About 50% of the world's population – the so-called Millennials – is under 30 and the values of this generation are destined to become the norm. They are a connected and truly global generation who feel a sense of collective responsibility and concern for how their actions impact the world.
Renewable energies essential to solve the problems related to global warming
Renewable energies include many different technologies, such as biofuels, solar, wind, geothermal, hydro and other sources, and among these energies, solar and wind offer excellent prospects. In this context, we believe that companies involved in the production of renewable energy systems or energy from renewable sources are ideally placed. Renewable energy installations benefit above all from lower costs. According to Bloomberg estimates, costs for solar and wind energy could decrease by more than 66% and 47% respectively by 2040. By 2023, onshore solar and wind energy are expected to become competitive with new plants gas in the USA. 2016 was a record year for wind and solar installations (with a combined increase of 130 gigawatts (GW)), but Bloomberg expects incremental additions of about 450 GW between 2016 and 2019 (solar: 260 GW, wind: 189GW). The longer-term outlook is even more attractive. Combined, new wind and solar investments are projected to be around USD 2040 trillion between now and 8, propelling installed capacity for renewables (onshore wind + solar) to more than 25x globally over the next XNUMX years .
Energy storage becomes more important
One of the major problems of renewable energy is the volatility of the energy supply, which affects electricity management and causes grid instability. Therefore Energy Storage Systems (ESS) become essential for increasing the adoption of renewable energies. Currently, there are various types of storage systems, such as solid-state batteries, flow batteries, pumped hydroelectric and others. However, we see many opportunities for solid-state batteries, particularly lithium-ion (Li-ion), due to their rapidly declining costs. Tesla's latest vehicle, the Model 3, is being offered at a very attractive price of USD 35. This was made possible thanks to an expected reduction in battery costs of 000%. Bloomberg forecasts a 35-fold increase in global energy storage (battery) capacity over the next seven years.
