essay on benefits of alternative energy sources

Alternative Sources of Energy Essay

When will we switch to renewable sources of energy? Such as solar, wind, hydro, and geothermal power. In this Alternative Sources of Energy essay, the author argues that the Sun and wind have the potential to reduce our dependence on fossil fuels and lower carbon emissions. Read the paper to learn about the challenges, limitations, and benefits of implementing alternative energy sources. A particular part is dedicated to the importance of government policies in promoting the development and use of alternative energy sources. Overall, the essay on alternative sources of energy presents a comprehensive overview of the current state of renewable energy and its potential for shaping our future.

Introduction

Solar power, course of action, works cited.

The world has been overly relying on oil as a source of energy to fuel most of its operations. It is important to note that as much as 80% of the world’s energy comes from fossil fuel. Unfortunately, the fossil deposits we have in the world cannot last forever. They will be depleted one day and cause a lot of problems in the world.

Therefore, efforts should be made to ensure that other sources of energy are found so that when fossil fuel gets depleted the world does not come to a halt. In this regard, many people especially in the U.S. have been concerned with the steps that the government is taking towards encouraging development of other sources of energy.

Consequently, the government has been urged to reduce restrictions impeding the development of renewable sources of energy and increase funding of the same. However, to address this issue, it is better to understand some of the sources renewable energy.

Among the proposed sources of power to be used is solar energy. Solar energy is a renewable source of energy because the sun has been there and can only be absent for a very short period of time. On the same note, harnessing of solar energy is noise proof which means that noise pollution is avoided when using solar power (Boxwell 58).

Similarly, solar power is environmental friendly because it does not produce any form of pollution. In addition, equipments used in the production of solar power are cheap to maintain thus the long run cost of production is low. Moreover, it is easy and cheap to install appliances of solar power.

Similarly, the electricity produced from solar energy can be used to power virtually every thing that uses power (Boxwell 59). It is also important to note that the production of solar power does not lead to environmental degradation like digging up the ground or deforestation.

However, solar power has its disadvantages. To begin with, some people have argued that the initial cost of installing solar power harnessing equipment is very high. Additionally, harnessing of solar power is affected by whether and cannot be done during cloudy or rainy days and at night. Therefore, another source of energy is needed to act as a back up (Boxwell 60).

On the other hand, wind energy is also another source of energy that can replace fossil fuel. Wind energy does not emit green house gases which are dangerous to the environment. Furthermore, no fossil fuels are burnt to produce wind energy thus it does not pollute the environment (Miller and Scott 407). Besides, extraction of wind energy is more efficient given the advancement in technology.

The turbines used to produce wind power only occupy little space at the base leaving room for other activities to be done on the ground. Moreover, wind energy is highly applicable in under developed parts of a country and can add to the tax base of the area.

In addition, renewable sources of energy, wind being among them, require minimal subsidies to maintain. On the same note, the cost of producing wind power is constant and therefore prices for wind power do not fluctuate. Most importantly, wind is free and thus cost of producing wind power is low in the long run (Miller and Scott 407).

It is crucial, however, to highlight that wind power has its share of disadvantages. Firstly, wind power depends on the flow of wind. On the days when the weather is calm wind power might not be generated. On the same note, the initial cost of producing wind power is quite high and individuals may not afford it (Miller and Scott 408). Lastly, power produced by the turbines is insufficient compared to power produced by fossil fuels.

Despite the disadvantages of wind and solar power, their advantages are definitely more. They are renewable and therefore they will never get depleted. Sooner or later the government will have to find alternative ways of producing power.

Consequently, it is high time that the government increased its financial support in the production of the two types of power (Miller and Scott 407). Reduction of restrictions is necessary but it might not be sufficient given the heavy initial cost. Similarly, renewable sources of energy, especially wind and solar power, are both economically and environmentally viable in the long run hence the need to invest in them.

The fact that the country currently satisfies most of its energy requirements should not blind our eyes. We will need to think of how we will operate in future. The fossil fuel that forms the giant part of energy source will definitely be exhausted with time.

It will be a great disservice to the future generations if we do not find sustainable energy sources. Consequently, the government has no option but to encourage the production wind and solar energy.

Boxwell, Michael. Solar Electricity Handbook: A simple. Practical Guide to Solar Energy-Designing and Installing Photovoltaic Solar Electric Systems . Warwickshire: Greenstream Publishing, 2010. Print.

Miller, Tyler G. and Scott Spoolman. Living in the Environment: Principles, Connections, and Solutions . Stanford: Cengage Learning, 2011. Print.

• Chicago (A-D)
• Chicago (N-B)

IvyPanda. (2023, October 30). Alternative Sources of Energy Essay. https://ivypanda.com/essays/alternative-sources-of-energy/

"Alternative Sources of Energy Essay." IvyPanda , 30 Oct. 2023, ivypanda.com/essays/alternative-sources-of-energy/.

IvyPanda . (2023) 'Alternative Sources of Energy Essay'. 30 October.

IvyPanda . 2023. "Alternative Sources of Energy Essay." October 30, 2023. https://ivypanda.com/essays/alternative-sources-of-energy/.

1. IvyPanda . "Alternative Sources of Energy Essay." October 30, 2023. https://ivypanda.com/essays/alternative-sources-of-energy/.

Bibliography

IvyPanda . "Alternative Sources of Energy Essay." October 30, 2023. https://ivypanda.com/essays/alternative-sources-of-energy/.

• New Techniques for Harnessing Solar Energy
• When Fossil Fuels are Depleted
• Nuclear Energy Fusion and Harnessing
• IM in the Workplace: Harnessing the Power of the Virtual Hallway
• Wind Energy: The Use of Wind Turbines
• Grundfos: Harnessing Creativity and Innovation
• The Uses and Working of Aircraft Turbines
• Gas Turbines and Its Types
• Solar Energy: Definition and Ways of Usage
• Turbine Windmills: Annotated Bibliography
• Reclamation of Grey Water & Refinery Oily Wastewater Using Bioprocesses Treatment
• Role of Engineers in Global Challenges
• Methodological Shortcomings of the EIA Process Undermine Its Ability to Promote Sustainable Development
• The SARS: How Can the Pandemic Be Prevented?
• Water Quality and Treatment

• Clean energy
• The advantages and disadvan...

The advantages and disadvantages of renewable energy

• Share to LinkedIn
• Share to Facebook
• Kerry Thoubboron

As subject matter experts, we provide only objective information. We design every article to provide you with deeply-researched, factual, useful information so that you can make informed home electrification and financial decisions. We have:

Sourced the majority of our data from hundreds of thousands of quotes through our own marketplace.

Incorporated third-party data and information from primary sources, government agencies, educational institutions, peer-reviewed research, or well-researched nonprofit organizations.

Built our own database and rating system for solar equipment, including solar panels, inverters, and batteries.

We won't charge you anything to get quotes through our marketplace. Instead, installers and other service providers pay us a small fee to participate after we vet them for reliability and suitability. To learn more, read about how we make money and our Editorial Guidelines .

As we move toward a zero-carbon future, wind power, geothermal energy, solar energy, hydropower, tidal energy, hydrogen, and other renewable technologies are becoming widely popular energy sources worldwide. Countries, corporations, and individuals are adopting clean energy for several great benefits, from reduced air pollution to financial savings. In this article, we’ll dive into some of the advantages and disadvantages of renewable energy .

• 100% free to use, 100% online
• Access the lowest prices from installers near you
• Unbiased Energy Advisors ready to help

Here are some of the most important pros and cons of using clean, renewable energy:

Advantages of renewable energy

Renewable energy has multiple advantages over fossil fuels. Here are some of the top benefits of using an alternative energy source:

Renewable energy won’t run out.

Renewable energy has lower maintenance requirements.

Renewables save money.

Renewable energy has numerous environmental benefits.

Renewables lower reliance on foreign energy sources.

Renewable energy leads to cleaner water and air.

Renewable energy creates jobs.

Renewable energy can cut down on waste.

1. Renewable energy won’t run out

Renewable energy technologies use resources straight from the environment to generate power. These energy sources include sunshine, wind, tides, and biomass. Renewable resources won’t run out, which cannot be said for many types of fossil fuels – as we use fossil fuel resources, they will be increasingly difficult to obtain, likely driving up both the cost and environmental impact of extraction.

2. Maintenance requirements are lower for renewable energy

Renewable energy systems usually require less overall maintenance than generators that use traditional fuel sources. This is because generating technology like solar panels and wind turbines either have few or no moving parts and don’t rely on flammable, combustible fuel sources to operate. Fewer maintenance requirements translate to more time and money saved.

3. Renewables save money

Using renewable energy can help you save money long term. Not only will you save on maintenance costs but also on operating costs. You don't have to pay to refuel when you’re using a technology that generates power from the sun, wind, steam, or natural processes. The amount of money you will save using renewable energy can vary depending on several factors, including the technology itself. In most cases, transitioning to renewable energy means anywhere from hundreds to thousands of dollars in savings—find out how much you can save by switching to solar energy .

4. Renewable energy has numerous environmental benefits

Renewable energy generation sources lead to lower greenhouse gas emissions than traditional fuel sources like natural gas. This means a smaller carbon footprint and an overall positive impact on the natural environment . During the combustion process, fossil fuels emit high amounts of greenhouse gases, which have been proven to exacerbate climate change, which in turn causes rising global temperatures and higher frequencies of extreme weather events.

The use of fossil fuels emits greenhouse gases and other harmful pollutants that lead to respiratory and cardiac health issues . With renewable energy, you’re helping decrease these pollutants' prevalence and contributing to a healthier atmosphere.

5. Renewables lower reliance on foreign energy sources

With renewable energy technologies, you can produce energy locally. The higher the amount of our energy use is renewable, the less we’ll rely on imported energy, and the more we’ll contribute to U.S. energy independence. Renewable energy sources can help us minimize the geo-political risks associated with fossil fuels, from trade disputes to political instability to pricing wars, which are often rooted in access to oil.

6. Renewable energy leads to cleaner water and air

When you burn fossil fuels to generate electricity, it contaminates the air and water we use. For example, coal power stations release high volumes of carbon dioxide, nitrous oxide, and harmful toxins like mercury, lead, and sulfur dioxide. Health problems from ingesting these elements can be dangerous and even fatal. Investing in renewable energy is a great way to work against these risks, as renewables have a far lower negative impact on our air and water. 

The use of fossil fuels emits greenhouse gases and other harmful pollutants that lead to respiratory and cardiac health issues . With renewable energy, you’re helping decrease these pollutants' prevalence and contributing to a healthier environment.

7. Renewable energy creates new jobs 

While the U.S. shifts its focus to combat global warming, we’re setting ambitious carbon-reduction goals that require labor to get the job done. Today, the renewable energy sector employs three times as many people as fossil fuels in the U.S. That number is expected to rise over the next few years—and as a plus, these jobs tend to pay above average wages, making it a desirable career option and an overall economic boom. 

8. Renewable energy can help solve our waste problem

Specifically, biomass energy can offer a significant benefit in this way. Biomass generators consume used organic products like vegetable oil, corn and soybean byproducts, and even algae to generate energy. Because of this, using biomass as an energy source can reduce the amount of waste that goes into landfills, which helps cut down on carbon emissions and environmental contamination.

Disadvantages of renewable energy

Renewable energy has many benefits, but it’s not always sunny when it comes to renewable energy. Here are some cons of renewable energy when compared to traditional fuel sources:

Renewable energy has high upfront costs.

Renewable energy is intermittent.

Renewables have storage capabilities.

Renewable energy sources have geographic limitations.

Renewables aren’t always 100% carbon-free.

1. Higher upfront cost

While you can save money using renewable energy, the technologies are typically more expensive upfront than traditional energy generators. To combat this, financial incentives such as tax credits and rebates are available to help alleviate your initial costs of renewable technology.

2. Intermittency

Though renewable energy resources are available around the world, many of these resources aren’t available 24/7, year-round. Some days may be windier than others, the sun doesn’t shine at night, and droughts may occur for periods. Unpredictable weather events can disrupt these technologies, and the amount of energy we can get from renewable power sources can be inconsistent. Fossil fuels are not intermittent, and power plants can be turned on or off at any time to provide an energy supply. Wondering if you should make the switch to renewables? Find out if an energy source like solar power is a good fit for you . 

3. Storage capabilities

Because of the intermittency of some renewable energy sources, there’s a high need for energy storage. Storage technologies are available but can be expensive, especially for large-scale renewable energy plants. It’s worth noting that energy storage capacity is growing as the technology progresses, and batteries are becoming more affordable as time passes.

4. Geographic limitations

The United States has a diverse geography with varying climates, topographies, vegetation, etc. This creates a beautiful melting pot of landscapes but also means that some geographies are more suitable for renewable technologies than others. For example, a large property in a rural area with open space may be an excellent place for a residential wind farm or a large-scale solar farm. At the same time, a townhome in a city covered in shade from taller buildings wouldn’t be able to reap the benefits of either technology. There are other options if your property isn’t suitable for a personal renewable energy technology. If you’re interested in solar but don’t have a sunny property, you can often still benefit from renewable energy by purchasing green power or enrolling in a community solar option .

5. Not 100% carbon-free

Although solar panels and other forms of renewable energy drastically reduce carbon emissions, these resources aren’t always completely clean. The manufacturing, transportation, and installation of renewable energy, like wind turbines, can create a carbon footprint since they’re usually produced in factories powered by fossil fuels —not to mention the diesel and gasoline needed to fuel the transport trucks. As the U.S. becomes more and more electrified – from solar panels on factories to electric transport trucks – carbon emissions associated with solar will continue to decrease.

6. Supply chain constraints

Renewables must have an effective distribution network created to transfer the energy where it’s needed on a large scale. These networks need non-renewable fuels to be generated, which offsets the benefits of renewable energy for a bit until it’s paid back. Additionally, politics can play a factor in installing renewable energy if it’s not a priority among local governments.

Types of renewable energy sources

There are a few types of renewable sources we can use for energy production: 

Wind energy leverages the power of wind motion to generate electricity created by the uneven heating of the Earth’s surface. 

Solar power uses energy from the sun to generate electricity and heat.

Hydropower utilizes fast-moving water to spin turbines and generate electricity. This is also known as hydroelectric power or hydroelectricity.

Biomass generates electricity from organic plant matter.

Geothermal energy leverages heat from inside the earth to generate electricity.

Tidal produces electricity with special generators that leverage the surges of the ocean created during rising and falling tides. Hydrogen: utilized as fuel and electricity when separated from other elements like oxygen.

Nuclear energy , while not technically renewable, is often lumped in with the abovementioned sources. Nuclear power has the potential to provide electricity generation on a massive scale with zero emissions, making it an intriguing part of our energy future.

Renewable energy has more benefits than drawbacks

When it comes to renewable energy, the positives outweigh the negatives. Transitioning to renewables on a personal, corporate, or governmental level will help you save money and promote a cleaner, healthier environment for the future.

Installing solar panels is one of the easiest ways to go green. By signing up on the EnergySage Solar Marketplace , you can compare multiple quotes from local, pre-screened installers to see what solar costs and savings for your property. The quotes will also include estimates of the amount of carbon dioxide emissions you will offset over 20 years and what this equates to in both trees planted and gallons of gasoline burned.

Create your own clean energy with solar panels.

Enjoy the benefits of solar without rooftop panels.

Explore heat pumps, the latest in clean heating & cooling technology.

See solar prices near you.

Enter your zip code to find out what typical solar installations cost in your neighborhood.

• Our offerings
• Community solar
• Heating & cooling
• Backup power
• EV charging
• For your business
• Other energy options
• Solar calculator
• Solar rebates
• Help center
• Home solar guide
• Market intel
• Refer a friend
• Mission & values
• How it works
• Editorial guidelines
• Work with us
• Solar & HVAC installers
• Corporate partnerships
• Community programs
• Utility programs

ENERGYSAGE is a registered trademark and the EnergySage logo is a trademark of EnergySage, Inc. Other trademarks are the property of either EnergySage, Inc. or our licensors and are used with permission.

© Copyright 2009-2024 EnergySage, Inc. All rights reserved.

Learn more about our success working with the U.S. Department of Energy.

Search the United Nations

• What Is Climate Change
• Myth Busters
• Renewable Energy
• Finance & Justice
• Initiatives
• Sustainable Development Goals
• Paris Agreement
• Climate Ambition Summit 2023
• Climate Conferences
• Press Material
• Communications Tips

Renewable energy – powering a safer future

Energy is at the heart of the climate challenge – and key to the solution.

