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fore, economic outlooks regarding the transition to sustainable production of fuels and chemicals are complex and uncertain. For the industrial sector, it is necessary to understand the bottlenecks in terms of technological aspects, associated risks, production costs, and current and future capacity of RES. 11.3.1 Capacity and a levelized cost of RES The capacity and levelized cost of RES are two crucial factors that will determine the success of industrial transitions to sustainability [10]. In the last decade, the capacity of RES has grown vastly. However, the capacity rate in the last two years stalled, both overall and with regard to individual technologies, including wind and solar (Figure 11.1). More investments in RES are crucial to reach our sustainability goals; recent reports indicate that defossilization of the industrial sector will require access to 4-9 fold more RES-derived power than is currently used [10]. In this context, it is important to note that different sectors (e.g. transport, fuels, chemicals, and fertilizers) will likely compete for access if renewable power is limited. A lack of access to renewable energy in any of these sectors would have dramatic implications for related industries in Europe attempting to meet proposed targets for greenhouse gas emissions reductions. In addition to capac- ity, the levelized costs of RES will also be impor- tant. Although the pro- duction costs of RES have trended downwards—even reaching a value lower than 3 USD cents per kWh (lower than conventional power production) in cer- tain specific applications (Figure 11.2)—whether this trend will continue is un- clear. In particular, in- creased grid stabilization costs (as result of in- creased RES capacity) and increased electricity trans- port costs associated with decentralized RES may be significant. In other words, the production cost of RES is not aligned with the market price of RES-derived electricity. In fact, the market Figure 11.1: RES capacity additions by year and by sector. Reproduced with permission from [11]. 112PDF Image | sustainable production of fuels and chemicals
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