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Renewable energy -hope for a sustainable futureThe damaging effects of climate change are already upon us. So far this year, locals and tourists have been forced to flee raging wildfires in the beautiful islands of Greece. In Madagascar, more than a million people are suffering from hunger and malnutrition due to the worst drought in 40 years1. Flash floods in Sudan have displaced large populations and damaged infrastructure and crops. In China, wild weather swings have brought torrential rains in some parts, while other regions bake in scorching heat. That is anything but an exhaustive list. And so, we must act now to stop human induced climate change. Fortunately, the world has awakened to this realisation. The gap between global investment in clean energy versus that in fossil fuels is starting to widen. This blog outlines some of the biggest renewable energy mega projects happening around the world which show that, when bold ambition meets innovation, there is hope for a more sustainable future. Energy Island, Denmark Denmark is building an artificial island capable of powering the entire country in what the Danish government claims is a ‘gigantic green quantum leap’. The island will be built 60 kilometres (km) offshore to benefit from stronger winds, be the size of 18 football pitches, and could house up to 600 giant wind turbines. Denmark plans to complete the project by 2030 with the aim of supplying 3-4 gigawatts (GW) of energy and ultimately expanding to almost 10GW. This future expansion will allow Denmark to export energy generated from the island2. Denmark constructed the world’s first offshore wind farm in 19913 and has, since then, had a strong focus on generating renewable energy from the strong winds in the North Sea. This project will be a monumental culmination of that policy focus. In addition to wind power generation, the island will also have battery storage and an electrolysis plant to produce green hydrogen. This trio of technologies that will be situated on the island neatly illustrates their interconnectedness. Battery storage is essential to make wind a dependable source of energy, by enabling it to be deployed as and when required, particularly over shorter durations of time. The production of green hydrogen requires a current of renewable energy to be passed through water to separate hydrogen from oxygen. That hydrogen can then serve as a store of energy for long periods of time, like days or weeks, and can be converted back into electrical energy through fuel cells. Scaling up all three together is a smart course of action. Gansu Wind Farm, China The Gansu Wind Farm in China’s first phase was completed in 2010 with a 5.16GW capacity and has since held the spot as the world’s largest wind farm. The project continues to expand and, in 2021, its capacity reached 10GW. When finished, it will comprise 7000 wind turbines and reach a capacity of 20GW4. The Gansu Wind Farm sits on the outskirts of the Gobi Desert in northern China, considered an extremely remote and hostile area. To get electricity from the wind farm, China has built a 2,383 km transmission line5. The Gansu Wind Farm highlights how, with enough willpower, onshore wind (turbines on land) can be deployed at scale. Onshore wind projects often face their own set of challenges when land is at a premium. There is often an opportunity cost of building large onshore wind farms if space must be taken away from agriculture or housing, or if there are ecological risks. By contrast, the Gansu Wind Farm resides in an uninhabitable part of the world with very windy conditions making it a highly fruitful endeavour for harnessing onshore wind, albeit one requiring a bit more effort to build and maintain. Bhadla Solar Park, India What else is abundant in a desert? Sunshine. The Bhadla Solar Park in India’s desert state of Rajasthan is the largest solar farm in the world, spanning over an area of 14,000 acres. The farm was commissioned in 2017, has a capacity of 2.25GW, and contains over 10 million solar panels6. One of the challenges faced by solar power projects situated in deserts is that sand can form a layer over the modules restricting the amount of sunlight that goes through. To overcome this challenge, the facility uses robotic cleaners that employ microfibre rollers to clean the panels7. For a country like India where there is plenty of sunlight, solar power makes a lot of sense. Again, deserts may be hostile environments for installing and maintaining such projects, but these projects minimise the opportunity cost of using land for creating solar power. For an emerging economy with a large population and substantial energy needs, such projects also reduce the country’s dependence on fossil fuel imports, a great outcome for both the environment as well as the economy. Dezhou Dingzhuang Floating Solar Farm, China The Dezhou Dingzhuang Floating Solar Farm in Dezhou, China is the largest floating solar farm in the world. The solar panels float on a reservoir in Shandong – an eastern province of China on the Yellow Sea. The total capacity of this project is 320 megawatts (MW). It is also connected with 8 megawatt hours (MWh) of battery storage and a 100 MW wind farm which together make up the Huaneng Dezhou Dingzhuang Integrated Wind and Solar Energy Storage project8. Floating solar offers numerous benefits, including maximising land use efficiency, conserving water resources by reducing evaporation, improving solar panel efficiency through cooling effects, and enhancing grid stability by being located closer to where the demand is. A final word Renewable energy projects are becoming bolder, more innovative, and being built with a greater sense of urgency. This has exciting implications for the renewable energy value chain. For example, more modules need to be manufactured so they can be installed in large solar farms around the world. Wind turbines, which are becoming bigger and bigger, need to be manufactured at scale to establish onshore and offshore wind farms. Hydrogen electrolysers are required to produce green hydrogen and fuel cells are needed to use green hydrogen as a fuel source. Similarly, when wind turbines or solar modules float on water, specific components are needed to make that happen. All of this creates promising opportunities for investors in the renewable energy value chain. Sources 1 Source: United Nations, July 2023. 