What Is Renewable Energy?


What Is Renewable Energy?

What Is Renewable Energy Learn the Facts? Explore clean energy sources—solar, wind, hydro, geothermal—grid integration, power electronics, inverters, energy storage, smart grids, decarbonization, reliability, and efficiency in electrical systems operation.

 

What Is Renewable Energy Learn the Facts?

Electricity from solar, wind, and hydro, converted by power electronics and integrated to grid for low-carbon supply.

✅ Power conversion: MPPT, inverters, and grid-tied converters

✅ Grid integration: protection, synchronization, and power quality

✅ Storage and control: BESS, EMS, frequency and voltage support

 

What Is Renewable Energy? Renewable Energy is popularly considered as any source of sustainable energy that has as its source the renewable, natural environment. Most souces of renewable energy include wind energy, solar energy, water energy and biomass energy, as well as geothermal energy. In most cases, renewable energies are replenished by the natural environment. Non renewable energy resources, such as fossil fuels, cannot be replenished. After all, it took eons of time to create deposits of fossil fuels sources and these deposits are in very limited supply and cannot be replaced. For a deeper primer on definitions and categories, see this overview from the Electricity Forum at what is renewable energy which clarifies common terms.

Wind energy, solar energy, water energy and biomass and geothermal energies comprise most of the plantet's renewable energy sources. Solar energy can be turned into electric power through the use of photovoltaic panels. This electric power can be consumed by many electrical appliances. You can explore how wind, solar, hydro, biomass, and geothermal compare in this guide to renewable energy sources for further context.

What Is Renewable Energy? These are systems that are a key part of the portfolio of electricity solutions. For example, today, traditional biomass represents the most important source of power in the developing world, with a 36 per cent share of total electricity consumption. Used in a sustainable way, biomass and other RE sources do not generate additional greenhouse gas emissions. Understanding how these options contribute to grids is outlined in an introduction to renewable electricity and its role in modern power mixes.

RE solutions offer many advantages. Since they use indigenous energy sources like wind, the sun, and rivers of water, they contribute to supply security by reducing reliance on electricity imports. There are a variety of national situations in terms of needs and resources, but renewable ernergy resources are largely available in most developing and developed countries. Creating an enabling environment which contributes directly to local economic development. Renewable energy installations bring jobs, capital, and sources of revenue to local communities, often to rural areas where these benefits are needed most. Policy makers often group these technologies under renewable alternative energy when designing incentives and community programs.

In certain remote locations, where electricity and/or fossil fuel infrastructure does not reach, RE systems can be the only cost effective option. In addition, modern renewable energy systems generate far less air pollution and greenhouse gas emissions than fossil energy systems thus reducing the threat of climate change and health risks. Depending on the installation, renewable ener gy projects may be smaller in scale and not as technically complex to operate and maintain as conventional energy projects. For all of these reasons, renewable energy is a valuable resource in addressing the world’s growing electricity needs. These lower-emission options are commonly described as clean renewable energy that supports public health goals.

RE form a relatively small part of the commercial energy portfolio today, but the costs of developing, installing, and delivering renewable energy to consumers have been falling, due largely to improvements in system designs and manufacturing techniques. In many applications, particularly in those instances where gaining access to conventional energy systems is difficult or costly, the market share of RE has been growing steadily in recent years. As learning and scale improve, the affordability of renewable power continues to improve across diverse applications.

What Is Renewable Energy? Characterising the impact of cost reductions and market share increases is the “learning curve.” Simply speaking, RE manufacturers and developers gain valuable experience with each new installation. The level of industrial experience with conventional energy systems is many decades longer than that for renewable energy systems. With modern research, development, and technology transfer techniques at their disposal, the RE industries have achieved progress. But because of this relative immaturity of some ernergy sources, many industry analysts expect cost reductions and performance improvements to continue at a faster pace in the RE sector, thus gaining greater competitiveness and increasing the likelihood that RE uptake will expand in the future. Case studies of maturing technologies highlight how integrated renewable energy systems can accelerate these learning effects.

 

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Renewable Power Explained

Renewable power drives grid decarbonization via solar PV, wind turbines, hydropower, energy storage, power electronics, and smart grid integration, optimizing reliability, efficiency, and demand response in modern electric power systems.

 

What Is Renewable Power?

Renewable power is electricity from sustainable sources, using power electronics and storage for grid integration.

