The rising need for maintaining environmental sustainability is garnering increased attention in the clean energy sector. Furthermore, the exorbitant rates of extracting fossil fuels are leading to flexible and cheaper sources like renewable energy becoming more popular. This changing trend is going to be one of the critical factors that are going to influence shifts in investment decisions, household usage, business models, and employment patterns. What makes clean energy more appealing is the fact that it is far easier to extract and that too at a lower price than non-renewable sources of energy. As we step into 2018, here are a few factors that would influence the prices of clean energy to be inexpensive:
Drive in the sale of electric cars
Advancements in technology are driving down vehicle prices and simultaneously increasing the sale of electric vehicles. Though several industry analysts have predicted slow growth in this sector, there are chances for sales of electric cars to rise rapidly due to bulk purchases of these vehicles by several companies. Also, factors such as breakthrough inventions in battery storage technology and an increase in the auto industry’s capital expenditure are also expected to facilitate the growing sale of electric vehicles.
Declining popularity of coal
The demand for coal as an energy source has been seeing a declining trend over the past few years. The main reason for this is the rising usage of several affordable, clean energy replacements. This is also going to lead to investments in coal-fired power plants to drop. You can also expect to see cancellations of several proposed power plants and retirements of existing ones in the years to come.
Wind and solar energy prices will continue to go downhill
The previous year saw a remarkable reduction in the rates of clean energy such as solar and wind. Renewable energy is slowly taking charge of driving electricity markets in different parts of the world. Solar and wind energy has been particularly successful in reaching out to larger sections of people at lower prices; this trend is expected to continue in the following years as well. During the growth period though, clean energy will experience some political and financial setbacks. However, the industry will overcome those obstacles as it becomes a permanent and growing part of the energy landscape.
Rise in the oil prices
Over the past two years, oil prices have been on the rise like never before. The oil and gas industry is slowly moving from massive capital expenditures to strategies that focus on reducing cost, limiting investments, diversification, and cash generation. This trend is likely to make clean energy replacements like natural gas in high demand.
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