A Critical Analysis Of Alternative Renewable Energy

A Critical Analysis Of option Renewable Energy gatewayIn this chapter I go away provide brief everywhereview and scope of the dissertation. I leave alone present the highlights of the major topics that pass on be covered in this dissertation and summary go forth be presented of the later chapters. The dissertation pass on be research based and the research sources go away be from journals, books and internet articles. Through this research I will explain the objective lenss and objectives of the dissertation which will be covered in this chapter. Furthermore I will likewise look upon the need for selection renewable get-up-and-go in this chapter and the benefits pick dexterity brings to the environment, association and corporations. The gain in the preference heartiness industry will also be mentioned a persistent with theoretical poser and research methodology.Aims and objectivesThe main focus of the dissertation will be on the benefits of alternative renewable ability. The supply of traditional energy resources such as petroleum, gunslinger and coal atomic number 18 depleting and ever change magnitude postulate of these energy resources is drawing our attention towards alternative renewable energy frankincense one of the aims of my dissertation is the need for alternative renewable energy. Alternative renewable energy doesnt impact the environment, society and mood in a negative way gum olibanum the second aim of my dissertation will be the advantages of various forms of alternative renewable energy sources. The investiture in development of alternative energy sources is very limited generally because of the perception that this investment will not match the profits generated by investment in traditional energy sources. Contrary to this popular opinion I have designed another aim of my dissertation which will be the benefits of alternative renewable energy to corporations. Since there is lack of confidence in striking corporatio ns so I will also consider the limitations in development of alternative energy industry and will present the solutions to these limitations in my dissertation.Justification of the humbleIn the recent past the world has heavily relied on traditional energy sources such as oil, gun and coal. The growth in industrialization in all come aparts of the world particularly India and China and in developed parts of the world U.S, Japan and Europe has increased the global demand of oil and made these countries net importers of oil. The supply of oil by OPEC and Non-OPEC members is decreasing and there ar not sufficient oil resources to meet the ever change magnitude demand of energy. Moreover oil has huge impacts on the society and the environment particularly in the form of oil spills. The dependency on oil is ever-changing the climate of this earth and increasing the threat from global warming. I believe to meet the demand deficit of energy it is judgment of conviction that the world should consider investment and growth in alternative renewable energy sources. The decreasing supply of oil and its adverse impacts on the environment and society increases the need for alternative energy sources. Alternative energy sources bring along benefits to the society, environment and corporations and thus it is the need of this hour that upcoming and large oil and gas companies shift from traditional energy to alternative renewable energy.Some background to the problemNeed for alternative energyAs Hasan separated in his report Introduction to alternative energy on page 1 that the worlds dependence upon oil and the decrease in traditional sources of energy such as oil, natural gas, coal and nuclear exponent is changing the structure of this world. The world is heavily oil dependent rather I will say addicted to oil and the growth in industrialization in all parts of the world is increasing this dependency on oil. up to now at the equivalent time there is decrease in th e supply of traditional energy. The resources of traditional energy are limited and due to depletion these resources toleratenot match the demand of energy and thus it is believed by every authority that without alternative energy the festering demand of energy in the prox cannot be met. The global supply of coal, oil and gas is limited plot nuclear energy is dangerous and thus the discovery of alternative renewable energy sources is of utmost importance to meet the energy challenge. The traditional energy sources such as oil, gas, coal and nuclear ply are not renewable and produce a lot of waste products and harm the environment. The smoke and chemicals produced by these sources pollutes the air and affects global warming. On the other tump over alternative renewable energy doesnt impact the environment and for these reasons the need for these sources is at its peak. Alternative energy sources are environmental friendly and technologically advanced and at the uniform time re newable energy will strengthen the core businesses of oil and gas companies. It is believed by all that alternative renewable energy will replace the traditional energy in years to come.1.4.2 Growth in the Renewable Energy MarketWith time the world is seeing the growth in alternative renewable industry and greater investment is coming in this industry from public and private sector e.g. the investment in renewable energy capacity rose from $30 billion in 2004 to $38 billion in 2005 (Alternative energy A global survey, 2007 pg 4). According to survey on alternative energy conducted by Goldman