The International Energy Agency (IEA), the U.S. Energy Information Administration (EIA) record Energy data periodically. According to IEA and EIA by the year 2013 total primary Energy supply was 13,541mtoe.
As we talked about it in our previous post, according to EIA, 80% – 86% of this Energy supply still comes from Fossil Fuels which means only up to 20% of the market share is from Green Energies. According to EIA, in 2016 only 10% of total U.S. Energy consumption was from renewable energy sources. This fact shows the existing dominance of Fossil Fuels and however, reveals the Opportunities in the Potential market for Renewable Energies. There’s absolutely no end to the opportunities available for companies and entrepreneurs and research and development labs, that create better technologies for the Energy industry.
Why don’t we use more Renewable Energy?
It makes sense right? Less pollution, less damage to the environment, tapping into an everlasting power source and many more benefits. However, it’s not that simple. In general, Renewable Energies are more expensive to produce than Fossil Fuel Energies. Let me also add the fact that Renewable Energies are also not always available, an example would be when clouds block the sky or the fact that the days with low wind, reduce electricity from wind farms.
However, Elon Musk mentioned in one of his interviews that he’s confident that Solar Energy will beat Natural gas and every other Energy source. The price of Solar Panels has been reduced by 95% since 2008 and this is because Renewable Energy is a technology, not a fuel, so prices follow what economists call an “Experience Curve” which means, The more solar panels we make, the better we get at making them. It’s technology advancements that have enabled the prices of solar cells and solar output to become incredibly affordable over the reasonably short period time that it’s developed great efficiencies, and those efficiencies will continue.