PROBLEM ASSOCIATED WITH THE DEVELOPMENT OF RENEWABLE TECHNOLOGY
The following are the major factors preventing renewable energy from becoming widespread:
- High Capital
Renewable energy development is affected by the huge capital required, transaction costs, economic status, and availability of incentives and subsidies, the average cost to install solar systems is about $2,000 per kilowatt in 2018 for large-scale systems while it cost about $3,700 for residential systems. The new natural gas plant and wind costs around $1,500 per kilowatt.
There are few financial institutes and investor involve in renewable energy, investment in fossil fuels accounts for 55 per cent of 2016 global energy investment, compared with 16 per cent for renewable energy.
The huge capital costs financial institutions to perceive renewables as risky therefore money at higher rates, creating unfair competition with fossil fuel making it hard for an investor to justify the investment. Many producers prefer to keep initial investment costs low while maximising profits, this problem might increase the possibilities of fossil fuel dominating the energy industries in future to come especially in developing countries.
- Technological barriers
Technological barriers have a significant influence on the deployment of renewable energy. Issues like limited availability of infrastructure and inadequate technology to support the development of renewable technology are alarming, common to developing countries, for instance, sub-Saharan African. Even the United State is facing the problem of lack of affordable ways to transmit energy to its consumers
Some developing countries have to import most of the renewable energy technologies, this will definitely increase the cost of the technologies since they are not made locally. Many people would rather go for non-renewable energy because it is afaffordableavailable and reliable compare to renewable energy.
In addition, Renewable energy power plants are mostly placed in remote locations so they require grid integration, therefore they will additional transmission lines to connect to the main grid. Since most of the existing grids are not designed in such a way to integrate with renewable energy.
Energy Storage is the major problem hindering renewable energy to operate on a large scale, larger batteries are needed to be developed to store enough energy in case the renewable energy source fails us. sometimes it can be windier and sometimes we might not have a sunny day, there this kind of instability associated with renewable energy.
- Market Barrier
Over the last few centuries, fossil fuel has dominated the market, it is not easy for renewable energy to penetrate the market due to so many factors such as the high market price of the renewable energy system, many potential buyers cannot afford this new system so they stick to their traditional fossil fuel which is a lot cheaper, readily available and reliable.
Renewable energy is competing with larger industries on all resources such as infrastructure and investment, due to so many factors affecting renewable energy it is not confident enough to succeed the existing traditional source of energy.
In addition, problems like social barriers, reliability misconception on renewable energy, political barrier and geographical barrier are also part of many factors that are affecting the development and adoption of renewable technologies. Many people are reluctant to use the new source of energy, they prefer another source of energy to it mainly because of its affordability whereas it has so many negative effects on humans and our environment itself.