A large chunk of the greenhouse gases that blanket the Earth and trap the sun’s heat are generated through energy production, by burning fossil fuels to generate electricity and heat.

Fossil fuels, such as coal, oil and gas, are by far the largest contributor to global climate change , accounting for over 75 percent of global greenhouse gas emissions and nearly 90 percent of all carbon dioxide emissions.

The science is clear: to avoid the worst impacts of climate change, emissions need to be reduced by almost half by 2030 and reach net-zero by 2050.

To achieve this, we need to end our reliance on fossil fuels and invest in alternative sources of energy that are clean, accessible, affordable, sustainable, and reliable.

Renewable energy sources – which are available in abundance all around us, provided by the sun, wind, water, waste, and heat from the Earth – are replenished by nature and emit little to no greenhouse gases or pollutants into the air.

Fossil fuels still account for more than 80 percent of global energy production , but cleaner sources of energy are gaining ground. About 29 percent of electricity currently comes from renewable sources.

Here are five reasons why accelerating the transition to clean energy is the pathway to a healthy, livable planet today and for generations to come.

1. Renewable energy sources are all around us

About 80 percent of the global population lives in countries that are net-importers of fossil fuels -- that’s about 6 billion people who are dependent on fossil fuels from other countries, which makes them vulnerable to geopolitical shocks and crises.

In contrast, renewable energy sources are available in all countries, and their potential is yet to be fully harnessed. The International Renewable Energy Agency (IRENA) estimates that 90 percent of the world’s electricity can and should come from renewable energy by 2050.

Renewables offer a way out of import dependency, allowing countries to diversify their economies and protect them from the unpredictable price swings of fossil fuels, while driving inclusive economic growth, new jobs, and poverty alleviation.

2. Renewable energy is cheaper

Renewable energy actually is the cheapest power option in most parts of the world today. Prices for renewable energy technologies are dropping rapidly. The cost of electricity from solar power fell by 85 percent between 2010 and 2020. Costs of onshore and offshore wind energy fell by 56 percent and 48 percent respectively.

Falling prices make renewable energy more attractive all around – including to low- and middle-income countries, where most of the additional demand for new electricity will come from. With falling costs, there is a real opportunity for much of the new power supply over the coming years to be provided by low-carbon sources.

Cheap electricity from renewable sources could provide 65 percent of the world’s total electricity supply by 2030. It could decarbonize 90 percent of the power sector by 2050, massively cutting carbon emissions and helping to mitigate climate change.

Although solar and wind power costs are expected to remain higher in 2022 and 2023 then pre-pandemic levels due to general elevated commodity and freight prices, their competitiveness actually improves due to much sharper increases in gas and coal prices, says the International Energy Agency (IEA).

3. Renewable energy is healthier

According to the World Health Organization (WHO), about 99 percent of people in the world breathe air that exceeds air quality limits and threatens their health, and more than 13 million deaths around the world each year are due to avoidable environmental causes, including air pollution.

The unhealthy levels of fine particulate matter and nitrogen dioxide originate mainly from the burning of fossil fuels. In 2018, air pollution from fossil fuels caused $2.9 trillion in health and economic costs , about $8 billion a day.

Switching to clean sources of energy, such as wind and solar, thus helps address not only climate change but also air pollution and health.

4. Renewable energy creates jobs

Every dollar of investment in renewables creates three times more jobs than in the fossil fuel industry. The IEA estimates that the transition towards net-zero emissions will lead to an overall increase in energy sector jobs : while about 5 million jobs in fossil fuel production could be lost by 2030, an estimated 14 million new jobs would be created in clean energy, resulting in a net gain of 9 million jobs.

In addition, energy-related industries would require a further 16 million workers, for instance to take on new roles in manufacturing of electric vehicles and hyper-efficient appliances or in innovative technologies such as hydrogen. This means that a total of more than 30 million jobs could be created in clean energy, efficiency, and low-emissions technologies by 2030.

Ensuring a just transition , placing the needs and rights of people at the heart of the energy transition, will be paramount to make sure no one is left behind.

5. Renewable energy makes economic sense

About $7 trillion was spent on subsidizing the fossil fuel industry in 2022, including through explicit subsidies, tax breaks, and health and environmental damages that were not priced into the cost of fossil fuels.

In comparison, about $4 trillion a year needs to be invested in renewable energy until 2030 – including investments in technology and infrastructure – to allow us to reach net-zero emissions by 2050.

The upfront cost can be daunting for many countries with limited resources, and many will need financial and technical support to make the transition. But investments in renewable energy will pay off. The reduction of pollution and climate impacts alone could save the world up to $4.2 trillion per year by 2030.

Moreover, efficient, reliable renewable technologies can create a system less prone to market shocks and improve resilience and energy security by diversifying power supply options.

Learn more about how many communities and countries are realizing the economic, societal, and environmental benefits of renewable energy.

Will developing countries benefit from the renewables boom? Learn more here .

What is renewable energy?

Derived from natural resources that are abundant and continuously replenished, renewable energy is key to a safer, cleaner, and sustainable world. Explore common sources of renewable energy here.

Why invest in renewable energy?

Learn more about the differences between fossil fuels and renewables, the benefits of renewable energy, and how we can act now.

Five ways to jump-start the renewable energy transition now

UN Secretary-General outlines five critical actions the world needs to prioritize now to speed up the global shift to renewable energy.

What is net zero? Why is it important? Our net-zero page explains why we need steep emissions cuts now and what efforts are underway.

• What is climate change?

Our climate 101 offers a quick take on the how and why of climate change. Read more.

How will the world foot the bill? We explain the issues and the value of financing climate action.

Climate issues

Learn more about how climate change impacts are felt across different sectors and ecosystems.

It’s time to stop burning our planet, and start investing in the abundant renewable energy all around us." ANTÓNIO GUTERRES , United Nations Secretary-General

Facts and figures

• Causes and effects
• Myth busters

Cutting emissions

• Explaining net zero
• High-level expert group on net zero
• Checklists for credibility of net-zero pledges
• Greenwashing
• What you can do

Clean energy

• Renewable energy – key to a safer future
• What is renewable energy
• Five ways to speed up the energy transition
• Why invest in renewable energy
• Clean energy stories
• A just transition

Adapting to climate change

• Climate adaptation
• Early warnings for all
• Youth voices

Financing climate action

• Finance and justice
• Loss and damage
• $100 billion commitment
• Why finance climate action
• Biodiversity
• Human Security

International cooperation

• What are Nationally Determined Contributions
• Acceleration Agenda
• Climate Ambition Summit
• Climate conferences (COPs)
• Youth Advisory Group
• Action initiatives
• Secretary-General’s speeches
• Press material
• Fact sheets
• Communications tips

Renewable Energy

Renewable energy comes from sources that will not be used up in our lifetimes, such as the sun and wind.

Earth Science, Experiential Learning, Engineering, Geology

Wind Turbines in a Sheep Pasture

Wind turbines use the power of wind to generate energy. This is just one source of renewable energy.

Photograph by Jesus Keller/ Shutterstock

The wind, the sun, and Earth are sources of  renewable energy . These energy sources naturally renew, or replenish themselves.

Wind, sunlight, and the planet have energy that transforms in ways we can see and feel. We can see and feel evidence of the transfer of energy from the sun to Earth in the sunlight shining on the ground and the warmth we feel when sunlight shines on our skin. We can see and feel evidence of the transfer of energy in wind’s ability to pull kites higher into the sky and shake the leaves on trees. We can see and feel evidence of the transfer of energy in the geothermal energy of steam vents and geysers .

People have created different ways to capture the energy from these renewable sources.

Solar Energy

Solar energy can be captured “actively” or “passively.”

Active solar energy uses special technology to capture the sun’s rays. The two main types of equipment are photovoltaic cells (also called PV cells or solar cells) and mirrors that focus sunlight in a specific spot. These active solar technologies use sunlight to generate electricity , which we use to power lights, heating systems, computers, and televisions.

Passive solar energy does not use any equipment. Instead, it gets energy from the way sunlight naturally changes throughout the day. For example, people can build houses so their windows face the path of the sun. This means the house will get more heat from the sun. It will take less energy from other sources to heat the house.

Other examples of passive solar technology are green roofs , cool roofs, and radiant barriers . Green roofs are completely covered with plants. Plants can get rid of pollutants in rainwater and air. They help make the local environment cleaner.

Cool roofs are painted white to better reflect sunlight. Radiant barriers are made of a reflective covering, such as aluminum. They both reflect the sun’s heat instead of absorbing it. All these types of roofs help lower the amount of energy needed to cool the building.

Advantages and Disadvantages There are many advantages to using solar energy. PV cells last for a long time, about 20 years.

However, there are reasons why solar power cannot be used as the only power source in a community. It can be expensive to install PV cells or build a building using passive solar technology.

Sunshine can also be hard to predict. It can be blocked by clouds, and the sun doesn’t shine at night. Different parts of Earth receive different amounts of sunlight based on location, the time of year, and the time of day.

Wind Energy

People have been harnessing the wind’s energy for a long, long time. Five-thousand years ago, ancient Egyptians made boats powered by the wind. In 200 B.C.E., people used windmills to grind grain in the Middle East and pump water in China.

Today, we capture the wind’s energy with wind turbines . A turbine is similar to a windmill; it has a very tall tower with two or three propeller-like blades at the top. These blades are turned by the wind. The blades turn a generator (located inside the tower), which creates electricity.

Groups of wind turbines are known as wind farms . Wind farms can be found near farmland, in narrow mountain passes, and even in the ocean, where there are steadier and stronger winds. Wind turbines anchored in the ocean are called “ offshore wind farms.”

Wind farms create electricity for nearby homes, schools, and other buildings.

Advantages and Disadvantages Wind energy can be very efficient . In places like the Midwest in the United States and along coasts, steady winds can provide cheap, reliable electricity.

Another great advantage of wind power is that it is a “clean” form of energy. Wind turbines do not burn fuel or emit any pollutants into the air.

Wind is not always a steady source of energy, however. Wind speed changes constantly, depending on the time of day, weather , and geographic location. Currently, it cannot be used to provide electricity for all our power needs.

Wind turbines can also be dangerous for bats and birds. These animals cannot always judge how fast the blades are moving and crash into them.

Geothermal Energy

Deep beneath the surface is Earth’s core . The center of Earth is extremely hot—thought to be over 6,000 °C (about 10,800 °F). The heat is constantly moving toward the surface.

We can see some of Earth’s heat when it bubbles to the surface. Geothermal energy can melt underground rocks into magma and cause the magma to bubble to the surface as lava . Geothermal energy can also heat underground sources of water and force it to spew out from the surface. This stream of water is called a geyser.

However, most of Earth’s heat stays underground and makes its way out very, very slowly.

We can access underground geothermal heat in different ways. One way of using geothermal energy is with “geothermal heat pumps.” A pipe of water loops between a building and holes dug deep underground. The water is warmed by the geothermal energy underground and brings the warmth aboveground to the building. Geothermal heat pumps can be used to heat houses, sidewalks, and even parking lots.

Another way to use geothermal energy is with steam. In some areas of the world, there is underground steam that naturally rises to the surface. The steam can be piped straight to a power plant. However, in other parts of the world, the ground is dry. Water must be injected underground to create steam. When the steam comes to the surface, it is used to turn a generator and create electricity.

In Iceland, there are large reservoirs of underground water. Almost 90 percent of people in Iceland use geothermal as an energy source to heat their homes and businesses.

Advantages and Disadvantages An advantage of geothermal energy is that it is clean. It does not require any fuel or emit any harmful pollutants into the air.

Geothermal energy is only avaiable in certain parts of the world. Another disadvantage of using geothermal energy is that in areas of the world where there is only dry heat underground, large quantities of freshwater are used to make steam. There may not be a lot of freshwater. People need water for drinking, cooking, and bathing.

Biomass Energy

Biomass is any material that comes from plants or microorganisms that were recently living. Plants create energy from the sun through photosynthesis . This energy is stored in the plants even after they die.

Trees, branches, scraps of bark, and recycled paper are common sources of biomass energy. Manure, garbage, and crops , such as corn, soy, and sugar cane, can also be used as biomass feedstocks .

We get energy from biomass by burning it. Wood chips, manure, and garbage are dried out and compressed into squares called “briquettes.” These briquettes are so dry that they do not absorb water. They can be stored and burned to create heat or generate electricity.

Biomass can also be converted into biofuel . Biofuels are mixed with regular gasoline and can be used to power cars and trucks. Biofuels release less harmful pollutants than pure gasoline.

Advantages and Disadvantages A major advantage of biomass is that it can be stored and then used when it is needed.

Growing crops for biofuels, however, requires large amounts of land and pesticides . Land could be used for food instead of biofuels. Some pesticides could pollute the air and water.

Biomass energy can also be a nonrenewable energy source. Biomass energy relies on biomass feedstocks—plants that are processed and burned to create electricity. Biomass feedstocks can include crops, such as corn or soy, as well as wood. If people do not replant biomass feedstocks as fast as they use them, biomass energy becomes a non-renewable energy source.

Hydroelectric Energy

Hydroelectric energy is made by flowing water. Most hydroelectric power plants are located on large dams , which control the flow of a river.

Dams block the river and create an artificial lake, or reservoir. A controlled amount of water is forced through tunnels in the dam. As water flows through the tunnels, it turns huge turbines and generates electricity.

Advantages and Disadvantages Hydroelectric energy is fairly inexpensive to harness. Dams do not need to be complex, and the resources to build them are not difficult to obtain. Rivers flow all over the world, so the energy source is available to millions of people.

Hydroelectric energy is also fairly reliable. Engineers control the flow of water through the dam, so the flow does not depend on the weather (the way solar and wind energies do).

However, hydroelectric power plants are damaging to the environment. When a river is dammed, it creates a large lake behind the dam. This lake (sometimes called a reservoir) drowns the original river habitat deep underwater. Sometimes, people build dams that can drown entire towns underwater. The people who live in the town or village must move to a new area.

Hydroelectric power plants don’t work for a very long time: Some can only supply power for 20 or 30 years. Silt , or dirt from a riverbed, builds up behind the dam and slows the flow of water.

Other Renewable Energy Sources

Scientists and engineers are constantly working to harness other renewable energy sources. Three of the most promising are tidal energy , wave energy , and algal (or algae) fuel.

Tidal energy harnesses the power of ocean tides to generate electricity. Some tidal energy projects use the moving tides to turn the blades of a turbine. Other projects use small dams to continually fill reservoirs at high tide and slowly release the water (and turn turbines) at low tide.

Wave energy harnesses waves from the ocean, lakes, or rivers. Some wave energy projects use the same equipment that tidal energy projects do—dams and standing turbines. Other wave energy projects float directly on waves. The water’s constant movement over and through these floating pieces of equipment turns turbines and creates electricity.

Algal fuel is a type of biomass energy that uses the unique chemicals in seaweed to create a clean and renewable biofuel. Algal fuel does not need the acres of cropland that other biofuel feedstocks do.

Renewable Nations

These nations (or groups of nations) produce the most energy using renewable resources. Many of them are also the leading producers of nonrenewable energy: China, European Union, United States, Brazil, and Canada

Articles & Profiles

Media credits.

The audio, illustrations, photos, and videos are credited beneath the media asset, except for promotional images, which generally link to another page that contains the media credit. The Rights Holder for media is the person or group credited.

Last Updated

March 18, 2024

User Permissions

For information on user permissions, please read our Terms of Service. If you have questions about how to cite anything on our website in your project or classroom presentation, please contact your teacher. They will best know the preferred format. When you reach out to them, you will need the page title, URL, and the date you accessed the resource.

If a media asset is downloadable, a download button appears in the corner of the media viewer. If no button appears, you cannot download or save the media.

Text on this page is printable and can be used according to our Terms of Service .

Interactives

Any interactives on this page can only be played while you are visiting our website. You cannot download interactives.

Related Resources

Thank you for visiting nature.com. You are using a browser version with limited support for CSS. To obtain the best experience, we recommend you use a more up to date browser (or turn off compatibility mode in Internet Explorer). In the meantime, to ensure continued support, we are displaying the site without styles and JavaScript.

