Renewable energy could be a promising investment opportunityOctober 2, 2013
Analysts shed light on renewable energy opportunities
Analysts from Citigroup have released a report highlighting the promising opportunities that exist within the wind and solar energy sectors. The report also sheds light on the issue of cost, which has been a controversial subject when it comes to renewable energy for several years. Renewable energy is notoriously expensive, largely due to the use of new technologies and the need to update infrastructure to accommodate such technologies. Citigroup, however, suggests that global renewable energy capacity could be increased without an additional cost to energy grids.
Clean power could be a $5.7 trillion opportunity
According to the report, approximately 900 gigawatts of solar energy and 1,500 gigawatts of wind energy can be installed throughout the world without additional cost to energy grids. Analysts suggest that this represents a $5.7 trillion investment opportunity. Existing infrastructure in many developed countries may be enough to handle the introduction of new renewable energy sources. While energy grids in these countries may not be designed for clean power, they could suffice in supporting renewable energy without introducing any excessive costs to a country.
Countries begin showing more favor for renewable energy
Renewable energy is beginning to pick up momentum around the world, primarily for economic reasons. In the past, clean energy was often touted for its environmental benefits, but environmentalism can often be a hyper-politicized and controversial issue. Economics, while also somewhat controversial in its own right, is a more compelling argument for the benefits of renewable energy. Many countries around the world have been looking for ways to mitigate the costs associated with fossil-fuels, and solar and wind energy have become their solution.
Developing countries may be unable to avoid additional costs
Citigroup analysts note that their estimates are conservative and based on the capabilities of energy grids around the world. While developed countries may be able to adopt new renewable energy systems without additional cost to the energy grid, developing countries may not be able to do so. This is because the infrastructure in many developing countries is incomplete or otherwise inefficient. Such infrastructure is barely capable of handling conventional energy demands, much less the demands associated with clean energy.