Constellation NewEnergy announces demand response offerings for Ontario

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Constellation Energy announced that its subsidiary, Constellation NewEnergy, is offering its NewResponse demand response program to commercial, industrial and governmental electricity customers in Ontario, Canada.

As a member of the Ontario Power Authority's (OPA) DR3 Program, Constellation NewEnergy has agreed to provide 25 MW of demand response capacity, to reduce energy use during times of peak demand.

The OPA will compensate Constellation NewEnergy's customers who curtail energy use by shedding load or turning to on-site generation for a specific period of time when called upon. Once enrolled, participants earn a recurring availability payment for committing to the program, as well as an energy utilization payment for actually reducing load.

"Enrolling in a demand response program is a smart business decision that delivers an immediate return on investment," said Peter Kelly-Detwiler, senior vice president for Constellation NewEnergy. "The benefits of participating in the OPA DR3 program are twofold: alleviating pressure on the grid and providing revenue that customers may choose to invest in additional energy efficiency and environmental programs."

Ontario is the first Province in Canada to begin implementation of a demand response program designed to reduce stress on the electricity grid and to help prevent blackouts. Already offering demand response products to customers in the United States, Constellation NewEnergy is well-positioned to provide both seasoned expertise and comprehensive demand response products to Ontario's emerging market.

"We are pleased to see Constellation NewEnergy, a provider of energy services to wholesale, commercial and industrial customers, offering new products and services to the Ontario electric market," said Paul Shervill, vice president Conservation and Sector Development of the OPA. "We look forward to working with Constellation NewEnergy to provide Ontario-based customers additional opportunities to manage their energy costs while helping to reduce electricity demand when supplies are tight."

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18% of electricity generated in Canada in 2019 came from fossil fuels

EV Decarbonization Strategy weighs life-cycle emissions and climate targets, highlighting mode shift to public transit, cycling, and walking, grid decarbonization, renewable energy, and charging infrastructure to cut greenhouse gases while reducing private car dependence.

 

Key Points

A plan to cut transport emissions by pairing EV adoption with mode shift, clean power, and less private car use.

✅ Prioritize mode shift: transit, cycling, and walking.

✅ Electrify remaining vehicles with clean, renewable power.

✅ Expand charging, improve batteries, and manage critical minerals.

 

California recently announced that it plans to ban the sales of gas-powered vehicles by 2035, a move similar to a 2035 electric vehicle mandate seen elsewhere, Ontario has invested $500 million in the production of electric vehicles (EVs) and Tesla is quickly becoming the world's highest-valued car company.

It almost seems like owning an electric vehicle is a silver bullet in the fight against climate change, but it isn't, as a U of T study explains today. What we should also be focused on is whether anyone should use a private vehicle at all.
 
As a researcher in sustainable mobility, I know this answer is unsatisfying. But this is where my latest research has led.

Battery EVs, such as the Tesla Model 3 - the best selling EV in Canada in 2020 - have no tailpipe emissions. But they do have higher production and manufacturing emissions than conventional vehicles, and often run on electricity that comes from fossil fuels.

Almost 18 per cent of the electricity generated in Canada came from fossil fuels in 2019, and even as Canada's EV goals grow more ambitious today, the grid mix varies from zero in Quebec to 90 per cent in Alberta.
 
Researchers like me compare the greenhouse gas emissions of an alternative vehicle, such as an EV, with those of a conventional vehicle over a vehicle lifetime, an exercise known as a life-cycle assessment. For example, a Tesla Model 3 compared with a Toyota Corolla can provide up to 75 per cent reduction in greenhouse gases emitted per kilometre travelled in Quebec, but no reductions in Alberta.

 

Hundreds of millions of new cars

To avoid extreme and irreversible impacts on ecosystems, communities and the overall global economy, we must keep the increase in global average temperatures to less than 2 C - and ideally 1.5 C - above pre-industrial levels by the year 2100.

We can translate these climate change targets into actionable plans. First, we estimate greenhouse gas emissions budgets using energy and climate models for each sector of the economy and for each country. Then we simulate future emissions, taking alternative technologies into account, as well as future potential economic and societal developments.

