If you’re interested in the investment opportunities that renewable energy can offer, these facts will tell you more about this rewarding, rapidly growing sector.
A diverse range of projects is needed
From wind energy in England to wave and tidal in Scotland and solar panels in Northern Ireland, diversity of green energy projects is the key to investor success. This also means having diversity of models, from community micro-projects to large commercial developments. Only then can the economy benefit from a true energy transition away from damaging fossil fuels.
Innovation may well come from developing countries
Many experts believe that innovation flow may well reverse and see developing markets taking the lead in energy innovation. One example of this is the use of mobile technology, with more smartphones owned in India than toothbrushes! The real hub of innovative practices looks likely to exit from the developed world as a result. Early examples include pay-as-you-go solar in Africa, which can be bought each day using mobile cash, effectively creating a micro-utility service.
The public supports green energy
Endless polls show that public opinion is weighted heavily in favour of renewable energy. The challenge now is to unlock the will and interest of large institutional investors such as pension schemes and trusts. An easy route to public involvement is crowdfunding. This offers good returns and vetted projects, whether you want to invest in a new hydro scheme in a rural village or see a solar panel provider in Northern Ireland develop a new technology.
Digital power will grow
Greater broadband availability and the Internet of Things will help facilitate smart energy consumption and switches to green tariffs. Smart technologies will also automate appliances, allowing consumers to pay less for their energy through efficient appliance use. Social media will also play a key role in building awareness and acceptance of new technologies.
There is still plenty of scope for progress
Affordability and innovation in the field of green energy have helped the market to grow significantly, and renewables are increasingly attractive for investors. However, there is still plenty more that needs to happen to allow a true energy transition. Investors should continue to be realistic in their opportunity assessment, but they should also remain open-minded to identify and tap into rewarding opportunities that emerge.