Clean energy investment : A transition towards renewable energy Renewable Publication 2017- September

Airport Kinesis Consulting
‘‘Man, a mere inhabitant of the earth, cannot overstep its
boundaries! But though he is confined to its crust, he may
penetrate into all its secrets.’’
Jules Vernes
Research by Adventare Group
Clean energy investment : A transition towards
renewable energy to conceptualize a post-oil city.
By Serroune Abdellatif
In the long run, we will have to end our oil dependency and work
to prevent climate change damaging the global economy in the
future. At a larger scale, multiple benefits were underlined by this
source of energy such as reducing public health problems due to
high use of fossil energy source. Implementing all projects based
on renewable energy could provide a substantial growth for the
global economy and increase profitability for institutional investors.
Establishing a strategy that will foster investment to provoke
a shock in order to reduce oil prices and decrease the cost of
infrastructure, a global trend seems to promote highly renewable
energy to support our eager to tackle climate change. However,
developing countries cannot afford this source of energy mainly
due to the high cost of investment, not only that it’s too expensive
they also don’t have the capital to invest in this source of energy.
A huge amount of capital will be necessary to develop green
infrastructure created to prepare our population to a low-carbon
society, countries with a high risk profile won’t lure investment
so easily compared to developed countries which possess a solid
background to insure that every project remains profitable.
Despite all the statements advocating renewable energy, low-income
economies cannot afford such investment putting their economy in
danger and free themselves from oil imports essential for their growth.
A sad reality for countries wondering about their children’s future,
another fact that we must underline is that a country cannot rely 100%
on renewable energy to provide electricity to the local population.
Preoccupied with global oil prices, we can assist to a transition period
which will lead us to a massive investment in solar energy, wind farm
or geothermal energy. According to the International Energy Agency,
our global economy could face a shortage of global oil demand
and also increase the price of oil hampering growth for several
countries. As an alternative to fuel, natural gas is a smart choice
to reduce cost for the manufacturing industry and generate cheap
electricity for industrial use which permits to enhance profitability.
The United States highly dependent on oil finds another source to
provide electricity to their industry allowing the U.S economy to take
a fresh breath air and we expect that their industry will become more
efficient. Moreover, the U.S economy is a large exporter of natural
gas and we can predict that they will surpass their competitors
with considerable investment in the infrastructure: Valley Crossing
Pipeline, a system that will enable export of U.S natural gas to Mexico.
This report aims to raise new questions about clean
energy investment, we begin to realize that renewable
energy will participate to build a new era however we need
to establish a realistic scenario about costs or efficiency.
Indeed, oil remain a reliable source of energy for a vast majority
of countries with
a share
estimated at 32,9% of global
energy consumption, U.S gas production recorded a growth
of 5,4% this year which leads to a policy towards natural gas
to avoid oil consumption in order to provide cheap electricity.
Regarding renewable energy, hydropower and bioenergy
remain a crucial source of supply outpacing coal as a source
of electricity due to their high power generation capacity.
Clean energy investment : A transition towards renewable energy to conceptualize a post-oil city.
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