RENEWABLES 2023 GLOBAL STATUS REPORT

RENEWABLES
IN ENERGY DEMAND

Topic: Challenges & Opportunities

This topic bundles the Challenges & Opportunities sections accross energy demand sectors of this publication. Expand by clicking on one of the topics.



Buildings in Focus | Challenges and Opportunities in Buildings

Challenges and Opportunities for the Uptake of Renewables in Buildings

Challenges

Because many heating systems are stand-alone units (e.g., individual fossil gas boilers or oil furnaces), replacing them would require significant investment, time and workforce, especially in the case of multi-dwelling housing such as large apartment buildings.

Implementing renewable-based district heating systems requires high upfront investment, which is often not feasible for residents without government support and incentives.

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The number of engineers and installers currently available to replace household energy systems with new systems is insufficient to meet the workforce levels needed to achieve climate goals.

Modern “clean cooking” still depends largely on the use of traditional bioenergy and fossil gas fuels, and applications of electrified technologies are limited mostly to developed countries.

Incumbent fossil fuel companies continue to invest heavily in public relations campaigns designed to slow the transition to renewables in buildings.

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Opportunities

The use of renewables in buildings would help reduce heating and other energy costs – especially for low-income households – and limit the vulnerability of households to fossil fuel price swings.

Greater electrification of buildings would contribute to demand response and system flexibility, helping to achieve higher levels of renewable energy integration.

In regions with high levels of new construction, designing efficient and renewable heating systems (and buildings) would help to avoid costly renovations or upgrades at a later stage.

In regions with high shares of existing building stock, there is an opportunity to greatly improve the efficiency of these buildings and to lower energy bills for consumers.

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Leapfrogging via renewables is a way to provide energy access to those currently without access to modern energy sources.

New business models (such as heat-as-a-service) provide an opportunity for consumers to avoid upfront expenses associated with changing their heating systems.