• View all journals
• Explore content
• About the journal
• Publish with us
• Sign up for alerts
• 08 August 2023

Clean energy can fuel the future — and make the world healthier

You have full access to this article via your institution.

China is on track to reach its solar-power target for 2030. Credit: Zhao Yongtao/VCG/Getty

The 2030 targets laid out by the United Nations for the seventh Sustainable Development Goal (SDG 7) are clear enough: provide affordable access to energy; expand use of renewable sources; improve energy efficiency year on year; and enhance international cooperation in support of clean-energy research, development and infrastructure. Meeting those goals, however, will be anything but simple. As seen in many of the editorials in this series examining the SDGs at their halfway stage , the world is falling short.

This is due, at least in part, to the influence of the fossil-fuel industry, which drives the economics and, often, the politics of countries large and small, rich and poor. Rising human prosperity, as measured by economic growth, has long been linked to an abundance of fossil fuels. Many politicians fear that the pursuit of clean-energy sources will compromise that economic development. The latest science clearly counters this view — but the voice of the research community is not being heard in the right places. To meet the targets embodied in SDG 7, that has to change.

There is much to be done. In 2021, some 675 million people worldwide still did not have access to electricity. This is down from 1.1 billion a decade or so ago, but the pace of progress has slowed. On the basis of current trends, 660 million people, many of them in sub-Saharan Africa, will remain without electricity by 2030. And projections indicate that some 1.9 billion people will still be using polluting and inefficient cooking systems fuelled by coal and wood (see go.nature.com/3s8d887 ). This is bad news all round: for health, biodiversity and the climate.

Carbon emissions hit new high: warning from COP27

Achieving the energy-access targets was always going to be a stretch, but progress has been slow elsewhere, too. Take energy efficiency. More energy efficiency means less pollution, and energy efficiency has increased by around 2% annually in the past few years. But meeting the target for 2030 — to double the rate of the 1990–2010 average — would require gains of around 3.4% every year for the rest of this decade.

The picture for renewable energy is similarly mixed. Despite considerable growth in wind and solar power to generate grid electricity, progress in the heat and transport sectors remains sluggish. Renewable energy’s share of total global energy consumption was just 19.1% in 2020, according to the latest UN tracking report, but one-third of that came from burning resources such as wood.

One reason for the slow progress is the continued idea that aggressive clean-energy goals will get in the way of economic development. It’s easier and more profitable for major fossil-fuel producers to simply maintain the status quo. Just last month, ministers from the G20 group of the world’s biggest economies, including the European Union, India, Saudi Arabia and the United States, failed to agree on a plan to phase out fossil fuels and triple the capacity of renewable energy by 2030.

But this is where science has a story to tell. In the past, researchers say, many models indicated that clean energy would be more expensive than that from fossil fuels, potentially pricing the poorest nations out of the market as well as driving up people’s food bills and exacerbating hunger. But the latest research suggests that the picture is more complex. Energy is a linchpin for most of the SDGs, and research that merges climate, energy and the SDGs underscores this 1 . For example, the agriculture and food-transport sectors still depend on fossil fuels, and that generates pollution that kills millions of people each year. Other links are indirect: lack of access to light at night and to online information — as a result of energy poverty — hampers educational attainment and contributes to both long- and short-term inequality.

US aims for electric-car revolution — will it work?

The lesson from research is that it might be easier, not harder, to address these challenges together. In 2021, researcher Gabriela Iacobuţă at the German Institute of Development and Sustainability in Bonn and her colleagues showed that technologies centred on renewable resources and efficiency tend to come with few trade-offs and many benefits, including improved public health and wealth, thanks to a cleaner environment and better jobs 2 . And climate scientist Bjoern Soergel at the Potsdam Institute for Climate Impact Research in Germany and his colleagues found that a coordinated package of climate and development policies could achieve most of the SDGs while limiting global warming to 1.5 °C above pre-industrial levels 3 .

The study assessed 56 indicators across all 17 SDGs. One proposed intervention is an international climate finance mechanism that would levy fees on carbon emissions that would be redistributed through national programmes to reduce poverty. A second focuses on promoting healthy diets — including reducing the consumption of meat, the production of which requires a lot of water, energy and land. This would benefit people on low incomes by lowering both food and energy prices.

The biggest challenge lies in translating these models to the real world. To do so, we need leaders who are not bound by outmoded thinking, are aware of the latest science and can draw on the research to build public support for the necessary energy transition. We require more national and international public institutions that are willing to address problems at the system level. And all of this needs a science community that is willing and able to champion knowledge and evidence.

Nature 620 , 245 (2023)

doi: https://doi.org/10.1038/d41586-023-02510-y

Vohra, K. et al. Environ. Res. 195 , 110754 (2021).

Article   PubMed   Google Scholar  

Iacobuţă, G. I., Höhne, N., van Soest, H. L. & Leemans, R. Sustainability 13 , 10774 (2021).

Article   Google Scholar  

Soergel, B. et al. Nature Clim. Change 11 , 656–664 (2021).

Download references

Reprints and permissions

Related Articles

• Environmental sciences

Allen J. Bard obituary: electrochemist whose techniques underpin clinical diagnostics, materials discovery and more

Obituary 01 MAY 24

It’s time to talk about the hidden human cost of the green transition

Correspondence 16 APR 24

A better way to charge a quantum battery

Research Highlight 08 MAR 24

Why it was right to reject the Anthropocene as a geological epoch

Correspondence 30 APR 24

Epic blazes threaten Arctic permafrost. Can firefighters save it?

News 29 APR 24

Want to make a difference? Try working at an environmental non-profit organization

Career Feature 26 APR 24

How to meet Africa’s grand challenges with African know-how

World View 01 MAY 24

Support communities that will lose out in the energy transition

Editorial 01 MAY 24

Climate-targets group should rescind its endorsement of carbon offsets

Director, NLM

Vacancy Announcement Department of Health and Human Services National Institutes of Health   DIRECTOR, NATIONAL LIBRARY OF MEDICINE   THE POSITION:...

Bethesda, Maryland

National Library of Medicine - Office of the Director

Call for postdoctoral fellows in Molecular Medicine, Nordic EMBL Partnership for Molecular Medicine

The Nordic EMBL Partnership is seeking postdoctoral fellows for collaborative projects in molecular medicine through the first NORPOD call.

Helsinki, Finland

Nordic EMBL Partnership for Molecular Medicine

Associate or Senior Editor (microbial genetics, evolution, and epidemiology)

we’re seeking an editor who has a critical eye, a deep understanding of their subject and interests beyond, and who can think on their feet.

London, New York, Philadelphia or Pune – Hybrid working model.

Springer Nature Ltd

Description test

Berlin (DE)

Springer Nature Group

Postdoctoral Associate- Molecular Cell Biology

Houston, Texas (US)

Baylor College of Medicine (BCM)

Sign up for the Nature Briefing newsletter — what matters in science, free to your inbox daily.

Quick links

• Explore articles by subject
• Guide to authors
• Editorial policies

• ENVIRONMENT

Renewable energy, explained

Solar, wind, hydroelectric, biomass, and geothermal power can provide energy without the planet-warming effects of fossil fuels.

In any discussion about climate change , renewable energy usually tops the list of changes the world can implement to stave off the worst effects of rising temperatures. That's because renewable energy sources such as solar and wind don't emit carbon dioxide and other greenhouse gases that contribute to global warming .

Clean energy has far more to recommend it than just being "green." The growing sector creates jobs , makes electric grids more resilient, expands energy access in developing countries, and helps lower energy bills. All of those factors have contributed to a renewable energy renaissance in recent years, with wind and solar setting new records for electricity generation .

For the past 150 years or so, humans have relied heavily on coal, oil, and other fossil fuels to power everything from light bulbs to cars to factories. Fossil fuels are embedded in nearly everything we do, and as a result, the greenhouse gases released from the burning of those fuels have reached historically high levels .

As greenhouse gases trap heat in the atmosphere that would otherwise escape into space, average temperatures on the surface are rising . Global warming is one symptom of climate change, the term scientists now prefer to describe the complex shifts affecting our planet’s weather and climate systems. Climate change encompasses not only rising average temperatures but also extreme weather events, shifting wildlife populations and habitats, rising seas , and a range of other impacts .

Of course, renewables—like any source of energy—have their own trade-offs and associated debates. One of them centers on the definition of renewable energy. Strictly speaking, renewable energy is just what you might think: perpetually available, or as the U.S. Energy Information Administration puts it, " virtually inexhaustible ." But "renewable" doesn't necessarily mean sustainable, as opponents of corn-based ethanol or large hydropower dams often argue. It also doesn't encompass other low- or zero-emissions resources that have their own advocates, including energy efficiency and nuclear power.

Types of renewable energy sources

Hydropower: For centuries, people have harnessed the energy of river currents, using dams to control water flow. Hydropower is the world's biggest source of renewable energy by far, with China, Brazil, Canada, the U.S., and Russia the leading hydropower producers . While hydropower is theoretically a clean energy source replenished by rain and snow, it also has several drawbacks.

Large dams can disrupt river ecosystems and surrounding communities , harming wildlife and displacing residents. Hydropower generation is vulnerable to silt buildup, which can compromise capacity and harm equipment. Drought can also cause problems. In the western U.S., carbon dioxide emissions over a 15-year period were 100 megatons higher than they normally would have been, according to a 2018 study , as utilities turned to coal and gas to replace hydropower lost to drought. Even hydropower at full capacity bears its own emissions problems, as decaying organic material in reservoirs releases methane.

Dams aren't the only way to use water for power: Tidal and wave energy projects around the world aim to capture the ocean's natural rhythms. Marine energy projects currently generate an estimated 500 megawatts of power —less than one percent of all renewables—but the potential is far greater. Programs like Scotland’s Saltire Prize have encouraged innovation in this area.

Wind: Harnessing the wind as a source of energy started more than 7,000 years ago . Now, electricity-generating wind turbines are proliferating around the globe, and China, the U.S., and Germany are the leading wind energy producers. From 2001 to 2017 , cumulative wind capacity around the world increased to more than 539,000 megawatts from 23,900 mw—more than 22 fold.

Some people may object to how wind turbines look on the horizon and to how they sound, but wind energy, whose prices are declining , is proving too valuable a resource to deny. While most wind power comes from onshore turbines, offshore projects are appearing too, with the most in the U.K. and Germany. The first U.S. offshore wind farm opened in 2016 in Rhode Island, and other offshore projects are gaining momentum . Another problem with wind turbines is that they’re a danger for birds and bats, killing hundreds of thousands annually , not as many as from glass collisions and other threats like habitat loss and invasive species, but enough that engineers are working on solutions to make them safer for flying wildlife.

You May Also Like

Can energy harnessed from Earth’s interior help power the world?

How the historic climate bill will dramatically reduce U.S. emissions

5 environmental victories from 2021 that offer hope

Solar: From home rooftops to utility-scale farms, solar power is reshaping energy markets around the world. In the decade from 2007 and 2017 the world's total installed energy capacity from photovoltaic panels increased a whopping 4,300 percent .

In addition to solar panels, which convert the sun's light to electricity, concentrating solar power (CSP) plants use mirrors to concentrate the sun's heat, deriving thermal energy instead. China, Japan, and the U.S. are leading the solar transformation, but solar still has a long way to go, accounting for around two percent of the total electricity generated in the U.S. in 2017. Solar thermal energy is also being used worldwide for hot water, heating, and cooling.

Biomass: Biomass energy includes biofuels such as ethanol and biodiesel , wood and wood waste, biogas from landfills, and municipal solid waste. Like solar power, biomass is a flexible energy source, able to fuel vehicles, heat buildings, and produce electricity. But biomass can raise thorny issues.

Critics of corn-based ethanol , for example, say it competes with the food market for corn and supports the same harmful agricultural practices that have led to toxic algae blooms and other environmental hazards. Similarly, debates have erupted over whether it's a good idea to ship wood pellets from U.S. forests over to Europe so that it can be burned for electricity. Meanwhile, scientists and companies are working on ways to more efficiently convert corn stover , wastewater sludge , and other biomass sources into energy, aiming to extract value from material that would otherwise go to waste.

Geothermal: Used for thousands of years in some countries for cooking and heating, geothermal energy is derived from the Earth’s internal heat . On a large scale, underground reservoirs of steam and hot water can be tapped through wells that can go a mile deep or more to generate electricity. On a smaller scale, some buildings have geothermal heat pumps that use temperature differences several feet below ground for heating and cooling. Unlike solar and wind energy, geothermal energy is always available, but it has side effects that need to be managed, such as the rotten egg smell that can accompany released hydrogen sulfide.

Ways to boost renewable energy

Cities, states, and federal governments around the world are instituting policies aimed at increasing renewable energy. At least 29 U.S. states have set renewable portfolio standards —policies that mandate a certain percentage of energy from renewable sources, More than 100 cities worldwide now boast at least 70 percent renewable energy, and still others are making commitments to reach 100 percent . Other policies that could encourage renewable energy growth include carbon pricing, fuel economy standards, and building efficiency standards. Corporations are making a difference too, purchasing record amounts of renewable power in 2018.

Wonder whether your state could ever be powered by 100 percent renewables? No matter where you live, scientist Mark Jacobson believes it's possible. That vision is laid out here , and while his analysis is not without critics , it punctuates a reality with which the world must now reckon. Even without climate change, fossil fuels are a finite resource, and if we want our lease on the planet to be renewed, our energy will have to be renewable.

Related Topics

• SUSTAINABILITY
• RENEWABLE ENERGY
• GEOTHERMAL ENERGY
• SOLAR POWER
• HYDROELECTRIC POWER
• CLIMATE CHANGE

Activists fear a new threat to biodiversity—renewable energy

How the Ukraine war is accelerating Germany's renewable energy transition

We took the Great American Road Trip—in electric cars

What’s at stake at COP26—the crucial global climate summit

India bets its energy future on solar—in ways both small and big

• Environment
• Perpetual Planet

History & Culture

• History & Culture
• Coronavirus Coverage
• Mind, Body, Wonder
• Paid Content
• Terms of Use
• Privacy Policy
• Your US State Privacy Rights
• Children's Online Privacy Policy
• Interest-Based Ads
• About Nielsen Measurement
• Do Not Sell or Share My Personal Information
• Nat Geo Home
• Attend a Live Event
• Book a Trip
• Inspire Your Kids
• Shop Nat Geo
• Visit the D.C. Museum
• Learn About Our Impact
• Support Our Mission
• Advertise With Us
• Customer Service
• Renew Subscription
• Manage Your Subscription
• Work at Nat Geo
• Sign Up for Our Newsletters
• Contribute to Protect the Planet

Copyright © 1996-2015 National Geographic Society Copyright © 2015-2024 National Geographic Partners, LLC. All rights reserved

Towards Sustainable Energy: A Systematic Review of Renewable Energy Sources, Technologies, and Public Opinions

Ieee account.

• Change Username/Password
• Update Address

Purchase Details

• Payment Options
• Order History
• View Purchased Documents

Profile Information

• Communications Preferences
• Profession and Education
• Technical Interests
• US & Canada: +1 800 678 4333
• Worldwide: +1 732 981 0060
• Contact & Support
• About IEEE Xplore
• Accessibility
• Terms of Use
• Nondiscrimination Policy
• Privacy & Opting Out of Cookies

A not-for-profit organization, IEEE is the world's largest technical professional organization dedicated to advancing technology for the benefit of humanity. © Copyright 2024 IEEE - All rights reserved. Use of this web site signifies your agreement to the terms and conditions.

If you're seeing this message, it means we're having trouble loading external resources on our website.

If you're behind a web filter, please make sure that the domains *.kastatic.org and *.kasandbox.org are unblocked.

To log in and use all the features of Khan Academy, please enable JavaScript in your browser.

AP®︎/College Environmental science

Course: ap®︎/college environmental science   >   unit 5.

• Renewable and nonrenewable energy resources

Renewable and nonrenewable energy sources

• Global energy use
• Intro to energy resources and consumption
• Nonrenewable energy sources are those that are consumed faster than they can be replaced. Nonrenewable energy sources include nuclear energy as well as fossil fuels such as coal, crude oil, and natural gas. These energy sources have a finite supply, and often emit harmful pollutants into the environment.
• Renewable energy sources are those that are naturally replenished on a relatively short timescale. Renewable energy sources include solar, wind, hydroelectric, and geothermal energy. They also include biomass and hydrogen fuels. These energy sources are sustainable and generate fewer greenhouse gas emissions than fossil fuels.

