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=== Global rivalries ===
=== Global rivalries ===
Global rivalries have a contribution to the driving forces of the economics behind the renewable energy transition. Competition to reach ultimate efficiency with renewable energy is driving countries to compete with one another. Technological innovations developed within a country has the potential to become an economic force.<ref>Scholten, D., Criekemans, D., & de Graaf, T. V. (2020). An Energy Transition Amidst Great Power Rivalry. Journal of International Affairs, 73(1), 195–203.  </ref> In Germany, the country realized to achieve this, policy would go hand in hand with economics. Policies reflect the economy, which for the economy of the country, it would need to have strong policies in place to support the transition to renewable energy. With economic growth being a priority, renewable energy transition policies would strengthen the transition status.<ref>{{Cite journal|last=Leipprand|first=Anna|last2=Flachsland|first2=Christian|last3=Pahle|first3=Michael|date=2017-07-03|title=Energy transition on the rise: discourses on energy future in the German parliament|journal=Innovation: The European Journal of Social Science Research|volume=30|issue=3|pages=283–305|doi=10.1080/13511610.2016.1215241|issn=1351-1610}}</ref>
Global rivalries have contributed to the driving forces of the economics behind the renewable energy transition. Competition to reach ultimate efficiency with renewable energy is motivating countries to improve further and further. Technological innovations developed within a country have the potential to become an economic force.<ref>Scholten, D., Criekemans, D., & de Graaf, T. V. (2020). An Energy Transition Amidst Great Power Rivalry. Journal of International Affairs, 73(1), 195–203.  </ref> In Germany, the country realized to achieve this, policy would go hand in hand with economics. Policies reflect the economy, which for the economy of the country, it would need to have strong policies in place to support the transition to renewable energy. With economic growth being a priority, renewable energy transition policies would strengthen the transition status.<ref>{{Cite journal|last=Leipprand|first=Anna|last2=Flachsland|first2=Christian|last3=Pahle|first3=Michael|date=2017-07-03|title=Energy transition on the rise: discourses on energy future in the German parliament|journal=Innovation: The European Journal of Social Science Research|volume=30|issue=3|pages=283–305|doi=10.1080/13511610.2016.1215241|issn=1351-1610}}</ref>


=== Energy market ===
=== Energy market ===

Revision as of 03:14, 7 April 2020

An aerial view of the Power County wind farm - Power County, Idaho with Nordex N100/2500 turbines.


Renewable energy is any energy source that can be replenished at or above the rate of consumption.[1] Renewable energy sources can include solar, wind, hydrothermal, geothermal, biofuel and many more.[2] Often referred to as clean energy, renewables are known for providing alternatives that have a low contribution of adverse effects on the local environment.[3] This includes reducing greenhouse gas emissions and mitigating climate change.[4]

The two major renewable energy technologies are solar and wind. Solar energy uses the sun’s radiation to generate electricity using photovoltaic arrays. This technology can be mounted to rooftops or buildings in addition to the common solar fields.[5] Additionally, solar energy can include the heating of solar collectors to heat water for different functions within the building. Wind energy harnesses the fluctuations of solar heating on the planet that manifests in the form of wind. Using both vertical and horizontal turbines, the gear box uses this energy and generates electricity.[5]

Transition to Renewable Energy

To fully embrace the renewable energy transition, thorough research has been conducted and there are pivotal areas for growth within the industry. Investing in new technology research is imperative in providing answers for the following topics: efficiency, storage and variability. Regarding photovoltaic technology, efficiency plays a part in its capacity to be a part of the transition. With the ideal efficiency rate being 15%, researchers must invest in building the capacity of this technology.[6] Additionally, energy storage is reliant upon local infrastructure. For energy transportation and flexibility, storage is vital for the renewable energy transition.[7] More specifically with the natural variations of several energy sources such as solar, there must be flexible energy sources to fulfill peak demand. Therefore, there must be an established flexible and inflexible energy structure to account for any variability.[8] Research within the renewable energy technology field is well underway, and while there is always room for improvement, the technology is established.[9]

The renewable energy transition is reliant upon the implementation of renewable energy alternatives to replace fossil fuel and natural gas assets. Companies have achieved this integration of new technologies before, such as Ørsted who will have replaced coal with 99% wind energy by 2025.[10] Large scale implementation strategies of alternatives are being pursued to escalate the transition around the world.[4]

Drivers of Renewable Energy Transition

Many factors are driving the increased need and interest in the renewable energy transition. Among the most important drivers are the acknowledgment of the energy system’s impact on climate change, as well as the diminishing resources that threaten energy security.[citation needed]

Climate change can be attributed to the use of fossil fuel energy and the contribution of carbon dioxide to the atmosphere.[citation needed] This increased level of greenhouse gas emissions creates adverse effects on a changing climate such as increased intensity and frequency of natural disasters.[11] The IPCC has said with high certainty that society has 12 years to complete an entire transition to avoid catastrophic climate change.[12] This reality has motivated the conversation of a renewable energy transition as a mitigation tactic.

