The Power Struggle

Global energy demands are on the rise due to population growth and rapidly-developing industrialization across the board. According to a report by the independent UK information and consulting firm, Enerdata, energy consumption in the G20 countries increased by more than 5% in 2010. The U.S. Energy Information Administration (EIA) report clearly indicates the steady growth throughout history and the projected increase in the future. World net electricity will reportedly increase by 87 percent from its 2007 levels, from 18.8 trillion kilowatthours to 25.0 trillion kilowatthours by 2020 and 35.2 trillion kilowatthours by 2035. Due to the turbulent financial times, electricity consumption in 2008 was lower than 2007, and 2009 saw the same levels as 2008. But EIA projects that electricity use will return to pre-recession trend rates by 2015.

One of the problems of modern electricity production is the heavy reliance on coal and nuclear power to produce electricity. Burning fossil fuels is by far the most common energy-generating process. It releases large amounts of greenhouse gasses (GHGs), making it a leading polluter of the atmosphere. Nuclear power, on the other hand, has been receiving bad press after historic evens such as the 1986 Chernobyl incident and, most recently, the Fukushima disaster. The international community is growing more aware and conscious of the dangers nuclear reactors hide in the face of natural disasters and even terrorist attacks.

Moreover, increasing disturbances in the Middle East and North Africa are threatening the world’s oil supply — another power-generating fuel. The world’s most valued natural energy source proves to be not only finite and volatile in supply, but also harmful to the environment.

Supply of fossil fuels is both finite and vulnerable to disruption pushing up their price. The human population and energy consumption per capita are growing quickly meaning energy requirements are growing quickly. It is in this context that many industry experts comment upon the potential for a global energy crisis in the coming decade or two and the trend towards renewable energy.

The Energy Solution

It seems like a no-brainer that leveraging renewable energy sources through investing in solar and wind power, are the solution to offsetting the potential for a power crises. Why is it, then, that the world is just now embracing the possibilities? Is it the decades-long financial, labor and technological commitment to traditional power-gerenating methods? Is it the fear of uncertainly that comes with investing in solar energy, biofuels and other unconventional methods? Or simply generations of the most powerful players and decision makers on the world economic scene are just too trapped in the old processes?

Whatever the reasons, they cannot withstand the pressing needs of nature and humanity. These needs are now a driving force behind a new eco-aware global economy. As the EIA report shows, the fastest growing source of electricity generation is renewable energy, with capacity increasing by 3 percent annually. EIA expects that the renewable share of global electricity generation will grow from 18 percent in 2007 to 23 percent by 2035.

Why Solar?

Investing in solar power, in particular, is one of the most ecologically- and economically-sound solutions to meet the growing energy demands on the planet. The cost of its fuel is virtually zero; it’s widely available, throughout most of the world, most of the time; it’s an endless energy source and releases no pollution. Scientists have estimated that enough solar energy hits the earth in one single hour to power the entire globe for a full year, if properly harnessed.

Solar power technology dates back to the mid 1800s when solar energy plants were created to heat water, which, in turn, created steam to drive machinery. In 1839, the discovery of the photovoltaic effect explained how sunlight can be transformed into electricity. Even after a lot of research and development, the full potential of the photovoltaic cells as power-generating units was not recognized until 1946 when the solar cell was patented. Thanks to the rapid technological developments today, solar panels are becoming more and more efficient. They are relatively easy to install and because they have no moving parts, they are low-maintenance and durable.

The simplicity of the solar panel idea along with the security and reliability that solar energy has as a make investing in solar energy a smart, low-risk and profitable business option. Solar energy also offers considerable stability in supply amounts and monetary returns compared to traditional energy fuels.