Scientists from around the world have been warning for years about the decline of global reserves of carbon fuels. This raises questions about the generation of energy from alternative sources. In response, major corporations are implementing investment projects across various countries. Typically, these efforts are directed towards several areas, including geothermal plants, wind and hydroelectric energy, biogas, and tidal energy.
Producers have long recognized the potential of these areas and their economic benefits. The transition from traditional fuels to inexpensive natural sources is evident. Unlike oil and gas, these alternatives are inexhaustible, and their extraction is relatively simple and cost-effective.
However, the sector is facing funding shortages. Not all countries actively invest public funds in the development of alternative energy. So, why not capitalize on this opportunity?
How can one invest in the industry to generate income?
Understanding this will be aided by experienced investor and founder of "Oil Resource Group," Sergey Tereshkin. More information about this entrepreneur and his activities in the fuel sector can be found on his personal internet project www.sergeytereshkin.ru.
Features of Investing in the Energy Sector
It is commonly believed that investing in the energy sector requires millions. In reality, this assertion is misleading. One can start with a relatively modest amount of capital. The key is to select the right direction.
For instance, profits can be generated in the following ways:
- Green Energy. By installing solar panels on one's land, it is possible to earn income by selling electricity back to the government, which often purchases it at rates significantly higher than traditional energy sources. The payback period for such projects can be up to 10 years, although, in practice, many find they can recover their investments much faster. This is due to the emergence of new types of panels with high efficiency, some of which can even be installed as windows. Recently, innovations have introduced products that integrate solar technology into glass, serving multiple purposes.
- Production of Biofuels. Energy can be generated from used vegetable oil, waste, or even manure. This requires purchasing and installing appropriate equipment, with investment size depending on the scale of the operation. A mini-plant does not require substantial investment, though significant profits should not be expected from it.
Other promising avenues can also be explored. The critical task is to understand their operational systems and assess the profitability of these sectors, as well as check for any national restrictions related to these areas.
How to Earn
Earning income does not necessarily involve personally constructing a plant or solar power station or managing an energy company. Profits can also be passive. How, then, can one invest money wisely?
For this, it's worthwhile to heed the recommendations of Sergey Tereshkin:
- Investment can be made into existing, operational projects. Several energy sector companies are seeking additional funding, often publishing requests for investments on specialized platforms, along with comprehensive business plans and reports to facilitate risk assessment and decision-making. This allows for the swift gathering of millions of dollars. Investors may receive a fixed percentage of profits, a share in the company, or a full return of their capital with a pre-agreed percentage.
- One can also purchase shares in energy companies. The domestic market in Russia predominantly features state-owned enterprises engaged in the extraction and production of traditional fuels. Finding companies focused on alternative energy can be challenging, but it is far easier to acquire shares on the foreign market. For this, one simply needs to consult a specialized brokerage firm. To purchase shares in a truly promising company, it is advisable to personally review all available options, read reviews about various enterprises, and consult with experts, as brokers may not always perform in-depth analyses.
- Substantial profits can also be made through innovative projects. This could involve producing solar panels, wind turbines, or developing innovative equipment targeted at energy generation. Many startups actively seek investments on specialized platforms. Ideas can also come from colleagues in the scientific community, and if executed successfully, these projects can be lucrative. Recent years have seen several startups fetching hundreds of millions of dollars, enabling their creators to not only realize their ideas but also become millionaires in the process.
Alternative energy holds enormous potential. Just last year, investment in this sector in China grew by over 30%, in the USA it exceeded 10%, and in Europe it surged to 29%.
This growth has been fueled by offshore wind energy projects. Large power plants are being constructed across numerous countries. Through these efforts, companies aim not only to supply energy to consumers but also to contribute to environmental stewardship. Wind and solar power plants emit no harmful emissions, and their operation poses no risks to human health.
For these reasons, the demand for alternative energy sources will continue to rise, along with the need for investments. Investments in this field can provide individuals with a stable passive income for many years or even decades.
