As traditional energy markets deal with new challenges and expected changes, the renewable energy sector has shown incredible growth in recent years. For some industries, this can be a great step ahead, while for others, things can be different.
The renewable energy sector stands out because while other markets are relying on resources that are limited and already threatened, this industry is focused on self-replenishing resources. The term ‘renewable’ refers to three major sectors – namely solar, wind and waves, besides biofuels and biomass. So, what’s the status of renewable energy sector as of now. HTL Group, which specializes in controlled bolting, takes a look at the basics.
Performance of renewables
The renewable energy industry has shown remarkable growth in recent years. In 2016, about 138 gigawatts (GW) of power-generating capacity was created, which is a staggering increase of 8% as of 2015, when around 128 GW was added. Thanks to the current capacity, renewable energy now occupies a share of 55% in the industry, by reducing the performance of other known sectors. In comparison, power-generating capacity of coal was around 54 GW and nuclear at just 10 GW.
Expectedly, there were additional environmental benefits that cannot be denied. According to UNEP, the growth of renewable energy industry helped in reducing 1.7 billion tonnes of CO2 estimated for 2016. If you check the figures for 2016, around 39.9 billion-tonnes of CO2 was released, and without the renewables, the figure would have been considerably higher at about 4%.
Drop in investment
While growth of the renewable energy has been possible, investment did suffer in 2016. Compared to the figures of 2015, there was a dip of around 23%, bringing down the investment to $242 billion. Much of it has been credited to falling cost of technology. It is also important to note that the interest of each country has been different. Except for Europe, which had an increased investment of 3% for 2016, rest didn’t make for a good figure. Going by the countries, Sweden, Denmark, Norway, and Belgium made considerable headway in the sector, while UK investment reduced by 1% for the same time. China reduced its investment considerably by a third, coming down to $37 billion for 2016, compared to $78 billion for 2015.
Take into the future
With cost of technology getting down and considerable societal shifts, things are bound to get better for the segment, considering 2040 ban. One only expects growth of renewables in coming years, where it will have a direct impact on traditional sectors.