✅ Power electronics: inverters, converters, MPPT control

✅ Grid integration: protection, stability, frequency regulation

✅ Energy storage: batteries, BMS, dispatch for peak shaving

 

Renewable power technology is developing rapidly around the world aided by range of economic support mechanisms. This paper reviews the various mechanisms, and explores the relative merits of technology push and market pull approaches. It compares the approaches adopted in the UK with those used elsewhere. For readers new to the topic, a clear overview of what is renewable energy helps frame the policy context being discussed here.

 

THE RENEWABLE CHALLENGE
Renewable power technologies are new entrants into the world's electricity generation systems. However, they face an uphill struggle against the well established dominant electricity generation power technologies coal and gas, plus nuclear. Given increasing concerns about climate change, governments around the world have tried to simulate the expansion of renewable power generation via a range of subsidies and other financial support systems. As policymakers weigh options, comparative lists of renewable energy sources illustrate how technology maturity and costs vary across the sector.

Underlying the approaches to the development of renewable power technologies that have been adopted around the world is a basic distinction between supply side "technology push" approaches and demand side "market pull" approaches. It was perhaps inevitable that technology push dominated initially, in the mid 1970s, as new technologies needed research and development (R&D) effort, with much of the funding coming from government in the form of grants to research teams. However, by the early 1980s, the emphasis shifted in most countries to a market pull approach. Evidence from markets that track renewable power sources shows how pull mechanisms can accelerate deployment once early R&D has de-risked the technologies.

 

MARKETS OR SUBSIDIES?
Renewable power technologies need subsidies to get established, but at some point they should be able to compete with traditional methods of generating electricity, without subsidy. Wind power has nearly reached that point, and some waste or biofuel combustion options have already passed it. So, for these attractive renewable power technologies, the energy market has achieved its primary goal, even though it has maybe not led to much overall installed capacity. In practice, sustained cost declines have followed broader adoption of clean renewable energy solutions in competitive procurement schemes.

However, there are new renewable power options which need continued support, such as wave and tidal power. With the large scale wave and tidal programs abandoned, and in the new liberalized electricity market, the emphasis being on smaller scale plants, the focus amongst the surviving research teams had been on smaller scale inshore and onshore wave system and on the more recent idea of extracting renewable power from tidal flows.>/p>

For emerging marine concepts, insights into alternative energy power provide useful parallels for scaling prototypes to commercial arrays.

Projects like this, which were at best at the demonstration stage and more usually at the R&D stage, are not suited to support under the NFFO or the RO, which are meant for 'near market' technologies. By contrast the REFIT approach has provided support for technologies such as photovoltaic solar which are still very expensive on the assumption that costs will come down later as the market for the technology was expanded by subsidised lift off. So far, as we have seen, the UK approach does not seem to have done enough to help much near market technology take off. It is even less suited to less developed technologies. This may be one reason why, despite having a very large renewable power potential, so much of the world lags behind North America in terms both of developing capacity now, and in terms of meeting targets for the future. International case studies of alternative energy solutions underline the importance of stable, long-term policy design for investor confidence.

The challenge facing the United States is particularly striking. Whereas Germany already gets 14 per cent of its electricity from renewable power sources, the United States gets only about 1 per cent of its electricity from wind, solar, and geothermal combined. But more than half the states have set ambitious goals for increasing the use of renewable power, and president-elect Barack Obama wants 10 per cent of the nation's electricity to come from renewable power sources by the end of his first term, rising to 25 per cent by 2025. Yet unlike Germany, which has begun planning for new transmission lines and passing new laws meant to accelerate their construction, the United States has no national effort under way to modernize its system. A failure to improve the nation's grid will be a significant burden for the development of new renewable power technologies. Grid modernization discussions often reference foundational definitions and metrics outlined in learn the facts guides that connect resource potential with transmission needs.

 

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Renewable Energy Systems

Renewable energy systems integrate solar PV, wind turbines, battery storage, inverters, and smart grid controls for efficient generation, power conversion, and grid integration, enabling resilient microgrids and low-carbon, distributed electricity.

 

What Are Renewable Energy Systems?

Networks that convert renewable sources to grid-quality power using power electronics, storage, and control systems.

✅ Power electronics: inverters, converters, MPPT for PV and wind

✅ Grid integration: protection, synchronization, and power quality

✅ Energy storage: batteries, EMS, frequency and voltage support

 

Renewable energy systems today can be a cost effective alternative for areas with high electricity connection fees. For an overview of how stand-alone configurations work in remote areas, see this guide to off-grid solar power systems and typical cost considerations.

