Renewing Ourselves
- Max Gilbert
- Dec 16, 2020
- 2 min read
As 2020 comes to a close, our country, and world face an uncertain future. One of the major challenges we will face in the coming years is transitioning to more environmentally sustainable sources of energy. The renewable energy market is projected to expand by nearly 50% from 2019 to 2024, paving the way towards a major growth opportunity in the global marketplace. This surge is being led mainly by the growth of solar energy, yet there are other extremely beneficial sectors within renewables as well. Renewable energy currently accounts for up to roughly 25% of the world’s electricity, and is expected to expand considerably in the near future. The United States has been working closely on increasing solar-powered installations, projecting nearly four million by 2023, double the amount installed today. Additionally, solar energy solutions are becoming much cheaper as most of coal-based powering starts to become nearly unprofitable, solar power will have to account for nearly 60% of the world’s energy consumption within the next few decades. With solar energy being the most accessible source of renewable energy, it will have to grow exponentially to viably replace our current consumption of coal-based electricity. Along with solar energy, many countries are beginning to experiment with the effectiveness of wind-based energy, with Japan, the United States, and China at the forefront of onshore wind-powered installations. However, the world’s primary source of renewable energy in the world currently is hydroelectric power. Brazil, China, and India currently dominate this sector with 2024 growth expectations sitting around 9%, primarily due to hydroelectric megaprojects in China. Looking to the future, hydroelectric power is set to decline due to the dramatic increase in cost, as well as environmental issues. Given this foundation, the current renewables in the market project positive growth in coming years, especially under a Biden Administration. One of the most polarizing stocks in recent memory is in fact a renewable, Tesla. No matter how you feel about the share price or volatility of the seemingly unstoppable auto-maker, Tesla has shattered barriers previously thought to be unbreakable for renewable energy not only in the EV sector, but the broader markets as well. If a renewable company like Tesla can become the highest value car manufacturer with a $570 billion market cap, why can’t other renewables follow suit in the path to glory? While not every renewable energy company has a CEO who seems to be the real life incarnation of Tony Stark (Iron Man from the Avengers for those of you unfamiliar) to fuel their unprecedented growth, the eventual rise of renewable energy within the global marketplace is inevitable. It is inevitable because as humans, we want to live a cleaner, more sustainable world. In the upcoming years, especially under the Biden administration, I expect renewable energy to be an extreme focal point of not only the United States, but the entire world. Whether it’s solar panels being installed onto the roofs of houses in your neighborhood, or that one out of place wind turbine you always drive past on your way to work, innovation within the industry is undeniably going to bring down the associated costs, as the goal of a cleaner more promising future becomes ascertainable.
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