Thank you for Subscribing to Energy Business Review Weekly Brief
Different Challenges Faced By Renewable Energy
Energy Business Review | Tuesday, November 22, 2022
Renewable energy has undertaken global adoption to alleviate climate change.
Fremont, CA: Many challenges the renewable energy industry faces. Political pressures, government policies, corporate impact, age-old infrastructure, absence of proper battery storage system, and current market scenario stand in the way of wider adoption worldwide.
Stay ahead of the industry with exclusive feature stories on the top companies, expert insights and the latest news delivered straight to your inbox. Subscribe today.
Despite these factors, renewable energy has undertaken global adoption to alleviate climate change. It is free from direct pollution and carbon discharge. It is a possible substitute for fossil fuels. With time it is turning into an inevitable part of the energy generation mix.
The high initial cost of installation.:Carbon emissions are the main reason for global warming. Therefore, many efforts have been made to increase its adoption. Still, the cost is a major factor affecting its adoption. One of the awkward blocks on the way to its progress is the high initial cost of installation.
Of all the energy sources, solar and wind are the cheapest ones.
Still, there is a big dissimilarity in the upfront installation cost of a solar power method and a gas-fired plant. Certainly, the wide margin in installation costs is subject. This high upfront installation expense makes investors and lenders consider renewables a high risk, whereas they uncover fossil fuel plants more satisfactory because of their low installation costs.
Lack of infrastructure:Wind and solar energy can be a good investment when lifespan costs are reasoned. However, the lack of infrastructure is an obstacle to renewable energy development. The current infrastructure is primarily built for fossil fuel plants and nuclear plants.
The present energy infrastructure requires urgent reform as it cannot handle large amounts of renewable energy. Above all, some of its best sources are gone with no infrastructure.
The main issue with the power grid is its age. Most electric transmission and distribution lines were built during the 1950s and 1960s. As a result, it has spent its 50-year life expectancy. Hence, making them incompetent to encounter the demand of the hour and the severe climatic transformations.
It is much of a dispute to decide on the size of the solar system. If the system is too small, energy generation will be hard to build. Conversely, if the solar energy system is too big, it requires a big energy storage system. Without a high-capacity storage system, the energy generated will go to waste.
Power Storage:Mainly the lack of power storage at a reasonable cost is another obstacle. Renewable energy sources produce most of their energy at specific times of the day. Its electricity production does not match the peak demand hours. The alternation of sunshine and wind cannot offer a demanded power source 24 hours a week. Solar energy and wind are uncertain.
Generation and volatility are volatile in loads.:Energy production by the burning of fossil fuels is more steady. However, intermittent power generation by renewable energy sources requires an efficient battery storage system. A battery storage system aids in storing the excess energy for later use.
It can support grid instability, thus preventing blackouts. Technological progress has enhanced the lifetime and battery capacity of the storage system. However, its high cost stands in the way of being wide installation. Battery prices have to drop to make storing solar energy more cost-effective.
Non-renewable energy monopoly:The Lion's share of the present energy market is under non-renewable energy sources. Undoubtedly, this acts as another obstacle. Solar, wind, and other renewable energy sources have to rival the well-established fossil fuel industry. Although the government is offering rebates and other help for solar energy, the fossil fuel industry has huge support from the government.
The Fossil fuel industry obstructs the adoption of clean energy by weakening climate change. Renewable energy sources are the best path to deal the climate variation. Fossil fuels have been the share of human life for a long period. Afterward, It has its roots deep in the economy of the country.
Deficiency of knowledge and awareness:Insufficient knowledge and awareness of renewable energy technology make people hesitant to use it. Fossil fuel plants are generally in populated areas. It is a source of business for the local population as it requires a lot of people to run. In addition, the huge property tax from fossil fuel plants will support the local community.
Lack of policies, subsidies, etc:The shortage of policies, subsidies, incentives, and regulations that favor renewable energy technologies hinders its wide acceptance. The renewable energy market requires clear policies and legal procedures to attract investors.
Simply put, The government has to introduce and execute support policies to enhance the renewable energy market.
Corporate lobbying, political pressure, and inherent reliance on fossil fuels remain challenges in shifting from the age-old fossil fuel industry to the renewable energy industry.
The dangers of climate change have begun affecting human lives greatly. Mainly, the adoption of renewable energy is the only way out. With different government incentives and subsidies, renewable energy costs have dropped dramatically. There is not much variance between them and fossil fuels price per kWh. Undoubtedly, this has helped it occupy a place in the energy market.
