As the world’s fossil fuel reserves dwindle at an alarming rate, clean, renewable energy is humanity’s best alternative to meeting future energy needs.
Reports suggest the world will run out of fossil fuels this century – oil is forecasted to last up to 50 years, natural gas up to 53 years and coal up to 114 years. It is even more alarming that aside from the oil wells drying out, energy demand is growing, and there aren’t enough renewables to meet this growing demand.
Let’s look at electricity, for example. After falling by about 1% in 2020 from the impacts of the pandemic, global electricity demand is set to grow by 4% in 2022 as the global economy continues to recover.
Compounding the electricity needs for homes, offices and factories is an ever-growing electric vehicle (EV) fleet that also needs power.
Comparatively, it is a no-brainer that renewables – such as solar, wind, water, geothermal, bioenergy and nuclear – have overwhelming advantages over fossils, especially the compelling case of these energies helping reduce carbon emissions to save the planet.
Apart from the environmental benefits, the clean energy industry is a trillion-dollar market waiting to explode and could present a tremendous economic opportunity for the countries that invest, invent, manufacture and export clean energy technologies.
Countries that take a giant step into the sector stand a chance to gain a share of the global renewable energy market, which was valued at $881.7 billion in 2020 and is projected to reach about $1.98 trillion by 2030, growing at a compound annual growth rate (CAGR) of 8.4% from 2021 to 2030.
However, even with these growth projections, the journey to a full-scale clean energy future seems to be moving at a snail’s pace.
For the next couple of years, fossil fuel will continue to be the primary energy source for the U.S. Fossil fuel consumption amounted to 76.88 quadrillion British thermal units in 2021, up from some 73.04 quadrillion British thermal units in the previous year.
Renewable consumption, on the other hand, slightly increased, reaching 12.16 quadrillion British thermal units that year, not enough to surpass fossils.
Growth Of Renewables
A report by Deloitte on renewable transition revealed that in just 10 years, renewable energy’s share of U.S. electricity generation has doubled from 10% in 2010 to 20% in 2020. Most of that growth has been in solar and wind energy, which rose at a CAGR of 84% and 15%, respectively, over the decade.
The U.S. had more than 100 gigawatts (GW) of solar and 122.5 GW of wind power capacity at the end of 2020. However, the report urged the country to add as much as 70 to 100 GW – each of solar and wind per year – to decarbonize the power sector between 2035 and 2050 – the year the U.S. hopes to achieve net-zero emissions.
Clean Energy Revolution
With the Energy Department aiming for strategic investments in the transition to a cleaner, domestic and more secure energy future, it could open opportunities for players like Clearway Energy Inc. (NYSE: CWEN-A), Sunrun Inc. RUN, First Solar Inc. FSLR and Viking Energy Group Inc. VKIN who are advancing research and development into renewable energy.
Power Solutions And Clean Energy
Simson-Maxwell Ltd., a majority-owned subsidiary of Viking Energy, could be well placed to help the U.S. achieve its renewable energy targets. The company claims it is a leading manufacturer and supplier of power generation products, services and custom energy solutions.
Simson-Maxwell provides commercial and industrial clients with efficient, flexible, environmentally responsible and clean-tech energy systems involving a wide variety of products, including CHP (combined heat and power), tier 4 final diesel and natural gas industrial engines, solar, wind and storage.
The 80-year-old company also designs and assembles a complete line of electrical control equipment, including switchgear, synchronization and paralleling gear and bi-fuel and complete power generation production controls.
Simson Maxwell has seven branches that assist with servicing over 4,000 existing maintenance contracts and meeting the energy and power-solution demands of the company’s customers.
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