Firstly, Renewable Energy Development’s major hurdle is the cost of installation, the average cost to install solar systems is about $2,000 per kilowatt for large-scale systems while it cost about $3,700 for residential systems in 2018. Wind and solar power plant required high investment, however, the development of a coal plant requires $6 per megawatt which a lot cheaper than the renewable energy technologies.
There are few financial institutes in business with renewable energy technology likewise the investors too. Many of these investors and financial institutes could not give renewable energy the financial support it deserves, they all perceive renewable energy technology as an unstable business for them, they believed it to be risky.
Therefore, financial institute lends money at a very high rate, at this rate, it’s difficult for an investor to trust the idea of investing in renewable energy technology judging with the unfair competition with fossil fuel. In the year 2016, investment in fossil fuels accounted for 55% per cent of the world’s energy investment in contrast with 16 per cent of renewable energy. In recent years, there is a decline in the costs of renewable energy technology. one of the cheapest renewable energy “offshore wind” is close to being competitive with fossil fuel, Coal plant is 15.8 cents per kilowatt-hour while offshore wind plant cost about $15.8 cents per kilowatt-hour. If all financial institute gives strong to support the same way as China’s, the development of renewable energy technology would have been a lot easier and faster.
Secondly, Technological barrier is a crucial challenge facing the development of renewable energy. There are limited infrastructure and adequate technology available to aid the development of renewable technology, this is usually common to most developing countries. As said earlier, renewable energy is often determined by geographical location, there is no adequate provision of technology to transmit energy. United State is facing the problem of lack of affordable ways to transmit energy to its consumers. Most Developing countries have to import renewable energy technologies in order to provide clean power from a greener source. Technology like renewable energy plants, energy storage like larger batteries, adequate grid transmission that is designed purposely for renewable energy is either not available or efficient enough. For instance, the cost of the battery is upfront you can spend about $10,000 to $25,000 upon installation just for the battery. Not all batteries can last long if it is being used at its full capacity on a daily basis, this difficulty on proper provision for renewable energy instability in terms changes in climate is a major challenge for the development of renewable energy technology since this changes in the weather is uncontrollable by man.
Lastly, most renewable energy plants are collected at a specific geographical source and those that share their energy with the grid often require large areas of space. it takes over 40 hectares of panels to generate about 20 megawatts of energy while a nuclear power plant of average size generates about 1,000 megawatts of energy on 259 hectares. In addition, Some renewable energy sources are not available in some regions, for instance, the idea of using tidal energy in Nebraska is really off, renewable energy sources are often determined by the weather, climate and geographical location which can be discouraging to the users.
Although, Renewable energy sources have a lot of positive contribution such as creating a healthy environment, creation of job opportunity, development of the rural area, fuelling industrial production and transportation despite all its challenges. Renewable energy has been competing with larger industries on all resources such as infrastructure, investment, subsidies, favourable government policy with this renewable energy has managed to be one of the world’s fastest-growing energy, increasing by 2.5 per cent every year though it has not met with the fast-growing demand for power.