Accelerating the energy
transition
REthinking Energy 2017
Henning Wuester
Director – Knowledge, Policy and Finance
IRENA
The true value of renewables goes well beyond providing energy
services
Key pillars for accelerating the global energy transformation
Policy, finance and investment, and technology remain central for accelerated
growth.
Current status of renewable energy
In 2015, the contribution of all renewable energy to the global energy mix grew by the
largest increment yet, particularly in the electricity sector.
Accelerating the pace of the energy transition
To meet sustainable development goals and decarbonise global energy use,
renewables need to be scaled up significantly.
Policy frameworks: Focus on auctions
Renewable energy auctions in 2016:
Source: IRENA
Policy frameworks: Focus on auctions
Evolution of solar prices
Renewable power auctions throughout 2016 resulted in record-low prices.
Policy frameworks: Focus on renewable integration and market
design
Integrating large shares of renewables is not as challenging as often thought.
Scaling up investments – using public funds for risk
mitigation to catalyse private investment
Early stage innovation fund
o Sheikh Mohammed bin Rashid Al Maktoum Fund (UAE)
o National Clean Energy Fund (India)
Guarantees to mitigate risks
o Loan guarantees: Green Tech Financing Scheme (Malaysia)
o Resource risk:
o Geothermal Fund Facility (Indonesia)
o Geothermal Financing and Risk Transfer Programme (IADB in
Mexico)
o Currency Risk Guarantee Fund (India)
o Off-take risk: Regional Liquidity Support Facility (KfW in Sub-Saharan
Africa)
Leveraging new capital cost instruments
Growth in the Global Green Bond Market and Renewable Energy Share, 2008-2015/16
Institutional investors are a crucial source of capital for large-scale
renewable energy investment.
Innovations in Technology
Renewable heating, cooling and renewables in the transport sector need to expand.
Technology innovation: Focus on storage
The rapidly evolving cost and technology landscape of electricity storage will be a game
changer.
Bridging the electricity access gap through off-grid renewable
energy solutions
Off-grid systems build foundation for economic growth and improved livelihood.
Harnessing the cross-cutting impact of renewables
Holistic policies can maximize the development benefits of renewables within and
beyond the energy sector.
Five overarching sets of actions
•
Strengthening the policy commitment
•
Catalysing additional investments
•
Fostering technological innovation
•
Bridging the access gap through off-grid solutions
•
Harnessing renewable energy to meet multiple SDGs
Key pillars can help decision makers step up their efforts
to maximise the social, economic and environmental benefits
of an accelerated transition.
Thank you!