More in News
The oil and gas sector, a fundamental component of the global economy, is facing significant technological, environmental, and financial challenges. As the push for sustainability and decarbonization becomes increasingly prevalent, companies need to provide innovative solutions that satisfy global energy needs while maintaining competitiveness in the industry.
The oil and gas sector faces a great challenge in promoting environmental sustainability because of its significant contribution to climate change, especially greenhouse gas emissions. The industry is urged to adopt cleaner technologies and shift energy production and consumption to reduce its carbon footprint. This includes investing in renewable energy, carbon capture and storage (CCS), and reducing emissions from extraction, transportation, and processing. The sector still faces a significant challenge in balancing energy production with environmental impact.
The oil and gas industry is fast-paced, constantly developing new tools and techniques that improve efficiency, safety, and productivity. However, these rapid changes often bring new complications and risks. Introducing automation, artificial intelligence, and digital twins to current infrastructure is daunting. Moreover, cybersecurity issues pose a threat to safeguarding sensitive data while keeping critical infrastructure intact. Therefore, it requires long-term investment and vigilance.
The oil and gas sector is highly challenged by fluctuating oil prices, which are influenced by geopolitical tensions, changes in global demand, and natural disasters. Companies must diversify their portfolios, invest in resilient infrastructure, and develop agile business models to adapt to this unpredictability. Such uncertainty requires financial and operational flexibility for survival and growth in the industry.
The industry needs more labor in the current scenario due to the ever-increasing requirement for skilled workers who will manage advanced systems and technologies. Therefore, training programs for attracting and retaining talent in the industry have to be developed along with collaboration with educational institutions so that an adequately prepared workforce is provided for the future.
Regulatory and political factors characterize much of the oil and gas services sector. Governments worldwide are starting to enforce stiffer environmental regulations, mainly carbon pricing and emissions cutbacks, compelling corporations to amend their plans and procedures. Political unrest in many regions also hampers investment and continuous operations. Balancing strict regulations with profit is a tightrope for most oil and gas service businesses.
This oil and gas service industry stands at a critical juncture. The sector encounters many grand challenges, such as environmental concerns, technological integration, market volatility, workforce shortages, and regulatory hurdles, which present opportunities for innovation, collaboration, and long-term growth. As the world transitions towards a more sustainable energy future, the oil and gas services sector must adapt and change to remain indispensable in the global energy picture.
...Read more
Fremont, CA: Energy consulting firms provide specialized guidance to help companies navigate the complexities of environmental laws and regulations. While their main objective is to enhance energy efficiency and lower costs, they also play a crucial role in helping businesses meet environmental compliance standards. With their in-depth knowledge of various regulatory frameworks, energy consultants help organizations develop strategies that align with these regulations and minimize their ecological impact.
Energy consultants play a crucial role in helping businesses achieve environmental compliance by offering comprehensive services. Key areas of support include regulatory analysis, where consultants keep businesses informed of the latest environmental regulations, assess potential areas of non-compliance, and develop corrective strategies. They also conduct Environmental Impact Assessments (EIAs) for new projects or expansions, ensuring potential environmental effects are identified and mitigated. Businesses can reduce their energy consumption and carbon footprint with energy audits, another critical service.
Consultants assist in calculating and reducing carbon emissions by implementing energy-efficient technologies and purchasing renewable energy credits. They are also instrumental in preparing sustainability reports, which accurately reflect a company's environmental practices and progress toward sustainability goals. Furthermore, energy consultants provide compliance training to ensure employees are well-versed in environmental regulations and best practices.
Working with an energy consultant offers numerous benefits, including expert guidance on navigating complex environmental regulations and identifying energy-saving opportunities that can lead to significant cost savings. Moreover, energy consultants help mitigate risks associated with non-compliance, thereby avoiding costly fines and penalties. A commitment to environmental sustainability, supported by an energy consultant, can also enhance a business’s reputation, attract environmentally conscious customers, and provide a competitive edge in the marketplace.
Selecting the right energy consultant requires careful consideration of several vital factors. Experience is paramount; a consultant with a proven track record in energy efficiency and environmental compliance is essential. Their expertise in energy audits, renewable energy, and regulatory compliance should also be thoroughly evaluated. Equally important is the consultant's approach, which should be collaborative and results-driven, allowing them to work closely with the client's team to develop tailored solutions. Obtaining references from previous clients is crucial to assess the consultant's capabilities and performance history.
As environmental regulations evolve, businesses must proactively ensure compliance and safeguard their reputation. Energy consultants play a crucial role in guiding organizations through the complexities of environmental law and supporting their sustainability objectives. By leveraging the expertise of these consultants, businesses can fulfill their regulatory obligations and contribute to a more sustainable future.
