The manager of G-Energy, on the future of renewable sources of energy
Renewable energy has immense potential for helping humanity to put climate change under control. But it is more than that. Thanks to the development of modern technologies that made it more affordable, it is now a new field of opportunities for individual investors of different sizes and intentions. How? With companies such as G-Energy. The company not only designs and builds photovoltaic systems – its product, G-Energy Invest, is for individuals who want a safe investment for their money with quick return and long period of pure profit. As a manager of G-Energy, Gergana Atanasova knows in detail the peculiarities of the local and global renewable energy market, the benefits of investing in it and the positive change it can bring to humanity and the planet.
How did the renewable energy industry become a popular investment goal?
The recent intensive technological development allowed more effective use of renewable source energy. People also discovered that it allowed affordable and flexible investment with different scopes and end goals. As humanity still strives towards achieving a sustainable climate while keeping the economy booming, significant financial and expert resources are used for development of energy projects.
From an investor's point of view, which are the most promising types of energy production today?
Wind, solar, hydro, and geothermal resources, plus biogas and biomass power plants. Each of them has its advantages and disadvantages, but they all are an opportunity for environmentally sustainable investments with long-term profits for investors. However, photovoltaic solar systems are seen as the most promising sector in the field. They are the most affordable, and the most easily scalable investment around. Tellingly, in the past couple of years, photovoltaic systems in Bulgaria rapidly expanded.
What is the most important thing that we have to know about investment in energy capacity?
G-Energy unites all good practices, and saves time and money. By doing this, it optimises the coefficient of return of investment. In practice, investment in energy means that you purchase a share of a large photovoltaic power plant! To be more precise, you own part of the installed energy capacity in the photovoltaic park. The benefits are many. You do not need to own land, invest in marketing management and maintenance. The initial sum of investment is significantly lower, or if you invest a larger sum, you will buy more capacity for bigger profits. The plant will start working within 2-4 months after your investment, and the return of profit will take just 4-5 years. After this period, you will start making pure profit.
You can invest between 10,000 and 100,000 leva for a period of investment of 18 years. The solution works for both households and individuals, and companies.
If you want to learn more, contact us or visit genergy.bg, where you will also find examples for our product G-Energy Invest.
How does it compare to other investment tools?
There are no significant differences in regard to the way of investment, its size and the time needed before you start making pure profit. As in every other investment, the economic situation of the country is also a factor, as well as the source of expected money flows, the properly calculated expenses etc. In practice, you will need everything that you need for a successful business plan.
If we consider the invested capital, we can clarify whether we talk about a micro, mid-size or large company. In investment in photovoltaic solar systems such details should be considered from the very beginning.
How are energy prices formed on the stock exchange?
Energy pricing is based on different factors and processes. Here are some key aspects that it is good to know.
The spot market is where energy is traded in real time. Prices are set on the basis of energy demand and supply in the particular moment, and can fluctuate throughout the day.
Futures market is for contracts for purchase or sale of energy in the future, such as the next month or year. The prices are defined by the free market forces of supply and demand, and factors such as changes in production factors (for example, fuel prices) or government regulations.
Energy markets are often regulated by the government or special governmental bodies that act to protect the interests of customers and allow just prices such as maximum or minimum prices, or implementation of taxes.
Different methods of energy production (coal, gas, wind, sun, nuclear energy) also have an impact on the prices, depending on the location and the costs for manufacturing different energy resources.
The levels of supply and demand in a given moment can have a crucial effect on energy prices. If energy demand significantly increases and the available resources are limited, the prices may go up. When there is surplus energy on the market, the prices can decrease.
This is only basic information, energy pricing on the stock exchange can be more complex and depends on other factors as well. For more informed analysis you should consult with an energy expert.
What is the difference between investment in renewable sources, and installation of capacity in one's home or business premises to save on utility bills?
In both cases, the pros outnumber the cons. The advantages from choosing our Invest product are the shorter period after which your investment becomes profitable, and the lower sum of investment as you are a part of a larger project. The result is faster return of investment with fewer risks because there are fewer unknown parameters. It can also be seen as a financial investment that mitigates the effect of inflation and other economical factors through sale of energy that is evenly spread in time. It frees you from the burden of maintaining a separate company and provides a stable source of income. It is an opportunity for shared decision making during force majeure and extraordinary situations, such as changes in law.
How does Bulgaria fare in the current renewable energy industry?
Bulgaria has its place on the international renewables market, but is by far not a leader on it. There is plenty of unused potential for development of renewables in the country, like solar, wind, hydro and biomass.
Solar energy is the field with arguably the best potential in Bulgaria, as the country, particularly the southern regions, enjoys a lot of sunny hours throughout the year. Wind energy is also important for Bulgaria, some places have excellent conditions for wind farms, such as the northeast and the south. Hydropower is relatively well developed in Bulgaria, but there is space for opening new small and mid-size hydro power plants along the country's rivers. Bulgaria also has significant biomass resources. In short, the country has significant potential for future development in renewable energy. However, to make this economically viable, we need proper laws, investments, cooperation, and political support.
What should Bulgaria do to be better in this field?
The national priorities in the field could start with increased energy security and diversification of energy supply. Then should come the increase of energy efficiency through development and application of new technologies for sustainable energy industry; development of an integrated and competitive energy market; use and development of renewable energy sources; and protection of consumers through guarantee of the honest, transparent and nondiscriminatory conditions for use of energy services. Last, but not least, we need a proper legal frame that fits the reality of the industry and the investment.
What is the future of renewables globally?
Very promising. According to prognoses, installation of renewables, such as solar and wind power plants, will continue its growth thanks to reduced technological costs and the increased interest in clean energy. The production and installation costs will continue to decrease, thus making these solutions more affordable to people and more competitive to traditional energy sources. New innovations in renewable energy are constantly being developed. Implementation of technologies such as batteries for energy storage, smart networks and hydrogen systems will increase the sector's effectiveness and reliability. Many governments and international organisations support renewable sources of energy through introduction of policies and development stimuli, and by use of such resources in order to preserve the environment and stop the climate change. More and more investors are turning their attention towards renewable energy not only because of its profitability, but also because it contributes to sustainable development and energy security.
All of these will lead to significant increase of the share of renewable energy in the global energy mix, and will help to achieve the goals for sustainable development and reducing the dependency on fossil fuels.