Alternative energies: Challenging the energy status quo

Published: December 19, 2023

Share on social networks

Introduction

The global energy system is currently undergoing a critical conversion, facing both environmental and economic challenges due to its dependence on fossil fuels. This reality has given rise to a global environmental crisis, manifested in climate change and the degradation of ecosystems, which underlines the urgency of a radical change in the way energy is produced. Faced with this situation, the need arises to rethink the energy status quo, moving towards a cleaner future.

Renewable energies, such as solar, wind and hydroelectric, among others, represent viable and efficient solutions. These alternatives not only promise to reduce the carbon footprint and improve energy security, but also contribute to a more resilient economy. This article expresses the current state of the sector, evaluates the impact of conventional and renewable energy sources, and discusses how the transition to renewable energy is shaping the global energy landscape.

What is the energy status quo?

It is the state of things or how they are happening at a certain moment. In the energy context, there has traditionally been a focus on the prevalence and dependence on fossil fuels and their related infrastructure; and how the change towards more sustainable and renewable energies represents a significant improvement. Traditional energy market structures have been rooted in traditional energy sources, but the status quo in the alternative energy sector shows a varied and constantly advancing landscape.

Faced with these challenges, alternative energy sources, such as solar, wind, geothermal, green hydrogen and carbon capture technologies, emerge as effective strategies. These renewable sources offer a way to diversify the energy matrix, because they are inexhaustible and have a lower carbon footprint. This transition towards a more sustainable and diversified energy system redefines the energy status quo, presenting opportunities for long-term sustainable economic development.

Current energy situation

The current global energy crisis, accentuated by geopolitical and economic factors, has led to a tense and volatile energy market. Fossil fuel prices, although down from their 2022 highs, remain a concern. In this context, renewable energy is gaining momentum as a competent solution.

Investments in clean energy have increased significantly, driven by the need to reduce emissions and improve energy security. A notable change is seen in the accelerated demand for electric vehicles and clean energy generation capacity, setting new records in 2023. This shift towards renewable energy marks the beginning of the end of the fossil fuel era, with a predicted decline in global demand before 2030¹ .

Current energy sources: Towards energy change

Current energy resources represent a mosaic of opportunities and innovation, with a firm focus on new energies. Historically, fossil fuels have dominated the energy matrix; but it is necessary to quickly diversify this model towards one based on renewable energies. This change is necessary to combat climate change and address the exhaustibility of fossil fuels.

Recent years have seen accelerated growth in the development and use of renewable energy, despite the general decline in energy demand during 2020, supply chain problems and delays in the construction of new energy systems, the move towards a greener economy has been the focus of attention.

The “Global Energy Perspective 2023” indicates that the energy future is increasingly influenced by the various renewable energy options. Solar and wind energy together are expected to contribute to the majority of the global energy mix by 2040. Although total demand for fossil fuels is projected to peak by 2030 in all scenarios, natural gas and oil will continue to be an important part of energy production for decades to come ² .

Energy Status Quo and current energy sources — With the aim of mitigating the effects of climate change, the transition to renewable energy has become an essential aspect for a sustainable future.

Renewable energies offer substantial benefits for the climate and health, although they also have certain environmental impacts; These vary depending on the technology used and geographic location. For example, wind energy generates electricity without toxic or greenhouse gas emissions, but presents challenges related to land use and wildlife.

Solar energy, both photovoltaic and solar thermal concentrating plants, has impacts that include land use, water consumption, and the use of hazardous materials in manufacturing. Geothermal energy, depending on the technology and cooling system used, also has its impacts, as do biomass and hydroelectricity.

Global overview of the energy system

The current state of the global energy system is marked by a strong dependence on fossil energy sources, which, despite their efficiency in terms of production infrastructure and stable supply capacity, face adversity due to environmental concerns and the need transition towards sustainable energy sources.

Its infrastructures, although technically advanced and effective in energy generation and distribution, are being reviewed and adapted in an effort to reduce its environmental impact and meet global decarbonization objectives. Efficiency in fossil energy production must therefore be considered within the framework of a broader energy strategy that seeks to balance the reliability and accessibility of current supply with the need to implement sustainable practices and low-carbon technologies.

Although progress is being made, there are multiple factors to overcome, with a path full of uncertainties. The transition of the global energy system depends on a variety of factors, including technological developments, effective policies, permissible regulations and changes in consumer preferences; where collaboration between government entities, private sectors and even educational systems are essential to achieve a successful energy future.

Transition towards renewable energies

Transitions are complex; These efforts represent various problems, in particular, they are long-term processes that require the interaction of a large number of actors, such as: companies and industry, politicians and decision makers, consumers, researchers and society in general. This transition brings with it a series of positive and adverse strategic considerations:

Growth of renewable energies: This type of energy, especially solar and wind, is expected to continue its rapid advance, driven by its cost competitiveness. These sources are projected to provide 45 to 50 percent of global energy generation by 2030, and 65 to 85 percent by 2050. However, the problems in the supply chain, permit processes and implications in the construction of electrical networks will remain² .

Need for greater investments: Total annual investments in the energy sector are projected to increase to between $2 trillion and $3.2 trillion in 2040. Although there is growing regulatory momentum for decarbonization, a portion of these investments will still go into fossil fuels and conventional power generation to meet demand and balance the energy system ² .
Technology and Innovation: Implementing emerging technologies such as blockchain and AI present great opportunities to advance sustainable energy systems. For example, blockchain facilitates peer-to-peer energy trading, monitors the origin of clean energy generation, and facilitates innovative financing models for new projects ³ .
Energy security: The path towards the energy transition must consider energy security as a priority. Such a transition entails a change in the direction of the energy system. It seeks to replace practices, stimuli, customs, regulations, rules and sources associated with the status quo, that is, a system based on hydrocarbons.
Global perspectives and policy responses: Global perception of progress on climate commitments varies significantly, with a majority of responses in a 2023 Global Energy Agenda survey leaning toward a negative assessment. However, there is a slight increase in positive perception compared to previous years. This pattern demonstrates that expectations and perceptions of climate progress are more related to locality than to profession in industry ⁴ .

Alternative energies present a valued opportunity for a cleaner future, but they also project actions that require addressing with innovative solutions and the collaboration of various industries and sectors. Overcoming this transition will depend largely on how global actors, from governments to companies and consumers, respond to these problems and take advantage of the opportunities presented.

Conclusions

The transition to alternative energies is more than a necessity; It is an opportunity to determine the energy future of the planet. Despite the difficulties, the potential for positive change is enormous, and global collaboration will be essential to achieve a cleaner and more resilient energy system in the medium term.

Given the current energy situation, there is a need to rethink the energy status quo of the predominant system such as fossil fuels, directing it towards more sustainable and ecological sources. This change not only implies a transition towards clean energy, but must also foster solid trust between producers and consumers; that effectively addresses new investments and the integration of these sources into the existing grid infrastructure, while ensuring the reliability and security of alternative energies.