The fossil fuel industry faces risk completely separate from the impacts of climate change. Fossil fuels are a limited resource and are at risk of reaching a peak in which diminishing returns will become prevalent.[5] Uncertainty with the supply of this resource questions the security of the industry and the investments in fossil fuel companies. Companies such as Blackrock are evaluating these risks and determining their desire level of involvement with the industry as a result.[13] These driving conversations are motivating organizations to reconsider the future of the energy sector.

Technologies

Wind energy

Wind energy is a viable form of renewable energy, as wind is abundant and inexhaustible. Its use produces no toxic pollution nor greenhouse gas emissions. However, conflicts can arise concerning land use, as the wind turbines use between 30 and 141 acres per megawatt of power output capacity.[14] Some opponents of wind energy argue that the land could be better used, although the land can still be used for grazing livestock, agriculture, and highways.[citation needed] Another issue regarding wind energy concerns the disturbance to wildlife.[citation needed] Many studies have been done to assess the impact of wind turbines on bird and bat populations.[citation needed] The disturbance of wind turbines has been found to be relatively low and does not pose a threat to species population.[15]

Solar energy

Photovoltaic array at the Mesa Verde Visitor and Research Center in Montezuma County, Colorado. This site uses 95% renewable energy and is an example of the renewable energy transition occurring.

Solar energy is another commonly used renewable energy source, but still comes with a few drawbacks. Similarly to wind energy, land use is a concern. However, solar panels can be placed on rooftops and in this case they do not take up space that could have been used for something more productive. Panels can also be placed at low quality locations such as brownfields, abandoned mining land, or existing transportation and transmission corridors. The manufacturing of solar panels also has some negative impacts. [citation needed]They require a significant amount of water to be produced, but dry-cooling technology can reduce water use at manufacturing plants by approximately 90 percent.[16]

Geothermal energy

Geothermal energy is another type of viable and increasingly common renewable energy source. Water is also used in obtaining this type of energy. Depending on the cooling technology used, geothermal plants can require between 1,700 and 4,000 gallons of water per megawatt-hour of energy produced. However, most geothermal plants can use either geothermal fluid or freshwater for cooling, and using the prior has a significantly lesser environmental impact. [citation needed] There are both open-looped and close-looped geothermal systems, and open-loop systems emit small amounts of hydrogen sulfide, carbon dioxide, ammonia, methane, and boron.[17]

Hydroelectric energy

Hydroelectric power includes both massive hydroelectric dams and small run-of-the-river plants. Land use is a topic of concern regarding this energy source, as the size of the reservoir created by a hydroelectric project can vary widely. Flooding land for a hydroelectric reservoir has a significant environmental impact, as it destroys forest, wildlife habitat, agricultural land, and scenic lands[citation needed]. There is also a significant impact on wildlife. Fish and other organisms can be injured and killed by turbine blades.[citation needed] Aside from direct contact, there are also wildlife impacts within the dammed reservoirs and downstream from the facility. Reservoirs will have above average amounts of sediments and nutrients, which can cultivate an excess of algae and lead to eutrophication. In addition, reservoirs are required to release a certain amount of water every year to prevent rivers downstream from drying up, which would be detrimental to those ecosystems.[16]

Biofuel energy

Biofuel can come from cyanobacteria, or blue-green algae. They contain properties that allow them to use photosynthesis to reproduce at 15-30x the rate of other biofuel sources, such as corn[18]. Blue-green algae maintain oil that can be extracted from it and processed into a viable fuel solution that doesn't inhibit fossil fuels.[citation needed]

Biomass energy

Biomass is an organic compound found in plants and animals. This biomass is then burned and a chemical energy is released as heat which then can be generate electricity. [citation needed] Biomass energy is cleaner than coal and other fossil fuels, but burning biomass can greatly impact biodiversity and can contribute to green house gas emissions.[citation needed] With this being said, biomass energy is not a renewable energy source that can be used on a global scale to mitigate climate change, but it can be beneficial in some areas.

Legislation

Current Legislation

Federal Legislation

1. The Energy Policy Act of 2005

This act was enacted by the 109th U.S. Congress and signed into legislation by President George W. Bush on August 8, 2005. It addresses multiple facets of energy production in the United States, including renewable energy, energy efficiency, tax incentives, climate change technology, and several more topics surrounding the use of fossil fuels[19]. This act and its contents can be found here.

