11.2 Energy transitions and renewable energy

Energy transitions are reshaping our world. As we shift from fossil fuels to renewables like solar and wind, we're tackling climate change and boosting energy security. But it's not easy - there are big hurdles to overcome, from entrenched industries to high costs.

Renewable energy is transforming economies and landscapes. It's creating new jobs and changing how we use land. But it also poses challenges, like integrating intermittent power into grids. Governments are using various policies to speed up the switch to clean energy.

Drivers and Barriers of Energy Transitions

Shifting to Renewable Energy Sources

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  Projected renewable energy consumption breakdown View original

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• Energy transitions involve shifting from fossil fuels to renewable energy sources like solar, wind, hydro, geothermal, and biomass
• Key drivers include environmental concerns (climate change), energy security, technological advancements, and declining costs of renewables
• Renewable energy aligns with multiple Sustainable Development Goals (SDGs), including affordable and clean energy (SDG 7), climate action (SDG 13), and sustainable cities and communities (SDG 11)
• Transitioning to renewables can improve energy security by reducing dependence on imported fossil fuels and exposure to price volatility
• Diversifying energy sources and localizing supply chains enhances resilience

Overcoming Barriers to Energy Transitions

• Barriers to energy transitions include the entrenched fossil fuel industry, high upfront capital costs for renewable infrastructure, intermittency of renewable generation, lack of energy storage solutions, and insufficient transmission infrastructure
• Path dependency and technological lock-in can hinder transitions due to existing infrastructure, institutions, and policies built around fossil fuels
• Overcoming inertia requires significant political will and investment
• Policies to phase out fossil fuel subsidies and implement fossil fuel divestment can level the playing field for renewables, but often face political opposition from entrenched interests
• Lifecycle assessments of renewable technologies consider embodied energy and materials used in manufacturing to manage environmental impacts

Social Acceptance and Public Attitudes

• Public attitudes and social acceptance play a role in energy transitions
• NIMBYism (Not In My Backyard) can lead to local opposition of renewable projects like wind farms
• Education and community involvement are important for gaining public support
• Distributional impacts of renewables include land rents for property owners, tax revenues for local governments, and electricity access in remote areas
• Large-scale renewable energy projects can sometimes have negative consequences for local ecosystems and biodiversity or lead to displacement of local communities, requiring careful planning and siting to minimize impacts

Economic and Spatial Implications of Renewables

Spatial Requirements and Land-Use Planning

• Renewable energy projects have significant spatial requirements compared to fossil fuel plants
• Solar and wind farms require large tracts of land, while hydropower needs suitable rivers or reservoirs
• Geothermal is location-specific near tectonic boundaries (Ring of Fire)
• Spatial planning and land-use policies are critical for siting renewable projects
• Conflicts can arise with competing land uses like agriculture, conservation areas, and urban development
• GIS and remote sensing are used for site suitability analysis

Economic Development and Job Creation

• Renewable energy can stimulate economic development and job creation in both manufacturing and installation
• Jobs are often spatially concentrated in certain regions with favorable resources or policies (Rust Belt)
• Decentralized renewable energy systems can improve energy access in rural and remote communities, supporting economic development and poverty alleviation
• Off-grid solar and micro-hydro projects have been successful in many developing countries (Bangladesh, Kenya)
• Renewable energy can support sustainable urbanization by providing clean electricity for buildings, transport, and infrastructure
• Urban renewable projects include rooftop solar, waste-to-energy, and district heating and cooling systems

Grid Integration and Energy Storage

• Intermittency of renewables creates challenges for grid integration and stability
• Energy storage solutions like batteries and pumped hydro are needed to balance supply and demand
• Smart grids and demand response programs can also help manage variability
• Upgrading transmission infrastructure is necessary to connect renewable generation to load centers
• Microgrids and distributed energy resources can improve resilience and reduce transmission losses

Government Policies for Renewable Energy

Economic Incentives and Mandates

• Governments use a variety of policy instruments to support renewable energy deployment, including feed-in tariffs, renewable portfolio standards, tax incentives, and subsidies
• Effectiveness depends on policy design and implementation
• Feed-in tariffs guarantee a fixed price for renewable electricity sold to the grid, providing long-term certainty for investors
• Germany's Energiewende policy is a notable example that has driven rapid growth in solar and wind
• Renewable portfolio standards mandate that a certain percentage of electricity come from renewable sources
• These create a market for renewable energy credits and encourage utilities to procure renewable power

Tax Credits, Subsidies, and Procurement

• Tax incentives like investment tax credits and production tax credits have been used in the US to support renewable energy projects
• These reduce costs and improve economic viability for developers
• Subsidies and grants provide direct financial support for renewable energy research, development, and deployment
• Governments can also use public procurement to create demand for renewables
• Carbon pricing policies like carbon taxes and cap-and-trade systems indirectly support renewables by making fossil fuels more expensive
• This improves cost-competitiveness of renewable energy

Renewables for Sustainable Development

Alignment with Sustainable Development Goals

• Renewable energy aligns with multiple Sustainable Development Goals (SDGs), including affordable and clean energy (SDG 7), climate action (SDG 13), and sustainable cities and communities (SDG 11)
• Renewable energy can reduce greenhouse gas emissions and help mitigate climate change
• However, the scale and pace of deployment needs to accelerate to meet Paris Agreement targets and avoid dangerous warming
• Lifecycle assessments of renewable technologies consider embodied energy and materials used in manufacturing
• While renewables have lower operational emissions than fossil fuels, there are still environmental impacts to manage

Energy Access and Rural Development

• Decentralized renewable energy systems can improve energy access in rural and remote communities, supporting economic development and poverty alleviation
• Off-grid solar and micro-hydro projects have been successful in many developing countries (Bangladesh, Kenya)
• Renewable energy can support sustainable urbanization by providing clean electricity for buildings, transport, and infrastructure
• Urban renewable projects include rooftop solar, waste-to-energy, and district heating and cooling systems
• Distributed renewables can democratize energy production and give communities more control over their energy future