Wednesday, 19 December 2018

Renewable Energy: Measuring the Benefits


The International Renewable Energy Agency (“IRENA”) conducted a study on the linkages between the energy system and the world’s economies within a single quantitative framework.

Accelerating deployment of renewable energy will fuel economic growth, create new employment opportunities, enhance human welfare and contribute to a climate safe future.


Doubling the share of renewables in the global energy mix increases global GDP in 2030 by up to 1.1% equivalent to USD1.3 trillion. Global welfare increases by 2.7% compared to a 0.6% GDP improvement. And direct and indirect employment in the sector increases to 24.4 million by 2030. Trade will also increase in power and end-use sectors.

What is it currently?

About 7.7 million people are now employed by the renewable energy sector worldwide. Solar PV is the largest renewable energy employer with 2.5 million jobs worldwide. Residential solar PV systems are 65% cheaper now than in 2008. In an auction, Dubai contracted the lowest ever price of U.S. 6 cents per kilowatt-hour and this is without any financial support.



Doubling share of renewable by 2030, could prevent nearly 9 gigatonnes of carbon emission and help stabilize the climate. If the right policy mix is enacted then governments create much needed jobs and clean energy. In India, the goal is to install 100GW of solar PV and 60GW of wind turbines which will generate more than 1 million jobs by 2022. The economics are now undeniable!

References:
1. The Economics of Renewable Energy: Falling Costs and Rising Employment, Adnan Z. Amin
2. Renewable Energy Benefits: Measuring the Economics, International Renewable Energy Agency

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