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Economic Perspectives of Renewable Energy Systems

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Economic Perspectives of Renewable Energy Systems ( economic-perspectives-renewable-energy-systems )

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facts have to be considered on the basis of “sustainability”, considering energetic, economic, environmental and social aspects. R&D is needed to find adequate solutions. The energy system of tomorrow will be a result of technological innovation and various social, economic and environmental changes. Important limitations to expanding the use of technical potentials of renewable sources are economics as well as the geographic distribution of the resource. Long-term scenarios are generally simplified. Estimates for the future energy systems generally involve forecasting current trends into the future creating the best possible images of the future. The main question what may be realisable is not answered. But prospective energy scenarios are not only meant to give the best prediction of the future but also to initiate debate or even promote visions. Energy scenarios often concentrate on the future of fossil fuels and nuclear energy, including longer-term prospects of producing oil from tar sands and extracting natural gas trapped in hydrate beneath the ocean. But fossil fuels and nuclear energy both face environmental challenges – fossil fuels because of their contribution to emissions of greenhouse gases, and nuclear power because of the problem of long-term storage for nuclear waste. Energy scenarios for the establishment of a “sustainable” energy system focus on the long-term vision of energy production systems based on renewable sources and more efficient energy-use technologies, as well as the use of hydrogen or other synthetic fuels of energy carriers. Also coal may be a part of future sustainable energy system, if way could be found to use coal more efficiently and to remove and store the CO2 produced when burned. The uncertain nature of energy forecasting is a main barrier for initiatives on global and national level to organise future energy systems. A key uncertainty is the point in time at which growth in the demand for oil and gas will extend growth in production capacity. There exist really no clear idea how much oil and gas can be recovered, and at what prices. Also the pace at which new energy technologies will be introduced on the market is a big source of uncertainty. The uncertain nature of energy forecasting is a main barrier for initiatives on global and national level to organise future energy systems. A key uncertainty is the point in time at which growth in the demand for oil and gas will extend growth in production capacity. There exist really no clear idea how much oil and gas can be recovered, and at what prices. Also the pace at which new energy technologies will be introduced on the market is a big source of uncertainty. 53

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