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  1. International Energy Agency (IEA), “World Energy Balances 2020: Extended Energy Balances,” August 2022, https://www.iea.org/data-and-statistics/data-product/world-energy-balances, all rights reserved, as modified by the Renewable Energy Policy Network for the 21st Century (REN21).1
  2. Ibid.2
  3. Ibid.3
  4. Ibid.4
  5. Organisation for Economic Co-operation and Development (OECD), “Decarbonising Buildings in Cities and Regions,” June 2022, https://read.oecd-ilibrary.org/urban-rural-and-regional-development/decarbonising-buildings-in-cities-and-regions_a48ce566-en.5
  6. IEA, op. cit. note 1.6
  7. Ibid. 7
  8. IEA, “Buildings – Analysis,” September 2022, https://www.iea.org/reports/buildings.8
  9. Ibid.9
  10. Figure 3 from IEA, op. cit. note 1.10
  11. Ibid.11
  12. Figure 4 from Ibid.12
  13. IEA, op. cit. note 1.13
  14. Ibid.14
  15. Ibid.15
  16. Ibid.16
  17. IEA et al., “Tracking SDG 7: The Energy Progress Report 2022,” 2022, https://trackingsdg7.esmap.org/data/files/download-documents/sdg7-report2022-full_report.pdf; L. Cozzi et al., “For the First Time in Decades, the Number of People Without Access to Electricity Is Set to Increase in 2022 – Analysis,” IEA, November 3, 2022, https://www.iea.org/commentaries/for-the-first-time-in-decades-the-number-of-people-without-access-to-electricity-is-set-to-increase-in-2022.17
  18. IEA et al., op. cit. note 17.18
  19. Cozzi et al., op. cit. note 17; Empresa de Pesquisa Energética, “Brazilian Energy Balance – Year 2021,” 2022, https://www.epe.gov.br/sites-pt/publicacoes-dados-abertos/publicacoes/PublicacoesArquivos/publicacao-675/topico-638/BEN2022.pdf. 19
  20. See Box 2 in “Global Overview” in REN21, “Renewables 2022 Global Status Report,” 2022, www.ren21.net/gsr-2022.20
  21. Figure 5 from IEA, “Heating – Analysis,” 2022, https://www.iea.org/reports/heating.21
  22. IEA, op. cit. note 1.22
  23. IEA, “Renewables 2022 – Analysis,” 2022, https://www.iea.org/reports/renewables-2022.23
  24. IEA, op. cit. note 1.24
  25. IEA, op. cit. note 21.25
  26. IEA, “Heat Pumps – Analysis,” 2022, https://www.iea.org/reports/heat-pumps; IEA, op. cit. note 1.26
  27. IEA, op. cit. note 1. 27
  28. IEA, op. cit. note 1; IEA, op. cit. note 21. 28
  29. IEA, “Energy Efficiency 2022 – Analysis,” 2022, https://www.iea.org/reports/energy-efficiency-2022.29
  30. IEA, op. cit. note 1; B. Naran, R. Padmanabhi and P. Rosane, “Tracking Incremental Energy Efficiency Investments in Certified Green Buildings,” Climate Policy Initiative, December 16, 2021, https://www.climatepolicyinitiative.org/publication/incremental-investments-in-energy-efficiency-in-green-buildings.30
  31. Ibid.31
  32. J. Psaropoulos, “Is Ukraine War Speeding Europe's Transition to Renewable Energy?” Al Jazeera, November 6, 2022, https://www.aljazeera.com/news/2022/11/6/is-ukraine-war-speeding-europes-transition-to-renewable-energy; IEA, “Executive Director Rebuts Three Myths About Today's Global Energy Crisis,” September 7, 2022, https://www.iea.org/news/executive-director-rebuts-three-myths-about-today-s-global-energy-crisis. Snapshot: Europe based on the following sources: Eurostat, “Energy Balance Visualisation Tool,” https://ec.europa.eu/eurostat/cache/infographs/energy_balances/enbal.html, accessed November 14, 2022; IEA, “A 10-Point Plan to Reduce the European Union's Reliance on Russian Natural Gas – Analysis,” March 2022, https://www.iea.org/reports/a-10-point-plan-to-reduce-the-european-unions-reliance-on-russian-natural-gas; G. Zachmann, G. Sgaravatti and B. McWilliams, “European Natural Gas Imports,” Bruegel, https://www.bruegel.org/dataset/european-natural-gas-imports, accessed November 14, 2022; European Commission, “REPowerEU: Joint European Action for More Affordable, Secure and Sustainable Energy,” May 18, 2022, https://eur-lex.europa.eu/resource.html?uri=cellar:fc930f14-d7ae-11ec-a95f-01aa75ed71a1.0001.02/DOC_1&format=PDF; B. Claeys, J. Rosenow and M. Anderson, “Is REPowerEU the Right Energy Policy Recipe to Move Away from Russian Gas?” Euractiv, June 27, 2022, https://www.euractiv.com/section/energy/opinion/is-repowereu-the-right-energy-policy-recipe-to-move-away-from-russian-gas; Odyssee-Mure, “EU Heating Energy | Heating Energy Consumption by Energy Source,” https://www.odyssee-mure.eu/publications/efficiency-by-sector/households/heating-energy-consumption-by-energy-sources.html, accessed November 14, 2022; D. Gibb et al., “Turning Off the Gas: Stronger and Coherent EU Policy to Accelerate the Fossil Gas Phaseout,” Regulatory Assistance Project, October 18, 2022, https://www.raponline.org/knowledge-center/turning-off-gas-stronger-coherent-eu-policy-accelerate-fossil-gas-phaseout; Buildings Performance Institute of Europe, “EPBD Recast: New Provisions Need Sharpening to Hit Climate Targets,” January 20, 2022, https://www.bpie.eu/publication/epbd-recast-new-provisions-need-sharpening-to-hit-climate-targets.32
  33. Ember, “EU's Record Growth in Wind and Solar Avoids €11bn in Gas Costs During War,” October 18, 2022, https://ember-climate.org/press-releases/eus-record-growth-in-wind-and-solar-avoids-e11bn-in-gas-costs-during-war.33
  34. IEA, op. cit. note 23; BloombergNEF, “Energy Transition Factbook 2022,” September 2022, https://assets.bbhub.io/professional/sites/24/BloombergNEF-CEM-2022-Factbook.pdf.34
  35. IEA, op. cit. note 23.35
  36. Bnamericas, “Ministry of Energy Launches National Heat and Cold Strategy,” June 24, 2021, https://www.bnamericas.com/en/news/ministry-of-energy-launches-national-heat-and-cold-strategy; Government of the UK, “Heat and Buildings Strategy,” October 29, 2021, https://www.gov.uk/government/publications/heat-and-buildings-strategy; Sustainable Energy Authority of Ireland, “National Heat Study,” https://www.seai.ie/data-and-insights/national-heat-study, accessed October 29, 2022.36
  37. N. Kurmayer, “Netherlands to Ban Fossil Heating from 2026, Make Heat Pumps Mandatory,” Euractiv, May 17, 2022, https://www.euractiv.com/section/energy-environment/news/netherlands-to-ban-fossil-heating-by-2026-make-heat-pumps-mandatory.37
  38. L. Sunderland and D. Gibb, “Taking the Burn Out of Heating for Low-Income Households,” Regulatory Assistance Project, December 1, 2022, https://www.raponline.org/knowledge-center/taking-burn-out-of-heating-low-income-households.38
  39. D. Gibb, S. Thomas and J. Rosenow, “Metrics Matter: Efficient Renewable Heating and Cooling in the Renewable Energy Directive,” Regulatory Assistance Project, September 6, 2022, https://www.raponline.org/knowledge-center/metrics-matter-efficient-renewable-heating-cooling-renewable-energy-directive.39
  40. European Parliament, “Renewable Energy Directive – Amendments Adopted in Sept 2022,” September 14, 2022, https://www.europarl.europa.eu/doceo/document/TA-9-2022-0317_EN.pdf.40
  41. R. Lowes et al., “A Policy Toolkit for Global Mass Heat Pump Deployment,” Regulatory Assistance Project, November 14,
    2022, https://www.raponline.org/knowledge-center/policy-toolkit-global-mass-heat-pump-deployment. 41
  42. Chinese Ministry of Housing and Urban-Rural Development, “14th Five-Year' Building Energy Efficiency and Green Building Development Plan,” 2021, www.mohurd.gov.cn/gongkai/fdzdgknr/zfhcxjsbwj/202203/20220311_765109.html.42
  43. IEA, “World Energy Outlook 2022,” October 2022, https://www.iea.org/reports/world-energy-outlook-2022.43
  44. REN21 Policy Database. See Reference Table R1 in the GSR 2023 Data Pack, www.ren21.net/gsr2023-data-pack.44
  45. G. De Clercq, “France Ends Gas Heaters Subsidies, Boosts Heat Pumps in Bid to Cut Russia Reliance,” Reuters, March 16, 2022, https://www.reuters.com/world/europe/france-ends-gas-heaters-subsidies-boosts-heat-pumps-bid-cut-russia-reliance-2022-03-16.45
  46. B. Epp, “Fund of EUR ٣ Billion for Decarbonising German District Heating,” Solar Thermal World, August 30, 2022, https://solarthermalworld.org/news/fund-of-eur-3-billion-for-decarbonising-german-district-heating.46
  47. Ministerio para la Transición Ecológica y el Reto Demográfico, “Real Decreto 477/2021, de 29 de junio, por el que se aprueba la concesión directa a las comunidades autónomas y a las ciudades de ceuta y melilla de ayudas para la ejecución de diversos programas de incentivos ligados al autoconsumo y al almacenamiento, con fuentes de energía renovable, así como a la implantación de sistemas térmicos renovables en el sector residencial, en el marco del plan de recuperación, transformación y resiliencia,” 2021, https://www.boe.es/eli/es/rd/2021/06/29/477; A. Rosell, “More Than EUR 1 Billion of Incentives Available in Spain,” Solar Thermal World, October 12, 2022, https://solarthermalworld.org/news/more-than-eur-1-billion-of-incentives-available-in-spain.47
  48. Government of the UK, “Ditching Costly Gas and Oil Is Cheaper Thanks to Heat Pump Scheme,” May 23, 2022, https://www.gov.uk/government/news/ditching-costly-gas-and-oil-is-cheaper-thanks-to-heat-pump-scheme.48
  49. E. Hougaard, “Energistyrelsen åbner for ansøgninger til tilskudsordning for etablering af eldrevne varmepumper og solvarmeanlæg til produktion af fjernvarme,” Energistyrelsen, July 12, 2022, https://ens.dk/presse/energistyrelsen-aabner-ansoegninger-til-tilskudsordning-etablering-af-eldrevne-varmepumper-og.49
  50. B. Epp, “EUR ٦٥ Million Provided for Solar District Heating in Kosovo,” Solar Thermal World, July 7, 2022, https://solarthermalworld.org/news/eur-65-million-provided-for-solar-district-heating-in-kosovo.50
  51. cking, “What the ‘Inflation Reduction Act of 2022' Means for Solar,” Solar Energy International, August 22, 2022, https://www.solarenergy.org/what-the-inflation-reduction-act-of-2022-means-for-solar.51
  52. United News of India, “UP Targets to Generate 22k MW Solar Energy in Next 5 Yrs,” November 16, 2022, http://www.uniindia.com/~/up-targets-to-generate-22k-mw-solar-energy-in-next-5-yrs/Business Economy/news/2861956.htm.52
  53. R. Desmornes, “The Inflation Reduction Act ‘Pumps Up' Heat Pumps,” HVAC Solutions, November 4,2022, https://www.hvac.com/resources/inflation-reduction-act-heat-pump-rebates; Rewiring America, “High-Efficiency Electric Home Rebate Act,” 2022, https://www.rewiringamerica.org/policy/high-efficiency-electric-home-rebate-act.53
  54. D. Gibb and M. Morawiecka, “Cleaning Up Heat: The Changing Economics for Heat Pumps in Poland,” Regulatory Assistance Project, November 7, 2022, https://www.raponline.org/knowledge-center/cleaning-up-heat-the-changing-economics-for-heat-pumps-in-poland.54
  55. Bercy Infos, “MaPrimeRénov': la prime pour la rénovation énergétique,” December 30, 2022, https://www.economie.gouv.fr/particuliers/prime-renovation-energetique.55
  56. Figure 6 from REN21 Policy Database, op. cit. note 44.56
  57. J. Cheng, “Importance of Energy Standards in Supporting Affordable Growth of the High Efficiency Heat Pump Market in China,” 8th IEA-Tsinghua Joint Workshop: Making Buildings Zero-Carbon Ready by 2030 – Near-term Solutions for Heating Systems, 27 October, 2022, https://www.iea.org/events/the-8th-iea-tsinghua-joint-workshop-making-buildings-zero-carbon-ready-by-2030-near-term-solutions-for-heating-systems. Snapshot: China based on the following sources: Energy Foundation China, “Synthesis Report 2022 on China's Carbon Neutrality: Electrification in China's Carbon Neutrality Pathways,” 13 November, 2022, https://www.efchina.org/Reports-en/report-lceg-20221104-en; IEA, “Clean Winter Heating Plan in Northern China (2017-2021) – Policies,” May 17,2021, https://www.iea.org/policies/7906-clean-winter-heating-plan-in-northern-china-2017-2021; 65% from Energy Foundation China, “Research on the Control Strategy of Scattered Coal Pollution in the ‘14th Five-Year Plan' Period,” November 9, 2021, https://www.efchina.org/Attachments/Report/report-cemp-20220305-7/%E6%89%A7%E8%A1%8C%E6%91%98%E8%A6%81-%E5%8D%81%E5%9B%9B%E4%BA%94-%E5%9B%BD%E5%AE%B6%E6%95%A3%E7%85%A4%E6%B1%A1%E6%9F%93%E6%8E%A7%E5%88%B6%E7%AD%96%E7%95%A5%E7%A0%94%E7%A9%B6.pdf (using Google Translate); B. Epp, “China: Beijing Mandates Solar Hot Water Systems,” Solar Thermal World, March 23, 2012, https://solarthermalworld.org/news/china-beijing-mandates-solar-hot-water-systems; Chinese Ministry of Housing and Urban-Rural Development, “‘14th Five-Year' Building Energy Efficiency and Green Building Development Plan,” 2022, https://www.ndrc.gov.cn/xwdt/tzgg/202206/P020220602315650388122.pdf; C. Farand, “China's Ambitious Rooftop Solar Pilot Helps Drive ‘Blistering' Capacity Growth,” Climate Home News, July 14, 2022, https://www.climatechangenews.com/2022/07/14/chinas-ambitious-rooftop-solar-pilot-helps-drive-blistering-capacity-growth; Government of China, “'The 14th Five-Year Plan' Building Energy Conservation and Green Building Development Plan' was issued to complete the energy-saving renovation of existing buildings with an area of more than 350 million square meters by 2025,” March 22, 2022, http://www.gov.cn/xinwen/2022-03/22/content_5680355.htm.57
