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The Future of Sustainable Energy

26 June, 2021

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Building a sustainable energy future calls for leaps forward in both technology and policy leadership. State governments, major corporations and nations around the world have pledged to address the worsening climate crisis by transitioning to 100% renewable energy over the next few decades. Turning those statements of intention into a reality means undertaking unprecedented efforts and collaboration between disciplines ranging from environmental science to economics.

There are highly promising opportunities for green initiatives that could deliver a better future. However, making a lasting difference will require both new technology and experts who can help governments and organizations transition to more sustainable practices. These leaders will be needed to source renewables efficiently and create environmentally friendly policies, as well as educate consumers and policymakers. To maximize their impact, they must make decisions informed by the most advanced research in clean energy technology, economics, and finance.

Current Trends in Sustainability

The imperative to adopt renewable power solutions on a worldwide scale continues to grow even more urgent as the global average surface temperature hits historic highs and amplifies the danger from extreme weather events . In many regions, the average temperature has already increased by 1.5 degrees , and experts predict that additional warming could drive further heatwaves, droughts, severe hurricanes, wildfires, sea level rises, and even mass extinctions.

In addition, physicians warn that failure to respond to this dire situation could unleash novel diseases : Dr. Rexford Ahima and Dr. Arturo Casadevall of the Johns Hopkins University School of Medicine contributed to an article in the Journal of Clinical Investigation that explained how climate change could affect the human body’s ability to regulate its own temperature while bringing about infectious microbes that adapt to the warmer conditions.

World leaders have accepted that greenhouse gas emissions are a serious problem that must be addressed. Since the Paris Agreement was first adopted in December 2015, 197 nations have signed on to its framework for combating climate change and preventing the global temperature increase from reaching 2 degrees Celsius over preindustrial levels.

Corporate giants made their own commitments to become carbon neutral by funding offsets to reduce greenhouse gases and gradually transitioning into using 100% renewable energy. Google declared its operations carbon neutral in 2017 and has promised that all data centers and campuses will be carbon-free by 2030. Facebook stated that it would eliminate its carbon footprint in 2020 and expand that commitment to all the organization’s suppliers within 10 years. Amazon ordered 100,000 electric delivery vehicles and has promised that its sprawling logistics operations will arrive at net-zero emissions by 2040.

Despite these promising developments, many experts say that nations and businesses are still not changing fast enough. While carbon neutrality pledges are a step in the right direction, they don’t mean that organizations have actually stopped using fossil fuels . And despite the intentions expressed by Paris Agreement signatories, total annual carbon dioxide emissions reached a record high of 33.5 gigatons in 2018, led by China, the U.S., and India.

“The problem is that what we need to achieve is so daunting and taxes our resources so much that we end up with a situation that’s much, much worse than if we had focused our efforts,” Ferraro said.

Recent Breakthroughs in Renewable Power

An environmentally sustainable infrastructure requires innovations in transportation, industry, and utilities. Fortunately, researchers in the private and public sectors are laying the groundwork for an energy transformation that could make the renewable energy of the future more widely accessible and efficient.

Some of the most promising areas that have seen major developments in recent years include:

Driving Electric Vehicles Forward

The technical capabilities of electric cars are taking great strides, and the popularity of these vehicles is also growing among consumers. At Tesla’s September 22, 2020 Battery Day event, Elon Musk announced the company’s plans for new batteries that can be manufactured at a lower cost while offering greater range and increased power output .

The electric car market has seen continuing expansion in Europe even during the COVID-19 pandemic, thanks in large part to generous government subsidies. Market experts once predicted that it would take until 2025 for electric car prices to reach parity with gasoline-powered vehicles. However, growing sales and new battery technology could greatly speed up that timetable .

Cost-Effective Storage For Renewable Power

One of the biggest hurdles in the way of embracing 100% renewable energy has been the need to adjust supply based on demand. Utilities providers need efficient, cost-effective ways of storing solar and wind power so that electricity is available regardless of weather conditions. Most electricity storage currently takes place in pumped-storage hydropower plants, but these facilities require multiple reservoirs at different elevations.

Pumped thermal electricity storage is an inexpensive solution to get around both the geographic limitations of hydropower and high costs of batteries. This approach, which is currently being tested , uses a pump to convert electricity into heat so it can be stored in a material like gravel, water, or molten salts and kept in an insulated tank. A heat engine converts the heat back into electricity as necessary to meet demand.

Unlocking the Potential of Microgrids

Microgrids are another area of research that could prove invaluable to the future of power. These systems can operate autonomously from a traditional electrical grid, delivering electricity to homes and business even when there’s an outage. By using this approach with power sources like solar, wind, or biomass, microgrids can make renewable energy transmission more efficient.

Researchers in public policy and engineering are exploring how microgrids could serve to bring clean electricity to remote, rural areas . One early effort in the Netherlands found that communities could become 90% energy self-sufficient , and solar-powered microgrids have now also been employed in Indian villages. This technology has enormous potential to change the way we access electricity, but lowering costs is an essential step to bring about wider adoption and encourage residents to use the power for purposes beyond basic lighting and cooling.

Advancing the Future of Sustainable Energy

There’s still monumental work to be done in developing the next generation of renewable energy solutions as well as the policy framework to eliminate greenhouse gases from our atmosphere. An analysis from the International Energy Agency found that the technologies currently on the market can only get the world halfway to the reductions needed for net-zero emissions by 2050.

To make it the rest of the way, researchers and policymakers must still explore possibilities such as:

• Devise and implement large-scale carbon capture systems that store and use carbon dioxide without polluting the atmosphere
• Establish low-carbon electricity as the primary power source for everyday applications like powering vehicles and heat in buildings
• Grow the use of bioenergy harnessed from plants and algae for electricity, heat, transportation, and manufacturing
• Implement zero-emission hydrogen fuel cells as a way to power transportation and utilities

However, even revolutionary technology will not do the job alone. Ambitious goals for renewable energy solutions and long-term cuts in emissions also demand enhanced international cooperation, especially among the biggest polluters. That’s why Jonas Nahm of the Johns Hopkins School of Advanced International Studies has focused much of his research on China’s sustainable energy efforts. He has also argued that the international community should recognize China’s pivotal role in any long-term plans for fighting climate change.

As both the leading emitter of carbon dioxide and the No. 1 producer of wind and solar energy, China is uniquely positioned to determine the future of sustainability initiatives. According to Nahm, the key to making collaboration with China work is understanding the complexities of the Chinese political and economic dynamics. Because of conflicting interests on the national and local levels, the world’s most populous nation continues to power its industries with coal even while President Xi Jinping advocates for fully embracing green alternatives.

China’s fraught position demonstrates that economics and diplomacy could prove to be just as important as technical ingenuity in creating a better future. International cooperation must guide a wide-ranging economic transformation that involves countries and organizations increasing their capacity for producing and storing renewable energy.

It will take strategic thinking and massive investment to realize a vision of a world where utilities produce 100% renewable power while rows of fully electric cars travel on smart highways. To meet the challenge of our generation, it’s more crucial than ever to develop leaders who understand how to apply the latest research to inform policy and who can take charge of globe-spanning sustainable energy initiatives .

About the MA in Sustainable Energy (online) Program at Johns Hopkins SAIS

Created by Johns Hopkins University School of Advanced International Studies faculty with input from industry experts and employers, the Master of Arts in Sustainable Energy (online) program is tailored for the demands of a rapidly evolving sector. As a top-11 global university, Johns Hopkins is uniquely positioned to equip graduates with the skills they need to confront global challenges in the transition to renewable energy.

The MA in Sustainable Energy curriculum is designed to build expertise in finance, economics, and policy. Courses from our faculty of highly experienced researchers and practitioners prepare graduates to excel in professional environments including government agencies, utility companies, energy trade organizations, global energy governance organizations, and more. Students in the Johns Hopkins SAIS benefit from industry connections, an engaged network of more than 230,000 alumni, and high-touch career services.

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November 1, 2009

12 min read

A Plan to Power 100 Percent of the Planet with Renewables

Wind, water and solar technologies can provide 100 percent of the world's energy, eliminating all fossil fuels. Here's how

By Mark Z. Jacobson & Mark A. Delucchi

In December leaders from around the world will meet in Copenhagen to try to agree on cutting back greenhouse gas emissions for decades to come. The most effective step to implement that goal would be a massive shift away from fossil fuels to clean, renewable energy sources. If leaders can have confidence that such a transformation is possible, they might commit to an historic agreement. We think they can. A year ago former vice president Al Gore threw down a gauntlet: to repower America with 100 percent carbon-free electricity within 10 years. As the two of us started to evaluate the feasibility of such a change, we took on an even larger challenge: to determine how 100 percent of the world’s energy, for all purposes, could be supplied by wind, water and solar resources, by as early as 2030. Our plan is presented here.

Scientists have been building to this moment for at least a decade, analyzing various pieces of the challenge. Most recently, a 2009 Stanford University study ranked energy systems according to their impacts on global warming, pollution, water supply, land use, wildlife and other concerns. The very best options were wind, solar, geothermal, tidal and hydroelectric power—all of which are driven by wind, water or sunlight (referred to as WWS). Nuclear power, coal with carbon capture, and ethanol were all poorer options, as were oil and natural gas. The study also found that battery-electric vehicles and hydrogen fuel-cell vehicles recharged by WWS options would largely eliminate pollution from the transportation sector.

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Our plan calls for millions of wind turbines, water machines and solar installations. The numbers are large, but the scale is not an insurmountable hurdle; society has achieved massive transformations before. During World War II, the U.S. retooled automobile factories to produce 300,000 aircraft, and other countries produced 486,000 more. In 1956 the U.S. began building the Interstate Highway System, which after 35 years extended for 47,000 miles, changing commerce and society.

Is it feasible to transform the world’s energy systems? Could it be accomplished in two decades? The answers depend on the technologies chosen, the availability of critical materials, and economic and political factors.

Clean Technologies Only Renewable energy comes from enticing sources: wind, which also produces waves; water, which includes hydroelectric, tidal and geothermal energy (water heated by hot underground rock); and sun, which includes photovoltaics and solar power plants that focus sunlight to heat a fluid that drives a turbine to generate electricity. Our plan includes only technologies that work or are close to working today on a large scale, rather than those that may exist 20 or 30 years from now.

To ensure that our system remains clean, we consider only technologies that have near-zero emissions of greenhouse gases and air pollutants over their entire life cycle, including construction, operation and decommissioning. For example, when burned in vehicles, even the most ecologically acceptable sources of ethanol create air pollution that will cause the same mortality level as when gasoline is burned. Nuclear power results in up to 25 times more carbon emissions than wind energy, when reactor construction and uranium refining and transport are considered. Carbon capture and sequestration technology can reduce carbon dioxide emissions from coal-fired power plants but will increase air pollutants and will extend all the other deleterious effects of coal mining, transport and processing, because more coal must be burned to power the capture and storage steps. Similarly, we consider only technologies that do not present significant waste disposal or terrorism risks.

In our plan, WWS will supply electric power for heating and transportation—industries that will have to revamp if the world has any hope of slowing climate change. We have assumed that most fossil-fuel heating (as well as ovens and stoves) can be replaced by electric systems and that most fossil-fuel transportation can be replaced by battery and fuel-cell vehicles. Hydrogen, produced by using WWS electricity to split water (electrolysis), would power fuel cells and be burned in airplanes and by industry. 

Plenty of Supply Today the maximum power consumed worldwide at any given moment is about 12.5 trillion watts (terawatts, or TW), according to the U.S. Energy Information Administration. The agency projects that in 2030 the world will require 16.9 TW of power as global population and living standards rise, with about 2.8 TW in the U.S. The mix of sources is similar to today’s, heavily dependent on fossil fuels. If, however, the planet were powered entirely by WWS, with no fossil-fuel or biomass combustion, an intriguing savings would occur. Global power demand would be only 11.5 TW, and U.S. demand would be 1.8 TW. That decline occurs because, in most cases, electrification is a more efficient way to use energy. For example, only 17 to 20 percent of the energy in gasoline is used to move a vehicle (the rest is wasted as heat), whereas 75 to 86 percent of the electricity delivered to an electric vehicle goes into motion.

Even if demand did rise to 16.9 TW, WWS sources could provide far more power. Detailed studies by us and others indicate that energy from the wind, worldwide, is about 1,700 TW. Solar, alone, offers 6,500 TW. Of course, wind and sun out in the open seas, over high mountains and across protected regions would not be available. If we subtract these and low-wind areas not likely to be developed, we are still left with 40 to 85 TW for wind and 580 TW for solar, each far beyond future human demand. Yet currently we generate only 0.02 TW of wind power and 0.008 TW of solar. These sources hold an incredible amount of untapped potential.

The other WWS technologies will help create a flexible range of options. Although all the sources can expand greatly, for practical reasons, wave power can be extracted only near coastal areas. Many geothermal sources are too deep to be tapped economically. And even though hydroelectric power now exceeds all other WWS sources, most of the suitable large reservoirs are already in use.

The Plan: Power Plants Required Clearly, enough renewable energy exists. How, then, would we transition to a new infrastructure to provide the world with 11.5 TW? We have chosen a mix of technologies emphasizing wind and solar, with about 9 percent of demand met by mature water-related methods. (Other combinations of wind and solar could be as successful.)

Wind supplies 51 percent of the demand, provided by 3.8 million large wind turbines (each rated at five megawatts) worldwide. Although that quantity may sound enormous, it is interesting to note that the world manufactures 73 million cars and light trucks every year . Another 40 percent of the power comes from photovoltaics and concentrated solar plants, with about 30 percent of the photovoltaic output from rooftop panels on homes and commercial buildings. About 89,000 photovoltaic and concentrated solar power plants, averaging 300 megawatts apiece, would be needed. Our mix also includes 900 hydroelectric stations worldwide, 70 percent of which are already in place.

Only about 0.8 percent of the wind base is installed today. The worldwide footprint of the 3.8 million turbines would be less than 50 square kilometers (smaller than Manhattan). When the needed spacing between them is figured, they would occupy about 1 percent of the earth’s land, but the empty space among turbines could be used for agriculture or ranching or as open land or ocean. The nonrooftop photovoltaics and concentrated solar plants would occupy about 0.33 percent of the planet’s land. Building such an extensive infrastructure will take time. But so did the current power plant network. And remember that if we stick with fossil fuels, demand by 2030 will rise to 16.9 TW, requiring about 13,000 large new coal plants, which themselves would occupy a lot more land, as would the mining to supply them.

The Materials Hurdle The scale of the WWS infrastructure is not a barrier. But a few materials needed to build it could be scarce or subject to price manipulation.

Enough concrete and steel exist for the millions of wind turbines, and both those commodities are fully recyclable. The most problematic materials may be rare-earth metals such as neodymium used in turbine gearboxes. Although the metals are not in short supply, the low-cost sources are concentrated in China, so countries such as the U.S. could be trading dependence on Middle Eastern oil for dependence on Far Eastern metals. Manufacturers are moving toward gearless turbines, however, so that limitation may become moot.

Photovoltaic cells rely on amorphous or crystalline silicon, cadmium telluride, or copper indium selenide and sulfide. Limited supplies of tellurium and indium could reduce the prospects for some types of thin-film solar cells, though not for all; the other types might be able to take up the slack. Large-scale production could be restricted by the silver that cells require, but finding ways to reduce the silver content could tackle that hurdle. Recycling parts from old cells could ameliorate material difficulties as well.

Three components could pose challenges for building millions of electric vehicles: rare-earth metals for electric motors, lithium for lithium-ion batteries and platinum for fuel cells. More than half the world’s lithium reserves lie in Bolivia and Chile. That concentration, combined with rapidly growing demand, could raise prices significantly. More problematic is the claim by Meridian International Research that not enough economically recoverable lithium exists to build anywhere near the number of batteries needed in a global electric-vehicle economy. Recycling could change the equation, but the economics of recycling depend in part on whether batteries are made with easy recyclability in mind, an issue the industry is aware of. The long-term use of platinum also depends on recycling; current available reserves would sustain annual production of 20 million fuel-cell vehicles, along with existing industrial uses, for fewer than 100 years.

Smart Mix for Reliability A new infrastructure must provide energy on demand at least as reliably as the existing infrastructure. WWS technologies generally suffer less downtime than traditional sources. The average U.S. coal plant is offline 12.5 percent of the year for scheduled and unscheduled maintenance. Modern wind turbines have a down time of less than 2 percent on land and less than 5 percent at sea. Photovoltaic systems are also at less than 2 percent. Moreover, when an individual wind, solar or wave device is down, only a small fraction of production is affected; when a coal, nuclear or natural gas plant goes offline, a large chunk of generation is lost.

The main WWS challenge is that the wind does not always blow and the sun does not always shine in a given location. Intermittency problems can be mitigated by a smart balance of sources, such as generating a base supply from steady geothermal or tidal power, relying on wind at night when it is often plentiful, using solar by day and turning to a reliable source such as hydroelectric that can be turned on and off quickly to smooth out supply or meet peak demand. For example, interconnecting wind farms that are only 100 to 200 miles apart can compensate for hours of zero power at any one farm should the wind not be blowing there. Also helpful is interconnecting geographically dispersed sources so they can back up one another, installing smart electric meters in homes that automatically recharge electric vehicles when demand is low and building facilities that store power for later use.

Because the wind often blows during stormy conditions when the sun does not shine and the sun often shines on calm days with little wind, combining wind and solar can go a long way toward meeting demand, especially when geothermal provides a steady base and hydroelectric can be called on to fill in the gaps.

As Cheap as Coal The mix of WWS sources in our plan can reliably supply the residential, commercial, industrial and transportation sectors. The logical next question is whether the power would be affordable. For each technology, we calculated how much it would cost a producer to generate power and transmit it across the grid. We included the annualized cost of capital, land, operations, maintenance, energy storage to help offset intermittent supply, and transmission. Today the cost of wind, geothermal and hydroelectric are all less than seven cents a kilowatt-hour (¢/kWh); wave and solar are higher. But by 2020 and beyond wind, wave and hydro are expected to be 4¢/kWh or less.

For comparison, the average cost in the U.S. in 2007 of conventional power generation and transmission was about 7¢/kWh, and it is projected to be 8¢/kWh in 2020. Power from wind turbines, for example, already costs about the same or less than it does from a new coal or natural gas plant, and in the future wind power is expected to be the least costly of all options. The competitive cost of wind has made it the second-largest source of new electric power generation in the U.S. for the past three years, behind natural gas and ahead of coal.

Solar power is relatively expensive now but should be competitive as early as 2020. A careful analysis by Vasilis Fthenakis of Brookhaven National Laboratory indicates that within 10 years, photovoltaic system costs could drop to about 10¢/kWh, including long-distance transmission and the cost of compressed-air storage of power for use at night. The same analysis estimates that concentrated solar power systems with enough thermal storage to generate electricity 24 hours a day in spring, summer and fall could deliver electricity at 10¢/kWh or less.

Transportation in a WWS world will be driven by batteries or fuel cells, so we should compare the economics of these electric vehicles with that of internal-combustion-engine vehicles. Detailed analyses by one of us (Delucchi) and Tim Lipman of the University of California, Berkeley, have indicated that mass-produced electric vehicles with advanced lithium-ion or nickel metal-hydride batteries could have a full lifetime cost per mile (including battery replacements) that is comparable with that of a gasoline vehicle, when gasoline sells for more than $2 a gallon.

When the so-called externality costs (the monetary value of damages to human health, the environment and climate) of fossil-fuel generation are taken into account, WWS technologies become even more cost-competitive.

Overall construction cost for a WWS system might be on the order of $100 trillion worldwide, over 20 years, not including transmission. But this is not money handed out by governments or consumers. It is investment that is paid back through the sale of electricity and energy. And again, relying on traditional sources would raise output from 12.5 to 16.9 TW, requiring thousands more of those plants, costing roughly $10 trillion, not to mention tens of trillions of dollars more in health, environmental and security costs. The WWS plan gives the world a new, clean, efficient energy system rather than an old, dirty, inefficient one.

Political Will Our analyses strongly suggest that the costs of WWS will become competitive with traditional sources. In the interim, however, certain forms of WWS power will be significantly more costly than fossil power. Some combination of WWS subsidies and carbon taxes would thus be needed for a time. A feed-in tariff (FIT) program to cover the difference between generation cost and wholesale electricity prices is especially effective at scaling-up new technologies. Combining FITs with a so-called declining clock auction, in which the right to sell power to the grid goes to the lowest bidders, provides continuing incentive for WWS developers to lower costs. As that happens, FITs can be phased out. FITs have been implemented in a number of European countries and a few U.S. states and have been quite successful in stimulating solar power in Germany.

