Tony Robbins’ $200M Bet on Green Energy: 3 Reasons It Might Pay Off and 3 Reasons It Might Not

Tony Robbins and Simon Hodson are currently planning a clean-energy revolution in a West Virginia coal-fired power plant that will cost a total of $200 million, according to The Wall Street Journal .

If they are successful, it could be a big breakthrough in the renewable energy sector; however, lots of scientists within the field remain skeptical about how well this new form of generating energy will work, if at all.

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Just because Robbins put down a sizable chunk of change does not mean the average consumer would be spared from also ponying up for this new form of energy. Here are some reasons Robbins’ $200 million bet on green energy could pay off, along with a few reasons it might fizzle out.

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Why It Could Pay Off

There Is a Demand for Green Energy

The No. 1 reason it could succeed is that there is an increase in demand for renewable energy, according to Daniel Jarrett, CEO at QLD Solar and Lighting .

“There is a rise in commitment by governments and corporations to residue carbon emission and this means one thing: embracing the use of green energy,” Jarrett said.

“Global renewable energy movement is more intense than it has ever been,” agreed Bao Tran, a patent attorney with Patent PC . “Reducing carbon footprints by governments and businesses is something they are dedicated to, which increases demand for green energy solutions. As nations work to reach their climate targets, for example, usage of solar and wind energy is growing.”

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Better Technology

For decades, scientists and entrepreneurs alike have been working toward a solution to the climate and energy crisis facing the entire globe. Only now, in 2024, the technology has advanced to meet and possibly solve the problem once and for all.

“Fast developments in green energy technology are increasing their [cost effectiveness] and efficiency,” Tran said. “For instance, developments in battery storage help to solve energy intermittency, hence increasing the dependability of renewable energy.”

Jarrett said, “Today, there is an increase in technologies enabling harnessing of solar, wind and other renewable energies.”

Tax Incentives

Even if Robbins’ investment works, how will it be sustainable for the average consumer and global industries at large? Jarrett believes it will come down to tax incentives.

“Governments are increasingly giving subsidiaries and tax incentives on organizations promoting the use of renewable energy,” Jarrett said.

Tran added, “Many governments are offering incentives for green energy initiatives, including tax credits and subsidies. These rules can greatly improve the return on investment for green energy projects, therefore increasing their appeal to investors.”

Why It Might Bust

Market Volatility

As the use of renewable energy is concerned, the market tends to react with high volatility. If past trends are any clue to future ones, Robbins and Hodson might upset the economic balance within the energy sector.

“The green energy market can be erratic, with competition, technology innovations and policy changes all affecting price,” Tran noted. “Should a new, more efficient technology develop or subsidies be cut back or eliminated, current investments could suffer”

Jarrett added, “This is caused by ever-changing government policies as states and countries transition from one government to another.”

Too Much Fiscal Risk

The $200 million is not a drop in the bucket — it’s a high financial risk that Robbins is hoping pays off in more ways than one due to the substantial initial costs he has sunk into the project.

“Green energy projects have somewhat high starting expenses,” Tran said. “Although long-term gains are encouraging, the initial financial load might be a deterrent, particularly if delays or unanticipated costs arise.”

Jarrett said, “As much as the idea of green energy is potent, it is also a risky affair if the results do not turn out as expected. This sector is not immune to financial risks of investment even if it is highly promising.”

Global Oversight

Getting the renewable energy project up and running will be Step 1. The next step will be who and how it is regulated across countries around the world.

“Negotiating the regulatory terrain for green energy can prove difficult,” Tran said. “Projects may experience delays resulting from local opposition, permit problems, or legislative changes. These obstacles can lower possible return on investment and raise expenses.”

This article originally appeared on GOBankingRates.com : Tony Robbins’ $200M Bet on Green Energy: 3 Reasons It Might Pay Off and 3 Reasons It Might Not