International Report Makes Business Case for Renewables Investment

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Future decarbonization still remains possible despite economic fallout from the covid-19 pandemic, according to a new report from the International Renewable Energy Agency (IRENA) that makes the business case for investment in renewables.

IRENA, an intergovernmental organization that supports coun Andorra Email List tries transitioning to a sustainable energy future, published its first Global Renewables Outlook this week. The report highlights climate-safe investment options through 2050, and outlines a sustainable, low-carbon foundation for stable long-term economic development.

Although the pandemic is draining budgets around the world, government stimulus and recovery packages could help accelerate the transition to sustainable, decarbonized economies, according to the report. The Global Renewables Outlook recommends investments that support flexible power grids, efficiency solutions, EV charging systems, energy store, and other renewable energy technologies.

Renewables, efficiency, and electrification provide a clear focus for action until mid-century. Several regions are poised to reach 70-80% renewable energy use in this outlook,” the report noted. “Electrification of heat and transport would similarly rise across the board.

IRENA says that the falling oil prices seen this spring are unlikely to affect renewables in the power sector.

Price volatility undermines the viability of unconventional oil and gas resources, as well as long-term contracts, making the business case for renewables even stronger,” said Francesco La Camera, IRENA’s director-general. “One further result would be the ability to reduce or redirect fossil fuel subsidies toward clean energy without adding to social disruptions.”

However, volatile oil prices could slow electrification in the transport sector. Low gas prices might encourage more driving and lessen the appeal of electric vehicles, according to the report. That possibility doesn’t change the path required for a low-carbon society, though, IRENA said.

Drivers for the energy transformation business case detailed in the report include:

Rapid decline in renewable energy costs. “In the United States, non-hydropower renewable energy resources such as solar PV and wind are expected to be the fastest-growing sources of electricity generation in the next two years.



Air quality improvements. “The total savings in improved health, reduced subsidies and lower impacts of climate change would be worth as much as $160 trillion cumulatively over a 30-year period.
Enhanced energy security. “Renewables can provide a more secure alternative to fossil fuels by increasing the diversity of energy sources through local generation, thus contributing to the flexibility of the system and improving resistance to shocks.
Socioeconomic benefits. “The energy transformation would boost gross domestic product (GDP) by 2.5% and total employment by 0.2% globally by 2050.
The nature of the covid-19 crisis calls for a major state role in the response, La Camera wrote in the report’s foreword.

Economies need more than a kickstart,” he said. “They need stable assets, including an inclusive energy system that supports low-carbon development. Otherwise, even with the global slowdown momentarily reducing carbon dioxide emissions, the eventual rebound may restore the long-term trend.