The opportunity of renewable energy

The opportunity of renewable energy

Tackling global warming while providingclean and affordable energy to the world’s population is one of the biggest challenges our generation faces.

It also makes renewable energy one of this century's most significant investment opportunities.

Several facts lead to this obvious conclusion:

  1. The world's population is increasing. It's already reached 7 billion and is estimated to increase way above 10 billion by 2100.
  2. The majority of us consume just a fraction of theenergy,compared tothe amount whichpeople in developed countries consume. The link between energy consumption per capita and GDP per capita is strong. Many world regions are in a development stage that requires significantly higher energy consumption to further grow their GDP.
  3. Global warming is a threat that is not easy to tackle, especially with ever rising energy consumption per capita coupled with population increase. However, if we fail here, the next generation will have to paya very high price for it.

It's very obvious that clean and affordable energy has to be the answer. The problem, however, can be expressed as:how do we transform our primary energy sources (wind, solar or chemical energy stored in biomass etc.) so they can be used byconsumersin the most cost-efficientway while fulfilling the several constraints of being sustainable, carbon free and reliable.

The renewable energy industry has long been wrestling withhow to turn the primary energy sources into electricity. Certain technologies have to be in place for such energy transformation, as well as for transmission to the end consumers. Energy transformations happen in power plants, while the transfer of electricity is based on transmission networks.

However, both these generation and transmission facilities are very capital intensive.They will require huge amounts of capital to beinvested in renewable energy throughout the world in the coming decades.

In the Hub, Blue Yellow will be presenting a series of articles focused on investing in renewable energies. We will show why the cost-efficient channelling of capital to the projects is as importantas the technology itself.

Thisis Blue Yellow's mission. We want to improve the way capital is invested in renewable energy. To do this, we are digitalising the investment process. Our desire is to make it simple, transparent and low cost. The potential for renewable energy investment is massive. But there is so much to be done. So many projects could be made bankable, and so much capital could be used smartly, to achieve very interesting returns on the investment.