Humans have always relied on fossil fuels for their energy requirements. The inability of fossil fuels to keep up with increasing fuel demand is leading to fuel inflation. Investors are increasingly thinking about investing in renewable energy for two obvious reasons. Firstly, fossil fuels are becoming more and more unaffordable. And secondly, the uncontrolled consumption of fossil fuels by mankind has severely damaged the planet. Renewable energy has the potential to meet our energy requirements while keeping our world clean and green. To know about renewable energy click here.
Renewable Energy-A Savior
Clean energy stocks are gaining the attention of several significant world economies, e.g., China. For decades, China had been a strong proponent of investing in non-renewable energy stocks. China has a massive population with which come the high energy requirements. For many years, China has actively financed coal-energy projects. The figures report that 70% of the total energy is funneled through coal consumption. Statistics also report heavy investments in coal mining in 2017 and 2018. However, there has been noticed a major change in China’s economic policy in the last decade. The difference is gradual but consistent, and the whole world is looking forward to it.
The various economic investments in the renewable energy sector point towards the promising role of China in making this Earth cleaner and greener. China is leading all other nations globally, even the USA, in the growth graph of renewable energy investments. Currently, China has the world’s largest installed wind, hydro, and solar power energy unit. China has signed a pledge to achieve the “Zero Carbon” level by 2060. Therefore, China is increasingly investing in the hydropower and wind power sector. The renewable energy sector of China is growing faster than the nuclear and fossil energy sectors.
China is the second leading economy in the world. However, the disinterest of America in clean energy stocks has opened doors for China to become the leading economy of the world. One pushing factor for China is its population and ever-increasing energy demand. Even with wide-scale investments across the country, the renewable energy sector only met 25% of energy demand in 2019.
Secondly, the refusal of the USA to be a part of the Paris Climate Accords has shifted all the limelight to China. Simon Nicholas-an analyst for the Institute of Energy Economics and Financial Analysis, commented on the incline of America towards renewable energy. He stated that America is not interested in investing in renewable energy, even domestically. China truly understands its position as a global investor and actively paves roads for future investments. For instance, the infamous “Belt & Road Initiative” holds a promising potential for the growth of the renewable energy sector.
A Potential Financer
The dream of China of a greener Earth is not only limited to the country’s boundaries. China actively participates in investing in renewable energy across the world. For instance, the world’s highest-altitude solar farm in Puna Jujena Plateau of Argentina is operating on the funds of China. It is located at 13000 ft from sea level. Another example lies across the Rift Valley of Kenya, where an electrical substation has been installed. It will act as a bridge between Olkaria Geothermal Plant and the town of Nairobi to supply clean energy.
China has also actively invested in wind energy in Moray East. Located 14 miles from Scotland, it is expected to attain the world’s largest wind farm status. With all these investments, China has rebranded itself as the strongest proponent of clean energy. Revisiting the last decade’s energy investments of China reveals the exceptional global performance of China. It has surpassed investments made by all other countries in 9 out of 10 years. It has emerged as a prominent investor in turbines, batteries, electric vehicles, and solar panels.
Future Investment Plans
One of the current plans in the economic diaries of China is to develop devices to store energy. In the national policy document on energy storage released in 2017, China clearly emphasized creating safer and cheaper batteries. It includes both lithium-ion batteries and station battery systems which work in conjuncture with wind and solar energy. The city of Dalian is one example where intense energy needs in winters press on the market for storage batteries. To meet the town’s energy needs, Rongke Power has launched a 400MWh energy facility in Dalian. The facility employs vanadium-based liquid electrolyte batteries that hold the potential to meet the city requirements in the long run.
Vanadium Batteries perform well than traditional lithium-ion batteries. Due to their liquid nature can be easily scaled up to the massive grid level and are also less likely to catch fire. A lifespan of 10x of the lithium battery is also an attractive factor for investors. The founder of Vanadium batteries-Xianfeng Li, commented that; companies are interested in investing in Vanadium batteries. They have sensed the government’s interest in clean energy stocks. They are feeling confident about their renewable energy investments. The support offered on the government level is also encouraging investors towards investing in renewable energy.
The future plans to develop energy storage batteries do not circle merely around meeting the energy needs of the domestic sector. Economists are also focusing on the development of electric cars. Electric vehicles are a prime driver of the expansion of clean energy sectors. However, electric vehicles cannot operate efficiently without promising battery systems. China supports the advancement in this sector at both industry and research levels to put forward cutting-edge solutions to the world.
In a nutshell, the motive of investing in clean energy stocks by the major economies of the world like China opens the door for the lesser developed economies. With small concerted efforts, we can drive a bigger change to make this world a better place. Read More