The renewable-energy industry is the part of the
energy industry
The energy industry refers to all of the industries involved in the production and sale of energy, including fuel extraction, manufacturing, oil refinery, refining and distribution. Modern society consumes large amounts of fuel, and the energy in ...
focusing on new and appropriate
renewable energy
Renewable energy (also called green energy) is energy made from renewable resource, renewable natural resources that are replenished on a human lifetime, human timescale. The most widely used renewable energy types are solar energy, wind pow ...
technologies. Investors worldwide are increasingly paying greater attention to this emerging industry. In many cases, this has translated into rapid renewable energy commercialization and considerable industry expansion. The
wind power
Wind power is the use of wind energy to generate useful work. Historically, wind power was used by sails, windmills and windpumps, but today it is mostly used to generate electricity. This article deals only with wind power for electricity ge ...
,
solar power
Solar power, also known as solar electricity, is the conversion of energy from sunlight into electricity, either directly using photovoltaics (PV) or indirectly using concentrated solar power. Solar panels use the photovoltaic effect to c ...
and
hydroelectric power industries provide good examples of this.
In 2020, the global renewable energy market was valued at $881.7 billion and consumption grew 2.9 EJ.
China was the largest contributor to renewable growth, accounting an increment of 1.0 EJ in consumption, followed by the US, Japan, the United Kingdom, India, and Germany. In Europe, renewable consumption incremented 0.7 EJ.
Overview
Net-zero and
100% renewable energy global goals create market opportunities for renewable industries such as solar and wind energy and
lithium-ion batteries. By 2050, it’s estimated that the renewable market will reach a value of one trillion dollars, the same size as the current oil market.
In 1997, world leaders adopted the Kyoto Protocol as a step in mitigating the climate crisis. This Protocol was the precursor to the 2016 Paris Climate Accord, and helped push the renewable energy industry forward. This protocol places more responsibility on developed nations in an act of recognition that developed countries are responsible for emitting more greenhouse gases. That responsibility is reflected in the investment into the renewable energy industry. According to IRENA, China and the United States are the leading countries in renewable energy. Overall in 2022, China generated 2,673,556GW of energy through renewable sources, and the U.S. produced 981,697GW of electricity through the renewable energy industry. Brazil, commonly recognized as a developing country, has routinely come in third for overall electricity generated through renewable energy, and is recognized for its use of hydropower.
In 2020, renewable sources incorporated into energy consumption at its fastest rate in two decades.
During 2006/2007, several renewable energy companies went through high profile
initial public offering
An initial public offering (IPO) or stock launch is a public offering in which shares of a company are sold to institutional investors and usually also to retail (individual) investors. An IPO is typically underwritten by one or more investm ...
s (IPOs), resulting in market capitalization near or above $1 billion. These corporations included the solar PV companies
First Solar (USA),
Trina Solar (USA),
Centrosolar (Germany), and
Renesola (U.K.), wind power company
Iberdrola (Spain), and U.S. biofuels producers
VeraSun Energy,
Aventine, and
Pacific Ethanol.
Renewable energy industries expanded during most of 2008, with large increases in manufacturing capacity, diversification of manufacturing locations, and shifts in leadership.
[BTM Forecasts 340-GW of Wind Energy by 2013](_blank)
/ref> By August 2008, there were at least 160 publicly traded renewable energy companies with a market capitalization greater than $100 million. The number of companies in this category has expanded from around 60 in 2005.[Renewables Global Status Report: 2009 Update. REN21. 2009.]
Some $150 billion was invested in renewable energy globally in 2009, including new capacity (asset finance and projects) and biofuels refineries. This is more than double the 2006 investment figure of $63 billion. Almost all of the increase was due to greater investment in wind power, solar PV, and biofuels.[Renewables Global Status Report: 2010. REN21. 2010.]
In 2000, venture capital
Venture capital (VC) is a form of private equity financing provided by firms or funds to start-up company, startup, early-stage, and emerging companies, that have been deemed to have high growth potential or that have demonstrated high growth in ...
(VC) investment in renewable energy
Renewable energy (also called green energy) is energy made from renewable resource, renewable natural resources that are replenished on a human lifetime, human timescale. The most widely used renewable energy types are solar energy, wind pow ...
was about 1% of total VC investment. In 2007 that figure was closer to 10%, with solar power alone making up about 3% of the entire Venture Capital asset class of ~$33B. More than 60 start-ups have been funded by
VCs in the last three years. Venture capital and private equity investments in renewable energy companies increased by 167 percent in 2006, according to investment analysts at New Energy Finance Limited.
