Economic Perspective of Renewable Energy Sources: Security of Supply, Innovations, and Challenges

Abstract

Abstract Renewable energy sources are crucial for tackling the challenges of energy security and climate change. The mounting concerns about climate change, fossil fuel depletion, and energy security have heightened the focus on renewable energy. The shift to a global energy system that heavily relies on renewable sources, while promising, faces significant barriers that call for coordinated global efforts and innovative solutions. This article examines the technological advancements in renewable energy, evaluates their economic implications, and explores future trends and policy impacts. The core argument of this work is that, despite notable technological advancements, a significant breakthrough and a conducive investment environment are yet to be realised to enable the complete substitution of fossil fuels with renewable energy. It analyses current capacities, technological challenges, economic considerations, and various policies influencing the implementation of renewable energy projects. By conducting a comprehensive examination of the intermittency of energy production, limitations of energy storage, and the need for infrastructure modernisation, the economic implications of investing in renewable energy are assessed, alongside the potential of existing technologies to provide a sustainable alternative to fossil fuels. The article underscores the crucial role of increased investment, ongoing innovation, and global collaboration in overcoming existing challenges and ensuring a sustainable transition to renewable energy sources.