A recent article in The Economist provides insight into far reaching positive consequences from shifting to renewable energy. The article focuses on the development of wind driven energy based in the North Sea. The analysis in the article goes beyond the basic fact that the wind powered energy will reduce carbon emissions to look at the impact on the political and economic power shifts that may result from a wind-based power system.
At the same time the article does not ignore the challenge of wind-based renewable energy. Based on my walks along the beach in The Netherlands, I can testify to the strength of the winds of the North Sea. However, these winds are not always present and the article notes the need to address the variability. The need for investment in more efficient interconnections of power grids as well as the development of “green energy storage” through creating of hydrogen or ammonia is noted in the article.
Overall the article provides an optimistic view on the potential shift to renewable energy from wind. Emphasising and supporting the development of this future should be a key focus for any financial institution looking to the future rather than continuing to invest in the dying past of fossil fuels.
