Solar and wind power is thriving despite the low oil price
Thursday , 8 December 2016

Solar and wind power is thriving despite the low oil price

The renewable energy market is booming today, even if the oil has reached a price of only $32 per barrel.

Clean energy is becoming more interesting among investors this year, and this foreshadows the beginning of an era of massive development for wind and solar power all over the world.

The trend started last year (2015), when the new installations of renewable power capacity attracted $329 billion in global investments, representing 57 GW of solar and 64 GW of wind power capacity installed.

The investments made to increase the clean power generation capacity represented an increase of almost 30% compared with the previous year, 2014.

Sensing the danger represented by a massive development of the renewable energy sector in the world, the oil industry tries to maintain the oil barrel at a very affordable level in order to somehow reduce the booming effect produced by the clean energy revolution.

The most investments made to increase the clean energy generation capacity were made in countries like the U.S., China, India and Latin America.

Solar and wind power becomes competitive in many countries around the world, but not with the oil, instead they can compete with the natural gas that is used by power plants to produce electricity.

Despite the low price of natural gas, the new solar and wind installations accounted for 60% in the U.S. in 2015, and for this year is estimated to increase to 70%.

The agreement on climate change signed at the Paris summit in December, 2015, means a reduction of the greenhouse gas emissions released into the atmosphere, which can be achieved only if we start using less fossil fuels, while we increase the renewable energy generation capacity at global scale.

Another trend shows that the use of coal in the world is slowly diminishing even if coal has a pretty attractive price for the investors.

The worldwide support for the development of the renewable energy sector is extremely important because it shows a global interest to create a cleaner and healthier future for us and the future generations.