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Renewable energy is generally defined as energy that comes from resources which are naturally replenished on a human timescale such as sunlight, wind, rain, tides, waves and geothermal heat.[2] Renewable energy replaces conventional fuels in four distinct areas: electricity generation, hot water/space heating, motor fuels, and rural (off-grid) energy services.[3]
Based on REN21's 2014 report, renewables contributed 19 percent to our global energy consumption and 22 percent to our electricity generation in 2012 and 2013, respectively. Both, modern renewables, such as hydro, wind, solar and biofuels, as well as traditional biomass, contributed in about equal parts to the global energy supply. Worldwide investments in renewable technologies amounted to more than US$214 billion in 2013, with countries like China and the United States heavily investing in wind, hydro, solar and biofuels.[4]
Renewable energy resources exist over wide geographical areas, in contrast to other energy sources, which are concentrated in a limited number of countries. Rapid deployment of renewable energy and energy efficiency is resulting in significant energy security, climate change mitigation, and economic benefits.[5] In international public opinion surveys there is strong support for promoting renewable sources such as solar power and wind power.[6] At the national level, at least 30 nations around the world already have renewable energy contributing more than 20 percent of energy supply. National renewable energy markets are projected to continue to grow strongly in the coming decade and beyond.[7]
While many renewable energy projects are large-scale, renewable technologies are also suited to rural and remote areas and developing countries, where energy is often crucial in human development.[8] United Nations' Secretary-General Ban Ki-moon has said that renewable energy has the ability to lift the poorest nations to new levels of prosperity.[9]
Renewable energy flows involve natural phenomena such as sunlight, wind, tides, plant growth, and geothermal heat, as the International Energy Agency explains:[10]
Renewable energy is derived from natural processes that are replenished constantly. In its various forms, it derives directly from the sun, or from heat generated deep within the earth. Included in the definition is electricity and heat generated from solar, wind, ocean, hydropower, biomass, geothermal resources, and biofuels and hydrogen derived from renewable resources.
Renewable energy resources and significant opportunities for energy efficiency exist over wide geographical areas, in contrast to other energy sources, which are concentrated in a limited number of countries. Rapid deployment of renewable energy and energy efficiency, and technological diversification of energy sources, would result in significant energy security and economic benefits.[5] Renewable energy sources, that derive their energy from the sun, either directly or indirectly, such as hydro and wind, are expected to be capable of supplying humanity energy for almost another 1 billion years, at which point the predicted increase in heat from the sun is expected to make the surface of the earth too hot for liquid water to exist.[11][12]
Climate change and global warming concerns, coupled with high oil prices, peak oil, and increasing government support, are driving increasing renewable energy legislation, incentives and commercialization.[6] New government spending, regulation and policies helped the industry weather the global financial crisis better than many other sectors.[13] According to a 2011 projection by the International Energy Agency, solar power generators may produce most of the world's electricity within 50 years, reducing the emissions of greenhouse gases that harm the environment.[14]
As of 2011, small solar PV systems provide electricity to a few million households, and micro-hydro configured into mini-grids serves many more. Over 44 million households use biogas made in household-scale digesters for lighting and/or cooking, and more than 166 million households rely on a new generation of more-efficient biomass cookstoves.[15] United Nations' Secretary-General Ban Ki-moon has said that renewable energy has the ability to lift the poorest nations to new levels of prosperity.[9] At the national level, at least 30 nations around the world already have renewable energy contributing more than 20% of energy supply. National renewable energy markets are projected to continue to grow strongly in the coming decade and beyond, and some 120 countries have various policy targets for longer-term shares of renewable energy, including a 20% target of all electricity generated for the European Union by 2020. Some countries have much higher long-term policy targets of up to 100% renewables. Outside Europe, a diverse group of 20 or more other countries target renewable energy shares in the 2020–2030 time frame that range from 10% to 50%.[7]
Renewable energy replaces conventional fuels in four distinct areas: electricity generation, hot water/space heating, motor fuels, and rural (off-grid) energy services:[3]
Climate change, pollution, and energy insecurity are significant problems and addressing them requires major changes to energy infrastructures.[19] Renewable energy technologies are essential contributors to the energy supply portfolio, as they contribute to world energy security, reduce dependency on fossil fuels, and provide opportunities for mitigating greenhouse gases.[20] Climate-disrupting fossil fuels are being replaced by clean, climate-stabilizing, non-depletable sources of energy:
...the transition from coal, oil, and gas to wind, solar, and geothermal energy is well under way. In the old economy, energy was produced by burning something — oil, coal, or natural gas — leading to the carbon emissions that have come to define our economy. The new energy economy harnesses the energy in wind, the energy coming from the sun, and heat from within the earth itself.[21]
In international public opinion surveys there is strong support for a variety of methods for addressing the problem of energy supply. These methods include promoting renewable sources such as solar power and wind power, requiring utilities to use more renewable energy, and providing tax incentives to encourage the development and use of such technologies. It is expected that renewable energy investments will pay off economically in the long term.[22]
EU member countries have shown support for ambitious renewable energy goals. In 2010, Eurobarometer polled the twenty-seven EU member states about the target "to increase the share of renewable energy in the EU by 20 percent by 2020". Most people in all twenty-seven countries either approved of the target or called for it to go further. Across the EU, 57 percent thought the proposed goal was "about right" and 16 percent thought it was "too modest." In comparison, 19 percent said it was "too ambitious".[23]
As of 2011, new evidence has emerged that there are considerable risks associated with traditional energy sources, and that major changes to the mix of energy technologies is needed:
Several mining tragedies globally have underscored the human toll of the coal supply chain. New EPA initiatives targeting air toxics, coal ash, and effluent releases highlight the environmental impacts of coal and the cost of addressing them with control technologies. The use of fracking in natural gas exploration is coming under scrutiny, with evidence of groundwater contamination and greenhouse gas emissions. Concerns are increasing about the vast amounts of water used at coal-fired and nuclear power plants, particularly in regions of the country facing water shortages. Events at the Fukushima nuclear plant have renewed doubts about the ability to operate large numbers of nuclear plants safely over the long term. Further, cost estimates for “next generation” nuclear units continue to climb, and lenders are unwilling to finance these plants without taxpayer guarantees.[24]
The 2014 REN21 Global Status Report says that renewable energies are no longer just energy sources, but ways to address pressing social, political, economic and environmental problems:
Today, renewables are seen not only as sources of energy, but also as tools to address many other pressing needs, including: improving energy security; reducing the health and environmental impacts associated with fossil and nuclear energy; mitigating greenhouse gas emissions; improving educational opportunities; creating jobs; reducing poverty; and increasing gender equality... Renewables have entered the mainstream.[25]
Prior to the development of coal in the mid 19th century, nearly all energy used was renewable. Almost without a doubt the oldest known use of renewable energy, in the form of traditional biomass to fuel fires, dates from 790,000 years ago. Use of biomass for fire did not become commonplace until many hundreds of thousands of years later, sometime between 200,000 and 400,000 years ago.[26] Probably the second oldest usage of renewable energy is harnessing the wind in order to drive ships over water. This practice can be traced back some 7000 years, to ships on the Nile.[27] Moving into the time of recorded history, the primary sources of traditional renewable energy were human labor, animal power, water power, wind, in grain crushing windmills, and firewood, a traditional biomass. A graph of energy use in the United States up until 1900 shows oil and natural gas with about the same importance in 1900 as wind and solar played in 2010.
By 1873, concerns of running out of coal prompted experiments with using solar energy.[28] Development of solar engines continued until the outbreak of World War I. The importance of solar energy was recognized in a 1911 Scientific American article: "in the far distant future, natural fuels having been exhausted [solar power] will remain as the only means of existence of the human race".[29]
The theory of peak oil was published in 1956.[30] In the 1970s environmentalists promoted the development of renewable energy both as a replacement for the eventual depletion of oil, as well as for an escape from dependence on oil, and the first electricity generating wind turbines appeared. Solar had long been used for heating and cooling, but solar panels were too costly to build solar farms until 1980.[31]
The IEA 2014 World Energy Outlook projects a growth of renewable energy supply from 1,700 gigawatts in 2014 to 4,550 gigawatts in 2040. Fossil fuels received about $550 billion in subsidies in 2013, compared to $120 billion for all renewable energies.[32]
Renewable energy includes a number of sources and technologies at different stages of commercialization. The International Energy Agency (IEA) has defined three generations of renewable energy technologies, reaching back over 100 years:
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.[20] As of 2012, renewable energy accounts for about half of new nameplate electrical capacity installed and costs are continuing to fall.[35]
Public policy and political leadership helps to "level the playing field" and drive the wider acceptance of renewable energy technologies.[36][37][38] 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.
