What Is Stopping Us From Using Renewable Energy?
High Upfront Costs
One major barrier to adopting renewable energy sources is the high upfront costs required to build the facilities and infrastructure needed to generate this energy (https://www.cleanenergyministerial.org/resources-cesc/finance/barriers/high-upfront-costs/). Constructing renewable power plants like wind farms or solar arrays requires significant capital investment. According to a study by the International Renewable Energy Agency, the global weighted average investment cost for onshore wind power was $1,766 per kilowatt in 2020, and for utility-scale solar PV it was $844 per kilowatt.
In comparison, building new natural gas power plants costs an estimated $700-950 per kilowatt. This means the initial cost to build renewable energy facilities can be double that of conventional power plants (https://www.ucsusa.org/resources/barriers-renewable-energy-technologies). The high upfront price tag makes it difficult for renewable energy to compete on cost with established fossil fuel sources that already have infrastructure in place.
Limited financing options and lack of incentives in some markets also contribute to the high capital costs. Renewable energy projects often require new customized financing solutions since they have different risk profiles and costs over their lifetime compared to conventional power plants. Without adequate incentives or financing support, the high initial investment costs can deter adoption of renewables.
Intermittency
Intermittent energy sources like solar and wind present reliability challenges due to their dependence on weather conditions. As noted in this Scientific American article, solar and wind production fluctuates based on the time of day, seasons, and weather patterns. This makes matching renewable supply with energy demand more difficult.
To address the intermittency issue, storage solutions are needed to store excess renewable energy when supply exceeds demand and discharge it later when demand increases. However, large-scale, cost-effective storage has proven challenging to implement so far. According to a report from UNC Kenan-Flagler Business School, the fluctuations in renewable generation can strain the electrical grid if supply and demand aren’t balanced.
Overall, the intermittent nature of renewables creates reliability and grid management issues that need to be addressed through improved storage, forecasting, and grid flexibility.
Lack of Infrastructure
One major challenge is the lack of sufficient infrastructure to support the growth and adoption of renewable energy. Many parts of the energy grid were built decades ago and are not designed to handle the influx of variable and distributed energy generation from renewable sources like solar and wind.
A key infrastructure bottleneck is insufficient transmission lines to connect renewable energy projects to the wider grid. Long distance high voltage transmission lines are needed to transport renewable electricity from source to demand centers, but transmission capacity has not kept pace with the rapid growth in renewables (IEA, 2021).
Distribution networks also need major upgrades and modernization to handle two-way flows of electricity as more households and businesses generate their own renewable power. Many local grids currently lack the sensors, forecasting tools, and automation to smoothly manage variable renewable generation (Wilson Center, 2023).
Without significant infrastructure investment and innovation, grid congestion and bottlenecks will increasingly hinder renewable growth and undermine grid reliability.
Regulatory Barriers
Outdated permitting and zoning laws can pose significant barriers to deploying renewable energy technologies. Local governments may restrict homeowners from installing solar panels or wind turbines due to aesthetic concerns or outdated zoning codes (UCSUSA). Updating permitting processes and zoning laws to be more accommodating of renewable projects could help overcome these regulatory burdens.
Limits on selling excess renewable energy back to the grid also constrain renewable growth. Many states restrict or prohibit home solar system owners from selling their excess power back to the utility through net metering programs (Moorthy et al.). Allowing and expanding net metering policies could incentivize more homeowners and businesses to invest in renewable systems.
Another key regulatory challenge is conflicting regulations across regions and states. A lack of coordination on renewable policies across jurisdictions creates uncertainty for companies investing in renewable projects (NREL). Federal and state governments collaborating to align renewable energy regulations could provide more consistency and predictability for the renewable industry.
Lack of Public Support
While surveys show that most Americans support transitioning to renewable energy sources like wind and solar, there are still concerns from some members of the public that create resistance.12 One issue is aesthetics – some people dislike the look of wind turbines or solar panels and don’t want them installed near their communities.3 There are also concerns about renewable energy systems taking up large amounts of land. Additionally, some perceive renewable sources as unreliable or insufficient to meet energy demands. This resistance to change and clinging to the status quo of fossil fuels remains a challenge. Educating the public on the benefits, reliability, and efficiency of renewable energy will be key in gaining wider acceptance.