New investment into the sector jumped US$148 billion in 2007, up 60 per cent over 2006, noted a report by the Sustainable Energy Finance Initiative (SEFI). Wind energy attracted one-third of the new capital and solar one-fifth. But interest in solar is growing rapidly on the back of major technological advances which saw solar investment increase 254 per cent.[Financial Standard - Energy investments surge]
/ref> The IEA predicts US$20 trillion will be invested into alternative energy projects over the next 22 years. As of 2025, ''BloombergNEF'' reports that China was the leading country in investing in the transition to renewable energy. The report also finds that well-developed technologies, like solar and wind energies, are seeing a growth in investments, while newer renewable energy technologies are being invested in less.
In 2012, world leaders met in Rio for the United Nations Conference on Climate Change (UNFCCC), where they established 17 Sustainable Development Goals meant to unite leaders in mitigating challenges like climate change. Among these goals are: affordable and clean energy, responsible consumption and production, and climate action. 11 years later, the 2023 United Nations Climate Change Conference, also referred to as COP28 saw the first ever Global Stocktake, where countries are evaluated on their progress towards the sustainable goals they previously set. Also referred to as the UAE Consensus, this evaluation concluded that countries are not on target to reach their sustainable development goals. Subsequently, there has been a call to “tripling renewables and doubling energy efficiency by 2030.”
Wind power
In 2020, wind power accounted for more than six percent of global electricity with 743 GW of global capacity. In the same year, 93 GW capacity was installed. For reach a 'net zero' emission status, the world needs to install at least 180 GW of new wind energy capacity by year.
Companies
Vestas was the largest wind turbine manufacturer in the world with and 16% market share in 2020. The company operates plants in Denmark, Germany, India, Italy, Britain, Spain, Sweden, Norway, Australia and China, and employs more than 20,000 people globally. After a sales slump in 2005, Vestas recovered and was voted ''Top Green Company of 2006''.
In 2020, Siemens Gamesa
Siemens Gamesa Renewable Energy, S.A. was formed in 2017 in a merger of Siemens AG, Siemens' Wind Power division with Gamesa Corporación Tecnológica, S.A.; it is a Spanish-German wind engineering company based in Zamudio, Biscay, Spain. The co ...
was the world's second largest wind turbine manufacturer in 2020 thank to its position in the offshore sector of India. The company lead the offshore wind market.
Other major wind power companies include GE Power, Suzlon, Sinovel and Goldwind.[Keith Johnson]
Wind Shear: GE Wins, Vestas Loses in Wind-Power Market Race
''Wall Street Journal'', March 25th 2009, accessed on January 7th 2010.
Wind potential
Africa's onshore wind energy potential is calculated of almost 180,000 Terawatt hours (TWh) per annum, which is able to satisfy the electricity demands of the continent 250 times over. In 2009, a technical study by the Wind Energy Technologies Office estimated that the onshore wind energy potential for the United States is 10,500 gigawatt (GW) capacity at 80 meters.
Photovoltaics
Trends
Solar production has been increasing by an average of some 20 percent each year since 2002, making it the world’s fastest-growing energy technology.[ At the end of 2009, the cumulative global PV installations surpassed 21,000 ]megawatt
The watt (symbol: W) is the unit of Power (physics), power or radiant flux in the International System of Units (SI), equal to 1 joule per second or 1 kg⋅m2⋅s−3. It is used to quantification (science), quantify the rate of Work ...
s.[James Russell]
Record Growth in Photovoltaic Capacity and Momentum Builds for Concentrating Solar Power
''Vital Signs'', June 03, 2010.[
According to the China Greentech Report 2009, jointly issued by the PricewaterhouseCoopers and American Chamber of Commerce in Shanghai and released on 10 Sept in Dalian, China, the estimated size of China's green technology market could be between US$500 billion and US$1 trillion annually, or as much as 15 percent of China's forecasted GDP, in 2013. With the positive drivers from the Chinese government’s policies to develop green technology solution, China has already played a more important role in green technology market development. Following the announcements of the Chinese government in 2009 about the new subsidy scheme of “Golden Sun” to support solar industry development in China, some of the worldwide industry players have announced their development plans in this region, such as the agreement signed by LDK Solar regarding a solar project in Jiangsu province with a total capacity of 500MW, manufacturing facilities of polysilicon ingots and wafers, PV cells and PV modules to be built by Yingli Green Energy in Hainan Province, and the new thin film manufacturing plants of Tianwei Baoding and Anwell Technologies. In 2022, solar power market is expected to reach a value of $422 billion.
