Skilled providers agency KPMG has launched Turning the tide in scaling renewables, described as a complete report which pinpoints 10 urgent challenges defining the vitality transition and gives suggestions for fixing them. The report, and accompanying survey, appears to search out that the present tempo of renewable deployments is nowhere close to ample to attain Paris Settlement ranges of ambition with limiting international temperature rise to 1.5°C above pre-industrial ranges. The findings are revealed because the COP28 presidency pushes for international commitments to triple renewable vitality by 2030, with the report outlining the real-world challenges that can have to be overcome to attain these ambitions.
Over 80% of survey respondents agreed or strongly agreed that considerably accelerating renewables deployment is essentially the most pertinent challenge requiring consideration, with 84% figuring out that present market limitations are inflicting substantial delays and, in some circumstances, even the abandonment of renewable vitality tasks. As well as, 40% of survey respondents mentioned present authorities insurance policies are ineffective in accelerating renewable deployment, and these inhibiting authorities insurance policies and rules have been cited because the number-one barrier to scale, with 77% of respondents figuring out this problem. Respondents ranked the opposite most important obstacles to scaling renewables as follows: market constructions and design (75%), provide chain dangers (61%), entry to capital (48%), lack of funding in grid infrastructure (47%).
KPMG survey information included within the report relies on the outcomes of an anonymized on-line survey performed by KPMG Worldwide. In complete, 110 respondents from varied positions throughout the renewable vitality business, at each public and privately held corporations, in over 24 nations answered questions on the necessity to speed up renewable deployments, present market challenges, and coverage effectiveness.
“Understanding the extent of those challenges and the scope of the proposed options permits for sensible and daring motion to be taken, serving to guarantee a path in direction of scaling,” mentioned Mike Hayes, International Head of Renewable Power, Local weather Change, Nature and Decarbonization Chief, KPMG Worldwide. “Attaining local weather targets will seemingly require tripling annual renewable capability by 2030 after which scaling dramatically as much as 2050. For this to occur, the world should get up and attendees should come to COP28 prepared to affix forces to assist take away these limitations or danger significant progress slipping by way of our fingers. It’s time for fast urgency and implementation or in any other case the fact is that the world might want to burn fossil fuels for for much longer than is presently anticipated.”
The place to begin for efficient motion is an correct analysis of the first challenges stopping a dramatic scale-up of renewable vitality. The challenges recognized within the report and a sampling of the really useful actionable subsequent steps embrace the next, so as of significance to survey respondents:
- Market constructions (75%): The flexibleness wanted to help a big buildout of intermittent renewable era is just not supported by most present market constructions and guidelines.
- Provide chain points (61%): Making certain resilient and dependable provide chains is among the foundations of scaling renewables rapidly.
- Entry to capital (48%: Funding the vitality transition requires an infinite quantity of capital.
- Funding in grid infrastructure (47%): As a result of the grid has operated in largely the identical method for effectively over a century, the insurance policies, guidelines, and paradigms guiding investments haven’t wanted to evolve.
- Planning and allowing (44%): The vitality transition is arguably the world’s most formidable and sophisticated building mission. The issue is that it takes far too lengthy to construct renewable vitality tasks and the supporting infrastructure they rely on.
- Rising markets: Catalyzing investments in rising markets is vital to accelerating renewable improvement and offering tens of millions of individuals with life-transforming entry to vitality.
- Simply vitality transition: The targets of a simply vitality transition are to make sure that the advantages of the shift to a decarbonized vitality system are shared equitably whereas probably adverse impacts are mitigated or eradicated.
- Nature and biodiversity: Whereas nature and biodiversity rely on a speedy enlargement of renewables to restrict temperature will increase, there are potential adverse impacts of renewable improvement, and steps have to be taken to alleviate or keep away from them.
- Entry to important uncooked supplies: Scaling renewables requires cost-competitive entry to an enormous quantity of uncooked supplies, like cobalt, nickel, graphite, copper, and lithium.
- Accelerating storage options: Power storage should obtain scale, and storage applied sciences should advance to supply electrical energy and different grid providers for longer durations.
“Figuring out these limitations and enacting options for enchancment is so essential for each developed and creating nations,” mentioned Anish De, International Head for Power, Pure Sources & Chemical compounds, KPMG Worldwide. “Confluence throughout sectors is vital. Because the world prepares to debate these points at size at COP28 and past, now’s the time for presidency, business, and all of society to collaborate and transfer from figuring out challenges to taking deliberate motion in a significant manner.”
KPMG will share this report on the COP28 occasions in Dubai in early December. For extra data on the Turning the tide report, or to fulfill with KPMG professionals at COP28, go to www.kpmg.com/energytransition.
