EY’s Renewable Energy Country Attractiveness Index shows that the United States has moved ahead to the second only to China. While it ranked the third last year because of Trump’s fossil fuel industry revival efforts.
How could we find that the US is an attractive market for renewable energy investors?
On one hand, a lot of giants in various industries are beginning to find reliable business partners to broaden the US market or invest in the renewable energy directly. BP and Tesla cooperate to venture into battery storage for wind farm in the US. And Shell had announced to invest $1 to $3 billion dollars per year in the new energy area.
On the other hand, new energy is used widely in the US. Nowadays wind has surpassed coal in the power generation in the country. Automakers bring more electric vehicles to the market with the prevalence of transportation revolution , electric vehicle which stands for one aspect of new energy’s growth.
The active market performance makes the investors be confident about the US. Although Trump Administration suspects the prospect of new energy market. It is the market force that drives the growth of this area.
Firstly, low-cost is favored by the market. Renewable energy like wind and solar are the low-cost resources which are welcomed by the power plants. A report from the Federal Energy Regulatory Commission showed that “of all new electricity generation built in the first two months of 2018, a full 98% is renewable”. The widely use of new energy is an inevitable trend.
Secondly, the market emphasizes on the value. The value provided by the coal plants is limited to the power systems as they have worked for years. But renewable energy power plants could work more efficiently because of the application of new technology and new machines. As a result, the investors are more likely to invest the new energy and infrastructure to replace the coal.
Thirdly, market reflects the investment environments. Wall Street pays much attention to low-risk investments. As for the energy investment, new energy is the better choice for investors since the old energy like coal belongs to a high-risk one with its pollution property to the environment. Over 40% of the US coal supply companies bankrupted in the past years.
No one could stop the market force. Investors take numerous factors into consideration before they take an action. So their opinions are deserved to be valued. What’s more, it’s time for the US to recover in the new energy area what can benefit both economy and environment.