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The most dramatic growth is expected from the solar energy sector. Some reports suggest that the sector will experience 25 to 50 percent growth in Over a hundred countries — an even mix of developing and developing countries — have set renewable energy targets. The European Union, in particular, has defined an ambitious goal of acquiring 20 percent of its energy needs from renewable sources by Some of the major changes would include:. Making the switch from fossil fuels to renewable energy sources could provide the much-needed kick to the economy. Among all renewable sources of energy, bioenergy arguably has the most lasting influence, locally and regionally.

This could be due to the fact that the fuel is created, prepared and transported within a small area. It is also extremely labor-intensive. Hydropower and wind power constructions create most jobs during the project development and construction phase. After the system is completed and commissioned, only a few personnel are required to carry out the limited operational work.

Production of renewable energy is usually more efficient compared to traditional energy.

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The American Wind Energy Association claims that a sufficient number of wind plants — that could be built in four years — could eliminate the gas shortage. All other forms of renewable energy sources also turn out to be way cheaper than traditional non-renewable sources. What this means for consumers is that they can save money on their utility bills.

For many years, environmentalists have argued for the adoption of renewable energy as a replacement for traditional energy resources. Today, governments and corporations are singing the same tune simply because it makes good business sense. Consider General Electric, for example, which leads the wind energy market in the United States. They launched a grassroots campaign to promote renewable energy by showcasing a foot wind turbine in a few states.

Such campaigns aim to spread awareness about renewable energy and its many advantages. However, several countries have already moved towards renewable energy. Providers in such countries have seen the tremendous impact renewable energy can have on the bottom-line. For example, Germany is a major net importer of power.

Dependence on fossil fuels continues to distort the energy market resulting in a significant number of people having no access to power. It is estimated that almost 1. A total of 2. The vast majority of these individuals were in Asia and sub-Saharan Africa. Renewable energy can reach even these deprived areas. It should also be noted that the renewables sector is an ethical and attractive investment destination for those who desire to place their finances beyond and outside the traditional channels.

Rising investments create a healthy and positive outlook for the sector, which can have an intangible impact on job creation and community cohesion.

Renewable Energies For Central Asia Countries Economic Environmental And Social Impacts

Can renewable energy expand consistently to dominate the energy market as suggested by several independent reports? More importantly, can adoption of this technology translate into economic benefits for nations? Data released by the government of the United Kingdom revealed that the country experienced the steepest drop in carbon emissions in , after more than two decades. The United Kingdom's economy grew by 2. The disclosure is encouraging for a country that has made a legal commitment to reduce its carbon emissions to a mere 20 percent of its levels by the middle of the 21st century.

Costa Rica achieved an arguably bigger energy milestone. From January 1 to March 16 of , it generated all of its energy without using any traditional energy sources like coal or gas. For 75 days, the Central American country produced power using a combination of renewable sources — heavy rainfall, solar energy, wind energy, and geothermal energy. Like the United Kingdom, Costa Rica enjoyed significant economic growth even as its carbon emissions decreased.

The sensitivity towards global warming is increasing across the globe and several big companies claim to be functioning entirely on green energy to reduce carbon emission and do their part in saving the planet. The objective of this article is to provide a view on the economic impact of green energy. Current and Projected Global Market for Energy Monopoly-based organizational structures defined the energy market during its early history. Impact on the Economy Over a hundred countries — an even mix of developing and developing countries — have set renewable energy targets.


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Some of the major changes would include: A. Increase in Jobs Making the switch from fossil fuels to renewable energy sources could provide the much-needed kick to the economy. Lower Consumer Expense Production of renewable energy is usually more efficient compared to traditional energy. The competitiveness of different renewable technologies in different settings depends on their cost and performance, as well as the local cost and availability of fossil-based energy. All of these factors still vary widely and depend strongly on local conditions.

Thus, their integration into a unified electricity grid can pose challenges, especially on a large scale, and may make them less competitive with conventional generating systems.

In addition, the modularity of many renewable energy technologies facilitates their deployment in relatively small increments. This can be advantageous in cost and risk to many developing countries.

