What are the best examples of renewable energy to invest in?
The discussion about the best examples of renewable energy to invest in and the general renewable energy, as a potential substitute for energy derived from fossil fuels and non-renewable energy sources, is growing.
In this article, we delve into the topic: we understand the meaning of renewable energy, how they function and why you should invest in them.
What Renewable Energy Means
Renewable energy sources are energy sources whose availability regenerates naturally on a timescale comparable to human life.
This regeneration is possible by physical and chemical processes that occur spontaneously in nature.
In contrast to non-renewable sources and fossil fuels that require millions of years and specific environmental conditions to form, think, for example, of natural gas or oil, renewable sources are continuously produced in nature, and their availability is unlimited.
What Are the Sources of Renewable Energy?
There are six primary sources of renewable energy, and specifically, the following energy sources fall under this classification:
- Hydropower
- Geothermal Energy
- Wind Energy
- Solar Energy
- Biomass Energy
- Marine Energy
Let’s delve into their main characteristics in detail.
Hydropower
Hydropower is the most widely utilized renewable energy source today. There are three different types of hydropower plants: run-of-river, reservoir, and pumped-storage.
However, they all operate on the same principle: harnessing the potential energy of falling water from a higher to a lower level to drive turbines, thus producing mechanical energy that is later converted into electrical energy.
Depending on the type of plant and the terrain, this energy is generated by either utilizing the natural flow of water or through the construction of dams and reservoirs to control the water mass and its utilization.
Geothermal Energy
Geothermal energy, as the name suggests, is derived from the natural heat beneath the Earth’s surface.
As one goes deeper into the Earth, the temperature increases by an average of 3°C for every 100 meters, with specific areas, like volcanic regions, experiencing much greater temperature rises.
A geothermal plant harnesses this heat to generate steam, which, in turn, drives a turbine to produce mechanical energy, ultimately converted into electricity through a generator or alternator.
Wind Energy
The energy from the wind is generated by capturing the force of the wind with wind turbine blades.
Wind turbines are typically grouped together in parks, which can be installed on land (onshore parks) or in the sea, both near coastal regions and in open waters (offshore parks).
The operation is quite simple: a blade, situated atop a tall structure, rotates due to the force of the wind, turning a generator that converts mechanical energy into electrical energy.
Offshore parks are capable of generating more energy than their onshore counterparts but involve higher costs for both construction and subsequent maintenance.
Solar Energy
The Sun is undoubtedly the cleanest and most readily available energy source we can utilize.
Solar energy is an essentially unlimited source that uniformly affects every area of the planet to some degree.
Solar energy is harnessed through specific devices called photovoltaic panels, which transform solar radiation into electrical energy by utilizing semiconductor materials within them.
Besides photovoltaics, solar energy can also be utilized through thermal collectors, which convert solar energy into heat for various applications, such as water heating.
The main limitation of this renewable source is its intermittency due to the alternation between day and night and the differing latitudes.
Energy storage systems are an effective solution to mitigate the effects of this issue by storing excess energy generated during peak sunlight hours for use during periods when the Sun is not available.
Biomass Energy
Biomass refers to organic waste materials, both plant and animal.
These waste materials are used to generate energy, both electric and thermal, through a combustion process.
Within special combustion chambers, biomass is burned, and the heat generated from this process is used to turn water into steam.
The steam, in turn, drives a turbine to produce mechanical energy.
The turbine is then connected to a generator that converts mechanical energy into electrical energy.
The production of energy from organic waste materials is a great alternative to fossil fuels and allows for the utilization or disposal of organic waste—be it domestic, industrial, or agricultural—for clean energy production.
Marine Energy
Marine energy, as the name implies, is generated by harnessing the power of the oceans.
There are five different types of marine energy:
- Marine currents: underwater currents rotating blades, which, in turn, drive turbines connected to alternators for electricity generation—a process similar to that of wind turbines.
- Wave motion: energy generated from the movement of ocean waves, though it is still underutilized due to costs and environmental impact.
- Tides: high tides are used to channel water that, as it flows, activates turbines capable of converting kinetic energy into electricity.
- Ocean thermal energy: it leverages the temperature difference between surface and deep waters to produce steam and drive turbines. This source is rarely used due to the substantial costs of building plants and the limited availability of suitable locations, primarily found in tropical zones.
- Salinity gradient: utilizes the conversion of saltwater to freshwater through a semipermeable membrane via osmotic pressure to activate turbines and produce energy.
Why you should invest in renewable energy?
Investing in renewable energy offers a range of compelling reasons, including economic, environmental and social benefits.
Here are some key reasons why individuals and organizations choose to invest in renewable energy:
- Environmental sustainability: renewable energy sources, such as wind, solar, hydro and geothermal, are environmentally friendly and produce minimal or no greenhouse gas emissions. By investing in renewables, you contribute to the reduction of air pollution, combat climate change, and help protect the environment.
- Energy independence: investing in renewable energy can lead to greater energy independence. It reduces reliance on fossil fuels and foreign energy sources, making countries and regions less vulnerable to energy supply disruptions and price fluctuations.
- Long-term cost savings: renewable energy technologies have seen significant cost reductions over the years. Once the initial investment is recouped, renewable energy systems often provide lower ongoing operational and maintenance costs compared to fossil fuel-based energy sources.
- Government incentives: governments around the world offer various incentives and subsidies to encourage investments in renewable energy. These incentives can include tax credits, rebates and favorable regulatory policies, making renewable energy investments more attractive and financially viable.
- Job creation: the renewable energy industry has been a significant driver of job creation. Investments in renewable energy projects support local economies by creating jobs in construction, manufacturing, installation, and maintenance of renewable energy systems.
- Technological advancements: continued investments in renewable energy drive innovation and technological advancements. This, in turn, can lead to the development of more efficient and cost-effective renewable energy solutions, further enhancing the industry’s attractiveness for investors.
- Global trends: the world is moving toward a more sustainable and low-carbon future. Investing in renewable energy aligns with these global trends and positions investors to benefit from the shift away from fossil fuels.
Investing in renewable energy is not only a financially sound decision, but also a responsible choice that contributes to a cleaner, more sustainable, and resilient energy future.
As the world continues to prioritize environmental conservation and combat climate change, renewable energy investments are likely to play a pivotal role in the global energy landscape.