2. The Energy Independence and Security Act of 2007

This act was enacted by the 110th U.S. Congress and went into effect December 19th, 2007. The primary goals of this act are to:

  • move the United States toward greater energy independence and security;
  • increase the production of clean renewable fuels;
  • protect consumers;
  • increase the efficiency of products, buildings, and vehicles;
  • promote research on and deploy greenhouse gas capture and storage options;
  • improve the energy performance of the Federal Government; and
  • increase U.S. energy security, develop renewable fuel production, and improve vehicle fuel economy[20].

Three key provisions are also included: the Corporate Average Fuel Economy Standards, the Renewable Fuel Standard, and the appliance/lighting efficiency standards[21]. This act and its contents can be found here.

3. Executive Order 13423

This executive order, "Strengthening Federal Environmental, Energy, and Transportation Management," was signed by President George W. Bush on January 24, 2007. This order instructs Federal agencies to "conduct their environmental, transportation, and energy-related activities under the law in support of their respective missions in an environmentally, economically and fiscally sound, integrated, continuously improving, efficient, and sustainable manner,"[22]. The order sets goals in these areas:

  • energy efficiency
  • acquisition
  • renewable energy
  • toxic chemical reduction
  • recycling
  • sustainable buildings
  • electronics stewardship
  • fleets
  • water conservation

This order and its contents can be found here.

4. Executive Order 13514

This executive order, "Federal Leadership in Environmental, Energy, and Economic Performance," was signed by President Barack Obama on October 5, 2009. This order builds off of Executive Order 13423 and expands on the energy reduction and environmental performance requirements for Federal agencies that were identified in this previous order. Its goal is stated as follows: "to establish an integrated strategy towards sustainability in the Federal Government and to make reduction of greenhouse gas emissions a priority for Federal agencies." This order set forth several deadlines for Federal agencies to meet in order to achieve the greenhouse gas reduction goals outlined[23].

This executive order was revoked by Executive Order 13693, signed into office by President Barack Obama on March 19, 2015. This order set new goals to be met by Federal agencies in regard to greenhouse gas emission reduction, along with other environmental conservation efforts[24]. However, this executive order was revoked by Executive Order 13834, signed by President Trump on May 22, 2018[25].

5. Presidential Memorandum: Federal Leadership on Energy Management

This Presidential Memorandum was issued by President Barack Obama on December 5, 2013. This directive established new goals for renewable energy as well as new energy management practices. The Memorandum set a new renewable energy use target, with the goal of 20% of electric energy consumed by Federal agencies to be derived from renewable sources. It also addresses building performance and energy management, and touches on a few other topics related to renewable energy[26].

6. The President's Climate Action Plan of 2013

This plan was first created in 2007 by President Barack Obama and was updated every two years afterwards until 2013. This plan began with an outline on "Cutting Carbon Pollution in America." This section describes plans to cut emissions from power plants and how to promote leadership in renewable energy, along with several other topics related to decreasing carbon dioxide emissions across several sectors. There are two other sections (Prepare the United States for the Impacts of Climate Change, Lead International Efforts to Address Global Climate Change) that, while integral to the conversation regarding climate change, do not directly address renewable energy[27].

Economic Aspects

Business models

Economic driving forces in the renewable energy transition take multiple approaches. Businesses that have joined the renewable energy cause do so by relying on business models. The need for business models, when dealing with the economics of the renewable energy transition, are crucial due to the lack of concrete research done in this area. [citation needed] These models show projections of marginal costs, efficiency, and demand in different periods of time.[28] Business models are financial assistants that help guide businesses, companies, and individuals looking to get involved.

Global rivalries

Global rivalries have contributed to the driving forces of the economics behind the renewable energy transition. Competition to reach ultimate efficiency with renewable energy is motivating countries to improve further and further. Technological innovations developed within a country have the potential to become an economic force.[29] In Germany, the country realized to achieve this, policy would go hand in hand with economics. Policies reflect the economy, which for the economy of the country, it would need to have strong policies in place to support the transition to renewable energy. With economic growth being a priority, renewable energy transition policies would strengthen the transition status.[30]

Energy market

The energy market, in relation the economics behind the renewable energy transition, is its insurance policy. In the past, inconsistencies in the renewable energy field had caused skepticism. The increase in returns in the market has changed that perception. Recently, the costs for these energies have been reduced dramatically. For solar and wind power, the costs have dropped up to 60 to 80 percent.[31]

