Power Engineering - Renewable energy technologies resurface as viable alternatives to fossil fuels

March 15, 2004 -- After a listless performance over the past two decades, renewable energy is back in the limelight. The need to lessen dependence on fossil fuels, plummeting capital costs and the suitability of many renewable energy technologies to distributed generation is underlining their growing appeal.

As renewables attempt to break the traditional hegemony of fossil fuels, cost and energy efficiency loom as the two most critical challenges. However, support from the public and private sectors is helping renewable energy sources steadily gain market share.

With multinational oil companies seeking to diversify their energy base, renewable energy sources are being seen as a complement rather than a competitor to the traditional revenue generating bases in oil and gas. For instance, companies such as BP and Royal Dutch/Shell are actively promoting solar, hydrogen and wind energy technologies.

Despite recent technological advances, many companies lack the experience to be cost competitive on a commercial basis. Therefore, even as market participants increasingly incorporate renewables in their energy base, government support is being seen as critical to sustaining growth momentum.

On their part, governments are offering various incentives to encourage a more prominent role for renewables in the energy sector. For instance, the Japanese Government has subsidised solar power.

Enterprises harnessing wind energy in Northern Ireland, Germany and the United States have been the beneficiaries of significant government support. Financial assistance has, moreover, caused the capital costs of many renewable energy technologies to fall dramatically - a trend forecast to continue.

Along with research subsidies and financial aid to consumers and programmes that have renewables as a critical component, government legislation has also been key to advancing renewable energy technology. Pro-renewables policy initiatives have attempted to reverse the traditional bias towards fossil fuel-based systems and ensure a more equitable competitive environment.

"While government subsidies are helping renewables gain a toehold in the energy market, the real breakthrough is likely to come when renewables can compete head on with fossil fuels without government handouts," observes a new study by Technical Insights (http://www.ti.frost.com), a business unit of Frost & Sullivan business. "The focus of most research is to develop a low-cost, high-efficiency technology that can be applied widely," the study adds.

Europe is already the global leader in renewable energy. As part of the Kyoto Protocol efforts to curb carbon emissions, the European Commission has pledged to boost its use of renewable sources. From 14 per cent in 1997, renewables are expected to account for 22 per cent of Europe's energy supply by the end of this decade.

Nearly 15 per cent of Denmark's electricity needs are met by its 2,300 wind turbines. Germany is in the midst of installing over 140,000 solar-paneled rooftops by 2005. More than half of Scandinavia's energy derives from hydropower.

Apart from Denmark, Germany, Finland, Iceland, Sweden and Norway, Austria, Portugal, Switzerland and Turkey are major users of renewables. According to the International Energy Agency (IEA) report of 2002, the share of renewables over the 1990-2000 period has also grown tremendously in eastern Europe - 18 percent in the Czech Republic, 10.3 percent in Poland and 6.4 per cent in the Slovak Republic.

The current popularity of distributed generation is motivating interest in the potential of renewables. "Recent power blackouts in Italy, Denmark and the United States as well as increasing demands on national centralised generation and transmission infrastructure demonstrate that distributed generation will become progressively important," notes the report.

As most renewable energy technologies can be locally generated and used, they are extremely suitable for distributed generation. Renewable sources are projected to occupy an increasingly important position as fuel cells using hydrogen or other fuels become more cost effective.

At present, progress is being made across a range of renewable technologies. Solar and wind energy technologies as well as geothermal and wave power technologies are making rapid strides.

Silicon and semiconductor technology, nanotechnology and materials research are underpinning the development of sophisticated, high-efficiency solar cells at more affordable prices. Improvements in turbine, blade technology and siting developing technologies that work on land or offshore are driving advances in wind energy technology.

Satellite data are being used to determine the optimal location to site renewable energy plants. Satellite information has proven crucial in identifying large heat sources for geothermal power production. A project sponsored by the European Space Agency (ESA) is now intending to use satellite data to help wind, solar and hydropower energy industries optimise their location and functioning.

The greatest buzz surrounds hydrogen energy technology. As improved production methods are discovered, it is increasingly being postioned as an alternative fuel.

"Hydrogen, considered by many to be the key to weaning us off oil, has advanced as researchers have discovered better ways to produce energy from this source. In addition, hydrogen power's future is closely tied to that of solar and wind as we try to find more energy-efficient ways to produce hydrogen," notes the Technical Insights research service. "Without progress in renewable technologies, the hydrogen economy is not likely to happen."

Technical Insights (http://www.ti.frost.com), a business unit of Frost & Sullivan, is an international technology information analysis business that produces a variety of technical news alerts, newsletters, and research services.

Frost & Sullivan, an international growth consultancy, has been supporting clients' expansion for more than four decades. Our market expertise covers a broad spectrum of industries, while our portfolio of advisory competencies includes custom strategic consulting, market intelligence, and management training.

Our mission is to forge partnerships with our clients' management teams to deliver market insights and to create value and drive growth through innovative approaches. Frost & Sullivan's network of consultants, industry experts, corporate trainers and support staff spans the globe with offices in every major country.

Kristina Menzefricke
P: +44 (0) 20 7343 8376
F: +44 (0) 20 7730 3343
E: kristina.menzefricke@frost.com

Add RSS Feed