Sachs in 2007 the increase in investment can be attributed to following factorsThe supply of traditional energy resources is uncertain and at the same time the energy terms is high which increases the make up of drudgery. On the other reach the cost of renewable energy is low and the supply is unlimited.Alternative energy reduces cost and thus increases competitiveness and at the same time i t allows small players to match the threat from big players. Traditional energy doesnt bring economies of scale not energy efficiency.Various political sympathiess done laws are promoting the use of alternative renewable energy e.g high task on coal and at the same time grants for companies expanding in the alternative energy sector.People these days are more aware of impacts of traditional energy on the environment and thus for better future the support the alternative energy sources.Moreover the global survey conducted by Goldman sachs in 2007 also identified certain macro factors are also increasing the importance of alternative renewable energy and among them include Continued global economic growth The world is seeing the emergence of new economic powers in the form of Brazil, China, India and Russia and in order for these countries to continue grow economically new alternative energy is required.. Continued population growth The worlds population is growing and except peop le from rural areas are shifting to urban areas. In order to meet the energy challenge of this growing population new cost hard-hitting alternative energy sources are required.. Climate change the traditional energy is a great threat to the climate particularly in the form of GHG emissions associated with fogy fuel and thus in order to protect the climate environmental friendly renewable energy is required.1.4.3 Various forms of alternative energyAlternative renewable energy is a form of energy that is renewed by the natural processes of Earth and is environmental friendly such as sunlight from the sun or wind from the air. In this section I will consider various forms of alternative renewable energy sources easy which were presented by Hasan in his report Introduction to alternative energy on page 2, 3 and 4.Solar energySolar energy comes from the light of sun and it can be mailed through the use of solar power cells. Sunlight is free, easy to harness and accessible to everyone. It is difficult to harness solar power on a larger level and thus solar power has more usage in home electricity production. The only cost involved in creating solar energy is the cost of solar panels. Apart from the low cost of solar energy, the power is environmental friendly and no waste byproduct is produced through the creation of this power. At the same time solar power promotes a greener future. Sun light from the sun can be utilise to construct solar power at a domestic level and at the state level. Currently many households and companies create solar energy by putting solar panels on the roof of their buildings and thus protect the environment from unfriendly waste material and at the same time benefit from low cost of energy.Wind EnergyWind power is another form of renewable energy which protects the environments and creates electricity at low cost. Wind power is harnessed though the use of wind turbines which are moody by the wind to produce electricity. Wind is vulne rable to weather conditions but in costal offshore and high altitude areas there is a smasher supply of wind. Wind power can be used to produce electricity at a large level by using triplex turbines and at the same time at a household level. Critics of wind power claim that the generation of wind power through use of turbines core in ugly noise and kill birds however the benefits in the form of low cost and friendly environment outweigh the disadvantages. geothermic energyGeothermal energy is another cost good renewable energy which draws energy from the planets core through thermal power stations. The heat from planet boils a luculent which evaporates to turn turbines, producing the electricity. The cost is low because the heat is free and only cost incurred is of a thermal station. Geothermal is an environmental friendly energy that doesnt pollute or produce waste material and it can be used for heating and cooling purpose.Hydroelectric energyHydroelectric power is created th rough water and it comes from dams which harness the power of rivers. The water passes through turbines at base of dam and thus electricity is generated. Hydroelectric energy is created on macro level by the state of or companies and not at a household level. Hydroelectric energy produces no pollution at all and promotes a greener world.tidal PowerTidal power is another form of renewable energy that can provide clean and free energy in the future. It is created when water from the ocean flows through the tidal stations and thus turbines create the energy.Biomass technologyAny form of renewable energy that can be created from biological matter is biomass technology. Biomass can be in the form of biofuel and biogas. Through biomass technology any material e.g. dead vegetable, crops, meat and plants can be converted to create biofuel and biogas. The transformation of these materials into electricity will keep on the cost and the material which if unused will be a waste product and spr ead pollution. Biofuel will be in liquid form while biogas will be in the form of natural gas. This technology is very cost potent and can be used to create electricity or satisfy any needs from oil or gas..1.4.4 Advantages