There are some obstacles ahead – but if the world moves in the right direction, the future’s bright for renewable energy. Let’s find out more.
There have been years of build-up – of conferences, government pronouncements, activism and more. But finally, the world seems ready to make a genuine, sustained push to get renewable energy to critical mass.
For example, here in the UK, renewable sources have generated more power than fossil fuels since 2020. Today, even the countries that were lagging are catching up. For example, in the US last year, more electricity was generated using renewable sources than coal for 153 days, compared with only 39 in 2019.
In this article, we’ll look in more depth at the progress we’re expecting to see in 2022, including government intervention, new tech and new markets. Let’s go.
Governments are the catalyst
Governments across the world are leading the way in the move towards renewable energy, believing that private companies do not have enough incentive to do it themselves. This move was embodied by the COP26 conference in Glasgow last autumn, where global leaders pledged to do more to slow climate change, including phasing out coal-fired power stations and ending the financing of coal plants overseas.
COP26 followed on from rafts of legislation from individual governments introducing renewable energy at their own pace. In the UK, we have the overarching target of achieving net zero by 2050, with other pieces of legislation arriving to help get there, such as banning new petrol or diesel car sales by 2030. In the US, the Biden administration returned the US to the Paris Climate Accord and also pledged to achieve net zero by 2050.
There are also individual schemes to incentivise the adoption of renewable energy by consumers, proposed at government level. For example, homeowners in the UK can claim subsidies to switch to cleaner boilers and even heat pumps to heat their homes.
In 2022, expect other governments across the world to introduce similar measures.
Fossil fuels are less attractive
The energy sector is running a two-pronged strategy. The first part is to make renewables more accessible to companies and consumers. The second is making fossil fuels appear less attractive.
There are more factors in 2022 that make fossil fuels undesirable than solely the environmental aspect. For example, Europe is highly reliant on Russia for natural gas – and events in Ukraine show that Russia is not a reliable actor.
There is also the exorbitantly high price for gas which has led to huge spikes in the cost of living. Both of these factors mean public and private organisation are looking more closely at renewables as the way forward.
New technology
You can tell when an industry is about to hit critical mass when a raft of complementary new technologies spring up around it.
In the case of renewables, the most innovative companies are busy designing ways to make it more productive, lower costs and boost its environmental benefits.
For example, stakeholders are coming up with ideas to create a circular economy for renewables, such as recycling EV batteries when they come to the end of their lives. Developers are also creating AI-powered solutions that help businesses and consumers conserve energy.
New markets
The UK was one of the first countries to take renewable energy seriously and start designing legislation to boost it. Renewables like wind power are extremely relevant to the UK because we’re an island surrounded by very windy seas. We have been a world leader for a while, but now, others are catching up.
In the US, the gas-guzzler has long been a symbol of the American way. Leaders have been reluctant to go to bat for renewables as they don’t want to destabilise the big oil and mining industries. However, things are changing. Solar energy has really begun to take hold in the US, and we expect this to continue into 2022.
China is obviously the most significant market that needs to convert to renewables – and gradually, it’s happening. Last year, China announced a new renewable energy project in the desert that will generate 100 gigawatts of wind and solar energy.
The challenge
Of course, moving the world to renewable energy will not be plain sailing. In 2022, there are several challenges that make it difficult.
The first is the energy price crisis that is engulfing most countries in the world, especially in Europe. With gas prices higher than ever and suppliers going out of business on a regular basis, the focus of the energy industry may turn away from renewables and on to more short-term matters. Keeping prices affordable for customers and protecting suppliers may push renewables onto the back burner.
There is also the spectre of Coronavirus. COVID-19 has been everyone’s focus during 2020 and 2021, and we hope it may be over. However, it’s still too early to say for sure. Another surge in cases may slow progress and lead to governments reallocating money elsewhere.
Finally, there’s the challenge of the very thing we’re all doing this for – the climate. In the third quarter of 2021, wind power production in the UK was 17% down compared to the same quarter of 2020, due to a low wind speed. If countries don’t have the necessary weather to generate power, and climate change makes it a trend, it will be necessary to rethink the entire strategy.
We hope the world can overcome these challenges and continue the progress we have made into 2022 and beyond.
Maintaining momentum
In 2022, the momentum behind the worldwide transition to renewable energy is strong and growing. It seems that the US has fully bought into how vital renewable energy is to the future of the planet, and when the US joins in, others follow.
We hope that this time next year, we’ll have more great news to report.