A significant part of the pro-ecological reforms as part of the transformation of the energy sector and the development of renewable energy sources is carried out by private companies.
However, these are usually undertakings not resulting from market processes only from changing legal norms established by the state administration.
In addition, the construction of large nuclear power plants, water plants and the type of large wind and solar farms absorbs huge financial resources with predicted relatively low profitability.
Therefore, private enterprises are not interested in investing in the development of large power plants that produce electricity under renewable energy sources if the state does not provide financial support under financial guarantees and a share in investment costs.
The development of electromobility in the automotive industry in some countries is also supported by the state to a large extent.
In some countries, the state from the budget funds of the central public finance system refinances a significant part of the costs of purchasing an electric car and finances the development of the necessary infrastructure of electric vehicle charging points deployed on the streets and arteries.
Therefore, the development of renewable energy sources, ie the key element of the pro-ecological transformation of the energy sector, should be coordinated organisationally and financially supported by the state.
In the context of increasing emissions of greenhouse gases to the atmosphere and the ever-faster global warming process, the pro-ecological transformation of the energy sector should be carried out as soon as possible.
It is not possible to implement proecological reforms in the energy sector and implement ecological innovations in other sectors of industry as well as wait for the resources of energy (hard coal, lignite, oil, natural gas) to run out.
This process can not be left solely to the market mechanism within the framework of classical or neoclassical economics.
In order for an environmentally-friendly transformation of the energy sector to be effected efficiently and as soon as possible, a significant share of financial support from the state is indispensable.
Do you agree with my opinion on this matter?
In view of the above, I am asking you the following question:
Should the state co-finance the development of renewable energy sources or only the private sector?
Please reply
I invite you to the discussion
Thank you very much
Best wishes
Yes, all states must support the renewable energy resources' development. It is a global interest to sequester the atmospheric Carbon and other green house gases. Each country must participate willingly.
Agreed with the opinion of Mr Dariusz on the subject matter.
Dear Dariusz, some states (especially Germany) co-finance the development of renewable energy, while others (less rich) wait till the market will make them competitive. The approach of Germany has resulted in such paradoxical fact as higher fraction of solar energy in balance comparing with Spain, with double the average intensity of solar radiation.
I have a coauthored chapter about the problems for penetration of renewable energy in this book: Chapter Renewable Energy: Models, Implications, and Prospects
Dear Dariusz, some government provide incentives such as (i) Provision of land for power projects or compensation of private developers for land acquisition where applicable (ii) Fiscal and non-fiscal incentives including tax exemptions on power equipment in line with the Rwanda Investment Code etc...
Because of its environmental benefits & financial returns taking longer time, State Financing is a necessity.
YES, all states must support the renewable energy resources' development. It is a global interest to reduce the CO2 and other green house gases. All countries that signed the PARIS agreement to stop the temperature raising under 1.5 degrees (based on 1990 status) have huge responsibilities, not only *on paper* but also in action, that implies also money.each country must active participate, according the amount of gases emitted, but also taking into account the financial possibilities and the peoples' status/willing/..
Yes, all states must support the renewable energy resources' development. It is a global interest to sequester the atmospheric Carbon and other green house gases. Each country must participate willingly.
all applications must get support! the environment is the SAME for all, and unique!
This support is one of the ways to minimize import of hydrocarbons, coal etc. at a state level as well as to improve ecological situation in many cases. Rapid decline of production costs of solar and wind energy make renewables competitive at the energy markets, thus reducing state expenditures for fuels.
We need a price on carbon. This is the only way to swich from fossil fuels to renewables.
Here is the actual development. https://www.worldbank.org/en/news/press-release/2019/04/13/coalition-of-finance-ministers-for-climate-action
here you find the research: https://newclimateeconomy.report/2018/
I believe the state must finance for renewable energy related affairs as the private firms's obvious motive will be to gain profit which is by default not sustainable.
yes,I highly agree with the opinion. The high cost of developing some of the renewable energy source will hinder private sector who are profit oriented. the state can invest in feasibility study, exploration and initial production stages before the private sectors takes over. partnership between state and private sector will enhance speedy development of the sector. state can provide infrastructure required while private sector can assist in training and knowledge impacting.Kenya government formed its own parastatal whose mandate is to explore and deliver steam for geothermal energy IPP (independent private partnership) who are in-charge of converting the steam to power before delivering to the consumers. the partnership helps in fast-tracking of geothermal energy in Kenya
Dear Friends and Colleagues of RG
In the coming years, humanity should carry out pro-ecological reforms of the classic energy based on the burning of minerals by converting it into environmentally friendly energy based on renewable energy sources. It should be possible to allocate as much as possible to this environmentally-friendly transformation of the energy industry because what will be realized in this matter over the next dozen or so years depends on the pace of the progressive and accelerating process of greenhouse gas emissions and global warming. Ecological innovations developed primarily in the field of new technologies of renewable energy sources are helpful in the process of proecological energy transformation.
Thanks to ecological innovations, the scope and possibilities of implementing sustainable ecological development are increasing. In connection with the progressing global warming process, it is necessary to develop eco-innovations in the field of renewable energy development, improvement of sorting techniques, recycling, electromobility, organic farming, plastic reduction from packaging and conversion of plastics to biodegradable materials, etc.
In this way, through the development of eco-innovations and their implementation on an industrial scale, it is possible to implement a sustainable pro-ecological economic development in modern economies. This is a key challenge for humanity in the 21st century. It is a challenge to the necessary and possibly quick implementation in the coming years.
Best wishes
The use of renewable energies as a source and the financial support of the private sector for efficient and efficient use of resources may reveal (hidden) profits that have not yet been found. The financial surplus generated by the profits generated by the supports can be transformed into production investments with the help of technology and increase economic growth, such as employment and welfare in the agriculture, industry, services and information sectors. However, the legal infrastructure necessary to improve the country's welfare in the long run - demonstrates that the establishment of renewable energies as national investment through appropriate fiscal policies is indispensable for today's global economic and environmental challenges.
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