The Rise of Green Initiatives in Commercial Industries and How it Impacts the Power Industry
- Jul 20, 2020 10:53 pm GMT
Green initiatives that target a sustainable and environmentally friendly power system are on the rise across the power industry. In recent years, the use of solar has increased by 40 times what it once was, while wind power has quadrupled.
Across the world, green power initiatives are increasing in both popularity and demand. These trends push the world toward alternative, renewable sources of energy that veer us away from our reliance on fossil fuels. In many ways, they are welcome and positive developments in the power industry.
But how exactly do these developments impact the power industry and the professionals that work within it? Will power companies continue to move in a greener direction? Is growth in this sector a viable option?
Here’s what we know.
The Public Push for a Greener World
In the fight for a better future, the push for sustainability and environmentally friendly power practices have resonated with millions. Climate change is a social justice issue that disproportionately affects poorer nations and economies. This makes a solution to problematic practices the ethical thing to do.
Now, in a future re-examined with the awareness brought by the global coronavirus pandemic, millions more are working from home. This has effectively changed the way consumers are using power, with positives and negatives surrounding the sustainability of the new work-from-home model. Regardless of whether or not this shift might improve overall environmental conditions, it has caused a massive reset in many industries, in which the business is conducted and processes are constructed.
This makes the push for green initiatives more prevalent than ever.
The Impact of Green Initiatives to Power Companies
Sixty-two percent of Gen Z consumers prefer to buy sustainable brands. This is the trend of the future and a prerogative for any industry moving forward wanting to create a competitive public perception.
As a result, research and development into green technologies are massive investment sectors. In the recent past, more than $3.6 trillion in investment dollars have flooded R&D for green development. The potential for growth and the influx of funding to sustainable practices have made finding these solutions all the more economically viable for power companies seeking solutions.
Continued green initiatives mean more investment dollars and incentives for power companies. The federal Office of Energy Efficiency and Renewable Energy (EERE), for instance, has a database of funding options for research and development, technological advancements, and even small businesses looking to integrate renewable energy sources.
Additionally, the Environmental Protection Agency (EPA) has created a variety of programs to encourage the continued trend of organizations in this direction. Through these programs, government funding and access to resources may be available to companies that were not around in previous decades. With the right research and grants, power professionals can find ways to make green power solutions an economically feasible reality.
For electricity companies, investing in the development and transition to electric vehicles can be highly beneficial. Electrifying the US’s light-duty fleet, for example, would add 774 terawatt hours of demand to the grid, providing business opportunities through higher demand on the market.
With increased funding, higher demand for products, and improved consumer perception, green initiatives are creating opportunity for profit for power professionals. This is the reason companies like Apple are frequently pivoting to green innovations.
However, there are still challenges to face. From economic difficulties in the cost-effectiveness of clean energy solutions to the energy lost in friction to the issues of accommodating higher demand, power companies must continuously innovate for green power solutions that make economic sense.
The good news is the funding and opportunities to do so do not appear to be going away any time soon.
A Greener Future
The trend and interest shown by investors on both a federal level and on an individual basis for green initiatives come with a value that the power industry can utilize.
Adidas was predicted to make $1 billion off its commitment to using recycled materials in specialized shoes. This venture was a massive success for the company and the future of green initiatives as a whole, one demonstrating the desirability and interest in a green future. If power companies can seize on that level of demand to innovate and provide clean energy products to customers and businesses, they can capitalize on a demand base that is there and growing all the time, all the while benefiting the state of the planet.
Large companies like Amazon are investing in a shift to solar energy, with more businesses looking to convert to alternative and sustainable power sources. They understand that green initiatives mean better business and customer trust. In fact, more than 80% of people respect companies that adopt environmentally friendly business practices, so doing so is now a priority for brands looking to maintain a competitive edge.
In short, the shift to a greener future represents opportunity for power professionals. With funding sources and interest skyrocketing, innovations in clean energy have never made more financial sense. The trend is here to stay, and getting involved could mean massive benefits for power companies.
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