Taxing fossil fuels or their use to reflect their environmental damages also makes sense. But at a minimum, existing subsidies for fossil energy, such as tax benefits for exploration and extraction, should be eliminated to level the playing field. Misguided promotion of alternatives that are less desirable than WWS power, such as farm and production subsidies for biofuels, should also be ended, because it delays deployment of cleaner systems. For their part, legislators crafting policy must find ways to resist lobbying by the entrenched energy industries.

Finally, each nation needs to be willing to invest in a robust, long-distance transmission system that can carry large quantities of WWS power from remote regions where it is often greatest—such as the Great Plains for wind and the desert Southwest for solar in the U.S.—to centers of consumption, typically cities. Reducing consumer demand during peak usage periods also requires a smart grid that gives generators and consumers much more control over electricity usage hour by hour.

A large-scale wind, water and solar energy system can reliably supply the world’s needs, significantly benefiting climate, air quality, water quality, ecology and energy security. As we have shown, the obstacles are primarily political, not technical. A combination of feed-in tariffs plus incentives for providers to reduce costs, elimination of fossil subsidies and an intelligently expanded grid could be enough to ensure rapid deployment. Of course, changes in the real-world power and transportation industries will have to overcome sunk investments in existing infrastructure. But with sensible policies, nations could set a goal of generating 25 percent of their new energy supply with WWS sources in 10 to 15 years and almost 100 percent of new supply in 20 to 30 years. With extremely aggressive policies, all existing fossil-fuel capacity could theoretically be retired and replaced in the same period, but with more modest and likely policies full replacement may take 40 to 50 years. Either way, clear leadership is needed, or else nations will keep trying technologies promoted by industries rather than vetted by scientists.

A decade ago it was not clear that a global WWS system would be technically or economically feasible. Having shown that it is, we hope global leaders can figure out how to make WWS power politically feasible as well. They can start by committing to meaningful climate and renewable energy goals now.

Note: This article was originally printed with the title, "A Path to Sustainable Energy by 2030."

Why renewables are the cornerstone of the global energy transition

Renewable energy, energy efficiency and electrification are key to energy transition Image:  Dan Meyers on Unsplash

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Stay up to date:, decarbonizing energy.

Listen to the article

• It's now clear that renewable energy, energy efficiency and electrification must be the drivers of the deep decarbonization we need.
• New analysis from IRENA finds that renewables are now the cheapest form of energy - and capacity is set to rise significantly over the next few decades.

Addressing climate change requires us to decarbonize both energy supply and demand by 2050. The US, Europe and China have committed to net zero or carbon neutrality by mid-century. Others are following suit. This will have a profound effect on the global energy transition, placing electricity as a key vector in decarbonizing the entire energy sector.

The latest insights from IRENA’s World Energy Transitions Outlook were released on 16 March at the Berlin Energy Transitions Dialogue. It provides in-depth analysis of what these effects will look like, starting from the Paris Climate agreement objective of limiting climate change to well below 2˚C and with an effort for 1.5˚C by the end of this century. While several options are being considered for a deep decarbonization, it is clear that renewable energy, energy efficiency and electrification are at the centre of the global energy transition .

Renewable energy and global energy transition

While climate change mitigation is a powerful driver behind the shift away from fossil fuel-based power generation, this is not the only driver. At the same time, renewable power has become the cheapest form of electricity generation and the costs continue to fall thanks to improvements in technology and economies of scale. The share of renewable power continue to rise from year to year, with nearly 30% renewables in the global power mix at present and renewables dominating yearly capacity additions (see Figure 1, below).

New IRENA analysis indicates a continued swift energy transition to renewable power generation worldwide in the coming three decades, with shares of variable (or intermittent) renewables – solar PV and wind – growing especially rapidly. Variable renewables will dominate the world's total power supply by 2050, a major change from today’s situation. Yet experience from around the world shows it is possible to operate power systems with high shares of variable renewables, as witnessed in Germany, Ireland and the UK, amongst others. During 2020, despite the COVID-19 pandemic, the share of renewables (mainly variable) in total electricity generation was 40% in Europe, a more than 4% increase in the share in comparison to 2019. Most notably, the share of other generation sources fell in Europe over the same period between 6% and 16%, as in the case of coal-based generation.

Increasing flexibility to smoothen energy transition

The operation of power systems with a high share of variable renewables requires much higher flexibility. Today, dispatchable fossil plants (that is, plants that can generate electricity on demand) provide that flexibility, but this will change going forward as their role declines. IRENA has identified 30 options for increasing flexibility across four main pillars : hardware, markets and regulations, and operational practices and business models (see figure 2, below). This toolkit of options must be deployed in the context of each power system’s specific characteristics. Especially the demand side offers interesting possibilities, as the electrification trend results in new loads connected to the system -such as electric vehicles, behind-the-meter batteries and heat pumps- which if operated smartly can support grid balancing. This is helped by rapid digitalization of power systems. Time-of-use pricing, aggregators, Demand Side Management are some of the strategies that benefit from digitalization and smart grids continue to expand worldwide. Still many transmission and distribution grids will require expansion and upgrading in order to deal with the new power system realities.

Also, regulations and grid codes need to be adjusted in order to enable to full deployment of the new flexibility options. This is an area that warrants more attention.

Electrification, including buildings, transport and industry, as well as the production of green hydrogen, will play a key role in a net-zero CO2 emissions future.

IRENA analysis suggests that up to a quarter of all electricity will be used for the production of green hydrogen . At the same time, a massive shift will occur towards electrification of road transportation while synfuels produced from clean hydrogen will play an increasing role in aviation and shipping. Whereas better building efficiency will reduce the need for heating and cooling, this is balanced by a shift to electric heat pumps. The analysis suggests that direct electricity use and indirect electricity use for the production of green hydrogen and derived synfuels may account for 60% of total final energy use by 2050, up from around 21% today. As a consequence, electricity demand will grow 3-4 fold from today’s level. This represents a massive shift; the electricity sector will become the central pillar of global energy supply and demand, a much bigger role than it has played in previous decades. Traditional incumbents in the energy sector, such as oil and gas companies, are already eyeing this trend and developing strategies to become electricity market players . It remains to be seen who will become the dominant player in this market in coming decades.

Moving to clean energy is key to combating climate change, yet in the past five years, the energy transition has stagnated.

Energy consumption and production contribute to two-thirds of global emissions, and 81% of the global energy system is still based on fossil fuels, the same percentage as 30 years ago. Plus, improvements in the energy intensity of the global economy (the amount of energy used per unit of economic activity) are slowing. In 2018 energy intensity improved by 1.2%, the slowest rate since 2010.

Effective policies, private-sector action and public-private cooperation are needed to create a more inclusive, sustainable, affordable and secure global energy system.

Benchmarking progress is essential to a successful transition. The World Economic Forum’s Energy Transition Index , which ranks 115 economies on how well they balance energy security and access with environmental sustainability and affordability, shows that the biggest challenge facing energy transition is the lack of readiness among the world’s largest emitters, including US, China, India and Russia. The 10 countries that score the highest in terms of readiness account for only 2.6% of global annual emissions.

To future-proof the global energy system, the Forum’s Centre for Energy & Materials is working on initiatives including Clean Power and Electrification , Energy and Industry Transition Intelligence, Industrial Ecosystems Transformation , and Transition Enablers to encourage and enable innovative energy investments, technologies and solutions.

Additionally, the Mission Possible Partnership (MPP) is working to assemble public and private partners to further the industry transition to set heavy industry and mobility sectors on the pathway towards net-zero emissions. MPP is an initiative created by the World Economic Forum and the Energy Transitions Commission.

Is your organisation interested in working with the World Economic Forum? Find out more here .

Given the growth in electricity demand and the shift to renewable power a massive expansion of clean power generation will be needed and infrastructure planning must be ramped up accordingly. The investment needs are hefty and it is critical to ensure that the infrastructure rollout speed is commensurate with the needs of the energy transition. This will require further streamlining of planning and approval processes.

IRENA continues to work with its 164 member countries to devise and implement renewable energy transition strategies for power sector transformation based on its Innovation Toolbox , Flextool , power systems planning and grid studies.

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Renewable Energy

Renewable energy comes from sources that will not be used up in our lifetimes, such as the sun and wind.

Earth Science, Experiential Learning, Engineering, Geology

Wind Turbines in a Sheep Pasture

Wind turbines use the power of wind to generate energy. This is just one source of renewable energy.

Photograph by Jesus Keller/ Shutterstock

The wind, the sun, and Earth are sources of  renewable energy . These energy sources naturally renew, or replenish themselves.

Wind, sunlight, and the planet have energy that transforms in ways we can see and feel. We can see and feel evidence of the transfer of energy from the sun to Earth in the sunlight shining on the ground and the warmth we feel when sunlight shines on our skin. We can see and feel evidence of the transfer of energy in wind’s ability to pull kites higher into the sky and shake the leaves on trees. We can see and feel evidence of the transfer of energy in the geothermal energy of steam vents and geysers .

People have created different ways to capture the energy from these renewable sources.

Solar Energy

Solar energy can be captured “actively” or “passively.”

Active solar energy uses special technology to capture the sun’s rays. The two main types of equipment are photovoltaic cells (also called PV cells or solar cells) and mirrors that focus sunlight in a specific spot. These active solar technologies use sunlight to generate electricity , which we use to power lights, heating systems, computers, and televisions.

Passive solar energy does not use any equipment. Instead, it gets energy from the way sunlight naturally changes throughout the day. For example, people can build houses so their windows face the path of the sun. This means the house will get more heat from the sun. It will take less energy from other sources to heat the house.

Other examples of passive solar technology are green roofs , cool roofs, and radiant barriers . Green roofs are completely covered with plants. Plants can get rid of pollutants in rainwater and air. They help make the local environment cleaner.

Cool roofs are painted white to better reflect sunlight. Radiant barriers are made of a reflective covering, such as aluminum. They both reflect the sun’s heat instead of absorbing it. All these types of roofs help lower the amount of energy needed to cool the building.

Advantages and Disadvantages There are many advantages to using solar energy. PV cells last for a long time, about 20 years.

However, there are reasons why solar power cannot be used as the only power source in a community. It can be expensive to install PV cells or build a building using passive solar technology.

Sunshine can also be hard to predict. It can be blocked by clouds, and the sun doesn’t shine at night. Different parts of Earth receive different amounts of sunlight based on location, the time of year, and the time of day.

Wind Energy

People have been harnessing the wind’s energy for a long, long time. Five-thousand years ago, ancient Egyptians made boats powered by the wind. In 200 B.C.E., people used windmills to grind grain in the Middle East and pump water in China.

Today, we capture the wind’s energy with wind turbines . A turbine is similar to a windmill; it has a very tall tower with two or three propeller-like blades at the top. These blades are turned by the wind. The blades turn a generator (located inside the tower), which creates electricity.

Groups of wind turbines are known as wind farms . Wind farms can be found near farmland, in narrow mountain passes, and even in the ocean, where there are steadier and stronger winds. Wind turbines anchored in the ocean are called “ offshore wind farms.”

Wind farms create electricity for nearby homes, schools, and other buildings.

Advantages and Disadvantages Wind energy can be very efficient . In places like the Midwest in the United States and along coasts, steady winds can provide cheap, reliable electricity.

Another great advantage of wind power is that it is a “clean” form of energy. Wind turbines do not burn fuel or emit any pollutants into the air.

Wind is not always a steady source of energy, however. Wind speed changes constantly, depending on the time of day, weather , and geographic location. Currently, it cannot be used to provide electricity for all our power needs.

Wind turbines can also be dangerous for bats and birds. These animals cannot always judge how fast the blades are moving and crash into them.

Geothermal Energy

Deep beneath the surface is Earth’s core . The center of Earth is extremely hot—thought to be over 6,000 °C (about 10,800 °F). The heat is constantly moving toward the surface.

We can see some of Earth’s heat when it bubbles to the surface. Geothermal energy can melt underground rocks into magma and cause the magma to bubble to the surface as lava . Geothermal energy can also heat underground sources of water and force it to spew out from the surface. This stream of water is called a geyser.

However, most of Earth’s heat stays underground and makes its way out very, very slowly.

We can access underground geothermal heat in different ways. One way of using geothermal energy is with “geothermal heat pumps.” A pipe of water loops between a building and holes dug deep underground. The water is warmed by the geothermal energy underground and brings the warmth aboveground to the building. Geothermal heat pumps can be used to heat houses, sidewalks, and even parking lots.

Another way to use geothermal energy is with steam. In some areas of the world, there is underground steam that naturally rises to the surface. The steam can be piped straight to a power plant. However, in other parts of the world, the ground is dry. Water must be injected underground to create steam. When the steam comes to the surface, it is used to turn a generator and create electricity.

In Iceland, there are large reservoirs of underground water. Almost 90 percent of people in Iceland use geothermal as an energy source to heat their homes and businesses.

Advantages and Disadvantages An advantage of geothermal energy is that it is clean. It does not require any fuel or emit any harmful pollutants into the air.

Geothermal energy is only avaiable in certain parts of the world. Another disadvantage of using geothermal energy is that in areas of the world where there is only dry heat underground, large quantities of freshwater are used to make steam. There may not be a lot of freshwater. People need water for drinking, cooking, and bathing.

Biomass Energy

Biomass is any material that comes from plants or microorganisms that were recently living. Plants create energy from the sun through photosynthesis . This energy is stored in the plants even after they die.

Trees, branches, scraps of bark, and recycled paper are common sources of biomass energy. Manure, garbage, and crops , such as corn, soy, and sugar cane, can also be used as biomass feedstocks .

We get energy from biomass by burning it. Wood chips, manure, and garbage are dried out and compressed into squares called “briquettes.” These briquettes are so dry that they do not absorb water. They can be stored and burned to create heat or generate electricity.

Biomass can also be converted into biofuel . Biofuels are mixed with regular gasoline and can be used to power cars and trucks. Biofuels release less harmful pollutants than pure gasoline.

Advantages and Disadvantages A major advantage of biomass is that it can be stored and then used when it is needed.

Growing crops for biofuels, however, requires large amounts of land and pesticides . Land could be used for food instead of biofuels. Some pesticides could pollute the air and water.

Biomass energy can also be a nonrenewable energy source. Biomass energy relies on biomass feedstocks—plants that are processed and burned to create electricity. Biomass feedstocks can include crops, such as corn or soy, as well as wood. If people do not replant biomass feedstocks as fast as they use them, biomass energy becomes a non-renewable energy source.

Hydroelectric Energy

Hydroelectric energy is made by flowing water. Most hydroelectric power plants are located on large dams , which control the flow of a river.

Dams block the river and create an artificial lake, or reservoir. A controlled amount of water is forced through tunnels in the dam. As water flows through the tunnels, it turns huge turbines and generates electricity.

Advantages and Disadvantages Hydroelectric energy is fairly inexpensive to harness. Dams do not need to be complex, and the resources to build them are not difficult to obtain. Rivers flow all over the world, so the energy source is available to millions of people.

Hydroelectric energy is also fairly reliable. Engineers control the flow of water through the dam, so the flow does not depend on the weather (the way solar and wind energies do).

However, hydroelectric power plants are damaging to the environment. When a river is dammed, it creates a large lake behind the dam. This lake (sometimes called a reservoir) drowns the original river habitat deep underwater. Sometimes, people build dams that can drown entire towns underwater. The people who live in the town or village must move to a new area.

Hydroelectric power plants don’t work for a very long time: Some can only supply power for 20 or 30 years. Silt , or dirt from a riverbed, builds up behind the dam and slows the flow of water.

Other Renewable Energy Sources

Scientists and engineers are constantly working to harness other renewable energy sources. Three of the most promising are tidal energy , wave energy , and algal (or algae) fuel.

Tidal energy harnesses the power of ocean tides to generate electricity. Some tidal energy projects use the moving tides to turn the blades of a turbine. Other projects use small dams to continually fill reservoirs at high tide and slowly release the water (and turn turbines) at low tide.

Wave energy harnesses waves from the ocean, lakes, or rivers. Some wave energy projects use the same equipment that tidal energy projects do—dams and standing turbines. Other wave energy projects float directly on waves. The water’s constant movement over and through these floating pieces of equipment turns turbines and creates electricity.

Algal fuel is a type of biomass energy that uses the unique chemicals in seaweed to create a clean and renewable biofuel. Algal fuel does not need the acres of cropland that other biofuel feedstocks do.

Renewable Nations

These nations (or groups of nations) produce the most energy using renewable resources. Many of them are also the leading producers of nonrenewable energy: China, European Union, United States, Brazil, and Canada

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Related Resources

• ENVIRONMENT

Renewable energy, explained

Solar, wind, hydroelectric, biomass, and geothermal power can provide energy without the planet-warming effects of fossil fuels.

In any discussion about climate change , renewable energy usually tops the list of changes the world can implement to stave off the worst effects of rising temperatures. That's because renewable energy sources such as solar and wind don't emit carbon dioxide and other greenhouse gases that contribute to global warming .

Clean energy has far more to recommend it than just being "green." The growing sector creates jobs , makes electric grids more resilient, expands energy access in developing countries, and helps lower energy bills. All of those factors have contributed to a renewable energy renaissance in recent years, with wind and solar setting new records for electricity generation .

For the past 150 years or so, humans have relied heavily on coal, oil, and other fossil fuels to power everything from light bulbs to cars to factories. Fossil fuels are embedded in nearly everything we do, and as a result, the greenhouse gases released from the burning of those fuels have reached historically high levels .

As greenhouse gases trap heat in the atmosphere that would otherwise escape into space, average temperatures on the surface are rising . Global warming is one symptom of climate change, the term scientists now prefer to describe the complex shifts affecting our planet’s weather and climate systems. Climate change encompasses not only rising average temperatures but also extreme weather events, shifting wildlife populations and habitats, rising seas , and a range of other impacts .

Of course, renewables—like any source of energy—have their own trade-offs and associated debates. One of them centers on the definition of renewable energy. Strictly speaking, renewable energy is just what you might think: perpetually available, or as the U.S. Energy Information Administration puts it, " virtually inexhaustible ." But "renewable" doesn't necessarily mean sustainable, as opponents of corn-based ethanol or large hydropower dams often argue. It also doesn't encompass other low- or zero-emissions resources that have their own advocates, including energy efficiency and nuclear power.

Types of renewable energy sources

Hydropower: For centuries, people have harnessed the energy of river currents, using dams to control water flow. Hydropower is the world's biggest source of renewable energy by far, with China, Brazil, Canada, the U.S., and Russia the leading hydropower producers . While hydropower is theoretically a clean energy source replenished by rain and snow, it also has several drawbacks.

For Hungry Minds

Large dams can disrupt river ecosystems and surrounding communities , harming wildlife and displacing residents. Hydropower generation is vulnerable to silt buildup, which can compromise capacity and harm equipment. Drought can also cause problems. In the western U.S., carbon dioxide emissions over a 15-year period were 100 megatons higher than they normally would have been, according to a 2018 study , as utilities turned to coal and gas to replace hydropower lost to drought. Even hydropower at full capacity bears its own emissions problems, as decaying organic material in reservoirs releases methane.

Dams aren't the only way to use water for power: Tidal and wave energy projects around the world aim to capture the ocean's natural rhythms. Marine energy projects currently generate an estimated 500 megawatts of power —less than one percent of all renewables—but the potential is far greater. Programs like Scotland’s Saltire Prize have encouraged innovation in this area.

Wind: Harnessing the wind as a source of energy started more than 7,000 years ago . Now, electricity-generating wind turbines are proliferating around the globe, and China, the U.S., and Germany are the leading wind energy producers. From 2001 to 2017 , cumulative wind capacity around the world increased to more than 539,000 megawatts from 23,900 mw—more than 22 fold.

Some people may object to how wind turbines look on the horizon and to how they sound, but wind energy, whose prices are declining , is proving too valuable a resource to deny. While most wind power comes from onshore turbines, offshore projects are appearing too, with the most in the U.K. and Germany. The first U.S. offshore wind farm opened in 2016 in Rhode Island, and other offshore projects are gaining momentum . Another problem with wind turbines is that they’re a danger for birds and bats, killing hundreds of thousands annually , not as many as from glass collisions and other threats like habitat loss and invasive species, but enough that engineers are working on solutions to make them safer for flying wildlife.