Want to join the conversation?

• Upvote Button navigates to signup page
• Downvote Button navigates to signup page
• Flag Button navigates to signup page

Essay on Alternative Sources of Energy

Students are often asked to write an essay on Alternative Sources of Energy in their schools and colleges. And if you’re also looking for the same, we have created 100-word, 250-word, and 500-word essays on the topic.

Let’s take a look…

100 Words Essay on Alternative Sources of Energy

Introduction.

Alternative sources of energy are the future of our planet. They are clean, renewable, and help in reducing the carbon footprint.

Types of Alternative Energy

There are several types of alternative energy. Solar power uses the sun’s energy, wind power harnesses wind, and hydroelectric power uses water.

These energy sources are renewable, meaning they won’t run out like fossil fuels. They also produce less pollution, helping to protect our environment.

Embracing alternative energy is crucial for our planet’s future. It is a sustainable and environmentally friendly solution to our energy needs.

Also check:

• Paragraph on Alternative Sources of Energy

250 Words Essay on Alternative Sources of Energy

The depletion of conventional energy sources and the environmental implications of their use necessitate a shift towards alternative, sustainable energy sources. These alternatives, such as solar, wind, and geothermal energy, offer the potential to reduce our reliance on fossil fuels and diminish our carbon footprint.

Solar Energy

Solar energy is a viable and increasingly popular alternative. Harnessing the power of the sun through photovoltaic cells, solar energy offers a renewable, abundant, and virtually inexhaustible source of power. The decreasing costs of solar panels and the potential for energy storage make it a compelling option.

Wind Energy

Wind energy, another significant alternative source, utilizes the kinetic energy of wind to generate electricity. Wind turbines, both onshore and offshore, present a clean, renewable energy source. However, their efficiency is contingent on wind speed and consistency, posing a challenge for its widespread adoption.

Geothermal Energy

Geothermal energy, derived from the Earth’s natural heat, is another promising alternative. It is reliable, available round-the-clock, and has a minimal environmental impact. However, it is location-specific and requires significant initial investment.

The transition to alternative energy sources is not without challenges, including technological limitations, initial costs, and geographical constraints. However, the long-term benefits in terms of sustainability, environmental protection, and energy security make it a necessary shift. Embracing these alternatives will pave the way for a sustainable and energy-efficient future.

500 Words Essay on Alternative Sources of Energy

The global energy landscape is undergoing a significant transformation, driven by a recognition of the need for sustainable, renewable, and less harmful energy sources. The increasing environmental concerns, coupled with the finite nature of fossil fuels, have necessitated the exploration and utilization of alternative sources of energy. These alternatives, including solar, wind, hydroelectric, tidal, geothermal, and biomass energy, present a promising route towards a sustainable and carbon-neutral future.

The Potential of Solar and Wind Energy

Solar and wind energy are the most widely recognized forms of renewable energy. Solar energy harnesses the power of the sun, converting sunlight into electricity. With the sun as an inexhaustible energy source, solar power presents a sustainable solution to energy needs. Moreover, advancements in photovoltaic technology have significantly increased solar power’s efficiency and affordability.

Wind energy, on the other hand, leverages the kinetic energy of wind to generate electricity. Wind turbines, strategically placed in areas with strong wind currents, can produce substantial amounts of energy. Wind power, like solar energy, is clean and renewable, with the potential to significantly reduce our reliance on fossil fuels.

Hydroelectric, Tidal, and Geothermal Energy

Hydroelectric energy, generated by harnessing the power of flowing or falling water, is another viable alternative. The construction of dams and hydroelectric power plants enables the production of large-scale electricity, contributing significantly to the energy mix of many countries.

Tidal energy, although less utilized, holds immense potential. It involves capturing the energy produced by ocean tides and waves. With the predictable and consistent nature of tides, tidal energy can provide a steady and reliable source of electricity.

Geothermal energy, derived from the Earth’s internal heat, is another promising alternative. Geothermal power plants use the heat from deep inside the Earth to generate steam, which drives turbines to produce electricity.

Biomass Energy

Biomass energy refers to the energy obtained from organic material, including plant and animal waste. The process of burning or converting this biomass into usable energy forms is a renewable process, as new organic material is continually produced. Biomass energy not only provides a solution for waste management but also contributes to a diversified and sustainable energy portfolio.

In conclusion, the quest for sustainable and environmentally friendly energy solutions has led to the exploration and development of various alternative energy sources. These alternatives, each with their unique advantages and challenges, play a crucial role in the gradual transition from fossil fuels. As technology advances and our understanding of these energy sources deepens, the potential for a sustainable and carbon-neutral energy future becomes increasingly achievable.

That’s it! I hope the essay helped you.

If you’re looking for more, here are essays on other interesting topics:

• Essay on Alternative Medicine
• Essay on Alternative Fuels
• Essay on Alternative Energy

Apart from these, you can look at all the essays by clicking here .

Happy studying!

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Save my name, email, and website in this browser for the next time I comment.

• Search Menu
• Advanced Articles
• Editor's Choice
• Author Guidelines
• Publish with us
• Submission Site
• Open Access
• Self-Archiving Policy
• About Clean Energy
• About the National Institute of Clean and Low-Carbon Energy
• Editorial Board
• Instructions for Reviewers
• Advertising & Corporate Services
• Journals Career Network
• Journals on Oxford Academic
• Books on Oxford Academic

Article Contents

Introduction, 1 installed capacity and application of solar energy worldwide, 2 the role of solar energy in sustainable development, 3 the perspective of solar energy, 4 conclusions, conflict of interest statement.

• < Previous

Solar energy technology and its roles in sustainable development

• Article contents
• Figures & tables
• Supplementary Data

Ali O M Maka, Jamal M Alabid, Solar energy technology and its roles in sustainable development, Clean Energy , Volume 6, Issue 3, June 2022, Pages 476–483, https://doi.org/10.1093/ce/zkac023

• Permissions Icon Permissions

Solar energy is environmentally friendly technology, a great energy supply and one of the most significant renewable and green energy sources. It plays a substantial role in achieving sustainable development energy solutions. Therefore, the massive amount of solar energy attainable daily makes it a very attractive resource for generating electricity. Both technologies, applications of concentrated solar power or solar photovoltaics, are always under continuous development to fulfil our energy needs. Hence, a large installed capacity of solar energy applications worldwide, in the same context, supports the energy sector and meets the employment market to gain sufficient development. This paper highlights solar energy applications and their role in sustainable development and considers renewable energy’s overall employment potential. Thus, it provides insights and analysis on solar energy sustainability, including environmental and economic development. Furthermore, it has identified the contributions of solar energy applications in sustainable development by providing energy needs, creating jobs opportunities and enhancing environmental protection. Finally, the perspective of solar energy technology is drawn up in the application of the energy sector and affords a vision of future development in this domain.

With reference to the recommendations of the UN, the Climate Change Conference, COP26, was held in Glasgow , UK, in 2021. They reached an agreement through the representatives of the 197 countries, where they concurred to move towards reducing dependency on coal and fossil-fuel sources. Furthermore, the conference stated ‘the various opportunities for governments to prioritize health and equity in the international climate movement and sustainable development agenda’. Also, one of the testaments is the necessity to ‘create energy systems that protect and improve climate and health’ [ 1 , 2 ].

The Paris Climate Accords is a worldwide agreement on climate change signed in 2015, which addressed the mitigation of climate change, adaptation and finance. Consequently, the representatives of 196 countries concurred to decrease their greenhouse gas emissions [ 3 ]. The Paris Agreement is essential for present and future generations to attain a more secure and stable environment. In essence, the Paris Agreement has been about safeguarding people from such an uncertain and progressively dangerous environment and ensuring everyone can have the right to live in a healthy, pollutant-free environment without the negative impacts of climate change [ 3 , 4 ].

In recent decades, there has been an increase in demand for cleaner energy resources. Based on that, decision-makers of all countries have drawn up plans that depend on renewable sources through a long-term strategy. Thus, such plans reduce the reliance of dependence on traditional energy sources and substitute traditional energy sources with alternative energy technology. As a result, the global community is starting to shift towards utilizing sustainable energy sources and reducing dependence on traditional fossil fuels as a source of energy [ 5 , 6 ].

In 2015, the UN adopted the sustainable development goals (SDGs) and recognized them as international legislation, which demands a global effort to end poverty, safeguard the environment and guarantee that by 2030, humanity lives in prosperity and peace. Consequently, progress needs to be balanced among economic, social and environmental sustainability models [ 7 ].

Many national and international regulations have been established to control the gas emissions and pollutants that impact the environment [ 8 ]. However, the negative effects of increased carbon in the atmosphere have grown in the last 10 years. Production and use of fossil fuels emit methane (CH 4 ), carbon dioxide (CO 2 ) and carbon monoxide (CO), which are the most significant contributors to environmental emissions on our planet. Additionally, coal and oil, including gasoline, coal, oil and methane, are commonly used in energy for transport or for generating electricity. Therefore, burning these fossil fuel s is deemed the largest emitter when used for electricity generation, transport, etc. However, these energy resources are considered depleted energy sources being consumed to an unsustainable degree [ 9–11 ].

Energy is an essential need for the existence and growth of human communities. Consequently, the need for energy has increased gradually as human civilization has progressed. Additionally, in the past few decades, the rapid rise of the world’s population and its reliance on technological developments have increased energy demands. Furthermore, green technology sources play an important role in sustainably providing energy supplies, especially in mitigating climate change [ 5 , 6 , 8 ].

Currently, fossil fuels remain dominant and will continue to be the primary source of large-scale energy for the foreseeable future; however, renewable energy should play a vital role in the future of global energy. The global energy system is undergoing a movement towards more sustainable sources of energy [ 12 , 13 ].

Power generation by fossil-fuel resources has peaked, whilst solar energy is predicted to be at the vanguard of energy generation in the near future. Moreover, it is predicted that by 2050, the generation of solar energy will have increased to 48% due to economic and industrial growth [ 13 , 14 ].

In recent years, it has become increasingly obvious that the globe must decrease greenhouse gas emissions by 2050, ideally towards net zero, if we are to fulfil the Paris Agreement’s goal to reduce global temperature increases [ 3 , 4 ]. The net-zero emissions complement the scenario of sustainable development assessment by 2050. According to the agreed scenario of sustainable development, many industrialized economies must achieve net-zero emissions by 2050. However, the net-zero emissions 2050 brought the first detailed International Energy Agency (IEA) modelling of what strategy will be required over the next 10 years to achieve net-zero carbon emissions worldwide by 2050 [ 15–17 ].

The global statistics of greenhouse gas emissions have been identified; in 2019, there was a 1% decrease in CO 2 emissions from the power industry; that figure dropped by 7% in 2020 due to the COVID-19 crisis, thus indicating a drop in coal-fired energy generation that is being squeezed by decreasing energy needs, growth of renewables and the shift away from fossil fuels. As a result, in 2020, the energy industry was expected to generate ~13 Gt CO 2 , representing ~40% of total world energy sector emissions related to CO 2 . The annual electricity generation stepped back to pre-crisis levels by 2021, although due to a changing ‘fuel mix’, the CO 2 emissions in the power sector will grow just a little before remaining roughly steady until 2030 [ 15 ].

Therefore, based on the information mentioned above, the advantages of solar energy technology are a renewable and clean energy source that is plentiful, cheaper costs, less maintenance and environmentally friendly, to name but a few. The significance of this paper is to highlight solar energy applications to ensure sustainable development; thus, it is vital to researchers, engineers and customers alike. The article’s primary aim is to raise public awareness and disseminate the culture of solar energy usage in daily life, since moving forward, it is the best. The scope of this paper is as follows. Section 1 represents a summary of the introduction. Section 2 represents a summary of installed capacity and the application of solar energy worldwide. Section 3 presents the role of solar energy in the sustainable development and employment of renewable energy. Section 4 represents the perspective of solar energy. Finally, Section 5 outlines the conclusions and recommendations for future work.

1.1 Installed capacity of solar energy

The history of solar energy can be traced back to the seventh century when mirrors with solar power were used. In 1893, the photovoltaic (PV) effect was discovered; after many decades, scientists developed this technology for electricity generation [ 18 ]. Based on that, after many years of research and development from scientists worldwide, solar energy technology is classified into two key applications: solar thermal and solar PV.

PV systems convert the Sun’s energy into electricity by utilizing solar panels. These PV devices have quickly become the cheapest option for new electricity generation in numerous world locations due to their ubiquitous deployment. For example, during the period from 2010 to 2018, the cost of generating electricity by solar PV plants decreased by 77%. However, solar PV installed capacity progress expanded 100-fold between 2005 and 2018. Consequently, solar PV has emerged as a key component in the low-carbon sustainable energy system required to provide access to affordable and dependable electricity, assisting in fulfilling the Paris climate agreement and in achieving the 2030 SDG targets [ 19 ].

The installed capacity of solar energy worldwide has been rapidly increased to meet energy demands. The installed capacity of PV technology from 2010 to 2020 increased from 40 334 to 709 674 MW, whereas the installed capacity of concentrated solar power (CSP) applications, which was 1266 MW in 2010, after 10 years had increased to 6479 MW. Therefore, solar PV technology has more deployed installations than CSP applications. So, the stand-alone solar PV and large-scale grid-connected PV plants are widely used worldwide and used in space applications. Fig. 1 represents the installation of solar energy worldwide.

Installation capacity of solar energy worldwide [ 20 ].

1.2 Application of solar energy

Energy can be obtained directly from the Sun—so-called solar energy. Globally, there has been growth in solar energy applications, as it can be used to generate electricity, desalinate water and generate heat, etc. The taxonomy of applications of solar energy is as follows: (i) PVs and (ii) CSP. Fig. 2 details the taxonomy of solar energy applications.

The taxonomy of solar energy applications.

Solar cells are devices that convert sunlight directly into electricity; typical semiconductor materials are utilized to form a PV solar cell device. These materials’ characteristics are based on atoms with four electrons in their outer orbit or shell. Semiconductor materials are from the periodic table’s group ‘IV’ or a mixture of groups ‘IV’ and ‘II’, the latter known as ‘II–VI’ semiconductors [ 21 ]. Additionally, a periodic table mixture of elements from groups ‘III’ and ‘V’ can create ‘III–V’ materials [ 22 ].

PV devices, sometimes called solar cells, are electronic devices that convert sunlight into electrical power. PVs are also one of the rapidly growing renewable-energy technologies of today. It is therefore anticipated to play a significant role in the long-term world electricity-generating mixture moving forward.

Solar PV systems can be incorporated to supply electricity on a commercial level or installed in smaller clusters for mini-grids or individual usage. Utilizing PV modules to power mini-grids is a great way to offer electricity to those who do not live close to power-transmission lines, especially in developing countries with abundant solar energy resources. In the most recent decade, the cost of producing PV modules has dropped drastically, giving them not only accessibility but sometimes making them the least expensive energy form. PV arrays have a 30-year lifetime and come in various shades based on the type of material utilized in their production.

The most typical method for solar PV desalination technology that is used for desalinating sea or salty water is electrodialysis (ED). Therefore, solar PV modules are directly connected to the desalination process. This technique employs the direct-current electricity to remove salt from the sea or salty water.

The technology of PV–thermal (PV–T) comprises conventional solar PV modules coupled with a thermal collector mounted on the rear side of the PV module to pre-heat domestic hot water. Accordingly, this enables a larger portion of the incident solar energy on the collector to be converted into beneficial electrical and thermal energy.

A zero-energy building is a building that is designed for zero net energy emissions and emits no carbon dioxide. Building-integrated PV (BIPV) technology is coupled with solar energy sources and devices in buildings that are utilized to supply energy needs. Thus, building-integrated PVs utilizing thermal energy (BIPV/T) incorporate creative technologies such as solar cooling [ 23 ].

A PV water-pumping system is typically used to pump water in rural, isolated and desert areas. The system consists of PV modules to power a water pump to the location of water need. The water-pumping rate depends on many factors such as pumping head, solar intensity, etc.

A PV-powered cathodic protection (CP) system is designed to supply a CP system to control the corrosion of a metal surface. This technique is based on the impressive current acquired from PV solar energy systems and is utilized for burying pipelines, tanks, concrete structures, etc.

