The resilience of renewable energy sources, dynamic power grids and increased energy efficiency are vital to accelerating the energy transition at a faster pace than it is occurring today. In the “Transition Faster Together: Renewables” report, DNV GL outlines the solutions, strategies, and policies needed to drive renewables adoption.
The report looks into the key drivers and barriers to energy transition from a renewables perspective. Some of the report highlights include:
Technology developments: According to DNV GL, new developments in wind, solar, and energy storage will require effective power market integration to accelerate the momentum. The report further highlights that power grids need to evolve to cope with the integration of renewables and changes in consumption arising from the electrification of transport and heat.
Business models: Markets and business models are transforming to match the characteristics of new technologies and support the growth of renewables. For instance, digitalisation enables new business models by offering energy demand management solutions for industries, businesses, and households.
Investment outlook: Reduction in the cost of renewables continues to deliver price parity with fossil fuel generation, making it viable for investment. Many investors now regard renewables assets favourably, as post-COVID-19 price volatility throws fossil fuel investments into uncertainty.
Policy and regulation: The investments needed to drive clean energy transition are substantial and can only be achieved through stable legal frameworks. DNV GL notes that policies that provide predictable costs favourable to renewables are critical to reducing risks and increasing rewards. These policies may include a carbon tax or cap and trade system, which funds subsidies for green energy projects.
Get the full insights from the DNV GL report, “Transition Faster Together: Renewables”.