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Solar: From home rooftops to utility-scale farms, solar power is reshaping energy markets around the world. In the decade from 2007 and 2017 the world's total installed energy capacity from photovoltaic panels increased a whopping 4,300 percent .

In addition to solar panels, which convert the sun's light to electricity, concentrating solar power (CSP) plants use mirrors to concentrate the sun's heat, deriving thermal energy instead. China, Japan, and the U.S. are leading the solar transformation, but solar still has a long way to go, accounting for around two percent of the total electricity generated in the U.S. in 2017. Solar thermal energy is also being used worldwide for hot water, heating, and cooling.

Biomass: Biomass energy includes biofuels such as ethanol and biodiesel , wood and wood waste, biogas from landfills, and municipal solid waste. Like solar power, biomass is a flexible energy source, able to fuel vehicles, heat buildings, and produce electricity. But biomass can raise thorny issues.

Critics of corn-based ethanol , for example, say it competes with the food market for corn and supports the same harmful agricultural practices that have led to toxic algae blooms and other environmental hazards. Similarly, debates have erupted over whether it's a good idea to ship wood pellets from U.S. forests over to Europe so that it can be burned for electricity. Meanwhile, scientists and companies are working on ways to more efficiently convert corn stover , wastewater sludge , and other biomass sources into energy, aiming to extract value from material that would otherwise go to waste.

Geothermal: Used for thousands of years in some countries for cooking and heating, geothermal energy is derived from the Earth’s internal heat . On a large scale, underground reservoirs of steam and hot water can be tapped through wells that can go a mile deep or more to generate electricity. On a smaller scale, some buildings have geothermal heat pumps that use temperature differences several feet below ground for heating and cooling. Unlike solar and wind energy, geothermal energy is always available, but it has side effects that need to be managed, such as the rotten egg smell that can accompany released hydrogen sulfide.

Ways to boost renewable energy

Cities, states, and federal governments around the world are instituting policies aimed at increasing renewable energy. At least 29 U.S. states have set renewable portfolio standards —policies that mandate a certain percentage of energy from renewable sources, More than 100 cities worldwide now boast at least 70 percent renewable energy, and still others are making commitments to reach 100 percent . Other policies that could encourage renewable energy growth include carbon pricing, fuel economy standards, and building efficiency standards. Corporations are making a difference too, purchasing record amounts of renewable power in 2018.

Wonder whether your state could ever be powered by 100 percent renewables? No matter where you live, scientist Mark Jacobson believes it's possible. That vision is laid out here , and while his analysis is not without critics , it punctuates a reality with which the world must now reckon. Even without climate change, fossil fuels are a finite resource, and if we want our lease on the planet to be renewed, our energy will have to be renewable.

Related Topics

• SUSTAINABILITY
• RENEWABLE ENERGY
• GEOTHERMAL ENERGY
• SOLAR POWER
• HYDROELECTRIC POWER
• CLIMATE CHANGE

Activists fear a new threat to biodiversity—renewable energy

How the Ukraine war is accelerating Germany's renewable energy transition

We took the Great American Road Trip—in electric cars

What’s at stake at COP26—the crucial global climate summit

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• 08 August 2023

Clean energy can fuel the future — and make the world healthier

You have full access to this article via your institution.

China is on track to reach its solar-power target for 2030. Credit: Zhao Yongtao/VCG/Getty

The 2030 targets laid out by the United Nations for the seventh Sustainable Development Goal (SDG 7) are clear enough: provide affordable access to energy; expand use of renewable sources; improve energy efficiency year on year; and enhance international cooperation in support of clean-energy research, development and infrastructure. Meeting those goals, however, will be anything but simple. As seen in many of the editorials in this series examining the SDGs at their halfway stage , the world is falling short.

This is due, at least in part, to the influence of the fossil-fuel industry, which drives the economics and, often, the politics of countries large and small, rich and poor. Rising human prosperity, as measured by economic growth, has long been linked to an abundance of fossil fuels. Many politicians fear that the pursuit of clean-energy sources will compromise that economic development. The latest science clearly counters this view — but the voice of the research community is not being heard in the right places. To meet the targets embodied in SDG 7, that has to change.

There is much to be done. In 2021, some 675 million people worldwide still did not have access to electricity. This is down from 1.1 billion a decade or so ago, but the pace of progress has slowed. On the basis of current trends, 660 million people, many of them in sub-Saharan Africa, will remain without electricity by 2030. And projections indicate that some 1.9 billion people will still be using polluting and inefficient cooking systems fuelled by coal and wood (see go.nature.com/3s8d887 ). This is bad news all round: for health, biodiversity and the climate.

Carbon emissions hit new high: warning from COP27

Achieving the energy-access targets was always going to be a stretch, but progress has been slow elsewhere, too. Take energy efficiency. More energy efficiency means less pollution, and energy efficiency has increased by around 2% annually in the past few years. But meeting the target for 2030 — to double the rate of the 1990–2010 average — would require gains of around 3.4% every year for the rest of this decade.

The picture for renewable energy is similarly mixed. Despite considerable growth in wind and solar power to generate grid electricity, progress in the heat and transport sectors remains sluggish. Renewable energy’s share of total global energy consumption was just 19.1% in 2020, according to the latest UN tracking report, but one-third of that came from burning resources such as wood.

One reason for the slow progress is the continued idea that aggressive clean-energy goals will get in the way of economic development. It’s easier and more profitable for major fossil-fuel producers to simply maintain the status quo. Just last month, ministers from the G20 group of the world’s biggest economies, including the European Union, India, Saudi Arabia and the United States, failed to agree on a plan to phase out fossil fuels and triple the capacity of renewable energy by 2030.

But this is where science has a story to tell. In the past, researchers say, many models indicated that clean energy would be more expensive than that from fossil fuels, potentially pricing the poorest nations out of the market as well as driving up people’s food bills and exacerbating hunger. But the latest research suggests that the picture is more complex. Energy is a linchpin for most of the SDGs, and research that merges climate, energy and the SDGs underscores this 1 . For example, the agriculture and food-transport sectors still depend on fossil fuels, and that generates pollution that kills millions of people each year. Other links are indirect: lack of access to light at night and to online information — as a result of energy poverty — hampers educational attainment and contributes to both long- and short-term inequality.

US aims for electric-car revolution — will it work?

The lesson from research is that it might be easier, not harder, to address these challenges together. In 2021, researcher Gabriela Iacobuţă at the German Institute of Development and Sustainability in Bonn and her colleagues showed that technologies centred on renewable resources and efficiency tend to come with few trade-offs and many benefits, including improved public health and wealth, thanks to a cleaner environment and better jobs 2 . And climate scientist Bjoern Soergel at the Potsdam Institute for Climate Impact Research in Germany and his colleagues found that a coordinated package of climate and development policies could achieve most of the SDGs while limiting global warming to 1.5 °C above pre-industrial levels 3 .

The study assessed 56 indicators across all 17 SDGs. One proposed intervention is an international climate finance mechanism that would levy fees on carbon emissions that would be redistributed through national programmes to reduce poverty. A second focuses on promoting healthy diets — including reducing the consumption of meat, the production of which requires a lot of water, energy and land. This would benefit people on low incomes by lowering both food and energy prices.

The biggest challenge lies in translating these models to the real world. To do so, we need leaders who are not bound by outmoded thinking, are aware of the latest science and can draw on the research to build public support for the necessary energy transition. We require more national and international public institutions that are willing to address problems at the system level. And all of this needs a science community that is willing and able to champion knowledge and evidence.

Nature 620 , 245 (2023)

doi: https://doi.org/10.1038/d41586-023-02510-y

Vohra, K. et al. Environ. Res. 195 , 110754 (2021).

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Iacobuţă, G. I., Höhne, N., van Soest, H. L. & Leemans, R. Sustainability 13 , 10774 (2021).

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Soergel, B. et al. Nature Clim. Change 11 , 656–664 (2021).

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This Is the Future: Essay on Renewable Energy

Today the world population depends on nonrenewable energy resources. With the constantly growing demand for energy, natural gas, coal, and oil get used up and cannot replenish themselves. 

Aside from limited supply, heavy reliance on fossil fuels causes planetary-scale damage. Sea levels are rising. Heat-trapping carbon dioxide increased the warming effect by 45% from 1990 to 2019. The only way to tackle the crisis is to start the transition to renewable energy now. 

What is renewable energy? It is energy that comes from replenishable natural resources like sunlight, wind, thermal energy, moving water, and organic materials. Renewable resources do not run out. They are cost-efficient and renew faster than they are consumed. How does renewable energy save money? It creates new jobs, supports economic growth, and decreases inequitable fossil fuel subsidies. 

At the current rates of production, some fossil fuels will not even last another century. This is why the future depends on reliable and eco-friendly resources. This renewable energy essay examines the types and benefits of renewable energy and its role in creating a sustainable future.

Top 5 Types of Renewable Energy: The Apollo Alliance Rankings

There are many natural resources that can provide people with clean energy. To make a list of the five most booming types of renewable energy on the market today, this energy essay uses data gathered by the Apollo Alliance. It is a project that aims to revolutionize the energy sector of the US with a focus on clean energy. 

The Apollo Alliance unites businesses, community leaders, and environmental experts to support the transition to more sustainable and efficient living. Their expert opinion helped to compile information about the most common and cost-competitive sources of renewable energy. However, if you want to get some more in-depth research, you can entrust it to an essay writer . Here’s a quick overview of renewable energy resources that have a huge potential to substitute fossil fuels. 

Solar Renewable Energy

The most abundant and practically endless resource is solar energy. It can be turned into electricity by photovoltaic systems that convert radiant energy captured from sunlight. Solar farms could generate enough energy for thousands of homes.

An endless supply is the main benefit of solar energy. The rate at which the Earth receives it is 10,000 times greater than people can consume it, as a paper writer points out based on their analysis of research findings. It can substitute fossil fuels and deliver people electricity, hot water, cooling, heat, etc. 

The upfront investment in solar systems is rather expensive. This is one of the primary limitations that prevent businesses and households from switching to this energy source at once. However, the conclusion of solar energy is still favorable. In the long run, it can significantly decrease energy costs. Besides, solar panels are gradually becoming more affordable to manufacture and adopt, even at an individual level. 

Wind Renewable Energy

Another clean energy source is wind. Wind farms use the kinetic energy of wind flow to convert it into electricity. The Appolo Alliance notes that, unlike solar farms, they can’t be placed in any location. To stay cost-competitive, wind farms should operate in windy areas. Although not all countries have the right conditions to use them on a large scale, wind farms might be introduced for some energy diversity. The technical potential for it is still tremendous. 

Wind energy is clean and safe for the environment. It does not pollute the atmosphere with any harmful products compared to nonrenewable energy resources. 

The investment in wind energy is also economically wise. If you examine the cost of this energy resource in an essay on renewable resources, you’ll see that wind farms can deliver electricity at a price lower than nonrenewable resources. Besides, since wind isn’t limited, its cost won’t be influenced by the imbalance of supply and demand.

Geothermal Renewable Energy

Natural renewable resources are all around us, even beneath the ground. Geothermal energy can be produced from the thermal energy from the Earth’s interior. Sometimes heat reaches the surface naturally, for example, in the form of geysers. But it can also be used by geothermal power plants. The Earth’s heat gets captured and converted to steam that turns a turbine. As a result, we get geothermal energy.

This source provides a significant energy supply while having low emissions and no significant footprint on land. A factsheet and essay on renewable resources state that geothermal plants will increase electricity production from 17 billion kWh in 2020 to 49.8 billion kWh in 2050.

However, this method is not without limitations. While writing a renewable resources essay, consider that geothermal energy can be accessed only in certain regions. Geological hotspots are off-limits as they are vulnerable to earthquakes. Yet, the quantity of geothermal resources is likely to grow as technology advances. 

Ocean Renewable Energy

The kinetic and thermal energy of the ocean is a robust resource. Ocean power systems rely on:

• Changes in sea level;
• Wave energy;
• Water surface temperatures;
• The energy released from seawater and freshwater mixing.

Ocean energy is more predictable compared to other resources. As estimated by EPRI, it has the potential to produce 2640 TWh/yr. However, an important point to consider in a renewable energy essay is that the kinetic energy of the ocean varies. Yet, since it is ruled by the moon’s gravity, the resource is plentiful and continues to be attractive for the energy industry. 

Wave energy systems are still developing. The Apollo energy corporation explores many prototypes. It is looking for the most reliable and robust solution that can function in the harsh ocean environment. 

Another limitation of ocean renewable energy is that it may cause disruptions to marine life. Although its emissions are minimal, the system requires large equipment to be installed in the ocean. 

Biomass Renewable Energy

Organic materials like wood and charcoal have been used for heating and lighting for centuries. There are a lot more types of biomass: from trees, cereal straws, and grass to processed waste. All of them can produce bioenergy. 

Biomass can be converted into energy through burning or using methane produced during the natural process of decomposition. In an essay on renewable sources of energy, the opponents of the method point out that biomass energy is associated with carbon dioxide emissions. Yet, the amount of released greenhouse gases is much lower compared to nonrenewable energy use. 

While biomass is a reliable source of energy, it is only suitable for limited applications. If used too extensively, it might lead to disruptions in biodiversity, a negative impact on land use, and deforestation. Still, Apollo energy includes biomass resources that become waste and decompose quickly anyway. These are organic materials like sawdust, chips from sawmills, stems, nut shells, etc. 

What Is the Apollo Alliance?

The Apollo Alliance is a coalition of business leaders, environmental organizations, labor unions, and foundations. They all unite their efforts in a single project to harness clean energy in new, innovative ways. 

Why Apollo? Similarly to President John F. Kennedy’s Apollo Project, Apollo energy is a strong visionary initiative. It is a dare, a challenge. The alliance calls for the integrity of science, research, technology, and the public to revolutionize the energy industry.

The project has a profound message. Apollo energy solutions are not only about the environment or energy. They are about building a new economy. The alliance gives hope to building a secure future for Americans. 

What is the mission of the Apollo Alliance? 

• Achieve energy independence with efficient and limitless resources of renewable energy.
• Pioneer innovation in the energy sector.
• Build education campaigns and communication to inspire new perceptions of energy. 
• Create new jobs.
• Reduce dependence on imported fossil fuels. 
• Build healthier and happier communities. 

The transformation of the industry will lead to planet-scale changes. The Apollo energy corporation can respond to the global environmental crisis and prevent climate change. 

Apollo renewable energy also has the potential to become a catalyst for social change. With more affordable energy and new jobs in the industry, people can bridge the inequality divide and build stronger communities. 

Why Renewable Energy Is Important for the Future

Renewable energy resources have an enormous potential to cover people’s energy needs on a global scale. Unlike fossil fuels, they are available in abundance and generate minimal to no emissions. 

The burning of fossil fuels caused a lot of environmental problems—from carbon dioxide emissions to ocean acidification. Research this issue in more detail with academic assistance from essay writer online . You can use it to write an essay on renewable sources of energy to explain the importance of change and its global impact. 

Despite all the damage people caused to the planet, there’s still hope to mitigate further repercussions. Every renewable energy essay adds to the existing body of knowledge we have today and advances research in the field. Here are the key advantages and disadvantages of alternative energy resources people should keep in mind. 

Advantage of Green Energy

The use of renewable energy resources has a number of benefits for the climate, human well-being, and economy:

• Renewable energy resources have little to no greenhouse gas emissions. Even if we take into account the manufacturing and recycling of the technologies involved, their impact on the environment is significantly lower compared to fossil fuels. 
• Renewable energy promotes self-sufficiency and reduces a country’s dependence on foreign fuel. According to a study, a 1% increase in the use of renewable energy increases economic growth by 0.21%. This gives socio-economic stability.
• Due to a lack of supply of fossil fuels and quick depletion of natural resources, prices for nonrenewable energy keep increasing. In contrast, green energy is limitless and can be produced locally. In the long run, this allows decreasing the cost of energy. 
• Unlike fossil fuels, renewable energy doesn’t emit air pollutants. This positively influences health and quality of life. 
• The emergence of green energy plants creates new jobs. Thus, Apollo energy solutions support the growth of local communities. By 2030, the transition to renewable energy is expected to generate 10.3 million new jobs. 
• Renewable energy allows decentralization of the industry. Communities get their independent sources of energy that are more flexible in terms of distribution. 
• Renewable energy supports equality. It has the potential to make energy more affordable to low-income countries and expand access to energy even in remote and less fortunate neighborhoods. 

Disadvantages of Non-Conventional Energy Sources

No technology is perfect. Renewable energy resources have certain drawbacks too: 

• The production of renewable energy depends on weather conditions. For example, wind farms could be effective only in certain locations where the weather conditions allow it. The weather also makes it so that renewable energy cannot be generated around the clock. 
• The initial cost of renewable energy technology is expensive. Both manufacturing and installation require significant investment. This is another disadvantage of renewable resources. It makes them unaffordable to a lot of businesses and unavailable for widespread individual use. In addition, the return on investment might not be immediate.
• Renewable energy technology takes up a lot of space. It may affect life in the communities where these clean energy farms are installed. They may also cause disruptions to wildlife in the areas. 
• One more limitation a renewable resources essay should consider is the current state of technology. While the potential of renewable energy resources is tremendous, the technology is still in its development phase. Therefore, renewable energy might not substitute fossil fuels overnight. There’s a need for more research, investment, and time to transition to renewable energy completely. Yet, some diversity of energy resources should be introduced as soon as possible. 
• Renewable energy resources have limited emissions, but they are not entirely pollution-free. The manufacturing process of equipment is associated with greenhouse gas emissions while, for example, the lifespan of a wind turbine is only 20 years. 

For high school seniors eyeing a future rich with innovative endeavors in renewable energy or other fields, it's crucial to seek financial support early on. Explore the top 10 scholarships for high school seniors to find the right fit that can propel you into a future where you can contribute to the renewable energy movement and beyond. Through such financial support, the road to making meaningful contributions to a sustainable future becomes a tangible reality.

Renewable energy unlocks the potential for humanity to have clean energy that is available in abundance. It leads us to economic growth, independence, and stability. With green energy, we can also reduce the impact of human activity on the environment and stop climate change before it’s too late. 

So what’s the conclusion of renewable energy? Transitioning to renewable energy resources might be challenging and expensive. However, most experts agree that the advantages of green energy outweigh any drawbacks. Besides, since technology is continuously evolving, we’ll be able to overcome most limitations in no time.

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What is renewable energy?

Renewable energy is energy derived from natural sources that are replenished at a higher rate than they are consumed. Sunlight and wind, for example, are such sources that are constantly being replenished. Renewable energy sources are plentiful and all around us.

Fossil fuels - coal, oil and gas - on the other hand, are non-renewable resources that take hundreds of millions of years to form. Fossil fuels, when burned to produce energy, cause harmful greenhouse gas emissions, such as carbon dioxide.

Generating renewable energy creates far lower emissions than burning fossil fuels. Transitioning from fossil fuels, which currently account for the lion’s share of emissions, to renewable energy is key to addressing the climate crisis.

Renewables are now cheaper in most countries, and generate three times more jobs than fossil fuels.

Here are a few common sources of renewable energy:

SOLAR ENERGY

Solar energy is the most abundant of all energy resources and can even be harnessed in cloudy weather. The rate at which solar energy is intercepted by the Earth is about 10,000 times greater than the rate at which humankind consumes energy.

Solar technologies can deliver heat, cooling, natural lighting, electricity, and fuels for a host of applications. Solar technologies convert sunlight into electrical energy either through photovoltaic panels or through mirrors that concentrate solar radiation.

Although not all countries are equally endowed with solar energy, a significant contribution to the energy mix from direct solar energy is possible for every country.

The cost of manufacturing solar panels has plummeted dramatically in the last decade, making them not only affordable but often the cheapest form of electricity. Solar panels have a lifespan of roughly 30 years , and come in variety of shades depending on the type of material used in manufacturing.

WIND ENERGY

Wind energy harnesses the kinetic energy of moving air by using large wind turbines located on land (onshore) or in sea- or freshwater (offshore). Wind energy has been used for millennia, but onshore and offshore wind energy technologies have evolved over the last few years to maximize the electricity produced - with taller turbines and larger rotor diameters.

Though average wind speeds vary considerably by location, the world’s technical potential for wind energy exceeds global electricity production, and ample potential exists in most regions of the world to enable significant wind energy deployment.