It is also possible to connect renewable energy power systems to the grid, reducing the amount of electricity you need to purchase, or in some cases, allowing you to export surplus power into the grid. Many homeowners start with a basic solar PV system to offset daytime loads before expanding capacity.

 


 

 

About renewable energy systems

Renewable energy is energy produced from sources which can be replenished or replaced from natural sources. For a deeper introduction, explore this overview of renewable energy and common technologies.

The most common forms of renewable energy used include:

  • photovoltaic modules;
  • wind turbine generators; and
  • micro hydro generators.

Homes usually are serviced with electricity from any of these renewable energy systems on their own or in combination with other electric power systems. Resources on broader renewable alternative energy can help you compare options for your site.

 

Grid-interactive vs. stand-alone power supplies

Since renewable energy systems are often intermittent, (because solar panels only operate during daylight and mostly sunny days) a method of storing the electricity is required. The most common solution for this situation is to incorporate the use of storage batteries. Power from the solar array is used to charge batteries for use later in the day. Because these systems work independently from the electricity grid, they are often referred to as "stand alone power systems". In situations where the cost of connection to the power grid is prohibitive, a stand-alone renewable energy system can be cost effective. Many stand-alone systems use diesel or gasoline generators to recharge batteries during extended period without solar energy.

When planning capacity, it's helpful to weigh the pros and cons of solar power for your climate and usage profile.

An alternative is to use the electricity grid to store the energy. These systems are known as grid-interactive systems. The renewable energy is converted to electricity for use in the household and any surplus power is fed into the grid. Power is drawn from the grid when the renewable energy system is not enough to meet the home's energy demand. Some electric utilities prefer that all of the power from the solar power system is sent directly to the grid and metered separately , which means that all the electricity to the home comes from the grid as it is with conventional homes.

 

Components and features of stand-alone renewable energy systems.

Renewable energy systems consist of several very basic component equipment parts and there are key features which are briefly described and shown on this page.

  1. Electric Power Generating Equipment
  2. PV modules, wind turbines, micro-hydro generators, or a petrol or diesel generator can provide electric power production on their own or in concert with other systems.
  3. Control and regulation equipment
  4. Various types of power regulators, controllers, power meters and power circuit breakers may be used to control battery charging and to provide power protection.
  5. Energy storage
  6. Specialized large capacity batteries are usually used to store otherwise lost energy so that a reliable source of power can be available when needed.
  7. Inverters
  8. These devices convert electricity from the batteries or renewable energy source to the electricity used by household appliances (240 V AC).
  9. Specialized “grid-interactive” inverters are able to feed electricity produced by renewable sources into the electricity grid without disruption to the household electricity supply.
  10. Control Box
  11. Wiring and electrical accessories

Well-designed renewable energy systems should include special wiring that is capable of keeping energy losses to an absolute minimum. Adequate power fusing, electrical grounding, lightning protection and other measures should be used in the renewable energy system.

  • Home design, lighting and various appliances

     

    TNew home designs should incorporate useful energy efficiency features. Also, high efficienct lighting systems and appliances can be selected and specified to keep the energy load to a bare minimum, thus aiding to reduce the cost of such systems.

    Grid-interactive renewable energy power systems

    In addition to stand-alone systems, which require batteries to store energy, REPS can operate in conjunction with the mains electricity system. These are known as grid-interactive or grid-connected systems.

    How do they work?

    In grid-interactive renewable energy systems electricity is still generated from a renewable energy source in the same way as a stand-alone system. The electricity generated then passes through a specially approved power inverter, which converts electric energy into conventional 240 V which in turn is used by home appliances. When there is surplus electricity generated, it will be sent back through the inverter into the power grid. If the home consumes more electricity than your renewable energy system is producing, the power provider automatically will supply the balance of the energy required without any disruption to home appliances. Selecting a certified solar power inverter ensures grid compliance and optimal performance.

    Your power meter measures the level of outgoing and incoming electricity. This provides a net usage amount for your house. In the majority of cases, surplus electricity which is fed back to the electric utility is credited back to you. The net amount that is actual consumption is charged for that billing period. In reality, your power meter can become a cash register. Specialized "smart" meters are sometimes used where more detailed power monitoring is required. As there are variations to this process, check with your electricity supplier for more information on equipment and metering details for your property.

    What are the benefits?

    The major benefit of grid-interactive renewable energy systems is that they produce power from clean, renewable solar energy, allowing householders to reduce greenhouse gas emissions and improve our environment. As renewable energy systems use the main electricity grid as a back-up, power is always available and systems can be sized according to the customer’s requirements and budget. For background on technologies and policy, review renewable energy facts for informed decision-making.

