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Renewable Energy Technology

Renewable Energy is any energy source that can be replenished at or above the rate of consumption. [i] Renewable energy sources can include solar, wind, hydrothermal, geothermal, biofuel and many more.[ii] Often referred to as clean energy, renewables are known for providing alternatives that have a low contribution of adverse effects on the local environment.[iii] This includes reducing greenhouse gas emissions and mitigating climate change.[iv]

                     

The two major renewable energy technologies are solar and wind. Solar energy uses the sun’s radiation to generate electricity using photovoltaic arrays. This technology can be mounted to rooftops or buildings in addition to the common solar fields.[v] Additionally, solar energy can include the heating of solar collectors to heat water for different functions within the building.

                     

Wind energy harnesses the fluctuations of solar heating on the planet that manifests in the form of wind. Using both vertical and horizontal turbines, the gear box uses this energy and generates electricity.[vi]

Transition

To fully embrace the renewable energy transition, thorough research has been conducted and there are pivotal areas for growth within the industry. Investing in new technology research is imperative in providing answers for the following topics: efficiency, storage and variability. Regarding photovoltaic technology, efficiency plays a part in its capacity to be a part of the transition. With the ideal efficiency rate being 15%, researchers must invest in building the capacity of this technology.[i] Additionally, energy storage is reliant upon local infrastructure. For energy transportation and flexibility, storage is vital for the renewable energy transition.[ii] More specifically with the natural variations of several energy sources such as solar, there must be flexible energy sources to fulfill peak demand. Therefore, there must be an establish flexible and inflexible energy structure to account for any variability.[iii] Research within the renewable energy technology field is well underway, and while there is always room for improvement, the technology is established.[iv]

                     

The renewable energy transition is reliant upon the implementation of renewable energy alternatives to replace fossil fuel and natural gas assets. Companies have achieved this integration of new technologies before, such as Ørsted who will have replaced coal with 99% wind energy by 2025.[v] Large scale implementation strategies of alternatives are being pursued to escalate the transition around the world. [vi]

Drivers

Many factors are driving the increased need and interest in the renewable energy transition. Among the most important are the acknowledgment of the energy system’s impact on climate change, as well as the diminishing resources that threaten energy security.

Climate change can be attributed to the use of fossil fuel energy and the contribution of carbon dioxide to the atmosphere. This increased level of greenhouse gas emissions creates adverse effects on a changing climate such as increased intensity and frequency of natural disasters.[i] The IPCC has said with high certainty that society has 12 years to complete an entire transition to avoid catastrophic climate change.[ii] This reality has motivated the conversation of a renewable energy transition as a mitigation tactic.

The fossil fuel industry faces risk completely separate from the impacts of climate change. Fossil fuels are a limited resource and are at risk of reaching a peak in which diminishing returns will become prevalent.[iii] Uncertainty with the supply of this resource questions the security of the industry and the investments in fossil fuel companies. Companies such as Blackrock are evaluating these risks and determining their desire level of involvement with the industry as a result.[iv] These driving conversations are motivating organizations to reconsider the future of the energy sector.

Social Aspects

Influences

To gather a realistic understanding of the renewable energy transition, influences should be analyzed to understand the scope of the environment and conversation surrounding the transition. One of these influences is that of the oil industry. The oil industry controls the large majority of the world's energy supply and needs as it is the most accessible and available resource we have today. With a history of continued success and sustained demand, the oil industry has become a stable aspect of society, the economy and the energy sector. To transition to renewable energy technologies, our government and economy must address the oil industry and its control of the energy sector.

One way that oil companies are able to continue their work despite growing environmental, social and economic concerns is through lobbying efforts within local and national government systems. Lobbying is defined as

to conduct activities aimed at influencing public officials and especially members of a legislative body on legislation

Historically, the climate lobby has been highly successful in limiting regulations on the oil industry and enabling business as usual techniques. From 1988 to 2005, Exxon Mobil, one of the largest oil companies in the world, spent nearly $16 million in anti-climate change lobbying and providing misleading information about climate change to the general public. It is examples such as these, that show the significance of the oil industry as stakeholders within the government. In order for the renewable energy transition to succeed, the oil lobbying should be addressed and met with a strong economic, social and environmental case. The oil industry acquires lots of support through our banking and investment structure. The stabile nature of oil stock throughout history makes it a great option for investors. By investing in the fossil fuel industry, we provide them with financial support to continue with their business ventures. The concept that we should no longer support the industry financially has led to the social movement known as divestment. Divestment is defined as

the removal of your investment capital from stocks, bonds or funds in oil, coal and gas companies for both moral and financial reasons

Banks, investing firms, governments, universities, institutions and businesses are all being challenged with this new moral argument against their existing investments in the fossil fuel industry and many such as Rockefeller Brothers Fund, the University of California, New York City and more have begun making the shift to more sustainable, eco-friendly investments.

