Industry structure and impact of renewable promotionThe energy industry includes various major sectors such as fossil fuels, electricity generation, nuclear power, renewable energy, and traditional energy (e.g. use of firewood for cooking and heating). As environmental awareness and sustainability become more prevalent, energy consumption from renewables is expected to increase relative to fossil fuel sources. The move away from polluting, but more cost-efficient energy sources such as coal is expected to result in an increase of the energy price index over the next decade. Roughly 300 billion U.S. dollars are spent on clean energy investments worldwide every year.
The energy market is government regulated in most countries, with the government having varying levels of control, for example, by managing which companies can enter the market or how much companies can charge. Depending on the size of the country’s energy industry and surcharges imposed to support renewable sources, household electricity prices may be as high as 0.38 U.S. dollars per kilowatt hour and as low as 0.03 U.S. dollars per kilowatt hour.