I looked at the U.S. passenger vehicle fleet, which adds up to about 260 million vehicles, while noting the potential for Canada-U.S. collaboration in this transition, to answer a simple question: Could the greenhouse gas emissions from the sector be brought in line with climate targets by replacing gasoline-powered vehicles with EVs?

The results were shocking. Assuming no changes to travel behaviours and a decarbonization of 80 per cent of electricity, meeting a 2 C target could require up to 300 million EVs, or 90 per cent of the projected U.S. fleet, by 2050. That would require all new purchased vehicles to be electric from 2035 onwards.

To put that into perspective, there are currently 880,000 EVs in the U.S., or 0.3 per cent of the fleet. Even the most optimistic projections, despite hype about an electric-car revolution gaining steam, from the International Energy Agency suggest that the U.S. fleet will only be at about 50 per cent electrified by 2050.

 

Massive and rapid electrification

Still, 90 per cent is theoretically possible, isn't it? Probably, but is it desirable?

In order to hit that target, we'd need to very rapidly overcome all the challenges associated with EV adoption, such as range anxiety, the higher purchase cost and availability of charging infrastructure.
 
A rapid pace of electrification would severely challenge the electricity infrastructure and the supply chain of many critical materials for the batteries, such as lithium, manganese and cobalt. It would require vast capacity of renewable energy sources and transmission lines, widespread charging infrastructure, a co-ordination between two historically distinct sectors (electricity and transportation systems) and rapid innovations in electric battery technologies. I am not saying it's impossible, but I believe it's unlikely.

Read more: There aren't enough batteries to electrify all cars - focus on trucks and buses instead

So what? Shall we give up, accept our collective fate and stop our efforts at electrification?

On the contrary, I think we should re-examine our priorities and dare to ask an even more critical question: Do we need that many vehicles on the road?

 

Buses, trains and bikes

Simply put, there are three ways to reduce greenhouse gas emissions from passenger transport: avoid the need to travel, shift the transportation modes or improve the technologies. EVs only tackle one side of the problem, the technological one.

And while EVs do decrease emissions compared with conventional vehicles, we should be comparing them to buses, including leading electric bus fleets in North America, trains and bikes. When we do, their potential to reduce greenhouse gas emissions disappears because of their life cycle emissions and the limited number of people they carry at one time.

If we truly want to solve our climate problems, we need to deploy EVs along with other measures, such as public transit and active mobility. This fact is critical, especially given the recent decreases in public transit ridership in the U.S., mostly due to increasing vehicle ownership, low gasoline prices and the advent of ride-hailing (Uber, Lyft)

Governments need to massively invest in public transit, cycling and walking infrastructure to make them larger, safer and more reliable, rather than expanding EV subsidies alone. And we need to reassess our transportation needs and priorities.

The road to decarbonization is long and winding. But if we are willing to get out of our cars and take a shortcut through the forest, we might get there a lot faster.

Author: Alexandre Milovanoff - Postdoctoral Researcher, Environmental Engineering, University of Toronto The Conversation

 

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Lebanon Cabinet approves watershed electricity sector reform

Lebanon Electricity Sector Reform aims to overhaul tariffs, modernize the grid, cut fuel oil subsidies, unlock donor loans, and deliver 24-hour power, restructuring EDL governance, boosting generation capacity, and reducing the budget deficit.

 

Key Points

A plan to restructure EDL, adjust tariffs, add capacity, and cut subsidies to deliver 24-hour power and reduce deficits.

✅ New tariffs and phased cost recovery

✅ Added generation capacity and grid modernization

✅ Governance reform of EDL and loss reduction

 

Lebanon’s Cabinet has approved a much-anticipated plan to restructure the country’s dysfunctional electricity sector, as Beirut power challenges continue to underscore chronic gaps, which hasn’t been developed since the time of the country’s civil war, decades ago.

The Lebanese depend on a network of private generator providers and decrepit power plants that rely on expensive fuel oil, while Israeli power supply competition seeks to lower consumer prices in a nearby market. Subsidies to the state electricity company cost nearly $2 billion a year.

