Overview of renewable energy

Renewable energy flows involve natural phenomena such as sunlight, wind, tides, plant growth, and geothermal heat, as the International Energy Agency explains:

“Renewable energy is derived from natural processes that are replenished constantly. In its various forms, it derives directly from the sun, or from heat generated deep within the earth. Included in the definition is electricity and heat generated from solar, wind, ocean, hydropower, biomass, geothermal resources, and biofuels and hydrogen derived from renewable resources.”

Renewable energy resources and significant opportunities for energy efficiency exist over wide geographical areas, in contrast to other energy sources, which are concentrated in a limited number of countries. Rapid deployment of renewable energy and energy efficiency, and technological diversification of energy sources, would result in significant energy security and economic benefits. It would also reduce environmental pollution such as air pollution caused by burning of fossil fuels and improve public health, reduce premature mortalities due to pollution and save associated health costs that amount to several 100 billion dollars annually only in the USA. Renewable energy sources, that derive their energy from the sun, either directly or indirectly, such as hydro and wind, are expected to be capable of supplying humanity energy for almost another 1 billion years, at which point the predicted increase in heat from the sun is expected to make the surface of the earth too hot for liquid water to exist.

Climate change and global warming concerns, coupled with high oil prices, peak oil, and increasing government support, are driving increasing renewable energy legislation, incentives and commercialization. New government spending, regulation and policies helped the industry weather the global financial crisis better than many other sectors. According to a 2011 projection by the International Energy Agency, solar power generators may produce most of the world's electricity within 50 years, reducing the emissions of greenhouse gases that harm the environment.

As of 2011, small solar PV systems provide electricity to a few million households, and micro-hydro configured into mini-grids serves many more. Over 44 million households use biogas made in household-scale digesters for lighting and/or cooking and more than 166 million households rely on a new generation of more-efficient biomass cook stoves. United Nations' Secretary-General Ban Ki-moon has said that renewable energy has the ability to lift the poorest nations to new levels of prosperity. At the national level, at least 30 nations around the world already have renewable energy contributing more than 20% of energy supply. National renewable energy markets are projected to continue to grow strongly in the coming decade and beyond, and some 120 countries have various policy targets for longer-term shares of renewable energy, including a 20% target of all electricity generated for the European Union by 2020. Some countries have much higher long-term policy targets of up to 100% renewables. Outside Europe, a diverse group of 20 or more other countries target renewable energy shares in the 2020–2030 time frame that range from 10% to 50%.

Renewable energy often displaces conventional fuels in the areas: electricity generation, hot water/space heating and transportation:

Power generation

Renewable hydroelectric energy provides 16.3% of the world’s electricity. When hydroelectric is combined with other renewables such as wind, geothermal, solar, biomass and waste: together they make the "renewables" total, 21.7% of electricity generation worldwide as of 2013. Renewable power generators are spread across many countries, and wind power alone already provides a significant share of electricity in some areas: for example, 14% in the U.S. state of Iowa, 40% in the northern German state of Schleswig-Holstein, and 49% in Denmark. Some countries get most of their power from renewables, including Iceland (100%), Norway (98%), Brazil (86%), Austria (62%), New Zealand (65%), and Sweden (54%).

Heating

Solar water heating makes an important contribution to renewable heat in many countries, most notably in China, which now has 70% of the global total (180 GWth). Most of these systems are installed on multi-family apartment buildings and meet a portion of the hot water needs of an estimated 50–60 million households in China. Worldwide, total installed solar water heating systems meet a portion of the water heating needs of over 70 million households. The use of biomass for heating continues to grow as well. In Sweden, national use of biomass energy has surpassed that of oil. Direct geothermal for heating is also growing rapidly. The newest addition to Heating is from Geothermal Heat Pumps which provide both heating and cooling, and also flatten the electric demand curve and are thus an increasing national priority.

Transportation

Renewable biofuels have contributed to a significant decline in oil consumption in the United States since 2006. U.S. oil use fell 8.5% from 2005 to 2014. The 93 billion liters of biofuels produced worldwide in 2009 displaced the equivalent of an estimated 68 billion liters of gasoline, equal to about 5% of world gasoline production.