Concentrated PV (CPV) technology uses either the refractive or the reflective concentrators to increase sunlight to PV cells [ 24 , 25 ]. High-efficiency solar cells are usually used, consisting of many layers of semiconductor materials that stack on top of each other. This technology has an efficiency of >47%. In addition, the devices produce electricity and the heat can be used for other purposes [ 26 , 27 ].

For CSP systems, the solar rays are concentrated using mirrors in this application. These rays will heat a fluid, resulting in steam used to power a turbine and generate electricity. Large-scale power stations employ CSP to generate electricity. A field of mirrors typically redirect rays to a tall thin tower in a CSP power station. Thus, numerous large flat heliostats (mirrors) are used to track the Sun and concentrate its light onto a receiver in power tower systems, sometimes known as central receivers. The hot fluid could be utilized right away to produce steam or stored for later usage. Another of the great benefits of a CSP power station is that it may be built with molten salts to store heat and generate electricity outside of daylight hours.

Mirrored dishes are used in dish engine systems to focus and concentrate sunlight onto a receiver. The dish assembly tracks the Sun’s movement to capture as much solar energy as possible. The engine includes thin tubes that work outside the four-piston cylinders and it opens into the cylinders containing hydrogen or helium gas. The pistons are driven by the expanding gas. Finally, the pistons drive an electric generator by turning a crankshaft.

A further water-treatment technique, using reverse osmosis, depends on the solar-thermal and using solar concentrated power through the parabolic trough technique. The desalination employs CSP technology that utilizes hybrid integration and thermal storage allows continuous operation and is a cost-effective solution. Solar thermal can be used for domestic purposes such as a dryer. In some countries or societies, the so-called food dehydration is traditionally used to preserve some food materials such as meats, fruits and vegetables.

Sustainable energy development is defined as the development of the energy sector in terms of energy generating, distributing and utilizing that are based on sustainability rules [ 28 ]. Energy systems will significantly impact the environment in both developed and developing countries. Consequently, the global sustainable energy system must optimize efficiency and reduce emissions [ 29 ].

The sustainable development scenario is built based on the economic perspective. It also examines what activities will be required to meet shared long-term climate benefits, clean air and energy access targets. The short-term details are based on the IEA’s sustainable recovery strategy, which aims to promote economies and employment through developing a cleaner and more reliable energy infrastructure [ 15 ]. In addition, sustainable development includes utilizing renewable-energy applications, smart-grid technologies, energy security, and energy pricing, and having a sound energy policy [ 29 ].

The demand-side response can help meet the flexibility requirements in electricity systems by moving demand over time. As a result, the integration of renewable technologies for helping facilitate the peak demand is reduced, system stability is maintained, and total costs and CO 2 emissions are reduced. The demand-side response is currently used mostly in Europe and North America, where it is primarily aimed at huge commercial and industrial electricity customers [ 15 ].

International standards are an essential component of high-quality infrastructure. Establishing legislative convergence, increasing competition and supporting innovation will allow participants to take part in a global world PV market [ 30 ]. Numerous additional countries might benefit from more actively engaging in developing global solar PV standards. The leading countries in solar PV manufacturing and deployment have embraced global standards for PV systems and highly contributed to clean-energy development. Additional assistance and capacity-building to enhance quality infrastructure in developing economies might also help support wider implementation and compliance with international solar PV standards. Thus, support can bring legal requirements and frameworks into consistency and give additional impetus for the trade of secure and high-quality solar PV products [ 19 ].

Continuous trade-led dissemination of solar PV and other renewable technologies will strengthen the national infrastructure. For instance, off-grid solar energy alternatives, such as stand-alone systems and mini-grids, could be easily deployed to assist healthcare facilities in improving their degree of services and powering portable testing sites and vaccination coolers. In addition to helping in the immediate medical crisis, trade-led solar PV adoption could aid in the improving economy from the COVID-19 outbreak, not least by providing jobs in the renewable-energy sector, which are estimated to reach >40 million by 2050 [ 19 ].

The framework for energy sustainability development, by the application of solar energy, is one way to achieve that goal. With the large availability of solar energy resources for PV and CSP energy applications, we can move towards energy sustainability. Fig. 3 illustrates plans for solar energy sustainability.

Framework for solar energy applications in energy sustainability.

The environmental consideration of such applications, including an aspect of the environmental conditions, operating conditions, etc., have been assessed. It is clean, friendly to the environment and also energy-saving. Moreover, this technology has no removable parts, low maintenance procedures and longevity.

Economic and social development are considered by offering job opportunities to the community and providing cheaper energy options. It can also improve people’s income; in turn, living standards will be enhanced. Therefore, energy is paramount, considered to be the most vital element of human life, society’s progress and economic development.

As efforts are made to increase the energy transition towards sustainable energy systems, it is anticipated that the next decade will see a continued booming of solar energy and all clean-energy technology. Scholars worldwide consider research and innovation to be substantial drivers to enhance the potency of such solar application technology.

2.1 Employment from renewable energy

The employment market has also boomed with the deployment of renewable-energy technology. Renewable-energy technology applications have created >12 million jobs worldwide. The solar PV application came as the pioneer, which created >3 million jobs. At the same time, while the solar thermal applications (solar heating and cooling) created >819 000 jobs, the CSP attained >31 000 jobs [ 20 ].

According to the reports, although top markets such as the USA, the EU and China had the highest investment in renewables jobs, other Asian countries have emerged as players in the solar PV panel manufacturers’ industry [ 31 ].

Solar energy employment has offered more employment than other renewable sources. For example, in the developing countries, there was a growth in employment chances in solar applications that powered ‘micro-enterprises’. Hence, it has been significant in eliminating poverty, which is considered the key goal of sustainable energy development. Therefore, solar energy plays a critical part in fulfilling the sustainability targets for a better plant and environment [ 31 , 32 ]. Fig. 4 illustrates distributions of world renewable-energy employment.

World renewable-energy employment [ 20 ].

The world distribution of PV jobs is disseminated across the continents as follows. There was 70% employment in PV applications available in Asia, while 10% is available in North America, 10% available in South America and 10% availability in Europe. Table 1 details the top 10 countries that have relevant jobs in Asia, North America, South America and Europe.

List of the top 10 countries that created jobs in solar PV applications [ 19 , 33 ]

Solar energy investments can meet energy targets and environmental protection by reducing carbon emissions while having no detrimental influence on the country’s development [ 32 , 34 ]. In countries located in the ‘Sunbelt’, there is huge potential for solar energy, where there is a year-round abundance of solar global horizontal irradiation. Consequently, these countries, including the Middle East, Australia, North Africa, China, the USA and Southern Africa, to name a few, have a lot of potential for solar energy technology. The average yearly solar intensity is >2800 kWh/m 2 and the average daily solar intensity is >7.5 kWh/m 2 . Fig. 5 illustrates the optimum areas for global solar irradiation.

World global solar irradiation map [ 35 ].

The distribution of solar radiation and its intensity are two important factors that influence the efficiency of solar PV technology and these two parameters vary among different countries. Therefore, it is essential to realize that some solar energy is wasted since it is not utilized. On the other hand, solar radiation is abundant in several countries, especially in developing ones, which makes it invaluable [ 36 , 37 ].

Worldwide, the PV industry has benefited recently from globalization, which has allowed huge improvements in economies of scale, while vertical integration has created strong value chains: as manufacturers source materials from an increasing number of suppliers, prices have dropped while quality has been maintained. Furthermore, the worldwide incorporated PV solar device market is growing fast, creating opportunities enabling solar energy firms to benefit from significant government help with underwriting, subsides, beneficial trading licences and training of a competent workforce, while the increased rivalry has reinforced the motivation to continue investing in research and development, both public and private [ 19 , 33 ].

The global outbreak of COVID-19 has impacted ‘cross-border supply chains’ and those investors working in the renewable-energy sector. As a result, more diversity of solar PV supply-chain processes may be required in the future to enhance long-term flexibility versus exogenous shocks [ 19 , 33 ].

It is vital to establish a well-functioning quality infrastructure to expand the distribution of solar PV technologies beyond borders and make it easier for new enterprises to enter solar PV value chains. In addition, a strong quality infrastructure system is a significant instrument for assisting local firms in meeting the demands of trade markets. Furthermore, high-quality infrastructure can help reduce associated risks with the worldwide PV project value chain, such as underperforming, inefficient and failing goods, limiting the development, improvement and export of these technologies. Governments worldwide are, at various levels, creating quality infrastructure, including the usage of metrology i.e. the science of measurement and its application, regulations, testing procedures, accreditation, certification and market monitoring [ 33 , 38 ].

The perspective is based on a continuous process of technological advancement and learning. Its speed is determined by its deployment, which varies depending on the scenario [ 39 , 40 ]. The expense trends support policy preferences for low-carbon energy sources, particularly in increased energy-alteration scenarios. Emerging technologies are introduced and implemented as quickly as they ever have been before in energy history [ 15 , 33 ].

The CSP stations have been in use since the early 1980s and are currently found all over the world. The CSP power stations in the USA currently produce >800 MW of electricity yearly, which is sufficient to power ~500 000 houses. New CSP heat-transfer fluids being developed can function at ~1288 o C, which is greater than existing fluids, to improve the efficiency of CSP systems and, as a result, to lower the cost of energy generated using this technology. Thus, as a result, CSP is considered to have a bright future, with the ability to offer large-scale renewable energy that can supplement and soon replace traditional electricity-production technologies [ 41 ]. The DESERTEC project has drawn out the possibility of CSP in the Sahara Desert regions. When completed, this investment project will have the world’s biggest energy-generation capacity through the CSP plant, which aims to transport energy from North Africa to Europe [ 42 , 43 ].

The costs of manufacturing materials for PV devices have recently decreased, which is predicted to compensate for the requirements and increase the globe’s electricity demand [ 44 ]. Solar energy is a renewable, clean and environmentally friendly source of energy. Therefore, solar PV application techniques should be widely utilized. Although PV technology has always been under development for a variety of purposes, the fact that PV solar cells convert the radiant energy from the Sun directly into electrical power means it can be applied in space and in terrestrial applications [ 38 , 45 ].

In one way or another, the whole renewable-energy sector has a benefit over other energy industries. A long-term energy development plan needs an energy source that is inexhaustible, virtually accessible and simple to gather. The Sun rises over the horizon every day around the globe and leaves behind ~108–1018 kWh of energy; consequently, it is more than humanity will ever require to fulfil its desire for electricity [ 46 ].

The technology that converts solar radiation into electricity is well known and utilizes PV cells, which are already in use worldwide. In addition, various solar PV technologies are available today, including hybrid solar cells, inorganic solar cells and organic solar cells. So far, solar PV devices made from silicon have led the solar market; however, these PVs have certain drawbacks, such as expenditure of material, time-consuming production, etc. It is important to mention here the operational challenges of solar energy in that it does not work at night, has less output in cloudy weather and does not work in sandstorm conditions. PV battery storage is widely used to reduce the challenges to gain high reliability. Therefore, attempts have been made to find alternative materials to address these constraints. Currently, this domination is challenged by the evolution of the emerging generation of solar PV devices based on perovskite, organic and organic/inorganic hybrid materials.

This paper highlights the significance of sustainable energy development. Solar energy would help steady energy prices and give numerous social, environmental and economic benefits. This has been indicated by solar energy’s contribution to achieving sustainable development through meeting energy demands, creating jobs and protecting the environment. Hence, a paramount critical component of long-term sustainability should be investigated. Based on the current condition of fossil-fuel resources, which are deemed to be depleting energy sources, finding an innovative technique to deploy clean-energy technology is both essential and expected. Notwithstanding, solar energy has yet to reach maturity in development, especially CSP technology. Also, with growing developments in PV systems, there has been a huge rise in demand for PV technology applications all over the globe. Further work needs to be undertaken to develop energy sustainably and consider other clean energy resources. Moreover, a comprehensive experimental and validation process for such applications is required to develop cleaner energy sources to decarbonize our planet.

The authors declare that they have no known competing financial interests or personal relationships that could have appeared to influence the work reported in this paper.

World Health Organization . COP26 Special Report on Climate Change and Health: The Health Argument for Climate Action. Geneva : World Health Organization , 2021 .

Google Scholar

Google Preview

Hunter DB , Salzman JE , Zaelke D . Glasgow Climate Summit: COP26. UCLA School of Law, Public Law Research Paper No. 22-02. 2021 . doi: org/10.2139/ssrn.4005648 30 March 2022 , date last accessed).

UNFCCC . Paris Agreement-Status of Ratification, United Nations Framework Convention on Climate , 2016 . https://unfccc.int/process/the-paris-agreement/status-of-ratification ( 25 January 2022 , date last accessed).

UNFCCC . The Paris Agreement. Archived from the original on 19 March 2021 . Retrieved 18 September 2021 . https://unfccc.int/process-and-meetings/the-paris-agreement/the-paris-agreement ( 2 February 2022 , date last accessed).

Watts RG. Engineering Response to Climate Change. 2nd edn. Boca Raton, FL : CRC Press , 2013 .

Sorensen B. Renewable Energy: Physics, Engineering, Environmental Impacts, Economics and Planning . 4th edn. London : Academic Press , 2010 .

IEA, IRENA, WMO, WBG, WHO . Tracking SDG7: The Energy Progress Report 2021. Washington, DC : The World Bank , 2021 .

Edenhofer O , Pichs-Madruga R , Sokona Y , et al.  Renewable Energy Sources and Climate Change Mitigation: Special Report of the Intergovernmental Panel on Climate Change. Cambridge : Cambridge University Press , 2011 .

Roaf S , Roaf S , Crichton D , et al.  Adapting buildings and Cities for Climate Change: A 21st Century Survival Guide . 2nd edn. Oxford : Architectural Press , 2009 .

Sims RE . Renewable energy: a response to climate change . Solar Energy , 2004 , 76 : 9 – 17 .

Muneer T. Solar Radiation and Daylight Models. 2nd edn, London : Routledge , 2004 .

Martin J . ‘Green growth’: from a growing eco-industry to economic sustainability . Energy Policy , 2012 , 48 : 13 – 21 .

IRENA. A Roadmap to 2050: International Renewable Energy Agency: Global energy Transformation. Abu Dhabi : IRENA , 2018 .

Kost C , Mayer JN , Thomsen J , et al.  Levelized Cost of Electricity Renewable Energy Technologies. Freiburg : Fraunhofer Institute for Solar Energy Systems (ISE), 2013 , 144 .

Cozzi L , Gould T , Bouckart S , et al.  World Energy Outlook 2020. Paris : International Energy Agency , 2020 .

Ku AY , de Souza A , McRobie J , et al.  Zero-emission public transit could be a catalyst for decarbonization of the transportation and power sectors . Clean Energy , 2021 , 5 : 492 – 504 .

Bouckaert S , Pales AF , McGlade C , et al.  Net Zero by 2050: A Roadmap for the Global Energy Sector. Paris : International Energy Agency , 2021 .

Fraas LM . History of solar cell development . Low-cost Solar Electric Power. 2014 : 1 – 12 . doi: 10.1007/978-3-319-07530-31 .

Gahrens S , Alessandra S , Steinfatt K. Trading Into a Bright Energy Future. The Case for Open, High-Quality Solar Photovoltaic Markets . Abu Dhabi : IRENA , 2021 , 1 – 44 . https://irena.org/-/media/Files/IRENA/Agency/Publication/2021/Jul/IRENA_WTO_Trading_Energy_Future_2021.pdf ( 21 April 2022 , date last accessed).

IRENA . Solar Energy—International Renewable Energy Agency . 2021 . www.irena.org/solar ( 2 February 2022 , date last accessed).

Honsberg C , Bowden S . Sun Position Calculator . 2014 . http://pveducation org/pvcdrom/properties-of-sunlight/sun-position-calculator ( 25 January 2022 , date last accessed).

Green MA , Hishikawa Y , Dunlop ED , et al.  Solar cell efficiency tables (version 52) . Progress in Photovoltaics , 2018 , 26 : 427 – 436 .

Kylili A , Fokaides PA . Investigation of building integrated photovoltaics potential in achieving the zero energy building target . Indoor Built Environment , 2014 , 23 : 92 – 106 .

Maka AO , O’Donovan TS . A review of thermal load and performance characterisation of a high concentrating photovoltaic (HCPV) solar receiver assembly . Solar Energy , 2020 , 206 : 35 – 51 .