For years, reform of the electricity sector, echoed by EU electricity market revamp, has been a major demand of Lebanon’s population of over 5 million. But frequent political stalemates, corruption and infighting among politicians, entrenched since the civil war that began in 1975, often derailed reforms.

International donors have called for reforms, including in the electricity sector, to unlock $11 billion in soft loans and grants pledged last year, as regional initiatives like the Jordan-Saudi electricity linkage move ahead to strengthen interconnections. Prime Minister Saad Hariri said Monday that the new plan will eventually provide 24-hour electricity.

Energy Minister Nada Boustani said that if there were no obstacles, residents could start feeling the difference next year, as an electricity market overhaul advances alongside the plan.

The plan, which is expected to get parliament approval, will reform the state electricity company, introduce new pricing policies, with international examples like France's electricity pricing scheme, and boost power production.

“This plan will also reduce the budget deficit,” Hariri told reporters. “This is positive and all international ratings companies will see … that Lebanon is taking real steps to reform in this sector.”

Lebanon’s soaring debt prompted rating agencies to downgrade the country’s credit ratings in January over concerns the government may not be able to pay its debts. Unemployment is believed to be at 36 per cent and more than 1 million Syrian refugees have overwhelmed the already aging infrastructure, while policy debates like Alberta electricity market changes illustrate different approaches to balancing cost and reliability.

Boustani told the Al-Manar TV that the electricity sector should be spared political bickering and populist approaches.

 

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Portland General Electric Program Will Transform Hundreds of Homes Into a Virtual Power Plant

PGE Residential Energy Storage Pilot aggregates 525 home batteries into a virtual power plant, enabling distributed energy resources, smart grid control, renewable energy optimization, demand response, and backup power across Portland General Electric's area.

 

Key Points

A PGE program aggregating 525 batteries into a utility-run virtual power plant for renewables support and backup power.

✅ Up to 4 MW aggregated capacity from 525 residential batteries

✅ Monthly credits: $40 ($20 with solar) for grid services

✅ Enhances smart grid, DERs, resilience, and outage backup

 

Portland General Electric Company is set to launch a pilot program that will incentivize installation and connection of 525 residential energy storage batteries that PGE will dispatch, contributing up to four megawatts of energy to PGE's grid. The distributed assets will create a virtual power plant made up of small units that can be operated individually or combined to serve the grid, adding flexibility that supports PGE's transition to a clean energy future. When the program launches this fall, incentives will be available to residential customers across PGE's service area. Rebates will be available to customers within three neighborhoods participating in PGE's Smart Grid Test Bed, and income-qualified customers participating in Energy Trust of Oregon's Solar Within Reach offer.

PGE will study the full benefits of energy storage that these distributed energy assets can provide the grid while also increasing resiliency for each participating customer. PGE will operate and test the benefits of using homes' batteries, each capable of storing 12 to 16 kWh of energy, to optimize the use of renewable energy and grid capabilities. In the event of a power outage, participating customers can rely on them as a backup power resource.

"Our vision for clean energy relies on a smart, integrated grid. One of the ways that we'll achieve that is through creative partnerships and diversified energy resources, including those behind-the-meter," said Larry Bekkedahl, vice president of Grid Architecture, Integration and Systems Operation. "This pilot project will allow PGE to integrate even more intermittent renewable energy and enhance grid capabilities while also giving participating customers peace of mind in the event of an outage."

Energy storage maximizes renewables and the grid, improves power quality

Energy storage, including long-duration energy storage solutions, is vital to help capture and store energy from renewable power sources, such as wind and solar, that are more variable. As a virtual power plant, the residential battery storage pilot will create a single resource that can help the grid balance energy production with energy demand, freeing up the generation resources that are typically held on standby, ready to kick in when the wind doesn't blow or the sun doesn't shine. As a clean energy option that takes the place of standby resources, the virtual power plant also gives customers access to reliable energy, even in the event of system outages.

The test program will also allow PGE to test new smart-grid control devices across its distribution system that will more effectively allow a two-way exchange between PGE and pilot participants. The new controls will more actively manage the way that electricity is distributed across PGE's system to incorporate energy that customers generate, such as through solar panels, while also meeting power demand that is less predictable, such as for charging electric vehicles, supporting EVs for grid stability strategies. The controls will allow PGE to more actively manage power distribution to improve power quality for all customers.