  58. Energy Foundation China, op. cit. note 57.58
  59. D. Gibb and A. Jahn, “‘Game On' for Germany's Heat Pump Transformation,” Regulatory Assistance Project, July 20, 2022, https://www.raponline.org/blog/game-on-germany-heat-pump-transformation.59
  60. N. Kurmayer, “Netherlands to Ban Fossil Heating from 2026, Make Heat Pumps Mandatory,” Euractiv, May 17, 2022, https://www.euractiv.com/section/energy-environment/news/netherlands-to-ban-fossil-heating-by-2026-make-heat-pumps-mandatory.60
  61. Data as of 9 February 2023, from Building Decarbonization Coalition, “Zero Emissions Building Ordinances,” 2022, https://www.buildingdecarb.org/zeb-ordinances.html.61
  62. Ibid.62
  63. L. Louis-Prescott and R. Golden, “How Local Governments and Communities Are Taking Action to Get Fossil Fuels Out of Buildings,” RMI, August 9, 2022, https://rmi.org/taking-action-to-get-fossil-fuels-out-of-buildings.63
  64. E. Pontecorvo, “California's 2030 Ban on Gas Heaters Opens a New Front in the War on Fossil Fuels,” Grist, September 26, 2022, https://grist.org/buildings/californias-2030-ban-on-gas-heaters-opens-a-new-front-in-the-war-on-fossil-fuels; New York State Public Service Commission, “PSC Breathes New Life into Popular Con Edison Clean Heat Program,” November 8, 2022, https://ar.dps.ny.gov/system/files/documents/2022/10/psc-breathes-new-life-into-popular-con-edison-clean-heat-program.pdf.64
  65. T. DiChristopher and A. Duquiatan, “States That Outlaw Gas Bans Account for 31% of US Residential/Commercial Gas Use,” S&P Global Commodity Insights, June 9, 2022, https://www.spglobal.com/marketintelligence/en/news-insights/latest-news-headlines/states-that-outlaw-gas-bans-account-for-31-of-us-residential-commercial-gas-use-70749584.65
  66. European Commission, op. cit. note 32.66
  67. E. Christensen, “California's New Building Energy Efficiency Standards, Mandating Solar + Storage, Are Set to Go into Effect on January 1, 2023,” August 1, 2022, https://www.energytoolbase.com/newsroom/blog/californias-new-building-energy-efficiency-standards-mandating-solar-storage.67
  68. J. Spector, “California Is Finally Unlocking Community Solar for the Masses,” Canary Media, September 8, 2022, https://www.canarymedia.com/articles/solar/california-is-finally-unlocking-community-solar-for-the-masses.68
  69. J. John, “New California Rooftop-Solar Plan Drops ‘Solar Tax,' But Fears Remain,” Canary Media, November 10, 2022, https://www.canarymedia.com/articles/solar/new-california-rooftop-solar-plan-drops-solar-tax-but-fears-remain.69
  70. CTV News, “N.S. Government Kills Electric Utility's Bid to Impose ‘Net-Metering' Charge on Solar,” Atlantic, February 2, 2022, https://atlantic.ctvnews.ca/n-s-government-kills-electric-utility-s-bid-to-impose-net-metering-charge-on-solar-1.5764723.70
  71. IEA, op. cit. note 1.71
  72. Global Alliance for Buildings and Construction, “2022 Global Status Report for Buildings and Construction,” 2022, http://globalabc.org/our-work/tracking-progress-global-status-report.72
  73. Chinese Ministry of Housing and Urban-Rural Development, op. cit. note 57.73
  74. Global Alliance for Buildings and Construction, op. cit. note 72.74
  75. D. Rajeev, “Energy Conservation Bill 2022: Implications and Next Steps,” The Economic Times, December 28, 2022, https://economictimes.indiatimes.com/industry/renewables/energy-conservation-bill-2022-implications-and-next-steps/articleshow/96562493.cms.75
  76. T. Sawachi, “Context for Building Heating Systems and How Their Energy Efficiencies Are Evaluated in a Building Energy Code of Japan,” 8th IEA-Tsinghua Joint Workshop: Making Buildings Zero-Carbon Ready by 2030 – Near-term Solutions for Heating Systems, October 2022, https://iea.blob.core.windows.net/assets/9820c21f-47dc-431d-8b11-28b99dfab44c/
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  77. IEA, op. cit. note 21.77
  78. Based on USD 489.6 billion global new investment in renewable power capacity in 2022 (not including hydropower projects larger than 50 MW), from BloombergNEF, “Energy Transition Investment Trends 2023,” 2023, https://about.bnef.com/energy-transition-investment; 50% from M. Santamouris and K. Vasilakopoulou, “Present and Future Energy Consumption of Buildings: Challenges and Opportunities Towards Decarbonisation,” E-Prime – Advances in Electrical Engineering, Electronics and Energy, Vol. 1 (January 1, 2021): 100002, https://doi.org/10.1016/j.prime.2021.100002.78
  79. K. Mathiesen et al., “Putin's War Accelerates the EU's Fossil Fuel Detox,” Politico, October 12, 2022, https://www.politico.eu/article/vladimir-putin-war-ukraine-accelerates-eu-fossil-fuel-detox.79
  80. BloombergNEF, op. cit. note 78; IEA, “World Energy Investment 2022,” 2022, https://iea.blob.core.windows.net/assets/b0beda65-8a1d-46ae-87a2-f95947ec2714/WorldEnergyInvestment2022.pdf.80
  81. IEA, op. cit. note 80.81
  82. B. Epp, “37 MW Solar District Heating Plant in the Netherlands with Outstanding Features,” Solar Thermal World, November 11, 2022, https://solarthermalworld.org/news/37-mw-solar-district-heating-plant-in-the-netherlands-with-outstanding-features.82
  83. International District Energy Association, “Canada Infrastructure Bank, CIBC and Markham District Energy Close $270 Million District Energy Infrastructure Investment,” November 25, 2022, https://www.districtenergy.org/blogs/district-energy/2022/11/25/canada-infrastructure-bank-cibc-and-markham-distri.83
  84. B. Epp, “Fund of EUR 3 Billion for Decarbonising German District Heating,” Solar Thermal World, August 30, 2022, https://solarthermalworld.org/news/fund-of-eur-3-billion-for-decarbonising-german-district-heating; A. Walstad, “Germany Ploughs €3bn into Phasing out District Heating Gas,” Gas Outlook, August 18, 2022, https://gasoutlook.com/analysis/germany-ploughs-e3bn-into-phasing-out-district-heating-gas.84
  85. IEA, op. cit. note 80; Solar Heat Europe, “Solar Heat Market Report 2021,” December 2022, http://solarheateurope.eu/wp-content/uploads/2022/12/Solar_Heat_Market_Report-2021.pdf.85
  86. Solar Heat Europe, op. cit. note 85.86
  87. IEA, “Energy Efficiency 2022,” 2022, https://iea.blob.core.windows.net/assets/7741739e-8e7f-4afa-a77f-49dadd51cb52/EnergyEfficiency2022.pdf.87
  88. IEA, op. cit. note 80.88
  89. Ibid.89
  90. IEA, “Approximately 100 Million Households Rely on Rooftop Solar PV by 2030 – Analysis,” September 2022, https://www.iea.org/reports/approximately-100-million-households-rely-on-rooftop-solar-pv-by-2030.90
  91. IEA, “Solar PV – Analysis,” September 2022, https://www.iea.org/reports/solar-pv.91
  92. Ibid.92
  93. IEA Photovoltaic Power Systems Programme (PVPS), “Trends in PV Applications 2022,” 2022, https://iea-pvps.org/trends_reports/trends-2022; IEA, op. cit. note 91.93
  94. IEA PVPS, op. cit. note 93.94
  95. Ibid.95
  96. Ibid.96
  97. Ibid.97
  98. Fortum, “Fortum and Microsoft Announce World's Largest Collaboration to Heat Homes, Services and Businesses with Sustainable Waste Heat from New Data Centre Region,” March 17, 2022, https://www.fortum.com/media/2022/03/fortum-and-microsoft-announce-worlds-largest-collaboration-heat-homes-services-and-businesses-sustainable-waste-heat-new-data-centre-region; IrishCentral, “Heat Created by Amazon Data Center in Dublin to Be Used in Local Housing,” September 22, 2021, https://www.irishcentral.com/news/amazon-data-center-dublin-heat-local-housing; World Economic Forum, “Your Data Could Warm You Up This Winter, Here's How,” August 8, 2022, https://www.weforum.org/agenda/2022/08/sustainable-data-centre-heating; P. Judge, “Vienna Hospital to Get Waste Heat from Interxion Data Center,” Data Center Dynamics, April 27, 2022, https://www.datacenterdynamics.com/en/news/vienna-hospital-to-get-waste-heat-from-interxion-data-center.98
  99. IEA, op. cit. note 1.99
  100. International Renewable Energy Agency (IRENA), “Bioenergy for the Transition: Ensuring Sustainability and Overcoming Barriers,” August 2022, https://www.irena.org/publications/2022/Aug/Bioenergy-for-the-Transition.100
  101. N. Kurmayer, “As Winter Looms, Germans Increasingly Turn to Wood for Heating,” Euractiv, September 23, 2022, https://www.euractiv.com/section/energy/news/as-winter-looms-germans-increasingly-turn-to-wood-for-heating; Euronews, “Energy Crisis: Germans Turn to Wood Burning Stoves to Save on Gas,” November 11, 2022, https://www.euronews.com/green/2022/11/11/energy-crisis-in-germany-rising-trend-in-wood-burning-stoves-to-save-on-gas; H. Thompson, “Wood Pellet Shortages in France Cause Prices to Soar,” Connexionfrance, 15 September, 2022, https://www.connexionfrance.com/article/French-news/Wood-pellet-shortages-in-France-cause-prices-to-soar; D. Brooks, “Wood Pellets May Be Scarcer, and More Costly, This Winter,” NH Business Review, October 21, 2022, https://www.nhbr.com/wood-pellets-may-be-scarcer-and-more-costly-this-winter; United Nations Economic Commission for Europe, “Wood Energy on the Rise in Europe,” November 4, 2022, https://unece.org/climate-change/press/wood-energy-rise-europe.101
  102. IRENA, op. cit. note 100.102
  103. IEA, op. cit. note 21.103
  104. W. Weiss and M. Spörk-Dür, “Solar Heat Worldwide: Edition 2022,” May 2022, https://www.iea-shc.org/Data/Sites/1/publications/Solar-Heat-Worldwide-2022.pdf.104
  105. Ibid.105
  106. B. Epp, “IEA SHC Solar Award Winner: Social Housing Project in Namibia,” Solar Thermal World, October 18, 2022, https://solarthermalworld.org/news/iea-shc-solar-award-winner-social-housing-project-in-namibia; Southern African Solar Thermal Demonstration and Training Initiative (SOLTRAIN), “Solar Thermal Roadmaps,” https://soltrain.org/assets/roadmaps, accessed November 20, 2022.106
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  108. Weiss and Spörk-Dür, op. cit. note 104; B.Epp, “37 MW solar district heating plant in the Netherlands with outstanding features,” Solar Thermal World, November 11, 2022, https://solarthermalworld.org/news/37-mw-solar-district-heating-plant-in-the-netherlands-with-outstanding-features.108
  109. Weiss and Spörk-Dür, op. cit. note 104.109
  110. J. Lund and A. Toth, “Direct Utilization of Geothermal Energy 2020 Worldwide Review,” Geothermics, Vol. 90 (February 2021): 101915, https://www.sciencedirect.com/science/article/pii/S0375650520302078. 110
  111. Ibid.111
  112. Ibid.112
  113. C. Cariaga, “Sinopec Launches Expanded Geothermal Heating in China for Winter,” ThinkGeoEnergy, November 17, 2022, https://www.thinkgeoenergy.com/sinopec-launches-expanded-geothermal-heating-for-winter.113
  114. Ibid.; D. Olick, “Largest-Ever Geothermal Grid Under This Texas Housing Development Is Saving Homeowners Serious Money,” CNBC, 2022, https://www.cnbc.com/2022/09/01/geothermal-powered-housing-development-saves-homeowners-big-bucks.html; US Department of Energy, “Community Geothermal Heating and Cooling Design and Deployment,” July 12, 2022, https://www.energy.gov/eere/geothermal/articles/community-geothermal-heating-and-cooling-design-and-deployment.114
  115. IEA Geothermal, “2021 Annual Report,” October 2022, https://iea-gia.org/publications-2/annual-reports.115
  116. C. Cariaga, “Canada to Invest in Geothermal Projects in Nova Scotia,” ThinkGeoEnergy, November 10, 2022, https://www.thinkgeoenergy.com/canada-to-invest-on-geothermal-projects-in-nova-scotia.116
  117. C. Cariaga, “EGEC Market Report 2021 Highlights Post-COVID Resurgence of Geothermal,” ThinkGeoEnergy, June 14, 2022, https://www.thinkgeoenergy.com/egec-market-report-2021-highlights-post-covid-resurgence-of-geothermal. 117
  118. Ibid. 118
  119. C. Cariaga, “Meudon, France Targets Geothermal District Heating by 2026,” ThinkGeoEnergy, November 7, 2022, https://www.thinkgeoenergy.com/meudon-france-targets-geothermal-district-heating-by-2026; C. Cariaga, “Germany Aims for 100 New Geothermal Projects by 2030,” ThinkGeoEnergy, November 11, 2022, https://www.thinkgeoenergy.com/germany-aims-for-100-new-geothermal-projects-by-2030; C. Cariaga, “Geothermal Heating Plant in Torun, Poland Officially Opens,” ThinkGeoEnergy, October 13, 2022, https://www.thinkgeoenergy.com/geothermal-heating-plant-in-torun-poland-officially-opens. 119
  120. C. Cariaga, “Wien Energie to Build First Geothermal Heating Plant in Vienna, Austria,” ThinkGeoEnergy, November 15, 2022, https://www.thinkgeoenergy.com/wien-energie-to-build-first-geothermal-heating-plant-in-vienna-austria.120
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Industry in Focus | Challenges and Opportunities in Industry