Mohamed ET , Maka AO , Mehmood M , et al.  Performance simulation of single and dual-junction GaInP/GaAs tandem solar cells using AMPS-1D . Sustainable Energy Technologies Assessments , 2021 , 44 : 101067 .

Maka AO , O’Donovan TS . Dynamic performance analysis of solar concentrating photovoltaic receiver by coupling of weather data with the thermal-electrical model . Thermal Science Engineering Progress , 2021 , 24 : 100923 .

Maka AO , O’Donovan TS . Transient thermal-electrical performance modelling of solar concentrating photovoltaic (CPV) receiver . Solar Energy , 2020 , 211 : 897 – 907 .

Radovanovic M , Popov S , Dodic S. Sustainable Energy Management. Cambridge, MA : Academic Press , 2012 .

Salvarli MS , Salvarli H . For sustainable development: future trends in renewable energy and enabling technologies . In: Al Al Qubeissi M, El-kharouf A, Soyhan HS (eds). Qubeissi M , El-kharouf A , Soyhan HS (eds). Renewable Energy-Resources, Challenges and Applications . London : IntechOpen , 2020 .

Maka AO , Salem S , Mehmood M . Solar photovoltaic (PV) applications in Libya: challenges, potential, opportunities and future perspectives . Cleaner Engineering Technology , 2021 , 51 : 100267 .

IRENA . Renewable Energy and Jobs—Annual Review 2021, (REJ) . 2021 . https://www.irena.org/publications/2021/Oct/Renewable-Energy-and-Jobs-Annual-Review-2021 ( 2 January 2022 , date last accessed).

Obaideen K , AlMallahi MN , Alami AH , et al.  On the contribution of solar energy to sustainable developments goals: case study on Mohammed bin Rashid Al Maktoum Solar Park . International Journal of Thermofluids , 2021 , 12 : 100123 .

IRENA . International Renewable Energy Agency, Renewable Energy and Jobs—Annual Review 2020. Abu Dhabi : IRENA , 2020 .

Strielkowski W , Civín L , Tarkhanova E , et al.  Renewable energy in the sustainable development of electrical power sector: a review . Energies , 2021 , 14 : 8240 .

Grid-Arendal . Natural Resources—Solar Power (Potential) . 2008 . https://www.grida.no/resources/7308 ( 9 February 2022 , date last accessed).

Kannan N , Vakeesan D . Solar energy for future world: a review . Renewable Sustainable Energy Reviews , 2016 , 62 : 1092 – 1105 .

Löf GO , Duffie JA , Smith CO . World distribution of solar radiation . Solar Energy , 1966 , 10 : 27 – 37 .

Kabir E , Kumar P , Kumar S , et al.  Solar energy: potential and future prospects . Renewable Sustainable Energy Reviews , 2018 , 82 : 894 – 900 .

Johansson TB , Goldemberg J. Energy for Sustainable Development: A Policy Agenda. New York : United Nations Development Programme (UNDP) , 2002 .

Lowe R , Drummond P . Solar, wind and logistic substitution in global energy supply to 2050—barriers and implications . Renewable Sustainable Energy Reviews , 2022 , 153 : 111720 .

Asmelash E , Prakash G. Future of Solar Photovoltaic: Deployment, Investment, Technology, Grid Integration and Socio-economic Aspects . Abu Dhabi : IRENA , 2019 .

Griffiths S . Strategic considerations for deployment of solar photovoltaics in the Middle East and North Africa . Energy Strategy Reviews , 2013 , 2 : 125 – 131 .

Hafner M , Tagliapietra S , El Andaloussi EH . Outlook for Electricity and Renewable Energy in Southern and Eastern Mediterranean Countries. WP4b, Energy and Climate Change Mitigations, MEDPROTechnical Report No. 16/October 2012 . www.medpro-foresight.eu ( 25 January 2022 , date last accessed).

Martí A , Luque A. Next Generation Photovoltaics: High Efficiency Through Full Spectrum Utilization . 1st edn. Boca Raton, FL : CRC Press , 2003 .

Dimroth F , Kurtz S . High-efficiency multijunction solar cells . MRS Bulletin , 2007 , 32 : 230 – 235 .

Kashmir J . Solar Energy for Sustainable Development . 2018 . https://www.dailyexcelsior.com/solar-energy-sustainable-development/ ( 15 January 2022 , date last accessed).

Email alerts

Citing articles via.

• Advertising and Corporate Services

Affiliations

• Online ISSN 2515-396X
• Print ISSN 2515-4230
• Copyright © 2024 National Institute of Clean-and-Low-Carbon Energy
• About Oxford Academic
• Publish journals with us
• University press partners
• What we publish
• New features  
• Open access
• Institutional account management
• Rights and permissions
• Get help with access
• Accessibility
• Advertising
• Media enquiries
• Oxford University Press
• Oxford Languages
• University of Oxford

Oxford University Press is a department of the University of Oxford. It furthers the University's objective of excellence in research, scholarship, and education by publishing worldwide

• Copyright © 2024 Oxford University Press
• Cookie settings
• Cookie policy
• Privacy policy
• Legal notice

This Feature Is Available To Subscribers Only

Sign In or Create an Account

This PDF is available to Subscribers Only

For full access to this pdf, sign in to an existing account, or purchase an annual subscription.

This Is the Future: Essay on Renewable Energy

Today the world population depends on nonrenewable energy resources. With the constantly growing demand for energy, natural gas, coal, and oil get used up and cannot replenish themselves. 

Aside from limited supply, heavy reliance on fossil fuels causes planetary-scale damage. Sea levels are rising. Heat-trapping carbon dioxide increased the warming effect by 45% from 1990 to 2019. The only way to tackle the crisis is to start the transition to renewable energy now. 

What is renewable energy? It is energy that comes from replenishable natural resources like sunlight, wind, thermal energy, moving water, and organic materials. Renewable resources do not run out. They are cost-efficient and renew faster than they are consumed. How does renewable energy save money? It creates new jobs, supports economic growth, and decreases inequitable fossil fuel subsidies. 

At the current rates of production, some fossil fuels will not even last another century. This is why the future depends on reliable and eco-friendly resources. This renewable energy essay examines the types and benefits of renewable energy and its role in creating a sustainable future.

Top 5 Types of Renewable Energy: The Apollo Alliance Rankings

There are many natural resources that can provide people with clean energy. To make a list of the five most booming types of renewable energy on the market today, this energy essay uses data gathered by the Apollo Alliance. It is a project that aims to revolutionize the energy sector of the US with a focus on clean energy. 

The Apollo Alliance unites businesses, community leaders, and environmental experts to support the transition to more sustainable and efficient living. Their expert opinion helped to compile information about the most common and cost-competitive sources of renewable energy. However, if you want to get some more in-depth research, you can entrust it to an essay writer . Here’s a quick overview of renewable energy resources that have a huge potential to substitute fossil fuels. 

Solar Renewable Energy

The most abundant and practically endless resource is solar energy. It can be turned into electricity by photovoltaic systems that convert radiant energy captured from sunlight. Solar farms could generate enough energy for thousands of homes.

An endless supply is the main benefit of solar energy. The rate at which the Earth receives it is 10,000 times greater than people can consume it, as a paper writer points out based on their analysis of research findings. It can substitute fossil fuels and deliver people electricity, hot water, cooling, heat, etc. 

The upfront investment in solar systems is rather expensive. This is one of the primary limitations that prevent businesses and households from switching to this energy source at once. However, the conclusion of solar energy is still favorable. In the long run, it can significantly decrease energy costs. Besides, solar panels are gradually becoming more affordable to manufacture and adopt, even at an individual level. 

Wind Renewable Energy

Another clean energy source is wind. Wind farms use the kinetic energy of wind flow to convert it into electricity. The Appolo Alliance notes that, unlike solar farms, they can’t be placed in any location. To stay cost-competitive, wind farms should operate in windy areas. Although not all countries have the right conditions to use them on a large scale, wind farms might be introduced for some energy diversity. The technical potential for it is still tremendous. 

Wind energy is clean and safe for the environment. It does not pollute the atmosphere with any harmful products compared to nonrenewable energy resources. 

The investment in wind energy is also economically wise. If you examine the cost of this energy resource in an essay on renewable resources, you’ll see that wind farms can deliver electricity at a price lower than nonrenewable resources. Besides, since wind isn’t limited, its cost won’t be influenced by the imbalance of supply and demand.

Geothermal Renewable Energy

Natural renewable resources are all around us, even beneath the ground. Geothermal energy can be produced from the thermal energy from the Earth’s interior. Sometimes heat reaches the surface naturally, for example, in the form of geysers. But it can also be used by geothermal power plants. The Earth’s heat gets captured and converted to steam that turns a turbine. As a result, we get geothermal energy.

This source provides a significant energy supply while having low emissions and no significant footprint on land. A factsheet and essay on renewable resources state that geothermal plants will increase electricity production from 17 billion kWh in 2020 to 49.8 billion kWh in 2050.

However, this method is not without limitations. While writing a renewable resources essay, consider that geothermal energy can be accessed only in certain regions. Geological hotspots are off-limits as they are vulnerable to earthquakes. Yet, the quantity of geothermal resources is likely to grow as technology advances. 

Ocean Renewable Energy

The kinetic and thermal energy of the ocean is a robust resource. Ocean power systems rely on:

• Changes in sea level;
• Wave energy;
• Water surface temperatures;
• The energy released from seawater and freshwater mixing.

Ocean energy is more predictable compared to other resources. As estimated by EPRI, it has the potential to produce 2640 TWh/yr. However, an important point to consider in a renewable energy essay is that the kinetic energy of the ocean varies. Yet, since it is ruled by the moon’s gravity, the resource is plentiful and continues to be attractive for the energy industry. 

Wave energy systems are still developing. The Apollo energy corporation explores many prototypes. It is looking for the most reliable and robust solution that can function in the harsh ocean environment. 

Another limitation of ocean renewable energy is that it may cause disruptions to marine life. Although its emissions are minimal, the system requires large equipment to be installed in the ocean. 

Biomass Renewable Energy

Organic materials like wood and charcoal have been used for heating and lighting for centuries. There are a lot more types of biomass: from trees, cereal straws, and grass to processed waste. All of them can produce bioenergy. 

Biomass can be converted into energy through burning or using methane produced during the natural process of decomposition. In an essay on renewable sources of energy, the opponents of the method point out that biomass energy is associated with carbon dioxide emissions. Yet, the amount of released greenhouse gases is much lower compared to nonrenewable energy use. 

While biomass is a reliable source of energy, it is only suitable for limited applications. If used too extensively, it might lead to disruptions in biodiversity, a negative impact on land use, and deforestation. Still, Apollo energy includes biomass resources that become waste and decompose quickly anyway. These are organic materials like sawdust, chips from sawmills, stems, nut shells, etc. 

What Is the Apollo Alliance?

The Apollo Alliance is a coalition of business leaders, environmental organizations, labor unions, and foundations. They all unite their efforts in a single project to harness clean energy in new, innovative ways. 

Why Apollo? Similarly to President John F. Kennedy’s Apollo Project, Apollo energy is a strong visionary initiative. It is a dare, a challenge. The alliance calls for the integrity of science, research, technology, and the public to revolutionize the energy industry.

The project has a profound message. Apollo energy solutions are not only about the environment or energy. They are about building a new economy. The alliance gives hope to building a secure future for Americans. 

What is the mission of the Apollo Alliance? 

• Achieve energy independence with efficient and limitless resources of renewable energy.
• Pioneer innovation in the energy sector.
• Build education campaigns and communication to inspire new perceptions of energy. 
• Create new jobs.
• Reduce dependence on imported fossil fuels. 
• Build healthier and happier communities. 

The transformation of the industry will lead to planet-scale changes. The Apollo energy corporation can respond to the global environmental crisis and prevent climate change. 

Apollo renewable energy also has the potential to become a catalyst for social change. With more affordable energy and new jobs in the industry, people can bridge the inequality divide and build stronger communities. 

Why Renewable Energy Is Important for the Future

Renewable energy resources have an enormous potential to cover people’s energy needs on a global scale. Unlike fossil fuels, they are available in abundance and generate minimal to no emissions. 

The burning of fossil fuels caused a lot of environmental problems—from carbon dioxide emissions to ocean acidification. Research this issue in more detail with academic assistance from essay writer online . You can use it to write an essay on renewable sources of energy to explain the importance of change and its global impact. 

Despite all the damage people caused to the planet, there’s still hope to mitigate further repercussions. Every renewable energy essay adds to the existing body of knowledge we have today and advances research in the field. Here are the key advantages and disadvantages of alternative energy resources people should keep in mind. 

Advantage of Green Energy

The use of renewable energy resources has a number of benefits for the climate, human well-being, and economy:

• Renewable energy resources have little to no greenhouse gas emissions. Even if we take into account the manufacturing and recycling of the technologies involved, their impact on the environment is significantly lower compared to fossil fuels. 
• Renewable energy promotes self-sufficiency and reduces a country’s dependence on foreign fuel. According to a study, a 1% increase in the use of renewable energy increases economic growth by 0.21%. This gives socio-economic stability.
• Due to a lack of supply of fossil fuels and quick depletion of natural resources, prices for nonrenewable energy keep increasing. In contrast, green energy is limitless and can be produced locally. In the long run, this allows decreasing the cost of energy. 
• Unlike fossil fuels, renewable energy doesn’t emit air pollutants. This positively influences health and quality of life. 
• The emergence of green energy plants creates new jobs. Thus, Apollo energy solutions support the growth of local communities. By 2030, the transition to renewable energy is expected to generate 10.3 million new jobs. 
• Renewable energy allows decentralization of the industry. Communities get their independent sources of energy that are more flexible in terms of distribution. 
• Renewable energy supports equality. It has the potential to make energy more affordable to low-income countries and expand access to energy even in remote and less fortunate neighborhoods. 

Disadvantages of Non-Conventional Energy Sources

No technology is perfect. Renewable energy resources have certain drawbacks too: 

• The production of renewable energy depends on weather conditions. For example, wind farms could be effective only in certain locations where the weather conditions allow it. The weather also makes it so that renewable energy cannot be generated around the clock. 
• The initial cost of renewable energy technology is expensive. Both manufacturing and installation require significant investment. This is another disadvantage of renewable resources. It makes them unaffordable to a lot of businesses and unavailable for widespread individual use. In addition, the return on investment might not be immediate.
• Renewable energy technology takes up a lot of space. It may affect life in the communities where these clean energy farms are installed. They may also cause disruptions to wildlife in the areas. 
• One more limitation a renewable resources essay should consider is the current state of technology. While the potential of renewable energy resources is tremendous, the technology is still in its development phase. Therefore, renewable energy might not substitute fossil fuels overnight. There’s a need for more research, investment, and time to transition to renewable energy completely. Yet, some diversity of energy resources should be introduced as soon as possible. 
• Renewable energy resources have limited emissions, but they are not entirely pollution-free. The manufacturing process of equipment is associated with greenhouse gas emissions while, for example, the lifespan of a wind turbine is only 20 years. 

For high school seniors eyeing a future rich with innovative endeavors in renewable energy or other fields, it's crucial to seek financial support early on. Explore the top 10 scholarships for high school seniors to find the right fit that can propel you into a future where you can contribute to the renewable energy movement and beyond. Through such financial support, the road to making meaningful contributions to a sustainable future becomes a tangible reality.

Renewable energy unlocks the potential for humanity to have clean energy that is available in abundance. It leads us to economic growth, independence, and stability. With green energy, we can also reduce the impact of human activity on the environment and stop climate change before it’s too late. 

So what’s the conclusion of renewable energy? Transitioning to renewable energy resources might be challenging and expensive. However, most experts agree that the advantages of green energy outweigh any drawbacks. Besides, since technology is continuously evolving, we’ll be able to overcome most limitations in no time.

Frequently asked questions

She was flawless! first time using a website like this, I've ordered article review and i totally adored it! grammar punctuation, content - everything was on point

This writer is my go to, because whenever I need someone who I can trust my task to - I hire Joy. She wrote almost every paper for me for the last 2 years

Term paper done up to a highest standard, no revisions, perfect communication. 10s across the board!!!!!!!

I send him instructions and that's it. my paper was done 10 hours later, no stupid questions, he nailed it.

Sometimes I wonder if Michael is secretly a professor because he literally knows everything. HE DID SO WELL THAT MY PROF SHOWED MY PAPER AS AN EXAMPLE. unbelievable, many thanks

You Might Also Like

New Posts to Your Inbox!