Select rebates and incentives will be available to participants, aligned with electric vehicle programs that encourage transportation electrification

When it launches in fall 2020, participation in the program will be available to residential customers, including:

* Those across PGE's service area who already have or are installing a qualifying battery. Participation will require an application, and in exchange for allowing PGE to operate their battery for grid services, similar to programs where EV owners selling power back for compensation, participating customers will receive a monthly bill credit of $40, or $20 if the battery is charged with solar power.

* Customers across PGE's service area who are participating in the Solar Within Reach offering from Energy Trust of Oregon. Participants will be eligible for a $5,000 instant rebate in addition to the monthly bill credits.

* Those living within the PGE Smart Grid Test Bed who purchase a battery will be eligible for an instant rebate, in addition to the monthly bill credit of $40 or $20, which will allow PGE to test the localized grid impact of having a large concentration of battery storage devices available on one substation and explore interfaces with vehicle-to-grid pilots in the region.

PGE is working with Energy Trust to cost-effectively procure the residential battery storage systems, as utilities invest in advanced storage solutions across the region, by leveraging the existing Solar incentive program infrastructure and trade ally contractor network. Customers who participate in the program will own their battery systems, and rebates will only be available for systems installed by an Energy Trust solar trade ally. The program may also accept customers with a qualifying battery that is was previously installed, following a process to ensure safe operation.

More information about Portland General Electric's energy storage program is available at PortlandGeneral.com/energystorage and will be updated with details about the residential battery storage pilot program.

 

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Canada Invests Over $960-Million in Renewable Energy and Grid Modernization Projects

Smart Renewables and Electrification Pathways Program enables clean energy and grid modernization across Canada, funding wind, solar, hydro, geothermal, tidal, and storage to cut GHG emissions and accelerate electrification toward a net-zero economy.

 

Key Points

A $964M Canadian program funding clean power and grid upgrades to cut emissions and build net-zero electrified economy.

✅ Funds wind, solar, hydro, geothermal, tidal, and storage projects

✅ Modernizes grids for reliability, digitalization, and resilience

✅ Supports net-zero by 2050 with Indigenous and utility partners

 

Harnessing Canada's immense clean energy resources requires transformational investments to modernize our electricity grid. The Government of Canada is investing in renewable energy and upgrading the electricity grid, moving toward an electric, connected and clean economy, to make clean, affordable electricity options more accessible in communities across Canada.

The Honourable Seamus O'Regan Jr., Minister of Natural Resources, today launched a $964-million program, alongside a recent federal green electricity contract in Alberta that underscores momentum, to support smart renewable energy and grid modernization projects that will lower emissions by investing in clean energy technologies, like wind, solar, storage, hydro, geothermal and tidal energy across Atlantic Canada.

The Smart Renewables and Electrification Pathways Program (SREPs) supports building Canada's low-emissions energy future and a renewable, electrified economy through projects that focus on non-emitting, cleaner energy technologies, such as storage, and modernizing electricity system operations.

Investing in these technologies reduces greenhouse gas emissions by creating a cleaner, more connected electrical system, supporting progress toward zero-emissions electricity by 2035 goals, while helping Canada reach net-zero emissions by 2050.

Minister O'Regan launched the program during the Canadian Electricity Association's (CEA) virtual regulatory forum on Electricity Regulation & the Four Disruptors – Decarbonization, Decentralization, Digitalization and Democratization, highlighting evolving regulatory approaches as B.C. streamlines clean energy approvals to support deployment nationwide. The launch also coincides with Canadian Environment Week, which celebrates Canada's environmental accomplishments and encourages Canadians to contribute to conserving and protecting the environment.

Through SREPs and other programming, the government is working with provinces and territories, with the Prairie Provinces leading renewable growth in the years ahead, utilities, Indigenous partners and others, including diverse businesses and communities, to deliver these clean and reliable energy initiatives. With Canadian innovation, technology and skilled energy workers, we can provide more communities, households and businesses with an increased supply of clean electricity and a cleaner electrical grid.