Total investment in renewable energy (including small hydro-electric projects) was $244 billion in 2012, down 12% from 2011 mainly due to dramatically lower solar prices and weakened US and EU markets.[39] As a share of total investment in power plants, wind and solar PV grew from 14% in 2000 to over 60% in 2012.[40] The top countries for investment in recent years were China, Germany, Spain, the United States, Italy, and Brazil.[37][41] Renewable energy companies include BrightSource Energy, First Solar, Gamesa, GE Energy, Goldwind, Sinovel, Trina Solar, Vestas and Yingli.[42][43]
Climate change concerns[44][33][45] are driving increasing growth in the renewable energy industries.[46][47][6] According to a 2011 projection by the (IEA) International Energy Agency, solar power generators may produce most of the world's electricity within 50 years, reducing harmful greenhouse gas emissions.[48]
In his 2012 State of the Union address, President Barack Obama restated his commitment to renewable energy and mentioned the long-standing Interior Department commitment to permit 10,000 MW of renewable energy projects on public land in 2012.[49] Globally, there are an estimated 3 million direct jobs in renewable energy industries, with about half of them in the biofuels industry.[50]
From the end of 2004, worldwide renewable energy capacity grew at rates of 10–60% annually for many technologies. For wind power and many other renewable technologies, growth accelerated in 2009 relative to the previous four years.[3] More wind power capacity was added during 2009 than any other renewable technology. However, grid-connected PV increased the fastest of all renewables technologies, with a 60% annual average growth rate.[3] In 2010, renewable power constituted about a third of the newly built power generation capacities.[52]
Projections vary, but scientists have advanced a plan to power 100% of the world's energy with wind, hydroelectric, and solar power by the year 2030.[53][54]
According to a 2011 projection by the International Energy Agency, solar power generators may produce most of the world's electricity within 50 years, reducing the emissions of greenhouse gases that harm the environment. Cedric Philibert, senior analyst in the renewable energy division at the IEA said: "Photovoltaic and solar-thermal plants may meet most of the world's demand for electricity by 2060 – and half of all energy needs – with wind, hydropower and biomass plants supplying much of the remaining generation". "Photovoltaic and concentrated solar power together can become the major source of electricity", Philibert said.[14]
Wind power is growing at the rate of 30% annually, with a worldwide installed capacity of 282,482 megawatts (MW) at the end of 2012, and is widely used in Europe, Asia, and the United States. At the end of 2012 the photovoltaic (PV) capacity worldwide was 100,000 MW, and PV power stations are popular in Germany and Italy. Solar thermal energy stations operate in the USA and Spain, and the largest of these is the 354 MW Solar Energy Generating Systems power plant in the Mojave Desert. The world's largest geothermal power installation is The Geysers in California, with a rated capacity of 750 MW. Brazil has one of the largest renewable energy programs in the world, involving production of ethanol fuel from sugar cane, and ethanol now provides 18% of the country's automotive fuel. Ethanol fuel is also widely available in the USA.
Renewable energy sources were estimated 16.7% of global final energy consumption in 2010. By the end of 2011, total renewable power capacity worldwide exceeded 1,360 GW, up 8%. Of this total, modern renewable energy accounted for an estimated 8.2%, while the share from traditional biomass has declined slightly to an estimated 8.5%. In the power renewables accounted for almost half of the 208 GW of capacity added globally during 2011. Wind and solar photovoltaics (PV) accounted for almost 40% and 30% .[55]
During the five-years from the end of 2004 through 2009, worldwide renewable energy capacity grew at rates of 10–60 percent annually for many technologies.[3] In 2011, UN under-secretary general Achim Steiner said: "The continuing growth in this core segment of the green economy is not happening by chance. The combination of government target-setting, policy support and stimulus funds is underpinning the renewable industry's rise and bringing the much needed transformation of our global energy system within reach." He added: "Renewable energies are expanding both in terms of investment, projects and geographical spread. In doing so, they are making an increasing contribution to combating climate change, countering energy poverty and energy insecurity".[56]
In 2008 for the first time, more renewable energy than conventional power capacity was added in both the European Union and United States, demonstrating a "fundamental transition" of the world's energy markets towards renewables, according to a report released by REN21, a global renewable energy policy network based in Paris.[57] In 2010, renewable power consisted about a third of the newly built power generation capacities.[52]
According to a 2011 projection by the International Energy Agency, solar power plants may produce most of the world's electricity within 50 years, significantly reducing the emissions of greenhouse gases that harm the environment. The IEA has said: "Photovoltaic and solar-thermal plants may meet most of the world's demand for electricity by 2060 -- and half of all energy needs -- with wind, hydropower and biomass plants supplying much of the remaining generation". "Photovoltaic and concentrated solar power together can become the major source of electricity".[48]
In 2013, China led the world in renewable energy production, with a total capacity of 378 GW, mainly from hydroelectric and wind power. As of 2014, China leads the world in the production and use of wind power, solar photovoltaic power and smart grid technologies, generating almost as much water, wind and solar energy as all of France and Germany's power plants combined. China’s renewable energy sector is growing faster than its fossil fuels and nuclear power capacity. Since 2005, production of solar cells in China has expanded 100-fold. As Chinese renewable manufacturing has grown, the costs of renewable energy technologies have dropped. Innovation has helped, but the main driver of reduced costs has been market expansion.[58]
Selected renewable energy global indicators | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | |
---|---|---|---|---|---|---|---|
Investment in new renewable capacity (annual) (109 USD) | 130 | 160 | 211 | 257 | 244 | 214 | |
Renewables power capacity (existing) (GWe) | 1,140 | 1,230 | 1,320 | 1,360 | 1,470 | 1,560 | |
Hydropower capacity (existing) (GWe) | 885 | 915 | 945 | 970 | 990 | 1,000 | |
Wind power capacity (existing) (GWe) | 121 | 159 | 198 | 238 | 283 | 318 | |
Solar PV capacity (grid-connected) (GWe) | 16 | 23 | 40 | 70 | 100 | 139 | |
Solar hot water capacity (existing) (GWth) | 130 | 160 | 185 | 232 | 255 | 326 | |
Ethanol production (annual) (109 litres) | 67 | 76 | 86 | 86 | 83 | 87 | |
Biodiesel production (annual) (109 litres) | 12 | 17.8 | 18.5 | 21.4 | 22.5 | 26 | |
Countries with policy targets for renewable energy use | 79 | 89 | 98 | 118 | 138 | 144 | |
Source: The Renewable Energy Policy Network for the 21st Century (REN21)–Global Status Report[59][60][61][62] Next report: Release of GSR2015, with figures for 2014, is expected in June/July 2015. |
Renewable energy technologies are getting cheaper, through technological change and through the benefits of mass production and market competition. A 2011 IEA report said: "A portfolio of renewable energy technologies is becoming cost-competitive in an increasingly broad range of circumstances, in some cases providing investment opportunities without the need for specific economic support," and added that "cost reductions in critical technologies, such as wind and solar, are set to continue."[65]
Hydro-electricity and geothermal electricity produced at favorable sites are now the cheapest way to generate electricity. Renewable energy costs continue to drop, and the levelized cost of electricity (LCOE) is declining for wind power, solar photovoltaic (PV), concentrated solar power (CSP) and some biomass technologies.[35]
Renewable energy is also the most economic solution for new grid-connected capacity in areas with good resources. As the cost of renewable power falls, the scope of economically viable applications increases. Renewable technologies are now often the most economic solution for new generating capacity. Where "oil-fired generation is the predominant power generation source (e.g. on islands, off-grid and in some countries) a lower-cost renewable solution almost always exists today".[35]
A series of studies by the US National Renewable Energy Laboratory modeled the "grid in the Western US under a number of different scenarios where intermittent renewables accounted for 33 percent of the total power." In the models, inefficiencies in cycling the fossil fuel plants to compensate for the variation in solar and wind energy resulted in an additional cost of "between $0.47 and $1.28 to each MegaWatt hour generated"; however, the savings in the cost of the fuels saved "adds up to $7 billion, meaning the added costs are, at most, two percent of the savings."[66]