Impacts

The renewable energy transition has many benefits and challenges that are associated with it. One of the positive social impacts that is predicted is the use of local energy sources to provide stability and economic stimulation to local communities. Not only does this benefit local utilities through portfolio diversification, but it also creates opportunities for energy trade between communities, states and regions. Additionally, energy security has been a struggle worldwide that has led to many issues in the OPEC countries and beyond. Energy security is evaluated by analyzing the accessibility, availability, sustainability, regulatory and technological opportunity of our energy portfolio. Renewable Energy presents an opportunity to increase our energy security by becoming energy independent and have localized grids that decrease energy risks geopolitically. In this sense, the benefits and positive outcomes of the renewable energy transition are profound.

There are also risks and negative impacts on society because of the renewable energy transition that need to be mitigated. The coal mining industry plays a large part in the existing energy portfolio and is one of the biggest targets for climate change activists due to the intense pollution and habitat disruption that it creates. The transition to renewables is expected to have decrease the need and viability of coal mining in the future. This is a positive for climate change action, but can have severe impacts on the communities that rely on this business. Coal mining communities are considered vulnerable to the renewable energy transition. Not only do these communities face energy poverty already, but they also face economic collapse when the coal mining businesses move elsewhere or disappear altogether. These communities need to quickly transition to alternative forms of work to support their families, but lack the resources and support to invest in themselves. This broken system perpetuates the poverty and vulnerability that decreases the adaptive capacity of coal mining communities. Potential mitigation could include expanding the program base for vulnerable communities to assist with new training programs, opportunities for economic development and subsides to assist with the transition. Ultimately, the social impacts of the renewable energy transition will be extensive, but with mitigation strategies, the government can ensure that it becomes a positive opportunity for all citizens.

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Reference List

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[i] https://www.taylorfrancis.com/books/9781315766416/chapters/10.4324/9781315766416-9

[ii] "Notice Renewable Energy: Sources for Fuels and Electricity, Edited by Thomas B. Johansson, Henry Kelly, Amulya K.N. Reddy & Robert H. Williams". Environmental Conservation. 21 (3): 288–288. 1994. doi:10.1017/s037689290003352x. ISSN 0376-8929.

[iii] http://www.bbhub.io/bnef/sites/4/2015/03/UNEP-Frankfurt-School-BNEF-report-20151.pdf

[iv] https://www.tandfonline.com/doi/pdf/10.1080/23311916.2016.1167990?needAccess=true

[v] Energy Systems and Sustainability Chapter 1__xid-813947_1.pdf

[vi] Energy Systems and Sustainability Chapter 1__xid-813947_1.pdf

[i]https://science.sciencemag.org/content/285/5428/687?casa_token=UTzKev1uoUwAAAAA:SIKrM69SqVWktYrjYQJVr7BGaq2pZpHRwrp7sXRJtEy96koBAbHLE_tHLZ-Tog0UAinoib1yLS8yfdU

[ii] http://large.stanford.edu/courses/2017/ph240/huang2/docs/undp-2000.pdf#page=228

[iii] https://pubsonline.informs.org/doi/pdf/10.1287/msom.2019.0789

[iv] http://homes.stat.unipd.it/renatoguseo/sites/homes.stat.unipd.it.renatoguseo/files/RSER-D-15-01228-R1accept.pdf

[v] http://ccsi.columbia.edu/2019/04/15/lessons-learned-from-an-energy-companys-green-transformation/

[vi] https://www.tandfonline.com/doi/pdf/10.1080/23311916.2016.1167990?needAccess=true

[i] http://www.theurbanclimatologist.com/uploads/4/4/2/5/44250401/attributionextremeevents.pdf

[ii] https://www.ipcc.ch/site/assets/uploads/sites/2/2019/05/SR15_SPM_version_report_LR.pdf

[iii] Energy Systems and Sustainability Chapter 1__xid-813947_1.pdf

[iv] https://www.blackrock.com/corporate/investor-relations/larry-fink-ceo-letter