To help interested stakeholders find information on SREPs, a new webpage has been launched, which includes a comprehensive guide for eligible projects.

This supports Canada's strengthened climate plan, A Healthy Environment and a Healthy Economy. Canada is advancing projects that support the clean grid of the future and seize opportunities in the global electricity market to boost competitiveness. Collectively with investments from the Fall Economic Statement 2020 and Budget 2021, Canada will achieve our climate change commitments and ensure a healthier environment and more prosperous economy for future generations.

 

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A new approach finds materials that can turn waste heat into electricity

Thermoelectric Materials convert waste heat into electricity via the Seebeck effect; quantum computations and semiconductors accelerate discovery, enabling clean energy, higher efficiency, and scalable heat-to-power conversion from abundant, non-toxic, cost-effective compounds.

 

Key Points

Thermoelectric materials turn waste heat into electricity via the Seebeck effect, improving energy efficiency.

✅ Convert waste heat to electricity via the Seebeck effect

✅ Quantum computations rapidly identify high-performance candidates

✅ Target efficient, low-thermal-conductivity, non-toxic, abundant compounds

 

The need to transition to clean energy is apparent, urgent and inescapable. We must limit Earth’s rising temperature to within 1.5 C to avoid the worst effects of climate change — an especially daunting challenge in the face of the steadily increasing global demand for energy and the need for reliable clean power, with concepts that can generate electricity at night now being explored worldwide.

Part of the answer is using energy more efficiently. More than 72 per cent of all energy produced worldwide is lost in the form of heat, and advances in turning thermal energy into electricity could recover some of it. For example, the engine in a car uses only about 30 per cent of the gasoline it burns to move the car. The remainder is dissipated as heat.

Recovering even a tiny fraction of that lost energy would have a tremendous impact on climate change. Thermoelectric materials, which convert wasted heat into useful electricity, can help, especially as researchers pursue low-cost heat-to-electricity materials for scalable deployment.

Until recently, the identification of these materials had been slow. My colleagues and I have used quantum computations — a computer-based modelling approach to predict materials’ properties — to speed up that process and identify more than 500 thermoelectric materials that could convert excess heat to electricity, and help improve energy efficiency.


Making great strides towards broad applications
The transformation of heat into electrical energy by thermoelectric materials is based on the “Seebeck effect.” In 1826, German physicist Thomas Johann Seebeck observed that exposing the ends of joined pieces of dissimilar metals to different temperatures generated a magnetic field, which was later recognized to be caused by an electric current.

Shortly after his discovery, metallic thermoelectric generators were fabricated to convert heat from gas burners into an electric current. But, as it turned out, metals exhibit only a low Seebeck effect — they are not very efficient at converting heat into electricity.

In 1929, the Russian scientist Abraham Ioffe revolutionized the field of thermoelectricity. He observed that semiconductors — materials whose ability to conduct electricity falls between that of metals (like copper) and insulators (like glass) — exhibit a significantly higher Seebeck effect than metals, boosting thermoelectric efficiency 40-fold, from 0.1 per cent to four per cent.

This discovery led to the development of the first widely used thermoelectric generator, the Russian lamp — a kerosene lamp that heated a thermoelectric material to power a radio.


Are we there yet?
Today, thermoelectric applications range from energy generation in space probes to cooling devices in portable refrigerators, and include emerging thin-film waste-heat harvesters for electronics as well. For example, space explorations are powered by radioisotope thermoelectric generators, converting the heat from naturally decaying plutonium into electricity. In the movie The Martian, for example, a box of plutonium saved the life of the character played by Matt Damon, by keeping him warm on Mars.

In the 2015 film, The Martian, astronaut Mark Watney (Matt Damon) digs up a buried thermoelectric generator to use the power source as a heater.

Despite this vast diversity of applications, wide-scale commercialization of thermoelectric materials is still limited by their low efficiency.

What’s holding them back? Two key factors must be considered: the conductive properties of the materials, and their ability to maintain a temperature difference, as seen in nighttime electricity from cold concepts, which makes it possible to generate electricity.

The best thermoelectric material would have the electronic properties of semiconductors and the poor heat conduction of glass. But this unique combination of properties is not found in naturally occurring materials. We have to engineer them, drawing on advances such as carbon nanotube energy harvesters to guide design choices.

