2016 Could Spell a Big Year for Energy Sector

Published By : 16 Dec 2015 | Published By : QYRESEARCH

The global energy industry could possibly be on the verge of a changeover. What this spells for existing players in the industry is not immediate termination, but rather a gradual phase shift from their current sources of electricity generation towards others. More specifically, energy companies need to start planning a way to achieve alternative sources of energy. The current means of energy generation largely employ exhaustible sources such as coal, natural gas, and oil. Fossil fuels are on their way to depletion and the energy companies need to pay heed to their consumption rates.

In the future, there is a strong possibility of living in a world powered by renewable energies. For instance, a breakthrough in battery technology can push the solar and wind energy initiatives to a point where they can even compete with the more efficient energy sources of today. Most businesses will run on green energy and vehicles will go completely electric. And all this is entirely possible if energy companies begin planning their futures in 2016 itself.

Certain forms of renewable energy are already competing with the current high standards set by fossil fuels. 2015 has seen more than half the global power capacities that have been added, to have developed from hydro, solar, wind, and nuclear. Granted, coal and oil are currently at lows that have not been seen for many years, but this says little about the reserves of fossil fuel that are remaining in the earth. Shale oil might have created an oversupply of crude in today’s world, but it fails to provide a significant solution to the future energy crisis.

Additionally, the UN Climate Conference that was held on the 12th of December, has delivered a landmark agreement between 200 nations. Most of the countries are optimistic about implementing progressively stronger regulatory institutions in order to curb the increasing level of global pollution. The reduction initiatives for carbon are, however, nowhere close to the 2 degrees Celsius, as was originally planned.

Renewable energy continues to grow and will be taking all its associated companies into the future of energy. Investments in renewables are steadily increasing and the research and development efforts are also beginning to bear fruit.

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