Middle East energy shock prompts industry call for renewables acceleration

These conflicts have all exposed the risks facing many countries and regions dependent on imported fossil fuels, which are vulnerable to price spikes, supply disruptions and “economic and political instability”, said the GRA. “With three-quarters of the world reliant on imported fossil fuels, continued dependence on fossil fuels is a serious risk to jobs and livelihoods,” the body said in a statement.

However, the trade body highlighted that renewables can “break the crisis cycle” and how governments need to accelerate the shift towards domestic renewable energy. PV Tech Premium covered that topic with an analysis article last week, looking at how this current energy crisis could prompt a global surge in solar PV deployment.

“Renewable energy is the fastest and most cost competitive solution to long-term energy security, resilience and prosperity. Fast-tracking the deployment of wind, solar, hydro, geothermal and energy storage projects will protect countries from price volatility and energy market failure,” said the Global Renewables Alliance in its statement.

Five emergency measures to fast-track deployment

The GRA called for the implementation of five measures in response to the current energy crisis, covering permitting, grid, financing, electrification and supply chain.

On permitting, the trade body is calling for accelerated regulatory approvals by urgently streamlining permitting and consenting procedures for renewable energy projects as well as short- and long-duration energy storage, which could result in a “major expansion” of capacity in the next three years.

As is often the case for the rapid deployment of renewable energy, the modernisation, optimisation and expansion of electricity grids and energy storage systems are imperative to add new renewable energy capacity. This can also be achieved by shortening lengthy grid connection queues and accelerating grid access by guaranteeing priority dispatch for renewables.

On the finance side, the trade body called for de-risking and unlocking public and private investment in renewable energy and storage projects, and associated infrastructure. This can be done by introducing preferential interest rates and financing, decreasing financial institution lending limits, creating renewables lending windows and redirecting capital away from carbon-intensive industries.

The fourth measure calls for the introduction and implementation of national strategies to accelerate end-use electrification and system integration across transport, heating and industry through flexibility markets, demand response and short- and long-duration energy storage. GRA added that for sectors that cannot be electrified directly with renewables, the solution comes via green hydrogen.

Finally, in order to scale up supply chains, clear milestones need to be set to expand renewables, grid and energy storage deployment and stockpiling.

“Create clear demand signals and offtake frameworks, increase pipeline visibility, and generate long-term revenue certainty, to promote necessary investments in critical manufacturing and labour force capacity,” said GRA.

“Energy crises keep recurring because the global energy system remains stuck in the past,” said Bruce Douglas, CEO of GRA. “The fastest and cheapest way to protect economies and households from price shocks is to accelerate the deployment of renewables, energy efficiency and storage, strengthen grids and electrify end use sectors.” 

The GRA’s action plan was endorsed by its six member associations, which include the Global Solar Council, Long Duration Energy Storage Council and Global Wind Energy Council.