In recent years, there has been a significant increase in the development of renewable energy projects worldwide. This trend is expected to continue in the coming years due to various factors, including increasing global energy demand, rising concerns about climate change, and the falling costs of renewable technologies. In this blog, we will explore why there is going to be more energy projects in the coming years, backed by real research and studies.
- Increasing Global Energy Demand
According to the International Energy Agency (IEA), global energy demand is expected to grow by 4.6% in 2021 and by 3.1% in 2022, due to the rebound of economic activity after the COVID-19 pandemic. This increase in energy demand is primarily driven by emerging economies such as China and India, where population growth and rising living standards are leading to higher energy consumption. As a result, there is an urgent need to develop new sources of energy to meet the growing demand.
- Rising Concerns about Climate Change
Climate change is one of the most significant challenges facing humanity today. The United Nations (UN) has called for urgent action to reduce greenhouse gas emissions and limit global warming to below 2°C. To achieve this goal, countries around the world are investing in renewable energy projects to reduce their reliance on fossil fuels and decrease their carbon footprint. According to the Renewable Energy Policy Network for the 21st Century (REN21), renewable energy accounted for 72% of all new power capacity added globally in 2019.
- Falling Costs of Renewable Technologies
The cost of renewable energy technologies such as solar and wind power has been steadily declining in recent years. According to the International Renewable Energy Agency (IRENA), the levelized cost of electricity (LCOE) from solar photovoltaic (PV) and onshore wind power has fallen by 82% and 39%, respectively, since 2010. This cost reduction is mainly due to technological advances, economies of scale, and improved financing conditions. As renewable energy becomes more cost-competitive with fossil fuels, it is becoming increasingly attractive to investors and policymakers.
Research and Studies
Several studies support the idea that there will be more energy projects in the coming years. For example, a report by the International Energy Agency (IEA) states that renewable energy will account for 90% of the global power capacity additions in 2021 and 2022. The report also predicts that solar PV and wind power will contribute two-thirds of the renewable capacity additions.
Another study by the United Nations Environment Programme (UNEP) and the Frankfurt School-UNEP Collaborating Centre for Climate & Sustainable Energy Finance found that global investment in renewable energy reached $303.5 billion in 2020, up 2% from the previous year. The report also states that renewable energy investment has been higher than investment in fossil fuels for the past seven years.
Conclusion
In conclusion, there are several reasons why there is going to be more energy projects in the coming years. The increasing global energy demand, rising concerns about climate change, and falling costs of renewable technologies are all driving the development of renewable energy projects. Real research and studies support this trend, with the IEA and UNEP reporting significant growth in renewable energy investment and capacity additions. As we move towards a more sustainable future, renewable energy will continue to play a crucial role in meeting our energy needs while reducing our carbon footprint.
Technical Hands Group looks forward to supplying to the growing demands of this industry!
visit www.technicalhands.com for more info