In the late 19th century, when electricity first arrived in India, we couldn’t have fathomed the remarkable advancements that waited for us in the fields, from space exploration and medical breakthroughs to robots and AI.
However, amidst the rapid progress, we failed to recognize how great a threat it posed to our very existence. Our selfish actions have endangered our future and pushed living organisms to the brink of extinction.
Ultimately, we discovered an alternative energy source poised to become the final nail in the coffin for fossil fuels – renewable energy.
Today, we can no longer afford to remain oblivious to the critical question: What is the future of renewable energy? The world is undergoing a transformation with the adoption of carbon-neutral energy sources, and we need to understand the scope and the potential of renewable energy, particularly in the context of India.
As the air quality, water quality, and overall chances of living in a clean environment continue to diminish, it becomes imminent to explore whether the future of renewable energy shines brighter than the darkest coal of fossil fuels.
Future Trends in Renewable Energy Globally
The global commitment to achieving carbon neutrality has prompted countries worldwide to focus on renewable energy sources. This shift towards renewables is driven by supportive policies, investments in renewable infrastructure, advancements in energy storage, and international collaborations. Here are some key trends and efforts shaping the future of renewable energy.
- Commitment to carbon neutrality and transition to renewables: Countries globally are committed to achieving carbon neutrality by shifting towards renewable energy sources, reducing greenhouse gas emissions and promoting sustainability.
- Expansion of renewable energy capacity: Investments in solar, wind, hydro, geothermal, and bioenergy infrastructure are rapidly increasing, driving the growth of clean energy generation and reducing reliance on fossil fuels.
What Does Global Renewable Energy Growth Suggest ?
The global environmental crisis has ensured that the growth of global renewable energy will be exponential.
According to the International Energy Agency (IEA), renewable electricity generation in the past five years has surpassed the cumulative power generation from renewable sources in the previous two decades. These groundbreaking statistics highlight the significant growth and impact of renewable energy in recent years.
In the quest for carbon neutrality in the coming decades, countries worldwide are making consistent efforts to meet their energy needs through renewable sources like wind, solar, and hydropower.
Global Renewable Energy Growth: UK, China, and Japan
- The UK is actively leveraging wind energy, which accounts for one-fourth of its renewable energy mix. Moreover, they have set a target to increase offshore wind by fivefold in 2030 by installing 3200 new turbines within the same period. It also aims to triple the solar capacity by 2030.
- China is poised to achieve its target of 1200 Gigawatts from renewable energy easily. With solar power generation reaching record highs, the government is mindful of potential industry overheating. To diversify their renewable energy sources, China is now focusing on increasing wind energy by nearly 30% due to the affordable availability of raw materials.
- Following the Fukushima nuclear disaster in 2011, Japan shifted its focus from nuclear energy to renewables like solar and wind power and is planning to build 143 wind turbines on platforms 16 kilometres off the coast of Fukushima.
Timeline and Current Status of Global Carbon Neutrality Commitments
The table represents the timeline and present situation of below countries in their journey towards achieving carbon neutrality and their current share of renewable energy in their total energy mix (as of 2021-2022)
Future of Renewable Energy Across Worlwide
|Country||Year of Achieving Carbon Neutrality||The Share of Renewable Energy in total energy (2021 – 2022)|
What Are the Implications?
The current energy mix reflects the progress countries have made in achieving their energy goals and integrating renewable sources into their energy portfolios. It provides insights into the extent to which countries have transitioned towards cleaner energy sources.
The year of achieving carbon neutrality signifies the timeline for countries to further increase their renewable energy share. For instance, if China currently has a 31.6% renewable energy share, it implies that the remaining 68.4% will be achieved over the course of the next 37 years.
This projection demonstrates a significant transformation towards a sustainable energy landscape. As countries work towards their carbon neutrality targets, there will be a growing demand for renewable energy technologies, leading to thriving industries in the renewable energy sector.
Global Trends in Renewable Energy Investment: What’s the Verdict?
A decade ago, energy investment predominantly focused on investing in oil, gas, and petroleum. Driven by millennials, the investment landscape has shifted towards sustainable investing, including ESG, SRI, and impact investing, appealing to both retail and private equity investors.
Let’s understand these terms briefly.
- ESG (Environmental, Social, and Governance) evaluates companies based on their environmental, social, and governance performance.
- SRI (Socially Responsible Investing) excludes bad companies with negative outcomes for society.
- Impact investing focuses on investments in companies that make a positive difference.
To support their role as the future of renewable energy investment, consider the following facts:
- Despite the compelling evidence, there is a notable shift in mindset towards the future of renewable energy, as highlighted by professionals like Julia Matsudaira, a wealth manager at Goldman Sachs.
