Clean and renewable energy is expanding faster than anyone expected. From delivery vans in Pittsburgh and buses in Milwaukee to cranes at ports around the globe, an energy revolution is underway. Clean energy production is growing faster than anyone anticipated.
An efficient deployment of renewables will allow countries to move away from fossil fuel dependency and fulfill their commitments under the Paris Agreement to limit global warming.
Costs are falling
Solar and wind power have now become cheaper than fossil fuels for the first time ever, according to a World Economic Forum report. Renewable energy could become the cheapest source of power globally by 2050 if renewable technologies continue their momentum, decarbonizing 90 percent of electricity sector emissions while mitigating climate change. Fossil fuels cannot compete due to mining costs for raw materials; solar and wind resources, on the other hand, offer free resources whose costs have decreased as technology improves and demand has grown.
Solar photovoltaic installations costing on average around $68 to produce 1 megawatt hour of electricity each hour currently cost about this much to store; lithium-ion battery prices have seen significant drops as well – both factors dramatically decreasing capital expenses required for renewable energy projects.
By comparison, building a new coal plant costs $41 per megawatt-hour while operating expenses (such as purchasing mined fuel) average around $26 per megawatt-hour once operational.
Renewable energy’s reduced costs have revolutionized the landscape. According to a Lazard study, its lifetime cost of ownership (LCOE) now rivals coal’s and costs associated with new projects are declining at an astounding pace.
Steve Uerling, a mechanical engineer in Tulsa, Oklahoma is taking advantage of renewables’ affordability to invest in greener futures for themselves and their families. His home is powered by rooftop solar array and heat pump; and he drives an electric car. While Uerling doesn’t believe in carbon taxes or subsidies for renewables, his decisions are guided by their financial viability.
Cost savings have led to rapid progress towards renewables adoption, breaking down many of their barriers rapidly. Long distance power distribution issues are being mitigated through smarter grids; as battery technology improves so will flexibility of renewable systems meet fluctuating electricity demands at different times and places.
Technology is improving
Solar and wind power technologies for greener future are rapidly progressing, offering greater electricity generation costs that rival that from fossil fuels in many locations – potentially speeding the trend toward electrified transport, buildings and green hydrogen production. Battery costs have also declined rapidly which will further fuel electrification trends for transport, buildings and green hydrogen production.
Some naysayers of renewable energy often point out its political and environmental benefits; however, the reality is that renewables will soon be far less costly to produce power from water, sun, and wind than coal based electricity production. This trend won’t change through taxes or subsidies – it will simply result from scale economies and innovation which propel its rapid adoption.
Renewables can also help stabilize energy prices and decrease our reliance on unstable, unpredictable and unsustainable fossil fuels. Being produced locally makes renewables more resistant to geopolitics, price spikes and supply chain disruption – as well as helping prevent climate change disasters they also provide employment in local communities.
However, transitioning the world to renewables will not be simple or effortless; it requires millions of households, schools, businesses and transport centers making a transitional change to how they consume energy – this process will take time as these organizations upgrade infrastructure and implement alternative power sources.
Renewable technologies are rapidly progressing. Battery storage systems enable renewables’ energy to be stored until demand peaks, providing increased flexibility and reduced costs per peak kilowatt.
Another key element is ensuring an adequate supply of components and materials required to produce renewables, such as minerals needed to create wind turbines and electricity networks, batteries and other energy storage devices, and energy-conserving solutions such as energy storage systems.
These advances are creating incredible opportunities, particularly in developing nations. Unfortunately, around 2.6 billion people still don’t have access to clean fuel and electricity for cooking and lighting purposes – putting families into poverty, children unable to attend school, and people exposed to toxic fumes while cooking on open fires at risk. Breaking this vicious cycle with universal energy access will power growth, transform lives, and unlock untold potential.
Storage is a big issue
15 years ago, solar panels and wind turbines were seen as niche technologies too costly for mainstream use. But clean energy became much less costly than originally anticipated: lithium-ion battery cell costs declined 97% within 15 years, making it feasible to construct infrastructure needed to support greener futures.
But the next major step lies in figuring out how to store that electricity. Unfortunately, storage systems aren’t very energy efficient, making comparisons between systems difficult. A good solution would deliver high round-trip efficiency while remaining scalable; also working well regardless of its source – renewable or fossil.
Energy storage companies are harnessing physical principles familiar from high school physics in order to harness potential energy by lifting blocks in the air, compressing water or air, heating things up, or banking potential energy through compressing things together and heating things. Furthermore, renewable chemical processes are replacing fossil fuels in giant batteries made up of molten salt or volcanic rock for use instead.
Big utilities are taking notice. Xcel Energy issued a request for proposals for a large solar project coupled with storage capabilities; while PNM plans on replacing its coal plant with solar+storage. Energy storage will become crucial if renewables are to replace fossil fuels in the electricity grid, which operates 24/7.
Electric vehicles will also play an integral part in decarbonization efforts. Their production will drive demand for natural resources such as aluminum, copper and lithium which are necessary for battery manufacturing as well as upgrades needed to distribute electricity through transmission networks and buildings upgrades. Furthermore, electrification may increase renewables use for heating buildings and industrial processes making them less dependent upon natural gas and oil for heat.
Energy revolution faces several obstacles and will require considerable political will. Some object on economic grounds while others fear wind and solar farms blotting up their landscapes. Economic arguments are readily refutable while polls indicate increasing support for renewables; the real test may lie in whether transition to green economy can withstand political opposition from fossil-fuel companies that provide enormous sums to Republican candidates.
The future is electric
Tulsa, Oklahoma was once home to one of America’s greatest oil boomtowns; today its former oil boomtown hosts workers assembling electric school buses at factories and installing solar panels on century-old Tudor homes, installing minor league baseball team the Tulsa Drillers; drivers using Teslas or F-150 Lightnings pull up at charging stations powered by green energy that are helping reduce carbon emissions in this historic boom town. As costs and technology advance further, EV adoption will quickly grow exponentially and eventually change how people travel.
EVs may still be new on the scene, but their market is expected to follow a similar path as other disruptive technologies like color TVs, smartphones and LED lights: an initial period of indecision followed by rapid growth before mass adoption as costs decreased and technology improved.
governments have played an instrumental role in driving up electric vehicle (EV) sales. Europe recently adopted stringent emissions standards that will outlaw internal combustion engine cars by 2035; California and other states offer generous tax credits and subsidies that make purchasing an EV easier; additionally, Biden administration announced an ambitious 50 percent EV target by 2030 with significant investments made to charging infrastructure.
But electric vehicles will require more than just massive federal investments; to reap their full benefits and cost savings, consumers will need to change their habits – such as parking in shaded spots, charging their vehicles overnight and avoiding driving during the hottest hours of day – in other words adopt a “car as a service” model.
Major utilities have seen this opportunity and are taking swift action by investing in electric vehicle (EV) charging networks and low-carbon solutions such as battery storage. For instance, Xcel Energy recently issued an EV Charging Request for Proposals which seeks to pair renewables with up to 600MWh of energy storage in lieu of retiring coal plants, while NRG is replacing Illinois coal plants with solar power combined with battery storage solutions – projects which will ensure that EVs receive cheap yet clean power while simultaneously sending the message that internal combustion engines have had their day.
