There is a lot of uncertainty on when and how the United States will get back to its feet. With record unemployment, a huge dent in consumer confidence, and the on-going threat of a pandemic that shows few signs of being under control, it’s important to look ahead.
For businesses and communities asking questions about what comes next in the world of energy, it’s hard to look past the future of oil. Fossil fuels, in general, saw a reprise of sorts over the past decade thanks to new but inefficient fracking methods in the US. Not only did the practice contaminate the groundwater of millions of Americans, it wasn’t cost-effective. As the OPEC+ in-fighting demonstrated, few of these domestic producers offered a long-term solution to our energy needs. Hundreds have gone out of business in the past three months, and many more are not expected to survive the recession.
The bright spot, then, is solar. And not just solar, either. As we’ve said many times, at residential, commercial, and even grid-scale, it will take a number of renewable energy sources and an efficient energy storage system to keep America running through the transition away from fossil fuels. If anyone still needs proof that this move is inevitable, look for further than Egypt.
While not as productive or reliant on oil as other North African or the Middle East, oil does have a strong presence in the Egyptian economy. Rather than rely on domestic supply supported by foreign imports, Egypt is turning its eye to the sky and investing heavily in solar power. The solar field of Aswan, for instance, is the nation’s largest solar array and produces 1.5 GW of power per year, enough juice to power 1.5 million homes in the region.
All of the Middle East has been built on oil, with just 3% of its current energy needs met by sustainable needs. But that’s changing, and fast. Over the past ten years, its renewable capacity has doubled, and it’s expected to double yet again in just the next four years. Originally, it was non-oil producing countries like Morocco that made the move, but now even OPEC titans like are getting in the game, including offering one of the lowest tariff bids just last year.
While the scale of production is growing quickly, it’s dwarfed by another important factor in the move to renewable energy, and that’s investment. Production is actually behind the cash influx; in the past ten years, the Middle East has grown from just 91 megawatts of renewable energy production to 9 GW; in that same time, investment in green energy has increased by more than twelve times the 2008 level.
For US businesses, it’s a sign that the move to efficiency, sustainability, and responsible energy production reflects a growing demand in the public and in the energy sector itself. On a firm-level scale, it’s a time to invest in the energy efficiency measures that will allow a business to make the most of low oil prices now and be ready to make the transition to renewables before it’s an arms race. Take ownership of your energy environment for a brighter future.