Stay in touch

New developments in renewable energy are making headlines and inspiring hope in communities worldwide, from a remote Arctic village working to harness solar and wind power under challenging conditions to a U.S. Air Force base planning an advanced, utility-scale geothermal power system.

As much of the world grapples with mitigating the effects of climate change and global warming, innovation and advancements in renewable energy have emerged as a bright spot. Solar energy, wind energy, hydropower, geothermal energy and biomass energy generation is better for the planet than the burning of fossil fuels including oil, natural gas and coal.

But for all of the advantages of renewable energy, its development and use has disadvantages, too. Let’s take a look at both.

The multiple (and sometimes surprising) advantages of renewable energy

The advantages of renewable energy power sources are wide-ranging, and some are more obvious than others.

Inexhaustible supply

One of the main benefits of renewable energy sources like the sun, wind and water is that they will never run out. In contrast, non-renewable resources are not only finite, but cost more as their availability declines and require more extreme extraction methods with greater environmental impacts.

Carbon-free energy generation

The goal of the clean energy transition is decarbonization . Carbon dioxide emissions reached 11.2 gigatonnes (Gt) in 2022 from oil alone, whereas renewable energy generation emits little to no carbon emissions to power homes, cars and businesses.

A cleaner, healthier environment

The burning of fossil fuels, like coal, releases airborne pollutants such as nitrogen oxide and sulfur dioxide, while the mining of these resources can result in water pollution and damage animal habitats. Using renewable energy in place of fossil fuels can reduce these pollutants and help mitigate risks to human health and natural environments.

Energy independence

Renewable energy provides for stronger energy security by opening up new opportunities for domestic energy production, thereby reducing reliance on foreign-sourced energy supply. For example, since Russia’s invasion of Ukraine, European countries have sought to reduce their imports of Russian oil and gas. In 2023, domestic renewable energy production in Europe rose to account for a record 44% of the EU’s electricity mix while imports from Russia declined, helping build a more stable, resilient power grid.

Less maintenance

For certain types of renewable energy sources, the maintenance and maintenance costs of their infrastructure are minimal. Solar photovoltaic systems, for example, generally don’t have moving parts and can last 25 years or more with little maintenance. Hydroelectric power plants typically have low operating costs and require little maintenance as well, with long-lasting equipment that can remain in operation for decades.

Affordable energy

When it comes to costs, renewable energy sources once compared unfavorably to fossil fuels. But as fossil fuel prices rise renewable energy has emerged as an affordable alternative energy option. An estimated 96% of new utility-scale solar and wind power projects had lower generation costs than new coal and natural gas plants. As more renewable energy resources are integrated into power grids, businesses are also implementing energy management programs to optimize energy usage and reduce overall energy costs.

Job creation

While both clean energy and fossil fuel industries have seen job growth in recent years, growth has been markedly faster in the former. As a result, clean energy roles now account for more than half of the 67 million jobs in the global energy sector. Such growth is fueling demand for additional workers and retraining for existing fossil fuel workers to transition to the renewable energy industry.

Hurdles to a clean transition: the disadvantages to renewable energy

For all the celebrated benefits of renewable energy, the sector has some downsides as well. Understanding the disadvantages of renewable energy can help organizations better plan its deployment. Here are some of the cons of renewable energy projects today:

High upfront costs

Shifting to renewable energy technologies saves money in the long run but component costs and initial costs for set-up can be expensive. For example, small businesses can expect to pay USD 100,000 or more for commercial solar installations, depending on their energy needs. However, legislation for incentives, tax credits and various rebates can help offset these costs.

Location and landmass requirements

Most renewable energy power generation is location dependent—solar farms require unobstructed sunlight, hydropower requires water movement, wind farms require open spaces and traditional geothermal power requires proximity to sources of hot water. In many cases, renewable energy systems require a lot of space—more than traditional power stations. Research conducted by the ICF Climate Center found that large-scale renewable energy installations require 10 times more land than coal- and natural gas-fired power plants.

Production volatility

Renewable electricity generation is vulnerable to weather conditions: solar power is susceptible to cloudy days, hydropower to droughts and wind power to calm days. As such, guaranteeing the amount of energy produced at any given time is a challenge. To help companies adapt to this volatility, solutions like the IBM Environmental Intelligence Suite use sensors, geospatial data , advanced analytics, machine learning , artificial intelligence (AI) and weather data to generate day-ahead wind and solar forecasts .

Storage requirements

Due to the intermittent nature of renewable power, batteries are required to collect energy during peak production periods for distribution in a controlled, consistent manner during periods of low- to non-production. Energy storage systems to support utility-scale applications are costly but technology is being developed to support more affordable long-term storage.

Supply chain limitations

Supply chain hurdles are hindering the installation of renewable energy projects. According to a report by McKinsey, project developers face three main challenges : access to raw materials and rare earth metals amid a projected shortage; access to the talent and machinery necessary; and little supplier diversification for critical components. For example, in the case of polysilicon, a material used in solar panels, 79% of global capacity is concentrated in China, making the solar PV industry vulnerable to disruptions in that country.

Carbon footprint and waste

Although solar and wind power emit no harmful emissions during power generation, the manufacturing, installation and transportation of renewable energy equipment does often produce greenhouse gas emissions . Additionally, waste products are created during asset production process and disposal, with wind turbine blades and solar panels taking up space in landfills.

Optimizing renewable energy sourcing

Businesses in the renewable energy industry or interested in sourcing renewable power can proactively monitor renewable energy trends with the right tools. The IBM Environmental Intelligence Suite uses historical energy generation data, weather data and more to generate high-accuracy energy forecasts for wind and solar assets to inform key decision-making at the enterprise level.

More from Sustainability

How generative ai will revolutionize supply chain .

2 min read - Unlocking the full potential of supply chain management has long been a goal for businesses that seek efficiency, resilience and sustainability. In the age of digital transformation, the integration of advanced technologies like generative artificial intelligence brings a new era of innovation and optimization. AI tools help users address queries and resolve alerts by using supply chain data, and natural language processing helps analysts access inventory, order and shipment data for decision-making.  A recent IBM Institute of Business Value study,…

Streamline CSRD disclosures with new features from IBM Envizi 

2 min read - IBM® is pleased to announce the release of more functionality for IBM Envizi™ as we continue to expand our environmental, social and governance (ESG) reporting product. The new functionality now helps organizations meet the reporting requirements of the EU Corporate Sustainability Reporting Directive (CSRD).   The CSRD mandates that companies must report disclosures and metrics set out in the European Sustainability Reporting Standards (ESRS), which involves gathering and analyzing thousands to tens of thousands of data points. ESRS questions are now embedded…

IBM Tech Now: April 22, 2024

< 1 min read - ​Welcome IBM Tech Now, our video web series featuring the latest and greatest news and announcements in the world of technology. Make sure you subscribe to our YouTube channel to be notified every time a new IBM Tech Now video is published. IBM Tech Now: Episode 96 On this episode, we're covering the following topics: IBM watsonx at the Masters BYOM on watsonx.ai The 2023 IBM Impact Report Stay plugged in You can check out the IBM Blog Announcements for…

IBM Newsletters

Pick your service location

To tailor your experience and provide you with the most relevant information, please select your location from the dropdown menu below:

Canadian energy customers, head to the Canada site for offers and pricing specific to you.

Please verify your service location to access this:

Choose Direct Energy

Direct Energy is dedicated to helping you choose the right energy solutions for your unique needs. Find the perfect fit with our electricity and natural gas plans today.

A smarter, safer home

Home security, automation and efficiency  at your fingertips. Protect your peace of mind with an exclusive offer from our partner Vivint.

25 energy-efficient tips for lower electricity costs

Discover practical, energy-saving tips to reduce electricity costs and increase efficiency at home or business. Knowledge is power, literally!

Download the app

Get the Direct Energy app to easily pay your bill, manage  your account, keep an eye on your usage, refer friends and more. 

• Create an account

What is green/renewable energy?

Direct Energy, October 6, 2023

5 minute read

In order to be an effective consumer of green energy, it's good to know where green energy comes from. And the more you know, the better equipped you'll be to enjoy the benefits and educate others. Let's start with the basics.

How is green energy produced?

Green energy comes in many forms and is defined as any form of energy that limits negative impact on the surrounding environment. This can include energy from sun, wind, earth, water, and more. Through technological advancements like solar PV cells, wind turbines and more, we are able to harness that energy and use it to power our day-to-day needs. As technology and energy storage continue to advance, we will be able to power our entire infrastructure with green, renewable energy sources. With time, this will have a net-zero impact on the environment, resulting in cleaner air and fewer energy shortages.

How can we harness green energy at home?

There are several ways to sustainably produce energy right in your own home. Solar PV cells have become significantly less expensive over the last decade. There are even small-scale wind turbines that can help you install that will help produce clean energy you can use to power your home. 

In some states, you can even sell the energy you produce back for credits that you can use toward your energy costs. Some federal- and state-level programs will also provide rebates that make installing green energy at home even more affordable.

Green energy is:

Clean. Green energy, which includes green electricity, is clean energy. This means it is produced with little-to-no environmental impact and does not dispense greenhouse gases into the air that contribute to global warming, the way fossil fuels do.

Varied. Green energy sources include wind, geo-thermal, hydro, and solar energy. Wind and hydro sources generate energy through the movement of air and water, while geo-thermal and solar sources generate energy through heat. All, however, provide reliable energy and protect the environment.

Renewable. As stated above, green energy sources eliminate the emission of greenhouse gases into the air. These sources are also renewable energy sources - meaning they are not created from finite materials like fossil fuels.

Stable. Green energy's varied forms mean more locations across the planet have the potential to harvest this renewable energy. This means more energy can be collected right here in the United States, making the country less dependent on energy from foreign countries.

Inexpensive. As the demand for green energy continues to grow, the price continues to drop thanks to economics of scale. Consider this: between the years 2010 and 2012 the costs associated with producing energy from wind dropped by 20 percent, and prices have fallen by more than 80 percent since 1980.

Right for you. You've seen the environmental and economic benefits that come from turning your home into a green home. The good news is, those benefits will increase as green energy continues to gain popularity in the market. If you're ready to make the switch to renewable energy sources, see what Direct Energy has to offer.

Related Articles

The history of texas energy deregulation, how to calculate energy efficiency savings, does ductwork go bad, explore the learning center.

Explore our other categories by selecting one from the dropdown menu. 

Amazon Prime on us

Want to enjoy all the shopping, streaming and savings you want with Amazon Prime, just for paying your electricity bill? Get an Amazon Prime membership on us with select plans! 

You might also like…

Utilize the power of choice with electricity deregulation in Texas. Learn about the history, benefits, and more.

Learn how to calculate the energy efficiency of your house and appliances with these simple steps.

The age and condition of your home's AC and furnace ductwork can impact your HVAC system's efficiency.

How should I set my air conditioning fan: auto or on?

Explore the impact of your AC's fan settings on comfort, air quality, and energy efficiency. Discover the balance that suits you.

How to shop for electricity in Texas

Explore your options for electricity in Texas, from choosing providers to understanding plans, rates, and renewable energy possibilities.

How do air conditioners and furnaces work together?

Discover how your heating and cooling systems work together for optimal home comfort. Learn about furnaces and energy efficiency tips.

8 ways to lower the electricity bills in your first apartment

Discover 8 practical strategies to reduce electricity bills in your first apartment. Learn how to create a more cost-effective living space, from energy-efficient appliances to smart usage habits. Start saving on your electricity bills today!

How much energy does my water heater use?

Discover how to calculate your water heater's energy use and learn efficient practices to minimize your bills.

Thunderstorm information

Uncover the electrifying secrets of thunderstorms, their causes, dangers, and the myths surrounding them.

Signing up for Direct Energy is easy!

We offer a wide range of plans and even help you customize them to fit your needs! Shop our plans to find your best fit today.  

Need help placing an order? Texas customers: call us at 1-855-461-1926 Northeast and Midwest customers: Contact us

Questions about your current service? Texas customers: call us at  1-888-305-3828 Northeast and Midwest customers: Contact us

Wisconsin has received a $62.4 million solar energy grant for low-income households

MADISON — Wisconsin will receive a $62.4 million federal grant to help fund solar systems for low- and moderate-income households throughout the state, Gov. Tony Evers' office announced Tuesday.

The announcement comes the day after Earth Day , the holiday inspired by Wisconsin's former governor and U.S. senator, Gaylord Nelson, more than 50 years ago.

"This will help support the important benefits of renewable solar energy for low- and moderate-income households across our state through rooftop residential, multifamily, and community solar projects," Evers said in a statement. "These investments will help Wisconsin build upon our work toward achieving 100 percent carbon-free electricity by 2050 while creating good-paying jobs, reducing reliance on out-of-state energy sources, and lowering energy costs for Wisconsin homeowners and renters."

Here's what to know about the grant.

What is the source of the grant funding?

President Joe Biden on Monday announced that the Environmental Protection Agency would distribute $7 billion in grants through its "Solar for All" grant competition — a component of the federal Inflation Reduction Act's $27 billion "Greenhouse Gas Reduction Fund."

Wisconsin is among 60 states, territories, Tribal governments, municipalities and nonprofits to receive the federal grant money. According to the White House, the program will bring solar power to more than 900,000 households in low-income and disadvantaged communities.

How did Wisconsin secure its grant?

In its application for the grant, the Wisconsin Economic Development Corporation said the solar installation would help prevent nearly 2 million tons of carbon dioxide emissions from harming the state's environment annually. 

"We seek to create an energy system that is renewable and works for all. The grant represents a huge step forward in that effort," said WEDC Secretary and CEO Missy Hughes in a statement.

The average cost in Wisconsin for a 5-kilowatt rooftop system is $14,000 to $19,000 before federal tax credits and local incentives, according to the governor's office.

"To overcome such challenges and provide equitable access to affordable clean energy to low-income households, the Wisconsin Solar for All initiative will leverage private capital to maximize federal Solar for All funding and build a sustainable financial assistance program beyond the initial five-year program timeline," the governor's office said.

How does Wisconsin compare with other states on solar energy?

According to the Solar Energy Industries Association, Wisconsin currently has more than 1,251 megawatts of installed solar statewide, ranking it at 21 of 50 states with the highest use of solar power.

When will the grants start funding solar projects?

WEDC expects to start funding projects later this year or in early 2025.

More: Dane County has been named a nationwide leader in solar power

Jessie Opoien can be reached at [email protected].

Apple ramps up investment in clean energy and water around the world

Adding New Renewable Capacity Around the World

Advancing Water Resilience Through Nature-Based Solutions

Accelerating Progress Through Green Investments

Text of this article

April 17, 2024

Together, Apple and suppliers are supporting over 18 gigawatts of clean energy and delivering billions of gallons in water benefits and savings

Apple today announced new progress to expand clean energy around the world and advance momentum toward Apple 2030, the company’s bold goal to be carbon neutral across its entire value chain by the end of this decade. More than 18 gigawatts of clean electricity now power Apple’s global operations and manufacturing supply chain, more than triple the amount in 2020. Apple is making new investments in solar power in the U.S. and Europe to help address the electricity customers use to charge and power their Apple devices.

As part of its broader environmental efforts, Apple also advanced progress toward another ambitious 2030 goal: to replenish 100 percent of the fresh water used in corporate operations in high-stress locations. This includes launching new partnerships to deliver nearly 7 billion gallons in water benefits — from restoring aquifers and rivers, to funding access to drinking water — over the next 20 years. As with clean energy, Apple has extended its commitment to clean water across the entire supply chain: Together, Apple suppliers saved over 12 billion gallons of fresh water last year, for a total of 76 billion gallons in water savings since the company launched its Supplier Clean Water Program in 2013.

“Clean energy and water are foundational to healthy communities and essential building blocks for a responsible business,” said Lisa Jackson, Apple’s vice president of Environment, Policy, and Social Initiatives. “We’re racing toward our ambitious Apple 2030 climate goal while taking on the long-term work to transform electrical grids and restore watersheds to build a cleaner future for all.”

