How Startups Can Leverage Europe’s Cheap Energy Dilemma

Europe is facing an electrical dilemma – the soar of renewable energy sources like solar and wind power has caused a significant decrease in energy prices, the Economist reports. It may seem paradoxical, but the challenge lies in that Europe’s infrastructure and regulations are not adequate to efficiently handle the excess of energy.

To address this challenge, there are a few strategies being considered. These include directing excess energy to regions where there is higher demand, encouraging individuals to make use of this energy during peak hours when it’s cheapest, and storing the excess energy in forms like electricity or fuel so that it can be used when production is low.


How Does Cheap Energy Benefit The Economy?


Renewable energy is much cheaper to produce than energy produced by fossil fuels, and is beneficial to the economy in a number of ways. The first immediate benefit is that households and business spend less money on energy since it’s much more affordable.

Another major benefit is that the clean energy sector creates more jobs compared to the fossil fuel industry. The transition to clean energy entails the development, installation, and maintenance of new technologies and systems which creates employment opportunities. This is observed across many economies. For example, an accelerated transition to clean energy could create 15.4 million jobs by 2035.

Renewable energy can also drive the economy forwards. Investment in clean energy infrastructure and tech boosts GDP since it increases demand for the development of new skills and industries. Countries

Economic Growth: Renewable energy can drive economic growth. Investment in clean energy infrastructure and technology boosts GDP by creating a demand for new skills and industries. Countries that invest in renewable energy often see higher GDP growth rates. The EU, for example, could see a cumulative GDP increase of €7.3 trillion from 2022 to 2036 due to its green energy investments.


How Does Cheap Energy Benefit SME’s?


Startups, small and medium-sized enterprises (SME’s) can reap the benefits of lower energy costs by adopting renewable energy.

The lower operational costs can increase profitability and help businesses become more competitive. SME’s can reinvest the savings into their companies and utilise the funds for research, innovation or other business-scaling activities.

Aside from energy savings, there are also other ways clean, cheap energy can benefit SME’s:


Better Financial Planning

Renewable sources of energy are often less likely to reflect price volatility in comparison to fossil fuels. This stability can help businesses better manage and plan their expenses with assurance that they won’t face sudden price increases that could arise due to geopolitical events.


Accessibility To New Markets

SME’s that involve themselves in the renewable energy sector may be able to enter new markets and cease new opportunities. With the growing demand for clean energy technology, businesses can pitch

Access to New Markets: SMEs involved in the renewable energy sector can access new markets and opportunities. As demand for clean energy technologies grows, businesses that offer solutions in this space can expand their reach and increase their revenue streams.


Sustainability And Brand Perception

Embracing renewable energy can help small businesses and startups improve their brand image, since consumers seem to increasingly prefer to support businesses with implemented eco-conscious practises. Adopting clean energy also supports the growing sustainability efforts, that have long lasting advantages for the environment.


How Can Businesses Adopt Renewable Energy


Businesses may want to seriously consider adopting renewable energy solutions to reap the benefits that it offers.

With benefits such as allowing businesses to better plan their budgets, gain access to emerging markets and new opportunities, and contributing to a green, more sustainable planet, it is evident that renewable energy solutions could transform how SME’s operate.

Let’s explore the different options and measures SME’s can take to implement green energy:


Types Of Renewable Energy Generation Methods

Depending on where the company is situated, SME’s and businesses would want to look into the following options to choose the best type of green energy generation for their company.

Solar Power: Solar is increasingly popular because of its scalability options and ease of instalment, as photovoltaic panels can be installed on houses’ rooftops and in dedicated solar farms.

Wind Power: Wind turbines generate electricity by using the force of the wind. Wind turbines are good options for areas where the conditions are windy and where there is ample land to set up turbines.

Hydropower: SME’s with access to flowing water can consider making use of hydropower. This energy generation method works by installing a turbine that is turned around by falling and flowing water, which generates electricity through motion.

Geothermal energy is also an option, but requires very specific conditions as plant ought to be installed over one of the earth’s natural geothermic reservoirs – hot pockets of warm water and steam. Setting up these plants are expensive, but may be viable if the conditions are correct as this is a highly efficient method.


Measures Businesses Can Implement To Improve Energy Efficiency

Aside from utilising renewable energy generation solutions, businesses can implement the following measures to improve their energy efficiency:

Firstly, install LED lights. They are much more energy-efficient than traditional incandescent or fluorescent bulbs, reducing energy use significantly.

Smart building controls is a modern way businesses can optimise to be energy efficient, and installing smart thermostats, lighting systems, and power strips can help automate the use of energy based on the actual needs of the company.

Energy efficient compliances are another way businesses can reduce their carbon footprint and optimise energy usage.

Lastly, improving the infrastructure of the building such as the insulation, air sealing, and ventilation can also increase energy efficiency as the demands for heating and cooling will be significantly reduced.

As Europe braces itself for the challenges of cheap energy, it can greatly benefit SME’s to look into and adopt these clean energy generation methods. These benefits include better financial planning, accessibility to new markets, sustainability and improved brand perception.

There are quite a few options to choose from, including solar power, wind power, hydropower and geothermal energy generation. Businesses should consider which methods would suit their needs best.