What Does COP-26 Mean for the Future of Renewables?
This week, we discuss COP 26 and the future of renewable energy generation, with take-home tips from wind energy expert, Ranjit Mene.
The UN’s climate change conference in Glasgow, also known as COP26, meets this month. Heads of state, climate change experts and campaigners will gather together to assess how well the global community is doing to keep the planet’s warming to 1.5 degrees Celsius. There will be a push for countries to set new, ambitious targets to reduce carbon emissions.
The agenda includes a debate on how to transition to clean, renewable sources of energy, one of the key ways in which we can realise the ambition of becoming net zero carbon in future.
GridDuck takes a look at the current picture and speaks to Ranjit Mene, a renewable energy expert for his predictions and hopes for the future.
What’s at stake?
In 2015, nearly 200 countries signed the Paris Agreement, which charted a global course to fight climate change. One of the main aims was to keep global warming to “well below” 2 degrees Celsius. The target of 1.5 degrees Celsius is often quoted as a goal, because many scientists believe that warming beyond this point could cause more severe climatic changes to our planet, such as a rise in droughts, fires and floods.
At the heart of the agreement is that countries set their own nationally determined contributions (NDCs), targets for reducing their carbon emissions. Countries resubmit targets periodically, with the intention that they will be improved upon.
More than 50 countries, including the UK, have pledged to meet net-zero targets as part of this year’s COP26. Progress is reviewed every five years at subsequent climate change conferences - this is the first since Paris after it was cancelled last year because of Covid-19.
On the table is also a discussion of phasing out coal and how climate change mitigation measures will be financed. In 2009, wealthier nations collectively pledged at least $100bn a year until 2020, to help developing nations make more progress in reducing carbon emissions and fight climate change. This target has not been met and risks some of the world being left behind, an outcome we can’t afford.
How is the world doing?
The consensus is generally not good. In the run-up to COP26, there have been reports that track how well countries are doing in reducing their carbon emissions.
The UN’s Production Gap Report, released in October, concluded that governments around the world “still plan to produce more than double the amount of fossil fuels in 2030 than what would be consistent with limiting global warming to 1.5°C”. This is in spite of their climate commitments and promises.
Meanwhile, the UN’s Emissions Gap Report found that the world is on track to warm by 2.7°C by the end of the century, well above the level agreed in Paris. It also concluded that the new and updated NDCs will not go nearly far enough in cutting greenhouse gas emissions to keep within the 1.5°C threshold. The report said that the plans will cut roughly 7.5% off greenhouse gas emissions by 2030 when what’s needed is a cut of 55%.
The World Meteorological Organization also released its latest Greenhouse Gas Bulletin in October. It revealed that 2020 reached a new record for the abundance of greenhouse gases despite the pandemic. The trend is continuing into 2021. One of the conclusions reached is that we are “way off track”.
How does the energy sector fit in?
The energy sector (electricity, heat and transportation) accounts for about 74% of total carbon emissions. In order to have any chance of reducing our impact on the planet, energy must be part of the solution. Already, there are days when 50 to 60% of our electricity generation comes from renewable and low carbon sources. The offshore wind target is 40 gigawatt. Current levels in the UK are 10GW, a fourfold increase.
There are significant advantages to switching to renewables that aren’t related to climate change. For instance, it will be cheaper to get our electricity and we will not be subject to some of the energy price fluctuations that have recently rocked the sector. But there will be upfront costs initially and everyone must be on board with the transition, from politicians and business leaders through to consumers.
Renewable energy - what’s the verdict?
In October, the International Energy Agency issued its yearly World Energy Outlook. It predicts that the energy transition - in other words, the move towards renewables - is on its way but that it faces challenges. In particular, policy is singled out as one of the factors hampering progress.
The good news is that the energy transition includes actions that will be cost-effective. These savings can be passed on to consumers. The report highlights that there needs to be a “relentless focus on energy efficiency”, achieved through more efficient materials and a change to our behaviour. As GridDuck has pointed out before, it’s not just about supply, we must also look at reducing our demand.
Even more positively, the transition, the IEA says, will create more jobs than keeping the status quo. The IEA estimates that somewhere between 13 to 26 million jobs will be created, depending on how far we are able to meet our ambitions. It concludes that this will more than offset the decline in employment in the fossil fuel sector.
What do experts think?
“The journey has started but you just need to accelerate the pace,” says Ranjit Mene, a GridDuck investor and the founder partner of Green Tech Investment Partners. The Norwegian-based company advises and invests in renewable energy projects globally, including GridDuck.
The world has come a long way, Ranjit tells GridDuck, but more needs to be done quickly. He feels that progress could be hampered by regulation and policy, echoing some of the IEA findings.
For example, he believes we can decarbonise all our power supply by using more onshore and offshore wind, but the pace of deployment is slowed down by regulatory hurdles. It takes too much time to get consent and find a route to market, he argues.
“Many projects may get stuck in an early development phase,” Ranjit adds, “which is risky, because, for example, there could be a rule change that comes along later which means that a project isn’t viable anymore.”
Meanwhile, there are challenges about perception, he says: “A lot of countries still think that renewable energy is expensive, they still think that offshore wind or onshore wind is expensive, but actually it’s not. In many countries, it’s the cheapest form of [energy] generation there is in terms of levelised cost of energy.”
That said, Ranjit accepts that there will be initial upfront costs to things such as solar panels but the savings in the long run will compensate for these investments. “The important thing is that the running costs are so much cheaper for the next 20 to 30 years. So you have to look at it from a whole-life perspective.”
He feels “quietly optimistic” that we will meet our COP26 targets because governments are under pressure to act, and awareness of the problem has grown. People and corporations are driving some of this change. Young activists, in particular, are vocal and engaged in finding solutions.
What you can do
Businesses account for more than half of the UK’s overall energy consumption. Manufacturing and construction are particularly big consumers. Energy is also a big cost to businesses, affecting the company’s bottom line.
Most of us cannot transition to renewable energy overnight. One thing you can do immediately is check whether your energy supplier can provide green energy and is committed to it.
Additionally, you can take steps to reduce your energy consumption and eliminate as much waste as possible. Not only would this bring down your carbon emissions, it will save you money too. With energy prices reaching new highs, the savings could be substantial. We previously produced this blog with energy-savings tips for businesses.
GridDuck’s clients span several sectors, including hospitality, farming and manufacturing. If you need advice about saving energy and reducing waste in your business, schedule a quick and friendly call with Miles. Our platform controls and monitors hundreds of appliances, giving you the knowledge you need to bring your energy costs down.