Introduction: A Spark in the Dark? The Acceleration of Green Energy
Recent geopolitical conflicts and environmental disasters have exposed the vulnerabilities of a global energy infrastructure that heavily relies on fossil fuels. Many countries are now working towards enhancing their energy independence and resilience, prompting the global community to accelerate efforts to shift to a green energy economy.
Although the circumstances for this acceleration are bleak, the implications for developing renewable power at the pace and scale needed to meet our global emissions reduction targets give cause for hope. This article aims to demonstrate the transformative potential of green energy solutions and explain why and how they represent a promising future for sustainable development, economic stability, and environmental protection.
The Economic Argument for Renewable Energy Adoption
In 2023, worldwide investment in sustainable technologies reached USD 1.8 trillion – an unprecedented 17% surge. This new record in annual investments reflects not only an environmental awakening but also the recognition of renewable energy as a catalyst for economic growth. In addition to the environmental imperative, the transition to renewable sources is driven by their competitive cost, job creation potential, ability to foster innovation, and capacity to mitigate economic uncertainties resulting from global crises. Renewable energy also strengthens national security, especially for regions that rely on fuel imports, by reducing dependence on volatile fossil fuel markets.
Cleaner and Cheaper Green Energy
Transitioning to green energy offers immediate financial benefits. Solar and wind are becoming increasingly competitive. Since 2010, the cost of solar power has fallen by more than 89%, making it a financially viable option for businesses. By utilising renewable energy, businesses can keep their energy costs stable, which is a key advantage in the face of fluctuating fossil fuel prices. Governments around the world are offering incentives and subsidies to encourage the use of renewables. In the United States, companies can now deduct 26% of the cost of installing a solar system from their taxes, which is a significant financial incentive for investing in green alternatives.
Lower Operating Costs and Long-term Efficiency
Renewable energy systems are not only increasingly competitive, but also provide financial savings by reducing energy consumption costs over time. They are more efficient and resilient. Modern solar panels, for example, have an impressive efficiency of 15-20%, which is a significant improvement compared to the last decade. This higher efficiency not only reduces maintenance costs, but also extends the lifespan of the systems, allowing them to operate for 25 to 30 years with minimal loss of performance. Renewable energies provide companies with stable and predictable operating costs, enhancing long-term visibility and ensuring scalability prospects.
The Air-Tight Advantages of Green Energy
The transition to green energy represents a fundamental change in the way we produce and consume energy. The benefits go far beyond economic advantages, ranging from promoting sustainable development goals to improving people's health and well-being.
Meeting Sustainable Development Objectives
Renewable sources such as solar, wind, biomass, geothermal energy and green hydrogen significantly reduce greenhouse gas emissions and contribute to global efforts to mitigate climate change. Cheap electricity from renewables could cover 65% of global electricity demand by 2030. By 2050, 90% of the electricity sector could be decarbonised.
Enhancing Economic Growth, Urban Liveability and Environmental Health
Integrating green energy into urban and regional planning is essential for achieving sustainable development goals. This is particularly crucial in densely populated areas where energy demand is high, and environmental impacts are significant. Green energy integration can catalyse positive developments in communities, creating jobs, improving air quality, and promoting a healthier and more sustainable lifestyle.
Supporting Local Economic Growth
Investments in green energy infrastructure and mobility solutions create jobs in various sectors, including construction, technology and services. These economic incentives support local development and attract further investment to the region.
In addition, cities that invest in renewable energy infrastructure benefit from lower long-term energy costs. Cities increase their security and stability by using locally produced green energy instead of imported fuels.
Promoting Accessibility and Social Equity
Green mobility initiatives include the expansion and electrification of public transport networks to improve accessibility and provide affordable and efficient transport options for all urban dwellers, including those in underserved communities.
The decentralised nature of many renewable power sources, such as solar and wind, allows for greater community participation and control over local energy production. By democratising energy supply, communities can have a say in shaping their sustainable future.
Electric vehicles and public transport systems powered by renewables are significantly quieter than their fossil-fuelled counterparts. This reduces noise pollution, creates a more pleasant and peaceful urban atmosphere, and ultimately improves the quality of life for city residents.
Driving Urban Innovation and Resilience
Smart infrastructure includes green energy and smart technology, such as intelligent lighting systems and energy-efficient buildings. These technologies reduce consumption and pave the way for innovative urban solutions that can adapt to changing environmental conditions.
Cities powered by renewable sources are better equipped to withstand and adapt to the effects of climate change. Green infrastructures, such as green roofs and walls, promote energy initiatives and strengthen urban resilience by improving stormwater management and reducing the urban heat island effect.
From Solar PV to Green Hydrogen: A Closer Look at the Benefits of Renewable Energies
A closer examination of the benefits of different green energy types demonstrates the transformative impact of renewable sources on businesses, communities, and the planet. Equans’ active involvement in green transition projects proves not only the technical feasibility of large-scale renewable energy production, but also its long-term socio-economic and environmental viability.
Solar: Harnessing the Power of the sun
Solar energy, particularly PV, is the driving force behind the renewable energy revolution. The IEA 2023 report shows that an estimated 96% of newly installed utility-scale solar PV has lower generation costs than new coal and gas-fired power plants. Solar PV in the United States, the European Union, India and Brazil is expected to more than double by 2028 compared to the last five years.
