INGENIEUR
heating and cooling sector, in particular, have not
progressed, although heat represents nearly half
of annual final energy consumption. To resolve a
structural problem of this magnitude, both supply
and demand-side barriers to increasing the use of
renewables in both sectors must be addressed,
such as a lack of trained personnel, costs to retrofit
or upgrade existing facilities, a lack of awareness or
knowledge of renewable alternatives, the reluctance
to change and low consumer confidence. These
barriers and others can and should be tackled
through a suite of programmes and policy support
options, including public awareness campaigns,
training programmes and renewable energy
incentive policies.
PLANNING FOR A DISTRIBUTED FUTURE
It is imperative to plan proactively for a future with
a higher amount of distributed energy generation.
There is a growing trend towards generation
closer to the consumption point, and the use of
distributed renewable energy is rising in both
developing and developed countries. In developing
countries, the use of distributed renewables is
primarily a tool for increasing energy access,
particularly in rural areas. In developed countries,
it is in response to a demand for self-sufficiency
and a desire for more-reliable electricity for those
connected to the grid, with an increasing number
of ‘prosumers’ emerging.
This change necessitates advanced planning
that incorporates a transition to new business
models and several policy incentives, while also
taking into account the expansion of rooftop solar
installations, decreasing storage costs, increasing
energy efficiency measures, the development of
community energy projects and the involvement
of a new ‘smart’ technology industry. It will also
require a scaling up of infrastructure investments
to maintain and build stable grid networks ready
to integrate high shares of variable renewables.
Comprehensive energy planning is needed to
intensify research, development and deployment
of enabling infrastructure for distributed
resources, including strengthened electricity
networks, energy storage, demand response and
flexible power plants. In industrialised countries,
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a change in existing infrastructure needs to take
place. In developing countries, the concept of
distributed resources should be taken into account
in planning and investment, rather than defaulting
to the traditional model of connecting everyone
to a centralised grid. To provide proper guidance
to decision makers, tools need to be developed
that reflect these new renewable energy realities
and changing business models, and that help to
plan for the integration of distributed renewables
in developing and developed countries alike.
Rather than resorting to an ‘either or’ mentality,
off-grid and on-grid solutions can be pursued
simultaneously.
The private sector also should plan for a
decentralised energy landscape, as the rapid
and exponential growth of renewable power
generation and distributed resources comes
with both opportunities and challenges, resulting
in both winners and losers. In response to new
competition and the disruption of traditional
business models, some utilities and electricity
suppliers are resisting change. Others, however,
are repositioning themselves and taking
advantage of renewable energy opportunities,
by shifting more towards renewable assets and
new markets and embracing the idea of a much
more decentralised future power system, with less
emphasis on fossil fuels.
ADAPTING TO THE NEW, COMPLEX
ENERGY SYSTEM
Systemic, cross-cutting approaches are needed
for scaling up renewables. Policies have often
focused on a single sector source or technology
and were envisioned in the context of centralised
power (infra)structures, which no longer reflect the
reality of an increasingly complex energy system
with increasing crossover and decentralisation.
Planning should occur across sectors and across
Government departments and Ministries; policy
design should be performed in close dialogue
with the public and private sectors; and policies
at different levels of Government should be
complementary and reinforcing.
Scaling up renewables is often less a
problem of finance, and more one of political will