Renewable Energy and the Road to Net Zero Emissions

Energy is one of the major inputs to the economic development of any nation. It is essential for performing daily human activities and ensuring continued business operations. Currently, a major portion of the energy comes from nonrenewable energy sources such as petroleum and natural gas.

The finite nature of nonrenewable energy sources has made it essential to shift to renewable energy. This blog post explores the basics of renewable energy, covering its sources and benefits. It also sheds light on the key renewable energy market metrics and the key factors shaping the market landscape. Stick with us!

What Is Renewable Energy?

Renewable energy is energy generated from natural sources. These natural energy sources are replenished at a faster rate than they are consumed. Common examples of renewable energy sources that are constantly being replenished include wind and sunlight. The sources of renewable energy are abundant and all around us.

What Are Renewable Energy Sources?

Below, we’ve explained to you a few common sources of renewable energy:

Solar Energy

Solar energy is one of the most abundant sources of energy. It’s worth noting that the rate at which our planet intercepts solar energy is thousands of times greater than that consumed by humankind. The conversion of solar energy into electrical energy takes place in one of two ways: concentrating solar-thermal power (CSP) and solar photovoltaics (PV).

PV is a commonly used conversion method for smaller-scale applications. It involves the use of solar cells on solar panels to collect sunlight. The collected sunlight is converted into solar energy and then stored in batteries for use.

CSP involves the use of specialized mirrors. These mirrors are responsible for reflecting and gathering sunlight into fluid-filled reservoirs. The sunlight increases the temperature of the fluid and generates thermal energy. The energy is then directed to spin turbines or power engines, which generate electricity.

Wind

Wind energy harnesses the kinetic power of moving air. It does so by using large wind turbines. The turbines may be located in sea- or freshwater (offshore wind energy) or on land (onshore wind energy). Humans have been harnessing wind energy for millennia. However, wind energy technologies have advanced significantly in recent years to maximize electricity generation.

There is substantial variation in average wind speeds across locations. However, the planet’s technical potential for wind energy far exceeds the global electricity produced. Additionally, most regions globally provide ample opportunities for the deployment of wind energy.

Geothermal Energy

Geothermal energy makes use of the accessible thermal energy from the interior of the Earth. The extraction of heat from geothermal reservoirs is typically done using wells. Sometimes, other means of heat extraction may be used.

In the context of geothermal energy, reservoirs that are naturally sufficiently hot are referred to as hydrothermal reservoirs. Reservoirs that need hydraulic stimulation for improvement are known as geothermal systems.

Once the fluids of varying temperatures are drawn to the surface, they are used for generating electricity. The technology for producing electricity from hydrothermal reservoirs is reliable and has been in operation for more than a century.

Bioenergy

Bioenergy is produced from various organic materials, called biomass. These bioenergy sources can take the form of dung, charcoal, wood, and other manures. Biomass is typically used in rural areas for lighting, cooking, and heating spaces. Its use is common among low-income populations in developing economies.

Modern biomass systems have evolved to include dedicated trees or crops and residues from forestry and agriculture. Energy generation using biomass contributes to greenhouse gas emissions. However, the rate is much lower compared to burning fossil fuels such as coal or gas.

What’s Fueling the Adoption of Renewable Energy?

Our latest market research assessment reveals that the renewable energy market is expected to witness robust growth. The market was valued at USD 1,498.05 billion in 2024. It is expected to register a CAGR of 14.6% between 2025 and 2034.

The implementation of favorable government policies and incentives by governments globally to promote the development and adoption of clean energy is fueling market expansion. The reduced costs of renewable energy technologies are also contributing to the market development.

What Are the Benefits of Renewable Energy?

There are several benefits associated with shifting to renewable energy sources. Some of them include:

Energy Security: The incorporation of sustainable energy grids into power grids helps improve their resilience. Renewable energy sources are less prone to fluctuation and failure. Also, grids can switch between them in case of any issue. This helps ensure consistent power delivery for residential and commercial uses.

Lower Energy Costs: Switching to renewable energy helps reduce energy costs and maintain consistent energy prices. Renewable energy sources are typically cheaper than fossil fuels. Additionally, the lower volatility in clean energy markets means price fluctuations don’t take place that often. This helps keep costs stable and makes budgeting and forecasting easier.

Job Creation: The shift towards clean energy and increased efforts by governments and global organizations are expected to create millions of renewable energy-related jobs globally. Additionally, it offers an opportunity for workers from the fossil fuel industry to transition to the renewable energy sector.

How Is AI Transforming Renewable Energy?

The real-time grid management enabled by AI helps with the precise balancing of supply and demand. Smart grids powered by AI enhance reliability and reduce energy losses during peak energy demand. Furthermore, AI tools can predict the generation of wind and solar energy by analyzing real-time meteorological inputs. This helps reduce reliance on fossil fuel backups and minimizes energy waste.

To Conclude

The rising focus on reducing greenhouse gas emissions and combating climate change has led to a shift towards renewable energy. The renewable energy market has an important role to play in global energy security. As more nations and businesses prioritize reducing energy imports and fossil fuel use, the adoption of renewable energy is expected to rise.