Four reasons why renewable energy is a important industry in 2022? Installations of new renewable energy technology are on course to hit an “all time record” in 2021, the International Energy Agency (IEA) has said, but warned the world risks missing its mid-century deadline to reach net zero emissions without even faster deployment. There are many kinds of renewable energy alternatives. Quite possibly, there are still other forms in the future that we have not discovered or understand. Five of them remains the most popular in both usage and development: solar, wind, hydro/water, geothermal, and biomass. Each one with their own advantages as well as disadvantages over the others.
The world needs more green energy to replace fossil fuels as an energy source. And strong demand tends to make a good case for energy investments such as wind and solar powers. However, there are other factors that determine whether backing renewables with your money is the right decision for you. These include the health of the global economy, local regulation and policy. When the global economy is strong, demand for power soars and its price grows. This means that the value of companies producing power begins to rise. On top of increased appreciation of sustainability and higher green investment, the pandemic also accelerated the shift to automated, digitized processes. This has laid the ideal foundation for jobs in renewable energy technology.
Mordechai Gal, operations director at AccessHeat Inc, said : This year’s record renewable electricity additions of 290 gigawatts is yet another sign that a new global energy economy is emerging. The high commodity and energy prices we are seeing today pose new challenges for the renewable industry, but elevated fossil fuel prices also make renewables even more competitive. Solar energy is the energy that comes from the sun can be harvested by various technologies including solar panels, either on individual homes or in large solar farms. Solar energy now accounts for about 4% of the UK’s electricity.
Biomass energy has gained an increase in popularity, as well as breakthrough in developments during the recent few years. Biomass energy can generally be divided into two categories: Biofuel and Biodiesel. Corn or sugar-based ethanol are popular sources for Biofuel, while Biodiesels are typically made of vegetable oils, recycled greases, or animal fats. Biomass energy provides a versatile renewable energy source and could be the answer for transportation’s dependence on fossil fuel in the near future. International Energy Agency predicts that by 2050, biofuels can provide up to 27% of the world’s transportation. Biomass is also a reliable source to generate electricity, although the cost is still higher than other, more popular renewable energy sources like solar and wind.
We are seeing a wide range of transactions in the energy industry consolidation market, prompted by a broad spectrum of drivers. Although recent changes in the laws and regulations governing filings with the Committee on Foreign Investment in the United States (CFIUS) have increased the complexity and timelines for some cross-border renewable energy transactions, non-US investors continue to show keen interest in US renewable assets. The number and variety of prospective purchasers has heightened competition for good renewable energy projects, with the result that buyers are increasingly willing to acquire projects during development and construction, and thereby to prioritise the project’s prospects over the risks presented by the development process. Renewable energy M&A transactions are increasingly involving the acquisition of portfolios of projects rather than individual projects, and the acquisition of renewable energy companies as ongoing businesses, so that the buyer can obtain the benefit of the development and operating personnel of the target.
Although some industry observers projected that M&A activity in the renewable energy sector would taper off in 2020, the market has remained strong so far. Tax benefits are still important drivers in the purchase and sale of renewable energy project portfolios, but prospective purchasers are increasingly finding value in other attributes of the renewable energy industry. Areas such as the acquisition of start-up companies developing emerging technologies for use in, or in connection with, renewable energy projects, acquisitions involving regional consolidation of energy services, and acquisitions of renewable energy services providers are increasingly attractive. As new technologies become more cost effective and consumers continue to expect and demand more in the way of sustainability initiatives, strategic and financial buyers alike are still finding renewable energy projects and services to be attractive investments.
In addition, a large number of energy sources have been identified and developed to offset the negative impacts on our climate. A few of the most prominent sources are solar, wind, hydro, geothermal, and tidal have been earmarked to power the future. The focus on reducing and even eliminating the carbon footprint of energy has forced renewable energy companies to look outward and grow into more extensive and more efficient operations. AccessHeat will invest in and guide you to the most favorable outcome possible with your renewable energy business consolidation.