Challenges and Opportunities for the Uptake of Renewables in Industry

Challenges

Although several renewable heat technologies for low-to-medium temperature processes are on the market, fossil fuel-based heating technologies generally remain more cost effective, hindering the adoption of renewable solutions.

Renewable technologies for decarbonising high-temperature industrial processes remain limited, and further technological development is needed.

Many industry sectors are capital intensive, with long-lived capital assets. Switching to renewable technologies is expensive due to the long lifetimes of industrial equipment and plants.

Tailoring policy to the needs and characteristics of different industries is challenging, as the heterogeneity among sub-sectors, including in energy use and intensity, impedes having a comprehensive policy.

Opportunities

The potential for using industrial heat pumps in low-temperature heat applications is high; this has the advantage of both reducing costs through energy efficiency and providing low-carbon energy.

Renewable hydrogen can be used in many energy-intensive industries, where it is challenging to use 100% renewable technologies.

Small and medium-sized businesses have significant untapped potential for uptake of renewables, while simultaneously increasing their competitiveness through cost savings and improved sustainability practices.

Investments in decarbonised steel, which may include the use of renewables, are driven by the wish to capture opportunities in incipient green steel markets and to avoid stranded assets in anticipation of more stringent climate policies.

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  4. Ibid.4
  5. IEA, “Industry – Analysis,” September 2022, https://www.iea.org/reports/industry. 5
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  7. IEA, op. cit. note 2. Figure 7 from idem.7
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  59. World Economic Forum, “Underlining the Need for an Integrated Approach to Establish a Net Zero Cluster,” https://initiatives.weforum.org/transitioning-industrial-clusters/about, accessed January 8, 2023; GEIPP, op. cit. note 58; UNIDO Knowledge Hub, “Environment,” https://hub.unido.org/section/environment, accessed January 8, 2023.59
  60. Aurora IP, “Socio-Ecological Industrial Parks to Become an Inevitable Trend for Real Estate Developers,” November 30, 2022, https://www.globenewswire.com/news-release/2022/11/30/2564583/0/en/Socio-ecological-industrial-parks-to-become-an-inevitable-trend-for-real-estate-developers.html; Aurora IP, “Aurora Strongly Contributes to the Sustainable Future of Vietnam's Textile Industry with an Eco Industrial Park Orientation,” December 26, 2022, https://www.globenewswire.com/news-release/2022/12/26/2579420/0/en/Aurora-strongly-contributes-to-the-sustainable-future-of-Vietnam-s-textile-industry-with-an-eco-industrial-park-orientation.html; Eco-Industrial Park Vietnam, http://eip-vietnam.org, accessed January 9, 2023; Vietnam Investment Review, “Interest in Eco-Industrial Zones Gather Capital Pace,” January 2, 2022, https://vir.com.vn/interest-in-eco-industrial-zones-gather-capital-pace-90360.html.60
  61. World Economic Forum, “More Industrial Hubs to Accelerate Their Net-Zero Transition,” May 24, 2022, https://www.weforum.org/press/2022/05/more-industrial-hubs-to-accelerate-their-net-zero-transition.61
  62. UNIDO Open Data Platform, “Global Eco-Industrial Parks Programme – Colombia: Country Level Intervention,” https://open.unido.org/projects/CO/projects/180319, accessed January 9, 2023; UNIDO Open Data Platform, “Global Eco-Industrial Parks Programme – Indonesia: Country Level Intervention,” https://open.unido.org/projects/ID/projects/190324, accessed January 9, 2023; UNIDO Open Data Platform, “Global Eco-Industrial Parks Programme – Egypt: Country Level Intervention,” https://open.unido.org/projects/EG/projects/190088, accessed January 9, 2023; UNIDO Open Data Platform, “Global Eco-Industrial Parks Programme – Peru: Country Level Intervention,” https://open.unido.org/projects/PE/projects/180318, accessed January 9, 2023; UNIDO Open Data Platform, “Global Eco-Industrial Parks Programme – Ukraine: Country Level Intervention,” https://open.unido.org/projects/UA/projects/180320, accessed January 9, 2023; UNIDO Open Data Platform, “Global Eco-Industrial Parks Programme – Viet Nam: Country Level Intervention,” https://open.unido.org/projects/VN/projects/180321, accessed January 9, 2023. Snapshot: South Africa based on the following sources: R.M. Andrew and G.P. Peters, “The Global Carbon Project's Fossil CO2 Emissions Dataset,” Zenodo, October 17, 2022, https://doi.org/10.5281/ZENODO.5569234; Mpumalanga Green Cluster Agency, “Mpumalanga Renewable Energy and Electric Mobility Market Intelligence. Opportunity Brief,” 2022, https://mpumalangagreencluster.co.za/wp-content/uploads/2022/09/MPUMALANGA_ENERGY_MIR_22.pdf; Institute for Advanced Sustainability Studies, International Energy Transition GmbH and Council for Scientific and Industrial Research, “From Coal to Renewables in Mpumalanga: Employment Effects, Opportunities for Local Value Creation, Skills Requirements, and Gender-Inclusiveness,” January 1, 2022, https://publications.iass-potsdam.de/rest/items/item_6001449_5/component/file_6001450/content; GreenCape, “Mpumalanga Green Economy Cluster,” September 20, 2020, https://green-cape.co.za/archives/mpumalanga-green-economy-cluster; UKPACT, “Supporting the Establishment of the Mpumalanga Green Cluster Agency to Maximise the Contribution of the Renewable Energy Value Chain to South Africa's Just Transition,” https://www.ukpact.co.uk/greencape-south-africa-project-page, accessed January 6, 2023; C. Volkwyn, “Mpumalanga Mitigating Losses from the Transition Away from Coal,” ESI-Africa, January 31, 2022, https://www.esi-africa.com/industry-sectors/finance-and-policy/mpumalanga-mitigating-losses-from-the-transition-away-from-coal.62
  63. Vienna Energy Forum, op. cit. note 11. Snapshot: Pakistan based on the following sources: United Nations Development Programme Climate Promise, “Pakistan,” November 18, 2022, https://climatepromise.undp.org/what-we-do/where-we-work/pakistan; Trading Economics, “Pakistan – Access to Electricity (% of Population) – 2023 Data 2024 Forecast 1990-2020 Historical,” https://tradingeconomics.com/pakistan/access-to-electricity-percent-of-population-wb-data.html, accessed January 4, 2023; NAMA Facility, “Pakistan – Decarbonising Textile Manufacturing,” https://nama-facility.org/projects/pakistan-decarbonising-textile-manufacturing, accessed January 5, 2023; Delegation of the European Union to Pakistan, “Implementation of Resource and Energy Efficient Technologies (IREET) in the Sugar Sector of Pakistan,” August 26, 2020, https://www.eeas.europa.eu/delegations/pakistan/implementation-resource-and-energy-efficient-technologies-ireet-sugar-sector_en; Global Environment Facility and UNIDO, “Sustainable Energy Initiative for Industries in Pakistan,” 2022, https://www.thegef.org/projects-operations/projects/4753; “UK Announces First Projects for Pakistan's ‘Climate Finance Accelerator' Initiative,” Pakistan Today, February 11, 2022, https://www.pakistantoday.com.pk/2022/11/02/uk-announces-first-projects-for-pakistans-climate-finance-accelerator-initiative.63
  64. Chilean Ministry of Energy, “Ministerio de Energía Lanza Concurso Ponle Energía a Tu Pyme,” August 3, 2021, https://energia.gob.cl/noticias/nacional/ministerio-de-energia-lanza-concurso-ponle-energia-tu-pyme; Les-Aides.Fr, “Climate Action Loan,” https://les-aides.fr/aide/aFCf3w/bpifrance/pret-action-climat.html, accessed February 13, 2023; Ministry of the Economy, Finance and Industrial and Digital Sovereignty of France, “Aides aux entreprises pour favoriser leur transition écologique,” https://www.economie.gouv.fr/cedef/aides-entreprises-transition-ecologique, accessed February 13, 2023.64
  65. IEA, op. it. note 9; IEA, op. cit. note 15; IEA, “Chemicals – Analysis,” September 2022, https://www.iea.org/reports/chemicals; Accenture, “Industrial Clusters. Working Together to Achieve Net Zero,” 2021, https://www.accenture.com/_acnmedia/PDF-147/Accenture-WEF-Industrial-Clusters-Report.pdf. Figure 8 from IEA, op. cit. note 2.65
  66. IEA, op. cit. note 2.66
  67. IEA, “Bioenergy Use by Sector and Share of Modern Bioenergy in Total Final Consumption in the Net Zero Scenario, 2010-2030,” October 26, 2022, https://www.iea.org/data-and-statistics/charts/bioenergy-use-by-sector-and-share-of-modern-bioenergy-in-total-final-consumption-in-the-net-zero-scenario-2010-2030.67
  68. Sappi Global, “Co-creating a Shift from Coal to Renewables at Gratkorn Mill,” https://www.sappi.com/fr/decarbonisation-at-gratkorn-mill-in-austria, accessed February 13, 2023; Sappi Global, “Transitioning to Bioenergy at Kirkniemi Mill,” https://www.sappi.com/fr/transitioning-to-bioenergy-at-kirkniemi-mill, accessed February 13, 2023; Bioenergy International, “Stora Enso to Replace Heavy Fuel Oil at Enocell,” May 1, 2022, https://bioenergyinternational.com/stora-enso-to-replace-heavy-fuel-oil-at-enocell; Metsä Group, “Renewable energy fuels the majority of our mills,” https://www.metsagroup.com/metsafibre/sustainability/sustainability-targets-and-progress/#:~:text=Our%20goal%20is%20, accessed February 13, 2023; Afry, “Shift toward Biomass Based Electricity at Metsä Board Husum, Sweden,” https://afry.com/en/project/shift-toward-biomass-based-electricity-metsa-board-husum-sweden, accessed February 13, 2023.68
  69. S. de Groot et al., “The Growing Competition Between the Bioenergy Industry and the Feed Industry,” Wageningen University & Research, June 29, 2022, https://fefac.eu/wp-content/uploads/2022/07/22_DOC_106.pdf.69
  70. Danone, “Danone Announces Re-Fuel Danone: A Global Energy Excellence Programme to Drive Energy Efficiency, Resilience and Decarbonisation Journey,” November 17, 2022, https://www.danone.com/media/press-releases-list/danone-announces-re-fuel-danone.html; G. Fuh, “Danone Builds Bioenergy Plant to Mitigate Climate Change and Endorse Circularity,” BECIS, June 17, 2022, https://be-cis.com/danone-builds-bioenergy-plant-to-mitigate-climate-change-and-endorse-circularity; J. Hughes, “Unilever and Starbucks Join Biogas Alliance,” World Biogas Association, January 22, 2021, https://www.worldbiogasassociation.org/unilever-and-starbucks-join-biogas-alliance.70
  71. IRENA, op. cit. note 9.71
  72. IRENA, “Innovation Outlook: Renewable Methanol,” January 2021, https://www.irena.org/publications/2021/Jan/Innovation-Outlook-Renewable-Methanol.72
  73. KeepItGreen, “How Manufacturers Are Developing and Using Renewable Energy,” Smart Cities Dive, https://www.smartcitiesdive.com/ex/sustainablecitiescollective/how-manufacturers-are-developing-and-using-renewable-energy/1175001, accessed December 15, 2022. 73
  74. Ibid.74
  75. SHIP Plants Database, “World Map of Solar Thermal Plants,” http://ship-plants.info/solar-thermal-plants-map?industry_sector=4, accessed December 23, 2022; B. Epp, “10 MW Solar Plant Heats Air for Malting Plant in France,” Solar Thermal World, September 28, 2021, https://solarthermalworld.org/news/10-mw-solar-plant-heats-air-malting-plant-france; A. Rosell, “Heat Purchase Agreements on the Rise in Spain,” Solar Thermal World, August 10, 2022, https://solarthermalworld.org/news/heat-purchase-agreements-on-the-rise-in-spain; B. Epp, “Innovation Fund Approves EUR 4.5 Million for Croatian SHIP Plant,” Solar Thermal World, September 16, 2021, https://solarthermalworld.org/news/innovation-fund-approves-eur-45-million-croatian-ship-plant.75
  76. C. Erber, “ClimAccelerator Start-up Naked Energy Taps into Solar Thermal,” ClimAccelerator, June 3, 2022, https://climaccelerator.climate-kic.org/news/solar-thermal-energy-an-industry-with-untapped-potential.76
  77. Planète Énergies, “Using High-Temperature Geothermal Energy to Generate Electricity,” April 28, 2021, https://www.planete-energies.com/en/medias/close/using-high-temperature-geothermal-energy-generate-electricity.77
  78. J. Lund and A. Toth, “Direct Utilization of Geothermal Energy 2020 Worldwide Review,” Geothermics, Vol. 90 (February 1, 2021): 101915, https://doi.org/10.1016/j.geothermics.2020.101915.78
  79. BloombergNEF and WBCSD, op. cit. note 50.79
  80. International Geothermal Association, “Webinar: Scaling-up Geothermal Direct Use for Industrial Applications in Latin America,” August 8, 2021, https://www.lovegeothermal.org/webinar-scaling-up-geothermal-direct-use-for-industrial-applications-in-latin-america; International Geothermal Association, “Call for Geothermal Direct Use Projects in Latin America and Caribbean,” November 22, 2022, https://www.lovegeothermal.org/call-for-geothermal-direct-use-projects-in-latin-america-and-caribbean.80
  81. OMV, “OMV Starts Two Geothermal Projects,” October 3, 2022, https://www.omv.com/en/news/221003-omv-starts-two-geothermal-projects.81
  82. A. Levine et al., “Mining G.O.L.D. (Geothermal Opportunities Leveraged Through Data): Exploring Synergies Between the Geothermal and Mining Industries,” US National Renewable Energy Laboratory, 2022, https://www.nrel.gov/docs/fy22osti/81946.pdf.82
  83. Cornish Lithium Plc, “Direct Lithium Extraction,” https://cornishlithium.com/projects/lithium-in-geothermal-waters/direct-lithium-extraction, accessed December 23, 2022; Jelena Temunovic, “Cornish Lithium Set for a Momentous 2023 Following Significant Progress in 2022,” Cornish Lithium Plc, December 20, 2022, https://cornishlithium.com/company-announcements/cornish-lithium-set-for-a-momentous-2023-following-significant-progress-in-2022.83
  84. IEA, op. cit. note 51; GEA, “Decarbonizing Industry, One Heat Pump Installation at a Time,” September 21, 2022, https://www.gea.com/en/stories/decarbonizing-industry-one-heat-pump-installation.jsp.84
  85. “Smart Integration of HP with Energy Storage and Solar Photo Voltaics,” HPT Magazine, Vol. 40, No. 3 (2022), https://issuu.com/hptmagazine/docs/hpt_magazine_no3_2022; Technavio, “Industrial Heat Pumps Market by End-User, Type and Geography – Forecast and Analysis 2023-2027,” December 2022, https://www.technavio.com/report/industrial-heat-pumps-market-industry-analysis; “Global Industrial Heat Pumps Market 2017-2021: Industry Analysis and Forecasts by Technavio,” July 12, 2017, https://www.businesswire.com/news/home/20170712006252/en/Global-Industrial-Heat-Pumps-Market-2017-2021-Industry-Analysis-and-Forecasts-by-Technavio; IEA, op. cit. note 51. 85
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  87. Bronswerk Heat Transfer, “Industry – Pulp & Paper,” https://www.bronswerk.com/industry-pulp-paper, accessed December 21, 2022; IEA, op. cit. note 51. 87
  88. European Heat Pump Association, “PUSH2HEAT: Pushing Forward the Market Potential of Heat Upgrade Technologies,” November 4, 2022, https://www.ehpa.org/press_releases/push2heat-pushing-forward-the-market-potential-of-heat-upgrade-technologies.88
  89. WBCSD, “Industrial Heat Pumps: It's Time to Go Electric,” September 2022, https://www.wbcsd.org/contentwbc/download/14846/211001/1; GEA, op. cit. note 84; Bronswerk Heat Transfer, op. cit. note 87; Technavio, op. cit. note 85; gCaptain, “Climeon Launches New Waste Heat Recovery Technology,” September 13, 2022, https://gcaptain.com/climeon-launches-new-waste-heat-recovery-technology.89
  90. IEA, op. cit. note 15; Vienna Energy Forum, op. cit. note 11.90
  91. European Commission, “State Aid: Commission Approves Up to €5.2 Billion of Public Support by Thirteen Member States for the Second Important Project of Common European Interest in the Hydrogen Value Chain,” September 21, 2022, https://ec.europa.eu/commission/presscorner/detail/en/ip_22_5676; European Commission, “Hydrogen,” https://energy.ec.europa.eu/topics/energy-systems-integration/hydrogen_en, accessed December 13, 2022.91
  92. L. Gómez, “Natural Gas and Renewable Hydrogen in Africa and Cooperation Opportunities with the EU,” Global Forum on Sustainable Energy, https://www.gfse.at/fileadmin/user_upload/gfse_policy_brief_gas_africa_v7_clean.pdf, accessed December 19, 2022; C. Owen-Burge, “Green Hydrogen Could Sustainably Industrialise Africa and Boost GDP by 6 to 12% in Six Key Countries – New Report,” Climate Champions, November 15, 2022, https://climatechampions.unfccc.int/unlocking-africas-green-hydrogen-potential; G. Müller, “Green Hydrogen: The Energy Opportunity for Decarbonization and Developing Countries,” Industrial Analytics Platform, November 2022, https://iap.unido.org/articles/green-hydrogen-energy-opportunity-decarbonization-and-developing-countries.92
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  100. IRENA, “Innovation Outlook: Renewable Ammonia,” 2022, https://www.irena.org/-/media/Files/IRENA/Agency/Publication/2022/May/IRENA_Innovation_Outlook_Ammonia_2022.pdf; World Economic Forum, op. cit. note 11. 100
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Agriculture in Focus | Challenges and Opportunities in Agriculture

Challenges and Opportunities for the Uptake of Renewables in Agriculture

Challenges

The lack of robust data on energy uses in agriculture and fisheries, especially for small-scale actors, makes it difficult to track progress in renewable energy adoption and to understand the policy gaps that need to be filled. 95

The seasonal nature of agricultural income, coupled with the capital-intensive structure of most renewable energy investments, makes affordability a challenge for small and medium-sized actors in agri-food chains. 96

Agricultural policies and energy policies tend to operate in silos, and policy frameworks and incentives to encourage the adoption of renewables in agriculture remain limited and insufficient.

Opportunities

Farmers can increase their incomes by adding value through the use of renewable technologies in their production processes.

The use of renewables offers the opportunity to reduce reliance on fossil fuels and protect farmers from price volatility and supply shocks.

Opportunities exist to improve co-ordination among government ministries and other stakeholders in setting policies and collecting data.