]
Companies
In 2017, main manufacturers of photovoltaics cells are based in Asia. Nine out of twelve major companies are based in China. The manufacturer Jinko Solar was the leader company in the sector, with 9.86% of the market share, followed by Trina Solar, JA Solar, Canadian Solar and Hanwha Q-Cells.
Tengger Desert Solar Park is the largest solar park in the world, with a capacity of 1,547MW. The park is located in Zhongwei, Ningxia, and it's called the ''Great Wall of Solar.''
Biofuels
Brazil continued its ethanol expansion plans which began in the 70's and now has the largest ethanol distribution and the largest fleet of cars run by any mix of ethanol and gasoline.[
In the ethanol fuel industry, the United States dominated, with 130 operating ethanol plants in 2007, and production capacity of 26 billion liters/year (6.87 billion gallons/year), a 60 percent increase over 2005. Another 84 plants were under construction or undergoing expansion, and this will result in a doubled production capacity.
The ]biodiesel
Biodiesel is a renewable biofuel, a form of diesel fuel, derived from biological sources like vegetable oils, animal fats, or recycled greases, and consisting of long-chain fatty acid esters. It is typically made from fats.
The roots of bi ...
industry opened many new production facilities during 2006/2007 and continued expansion plans in several countries. New biodiesel capacity appeared throughout Europe, including in
Belgium, Czech Republic, France, Germany, Italy, Poland, Portugal, Spain, Sweden, and the United Kingdom.[
Commercial investment in second-generation biofuels began in 2006/2007, and much of this investment went beyond pilot-scale plants. The world’s first commercial wood-to-ethanol plant began operation in Japan in 2007, with a capacity of 1.4 million liters/year. The first wood-to-ethanol plant in the United States is planned for 2008 with an initial output of 75 million liters/year.][
]
Hydropower
''see also: Hydropower
Hydropower (from Ancient Greek -, "water"), also known as water power or water energy, is the use of falling or fast-running water to Electricity generation, produce electricity or to power machines. This is achieved by energy transformation, ...
''
China and Brazil are home to the largest dams in the world. As the largest dam in the world, China’s Three Gorges Dam is the world’s leading source of hydropower. The Itaipu Dam, bordering Paraguay and Brazil, is the second largest dam. The Xiluodu and Belo Monte dams, located in China and Brazil, respectively, follow behind.
Companies
China Yangtze Power Co. is the world’s biggest hydroelectric power company. They oversee the Three Gorges Dam and the Xiluodu dam, and have plans to build two new hydroelectric power plants- the Baihetan Dam and the Wudongde Dam. Centrais Eletricas Brasileiras in Brazil is the second largest company in the world for hydroelectric power, and is in charge of the Belo Monte dam located by the Xingu River.
Employment
Renewable energy use tends to be more labor-intensive than fossil fuels, and so a transition toward renewables promises employment gains. In 2019, 11.5 million people work either directly in renewables or indirectly in supplier industries. The wind power industry employs some 1.7 million people, the photovoltaic sector accounts for an estimated 3.7 million jobs, and the solar thermal industry accounts for about 820,000. More than 3.58 million jobs are located in the biomass and biofuels sector.
Challenges in the Renewable Energy Industry
While renewable energy sources such as solar, wind
Wind is the natural movement of atmosphere of Earth, air or other gases relative to a planetary surface, planet's surface. Winds occur on a range of scales, from thunderstorm flows lasting tens of minutes, to local breezes generated by heatin ...
, and hydropower
Hydropower (from Ancient Greek -, "water"), also known as water power or water energy, is the use of falling or fast-running water to Electricity generation, produce electricity or to power machines. This is achieved by energy transformation, ...
are crucial for reducing carbon emissions and building a sustainable energy
Energy system, Energy is sustainability, sustainable if it "meets the needs of the present without compromising the ability of future generations to meet their own needs." Definitions of sustainable energy usually look at its effects on the e ...
development, their adoption is affect by factors such as high capital costs, infrastructural inadequacies, and market inefficiencies. Additionally, the transition to renewable energy has raised concerns regarding equitable access, particularly for underrepresent communities that lack the financial and infrastructural resources to benefit from cleaner energy sources.
