By Dr Azad Khan Syed
KARACHI: In a remarkable turning point, IEA (International
Energy Agency) reported solar energy is set to attract more capital investment
than traditional oil for the first time ever. This was stated in an official
press release issued by it on Friday. The statement came after the
International Finance Corporation (IFC), one of six members of the G20 Group
which includes most major economies of the world, made its decision to support
the development and production of clean and renewable energy.
The news comes at a time when the international community
has started to take notice of the need to accelerate sustainable energy
transition. At the same time, according to the UN’s Intergovernmental Panel on
Climate Change (IPCC), climate change will cause ‘huge economic losses, such as
food prices rising by up to 90% and millions of people displaced.’
The recent efforts of countries like Saudi Arabia, India and
China have been focused on promoting green manufacturing, building new
coal-fired power plants, among other things. But this has not deterred
investors from shifting their focus toward alternative sources of energy
sources.
For example, China’s largest steel manufacturer Sinopec
announced last week that it would start using natural gas to produce
electricity. While some observers suggest this is merely a temporary measure,
others are concerned that this could be a sign that the Chinese economy is
losing out on the opportunities offered by solar energy.
Sectors That Are Using And Will Use Solar
The Global Renewable Investment Monitor report states that
renewables are now being used in over 50 sectors. These include agriculture,
construction, transport, and even healthcare as an emerging trend. Of note,
“the total global investment in renewables hit $31.4 billion in 2021, a rise of
29 percent year-on-year, with Asia Pacific contributing 41 percent of growth.”
One of these sectors is solar, which has seen significant
growth over the past few years. According to IEA, solar will account for 16-19
percent of the total installed solar capacity by 2030. Additionally, in
addition to providing electricity, solar can also generate heat, as well as
reduce greenhouse gas emissions. This makes it a valuable source of energy.
Additionally, there are various reasons why businesses are
increasing investments in solar power. One reason is cost savings, which a
company may incur if they avoid buying traditional electricity. A second reason
is environmental benefits, such as lower carbon footprints, as well as the
possibility of tax credits or subsidies. Finally, and perhaps the most
important reason, is the potential for cost savings and improved efficiency, as
companies can use them for operations that require heavy machinery or other
equipment that requires large amounts of energy.
These are just a few examples of what can be achieved
through solar energy. However, there are still challenges to overcome before
solar can become mainstream. Among them is high upfront costs and government
regulations. For instanceinitely, governments may impose tariffs and other
obstacles for importing solar panels. Another issue is financing; it can be
challenging to obtain long-term contracts and partnerships with local or
regional power providers. There is also the question of access, as many countries
do not offer incentives or support for developing countries.
However, despite these challenges, there are indications
that we are headed in the right direction, with the growing number of projects
underway around the globe. It is too early to tell how much this trend will
create jobs, but it is possible that the technology and infrastructure needed
to harness solar will only continue to ramp up. So if you are looking for ways
to save money, start exploring your options today!
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