In an interview with Cornell University, she emphasizes that “People no longer prioritize returns alone; they seek to align their investments with their values.”
- The global impact investing market has witnessed a compound annual growth rate (CAGR) of 19.5%, which confirms the bright future of renewable energy.
By the impressive leap from $354.41 billion in 2021 to $423.46 billion in 2022.
What Is the Future Of Renewable Energy in India?
The future prediction of renewable energy growth often hinges on current demand and its projected exponential growth. As the fastest-growing energy market, India holds a competitive edge.
India has made remarkable progress in the solar and wind energy sectors, demonstrating its commitment to greener future. Here are some key facts:
India Will Be One of the Leading Solar Manufacturers in the World by 2025
Over the past decade, the future of renewable energy, particularly solar energy, has witnessed an exponential surge in India.
Driven by initiatives like Atma Nirbhar Bharat, which has propelled the country’s transition to green energy.
The establishment of more solar parks and reduced dependency on imported materials for solar PV manufacturing have contributed to India’s increased indigenous solar capacity.
To ensure quality and prevent dumping in the future, the government supports the Approved List of Models and Manufacturers of Solar Photovoltaic Modules (ALMM).
The recent COP 27 targets are set to touch 500 GW capacity by 2030. What’s impressive is solar energy will contribute more than half which is 280-300 GW.
Moreover, The demand for residential rooftop installations has also sprung into action, reaching 1000 MW, thereby indirectly boosting the indigenous solar manufacturing sector.
The positive facts mentioned above present a compelling opportunity for investment in solar energy, promising returns in the future. With Sustvest, you can explore this exciting investment opportunity and enjoy a stable yield of 10-15% annually. Whether you have a modest investment appetite starting from 5000 or a larger sum up to 25 lakhs, Sustvest offers the platform to invest and earn assured returns in the future of renewable energy.
India’s Wind Installation Witnessed a Staggering Surge of 168%
With ambitions to fulfill 28% of its energy demand by 2030, India’s wind sector is poised for further expansion. In the first quarter of 2023 alone, the installed wind capacity reached an impressive 700 MW.
This surge in wind energy underscores the increasing demand for wind turbine manufacturers ensuring a safe future of renewable energy.
While offshore wind projects may not be currently prioritized due to higher costs, India has achieved remarkable progress in onshore wind installations, showcasing a promising trajectory of growth.
What Are Some Prospects for Renewable Energy Sources?
The future of renewable energy holds numerous benefits that extend beyond economic and financial aspects. Here are some key areas where renewable energy brings positive prospects:
- Optimistic Investment Opportunity in India
India’s renewable sector is experiencing a significant upward trajectory, making it a favored destination for foreign investors. In 2022, foreign direct investment in the sector reached $1.5 billion, indicating growing confidence in India’s renewable energy potential.
Developed Countries like Norway and the US have made substantial investments in India’s renewable sector, recognizing the bright future of renewable energy in the country.
- Multifold Employment Generation
Solar and wind energy sectors in India experienced explosive growth in employment opportunities. In 2022 alone, they have employed a workforce of over 164,000. Suggesting an impressive eight fold jump from the previous year.
As India sprints towards 2030 energy goals. The renewable energy sector is expected to create over one million job opportunities, showcasing the substantial impact of increased green financing and investment on employment.
- Independence from Energy Imports
Independence from energy imports and securing the future of renewable energy offer two distinct advantages. Firstly, India can save on import bills, and secondly, the price fluctuations in conventional energy sources will have minimal impact.
- Energy Security
Relying on fossil fuels due to a lack of energy security not only escalates greenhouse gas emissions but also impedes the advancement and adoption of new technologies and innovative solutions in the energy sector, leading to potential disruptions.
In conclusion, after examining India’s impressive advancements and promising prospects in renewable energy, it is evident that the future holds great potential. With the country’s increasing emphasis on clean and sustainable energy sources, there is a growing demand for renewable energy projects.
While you may already be making profits from mutual funds and trading on the stock market, if you’re seeking passive income and a chance to make a positive impact, SustVest brings you the best opportunity.
While many of their rooftop projects are already fully funded and closed for new investment, SustVest continues to bring new projects periodically.now is the time to secure your financial future by investing in renewable energy. Take the leap with SustVest and embrace a brighter tomorrow!
Founder of Sustvest
Hardik completed his B.Tech from BITS Pilani. Keeping the current global scenario, the growth of renewable energy in mind, and people looking for investment opportunities in mind he founded SustVest ( formerly, Solar Grid X ) in 2018. This venture led him to achieve the ‘Emerging Fintech Talent of the Year in MENA region ‘ in October 2019.