Cleantech Market Update: Q3 2024 in Review
The global energy transition continued to accelerate in Q3, driven by the rise of artificial intelligence (AI) and increasing demand for clean sources of power. This trend presents significant investment opportunities in the cleantech sector, with wind, solar and nuclear energy gaining attention as key areas of growth.
However, Donald Trump’s recent re-election in the US has introduced uncertainty regarding the future of clean energy policies and investments in the country, adding a layer of complexity to the investment landscape.
Here the Investing News Network explores the state of the cleantech sector in Q3, examining recent developments, potential challenges and an outlook into the fourth quarter for investors.
AI continues to fuel clean energy demand
As AI continued to gain traction in Q3, awareness grew about the massive amounts of energy it requires.
In a September 3 note, BlackRock analysts Jean Boivin, Beata Harasim and Carolina Martinez Arevalo outline a three-phase roadmap for AI, stating that it’s currently in the first stage.
This phase consists of data center buildouts, and the firm identifies economic opportunities for companies providing essential resources such as energy and utilities to support the transition.
Wind and solar have been the leading solutions to meet rising renewable energy demand.
Aaron Halimi, founder and president of California solar developer Renewable Properties, told PV Tech in September that there is greater demand for community solar projects — which are photovoltaic systems that generate power for multiple homes or businesses connected to the electric grid — than there are projects.
“The reason why large tech companies and data centers are participating in community solar is that they are seeing substantial delays in the large utility-scale projects that they have historically procured power from,” he said during an interview at RE+, North America’s largest renewable energy event.
The Gemini Solar + Storage project is one such example. The project, which is run by Quinbrook Infrastructure Partners and its portfolio company Primergy Solar, is one of the largest of its kind in the country. The operation’s primary customer is NV Energy, the state’s main power utility. In Q2, Microsoft (NASDAQ:MSFT) signed a US$588 million financing and power purchase agreement with Primergy to purchase energy from the plant when it is operational.
The plant reached commercial operation in Q3, with Primergy reporting that it can generate up to 690 megawatts of renewable clean energy. That’s enough to power about 10 percent of Nevada’s peak power demand. This is significant because major tech companies like Switch, Google, Apple (NASDAQ:AAPL), Meta Platforms (NASDAQ:META) and Block (NYSE:SQ) are expanding their data center operations in the state, driving a surge in energy demand.
In contrast to the solar energy sector, private investment in wind energy appears to be slowing.
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