A green economy, according to the United Nations environment programme, is one that “results in improved human well-being and social equity, while significantly reducing environmental risks and ecological scarcities”. While seemingly altruistic, the concept is by no means unrealistic. Its viability is substantially improved by innovations in renewable energy, arguably the lifeblood of a sustainable economy.
Today we are experiencing a new energy transition. The numbers speak for themselves: in the year 2000, the total solar photovoltaic (PV) capacity installed globally was about 1.5 gigawatts (GW). Less than 15 years later, one commercial organisation has more than six times that capacity installed worldwide. This revolution is centred on the growing realisation that renewables – and solar in particular – are no longer just a subsidy-enabled option, but are cost-competitive with conventional fuels.
By all indications, it’s reasonable to predict that the share of renewables in the global power generation portfolio will grow exponentially, an encouraging sign for the creation of sustainable economies. The International Energy Agency has predicted that as much as 25 per cent of the world’s gross power generation will come from renewable energy sources by 2018, the obvious by-product being increasingly widespread sustainable energy generation.
As a direct result of renewables beginning to account for even larger portions of energy being produced, we are on our way towards fulfilling two of the three criteria required for a green economy: a low carbon footprint and the efficient use of natural resources. Clean energy, in its role as an enabler of economic growth and development, will serve as a catalyst for the third aspect: employment and social inclusion.
We are already seeing that, driven by economics and unprecedented reliability, countries like the UAE are leading the way with investments in clean energy.
What is significant is that these investments – in the UAE and around the world – are not simply being seen as a means of complying with green legislation. They are being made to address critical energy needs, reinforcing the fact that sunlight has truly come of age as a reliable and affordable energy source, capable of standing shoulder-to-shoulder with conventional power generators.
Stepping back for perspective, however, it’s important to recognise the role that innovation has played – and will continue to play – in carving out a space for renewable energy in the global power generation portfolio and in enabling the creation of green economies.
While the adoption of renewable energy was historically held back by a combination of high costs and low efficiency, today, commercial organisations have succeeded in addressing these challenges, thanks to innovation.
It is no coincidence that innovation is the common thread that runs through the different elements of the green economy: it is innovative thinking, combined with strong leadership, that is required to turn the concept into reality. It is innovation that will help sustainably produce the energy that, in turn, will be a catalyst for growth and development, powering communities and economies; and it is innovation that will drive the creation of opportunities and, therefore, the jobs that will enable greater social inclusion.
While renewable energy will help power the green economy, there is no doubt in my mind that it is innovation that will shape it.
Ahmed S Nada is vice president for the Middle East at First Solar