Many parts of the world have strong wind speeds, but the best locations for generating wind power are sometimes remote ones. Offshore wind power offers t remendous potential .

GEOTHERMAL ENERGY

Geothermal energy utilizes the accessible thermal energy from the Earth’s interior. Heat is extracted from geothermal reservoirs using wells or other means.

Reservoirs that are naturally sufficiently hot and permeable are called hydrothermal reservoirs, whereas reservoirs that are sufficiently hot but that are improved with hydraulic stimulation are called enhanced geothermal systems.

Once at the surface, fluids of various temperatures can be used to generate electricity. The technology for electricity generation from hydrothermal reservoirs is mature and reliable, and has been operating for more than 100 years .

Hydropower harnesses the energy of water moving from higher to lower elevations. It can be generated from reservoirs and rivers. Reservoir hydropower plants rely on stored water in a reservoir, while run-of-river hydropower plants harness energy from the available flow of the river.

Hydropower reservoirs often have multiple uses - providing drinking water, water for irrigation, flood and drought control, navigation services, as well as energy supply.

Hydropower currently is the largest source of renewable energy in the electricity sector. It relies on generally stable rainfall patterns, and can be negatively impacted by climate-induced droughts or changes to ecosystems which impact rainfall patterns.

The infrastructure needed to create hydropower can also impact on ecosystems in adverse ways. For this reason, many consider small-scale hydro a more environmentally-friendly option , and especially suitable for communities in remote locations.

OCEAN ENERGY

Ocean energy derives from technologies that use the kinetic and thermal energy of seawater - waves or currents for instance -  to produce electricity or heat.

Ocean energy systems are still at an early stage of development, with a number of prototype wave and tidal current devices being explored. The theoretical potential for ocean energy easily exceeds present human energy requirements.

Bioenergy is produced from a variety of organic materials, called biomass, such as wood, charcoal, dung and other manures for heat and power production, and agricultural crops for liquid biofuels. Most biomass is used in rural areas for cooking, lighting and space heating, generally by poorer populations in developing countries.

Modern biomass systems include dedicated crops or trees, residues from agriculture and forestry, and various organic waste streams.

Energy created by burning biomass creates greenhouse gas emissions, but at lower levels than burning fossil fuels like coal, oil or gas. However, bioenergy should only be used in limited applications, given potential negative environmental impacts related to large-scale increases in forest and bioenergy plantations, and resulting deforestation and land-use change.

For more information on renewable sources of energy, please check out the following websites:

International Renewable Energy Agency | Renewables

International Energy Agency | Renewables

Intergovernmental Panel on Climate Change | Renewable Sources of Energy

UN Environment Programme | Roadmap to a Carbon-Free Future

Sustainable Energy for All | Renewable Energy

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Bright Future for Renewables: Solar Drives Energy Growth in 2024

After a record-breaking year for solar additions to the grid, the EIA predicts solar will continue to be the fastest growing renewable over the next two years.

Last year, solar panels were responsible for over 50% of the annual additions to America's energy generation. There's a sunny forecast for solar this year, too.

Energy generation in the US will grow by 3% in 2024 -- and solar power will be the main source of that expansion.

That's according to the latest report from the Energy Information Administration . The report indicates that, while  solar adoption throughout the United States has been steadily increasing in recent years, 2024 could see us approaching a landmark moment for the solar industry .

"In 2025, we expect generation from solar to exceed the contribution from hydroelectricity for the first time in history," said Joe DeCarolis, administrator of the EIA, in the report's press release .

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Renewable energy has been a focus of federal policy, with assurances being made that solar, wind and hydropower will be made more accessible to all American communities . 

With government support and lower and lower costs, solar and renewables will keep growing over the next two years.

The big picture projection

Renewable energy sources are expected to make up 22% of America's total energy generation capacity by the end of 2024, further increasing to 24% by the end of 2025, according to the EIA. That projection accounts for solar, wind and hydropower.

Those three renewable sources only accounted for 21% of US grid capacity in 2023.

Considering Solar Panels?

Solar energy is the most rapidly growing renewable energy source by far. The EIA projects that solar generation will increase by up to 41%, building on record setting growth in 2023. 

Energy generation from wind will grow 5% and energy generation from hydropower will grow 6% in 2024.

Building on last year's breakneck solar expansion

There was more solar power added to America's grid in 2023 than ever before , thanks in large part to federal incentives for solar installations included within the Inflation Reduction Act .

In 2023, over half of the new energy generating capacity in the US came from solar panels -- marking the first time in history solar eclipsed 50% of yearly additions to the grid.

The solar industry also had to reckon with some big challenges last year.

High interest rates have made financing solar panels untenable for some people, and some of the largest solar markets in America took a big hit last year -- California's solar installation rate suffered from a massive contraction after the state's net metering policy was revised to be much more restrictive.

While the federal government has passed favorable legislation, election results may affect how many solar panels are actually installed in the coming years.

Regardless, experts remain cautiously optimistic about the future of solar.

"If we stay the course with our federal clean energy policies, total solar deployment will quadruple over the next 10 years," said Abigail Ross Hopper , president and CEO of the Solar Energy Industries Association, in the US Solar Market Insight 2023 Year in Review .

How to get rooftop solar for your home

First and foremost, you need to find out if solar is available to you in your living situation.

If you're a renter, you can't install your own solar panel system, but expanding community solar programs across the country are being built to support your needs. Homeowners will need to do a little research to make sure that no HOA rules or historical preservation laws will prevent them from setting up their own solar panels.

Homeowners also need to ensure their roof is sound and a good fit for solar .

Reaching out to multiple solar installers is important; make sure to reach out to at least four or five companies to ensure the cost of your solar system is fair. Check reviews from the Better Business Bureau, Google, Yelp and speak to your neighbors who've installed solar panel systems.

Finally, make sure you're taking advantage of every available federal- and state-level solar incentive to make the most of your investment. The Inflation Reduction Act's 30% residential clean energy credit will stack with any potential state tax credits .

Claiming the federal tax credit is a fairly simple process . The year after your solar installation is completed, fill out and submit IRS Form 5695, Residential Energy Credits when you're filing your taxes. Your credit reduces the amount of taxes you owe.

The Inflation Reduction Act's residential clean energy credit applies to solar battery installation as well, and the energy efficient home improvement credit applies to certain furnaces , heat pumps , insulation and more.

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Article updated on May 13, 2024 at 3:14 AM PDT

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IRENA (2019), Navigating to a renewable future: Solutions for decarbonising shipping, Preliminary findings, International Renewable Energy Agency, Abu Dhabi

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Navigating the way to a renewable future: Solutions to decarbonise shipping

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On average, the shipping sector is responsible for 3% of annual global green-house gas emissions on a CO 2 -equivalent basis. International shipping represents around 9% of the global emissions associated with the transport sector.

This report from the International Renewable Energy Agency (IRENA) explores the impact of maritime shipping on CO 2 emissions, the structure of the shipping sector, and key areas that need to be addressed to reduce the sector’s carbon footprint.

There is no clear-cut path to decarbonisation. Cutting CO 2 emissions in half is therefore likely to require a combination of approaches, including the use of alternative fuels, upgrading of onshore infrastructure, and reducing fuel demand by improving operational performance, the report finds.

The shipping sector is strategically important for global efforts against climate change and could be crucial in the long-term shift to a zero-carbon economy. Large-scale deployment of low-carbon fuel infrastructure for shipping could also help to build the necessary momentum to decarbonise other sectors.

Additional analyses

Decarbonising hard-to-abate sectors with renewables: perspectives for the g7, tripling renewable power by 2030: the role of the g7 in turning targets into action, the energy transition in africa: opportunities for international collaboration with a focus on the g7, public finance for universal energy access, geopolitics of the energy transition: energy security, related content.

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Renewables Jobs Nearly Doubled in Past Decade, Soared to 13.7 Million in 2022

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Investment Needs of USD 35 trillion by 2030 for Successful Energy Transition

• Open access
• Published: 07 January 2020

Renewable energy for sustainable development in India: current status, future prospects, challenges, employment, and investment opportunities

• Charles Rajesh Kumar. J   ORCID: orcid.org/0000-0003-2354-6463 1 &
• M. A. Majid 1  

Energy, Sustainability and Society volume  10 , Article number:  2 ( 2020 ) Cite this article

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The primary objective for deploying renewable energy in India is to advance economic development, improve energy security, improve access to energy, and mitigate climate change. Sustainable development is possible by use of sustainable energy and by ensuring access to affordable, reliable, sustainable, and modern energy for citizens. Strong government support and the increasingly opportune economic situation have pushed India to be one of the top leaders in the world’s most attractive renewable energy markets. The government has designed policies, programs, and a liberal environment to attract foreign investments to ramp up the country in the renewable energy market at a rapid rate. It is anticipated that the renewable energy sector can create a large number of domestic jobs over the following years. This paper aims to present significant achievements, prospects, projections, generation of electricity, as well as challenges and investment and employment opportunities due to the development of renewable energy in India. In this review, we have identified the various obstacles faced by the renewable sector. The recommendations based on the review outcomes will provide useful information for policymakers, innovators, project developers, investors, industries, associated stakeholders and departments, researchers, and scientists.

Introduction

The sources of electricity production such as coal, oil, and natural gas have contributed to one-third of global greenhouse gas emissions. It is essential to raise the standard of living by providing cleaner and more reliable electricity [ 1 ]. India has an increasing energy demand to fulfill the economic development plans that are being implemented. The provision of increasing quanta of energy is a vital pre-requisite for the economic growth of a country [ 2 ]. The National Electricity Plan [NEP] [ 3 ] framed by the Ministry of Power (MoP) has developed a 10-year detailed action plan with the objective to provide electricity across the country, and has prepared a further plan to ensure that power is supplied to the citizens efficiently and at a reasonable cost. According to the World Resource Institute Report 2017 [ 4 , 5 ], India is responsible for nearly 6.65% of total global carbon emissions, ranked fourth next to China (26.83%), the USA (14.36%), and the EU (9.66%). Climate change might also change the ecological balance in the world. Intended Nationally Determined Contributions (INDCs) have been submitted to the United Nations Framework Convention on Climate Change (UNFCCC) and the Paris Agreement. The latter has hoped to achieve the goal of limiting the rise in global temperature to well below 2 °C [ 6 , 7 ]. According to a World Energy Council [ 8 ] prediction, global electricity demand will peak in 2030. India is one of the largest coal consumers in the world and imports costly fossil fuel [ 8 ]. Close to 74% of the energy demand is supplied by coal and oil. According to a report from the Center for monitoring Indian economy, the country imported 171 million tons of coal in 2013–2014, 215 million tons in 2014–2015, 207 million tons in 2015–2016, 195 million tons in 2016–2017, and 213 million tons in 2017–2018 [ 9 ]. Therefore, there is an urgent need to find alternate sources for generating electricity.

In this way, the country will have a rapid and global transition to renewable energy technologies to achieve sustainable growth and avoid catastrophic climate change. Renewable energy sources play a vital role in securing sustainable energy with lower emissions [ 10 ]. It is already accepted that renewable energy technologies might significantly cover the electricity demand and reduce emissions. In recent years, the country has developed a sustainable path for its energy supply. Awareness of saving energy has been promoted among citizens to increase the use of solar, wind, biomass, waste, and hydropower energies. It is evident that clean energy is less harmful and often cheaper. India is aiming to attain 175 GW of renewable energy which would consist of 100 GW from solar energy, 10 GW from bio-power, 60 GW from wind power, and 5 GW from small hydropower plants by the year 2022 [ 11 ]. Investors have promised to achieve more than 270 GW, which is significantly above the ambitious targets. The promises are as follows: 58 GW by foreign companies, 191 GW by private companies, 18 GW by private sectors, and 5 GW by the Indian Railways [ 12 ]. Recent estimates show that in 2047, solar potential will be more than 750 GW and wind potential will be 410 GW [ 13 , 14 ]. To reach the ambitious targets of generating 175 GW of renewable energy by 2022, it is essential that the government creates 330,000 new jobs and livelihood opportunities [ 15 , 16 ].

A mixture of push policies and pull mechanisms, accompanied by particular strategies should promote the development of renewable energy technologies. Advancement in technology, proper regulatory policies [ 17 ], tax deduction, and attempts in efficiency enhancement due to research and development (R&D) [ 18 ] are some of the pathways to conservation of energy and environment that should guarantee that renewable resource bases are used in a cost-effective and quick manner. Hence, strategies to promote investment opportunities in the renewable energy sector along with jobs for the unskilled workers, technicians, and contractors are discussed. This article also manifests technological and financial initiatives [ 19 ], policy and regulatory framework, as well as training and educational initiatives [ 20 , 21 ] launched by the government for the growth and development of renewable energy sources. The development of renewable technology has encountered explicit obstacles, and thus, there is a need to discuss these barriers. Additionally, it is also vital to discover possible solutions to overcome these barriers, and hence, proper recommendations have been suggested for the steady growth of renewable power [ 22 , 23 , 24 ]. Given the enormous potential of renewables in the country, coherent policy measures and an investor-friendly administration might be the key drivers for India to become a global leader in clean and green energy.

Projection of global primary energy consumption

An energy source is a necessary element of socio-economic development. The increasing economic growth of developing nations in the last decades has caused an accelerated increase in energy consumption. This trend is anticipated to grow [ 25 ]. A prediction of future power consumption is essential for the investigation of adequate environmental and economic policies [ 26 ]. Likewise, an outlook to future power consumption helps to determine future investments in renewable energy. Energy supply and security have not only increased the essential issues for the development of human society but also for their global political and economic patterns [ 27 ]. Hence, international comparisons are helpful to identify past, present, and future power consumption.

Table 1 shows the primary energy consumption of the world, based on the BP Energy Outlook 2018 reports. In 2016, India’s overall energy consumption was 724 million tons of oil equivalent (Mtoe) and is expected to rise to 1921 Mtoe by 2040 with an average growth rate of 4.2% per annum. Energy consumption of various major countries comprises commercially traded fuels and modern renewables used to produce power. In 2016, India was the fourth largest energy consumer in the world after China, the USA, and the Organization for economic co-operation and development (OECD) in Europe [ 29 ].

The projected estimation of global energy consumption demonstrates that energy consumption in India is continuously increasing and retains its position even in 2035/2040 [ 28 ]. The increase in India’s energy consumption will push the country’s share of global energy demand to 11% by 2040 from 5% in 2016. Emerging economies such as China, India, or Brazil have experienced a process of rapid industrialization, have increased their share in the global economy, and are exporting enormous volumes of manufactured products to developed countries. This shift of economic activities among nations has also had consequences concerning the country’s energy use [ 30 ].

Projected primary energy consumption in India

The size and growth of a country’s population significantly affects the demand for energy. With 1.368 billion citizens, India is ranked second, of the most populous countries as of January 2019 [ 31 ]. The yearly growth rate is 1.18% and represents almost 17.74% of the world’s population. The country is expected to have more than 1.383 billion, 1.512 billion, 1.605 billion, 1.658 billion people by the end of 2020, 2030, 2040, and 2050, respectively. Each year, India adds a higher number of people to the world than any other nation and the specific population of some of the states in India is equal to the population of many countries.

The growth of India’s energy consumption will be the fastest among all significant economies by 2040, with coal meeting most of this demand followed by renewable energy. Renewables became the second most significant source of domestic power production, overtaking gas and then oil, by 2020. The demand for renewables in India will have a tremendous growth of 256 Mtoe in 2040 from 17 Mtoe in 2016, with an annual increase of 12%, as shown in Table 2 .

Table 3 shows the primary energy consumption of renewables for the BRIC countries (Brazil, Russia, India, and China) from 2016 to 2040. India consumed around 17 Mtoe of renewable energy in 2016, and this will be 256 Mtoe in 2040. It is probable that India’s energy consumption will grow fastest among all major economies by 2040, with coal contributing most in meeting this demand followed by renewables. The percentage share of renewable consumption in 2016 was 2% and is predicted to increase by 13% by 2040.

How renewable energy sources contribute to the energy demand in India

Even though India has achieved a fast and remarkable economic growth, energy is still scarce. Strong economic growth in India is escalating the demand for energy, and more energy sources are required to cover this demand. At the same time, due to the increasing population and environmental deterioration, the country faces the challenge of sustainable development. The gap between demand and supply of power is expected to rise in the future [ 32 ]. Table 4 presents the power supply status of the country from 2009–2010 to 2018–2019 (until October 2018). In 2018, the energy demand was 1,212,134 GWh, and the availability was 1,203,567 GWh, i.e., a deficit of − 0.7% [ 33 ].

According to the Load generation and Balance Report (2016–2017) of the Central Electricity Authority of India (CEA), the electrical energy demand for 2021–2022 is anticipated to be at least 1915 terawatt hours (TWh), with a peak electric demand of 298 GW [ 34 ]. Increasing urbanization and rising income levels are responsible for an increased demand for electrical appliances, i.e., an increased demand for electricity in the residential sector. The increased demand in materials for buildings, transportation, capital goods, and infrastructure is driving the industrial demand for electricity. An increased mechanization and the shift to groundwater irrigation across the country is pushing the pumping and tractor demand in the agriculture sector, and hence the large diesel and electricity demand. The penetration of electric vehicles and the fuel switch to electric and induction cook stoves will drive the electricity demand in the other sectors shown in Table 5 .

According to the International Renewable Energy Agency (IRENA), a quarter of India’s energy demand can be met with renewable energy. The country could potentially increase its share of renewable power generation to over one-third by 2030 [ 35 ].

Table 6 presents the estimated contribution of renewable energy sources to the total energy demand. MoP along with CEA in its draft national electricity plan for 2016 anticipated that with 175 GW of installed capacity of renewable power by 2022, the expected electricity generation would be 327 billion units (BUs), which would contribute to 1611 BU energy requirements. This indicates that 20.3% of the energy requirements would be fulfilled by renewable energy by 2022 and 24.2% by 2027 [ 36 ]. Figure 1 shows the ambitious new target for the share of renewable energy in India’s electricity consumption set by MoP. As per the order of revised RPO (Renewable Purchase Obligations, legal act of June 2018), the country has a target of a 21% share of renewable energy in its total electricity consumption by March 2022. In 2014, the same goal was at 15% and increased to 21% by 2018. It is India’s goal to reach 40% renewable sources by 2030.

Target share of renewable energy in India’s power consumption

Estimated renewable energy potential in India

The estimated potential of wind power in the country during 1995 [ 37 ] was found to be 20,000 MW (20 GW), solar energy was 5 × 10 15 kWh/pa, bioenergy was 17,000 MW, bagasse cogeneration was 8000 MW, and small hydropower was 10,000 MW. For 2006, the renewable potential was estimated as 85,000 MW with wind 4500 MW, solar 35 MW, biomass/bioenergy 25,000 MW, and small hydropower of 15,000 MW [ 38 ]. According to the annual report of the Ministry of New and Renewable Energy (MNRE) for 2017–2018, the estimated potential of wind power was 302.251 GW (at 100-m mast height), of small hydropower 19.749 GW, biomass power 17.536 GW, bagasse cogeneration 5 GW, waste to energy (WTE) 2.554 GW, and solar 748.990 GW. The estimated total renewable potential amounted to 1096.080 GW [ 39 ] assuming 3% wasteland, which is shown in Table 7 . India is a tropical country and receives significant radiation, and hence the solar potential is very high [ 40 , 41 , 42 ].

Gross installed capacity of renewable energy in India

As of June 2018 reports, the country intends to reach 225 GW of renewable power capacity by 2022 exceeding the target of 175 GW pledged during the Paris Agreement. The sector is the fourth most attractive renewable energy market in the world. As in October 2018, India ranked fifth in installed renewable energy capacity [ 43 ].

Gross installed capacity of renewable energy—according to region

Table 8 lists the cumulative installed capacity of both conventional and renewable energy sources. The cumulative installed capacity of renewable sources as on the 31 st of December 2018 was 74081.66 MW. Renewable energy (small hydropower, wind, biomass, WTE, solar) accounted for an approximate 21% share of the cumulative installed power capacity, and the remaining 78.791% originated from other conventional sources (coal, gas diesel, nuclear, and large hydropower) [ 44 ]. The best regions for renewable energy are the southern states that have the highest solar irradiance and wind in the country. When renewable energy alone is considered for analysis, the Southern region covers 49.121% of the cumulative installed renewable capacity, followed by the Western region (29.742%), the Northern region (18.890%), the Eastern region (1.836%), the North-Easter region 0.394%, and the Islands (0.017%). As far as conventional energy is concerned, the Western region with 33.452% ranks first and is followed by the Northern region with 28.484%, the Southern region (24.967%), the Eastern region (11.716%), the Northern-Eastern (1.366%), and the Islands (0.015%).

