Six reasons why sustainable energy is a hot industry in 2022? According to IRENA’s annual review of renewable energy and jobs, global renewable energy employment reached a high of 12 million in 2020. They also found that more jobs will be created by the energy transition than lost. In fact, the renewable energy sector is expected to employ 43 million by 2050. To encourage this shift, and simultaneously ensure that emissions reductions targets are achieved, money is being injected into the industry. In fact, investment in clean energy and energy efficiency creates up to three jobs for each job lost in the fossil fuel sector – a favorable ratio for countries still grappling with job losses from the Covid-19 pandemic.
The renewable energy drive came despite rising costs for key materials needed to make new solar panels and wind turbines, the agency said, highlighting how a new economy was emerging to satisfy global demand. By the end of the year, additions of new renewable power capacity are expected to rise to 290 gigawatts, surpassing the previous record, set last year, of 280 gigawatts. The new report suggests that over the next five years renewables will be at the forefront of global energy projects, accounting for almost 95 per cent of the increase in global power capacity, which will rise more than 60 per cent from 2020 levels to over 4,800GW by 2026. The IEA said on this trajectory, in five years’ time renewable energy would account for the same total global power capacity of fossil fuels and nuclear combined.
Mordechai Gal, operations director at AccessHeat Inc, said : This year’s record renewable electricity additions of 290 gigawatts is yet another sign that a new global energy economy is emerging. The high commodity and energy prices we are seeing today pose new challenges for the renewable industry, but elevated fossil fuel prices also make renewables even more competitive. Solar energy is the energy that comes from the sun can be harvested by various technologies including solar panels, either on individual homes or in large solar farms. Solar energy now accounts for about 4% of the UK’s electricity.
To encourage a green recovery from the pandemic, the European Green Deal Investment Plan (EGDIP) aims to mobilize at least €1 trillion in sustainable investments over the next decade to simultaneously scale up clean energy employment with millions of jobs, encourage economic growth and reduce greenhouse gas emissions. A win for the economy, workers and the planet. The coronavirus pandemic also encouraged jobseekers to redirect their careers to pursue meaningful jobs with long-term security. As an increasingly important component of the global economy, renewable energy is no doubt here to stay. It also allows people who have become more acutely aware of the impact of their daily choices (such as the emissions saved by reducing travel) to see tangible benefits from their day-to-day work. Nothing makes the futility of a job more apparent than eight hours straight of unnecessary zoom calls from your living room.
We are seeing a wide range of transactions in the renewable energy mergers and acquisitions market, prompted by a broad spectrum of drivers. Although recent changes in the laws and regulations governing filings with the Committee on Foreign Investment in the United States (CFIUS) have increased the complexity and timelines for some cross-border renewable energy transactions, non-US investors continue to show keen interest in US renewable assets. The number and variety of prospective purchasers has heightened competition for good renewable energy projects, with the result that buyers are increasingly willing to acquire projects during development and construction, and thereby to prioritise the project’s prospects over the risks presented by the development process. Renewable energy M&A transactions are increasingly involving the acquisition of portfolios of projects rather than individual projects, and the acquisition of renewable energy companies as ongoing businesses, so that the buyer can obtain the benefit of the development and operating personnel of the target.
Although some industry observers projected that M&A activity in the renewable energy sector would taper off in 2020, the market has remained strong so far. Tax benefits are still important drivers in the purchase and sale of renewable energy project portfolios, but prospective purchasers are increasingly finding value in other attributes of the renewable energy industry. Areas such as the acquisition of start-up companies developing emerging technologies for use in, or in connection with, renewable energy projects, acquisitions involving regional consolidation of energy services, and acquisitions of renewable energy services providers are increasingly attractive. As new technologies become more cost effective and consumers continue to expect and demand more in the way of sustainability initiatives, strategic and financial buyers alike are still finding renewable energy projects and services to be attractive investments.
With concerns about impending climate change on the horizon, coupled with the rapid depletion of fossil fuel resources, the renewable energy sector is well-positioned for growth in the coming years. In many cases, this industry segment has been identified as a crucial element to our planet’s sustainability as we know it. Because of this urgent need, many renewable energy ventures are supported by the government and are given additional financial backing to expand this industry. AccessHeat will invest in and guide you to the most favorable outcome possible with your renewable energy business consolidation.