Renewable energy
Renewable energy (also called green energy) is energy made from renewable resource, renewable natural resources that are replenished on a human lifetime, human timescale. The most widely used renewable energy types are solar energy, wind pow ...
has gained much attention over the past two decades due to technological developments, government support measures, and the need to fight the growing threat of climate change. Renewable energy sources include solar, wind
Wind is the natural movement of atmosphere of Earth, air or other gases relative to a planetary surface, planet's surface. Winds occur on a range of scales, from thunderstorm flows lasting tens of minutes, to local breezes generated by heatin ...
, hydro, geothermal and biomass
Biomass is a term used in several contexts: in the context of ecology it means living organisms, and in the context of bioenergy it means matter from recently living (but now dead) organisms. In the latter context, there are variations in how ...
energy sources. These sources are an efficient substitute for fossil energy and a significant weapon in the fight against the world’s energy issues. Renewable energy sources hold a significant market share
Market share is the percentage of the total revenue or sales in a Market (economics), market that a company's business makes up. For example, if there are 50,000 units sold per year in a given industry, a company whose sales were 5,000 of those ...
on the total power capacity indicating the high acceptance rate of the technology around the world.
The most important potential driver for renewable energy adoption is the need to address the issue of climate change. It helps reduce carbon emissions, mitigate climate change, and enhance environmental sustainability, which makes them crucial in serving the battle against climate change. Governments across the globe are setting ambitious policies regarding renewable energy targets, like the European Union’s target of 42.5% of energy from renewable sources by 2030. Likewise, the United States
The United States of America (USA), also known as the United States (U.S.) or America, is a country primarily located in North America. It is a federal republic of 50 U.S. state, states and a federal capital district, Washington, D.C. The 48 ...
and China
China, officially the People's Republic of China (PRC), is a country in East Asia. With population of China, a population exceeding 1.4 billion, it is the list of countries by population (United Nations), second-most populous country after ...
, which are the largest consumers of energy globally, have also invested massively in clean energy infrastructure, especially in capacities for solar and wind
Wind is the natural movement of atmosphere of Earth, air or other gases relative to a planetary surface, planet's surface. Winds occur on a range of scales, from thunderstorm flows lasting tens of minutes, to local breezes generated by heatin ...
energy.
Renewable energy has been revolutionary in developing countries. Some developing countries use decentralized renewable energy systems lik
solar microgrids, and off-grid wind turbines in inaccessible places to generate power
For instance, India
India, officially the Republic of India, is a country in South Asia. It is the List of countries and dependencies by area, seventh-largest country by area; the List of countries by population (United Nations), most populous country since ...
and Kenya
Kenya, officially the Republic of Kenya, is a country located in East Africa. With an estimated population of more than 52.4 million as of mid-2024, Kenya is the 27th-most-populous country in the world and the 7th most populous in Africa. ...
have led large-scale installation of solar projects to replace costly and environmentally unfriendly diesel generators. The African Development Bank’s “Desert to Power” plan envisions the deployment of at least 10 GW of solar in the Sahel region to light up millions of homes.
However, the renewable energy sector has its challenges
Wind and solar power production are as unpredictable
as the weather and this means there must be ways of storing energy, perhaps through batteries or hydrogen fuel cells. However, the integration of renewable energy in existing power systems calls for massive investment in both infrastructure and smart grid systems. Challenges are mainly related to financing as many countries, especially the developing ones, cannot afford the start-up costs.
Some of those challenges are, however, being overcome by the developments in technology in the recent past. The advancement in perovskite solar cells has increased the efficiency and affordability of the panels. Large blade lengths and the use of floating structures are increasing the wind energy capabilities. At the same time, renewable energy sources like wind, photovoltaic solar energy, and so on have become more reliable due to energy storage options like large batteries, and green hydrogen.
Technological and Infrastructure Challenges
One of the key challenges in the renewable energy sector is the technological and infrastructural limitations associated with integrating renewable sources into existing energy grids. Many developing countries, particularly in South and Southeast Asia
Southeast Asia is the geographical United Nations geoscheme for Asia#South-eastern Asia, southeastern region of Asia, consisting of the regions that are situated south of China, east of the Indian subcontinent, and northwest of the Mainland Au ...
, struggle with outdated power grids that are not equipped to handle variable energy sources such as wind and solar power. The lack of efficient storage technologies further raise this concern, as energy generated from renewable sources must be consumed in real-time or stored in costly battery systems.
Financial and Economic Barriers
The high initial capital costs associated with renewable energy infrastructure pose a significant barrier to its widespread adoption. Unlike fossil fuels
A fossil fuel is a flammable carbon compound- or hydrocarbon-containing material formed naturally in the Earth's crust from the buried remains of prehistoric organisms (animals, plants or microplanktons), a process that occurs within geologica ...