Searching for a needle in a haystack
In the past decade, new strategies to engineer thermoelectric materials have emerged due to an enhanced understanding of their underlying physics. In a recent study in Nature Materials, researchers from Seoul National University, Aachen University and Northwestern University reported they had engineered a material called tin selenide with the highest thermoelectric performance to date, nearly twice that of 20 years ago. But it took them nearly a decade to optimize it.

To speed up the discovery process, my colleagues and I have used quantum calculations to search for new thermoelectric candidates with high efficiencies. We searched a database containing thousands of materials to look for those that would have high electronic qualities and low levels of heat conduction, based on their chemical and physical properties. These insights helped us find the best materials to synthesize and test, and calculate their thermoelectric efficiency.

We are almost at the point where thermoelectric materials can be widely applied, but first we need to develop much more efficient materials. With so many possibilities and variables, finding the way forward is like searching for a tiny needle in an enormous haystack.

Just as a metal detector can zero in on a needle in a haystack, quantum computations can accelerate the discovery of efficient thermoelectric materials. Such calculations can accurately predict electron and heat conduction (including the Seebeck effect) for thousands of materials and unveil the previously hidden and highly complex interactions between those properties, which can influence a material’s efficiency.

Large-scale applications will require themoelectric materials that are inexpensive, non-toxic and abundant. Lead and tellurium are found in today’s thermoelectric materials, but their cost and negative environmental impact make them good targets for replacement.

Quantum calculations can be applied in a way to search for specific sets of materials using parameters such as scarcity, cost and efficiency, and insights can even inform exploratory devices that generate electricity out of thin air in parallel fields. Although those calculations can reveal optimum thermoelectric materials, synthesizing the materials with the desired properties remains a challenge.

A multi-institutional effort involving government-run laboratories and universities in the United States, Canada and Europe has revealed more than 500 previously unexplored materials with high predicted thermoelectric efficiency. My colleagues and I are currently investigating the thermoelectric performance of those materials in experiments, and have already discovered new sources of high thermoelectric efficiency.

Those initial results strongly suggest that further quantum computations can pinpoint the most efficient combinations of materials to make clean energy from wasted heat and the avert the catastrophe that looms over our planet.

 

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We Need a Total Fossil Fuel Lockdown for a Climate Revolution

Renewables 2020 Global Status Report highlights renewable energy gaps beyond power, urging decarbonization in heating, cooling, and transport, greener COVID-19 recovery, market reforms, and rapid energy transition to cut CO2 emissions and fossil fuel dependence.

 

Key Points

REN21's annual report on renewable energy progress and policy gaps across power, heating, cooling, and transport.

✅ Calls for decarbonizing heating, cooling, and transport.

✅ Warns COVID-19 recovery must avoid fossil fuel lock-in.

✅ Urges market reforms to boost energy efficiency and renewables.

 

Growth in renewable power has been impressive over the past five years, with over 30% of global electricity now coming from renewables worldwide. But too little is happening in heating, cooling and transport. Overall, global hunger for energy keeps increasing and eats up progress, according to REN21's Renewables 2020 Global Status Report (GSR), released today. The journey towards climate disaster continues, unless we make an immediate switch to efficient and renewable energy in all sectors in the wake of the COVID-19 pandemic.

"Year after year, we report success after success in the renewable power sector. Indeed, renewable power has made fantastic progress. It beats all other fuels in growth and competitiveness. Many national and global organisations already cry victory. But our report sends a clear warning: The progress in the power sector is only a small part of the picture. And it is eaten up as the world's energy hunger continues to increase. If we do not change the entire energy system, we are deluding ourselves," says Rana Adib, REN21's Executive Director.

The report shows that in the heating, cooling and transport sectors, the barriers are still nearly the same as 10 years ago. "We must also stop heating our homes and driving our cars with fossil fuels," Adib claims.

