With the soaring electricity consumption, the question of renewable energy is more pressing than ever. In the face of environmental challenges and sustainability imperatives, it is crucial to ask whether green solutions can truly meet the growing demand. Renewable energies, such as solar and wind, represent a glimmer of hope for a sustainable energy future. However, can they really explode in popularity and production capacity in a context where the need for an energy transition is increasingly urgent? This topic deserves to be explored in depth, as the answer could well determine our collective future.
An increased need for renewable energies
The demand for renewable energies is expected to triple over the next seven years. The rapid development of data centers, essential for supporting the proliferation of artificial intelligence, is one of the main drivers of this growth.
For example, NextEra Energy, a leading company in the field, recently added 3000 megawatts of renewable and storage projects to its order book. Notably, 28% of these projects are intended to power Google’s data centers.
Renewable energy projects on the rise
NextEra Energy, with already seven gigawatts of renewable assets in operation and reserve, anticipates a promising future for green energies. The company hopes to meet the rapid growth in energy demand through a combination of renewable sources and battery storage.
In parallel, the renewable energy sector is benefiting from strong investor enthusiasm. Since the beginning of the year, NextEra’s stock has gained 24%.
The challenges of growing energy demand
According to NextEra’s forecasts, the demand for electricity is expected to grow four times faster over the coming decades compared to the past twenty years. This increase is primarily due to the needs of data centers, manufacturing, and the electrification of the economy.
The consulting firm Rystad Energy estimates that data centers and the adoption of electric vehicles will alone generate an additional 290 terawatt-hours of electricity demand in the United States by 2030.
Natural gas: an indispensable complement
Although the future looks promising for renewable energies, natural gas remains a key element in meeting energy needs, especially as a transitional fuel. The importance of natural gas lies in its ability to bridge the fluctuations in renewable energy production, which depends on weather conditions.
For example, building a new generation based on natural gas is costly and subject to fuel price volatility. Additionally, it requires significant lead times for the delivery and installation of gas turbines.
Nuclear: an option to consider
With the rise in energy demand, interest in nuclear energy, as a reliable and carbon-free source, is increasing. NextEra is even considering reviving the Duane Arnold nuclear plant in Iowa, which was closed in 2020, after a thorough assessment of risks and mitigation measures.
Progress and projections for the future
NextEra has been categorized as a promising investment by 70% of Wall Street analysts, reflecting a growing confidence in its ability to meet future requirements for green energy.
The combination of renewable energies with other sources like natural gas and nuclear could well be the key to meeting the growing electricity demand. Thus, the future of renewable energies indeed looks very promising.
