Wednesday, 9 November 2016

The Rise of an Ecological Industry of Great Economic Activity

The global annual installed capacity of wind energy has grown from 1.280 Megawatt in 1996 up to 44.771 Megawatt in 2012. This means a total growth of capacity of about 43.491 Megawatt in just 16 years time. Only from 2011 to 2012 the capacity has increased by about 4 Megawatt and this annual growth has increased from about 1-2 Megawatt per year to 4-5 Megawatt of annual growth until 2012.

Apart from ecologic advantages the economic growth of wind energy can also be seen as a way to fight against the economic crisis, especially in Europe.

Its contribution to the European gross domestic product:

In 2010 the wind energy sector contributed 32.43 billion euros to the European gross domestic product, 0.26 % of the total of that year. Between 2007 and 2010 the wind energy sector increased its contribution to the gross domestic product by 33 %, which shows that the wind industry is growing faster than the European economy.
As the wind industry buys and sells to markets of other economic sectors, it helped other sectors in crisis to overcome hard economic times, so the sector of wind energy has also the potential to tighten international interdependences and produce growth in diverse market sectors.
Looking at these facts it can be very profitable investing into the alternative energy sectors, especially into the sector of wind energy. The investments cannot only contribute to individual prosperity, but also to international wealth and make up a great part of the GDP in several countries.
As renewable energies are non exhaustive you can use them continually and also generate continual earnings. So as the capacity of wind energy and other alternative energies is rising, the contribution to BDP also rises and so do the profits of investors in this sector.
If we look at the market development, investments into the market of renewable energies are safer than investments into other sectors as there are no interdependencies between investments into alternative energy and other investments dependent on erratic movements of financial markets. So renewable energy investments can substantially contribute to the desire of investors looking for stable returns non correlated to the returns of financial assets. Fixed feed-in tariffs for renewable energy in many countries give additional comfort and confidence for investors.

But there are even more reasons why one should invest in wind energy:

As we saw above the market of alternative energy including wind energy has reached a high volume and by this reason manifold competition is present in this sector. This leads to high quality and a fair proportion of price and performance. Also there is a non-existence of oligopoly in the renewable energy sector, which is also a good argument for investments and new companies in the alternative energy sector. The continual growth will also expand the employment market and lead to more employment, so the investments are not only profitable for the investors, but also an advantage in a social way.
So concluding investments into wind energy are not only profitable and calculable for the investors, but also tighten global interrelations, extend the working market, lead to a higher GDP and contribute to the protection of our environment in an economical way.

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