Distributed RE is the future of green energy transition
What we see in climate negotiations in recent times is an appreciation of the need of the hour: Governments and non-governmental entities making commitments to help countries implement their net-zero pledges. However, despite these commitments, the global average temperature in 2100 is expected to rise to around 2.1°C above pre-industrial levels, according to estimates by Climate Action Tracker (CAT), an independent analysis produced by two research organisations. This falls short of the goals stipulated in the Paris Agreement, which calls for limiting the global temperature to 1.5°C above pre-industrialera levels by the end of the century. Therefore, a pivotal move to bend the global emissions curve becomes imperative.
Immediate climate action is especially critical for a post-pandemic future. A historic rise was seen in CO2 emissions in 2021 due to a sudden spike in oil and coal consumption. With just 2% of pandemic recovery finance spent on clean energy, emissions are expected to reach an all-time high in 2023. Although an energy economy founded on clean pathways is emerging, energy transformation has a long way to go.
Stitching together unlikely alliances with diverse players is crucial. It is heartening to see efforts towards a clean energy future gaining momentum. For example, the Global
Energy Alliance for People and Planet (GEAPP) aims to unlock over $100 billion in public and private capital over the next decade, to fast-track climate solutions in Africa, Asia, and Latin America. In support of GEAPP, Italy, Denmark and the United Kingdom are working in tandem with large investment commitments made by finance institutions such as Asian Development Bank and African Development Bank and philanthropies such as the Rockefeller Foundation and Bezos Earth Fund.
The investment will be the lifeblood of global energy transitions. Calling for climate finance of $1 trillion, Prime Minister (PM) Narendra Modi highlighted in his COP26 address that developing nations cannot achieve ambitious targets of netzero with older, unfulfilled climate finance targets. Energy-poor countries need funding to accelerate their carbon-cutting goals and invest in new technologies to decouple their growth trajectories from fossil fuels.
During his inaugural address at the 21st edition of the World Sustainable Development Summit (WSDS), organised by The Energy and Resources Institute (TERI), PM Modi said energy requirements in India are expected to nearly double in the next 20 years, which will require adequate financing. The need to address energy poverty also gains emphasis in the backdrop of the pandemic. The preliminary total estimates for meeting India’s climate change actions between now and 2030 is estimated at $2.5 trillion (at 2014-15 prices).
The role of investment is being reflected the world over. India’s renewable energy investment is likely to cross $15 billion in 2022 as industry leaders, governments, and private sector actors are aiming for 36% to 38% of energy to be sourced from renewables by 2030.
What pathways should these investments take? Four key solutions can close the gap with a 1.5°C path. First, a concerted push for clean electrification through scaling up the deployment of renewable energy technologies. Second, a focus on energy efficiency and measures to lower energy demand through technology deployment and behavioural change. Third, cutting methane emissions from fossil fuel operations. Fourth, investing in clean energy innovation.
Global partnerships can open new channels of support through technology or financial resources being shared. For science and technology to inform climate action policies, developing countries need ambitious, concrete research and development (R&D) funding and supportive funding infrastructure. Developing countries can also integrate costeffective indigenous technologies into energy planning.
For instance, distributed renewable energy (DRE) – in which power from renewable sources is generated near points of use instead of centralised plants – can help achieve the Global South’s ambitious renewable energy targets as well as increase access to reliable and modern energy, if a favourable regulatory and policy environment is created. DRE’S applications such as rooftop solar can decarbonise the developing world’s manufacturing supply chain; solar agri-pumps could provide solar-based irrigation solutions, and the faster implementation of electric vehicles into the urban freight.
DRE is the future of green energy transition. Increasing the scale of DRE would offer an opportunity to meet renewable energy targets and provide returns to investors. A collaborative approach can help several nations access the funding, talent, resources, and pathway to achieve their clean energy goals. The Global South has joined the movement for change. However, with the North’s support, it can lead the world to transition to clean energy.