Renewable Energy Sources: Top 3 Challenges Holding Back the Development
Powering the planet, lowering the cost of energy, and drastically reducing carbon emissions are the major concerns for mankind in the 21st century. To secure the future for ourselves and generations to follow, it is crucial to act now to reduce the consumption of energy and reduce greenhouse gases. Such issues have raised the preference […]
Powering the planet, lowering the cost of energy, and drastically reducing carbon emissions are the major concerns for mankind in the 21st century. To secure the future for ourselves and generations to follow, it is crucial to act now to reduce the consumption of energy and reduce greenhouse gases. Such issues have raised the preference for renewable energy sources all over the world. But there are several challenges that companies dealing with renewable energy sources face. These challenges hinder the growth of the green economy and obstruct governments from achieving their sustainability goals. In this article, we have talked about those challenges to help power and clean energy companies transform the way they operate, globally.
Renewable Energy Sources: Major Challenges Power and Clean Energy Companies Face
Challenge #1: Facing international competition and legality
For companies in the power and clean energy sector, dealing with international competition and legality is one of the major concerns. They often face challenges due to unfair business practices in the solar energy market. For instance, European and American solar companies are currently in a drawn-out dispute with China on this issue. They accuse solar companies from China of receiving illegal loans, which were either financed by the government or not paid back. This allowed them to undercut prices and drive out foreign competition. As the market for renewable energy sources becomes increasingly globalized, it has become important for companies to be wary of the implications their actions have on international business.
Challenge #2: Garnering investment in renewable energy sources
Global investments in renewable energy sources are encouraging but it isn’t enough to substitute them for fossil fuels. Today, with the growing preference for renewable energy sources, there are a lot of investment opportunities that have emerged. However, investing in renewable energy sources tends to be very risky due to the combination of changing political headwinds or tailwinds and developing technologies. But there are ways to minimize the risk and boost ROI only if you know where to look.
Challenge #3: Rate-of-conversion problem
Replacing the current energy infrastructure with those that support renewable energy is a monumental task for governments across the globe. If clean energy is to reduce the effects of climate change, it needs to replace fossil fuels within a very limited timeframe. The issue of having enough renewable energy sources to meet the energy demands before the effects of global warming become severe is known as the rate-of-conversion problem. This problem can be addressed if the production of renewable energy increases significantly.
With years of expertise in offering market intelligence services, Infiniti Research helps power and clean energy companies to build capabilities to rethink business strategies and pursue new market opportunities. Also, it helps businesses to transform their operation by leveraging market intelligence to benchmark industry best practices. Additionally, it assists businesses to assess and predict changes in emerging regulations and estimate the profit potential of the market.
Are you facing any of these challenges and looking for the right solution to mitigate them?