 

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Renewable Energy Tax Credits

Renewable Energy Tax Credits reduce project CAPEX via ITC/PTC incentives for solar, wind, battery storage, and EV charging, supporting grid modernization, power electronics, and IEEE-compliant interconnections while accelerating decarbonization and load flexibility.

 

What Are Renewable Energy Tax Credits?

ITC/PTC credits cut capex for electrical systems—solar PV, wind, storage, EV chargers—boosting ROI and grid reliability.

✅ Offsets inverter, transformer, and protection system costs

✅ Applies to solar, wind, storage, microgrids, and EVSE

✅ Encourages IEEE 1547 interconnects and smart inverters

 

The Government of Canada wants Canadians to invest in a healthier environment, a more stable energy future and a more competitive economy, so it offers innovative Renewable Energy Tax Credits. For an overview of complementary programs, the resource at alternative energy incentives outlines how federal and provincial measures align with investment goals today.

In order to achieve these goals, two specific Renewable Energy Tax Credit measures are available to encourage investments in energy efficiency and renewable energy projects:

  • Class 43.1 in Schedule II of the Income Tax Act allows taxpayers an accelerated Renewable Energy Tax Credit write-off of certain equipment that is designed to produce energy in a more efficient way or to produce energy from alternative renewable energy sources.
  • Canadian Renewable and Conservation Expenses (CRCE) is a category of fully deductible expenditures associated with the start-up of renewable energy and energy conservation projects for which at least 50 per cent of the capital costs of the property would be described in Class 43.1.

Investors can also consult alternative energy tax credits to understand how project structures interact with other deductions and incentives available in Canada.

Investments in energy efficiency and renewable energy are helping to reduce Canada’s consumption of fossil fuels and minimize the production of greenhouse gases that contribute to climate change and other environmental problems. These investments also contribute to the development of new technologies1 and lead to export opportunities. It’s all part of the government’s ongoing efforts to promote sustainable development by integrating economic and environmental goals. Further context on market benefits is provided in clean renewable energy discussions that track growth trends and policy impacts across sectors worldwide.

Sustainable development will ensure the continued prosperity of Canadians while safeguarding our natural heritage for future generations. As deployment expands, insights into renewable power generation can help stakeholders benchmark performance and grid integration approaches in comparable jurisdictions.

 

Canadian Renewable Energy Tax Credits and Conservation Expenses

The early development phase of renewable energy and energy conservation projects typically involves certain intangible costs, such as feasibility and resource assessment studies. The CRCE category of expenditures was introduced in the 1996 Budget to allow investors Renewable Energy Tax Credits to fully write-off certain intangible costs associated with investments in renewable energy and energy conservation projects. CRCE is intended to promote the development of conservation and renewable energy projects in the same way that is currently done for investments in other types of resource activities.

Under CRCE, Renewable Energy Tax Credits allow eligible expenditures are 100 per cent deductible in the year they are incurred or can be carried forward indefinitely for deduction in later years. These expenditures can also be renounced to shareholders through a flow-through share agreement, providing the agreement was entered into before the expense was incurred. To be eligible, costs must be incurred after December 5, 1996. For the legislative basis of flow-through shares and CRCE expenditures, please refer to Sections 66 and 66.1 of the Income Tax Act and to Section 1219 of the Income Tax Regulations.

In parallel, understanding how markets value renewable energy credits can enhance financial models where environmental attributes are monetized alongside tax deductions.

 

Class 43.1 Accelerated Capital Cost Allowance

Class 43.1 provides an accelerated rate of write-off for certain capital expenditures on equipment that is designed to produce energy in a more efficient way or to produce energy from alternative renewable sources.

Class 43.1 allows taxpayers to deduct the cost of eligible equipment at up to 30 per cent per year, on a declining balance basis. Without this accelerated Renewable Energy Tax Credit write-off, many of these assets would be depreciated at annual rates of 4, or 20 percent (with the exception of expenses eligible for the pre-existing Class 34, which were deductible at an annual rate of up to 50 percent). In planning capital acquisitions, awareness of broader trends in alternative energy development can inform equipment selection and timing for making claims under this class.

 

What Types of Systems Qualify?

