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06 FEATURE: TRACKING THE GLOBAL ENERGY TRANSITION During the same period, concentrating solar thermal power (CSP) capacity increased nearly 10-fold.10 Investment has moved beyond the traditional markets of Spain and the United States, with increasing development in South Africa, the Middle East and North Africa (MENA) region, Asia, and Latin America. The use of geothermal energy for the generation of electricity and heat has seen steady expansion. Furthermore, ocean technologies for electricity generation have evolved significantly throughout the last 10 years. Although the last decade has seen tremendous advances in the electricity sector, the renewable heating and cooling sector has lagged behind. This is despite the marked significant growth over the past decade in the use of geothermal, solar thermal, and biomass heating technologies for water and space heating, process heat, and cooling.11 Given that the share of heating and cooling in final energy demand is much higher than that of electricity, fostering growth of renewable energy in this sector is of particular importance. In the transport sector, the use of renewable energy in the form of biofuels grew at a rapid pace for much of the decade ending with 2013. Biodiesel production increased 15-fold, while ethanol production grew nearly fourfold (from much higher levels).12 Over the past decade, gaseous biofuels have seen small but growing markets in the transport sector, and initiatives to link renewable energy with electric transport also have emerged.13 ■■A DECADE OF CHANGE Global perceptions of renewable energy have shifted considerably since 2004, when people widely acknowledged the potential of renewable energy, but large-scale deployment still had to be demonstrated. Over the last 10 years, continuing technology advances and rapid deployment of many renewable energy technologies, particularly in the electricity sector, have demonstrated that their potential can be achieved. Today, renewable energy technologies are not only viewed as tools for improving energy security and mitigating and adapting to climate change, but are also increasingly being recognised as investments that can provide direct and indirect economic advantages by reducing dependence on imported fuels, improving local air quality and safety, advancing energy access and security, propelling economic development, and creating jobs.14 Declining costs have played a significant role in the expansion of renewable energy deployment in recent years. Now, several renewable energy technologies are cost competitive with conventional generation technologies, even before considering environmental and other externalities.15 As a result, companies have begun to realise that making the switch to renewable energy in conjunction with energy efficiency measures can reduce their energy costs while helping them to tackle sustainability concerns. An increasing number of companies, large and small, are either purchasing renewable electricity from utilities and other providers, or installing and operating renewable energy capacity at their own facilities. Furthermore, recent years have seen the rise of self-generation at the household level, as well as the spread of cooperative and community-owned renewable energy projects. Extraordinary growth in renewable energy markets and their global spread have led to a significant rise in the number of manufacturers, the scale of manufacturing, and the number of jobs in installation and servicing of renewable energy technologies, as well as expansion into new markets. This is particularly true for the solar PV and wind power industries, which have experienced industry consolidation simultaneously. Ten years ago, most deployment and manufacturing of renewable energy occurred in Europe, the United States, and Japan. Since then, markets, manufacturing, and investment have shifted to other regions. China has become the world leader in renewables manufacturing and installed capacity, having increased investment in the sector nearly every year for the past decade.16 Increasing amounts of money are now flowing to developing and emerging countries across Africa, Asia, Latin America, and the Middle East, in response to the rapid growth in energy demand and growing interest in renewables in these regions. Foreign direct investment in renewable energy and the mobilisation of private capital in emerging economies has also contributed to the past decade of growth across technologies and regions. Nonetheless, many of the countries that led global markets in 2004 continue to do so. These paved the way for technology advances and market expansion through early investment in technology and policy design. As renewables have spread across the globe, they have seen growing use in remote and rural areas of the developing world. Renewable electricity in rural areas has continued to become more affordable and diversified in both application and size as technology has advanced, prices have decreased, knowledge of local renewable resources has improved, and new business and financing models have emerged.17 Parallel advances in electronics, management systems, mobile phones, and other technologies have also reduced the costs of renewable energy systems and services while extending their reach. Over the past decade, the share of people who lack access to modern energy services has fallen by nearly 10 percentage points (down from almost 25%), even as the global population has expanded significantly.18 Renewables have played a role in this advancement. However, advances are not spread evenly geographically, leaving large areas of Africa still without access to modern energy services. Renewables are uniquely positioned to provide energy access in a sustainable manner, more rapidly and generally at lower cost than their alternatives. The UN Secretary General’s Sustainable Energy for All (SE4ALL) 102PDF Image | About ElectraTherm
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