Ingenieur July-Sept 2016 Ingenieur July-Sept 2016 | Page 38

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, 6 36 VOL VOL67 55JULY-SEPTEMBER JUNE 2013 2016 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