holding majority of the energy market power, the new technology offered in using renewable energy may be considered risky for most businesses.
Over the years, several records have shown the progress and developments in the renewable energy sector. This good news threatens several renewable energy opponents, which often results to spreading reliability misconceptions about renewable energy resources. One argument presented by these opponents is its reliability to provide enough power for nations. Contrary to these misconceptions, resources such as solar and wind are proven to be highly reliable, safer and more accessible compared to coal, gas and nuclear.
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