...Read more
Breakthroughs in natural gas storage technologies are transforming the landscape of energy storage and distribution. New developments in underground, compressed, liquefied, and adsorption storage methods enhance both efficiency and sustainability in the natural gas sector.
Underground natural gas storage remains the most widely used method for storing natural gas, involving gas injection into porous rock formations, salt caverns, or depleted oil and gas reservoirs. Although this method has been used for a long time, innovations have significantly improved its efficiency and safety.
Integrating advanced monitoring systems allows for real-time data collection, helping detect potential leaks and optimize storage processes. Enhanced geological modeling and simulation techniques have also increased storage efficiency by improving the understanding of rock formations and gas flow, maximizing storage capacity, and extending the life of underground storage systems.
Compressed natural gas involves storing natural gas at high pressures within specially designed containers. Recent breakthroughs in this field focus on the materials used to construct these storage tanks. Using lightweight, high-strength composite materials such as carbon fiber and fiberglass-reinforced composites has significantly improved storage capacity while reducing the weight of tanks.
These innovations make CNG storage systems more efficient and cost-effective. Advances in pipeline technology and compression systems are enhancing the distribution of compressed natural gas, allowing for more efficient and widespread delivery to residential, commercial, and industrial users.
Liquefied natural gas (LNG) storage involves cooling natural gas to very low temperatures to convert it into a liquid form, reducing its volume significantly. Innovations in LNG storage include improved cryogenic tank designs and materials that enhance the thermal efficiency of storage systems. Vacuum-insulated and double-walled tanks reduce heat transfer and minimize gas loss during storage.
Floating LNG platforms have also emerged, allowing for offshore liquefaction, storage, and transportation of LNG, which reduces reliance on costly onshore infrastructure. In addition, small-scale LNG storage solutions are gaining popularity, offering cost-effective and flexible options for areas without access to large pipeline networks.
Absorption storage is a newer method that utilizes porous materials, such as activated carbon or metal-organic frameworks (MOFs), to store natural gas at lower pressures and temperatures. MOFs have demonstrated significant potential due to their ability to store substantial amounts of gas compactly. Using these high-capacity adsorbents could lead to more efficient and cost-effective storage systems.
...Read more
Fremont, CA: The Engineering Procurement and Construction (EPC) processes play a vital role in executing large-scale infrastructure and industrial projects, such as power plants, refineries, transportation systems, and water treatment facilities. Advanced software solutions like Building Information Modeling (BIM), enable stakeholders to create detailed 3D models that enhance planning, design refinement, and conflict resolution. Recently, several significant trends have surfaced in the EPC sector.
Cloud-based project management platforms streamline communication among project teams, suppliers, and contractors, leading to improved coordination and faster decision-making. With climate change becoming a pressing concern, EPC projects now incorporate eco-friendly practices and renewable energy solutions. From integrating solar panels and wind turbines into infrastructure designs to implementing green building techniques and utilizing recycled materials, sustainability is increasingly becoming a core consideration in EPC projects.
Supply chain resilience has arisen as a critical trend in EPC. Many companies are now prioritizing local sourcing, establishing strategic partnerships with reliable vendors, and leveraging digital tools. The adoption of modular construction techniques allows for more significant prefabrication of components, reducing dependency on distant suppliers and mitigating supply chain disruptions. There is a growing trend towards integrated project delivery (IPD) and alternative contracting models. Predictive analytics help optimize resource allocation, improve project forecasting, and enhance project outcomes.
IPD encourages early collaboration among project stakeholders, including owners, architects, engineers, and contractors, fostering a more cohesive and transparent project delivery process. Alternative contracting models such as design-build and public-private partnerships (PPPs) offer greater flexibility, efficiency, and cost certainty than traditional procurement methods. The approaches incentivize innovation, shared risk, and value-driven outcomes, driving higher performance and client satisfaction. The EPC sector is witnessing increased adoption of modularization and offsite construction techniques. Modularization involves fabricating components or modules offsite in controlled factory environments before transporting them to the project site for assembly.
The approach offers numerous benefits, including accelerated project schedules, reduced labor costs, improved quality control, and enhanced safety. Offsite construction minimizes disruptions to local communities and reduces environmental impacts associated with traditional construction methods, making it an attractive option for complex and time-sensitive projects. The digital transformation of EPC projects has led to a greater emphasis on data analytics and predictive maintenance. By harnessing the power of big data, artificial intelligence, and machine learning, EPC firms can optimize asset performance, predict equipment failures, and schedule maintenance activities more effectively.
...Read more
