The disadvantages of renewable energy: Navigating the hidden costs

The disadvantages of renewable energy: Navigating the hidden costs

By PreScouter Editorial Team

Does the promise of a greener future come without challenges? Download our Intelligence Brief to discover the lesser-known limitations of renewable energies.

Even as renewable energies grow, their inconsistency is a serious problem. They can harm the power quality of the grid and, paradoxically, even lead to higher carbon emissions due to wasted energy. Despite their green promise, renewables inadvertently highlight the continued need for traditional fossil fuels in power systems. 

This article explores the potential drawbacks of renewable energy, its effect on sectors such as power and infrastructure, and how key challenges can be addressed. 

How important is renewable energy today?

Renewable sources of energy, including wind, solar, and hydropower, have become cornerstones of global energy policies to mitigate climate change. In the last decade, these green energy sources have impressively contributed to 10-20% of the total electricity generation in major economies.

Some countries, such as Norway, obtain 98% of electricity production solely from renewable sources. However, this rapid adoption brings to light significant challenges that could undermine the long-term sustainability and reliability of energy systems.

What are 7 types of renewable energy sources?

There are seven primary types of renewable energy sources that are key to sustainable development. Each of them utilizes natural processes to generate power and offers a cleaner alternative to fossil fuels.

Solar energy

Solar energy, derived from the sun’s radiation, is utilized and converted into electricity using solar power technologies and photovoltaic panels. This energy source is scalable from small homes to large solar farms. Moreover, solar panels can even generate electricity in distant and remote areas.

Hydroelectric energy

Hydroelectric energy, also known as hydroelectric power, uses the flow of water to generate electricity via turbines. These installations are typically located at large dams and utilize the natural descent of water to produce power. Along with providing clean energy, hydroelectric facilities help to stabilize the water supply and control floods. 

Geothermal energy

Geothermal energy taps into the Earth’s internal heat to generate electricity or provide heating. Since this source operates on the principle of tapping into subterranean heat, it remains unaffected by weather conditions. Additionally, geothermal plants require minimal surface land, which makes them highly efficient in terms of space utilization. 

Wind energy

Wind energy converts the natural kinetic energy of wind to generate electricity. By deploying turbines in areas with consistent wind flows, this energy source converts the mechanical movement of turbine blades into electrical energy through a generator. Wind power farms can be situated on land or offshore, which expands their potential reach and impact.

Biomass energy

Biomass energy is produced by burning organic materials like wood and waste. This method is versatile, providing heat, electricity, and fuel for transportation. However, biomass usage can also lead to environmental and sustainability concerns.

Wave energy

Wave energy utilizes the motion of ocean waves to generate power. It is still under development but holds promise due to the vast energy potential of the seas. Wave energy projects are tapping into more efficient ways to capture this power.

Tidal energy

Tidal energy generates power through the rise and fall of sea levels.  It uses underwater turbines that rotate with tidal currents, much like wind turbines. Positioned in coastal areas with strong tidal flows, tidal installations provide a dependable and eco-friendly power source.

The dark side of renewable energy: Unveiling 7 key disadvantages

Renewable energy, often celebrated for its environmental benefits, also has its drawbacks. Here are some of the less-discussed disadvantages of using renewable energy.

Curtailment and stability concerns

The intermittent nature of renewable sources often forces grid operators to reduce output despite available resources. This leads to direct financial losses and indirectly increases carbon emissions. For instance, regions like California and New York have experienced significant curtailment rates.

Substantial up-front costs

Renewable energy comes with substantial initial costs that pose challenges for widespread adoption. Building infrastructure like solar panels and wind turbines requires significant capital investment. According to one estimate, transitioning to 100% renewable energy by 2050 is estimated to cost around $73 trillion. 

Securing the necessary funds to cover these substantial up-front expenses involves a delicate balance of public and private contributions. The cost of capital for such projects varies widely and is influenced by investors’ risk perceptions. Moreover, in developing nations, these costs are elevated due to higher risk premiums and less mature financial markets.

Power quality issues

Fluctuating renewable sources like wind and solar can cause significant power quality issues. It could lead to voltage fluctuations and increased harmonic distortion, damaging sensitive electrical equipment.

Geographical limitations

Geographical limitations restrict where renewable energy technologies can be deployed. Areas with high sunlight exposure are ideal for solar energy, leaving less sunny regions at a disadvantage. Wind energy similarly requires consistent, strong winds, not present in all locations.

The physical geography of a region can impede renewable energy installations. Mountainous areas, protected lands, and densely populated cities challenge the setup of large solar farms or wind turbines. These geographical challenges increase costs for energy transmission and infrastructure needs.

Infrastructure limitations

Existing electrical grids are not designed for high penetration of intermittent energy sources, which can lead to imbalances and stability issues. Addressing this issue requires costly infrastructure upgrades to accommodate renewable sources.