In general, the following types of systems qualify for CRCE Renewable Energy Tax Credit or Class 43.1 write-off:

 

Electricity Generation Systems

  • certain cogeneration and specified-waste fuelled2 electrical generation systems
  • small-scale hydro-electric installations (not exceeding 15 megawatts of average annual capacity)
  • wind energy electrical generation systems
  • enhanced combined cycle systems
  • expansion engines
  • photovoltaic electrical generation systems (three kilowatts capacity or larger)

Specified-waste fuels, both for electricity generation and heat production, are defined as municipal waste, wood waste, landfill gas or digester gas.

  • geo-thermal electrical generation systems
  • electrical generating systems using solution gas that would otherwise be flared during the production of crude oil

 

Thermal Energy Systems

  • active solar systems (including groundsource heat pumps)
  • heat recovery systems
  • specified-waste fuelled heat production equipment

Note: Thermal energy systems qualify only if their primary purpose is to produce thermal energy for use directly in an industrial process.

 

Eligible Expenses
Intangible expenses eligible under CRCE Renewable Energy Tax Credits include:

  • the cost of pre-feasibility and feasibility studies of suitable sites and potential markets for projects that will have equipment included in Class 43.1
  • costs related to determining the extent, location and quality of energy resources
  • negotiation and site approval costs
  • certain site preparation costs that are not directly related to the installation of equipment
  • service connection costs incurred to transmit power from the project to the electric utility

Test Wind Turbines

Costs related to the acquisition and installation of a test wind turbine – defined as “the first wind turbine installed at the site of a proposed wind farm, whose primary purpose is to test the energy production at the site” – are included in the CRCE category of expenses. In order to be eligible, a favourable prior opinion must be issued by the Minister of Natural Resources Canada for each installation.

Tax Incentives
The following types of costs are eligible for an accelerated rate under Class 43.1:

  • machinery and equipment
  • related soft costs for design, engineering and commissioning
  • other services required to make the system operational

Many proponents also leverage alternative energy grants to complement accelerated allowances and reduce upfront cash requirements for project execution.

Depending on all the facts of a particular situation, the cost of modifications and improvements to existing qualifying equipment may also be eligible, provided that:

  • the costs increase the capacity or performance of the equipment
  • the resulting system continues to meet the conditions for qualification

The following are generally ineligible under Class 43.1:

  • operating costs
  • spare parts inventories
  • foundations and structures, except those associated with qualifying small-scale hydro-electric, photovoltaic and wind energy conversion systems
  • electrical distribution systems
  • electrical transmission systems, except those associated with qualifying small-scale hydro-electric, photovoltaic and wind energy conversion systems
  • used equipment, except if the equipment was included in Class 34 or 43.1 of the vendor, remains at the same site in Canada and is not more than five years old Generally, to be eligible for Class 43.1, an asset must be acquired after February 21, 1994, by a Canadian taxpayer for use in a business in Canada.

For more information on CRCE or Class 43.1, please order the guide entitled Class 43.1 Technical Guide and Technical Guide to Canadian Renewable and Conservation Expenses (CRCE) at a cost of $100 plus applicable taxes, available from the following address. A written prior opinion can be obtained by writing to:

Class 34/43.1 Secretariat
CANMET Energy Technology Centre
Natural Resources Canada
1 Haanel Drive, Bldg. 3
Nepean, ON K1A 1M1
Tel.: (613) 996-0890
Fax: (613) 995-7868

 

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Renewable Energy Credits

Renewable energy credits certify MWh-scale green generation, enabling GHG accounting, Scope 2 reductions, RPS compliance, and PPA hedging via registries like WREGIS, GATS, and M-RETS for grid decarbonization and utility procurement strategies.

 

What Are Renewable Energy Credits?

Tradable 1 MWh certificates for renewable generation, used in Scope 2 accounting, RPS compliance, and decarbonization.

✅ Verifies MWh via meter data and ISO/RTO registry tracking

✅ Enables Scope 2 reductions for facilities and microgrids

✅ Supports RPS compliance and PPA procurement strategies

 

Renewable Energy Credits, otherwise known as Renewable Electricity Certificates, or Tradable Renewable Certificates (TRCs), are tradable, non-tangible energy commodities that represent proof that 1 megawatt-hour (MWh) of electricity was generated from an eligible renewable energy resource (renewable electricity). For context on how clean generation is delivered and tracked, see renewable electricity fundamentals and related attributes.

