This segment is composed of establishments that operate fossil fuel powered electric power generation facilities.
Companies in this segment operate generation plants to provide electricity to transmission and distribution systems.
There are various types of renewable energy in this particular segment. These include wind, solar, geothermal, hydroelectricity, and biomass.
The Energy industry is Concentrated. The production in this industry is dominated by a many large firms that are capable of shaping the industry’s direction and price levels.
Primary Demand Drivers
- Commercial, government, and residential needs for electrical power (which mainly depend on economic activity and population growth)
- Government regulations
- Fuel costs
From the Blog
Ships, trains, houses, manufacturing and power plants—each have used, or currently uses, coal as its main fuel source. Coal has long been one of the world’s top energy sources, acting as the base of nearly 30 percent of the energy created across the globe and almost 40 percent of global electricity production. However, after Murray Energy Corporation became the eighth coal company on October 29th, 2019 to declare bankruptcy in the past 14 months, there appears to be a significant downturn occurring within the industry. Murray Energy is the largest privately held coal company in the United States and joined seven other companies within the industry, including Cloud Peak Energy and Westmoreland Mining, in filing for bankruptcy.
Renewable energy is growing in popularity across the globe, and with good reason—the benefits of renewable energy sources are widespread. Finding alternative energy sources that don’t require the use of fossil fuels can lower energy costs for consumers, create more stable and reliable energy prices, and make electricity more available throughout the world. Furthermore, climate change is proving to be a very expensive ordeal—costing $240 billion in economic losses in the United States alone—and renewable energy has a significantly smaller impact on climate change compared to the burning of fossil fuels. Clearly, investing in renewable energy has economic benefits. Let’s look at how three regions around the world are faring in their journey to use more alternative energy sources.
- SelectUSA (Date Accessed: 6/1/2017)