  1. World Bank, “Agriculture, Forestry, and Fishing, Value Added (% of GDP),” https://data.worldbank.org/indicator/NV.AGR.TOTL.ZS, accessed December 16, 2022.1
  2. International Labour Organisation (ILO), “Employment Rate in Agriculture, World,” Data Finder – World Employment and Social Outlook, https://www.ilo.org/wesodata/?chart=Z2VuZGVyPVsiVG90YWwiXSZ1bml0PSJSYXRlIiZzZWN0b3I9WyJBZ3JpY3VsdHVyZSJdJnllYXJGcm9tPTIwMTAmaW5jb21lPVtdJmluZGljYXRvcj1bImVtcGxveW1lbnREaXN0cmlidXRpb24iXSZzdGF0dXM9W10mcmVnaW9uPVsiV29ybGQiXSZjb3VudHJ5PVtdJndvcmtpbmdQb3ZlcnR5PVtdJnllYXJUbz0yMDIzJnZpZXdGb3JtYXQ9IkNoYXJ0IiZhZ2U9WyJBZ2UxNXBsdXMiXSZsYW5ndWFnZT0iZW4i, accessed December 16, 2022.2
  3. ILO, “Employment Rate in Agriculture, by Region,” Data Finder – World Employment and Social Outlook, https://www.ilo.org/wesodata/chart/J45qDX-tp, accessed December 16, 2022.3
  4. Ibid.4
  5. International Energy Agency (IEA), “World Energy Balances 2020: Extended Energy Balances,” August 2022, https://www.iea.org/data-and-statistics/data-product/world-energy-balances, all rights reserved, as modified by the Renewable Energy Policy Network for the 21st Century (REN21).5
  6. Based on IEA data, op. cit. note 5.6
  7. European Commission, Directorate-General for Maritime Affairs and Fisheries, “Energy Efficiency,” https://stecf.jrc.ec.europa.eu/web/ee, accessed December 23, 2022.7
  8. European Commission, Directorate-General for Maritime Affairs and Fisheries, “2022 Annual Economic Report on the EU Fishing Fleet: The Sector Is Affected by High Fuel Prices in the Wake of the War in Ukraine,” October 11, 2022, https://oceans-and-fisheries.ec.europa.eu/news/2022-annual-economic-report-eu-fishing-fleet-sector-affected-high-fuel-prices-wake-war-ukraine-2022-10-11_en.8
  9. Food and Agriculture Organization of the United Nations (FAO), “FAOSTAT,” https://www.fao.org/faostat/en/#data/GN, accessed January 10, 2023.9
  10. Ibid. The dimensionless conversion factors used are: GWP-CH4 = 21 and GWP-N2O = 310 (100-year time horizon global warming potential), from Intergovernmental Panel on Climate Change, “SAR Climate Change 1995: The Science of Climate Change,” 1995, Table 4, https://www.ipcc.ch/report/ar2/wg1.10
  11. Ibid.11
  12. Figure 14 from IEA data, op. cit. note 5.12
  13. Ibid.13
  14. Ibid.14
  15. Ibid.15
  16. Ibid.16
  17. International Renewable Energy Agency (IRENA) and FAO, “Renewable Energy for Agri-Food Systems: Towards the Sustainable Development Goals and the Paris Agreement,” 2021, http://www.fao.org/3/cb7433en/cb7433en.pdf.17
  18. R. Van Anrooy et al., “Review of the Techno-Economic Performance of the Main Global Fishing Fleets,” FAO, 2021, https://www.fao.org/3/cb4900en/cb4900en.pdf. 18
  19. IRENA, “Renewable Energy for Agri-Food Systems: How Cross-Sector Partnerships Are Driving Action and Investments,” November 12, 2022, https://www.irena.org/News/articles/2022/Nov/Renewable-Energy-for-Agri-food-Systems.19
  20. IRENA and FAO, “Renewable Energy and Agri-Food Systems: Advancing Energy and Food Security Towards Sustainable Development Goals,” 2021, http://www.fao.org/3/cb7433en/cb7433en.pdf. 20
  21. Ibid..21
  22. Lighting Global, “Market Research on Productive Use Leveraging Solar Energy (PULSE),” September 23, 2019, https://www.lightingglobal.org/resource/pulse-market-opportunity.22
  23. IRENA, “Accelerating Geothermal Heat Adoption in the Agri-Food Sector,” January 2019, https://www.irena.org/publications/2019/Jan/Accelerating-geothermal-heat-adoption-in-the-agri-food-sector.23
  24. IRENA and FAO, op. cit. note 17.24
  25. European Environmental Bureau, “Beyond Net-Zero Emission in Agriculture: Creating an Enabling Climate Governance for Agriculture,” July 5, 2021, https://eeb.org/library/beyond-net-zero-emission-in-agriculture.25
  26. IRENA and FAO, op. cit. note 17. 26
  27. REN21 Policy Database. See Reference Table R4 in the GSR 2023 Data Pack, www.ren21.net/gsr2023-data-pack.27
  28. Mint, “Renewable Energy to Replace Diesel in Agriculture by 2024, Says Govt,” February 12, 2022, https://www.livemint.com/news/india/renewable-energy-to-replace-diesel-in-agriculture-by-2024-says-govt-11644592411948.html.28
  29. REN21 Policy Database, op. cit. note 27. 29
  30. Figure 15 from Ibid.30
  31. Ibid.31
  32. Outlook, “Government Extends PM-KUSUM Scheme Till March 2026 as Covid Affects Implementation,” February 2, 2023, https://www.outlookindia.com/business/government-extends-pm-kusum-scheme-till-march-2026-as-covid-affects-implementation-news-258895; N. Pasupalati et al., “Learnings for Tamil Nadu from Grid-Connected Agricultural Solar Photovoltaic Schemes in India,” World Resources Institute, February 15, 2022, https://www.wri.org/research/learnings-tamil-nadu-grid-connected-agricultural-solar-photovoltaic-schemes-india.32
  33. A. Kumar and D. Mohapatra, “Fuelling India's Future with Bioenergy,” PwC, January 25, 2023, https://www.pwc.in/research-and-insights-hub/fuelling-indias-future-with-bioenergy.html.33
  34. L. Concessao and H. Meenawat, “Distributed Renewable Energy Applications Have a New and Encouraging Framework; Applying It on Ground Is Crucial for Success,” ET EnergyWorld, May 9, 2022, https://energy.economictimes.indiatimes.com/news/renewable/opinion-distributed-renewable-energy-applications-have-a-new-and-encouraging-framework-applying-it-on-ground-is-crucial-for-success/91434372; IRENA and FAO, op. cit. note 20.34
  35. Fraunhofer Institute for Solar Energy Systems (ISE), “Agrivoltaics: Opportunities for Agriculture and the Energy Transition,” April 2022, https://www.ise.fraunhofer.de/content/dam/ise/en/documents/publications/studies/APV-Guideline.pdf; H. Aposporis, “Greece Passes Renewables Law Targeting 15 GW in New Capacity by 2030,” Balkan Green Energy News, June 30, 2022, https://balkangreenenergynews.com/greece-passes-renewables-law-targeting-15-gw-in-new-capacity-by-2030.35
  36. A. Bhambhani, “Turkey Facilitates Solar for Irrigation Systems,” Taiyang News, August 3, 2022, https://taiyangnews.info/markets/turkey-facilitates-solar-for-irrigation-systems.36
  37. Rockefeller Foundation, “REA Launches New Program to Boost GDP, Accelerate Renewable Energy and Unlock Agricultural Productivity in Nigeria,” March 31, 2022, https://www.rockefellerfoundation.org/news/rea-launches-new-program-to-boost-gdp-accelerate-renewable-energy-and-unlock-agricultural-productivity-in-nigeria.37
  38. Fraunhofer ISE, “Agrivoltaics,” https://www.ise.fraunhofer.de/en/key-topics/integrated-photovoltaics/agrivoltaics.html, accessed January 3, 2023. .38
  39. J. Jacobo, “Italy to Allocate US$1.5 Billion for 375MW of Agrivoltaics,” PV Tech, August 29, 2022, https://www.pv-tech.org/italy-to-allocate-us1-5-billion-for-375mw-of-agrivoltaics.39
  40. Italian Ministry for Ecological Transition, “Guidelines for Agrivoltaics,” June 2022, https://www.mase.gov.it/sites/default/files/archivio/allegati/PNRR/linee_guida_impianti_agrivoltaici.pdf; E. Bellini, “France Defines Standards for Agrivoltaics,” pv magazine, April 28, 2022, https://www.pv-magazine.com/2022/04/28/france-defines-standards-for-agrivoltaics; E. Bellini, “Historical Court Ruling for Agrivoltaics in Italy,” pv magazine, June 27, 2022, https://www.pv-magazine.com/2022/06/27/historical-court-ruling-for-agrivoltaics-in-italy.40
  41. A. Fischer, “US Government Allocates $8 Million to Support Agrivoltaics,” pv magazine, December 15, 2022, https://www.pv-magazine.com/2022/12/15/us-government-allocates-8-million-to-support-agrivoltaics.41
  42. Fraunhofer ISE, op. cit. note 38; US National Renewable Energy Laboratory (NREL), “Agrivoltaics,” https://www.nrel.gov/solar/market-research-analysis/agrivoltaics.html, accessed January 3, 2023; NREL, “Benefits of Agrivoltaics Across the Food-Energy-Water Nexus,” September 11, 2019, https://www.nrel.gov/news/program/2019/benefits-of-agrivoltaics-across-the-food-energy-water-nexus.html. 42
  43. Fraunhofer ISE, op. cit. note 35.43
  44. J. Dahm and N. Kurmayer, “Germany to Boost Renewables in Agriculture, Link Moorlands with Solar Panels,” Euractiv, February 11, 2022, https://www.euractiv.com/section/agriculture-food/news/germany-to-boost-renewables-in-agriculture-link-moorlands-with-solar-panels.44
  45. Franhaufer ISE, op. cit. note 35. 45
  46. H. Horton, “Ministers Hope to Ban Solar Projects from Most English Farms,” The Guardian (UK), October 10, 2022, https://www.theguardian.com/environment/2022/oct/10/ministers-hope-to-ban-solar-projects-from-most-english-farms.46
  47. IRENA and FAO, op. cit. note 20.47
  48. Ibid.48
  49. Ibid.49
  50. Acumen, “Acumen Launches a $25 Million Investment Initiative to Power Livelihoods with Clean Energy,” July 12, 2022, https://acumen.org/blog/acumen-launches-a-25-million-investment-initiative-to-power-livelihoods-with-clean-energy.50
  51. F. Agbejule, M. Mattern and J. Mensah, “Savings at the Pump: Financing Solar Irrigation to Support Rural Women,” CGAP, March 22, 2022, https://www.cgap.org/blog/savings-pump-financing-solar-irrigation-to-support-rural-women.51
  52. Interreg Europe, “Romania: New Financing for Renewables in Agriculture,” April 15, 2021, https://projects2014-2020.interregeurope.eu/agrores/news/news-article/11786/romania-new-financing-for-renewables-in-agriculture.52
  53. M. Raji, personal communication with REN21, February 1, 2023.53
  54. US Department of Agriculture, Rural Development, “Rural Energy for America Program Renewable Energy Systems & Energy Efficiency Improvement Guaranteed Loans & Grants,” January 5, 2015, https://www.rd.usda.gov/programs-services/energy-programs/rural-energy-america-program-renewable-energy-systems-energy-efficiency-improvement-guaranteed-loans.54
  55. IRENA, op. cit. note 19. 55
  56. A. Rosell, “Zero CAPEX Solar Heat for Mexican Industry,” Solar Thermal World, March 18, 2022, https://solarthermalworld.org/news/zero-capex-solar-heat-for-mexican-industry.56
  57. A. Rosell, “Solar Heat for Multinational Agribusinesses Under Way,” Solar Thermal World, November 10, 2022, https://solarthermalworld.org/news/solar-heat-for-multinational-agribusinesses-under-way. 57
  58. B. Epp, “10 MW Solar Plant Heats Air for Malting Plant in France,” Solar Thermal World, September 28, 2021, https://solarthermalworld.org/news/10-mw-solar-plant-heats-air-malting-plant-france.58
  59. B. Epp, “Innovation Fund Approves EUR 4.5 Million for Croatian SHIP Plant,” Solar Thermal World, September 16, 2021, https://solarthermalworld.org/news/innovation-fund-approves-eur-45-million-croatian-ship-plant.59
  60. A. Rosell, “Heat Purchase Agreements on the Rise in Spain,” Solar Thermal World, August 10, 2022, https://solarthermalworld.org/news/heat-purchase-agreements-on-the-rise-in-spain.60
  61. S. Schindele et al., “Implementation of Agrophotovoltaics: Techno-Economic Analysis of the Price-Performance Ratio and Its Policy Implications,” Applied Energy, Vol. 265, 1 May 2020, p. 114737, https://www.sciencedirect.com/science/article/pii/S030626192030249X.61
  62. Blind Creek Solar Farm, “About Blind Creek Solar Farm,” https://www.blindcreeksolarfarm.com.au/about-blind-creek-solar-farm, accessed February 12, 2023; Clean Energy Finance Corporation, “NSW Regenerative Agriculture Boosted with Solar and Storage,” July 2022, https://www.cefc.com.au/where-we-invest/case-studies/nsw-regenerative-agriculture-boosted-with-solar-and-storage.62
  63. M. Van Nguyen et al., “Uses of Geothermal Energy in Food and Agriculture: Opportunities for Developing Countries,” FAO, January 1, 2014, https://www.fao.org/publications/card/fr/c/045ca001-4849-43b7-8dc6-e99635ddb5ea.63
  64. R. McRae, “$10m Investment in Geothermal Direct Use in Balikesir, Sindirgi, Turkey,” ThinkGeoEnergy, December 8, 2021, https://www.thinkgeoenergy.com/10m-investment-in-geothermal-direct-use-in-balikesir-sindirgi-turkey; C. Cariaga, “Grant Awarded for Geothermal Greenhouse Installation in Eskisehir, Turkiye,” ThinkGeoEnergy, October 14, 2022, https://www.thinkgeoenergy.com/grant-awarded-for-geothermal-greenhouse-installation-in-eskisehir-turkiye.64
  65. US Department of Energy, Office of Scientific and Technical Information, “2013 Market Trends Report,” January 1, 2014, https://www.osti.gov/servlets/purl/1220825. 65
  66. Energy Sector Management Assistance Program (ESMAP), “Off-Grid Solar Market Trends Report 2022: Outlook,” October 17, 2022, https://esmap.org/Off-Grid_Solar_Market_Trends_Report_2022_Outlook.66
  67. IRENA, “Off-Grid Renewable Energy Statistics 2022,” December 2022, https://www.irena.org/Publications/2022/Dec/Off-grid-renewable-energy-statistics-2022.67
  68. Green Climate Fund, “Hydro-Agricultural Development with Smart Agriculture Practices Resilient to Climate Change in Niger,” October 7, 2021, https://www.greenclimate.fund/project/fp176.68
  69. ESMAP, op. cit. note 66; IRENA and FAO, op. cit. note 20. 69
  70. Efficiency for Access, “Solar Appliance Technology Brief: Walk-in Cold Rooms,” July 2021, https://storage.googleapis.com/e4a-website-assets/EforA_Solar_Technology_Brief_WalkInColdRooms_July-2021.pdf; ESMAP, op. cit. note 66. Snapshot: India based on the following sources: B. Moushumi, “Indian Farmers Turn to Solar-Powered Fridges to Reduce Food Waste,” Scroll.in, December 5, 2022, https://scroll.in/article/1038916/indian-farmers-turn-to-solar-powered-fridges-to-reduce-food-waste; “Food Wastage in India: A Concern,” Eastern Mirror, October 25, 2022, https://easternmirrornagaland.com/food-wastage-in-india-a-concern; F. Birol and A. Kant, “India's Clean Energy Transition Is Rapidly Underway, Benefiting the Entire World,” IEA, January 10, 2022, https://www.iea.org/commentaries/india-s-clean-energy-transition-is-rapidly-underway-benefiting-the-entire-world; H. Lalramenga, “Deputy CM Hmalaknain Khawzawlah Solar Cold Storage Bun Dt. 21.12.2021,” DC Khawzawl, December 22, 2021, https://dckhawzawl.mizoram.gov.in/post/deputy-cm-hmalaknain-khawzawlah-solar-cold-storage-bun.70
  71. ESMAP, op. cit. note 66.71
  72. Based on IEA data, op. cit. note 5.72
  73. Fraunhofer ISE, op. cit. note 35.73
  74. Fraunhofer ISE, op. cit. note 38.74
  75. Fraunhofer ISE, op. cit. note 35.75
  76. FAO, “The State of World Fisheries and Aquaculture 2022. Towards Blue Transformation,” 2022, http://www.fao.org/3/cc0461en/cc0461en.pdf. 76
  77. CLIENT II, “SHRIMPS – Solar-Aquaculture Habitats as Resource-Efficient and Integrated Multilayer Production Systems,” https://www.bmbf-client.de/en/projects/shrimps, accessed January 4, 2023.77
  78. Ibid.78
  79. B. Santos, “Floating Solar Tech for Aquaculture,” pv magazine, January 4, 2023, https://www.pv-magazine.com/2023/01/04/floating-solar-tech-for-aquaculture.79
  80. IRENA, “Accelerating Geothermal Heat Adoption in the Agri-Food Sector,” January 2019, https://www.irena.org/publications/2019/Jan/Accelerating-geothermal-heat-adoption-in-the-agri-food-sector.80
  81. Ibid. 81
  82. Ibid; FAO, op. cit. note 76.82
  83. IRENA, op. cit. note 80.83
  84. IRENA and FAO, op. cit. note 20.84
  85. Ibid.85
  86. FAO, op. cit. note 76.86
  87. Based on IEA data, op. cit. note 5.87
  88. Ibid.88
  89. IRENA and FAO, op. cit. note 20.89
  90. Ibid.90
  91. Ibid.91
  92. Ibid.92
  93. Green Climate Fund, “Climate Resilient Fishery Initiative for Livelihood Improvement in the Gambia (PROREFISH Gambia),” July 20, 2022, https://www.greenclimate.fund/project/fp188.93
  94. R. Van Anrooy et al., op. cit. note 18.94
  95. C. Carletto, “Better Data, Higher Impact: Improving Agricultural Data Systems for Societal Change,” European Review of Agricultural Economics, Vol. 48, No. 4, September 2021, 719-740, https://doi.org/10.1093/erae/jbab030. 95
  96. D. Mohapatra et al., “Decentralised Renewable Energy Innovations to Boost Agri-Sector Productivity & Address Global Food System Challenges,” Alliance for Rural Electrification, January 2021, https://www.ruralelec.org/publications/decentralised-renewable-energy-innovations-boost-agri-sector-productivity-address.96

