There is an energy evolution that is happening right before our eyes. In the last decade, energy from solar and wind has become so cheap that most of the upcoming fossil fuel plants will be rendered obsolete in a few years to come. And surprisingly, this is not only happening in the United States but also in India and China, where coal plants are being closed down in favor of solar and wind energy.
Just close behind the green energy is the rising technology and ever changing innovations surrounding batteries that is making energy storage and electric vehicles equally viable options for both businesses and consumers. As this innovative combination of technologies grows and improves, it will gradually but naturally replace fossil fuel use completely. Just to be clear: The conditions for the death of fossil fuel use are in place, and a huge disruption of the energy industry is looming.
What Is Behind the Green Energy Evolution?
The wave of green energy is completely unstoppable, and with companies like American Power and Gas being on the forefront spearheading the increased use of renewable energy in U.S. homes, the disruption in the energy industry has already started. The truth is that clean energy has had numerous positive impacts which we shall explore shortly.
Less global warming: Increased human activity is overloading the atmosphere with carbon dioxide, which is the most prevalent global warming emission. These emissions act as an impenetrable layer, thus trapping heat. This results in numerous harmful impacts such as sea level rise, drought, stronger and more frequent storms and extinction. In the U.S, close to 29% of all global warming emissions come from wasteful energy consumption of “brown Energy” (nonrenewable energy).
Inexhaustible energy: Sunny skies, strong winds, heat from the earth, fast-moving water, and abundant plant matter can offer an extensive and continually replenished supply of power, and only a small portion of U.S. electricity is currently obtained from these sources. This is a scenario that is bound to change, and studies now show that renewable energy will provide a significant share of the future electricity needs even after considering potential constraints.
Stable energy prices: Renewable energy is undoubtedly providing affordable electricity across the United States, and will aid in stabilizing energy prices in years to come. While most renewable energy facilities need upfront investments to construct, their operation costs are meager. Better yet, the overall cost of renewable energy technologies has reduced steadily and is expected to drop more. For instance, the average price of installing solar fell more than 60% between the year 2010 and 2017 while the cost of generating power from wind dropped 60% between the year 2009 and 2016. The prices will probably go down further as the market matures and as companies like American Power and Gas take advantage of the economies of scale.
The Electric Grid Disruption Has Started
Renewable energy is changing the energy paradigm for the electric grid, and there will inevitably be some casualties in the old field of energy. For instance, since the light bulb was invented, people have heavily-relied on electricity from the power grid to light up their homes and power electric devices they have. However, there are now more than a million homes with mini-power plants of their own – solar panels sitting on top of most roofs.
Gasoline Is on the Verge of Extinction
The rapid technological advancements being experienced will most probably make gasoline vehicles obsolete in the next few decades. It is already evident that electric cars are now cheaper to fuel and maintain that the conventional gasoline vehicles. The only hurdle to a complete takeover of the automobile market is the lifecycle of the batteries and the vehicle’s range.
The Disruption Will Be Massive
Companies like American Power and Gas are already predicting that the fallout and disruption in the energy industry will be massive since solar and wind energy is already squeezing fossil fuels from the power grids. Additionally, natural gas and oil drillers and service providers will have to deal with a low demand for most of their products and will remain in the shadow of lower prices. Also, the decline in coal mining is an indicator of what is set to happen to the use of natural gas and oil. Several thousands of miles of pipeline could become obsolete in a few years, which is an aspect that the market has not accounted for.
Irrespective of where you will be investing in energy, it is essential that you consider how the looming disruption of the energy industry will affect your investments. Energy stocks that were once safe and lucrative might not be worth it at all, and huge sections of the energy sector could collapse in a day.