As of 2012, renewable power generation technologies accounted for around half of all new power generation capacity additions globally. In 2011, additions included 41 gigawatt (GW) of new wind power capacity, 30 GW of PV, 25 GW of hydro-electricity, 6 GW of biomass, 0.5 GW of CSP, and 0.1 GW of geothermal power.[35]
Airflows can be used to run wind turbines. Modern utility-scale wind turbines range from around 600 kW to 5 MW of rated power, although turbines with rated output of 1.5–3 MW have become the most common for commercial use; the power available from the wind is a function of the cube of the wind speed, so as wind speed increases, power output increases up to the maximum output for the particular turbine.[67] Areas where winds are stronger and more constant, such as offshore and high altitude sites, are preferred locations for wind farms. Typical capacity factors are 20-40%, with values at the upper end of the range in particularly favorable sites.[68][69]
Globally, the long-term technical potential of wind energy is believed to be five times total current global energy production, or 40 times current electricity demand, assuming all practical barriers needed were overcome. This would require wind turbines to be installed over large areas, particularly in areas of higher wind resources, such as offshore. As offshore wind speeds average ~90% greater than that of land, so offshore resources can contribute substantially more energy than land stationed turbines.[70] In 2013 wind generated almost 3% of the worlds total electricity.[71]
Wind power is widely used in Europe, China, and the United States. From 2004 to 2014, worldwide installed capacity of wind power has been growing from 47 GW to 369 GW—a more than sevenfold increase within 10 years with 2014 breaking a new record in global installations (51 GW). As of the end of 2014, China, the United States and Germany combined accounted for half of total global capacity.[72] Several other countries have achieved relatively high levels of wind power penetration, such as 21% of stationary electricity production in Denmark, 18% in Portugal, 16% in Spain, and 14% in Ireland in 2010 and have since continued to expand their installed capacity.[73][74] More than 80 countries around the world are using wind power on a commercial basis.[38]
Some of the second-generation renewables, such as wind power, have high potential and have already realised relatively low production costs.[77][78] Global wind power installations increased by 35,800 MW in 2010, bringing total installed capacity up to 194,400 MW, a 22.5% increase on the 158,700 MW installed at the end of 2009. The increase for 2010 represents investments totalling €47.3 billion (US$65 billion) and for the first time more than half of all new wind power was added outside of the traditional markets of Europe and North America, mainly driven, by the continuing boom in China which accounted for nearly half of all of the installations at 16,500 MW. China now has 42,300 MW of wind power installed.[79] Wind power accounts for approximately 19% of electricity generated in Denmark, 9% in Spain and Portugal, and 6% in Germany and the Republic of Ireland.[80] In Australian state of South Australia wind power, championed by Premier Mike Rann (2002-2011), now comprises 26% of the state's electricity generation, edging out coal fired power. At the end of 2011 South Australia, with 7.2% of Australia's population, had 54%of the nation's installed wind power capacity.[81]
These are some of the largest wind farms in the world: (table removed)
As of 2014, the wind industry in the USA is able to produce more power at lower cost by using taller wind turbines with longer blades, capturing the faster winds at higher elevations. This has opened up new opportunities and in Indiana, Michigan, and Ohio, the price of power from wind turbines built 300 feet to 400 feet above the ground can now compete with conventional fossil fuels like coal. Prices have fallen to about 4 cents per kilowatt-hour in some cases and utilities have been increasing the amount of wind energy in their portfolio, saying it is their cheapest option.[82]
Energy in water can be harnessed and used. Since water is about 800 times denser than air, even a slow flowing stream of water, or moderate sea swell, can yield considerable amounts of energy. There are many forms of water energy:
Hydropower is produced in 150 countries, with the Asia-Pacific region generating 32 percent of global hydropower in 2010. China is the largest hydroelectricity producer, with 721 terawatt-hours of production in 2010, representing around 17 percent of domestic electricity use. There are now three hydroelectricity stations larger than 10 GW: the Three Gorges Dam in China, Itaipu Dam across the Brazil/Paraguay border, and Guri Dam in Venezuela.[83]
Wave power, which captures the energy of ocean surface waves, and tidal power, converting the energy of tides, are two forms of hydropower with future potential; however, they are not yet widely employed commercially. A demonstration project operated by the Ocean Renewable Power Company on the coast of Maine, and connected to the grid, harnesses tidal power from the Bay of Fundy, location of world's highest tidal flow. Ocean thermal energy conversion, which uses the temperature difference between cooler deep and warmer surface waters, has currently no economic feasibility. In 2013 hydropower generated almost 16% of the worlds total electricity.[84]
The Three Gorges Dam in Hubei, China, has the world's largest instantaneous generating capacity (22,500 MW), with the Itaipu Dam in Brazil/Paraguay in second place (14,000 MW). The Three Gorges Dam is operated jointly with the much smaller Gezhouba Dam (3,115 MW). As of 2012[update], the total generating capacity of this two-dam complex is 25,615 MW. In 2008, this complex generated 98 TWh of electricity (81 TWh from the Three Gorges Dam and 17 TWh from the Gezhouba Dam), which is 3% more power in one year than the 95 TWh generated by Itaipu in 2008.
Hydroelectricity is the term referring to electricity generated by hydropower; the production of electrical power through the use of the gravitational force of falling or flowing water. It is the most widely used form of renewable energy, accounting for 16 percent of global electricity generation – 3,427 terawatt-hours of electricity production in 2010,[83] and is expected to increase about 3.1% each year for the next 25 years. Hydroelectric plants have the advantage of being long-lived and many existing plants have operated for more than 100 years.
Hydropower is produced in 150 countries, with the Asia-Pacific region generating 32 percent of global hydropower in 2010. China is the largest hydroelectricity producer, with 721 terawatt-hours of production in 2010, representing around 17 percent of domestic electricity use. There are now three hydroelectricity plants larger than 10 GW: the Three Gorges Dam in China, Itaipu Dam across the Brazil/Paraguay border, and Guri Dam in Venezuela.[83] The cost of hydroelectricity is low, making it a competitive source of renewable electricity. The average cost of electricity from a hydro plant larger than 10 megawatts is 3 to 5 U.S. cents per kilowatt-hour.[83]
Solar energy, radiant light and heat from the sun, is harnessed using a range of ever-evolving technologies such as solar heating, photovoltaics, concentrated solar power, solar architecture and artificial photosynthesis.[85][86] Solar technologies are broadly characterized as either passive solar or active solar depending on the way they capture, convert and distribute solar energy. Passive solar techniques include orienting a building to the Sun, selecting materials with favorable thermal mass or light dispersing properties, and designing spaces that naturally circulate air. Active solar technologies encompass solar thermal energy, using solar collectors for heating, and solar power, converting sunlight into electricity either directly using photovoltaics (PV), or indirectly using concentrated solar power (CSP).
A photovoltaic system converts light into electrical direct current (DC) by taking advantage of the photoelectric effect.[87] Solar PV has turned into a multi-billion, fast-growing industry, continues to improve its cost-effectiveness, and has the most potential of any renewable technologies together with CSP.[88][89] Concentrated solar power (CSP) systems use lenses or mirrors and tracking systems to focus a large area of sunlight into a small beam. Commercial concentrated solar power plants were first developed in the 1980s. CSP-Stirling has by far the highest efficiency among all solar energy technologies.
In 2011, the International Energy Agency said that "the development of affordable, inexhaustible and clean solar energy technologies will have huge longer-term benefits. It will increase countries' energy security through reliance on an indigenous, inexhaustible and mostly import-independent resource, enhance sustainability, reduce pollution, lower the costs of mitigating climate change, and keep fossil fuel prices lower than otherwise. These advantages are global. Hence the additional costs of the incentives for early deployment should be considered learning investments; they must be wisely spent and need to be widely shared".[85] In 2013 solar generated less than 1% of the worlds total grid electricity.[90]
The United States conducted much early research in photovoltaics and concentrated solar power. The U.S. is among the top countries in the world in electricity generated by the Sun and several of the world's largest utility-scale installations are located in the desert Southwest.