Renewables in Energy Supply | Challenges and Opportunities

Challenges and Opportunities for the Uptake of Renewables in Energy Supply

Challenges

In the short term, inflation and disrupted supply chains have slowed the deployment of most renewables and pushed up costs.

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Countries have struggled to adjust to price fluctuations in materials and energy, resulting in undersubscribed auctions and tenders due to their conditions not matching the market reality.

Delayed permitting and unfavourable and/or inconsistent policies have led to uncertainty, stalling wind power deployment and slowing investment in new manufacturing capability.

The global markets for CSP and ocean power have slowed, as the historical market leaders have added little new capacity in recent years.

The biggest challenges for renewable heat and fuel markets are the low (sometimes subsidised) prices of fossil fuels and the difficulties in accessing affordable finance.

Extreme drought has hampered hydropower production across parts of Africa, Asia, Europe and North America.

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Opportunities

Renewables offer the potential to mitigate climate change, improve energy security, create jobs and boost local economies.

Even accounting for rising costs, wind and solar power continue to be cost-competitive with fossil fuels and are cheaper than coal-fired generation in most countries.

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The rooftop solar PV market has increased steadily since 2018 and experienced record growth in 2022 as the market became more attractive for both residential and commercial customers.

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The momentum around hydrogen is building, but policies need to prioritise the production and use of renewable energy to avoid simple displacement of emissions and to harness hydrogen's huge potential to decarbonise heavy industry, maritime transport and aviation.

Heat pumps can provide a valuable source of energy system flexibility, enabling greater integration of variable renewable sources and lower energy bills for consumers.

Bioenergy provides alternatives for heating and fuels in heavy industry and transport, such as pharmaceuticals, cement, steel, food and beverages, aviation and maritime shipping.

Transport in Focus | Challenges and Opportunities in Transport

Challenges and Opportunities for the Uptake of Renewables in Transport

Challenges

Current renewable energy production is not keeping pace with the rapid growth in energy demand for transport, especially in emerging regions.

Despite the sharp rise in electric vehicle sales worldwide, most of the electricity used to power battery electric vehicles and to produce hydrogen for fuel cell vehicles still comes from fossil fuels.

The increased use of battery electric vehicles causes concerns about human rights abuses and the sustainability of mining for raw materials, while interest in crop-based biofuels is marred by the potential competition with other land uses. 120

Solutions are still lacking to substantially decarbonise the long-haul truck, aviation and maritime transport industries.

Fuel subsidies remain one of the biggest barriers to the uptake of renewables in transport, and ongoing tax exemptions for kerosene are hindering the development of alternative fuels in aviation.

Opportunities

The rising price of oil and its intrinsic volatility – along with government efforts to boost energy independence – can encourage a dramatic increase in renewable energy generation.

Rising fossil fuel prices and declining prices for electric alternatives could further incentivise consumers to shift to electric vehicles.

Because the electric vehicle market is increasingly consumer-driven and less dependent on regulation, these vehicles could be a financially viable option in countries where public sector support is limited or non-existent. 121

Concerns about the sustainability of mining and hydrogen production for electrified transport could incentivise industry and government to increase recycling and develop circularity-based business models. 122

Broader acknowledgement of developing countries' limited resources to address climate change is driving international organisations and donors to increase funding for energy transition projects, including potentially renewables-based transport projects. 123

