🦖Environmental Politics and Policy Unit 8 – Energy Policy: Transitioning to Renewables

Key Concepts and Definitions

• Energy policy encompasses the laws, regulations, and incentives that govern the production, distribution, and consumption of energy
• Renewable energy sources include solar, wind, hydro, geothermal, and biomass which can be replenished naturally
• Fossil fuels consist of non-renewable sources such as coal, oil, and natural gas formed from the remains of ancient organisms
• Greenhouse gases (GHGs) trap heat in the atmosphere contributing to climate change with carbon dioxide (CO2) being the most significant
• Energy efficiency involves using less energy to perform the same task or service reducing overall consumption
• Decarbonization refers to the process of reducing carbon emissions from energy systems to mitigate climate change
  • Involves transitioning away from fossil fuels towards low-carbon or carbon-neutral energy sources
  • Requires changes in energy production, distribution, and consumption patterns
• Energy security ensures reliable access to sufficient, affordable, and sustainable energy supplies

Historical Context of Energy Policy

• Early energy policies focused on ensuring access to cheap and abundant fossil fuels to support industrialization and economic growth
• Oil crises of the 1970s (1973 and 1979) exposed vulnerabilities of relying on foreign oil imports prompting interest in energy independence
• Growing awareness of environmental impacts of fossil fuels (air pollution, acid rain) led to regulations such as the Clean Air Act in the US
• Climate change concerns emerged in the 1990s with the Kyoto Protocol (1997) setting international targets for GHG emissions reductions
• Renewable energy gained traction in the early 2000s as costs declined and policies supported deployment (feed-in tariffs, renewable portfolio standards)
  • Germany's Energiewende (energy transition) launched in 2010 to phase out nuclear power and shift towards renewables
  • Paris Agreement (2015) set global goal to limit warming to well below 2°C above pre-industrial levels
• Falling costs and improved performance have made wind and solar power cost-competitive with fossil fuels in many regions

Current Energy Landscape

• Fossil fuels (coal, oil, natural gas) still dominate global energy supply accounting for around 80% of primary energy consumption
• Renewable energy is the fastest-growing energy source with wind and solar leading the expansion
  • Wind power capacity reached 743 GW globally in 2020 with China, US, and Germany as top producers
  • Solar PV capacity reached 714 GW globally in 2020 with China, US, and Japan as top producers
• Hydropower is the largest renewable electricity source providing around 16% of global electricity generation
• Nuclear power provides around 10% of global electricity but faces challenges of high costs, safety concerns, and waste management
• Energy demand is projected to grow by around 50% by 2050 driven by population and economic growth mainly in developing countries
• Electrification of transport, heating, and industry is a key strategy for decarbonization increasing electricity demand
• Energy access remains a challenge with around 770 million people lacking access to electricity globally (mostly in sub-Saharan Africa)

Renewable Energy Technologies

• Solar photovoltaics (PV) convert sunlight directly into electricity using semiconductor materials (silicon)
  • Can be deployed at various scales from rooftop panels to large utility-scale power plants
  • Intermittency and variability of solar output can be managed through energy storage, demand response, and grid integration
• Concentrated solar power (CSP) uses mirrors to concentrate sunlight to generate heat and drive a steam turbine
• Wind turbines convert kinetic energy from wind into electricity using blades to spin a generator
  • Onshore wind is more established and cheaper while offshore wind has higher capacity factors and less land constraints
• Hydropower generates electricity from the flow of water through a turbine in dams or run-of-river systems
• Geothermal power extracts heat from underground reservoirs to generate electricity or provide direct heating
• Bioenergy includes power generation from biomass combustion (wood, crops, waste) and biofuels for transport (ethanol, biodiesel)
  • Raises sustainability concerns around land use, food security, and lifecycle emissions
• Tidal and wave power are emerging technologies that harness the energy of ocean tides and waves but are not yet widely deployed

