There’s only a finite amount of energy resources such as fossil fuel, oil, and natural gas which is getting depleted each year. This has compelled the world leaders to consider alternative sources and utilize renewable energy sources that are naturally replenished. Sunlight, rain, wind, tides, waves, and geothermal heat are some of the major sources of renewable energy. Renewable energy is slowly gaining an edge over the non-renewable energy’s contribution to the global energy consumption. Although a significant amount of investment is required to setup energy production from renewable sources, the cost pays for itself in the longer run.
#1 – Fortune 500 Companies Demand Sustainability Measures
A majority of Fortune 500 companies are setting up targets to increase renewable energy dependence. Most of the companies within this space have already pledged to go 100 percent renewable as a part of the RE100 campaign. For instance, Apple launched a 2-gigawatt clean energy initiative in China to meet its 100 percent renewable energy promise. Similarly, Foxconn has also started investing in solar energy.
#2 – Location Specific Pricing
The availability of renewable energy is scattered across different parts of the world. For instance, some regions may experience strong winds and show great potential for wind energy, and some may potential for solar energy. As a result, investors are exploring variable pricing strategies to produce and sell energy in high-cost areas.
#3 – Development of Battery Technology
Although companies invest heavily in renewable energy, consumers’ demand will fluctuate as per seasonality. The companies will then have to store the excess energy using a battery for future use. The current battery technology has not progressed much, especially when compared to the developments in other technologies. As a result, companies have started looking for new battery technologies to increase the energy efficiency. Hydrogen storage, molten salt, and other forms of batteries are some of the alternatives receiving significant investment in recent times.
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