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How companies are using technology to embrace green energy

Publication Date: 24 Apr 2018 - By Market Mogul By Market Mogul
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Environmental, Social & Governance Macro Commodity Equity USA Asia ex-China UK China Energy

The energy market is a core component of every country in the world. It affects various aspects of an economy and plays a crucial role in everyone’s day-to-day lives. Currently, most economies rely on fossil fuels for energy, while the renewable energy market continues to grow as startups take advantage of advances in technology.

While the use of hydro-electricity and solar power has been around for decades, new forms of renewable energy have emerged. Companies are now investing heavily in offshore wind power while others are also experimenting with renewable nuclear energy.

The green energy industry has certainly grown over the last couple of decades, with the campaign against climate change also playing a crucial role in that growth. And now, as the market becomes even more saturated, various startups have continued to troop in with their own disruptive solutions that they believe could aid in the campaign against climate change.

Finally, Green is Making Sense to Most People

Statistically, most people are beginning to embrace renewable energy solutions, with the emerging markets presenting the biggest opportunity. The US accounts for 20% of the global wind power, which has an exponential growth rate of 2,337% over the last five years. Yet, when one adds up all the renewable energy used in the US, it only amounts to 10%.

This shows just how far the world is from completely switching to green energy sources, although the rate of adoption in countries in Western Europe like Germany is far much better.

Nonetheless, with the help of top renewable energy advocates like Elon Musk spearheading the green energy drive, more Americans will be under the green energy grid in due time. According to reports, companies are looking to disrupt the renewable energy market by targeting different applications that can serve as revenue drivers for the foreseeable future.

More Markets are Embracing Green Tech

For instance, an increase in the number of solar-powered homes, an increased adoption of electric cars and, now, even aeroplanes could be a major game-changer for the renewable energy market. Some of these applications rely heavily on fossil fuels in the current market environment and converting to renewable energy sources will continue to boost the green energy campaign spearheaded by top energy producers, including those already involved in fossil fuel-based energy.

Another emerging trend in the green energy market that could further bring more people and businesses to the market is the sale of renewable energy certificates (RECs). Some of the top multinational corporations like Apple and Alphabet have been buying their way to the green zone by acquiring RECs. And now, some startups have found a way to tokenise the entire process of generating RECs and selling them to third parties.

Even Blockchain Now Has a Role

Tokenisation of RECs could play a crucial role in the disruption of the green energy market, as this will create an insatiable demand for households and small businesses to get involved in the business of selling RECs. Currently, the cumbersome process of certifying excess green energy produced to allow households to sell it to third parties in the form of RECs has been a major obstacle but tokenisation could overcome that.

And with some startups now integrating the distributed ledger technology in their services, the rivalry will heat up in the coming years, which bodes well for the green energy market, and especially, the campaign against climate change.

Conclusion

In summary, less than 1% is wasted in the production of renewable electricity. And while there are some critics that believe climate change is a hoax, science has shown that it is as real as it gets. Overall, the response is positive with many countries and governments joining the campaign. So, the campaign against climate change will continue, and it will benefit significantly as companies embrace the use of various technologies to disrupt the market.

This commentary was first published on The Market Mogul.

 

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ReachX
1-15 Clere Street, EC2A 4UY
London, United Kingdom

info@reachx.co
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