Key Benefits:
- Cost efficiency: The price of PV solar panels has fallen by almost 50% year-on-year. PV solar systems offer long-term savings on electricity bills and are increasingly being subsidised by governments and institutions.
- Reduced carbon footprint: By displacing fossil fuels, solar energy significantly reduces greenhouse gas emissions, contributing to global climate goals.
- Local and national energy independence: The versatility of solar energy makes it suitable for a wide range of applications, from domestic to industrial. Solar systems reduce dependence on imported fuels, increasing national and regional energy security.
SUNTOP project
The SUNTOP project is a large-scale solar farm located in Australia that was developed by Equans in partnership with Canadian Solar. This sprawling solar farm covers 450 hectares and features 440,000 solar panels. With an impressive installed capacity of 190 MWp, SUNTOP is capable of generating enough energy to power 65,000 homes while offsetting 357,000 tonnes of CO2 annually.
Biomass: Converting Organic Materials into a Power Source
Biomass energy uses organic materials to produce electricity, heat or fuel. This renewable source is particularly valuable because it can use waste products, contributing to a circular economy.
Key Benefits:
- Waste reduction: Biomass energy can convert agricultural, industrial and municipal waste into valuable energy, reducing landfill use and associated emissions.
- Versatility: Biomass can be used for electricity generation, heating and as a biofuel for transport, providing a versatile approach to renewable energy.
Economic development: Biomass energy projects can boost local economies by creating jobs and using local resources.
Tyseley Energy Park
The Tyseley Energy Park in Birmingham, UK, is a biomass power plant capable of supplying electricity to 8,440 homes. This scalable model for sustainable energy generation benefits both local and global communities and is an important step towards the UK's goal of zero carbon emissions by 2050.
Geothermal Power: Tapping into the Earth's Heat
Geothermal energy uses the earth's internal heat to generate electricity and heat, providing a reliable and constant source of energy, unlike the intermittent solar and wind power.
Key Benefits:
- High efficiency: According to the US Department of Energy, geothermal systems can achieve operational efficiencies ranging from 400% to 600%. They consume 75% less energy than conventional heating and cooling systems and ensure consistent temperature control with lower long-term running costs.
- Low environmental impact: Geothermal energy has a minimal environmental footprint and low emissions, making it one of the most environmentally friendly energy sources.
- Stability: The constant availability of geothermal energy ensures a stable energy supply and contributes to grid reliability and security.
Equans Case Study:
Princeton University's custom-built modular geothermal power plant is an innovative advance in harnessing natural geothermal power to provide heating and cooling for its 16,000 employees and students, while reducing energy consumption to meet the university's ambitious ESG goals.
Green Hydrogen: A Versatile Energy Vector
Green hydrogen, produced by electrolysis of water using renewable energy sources, has the potential to decarbonise sectors where direct electrification is difficult, such as heavy industry and transport. The hydrogen market is expected to grow at a compound annual growth rate of 10.2% as governments offer more incentives, the cost of renewables and electrolysers falls, and investors and developers drive projects forward.
Key Benefits:
- Decarbonisation of hard-to-abate sectors: Green hydrogen offers a viable way to reduce carbon emissions in sectors such as steel manufacturing, chemical production and long-distance transport, including shipping and aviation.
- Energy storage and grid balancing: As an energy carrier, green hydrogen can be stored for long periods of time, providing a solution to the intermittency of renewable energy sources. This ability to store power for later use makes it an excellent tool for balancing the grid and ensuring the reliability of renewable energy systems.
- Cross-sector flexibility: Green hydrogen can be used in different sectors, not only as a fuel but also as a raw material in industrial processes, demonstrating its versatility and potential for wide application.
- Increased sovereign security: By reducing dependence on imported fossil fuels, green hydrogen contributes to sovereign security by diversifying energy sources and reducing vulnerability to geopolitical uncertainties and market volatility.
Equans case studies:
Equans' subsidiary Eras used hydrogen co-produced in an electrolysis workshop to replace fossil natural gas in steam boilers for Vencorex France. This transition significantly reduced carbon emissions and improved sustainability in the chemical industry. Eras implemented advanced hydrogen compression and purification technologies, strategic hydrogen pipeline routing, and leveraged government subsidies to promote low-carbon energy solutions.
Equans' HyVision mobile hydrogen generators demonstrate hydrogen's ability to reduce the carbon footprint and noise pollution at construction sites and remote locations. By replacing diesel generators, these mobile units not only provide environmental benefits, but also serve as a model for the use of hydrogen in low emission zones, demonstrating hydrogen's potential to revolutionise power generation with cleaner, quieter and more efficient alternatives.
Conclusion: The Bright but Urgent Future of Green Energy
The benefits of green energy for businesses, cities and regions go far beyond environmental protection, touching on economic, social and health aspects of urban life. By harnessing the full potential of green technologies, industries, cities and regions can play a leading role in the transition to a more sustainable and equitable world. These holistic solutions not only address the immediate challenges of climate change and urbanisation, but also lay the foundations for a fair, clean and resilient future for generations to come.