Development Barriers In Developing Countries For Renewable Energy

Challenges of Renewable Energy Development in Developing Countries

Discuss About The ABOUT THE Development Barriers In Developing Countries.

In the current scenario, demands for sustainable energies in the global energy market has increased. Due to the depletion of fossil fuel demand for alternative renewable energies have increased. It has been identified that wave and water produce the renewable energy that can be used for sustainable development. It is true that most of the developing countries are rich in the case of renewable source. Due to this reason, the importance of renewable energies in the global context has been highlighted in the developing countries. It cannot be denied that improper economic structure and lack of government support, various challenges are being faced by the developing countries in order to develop renewable energies. In the case of developing countries various, governmental and economic policy barriers interrupt in the case of shifting to alternative renewable energy sources. It cannot be denied that switching from fossil fuel to renewable energy can bring the solution for these challenges. Moving from fossil fuel to renewable energy is a long-term process. 

In the current situation people have become habituated with the non-renewable energies, due to this reason, developing countries are sticking in the fossil fuels. The process of renewable energy production is uncertain and quite slow, which is creating the challenges for developing countries. It cannot be denied that the renewable energy growth in the developing countries has various limits for dealing with the funds, technology, improper infrastructure and energy policy related issues. As the fossil fuel is reliable and affordable, hence, the developing nations will depend on the fossil fuels. It has been identified that in the case of developing countries, coal is an important non-renewable energy source. It provides 1/3 of the entire energy supply, which produces 40% electricity (Arena.gov.au 2018). Due to the changing infrastructure, the large amount of investment is required for switching to renewable energy. It has been identified that $1100 billion is required for extracting the fossil fuel and infrastructure development however, only 250 billion is being spent for the renewable energy installation (Lo 2014). In order to develop the effective renewable energy plant, efficient employees are required. However in the case of developing countries, the recruitment cost of the skilled employees are higher. Due to the lack of economic stability, it has become very difficult for the developing countries to shift in the renewable energies.  The statistical information has been collected recently, it has been identified that renewable energy is expensive compared to the fossil fuel. As an example it can be said that although India is rich with conventional and renewable energy resources, the suitability and easy accessibility in the low cost have made coal as the important source of electricity in this nation (Luthra et al. 2015). In the recent report of 2017, it has been identified that the wind power cost is higher than the coal power. The wind cost is near about $60-70/MWh, however the coal power cost is $40/MWh. Therefore, this can be said that such economic barriers decrease the possibility of developing renewable energy in the developing countries.

Economic Barriers in Adopting Renewable Energy in Developing Countries

However, it cannot be denied that in the current situation, the economic condition of the developing countries got improved. Due to the economic development, many if the developing countries are being able to bear the cost of renewable energy. Solar panels are being used producing the cost-effective energy through batteries and inverter. It has been identified that in 2016 near about 133 million people have started using the off-grid renewable solutions for producing the electricity (Luthra et al. 2015). The growth of solar energy has increased due to the financial support. In the case of the African continent within last five years the fastest development of the off-grid renewable energy has shocked the global energy industry. In between the year 2011 and 2016, from 2 million to 53 million renewable energy users has increased. Due to the installation of renewable energy plants the employment opportunities have increased in the developing countries. It has been identified that in the year 2016, IRENA had introduced 9.8million jobs (Irena.org 2015). In the maintenance and renovation department of renewable energy, IRENA has decided to recruit near about 60000 employees within coming 2050 (Irena.org 2015). Therefore, this can be said that the importance of renewable energy is quite higher in the case of developing countries.

 It cannot be denied that the policies regarding the energy development and project installation are a long-term process which needs huge investments. The market expectation of the renewable energy market is increasing but fossil fuels are ruling the market from the long period. In this situation, cost reduction of the renewable energies can be beneficial for the developing countries. It is also true that the technology is quite high in the case of renewable energy comparing the non-renewable energy (Yaqoot, Diwan and Kandpal 2016). The technological equipment which is being used in the case of renewable energy is higher than the non-renewable energy because all the equipment is imported. On the other hand, it has been identified that in the case of coal firms, the manufacturing unit needs few workers but in the case of renewable energy plants, a large number of workers are being recruited. Hence, this can be said that near about double workforce of coal industries, is required in the solar industries that increase the cost, which sometimes creates barriers for the developing countries. Due to this reason the renewable energies are not being adopted by the developing nations.

