What Unlocks Renewable Energy Growth After Earth Day/50?

Earth Day hits its 50th anniversary with renewable energy rapidly ascending. The combined power from renewable energy sources is now at 57 percent compared to traditional power generation sources. (Source)

Has the low hanging renewable energy fruit been picked or will this pace continue (or accelerate)? What will make renewables skyrocket? I believe five factors are lynch-pins for renewable energy growth.

Storage. Power has been a “make it and use it” product. Make it, get it on the grid. “Our national power grids must constantly and reliably balance supply and demand, a task that is made difficult by the tendency for renewable supply to surge or crash along with the sunlight, wind, and waves. Sufficient and efficient energy storage would take care of that problem, but it is proving very difficult to produce at competitive prices.” (Source)

Energy storage is a holy grail for renewable energy. Storage can change the dynamic; dispatch power when needed, not just when made. Researchers have been trying to unlock that door for many years. Storage will likely always need continued development. An energy researcher said to me, "Energy storage is the great technology of the future and always will be."

Infrastructure. Our grid has been built to crank out power into homes and businesses. That is not the future grid, though. We need a more sophisticated system, something that ties in smart home technology and two-way communication, or a system that easily brings in disparate – large/small, local/not local – energy sources.

That means big money investments for our grid, and companies that have the financial ability to invest. One industry magazine described it like this: “A growing number of states and utilities have set 100-percent-clean-energy goals, albeit with no obvious path to generating all that power close to home. The gap is growing between the transmission network’s capacity and the need to link wind farms in the Great Plains and Intermountain West, solar farms in the Southwest and hydropower resources in eastern Canada to other regions hungry for carbon-free energy.”

Infrastructure includes chargers for electric vehicles (EV), too. "Forget oft-cited 'range anxiety,' many experts say: The real deal-killer, especially for city and apartment dwellers, is a dearth of chargers where they park their cars." (Source) Why buy an EV when it is tough to "fill it up"?

Oil price. This has a couple of angles. "Now, with oil prices below $30, oil and gas projects can no longer claim to offer higher returns than clean energy projects," says OilPrice.com. So, one business investment barrier removed for renewable projects.

On the other hand, there are consumers. In the past low oil prices have reduced some energy innovation, such as sales of EVs. Consumers have been price sensitive. They go for the best price, and if a gasoline-based car is cheaper, they buy it.

Some experts say that consumers will not act that way anymore. Preferences have changed, they think, and consumers will look for the products that have a better environmental footprint, rather than the cheapest price. Important concepts about climate change have meaningfully taken hold in our collective heads.

It's not just individual consumers, though. Corporations, too, especially with the rise of sustainable practices. "The shift toward conscious capitalism has been one of the most noticeable market trends." (Source) Makes business sense and supports corporate reputation, which seems to get increasing public scrutiny.

Policy. A friend of mine, an engineer who is an electric energy exec, told me, “All energy is political.” No matter what makes sense technically, logistically, or economically. People who make the rules will, well, rule.

The virus, recession, and the free pass on government funding may be considered a policy window of opportunity. Conditions placed on funds to drive certain favorite industries of policymakers could drive renewables. Might not, too. Perhaps the economic disruption would be used to change fossil fuel supports or extend other energy supports.

Policy drives renewable energy costs and growth through subsidies, tax breaks, research, grants, credits...

Community. My sense is that consumers have gotten much more involved with the energy in their lives. Sometimes it is about energy facility siting or options they want from their power provider. Other times it may be getting their city to install car chargers or declare municipal policies to go carbon-free.

Citizens are increasingly important factors in our energy future. “A new energy economy will require long-term interaction between energy companies and communities hosting next-generation energy infrastructure,” said industry magazine TD World (Transmission / Distribution)

Several examples. With the Coronavirus reduction in driving, the air is cleaner in many metro areas. Will citizens step up in ways to make that clean air change more permanent? Or, as some homeowners tap closer-to-home energy, maybe their own solar panels or community solar fields, who is responsible for that resource and its maintenance? 

Renewables are important. Perhaps we should say “carbon-free energy” is important, that includes renewables and nuclear energy. Conservation has to be in the mix, too.

Most of all, constructive citizen involvement is essential because consumers are the ultimate decision-makers for our energy and planet. Involvement may be the key to drive the other factors to make renewables grow even more.

At 50 years of Earth Days, a lot has happened. A lot needs to happen.