Free «Plan for Renewable Energy Development Policies» Essay Paper

Plan for Renewable Energy Development Policies

Climate changes have become one of the major issues of concern in the world. Renewable energy technologies have become the effective solution in curbing these climatic changes with an aim of attaining sustainable energy needs. Many governments have granted large amounts of subsidies to facilitate the deployment of renewable electricity generation. The use of renewable energy technologies is highly efficient as it has environmental, economic, and social impacts. In addition, it influences energy security and technological development. Renewable sources of energy help displace energy sources that are carbon-intensive and other pollutants.

Deployment of renewable technologies provides economic activities related to installation and maintenance as well as development of national industries and export service. Significant social benefits will also be brought about resulting from the deployment process in developing nations. Deployment of renewable energy technologies will increase the diversity of energy supply, thus making a nation less reliant on other sources of energy, notably fossil fuels. Renewable technologies will also pave the way for increased market support, thus stimulating private research and development (Cavallo, Hock & Smith 1993).

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Barriers and Problems

The use of renewable sources of energy for climate change mitigation comes with accompanying barriers and problems. These problems limit the efforts put in attaining the set goals or even achieving certain targets in potentialities on mitigation that have been outlined in the policies. The following provides the main issues that may arise concerning the use of renewable sources of energy, climate change mitigation, its adaptation, and attaining sustainable development (Maczulak 2009).

Financial Risks

These risks may arise due to the existing uncertainties in the prices and related costs in the production of electricity. Future prediction about the price makes its quite difficult for any public or private investor to come up with clear anticipations of the future returns on investments that have been done. The financial viability of renewable energy sources depends a lot on the availability of capital and the related costs.

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Market Failures

Such failures arise from externalities or other external effects. There may be external costs or external benefits from the use of renewable sources of energy. The deployment policies of renewable sources of energy may come about resulting from underinvestment in inventions and innovation of those technologies. The initiators of these technologies cannot accrue any benefits from the exclusive property ownership rights for the efforts they put (Kolb et al. 2011). The presence of market monopolies in energy may lead to decline in competition among those who demand and supply these sources of energy. Thus, it minimizes the existing opportunities for free market to prevail in terms of entry and exit to the market.

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Informational and Awareness Barriers

The barriers are connected with deficient information and data about the existence of natural resources, aspect of skilled human resources as well as public and institutional awareness. There exist deficiencies in renewable energy sources. It is a big challenge as the development of renewable energy also requires skilled expertise in various fields such as the engineering fields, in management, and the aspects of social sciences. Successful implementation of the plan will require special training for those handling it. The users of renewable energies should also clearly understand the operational aspects and availability of the energy. There also exists minimal awareness of technical and financial issues in implementing the projects on renewable sources of energy (Intergovernmental Panel on Climate Change 2007).

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Socio-Cultural Barriers

These barriers emanate from societal and personal values and norms. The latter affect energy technologies and their deployment by different people, groups, and societies. Inadequate attention to socially and culturally related concerns is focused on the impacts on behavior, natural habitats, and heritage sites including ecosystems and biodiversity among other factors.

Institutional and Policy Barriers

The barriers include the existing industries, infrastructure and energy market regulation, tariffs in international trade, and allocation of government financial support. Trade is significantly reduced in renewable energy technologies due to the stringent tariff barriers and non-trade barriers imposed by some countries. Some governments also do not spend considerable financial resources in funding these energy technologies (Bailey & Worrell 2005).

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Other Problems

There may arise issues that are not readily amenable to deployment policies and programs. For example, the energy resources may be too limited to facilitate its use for a certain purpose at a particular place. A renewable source of energy like wind may be too slow to produce reliable power. Wind and solar energy may not be readily available for dispatch when the need arises. Thus, their large scale production becomes quite insufficient. Displacement of forests may arise due to extensive building of large scale reservoirs for biomass production, thus leading to the problems associated with deforestation such as direct and indirect release of carbon (IV) oxide and soil loss

The Role of Policy Maker to Support and Encourage Using Renewable Energy

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Policy makers should closely focus on ways aimed at improving cost-effective way of using renewable energy technologies. They need to come up with an efficient policy design. These include the following:

Mechanisms that control costs

This can be ensured by monitoring and reporting subsidy mechanisms and expenditure. Mechanism on adjustment also facilitated setting the correct level of tariffs and also ensures that there is no over compensation for developers.

Removal of non-economic barriers

Existing barriers that limit the deployment of renewable energy technologies lead to increased subsidy expenditures. A cost effective way of resolving such barriers is necessary. These include; removal of subsidies on fossil fuels and set up of efficient permitting systems to facilitate development of projects.

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Mechanisms to ensure environmental benefits

An effective policy design will ensure that maximum environmental benefits are attained. For example; maintain stringent standards for renewable energy that is fuel-based, incentives to facilitate relative amounts of Carbon (IV) oxide are generated.

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