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Most of the electricity used to power electric vehicles and to produce hydrogen fuel cells still comes from fossil fuels.
  1. Global GDP from transport calculated by applying transport share of GDP to global GDP, from World Bank, “GDP (current US$),” https://data.worldbank.org/indicator/NY.GDP.MKTP.CD, accessed January 12, 2023. Transport share of GDP estimated using a sample of 94 countries, based on the following sources: Trading Economics, “GDP from Transport,” https://tradingeconomics.com/country-list/gdp-from-transport, and “GDP,” https://tradingeconomics.com/country-list/gdp, both accessed January 12, 2023; Government of Canada, “Transportation Enabling Economy Growth,” https://tc.canada.ca/en/corporate-services/transparency/corporate-management-reporting/transportation-canada-annual-reports/transportation-enabling-economy-growth, accessed January 12, 2023; Gambia Data Portal, “Gross Domestic Product of Gambia,” https://gambia.opendataforafrica.org/lmljwvg/gross-domestic-product-of-gambia?indicator=1000140-transport-storage-communication, accessed January 12, 2023. As the value for Spain included hostelry, to estimate it more accurately the figure corresponding to tourism activity during 2021 was discounted, based on INE, “Tourism Satellite Account of Spain. Year 2021,” https://www.ine.es/dyngs/INEbase/en/operacion.htm?c=Estadistica_C&cid=1254736169169&menu=ultiDatos&idp=1254735576863, accessed January 12, 2023. For Jamaica and Namibia, it was assumed that the values on Trading Economics were provided in local currency rather than US dollars. Global transport workforce calculated by applying transport share of workforce to global workforce, from World Bank, “Labor Force, Total,” https://data.worldbank.org/indicator/SL.TLF.TOTL.IN?end=2021&start=1990&view=chart, accessed January 12, 2023. Transport share of workforce estimated based on a sample of 53 countries, from International Labour Organization, “Indicator Catalogue,” https://ilostat.ilo.org/data, accessed January 12, 2023. 1
  2. International Energy Agency (IEA), “World Energy Outlook 2022,” October 2022, https://iea.blob.core.windows.net/assets/830fe099-5530-48f2-a7c1-11f35d510983/WorldEnergyOutlook2022.pdf; growth estimates based on datasets in IEA, “World Energy Balances Highlights,” October 2022, https://www.iea.org/data-and-statistics/data-product/world-energy-balances-highlights#data-sets, all rights reserved, as modified by the Renewable Energy Policy Network for the 21st Century (REN21).2
  3. IEA, “World Energy Balances,” op. cit. note 2. 3
  4. Ibid.4
  5. Ibid.5
  6. Ibid.6
  7. Ibid. 7
  8. Estimates based on IEA, “Energy Consumption in Transport by Fuel in the Net Zero Scenario, 2000-2030,” October 26, 2022, https://www.iea.org/data-and-statistics/charts/energy-consumption-in-transport-by-fuel-in-the-net-zero-scenario-2000-2030, and on REN21 Policy Database. See Reference Table R3a in the GSR 2023 Data Pack, www.ren21.net/gsr2023-data-pack.8
  9. Estimates based on IEA, op. cit. note 8, and on REN21 Policy Database, op. cit. note 8. 9
  10. REN21 estimates the drop in biofuel demand at 4.4%, based on datasets in IEA, “World Energy Balances,” op. cit. note 2.10
  11. IEA, op. cit. note 8.11
  12. H. Ritchie and M. Roser, “Emissions by Sector,” Our World in Data, https://ourworldindata.org/emissions-by-sector, accessed January 3, 2023.12
  13. IEA, “Transport,” September 2022, https://www.iea.org/reports/transport.13
  14. Ibid.14
  15. IEA, “Global CO2 Emissions from Transport by Sub-sector in the Net Zero Scenario, 2000-2030,” October 26, 2022, https://www.iea.org/data-and-statistics/charts/global-co2-emissions-from-transport-by-sub-sector-in-the-net-zero-scenario-2000-2030. Total value of CO2 emissions for 2021 from European Commission Joint Research Centre, “Global CO2 Emissions Rebound in 2021 After Temporary Reduction During COVID Lockdown,” October 14, 2022, https://joint-research-centre.ec.europa.eu/jrc-news/global-co2-emissions-rebound-2021-after-temporary-reduction-during-covid19-lockdown-2022-10-14_en.15
  16. IEA, op. cit. note 15.16
  17. Ibid.17
  18. IEA, “Energy Efficiency Indicators Data Explorer,” December 2, 2022, https://www.iea.org/data-and-statistics/data-tools/energy-efficiency-indicators-data-explorer.18
  19. Ibid.19
  20. Transformative Urban Mobility Initiative (TUMI), “Sustainable Urban Transport: Avoid Shift Improve (ASI),” March 2019, https://www.transformative-mobility.org/assets/publications/ASI_TUMI_SUTP_iNUA_No-9_April-2019.pdf. 20
  21. Ibid.21
  22. Ibid. 22
  23. IEA, “Global EV Outlook 2022,” May 2022, https://www.iea.org/reports/global-ev-outlook-2022.23
  24. M. Vitorino, “Portugal Sets New Goals for Renewable Energy Consumption,” Lexology, December 12, 2022, https://www.lexology.com/library/detail.aspx?g=fe7c9067-8562-475a-bcb9-399b9a6fe73c; Dutch Emissions Authority, “Renewable Energy for Transport 2022-2030,” https://www.emissionsauthority.nl/topics/general---renewable-energy-for-transport, accessed February 7, 2023.24
  25. European Renewable Ethanol, “Overview of Biofuels Policies and Markets Across the EU,” October 2022, https://www.epure.org/wp-content/uploads/2022/10/221011-DEF-REP-Overview-of-biofuels-policies-and-markets-across-the-EU-October-2022.pdf.25
  26. TUMI, “Curitiba,” April 6, 2022, https://www.transformative-mobility.org/campaigns/curitiba.26
  27. King County, “Transitioning to a Zero-Emissions Fleet,” https://kingcounty.gov/depts/transportation/metro/programs-projects/innovation-technology/zero-emission-fleet.aspx, accessed February 14, 2023.27
  28. C. Isidore, “Why US Gas Prices Are at a Record, and Why They'll Stay High for a Long Time,” CNN Business, June 6, 2022, https://www.cnn.com/2022/06/06/energy/record-gas-prices-causes/index.html; IEA, “World Energy Outlook 2022,” op. cit. note 2.28
  29. Figure 10 from REN21 Policy Database, op. cit. note 8. 29
  30. “Cabinet Amends Biofuels Policy, Advances Ethanol Blending Target to 2025-26,” Economic Times, May 18, 2022, https://economictimes.indiatimes.com/industry/renewables/cabinet-amends-biofuels-policy-advances-ethanol-blending-target-to-2025-26/articleshow/91637676.cms.30
  31. A. Parmar, “Viewpoint: Asian Biofuels Breaking Away from Europe,” Argus Media, December 15, 2022, https://www.argusmedia.com/en/news/2400935-viewpoint-asian-biofuels-breaking-away-from-europe; S. Kelly and J. Renshaw, “U.S. EPA Proposes Revamp of Biofuel Program to Include Electric Vehicles,” Reuters, December 1, 2022, https://www.reuters.com/business/energy/us-epa-proposes-higher-biofuel-blending-volumes-ev-program-2022-12-01.31
  32. REN21 Policy Database, op. cit. note 8. 32
  33. “Brazil to Keep 10% Biodiesel Mandate Until March – CNPE,” Reuters, November 22, 2022, https://www.reuters.com/business/energy/brazil-keep-10-biodiesel-mandate-until-march-cnpe-2022-11-21.33
  34. Figure 11 from REN21 Policy Database. See Reference Table R3b in the GSR 2023 Data Pack, www.ren21.net/gsr2023-data-pack.34
  35. J. Amir, “Thai Government Announces EV Roadmap,” S&P Global, March 16, 2020, https://www.spglobal.com/mobility/en/research-analysis/thai-government-announces-ev-roadmap.html; 35
  36. Baker Mckenzie, “Philippines: The Electric Vehicle Industry Development Act (EVIDA), Republic Act No. 11697, Lapses into Law,” May 10, 2022, https://insightplus.bakermckenzie.com/bm/tax/philippines-the-electric-vehicle-industry-development-act-evida-republic-act-no-11697-lapses-into-law.36
  37. Kelly and Renshaw, op. cit. note 31.37
  38. REN21 Policy Database, op. cit. note 34.38
  39. “Germany Includes Plug-in Hybrids to Achieve Target of 15 Million EVs by 2030,” Power Technology, February 25, 2022, https://www.power-technology.com/comment/germany-target-15-million-evs. 39
  40. The White House, “FACT SHEET: Biden-Harris Administration Proposes New Standards for National Electric Vehicle Charging Network,” June 9, 2022, https://www.whitehouse.gov/briefing-room/statements-releases/2022/06/09/fact-sheet-biden-harris-administration-proposes-new-standards-for-national-electric-vehicle-charging-network. 40
  41. G.Jacquot, “L'obligation de pose de panneaux photovoltaïques sur les grands parkings extérieurs adoptée au Sénat,” Public Senat, November 4, 2022, https://www.publicsenat.fr/article/parlementaire/l-obligation-de-pose-de-panneaux-photovoltaiques-sur-les-grands-parkingshttps://www.publicsenat.fr/article/parlementaire/l-obligation-de-pose-de-panneaux-photovoltaiques-sur-les-grands-parkings.41
  42. Ministry of New & Renewable Energy of India, “India National Hydrogen Mission,” March 2022, https://static.pib.gov.in/WriteReadData/specificdocs/documents/2023/jan/doc2023110150801.pdf. 42
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  44. Ibid.44
  45. “EU Parliament Votes to Ban Sale of Petrol Car by 2035,” Le Monde, February 14, 2023, https://www.lemonde.fr/en/european-union/article/2023/02/14/eu-parliament-votes-to-ban-petrol-car-sales-by-2035_6015745_156.html.45
  46. Transport Environment, “Kerosene Taxation: How to Implement It in Europe Today,” June 2020, https://www.transportenvironment.org/wp-content/uploads/2021/07/2020_06_Kerosene_taxation_briefing.pdf.46
  47. International Air Transport Association, “Fact Sheet: EU and US Policy Approaches to Advance SAF Production,” 2021, https://www.iata.org/contentassets/d13875e9ed784f75bac90f000760e998/fact-sheet---us-and-eu-saf-policies.pdf.47
  48. European Council, “ETS Aviation: Council and Parliament Strike Provisional Deal to Reduce Flight Emissions,” December 7, 2022, https://www.consilium.europa.eu/en/press/press-releases/2022/12/07/ets-aviation-council-and-parliament-strike-provisional-deal-to-reduce-flight-emissions.48
  49. D. Shepardson, “U.S. Outlines Roadmap to Boost Sustainable Aviation Fuel,” Reuters, September 23, 2022, https://www.reuters.com/business/energy/us-outlines-roadmap-boost-sustainable-aviation-fuel-use-2022-09-23.49
  50. US Department of Energy, “SAF Grand Challenge Roadmap – Flight Plan for Sustainable Aviation Fuel,” September 2022, https://www.energy.gov/sites/default/files/2022-09/beto-saf-gc-roadmap-report-sept-2022.pdf.50
  51. D. Larsen, “Denmark Aims for Fossil-Fuel Free Inland Flights by 2030,” Electrive, January 4, 2022, https://www.electrive.com/2022/01/04/denmark-aims-for-fossil-fuel-free-inland-flights-by-2030.51
  52. L. Limb, “It's Official: France Bans Short Haul Domestic Flights in Favour of Train Travel,” euronews, December 5, 2022, https://www.euronews.com/green/2022/12/02/is-france-banning-private-jets-everything-we-know-from-a-week-of-green-transport-proposals.52
  53. SNCF, “Un contrat record pour faire rouler vos trains grâce au photovoltaïque,” https://www.sncf.com/fr/groupe/fournisseurs/contrat-ppa-photovoltaique-sncf-energie-reden, accessed December 18, 2022.53
  54. Ibid.54
  55. P. Gururaja, “A Big First Step Toward Green Shipping Corridors,” ClimateWorks Foundation, February 2, 2022, https://www.climateworks.org/blog/green-shipping-corridors; Mission Innovation, “Green Shipping Corridor Route Tracker,” 2023, http://mission-innovation.net/missions/shipping/green-shipping-corridors/route-tracker; C40 Cities, “Maritime and Port Authority of Singapore, Port of Los Angeles, Port of Long Beach and C40 Cities to Establish a Green and Digital Shipping Corridor,” November 7, 2022, https://www.c40.org/news/maritime-and-port-authority-of-singapore-port-of-los-angeles-port-of-long-beach-and-c40-cities-to-establish-a-green-and-digital-shipping-corridor. Snapshot: US-China based on C40 Cities, “Port of Los Angeles, Port of Shanghai, and C40 Cities Announce Partnership to Create World's First Transpacific Green Shipping Corridor Between Ports in the United States and China,” January 28, 2022, https://www.c40.org/news/la-shanghai-green-shipping-corridor. 55
  56. UN Climate Change Conference UK 2021, “Clydebank Declaration for Green Shipping Corridors,” November 10, 2021, https://ukcop26.org/cop-26-clydebank-declaration-for-green-shipping-corridors.56
  57. BloombergNEF, “Energy Transition Investment Trends 2023,” January 2023, https://about.bnef.com/energy-transition-investment.57
  58. IEA, “Biofuels – Renewables 2021 – Analysis,” 2021, https://www.iea.org/reports/renewables-2021/biofuels?mode=transport&region=World&publication=2021&flow=Consumption&product=Ethanol. See also Reference Table R3a in the GSR 2023 Data Pack, www.ren21.net/gsr2023-data-pack.58
  59. M. Teixeira, “High Energy Prices Fuel Investor Interest in Brazil's Idle Biofuel Capacity,” Reuters, June 8, 2022, https://www.reuters.com/markets/commodities/high-energy-prices-fuel-investor-interest-brazils-idle-biofuel-capacity-2022-06-08.59
  60. S&P Global Commodity Insights, “Top Biofuels Market Trends in 2022 and Beyond,” 2022, https://www.spglobal.com/commodityinsights/en/ci/info/0322/top-biofuels-market-trends-2022-beyond.html; glpautogas.info, “HVO 100 Stations in USA, Map and Updated Listing,” https://www.glpautogas.info/en/hvo100-stations-united-states.html, accessed January 31, 2023.60
  61. Phillips 66, “Phillips 66 Makes Final Investment Decision to Convert San Francisco Refinery to a Renewable Fuels Facility,” May 11, 2022, https://investor.phillips66.com/financial-information/news-releases/news-release-details/2022/Phillips-66-Makes-Final-Investment-Decision-to-Convert-San-Francisco-Refinery-to-a-Renewable-Fuels-Facility.61
  62. S&P Global Commodity Insights, op. cit. note 60; glpautogas.info, op. cit. note 60.62
  63. BloombergNEF, op. cit. note 57; M. Prestes, “Palm Oil for Biodiesel in the Amazon: Sustainable Fuel or Deforestation Risk?” Global Issues, May 4, 2022, https://www.globalissues.org/news/2022/04/04/30517. 63
  64. Figure 12 from BloombergNEF, op. cit. note 57.64
  65. BloombergNEF, “Electric Vehicle Outlook 2022,” 2022, https://about.bnef.com/electric-vehicle-outlook.65
  66. BloombergNEF, “Lithium-Ion Battery Pack Prices Rise for First Time to an Average of $151/kWh,” December 6, 2022, https://about.bnef.com/blog/lithium-ion-battery-pack-prices-rise-for-first-time-to-an-average-of-151-kwh.66
  67. Neste, “Green Finance Report 2021,” 2022, https://www.neste.com/investors.67
  68. P. Tisheva, “Saudi Arabia's Alfanar to Invest GBP 1bn in UK SAF Project,” Renewables Now, March 17, 2022, https://renewablesnow.com/news/saudi-arabias-alfanar-to-invest-gbp-1bn-in-uk-saf-project-777358.68
  69. S&P Global Commodity Insights, op. cit. note 60.69
  70. I. Thomas, “United Airlines Is Aiming to Have Electric Planes Flying by 2030,” CNBC, October 10, 2022, https://www.cnbc.com/2022/10/06/united-airlines-is-aiming-to-have-electric-planes-flying-by-2030.html.70
  71. “Air Canada to Buy 30 Electric Planes from Heart Aerospace,” Reuters, September 15, 2022, https://www.reuters.com/business/aerospace-defense/air-canada-buy-30-electric-planes-heart-aerospace-2022-09-15; W. Bellamy III, “Air Canada Signs Purchase Agreement for Heart's Updated ES-30 Electric Aircraft,” Aviation Today, September 20, 2022, https://www.aviationtoday.com/2022/09/20/air-canada-signs-purchase-agreement-hearts-updated-es-30-electric-aircraft.71
  72. D. Burroughs, “ÖBB to Invest €١bn in Renewable Energy by ٢٠٣٠,” International Railway Journal, May 13, 2022, https://www.railjournal.com/financial/obb-to-invest-e1bn-in-renewable-energy-by-2030.72
  73. International Renewable Energy Agency, “Technology Brief: Renewable Energy Options for Shipping,” January 2015, https://www.irena.org/-/media/Files/IRENA/Agency/Publication/2015/IRENA_Tech_Brief_RE_for-Shipping_2015.pdf.73
  74. International Transport Forum, “ITF Transport Outlook 2021,” May 17, https://www.oecd-ilibrary.org/transport/itf-transport-outlook-2021_16826a30-en. 74
  75. Ibid.75
  76. Ibid.76
  77. Based on recover scenario in Ibid.77
  78. Estimates based on datasets in IEA, “World Energy Balances,” op. cit. note 2.78
  79. Ibid.79
  80. Ibid.80
  81. Ibid. Growth rates calculated using averages pre-COVID-19. 81
  82. Ibid.82
  83. Figure 13 from Ibid. Growth rates calculated using averages pre-COVID-19.83
  84. Ibid.84
  85. Ibid.85
  86. Ibid.86
  87. Road transport's share of emissions based on IEA, “Energy Statistics Data Browser,” https://www.iea.org/data-and-statistics/data-tools/energy-statistics-data-browser?country=WORLD&fuel=Energy%20supply&indicator=TESbySource, August 18, 2022; global emissions from M. Crippa et al., “CO2 emissions of all world countries – 2022 Report,” European Commission Joint Research Centre, 2022, https://publications.jrc.ec.europa.eu/repository/handle/JRC130363; shares of light vehicles based on 2019 values from IEA, op. cit. note 13, and on International Council for Clean Transportation, “Light Vehicles,” https://theicct.org/sector/light-vehicles, accessed December 15, 2022.87
  88. Estimates based on International Organization of Motor Vehicle Manufacturers (OICA), “Global Sales Statistics 2019-2021,” https://www.oica.net/category/sales-statistics, accessed December 16, 2022, and on IEA, “As the Covid-19 Crisis Hammers the Auto Industry, Electric Cars Remain a Bright Spot,” May 18, 2020, https://www.iea.org/commentaries/as-the-covid-19-crisis-hammers-the-auto-industry-electric-cars-remain-a-bright-spot. Europe includes the Russian Federation and Türkiye.88
  89. IEA, op. cit. note 88. 89
  90. Ibid. 90
  91. European Automobile Manufacturers' Association (ACEA), “Vehicles in Use Europe 2022,” January 2022, https://www.acea.auto/files/ACEA-report-vehicles-in-use-europe-2022.pdf; Wikipedia, “List of Countries by Vehicles per Capita,” https://en.wikipedia.org/wiki/List_of_countries_by_vehicles_per_capita, accessed January 10, 2022.91
  92. REN21 Policy Database, op. cit. note 8. 92
  93. Estimates based on Ibid. and on IEA, op. cit. note 8; IEA, “Biofuels,” September 2022, https://www.iea.org/reports/biofuels. 93
  94. Snapshot: Spain based on the following sources: Energías Renovables, “Bioenergía – Una veintena de autobuses urbanos de Madrid abandonan el gas natural y lo sustituyen por biometano de vertedero,” September 8, 2022, https://www.energias-renovables.com/bioenergia/los-autobuses-urbanos-de-madrid-abandonan-el-20220908; Foro de Empresas por Madrid, “Los autobuses madrileños se moverán con biometano,” August 9, 2022, https://www.forodeempresaspormadrid.es/actualidad/foro/los-autobuses-madrilenos-se-moveran-con-biometano; NGV Journal, “Madrid Expands PTV Biogas Plant, Will Be Able to Supply 500 EMT Buses,” April 21, 2022, http://www.ngvjournal.com/s1-news/c4-stations/madrid-expands-valdemingomez-biogas-plant-will-be-able-to-supply-500-buses; Ayuntamiento de Madrid, “Madrid utilizará el biometano de Valdemingómez para mover los autobuses de EMT,” July 9, 2022, https://www.madrid.es/portales/munimadrid/es/Inicio/Actualidad/Noticias/Madrid-utilizara-el-biometano-de-Valdemingomez-para-mover-los-autobuses-de-EMT.94
  95. European Commission, “Mobility and Transport, Biofuels,” https://transport.ec.europa.eu/transport-modes/air/environment/biofuels_en, accessed January 9, 2023; G. Squadrin, B. O'Kelly and S. Barthel, “Viewpoint: HVO, SAF Demand to Outstrip Supply in 2022,” Argus Media, December 22, 2021, https://www.argusmedia.com/en/news/2285785-viewpoint-hvo-saf-demand-to-outstrip-supply-in-2022.95
  96. Airbus, “Airbus A330MRTT Completes First 100% SAF Test Flight on Both Engines,” November 18, 2022, https://www.airbus.com/en/newsroom/press-releases/2022-11-airbus-a330mrtt-completes-first-100-saf-test-flight-on-both-engines; Neste, “First Flight in History with 100% Sustainable Aviation Fuel on a Regional Commercial Aircraft,” June 21, 2022, https://www.neste.com/releases-and-news/renewable-solutions/first-flight-history-100-sustainable-aviation-fuel-regional-commercial-aircraft.96
  97. IEA, “World Energy Balances,” op. cit. note 2. 97
  98. Ibid.98
  99. Ibid.99
  100. OICA, op. cit. note 88; IEA, “Electric Vehicles,” September 2022, https://www.iea.org/reports/electric-vehicles; IEA, “Global EV Data Explorer,” May 23, 2022, https://www.iea.org/data-and-statistics/data-tools/global-ev-data-explorer.100
  101. Here “vehicles” refers to automobiles, trucks, vans and buses. Estimated based on IEA, “Global EV Data Explorer,” op. cit. note 100.101
  102. IEA, “Electric Vehicles,” op. cit. note 100.102
  103. Ibid.103
  104. Ibid. 104
  105. IEA, “Global EV Data Explorer,” op. cit. note 100.105
  106. BloombergNEF, “Electric Vehicle Outlook 2022, Executive Summary, Near Term Outlook,” 2022, https://bnef.turtl.co/story/evo-2022/page/3/2. 106
  107. IEA, “Global EV Data Explorer,” op. cit. note 100.107
  108. IEA, op. cit. note 18.108
  109. Ibid. 109
  110. J. Biba, “Will Charging an Electric Car Ever Be Quick and Easy?” Builtin, November 1, 2022, https://builtin.com/transportation-tech/electric-vehicle-charging.110
  111. INES, “ITE INES.2S Mettre du solaire dans votre véhicule (électrique),” September 15, 2022, https://www.ines-solaire.org/news/ite-ines.2s-mettre-du-solaire-dans-votre-vehicule-electrique; E. Bellini “Vehicle-integrated PV for Heavy-duty Trucks,” pv magazine, October 21, 2021, https://www.pv-magazine.com/2021/10/25/vehicle-integrated-pv-for-heavy-duty-trucks.111
  112. International Organization for Standardization, “ISO 15118-20:2022(en) Road vehicles — Vehicle to grid communication interface — Part 20: 2nd generation network layer and application layer requirements,” 2022, https://www.iso.org/obp/ui/#iso:std:iso:15118:-20:ed-1:v1:en; Virta, “Vehicle-to-Grid (V2G): Everything You Need to Know,” https://www.virta.global/vehicle-to-grid-v2g, accessed January 4, 2022.112
  113. IEA, “Fuel Cell Electric Vehicle Stock by Region and by Mode, 2021,” October 26, 2022, https://www.iea.org/data-and-statistics/charts/fuel-cell-electric-vehicle-stock-by-region-and-by-mode-2021. 113
  114. US Department of Energy, “Hydrogen's Role in Transportation,” February 25, 2022, https://www.energy.gov/eere/vehicles/articles/hydrogens-role-transportation.114
  115. IEA, “Hydrogen,” September 2022, https://www.iea.org/reports/hydrogen; Hydrogen Central, “Quantron Hydrogen-Powered Truck Has a Range of 1500 Km,” September 27, 2022, https://hydrogen-central.com/quantron-hydrogen-powered-truck-range-1500-km.115
  116. IEA, “Fuel Cell Electric Vehicle Stock and Hydrogen Refuelling Stations by Region, 2021,” October 26, 2022, https://www.iea.org/data-and-statistics/charts/fuel-cell-electric-vehicle-stock-and-hydrogen-refuelling-stations-by-region-2021.116
  117. IEA, op. cit. note 115.117
  118. Ibid.118
  119. Ibid.119
  120. Business & Human Rights Resource Centre, “Human Rights in the Mineral Supply Chains of Electric Vehicles,” https://www.business-humanrights.org/en/from-us/briefings/transition-minerals-sector-case-studies/human-rights-in-the-mineral-supply-chains-of-electric-vehicles, accessed March 8, 2023. 120
  121. BloombergNEF, op. cit. note 106.121
  122. BloombergNEF, “Electric Vehicle Outlook 2022, Executive Summary, Batteries and Charging Infrastructure,” 2022, https://bnef.turtl.co/story/evo-2022/page/6/2.122
  123. Green Climate Fund, “B.33/11 Launch of the Second Replenishment of the GCF,” August 9, 2022, https://www.greenclimate.fund/decision/b33-11; United Nations Framework Convention on Climate Change, “COP27 Reaches Breakthrough Agreement on New ‘Loss and Damage' Fund for Vulnerable Countries,” November 20, 2022, https://unfccc.int/news/cop27-reaches-breakthrough-agreement-on-new-loss-and-damage-fund-for-vulnerable-countries; Rockefeller Foundation “Global Philanthropies Create New Multilateral Development Banks Challenge Fund to Increase Investment in Developing Countries,” December 10, 2022, https://www.rockefellerfoundation.org/news/global-philanthropies-create-new-multilateral-development-banks-challenge-fund-to-increase-investment-in-developing-countries. 123

