chapter  4
17 Pages

Economics of renewable energy

WithJyoti Prasad Painuly, Norbert Wohlgemuth

Renewable energy now attracts highest investment among all fuels to generate electricity, with wind and solar energy share increasing rapidly in the last few years. This has been possible due to advances in technology and falling costs. Though at global level, renewable energy supplied 18.2% of the total final energy consumption, several countries are now targeting 100% renewables by 2050. For this, a variety of barriers may need to be addressed, including technical (absorption in the grid, storage), market, economic and financial, regulatory and others. Governments’ support may be necessary until a level playing field has been provided by eliminating global fossil fuel subsidies and accounting for environmental externalities from use of fossil fuels.