Renewable Energy Credits can be sold and traded or bartered, and the owner of the REC can claim to have purchased renewable energy. While traditional carbon emissions trading programs promote low-carbon technologies by increasing the cost of emitting carbon, RECs can incentivize carbon-neutral renewable energy by providing a production subsidy to electricity generated from renewable sources. It is important to understand that the energy associated with a REC is sold separately and is used by another party. The consumer of a REC receives only a certificate. These market incentives often complement policies such as renewable energy tax credits that influence project financing.

In states and provinces that have a REC programs, a green energy provider (such as a wind farm) is credited with one REC for every 1,000 kWh or 1 MWh of electricity it produces (for reference, an average residential customer consumes about 800 kWh in a month). A certifying agency gives each REC a unique identification number to make sure it doesn't get double-counted. The green energy is then fed into the electrical grid (by mandate), and the accompanying REC can then be sold on the open market. Understanding the range of renewable energy systems that can issue RECs helps stakeholders assess performance and eligibility.

Renewable energy power companies benefit from RECs because they serve as an incentive. Many non-renewable energy sources are subsidized, making it difficult for green energy companies to survive. By being able to sell the power and RECs, the company can afford to thrive in the market. Prices for RECs vary widely, just like other commodities, and they are available for sale in numerous locations. Price signals can also vary with the mix of local renewable energy sources and transmission constraints.

By purchasing Renewable Energy Credits, consumers can claim that they are supporting green energy. While a consumer would ideally also purchase renewable energy for his or her home, this is not always possible. RECs allow companies and individuals to support power in areas which do not offer it directly. Consumers should also, of course, practice conservation and work to get green power in their area, but RECs are a good place to start. For companies, they are an important part of doing business responsibly, while thinking about future generations. For households unable to procure green tariffs, RECs align with broader clean renewable energy practices and ongoing efficiency efforts.

Along with carbon offsets and other incentive programs, Renewable Energy Credits are part of a growing movement which acknowledges that even small changes make a big difference. By supporting green energy, consumers show that there is a demand for it, and companies can build more plants or accelerate production with the funds raised through the sale of RECs. Organizations which promote programs like this hope to eventually see everyone's ecological footprint, meaning the amount of resources and space needed to support a particular lifestyle, greatly reduced. Clear explanations of what is renewable energy empower buyers to request credible products and disclosures.

 

What's the difference between a REC and a Carbon Offset?

All RECs from qualifying new generators represent the environmental attributes of renewable power, principally the fact that producing that power causes less, or no, pollution. When you buy an amount of wind-generated Renewable Energy Credits equal to your electricity consumption, you are legally entitled to claim that you are wind powered, and that your electricity use does not contribute to global warming. In other words, all wind Renewable Energy Credits can convert your electricity to wind power. However, for a REC to be used to offset emissions from driving, flying or heating your home, it must be from a project that would not have been implemented without the opportunity to realize revenues for the carbon reductions (in other words, it must be "additional" to business-as-usual - see "what's the importance of additionality, below"), and not all renewable energy projects can say that. To evaluate such claims confidently, consult resources that present renewable energy facts and common verification methods.

 

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Renewable Power Generation

Renewable power generation harnesses solar PV, wind turbines, and hydroelectric resources, using inverters, MPPT, and energy storage for grid integration, power quality, reliability, and decarbonization across smart grids and distributed generation.

 

What Is Renewable Power Generation?

Electrical generation from wind, solar, and hydro via grid-tied systems, inverters, and storage to cut emissions.

✅ Includes solar PV, wind turbines, and hydroelectric plants

✅ Employs inverters, MPPT, and converters for power quality

✅ Integrates storage, microgrids, and smart grid control

 

Renewable power generation is one of the most important subjects in today's electricity production industy and in the future will dominate the agenda to remove power generation from the use of fossil fuels As priorities shift, a clearer understanding of renewable energy sources helps frame policy and investment decisions.

Of all the energy currently consumed in Canada, about 3,700 PJ (46%) is used to generate electricity. Canada has approximately 112 GW of installed electricity generation capacity, and produces approximately 561,805 GWh of electricity annually11 , resulting in a $27 B/yr business12 . Most electricity generation, transmission and distribution have traditionally been handled by vertically integrated provincial monopolies. This resulted in the construction of large-scale centralized power generation facilities and massive transmission systems owned by the same generator. The market is currently evolving under new deregulation guidelines. These shifts are framed by national discussions on renewable electricity policy and markets that influence provincial planning across Canada.

