Power Companies are stepping back when coming to the embracing of wind energy, solar energy, and other green energy sources, as stated by the researchers. Surveys also mention that only 10 energy suppliers worldwide consider the renewable resources above fossil fuels.
Even out of spending on green energy resources continues investing in massive coal, natural gas, and carbon. Researchers also stated that this weakens the efforts to tackle the global climatic changes.
Across the top developed nations like the UK and Europe, the renewable energy resources acquired a significant share in the market. Also, about 40% of electricity in Britain came out of solar and wind energy in 2019.
With the boost in the green energy resources, several winds and solar energy resources and their installations have been developed and set up by the producers. But, several large scale companies, including the ones owned by the enterprises of the states and the cities, have shown a slower pace in going green.
More than 3,000 companies were surveyed from across the globe for the research. Many of the techniques using Machine learning analyzed the activities of these companies over the previous two decades.
According to the studies, only 10% of companies expanded their power generation based on renewable energy, and this growth is more than the ones for the gas/coal-based ones. Also, out of the small part spent on renewable resources, there is still some fossil fuel investment, even though at a lower rate.
From Oxford University’s Galina Alova from the Smith School of Environment and Enterprises, said that it is evident from the utilities and the companies that the expenditure on renewable and fossil fuels is lower still.
Hence, it is clear that even though they are not paying much concern and investing more in other fuels like nuclear or hydro-powers and are not making a transition towards renewable resources, nor are they growing the capacity of the fossil fuels.
Most of these utilities are owned by the governments and might have invested in the power portfolios a few years back!
Hence, after stating all the facts and considering all the shreds of evidence, the conclusion is that utility companies are hindering the green energy movements and global transitioning to renewable resources.
Galina Alova also stated that companies are still growing their fossil fuel capacity, as revealed from some surveys. She also added that only the utilities are the dominant parts in the fossil fuel businesses. She also found several of the utilities owning the capacities for fossil fuels in the last decade. This states that the pieces of evidence are of the new assets.
Also, Galina added that to achieve the Paris climate goals’ agreement, they must either be retired before their term ends and soon, or they must need the storage and the carbon captures as there is no other way to eradicate their roots for decades. Also, she says that the slow transition caused is due to the inertia in the electricity market industries.
However, the news about these energy-based companies doesn’t capture the complexities of their investments always, and according to Galina Alova, generally, the natural gas and the renewable resources are used simultaneously for varying purposes.
She then concluded with the fact that more frequently, the companies chose both of them together and worked with them parallel. Hence, there are not many shreds of evidence, apart from the media firms, confirming the increased investments in the renewable resources and the lessened ones in the gas.
Hence, this fact and concern are not about green-washing, but it is about that the parallel and simultaneous investment reduces the shift towards renewable resources. And that is the critical issue!
This whole study is also published in the journal: Nature Energy.