Renewable Energy Systems and Infrastructure | Challenges and Opportunities

Challenges and Opportunities for the Uptake of Renewable Energy Systems and Infrastructure

Challenges

The variable nature of solar and wind power, which can fluctuate based on weather patterns and other variables, could affect system stability, making it more difficult to balance supply and demand.

Curtailment of variable renewable energy sources is expected to increase as their share in electricity systems increases.

Integration of variable renewables in electric grids requires careful planning and co-ordination among different stakeholders.

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Opportunities

Grid infrastructure, storage, digitalisation, planning and accelerated permitting are key to realising the full integration of renewables in the power system.

Electrification, sector coupling, thermal storage and demand side-management can optimise the use of renewables in the energy system.

The number of countries with high shares of variable renewables in the electricity system is increasing.

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Global Overview | Challenges and Opportunities

Challenges and Opportunities Towards the uptake of renewable energy

Challenges

The lack of robust data and co-ordination across some demand sectors, such as agriculture, hinders progress tracking, policy development and effective integration of renewable energy solutions.

The capital-intensive nature of renewable energy investments, coupled with the cost of replacing existing infrastructure, poses affordability challenges.

Inadequate policy frameworks and incentives for renewables adoption, as well as the siloed nature of energy policies, impede the widespread uptake of renewables.

Persistent resistance from fossil fuel companies slows the transition to renewables in multiple sectors, hindering progress towards sustainable energy systems.

Technological limitations and high upfront costs for renewable solutions in high-temperature industrial processes, long-haul transport and certain building types pose challenges in achieving widespread decarbonisation.

Investments in grid infrastructure development and permitting policies are current bottlenecks for the integration of renewables in electric grids.

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Opportunities

Adoption of renewables in all demand sectors can reduce dependence on fossil fuels, protecting them from price volatility and supply shocks.

Rising fossil fuel prices, declining renewable costs, and increased international funding for energy transition projects provide opportunities for accelerated renewables uptake in all sectors. Sectors can benefit from cost savings, improved sustainability practices and increased competitiveness by embracing renewables.

Integration of renewables offers opportunities for cost reduction, energy savings, and improved resilience, particularly for low-income households.

Enhanced co-ordination among government ministries and stakeholders can lead to improved policy frameworks and incentives, fostering the adoption of renewables across sectors. Renewables create social value through generating employment opportunities, improving energy security and access, bringing considerable health benefits, reducing gender inequalities and strengthening local value chains. (See GSR 2023 Economic & Social Value Creation Module.)

Regional interconnections and improved storage solutions can help integrate a higher share of renewables into the energy system.

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Economic & Social Value Creation | Challenges and Opportunities

Challenges and Opportunities

Challenges

Although emerging and developing economies account for two-thirds of the world's population, they represent only one-fifth of global investment in renewables and one-tenth of global financial wealth.

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Women are still underrepresented in the renewable energy workforce with less than a third of total employment.

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For the first time in decades, the number of people without access to electricity is rising and more than half of the countries without universal access to electricity or clean cooking do not have targets to achieve this.

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Annual investment across all areas of the energy sector in emerging and developing countries has fallen by around 20% since 2016, due to the rising cost of debt and equity.

Opportunities

Countries are taking concrete steps to improve local supply chains for renewables to maximise the economic and social value from renewable energy. Regulations governing the use of locally produced materials are in place in more than 20 countries, including 7 advanced economies.

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Renewables are the most efficient and affordable way to achieve universal access to energy. The number of people gaining access to electricity through off-grid renewable-based systems more than doubled from 19 million in 2012 to 41 million in 2021.

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The energy transition is projected to result in a global net gain in employment, with more jobs created by ramping up renewable capacity than lost by phasing out fossil fuels. An estimated 70% of jobs in the oil and gas industry overlap with the skills needed for renewable energy jobs.

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Many governments are addressing the need to increase and diversify the renewable energy workforce, such as by offering programmes to train women, Indigenous Peoples and other marginalised groups.