Introduction

Renewable energy is unquestionably the breakthrough for the energy sector, but the million-dollar
question in everyone's mind is: when will it take the limelight? The Russia-Ukraine crisis has majorly
affected the energy market with soaring prices of energy commodities. Regardless of such challenges, the
year 2022 noticed a rise of 2% and simultaneously global energy generated through coal has seen a
growth of 1.5% as per the Energy Market Report 2023.

6 billion people, or almost 80% of the world's population, depend on fossil fuel imports from other
nations, making them susceptible to geopolitical shocks and crises. These nations are net importers of
fossil fuels.

On the other hand, renewable energy sources are accessible worldwide and have not yet reached their full
potential. By 2050, renewable energy sources can and should provide 90% of the world's power,
according to estimations from the International Renewable Energy Agency (IRENA).

Renewable energy sources provide a means of escaping reliance on imports, diversifying national
economies, shielding them from the volatile price fluctuations of fossil fuels, and promoting equitable
economic growth, job creation, and poverty reduction.

1 Current State of Renewable Energy

The Russia-Ukraine crisis particularly has hit the European countries at a different level compared to
other nations due to their dependency on Russian energy commodities, which has prompted the
deployment of numerous policies and regulatory changes aimed at renewable market development.

As per International Energy Agency (IEA) Renewable Energy Market Update, Outlook for 2023 and
2024, global renewables installed capacity has increased by 13% in 2022, among all the renewables, Solar
PV witnessed a record with a rise of 35% in capacity compared to 2021. In 2022, the install capacity of
global renewables stands at an impressive 340 GW.

The Paris Agreement's goal is "to avoid dangerous climate change by limiting global warming to well
below 2°C and pursuing efforts to limit it to 1.5°C." The connection between Paris agreement 's goal and
renewable energy is that, by adopting the Paris Agreement, the countries are bounded to minimize carbon
emissions and other greenhouse gases, to tackle climate change and it can be achieved with certain
strategies and implement renewable energy sources in power generation sector is one of the strategies.
Source: IRENA, Global power generation mix and installed capacity by energy source: Planned Energy Scenario and 1.5°C
Scenario in 2020, 2030 and 2050, https://www.irena.org/Publications/2023/Jun/World-Energy-Transitions-Outlook-2023

According to International Renewable Energy Agency (IRENA) World Energy "Transitions Outlook
2023" Report, it is anticipated that the portion of renewables installed capacity to grow up to 68% by
2030 and 91% by 2050 as shown in the pie chart below, of the total global electricity generation.

If we try to break down the renewables installed capacity which is expected to grow up to 91% by 2050,
solar PV is expected to lead the capacity followed by offshore wind power. Since to achieve the limit of
1.5°C scenario as shown in the bar graph below, the coal power generating plant has to be discontinued
but there might be still power plants running on natural gas.
2 Rationale for Transitioning to Renewable Energy
Cheaper coal, oil, and gas prevented the global deployment of renewable energy, even in the face of calls
for a reduction in fossil fuels starting in the 1980s. However, the cost of solar and wind power dropped
significantly between 2010 and 2019, making them the most affordable alternative for new installations in
many places. Furthermore, enhanced energy security is another benefit of renewable energy sources,
which is particularly crucial now that Russia is threatening to invade Ukraine in 2022. Other advantages
of renewable energy include increased employment rates, the growth of industry, better health, and easier
access to energy. Of course, decarbonisation and the climate are the main advantages of the current shift
away from fossil fuels. To cover times when renewable energy sources like solar or wind power cannot be
relied upon, this needs to be bolstered by enhanced energy storage.

More than just switching to a renewable energy mix instead of sticking with fossil fuels is involved in the
energy transition away from fossil fuels and towards renewables.

First, efficiency is a concern, as renewable energy must be able to compete with conventional energy
sources. With the recent developments, this is now a more feasible idea because new renewable energy
sources like solar, wind, and lithium-ion batteries are less expensive than fossil fuels.

Electrification is another important factor in the energy transition and the move towards decarbonization.
Decarbonization requires grid stability and resilience, which is being aided by digitalization that can assist
with power plant management and smart grids. Energy storage is another important factor in the transition
to provide a reliable resource through a joined-up energy mix.

3 Major Challenges in Renewable Energy

Intermittency and Variability: The weather and time of day can cause fluctuations in the use of
renewable energy sources. Because of this intermittency, grid stability is threatened, and efficient energy
storage technologies are required to store extra energy during periods of high production for usage during
periods of low generation.

Cost and Economics: Although the cost of renewable energy has dropped dramatically over time, initial
capital expenditures are still rather substantial. To promote wider adoption, renewable energy sources
must also have a levelized cost of electricity (LCOE) that is competitive with that of fossil fuels.
Reducing costs requires economies of scale and ongoing technological breakthroughs.

Infrastructure and Grid Integration: To connect isolated renewable resources to major cities,
transmission networks must be expanded as part of the massive infrastructure development needed for the
shift to renewable energy. For seamless integration, current grids must be upgraded to provide
bidirectional power flow and balance supply and demand.

Public Acceptance and Policy Support: Because of worries about potential environmental effects, noise
pollution, and aesthetic effects, renewable energy projects frequently encounter resistance from the so-
called NIMBY (Not in My Backyard) movement. Moreover, regulatory obstacles and contradictory
government policies may impede the expansion of renewable energy. Overcoming these obstacles
requires solid policy frameworks and ensuring public approval.

4 Renewable Energy Consumption Trends

Four trends will shape the world's energy landscape in the future: the usage of low-carbon hydrogen
is growing, the importance of hydrocarbons is dropping, renewable energy is expanding quickly, and
electrification is rising.
Renewable energy consumption more than doubles from 2020 to 2050, according to the report, due to
government policies. On the other side, it is anticipated that coal use will gradually decrease between
2020 and 2050, even if coal will still play a big role in the energy mix.

The reference case predicts that almost all of the increase in electricity generation in the OECD regions
after 2020 will come from renewables, especially solar and wind, which will also displace a growing
portion of the current non-renewable, mostly fossil fuel-based, sources.

5 Conclusion and Recommendations

The majority of the electricity generating industry comes from conventional sources, which emit toxic
pollutants that seriously impact the ecosystem. As a result, countries are installing renewable energy
power plants and employing various strategies to combat these issues.

Based on study by BP 2023 Energy Outlook, it is projected that by 2030, renewable energy would
account for 68% of worldwide power capacity, and by 2050, that percentage is likely to rise to 94%.
Reference:

1. https://www.irena.org/-
/media/Files/IRENA/Agency/Publication/2018/Apr/IRENA_Report_GET_2018.pdf
2. https://www.sciencedirect.com/science/article/pii/S2211467X19300082
3. https://www.bp.com/content/dam/bp/business-sites/en/global/corporate/pdfs/energy-
economics/energy-outlook/bp-energy-outlook-2023.pdf