Renewable energies are energies that come from naturally occurring and theoretically inexhaustible sources of energy which are continually replenished and currently provide less than 14%s hope for renewables to get higher share in energy mix during next decades but in other side we face severe challenges and doubts regarding the possibility of ‘sustainable supply’ of energy by renewable sources.
Renewable energies technologies are fastest growing in the world but still not matured, costly and complicated to be developed.
Environmental doubts come to minds when we expect renewable energies to resolve environmental concerns while they do not eliminate greenhouse gas emissions and conventional air pollution, as their manufacturing, transporting and operation produce emissions, consume water, disrupt land use and wildlife habitat.
An increase in oil prices had positive impact on the return of most of renewable energy projects nevertheless renewable energy sector is still substantially riskier and dependent on oil price fluctuations. As a result, low oil price and continual development of shale gas can speedily turn renewable industry into a quite difficult financial position and even bankruptcy for private investors.
Financial worries stay on when we observe for the first time in several years, 2012 saw a decline for global investment in renewable energy because of economic crisis as well as uncertainty over support policies in Europe and the US.
Renewables still are quite relying on governmental subsidies to survive. The past progress of renewable projects shows high dependency on government and private support in form of giving subsidies or exemption from tax put on other energy sources (such as carbon tax).
So here a valid question is: In case shale gas proves to be plentiful, accessible and cheap, wouldn't it be sensible to put much more money on Carbon Capture and Storage (CCS) as well as energy efficiency projects rather than renewable project; whereas the outcome would decrease the investment risks and also to meet environmental obligations of some western countries?
This article seeks to help energy policy makers in governmental agencies or private, set forth for effective and practical approach in securing energy supply as well as preserving the environment by mobilizing their aid from low influential renewable energies toward higher yielding hydrocarbon technologies that change the global energy portfolio into cleaner and environment friendly supply in less time and lower cost.
We evaluate the different risks, limiting factors and concerns which are currently inherent in development of renewables and discuss possible solutions, such as more investment in CCS and energy efficiency projects (in which OPEC and other producing countries could also participate to create a new energy dialogue with consuming countries), to minimize the level of risk associated with our future energy supply and toward a sustainable management of energy market.