 


 

There are currently five main sources of power generation in Canada: natural gas, oil, coal, hydro (larger systems), and nuclear. The smallest component is from "other" sources (<2%), which includes renewable power generation. The National Energy Board estimates that "other" renewable power generation sources will reach 5.5 GW of installed capacity under the Business As Usual scenario, or 16.1 GW under the Techno-Vert scenario13, by the year 2025.Projection figures vary considerably throughout the industry and among government departments and jurisdictions,but are sufficient to provide a range from which to make some reasonable assessments. Contextualizing these categories against the spectrum of renewable power sources clarifies where incremental capacity is most likely to emerge.

Renewable Power Generation

Building on this theme, many jurisdictions measure progress by how much renewable power can reliably contribute during peak demand conditions.

Each sub-sector is examined for its potential to produce electricity and displace conventional fossil fuel electricity generation. Some of the fuels may have other - or even better - applications involving renewable power generation. Cross-sector comparisons with broader renewable alternative energy pathways can highlight complementary uses and integration strategies.

  • Wind generated electricity
  • Solar energy converted into electricity
  • Stationary Fuel Cell technology that generates electric power
  • Electric power generated from bio energy sources

 

          
 

  • Wind Power: Wind power is becoming the leading non hydro-electric renewable energy source of North American electricity generation. The wind power industry, like the larger renewable power generation industry, has benefited from many years of public and private investment and technology improvements from countries around the world. As a result,some wind installations in Canada are now cost-competitive with (and even less expensive than) conventional electricity generation-even without the Wind Power Purchase Incentive (WPPI) program. Because there is lots of rural property in with suitable wind potential, it means there are many suitable locations which can support renewable power generation. The current focus of the wind power industry is to erect wind turbines and make them operational in time to meet future electricity demand.

          

 

  • Solar PV Power: Solar energy is traditionally classified in three ways:Photovoltaics (solar electricity,or PV),Solar Thermal (heat) and Passive Solar (displacing the need for active heating or cooling). Most residential, commercial and industrial buildings require both electricity and heat (hot water,space heat,etc.). At this time,this report only focuses on Solar PV. If required,a full treatment of solar thermal (or the combined use of PV and solar thermal) may be conducted in a future analysis.
  • Bio-electricity Power: Biofuels encompass all forms of renewable energy derived from bio-based matreials. Ttwo of the four types of renewable power generation from bioenergy sources are bio oil and bio gas. Bio oil can also be converted to electric power in means other than boiler combustion. Generally, bio-renewable power generation involves feedstock collection, fuel production and electricity generation.
  • Stationary Fuel Cell Power (Hydrogen): Hydrogen as a possible renewable power generation source opens up a broad application area from alternative energy fuels in transportation to renewable power generation using special hydrogen fuel cells.While the application area for hydrogen is large,the specific focus of this report is on the use of hydrogen fuel cells for the delivery of renewable power generation to electricity grids.

Solid Biomass combustion is the most prominent form of biomass use in Canada. Biomass co-generation is already used widely in the pulp and paper industry for power, space and process heating. It is an established technology which needs improvement, but has not been a strong focus of biotechnology research and development. Advances in controls and co-firing are improving the competitiveness of biomass within the wider alternative energy power landscape for industrial sites.

The top five near-term investment opportunities for renewable power generation include:

Targeted pilots and standards can accelerate alternative energy development while de-risking capital for utilities and independent producers.

  • Expanded Feedstock for Bio-electricity - To be successful, electrical generation (fuel conversion) equipment must be able to use a wider range of biomass feedstocks beyond the high quality sources that are currently used. Further, new logistics (collection, harvesting, refining) and conversion processes must be developed to supply a steady and reliable source of these additional raw materials for the emerging biofuel processes and bio-electricity facilities. Examples include technologies that go beyond corn-based ethanol8 and white-wood based pyrolysis.
  • Wind Power Grid Integration Hardware - Connecting wind farms to the grid in a standardized,cost effective, and reliable way involves both new technology solutions and policy development. While grid connection is largely a policy issue, there are emerging technologies that can increase wind system power quality and reliability, which will help them gain acceptance among utilities.
  • Liquid Biomass ( "Bio Oil") Plant Scale-Up - Demonstrations are required to validate the technical and economic viability of bio-processing plants as they scale from prototype to commercial sizes: ie: wood pyrolysis has progressed to the point of full production and needs to prove its value based on the many products that are derived.
  • Large Wind Turbine Component - The wind power industry requires larger wind turbines to achieve energy economies of scale. However, to remain competitive in the renewable power generation business, certain ways must be explored to decrease the weight/power output ratio of wind turbines while at the same time increasing equipment life. It is being learned that new investments are required in the research and development of lighter, stronger and more cost-effective wind turbine components and tower designs.
  • Solar PV Building Integration - Similar to wind, solar PV systems in Canada require greater access to the power grid.In the residential, commercial and industrial building markets there is the technical potential to fully integrate solar components within the structure and have it replace and reduce power demand from current sources. The cost of the solar power systems and their integration into renewable power development needs to be addressed. Many technological solutions and new energy policies may be required.