Electricity — both to manufacture Apple products and to charge and power them — makes up the largest portion of Apple’s comprehensive carbon footprint. As part of Apple 2030, the company has called on its global suppliers to use clean electricity and become carbon neutral across all their Apple-related operations. Over   320 suppliers — representing 95 percent of Apple’s direct manufacturing spend — have led the way in the transition so far, resulting in 16.5 gigawatts of renewable energy online in Apple’s supply chain today. This generated over 25.5 million megawatt-hours of clean energy across the supply chain last year, avoiding over 18.5 million metric tons of carbon emissions.

To address the greenhouse gas emissions associated with customers using their devices, Apple has pledged to match every watt of charging electricity with clean electricity by 2030, including through large-scale investments in new renewable energy in markets around the world. This is part of a broader strategy to minimize emissions from the use of Apple products through efficiency improvements, engaging with customers around opportunities to decarbonize the grid, and building clean electricity projects that maximize carbon reductions and social impact. In the U.S., Apple is investing in a portfolio of solar projects across Michigan, with construction underway to bring 132 megawatts of clean energy online later this year. In Spain, Apple has partnered with international solar development platform ib vogt on an investment that will generate 105 megawatts of solar power when the project comes online by the end of 2024.

To address its growing corporate operations in India, Apple has also embarked on a joint venture with leading renewable developer CleanMax to invest in a portfolio of six rooftop solar projects with a total size of 14.4 megawatts. The added capacity provides a local solution to power Apple’s offices, its two retail stores in the country, and other operations in India. Apple first achieved 100 percent renewable energy for its global corporate operations in 2018.

Apple’s commitment to renewable energy has unlocked new capacity in markets around the world. In 2018, Apple took an innovative approach to connect 12 of its suppliers operating in China with renewable energy sources through the China Clean Energy Fund. The Fund has now exceeded its goal, with investments resulting in over 1 gigawatt of new wind and solar projects in China across 14 provinces. In aggregate, these projects are expected to deliver over 2,400 gigawatt-hours of renewable energy each year, equivalent to the residential power consumption of over 2.5 million people in China.

Apple aims to advance water security everywhere its business reaches through collaboration across the manufacturing supply chain and innovative long-term partnerships to restore ecosystems, address community water needs, and improve climate resilience of watersheds. Since water impacts are felt locally, Apple has initiated fresh water replenishment work in some of the highest-stress locations where the company operates — including Northern and Southern California, Arizona’s Colorado River Basin, and the Indian states of Telangana and Maharashtra. Modeled after the company’s approach to renewable energy procurement, Apple is pursuing innovative strategies and long-term contracts aimed at delivering water benefits and savings across entire watersheds. Since 2023, Apple has so far committed over $8 million to replenishing fresh water in high-stress watersheds. The projects announced today are expected to deliver a combined 6.9 billion gallons of water benefits over the next two decades.

In Northern California, Apple is working with River Partners to restore the natural function of the flood plain on 750 acres where the Sacramento River, Feather River, and Butte Creek meet. This confluence of waterways — the largest in California — offers a critical resting point for native Chinook salmon along their path to the Pacific Ocean. Restoring the area will involve planting hundreds of thousands of native plants and reconnecting the vast historic flood plain, making the region and downstream communities more resilient to climate-driven flooding. Apple’s investment is expected to leverage nearly 5 billion gallons of freshwater benefits over 20 years by significantly reducing water demand on the property and encouraging healthy flood patterns to recharge underground aquifers. The restoration of Dos Rios Norte is also funded by the California Department of Fish and Wildlife, the California Natural Resources Agency, the California Wildlife Conservation Board, and the U.S. Bureau of Reclamation.

In the greater Phoenix area, home to Apple’s Mesa data center, Apple is working with Salt River Project (SRP) to protect approximately 30,000 acres of forest at severe risk of wildfire. With a 10-year plan to strategically thin forests in the Colorado River Basin, the project will help protect the watershed from being devastated by wildfires and ensure the upstream reservoir can continue to support local communities. Apple’s investment — the largest investment with SRP’s Resilient Water and Forest Initiative — is expected to deliver nearly 2 billion gallons of water benefits in the area.

Last year, Apple achieved its target for 100 percent water replenishment for the company’s corporate operations in India through its ongoing work with Uptime Catalyst Facility. In 2023, Apple’s support provided 23 million gallons of clean, affordable drinking water to communities from over 300 water kiosks run by local entrepreneurs in the innovative performance-based program. Progress in another critical region — Southern California — continues with a project to remove the invasive Arundo donax cane species in the Los Angeles River Watershed, saving 21 million gallons of water annually.

In addition to pursuing watershed restoration and other nature-based replenishment solutions in high-stress areas, Apple is committed to smart water stewardship across the business. In 2021, Apple’s data center in Prineville, Oregon, became the first-ever data center certified to the Alliance for Water Stewardship (AWS) International Water Stewardship Standard, a trusted global framework for measuring responsible water stewardship. Since then, Apple has certified four additional data centers to the Standard and supported 20 supplier sites in achieving certification as well. In the past year, seven supplier sites in southern India and over 20 supplier sites near Shanghai and Suzhou in China have participated in water stewardship training with AWS and others in the industry.

In the U.S. and around the world, Apple’s Green Bonds have also helped make these new investments possible. Last year, Apple allocated proceeds from its 2019 Green Bond toward new clean energy projects like the new solar projects in Michigan and the IP Radian Solar project in Texas, support for the Supplier Clean Energy Program, and investments in high-quality carbon removal through the Restore Fund. Since 2016, Apple has issued a total of $4.7 billion in Green Bonds, with approximately $3.4 billion allocated to date.

For more information on Apple’s Green Bond efforts, visit investor.apple.com/Apple_GreenBond_Report . This year’s annual impact report covers the cumulative allocation of Apple’s 2019 Green Bond proceeds to environmental projects that incurred spend between September 29, 2019, and September 30, 2023 — Apple’s 2023, 2022, 2021, and 2020 fiscal years. Sustainalytics provided a second-party opinion on the selected projects, and Ernst & Young LLP provided an attestation report on the spend.

Press Contacts

Sean Redding

[email protected]

Chloe Sweet

[email protected]

Apple Media Helpline

[email protected]

Images in this article

Accenture: Human-Centric AI Transforms the Energy Industry

The philosophy ‘human by design’ centres around an approach to technology development where the primary focus is on enhancing human potential and experience, rather than solely optimising efficiency or automating tasks. 

Data from consultants Accenture says 93% of executives in the energy industry believe making technology more human will massively expand the opportunities not only across the energy landscape but in a variety of industries. As well as this, 95% agree that, with technological advancements evolving rapidly , innovating with purpose has never been more important for organisations.

Emmanuel Viale, Managing Director at Accenture, has worked for the firm for more than 25 years and oversees the Technology Innovation organisation in Europe. Leading R&D activities with a particular focus on identifying, incubating, applying and delivering applications of innovative and emerging technologies, he has had a front-row seat to — and a hand in — how technology is driving innovation across the energy space .

“Technology is no longer just a tool to automate or optimise,” he said in a blog post.

“It enhances human potential. Human by Design means we no longer develop technology to fully replace humans. We don’t design technology that ignores the human touch, the user experience or human ingenuity. Instead, the human dimension is at the heart of the technology we build.”

How is AI adding a human touch to the energy industry?

Emmanuel’s findings put forward a case for how by adopting a human by design approach. Energy companies create new experiences for their customers and employees such as AI-based agents to help resolve fuel card queries or discovering new chemical compounds from hydrocarbons. 

With AI able to play a role in the likes of exploration and production, in refineries and to ensure compliance and health and safety measures are met — to name a few — there’s no doubt it is having a positive impact on the energy space. But one point Emmanuel drives home is that virtual elements need human guidance.

“Appropriate human guidance and oversight is critical because there are risks to using AI. Gen AI suffers from hallucinations,” he added.

“The quality of a recommendation is only as good as the quality of the data, the data sources used, how the data is extracted, the knowledge graph and the recommendation engine.

“A human must be in place to assess Gen AI’s recommendations and must be appropriately trained to recognise how that recommendation was generated.”

One way in which this can be executed is through the use of digital twins, a virtual model of a physical object. This is an approach frequently used industry-wide, particularly with the simulation of hazardous working environments or places difficult to reach, like offshore wind turbines.

However, Emmanuel shares how nowadays, digital twins are as much about stimulation as they are simulation.

“They enable a more immersive training experience for staff and improve the effectiveness of health and safety before anyone sets foot in a hazardous site,” he explained. “ Not only do we remove humans from dangerous inspections, we can more accurately identify or predict issues.”

As technology advancements continue to provide results and the innovation behind it ensures it enables future excellence — some which may still not be comprehensible — it’s important not to forget the human element, and further from this, how placing humans at the centre of technology development is integral, especially as it borne from humans in the first place.

*******************

Make sure you check out the latest edition of Energy Digital Magazine and also sign up to our global conference series - Sustainability LIVE 2024 .

Energy Digital is a BizClik brand.

• Top 10: Infrastructure Projects Sustainability
• Honeywell Hydrocracking Tech Revolutionises SAF Production Sustainability
• Behind the Energy Industry’s Battle as Scam Calls Rise Utilities
• Q&A with ESS’ Director of Europe Alan Greenshields Sustainability

Featured Articles

How Siemens Gamesa Became a Global Wind Power Leader

One of the world’s largest wind companies, Siemens Gamesa played a major role in the early years of electricity and is now a leader in the renewable space …

Earth Day 2024: Renewable Energy Key To Sustainable Future

Celebrated annually on 22 April, Earth Day 2024’s main theme centres around ‘People vs Plastics’ but also looks at sustainability as a whole …

What's Apple’s Promise on Clean Energy and Water Investment?

Tech giant Apple is working to increase its sustainable output, supporting more than 18GW of clean energy use & billions of gallons in water savings …

Data Centre Demand Putting Pressure on Energy Capabilities

Q&A with Hitachi Energy’s EVP & Head of North America

OMV Takes Strides in Energy Efficiency & Emissions Reduction

• Q&A with RAIN Alliance President and CEO Aileen Ryan
• Who is Greg Joiner, the new Head of Shell Energy?
• Watershed Workshop at Sustainability LIVE: Net Zero
• Capgemini Invent Workshop at Sustainability LIVE: Net Zero
• Energy Highlights from Sustainability LIVE: Net Zero

Wall Street finds a back door into the AI stock boom as energy demand soars: utilities

Investors looking for a unique way into the stock market’s artificial intelligence boom are finding an intriguing bank shot in what’s traditionally the most boring corner of the equities universe: utilities.

AI is the buzzword these days, with everyone from chipmakers to computer equipment manufacturers to car companies trying to paint themselves in its hopeful colors. It’s also driving the latest stock market rally, as investors saw this past week.

On Thursday, Meta Platforms Inc. shares had their worst performance since October 2022 after the company said it would spend far more than expected on  developing AI . Then on Friday, Google parent Alphabet Inc. soared past  $2 trillion in market valuation  while Microsoft Corp.’s stock also gained after the firms  showed progress on AI  in their quarterly results.

But here’s the thing about AI technology: It requires an enormous amount of energy to develop and run. And that’s where utilities come in.

“Power demand from data centers has already been humongous, then came the AI hype and the need for power skyrocketed,” said Manju Naglapur, senior vice president and general manager for cloud, applications and infrastructure solutions at Unisys Corp. “With all the money spent on data centers, the power consumption will increase massively.”

The S&P 500 Index’s utilities sector fell 10% in 2023, its worst year since 2008, making it the weakest group in the equities benchmark, which soared 24% overall. That wasn’t exactly a shock considering the companies tend to do poorly during periods of persistently high interest rates.

The stocks have recovered somewhat in 2024, rising 4.4% as cost controls offset higher refinancing expenses and record capital spending. But the biggest change in sentiment for utilities is the hope for surging demand from the new power-sucking data centers required for AI’s expansion.

Biggest Driver

“The AI narrative is capturing the biggest amount of investor interest,” said Ryan Levine, who heads utilities coverage at Citigroup Inc. “It has the potential to be the biggest driver of the industry.”

Across the US, utilities are preparing for historic increases in electricity demand led by data centers and AI. Even outside Data Center Alley in Northern Virginia, where Dominion Energy Inc. temporarily paused new data center connections in 2022 due to grid constraints, the companies are planning new power plants and transmission lines. 

Artificial intelligence is poised to help drive a  900% jump in power demand  from data centers in the Chicago area, which will potentially require as much electricity as around four nuclear power plants can produce, Exelon Corp. Chief Executive Officer Calvin Butler said recently. Southern Co. predicts its electricity sales will rise to 6% annual growth with about 80% coming from data centers. 

This explains why Goldman Sachs Group Inc. set up two investment baskets — Power Up America and Data Center Equipment — for clients seeking alternative ways to play the coming AI explosion. While the bank doesn’t disclose the stocks in its baskets, it’s picking companies based on four categories: unregulated and regulated utilities, smart-grid infrastructure and power-generating raw materials. 

“We consider these themes, along with Goldman’s Broad AI basket, to be the most popular in the next few years,” Faris Mourad, the firm’s vice president of US custom baskets, said in a phone interview.

So far this year, the Power Up basket has soared almost 28% and the Data Center Equipment basket is up more than 18%. Those are some lofty numbers considering the usually high-flying S&P 500 tech sector has gained just 8.3% in 2024, and communication services, which includes social media firms, is the best performing group in the index with a 17% rise. 

Meanwhile, Mourad expects Power Up America basket’s 2024 year-end earnings to be 21% higher than what was originally forecast in January 2023. And he sees more gains ahead.

Expanding Sources

Energy availability is a key consideration when data center operators decide where to build. Typically, they go to a local utility to discuss how much power they need, and then the utility seeks approval to build a new plant or buy electricity from third parties. For example, Georgia Power, the largest subsidiary of utility holding company Southern, recently won approval from the Georgia Public Service Commission to expand its capacity by 1.4 gigawatts to meet demand from data centers and other businesses.

“We’re recommending buying Southern Co. on this thesis,” Citigroup’s Levine said. 

Access to renewable power sources also is an advantage. Aaron Dunn, co-head of value equity and portfolio manager at Morgan Stanley Investment Management, likes NextEra Energy Inc. because it builds renewable generation for its own utility unit and develops renewables for others. 

“We believe renewables and storage are a key enabler to help meet this increased demand” NextEra CEO John Ketchum said during the company’s first-quarter earnings call on Tuesday. “The U.S. renewables and storage market opportunity has the potential to be 3x bigger over the next seven years compared to the last seven.”

With data center developers looking for inexpensive locations, Dunn expects the Midwest to become a hub of activity since land is cheaper than in other parts of the country. “That also benefits a company like CMS Energy Corp., which operates out of Michigan,” he said. 

Indeed, CMS said on its earnings call Thursday that it signed a contract for a new 230-megawatt data center and has other companies looking to build in Michigan.

Of course, all of this demand can only benefit utilities if they can produce the electricity to meet it. Many energy experts are concerned that the US power grid isn’t prepared to handle the wave coming its way. And that has some investors turning to the companies that will be brought in to strengthen the grid so utilities can adapt to the new high-energy environment.

“This is going to be a real challenge for traditional utilities,” said Walter Todd, chief investment officer at Greenwood Capital Associates, which owns stocks like Eaton Corp. and Hubbell Inc. “The real beneficiaries of this data center electricity usage are those that will benefit from money spent to upgrade the grid.”

Latest in Tech

• 0 minutes ago

Japan has had so many bear attacks in the past year it’s turning to AI to act as a warning system

Outdated laws prevent gig economy workers from getting benefits. This pilot program shows the path forward

Bumble, the dating app where women make the first move, is rolling out a feature where men get an ‘opening move’

Never complain, but do explain: How to handle job tasks in the hiring process, whether Gen Z is involved or not

For AI startups, a billion-dollar dilemma: Why lofty valuations could be a hurdle in the race for talent

For an AI startup, a high valuation is good news. Right?

Most popular.

Gen Z job seeker refused to do 90-minute task because it ‘looked like a lot of work’—now the CEO who complained about it is being slammed

Furious Mexican farmers are ripping out water pumps for avocado orchards and berry fields, risking cartel reprisal

Elon Musk publicly dumped California for Texas—now Golden State customers are getting revenge, dumping Tesla in droves

Elon Musk reportedly sacked Tesla’s entire Supercharger team, including his top female manager

The 5 best supplements for healthy aging, according to a longevity expert

Exclusive: Ikea is rolling out its third round of price cuts in a year across thousands of products as it eases shoppers’ inflation pain