Subsidies for Fossil Fuels
Government subsidies for fossil fuels distort the energy market by making fossil fuels artificially cheaper. According to a 2021 article by Nature, fossil fuel subsidies totaled over $500 billion in 2019, compared to only $160 billion for renewables (Nature). These subsidies for oil, gas, and coal give fossil fuels an unfair advantage and prevent renewable energy sources like solar and wind from being able to compete on cost. As noted by Human Rights Watch, fossil fuel subsidies far exceed government support for renewables (HRW). Until the playing field is leveled by removing subsidies for fossil fuels, it will be difficult for renewable energy to reach its full potential.
Industry Resistance
One of the major barriers to widespread adoption of renewable energy is resistance from the entrenched fossil fuel industry. The fossil fuel industry has a lot to lose as renewable energy expands, as it threatens their profits and business models. As a result, fossil fuel companies have engaged in efforts to impede the growth of renewables.
Fossil fuel interests spend millions lobbying against policies that would promote renewable energy and reduce dependence on fossil fuels. In the US alone, the oil and gas industry spent over $125 million on lobbying in 2020 (NPR). They advocate against measures like carbon pricing, clean energy subsidies, and fossil fuel regulations.
The fossil fuel industry also utilizes misinformation campaigns to turn public opinion against renewable energy and create unfounded fears. For example, groups tied to fossil fuel companies have spread myths that renewable energy is unreliable, bad for the economy, and a threat to jobs (Hansen, 2022). However, research shows these claims are largely exaggerated or untrue.
By protecting their business interests through lobbying and misinformation, fossil fuel companies hinder the growth of renewable energy. Overcoming industry resistance will be key to transitioning to a clean energy economy.
High Cost of Technology
Solar panels and wind turbines remain expensive compared to traditional fossil fuel power plants. This is largely due to the lack of manufacturing scale and limited research and development funding for renewable technologies. At their current volumes, renewables still don’t benefit from the economies of scale that would lower their costs. Additionally, renewables receive far less R&D funding than fossil fuels. This limits technological advancements that could further decrease prices. However, costs are dropping as manufacturing expands and new technologies emerge. According to IRENA, the global weighted average LCOE (levelized cost of electricity) of new onshore wind and solar PV projects commissioned in 2021 fell by 15% and 13% respectively, year-on-year. As costs fall, renewables become increasingly competitive with conventional power generation (IRENA report).
Resource Limitations
One barrier to increased renewable energy adoption is limitations in suitable geographic locations and resources for projects. Wind and solar power in particular require specific conditions to generate optimal electricity. Suitable areas must have abundant sun or wind, which restricts where large-scale projects can be sited. For example, the sunniest areas for solar are in the southwestern U.S., but high electricity demand is concentrated in other regions of the country. Transmitting power over long distances from source to demand centers reduces efficiency and adds infrastructure costs.
The most productive onshore wind resources are concentrated in the Midwest region, offshore wind resources are along the coasts, and hydropower relies on existing dams or rivers suitable for new dams. As prime locations reach capacity, expanding renewable generation requires tapping marginal resource areas or building long transmission lines.
Geographic constraints and transmission distances are significant barriers to scaling up renewables to reach 100% penetration. The intermittent nature of renewables also means backup power or storage is needed when the sun isn’t shining or wind isn’t blowing, further adding to costs.
Grid Stability Challenges
The increasing amount of renewable energy from distributed sources like rooftop solar presents grid stability challenges. Traditional power grids were designed for one-way electricity flows from centralized power plants to customers. With distributed renewable sources, there are now more two-way power flows which can disrupt grid stability.
To maintain a stable grid, the frequency and voltage must be kept within tight bounds. Variability from renewables can cause fluctuations in frequency and voltage that need to be constantly balanced. This requires new approaches to grid management, like advanced forecasting of renewable output, faster ramping of complementary resources, and sophisticated control systems.
According to research from the National Renewable Energy Lab, integrating technologies like battery storage and grid-forming inverters can help smooth out renewable variability and enhance grid resilience.[1] With proper planning and innovation, grid stability challenges from renewables can be overcome.
