Blog

Energy Transition: A chance to transition from coal to green energy

While these announcements do show advancement, the actual application of JETPs is the ultimate evaluation of their impact. But, they do offer the possibility, provided that their implementation is based on the right guidelines, to expand the scope of climate financing in the past, since they focus more in the social aspects that are part of the transition to renewable energy and permitting a reduction in the use of fossil fuels.The newly released IISD policy document states that a shift from fossil gas to coal by way of JETPs or any other international public financing, would not be a sustainable and legitimate shift which the JETP model is promoting. Although there is pressure from a few of the JETP nations–and this is that is not completely ruled out in the South African JETP IP and Senegal is determined to develop its gas reserves–to create the transition from gas to bridging but this is technically not necessary and economically unfavorable, as well as risky for the environment.Russia’s conflict in Ukraine has resulted in high prices for gas around the world and is a symbol of the general instability of the gas market. Although South Africa, Indonesia, India and Vietnam are the main sources of their coal consumption domestically, the transition to gas could make their economy vulnerable to the volatility. However, a leapfrogging transition away from straight coal to solar and wind could allow them to utilize their natural resources and provide their citizens with a financially reliable energy source.With the advancements in technology for the field of storage and renewable energy and the huge price reductions in these technologies over the past 10 years renewable energy is becoming competitive in price. In certain markets they are less expensive then fossil gas infrastructure, and the running costs associated with it. Concerns over the variability of supply of renewable energy can be addressed with storage of pumps and, more and more battery storage. These strategies are well-suited to grid balancing because they can be switched off or on in a fraction of a second.Each of the JETP countries have significant solar and wind potential. For instance researchers from the International Renewable Energy Agency found that “realistically, and cost-effectively, South Africa could supply 49% of its electricity mix from renewables by 2030” and Indonesia could achieve the 31% renewable energy target, which is the 2050 date as a target in 2030. Yet, Indonesia would need USD 16 billion of investments during that time to do that.Renewable energy sources can be used to satisfy requirements for access to energy and this remains a concern across all JETP countries, with the one exception: Vietnam. Based on World Bank figures, 36.9 million people within the JETP countries do not have access to electricity. Many of those who are not connected to modern energy reside in rural areas, and this limits the modularity and practicality allow energy projects can be implemented without the need for costly grid extension. This makes solar and wind energy the best choice for providing the energy access requirements which hinder nations’ capacity to realize their full potential.Renewable energy can also bring more positive social impacts than fossil gas. According to the United Nations Industrial Development Organization and the […]