Obstacles prevent renewables from keeping pace with rising energy demand

Policy Responses and Obstacles to Renewable Energy

Introduction

The Global Overview of the Renewables Global Status Report highlights the policy responses and obstacles faced in the deployment and use of renewable energy in 2023, particularly in the power sector. The report emphasizes the importance of the Sustainable Development Goals (SDGs) in driving the transition to renewable energy.

Renewable Energy Ambitions and Challenges

The decision made at the 2023 United Nations Climate Change Conference (COP28) to triple renewable energy capacity and double annual energy efficiency improvements by 2030 has increased ambition and momentum for renewables. However, financing remains a major obstacle, especially in developing countries. While renewables are increasing their share in the overall energy mix, they are not replacing coal, oil, and gas at the required pace due to rising energy demand, higher costs in developing countries, and bottlenecks in permitting and infrastructure.

REN21’s Role and Global Overview

REN21 has been monitoring renewable energy targets, policies, and progress since 2005. The Global Overview is the first module in a series released by REN21 to provide a comprehensive understanding of the energy system in relation to global challenges such as climate change and economic development.

Importance of Sustainable Development Goals

Rana Adib, the Executive Director of REN21, emphasizes the urgency of fully deploying the economic opportunities provided by renewables to build resilient and inclusive societies. Adib also highlights the need for rapid gains in energy efficiency to maximize the use of consumed energy. The report stresses the importance of SDGs in addressing the climate crisis and driving the energy transition.

Renewable Energy Growth and Energy Demand

Between 2012 and 2022, renewable energy use increased by 58%, but overall energy demand grew by only 16%. The majority of the increase in energy demand was met by coal, oil, and fossil gas, which accounted for around 65% of energy consumption growth during this period.

Policy Responses and Renewable Energy Investments

Policy responses aimed at curbing energy insecurity and inflation have been effective in reshaping the renewable energy landscape and boosting investments in renewables. Initiatives such as the U.S. Inflation Reduction Act and RePowerEU plan have diversified supply chains and reduced reliance on a few manufacturing countries. However, the report highlights the need for a complete system-wide shift to renewable energy and emphasizes the importance of finance as a foundational ingredient for success.

Developing Countries’ Efforts and Financial Challenges

Developing countries are stepping up their efforts in renewable energy. For example, the Latin America and Caribbean Renewables Hub has increased its 2030 target for the share of renewables in total electricity generation. However, the global financial landscape puts low-income countries at a significant disadvantage, with higher costs of capital for renewable energy projects compared to high-income countries. This exacerbates inequality and hinders the potential benefits of renewables for economic and industrial development.

Bottlenecks in Renewable Energy Projects

The report highlights major bottlenecks in the development of renewable energy projects globally. Inadequate grid infrastructure, insufficient financing, and permitting delays have resulted in an estimated 3,000 GW of underdeveloped renewable energy projects as of 2023. These bottlenecks pose a risk to the energy transition and need to be addressed.

Hydropower and its Challenges

The report provides insights into the global hydropower sector. Global installed hydropower capacity reached 1,220 GW in 2022, with China leading in installed capacity. However, extreme drought led to a 19% drop in European hydropower production in 2022. The report emphasizes the crucial role of hydropower in load following, grid support, and caseload electricity.

REN21’s Role as a Knowledge Broker

REN21 is recognized globally as a neutral data and knowledge broker. The organization brings together renewable energy actors from various sectors to promote sustainable energy transition.

SDGs, Targets, and Indicators

1. SDG 7: Affordable and Clean Energy

   • Target 7.1: By 2030, ensure universal access to affordable, reliable, and modern energy services.
   • Target 7.2: By 2030, increase substantially the share of renewable energy in the global energy mix.
   • Indicator: Renewable energy capacity and its share in the global energy mix.

2. SDG 13: Climate Action

   • Target 13.2: Integrate climate change measures into national policies, strategies, and planning.
   • Indicator: Adoption and implementation of national policies and strategies to promote renewable energy and energy efficiency.

3. SDG 9: Industry, Innovation, and Infrastructure

   • Target 9.4: Upgrade infrastructure and retrofit industries to make them sustainable.
   • Indicator: Investment in renewable energy infrastructure and projects.

4. SDG 10: Reduced Inequalities

   • Target 10.2: By 2030, empower and promote the social, economic, and political inclusion of all.
   • Indicator: Reduction in the cost of capital for renewable energy projects in low-income countries.

Table: SDGs, Targets, and Indicators

Analysis

The issues highlighted in the article are connected to several Sustainable Development Goals (SDGs). The SDGs addressed in the article include:

1. SDG 7: Affordable and Clean Energy
2. SDG 13: Climate Action
3. SDG 9: Industry, Innovation, and Infrastructure
4. SDG 10: Reduced Inequalities

Based on the content of the article, specific targets under these SDGs can be identified:

• Target 7.1: By 2030, ensure universal access to affordable, reliable, and modern energy services.
• Target 7.2: By 2030, increase substantially the share of renewable energy in the global energy mix.
• Target 13.2: Integrate climate change measures into national policies, strategies, and planning.
• Target 9.4: Upgrade infrastructure and retrofit industries to make them sustainable.
• Target 10.2: By 2030, empower and promote the social, economic, and political inclusion of all.

The article also mentions or implies indicators that can be used to measure progress towards the identified targets:

• Renewable energy capacity and its share in the global energy mix.
• Adoption and implementation of national policies and strategies to promote renewable energy and energy efficiency.
• Investment in renewable energy infrastructure and projects.
• Reduction in the cost of capital for renewable energy projects in low-income countries.

Overall, the article highlights the challenges and opportunities in achieving affordable and clean energy, integrating climate change measures, upgrading infrastructure, and reducing inequalities through renewable energy and sustainable development.

Behold! This splendid article springs forth from the wellspring of knowledge, shaped by a wondrous proprietary AI technology that delved into a vast ocean of data, illuminating the path towards the Sustainable Development Goals. Remember that all rights are reserved by SDG Investors LLC, empowering us to champion progress together.

Source: hydroreview.com

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