Economics of renewable energy

The newly formed Environment Ministry backed the proposal. The incumbent electricity producers did not devote much effort to counter the bill because they believed its effects would be minimal and their lobby effort was preoccupied with the takeover of the East German electricity system following German reunification in

Economics of renewable energy

The official publication of the American Energy Society published by De Gruyter Barriers to Renewable Energy Technologies Development Dorcas Kariuki Keele University — Since the beginning of the 21st Century, renewable energy has been a significant area of research amongst scientists.

However, despite scientists coming up with practical and convincing technologies on renewable energy, the process of getting people to switch from their use of non-renewable energy sources has been quite slow and uncertain especially in the developing nations.

This essay aims to identify and explain why many countries have stuck to the use of non-renewable energy resources, specifically coal, and the challenges facing renewable energy technologies adoption which, consequently, affects the potential of the technologies in many countries.

In the essay, these barriers to renewable energy adoption have been discussed under the following seven categories: The paper will be useful to renewable energy researchers, students, policymakers and individuals or organisations who may be concerned with promoting renewable energy technologies, as it highlights gaps in renewable energy development which they may need to address in their research and decision-making processes.

Introduction Use of energy is a necessity for physical and socio-economic development in rural and urban settings 1. However, despite being the major contributor of energy in the global energy mix, fossil fuels are also the main contributor to the high levels of carbon dioxide emissions in the atmosphere 2hence an increase in global warming.

Access to sustainable energy is, therefore, one of the leading factors that contribute to the difference between the developed and the developing countries 3.

Economics of renewable energy

Due to the increased use of conventional sources of energy such as fossil fuels coal, gas, oil and radioactive ore all over the world and the associated environmental impacts, efforts have been directed towards minimizing dependence on these resources by increasing renewable energy supply, with little impact to date 4.

Many studies indicate that most countries have an enormous potential for renewable energy production 5. However, for some reasons, the current renewable energy application in these countries is negligible compared to their potential 3.

Economics of renewable energy

For example, though India is rich in both renewable and conventional energy resources, coal has continued to be the dominant source of electricity due to its availability, suitability to the needs and relatively low cost 6.

Similarly, Africa experiences a slow development rate as a result of little access to renewable energy; this is because of the high levels of limitations from underprivileged energy policies, inadequate funds, lack of technological advances, as well as lack of adequate infrastructures 7.

These categories of barriers are political and regulatory, technical technology and infrastructuremarket-related, social-cultural, financial and economic, and geographical and ecological.

Why are people still using coal? This means that it will be hard to replace coal as a source of energy, especially in our industries.

Greater use of renewable energy is seen as a key component of any move to combat climate change, and is being aggressively promoted as such by the new U.S. administration and by other governments. Yet there is little economic analysis of renewable energy. This paper surveys what is written and adds. 3 THE ECONOMICS OF RENEWABLE ENERGY 1. ENERGY TRANSITIONS The history of industrial civilization is a history of energy transitions. In less. It’s about more than the numbers. But we like those too. At 3Degrees, we don’t just believe in what we do — we’re pretty good at it. And we’re proud to represent the renewable energy industry with recognition from some of the best in the business.

The kind of infrastructural changes that are required in changing from coal to other renewable sources of energy is prohibitive—in terms of cost and time. Also, industries require a lot of energy.

Coal has a high net energy yield compared to other sources of energy 9. This means that for a unit of coal a lot of energy is produced compared to other sources of energy. Therefore, coal is very efficient for producing the high amounts of energy required in the industries, which makes it very hard to replace it with other energy sources.

Additionally, coal is an abundant source of energy. In most countries, coal is readily available and is in ample supplies 9. Therefore, it can hardly be replaced by other forms of energy, because people usually prefer to use what is readily available to them.

For example, about half of electricity in the United States of America is generated via coal plants: This is because when something is in abundance, it becomes cheaper compared to something that is in limited supply.

With the advent of technology, burning of coal has been made cleaner and efficient than it used to be Therefore, there might be no need to replace it with other cleaner energy sources such as solar and wind power.

In this regard, the technological advancements have made it more efficient to mine and burn coal to produce high amounts of energy. Therefore, it is challenging to convince people to abandon coal power for other sources of energy.

The Economics of Renewable Energy

Further, the cost of infrastructural development required to develop and set-up renewable energy plants is prohibitive. Aside from its abundance, most countries find coal a cheaper alternative to natural gas and is therefore favourable In most cases, countries prefer a cheaper option that is more economical, because the main goal of any economy is to reduce the cost of production and increase its profits.

Since coal power plants have already been established, there is no need to set up other power plants that are very expensive to the economy.

Therefore, most countries will be reluctant to change from the existing power plants and establish new clean energy power plants such as solar and wind energy. Another factor that discourages use of renewable energy is that coal power requires fewer workers to produce high amounts of energy compared to renewable energy sources.

For example, in the USA, solar energy industries employ more workers compared to coal industries; and respectively However, even with a more substantial workforce in the solar industries compared to coal industries almost twicecoal produces more power than solar energy and wind energy combined Therefore, since coal requires fewer men to produce more power, it is seen as an economical energy production method, and that is why most countries both developed and developing still want to use it.

Overview | 19th Annual Renewable Energy Finance Forum (REFF) Europe | EuromoneySeminars

Why would people want to employ more workers in an industry that produces less power while there is another industry that can produce more power with fewer workers? The continued use of coal is a barrier to renewable energy development, and people need to be sensitised on the negative effects of coal.With shortages of fossil energy, especially oil and natural gas, and heavy biomass energy use occurring in both developed and developing countries, a major focus has developed worldwide on renewable energy .

Welcome to home page for Menlo Energy Economics and EEnergy articles from EEnergy Informer can be found on our news page.. Menlo Energy Economics (MEE) is a consulting firm serving the electric power industry worldwide.

MEE provides a wide range of customized services to clients on a variety of topics. Yet advances in renewable energy and distributed energy resources (DERs) offer lower rates and emissions-free energy while delivering all the grid reliability services that new power plants can, according to RMI’s The Economics of Clean Energy Portfolios report.

THE ECONOMICS OF RENEWABLE ENERGY 1. ENERGY TRANSITIONS The history of industrial civilization is a history of energy transitions. In less developed, agrarian economies, people's basic need for food calories is provided through simple forms of agriculture, which is essentially a method of capturing solar energy for human use.

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Find the latest energy news, views and updates from all top sources for the Indian Energy industry. Tim Buckley Director, Energy Finance Studies, Australasia, Institute for Energy Economics and Financial Analysis; How digitisation of.

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