Diversification Into Renewable Energy Chronicles – How About Now?

solar, renewable energy diversification

Source: U.S. DOE

This was the first of a series from my blog in 2016 on the need for major fossil fuel, electric utilities and other entities diversification into renewables and the “electrify everything” energy transition. Quickly curtailing climate change demands low carbon energy generation.

In my opinion, the incumbent brown fuel and their associated industries are a key part of rapidly achieving a low carbon future. But the challenges are daunting – timing of transition while satisfying investors, new business model risk, margin parity, and cultural changes to name a few.

The most immediate question is whether the low carbon energy transition is happening now and quickly across the globe or will mirror complete transition as with the oil industry. As an example, ” . . . renewables are growing around three times faster (20 per cent a year versus 7 per cent for oil and gas) than in previous energy transitions at a comparable stage.” Trusted Sources report. 

Given the scientific imperative that supports the Paris agreements goals of a near complete low carbon transition of energy, transportation, agriculture and industry by 2050, the mechanics may already be in gear without direct regulatory guidance.

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