The oldest solar thermal power plant in the world is the 354 megawatt (MW) SEGS thermal power plant, in California.[91] The Ivanpah Solar Electric Generating System is a solar thermal power project in the California Mojave Desert, 40 miles (64 km) southwest of Las Vegas, with a gross capacity of 377 MW.[92] The 280 MW Solana Generating Station is a solar power plant near Gila Bend, Arizona, about 70 miles (110 km) southwest of Phoenix, completed in 2013. When commissioned it was the largest parabolic trough plant in the world and the first U.S. solar plant with molten salt thermal energy storage.[93]
The solar thermal power industry is growing rapidly with 1.3 GW under construction in 2012 and more planned. Spain is the epicenter of solar thermal power development with 873 MW under construction, and a further 271 MW under development.[94] In the United States, 5,600 MW of solar thermal power projects have been announced.[95] Several power plants have been constructed in the Mojave Desert, Southwestern United States. The Ivanpah Solar Power Facility being the most recent. In developing countries, three World Bank projects for integrated solar thermal/combined-cycle gas-turbine power plants in Egypt, Mexico, and Morocco have been approved.[96]
Solar thermal power stations include the 354 megawatt (MW) Solar Energy Generating Systems power plant in the USA, Solnova Solar Power Station (Spain, 150 MW), Andasol solar power station (Spain, 100 MW), Nevada Solar One (USA, 64 MW), PS20 solar power tower (Spain, 20 MW), and the PS10 solar power tower (Spain, 11 MW). The 370 MW Ivanpah Solar Power Facility, located in California's Mojave Desert, is the world's largest solar-thermal power plant project currently under construction.[92] Many other plants are under construction or planned, mainly in Spain and the USA.[96] In developing countries, three World Bank projects for integrated solar thermal/combined-cycle gas-turbine power plants in Egypt, Mexico, and Morocco have been approved.[96]
Solar heating systems are a well known second-generation technology and generally consist of solar thermal collectors, a fluid system to move the heat from the collector to its point of usage, and a reservoir or tank for heat storage. The systems may be used to heat domestic hot water, swimming pools, or homes and businesses.[97] The heat can also be used for industrial process applications or as an energy input for other uses such as cooling equipment.[98] In many warmer climates, a solar heating system can provide a very high percentage (50 to 75%) of domestic hot water energy. As of 2009[update], China has 27 million rooftop solar water heaters.[99]
Photovoltaic (PV) cells, also called solar cells, convert light into electricity. In the 1980s and early 1990s, most photovoltaic modules were used to provide remote-area power supply, but from around 1995, industry efforts have focused increasingly on developing building integrated photovoltaics and photovoltaic power stations for grid connected applications. Photovoltaics (PV) uses solar cells assembled into solar panels to convert sunlight into electricity. It's a fast-growing technology doubling its worldwide installed capacity every couple of years. PV systems range from small, residential and commercial rooftop or building integrated installations, to large utility-scale photovoltaic power station. The predominant PV technology is crystalline silicon, while thin-film solar cell technology accounts for about 10 percent of global photovoltaic deployment. In recent years, PV technology has improved its electricity generating efficiency, reduced the installation cost per watt as well as its energy payback time, and has reached grid parity in at least 30 different markets by 2014.[100] Financial institutions are predicting a second solar "gold rush" in the near future.[101][102][103]
At the end of 2014, worldwide PV capacity reached at least 177,000 megawatts. Photovoltaics grew fastest in China, followed by Japan and the United States, while Germany remains the world's largest overall producer of photovoltaic power, contributing about 7.0 percent to the overall electricity generation. Italy meets 7.9 percent of its electricity demands with photovoltaic power—the highest share worldwide.[104] For 2015, global cumulative capacity is forecasted to increase by more than 50 gigawatts (GW). By 2018, worldwide capacity is projected to reach as much as 430 gigawatts. This corresponds to a tripling within five years.[105] Solar power is forecasted to become the world's largest source of electricity by 2050, with solar photovoltaics and concentrated solar power contributing 16% and 11%, respectively. This requires an increase of installed PV capacity to 4,600 GW, of which more than half is expected to be deployed in China and India.[106]
Many solar photovoltaic power stations have been built, mainly in Europe.[107] As of May 2012, the largest photovoltaic (PV) power plants in the world are the Agua Caliente Solar Project (USA, 247 MW), Charanka Solar Park (India, 214 MW), Golmud Solar Park (China, 200 MW), Perovo Solar Park (Ukraine, 100 MW), Sarnia Photovoltaic Power Plant (Canada, 97 MW), Brandenburg-Briest Solarpark (Germany, 91 MW), Solarpark Finow Tower (Germany, 84.7 MW), Montalto di Castro Photovoltaic Power Station (Italy, 84.2 MW), and the Eggebek Solar Park (Germany, 83.6 MW).[107]
There are also many large plants under construction. The Desert Sunlight Solar Farm is a 550 MW solar power plant under construction in Riverside County, California, that will use thin-film solar photovoltaic modules made by First Solar.[108] The Topaz Solar Farm is a 550 MW photovoltaic power plant, being built in San Luis Obispo County, California.[109] The Blythe Solar Power Project is a 500 MW photovoltaic station under construction in Riverside County, California. The California Valley Solar Ranch (CVSR) is a 250 MW solar photovoltaic power plant, which is being built by SunPower in the Carrizo Plain, northeast of California Valley.[110] The 230 MW Antelope Valley Solar Ranch is a First Solar photovoltaic project which is under construction in the Antelope Valley area of the Western Mojave Desert, and due to be completed in 2013.[111]
Many of these plants are integrated with agriculture and some use tracking systems that follow the sun's daily path across the sky to generate more electricity than fixed-mounted systems. There are no fuel costs or emissions during operation of the power stations.
However, when it comes to renewable energy systems and PV, it is not just large systems that matter. Building-integrated photovoltaics or "onsite" PV systems use existing land and structures and generate power close to where it is consumed.[112]
Geothermal energy is from thermal energy generated and stored in the Earth. Thermal energy is the energy that determines the temperature of matter. Earth's geothermal energy originates from the original formation of the planet (20%) and from radioactive decay of minerals (80%).[113] The geothermal gradient, which is the difference in temperature between the core of the planet and its surface, drives a continuous conduction of thermal energy in the form of heat from the core to the surface. The adjective geothermal originates from the Greek roots geo, meaning earth, and thermos, meaning heat.
The heat that is used for geothermal energy can be from deep within the Earth, all the way down to Earth's core – 4,000 miles (6,400 km) down. At the core, temperatures may reach over 9,000 °F (5,000 °C). Heat conducts from the core to surrounding rock. Extremely high temperature and pressure cause some rock to melt, which is commonly known as magma. Magma convects upward since it is lighter than the solid rock. This magma then heats rock and water in the crust, sometimes up to 700 °F (371 °C).[114]
From hot springs, geothermal energy has been used for bathing since Paleolithic times and for space heating since ancient Roman times, but it is now better known for electricity generation.
Geothermal power is cost effective, reliable, sustainable, and environmentally friendly,[115] but has historically been limited to areas near tectonic plate boundaries. Recent technological advances have expanded the range and size of viable resources, especially for applications such as home heating, opening a potential for widespread exploitation. Geothermal wells release greenhouse gases trapped deep within the earth, but these emissions are much lower per energy unit than those of fossil fuels. As a result, geothermal power has the potential to help mitigate global warming if widely deployed in place of fossil fuels.
