Only one in ten power utilities in the world applies primary investment in renewable sources10. September 2020. /
The impression that the world is turning irresistibly to renewable energy sources is not true. This is shown by the latest research from the University of Oxford, which was conducted among as many as 3,000 electric power companies around the world. Even among companies that favor green energy, 60 percent of them have not stopped expanding their business in the fossil fuel segment.
According to the obtained results, only one in ten world electric power companies gives an advantage to investments in renewable energy in relation to power plants that use fossil fuels. Even where power companies invest in renewables, they still rely primarily on fossil fuels, “which is why they are ‘undermining’ the energy transition,” British researchers conclude.
Investments in non-renewable resources are being renewed
The study found that most of the money continues to be invested in fossil fuels, despite international efforts to reduce greenhouse gas emissions. Moreover, some power companies in the world plan to increase the number of power plants that use fossil sources.
Among companies whose priority is the growth of renewable energy sources, as many as 60 percent of them have not stopped expanding their business in the fossil fuel segment, and only 15 percent of those companies are actively reducing their capacities for gas and coal exploitation.
The US is forcing shale, and China is forcing coal
The research showed that 10% of companies favor the growth of gas power plants. The group is dominated by American companies, which are trying to make the most of shale gas reserves in the United States, followed by Russia and Germany.
Only two percent of companies are actively increasing their energy capacity for coal processing and giving them an advantage over gas and renewable sources. This cluster is dominated by Chinese companies, which make up more than 60 percent of companies focused on coal processing, followed by energy companies from India and Vietnam.
Abandoned property risk
The study shows that most companies in the field of electricity, whose priority is renewable energy, are grouped in Europe. Many of the industry’s biggest players are investing in low-carbon energy and green technologies to replace their old fossil fuel power plants.
The study points out that although there are excellent examples when it comes to investing in renewable sources, the overall energy sector in the world is very slowly or not at all switching to green technologies.
Researchers conclude that those who now invest in fossil fuels, in addition to blocking global efforts against climate change, run the risk of such plants becoming “abandoned assets”, ie to stop working before the end of their life.
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