The world invested $ 282.2 billion in new capacity from renewable energy sources in 2019. The numbers point to a change for the energy sector!
A survey conducted in 2020 by British Business Energy showed that, among the 29 countries analyzed, Brazil is in the second place in the ranking of investments in renewable energy. These data confirm that the preference for this type of energy demand has been growing in recent years.
The increase in carbon dioxide emissions worldwide has caused countries to come together and create agreements, like the one in Paris, to decrease the rates of gases released into the atmosphere and, consequently, reduce global warming and other negative impacts that this situation cause.
Brazil’s commitment is to reduce its emissions by 36% to 39% in 2020 and one of the ways to make this possible is through investments in renewable energy. After all, these sources have less impact on the environment when compared to fossil fuel arrays.
4 reasons to invest in renewable energy
Renewable energy is energy that comes from natural resources and is naturally replenished, such as sun, wind, rain, tides and geothermal energy. But be aware that not every natural resource is renewable. Oil, coal and uranium are taken from nature, but they are not renewable resources.
Energy consumption continues to grow worldwide. To keep up with this development, countries need to expand their production to keep the whole society supplied. However, in addition to being a polluting source, fossil fuel is a finite matrix, that is, in the long run it will not be enough to supply the whole world. In this way, countries and companies are already beginning to make the transition by choosing renewable sources.
Check out some reasons to invest in renewable energy.
1. Reduction of investment costs
As renewable sources are increasingly attracting interest, the investment costs of technologies are falling. If only large companies were able to invest in this source before, small companies are now able to implement these projects. The International Energy Agency (IEA) estimates that the average investment cost of a wind farm, for example, fell by 30% between 2010 and 2015 and solar farms by more than 60%. The forecast is that costs will continue to fall in the coming years.
2. Facilitated Financing
In addition to the falling investment costs, financing is made easier for these sources. The National Bank for Economic and Sustainable Development (BNDES), for example, has financing facilities for solar energy projects. It is possible to finance up to 80% of the total investment value, reducing costs and making the model much more accessible.
3. Monitoring trends
Investing in renewable energy means opting for sustainability and betting on trends. Large companies like Apple, Amazon and Google already invest in sustainable energy, mainly solar in their companies. That is, if large organizations are betting on these models, it is because they bring real benefits not only to society but also to the economy of organizations.
4. High return on investment
According to the report of the International Renewable Energy Agency, clean energy generates an economic return of 3 to 8 times greater than its initial investment. This means that even if the initial investment seems very high, with an expanding demand, there is a guarantee of a good return on investment.
In addition to the direct return that occurs when investing in renewable energy, there are also the indirect benefits of cost reduction in relation to the problems caused by climate change, which impact the entire society.
Therefore, when analyzing the world and country scenario, we can see that there is a strong trend of changes and adaptability for energy maintenance in the coming years.
With the instability of fossil fuel prices, their finitude and their negative impacts on the environment, renewable energies, such as solar, wind and biomass energy stand out and gain space. Did you like our content on renewable energy? Still have any questions on this topic? So, leave your comment in the post!