Context

An energy landscape largely dominated by fossil fuels

Despite a strong increase in the interest for renewable energy technologies, business-as-usual scenarios depict an energy future largely dominated by fossil fuels. Dedicated actions are therefore required for profiling renewable energy as an attractive alternative to fossil-based energy.

The threat of climate change

Continuously growing greenhouse gas emissions pose a significant threat to the global climate system. The impacts of climate change are likely to hit the poor the hardest. The current dominant paradigm of carbon-intensive energy combined with the expected significant growth in energy demand in the next few decades call for an energy transition if climate change impacts are to be restrained to manageable levels.

Biomass reliance vs. modern energy services

A significant share of the world’s population relies on traditional biomass. Providing impoverished communities with access the modern, reliable, environmentally-sound energy services is often seen as a prerequisite to development. Renewable energy has a key role to play in this regard. For instance, small-scale renewable technologies are often particularly appropriate for providing remote communities with adequate energy services.

Market volatility and opportunities

The high volatility in regard to fossil energy prices represents a challenge for development and a barrier to investments. At the same time, it is an opportunity for market forces to gradually shift towards alternative sources of energy, such as renewables, provided that enabling policies are in place. For instance, wind energy has experience rapid growth over the recent years. Furthermore, a diversification of energy sources and the use of domestic renewable energy in particular assist in mitigating national energy security concerns.

Large untapped potential of renewable energy

There is a very high potential for renewable energy in most world regions. Specifically, there are large untapped opportunities to use renewable energy for productive uses and industrial applications. Yet, the full potential does not unfold for the numerous challenges and barriers a wide-spread deployment of renewable energy faces. It is crucial to address those challenges and barriers in a timely and comprehensive fashion.

Sustainability issues

In light of the current controversy in regard to the competition between biofuel and food, the large-scale deployment of renewable energy requires a careful assessment in order to avoid unintended adverse effects. Food security is crucial, also in Latin America where pockets of malnutrition persist. Therefore, an integrated approach is necessary when it comes to scaling up renewable energy.

Energy efficiency as necessary complementary measure

Energy efficiency is a complementary strategy to the promotion of renewable energy. Indeed, the combination of a low-carbon energy production with a well-managed and effective energy use will pave the way towards sustainable energy systems. The industrial sector in developing countries is commonly characterised by relatively high energy intensity. While energy efficiency measures are often presented as low-cost (or even negative cost) options for reducing the energy demand, significant barriers of various kind remain for a wide-spread deployment and application of such measures. It is therefore of utmost importance to put emphasis on promoting technologies and policies to allow for the potential energy savings to occur.