There is no real disruption in the COVID-19 pandemic

In the wake of the extraordinary economic decline due to COVID-19, the IEA predicts energy-related CO2 emissions are expected to fall by up to 8% in 2020. But 2019 emissions were the highest ever, and the relief is only temporary. Meeting the Paris targets would require an annual decrease of at least 7.6% to be maintained over the next 10 years, and UN analysis on NDC ambition underscores the need for faster action. Says Adib: "Even if the lock-downs were to continue for a decade, the change would not be sufficient. At the current pace, with the current system and current market rules, it would take the world forever to come anywhere near a no-carbon system."

"Many recovery packages lock us into a dirty fossil fuel economy"

Recovery packages offer a once-in-a-lifetime chance to make the shift to a low-carbon economy, and green energy investments could accelerate COVID-19 recovery. But according to Adib there is a great risk for this enormous chance to be lost. "Many of these packages include ideas that will instead lock us further into a dirty fossil fuel system. Some directly promote natural gas, coal or oil. Others, though claiming a green focus, build the roof and forget the foundation," she says. "Take electric cars and hydrogen, for example. These technologies are only green if powered by renewables."

Choosing an energy system that supports job creation and social justice

The report points out that "green" recovery measures, such as investment in renewables and building efficiency, are more cost-effective than traditional stimulus measures and yield more returns. It also documents that renewables deliver on job creation, energy sovereignty, accelerated energy access in developing countries, and clean, affordable and sustainable electricity for all objectives worldwide, alongside reduced emissions and air pollution.

"Renewables are now more cost-effective than ever, and recent IRENA analysis shows their potential to decarbonise the energy sector, providing an opportunity to prioritize clean economic recovery packages and bring the world closer to meeting the Paris Agreement Goals. Renewables are a key pillar of a healthy, safe and green COVID-19 recovery that leaves no one behind," said Inger Andersen, Executive Director of the UN Environment Programme (UNEP). "By putting energy transition at the core of economic recovery, countries can reap multiple benefits, from improved air quality to employment generation."

This contrasts with the true cost of fossil fuels, estimated to be USD 5.2 trillion if costs of negative impacts such as air pollution, effects of climate change, and traffic congestion are counted.

Renewable energy systems support energy sovereignty and democracy, empowering citizens and communities, instead of big fossil fuel producers and consumers. "When spending stimulus money, we have to decide: Do we want an energy system that serves some or a system that serves many?", says Adib. "But it's not only about money. We must end any kind of support to the fossil economy, particularly when it comes to heating, cooling and transport. Governments need to radically change the market conditions and rules and demonstrate the same leadership as during the COVID-19 pandemic."

The report finds:

Total final energy demand continues to be on the rise (1.4% annually from 2013 to 2018). Despite significant progress in renewable power generation, the share of renewables in total final energy demand barely increased (9.6% in 2013 to 11% in 2018). Compared to the power sector, the heating, cooling and transport sectors lag far behind (renewable energy share in power, 26%, heating and cooling, 10%, transport, 3%).

Today's progress is largely the result of policies and regulations initiated years ago and focus on the power sector. Major barriers seen in heating, cooling and transport are still almost the same a decade on. Policies are needed to create the right market conditions.

The renewable energy sector employed around 11 million people worldwide in 2018

In 2019, the private sector signed power purchase agreements (PPAs) for a record growth of over 43% from 2018 to 2019 in new renewable power capacity.

The global climate strikes have reached unprecedented levels with millions of people across 150 countries. They have pushed governments to step up climate ambitions. As of April 2020, 1490 jurisdictions - spanning 29 countries and covering 822 million citizens - had issued "climate emergency" declarations, many of which include plans and targets for more renewable-based energy systems.

While some countries are phasing out coal, examples such as Europe's green surge show how renewables can soar as emissions fall, yet others continued to invest in new coal-fired power plants. In addition, funding from private banks for fossil fuel projects has increased each year since the signing of the Paris Agreement, totaling USD 2.7 trillion over the last three years.

"It is clear, renewable power has become mainstream and that is great to see. But the progress in this one sector should not lead us to believe that renewables are a guaranteed success. Governments need to take action beyond economic recovery packages. They also need to create the rules and the environment to switch to an efficient and renewables-based energy system, and action toward 100% renewables is urgently needed worldwide. Globally. Now." concludes Arthouros Zervos, President of REN21.

 

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