How renewables are changing the face of the energy market

ENERGY

Nitesh Shah, associate director, research, at ETF Securities, explains the importance of renewables in the world of energy and says now may be an attractive entry point for long-term investors.

Alternative energy, which includes renewables and natural gas, is set to become the fastest-growing source of energy over the next 30 years. With commitments by various governments across the globe to reduce greenhouse gas emissions, cleaner sources of energy will increasingly take share from traditional fossil fuels (see charts, below). Many governments are severely behind schedule to meet their targets and, with the worst of the sovereign debt crisis likely behind us, they will need to intensify efforts to get back on track, providing a tailwind for companies operating the alternative ...