The International Geothermal Association (IGA) has reported that 10,715 MW of geothermal power in 24 countries is online, which is expected to generate 67,246 GWh of electricity in 2010.[116] This represents a 20% increase in geothermal power online capacity since 2005. IGA projects this will grow to 18,500 MW by 2015, due to the large number of projects presently under consideration, often in areas previously assumed to have little exploitable resource.[116]
In 2010, the United States led the world in geothermal electricity production with 3,086 MW of installed capacity from 77 power plants;[117] the largest group of geothermal power plants in the world is located at The Geysers, a geothermal field in California.[118] The Philippines follows the US as the second highest producer of geothermal power in the world, with 1,904 MW of capacity online; geothermal power makes up approximately 18% of the country's electricity generation.[117]
Geothermal power plants can operate 24 hours per day, providing baseload capacity. Estimates for the world potential capacity for geothermal power generation vary widely, ranging from 40 GW by 2020 to as much as 6,000 GW.[119][120]
Geothermal power capacity grew from around 1 GW in 1975 to almost 10 GW in 2008.[120] The United States is the world leader in terms of installed capacity, representing 3.1 GW. Other countries with significant installed capacity include the Philippines (1.9 GW), Indonesia (1.2 GW), Mexico (1.0 GW), Italy (0.8 GW), Iceland (0.6 GW), Japan (0.5 GW), and New Zealand (0.5 GW).[120][121] In some countries, geothermal power accounts for a significant share of the total electricity supply, such as in the Philippines, where geothermal represented 17 percent of the total power mix at the end of 2008.[122]
Geothermal (ground source) heat pumps represented an estimated 30 GWth of installed capacity at the end of 2008, with other direct uses of geothermal heat (i.e., for space heating, agricultural drying and other uses) reaching an estimated 15 GWth. As of 2008[update], at least 76 countries use direct geothermal energy in some form.[123]
Biomass is biological material derived from living, or recently living organisms. It most often refers to plants or plant-derived materials which are specifically called lignocellulosic biomass.[124] As an energy source, biomass can either be used directly via combustion to produce heat, or indirectly after converting it to various forms of biofuel. Conversion of biomass to biofuel can be achieved by different methods which are broadly classified into: thermal, chemical, and biochemical methods. Wood remains the largest biomass energy source today;[125] examples include forest residues – such as dead trees, branches and tree stumps –, yard clippings, wood chips and even municipal solid waste. In the second sense, biomass includes plant or animal matter that can be converted into fibers or other industrial chemicals, including biofuels. Industrial biomass can be grown from numerous types of plants, including miscanthus, switchgrass, hemp, corn, poplar, willow, sorghum, sugarcane, bamboo,[126] and a variety of tree species, ranging from eucalyptus to oil palm (palm oil).
Plant energy is produced by crops specifically grown for use as fuel that offer high biomass output per hectare with low input energy. Some examples of these plants are wheat, which typically yield 7.5–8 tonnes of grain per hectare, and straw, which typically yield 3.5–5 tonnes per hectare in the UK.[127] The grain can be used for liquid transportation fuels while the straw can be burned to produce heat or electricity. Plant biomass can also be degraded from cellulose to glucose through a series of chemical treatments, and the resulting sugar can then be used as a first generation biofuel.
Biomass can be converted to other usable forms of energy like methane gas or transportation fuels like ethanol and biodiesel. Rotting garbage, and agricultural and human waste, all release methane gas – also called landfill gas or biogas. Crops, such as corn and sugarcane, can be fermented to produce the transportation fuel, ethanol. Biodiesel, another transportation fuel, can be produced from left-over food products like vegetable oils and animal fats.[128] Also, biomass to liquids (BTLs) and cellulosic ethanol are still under research.[129][130] There is a great deal of research involving algal fuel or algae-derived biomass due to the fact that it's a non-food resource and can be produced at rates 5 to 10 times those of other types of land-based agriculture, such as corn and soy. Once harvested, it can be fermented to produce biofuels such as ethanol, butanol, and methane, as well as biodiesel and hydrogen. The biomass used for electricity generation varies by region. Forest by-products, such as wood residues, are common in the United States. Agricultural waste is common in Mauritius (sugar cane residue) and Southeast Asia (rice husks). Animal husbandry residues, such as poultry litter, are common in the United Kingdom.[131]
Biofuels include a wide range of fuels which are derived from biomass. The term covers solid, liquid, and gaseous fuels.[132] Liquid biofuels include bioalcohols, such as bioethanol, and oils, such as biodiesel. Gaseous biofuels include biogas, landfill gas and synthetic gas. Bioethanol is an alcoho] made by fermenting the sugar components of plant materials and it is made mostly from sugar and starch crops. These include maize, sugarcane and, more recently, sweet sorghum. The latter crop is particularly suitable for growing in dryland conditions, and is being investigated by International Crops Research Institute for the Semi-Arid Tropics for its potential to provide fuel, along with food and animal feed, in arid parts of Asia and Africa.[133]
With advanced technology being developed, cellulosic biomass, such as trees and grasses, are also used as feedstocks for ethanol production. Ethanol can be used as a fuel for vehicles in its pure form, but it is usually used as a gasoline additive to increase octane and improve vehicle emissions. Bioethanol is widely used in the United States and in Brazil. The energy costs for producing bio-ethanol are almost equal to, the energy yields from bio-ethanol. However, according to the European Environment Agency, biofuels do not address global warming concerns.[134] Biodiesel is made from vegetable oils, animal fats or recycled greases. It can be used as a fuel for vehicles in its pure form, or more commonly as a diesel additive to reduce levels of particulates, carbon monoxide, and hydrocarbons from diesel-powered vehicles. Biodiesel is produced from oils or fats using transesterification and is the most common biofuel in Europe. Biofuels provided 2.7% of the world's transport fuel in 2010.[38]
Biofuels provided 3% of the world's transport fuel in 2010.[38] Mandates for blending biofuels exist in 31 countries at the national level and in 29 states/provinces.[38] According to the International Energy Agency, biofuels have the potential to meet more than a quarter of world demand for transportation fuels by 2050.[135]
Since the 1970s, Brazil has had an ethanol fuel program which has allowed the country to become the world's second largest producer of ethanol (after the United States) and the world's largest exporter.[136] Brazil's ethanol fuel program uses modern equipment and cheap sugarcane as feedstock, and the residual cane-waste (bagasse) is used to produce heat and power.[137] There are no longer light vehicles in Brazil running on pure gasoline. By the end of 2008 there were 35,000 filling stations throughout Brazil with at least one ethanol pump.[138]
Nearly all the gasoline sold in the United States today is mixed with 10% ethanol, a mix known as E10,[139] and motor vehicle manufacturers already produce vehicles designed to run on much higher ethanol blends. Ford, Daimler AG, and GM are among the automobile companies that sell "flexible-fuel" cars, trucks, and minivans that can use gasoline and ethanol blends ranging from pure gasoline up to 85% ethanol (E85). By mid-2006, there were approximately 6 million E85-compatible vehicles on U.S. roads.[140] The challenge is to expand the market for biofuels beyond the farm states where they have been most popular to date. Flex-fuel vehicles are assisting in this transition because they allow drivers to choose different fuels based on price and availability. The Energy Policy Act of 2005, which calls for 7.5 billion US gallons (28,000,000 m3) of biofuels to be used annually by 2012, will also help to expand the market.[140]
Global ethanol production for transport fuel tripled between 2000 and 2007 from 17 billion to more than 52 billion litres, while biodiesel expanded more than tenfold from less than 1 billion to almost 11 billion litres. Biofuels provide 1.8% of the world's transport fuel and recent estimates indicate a continued high growth. The main producing countries for transport biofuels are the USA, Brazil, and the EU.[141]
Brazil has one of the largest renewable energy programs in the world, involving production of ethanol fuel from sugar cane, and ethanol now provides 18 percent of the country's automotive fuel. As a result of this and the exploitation of domestic deep water oil sources, Brazil, which for years had to import a large share of the petroleum needed for domestic consumption, recently reached complete self-sufficiency in liquid fuels.[142][143]
Nearly all the gasoline sold in the United States today is mixed with 10 percent ethanol, a mix known as E10,[144] and motor vehicle manufacturers already produce vehicles designed to run on much higher ethanol blends. Ford, DaimlerChrysler, and GM are among the automobile companies that sell flexible-fuel cars, trucks, and minivans that can use gasoline and ethanol blends ranging from pure gasoline up to 85% ethanol (E85). The challenge is to expand the market for biofuels beyond the farm states where they have been most popular to date. The Energy Policy Act of 2005, which calls for 7.5 billion US gallons (28,000,000 m3) of biofuels to be used annually by 2012, will also help to expand the market.[145]