Government Support for Renewable Energy Initiatives in Developing Countries

On the other hand, it has been identified that delay in the implementation of government policies in the developing countries and governmental support towards the fossil fuels have created barriers for developing the renewable energy plants. As the government policies are in the favourable situation for the fossil fuel investors, therefore, the gas, coal and oil are being supplied in the developing nations without any barriers (Keho 2016). It has been identified that private organizations are not showing their interest towards investing in the renewable sources due to the government policies. Due to inadequate research and improper planning regarding the renewable energy development practices, it has become tough for the developing countries to take such initiatives (Kardooni, Yusoff and Kari 2016). On the other hand, lack of efficient technicians and separation as well as lack of transparency regarding the government policies the developing nations are suffering. Due to the political instability and the complex association between the organizations the renewable energy development initiatives are getting hampered (Hua, Oliphant and Hu 2016). It is also true that in order to develop the renewable energy plants, the political barriers discourage the initiatives. Due to such barriers many of the developing nations depend on the non-renewable energies.

It can be said that with the increasing rate of fossil fuel uses, the shortage of fossil fuel supply has increased. In this situation the renewable energy can be an effective solution for the continuing the supply chain process. The government has taken the renewable energy production process as the important strategy in order to reduce poverty. Due to the unstable fossil fuel costs, the scope for renewable energy development has increased. It has been identified that in the year 2017, the Philippines has attempted to provide electricity to near about 90% of the entire households and introduced the policy named ‘Demand-side management’. The aim of the policy is to increase the rural electrification by developing the Energy regulatory board, increasing finding and recruiting efficient staffs (Kardooni, Yusoff and Kari 2015). On the other hand, it is also true that the government in developing countries has started supporting the renewable energy initiatives like the Mexican Federal Electricity Commission has produced electricity from the geothermal and hydropower. Therefore, the developing countries have started developing the renewable energies with the help of government.

However, there are many developing countries where the government prefer the products which can be easily accessible. It cannot be denied that in the case of Indonesia, the government still supporting the fossil fuel investment initiatives. In the recent report, it has been identified that Malaysia has stopped the installation process of a solar panel (Bhattacharya et al. 2016). Due to the introduction of the financial motivations, the consumption of energy has reduced, such governmental enhancement has played an important role in the case of making the renewable energies are an optional source. Therefore, this can be said that it is difficult for the government of developing countries to shift their support from fossil fuel to renewable energy.

Conclusion

 In this study, it can be concluded that sustainability of the renewable energies is quite higher for environment and economy. However, it is true that due to the easier accessibility the fossil fuels have become the main energy resource in the developing countries. In terms of environmental benefits, the renewable energy is very effective. It is also true that lack of skilled employees and financial support have become major barriers for the developing countries. Hence, it has been identified that the government of developing countries will focus on introducing the renewable energy as the additional energy, but the fossil fuels are still the main energy source in the developing countries.

References

Arena.gov.au. 2018. What is Renewable Energy? Retrieved June 27, 2018, from https://arena.gov.au/about/what-is-renewable-energy/

Bhattacharya, M., Paramati, S.R., Ozturk, I. and Bhattacharya, S., 2016. The effect of renewable energy consumption on economic growth: Evidence from top 38 countries. Applied Energy, 162, pp.733-741.

https://www.irena.org//media/Files/IRENA/Agency/Publication/2018/Jul/IRENA_Ofgrid_RE_Solutions_2018.pdf

Hua, Y., Oliphant, M. and Hu, E.J., 2016. Development of renewable energy in Australia and China: A comparison of policies and status. Renewable Energy, 85, pp.1044-1051.

Irena.org 2015. Off Grid renewable Energy Solution. Retrieved on July 25, 2018, from

Kardooni, R., Yusoff, S.B. and Kari, F.B., 2015. Barriers to renewable energy development: five fuel policy in Malaysia. Energy & Environment, 26(8), pp.1353-1361.

Kardooni, R., Yusoff, S.B. and Kari, F.B., 2016. Renewable energy technology acceptance in Peninsular Malaysia. Energy Policy, 88, pp.1-10.

Keho, Y., 2016. What drives energy consumption in developing countries? The experience of selected African countries. Energy Policy, 91, pp.233-246.

Lo, K., 2014. A critical review of China’s rapidly developing renewable energy and energy efficiency policies. Renewable and Sustainable Energy Reviews, 29, pp.508-516.

Luthra, S., Kumar, S., Garg, D. and Haleem, A., 2015. Barriers to renewable/sustainable energy technologies adoption: Indian perspective. Renewable and Sustainable Energy Reviews, 41, pp.762-776.

Yaqoot, M., Diwan, P. and Kandpal, T.C., 2016. Review of barriers to the dissemination of decentralized renewable energy systems. Renewable and Sustainable Energy Reviews, 58, pp.477-490.