Gross installed capacity of renewable energy—according to ownership

State government, central government, and private players drive the Indian energy sector. The private sector leads the way in renewable energy investment. Table 9 shows the installed gross renewable energy and conventional energy capacity (percentage)—ownership wise. It is evident from Fig. 2 that 95% of the installed renewable capacity derives from private companies, 2% from the central government, and 3% from the state government. The top private companies in the field of non-conventional energy generation are Tata Power Solar, Suzlon, and ReNew Power. Tata Power Solar System Limited are the most significant integrated solar power players in the country, Suzlon realizes wind energy projects, and ReNew Power Ventures operate with solar and wind power.

Gross renewable energy installed capacity (percentage)—Ownership wise as per the 31.12.2018 [ 43 ]

Gross installed capacity of renewable energy—state wise

Table 10 shows the installed capacity of cumulative renewable energy (state wise), out of the total installed capacity of 74,081.66 MW, where Karnataka ranks first with 12,953.24 MW (17.485%), Tamilnadu second with 11,934.38 MW (16%), Maharashtra third with 9283.78 MW (12.532%), Gujarat fourth with 10.641 MW (10.641%), and Rajasthan fifth with 7573.86 MW (10.224%). These five states cover almost 66.991% of the installed capacity of total renewable. Other prominent states are Andhra Pradesh (9.829%), Madhya Pradesh (5.819%), Telangana (5.137%), and Uttar Pradesh (3.879%). These nine states cover almost 91.655%.

Gross installed capacity of renewable energy—according to source

Under union budget of India 2018–2019, INR 3762 crore (USD 581.09 million), was allotted for grid-interactive renewable power schemes and projects. As per the 31.12.2018, the installed capacity of total renewable power (excluding large hydropower) in the country amounted to 74.08166 GW. Around 9.363 GW of solar energy, 1.766 GW of wind, 0.105 GW of small hydropower (SHP), and biomass power of 8.7 GW capacity were added in 2017–2018. Table 11 shows the installed capacity of renewable energy over the last 10 years until the 31.12.2018. Wind energy continues to dominate the countries renewable energy industry, accounting for over 47% of cumulative installed renewable capacity (35,138.15 MW), followed by solar power of 34% (25,212.26 MW), biomass power/cogeneration of 12% (9075.5 MW), and small hydropower of 6% (4517.45 MW). In the renewable energy country attractiveness index (RECAI) of 2018, India ranked in fourth position. The installed renewable energy production capacity has grown at an accelerated pace over the preceding few years, posting a CAGR of 19.78% between 2014 and 2018 [ 45 ] .

Estimation of the installed capacity of renewable energy

Table 12 gives the share of installed cumulative renewable energy capacity, in comparison with the installed conventional energy capacity. In 2022 and 2032, the installed renewable energy capacity will account for 32% and 35%, respectively [ 46 , 47 ]. The most significant renewable capacity expansion program in the world is being taken up by India. The government is preparing to boost the percentage of clean energy through a tremendous push in renewables, as discussed in the subsequent sections.

Gross electricity generation from renewable energy in India

The overall generation (including the generation from grid-connected renewable sources) in the country has grown exponentially. Between 2014–2015 and 2015–2016, it achieved 1110.458 BU and 1173.603 BU, respectively. The same was recorded with 1241.689 BU and 1306.614 BU during 2015–2016 and 1306.614 BU from 2016–2017 and 2017–2018, respectively. Figure 3 indicates that the annual renewable power production increased faster than the conventional power production. The rise accounted for 6.47% in 2015–2016 and 24.88% in 2017–2018, respectively. Table 13 compares the energy generation from traditional sources with that from renewable sources. Remarkably, the energy generation from conventional sources reached 811.143 BU and from renewable sources 9.860 BU in 2010 compared to 1.206.306 BU and 88.945 BU in 2017, respectively [ 48 ]. It is observed that the price of electricity production using renewable technologies is higher than that for conventional generation technologies, but is likely to fall with increasing experience in the techniques involved [ 49 ].

The annual growth in power generation as per the 30th of November 2018

Gross electricity generation from renewable energy—according to regions

Table 14 shows the gross electricity generation from renewable energy-region wise. It is noted that the highest renewable energy generation derives from the southern region, followed by the western part. As of November 2018, 50.33% of energy generation was obtained from the southern area and 29.37%, 18.05%, 2%, and 0.24% from Western, Northern, North-Eastern Areas, and the Island, respectively.

Gross electricity generation from renewable energy—according to states

Table 15 shows the gross electricity generation from renewable energy—region-wise. It is observed that the highest renewable energy generation was achieved from Karnataka (16.57%), Tamilnadu (15.82%), Andhra Pradesh (11.92%), and Gujarat (10.87%) as per November 2018. While adding four years from 2015–2016 to 2018–2019 Tamilnadu [ 50 ] remains in the first position followed by Karnataka, Maharashtra, Gujarat and Andhra Pradesh.

Gross electricity generation from renewable energy—according to sources

Table 16 shows the gross electricity generation from renewable energy—source-wise. It can be concluded from the table that the wind-based energy generation as per 2017–2018 is most prominent with 51.71%, followed by solar energy (25.40%), Bagasse (11.63%), small hydropower (7.55%), biomass (3.34%), and WTE (0.35%). There has been a constant increase in the generation of all renewable sources from 2014–2015 to date. Wind energy, as always, was the highest contributor to the total renewable power production. The percentage of solar energy produced in the overall renewable power production comes next to wind and is typically reduced during the monsoon months. The definite improvement in wind energy production can be associated with a “good” monsoon. Cyclonic action during these months also facilitates high-speed winds. Monsoon winds play a significant part in the uptick in wind power production, especially in the southern states of the country.

Estimation of gross electricity generation from renewable energy

Table 17 shows an estimation of gross electricity generation from renewable energy based on the 2015 report of the National Institution for Transforming India (NITI Aayog) [ 51 ]. It is predicted that the share of renewable power will be 10.2% by 2022, but renewable power technologies contributed a record of 13.4% to the cumulative power production in India as of the 31st of August 2018. The power ministry report shows that India generated 122.10 TWh and out of the total electricity produced, renewables generated 16.30 TWh as on the 31st of August 2018. According to the India Brand Equity Foundation report, it is anticipated that by the year 2040, around 49% of total electricity will be produced using renewable energy.

Current achievements in renewable energy 2017–2018

India cares for the planet and has taken a groundbreaking journey in renewable energy through the last 4 years [ 52 , 53 ]. A dedicated ministry along with financial and technical institutions have helped India in the promotion of renewable energy and diversification of its energy mix. The country is engaged in expanding the use of clean energy sources and has already undertaken several large-scale sustainable energy projects to ensure a massive growth of green energy.

1. India doubled its renewable power capacity in the last 4 years. The cumulative renewable power capacity in 2013–2014 reached 35,500 MW and rose to 70,000 MW in 2017–2018.

2. India stands in the fourth and sixth position regarding the cumulative installed capacity in the wind and solar sector, respectively. Furthermore, its cumulative installed renewable capacity stands in fifth position globally as of the 31st of December 2018.

3. As said above, the cumulative renewable energy capacity target for 2022 is given as 175 GW. For 2017–2018, the cumulative installed capacity amounted to 70 GW, the capacity under implementation is 15 GW and the tendered capacity was 25 GW. The target, the installed capacity, the capacity under implementation, and the tendered capacity are shown in Fig. 4 .

4. There is tremendous growth in solar power. The cumulative installed solar capacity increased by more than eight times in the last 4 years from 2.630 GW (2013–2014) to 22 GW (2017–2018). As of the 31st of December 2018, the installed capacity amounted to 25.2122 GW.

5. The renewable electricity generated in 2017–2018 was 101839 BUs.

6. The country published competitive bidding guidelines for the production of renewable power. It also discovered the lowest tariff and transparent bidding method and resulted in a notable decrease in per unit cost of renewable energy.

7. In 21 states, there are 41 solar parks with a cumulative capacity of more than 26,144 MW that have already been approved by the MNRE. The Kurnool solar park was set up with 1000 MW; and with 2000 MW the largest solar park of Pavagada (Karnataka) is currently under installation.

8. The target for solar power (ground mounted) for 2018–2019 is given as 10 GW, and solar power (Rooftop) as 1 GW.

9. MNRE doubled the target for solar parks (projects of 500 MW or more) from 20 to 40 GW.

10. The cumulative installed capacity of wind power increased by 1.6 times in the last 4 years. In 2013–2014, it amounted to 21 GW, from 2017 to 2018 it amounted to 34 GW, and as of 31st of December 2018, it reached 35.138 GW. This shows that achievements were completed in wind power use.

11. An offshore wind policy was announced. Thirty-four companies (most significant global and domestic wind power players) competed in the “expression of interest” (EoI) floated on the plan to set up India’s first mega offshore wind farm with a capacity of 1 GW.

12. 682 MW small hydropower projects were installed during the last 4 years along with 600 watermills (mechanical applications) and 132 projects still under development.

13. MNRE is implementing green energy corridors to expand the transmission system. 9400 km of green energy corridors are completed or under implementation. The cost spent on it was INR 10141 crore (101,410 Million INR = 1425.01 USD). Furthermore, the total capacity of 19,000 MVA substations is now planned to be complete by March 2020.

14. MNRE is setting up solar pumps (off-grid application), where 90% of pumps have been set up as of today and between 2014–2015 and 2017–2018. Solar street lights were more than doubled. Solar home lighting systems have been improved by around 1.5 times. More than 2,575,000 solar lamps have been distributed to students. The details are illustrated in Fig. 5 .

15. From 2014–2015 to 2017–2018, more than 2.5 lakh (0.25 million) biogas plants were set up for cooking in rural homes to enable families by providing them access to clean fuel.

16. New policy initiatives revised the tariff policy mandating purchase and generation obligations (RPO and RGO). Four wind and solar inter-state transmission were waived; charges were planned, the RPO trajectory for 2022 and renewable energy policy was finalized.

17. Expressions of interest (EoI) were invited for installing solar photovoltaic manufacturing capacities associated with the guaranteed off-take of 20 GW. EoI indicated 10 GW floating solar energy plants.

18. Policy for the solar-wind hybrid was announced. Tender for setting up 2 GW solar-wind hybrid systems in existing projects was invited.

19. To facilitate R&D in renewable power technology, a National lab policy on testing, standardization, and certification was announced by the MNRE.

20. The Surya Mitra program was conducted to train college graduates in the installation, commissioning, operations, and management of solar panels. The International Solar Alliance (ISA) headquarters in India (Gurgaon) will be a new commencement for solar energy improvement in India.

21. The renewable sector has become considerably more attractive for foreign and domestic investors, and the country expects to attract up to USD 80 billion in the next 4 years from 2018–2019 to 2021–2022.

22. The solar power capacity expanded by more than eight times from 2.63 GW in 2013–2014 to 22 GW in 2017–2018.

23. A bidding for 115 GW renewable energy projects up to March 2020 was announced.

24. The Bureau of Indian Standards (BIS) acting for system/components of solar PV was established.

25. To recognize and encourage innovative ideas in renewable energy sectors, the Government provides prizes and awards. Creative ideas/concepts should lead to prototype development. The Name of the award is “Abhinav Soch-Nayi Sambhawanaye,” which means Innovative ideas—New possibilities.

Renewable energy target, installed capacity, under implementation and tendered [ 52 ]

Off-grid solar applications [ 52 ]

Solar energy

Under the National Solar Mission, the MNRE has updated the objective of grid-connected solar power projects from 20 GW by the year 2021–2022 to 100 GW by the year 2021–2022. In 2008–2009, it reached just 6 MW. The “Made in India” initiative to promote domestic manufacturing supported this great height in solar installation capacity. Currently, India has the fifth highest solar installed capacity worldwide. By the 31st of December 2018, solar energy had achieved 25,212.26 MW against the target of 2022, and a further 22.8 GW of capacity has been tendered out or is under current implementation. MNRE is preparing to bid out the remaining solar energy capacity every year for the periods 2018–2019 and 2019–2020 so that bidding may contribute with 100 GW capacity additions by March 2020. In this way, 2 years for the completion of projects would remain. Tariffs will be determined through the competitive bidding process (reverse e-auction) to bring down tariffs significantly. The lowest solar tariff was identified to be INR 2.44 per kWh in July 2018. In 2010, solar tariffs amounted to INR 18 per kWh. Over 100,000 lakh (10,000 million) acres of land had been classified for several planned solar parks, out of which over 75,000 acres had been obtained. As of November 2018, 47 solar parks of a total capacity of 26,694 MW were established. The aggregate capacity of 4195 MW of solar projects has been commissioned inside various solar parks (floating solar power). Table 18 shows the capacity addition compared to the target. It indicates that capacity addition increased exponentially.

Wind energy

As of the 31st of December 2018, the total installed capacity of India amounted to 35,138.15 MW compared to a target of 60 GW by 2022. India is currently in fourth position in the world for installed capacity of wind power. Moreover, around 9.4 GW capacity has been tendered out or is under current implementation. The MNRE is preparing to bid out for A 10 GW wind energy capacity every year for 2018–2019 and 2019–2020, so that bidding will allow for 60 GW capacity additions by March 2020, giving the remaining two years for the accomplishment of the projects. The gross wind energy potential of the country now reaches 302 GW at a 100 m above-ground level. The tariff administration has been changed from feed-in-tariff (FiT) to the bidding method for capacity addition. On the 8th of December 2017, the ministry published guidelines for a tariff-based competitive bidding rule for the acquisition of energy from grid-connected wind energy projects. The developed transparent process of bidding lowered the tariff for wind power to its lowest level ever. The development of the wind industry has risen in a robust ecosystem ensuring project execution abilities and a manufacturing base. State-of-the-art technologies are now available for the production of wind turbines. All the major global players in wind power have their presence in India. More than 12 different companies manufacture more than 24 various models of wind turbines in India. India exports wind turbines and components to the USA, Europe, Australia, Brazil, and other Asian countries. Around 70–80% of the domestic production has been accomplished with strong domestic manufacturing companies. Table 19 lists the capacity addition compared to the target for the capacity addition. Furthermore, electricity generation from the wind-based capacity has improved, even though there was a slowdown of new capacity in the first half of 2018–2019 and 2017–2018.

The national energy storage mission—2018

The country is working toward a National Energy Storage Mission. A draft of the National Energy Storage Mission was proposed in February 2018 and initiated to develop a comprehensive policy and regulatory framework. During the last 4 years, projects included in R&D worth INR 115.8 million (USD 1.66 million) in the domain of energy storage have been launched, and a corpus of INR 48.2 million (USD 0.7 million) has been issued. India’s energy storage mission will provide an opportunity for globally competitive battery manufacturing. By increasing the battery manufacturing expertise and scaling up its national production capacity, the country can make a substantial economic contribution in this crucial sector. The mission aims to identify the cumulative battery requirements, total market size, imports, and domestic manufacturing. Table 20 presents the economic opportunity from battery manufacturing given by the National Institution for Transforming India, also called NITI Aayog, which provides relevant technical advice to central and state governments while designing strategic and long-term policies and programs for the Indian government.

Small hydropower—3-year action agenda—2017

Hydro projects are classified as large hydro, small hydro (2 to 25 MW), micro-hydro (up to 100 kW), and mini-hydropower (100 kW to 2 MW) projects. Whereas the estimated potential of SHP is 20 GW, the 2022 target for India in SHP is 5 GW. As of the 31st of December 2018, the country has achieved 4.5 GW and this production is constantly increasing. The objective, which was planned to be accomplished through infrastructure project grants and tariff support, was included in the NITI Aayog’s 3-year action agenda (2017–2018 to 2019–2020), which was published on the 1st of August 2017. MNRE is providing central financial assistance (CFA) to set up small/micro hydro projects both in the public and private sector. For the identification of new potential locations, surveys and comprehensive project reports are elaborated, and financial support for the renovation and modernization of old projects is provided. The Ministry has established a dedicated completely automatic supervisory control and data acquisition (SCADA)—based on a hydraulic turbine R&D laboratory at the Alternate Hydro Energy Center (AHEC) at IIT Roorkee. The establishment cost for the lab was INR 40 crore (400 million INR, 95.62 Million USD), and the laboratory will serve as a design and validation facility. It investigates hydro turbines and other hydro-mechanical devices adhering to national and international standards [ 54 , 55 ]. Table 21 shows the target and achievements from 2007–2008 to 2018–2019.

National policy regarding biofuels—2018

Modernization has generated an opportunity for a stable change in the use of bioenergy in India. MNRE amended the current policy for biomass in May 2018. The policy presents CFA for projects using biomass such as agriculture-based industrial residues, wood produced through energy plantations, bagasse, crop residues, wood waste generated from industrial operations, and weeds. Under the policy, CFA will be provided to the projects at the rate of INR 2.5 million (USD 35,477.7) per MW for bagasse cogeneration and INR 5 million (USD 70,955.5) per MW for non-bagasse cogeneration. The MNRE also announced a memorandum in November 2018 considering the continuation of the concessional customs duty certificate (CCDC) to set up projects for the production of energy using non-conventional materials such as bio-waste, agricultural, forestry, poultry litter, agro-industrial, industrial, municipal, and urban wastes. The government recently established the National policy on biofuels in August 2018. The MNRE invited an expression of interest (EOI) to estimate the potential of biomass energy and bagasse cogeneration in the country. A program to encourage the promotion of biomass-based cogeneration in sugar mills and other industries was also launched in May 2018. Table 22 shows how the biomass power target and achievements are expected to reach 10 GW of the target of 2022 before the end of 2019.

The new national biogas and organic manure program (NNBOMP)—2018

The National biogas and manure management programme (NBMMP) was launched in 2012–2013. The primary objective was to provide clean gaseous fuel for cooking, where the remaining slurry was organic bio-manure which is rich in nitrogen, phosphorus, and potassium. Further, 47.5 lakh (4.75 million) cumulative biogas plants were completed in 2014, and increased to 49.8 lakh (4.98 million). During 2017–2018, the target was to establish 1.10 lakh biogas plants (1.10 million), but resulted in 0.15 lakh (0.015 million). In this way, the cost of refilling the gas cylinders with liquefied petroleum gas (LPG) was greatly reduced. Likewise, tons of wood/trees were protected from being axed, as wood is traditionally used as a fuel in rural and semi-urban households. Biogas is a viable alternative to traditional cooking fuels. The scheme generated employment for almost 300 skilled laborers for setting up the biogas plants. By 30th of May 2018, the Ministry had issued guidelines for the implementation of the NNBOMP during the period 2017–2018 to 2019–2020 [ 56 ].

The off-grid and decentralized solar photovoltaic application program—2018

The program deals with the energy demand through the deployment of solar lanterns, solar streetlights, solar home lights, and solar pumps. The plan intended to reach 118 MWp of off-grid PV capacity by 2020. The sanctioning target proposed outlay was 50 MWp by 2017–2018 and 68 MWp by 2019–2020. The total estimated cost amounted to INR 1895 crore (18950 Million INR, 265.547 million USD), and the ministry wanted to support 637 crores (6370 million INR, 89.263 million USD) by its central finance assistance. Solar power plants with a 25 KWp size were promoted in those areas where grid power does not reach households or is not reliable. Public service institutions, schools, panchayats, hostels, as well as police stations will benefit from this scheme. Solar study lamps were also included as a component in the program. Thirty percent of financial assistance was provided to solar power plants. Every student should bear 15% of the lamp cost, and the ministry wanted to support the remaining 85%. As of October 2018, lantern and lamps of more than 40 Lakhs (4 million), home lights of 16.72 lakhs (1.672 million) number, street lights of 6.40 lakhs (0.64 million), solar pumps of 1.96 lakhs (0.196 million), and 187.99 MWp stand-alone devices had been installed [ 57 , 58 ].

Major government initiatives for renewable energy

Technological initiatives.

