The Context of Renewable Energy Promotion
To put the promotion of renewables into context, this chapter starts with a discussion of the three key drivers of an increased use of renewable energy technologies, showing why it is justified to argue that renewables will continue to gain in importance in the years and decades to come: (a) rising energy demand, (b) the limits of fossil fuels and (c) climate change. The current slump in global economic activity also led to a reduction in global demand and resulted in lower prices for fossil fuels. However, this does not alter the long-term trend of rising energy demand from developing as well as developed countries. It might still slow the transformation of the energy system, since lower fossil fuel prices also reduce the relative price-competitiveness of renewable energy sources.
KeywordsRenewable Energy External Cost Generation Cost International Energy Agency Renewable Energy Technology
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