The four year high. The Organization of Petroleum

The
next point that I would like to address Is the problem of ‘peak oil’ and the
move towards renewable sources of energy. Peak oil is the point in time when
the maximum rate of petroleum extraction is reached, after which the rate of
production is expected to decline and come to a stop. Oil prices have increased
from $57 in December 2014 to $70 in January 2018, which signifies a four year
high. The Organization of Petroleum exporting countries has decided to limit
its supply, thereby leading to a major increase in the price of a barrel of
oil, and this is expected to increase. The increase in oil has provided an
incentive to move to cheaper and less harmful renewable energy. The
encouragement to renewable energy has been assisted by the improvements in
technology and science.  “Green
energy is now more often than not making investors more money than fossil
fuels”1.

The principle renewable energy sources involve wind, water and the sun.

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According to the Guardian, there has been a massive growth in solar power potential-
it has increased globally by 50%. The advantages associated with solar energy
are also immense- the start up cost of gaining solar energy is not very high,
it is available throughout the day, the solar panels are easy to install, the
technology for it is improving, the market for solar energy is expanding and
most importantly, it is renewable which means that it will not deplete. In
2016, the solar photovoltaic capacity reached “more than 76 gigawatts, a dramatic increase on the 50GW
installed the year before”2. These statistics are
encouraging as they show a positive move towards renewable energy. The same is
the case with wind energy. The advantages of wind energy are that it is cheap
to run and since it is built on cultivable land, the land between the windmills
can be used for cultivation, creating a wind farm, which benefits farmers due
to higher incomes. Recently, France announced that it would increase their
investment in wind energy  and aim to “double
its installed generation capacity by 2023.”3
The statistics of wind energy show an upward trajectory, from 24GW in 2001 to
250GW in 2010 to 500GW in 2017. It accounts for 0.3% of the world’s energy but
is growing at a rate of 30%. Romania has built up a reputation for being a prime destination for green
energy investors. This has happened due to the fact that Romania is building up
more renewable sources of energy such as wind turbines than any of it’s
European neighbors. However, there have been proposals set up for cutting down
subsidies for the clean energy producers.                                Conclude

In the recent years, Romania has hosted a variety of new ‘renewable
energy’ products. Under legislation enacted from 2008 onwards, , energy distributors have been required in the past two
years to purchase “green certificates” for every megawatt hour of power that
they sold. The certificates are issued to wind, hydro and solar
power producers who can sell them directly to distributors or trade them
on the state-owned power market. Romania’s primary goal is to gain 24% of its
energy needs from renewable sources of energy by 2020. The ANRE has suggested
that Romania reduce issuing green certificates starting from 2014 onwards. This
plan has been implemented, however the government has gone further and
suggested to suspend the issuing of certificates until 2017. This policy of not
offering the green certificate was granted for each megawatt of power obtained
from wind energy, and due to this, has forced Romanian companies, which funded
renewable energy programs to reconsider their investments.

1 https://themarketmogul.com/rising-oil-price-means-renewable-energy/

2 https://www.theguardian.com/environment/2017/mar/07/solar-power-growth-worldwide-us-china-uk-europe

3 https://www.reuters.com/article/us-france-windpower-reform/france-sets-out-ten-point-plan-to-double-wind-power-capacity-by-2023-idUSKBN1F71JA