The Technology Development and Innovation Policy (TDIP) released on the 6th of October 2017 was endeavored to promote research, development, and demonstration (RD&D) in the renewable energy sector [ 59 ]. RD&D intended to evaluate resources, progress in technology, commercialization, and the presentation of renewable energy technologies across the country. It aimed to produce renewable power devices and systems domestically. The evaluation of standards and resources, processes, materials, components, products, services, and sub-systems was carried out through RD&D. A development of the market, efficiency improvements, cost reductions, and a promotion of commercialization (scalability and bankability) were achieved through RD&D. Likewise, the percentage of renewable energy in the total electricity mix made it self-sustainable, industrially competitive, and profitable through RD&D. RD&D also supported technology development and demonstration in wind, solar, wind-solar hybrid, biofuel, biogas, hydrogen fuel cells, and geothermal energies. RD&D supported the R&D units of educational institutions, industries, and non-government organizations (NGOs). Sharing expertise, information, as well as institutional mechanisms for collaboration was realized by use of the technology development program (TDP). The various people involved in this program were policymakers, industrial innovators, associated stakeholders and departments, researchers, and scientists. Renowned R&D centers in India are the National Institute of Solar Energy (NISE), Gurgaon, the National Institute of Bio-Energy (NIBE), Kapurthala, and the National Institute of Wind Energy (NIWE), Chennai. The TDP strategy encouraged the exploration of innovative approaches and possibilities to obtain long-term targets. Likewise, it efficiently supported the transformation of knowledge into technology through a well-established monitoring system for the development of renewable technology that meets the electricity needs of India. The research center of excellence approved the TDI projects, which were funded to strengthen R&D. Funds were provided for conducting training and workshops. The MNRE is now preparing a database of R&D accomplishments in the renewable energy sector.

The Impacting Research Innovation and Technology (IMPRINT) program seeks to develop engineering and technology (prototype/process development) on a national scale. IMPRINT is steered by the Indian Institute of Technologies (IITs) and Indian Institute of science (IISCs). The expansion covers all areas of engineering and technology including renewable technology. The ministry of human resource development (MHRD) finances up to 50% of the total cost of the project. The remaining costs of the project are financed by the ministry (MNRE) via the RD&D program for renewable projects. Currently (2018–2019), five projects are under implementation in the area of solar thermal systems, storage for SPV, biofuel, and hydrogen and fuel cells which are funded by the MNRE (36.9 million INR, 0.518426 Million USD) and IMPRINT. Development of domestic technology and quality control are promoted through lab policies that were published on the 7th of December 2017. Lab policies were implemented to test, standardize, and certify renewable energy products and projects. They supported the improvement of the reliability and quality of the projects. Furthermore, Indian test labs are strengthened in line with international standards and practices through well-established lab policies. From 2015, the MNRE has provided “The New and Renewable Energy Young Scientist’s Award” to researchers/scientists who demonstrate exceptional accomplishments in renewable R&D.

Financial initiatives

One hundred percent financial assistance is granted by the MNRE to the government and NGOs and 50% financial support to the industry. The policy framework was developed to guide the identification of the project, the formulation, monitoring appraisal, approval, and financing. Between 2012 and 2017, a 4467.8 million INR, 62.52 Million USD) support was granted by the MNRE. The MNRE wanted to double the budget for technology development efforts in renewable energy for the current three-year plan period. Table 23 shows that the government is spending more and more for the development of the renewable energy sector. Financial support was provided to R&D projects. Exceptional consideration was given to projects that worked under extreme and hazardous conditions. Furthermore, financial support was applied to organizing awareness programs, demonstrations, training, workshops, surveys, assessment studies, etc. Innovative approaches will be rewarded with cash prizes. The winners will be presented with a support mechanism for transforming their ideas and prototypes into marketable commodities such as start-ups for entrepreneur development. Innovative projects will be financed via start-up support mechanisms, which will include an investment contract with investors. The MNRE provides funds to proposals for investigating policies and performance analyses related to renewable energy.

Technology validation and demonstration projects and other innovative projects with regard to renewables received a financial assistance of 50% of the project cost. The CFA applied to partnerships with industry and private institutions including engineering colleges. Private academic institutions, accredited by a government accreditation body, were also eligible to receive a 50% support. The concerned industries and institutions should meet the remaining 50% expenditure. The MNRE allocated an INR 3762.50 crore (INR 37625 million, 528.634 million USD) for the grid interactive renewable sources and an INR 1036.50 crore (INR 10365 million, 145.629 million USD) for off-grid/distributed and decentralized renewable power for the year 2018–2019 [ 60 ]. The MNRE asked the Reserve Bank of India (RBI), attempting to build renewable power projects under “priority sector lending” (priority lending should be done for renewable energy projects and without any limit) and to eliminate the obstacles in the financing of renewable energy projects. In July 2018, the Ministry of Finance announced that it would impose a 25% safeguard duty on solar panels and modules imported from China and Malaysia for 1 year. The quantum of tax might be reduced to 20% for the next 6 months, and 15% for the following 6 months.

Policy and regulatory framework initiatives

The regulatory interventions for the development of renewable energy sources are (a) tariff determination, (b) defining RPO, (c) promoting grid connectivity, and (d) promoting the expansion of the market.

Tariff policy amendments—2018

On the 30th of May 2018, the MoP released draft amendments to the tariff policy. The objective of these policies was to promote electricity generation from renewables. MoP in consultation with MNRE announced the long-term trajectory for RPO, which is represented in Table 24 . The State Electricity Regulatory Commission (SERC) achieved a favorable and neutral/off-putting effect in the growth of the renewable power sector through their RPO regulations in consultation with the MNRE. On the 25th of May 2018, the MNRE created an RPO compliance cell to reach India’s solar and wind power goals. Due to the absence of implementation of RPO regulations, several states in India did not meet their specified RPO objectives. The cell will operate along with the Central Electricity Regulatory Commission (CERC) and SERCs to obtain monthly statements on RPO compliance. It will also take up non-compliance associated concerns with the relevant officials.

Repowering policy—2016

On the 09th of August 2016, India announced a “repowering policy” for wind energy projects. An about 27 GW turnaround was possible according to the policy. This policy supports the replacing of aging wind turbines with more modern and powerful units (fewer, larger, taller) to raise the level of electricity generation. This policy seeks to create a simplified framework and to promote an optimized use of wind power resources. It is mandatory because the up to the year 2000 installed wind turbines were below 500 kW in sites where high wind potential might be achieved. It will be possible to obtain 3000 MW from the same location once replacements are in place. The policy was initially applied for the one MW installed capacity of wind turbines, and the MNRE will extend the repowering policy to other projects in the future based on experience. Repowering projects were implemented by the respective state nodal agencies/organizations that were involved in wind energy promotion in their states. The policy provided an exception from the Power Purchase Agreement (PPA) for wind farms/turbines undergoing repowering because they could not fulfill the requirements according to the PPA during repowering. The repowering projects may avail accelerated depreciation (AD) benefit or generation-based incentive (GBI) due to the conditions appropriate to new wind energy projects [ 61 ].

The wind-solar hybrid policy—2018

On the 14th of May 2018, the MNRE announced a national wind-solar hybrid policy. This policy supported new projects (large grid-connected wind-solar photovoltaic hybrid systems) and the hybridization of the already available projects. These projects tried to achieve an optimal and efficient use of transmission infrastructure and land. Better grid stability was achieved and the variability in renewable power generation was reduced. The best part of the policy intervention was that which supported the hybridization of existing plants. The tariff-based transparent bidding process was included in the policy. Regulatory authorities should formulate the necessary standards and regulations for hybrid systems. The policy also highlighted a battery storage in hybrid projects for output optimization and variability reduction [ 62 ].

The national offshore wind energy policy—2015

The National Offshore Wind Policy was released in October 2015. On the 19th of June 2018, the MNRE announced a medium-term target of 5 GW by 2022 and a long-term target of 30 GW by 2030. The MNRE called expressions of Interest (EoI) for the first 1 GW of offshore wind (the last date was 08.06.2018). The EoI site is located in Pipavav port at the Gulf of Khambhat at a distance of 23 km facilitating offshore wind (FOWIND) where the consortium deployed light detection and ranging (LiDAR) in November 2017). Pipavav port is situated off the coast of Gujarat. The MNRE had planned to install more such equipment in the states of Tamil Nadu and Gujarat. On the 14 th of December 2018, the MNRE, through the National Institute of Wind Energy (NIWE), called tender for offshore environmental impact assessment studies at intended LIDAR points at the Gulf of Mannar, off the coast of Tamil Nadu for offshore wind measurement. The timeline for initiatives was to firstly add 500 MW by 2022, 2 to 2.5 GW by 2027, and eventually reaching 5 GW between 2028 and 2032. Even though the installation of large wind power turbines in open seas is a challenging task, the government has endeavored to promote this offshore sector. Offshore wind energy would add its contribution to the already existing renewable energy mix for India [ 63 ] .

The feed-in tariff policy—2018

On the 28th of January 2016, the revised tariff policy was notified following the Electricity Act. On the 30th May 2018, the amendment in tariff policy was released. The intentions of this tariff policy are (a) an inexpensive and competitive electricity rate for the consumers; (b) to attract investment and financial viability; (c) to ensure that the perceptions of regulatory risks decrease through predictability, consistency, and transparency of policy measures; (d) development in quality of supply, increased operational efficiency, and improved competition; (e) increase the production of electricity from wind, solar, biomass, and small hydro; (f) peaking reserves that are acceptable in quantity or consistently good in quality or performance of grid operation where variable renewable energy source integration is provided through the promotion of hydroelectric power generation, including pumped storage projects (PSP); (g) to achieve better consumer services through efficient and reliable electricity infrastructure; (h) to supply sufficient and uninterrupted electricity to every level of consumers; and (i) to create adequate capacity, reserves in the production, transmission, and distribution that is sufficient for the reliability of supply of power to customers [ 64 ].

Training and educational initiatives

The MHRD has developed strong renewable energy education and training systems. The National Council for Vocational Training (NCVT) develops course modules, and a Modular Employable Skilling program (MES) in its regular 2-year syllabus to include SPV lighting systems, solar thermal systems, SHP, and provides the certificate for seven trades after the completion of a 2-year course. The seven trades are plumber, fitter, carpenter, welder, machinist, and electrician. The Ministry of Skill Development and Entrepreneurship (MSDE) worked out a national skill development policy in 2015. They provide regular training programs to create various job roles in renewable energy along with the MNRE support through a skill council for green jobs (SCGJ), the National Occupational Standards (NOS), and the Qualification Pack (QP). The SCGJ is promoted by the Confederation of Indian Industry (CII) and the MNRE. The industry partner for the SCGJ is ReNew Power [ 65 , 66 ].

The global status of India in renewable energy

Table 25 shows the RECAI (Renewable Energy Country Attractiveness Index) report of 40 countries. This report is based on the attractiveness of renewable energy investment and deployment opportunities. RECAI is based on macro vitals such as economic stability, investment climate, energy imperatives such as security and supply, clean energy gap, and affordability. It also includes policy enablement such as political stability and support for renewables. Its emphasis lies on project delivery parameters such as energy market access, infrastructure, and distributed generation, finance, cost and availability, and transaction liquidity. Technology potentials such as natural resources, power take-off attractiveness, potential support, technology maturity, and forecast growth are taken into consideration for ranking. India has moved to the fourth position of the RECAI-2018. Indian solar installations (new large-scale and rooftop solar capacities) in the calendar year 2017 increased exponentially with the addition of 9629 MW, whereas in 2016 it was 4313 MW. The warning of solar import tariffs and conflicts between developers and distribution firms are growing investor concerns [ 67 ]. Figure 6 shows the details of the installed capacity of global renewable energy in 2016 and 2017. Globally, 2017 GW renewable energy was installed in 2016, and in 2017, it increased to 2195 GW. Table 26 shows the total capacity addition of top countries until 2017. The country ranked fifth in renewable power capacity (including hydro energy), renewable power capacity (not including hydro energy) in fourth position, concentrating solar thermal power (CSP) and wind power were also in fourth position [ 68 ].

Globally installed capacity of renewable energy in 2017—Global 2018 status report with regard to renewables [ 68 ]

The investment opportunities in renewable energy in India

The investments into renewable energy in India increased by 22% in the first half of 2018 compared to 2017, while the investments in China dropped by 15% during the same period, according to a statement by the Bloomberg New Energy Finance (BNEF), which is shown in Table 27 [ 69 , 70 ]. At this rate, India is expected to overtake China and become the most significant growth market for renewable energy by the end of 2020. The country is eyeing pole position for transformation in renewable energy by reaching 175 GW by 2020. To achieve this target, it is quickly ramping up investments in this sector. The country added more renewable capacity than conventional capacity in 2018 when compared to 2017. India hosted the ISA first official summit on the 11.03.2018 for 121 countries. This will provide a standard platform to work toward the ambitious targets for renewable energy. The summit will emphasize India’s dedication to meet global engagements in a time-bound method. The country is also constructing many sizeable solar power parks comparable to, but larger than, those in China. Half of the earth’s ten biggest solar parks under development are in India.

In 2014, the world largest solar park was the Topaz solar farm in California with a 550 MW facility. In 2015, another operator in California, Solar Star, edged its capacity up to 579 MW. By 2016, India’s Kamuthi Solar Power Project in Tamil Nadu was on top with 648 MW of capacity (set up by the Adani Green Energy, part of the Adani Group, in Tamil Nadu). As of February 2017, the Longyangxia Dam Solar Park in China was the new leader, with 850 MW of capacity [ 71 ]. Currently, there are 600 MW operating units and 1400 MW units under construction. The Shakti Sthala solar park was inaugurated on 01.03.2018 in Pavagada (Karnataka, India) which is expected to become the globe’s most significant solar park when it accomplishes its full potential of 2 GW. Another large solar park with 1.5 GW is scheduled to be built in the Kadappa region [ 72 ]. The progress in solar power is remarkable and demonstrates real clean energy development on the ground.

The Kurnool ultra-mega solar park generated 800 million units (MU) of energy in October 2018 and saved over 700,000 tons of CO 2 . Rainwater was harvested using a reservoir that helps in cleaning solar panels and supplying water. The country is making remarkable progress in solar energy. The Kamuthi solar farm is cleaned each day by a robotic system. As the Indian economy expands, electricity consumption is forecasted to reach 15,280 TWh in 2040. With the government’s intent, green energy objectives, i.e., the renewable sector, grow considerably in an attractive manner with both foreign and domestic investors. It is anticipated to attract investments of up to USD 80 billion in the subsequent 4 years. The government of India has raised its 175 GW target to 225 GW of renewable energy capacity by 2022. The competitive benefit is that the country has sun exposure possible throughout the year and has an enormous hydropower potential. India was also listed fourth in the EY renewable energy country attractive index 2018. Sixty solar cities will be built in India as a section of MNRE’s “Solar cities” program.

In a regular auction, reduction in tariffs cost of the projects are the competitive benefits in the country. India accounts for about 4% of the total global electricity generation capacity and has the fourth highest installed capacity of wind energy and the third highest installed capacity of CSP. The solar installation in India erected during 2015–2016, 2016–2017, 2017–2018, and 2018–2019 was 3.01 GW, 5.52 GW, 9.36 GW, and 6.53 GW, respectively. The country aims to add 8.5 GW during 2019–2020. Due to its advantageous location in the solar belt (400 South to 400 North), the country is one of the largest beneficiaries of solar energy with relatively ample availability. An increase in the installed capacity of solar power is anticipated to exceed the installed capacity of wind energy, approaching 100 GW by 2022 from its current levels of 25.21226 GW as of December 2018. Fast falling prices have made Solar PV the biggest market for new investments. Under the Union Budget 2018–2019, a zero import tax on parts used in manufacturing solar panels was launched to provide an advantage to domestic solar panel companies [ 73 ].

Foreign direct investment (FDI) inflows in the renewable energy sector of India between April 2000 and June 2018 amounted to USD 6.84 billion according to the report of the department of industrial policy and promotion (DIPP). The DIPP was renamed (gazette notification 27.01.2019) the Department for the Promotion of Industry and Internal Trade (DPIIT). It is responsible for the development of domestic trade, retail trade, trader’s welfare including their employees as well as concerns associated with activities in facilitating and supporting business and startups. Since 2014, more than 42 billion USD have been invested in India’s renewable power sector. India reached US$ 7.4 billion in investments in the first half of 2018. Between April 2015 and June 2018, the country received USD 3.2 billion FDI in the renewable sector. The year-wise inflows expanded from USD 776 million in 2015–2016 to USD 783 million in 2016–2017 and USD 1204 million in 2017–2018. Between January to March of 2018, the INR 452 crore (4520 Million INR, 63.3389 million USD) of the FDI had already come in. The country is contributing with financial and promotional incentives that include a capital subsidy, accelerated depreciation (AD), waiver of inter-state transmission charges and losses, viability gap funding (VGF), and FDI up to 100% under the automated track.

The DIPP/DPIIT compiles and manages the data of the FDI equity inflow received in India [ 74 ]. The FDI equity inflow between April 2015 and June 2018 in the renewable sector is illustrated in Fig. 7 . It shows that the 2018–2019 3 months’ FDI equity inflow is half of that of the entire one of 2017–2018. It is evident from the figure that India has well-established FDI equity inflows. The significant FDI investments in the renewable energy sectors are shown in Table 28 . The collaboration between the Asian development bank and Renew Power Ventures private limited with 44.69 million USD ranked first followed by AIRRO Singapore with Diligent power with FDI equity inflow of 44.69 USD million.

The FDI equity inflow received between April 2015 and June 2018 in the renewable energy sector [ 73 ]

Strategies to promote investments

Strategies to promote investments (including FDI) by investors in the renewable sector:

Decrease constraints on FDI; provide open, transparent, and dependable conditions for foreign and domestic firms; and include ease of doing business, access to imports, comparatively flexible labor markets, and safeguard of intellectual property rights.

Establish an investment promotion agency (IPA) that targets suitable foreign investors and connects them as a catalyst with the domestic economy. Assist the IPA to present top-notch infrastructure and immediate access to skilled workers, technicians, engineers, and managers that might be needed to attract such investors. Furthermore, it should involve an after-investment care, recognizing the demonstration effects from satisfied investors, the potential for reinvestments, and the potential for cluster-development due to follow-up investments.

It is essential to consider the targeted sector (wind, solar, SPH or biomass, respectively) for which investments are required.

Establish the infrastructure needed for a quality investor, including adequate close-by transport facilities (airport, ports), a sufficient and steady supply of energy, a provision of a sufficiently skilled workforce, the facilities for the vocational training of specialized operators, ideally designed in collaboration with the investor.

Policy and other support mechanisms such as Power Purchase Agreements (PPA) play an influential role in underpinning returns and restricting uncertainties for project developers, indirectly supporting the availability of investment. Investors in renewable energy projects have historically relied on government policies to give them confidence about the costs necessary for electricity produced—and therefore for project revenues. Reassurance of future power costs for project developers is secured by signing a PPA with either a utility or an essential corporate buyer of electricity.

FiT have been the most conventional approach around the globe over the last decade to stimulate investments in renewable power projects. Set by the government concerned, they lay down an electricity tariff that developers of qualifying new projects might anticipate to receive for the resulting electricity over a long interval (15–20 years). These present investors in the tax equity of renewable power projects with a credit that they can manage to offset the tax burden outside in their businesses.

Table 29 presents the 2018 renewable energy investment report, source-wise, by the significant players in renewables according to the report of the Bloomberg New Energy Finance Report 2018. As per this report, global investment in renewable energy was USD of 279.8 billion in 2017. The top ten in the total global investments are China (126.1 $BN), the USA (40.5 $BN), Japan (13.4 $BN), India (10.9 $BN), Germany (10.4 $BN), Australia (8.5 $BN), UK (7.6 $BN), Brazil (6.0 $BN), Mexico (6.0 $BN), and Sweden (3.7 $BN) [ 75 ]. This achievement was possible since those countries have well-established strategies for promoting investments [ 76 , 77 ].

The appropriate objectives for renewable power expansion and investments are closely related to the Nationally Determined Contributions (NDCs) objectives, the implementation of the NDC, on the road to achieving Paris promises, policy competence, policy reliability, market absorption capacity, and nationwide investment circumstances that are the real purposes for renewable power expansion, which is a significant factor for the investment strategies, as is shown in Table 30 .

The demand for investments for building a Paris-compatible and climate-resilient energy support remains high, particularly in emerging nations. Future investments in energy grids and energy flexibility are of particular significance. The strategies and the comparison chart between China, India, and the USA are presented in Table 31 .

