The Economic Advantages of Investing in Renewable Energy

Renewable energy is one of the fastest-growing sectors in the global economy. The transition to renewable energy sources has become a top priority for governments, businesses, and individuals alike. The reasons for this are many, but primarily it’s because renewable energy is not only good for the environment, but it also makes good economic sense.

Job Creation

Investing in renewable energy creates jobs. Renewable energy technologies require specialized skills, and as such, the sector is a significant job creator. According to a report by the International Renewable Energy Agency (IRENA), renewable energy employed 11 million people worldwide in 2018. The report also projects that the number of jobs in the sector could reach 28 million by 2050.

Cost Reduction

Renewable energy technologies are becoming more efficient and cost-competitive. The cost of renewable energy has been declining steadily over the years, making it more affordable for consumers and businesses alike. In some countries, renewable energy is already cheaper than fossil fuels. For instance, in 2019, the cost of solar power dropped to US$0.02 per kilowatt-hour (kWh) in some parts of the world, making it cheaper than coal.

Energy Security

Investing in renewable energy sources is a way to reduce dependence on imported fossil fuels. Renewable energy sources are domestically available and can provide energy security for countries that depend on imported fossil fuels. This is particularly important in developing countries that have limited access to traditional energy sources.

Environmental Sustainability

Renewable energy sources are environmentally sustainable. They emit fewer greenhouse gases, which contribute to climate change, than fossil fuels. Renewable energy technologies are also not associated with environmental disasters such as oil spills.

Conclusion

Investing in renewable energy offers significant economic benefits. It creates jobs, reduces energy costs, provides energy security, and is environmentally sustainable. As such, governments, businesses, and individuals should continue to invest in renewable energy technologies to ensure a sustainable future.

Sources

• International Renewable Energy Agency (IRENA) (2019) Renewable Energy and Jobs – Annual Review 2019 [online] Available at: https://www.irena.org/publications/2019/May/Renewable-Energy-and-Jobs-Annual-Review-2019 [Accessed 27 July 2021].
• International Energy Agency (IEA) (2020) Renewables 2020 [online] Available at: https://www.iea.org/reports/renewables-2020 [Accessed 27 July 2021].