, which benefit from well-established systems, renewable energy projects often require substantial upfront investments. In ASEAN
The Association of Southeast Asian Nations,
commonly abbreviated as ASEAN, is a regional grouping of 10 states in Southeast Asia "that aims to promote economic and security cooperation among its ten members." Together, its member states r ...
countries, for example, financial constraints have limited the adaptation of large-scale renewable energy initiatives. Green bonds and other financial instruments have been proposed as solutions to bridge this gap, but their impact remains limited due to underdeveloped capital markets in many regions.A key example is Indonesia
Indonesia, officially the Republic of Indonesia, is a country in Southeast Asia and Oceania, between the Indian Ocean, Indian and Pacific Ocean, Pacific oceans. Comprising over List of islands of Indonesia, 17,000 islands, including Sumatra, ...
's green sukuk bond, which raised $1.25 billion to support renewable energy projects, particularly in underdeveloped regions.
Policy and Regulatory Challenges
Inconsistent policies and regulatory frameworks present another significant challenge to the expansion of renewable energy
Renewable energy (also called green energy) is energy made from renewable resource, renewable natural resources that are replenished on a human lifetime, human timescale. The most widely used renewable energy types are solar energy, wind pow ...
. Many countries lack a unified approach to renewable energy investment, leading to fragmented and uncoordinated efforts. For instance, while ASEAN
The Association of Southeast Asian Nations,
commonly abbreviated as ASEAN, is a regional grouping of 10 states in Southeast Asia "that aims to promote economic and security cooperation among its ten members." Together, its member states r ...
nations have set ambitious renewable energy targets, the implementation of these policies varies widely, with some governments prioritizing fossil fuels
A fossil fuel is a flammable carbon compound- or hydrocarbon-containing material formed naturally in the Earth's crust from the buried remains of prehistoric organisms (animals, plants or microplanktons), a process that occurs within geologica ...
due to economic and political considerations. The absence of centralized monitoring systems further complicates policy enforcement and evaluation.
Equity and Access to Renewable Energy
The transition to renewable energy has also highlighted disparities in access to clean energy, particularly among underprivileged communities. Rural populations in many developing countries still rely on traditional energy sources such as firewood
Firewood is any wooden material that is gathered and used for fuel. Generally, firewood is not heavily processed, and is in some sort of firelog, recognizable log or branch form, compared to other forms of wood fuel like pellet fuel, pellets. ...
, which are inefficient and pose health risks. Large-scale hydropower
Hydropower (from Ancient Greek -, "water"), also known as water power or water energy, is the use of falling or fast-running water to Electricity generation, produce electricity or to power machines. This is achieved by energy transformation, ...
projects, while providing renewable energy
Renewable energy (also called green energy) is energy made from renewable resource, renewable natural resources that are replenished on a human lifetime, human timescale. The most widely used renewable energy types are solar energy, wind pow ...
, have led to environmental degradation
Environment most often refers to:
__NOTOC__
* Natural environment, referring respectively to all living and non-living things occurring naturally and the physical and biological factors along with their chemical interactions that affect an organism ...
in countries like Cambodia
Cambodia, officially the Kingdom of Cambodia, is a country in Southeast Asia on the Mainland Southeast Asia, Indochinese Peninsula. It is bordered by Thailand to the northwest, Laos to the north, and Vietnam to the east, and has a coastline ...
and Laos
Laos, officially the Lao People's Democratic Republic (LPDR), is the only landlocked country in Southeast Asia. It is bordered by Myanmar and China to the northwest, Vietnam to the east, Cambodia to the southeast, and Thailand to the west and ...
. Decentralized renewable solutions, such as solar mini-grids, have been proposed as a means to address energy poverty, but their implementation remains uneven due to financial constraints.
See also
* Clean Energy Trends
** List of concentrating solar thermal power companies
* List of countries by electricity production from renewable source
*List of the largest hydroelectric power stations
This article provides a list of the largest hydroelectric power stations by generating capacity. Only plants with capacity larger than 3,000 MW are listed.
The Three Gorges Dam in Hubei, China, has the world's largest instantaneous generating cap ...
* List of large wind farms
* List of solar thermal power stations
* Symbiocity
* Renewable-energy economy
* Renewable energy policy
* Renewable energy development
* Sustainable industries
* The Clean Tech Revolution
* Clean Technology Fund
* Green-collar worker
References
Bibliography
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{{DEFAULTSORT:Renewable Energy Industry
Energy development
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