Table 32 shows France in the first place due to overall favorable conditions for renewables, heading the G20 in investment attractiveness of renewables. Germany drops back one spot due to a decline in the quality of the global policy environment for renewables and some insufficiencies in the policy design, as does the UK. Overall, with four European countries on top of the list, Europe, however, directs the way in providing attractive conditions for investing in renewables. Despite high scores for various nations, no single government is yet close to growing a role model. All countries still have significant room for increasing investment demands to deploy renewables at the scale required to reach the Paris objectives. The table shown is based on the Paris compatible long-term vision, the policy environment for renewable energy, the conditions for system integration, the market absorption capacity, and general investment conditions. India moved from the 11th position to the 9th position in overall investments between 2017 and 2018.

A Paris compatible long-term vision includes a de-carbonization plan for the power system, the renewable power ambition, the coal and oil decrease, and the reliability of renewables policies. Direct support policies include medium-term certainty of policy signals, streamlined administrative procedures, ensuring project realization, facilitating the use of produced electricity. Conditions for system integration include system integration-grid codes, system integration-storage promotion, and demand-side management policies. A market absorption capacity includes a prior experience with renewable technologies, a current activity with renewable installations, and a presence of major renewable energy companies. General investment conditions include non-financial determinants, depth of the financial sector as well, as an inflation forecast.

Employment opportunities for citizens in renewable energy in India

Global employment scenario.

According to the 2018 Annual review of the IRENA [ 78 ], global renewable energy employment touched 10.3 million jobs in 2017, an improvement of 5.3% compared with the quantity published in 2016. Many socio-economic advantages derive from renewable power, but employment continues to be exceptionally centralized in a handful of countries, with China, Brazil, the USA, India, Germany, and Japan in the lead. In solar PV employment (3.4 million jobs), China is the leader (65% of PV Jobs) which is followed by Japan, USA, India, Bangladesh, Malaysia, Germany, Philippines, and Turkey. In biofuels employment (1.9 million jobs), Brazil is the leader (41% of PV Jobs) followed by the USA, Colombia, Indonesia, Thailand, Malaysia, China, and India. In wind employment (1.1 million jobs), China is the leader (44% of PV Jobs) followed by Germany, USA, India, UK, Brazil, Denmark, Netherlands, France, and Spain.

Table 33 shows global renewable energy employment in the corresponding technology branches. As in past years, China maintained the most notable number of people employed (3880 million jobs) estimating for 43% of the globe’s total which is shown in Fig. 8 . In India, new solar installations touched a record of 9.6 GW in 2017, efficiently increasing the total installed capacity. The employment in solar PV improved by 36% and reached 164,400 jobs, of which 92,400 represented on-grid use. IRENA determines that the building and installation covered 46% of these jobs, with operations and maintenance (O&M) representing 35% and 19%, individually. India does not produce solar PV because it could be imported from China, which is inexpensive. The market share of domestic companies (Indian supplier to renewable projects) declined from 13% in 2014–2015 to 7% in 2017–2018. If India starts the manufacturing base, more citizens will get jobs in the manufacturing field. India had the world’s fifth most significant additions of 4.1 GW to wind capacity in 2017 and the fourth largest cumulative capacity in 2018. IRENA predicts that jobs in the wind sector stood at 60,500.

Renewable energy employment in selected countries [ 79 ]

The jobs in renewables are categorized into technological development, installation/de-installation, operation, and maintenance. Tables 34 , 35 , 36 , and 37 show the wind industry, solar energy, biomass, and small hydro-related jobs in project development, component manufacturing, construction, operations, and education, training, and research. As technology quickly evolves, workers in all areas need to update their skills through continuing training/education or job training, and in several cases could benefit from professional certification. The advantages of moving to renewable energy are evident, and for this reason, the governments are responding positively toward the transformation to clean energy. Renewable energy can be described as the country’s next employment boom. Renewable energy job opportunities can transform rural economy [ 79 , 80 ]. The renewable energy sector might help to reduce poverty by creating better employment. For example, wind power is looking for specialists in manufacturing, project development, and construction and turbine installation as well as financial services, transportation and logistics, and maintenance and operations.

The government is building more renewable energy power plants that will require a workforce. The increasing investments in the renewable energy sector have the potential to provide more jobs than any other fossil fuel industry. Local businesses and renewable sectors will benefit from this change, as income will increase significantly. Many jobs in this sector will contribute to fixed salaries, healthcare benefits, and skill-building opportunities for unskilled and semi-skilled workers. A range of skilled and unskilled jobs are included in all renewable energy technologies, even though most of the positions in the renewable energy industry demand a skilled workforce. The renewable sector employs semi-skilled and unskilled labor in the construction, operations, and maintenance after proper training. Unskilled labor is employed as truck drivers, guards, cleaning, and maintenance. Semi-skilled labor is used to take regular readings from displays. A lack of consistent data on the potential employment impact of renewables expansion makes it particularly hard to assess the quantity of skilled, semi-skilled, and unskilled personnel that might be needed.

Key findings in renewable energy employment

The findings comprise (a) that the majority of employment in the renewable sector is contract based, and that employees do not benefit from permanent jobs or security. (b) Continuous work in the industry has the potential to decrease poverty. (c) Most poor citizens encounter obstacles to entry-level training and the employment market due to lack of awareness about the jobs and the requirements. (d) Few renewable programs incorporate developing ownership opportunities for the citizens and the incorporation of women in the sector. (e) The inadequacy of data makes it challenging to build relationships between employment in renewable energy and poverty mitigation.

Recommendations for renewable energy employment

When building the capacity, focus on poor people and individuals to empower them with training in operation and maintenance.

Develop and offer training programs for citizens with minimal education and training, who do not fit current programs, which restrict them from working in renewable areas.

Include women in the renewable workforce by providing localized training.

Establish connections between training institutes and renewable power companies to guarantee that (a) trained workers are placed in appropriate positions during and after the completion of the training program and (b) training programs match the requirements of the renewable sector.

Poverty impact assessments might be embedded in program design to know how programs motivate poverty reduction, whether and how they influence the community.

Allow people to have a sense of ownership in renewable projects because this could contribute to the growth of the sector.

The details of the job being offered (part time, full time, contract-based), the levels of required skills for the job (skilled, semi-skilled and unskilled), the socio-economic status of the employee data need to be collected for further analysis.

Conduct investigations, assisted by field surveys, to learn about the influence of renewable energy jobs on poverty mitigation and differences in the standard of living.

Challenges faced by renewable energy in India

The MNRE has been taking dedicated measures for improving the renewable sector, and its efforts have been satisfactory in recognizing various obstacles.

Policy and regulatory obstacles

A comprehensive policy statement (regulatory framework) is not available in the renewable sector. When there is a requirement to promote the growth of particular renewable energy technologies, policies might be declared that do not match with the plans for the development of renewable energy.

The regulatory framework and procedures are different for every state because they define the respective RPOs (Renewable Purchase Obligations) and this creates a higher risk of investments in this sector. Additionally, the policies are applicable for just 5 years, and the generated risk for investments in this sector is apparent. The biomass sector does not have an established framework.

Incentive accelerated depreciation (AD) is provided to wind developers and is evident in developing India’s wind-producing capacity. Wind projects installed more than 10 years ago show that they are not optimally maintained. Many owners of the asset have built with little motivation for tax benefits only. The policy framework does not require the maintenance of the wind projects after the tax advantages have been claimed. There is no control over the equipment suppliers because they undertake all wind power plant development activities such as commissioning, operation, and maintenance. Suppliers make the buyers pay a premium and increase the equipment cost, which brings burden to the buyer.

Furthermore, ready-made projects are sold to buyers. The buyers are susceptible to this trap to save income tax. Foreign investors hesitate to invest because they are exempted from the income tax.

Every state has different regulatory policy and framework definitions of an RPO. The RPO percentage specified in the regulatory framework for various renewable sources is not precise.

RPO allows the SERCs and certain private firms to procure only a part of their power demands from renewable sources.

RPO is not imposed on open access (OA) and captive consumers in all states except three.

RPO targets and obligations are not clear, and the RPO compliance cell has just started on 22.05.2018 to collect the monthly reports on compliance and deal with non-compliance issues with appropriate authorities.

Penalty mechanisms are not specified and only two states in India (Maharashtra and Rajasthan) have some form of penalty mechanisms.

The parameter to determine the tariff is not transparent in the regulatory framework and many SRECs have established a tariff for limited periods. The FiT is valid for only 5 years, and this affects the bankability of the project.

Many SERCs have not decided on adopting the CERC tariff that is mentioned in CERCs regulations that deal with terms and conditions for tariff determinations. The SERCs have considered the plant load factor (PLF) because it varies across regions and locations as well as particular technology. The current framework does not fit to these issues.

Third party sale (TPS) is not allowed because renewable generators are not allowed to sell power to commercial consumers. They have to sell only to industrial consumers. The industrial consumers have a low tariff and commercial consumers have a high tariff, and SRCS do not allow OA. This stops the profit for the developers and investors.

Institutional obstacles

Institutes, agencies stakeholders who work under the conditions of the MNRE show poor inter-institutional coordination. The progress in renewable energy development is limited by this lack of cooperation, coordination, and delays. The delay in implementing policies due to poor coordination, decrease the interest of investors to invest in this sector.

The single window project approval and clearance system is not very useful and not stable because it delays the receiving of clearances for the projects ends in the levy of a penalty on the project developer.

Pre-feasibility reports prepared by concerned states have some deficiency, and this may affect the small developers, i.e., the local developers, who are willing to execute renewable projects.

The workforce in institutes, agencies, and ministries is not sufficient in numbers.

Proper or well-established research centers are not available for the development of renewable infrastructure.

Customer care centers to guide developers regarding renewable projects are not available.

Standards and quality control orders have been issued recently in 2018 and 2019 only, and there are insufficient institutions and laboratories to give standards/certification and validate the quality and suitability of using renewable technology.

Financial and fiscal obstacles

There are a few budgetary constraints such as fund allocation, and budgets that are not released on time to fulfill the requirement of developing the renewable sector.

The initial unit capital costs of renewable projects are very high compared to fossil fuels, and this leads to financing challenges and initial burden.

There are uncertainties related to the assessment of resources, lack of technology awareness, and high-risk perceptions which lead to financial barriers for the developers.

The subsidies and incentives are not transparent, and the ministry might reconsider subsidies for renewable energy because there was a sharp fall in tariffs in 2018.

Power purchase agreements (PPA) signed between the power purchaser and power generators on pre-determined fixed tariffs are higher than the current bids (Economic survey 2017–2018 and union budget on the 01.02.2019). For example, solar power tariff dropped to 2.44 INR (0. 04 USD) per unit in May 2017, wind power INR 3.46 per unit in February 2017, and 2.64 INR per unit in October 2017.

Investors feel that there is a risk in the renewable sector as this sector has lower gross returns even though these returns are relatively high within the market standards.

There are not many developers who are interested in renewable projects. While newly established developers (small and local developers) do not have much of an institutional track record or financial input, which are needed to develop the project (high capital cost). Even moneylenders consider it risky and are not ready to provide funding. Moneylenders look exclusively for contractors who have much experience in construction, well-established suppliers with proven equipment and operators who have more experience.

If the performance of renewable projects, which show low-performance, faces financial obstacles, they risks the lack of funding of renewable projects.

Financial institutions such as government banks or private banks do not have much understanding or expertise in renewable energy projects, and this imposes financial barriers to the projects.

Delay in payment by the SERCs to the developers imposes debt burden on the small and local developers because moneylenders always work with credit enhancement mechanisms or guarantee bonds signed between moneylenders and the developers.

Market obstacles

Subsidies are adequately provided to conventional fossil fuels, sending the wrong impression that power from conventional fuels is of a higher priority than that from renewables (unfair structure of subsidies)

There are four renewable markets in India, the government market (providing budgetary support to projects and purchase the output of the project), the government-driven market (provide budgetary support or fiscal incentives to promote renewable energy), the loan market (taking loan to finance renewable based applications), and the cash market (buying renewable-based applications to meet personal energy needs by individuals). There is an inadequacy in promoting the loan market and cash market in India.

The biomass market is facing a demand-supply gap which results in a continuous and dramatic increase in biomass prices because the biomass supply is unreliable (and, as there is no organized market for fuel), and the price fluctuations are very high. The type of biomass is not the same in all the states of India, and therefore demand and price elasticity is high for biomass.

Renewable power was calculated based on cost-plus methods (adding direct material cost, direct labor cost, and product overhead cost). This does not include environmental cost and shields the ecological benefits of clean and green energy.

There is an inadequate evacuation infrastructure and insufficient integration of the grid, which affects the renewable projects. SERCs are not able to use all generated power to meet the needs because of the non-availability of a proper evacuation infrastructure. This has an impact on the project, and the SERCs are forced to buy expensive power from neighbor states to fulfill needs.

Extending transmission lines is not possible/not economical for small size projects, and the seasonality of generation from such projects affect the market.

There are few limitations in overall transmission plans, distribution CapEx plans, and distribution licenses for renewable power. Power evacuation infrastructure for renewable energy is not included in the plans.

Even though there is an increase in capacity for the commercially deployed renewable energy technology, there is no decline in capital cost. This cost of power also remains high. The capital cost quoted by the developers and providers of equipment is too high due to exports of machinery, inadequate built up capacity, and cartelization of equipment suppliers (suppliers join together to control prices and limit competition).

There is no adequate supply of land, for wind, solar, and solar thermal power plants, which lead to poor capacity addition in many states.

Technological obstacles

Every installation of a renewable project contributes to complex risk challenges from environmental uncertainties, natural disasters, planning, equipment failure, and profit loss.

MNRE issued the standardization of renewable energy projects policy on the 11th of December 2017 (testing, standardization, and certification). They are still at an elementary level as compared to international practices. Quality assurance processes are still under starting conditions. Each success in renewable energy is based on concrete action plans for standards, testing and certification of performance.

The quality and reliability of manufactured components, imported equipment, and subsystems is essential, and hence quality infrastructure should be established. There is no clear document related to testing laboratories, referral institutes, review mechanism, inspection, and monitoring.

There are not many R&D centers for renewables. Methods to reduce the subsidies and invest in R&D lagging; manufacturing facilities are just replicating the already available technologies. The country is dependent on international suppliers for equipment and technology. Spare parts are not manufactured locally and hence they are scarce.

Awareness, education, and training obstacles

There is an unavailability of appropriately skilled human resources in the renewable energy sector. Furthermore, it faces an acute workforce shortage.

After installation of renewable project/applications by the suppliers, there is no proper follow-up or assistance for the workers in the project to perform maintenance. Likewise, there are not enough trained and skilled persons for demonstrating, training, operation, and maintenance of the plant.

There is inadequate knowledge in renewables, and no awareness programs are available to the general public. The lack of awareness about the technologies is a significant obstacle in acquiring vast land for constructing the renewable plant. Moreover, people using agriculture lands are not prepared to give their land to construct power plants because most Indians cultivate plants.

The renewable sector depends on the climate, and this varying climate also imposes less popularity of renewables among the people.

The per capita income is low, and the people consider that the cost of renewables might be high and they might not be able to use renewables.

The storage system increases the cost of renewables, and people believe it too costly and are not ready to use them.

The environmental benefits of renewable technologies are not clearly understood by the people and negative perceptions are making renewable technologies less prevalent among them.

Environmental obstacles

A single wind turbine does not occupy much space, but many turbines are placed five to ten rotor diameters from each other, and this occupies more area, which include roads and transmission lines.

In the field of offshore wind, the turbines and blades are bigger than onshore wind turbines, and they require a substantial amount of space. Offshore installations affect ocean activities (fishing, sand extraction, gravel extraction, oil extraction, gas extraction, aquaculture, and navigation). Furthermore, they affect fish and other marine wildlife.

Wind turbines influence wildlife (birds and bats) because of the collisions with them and due to air pressure changes caused by wind turbines and habitat disruption. Making wind turbines motionless during times of low wind can protect birds and bats but is not practiced.

Sound (aerodynamic, mechanical) and visual impacts are associated with wind turbines. There is poor practice by the wind turbine developers regarding public concerns. Furthermore, there are imperfections in surfaces and sound—absorbent material which decrease the noise from turbines. The shadow flicker effect is not taken as severe environmental impact by the developers.

Sometimes wind turbine material production, transportation of materials, on-site construction, assembling, operation, maintenance, dismantlement, and decommissioning may be associated with global warming, and there is a lag in this consideration.

Large utility-scale solar plants require vast lands that increase the risk of land degradation and loss of habitat.

The PV cell manufacturing process includes hazardous chemicals such as 1-1-1 Trichloroethene, HCL, H 2 SO 4 , N 2 , NF, and acetone. Workers face risks resulting from inhaling silicon dust. The manufacturing wastes are not disposed of properly. Proper precautions during usage of thin-film PV cells, which contain cadmium—telluride, gallium arsenide, and copper-indium-gallium-diselenide are missing. These materials create severe public health threats and environmental threats.

Hydroelectric power turbine blades kill aquatic ecosystems (fish and other organisms). Moreover, algae and other aquatic weeds are not controlled through manual harvesting or by introducing fish that can eat these plants.

Discussion and recommendations based on the research

Policy and regulation advancements.

The MNRE should provide a comprehensive action plan or policy for the promotion of the renewable sector in its regulatory framework for renewables energy. The action plan can be prepared in consultation with SERCs of the country within a fixed timeframe and execution of the policy/action plan.

The central and state government should include a “Must run status” in their policy and follow it strictly to make use of renewable power.

A national merit order list for renewable electricity generation will reduce power cost for the consumers. Such a merit order list will help in ranking sources of renewable energy in an ascending order of price and will provide power at a lower cost to each distribution company (DISCOM). The MNRE should include that principle in its framework and ensure that SERCs includes it in their regulatory framework as well.

SERCs might be allowed to remove policies and regulatory uncertainty surrounding renewable energy. SERCs might be allowed to identify the thrust areas of their renewable energy development.

There should be strong initiatives from municipality (local level) approvals for renewable energy-based projects.

Higher market penetration is conceivable only if their suitable codes and standards are adopted and implemented. MNRE should guide minimum performance standards, which incorporate reliability, durability, and performance.

A well-established renewable energy certificates (REC) policy might contribute to an efficient funding mechanism for renewable energy projects. It is necessary for the government to look at developing the REC ecosystem.

The regulatory administration around the RPO needs to be upgraded with a more efficient “carrot and stick” mechanism for obligated entities. A regulatory mechanism that both remunerations compliance and penalizes for non-compliance may likely produce better results.

RECs in India should only be traded on exchange. Over-the-counter (OTC) or off-exchange trading will potentially allow greater participation in the market. A REC forward curve will provide further price determination to the market participants.

The policymakers should look at developing and building the REC market.

Most states have defined RPO targets. Still, due to the absence of implemented RPO regulations and the inadequacy of penalties when obligations are not satisfied, several of the state DISCOMs are not complying completely with their RPO targets. It is necessary that all states adhere to the RPO targets set by respective SERCs.

The government should address the issues such as DISCOM financials, must-run status, problems of transmission and evacuation, on-time payments and payment guarantees, and deemed generation benefits.

Proper incentives should be devised to support utilities to obtain power over and above the RPO mandated by the SERC.

The tariff orders/FiTs must be consistent and not restricted for a few years.

Transmission requirements

The developers are worried that transmission facilities are not keeping pace with the power generation. Bays at the nearest substations are occupied, and transmission lines are already carrying their full capacity. This is due to the lack of coordination between MNRE and the Power Grid Corporation of India (PGCIL) and CEA. Solar Corporation of India (SECI) is holding auctions for both wind and solar projects without making sure that enough evacuation facilities are available. There is an urgent need to make evacuation plans.

The solution is to develop numerous substations and transmission lines, but the process will take considerably longer time than the currently under-construction projects take to get finished.

In 2017–2018, transmission lines were installed under the green energy corridor project by the PGCIL, with 1900 circuit km targeted in 2018–2019. The implementation of the green energy corridor project explicitly meant to connect renewable energy plants to the national grid. The budget allocation of INR 6 billion for 2018–2019 should be increased to higher values.

The mismatch between MNRE and PGCIL, which are responsible for inter-state transmission, should be rectified.

State transmission units (STUs) are responsible for the transmission inside the states, and their fund requirements to cover the evacuation and transmission infrastructure for renewable energy should be fulfilled. Moreover, STUs should be penalized if they fail to fulfill their responsibilities.

