Three Important Re Facts That You Need To Know

Even as negotiators from the developed and developing nations haggle to wrap up a global agreement to curb climate change at the crucial Paris summit, here’s a look at three important facts about renewable energy projects and resources that you need to be aware of:

It’s a lot cheaper than you think:

Without subsidies and without factoring in negative externalities of fossil fuels, renewable resources are already cheaper than traditional generation in many places. For example, wind energy has been consistently priced at approx 5 cents USD per KWH or lower in the best locations.

In 2013, power purchase agreements in the central US were found to average about 2.1 cents USD per KWH. This included approx 10 years of 2.3 cents per KWH tax credits from the PTC. Other countries like Brazil have also managed to be steady at approx 5 cents USD per KWH LCOE for three years at an average at its auctions.

In Europe, offshore wind is priced at about 10 cents per KWH at an average, and sometimes lower at 8 cents, based on up to 77% capacity on its biggest wind farms, which are known to average at over 50% consistently.

Grid integration is not as tough as it looks:

Denmark received 34% of its total generation from wind last year and is known to touch cent percent on windy days. Germany, Europe’s largest economy is also known to regularly generate 100% of its energy needs from the wind and solar sectors.

In 2014, Spain generated its maximum energy from the wind energy sector. Texas (USA), frequently caters to more than 25% of its energy demand from wind alone. Countries and states like the above have experienced a gradual improvement in grid reliability by leveraging renewable energy sources.

It doesn’t need massive storage immediately:

Wind and solar energy projects are already generating a larger percentage of the world's energy every year, and reducing the dependence on traditional fossil fuel-based energy generators in the process.

Wind and solar clearly have the capability to provide for most of the world’s energy needs in a clean and sustainable manner. By incorporating the relevant storage technologies, they can also be utilized to provide cheaper energy during peak demand hours, thereby enhancing grid reliability and improving overall economic productivity.

Solar power generation and energy storage can contribute to India’s long term energy security and help achieve its climate change objectives.