Renewable energy has gained a foothold in many countries as the technology of choice, accounting for one-third of the world’s total energy capacity. The energy transformation has picked up momentum over the past few years due to a combination of better technology, lower prices and the benefits of scale, leading countries to realize the immense renewable potential, which could meet the global energy demand by 2050.

The past 10 years have also seen soaring global investment in renewable energy capacity, as wind and solar have emerged as cost-effective power sources. Hydropower attracted the most investment in renewable energy up to 2008, while wind turbines were at the forefront in 2009, and solar panels became the dominant investment choice by 2016.

In 2015, more money was invested in renewables than fossil fuels for electricity production for the first time. In 2017, more investments were made in solar than in all other low-carbon technologies combined. Analysis by the investment bank Lazard shows that it’s now cheaper to build a new wind farm than to keep a coal plant running in some parts of the US where coal plants are shutting down because of this, and the scenario is expected to be repeated in other places in near future. Both the wind and solar industries are driving down costs and improving technology performance, and the technologies are now better positioned to compete than ever before.

Renewable-power prices are now competitive with traditional sources of power, turning what was once a novel approach to energy generation into a big, viable business. New solar photovoltaic (PV) and wind energy plants are more profitable than fossil and nuclear plants in a fast-growing number of regions around the world.

This also indicates that we can now bust the myth that green growth and growing the economy sustainably is an expensive option. Solar energy, even combined with batteries for energy storage, is already commercially attractive where diesel energy is the alternative such as in small islands off the grid, or where power outages are common.

At GGGI and its 32 member countries we believe that green growth is the only viable option for a sustainable future – and that it is already commercially attractive in many cases. While solar and wind energy dominate the disruption in electricity production, bioenergy remains the leading source of renewable energy due to its use for heating buildings and in transportation. Renewables are expected to continue their expansion in the next five years, covering 40 percent of worldwide energy consumption growth.

Many technologies make a positive contribution, from renewable energy in batteries as some of the base technologies, leading to electrification and transport. The largest area where we need to see progress is in buildings and infrastructure. In Asia, smart cities are very popular. In Africa they are called green cities as they are often realized through green buildings that are better insulated or public transportation that is electrified, recycling waste into energy and so on. It is actually possible to build passive houses – houses that do not emit greenhouse gases in construction or when in use – through smarter use of insulation, and smarter use of district heating or cooling.

When Rwanda set to build its new airport in Kigali, for example, I asked the government to rethink the design to make it a zero-emission airport that was actually cheaper to construct. To be completed in 2020, the Bugesera International Airport will be a net zero emissions complex through energy and water efficiency and solar power, making it one of the greenest airports on the continent once completed.

Mongolia has one of the coldest winters on earth, where many low-income households in the “ger” (tent) districts burn low-grade brown coal, the cheapest way to keep warm. This contributes to 80 percent of Ulaanbaatar’s serious winter emissions. To deal with this, Mongolia has set a target of achieving the goal of renewable energy accounting for 20 percent of all power by 2020, and 30 percent by 2030. Today, about 7 percent of the total energy comes from renewables and by the end of this year, Mongolia expects that number to be doubled. However, it is difficult for renewable energy to compete with coal for heating purposes because Mongolia does not have viable or affordable technology for heating supplies based on renewable energy. Also, a big issue is that cities in Mongolia do not have geothermal energy resources. As a short-term measure to solve air pollution issues, the government is proposing to use electricity for heating supplies and to provide a subsidized price for consumers at night. As a long-term solution, Mongolia envisions the introduction of renewable energy technologies for consumers and households.

In Asia, the primary driver of green or green tech may not be climate change but air pollution, which causes asthma and deadly diseases. Beijing had more blue skies this year than in previous years, as coal mines have been closed and more electric buses are on the roads. China has confirmed that it will stay in the Paris Agreement, and become a leader in certain areas of clean technology. It is commercially exploiting these opportunities, for example in constructing solar panels.

Likewise, in Europe, wind energy provides a thriving industry and many commercial opportunities. Japan is pushing for a hydrogen economy, and various countries are finding out that these could bring a new generation of prosperity.

Despite all the good news, greenhouse gas emissions are not coming down fast enough to avert a climate disaster. We will need to find ways to accelerate renewable energy adoption. That is particularly true for least developed countries, where only 20-30 percent of the population have access to electrical energy, instead relying on unsustainable and unhealthy biomass energy such as fuel wood and charcoal for basic needs such as cooking. Renewable energy not only helps reduce emissions in developing countries, but also has a key role in increasing access to clean energy for all.

The author is director-general in Global Green Growth Institute.

The author contributed this article to China Watch, a think tank powered by China Daily. The views do not necessarily reflect those of China Daily.

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