Rana Adib, Executive Secretary of REN21, shows how the private sector is increasingly looking to decarbonize its activities and invest in renewable energy as a way to lower operating costs, ensure stable energy prices and secure energy supplies.
REN21 held the Eighth International Renewable Energy Conference in Seoul, Republic of Korea (KIREC2019), alongside the GGKP's Seventh Annual Conference (GGKP7), which focused on the theme of “Achieving Global Energy Transformation”. More information about KIREC 2019 can be found at http://kirec2019.kr.
The renewable energy transition is underway. Each year, more renewable power capacity is brought online than fossil fuels and nuclear combined – in 2018, 64% came from renewable energy. Renewables are becoming an ever-present force in the power sector, representing higher shares of installed power and electricity generation each year. In addition, the costs of solar and wind power have fallen dramatically in the last decade, meaning that renewables are already cheaper than fossil fuels in many places.
Decarbonizing the business world is an important goal, as it is responsible for a large portion of global energy use. Commercial and public services use around 9% of our energy, while the industrial sector accounts for 35%. The good news is that some companies are already well on their way.
Around the world, businesses are sourcing more of their electricity from renewables. Whether it is a small, locally owned company or a large multinational corporation, the benefits of switching to renewable electricity are resounding in the private sector. Ambitious corporate targets are also common, as 203 companies have now joined RE100 and committed to 100% renewable electricity targets, up from 130 at the end of 2017.
Every year, companies are signing more agreements to purchase renewable power than in previous years, and have been cited as an important factor in the impressive growth of renewable electricity. In Europe, the RE-Source platform is expanding this growth by facilitating dialogue between buyers and sellers of renewable energy.
Clearly, one of the main reasons is low cost. Plummeting generation costs of solar and wind power in recent years are now even providing a pathway to reduce business expenses through lower-cost energy.
As well as decreasing in cost, renewables are also providing price stability. Electricity is generated from renewables at very low operating costs and is not exposed to fuel prices vulnerable to external pressure such as oil shocks or international conflicts.
Energy security is another common incentive – renewables provide stability of supply that cannot be guaranteed by conventional power plants, which are often increasingly vulnerable to external shocks such as extreme weather events. While an overheated Rhine in Germany may pose cooling problems for a coal power plant, it is unlikely that a fleet of wind turbines will suffer outages all at the exact same time. Simply put, if properly forecasted and planned, renewable generation can be counted upon to ensure energy security
It is clear that renewables in the power sector are surging ahead, yet the energy system is more than just electricity. Renewable energy has continued to struggle in gaining shares in the heating and transport sectors. Currently, renewables supply just under 10% and just over 3% of energy demand in heating and transport, respectively. These shares barely increase year on year. The importance of these sectors is undeniable, as they account for over 80% of final energy demand worldwide. Widespread deployment of renewable energy will be crucial to their decarbonization.
Electrification of heating and transport is expanding and will certainly play a large role in increasing renewable shares. Nevertheless, a wide range of renewable solutions exist for heating, including bioenergy, solar thermal and geothermal heat. In the transport sector, sustainable biofuels and electro-fuels (e.g. hydrogen) produced from electricity will enable more renewable energy usage in road transport, as well as in shipping and aviation. A diverse portfolio of solutions is key to secure a rapid and cost-effective transition.
On top of this imbalance, there is also a disconnect between policies in these three sectors. While renewable power has benefited from regulatory policies in 135 countries in 2018, far fewer countries have support policies for renewables in transport (70, mostly biofuels mandates) and heating (20, down from 21 in the previous year). Ambitious and comprehensive policies are still urgently needed to rapidly decarbonize these sectors and support small and large corporations in increasing renewable energy uptake.
To debate and discuss these important topics, REN21, with the Korean Ministry of Industry, Trade and Energy and the Seoul Metropolitan Government is convening the eighth edition of the Korea International Renewable Energy Conference series. KIREC Seoul 2019 will run from 22-25 October in Seoul, Republic of Korea. Panel discussions will explore how renewables create local value chains and stimulate economic development, how cities and citizens are pushing renewable energy deployment, emerging innovative large- and small-scale business models and mechanisms, among many other topics. For the first time, the conference is co-hosted by a national and municipal government, ensuring that the views and opportunities of cities, citizens and small businesses are uncovered and discussed.
The renewable energy transition is already delivering various advantages to companies and individuals around the world. Many in the private sector have identified it as the most sustainable, modern and cost-effective option to decarbonize their operations. Businesses of all sizes would benefit by taking advantage of these promising opportunities to lower their operating costs, ensure stable energy prices, secure their energy supplies and decarbonize their activities to be at the forefront of the energy transition.
More information on the Korea International Renewable Energy Conference – Seoul can be found at http://kirec2019.kr.
For data and analysis on the global status of renewable energy, visit http://ren21.net/gsr.