Calculation

O3: Renewable proportion of energy consumed = Renewable energy consumed / Total energy consumed x 100

Unit of the indicator: percent

 

Why this indicator is important

Using renewable energy such as hydro, solar and tidal power, is an important way to reduce the demand for non-renewable resources such as fossil fuels. Nuclear energy is also considered non-renewable since the reserves of fissionable materials are finite. In general, renewable energy sources are also lower in carbon content than fossil fuels and therefore contribute less to climate change.

 

Interpretation

Some companies may have few opportunities to increase the renewable proportion of their energy. For example, they may purchase electricity from a utility with no option for a higher renewable content.
In these cases, small-scale solar or wind power installation could be profitable medium-term investments.

The definition of “medium-term” may range from 10 to 20 years but this is rapidly changing with the decrease in the price of solar equipment and increasing energy prices.

Fuels could also be substituted with alternatives that contain a proportion of biofuels.

 

Related issues

Using renewable energy could still have negative environmental (such as land conversion for biofuels) consequences and is still generally much more expensive than improving energy efficiency and promoting energy conservation.