The Future Of Renewable Energy: Trends And Predictions For Businesses

The renewable energy sector is evolving rapidly, driven by technological advancements, policy support, and increasing awareness of environmental sustainability. Businesses that stay ahead of these trends can capitalize on new opportunities, reduce operational costs, and enhance their sustainability credentials.

In Kenya, companies like Lake Turkana Wind Power (LTWP) have been leading the way in promoting the use of renewable energy, putting Kenya on the map not only in Africa but globally. Wind power provides a cleaner energy source compared to methods that rely on burning coal or fossil fuels, as it produces no carbon emissions.

Companies like LTWP continue to supply renewable wind energy to Kenya’s national grid showing that it is possible to remain environmentally conscious while operating sustainably.

What are the current trends in renewable energy?

Rapid Cost Decline: The cost of renewable energy technologies, particularly solar and wind, has decreased significantly over the past decade. This trend is expected to continue, making renewable energy more competitive against traditional fossil fuels. According to the International Renewable Energy Agency (IRENA), the cost of electricity from solar photovoltaics (PV) fell by 82% between 2010 and 2019, while onshore wind costs dropped by 40%.

Technological Innovations: Advancements in technology are driving efficiency improvements and cost reductions. Innovations in battery storage, smart grids, and energy management systems enable effective integration of renewable energy into the grid, addressing the intermittency issue and enhancing reliability.

Corporate Commitments: An increasing number of businesses are committing to renewable energy targets. Companies like Google, Apple, and Amazon have pledged to power their operations entirely with renewable energy. This trend is driven by both environmental responsibility and the economic benefits of stable and often lower energy costs.

Government Policies and Incentives: Governments worldwide are implementing policies and incentives to support renewable energy adoption. Examples include tax credits, subsidies, and renewable portfolio standards. The European Union’s Green Deal and the U.S. rejoining the Paris Agreement highlight strong policy support for renewable energy.

Decentralized Energy Systems: There is a shift towards decentralized energy systems, with businesses and households increasingly generating their electricity through rooftop solar panels and small-scale wind turbines. This trend reduces dependence on centralized power plants and enhances energy security.

What are the future predictions for renewable energy?

Increased Investment in Clean Energy: Investment in renewable energy is expected to grow substantially. The International Energy Agency (IEA) projects that annual clean energy investments will need to more than triple by 2030 to meet global climate goals. Businesses should anticipate increased funding opportunities and incentives for clean energy projects.

Advancements in Energy Storage: Energy storage technologies, such as lithium-ion batteries, are crucial for addressing the intermittency of renewable energy sources. Future developments in storage technology will enhance grid stability and enable higher penetration of renewables. Businesses should explore investments in energy storage to complement their renewable energy initiatives.

Hydrogen Economy: Green hydrogen, produced using renewable energy, is emerging as a key player in the future energy landscape. It has the potential to decarbonize sectors like heavy industry and transportation that are hard to electrify. Businesses in these sectors should monitor developments in hydrogen technology and consider early adoption to gain a competitive edge.

Digitalization and Smart Energy Management: The integration of digital technologies such as artificial intelligence, the Internet of Things (IoT), and blockchain will optimize energy use and enhance efficiency. Smart grids and energy management systems will enable businesses to better control their energy consumption and reduce costs.

Circular Economy in Renewable Energy: As renewable energy technologies mature, the focus on sustainability will extend to their lifecycle. This includes the recycling and repurposing of solar panels, wind turbine blades, and batteries. Businesses should plan for the entire lifecycle of their renewable energy assets to minimize environmental impact.

Corporate Power Purchase Agreements (PPAs): The use of PPAs, where businesses buy renewable energy directly from producers, will continue to grow. This model provides price stability and can be a hedge against volatile energy markets. Businesses should consider PPAs as a strategic option for securing long-term renewable energy supply.

What are some of the strategies for Businesses?

To stay ahead of the curve, businesses should:

Invest in Renewable Energy Projects: Direct investments in solar, wind, or other renewable projects can reduce energy costs and provide a hedge against energy price volatility.

Adopt Energy Efficiency Measures: Coupling renewable energy adoption with energy efficiency improvements can maximize benefits and reduce overall consumption.

Leverage Government Incentives: Take advantage of available government incentives, tax credits, and grants to reduce the upfront costs of renewable energy projects.

Engage in Sustainable Supply Chain Practices: Collaborate with suppliers and partners to integrate renewable energy and sustainability practices throughout the supply chain.

Develop a Long-Term Energy Strategy: Create a comprehensive energy strategy that includes renewable energy targets, energy efficiency goals, and plans for emerging technologies like storage and hydrogen.

The use of renewable is here to stay. There is no going back. Businesses will have to either shape in or shape out.

Read Also: Lake Turkana Wind Power Has Appointed A New CEO