Countries around the world have realized the seriousness of the need to increase the capacity of renewable energy sources (RES). Thanks to policy support and favorable economic circumstances, global renewable energy capacity is projected to rise to the level currently held by China, the European Union, India and the United States combined by the end of this decade.
Novi Report on renewable energy sources for 2024published by the International Energy Agency (IEA), indicates that the world can add more than 5,500 gigawatts of new capacity by 2030. The solar sector will account for about 80 percent of this growth, while China is estimated to have approximately 60 percent of total global renewable capacity by the end of the decade.
However, on the way to tripling renewable energy capacity, we face certain challenges. In many developing countries, financing costs remain high, which reduces the economic attractiveness of investment. In addition, the insufficiently developed infrastructure of the electricity grid is a constant problem. Without adequate investments in this segment, there is a risk of increasingly frequent interruptions in the supply of energy from renewable sources, which has already been recorded in countries such as Chile, Ireland and the United Kingdom.
Another challenge is the lack of transparency in RES auctions, which leads to uncertainty among investors due to unclear information. This situation makes planning difficult and reduces interest in investments.
In the solar energy sector, solar panel manufacturers are facing an oversupply in the market, which is causing prices to fall. This leads to reduced profits and losses for producers. On the other hand, the wind turbine sector requires additional investments to avoid supply problems. It is necessary to increase the production capacity of wind turbines, as well as to optimize the processes of transportation and delivery of parts.
In order to overcome the mentioned challenges, one of the key steps is the creation of stable political environments that have clear and long-term goals for the development of RES. Governments should set up transparent and predictable auction mechanisms, which will result in greater security and reduced risk for investors. Many projects are ready and waiting to be connected to the grid, but there remains the problem of grid infrastructure that needs to be developed.
It is also necessary to increase the flexibility of energy systems, which is essential for optimizing the use of RES, because sources such as the sun and wind are variable. In addition, we should work on the development of long-term energy storage, which will store excess energy until the moment when energy is needed. There is also the development of energy management technologies, which allows users to optimize their energy use according to current network conditions. This means that smart devices are activated when energy is cheap and more available, reducing the load on the grid at times of high demand.
In addition to wind and solar energy, it is necessary to encourage innovation in technologies for the development of hydrogen, e-fuels and modern biofuels. It is important to emphasize that, although RES will play a significant role in the industry, transport and building sectors, fossil fuels will continue to dominate, with a share of 80 percent. It is therefore crucial to end fossil fuel subsidies and introduce stronger policies that will reduce their use.
Katarina Vuinac
Source: energetskiportal.rs
