Energy market is definitely the most strategic one as world economy depends on it. The companies involved in deal with new technologies development for the best quality service for their clients always in need of more energy (see figure 1). It is a sector where the risk factor is reduced as the demand will always be high, diversified and worldwide expended. In this post we explain how the renewable energy sector has much to say about it.

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Figure 1: World power needs (GWh)

The use of fossil fuels will not last much longer and the world is starting to apply smart mechanisms for an efficient use of energy while preserving the environment from the energy  production wastes. Renewable energies are our clean main to ensure our future power needs.  Their market share will be inevitably increasing along the years while conventional energies will  disappear progressively. See figures 2 and 2b for the market share and consumption of each energy source.

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Figure2: Energy production world market share

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Figure 2.b: Estimated Renewable Energy Share of Global Final Energy Consumption, 2014

In 2015, the installation of solar panels, wind turbines and hydroelectric facilities have seen the biggest increase worldwide never seen before, with a total investment of 250,000 million of euros. In fact, according to REN21, 19,2% of the total energy consumption in 2014 came from renewable energies, standing out biomass and hydropower. These numbers make think of the renewable energy sector with the importance it deserves as it had been increasing and will keep going while the conventional sources disappear (see figure 3).

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Figure 3: Renewable energies installed power MW

China and United States are leading this industry as drivers of global renewable market. However, we should also stand out the work done by some European countries as Spain, which is one of the most outstanding countries leading technological and industrial development regarding renewable energies. Spain is the second country in Europe producing wind energy which is the second most common used renewable energy, and just the sixth producing biomass as primary energy. When it comes to photovoltaic solar energy, Spain leads the fifth position in Europe, and the company with the largest photovoltaic installed capacity in the world is Spanish. The world’s leading producer of renewable energy and one of the five largest electricity companies in the world is Spanish too. Beside this, the energy market is complex and obey to different local rules for pricing. Figure 4 and 5 compare electricity price for different clients in European countries.

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Figure 4: Electricity price for industrial sector in Europe

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Figure 5: Electricity price for industrial sector in Europe

Energy efficiency market:

Europe Union fixed on the directive 2012/27/UE of Energy efficiency and CO2 emissions to all its  members the as known objective 2020 (see figure 6). At this target year, every country must have at least 20% of its energy consumption produced from renewable sources. Also, every country must have reduced by 20% its energy consumptions with efficient domestic, services, industrial and transport systems. Other European program targeting 2030 is in project and some countries adopted higher objectives on the energy sector.

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Figure 6: Europe CO2 emission reduction target 2020

According to Red Eléctrica de España, in 2015, clean energy contributed 37.1% of total electricity  production in Spain. Since 2000, the primary renewable energy has increased its consumption by 2.5%, notwithstanding, IDAE (“Institute for Diversification and Saving of Energy” in English) has stated that final energy demands has increased over 1.5% in 2015 in comparison with the previous year. Furthermore and according to IDAE, the National Electric Balance affirmed that, in 2015, the availability of hydro and wind resources decreased. However, 34.6% of the total amount of power generation in 2015 was generated by renewable energies (this contribution was 51% satisfied with wind and 29% with hydraulics). Spain is one of the European leaders to accomplish the 2020 target (see figure 7). Even with these numbers, Spain did not reach the target yet. And new objectives are scheduled by EU for 2030. The renewable energy sector is a clear business opportunity in a fast growing market.

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Figure 7: Europe leaders CO2 emissions reduction

Competition in the renewable energy sector

The renewable energy sector started in Spain several years ago. The attractiveness of this market made a lot of companies enter in this sector, increasing competitiveness. In fact, the existence of so many companies related to this industry in Spain, made most of them go abroad and take advantages of the natural and energy resources in other countries, especially Latin America. Firms as RENOVALIA, IBERDROLA, GAMESA and ENDESA still fight for the supremacy in the local market and get in several countries energy markets. In lower size, consultancies offering engineering service and energy auditory to reduce costumers bills with auto production and energy efficient equipment are competing on a big market where every energy customer can be a client. The idea is to bring the best study of the customer energy contract offering solutions to reduce his bill.

Difficulties to get in the renewable energy sector

The main difficulty an investor may have getting in the renewable energies and efficiency market is certainly the legislation around it. Being relatively new, some governments like in Spain, did not keep the same line changing the law several times with repercussions on investors business plans. In parallel to the competition, another important difficulty is the technology adopted. Reliability of the products required in this sector is increasing and their prices are decreasing. The challenge is to be always updating with the best technical advisers to offer your clients competitive solutions maximizing your profits.

Renewable energies market and opportunities

This sector is definitely a fast growing one as the costs of producing renewable energies are decreasing and the installation demands for individual and public use is highly increasing worldwide. A new market is at its first years worldwide dealing with energy efficiency technologies from producing with natural free resources to consuming smartly saving costs along the years with an initial technology investment. The smart grid concept has born. Electric companies are installing smart meters for their clients. The power grids are now managed with highly advanced smart technologies in which Spain is a reference leader. The basic idea is to match production with consumption for the optimum cheapest costs.

In this environment, the final clients, whatever is there activities: domestic, services, industrial or transport must be on the page. Their energy management technologies must be updated in a global wheel to reach common objectives: smart power grids at all stages. The clients can now be producers, supporting each other energy needs. The final consumption systems are required technically and by laws to be highly energy efficient.

All a market around this energy revolution is growing. BSmarT gets in offering energy auditory analyzing the actual state of the clients power services from their contract to their energy installations, than offering various alternatives to become self energy producers, sellers, and over all energy efficient with upgraded smart technologies to fit in the new power grids requirements and future perspectives.