The growing ethanol and biodiesel industries are providing jobs in plant construction, operations, and maintenance, mostly in rural communities. According to the Renewable Fuels Association, "the ethanol industry created almost 154,000 U.S. jobs in 2005 alone, boosting household income by $5.7 billion. It also contributed about $3.5 billion in tax revenues at the local, state, and federal levels".[145]
Biomass for heat and power is a fully mature technology which offers a ready disposal mechanism for municipal, agricultural, and industrial organic wastes. However, the industry has remained relatively stagnant over the decade to 2007, even though demand for biomass (mostly wood) continues to grow in many developing countries. One of the problems of biomass is that material directly combusted in cook stoves produces pollutants, leading to severe health and environmental consequences, although improved cook stove programmes are alleviating some of these effects. First-generation biomass technologies can be economically competitive, but may still require deployment support to overcome public acceptance and small-scale issues.[20]
Carbon-neutral fuels are synthetic fuels (including methane, gasoline, diesel fuel, jet fuel or ammonia[146]) produced by hydrogenating waste carbon dioxide recycled from power plant flue-gas emissions, recovered from automotive exhaust gas, or derived from carbonic acid in seawater.[147] Such fuels are considered carbon-neutral because they do not result in a net increase in atmospheric greenhouse gases.[148] To the extent that synthetic fuels displace fossil fuels, or if they are produced from waste carbon or seawater carbonic acid,[149] and their combustion is subject to carbon capture at the flue or exhaust pipe, they result in negative carbon dioxide emission and net carbon dioxide removal from the atmosphere, and thus constitute a form of greenhouse gas remediation.[150]
Such renewable fuels alleviate the costs and dependency issues of imported fossil fuels without requiring either electrification of the vehicle fleet or conversion to hydrogen or other fuels, enabling continued compatible and affordable vehicles.[151] Carbon-neutral fuels offer relatively low cost energy storage, alleviating the problems of wind and solar intermittency, and they enable distribution of wind, water, and solar power through existing natural gas pipelines.[151] Nighttime wind power is considered the most economical form of electrical power with which to synthesize fuel, because the load curve for electricity peaks sharply during the warmest hours of the day, but wind tends to blow slightly more at night than during the day, so, the price of nighttime wind power is often much less expensive than any alternative.[151] Germany has built a 250 kilowatt synthetic methane plant which they are scaling up to 10 megawatts.[152][153][154]
The George Olah carbon dioxide recycling plant in Grindavík, Iceland has been producing 2 million liters of methanol transportation fuel per year from flue exhaust of the Svartsengi Power Station since 2011.[155] It has the capacity to produce 5 million liters per year.[156]
Other renewable energy technologies are still under development, and include cellulosic ethanol, hot-dry-rock geothermal power, and marine energy.[20] These technologies are not yet widely demonstrated or have limited commercialization. Many are on the horizon and may have potential comparable to other renewable energy technologies, but still depend on attracting sufficient attention and research, development and demonstration (RD&D) funding.[20]
There are numerous organizations within the academic, federal, and commercial sectors conducting large scale advanced research in the field of renewable energy. This research spans several areas of focus across the renewable energy spectrum. Most of the research is targeted at improving efficiency and increasing overall energy yields.[157] Multiple federally supported research organizations have focused on renewable energy in recent years. Two of the most prominent of these labs are Sandia National Laboratories and the National Renewable Energy Laboratory (NREL), both of which are funded by the United States Department of Energy and supported by various corporate partners.[158] Sandia has a total budget of $2.4 billion[159] while NREL has a budget of $375 million.[160]
In the United Kingdom, for example, the Carbon Trust recently estimated the extent of the economically viable offshore resource at 55 TWh per year, about 14% of current national demand. Across Europe, the technologically achievable resource has been estimated to be at least 280 TWh per year. In 2003, the U.S. Electric Power Research Institute (EPRI) estimated the viable resource in the United States at 255 TWh per year (6% of demand).[173]
Moving towards energy sustainability will require changes not only in the way energy is supplied, but in the way it is used, and reducing the amount of energy required to deliver various goods or services is essential. Opportunities for improvement on the demand side of the energy equation are as rich and diverse as those on the supply side, and often offer significant economic benefits.[175]
A sustainable energy economy requires commitments to both renewables and efficiency. Renewable energy and energy efficiency are said to be the "twin pillars" of sustainable energy policy. The American Council for an Energy-Efficient Economy has explained that both resources must be developed in order to stabilize and reduce carbon dioxide emissions:[176]
Efficiency is essential to slowing the energy demand growth so that rising clean energy supplies can make deep cuts in fossil fuel use. If energy use grows too fast, renewable energy development will chase a receding target. Likewise, unless clean energy supplies come online rapidly, slowing demand growth will only begin to reduce total emissions; reducing the carbon content of energy sources is also needed.[176]
The IEA has stated that renewable energy and energy efficiency policies are complementary tools for the development of a sustainable energy future, and should be developed together instead of being developed in isolation.[177]
Renewable energy can be particularly suitable for developing countries. In rural and remote areas, transmission and distribution of energy generated from fossil fuels can be difficult and expensive. Producing renewable energy locally can offer a viable alternative.[178]
Technology advances are opening up a huge new market for solar power: the approximately 1.3 billion people around the world who don't have access to grid electricity. Even though they are typically very poor, these people have to pay far more for lighting than people in rich countries because they use inefficient kerosene lamps. Solar power costs half as much as lighting with kerosene.[179] An estimated 3 million households get power from small solar PV systems.[180] Kenya is the world leader in the number of solar power systems installed per capita. More than 30,000 very small solar panels, each producing 12 to 30 watts, are sold in Kenya annually. Some Small Island Developing States (SIDS) are also turning to solar power to reduce their costs and increase their sustainability.[181]
Micro-hydro configured into mini-grids also provide power. Over 44 million households use biogas made in household-scale digesters for lighting and/or cooking, and more than 166 million households rely on a new generation of more-efficient biomass cookstoves.[15] Clean liquid fuel sourced from renewable feedstocks are used for cooking and lighting in energy-poor areas of the developing world. Alcohol fuels (ethanol and methanol) can be produced sustainably from non-food sugary, starchy, and cellulostic feedstocks. Project Gaia, Inc. and CleanStar Mozambique are implementing clean cooking programs with liquid ethanol stoves in Ethiopia, Kenya, Nigeria and Mozambique.[182]
Renewable energy projects in many developing countries have demonstrated that renewable energy can directly contribute to poverty reduction by providing the energy needed for creating businesses and employment. Renewable energy technologies can also make indirect contributions to alleviating poverty by providing energy for cooking, space heating, and lighting. Renewable energy can also contribute to education, by providing electricity to schools.[183]
U.S. President Barack Obama's American Recovery and Reinvestment Act of 2009 includes more than $70 billion in direct spending and tax credits for clean energy and associated transportation programs. Clean Edge suggests that the commercialization of clean energy will help countries around the world pull out of the current economic malaise.[184] Leading renewable energy companies include First Solar, Gamesa, GE Energy, Q-Cells, Sharp Solar, Siemens, SunOpta, Suntech Power, and Vestas.[185]
The military has also focused on the use of renewable fuels for military vehicles. Unlike fossil fuels, renewable fuels can be produced in any country, creating a strategic advantage. The US military has already committed itself to have 50% of its energy consumption come from alternative sources.[186]
The International Renewable Energy Agency (IRENA) is an intergovernmental organization for promoting the adoption of renewable energy worldwide. It aims to provide concrete policy advice and facilitate capacity building and technology transfer. IRENA was formed on 26 January 2009, by 75 countries signing the charter of IRENA.[187] As of March 2010, IRENA has 143 member states who all are considered as founding members, of which 14 have also ratified the statute.[188]
