Embracing 100% Clean Power
Introduction
A 100% clean society is the target for the future. The path to achieving that is total transition to clean power which in other words is renewable energy. We’ll be rid of all fossil fuels, toxic chemicals/fuels and everything that’s not aiding sustainability. You can imagine what that would do for our lives and the earth as a whole.
The benefits are greatly to be numbered. One of them revolves around the economic aspect. To achieve a fully renewable energy grid, a lot has to be done and for a lot to be done, a lot of resources, including human resources, will be utilised. Hence, there’s an opening for various job opportunities, diversification of a country’s economy, reduction of energy costs, to mention a few.
Transitioning to 100% clean power isn’t just about adopting renewable energy sources; it’s about finding the delicate balance between the costs of transformation, the benefits of sustainability, and the feasibility of implementation. While renewable energy offers undeniable advantages—such as reduced carbon emissions, improved public health, and energy independence—the financial investment required to overhaul existing systems can be daunting.
Governments and industries must weigh the upfront costs of renewable infrastructure, such as solar farms, wind turbines, and energy storage, against long-term savings from reduced fossil fuel reliance. At the same time, challenges like grid upgrades, storage innovations, and equitable energy access must be addressed to make the transition practical and inclusive.
Achieving 100% clean power isn’t just a technological feat; it’s an economic balancing act requiring bold investments, innovative policies, and collaborative efforts. Only by aligning costs, benefits, and feasibility can we ensure a future where clean power is not just an ideal, but a global reality.
The Economic Landscape of Renewable Energy
Energy sources like solar, wind, and hydro has been falling over the last decade. This is making renewable energy the cheapest source of power in many parts of the world.
The cost of electricity from solar power fell by 85% between 2010 and 2020. In 2023, the global average cost of electricity from solar PV was $0.044 per kilowatt-hour (kWh).
The cost of electricity from onshore wind fell by 56% between 2010 and 2023. In 2023, the global average cost of electricity from onshore wind was $0.033/kWh.
The cost of electricity from hydropower fell by 7% in 2023.
Factors contributing to cost decline
– Falling prices for renewable energy technologies: The cost of renewable energy technologies has been dropping rapidly.
– Battery storage project costs: Battery storage project costs dropped by 89% between 2010 and 2023.
Due to the drop in renewable energy costs, they’re cheaper than fossil fuels and can provide long-term savings.
Long-term savings include:
• Fuel costs: Renewable power has saved billions of dollars in fuel costs since 2000.
• Carbon emissions: Renewable energy can help mitigate climate change by reducing carbon emissions.
• Global warming: Renewable energy can help reduce global warming emissions, which can lead to fewer storms, droughts, and sea level rise.
Other benefits
• Renewable energy is safer than non-renewable sources.
• Renewable energy sources are natural resources that replenish over time.
There are various economic incentives that promote the adoption of clean energy in different parts of the world, Nigeria included. They are as follows:
– Tax breaks
– Favorable financing
– Regulatory support
– Exemptions
– Grants
– Rebates
– Investment incentives for local manufacturers
– Rural location incentives
Some examples of clean energy incentives in Nigeria include:
• Solar Power Naija (SPN): A program that encourages investment in solar power
• Bank of Industry’s Solar Energy Fund (SEF): A fund that supports solar energy projects
• Hydropower: Nigeria has significant hydropower potential, which can be used to provide power to rural areas
The goal is to diversify energy supply mix, increase energy access, and protect the environment.
Benefits of 100% Clean Power
Transitioning to renewable energy can have many financial advantages for businesses, governments, and individuals, including:
• Lower energy costs
Renewable energy sources like wind and solar power can be cheaper than fossil fuels, especially after the initial investment.
• More stable energy prices
Renewable energy prices can be more stable than fossil fuel prices, which can fluctuate dramatically.
• Reduced risk of supply disruptions
Renewable energy sources are locally accessible, so there’s less need to transport energy over long distances. This can help reduce the risk of supply disruptions due to natural disasters or geopolitical tensions.
• Reduced dependence on fossil fuels
Using more renewable energy can help reduce the economic risks associated with fossil fuel dependency.
• Job creation
Renewable energy is a major source of new jobs.
• Economic growth
The transition to renewable energy can spur economic growth by creating new industries and expanding new markets.
• Reduced climate impacts
Renewable energy can help reduce climate impacts, which could save the world trillions of dollars per year.
