The largest oil companies gradually leave fossil fuels, highlighting more and more means for renewable energy sources. It is the “green” energy, first of all, is necessary to prevent climate catastrophe. Reports about it Bloomberg.
The interest of large oil companies to renewable energy has increased competition in the market and led to a decrease in the margin of the familiar market players. The windy giants of Orsted and Vestas reported a reduction in profitability in the first quarter. Other wind turbines developers have lost money due to the growth of copper and steel prices that are necessary for production. Siemens Gamesa has lost 314 million euros (369 million dollars) due to the increase in prices for raw materials. In addition, prices for solar modules have grown by more than 16 percent. Grow out during the pandemic period and shipping cost, which only aggravated the situation.
Profit Reduction – alarming signal for the “green” industry, which should attract at least 92 trillion US dollars by 2050 to reduce the amount of emissions to prevent the worst consequences of climate change.
In most countries of the world, renewable energy has become the cheapest source of electricity due to increased attention of large companies in the industry. Last year, BP has set a goal to increase the power of renewable energy sources from 3 to 50 gigavatt. Totalenergies plans to increase power up to 100 Gigavatt by 2030.
reason to believe that the reduction in profits will reduce investments until not. According to Bloombergnef, in the first half of the year, on solar, wind and other “green” technologies and companies, a record 174 billion dollars was spent, which is 1.8 percent more than for the same period a year earlier.
There are concerns that some “green” projects can be canceled or postponed, which makes it difficult to solve climate issues. According to the International Energy Agency to limit the temperature rise to 1.5 degrees Celsius in the period from 2020 to 2050, it will be necessary to increase wind and solar power five times.