Renewable energy commercialization
Renewable energy commercialization involves the deployment of three generations of renewable energy technologies dating back more than 100 years. First-generation technologies, which are already mature and economically competitive, include biomass, hydroelectricity, geothermal power and heat. Second-generation technologies are market-ready and are being deployed at the present time; they include solar heating, photovoltaics, wind power, solar thermal power stations, and modern forms of bioenergy. Third-generation technologies require continued R&D efforts in order to make large contributions on a global scale and include advanced biomass gasification, hot-dry-rock geothermal power, and ocean energy.[5] In 2019, nearly 75% of new installed electricity generation capacity used renewable energy[6] and the International Energy Agency (IEA) has predicted that by 2025, renewable capacity will meet 35% of global power generation.[7]
Public policy and political leadership helps to "level the playing field" and drive the wider acceptance of renewable energy technologies.[8][9][10] Countries such as Germany, Denmark, and Spain have led the way in implementing innovative policies which has driven most of the growth over the past decade. As of 2014, Germany has a commitment to the "Energiewende" transition to a sustainable energy economy, and Denmark has a commitment to 100% renewable energy by 2050. There are now 144 countries with renewable energy policy targets.
Renewable energy continued its rapid growth in 2015, providing multiple benefits. There was a new record set for installed wind and photovoltaic capacity (64GW and 57GW) and a new high of US$329 Billion for global renewables investment. A key benefit that this investment growth brings is a growth in jobs.[11] The top countries for investment in recent years were China, Germany, Spain, the United States, Italy, and Brazil.[9][12] Renewable energy companies include BrightSource Energy, First Solar, Gamesa, GE Energy, Goldwind, Sinovel, Targray, Trina Solar, Vestas, and Yingli.[13][14]
Climate change concerns[15][16][17] are also driving increasing growth in the renewable energy industries.[18][19] According to a 2011 projection by the IEA, solar power generators may produce most of the world's electricity within 50 years, reducing harmful greenhouse gas emissions.[20]
Many energy markets, institutions, and policies have been developed to support the production and use of fossil fuels.[101] Newer and cleaner technologies may offer social and environmental benefits, but utility operators often reject renewable resources because they are trained to think only in terms of big, conventional power plants.[102] Consumers often ignore renewable power systems because they are not given accurate price signals about electricity consumption. Intentional market distortions (such as subsidies), and unintentional market distortions (such as split incentives) may work against renewables.[102] Benjamin K. Sovacool has argued that "some of the most surreptitious, yet powerful, impediments facing renewable energy and energy efficiency in the United States are more about culture and institutions than engineering and science".[103]
The obstacles to the widespread commercialization of renewable energy technologies are primarily political, not technical,[104] and there have been many studies which have identified a range of "non-technical barriers" to renewable energy use.[105][15][106][107] These barriers are impediments which put renewable energy at a marketing, institutional, or policy disadvantage relative to other forms of energy. Key barriers include:[106][107]
With such a wide range of non-technical barriers, there is no "silver bullet" solution to drive the transition to renewable energy. So ideally there is a need for several different types of policy instruments to complement each other and overcome different types of barriers.[107][110]
A policy framework must be created that will level the playing field and redress the imbalance of traditional approaches associated with fossil fuels. The policy landscape must keep pace with broad trends within the energy sector, as well as reflecting specific social, economic and environmental priorities.[111] Some resource-rich countries struggle to move away from fossil fuels and have failed thus far to adopt regulatory frameworks necessary for developing renewable energy (e.g. Russia).[112]
Voluntary market mechanisms for renewable electricity[edit]
Voluntary markets, also referred to as green power markets, are driven by consumer preference. Voluntary markets allow a consumer to choose to do more than policy decisions require and reduce the environmental impact of their electricity use. Voluntary green power products must offer a significant benefit and value to buyers to be successful. Benefits may include zero or reduced greenhouse gas emissions, other pollution reductions or other environmental improvements on power stations.
[141]
The driving factors behind voluntary green electricity within the EU are the liberalized electricity markets and the RES Directive. According to the directive, the EU Member States must ensure that the origin of electricity produced from renewables can be guaranteed and therefore a "guarantee of origin" must be issued (article 15). Environmental organisations are using the voluntary market to create new renewables and improving sustainability of the existing power production. In the US the main tool to track and stimulate voluntary actions is Green-e program managed by Center for Resource Solutions.[142] In Europe the main voluntary tool used by the NGOs to promote sustainable electricity production is EKOenergy label.[143]