 

 

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Renewable Electricity Technology

Renewable electricity enables grid integration of solar, wind, and hydro via power electronics, inverters, and converters; optimized by SCADA, EMS, and storage for frequency regulation, reliability, decarbonization, and resilient microgrids across transmission.

 

What Is Renewable Electricity?

Renewable electricity is grid power from solar and wind, enabled by power electronics, storage, and control systems.

✅ Power converters and inverters synchronize renewables to the AC grid.

✅ Energy storage mitigates intermittency and supports frequency regulation.

✅ SCADA, protection relays, and EMS ensure stability and safety.

 

Renewable Electricity Renewable electricity (RE) policy is an important subset of industrial and energy policy, and thus needs to be aligned with the energy policy priorities of sustainability, competitiveness, and security. Our common and only long-term natural advantage in the energy sector stems from renewable electricity resources such as wind, biomass, and ocean energy. For a concise overview, see what is renewable energy for context.

Climate change mitigation and security of supply have become the focus of many recent national electricity policies. Renewable energy resources can play an important part in addressing both of these concerns. Additional background on key renewable energy sources can clarify technology options.

Against this background of increasing fossil fuel prices and remarkable energy growth demand, this page focuses on renewable electricity. Readers can also learn the facts about renewable energy to understand policy implications.

Consumers demand secure, dependable and competitively priced electricity and producers must be responsive to these market requirements. Well-designed renewable energy systems help meet these expectations.

The combination of increased demand for renewable electricity and security of supply is a very powerful driver of major power sector change worldwide. Currently, for example, about 50 per cent of energy demand is met with imported fuel and there are projections that this could rise to about 70 per cent in future decades. Economic development and increasing consumption of electricity-consuming equipment will increase the demand for future electricity. Comparative insights into renewable alternative energy highlight pathways for reducing import dependence.

Alongside electricity demand and security of supply issues, climate change also poses a global threat. Large scale decarbonisation of electricity generation and many other sectors will have to occur if the planet is to stay within the 2 degree C target for limiting global warming effects. Scaling clean renewable energy remains central to achieving these targets.

The key components of such a vision are:

  • A regional power system based on a SuperSmart Grid;
  • The rapid scaling up of all forms of renewable power, with the ultimate goal of decarbonising electricity generation in Europe and North Africa;
  • A unified European power market that is united with the North African one, allowing for the free trading of electricity between all countries;
  • The production of renewable electricity at the most suitable sites by the most suitable renewable electricity technologies

     

    Renewable Electricity Resources

    Resources and technological applications that may qualify as a source for Clean or Renewable Electricity production are listed below:

    In many markets, renewable energy credits support project economics and tracking of environmental attributes.

    Biogas Energy - refers to renewable electricity produced from a plant that mostly captures biogas for conversion to electric power. Biogas refers to the gaseous constituents (mostly methane and carbon dioxide) are produced from solid organic waste. Facilities producing biogas fuel include municipal garbage landfill sites, common sewage treatment facilities, and anaerobic deterioration of organic waste processing plants.

    Biomass Energy - refers to renewable electricity generated from the burning of organic materials. Biomass includes, but is not limited to:

    • Clean wood biomass, which translates into
    • wood residue
    • wood leftover debris from logging activities
    • organic residue from pulp and paper production plants
    • timber infectedd with mountain pine beetle
    • Liquid fuel that comes from biomass sources such as bio-oil, ethanol, methanol, etc.
    • Dedicated energy crop sources such as corn
    • Clean burning and organically sourced material which has been separated from municipal solid waste

    Energy Recovery Generation (ERG ) - refers to renewable electricity generated from the recovery of industrial waste energy that would otherwise be emitted into the atmosphere. ERG represents a net environmental benefit relative to existing energy production because it uses the waste output of other industrial processes to generate electricity. Therefore, all energy output from an ERG plant is considered renewable.

    Geothermal Energy - refers to renewable electricity produced using the natural heat of the earth, including steam, water and water vapour as well as all materials dissolved in the steam, water or water vapour.

 

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