Introduction to Renewable Energy |
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Fast Facts AboutRenewable Energy Principle Energy Uses: Electricity, HeatForms of Energy: Kinetic, Thermal, Radiant, Chemical The term “renewable” encompasses a wide diversity of energy resources with varying economics, technologies, end uses, scales, environmental impacts, availability, and depletability. For example, fully “renewable” resources are not depleted by human use, whereas “semi-renewable” resources must be properly managed to ensure long-term availability. The most renewable type of energy is energy efficiency, which reduces overall consumption while providing the same energy service. Most renewable energy resources have significantly lower environmental and climate impacts than their fossil fuel counterparts. The data in these Fast Facts do not reflect two important renewable energy resources: traditional biomass, which is widespread but difficult to measure; and energy efficiency, a critical strategy for reducing energy consumption while maintaining the same energy services and quality of life. See the Biomass and Energy Efficiency pages to learn more. SignificanceEnergy Mix14% of world 🌎9% of US 🇺🇸 Electricity Generation30% of world 🌎21% of US 🇺🇸 Global Renewable Energy UsesElectricity 65%Heat 26%Transportation 9% Global Consumption of Renewable Electricity ChangeIncrease:⬆ 33%(2017 to 2022) Energy EfficiencyEnergy efficiency measures such as LED light bulbs reduce the need for energy in the first place Renewable ResourcesWindSolarOcean Semi-Renewable ResourcesHydroGeothermalBiomass Renewable Energy Has Vast Potential to Meet Global Energy DemandSolar >1,000x global demandWind ~3x global demand WorldShare of Global Energy Demand Met by Renewable ResourcesHydropower 7%Wind 3%Solar 2%Biomass 99%South Dakota 84%Washington 76%Idaho 75%of state’s total generation comes from renewable fuels Renewable Energy Expansion PoliciesThe Inflation Reduction Act continued tax credits for new renewable energy projects in the US. Production Tax Credit (PTC)Tax credit of $0.0275/kWh of electricity produced at qualifying renewable power generation sites Investment Tax Credit (ITC)Tax credit of 30% of the cost of a new qualifying renewable power generation site To read more about the credit qualifications, visit this EPA site. LCOE of US Resources, 2023: Renewable ResourcesResource (Renewables)Unsubsidized LCOE*LCOE with ITC/PTC Tax SubsidyWind (Onshore)$24 - $75$0 - $66 (PTC)Solar PV (Utility Scale)$24 - $96$16 - $80 (ITC) $0 - $77 (PTC) Solar + Storage (Utility Scale)$46 - $102$31 - $88 (ITC)Geothermal$61 - $102$37 - $87Wind (Offshore)$72 - $140$56 - $114 (PTC)Solar PV (Rooftop Residential)$177 - $282$74 - $229 (ITC)Wind + Storage (Onshore)$24 - $75$0 - $66 (PTC)LCOE of US Resources, 2023: Non-Renewable Resources.(The ITC/PTC program does not provide subsidies for non-renewable resources. Fossil fuel and nuclear resources have significant subsidies from other policies.)Resource (Non-Renewables)Unsubsidized LCOE*Natural Gas (combined cycle)$39 - $101Natural Gas Peaker Plants$115 - $221Coal$68 - $166Nuclear$141 - $221*LCOE (levelized cost of electricity) - price for which a unit of electricity must be sold for system to break even Important Factors for Renewable Site SelectionResource availabilityEnvironmental constraints and sensitivities, including cultural and archeological sitesTransmission infrastructurePower plant retirementsTransmission congestion and pricesElectricity marketsLoad growth driven by population and industryPolicy supportLand rights and permittingDriversCompetitive and declining costs of wind, solar, and energy storageLower environmental and climate impacts (social costs) than fossil fuelsExpansion of competitive wholesale electricity marketsGovernmental clean energy and climate targets and policiesCorporate clean energy targets and procurement of renewable energyNo fuel cost or fuel price volatilityRetirements of old and/or expensive coal and nuclear power plantsMost renewable resources are abundant, undepletableBarriersPermitting hurdles and NIMBY/BANANA* concernsCompetition from subsidized fossil fuels and a lack of price for their social cost (e.g., price on carbon)Site-specific resources means greater need to transport energy/electricity to demandHigh initial capital expenditure requirements required to access fuel cost/operating savingsIntermittent resourcesInconsistent governmental incentives and subsidiesManaging environmental impacts to the extent that they exist*NIMBY - not in my backyard; BANANA - build absolutely nothing anywhere near anything Climate Impact: Low to High Solar, wind, geothermal, and ocean have low climate impacts with near-zero emissions; hydro and biomass can have medium to high climate impactHydro: Some locations have greenhouse gas emissions due to decomposing flooded vegetationBiomass: Some crops require significant energy inputs, land use change can release carbon dioxide and methaneEnvironmental Impact: Low to High Most renewable energy resources have low environmental impacts, particularly relative to fossil fuels; some, like biomass, can have more significant impactsNo air pollution with the exception of biomass from certain feedstocksCan have land and habitat disruption for biomass production, solar, and hydroPotential wildlife impacts from wind turbines (birds and bats)Modest environmental impacts during manufacturing, transportation, and end of lifeSourcesPrintable PDF, 270 KBUpdated January 2024 |
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