Why Decentralised Renewable Energy?
Decentralised renewable energy (DRE) investment is an essential aspect of transitioning to a sustainable energy future. DRE refers to the use of renewable energy technologies, such as solar panels, wind turbines, and small hydroelectric plants, in decentralised systems that can be both independent of traditional centralised power grids, or funded via decentralised investment products. Some of the reasons why DRE investment is crucial include:
Energy Access
DRE investment can provide energy access to remote, off-grid communities that have little or no access to electricity. According to the International Energy Agency, around 800 million people worldwide (10.1% of the planet’s population) lack access to electricity, and DRE investment can help to address this issue. By investing in decentralised renewable energy, Ethos can provide clean, affordable energy to those who need it the most.
Resilience
DRE investment can improve the resilience of energy systems by reducing reliance on centralised power grids that are vulnerable to disruptions caused by natural disasters, cyber-attacks, or other threats. In South Africa where Ethos’ first renewable energy projects will launch first, there are 250 days of blackouts expected this year. Decentralised systems can continue to function even when centralised power grids fail, providing critical energy supply in emergencies.
Economic Benefits
DRE investment can stimulate local economic development by creating jobs and supporting local businesses. In addition, decentralised renewable energy systems can provide energy cost savings to households and businesses, particularly in areas where electricity prices are high. On the flip side, just by keeping the lights on in South Africa this year, it would represent nearly a $13 billion boost to the economy.
Environmental Benefits
DRE investment can contribute to reducing greenhouse gas emissions and mitigating climate change by displacing fossil fuel-based electricity generation. By investing in DRE, Ethos can reduce our reliance on fossil fuels and transition to a more sustainable energy future.
In summary, DRE investment is an essential aspect of transitioning to a sustainable energy future and plays a crucial part in solving climate change. It can provide energy access to those who need it the most, improve the resilience of energy systems, stimulate local economic development, and contribute to reducing greenhouse gas emissions.
Ethos is well positioned to become a leader in this industry and a key facilitator in the investment of decentralised renewable energy.