The renewable energy market has experienced a dramatic shift in the last decade. While it is still a relatively small portion of the global energy industry, it is fast becoming the driving force behind the world’s growing demand for clean energy.
Solar and wind power are the biggest drivers of the renewable energy revolution. Their rapid growth has led to an increase in jobs in the field. They also decrease air pollution and carbon emissions. These technologies are expected to continue to make significant inroads in years to come.
One report from the International Energy Agency (IEA) estimates that solar and wind will account for 60% of the predicted growth in renewables. With continued technological advances, the production costs of renewables will continue to decline.
Using renewable energy will reduce the effects of climate change, while improving air quality in cities. Additionally, a switch to renewables can stabilize the energy sector. In the United States, the Office of Energy Efficiency and Renewable Energy projects that electricity prices will not rise through 2035.
Despite these promising changes, many countries are still reluctant to embrace renewables. However, there are ways governments can help accelerate the transition. For example, tax credits for low-emission cars and financial penalties for using fossil fuels may speed up the transition.
Another way to accelerate the switch is through private investment. Companies can work to develop new technologies faster. As production facilities increase, economies of scale will improve the economics of the technology. This will result in less expensive renewables for consumers.