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In the early s, only hydropower was competitive with electricity generated by conventional power plants for on-grid applications. However, expanding markets and experience-proven cost reductions have since made wind and geothermal power competitive or nearly competitive with other, conventional sources. Solar photovoltaic technology remains more expensive, but can compete in some off-grid niche market applications.

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These comparisons are, of course, based on narrow criteria of strict cash flow and ignore such other advantages as environmental benefits, which renewable technologies can confer G8 RETF, , p. The figures are somewhat dated, but indicate the extent to which additional experience, larger-scale deployment and continued technology improvement may reduce future costs. The prospects for continued cost reductions are promising in view of the recent rapid growth in renewable energy markets. Table 2. They would apply also to other relatively new, low-carbon technology options, such as carbon capture and sequestration.

Figure 5 compares the decline in unit costs for wind and photovoltaic technology in the United States and Japan to the historic decline in the prices of gas turbines. The figures show that the declines were more rapid at first for gas turbines, but slowed as the technology matured. This is typical of maturing technologies. In principle, energy can always be converted from one form to another. In actual practice, however, there will be some forms that will be preferred due to cost-effectiveness.

Table 3 suggests some specific near-, medium-, and long-term options for supplying basic energy needs in rural areas using low-carbon technologies. The optimal mix of options in different settings will depend on costs, scale, location, timing and availability of local resources and expertise and a host of other factors. In general, a greater diversity of supply options will help to reduce exposure to resource and technology risks.

Of course, there are also trade-offs to consider.

Some standardization can help to reduce deployment costs and make it easier to develop the local expertise required to operate and maintain new technologies and systems. Figure 5: Experience curves for photovoltaics, windmills, and gas turbines in Japan and the United States. In countries that have access to substantial coal supplies, conventional coal-fired steam-electric power plants are often the cheapest near-term option for the addition of large-scale, grid-connected generating capacity.

However, such investments risk locking-in decades of high carbon emissions and, unless modern pollution controls are used, substantial emissions of conventional air pollutants. These economy-environment trade-offs are difficult to resolve, especially for poorer countries that have pressing near-term needs for low-cost power. For those countries, assistance from developed countries will be essential to offset the additional costs and technology demands of more expensive, but cleaner and lower-carbon, technologies.

In the long-term, advanced coal technologies, such as integrated, combined-cycle gasification systems, coupled with carbon capture and sequestration must be successfully commercialized to make continued reliance on coal resources compatible with global carbon limits.

In contrast, nuclear technology is far more demanding. China and India are poised to make substantial investments in nuclear power during the next few decades. However, this technology is unlikely to be attractive to smaller developing countries in the short- to mid-term because of the operational and waste management challenges it presents and the high initial investment required.

Advanced coal systems with carbon capture and sequestration are in an even earlier stage of the research, development and deployment trajectory. Because of the high capital cost and the relatively unproved nature of the advanced coal systems, most analysts believe that developed countries will need to take the lead in demonstrating and commercializing this option. In contrast, the transportation sector has remained, with few exceptions, overwhelmingly dependent on petroleum fuels.

This poses a problem to the environment as transportation accounts for roughly one-quarter of global energy-related carbon dioxide emissions. Further, the reliance on petroleum fuels fails to address the issue of energy and economic security despite recent trends in world oil markets. The rapid growth in vehicle ownership and overall travel are potential problems for many developing countries that already are contending with high levels of urban air pollution and seeing a sharp rise in expenditures for imported oil.

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Sustainable energy for developing countries

Both options have drawn increased attention in recent years. A number of countries with large vehicle markets, including China and India, have adopted more stringent emissions standards and are considering the adoption of automobile fuel economy standards. At the same time, global interest in biofuel development has intensified, due in part to the adoption of aggressive fuel mandates in developed countries like the United States. Brazil is already a world leader in this area, having successfully developed a major domestic sugar cane ethanol industry that is economically competitive with conventional gasoline.

These are significant issues that should be addressed expeditiously by a thoughtful re-examination and reform of current biofuel policies in the developing world and also in the developed countries that are behind much of the recent drive to expand global production.