The clean energy business is booming
THE pursuit of clean energy is a major agenda for the world. Energy choice is, after all, an important determinant of what our future will look like. Make the wrong choice and the world may even be doomed.
Most would agree that one major risk to our future is the threat of climate change. Energy features prominently as a key contributor. We can therefore take comfort in the fact most countries agreed to fight climate change – 197 signed the Paris Agreement on Climate Change.
The promises are assuring but delivering is the challenge.
Already, we hear negative signals from a leading climate change-impacting country, the United States. In terms of per capita emission of climate-distorting carbon, the US is without doubt in the lead.
The latest we hear is that the administration of President Donald Trump is highly sceptical about climate change. In fact, climate change is not among its priorities,
and this is definitely not encouraging.
On the other hand, the
next biggest economy in the world, China, seems to be doing more to tackle climate change even though its per capita carbon emission is still much lower compared to the US. It has already ventured into many carbon-curbing
initiatives.
Many agree a key solution lies in moving from fossil fuels to renewable sources such as solar and wind. Such a move will not only lead to a reduction in greenhouse gas emissions, but will also change the lives of 1.2 billion people who are still not connected to electrical grids. There will also be new jobs and commercial opportunities.
This is a dynamic and fast-growing sector of the global economy. The 2017 report by the United Nations Environment Programme (Unep) shows encouraging signs.
One is the increasing support from private investors, which continued in 2016. Investment in renewable energy capacity was roughly double that of fossil fuel generation for the fifth year in a row.
The cost of clean technology continues to fall. Average capital expenditure per megawatt fell by over 10 per cent for solar photovoltaics and wind. This partly explains why private investors’ interest has been on the rise.
India, another big economy, has also taken the resolve to expand its investment in renewable energy. And private investors are taking the lead.
The most hopeful sign in 2016 for the future greening of the global electricity system, according to the UNEP report, was a succession of winning bids for solar and wind power generation in auctions around the world.
Prof Ahamd Ibrahim
Academy of Sciences Malaysia
The Star/ANN
