The generation of energy from fossil fuels such as coal, oil, and gas is the largest contributor to greenhouse gas emissions.
To prevent catastrophic climate effects, these emissions must be significantly reduced and one way of doing so is to invest in renewable energy sources (solar, wind, geothermal, etc.) and redesign power supply systems.
This is achievable and the International Renewable Energy Agency (IRENA) estimates that 90% of all decarbonization solutions in 2050 will involve renewables in one way or another.
Did you know that around six billion people, or nearly 80% of the world’s population, still rely on fossil fuel imports from other nations which leads them to be susceptible to geopolitical fluctuations?
Why is adopting renewables crucial?
For developing nations with limited natural resources, renewable energy sources combined with appropriately adapted power networks and infrastructure provide the means to avoid reliance on imports, to diversify national economies, to protect from the volatile price fluctuations of fossil fuels, and to promote equitable economic development, the creation of jobs, and poverty reduction.
However, to achieve net-zero emissions by 2050, US$4.5 trillion must be invested in clean energy every year by the early 2030s but for many developing nations, the initial cost could be extremely high, and many will require financial and technical assistance to make the shift.
How fast is the renewable energy sector growing?
The latest data from IRENA shows that renewable energy is registering the fastest rate of growth among all power sources. At the same time, the world may fall short of achieving the triple renewables objective agreed upon at COP28 which aimed to treble renewable energy generation capacity to at least 11,000 GW.
Global investment rates in the energy sphere are predicted to surpass a record-high US$3 trillion in 2024:
- US$2 trillion is to be invested in green technologies (renewables, EVs, nuclear power, etc.)
- US$1 trillion for coal, gas, and oil
The top renewable energy sources today
Nearly one-third of the energy produced globally in 2022 came from renewable sources. The two sources of renewable electricity that have increased the most since 2010 are solar and wind power (11.8% growth) although despite this impressive growth, hydropower remains the major renewable energy source.
Source: IEA
Factors influencing renewable energy adoption
Adopting renewable energy involves several variables that can fluctuate based on the geographical area, the state of the economy, and advances in technology. Some of the major variables include:
- Economic factors such as the cost of solar panels, wind turbines, battery storage systems, government subsidies, grants, and energy prices.
- Political factors such as robust regulations and commitments to international agreements.
- Technological advances and investment in R&D.
- Social factors such as public awareness and support and community involvement in renewable energy projects.
- Competition among renewable energy providers.
What are the challenges of transitioning to renewable energy?
According to the U.S.-based Institute of Energy and the Environment, there are several barriers to shifting to green energy, including geopolitical, technological, and environmental factors.
Geopolitical challenges
- The adoption of renewable energy is not a top priority for many developing regions.
- There are concerns that the shift would make it more difficult to reduce poverty in underdeveloped areas.
Technological challenges
Ideally, shifting to renewable energy entails switching completely from fossil fuels via the development of new technologies. In practice, this shift might lead to a sharp decline in the use of fossil fuels and a significant increase in the use of renewable energy.
Environmental challenges
- Concerns regarding the disposal and recycling of outdated solar panels and wind turbines.
- Solar and wind power facilities require a sizable amount of land, often in rural areas.
- Additional difficulties arise when mining for elements for solar and battery technology.
See also: Solar energy’s increased efficiency trends and downsides
Energy trends and forecasts
The International Energy Agency, IEA, predicts that global energy consumption will rise by roughly 4% in 2024 and 2025, maintaining its strong increasing trend.
The Agency suggests that by 2028 a number of renewable energy benchmarks could be reached:
- For the first time, the amount of electricity generated by renewables will exceed that of coal-generated power.
- Wind and solar power will outpace the generation of nuclear energy.
- The amount of electricity generated from renewable sources is projected to jump from 30% in 2023 to 35% in 2025.
Final Word
The adoption of renewable energy technology continues worldwide. Over the next few years, more energy will be generated by using wind, solar, and hydropower than by burning coal, gas, and oil. However, challenges do remain with many developing nations lacking the resources to make use of technology to generate renewable energy. Furthermore, the world will have to find a solution for the environmental issue arising from the disposal of solar panels and wind turbines.
