Importance of investment in solar/wind farm towards global energy transition

November 5, 2020
416

Importance of investment in solar/wind farm towards global energy transition

Tags :energy transition solar farm wind farm

Reduction of energy-related carbon dioxide emissions is at the very heart of energy transition across the globe, the world needs to shift from fossil fuels which have been at the center of climate change to cleaner energy sources, such as solar and wind energy. Renewable forms of energy is the key if Asia-Europe is to reach its agreed-upon climate goals, and the cost of investing in wind and solar energy is rapidly declining which makes the two renewable energy sources become gradually affordable. The global weighted average cost of electricity from all commercially available renewable power generation technology has continued to fall over the years, the costs of onshore wind are very competitive at the lower end of fossil fuel-fired power generation costs in most cases. The International Renewable Energy Agency (IRENA) notes that solar PV has witnessed cost declines in the recent years with the levelized cost of electricity declining by about 82 percent in 2019 when compared to 2010. Investing in solar and wind farms is quite significant when it comes to global energy transition. Prozparity International Energy Group Ltd offers global clients technical & informative consultation services which are helpful in deciding on the best wind/solar farm investment options. Renewable energy sector remains one of the greatest areas to venture into in the wake of a worldwide energy transformation from the fossil fuels.

Annual total CO₂ emissions, by world region

Solar and wind energy improves air quality

Investing in solar and wind energy leads to air quality improvements. Air pollution remains a major public health concern across Asia and Europe. Air pollution mainly comes from unregulated, inefficient, and polluting fossil fuel vehicles, factories and power plants. The switch to clean solar and wind energy, would unveil greater prosperity while improving the air quality in various global cities as well as preserving and protecting the environment. Proper investment in solar and wind projects as well as energy subsidies measures will potentially result in a decline of health costs coming from air pollution. Besides private firms and companies, various governments across Asia and Europe should actively advance the investment in solar and wind energy, because savings from reduced externalities with respect to air pollution and climate change outweighs any additional cost of energy in renewable systems. According to IRENA, for every dollar that shall be invested in transforming the global energy system by 2050, there shall be a payoff of at least 3 USD over the period. This means that investing in solar and wind farm has the potential to triple the returns within a certain period of time.

Household installation of of solar panels and wind turbines

Investing in solar and wind farms offers energy security

Development and investment in solar and wind farms accelerates the reduction of carbon emissions and hence substantially helps to meet the objectives of the Paris Agreement. The Paris Agreement aims to keep the average global temperatures increase closer to/ below 1.5 ^oC, which is realizable through continued technical and financial inputs in solar and wind farms. Investing in this sector also helps improve energy security as well as enhance affordable and universal energy access. Globally there are still many countries and companies that heavily depend on imported fossil fuels, which are involved in various sector of their value-chain; thus, energy security is particularly a significant issue for them. Solar and wind projects offer such countries and companies the ability to diversify the energy sources via local generation and therefore contribute to the flexibility of their energy system, while reducing the energy insecurity due to external factors.

Solar and a wind farm installed in a clear ground

https://www.irena.org/-/media/Files/IRENA/Agency/Publication/2020/Jun/IRENA_Power_Generation_Costs_2019.pdf

Solar costs have fallen 82% since 2010

Importance of investment in solar/wind farm towards global energy transition

416

Importance of investment in solar/wind farm towards global energy transition

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