of alternative renewable energyAccording to the article Seven most beneficial alternative energy advantages Alternative energy offers various benefits to the environment and society and these benefits have been explained below1. Municipal Solid Waste EliminationThe harmful fossil fuels will hap out in the near future and thus to meet the energy demand the solid waste material can be used to create energy. The municipal waste or household garbage will be used to generate energy and it will be very cost effective and environmental friendly.2. These Energy Sources Are RenewableThrough alternative energy there will be unlimited supply of energy as the sources are renewable. So whether its the solar power, wind power, biofuel or hydroelectricity it wont get wasted a nd unlimited supply will be available for households and industries and thus there will never be an energy crisis. The oil, gas and coal resources will be finished one day however renewable energy will retain forever.3. Local Production and BenefitsThe traditional energy in the form of oil and gas are produced by big players such as BP, Shell and Exxon Mobile. These companies bunk in various countries and use the local resources to supply oil and gas. Moreover these resources are sold to the local population at high prices and profits are returned to the shareholders. olibanum there is nothing for the local economy and the local population. On the other hand alternative renewable energy can be produced by local investors in the form of large and small businesses. The local businesses, society and government will benefit from local production of renewable energy and benefits will be in the form of low energy cost, steady taxationes, generation of jobs and returns to local investo rs. The renewable energy will be produced locally and the involvement of extraneous companies will be minimal.4. More Environmentally Friendly vegetable oil and gas result in creation of smoke and pollutants which impact the environment e.g. greenhouse gas emissions which harm the environment and contribute to global warming. Thus these energy sources are increasing the temperature of planet and making it a more dangerous place to live. On the other hand renewable energy does not have carbon emissions nor do they cause damage to environment. The environmental friendly renewable energy will make this earth a better place to live.5. Better National SecurityThe reserves of oil and gas are under control of about countries while they are explored and distributed by only a couple of companies this means that rest of the world are dependent and on mercy of whatsoever hands. A catastrophe, unstable government or war will heavily impact the supply of oil and national security will be at th reat. However on the other hand renewable energy will secure the countries more and will enhance the national security because of domestic production.6. More footing StabilityAs seen in the recent past the fluctuations in the prices of crude oil resulted in financial crises and it also affected the economies of many countries and left some companies on the verge of bankruptcy. The high price of traditional energy also keeps the cost of production high. On the other hand renewable energy is very cheap which will keep the cost low and there will be no fluctuations in prices that will result in catastrophe.1.4.5 Benefits to upcoming companiesOil and gas sector is dominated by a bunch of large companies and thus it becomes difficult for upcoming startups to compete with them. The high barriers to entry, limited resources and control over the production reserves by these large oil and gas companies makes it difficult for upcoming companies to enter the traditional energy industry. Howev er on the other hand through favorable government policies towards renewable energy, unlimited supply and local production startups from emerging and developing economies can compete on the basis of cost with these large companies. The alternative renewable energy brings along various benefits for these upcoming companies which were identified by Goldman Sachs in 2007 during the survey Alternative energy A global survey and they are explained belowFeed-In TariffsIn order to promote the alternative renewable energy sector the government purchases power from these upcoming companies at a fixed rate this is solidification above the market price. The fixed price creates stability and reduces financing barriers for these startups. Feed in tariffs result in stable long term payments for these companies and also gives the incentive to the producer to use the most efficient source of energy. Through long term stable cash inflows from the government the upcoming companies can compete with l arge firms and at the same time their liquidity needs will addressed and profits will be generated. The subsidy which the government provides to these startups in the form of feed in tariffs help them to grow and match the threat from competition.Tax CreditsIn certain countries government offers two kinds of tax credits to companies that produce electricity through renewable energy. Production tax credit is based on amount of energy produced from renewable sources while investment tax credit is based on amount of investment in renewable energy projects. The tax credit can be in the form of income tax, sales tax or property tax. For upcoming companies the tax credits bring along a great opportunity to invest in renewable energy. The tax credits in any form will increase their liquidity position and allow them to expand more