Renewable Energy and the Climate Challenge
Renewable energy is increasingly reliable and cost competitive with conventional generation sources, and new technological and market advances are helping to overcome variable generation pattern. Hence, many investors and corporates regard renewables as a profitable investment opportunity. And with growing global energy demand, building and operating renewable projects is a prosperous and sustainable business model for developers, IPPs and many utilities alike.
REscale – Scaling up renewables
Through the REscale LCTPi, a group of leading energy and technology companies are working together on solutions to accelerate the deployment of renewables and the transition to a low-carbon electricity system. The ambition is to scale renewable deployment in line with the IEA 2°C Scenario – this equates to an additional 1.5 TW of deployment by 2025. The main challenges identified are access to new finance instruments, ensuring bankability of projects, improving integration of growing levels of renewables into electricity markets as well as delivering clean, affordable energy for billions of people that currently lack access. REscale is comprised of four action plans:
- Facilitating the significant scaling up of new mechanisms in renewable finance through a commitment to robust verification and transparency as well as de-risking of project pipelines;
- Working with corporate renewable energy buyers to scale renewable energy procurement via Power Purchasing Agreements (PPAs) and increase direct demand for renewable energy;
- Promoting sustainable electrification of remote areas via accelerated deployment of low carbon microgrids;
- Facilitating efficient, reliable and commercially viable integration of renewable energy into electricity markets.
We are working with a number of partners to deliver these action plans – technology providers, lenders, institutional investors, ratings agencies, accountants, legal advisors, etc. Effective communication with governments to support suitable regulatory and market structures is key to all action areas.