As the world transitions towards renewable energy sources, overcoming barriers to large-scale projects is paramount. Join find well real-time answers to this question as we unravel the challenges hindering the deployment of renewable energy infrastructure and explore pathways to unlock the full potential of solar, wind, and other clean energy technologies. Please help pitch your ideas as it counts a lot.
The most obvious and widely publicized barrier to renewable energy is cost—specifically, capital costs, or the upfront expense of building and installing solar and wind farms. Like most renewables, solar and wind are exceedingly cheap to operate—their “fuel” is free, and maintenance is minimal—so the bulk of the expense comes from building the technology.
The average cost in 2017 to install solar systems ranged from a little over $2,000 per kilowatt (kilowatts are a measure of power capacity) for large-scale systems to almost $3,700 for residential systems. A new natural gas plant might have costs around $1,000/kW. Wind comes in around $1,200 to $1,700/kw.
Higher construction costs might make financial institutions more likely to perceive renewables as risky, lending money at higher rates and making it harder for utilities or developers to justify the investment. For natural gas and other fossil fuel power plants, the cost of fuel may be passed onto the consumer, lowering the risk associated with the initial investment (though increasing the risk of erratic electric bills).
However, if costs over the lifespan of energy projects are taken into account, wind and utility-scale solar can be the least expensive energy generating sources, according to asset management company Lazard. As of 2017, the cost (before tax credits that would further drop the costs) of wind power was $30-60 per megawatt-hour (a measure of energy), and large-scale solar cost $43-53/MWh. For comparison: energy from the most efficient type of natural gas plants cost $42-78/MWh; coal power cost at least $60/MWh.
Even more encouragingly, renewable energy capital costs have fallen dramatically since the early 2000s, and will likely continue to do so. For example: between 2006 and 2016, the average value of photovoltaic modules themselves plummeted from $3.50/watt $0.72/watt—an 80 percent decrease in only 10 years.
A solar farm under construction.
Selecting an appropriate site for renewables can be challenging.
On a local (domestic) scale solar energy has a lot going for it: relatively low capital, although back-up is needed for the 50% of the year when there is no sun and over 30% with high cloud cover. Battery prices are not falling as fast as cells, and local networks from houses to grids are not as easy as people assume. Wind power has not reduced in price and is highly capital intensive, which is killing it off in the western world. Europe is at present providing vivid illustration of the industrial collapse that follows expensive energy and foolish energy policies. Well-farmed biofuel-based power is probably the best for most countries in terms of cost and reliability. Cane sugar factories could easily be power stations beyond the captive factory.
- Badges
- Science topic
- Similar topics
- Psychology