As of 2011, 119 countries have some form of national renewable energy policy target or renewable support policy. National targets now exist in at least 98 countries. There is also a wide range of policies at state/provincial and local levels.[38]
United Nations' Secretary-General Ban Ki-moon has said that renewable energy has the ability to lift the poorest nations to new levels of prosperity.[9] In October 2011, he "announced the creation of a high-level group to drum up support for energy access, energy efficiency and greater use of renewable energy. The group is to be co-chaired by Kandeh Yumkella, the chair of UN Energy and director general of the UN Industrial Development Organisation, and Charles Holliday, chairman of Bank of America".[189]
The incentive to use 100% renewable energy, for electricity, transport, or even total primary energy supply globally, has been motivated by global warming and other ecological as well as economic concerns. The Intergovernmental Panel on Climate Change has said that there are few fundamental technological limits to integrating a portfolio of renewable energy technologies to meet most of total global energy demand. Renewable energy use has grown much faster than even advocates anticipated.[190] At the national level, at least 30 nations around the world already have renewable energy contributing more than 20% of energy supply. Also, Professors S. Pacala and Robert H. Socolow have developed a series of "stabilization wedges" that can allow us to maintain our quality of life while avoiding catastrophic climate change, and "renewable energy sources," in aggregate, constitute the largest number of their "wedges." [191] In reviewing 164 recent scenarios of future renewable energy growth, the report noted that the majority expected renewable sources to supply more than 17% of total energy by 2030, and 27% by 2050; the highest forecast projected 43% supplied by renewables by 2030 and 77% by 2050.[192]
Mark Z. Jacobson, professor of civil and environmental engineering at Stanford University and director of its Atmosphere and Energy Program says producing all new energy with wind power, solar power, and hydropower by 2030 is feasible and existing energy supply arrangements could be replaced by 2050. Barriers to implementing the renewable energy plan are seen to be "primarily social and political, not technological or economic". Jacobson says that energy costs with a wind, solar, water system should be similar to today's energy costs.[193]
Similarly, in the United States, the independent National Research Council has noted that sufficient domestic renewable resources exist to allow renewable electricity to play a significant role in future electricity generation and thus help confront issues related to climate change, energy security, and the escalation of energy costs Renewable energy is an attractive option because renewable resources available in the United States, taken collectively, can supply significantly greater amounts of electricity than the total current or projected domestic demand." .[194]
The most significant barriers to the widespread implementation of large-scale renewable energy and low carbon energy strategies are primarily political and not technological. According to the 2013 Post Carbon Pathways report, which reviewed many international studies, the key roadblocks are: climate change denial, the fossil fuels lobby, political inaction, unsustainable energy consumption, outdated energy infrastructure, and financial constraints.[195]
Public policy has a role to play in renewable energy commercialization because the free market system has some fundamental limitations. As the Stern Review points out:
In a liberalised energy market, investors, operators and consumers should face the full cost of their decisions. But this is not the case in many economies or energy sectors. Many policies distort the market in favour of existing fossil fuel technologies.[196]
The International Solar Energy Society has stated that "historical incentives for the conventional energy resources continue even today to bias markets by burying many of the real societal costs of their use".[197]
Fossil-fuel energy systems have different production, transmission, and end-use costs and characteristics than do renewable energy systems, and new promotional policies are needed to ensure that renewable systems develop as quickly and broadly as is socially desirable.[198]
Lester Brown states that the market "does not incorporate the indirect costs of providing goods or services into prices, it does not value nature's services adequately, and it does not respect the sustainable-yield thresholds of natural systems".[199] It also favors the near term over the long term, thereby showing limited concern for future generations.[199] Tax and subsidy shifting can help overcome these problems.[200]
Tax shifting has been widely discussed and endorsed by economists. It involves lowering income taxes while raising levies on environmentally destructive activities, in order to create a more responsive market. For example, a tax on coal that included the increased health care costs associated with breathing polluted air, the costs of acid rain damage, and the costs of climate disruption would encourage investment in renewable technologies. Several Western European countries are already shifting taxes in a process known there as environmental tax reform.[199]
In 2001, Sweden launched a new 10-year environmental tax shift designed to convert 30 billion kroner ($3.9 billion) of income taxes to taxes on environmentally destructive activities. Other European countries with significant tax reform efforts are France, Italy, Norway, Spain, and the United Kingdom. Asia's two leading economies, Japan and China, are considering carbon taxes.[199]
Just as there is a need for tax shifting, there is also a need for subsidy shifting. Subsidies are not an inherently bad thing as many technologies and industries emerged through government subsidy schemes. The Stern Review explains that of 20 key innovations from the past 30 years, only one of the 14 was funded entirely by the private sector and nine were totally publicly funded.[201] In terms of specific examples, the Internet was the result of publicly funded links among computers in government laboratories and research institutes. And the combination of the federal tax deduction and a robust state tax deduction in California helped to create the modern wind power industry.[200]
Lester Brown has argued that "a world facing the prospect of economically disruptive climate change can no longer justify subsidies to expand the burning of coal and oil. Shifting these subsidies to the development of climate-benign energy sources such as wind, solar, biomass, and geothermal power is the key to stabilizing the earth's climate."[200] The International Solar Energy Society advocates "leveling the playing field" by redressing the continuing inequities in public subsidies of energy technologies and R&D, in which the fossil fuel and nuclear power receive the largest share of financial support.[202]
Some countries are eliminating or reducing climate disrupting subsidies and Belgium, France, and Japan have phased out all subsidies for coal. Germany is reducing its coal subsidy. The subsidy dropped from $5.4 billion in 1989 to $2.8 billion in 2002, and in the process Germany lowered its coal use by 46 percent. China cut its coal subsidy from $750 million in 1993 to $240 million in 1995 and more recently has imposed a high-sulfur coal tax.[200] However, the United States has been increasing its support for the fossil fuel and nuclear industries.[200]
In November 2011, an IEA report entitled Deploying Renewables 2011 said "subsidies in green energy technologies that were not yet competitive are justified in order to give an incentive to investing into technologies with clear environmental and energy security benefits". The IEA's report disagreed with claims that renewable energy technologies are only viable through costly subsidies and not able to produce energy reliably to meet demand.[65]
Setting national renewable energy targets can be an important part of a renewable energy policy and these targets are usually defined as a percentage of the primary energy and/or electricity generation mix. For example, the European Union has prescribed an indicative renewable energy target of 12 per cent of the total EU energy mix and 22 per cent of electricity consumption by 2010. National targets for individual EU Member States have also been set to meet the overall target. Other developed countries with defined national or regional targets include Australia, Canada, Israel, Japan, Korea, New Zealand, Norway, Singapore, Switzerland, and some US States.[203]
National targets are also an important component of renewable energy strategies in some developing countries. Developing countries with renewable energy targets include China, India, Indonesia, Malaysia, the Philippines, Thailand, Brazil, Egypt, Mali, and South Africa. The targets set by many developing countries are quite modest when compared with those in some industrialized countries.[203]
Renewable energy targets in most countries are indicative and nonbinding but they have assisted government actions and regulatory frameworks. The United Nations Environment Program has suggested that making renewable energy targets legally binding could be an important policy tool to achieve higher renewable energy market penetration.[203]
The IEA has identified three actions which will allow renewable energy and other clean energy technologies to "more effectively compete for private sector capital".