Policy Instruments for Energy Transition

• Carbon pricing puts a price on GHG emissions through carbon taxes or cap-and-trade systems to incentivize low-carbon technologies
  • Carbon taxes set a fixed price per ton of emissions while cap-and-trade sets a limit on total emissions and allows trading of allowances
• Renewable portfolio standards (RPS) require a certain percentage of electricity to come from renewable sources
• Feed-in tariffs (FITs) provide guaranteed prices for renewable electricity fed into the grid to encourage investment
• Net metering allows consumers with renewable generation (rooftop solar) to sell excess electricity back to the grid
• Subsidies and tax incentives reduce costs of renewable energy technologies and encourage adoption (investment tax credits, production tax credits)
• Research and development (R&D) funding supports innovation and cost reductions in renewable technologies
• Fossil fuel subsidy reform removes subsidies for fossil fuel production and consumption to level the playing field for renewables
• Energy efficiency standards and labeling promote the use of more efficient appliances, buildings, and vehicles

Challenges and Barriers to Adoption

• Intermittency and variability of renewable sources (wind, solar) require flexible and resilient grids and energy storage solutions
  • Grid integration challenges include balancing supply and demand, maintaining stability, and upgrading transmission infrastructure
• High upfront capital costs can deter investment in renewable projects despite falling technology costs
• Lack of policy certainty and consistency can create uncertainty for investors and slow down deployment
• Incumbent fossil fuel industries may resist the transition to protect their interests and lobby against renewable policies
• Social acceptance issues such as "not in my backyard" (NIMBY) attitudes can hinder siting of renewable projects (wind farms, transmission lines)
• Technical and market barriers include lack of standardization, insufficient workforce skills, and market distortions favoring fossil fuels
• Unequal access to financing and limited institutional capacity can constrain renewable energy development in developing countries
• Land use and environmental concerns around large-scale renewable projects (hydropower dams, bioenergy crops) require careful planning and stakeholder engagement

Economic and Social Impacts

• Renewable energy creates jobs in manufacturing, installation, and maintenance estimated at 11.5 million jobs globally in 2019
  • Solar PV is the largest employer with 3.8 million jobs followed by bioenergy and hydropower
• Distributed renewable energy systems (rooftop solar, mini-grids) can provide energy access and socio-economic benefits to rural and remote communities
• Renewable energy can enhance energy security by reducing reliance on imported fossil fuels and exposure to price volatility
• Energy transition can have distributional impacts on regions and communities dependent on fossil fuel industries requiring just transition strategies
  • Retraining and reemployment programs can help fossil fuel workers transition to clean energy jobs
• Renewable energy can reduce air pollution and associated health impacts from fossil fuel combustion (particulate matter, sulfur dioxide, nitrogen oxides)
• Energy efficiency measures can reduce energy bills and alleviate energy poverty improving affordability and comfort
• Decarbonization of energy systems is crucial for meeting climate change mitigation goals and avoiding costly impacts of global warming

Case Studies and Global Perspectives

• Germany's Energiewende has driven rapid growth in renewables (46% of electricity in 2019) while phasing out nuclear power by 2022
  • Feed-in tariffs, priority grid access, and citizen participation have been key success factors
  • Challenges include grid integration, cost allocation, and maintaining industrial competitiveness
• China is the world leader in renewable energy investment and deployment with ambitious targets (1200 GW of wind and solar by 2030)
  • Renewable energy is seen as a strategic industry for economic growth and technological leadership
  • Air pollution and energy security concerns are also drivers of China's energy transition
• United States has diverse renewable energy policies and markets across states with some leading the way (California, Texas, Hawaii)
  • Federal tax credits have been important drivers of wind and solar growth but face uncertain future
  • Proposed Green New Deal would set national targets for 100% renewable energy and decarbonization
• Denmark has achieved high levels of wind power (47% of electricity in 2019) through consistent policies and community ownership models
• Morocco is a leader in renewable energy in Africa with major solar and wind projects to reduce fossil fuel imports and expand energy access
• India has set ambitious renewable energy targets (450 GW by 2030) to meet growing energy demand and address energy poverty
  • Auctions and falling costs have driven rapid growth in solar and wind deployment
  • Integrating large shares of renewables into the grid remains a challenge given infrastructure constraints
• Small island developing states (SIDS) are pursuing renewable energy to reduce costly diesel imports and enhance energy security and resilience