Wednesday, 29 May 2024 Reading time : 3 minutes

Global energy demand continues to grow. Last year alone, demand increased by more than 2%. Among other things, the increasing use of generative artificial intelligence will fuel the rising global demand for energy in the coming years. This is because this technology requires large computing and storage capacities, which require data centers. As a result, the energy needed to operate these data centers will double by 2026, requiring more than 1000 terawatt hours of electricity, according to the International Energy Agency. To put this in perspective: Switzerland consumed about 57 terawatt-hours of electricity in 2023.

To meet the growing demand for energy, additional power plants are needed. These are plants that convert energy into electricity. They come in many forms, including hydroelectric, solar and coal-fired power plants. Power plants currently account for about 25% of global greenhouse gas emissions, so they play an important role in efforts to meet climate goals. In addition to environmental considerations, security of fuel supply and the long-term economic viability of fossil or nuclear power plants are important criteria when planning new plants. Social acceptance of new large power plants is also an increasingly important issue. Sustainable power plants therefore offer a number of advantages.

Electricity generation from renewable energy sources is characterized by low costs for the use of energy sources and has a significantly lower impact on the environment than conventional power plants. Wind and solar power plants, for example, are also decentralized, meaning that energy generation is not tied to a single facility, but can take place in a variety of locations. Decentralized energy production is usually accompanied by an increase in energy efficiency, as the shorter distances result in lower transmission losses, or electricity and heat can be used simultaneously. 

Renewable energy has experienced strong growth in recent years. By the end of 2023, approximately 30% of global energy production will come from renewable sources. The International Renewable Energy Agency predicts that by 2050, about 85% of the energy generated in power plants will come from renewable sources. As a result, interest in sustainability-oriented utilities is likely to increase.

The ZKB MeinIndex Sustainability Energy Generation selects companies from the ZKB's sustainable investment universe that contribute to the generation of energy from renewable sources. Energy generation can mean the production of electricity, heat or cooling, or a combination of these.

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