In response to the global financial crisis in the late 2000s, the world's major governments made "green stimulus" programs one of their main policy instruments for supporting economic recovery. Some US$188 billion in green stimulus funding had been allocated to renewable energy and energy efficiency, to be spent mainly in 2010 and in 2011.[210]
Public policy determines the extent to which renewable energy (RE) is to be incorporated into a developed or developing country’s generation mix. Energy sector regulators implement that policy—thus affecting the pace and pattern of RE investments and connections to the grid. Energy regulators often have authority to carry out a number of functions that have implications for the financial feasibility of renewable energy projects. Such functions include issuing licenses, setting performance standards, monitoring the performance of regulated firms, determining the price level and structure of tariffs, establishing uniform systems of accounts, arbitrating stakeholder disputes (like interconnection cost allocations), performing management audits, developing agency human resources (expertise), reporting sector and commission activities to government authorities, and coordinating decisions with other government agencies. Thus, regulators make a wide range of decisions that affect the financial outcomes associated with RE investments. In addition, the sector regulator is in a position to give advice to the government regarding the full implications of focusing on climate change or energy security. The energy sector regulator is the natural advocate for efficiency and cost-containment throughout the process of designing and implementing RE policies. Since policies are not self-implementing, energy sector regulators become a key facilitator (or blocker) of renewable energy investments.[211]
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. [212]
The driving force 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.[213] In Europe the main voluntary tool used by the NGOs to promote sustainable electricity production is EKOenergy label.[214]
Many energy markets, institutions, and policies have been developed to support the production and use of fossil fuels.[198] 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.[215] 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.[215] 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".[216]
The obstacles to the widespread commercialization of renewable energy technologies are primarily political, not technical,[217] and there have been many studies which have identified a range of "non-technical barriers" to renewable energy use.[44][218][219] These barriers are impediments which put renewable energy at a marketing, institutional, or policy disadvantage relative to other forms of energy. Key barriers include:[218][219]
- National grids are usually tailored towards the operation of centralised power plants and thus favour their performance. Technologies that do not easily fit into these networks may struggle to enter the market, even if the technology itself is commercially viable. This applies to distributed generation as most grids are not suited to receive electricity from many small sources. Large-scale renewables may also encounter problems if they are sited in areas far from existing grids.[196]
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.[219][221]
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.[222]
A number of events in 2006 pushed renewable energy up the political agenda, including the US mid-term elections in November, which confirmed clean energy as a mainstream issue. Also in 2006, the Stern Review[45] made a strong economic case for investing in low carbon technologies now, and argued that economic growth need not be incompatible with cutting energy consumption.[224] According to a trend analysis from the United Nations Environment Programme, climate change concerns[33] coupled with recent high oil prices[225] and increasing government support are driving increasing rates of investment in the renewable energy and energy efficiency industries.[46][6]
Investment capital flowing into renewable energy reached a record US$77 billion in 2007, with the upward trend continuing in 2008.[47] The OECD still dominates, but there is now increasing activity from companies in China, India and Brazil. Chinese companies were the second largest recipient of venture capital in 2006 after the United States. In the same year, India was the largest net buyer of companies abroad, mainly in the more established European markets.[6]
New government spending, regulation, and policies helped the industry weather the 2009 economic crisis better than many other sectors.[13] Most notably, U.S. President Barack Obama's American Recovery and Reinvestment Act of 2009 included more than $70 billion in direct spending and tax credits for clean energy and associated transportation programs. This policy-stimulus combination represents the largest federal commitment in U.S. history for renewables, advanced transportation, and energy conservation initiatives. Based on these new rules, many more utilities strengthened their clean-energy programs.[13] Clean Edge suggests that the commercialization of clean energy will help countries around the world deal with the current economic malaise.[13] Once-promising solar energy company, Solyndra, became involved in a political controversy involving U.S. President Barack Obama's administration's authorization of a $535 million loan guarantee to the Corporation in 2009 as part of a program to promote alternative energy growth.[226][227][228] The company ceased all business activity, filed for Chapter 11 bankruptcy, and laid-off nearly all of its employees in early September 2011.[229][230]
In his January 24, 2012, State of the Union address, President Barack Obama restated his commitment to renewable energy. Obama said that he "will not walk away from the promise of clean energy." Obama called for a commitment by the Defense Department to purchase 1,000 MW of renewable energy. He also mentioned the long-standing Interior Department commitment to permit 10,000 MW of renewable energy projects on public land in 2012.[49]
As of 2012, renewable energy plays a major role in the energy mix of many countries globally. Renewables are becoming increasingly economic in both developing and developed countries. Prices for renewable energy technologies, primarily wind power and solar power, continued to drop, making renewables competitive with conventional energy sources. Without a level playing field, however, high market penetration of renewables is still dependent on a robust promotional policies. Fossil fuel subsidies, which are far higher than those for renewable energy, remain in place and quickly need to be phased out.[231]
United Nations' Secretary-General Ban Ki-moon has said that "renewable energy has the ability to lift the poorest nations to new levels of prosperity".[232] In October 2011, he "announced the creation of a high-level group to drum up support for energy access, energy efficiency and greater use of renewable energy. The group is to be co-chaired by Kandeh Yumkella, the chair of UN Energy and director general of the UN Industrial Development Organisation, and Charles Holliday, chairman of Bank of America".[233]
Worldwide use of solar power and wind power continued to grow significantly in 2012. Solar electricity consumption increased by 58 percent, to 93 terawatt-hours (TWh). Use of wind power in 2012 increased by 18.1 percent, to 521.3 TWh.[234] Global solar and wind energy installed capacities continued to expand even though new investments in these technologies declined during 2012. Worldwide investment in solar power in 2012 was $140.4 billion, an 11 percent decline from 2011, and wind power investment was down 10.1 percent, to $80.3 billion. But due to lower production costs for both technologies, total installed capacities grew sharply.[234] This investment decline, but growth in installed capacity, may again occur in 2013.[235][236] Analysts expect the market to triple by 2030.[237]
Total investment in renewable energy reached $211 billion in 2010, up from $160 billion in 2009. The top countries for investment in 2010 were China, Germany, the United States, Italy, and Brazil.[41] Continued growth for the renewable energy sector is expected and promotional policies helped the industry weather the 2009 economic crisis better than many other sectors.[13]
As of 2010[update], Vestas (from Denmark) is the world's top wind turbine manufacturer in terms of percentage of market volume, and Sinovel (from China) is in second place. Together Vestas and Sinovel delivered 10,228 MW of new wind power capacity in 2010, and their market share was 25.9 percent. GE Energy (USA) was in third place, closely followed by Goldwind, another Chinese supplier. German Enercon ranks fifth in the world, and is followed in sixth place by Indian-based Suzlon.[238]
The solar PV market has been growing for the past few years. According to solar PV research company, PVinsights, worldwide shipment of solar modules in 2011 was around 25 GW, and the shipment year over year growth was around 40%. The top 5 solar module players in 2011 in turns are Suntech, First Solar, Yingli, Trina, and Sungen. The top 5 solar module companies possessed 51.3% market share of solar modules, according to PVinsights' market intelligence report.
2013 Ranking | Solar Module Company | Change from 2012 | Country | ||
---|---|---|---|---|---|
1 | Yingli Green Energy | – | China | ||
2 | Trina Solar | +1 | USA | ||
3 | Sharp Solar | +3 | Japan | ||
4 | Canadian Solar | – | Canada | ||
5 | Jinko Solar | +3 | China | ||
6 | ReneSola | +7 | China | ||
7 | First Solar | -2 | China | ||
8 | Hanwha Solarone | +2 | South Korea | ||
9 | Kyocera | +5 | Japan | ||
10 | JA Solar | -3 | China | ||
Sources:[239][240] |
The PV industry has seen drops in module prices since 2008. In late 2011, factory-gate prices for crystalline-silicon photovoltaic modules dropped below the $1.00/W mark. The $1.00/W installed cost, is often regarded in the PV industry as marking the achievement of grid parity for PV. These reductions have taken many stakeholders, including industry analysts, by surprise, and perceptions of current solar power economics often lags behind reality. Some stakeholders still have the perspective that solar PV remains too costly on an unsubsidized basis to compete with conventional generation options. Yet technological advancements, manufacturing process improvements, and industry re-structuring, mean that further price reductions are likely in coming years.[241]
Renewable electricity production, from sources such as wind power and solar power, is sometimes criticized for being variable or intermittent, but is not true for concentrated solar, geothermal and biofuels, that have continuity. In any case, the International Energy Agency has stated that deployment of renewable technologies usually increases the diversity of electricity sources and, through local generation, contributes to the flexibility of the system and its resistance to central shocks.[242]
There have been "not in my back yard" (NIMBY) concerns relating to the visual and other impacts of some wind farms, with local residents sometimes fighting or blocking construction.[243] In the USA, the Massachusetts Cape Wind project was delayed for years partly because of aesthetic concerns. However, residents in other areas have been more positive. According to a town councilor, the overwhelming majority of locals believe that the Ardrossan Wind Farm in Scotland has enhanced the area.[244]
A recent UK Government document states that "projects are generally more likely to succeed if they have broad public support and the consent of local communities. This means giving communities both a say and a stake".[245] In countries such as Germany and Denmark many renewable projects are owned by communities, particularly through cooperative structures, and contribute significantly to overall levels of renewable energy deployment.[246][247]
The market for renewable energy technologies has continued to grow. Climate change concerns and increasing in green jobs, coupled with high oil prices, peak oil, oil wars, oil spills, promotion of electric vehicles and renewable electricity, nuclear disasters and increasing government support, are driving increasing renewable energy legislation, incentives and commercialization.[6] New government spending, regulation and policies helped the industry weather the 2009 economic crisis better than many other sectors.[13][248]
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