INGENIEUR
decreased by nearly a third over the same
period (The International Renewable Energy
Agency or IRENA, 2015).
●●
From a purely economic standpoint, the
levelised cost of electricity (LCOE) of utilityscale solar PV has been cut in half from
2000 to 2014 (IRENA, 2015).
●●
With all externalities considered, including
health and environmental costs associated
with fossil fuel combustion, renewables
become even more attractive.
According to the International Energy Agency
(IEA), CO2 emissions from the generation of energy
during combustion accounts for approximately
60% of global emissions (IEA, 2013a). To combat
the rise of global emissions, energy generation
from renewable energy, including VRE sources,
forms a strong alternative option.
●●
VRE sources produce far less air pollution
than traditional generation. In fact, the
energy payback period for a solar PV
panel ranges from as little as one to four
years while wind turbines produce more
(clean) energy than was used in their
manufacturing in less than a single year.
●●
As mentioned, when negative externalities
are considered, the case for increased
generation from renewable sources from
an economic and social welfare standpoint
becomes even stronger.
LCOE of utility-scale solar PV has been cut in half
smarter with more flexible energy systems that
can efficiently accommodate new intermittent VRE
generation capacity. A number of barriers stand in
the way, but these barriers are lowering.
Accelerating VRE integration requires a multifaceted approach, including development of
strong policy frameworks, long-term planning
perspectives in power plant and transmission
infrastructure investments, advancement of grid
operations and increased engagement with civil
society and the private sector. Fluctuating oil
prices may not heavily impact VRE installation
figures in the near-term as oil accounts for only
4.10% of electricity production in the AsiaPacific region (ESCAP, 2015). Many policymakers
have made commitments towards achieving
established goals of renewable energy capacity
that are less likely to be influenced by short-term
fluctuations in fossil fuel prices.
The barriers to capturing and integrating
VRE resources are getting lower
Renewable Energy
If the energy available from solar and wind could
be captured on a large scale, annual energy needs
could be met within days, or even hours. However,
technology for capturing and storing energy,
stability of distribution systems, capital costs and
even physical space have presented challenges to
VRE uptake within the world’s energy systems. But
today, technology is advancing at unprecedented
speeds and costs, particularly for solar PV, and
prices are dropping more rapidly than predicted
just a few years ago.
Current trends and future outlook clearly point
to continued expansion of VRE globally and in
the Asia-Pacific region; however, the evolution of
the electricity mix will require grids to become
There are strong and impressive indications of the
Asia-Pacific region’s large and ever-rising interest
in renewable energy as a fundamental component
of a secure and sustainable electricity mix.
Renewable energy encompasses many different
sources of energy derived from natural processes,
which are replenished at a faster rate than they are
consumed. Examples include energy from biomass,
flowing water (i.e. rivers and the ocean), heat from
the Earth’s interior, sunlight and wind. Whether in
the power, building, industry or transport sectors,
renewable energy can be used for electricity
generation, heating/cooling and fuel for mobility.
In such ways, renewable energy exists as a viable
alternative and complement to fossil fuels.
6
42
VOL
VOL67
55JULY-SEPTEMBER
JUNE 2013 2016