2 World Economic Forum, The Danish Energy Agency (part of the Ministry of Climate, Energy and Utilities), 2023. 3 The Danish Energy Agency (part of the Ministry of Climate, Energy and Utilities), 2023. ens.dk 4 Discover Clean Tech, 2023. discovercleantech.com 5 Discovery UK, 2023. www.discoveryuk.com 6 Ornate Solar, 2023. ornatesolar.com 7 National Geographic India. 8 YSG Solar, 2022. This material is prepared by WisdomTree and its affiliates and is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. The opinions expressed are as of the date of production and may change as subsequent conditions vary. The information and opinions contained in this material are derived from proprietary and non-proprietary sources. As such, no warranty of accuracy or reliability is given and no responsibility arising in any other way for errors and omissions (including responsibility to any person by reason of negligence) is accepted by WisdomTree, nor any affiliate, nor any of their officers, employees or agents. Reliance upon information in this material is at the sole discretion of the reader. Past performance is not a reliable indicator of future performance.
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by aneekaguptaWTE
Copper: the irreplaceable raw material for renewable energyCopper is one of the few elements that has been used by humans for over 10,000 years. Archaeological evidence suggests that copper was first discovered and utilised by ancient civilisations as early as 9000 BCE1. Its malleability, durability, and excellent conductivity made it highly prized for tools, weapons, and decorative objects. Copper's rich history as a valuable and versatile metal showcases its enduring significance and timeless appeal. Today, copper’s importance in the global economy continues to rise, especially given the boom in renewable energy. Copper is an excellent conductor of electricity, making it an ideal material for renewable energy systems. Its high electrical conductivity allows for efficient energy transfer, minimising power losses during transmission and distribution. Moreover, copper's unparalleled malleability and ductility, which refer to its ability to be easily shaped and stretched without breaking, make it incredibly challenging to substitute with other materials. High intensity in wind and solar Today, wind and solar are among the most mainstream forms of renewable energy. The figure below shows how much more copper is required when generating power from offshore wind (wind turbines in the seas), onshore wind (wind turbines on land), and solar photovoltaic (PV) compared to fossil fuels like coal and natural gas. Copper is extensively used in wind turbines. It is employed in generator coils, transformers, and electrical cables. The strong magnetic properties of copper enable efficient power generation and ensure reliable performance in wind turbine systems. Copper is also a crucial element in solar panels. It is used in the wiring, busbars2, and connectors within the panels. Copper's excellent electrical conductivity facilitates the efficient conversion of sunlight into electricity and supports the overall performance of solar energy systems. For the power generated from renewables to ultimately be deployed effectively, electrical grid infrastructure and energy storage are also needed. Copper, once again, is integral in building both. In energy storage systems, which complement renewables by storing energy for days when the wind isn’t blowing or the sun isn’t shining, copper is used in batteries and supercapacitors3. It is utilised in the conductive components, such as electrodes and current collectors, enhancing the efficiency and durability of energy storage devices. In electrical grid infrastructure, copper is extensively used in power cables, transformers, and distribution systems, ensuring the reliable transmission of electricity from renewable sources to end consumers. Doing it sustainably Copper is deemed to have infinite recyclability. This means that the metal does not lose any of its properties and can be used again and again. Recycled copper requires 85% less energy than primary production4. This highlights the huge environmental benefit of recycling the commodity. Today, roughly a third of total copper production comes from recycling. This means that, as we scale up renewable energy, we must also bolster the recycling industry. Copper’s infinite recyclability will make that a fruitful endeavour. The irreplaceable metal In conclusion, copper stands as an irreplaceable raw material for renewable energy. Its exceptional electrical conductivity, second only to silver, positions copper as the ideal choice for efficient energy transfer in wind turbines, solar panels, energy storage systems, and electrical grid infrastructure. As the world embraces renewable energy on a larger scale, the demand for copper will continue to grow. And given its infinite recyclability, if the world deploys its resources appropriately, this growth can be sustainable. Sources 1 Copper Development Association. 2 A busbar is a rigid conductor used for connecting several circuits. 3 Supercapacitor is an electronic device that store large amount of electric charge. 4 Copper Alliance.