Renewable energy adoption can reduce healthcare costs and environmental damages linked to fossil fuel pollution by:
– Improving air quality
– Reducing water pollution
– Reducing greenhouse gas emissions
– And reducing health costs since people will have fewer health issues and lower healthcare costs.
Renewable energy can also help countries achieve the United Nations’ Sustainable Development Goals, which include:
Goal 3: Good health and well-being, Goal 7: Affordable and clean energy, and Goal 13: Climate action.
Delving into the job creation benefits of transition to renewable energy. There are a lot of openings in the sector. They include the need of man power for the services of
– manufacturing and procurement
– installations
– maintenance and repairs, etc.
Economic Challenges to Achieving 100% Clean Power
Economic challenges to achieving 100% clean power include maintaining a balance between supply and demand, and designing and maintaining stable grids.
Supply chain strain
The renewable energy sector is experiencing unprecedented demand for materials like lithium, cobalt, and rare earth elements, which are crucial for technologies like batteries and solar panels. A sudden surge in demand can lead to:
• Material shortages – If production cannot keep up with the rapidly growing demand for renewable technologies, prices for these materials will skyrocket, translating into higher costs for consumers.
• Inflationary pressures – Increased costs of renewable technology components can contribute to broader inflation in the energy sector, affecting overall energy prices.
Grid stability
• Designing reliable grids: Designing technically reliable and stable grids is a challenge.
• Inverter challenge: Designing grids that use inverter-based resources (IBRs) is a challenge.
• Power balance: Issues with power balance, inverter stability, protection, and unintentional islanding can occur.
Market volatility
Energy markets thrive on predictability and stability. A hasty transition to renewables can create volatility as supply and demand fluctuate wildly. This instability can lead to unpredictable pricing, making it difficult for consumers and businesses to plan their energy budgets.
Moreover, if the transition leads to a scenario where renewables provide a substantial but not yet sufficient portion of energy, reliance on backup fossil fuel generation can lead to increased prices, especially during peak demand periods.
Other challenges include:
• Siting renewable energy and associated transmission
• Land use
• Environmental and aesthetic issues
• Material supply and manufacturing scale-up
• Grid security
• Equity and social justice
Global Efforts
According to Irena Global collaborations and investments are driving the future of clean power by accelerating innovation, funding large-scale renewable projects, and reducing technology costs through shared resources and expertise. Initiatives like international clean energy partnerships and climate funds enable countries to develop advanced technologies, scale renewable energy adoption, and build efficient supply chains. These efforts align global policies, promote knowledge exchange, and ensure equitable access to sustainable energy, collectively advancing the shift to 100% clean power.
The big question now is, Are We Ready?
Many economies are making significant progress, with decreasing costs of renewable technologies like solar and wind. However, readiness varies widely due to factors like infrastructure, financial resources, and political commitment. Developed nations lead the way with advanced grids and investments, while developing countries face challenges in scaling projects and securing funding.
Gaps to be addressed to make the shift economically viable
• Energy Storage: Improved battery technologies and storage solutions are needed to address the intermittency of renewables.
• Grid Infrastructure: Upgrades to modernize aging grids and integrate decentralized energy sources are essential.
• Policy and Regulation: Consistent policies, subsidies, and carbon pricing are required to support renewables and discourage fossil fuels.
• Financial Barriers: Lowering upfront costs and increasing investments in clean energy projects is crucial.
• Equity and Access: Ensuring affordable renewable energy for all, including underserved regions.
Contributions of Governments, Businesses, and Individuals
• Governments: Implement supportive policies, invest in infrastructure, and provide incentives for clean energy adoption.
• Businesses: Adopt renewable energy in operations, innovate technologies, and finance sustainable projects.
• Individuals: Reduce energy consumption, adopt rooftop solar and other renewable options, and advocate for sustainable policies.
By addressing these gaps and collaborating across sectors, the shift to 100% renewable energy can become economically viable and globally achievable.
Conclusion
Investing in renewable energy is smart economically because it reduces long-term energy costs, creates jobs, and drives innovation. Environmentally, it cuts greenhouse gas emissions, reduces air pollution, and promotes sustainability, ensuring a cleaner, healthier planet for future generations.
I should be a part of the transition. You should be a part of the transition. Together we can make it work by supporting clean energy policies and adopting sustainable practices. Remember, here at DANOEL ENGRG LIMITED , your renewable energy installations and more, are taken care of. Contact us today for a start.
By Nene Okeke
DANOEL Business Developer