The upfront cost of developing and deploying renewable energy technology is high. For many countries, this cost is prohibitive, and financial support is needed to get the ball rolling. However, there could be significant savings in terms of energy security and pollution. By 2030, net-zero emissions could save a global economy more than $4 trillion annually. A resilient and secure energy system can be created by efficient renewable technologies. This article looks at the strengths and weaknesses of renewable energy technologies and how to evaluate them.
Overview of Renewable Energy Technologies
Recent years have seen significant progress in renewable energy technologies. Renewables are now accounting for 19 percent of the electricity generated in the United States, and the number is expected to reach 35 percent by 2030. This increase is largely due mainly to wind and solar energy. The non-hydro renewables market is also growing, from 1% in 2005 to more than 12 percent by 2020. These technologies can power entire islands, remote villages and industrial installations as well as homes.
There are many renewable energy sources, including wind, solar, ocean and hydropower. These sources can be expensive and have different technical capabilities. These sources have a similar technology to fossil fuels but are cheaper and take less time to build. These technologies are becoming cheaper, so R&D is helping to accelerate their development.
Cost-effectiveness evaluation criteria
The current cost-effectiveness evaluation of renewable energy technologies is a new assessment method that compares the costs and benefits of policies aimed at promoting the use of renewable energy technologies in different climates. This evaluation is applicable to policymakers as well as private investors and can help reveal the potential for green energy utilization.
Although individual photovoltaic and wind turbine deployments can be cost-effective and convenient, they don't provide an endless supply of energy. A complete dependence on one system is unsustainable, so hybrid systems are an option.
Incentives for renewable energy technology deployment
The policymakers can leverage incentives to deploy renewable energy technology to help accelerate the transition. The federal government uses low-carbon technology incentives to foster innovation and adoption since 2005. Clear market signals are the best way to make them work. Innovations that are certain their technology will be accepted and cheaper by the market are more likely than others to invest in R&D, and thus move up the adoption curve.
An incentive can be customized to support a particular market segment or phase of project development. For example, geothermal projects face unique risks during the resource exploration phase and require specific incentives. Incentives can also be offered earlier in the project development process, which allows for faster deployment of renewable energy technologies.
Renewable energy technology strengths and weaknesses
Renewable energy technologies offer numerous advantages over traditional energy sources. First, they can produce energy locally. This decreases the demand for imported energy and helps increase energy independence. The second benefit is that renewable energy sources can help reduce the risks associated to fossil fuels, such price fluctuations or geopolitical instability.
These benefits do come with some costs. Renewable energy systems can require substantial upfront investments and high infrastructure costs. They also require large amounts of land to construct. They are also not as economically-friendly as traditional technologies. However, the cost for renewable electricity has decreased steadily in recent years thanks to improvements in manufacturing processes and economies at scale. Renewable energy certificates also have increased in popularity. Another downside is the fact that renewable energy technologies rely on natural resources, which can degrade their efficiency on cloudy days or during calm weather. In addition, hydropower systems require consistent snowfall, which makes them less efficient.