COMEX:HG1!
by aneekaguptaWTE
Renewable energy – a requisite tool for tackling climate change"The electric light did not come from the continuous improvement of candles." – Oren Harari In the year 1900, the world had a simple energy mix. One half of total energy supply came from coal and the other came from biomass. Gas, oil, and hydropower existed but paled in comparison. Fast forward 121 years, by 2021, things had changed in two key aspects. First, oil and gas had come head-to-head with coal to collectively account for nearly 77% of the energy mix. And second, total energy consumption had increased 14x1. This drastic increase in our energy consumption, and demand mostly satiated by fossil fuels, has created a problem. It has left us with a carbon budget of 380 gigatons of CO2 equivalent from the start of 2023. In other words, we could hit 1.5°C of warming in 9 years2. That is, unless things change meaningfully. Not continuous improvement, but radical change. Like shunning fossil fuels for cleaner alternatives. Not only is this essential but, luckily, it is now achievable thanks to the advancement of renewable energy. At the heart of the energy transition Consider the gap between the base case (dark blue line in the chart below) in Figure 1 and the path we must adopt in the 1.5°C scenario (teal line). The teal scenario appears to be possible by doing a combination of two things. Where decarbonisation of power and transportation is possible, it must be done. Where it isn’t, say heavy industries like steel and cement, carbon capture must be employed. Scaling up renewable sources of energy, therefore, is at the heart of this endeavour. A more efficient alternative Historically, our total energy consumption has only moved in one direction – upwards. While population growth and advancement in industrialisation and technology are the prime reasons for this, another contributing factor is that energy efficiency has seldom been achieved on a large scale. But with the rapid electrification of transport and buildings, efficiency gains vs using fossil fuels could result in total end-use demand for energy peaking by 2028 and, potentially, declining thereafter (in a 1.5°C scenario). Wind and solar have arrived Among renewables, wind and solar are expected to play the leading role (see Figure 3). There are numerous reasons for this. First, both technologies have been around long enough to see significant cost reductions in recent years. According to a Bloomberg New Energy Finance report published in June 2022, new onshore wind now costs about $46 per megawatt-hour (MWh), while large-scale solar plants cost $45 per megawatt-hour. In comparison, new coal-fired plants cost $74 per MWh, while gas plants cost $81 per MWh. Second, most places in the world have access to either wind or sunshine (if not both). The only challenge that needs to be overcome, therefore, is obtaining the necessary funding required to install renewable energy farms. And third, wind and solar are seeing some exciting innovations. Consider floating offshore wind as an example. Floating offshore wind power has several benefits as a source of renewable energy. First, floating wind turbines can be deployed in deeper waters where traditional fixed-bottom turbines cannot reach. This allows for greater access to stronger and more consistent wind resources, which can generate more electricity at a lower cost. Additionally, floating offshore wind turbines are less visible from shore and have a smaller environmental footprint compared to onshore and fixed-bottom offshore wind farms. Furthermore, floating offshore wind farms have the potential to be located closer to population centres, reducing transmission costs, and improving energy security. Lastly, because they are not limited by the ocean floor, floating wind turbines can be moved to different locations if needed, making them a more flexible option for renewable energy production. Wind and solar can be complemented by emerging sources of renewable energy like hydrogen. Green hydrogen, which is produced through the renewable electrolysis of water, that is, passing a current of renewable electricity through water, has the potential to help decarbonise both heavy-duty transport like trucks, ships, trains, and airplanes, and energy-intensive industries like steel and coal. As the production of green hydrogen achieves scale, cost-reductions will foster further growth. The pathway forward Renewable energy can help the energy sector deliver net zero with the aid of the following: 1. Effective policy design - regulatory, commercial, and technical barriers to entry be removed. 2. Capital - by 2050, US$47 trillion is required to deliver the generation and infrastructure of a net zero energy system3. 3. Technology – wind and solar will need to be supported by emerging technologies like hydrogen and carbon capture. 4. System flexibility – innovative ways of energy storage and distribution will need to support renewable energy. 5. Sustainability – recycling will need to be scaled up to ensure we efficiently utilise natural resources. Renewable energy is being fuelled by political will, technological progress, and investor interest. It is an exciting time to employ this tool in our fight against climate change. Sources 1 Source: Visual Capitalist as of 10 March 2023 with original data from ‘Our World in Data’. 2 Intergovernmental Panel on Climate Change, 2023. 3 Wood Mackenzie, 2023.
