The global awareness campaigns across the world and the decisive steps being taken to reduce fossil fuel emissions have brought renewable energy sources to the forefront in the construction and development industry. Many developers are tapping into renewable energy for sustainable building design portending an impressive growth for the renewables sector.
Need for Investing in Renewable Energy
Renewable energy is fast-becoming a way of life, instead of being considered merely as an alternative source of fuel. There are several reasons that have contributed to this rapid growth in the popularity of renewables, making investment in sustainable sources a smart idea.
#1. Rise in Market Share of Renewable Energy
The market share of renewable energy is growing at an unprecedented rate. According to a report published by BNEF, renewable energy sources are expected to account for over 60% of the total new energy generated by 2030, while the contribution of fossil fuels is anticipated to reduce to 46%. Hydropower and passive solar building design are expected to dominate the sustainable design sector, with rooftop solar becoming a popular option in developing nations.
#2. Increased Funding for Research and Development
There has been a substantial increase in the funding for research in renewable energy, with innovative designs being created every day. Many investors are ready to appropriate a portion of their budgets for revision of useful old techniques and invention of new ones to improve the quality and energy-efficiency of building design, thereby improving building performance.
#3. Greater Awareness
There is an increase in awareness amongst the common public about the need for reducing, or eliminating, fossil fuel emissions for a sustainable future. Many projects in Dubai are targeting zero net energy consumption in response to the increased demand for clean and green homes by the populace.
#4. Enforcement of Rules and Regulations
Global energy targets have made it imperative for countries to adopt more environment-friendly measures in design and development. Green building consultants in Dubai are exploring innovative HVAC and system designs to fulfil the requirements of the rules and regulations for building services engineering.
#5. Volatility of Fossil Fuels
The volatility of fossil fuel prices creates a persistent need for alternative fuel sources. Renewable energy fulfils this need and offers a vast scope for sustainable development.
These factors contribute towards creating the need for investment in renewable energy. Let us see some of the advantages of the same.
Advantages of Investment in Renewable Energy
#1. Reduced Price Gap Between Renewable and Non-Renewable Energy
The cost of renewable energy is decreasing rapidly due to continuous innovation in technology. This has effectively reduced the price gap between renewable and non-renewable sources, which makes redundant one of the major reasons why conventional methods of energy generation were preferred.
#2. High Return on Investment in the Long Term
The life of renewables is far longer than that of non-renewables and the former offer a much better return on investment. The ROI is expected to further increase as various nations offer subsidies for integrating renewable energy in MEP design for improved building performance.
#3. Transparency in Transaction
The transparency in transaction while investing in renewable energy endears it to the end-users, who can see exactly where and how their money is being spent. The consistency in returns makes renewable energy investment more lucrative as well.
#4. Increase in Opportunities for Investment
There are numerous global initiatives that offer excellent opportunities for investment in renewable energy. Countries like Dubai, Germany, Australia, Japan, and other are targeting over 60% of energy production through renewables alone, by 2050. This offers great opportunities for MEP in construction to make sustainable initiatives a part of their portfolio.
The world’s perspective towards sustainable energy resources has undergone a profound change. MEP consultants are no longer considering renewable energy sources merely from the compliance angle but maintain a performance-based approach and are making sincere efforts to invest in renewable energy for a sustainable future.