Economic players

Heating industry

In the renewable energy transition, the heating industry becomes an economic player. The heating industry is an interesting player as it entails many components. [citation needed] When dealing with heat and the transition to renewable resources, the entire area being heated comes into play.[citation needed] When assessing the economic benefits of this transition, the costs are atop of the list of information needed. In order to make this transition in the heating industry costs such as if the costs to install these systems would produce a positive turnout. A system of such was implemented in Denmark that focused on wind power to help contribute to heating.[citation needed] The results of this showed a decrease in heating costs from 132 kWH to roughly 60 to 80 kWH. The results draw economic improvements in this transition by showing more efficiency in the heating industry and an increased value in wind power.[32]

Power systems

Power systems are economic players that take many contributors into account. When looking for economic benefits behind power systems, savings and costs are crucial topics being addressed. A determinant in addressing the costs and savings of power systems is the alternative routes to GHG emissions. Egypt introduced a plan to do so by stopping conventional power plants and converting them over to hybrid and wind farm plants.[citation needed] The results of this were seen to decrease carbon dioxide emissions and save the state up to $14 million dollars.[33]


Social Aspects

Influences

To gather a realistic understanding of the renewable energy transition, influences should be analyzed to understand the scope of the environment and conversation surrounding the transition. One of these influences is that of the oil industry. The oil industry controls the large majority of the world's energy supply and needs as it is the most accessible and available resource we have today.[citation needed] With a history of continued success and sustained demand, the oil industry has become a stable aspect of society, the economy and the energy sector.[citation needed] To transition to renewable energy technologies, our government and economy must address the oil industry and its control of the energy sector.[34]

One way that oil companies are able to continue their work despite growing environmental, social and economic concerns is through lobbying efforts within local and national government systems. Lobbying is defined as to conduct activities aimed at influencing public officials and especially members of a legislative body on legislation[35]

Historically, the climate lobby has been highly successful in limiting regulations on the oil industry and enabling business as usual techniques. From 1988 to 2005, Exxon Mobil, one of the largest oil companies in the world, spent nearly $16 million in anti-climate change lobbying and providing misleading information about climate change to the general public.[36] It is examples such as these, that show the significance of the oil industry as stakeholders within the government. In order for the renewable energy transition to succeed, the oil lobbying should be addressed and met with a strong economic, social and environmental case. The oil industry acquires lots of support through our banking and investment structure.[citation needed] The stabile nature of oil stock throughout history makes it a great option for investors. By investing in the fossil fuel industry, we provide them with financial support to continue with their business ventures.[37] The concept that we should no longer support the industry financially has led to the social movement known as divestment. Divestment is defined asthe removal of your investment capital from stocks, bonds or funds in oil, coal and gas companies for both moral and financial reasons[38]

Banks, investing firms, governments, universities, institutions and businesses are all being challenged with this new moral argument against their existing investments in the fossil fuel industry and many such as Rockefeller Brothers Fund, the University of California, New York City and more have begun making the shift to more sustainable, eco-friendly investments.[39]

Impacts

The renewable energy transition has many benefits and challenges that are associated with it. One of the positive social impacts that is predicted is the use of local energy sources to provide stability and economic stimulation to local communities.[citation needed] Not only does this benefit local utilities through portfolio diversification, but it also creates opportunities for energy trade between communities, states and regions.[40] Additionally, energy security has been a struggle worldwide that has led to many issues in the OPEC countries and beyond. Energy security is evaluated by analyzing the accessibility, availability, sustainability, regulatory and technological opportunity of our energy portfolio. Renewable Energy presents an opportunity to increase our energy security by becoming energy independent and have localized grids that decrease energy risks geopolitically.[41] In this sense, the benefits and positive outcomes of the renewable energy transition are profound.

There are also risks and negative impacts on society because of the renewable energy transition that need to be mitigated. The coal mining industry plays a large part in the existing energy portfolio and is one of the biggest targets for climate change activists due to the intense pollution and habitat disruption that it creates. The transition to renewable is expected to have decrease the need and viability of coal mining in the future.[42] This is a positive for climate change action, but can have severe impacts on the communities that rely on this business. Coal mining communities are considered vulnerable to the renewable energy transition. Not only do these communities face energy poverty already, but they also face economic collapse when the coal mining businesses move elsewhere or disappear altogether.[43] These communities need to quickly transition to alternative forms of work to support their families, but lack the resources and support to invest in themselves. This broken system perpetuates the poverty and vulnerability that decreases the adaptive capacity of coal mining communities.[43] Potential mitigation could include expanding the program base for vulnerable communities to assist with new training programs, opportunities for economic development and subsides to assist with the transition.[44] Ultimately, the social impacts of the renewable energy transition will be extensive, but with mitigation strategies, the government can ensure that it becomes a positive opportunity for all citizens.[45]

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  45. ^ Franklin, Marcus (March 2017). "Reforming Utility Shut-Off Policies as If Human Rights Matter" (PDF).{{cite web}}: CS1 maint: url-status (link)
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