Gone are the days of expensive and subsidized renewable energies? While the cost of wind turbines and other photovoltaic panels has fallen drastically over the past ten years, the gas crisis of 2022 would have further accelerated the trend. Until reversing the economic equation, by making these sources of low-carbon electricity production largely profitable compared to fossil fuels, in France as elsewhere.
In any case, this is what the global network of renewable energies REN21 asserts in a first module of its annual report, published on Thursday. By focusing on the four most energy-intensive sectors (building, industry, transport and agriculture), this community of more than 4,000 experts in favor of the deployment of these infrastructures highlights their ” increased use » since 2020.
« Today, we really observe a particular interest. Renewable solutions have been recognized as stable, reliable, with an economic and not only climatic benefit “says its executive director, Rana Adib.
In a recent interview with La Tribune, the former CEO of EDF, Pierre Gadonneix, also explained whathe prices of wind and solar power have fallen significantly and are becoming competitive ».
Proof of this is that private power purchase agreements (PPAs), which allow users to set long-term electricity prices, increased by 21% in Europe alone in 2022, surpassing by a record of six times the growth in installed renewable energy capacity by utilities that year, Rana Adib points out.
+10% heat pumps in one year
And for good reason, at the same time, energy prices soared to their highest levels since 2008, boosted by the surge in gas prices following Covid-19 and the war in Ukraine.
Result: In the buildings sector, for example, the search for a reliable and less expensive energy supply has prompted consumers to accelerate the switch from gas boilers to electric heat pumps, making 2022 a record year for installations of the latter (growing by 10% over one year). The electrification of transport, meanwhile, increased by 54% between 2021 and 2022, points out the report. And as for the industry, it is largely turning to non-fossil alternatives and exploring relocation options, while the explosion in energy prices has a direct impact on production », adds Rana Adib.
Strong political response
Still, the market is not enough: the development of crisis response policies has also proven to be a major driver of increased adoption of renewables in demand sectors “, argue the experts. And to cite the announcement by the United States of the famous Inflation Reduction Act (IRA) of 500 billion dollars, which provides new spending, tax credits and incentives for energy-intensive sectors. But also the European Commission’s REPowerEU plan, designed to ” quickly reduce [la] addiction [de l’UE] Russian fossil fuels by increasing total final energy consumption by 2030 to 45% (compared to a target of 40% until then).
“With these plans, governments recognize the crucial importance of these infrastructures in responding to the crisis, with considerations of job creation and reindustrialisation”, welcomes the executive director of REN21.
Elsewhere in the world, China released its fourteenth five-year plan, and is expected to contribute nearly half of all new renewable energy capacity additions globally over the 2022-2027 period. Another significant announcement: in January 2023, India exhibited ” one of the most comprehensive plans in the world for renewable hydrogen, including a $2.3 billion subsidy program for industry and transportation, the report continues.
Fossil fuel subsidies are on the rise
However, this picture remains far from perfect, say the authors. Because many governments have, at the same time, responded to crises in a more ” court-termiste “, regrets Rana Adib. ” To diversify fossil fuel resources, increased exploration by the five oil and gas majors has been encouraged “, she adds. In the European Union, for example, many investments have made it possible to replace Russian gas with liquefied natural gas (LNG) transported by ship, with the proliferation of contracts with various producing countries and the construction of LNG terminals to receive it on the ribs.
“Many leaders continue to subsidize fossil fuels, and to send opposite signals with the development of LNG infrastructure or gas fields, supposedly necessary in the face of the crisis”, deplores Rana Adib.
Concretely, public support for fossil fuels in 51 of the most advanced countries on the planet has increased from 362 billion dollars to 697 billion in one year due to the rise in energy prices, pointed out in August 2022 a study by the OECD. As a result, overall, renewable energies are not always ” unable to compete fairly with heavily subsidized fossil fuels “, notes the REN21 network. Which formulates a clear request: massively reduce the public funds allocated to the use of gas, oil and coal in the world.