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by aneekaguptaWTE
GoldWind is back after waiting for pullbackIf we see the consolidation around 11.50 to 12.50 this area shows a good spike in volume and breakout of its consolidation. With China's renewable energy push, Wind energy has been very quiet considering all other areas of renewable energy have been accelerating. Also since the launch of the Carbon Trading Exchange on Friday, this might be good enough a push to draw attention back to the wind industry. Entered trade at 12.50 and look to take profit at around 15.50. Other wind names that look attractive are : MingYang Smart Energy 601615 (has already started its uptrend but its valuation is higher due too its higher growth rate) Dajin heavy Industry 002487 (breaking out of consolidation same like Goldwind but with less volume) maybe a laggard so it could be a good secondary trade to follow up Shanghai Taisheng 300129 (Halted trading on 18th due to change in share structure) There was a big bullish breakout before Sunday so I expect this to follow through with further upside. Happy Trading all.
SZSE:002202Long
by Joeyismoney
EOLUS VIND (EOUL_B) | Renewable Energy From SwedenHi, Eolus Vind AB (publ) primarily engages in the development, establishment, and operation of facilities for renewable energy and energy storage in the Nordic region, Sweden, Norway, Finland, Baltic countries, and the United States. The company operates through three segments: Project Development, Asset Management, and Electricity Generation. It engages in the operation of wind turbines; production and sale of electricity; and sale of electricity certificates. The company is also involved in the pre-study, project development, and establishment of wind power facilities. If you have faith in renewable energy and wind power then this might be your chance. Technically, I can see that the long-term growing "platform" is pretty solid, it stays between 170-200 SEK. Do your own research about fundamentals, company potential, valuation numbers and etc. Do not forget that the perfect investment decision consists of good fundamentals (you have to make your own research) and you need a good buying area (you have it)! Stay healthy, Vaido
OMXSTO:EOLU_BLong
by VaidoVeek
2
$BWEN Potential Exit Eyed at 5.7/share: LONGWith an average cost of 3.56/s on BWEN, the targetted sell range is a temporary previous-high (roughly) at 5.7/s. That said, trends are not supporting this run. Potential EXIT @ 3.40. This is currently targetted as a LONG to match the traceback to these lower levels, preying on a full-correction to that mark. This is quite far from the most profound analysis this trader provides, but it is a brief touch on a LONG, if nothing else. HAPPY TRADING! -BDR
NASDAQ:BWEN
by BDRTrigger33
CNRG is the best-performing clean power ETF over its lifetimeI'm highly interested in energy right now, but in the long term I'm just really worried about the oil and gas industry. Thanks to Swanson's Law, the price of solar panels continues to fall. Battery technology is also rapidly getting better, and we seem to be witnessing the mainstreaming of electric cars. According to FactSet, the "Independent Power and Renewable Electricity Producers" segment grew its earnings by an astounding 138% last year, making it the fastest-growing segment of the market. That's why I decided it's time to get in. In planning my entry, I compared nine clean energy ETFs to see which one offers the best performance over time. The second-best performer was QCLN, a passively managed FirstTrust Green Energy ETF. The reason this fund has done so well is its high exposure to Tesla, which comprises 10% of its holdings. That worries me, because Tesla's current valuation is extremely high at a forward P/E of over 70, and QCLN's forward P/E is accordingly also pretty high at over 24. It also has a pretty bad price-to-cash-flow ratio of about 13, which makes me worry about the financial health of the companies in the fund. So I was glad to find an even better performing ETF that's at a more attractive valuation: CNRG. CNRG, an SPDR "enhanced strategy" fund, is only about a year and a quarter old, so there isn't a ton of history to go on. During that time, however, it has handily beaten QCLN. Also, the fund's valuation is better by pretty much every metric, with a P/E closer to 19 and a price-to-cash-flow of about 10. That's still high, but it's more defensible than the QCLN numbers. Both funds pay about 1.2% in dividends. CNRG's largest holding is micro-cap fuel cell maker FCEL, which has rallied since a huge earnings beat last quarter. Exposure to FCEL could make this fund a lot more volatile than QCLN. Here's CNRG compared to QCLN: And here's CNRG vs. the S&P 500:
AMEX:CNRGLong
by ChristopherCarrollSmith