Need for Speed: Addressing Uncertainties in Renewable Energy

“Renewable energy is not just a fix for climate change- it’s also a sign of progress” (World Economic Forum). Progress refers to the economic growth of an individual or a nation. We often hear about the importance of green energy in lowering emissions and the transition from fossil fuels to renewable energy for the future. But why are we still uncertain about renewable energy? If green technologies are the way of the future, why haven’t we seen more growth over the past two decades?

Picture 1 (Managing the risk in renewable energy – Economist Impact).

Picture 1 refers to the irony of having access to energy resources such as solar power, biofuels, hydroelectric, and wind power but still living in the past and fighting over fossil fuels. One of the reasons for still utilizing fossil fuels is that even though Renewables are sustainable, they are not completely reliable as we cannot control when and how much we receive them. For instance, wind turbines rely on wind movement, solar panels need the sun, and hydroelectric engines require rain. The availability of all these natural resources is uncertain and inconsistent.

Another point is that renewable energy is inefficient while developing the same amount of energy as fossil fuels. Therefore, people need to bring some changes in their lifestyle to reduce their energy utilization. People don’t follow the path of green energy because they don’t like to change their way of living and are comfortable with their current lifestyle. We need to make it a part of our culture to have positive results in the future.

One more way to cope with this problem is to build more efficient operations that require more financial investments and time. For example, if we think of a traditional car, we know it’s a benefit of the present which harms our future. However, if we choose to walk more today as a sacrifice of the present, it will have a positive impact on the future. But what about when we have a car that runs on biofuels and doesn’t cause pollution? Well, now we are more motivated to act towards climate change as we are getting the same car at the same price but not causing emissions. This shows that we have a beneficial solution now to safeguard the future. Hence, investing more money and time in new technologies that rely on renewables benefits us more in the present and the future.

If we see the renewable energy scenario on the industrial level, companies are investing more in power plants using renewable fuels than ever before. In 2010, the first-time investment in renewable fuels exceed the investment in new plants using fossil fuels. On the other hand, plants running on renewable fuels such as wind and solar power face many risks. These risks must be managed carefully if the power plants are to stay viable. Renewable energy is highly significant for their business strategy today. The industry faces big challenges in managing its risks. Financial risks are seen as the biggest threats, especially in the early project stages. Plant financials and operators are becoming more cautious. Many are trying to diversify locations to spread the risks of adverse weather or regulation (Managing the risk in renewable energy – Economist Impact).

As mentioned earlier, for plants running on solar or wind energy, weather patterns can pose a big risk. Wildlife destruction is also caused by the production of green energy. Companies are aware of the risks of renewable energy plants but do not always have the tools available to manage them properly. This could hold them back from investing in bigger and more innovative power plants. Even though climate change and public policy increased the demand for renewable energy.

But these all are minor issues as compared to the colossal damage fossil fuels can cause eventually. People are shifting the wind turbines away from the residential areas and working on ways to protect the wildlife.  Shifting to renewable energy would face many economic, political, and technological challenges. But the benefits would outweigh the costs in the long run. Also, economically this shift could result in a huge business opportunity. At the governmental level, knowing that money is the biggest motivator for individuals to accomplish anything, the government might perhaps provide tax relief to those who utilize renewable energy.

There are many obstacles to green energy, but we should be optimistic about our prospects. The production of renewable energy certainly has its limitations. However, it carries long-term benefits that will take over fossil fuels in the future. To integrate a green culture, society also needs a gradual change in its lifestyle. It is high time to realize that green technology is the way forward both economically and environmentally. “It’s time to stop burning our planet, and start investing in the abundant renewable energy all around us”, by ANTÓNIO GUTERRES, United Nations Secretary-General.

REFERENCES:

1. Khalid Khan, Chi Wei Su, Ashfaq U. Rehman, Rahman Ullah, Is technological innovation a driver of renewable energy? Technology in Society, Volume 70, 2022, (https://www.sciencedirect.com/science/article/pii/S0160791X22001853)
2. “Policy uncertainty threatens to slow renewable energy momentum,” 28 August 2014 (Policy uncertainty threatens to slow renewable energy momentum – News – IEA)
3. Chien-Chiang Lee, Shuai Qin, Yaya Li, Does industrial robot application promote green technology innovation in the manufacturing industry? Technological Forecasting and Social Change, Volume 183,2022 (https://www.sciencedirect.com/science/article/pii/S0040162522004164)
4. “Renewable Energy Is The Future. So Why Are We Still Stuck In The Past?”, By Si Wu, May 10, 2018, (Renewable Energy Is The Future. So Why Are We Still Stuck In The Past? (wgbh.org))
5. “Renewable energy – powering a safer future”, United Nations, (Renewable energy – powering a safer future | United Nations)
6. Feature image source: Renewable energy – powering a safer future | United Nations