Why Renewable Energy?

Renewable energy is where the growth is

Excluding hydropower generation, renewable energy capacity in the U.S. grew at a cumulative average growth rate (CAGR) of 11.4% between 2002 and 2007. During that same period, wind energy generation capacity alone grew at a CAGR of 29%, making wind energy the fastest growing source of new electricity supply in the U.S.

While traditional fossil fuels (91% market share) currently dominate power production in the U.S., increasing the available power through fossil fuel generation has become more difficult in recent years. Growing environmental concerns over global warming and greenhouse gas emissions have made it difficult to build new or expand existing fossil fuel projects, and rising fossil fuel prices and political instability in major producing regions have made fossil fuel generation more expensive. As a result, to meet the expected increase in demand for electricity in the U.S., governments, businesses and consumers increasingly support the development of renewable energy sources, including wind, biomass, geothermal and solar energy.

Source: American Wind Energy Association

Still, the renewable energy market is clearly its infancy, with huge upside room to grow. The U.S. Energy Information Administration ("EIA") estimates that today only 3% of U.S. annual electricity generation is produced from non-hydropower electrical renewable sources (including wind energy, biomass, geothermal and solar energy), and 6% from hydro power.

Drivers of Renewable Energy Growth

Many trends are driving growth in the renewable energy sector of the economy:

• Rising energy prices
  
• Growing environmental concerns over carbon emissions and global warming
  
• Increased obstacles for the construction of conventional power plants
  
• Desire to reduce dependence on foreign energy sources
  
• Continued improvements in renewable energy technologies
  
• Federal and state governmental incentives

With important trends driving the demand and growth of renewable electricity generation, which ones are the most attractive? At Abundant Energy, L.L.C. we believe that the data is clear: wind- and water-powered electricity generation activities combine to represent the largest, fastest growing, and most cost-effective renewable generating markets.

Click here to explore: Why Abundant Energy?