Future Considerations
Social Acceptance
There are a number of features of renewable energy innovation that bring new aspects to the debate on social acceptance. For one, renewable energy plants tend to be smaller-scale than conventional power plants, increasing the number of siting decisions that need to be taken. In some cases, such as micro-generation in residential buildings, the siting decision becomes in effect an individual investment decision. Secondly, as renewable energy conversion tends to be characterized by lower energy densities, the relative visual impact (per MWh of output) tends to be higher. This is partly reinforced by the fact that resource extraction in the case of fossil or nuclear energy happens below the earth's surface and is thus invisible for everyday life of a citizen, while wind turbines and other renewable plants harness energy in a more visible way. It also means that renewable energy conversion tends to happen closer to where the energy consumer lives (the “backyard”), thereby increasing its visibility and bringing the environmental impact closer to their residence. Hence, the “not in my backyard” argument has been the cause of delay for some projects such as the Cape Wind project in the United States due to aesthetic concerns. Thirdly, given the ubiquitous presence of externalities in the energy sector, most renewable energy technologies do not compete with incumbent technologies on a level playing field, thereby making acceptance of them a choice between short-term costs and long-term benefits. Therefore, the adoption of renewable energy is likely to have issues concerning its social acceptance.
Legal/Political
It has been noted by many academics that the success of adoption of renewable energy is largely dependent on political factors, as exemplified by our extensive case studies. In order for the economic and related implications to be sustainable in the long run, certain law reforms will have to be made in order to regulate the development of renewable energy. In addition, the political stance and national policies will also have a large influence on the sustainability - such as in the contrasting example of China and Germany and the issue of the feed in tariffs. Hence, it has been concluded that strong, stable, transparent and credible national policy is the single most significant driver of private sector investment in renewable energy and the related creation of jobs. This is especially pertinent in the case of developing countries, where the development and adoption of renewable energy will be extremely beneficial in terms of economic development and progress.
Cost
The costs of renewable energy in general may be a cause for concern in the future. Although the costs are relatively cheaper than fossil fuels, it is noted that a significant obstacle is the costs associated with the initial outlay of infrastructure needed to harness various sources of renewable energy such as wind turbines, solar panels etc. However, this can be overcome by strong government policies and government subsidies in the beginning. It is likely that renewable energy will get progressively cheaper through technological change and through mass production and market competition in the future Hence, renewable energy costs will be likely to continue to drop though it may arguably take a considerable amount of time, depending on the success of widespread adoption of the renewable energy in the first place.
Greater Security and Access
Energy efficiency and accelerated deployment of low-carbon technologies can help
to reduce energy import dependency which translates into greater energy security. Renewable energy resources and significant potentials for energy efficiency exist virtually everywhere, in contrast to other energy sources, which are concentrated in a limited number of countries. Reduced energy intensity, as well as geographical and
technological diversification of energy sources, would result in far-reaching energy security
and economic benefits.
This can be especially significant for developing countries and rural communities, especially communities that are off-grid or without access to electricity. Other than greater and more widespread access to energy in general which has further ramifications, this also means that developing countries and rural communities can be self-sufficient. Greater energy security will also be observed across the globe and there will likely to be a reduction in vulnerability to events such as political instability of energy producing countries, competition over energy sources -- problems brought about by the uneven distribution of fossil fuel supplies among countries.