The coordination and consultation between the developers (the nodal agency responsible for the development of renewable energy) and STUs should be healthy.

Financing the renewable sector

The government should provide enough budget for the clean energy sector. China’s annual budget for renewables is 128 times higher than India’s. In 2017, China spent USD 126.6 billion (INR 9 lakh crore) compared to India’s USD 10.9 billion (INR 75500 crore). In 2018, budget allocations for grid interactive wind and solar have increased but it is not sufficient to meet the renewable target.

The government should concentrate on R&D and provide a surplus fund for R&D. In 2017, the budget allotted was an INR 445 crore, which was reduced to an INR 272.85 crore in 2016. In 2017–2018, the initial allocation was an INR 144 crore that was reduced to an INR 81 crore during the revised estimates. Even the reduced amounts could not be fully used, there is an urgent demand for regular monitoring of R&D and the budget allocation.

The Goods and Service Tax (GST) that was introduced in 2017 worsened the industry performance and has led to an increase in costs and poses a threat to the viability of the ongoing projects, ultimately hampering the target achievement. These GST issues need to be addressed.

Including the renewable sector as a priority sector would increase the availability of credit and lead to a more substantial participation by commercial banks.

Mandating the provident funds and insurance companies to invest the fixed percentage of their portfolio into the renewable energy sector.

Banks should allow an interest rebate on housing loans if the owner is installing renewable applications such as solar lights, solar water heaters, and PV panels in his house. This will encourage people to use renewable energy. Furthermore, income tax rebates also can be given to individuals if they are implementing renewable energy applications.

Improvement in manufacturing/technology

The country should move to domestic manufacturing. It imports 90% of its solar cell and module requirements from Malaysia, China, and Taiwan, so it is essential to build a robust domestic manufacturing basis.

India will provide “safeguard duty” for merely 2 years, and this is not adequate to build a strong manufacturing basis that can compete with the global market. Moreover, safeguard duty would work only if India had a larger existing domestic manufacturing base.

The government should reconsider the safeguard duty. Many foreign companies desiring to set up joint ventures in India provide only a lukewarm response because the given order in its current form presents inadequate safeguards.

There are incremental developments in technology at regular periods, which need capital, and the country should discover a way to handle these factors.

To make use of the vast estimated renewable potential in India, the R&D capability should be upgraded to solve critical problems in the clean energy sector.

A comprehensive policy for manufacturing should be established. This would support capital cost reduction and be marketed on a global scale.

The country should initiate an industry-academia partnership, which might promote innovative R&D and support leading-edge clean power solutions to protect the globe for future generations.

Encourage the transfer of ideas between industry, academia, and policymakers from around the world to develop accelerated adoption of renewable power.

Awareness about renewables

Social recognition of renewable energy is still not very promising in urban India. Awareness is the crucial factor for the uniform and broad use of renewable energy. Information about renewable technology and their environmental benefits should reach society.

The government should regularly organize awareness programs throughout the country, especially in villages and remote locations such as the islands.

The government should open more educational/research organizations, which will help in spreading knowledge of renewable technology in society.

People should regularly be trained with regard to new techniques that would be beneficial for the community.

Sufficient agencies should be available to sell renewable products and serve for technical support during installation and maintenance.

Development of the capabilities of unskilled and semiskilled workers and policy interventions are required related to employment opportunities.

An increase in the number of qualified/trained personnel might immediately support the process of installations of renewables.

Renewable energy employers prefer to train employees they recruit because they understand that education institutes fail to give the needed and appropriate skills. The training institutes should rectify this issue. Severe trained human resources shortages should be eliminated.

Upgrading the ability of the existing workforce and training of new professionals is essential to achieve the renewable goal.

Hybrid utilization of renewables

The country should focus on hybrid power projects for an effective use of transmission infrastructure and land.

India should consider battery storage in hybrid projects, which support optimizing the production and the power at competitive prices as well as a decrease of variability.

Formulate mandatory standards and regulations for hybrid systems, which are lagging in the newly announced policies (wind-solar hybrid policy on 14.05.2018).

The hybridization of two or more renewable systems along with the conventional power source battery storage can increase the performance of renewable technologies.

Issues related to sizing and storage capacity should be considered because they are key to the economic viability of the system.

Fiscal and financial incentives available for hybrid projects should be increased.

The renewable sector suffers notable obstacles. Some of them are inherent in every renewable technology; others are the outcome of a skewed regulative structure and marketplace. The absence of comprehensive policies and regulation frameworks prevent the adoption of renewable technologies. The renewable energy market requires explicit policies and legal procedures to enhance the attention of investors. There is a delay in the authorization of private sector projects because of a lack of clear policies. The country should take measures to attract private investors. Inadequate technology and the absence of infrastructure required to establish renewable technologies should be overcome by R&D. The government should allow more funds to support research and innovation activities in this sector. There are insufficiently competent personnel to train, demonstrate, maintain, and operate renewable energy structures and therefore, the institutions should be proactive in preparing the workforce. Imported equipment is costly compared to that of locally manufactured; therefore, generation of renewable energy becomes expensive and even unaffordable. Hence, to decrease the cost of renewable products, the country should become involve in the manufacturing of renewable products. Another significant infrastructural obstacle to the development of renewable energy technologies is unreliable connectivity to the grid. As a consequence, many investors lose their faith in renewable energy technologies and are not ready to invest in them for fear of failing. India should work on transmission and evacuation plans.

Inadequate servicing and maintenance of facilities and low reliability in technology decreases customer trust in some renewable energy technologies and hence prevent their selection. Adequate skills to repair/service the spare parts/equipment are required to avoid equipment failures that halt the supply of energy. Awareness of renewable energy among communities should be fostered, and a significant focus on their socio-cultural practices should be considered. Governments should support investments in the expansion of renewable energy to speed up the commercialization of such technologies. The Indian government should declare a well-established fiscal assistance plan, such as the provision of credit, deduction on loans, and tariffs. The government should improve regulations making obligations under power purchase agreements (PPAs) statutorily binding to guarantee that all power DISCOMs have PPAs to cover a hundred percent of their RPO obligation. To accomplish a reliable system, it is strongly suggested that renewables must be used in a hybrid configuration of two or more resources along with conventional source and storage devices. Regulatory authorities should formulate the necessary standards and regulations for hybrid systems. Making investments economically possible with effective policies and tax incentives will result in social benefits above and beyond the economic advantages.

Availability of data and materials

Not applicable.

Abbreviations

Accelerated depreciation

Billion units

Central Electricity Authority of India

Central electricity regulatory commission

Central financial assistance

Expression of interest

Foreign direct investment

Feed-in-tariff

Ministry of new and renewable energy

Research and development

Renewable purchase obligations

State electricity regulatory

Small hydropower

Terawatt hours

Waste to energy

Chr.Von Zabeltitz (1994) Effective use of renewable energies for greenhouse heating. Renewable Energy 5:479-485.

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The authors gratefully acknowledge the support provided by the Research Consultancy Institute (RCI) and the department of Electrical and Computer Engineering of Effat University, Saudi Arabia.

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Kumar. J, C.R., Majid, M.A. Renewable energy for sustainable development in India: current status, future prospects, challenges, employment, and investment opportunities. Energ Sustain Soc 10 , 2 (2020). https://doi.org/10.1186/s13705-019-0232-1

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Received : 15 September 2018

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For more information refer to the Future Made in Australia fact sheet [PDF 438KB]

Better deploying capital in priority areas

The Future Made in Australia package will realise Australia’s potential to become a renewable energy superpower, value‑add to our resources and strengthen economic security by better attracting and enabling investment in priority areas. The Government will create a Future Made in Australia Act and establish a National Interest Framework that identifies priority industries and ensures investments associated with them are responsible and targeted.

The Framework will have a focus on industries that contribute to the net zero transformation where Australia has a comparative advantage, and where Australia has national interest imperatives related to economic resilience and security.

Strengthening and streamlining approvals

This Budget provides a faster pathway to better decisions on environmental, energy, planning, cultural heritage and foreign investment approvals.

This includes:

• $134.2 million to better prioritise approvals for renewable energy projects of national significance, and support faster decisions on environment, cultural heritage and planning approvals.
• Working with the states and territories through the Energy and Climate Change Ministerial Council to accelerate electricity grid connections.
• $20.7 million to improve engagement with communities impacted by the energy transition and accelerate the delivery of key energy projects.
• $15.7 million to strengthen scrutiny of high‑risk foreign investment proposals, enhance monitoring and enforcement activities and support faster decisions.

The Government will also encourage foreign investment by providing refunds of 75 per cent of application fees for unsuccessful competitive bids.

Promoting sustainable finance

The Government is committing $17.3 million to mobilise private sector investment in sustainable activities. This includes extending Australia’s sustainable finance taxonomy to the agriculture sector and developing a labelling regime for financial products marketed as sustainable.

The Government will also examine opportunities to improve data quality and provide $1.3 million to develop and issue guidance for best practice transition plans.

Making Australia a renewable energy superpower

Powering australia with cheaper, cleaner, more reliable energy.

Australia’s potential to produce abundant renewable energy is a powerful source of comparative advantage. To realise this, the Government is unlocking more than $65 billion of investment in renewable capacity through the Capacity Investment Scheme by 2030.

This Budget helps Australians benefit from cheaper, cleaner energy sooner by investing $27.7 million to integrate consumer energy resources like batteries and solar into the grid.

The New Vehicle Efficiency Standard will save Australians around $95 billion at the bowser by 2050 and reduce transport emissions.

Unlocking investment in net zero industries and jobs

This Budget accelerates growth of new industries by establishing the $1.7 billion Future Made in Australia Innovation Fund and delivering a 10‑year extension of funding to the Australian Renewable Energy Agency. It also delivers the $44.4 million Energy Industry Jobs Plan and $134.2 million for skills and employment support in key regions.

The Future Made in Australia package establishes time‑limited incentives to invest in new industries. The Hydrogen Production Tax Incentive will make Australia’s pipeline of hydrogen projects commercial sooner, at an estimated cost of $6.7 billion over the decade. This Budget also expands the Hydrogen Headstart program by $1.3 billion.

Boosting demand for Australia’s green exports

The Government is making it easier for businesses and trading partners to source low‑emissions products by building better markets and product standards for green products.

This Budget provides $32.2 million to fast‑track the initial phase of the Guarantee of Origin scheme, focused on renewable hydrogen, and bring forward the expansion of the scheme to accredit the emissions content of green metals and low‑carbon liquid fuels. The Government is also working closely with trading partners to identify opportunities to drive greater supply chain transparency and better market recognition of high environmental, social and governance standards in the critical minerals sector.

Realising the opportunities of the net zero transformation

Australia is committed to reaching net zero greenhouse gas emissions by 2050 and is developing six sector plans covering:

• electricity and energy
• agriculture and land
• the built environment.

This Budget continues investment in effective emissions abatement, including through $63.8 million to support emissions reduction efforts in the agriculture and land sector.

The Government is also investing $399 million to establish the Net Zero Economy Authority and support the economy‑wide net zero transformation. This Budget also invests an additional $48 million in reforms to the Australian Carbon Credit Unit scheme and $20.7 million to improve community engagement.

Strengthening resources and economic security

Backing a strong resources sector.

The Government is investing $8.8 billion over the decade to add more value to our resources and strengthen critical minerals supply chains. This Budget establishes a production tax incentive for processing and refining critical minerals at an estimated cost of $7 billion over the decade. It commits up to $1.2 billion in strategic critical minerals projects through the Critical Minerals Facility and the Northern Australia Infrastructure Facility, and pre‑feasibility studies for common user precincts.

This is in addition to $566.1 million to support Geoscience Australia to map all of Australia’s critical minerals, strategic materials, groundwater and other resources essential for the transition to net zero.

Manufacturing clean energy technologies

The Government is committing $1.5 billion to manufacturing clean energy technologies, including the $1 billion Solar Sunshot and $523.2 million Battery Breakthrough Initiative. These investments will be delivered by ARENA.

Strengthening supply chains

To support the delivery of the 82 per cent renewable energy target, the Government has formed the National Renewable Energy Supply Chain Action Plan with states and territories. The Government will invest an additional $14.3 million working with trade partners to support global rules on unfair trade practices and to negotiate benchmarks for trade in high quality critical minerals.

Digital, science and innovation

Investing in new technologies and capabilities.

The Government is investing $466.4 million to partner with PsiQuantum and the Queensland Government to build the world’s first commercial‑scale quantum computer in Brisbane.

The Government will undertake a strategic examination of Australia’s research and development (R&D) system with $38.2 million invested in a range of science, technology, engineering, and maths programs.

The Government is providing $448.7 million to partner with the United States in the Landsat Next satellite program to provide access to critical data to monitor the earth’s climate, agricultural production, and natural disasters.

Modernising and digitising industries

This Budget commits $288.1 million to support Australia’s Digital ID System. A National Robotics Strategy will also be released to promote the responsible production and adoption of robotics and automation technologies for advanced manufacturing in Australia.

Reforming tertiary education

The Government is committing $1.6 billion over 5 years, and an additional $2.7 billion from 2028–29 to 2034–35 to reform the tertiary education system and deliver Australia's future workforce.

This includes $1.1 billion for reforms to university funding and tertiary system governance.

Over $500 million will be provided for skills and training in priority industries and to support women’s participation in these sectors.

The Government will set a tertiary attainment target of 80 per cent of the working‑age population by 2050.

Supporting students on placements

The Government will establish Commonwealth Prac Payments (CPP) for students undertaking mandatory placements. From 1 July 2025, the payment will provide more than 73,000 eligible students, including teachers, nurses, midwives and social workers with $319.50 per week during their placements.

Felicity is a full‑time student receiving Youth Allowance, living by herself. She is studying a Bachelor of Nursing and must stop paid work during her mandatory prac placement. During her prac, Felicity receives $712.05 per week from the Government including: $319.50 of CPP, $285.55 of Youth Allowance (YA), $103.50 of Commonwealth Rent Assistance (CRA) and $3.50 of Energy Supplement.

Felicity receives $351.55 a week more than she would have in 2023 before indexation and the changes to YA, CRA and CPP in the current and 2023–24 Budget

Broadening access to university

From January 2026, needs‑based funding will provide per student funding contributions for under‑represented students. The Government will also provide $350.3 million to fully fund university enabling courses and increase pathways for prospective students to university.

Skills pipeline for priority industries

Skills and training for Future Made in Australia industries

The Government will expand eligibility to the New Energy Apprenticeships Program to include work in the clean energy sector, including in construction and advanced manufacturing. This will provide access to $10,000 incentive payments and support our target of 10,000 new energy apprentices.

The Government will commit $30 million to turbocharge the VET teaching workforce for clean energy courses and $50 million to upgrade and expand clean energy training facilities.

The Government will invest $55.6 million to establish the Building Women’s Careers program to support women’s participation in key industries including clean energy and advanced manufacturing.

Supporting apprentices and building the construction workforce

The $5,000 support payments to apprentices in priority occupations will be maintained for another 12 months to 1 July 2025, up from $3,000 in the absence of any changes. Employers of these apprentices will receive a $5,000 hiring incentive, up from $4,000 in the absence of changes. This will provide certainty to apprentices while the Strategic Review of the Apprenticeship Incentive System is underway.

The Government will also invest $88.8 million to deliver 20,000 new fee‑free TAFE places including pre‑apprenticeships in courses relevant to the construction sector. The Government will provide $1.8 million to deliver streamlined skills assessments for around 1,900 migrants from comparable countries to work in Australia’s housing construction industry.

Strengthening our defence industry capability

An integrated and focused approach to defending Australia

The Government is investing an additional $50.3 billion over ten years to implement the 2024 National Defence Strategy to meet Australia’s strategic needs.

Overall funding for Defence will reach $765 billion over the decade. Defence’s Integrated Investment Program has been rebuilt to create a focused Australian Defence Force, accelerate delivery of priority capabilities, and provide certainty to grow Australia’s defence industry. This includes funding for the Royal Australian Navy’s surface combatant fleet and establishing a guided weapons and explosive ordnance manufacturing capability earlier.

The Government is reforming Defence’s budget to support the National Defence Strategy and delivery of priority capabilities.

Developing defence industry and skills

Industry development grants funding of $165.7 million will also help businesses to scale up and deliver the Sovereign Defence Industrial Priorities, which include continuous naval shipbuilding and sustainment, and development and integration of autonomous systems.

The Government is providing $101.8 million to attract and retain the skilled industrial workforce to support Australian shipbuilding and delivery of conventionally armed, nuclear powered submarines. This includes a pilot apprenticeship program in shipbuilding trades and technologies.

Investing in civil maritime capabilities

The Government is providing $123.8 million to maintain and enhance civil maritime security capabilities. This includes $71.2 million to increase the Australian Border Force’s on‑water response and aerial surveillance capabilities.

Securing Australia’s place in the world

Strengthening relationships and simplifying trade

A stable, prosperous and resilient Pacific region

The Government is delivering over $2 billion in development assistance to the Pacific in 2024–25. This includes the Australia‑Tuvalu Falepili Union.

Investing in our relationship with Southeast Asia

Following the launch of Australia’s Southeast Asia Economic Strategy to 2040, the Government is committing $505.9 million to deepen ties with the region.

Australia recently celebrated 50 years of partnership with the Association of Southeast Asian Nations (ASEAN). At the ASEAN‑Australia Special Summit, the Government announced a range of new and expanded initiatives, including a $2 billion Southeast Asia Investment Financing Facility to boost Australian trade and investment.

Simplifying trade

The Government will abolish 457 nuisance tariffs from 1 July 2024, streamlining $8.5 billion in annual trade and eliminating tariffs on goods such as toothbrushes, fridges, dishwashers, clothing and sanitary products.

The Government will provide $29.9 million to coordinate trade simplification and deliver the Digital Trade Accelerator program, and $10.9 million to enhance the Go Global Toolkit to support exporters.

The Government is expanding the Australia‑India Business Exchange, diversifying trade and helping more Australian businesses build commercial ties with India and across South Asia. There will be $2 million to support Australian agricultural exporters entering the Chinese markets.

Support for small businesses

Helping small businesses

This Budget’s Small Business Statement reaffirms the Government’s commitment to deliver a better deal for small businesses, with $641.4 million in targeted support.

For more information refer to the small business fact sheet [PDF 0.98MB]

Improving cash flow

The Government is providing $290 million to extend the $20,000 instant asset write‑off for 12 months. There will be $25.3 million to improve payment times to small businesses and $23.3 million to increase eInvoicing adoption.

Easing cost pressures and reducing the administrative burden

This Budget provides $3.5 billion of energy bill relief, including rebates of $325 to around one million small businesses.

The Government is reducing the administrative burden for small business by abolishing 457 nuisance tariffs and delivering $10 million to provide additional support for small business employers administering the Paid Parental Leave scheme.

Supporting confidence and resilience in the small business sector

This Budget invests a further $10.8 million in tailored, free and confidential financial and mental wellbeing supports for small business owners.

The Government is providing $20.5 million to the Fair Work Ombudsman to help small businesses understand and comply with recent workplace relations changes.

There will be $3 million to implement the Government’s response to the Review of the Franchising Code of Conduct, including remaking and enhancing the Code, and an additional $2.6 million to support more small businesses through alternative dispute resolution.

A more resilient Australia

Preparing for the future

The Government is preparing Australia for future droughts and heightened risk of natural disasters.

Disaster resilience and preparedness

The Government will provide $138.7 million to improve Australia’s response and resilience to natural hazards and disasters. Support includes: funding for the National Emergency Management Agency to supply communities with vital goods, equipment, and temporary accommodation during an emergency, aerial firefighting capability, and mental health support. This is in addition to the $11.4 billion previously committed for Disaster Recovery Funding Arrangements for the states and territories.

The Government is establishing a pilot program for Australia’s Strategic Fleet. These vessels will improve Australia’s capacity to respond and support communities and supply chains during crises.

Preparing for drought and climate change

This Budget provides $174.6 million from the National Water Grid Fund to deliver new water infrastructure projects that will enhance water security, boost agricultural production and help drought proof regional communities.

The Government will provide $519.1 million from its Future Drought Fund to help farmers and rural communities manage the impacts of climate change and prepare for future droughts.

This investment will build the drought resilience of more farmers like Victorian cropper Ed Rickard.

The Fund supported Ed in developing a better farm business plan, which identified his need for weather stations and soil moisture probes. It also helped him implement a succession plan that ensured his farm’s long-term viability.

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