through money saved. The tax credits along with feed in tariffs will result in cost savings and organic growth for startups.Minimum GHG emissionsRegulators in cer tain countries set standards for minimal GHG emissions and encourage companies to reduce GHG emissions. Those companies that exceed the minimum level are penalized while others that are below the minimum level are given incentives. Thus for upcoming renewable companies this kind of laws gives them a great opportunity to get incentives under such programs as renewable will result in minimum GHG emissions and companies will benefit from incentives. Similarly certain governments have imposed carbon tax and this kind of tax is discouraging for traditional energy companies and thus gives a great opportunity to upcoming companies to pursue a carbon free strategy..Loans, Grants and SubsidiesIn order to promote the alternative renewable energy many governments and government like World Bank or United nations offer grants and subsidies for upcoming companies. The grants and subsidies can be in the form of provision of land and technology, expertise or even low interest rate loan. Thus new upcoming firms can take this opportunity to address their capital requirements and though such grants and loans can step in the alternative renewable energy sector. These grants also offer great opportunities to companies in under developed countries in Asia and Africa to produce power from alternative renewable energy.Other benefitsThere are various other benefits to startups investing in alternative renewable energy sector according to article Dollars from palpate The economic benefits from renewable energy and these can be later passed onto the society e.g. an investment in renewable energy project by the local investor will strengthen the local economy, help government in the form of taxes and at the same time create jobs for the local community. Secondly because of low cost of production and unlimited supply the prices will remain stable and thus this will ensure steady profits and cash flows to the company. On the contrary a cracking decline in oil prices result in losses to these big oil companies. Thirdly people now prefer energy from alternative sources because of less(prenominal) impact on environment so money invested in renewable energy will generate more returns than money invested in traditional energy. The increasing demand of alternative energy will result in high returns and high profits for shareholders.Theoretical fashion modelTo make the study more effective journal of corporate governance, journals of management in science and journals of industrial management were analyzed. The articles from internet were also analyzed and the theoretical framework is based on these journals and articles. In order to determine the benefits from alternative renewable energy to the environment, society and upcoming startups I will also consider the reports of various government agencies that support these programs. umteen governments in developed countries offer subsidies and grants to upcoming companies planning to expand in the alternative renewable e nergy and but financial and technical assistance is also offered from international institutions like World Bank. The policy framework and benefits offered by these institutions will be analyzed in the literature review section of this dissertation.Methodological frameworkIn order to make the dissertation fact based and reliable a lot of data was required. The research method I used to see data was from secondary resources. Secondary resources were used first in order to understand the subject matter and validate the aims and objectives set earlier. The secondary resources that I used were journal articles, internet articles and reports from various government agencies. A lot of research has been done on alternative renewable energy in terms of benefits offered to the economy, environment, society and companies. This research from secondary data sources will be used and analyzed with literature reviews in the dissertation. The secondary research is cheap and easy to find moreover the education gathered is from reliable sources. The data was collected from librarys database and this research will be used to validate the research objectives. Quantitative and qualitative information is available on renewable energy sector and this information will be presented during the course of dissertation.Outline of the following chaptersI have divided the dissertation in five chapters. Literature reviews will be discussed in the second chapter and published information from reliable sources such as books and journals will be analyzed. In the third chapter I will explain the research methods, the process used to collect data and their limitations. . In chapter 4 I will critically analyze the information gathered earlier through literature reviews and recommendations and data analysis will be presented. The last chapter will provide the synopsis of the study, limitations and the need for future study.summary of the chapterIn the initial part of the chapter the aims and obj ectives of the study were mentioned which are based on the need of alternative renewable energy, the benefits to the society, environment and companies and limitations of this sector. While in the later part of the chapter the overview of various alternative renewable energy methods were presented along with the benefits to the environment and upcoming companies. Last but not the least the theoretical framework and the methodology was presented.