kathimerini.gr
Slowdown in Global Renewable Energy Investment
Global renewable energy investment growth slowed to 10.7% in 2024, down from an average of 20% since 2020, due to rising costs, grid constraints, and the high profitability of fossil fuels, impacting projects such as the cancelled Hornsea 4 wind farm; China remains an exception, increasing investment by 20%.
- How are rising material costs, grid limitations, and the continued high demand for fossil fuels impacting the financial viability of renewable energy investments?
- This downturn is driven by multiple factors, including rising material costs, interest rate uncertainty, supply chain issues, and grid limitations causing energy curtailment, where excess renewable energy is wasted. The situation is exacerbated by the continued high demand for fossil fuels, pushing investment away from RES and towards higher-profit oil and gas extraction. Even China, a major RES investor, only saw a 20% increase, significantly below previous growth rates.
- What are the primary factors driving the recent slowdown in global investment in renewable energy sources, and what are the immediate consequences for large-scale projects?
- Global investment in renewable energy sources (RES) has significantly slowed in the last 18 months, with even major oil companies like Shell, BP, and TotalEnergies reducing their RES investments due to lower-than-expected returns compared to fossil fuels. This shift is impacting large-scale offshore wind projects most severely, leading to project cancellations like the Hornsea 4 in the UK.
- What are the long-term implications of insufficient investment in energy storage and grid infrastructure for the global transition to renewable energy, and what policy changes are needed to ensure the continued growth of RES?
- The lack of sufficient investment in energy storage and grid infrastructure undermines the long-term viability of RES. The absence of compensation for curtailed energy further discourages investment. Unless there is significant progress in electrifying heating, transportation, and industry, and substantial investment in energy storage, renewable energy sources will remain insufficient for a full energy transition. The economic and political climate, exemplified by the US withdrawal from the Paris Agreement, also contributes to this trend.
Cognitive Concepts
Framing Bias
The article frames the narrative around a significant downturn in renewable energy investment, emphasizing the challenges and setbacks. While presenting factual data, the choice of focusing on negative trends and the 'wave of divestment' creates a pessimistic outlook. The headline (if there was one, which isn't included here) likely further reinforces this negativity. The introduction of large oil companies' actions early in the text sets a negative tone.
Language Bias
The language used is largely neutral and factual, relying on data and statistics. However, phrases like 'wave of divestment,' 'challenges and setbacks,' and 'pessimistic outlook' subtly contribute to a negative tone. The repeated use of terms highlighting negative trends reinforces this bias. While the article uses precise figures, the overall framing leans towards a more negative interpretation of the situation.
Bias by Omission
The article focuses heavily on the economic and technical challenges facing renewable energy investment, but omits discussion of potential solutions or alternative approaches. While acknowledging the political climate's influence, it doesn't delve into specific policy changes that could incentivize investment or address grid infrastructure limitations. The lack of discussion regarding technological advancements that could mitigate some of the mentioned challenges is also noteworthy. For example, improved energy storage solutions are briefly mentioned but not explored in detail. This omission limits the reader's ability to fully grasp the complexities of the situation and consider the range of possible outcomes.
False Dichotomy
The article presents a somewhat simplistic eitheor scenario: either renewable energy investment continues robustly, or it stagnates. It doesn't fully explore the possibility of a more nuanced scenario involving a restructuring of the market with revised investment strategies and technological advancements. The phrasing 'either…or' in the concluding paragraph implicitly suggests this false dichotomy.
Sustainable Development Goals
The article highlights a slowdown in investments in renewable energy sources (RES), citing rising material costs, interest rate uncertainty, supply chain issues, and grid limitations. Major oil companies are reducing their RES investments due to lower returns compared to fossil fuels, and the transition to green energy hasn't yielded expected CO2 emission reductions. This indicates a setback in efforts to expand access to affordable and clean energy globally.