Long-term Policies Necessary to Ensure Renewable Energy Future
Friday, 28 June 2013
Among other good news on the climate change front this week, renewable energy is projected to exceed gas by 2016. According to the International Energy Agency (IEA), by 2016 global electricity generation from wind, solar, hydro and other forms of renewable power will eclipse that from natural gas – and should be double that provided by nuclear plants.
The IEA points to a surge in renewables led by emerging economies such as China, which accounts for 40 percent of the projected global growth in renewables between 2012 and 2018. Although this is positive, we’re not out of the woods yet if we want to avoid the 2 degree Celsius increase threshold that scientists predict could lead to permanent changes to ecosystems. China still relies heavily on coal, and not just for electricity generation. The country also depends on the fossil fuel for steel production and making fertilizers, which generate large amounts of greenhouse gases. Even aggressive expansion of renewables and nuclear power leaves China using coal for up to half of its total energy needs by 2050.
In the U.S., a boom in shale gas production is stunting efforts to expand renewables. European growth of renewables has also slowed. But the new economic powerhouses of China, India and Brazil are leading the charge, which sweetens the overall global renewable picture.
However, don’t fall into the trap of thinking the future is rosier than it seems. On the surface, these projections paint a picture where natural gas fills in for a decade or two while we build a low-carbon future based around renewables. That is certainly a likely scenario, but it requires the support of long-term policies in many countries to encourage sufficient investment in renewable power plants.
The problem is that policy uncertainty leads to building gas-fired plants that have a lifetime of three to four decades. This makes it difficult to phase out fossil fuels on the timescale needed to avoid dangerous global warming, which requires major cuts from 2030 onwards. In fact, the IEA itself warned in its 2011 edition of World Energy Outlook that fossil-fuel plants due to be built over the next five years are already likely to lock the planet into 2°C of warming.
So how can we fix this problem? Energy analysts say we need long-term assurances to investors that renewable plants being built now will deliver a better economic return than those fired by coal or natural gas. It’s a weakness of U.S. President Barack Obama’s climate plan, announced earlier this week, which lacks the long-term targets that could be set if Congress would pass new legislation.
The stakes are high. We need significant changes in existing proposals for policy. Otherwise the chances are slim that we’ll avoid surpassing the 2 degree Celsius increase threshold climatologists warn will alter the lives of billions of people.