Equipment damage

Inconsistent power supply from renewable sources can lead to frequent equipment malfunctions and damages. This can result in financial strain for both consumers and utilities.

Environmental downsides of renewable energy technologies:

Renewable energy technologies offer many benefits, yet their environmental drawbacks are often overlooked. Here, we explore the major environmental impacts associated with these technologies.

Disrupts wildlife

Renewable energy technologies often lead to habitat disruption and loss, critically impacting local wildlife. Solar farms and wind turbines, for instance, have been associated with the fatalities of birds and bats. These occurrences stem from collisions and the disorientation effects of polarized light that these installations can emit, simulating the appearance of water bodies. This phenemenon is known as “Lake Effect Hypothesis.​” 

The location of renewable energy projects plays a vital role in their environmental impact, particularly in undeveloped and wildlife-abundant regions. Disrupting these untouched habitats can alter land use and provoke behavioral changes among wildlife, such as disrupted migration patterns for birds and aquatic life. 

Increases pollution

The mining processes needed to extract materials such as silicon for solar panels and rare earth metals for wind turbines can lead to water pollution and the destruction of habitats. These activities also deplete local water resources and increase greenhouse gas emissions.

The production processes of renewable technologies contribute further to environmental issues. Making solar panels involves using toxic chemicals that, if mishandled, can result in severe damage to ecosystems. Additionally, disposing of components like wind turbine blades is challenging; they often end up in landfills, contaminating soil and water. 

Is modern infrastructure the solution to challenges of renewable energy?

Modernizing grid infrastructure is paramount to adapting to the high penetration of renewable energy. This includes the deployment of grid-forming inverters. Unlike traditional grid-following systems, they can independently manage voltage and frequency without relying on stable grid input. 

These technologies are crucial in regions experiencing high levels of curtailment of renewable energy and power quality issues. In areas with high renewable integration, such as parts of California, curtailment remains a challenge. Advanced grid-forming inverters can reduce this issue by improving the grid’s ability to absorb fluctuating outputs.

Can energy storage solve the intermittency and curtailment issues?

Energy storage is touted as a critical solution to the intermittency problem of renewables, particularly solar and wind energy. 

Effective storage systems can capture excess energy during peak production periods and release it during demand spikes or low production periods. This helps to balance the grid, save energy, and reduce the need for curtailment. 

The potential for these systems is highlighted by their growing implementation in regions like China and Germany. In these areas, curtailment rates have historically been high. Deploying energy storage in California could have prevented the curtailment of 1.5 million MWh of solar energy annually. This action would correspond to reducing CO2 emissions by about 0.65 Mt each year.

Case study: Addressing equipment failures due to power quality distortions

The problem

A leading industrial manufacturer was incurring a hefty financial bill with on-site equipment repairs for their clients. Previously, their reliable equipment began to fail at an alarming rate. Warranty repairs had increased by an order of magnitude over three years. 

Looking for much-needed answers, the client consulted with one of the “big three.” But, again, no apparent reason was found. Baffled for answers, the client, who was already working with PreScouter on other projects, expressed frustration. And the PreScouter team, as always, was ready to help.

The culprit

Local solar arrays selling energy back to the grid introduced significant total harmonic distortion into the electricity supply.

The solution

The answer to the problem involved installing filters on the affected equipment. This highlighted the necessity of addressing power quality issues to prevent substantial financial and operational losses.

Strategies that could help save millions: 

Here, we explore strategies that can reduce equipment damage and energy waste while utilizing renewable energy sources, potentially saving a substantial amount of costs.

Grid-forming inverters

Grid-forming inverters enable independent voltage regulation, which is crucial for integrating intermittent renewable energies. They maintain grid stability without needing a stable external power supply. Companies like SMA and GE Renewable Energy are the leaders in this technology. 

SMA has implemented these inverters in projects with the Australian Energy Market Operator and with Versorgungsbetriebe Bordesholm in Germany. Their systems help to enhance grid stability and adaptability. 

GE Renewable Energy has applied its flex inverter technology in the Kalyon Yeka Project in Turkey, facilitating reliable renewable energy integration.

Hybrid generation systems

Hybrid generation systems combine renewable energy, storage, and intelligent software to manage and optimize electricity use. These systems mitigate issues like the Duck Curve by storing surplus solar energy and using it during peak demand times. 

Fluence and Siemens are prominent players in this field. Fluence uses AI to enhance asset performance and grid integration, evidenced by their projects in California. Siemens also offers solutions that support dynamic electricity trading and efficient energy management.

Demand-side response programs

Demand-side response programs help balance electricity supply and demand by modifying consumer usage patterns. These programs use intelligent meters and incentives to reduce consumption during peak times. 

EnelX, a leader in this area, offers technologies that manage peak demand and perform energy arbitrage, optimizing cost and consumption. Their collaborations with grid operators like PJM have shown significant savings and enhanced grid reliability through consumer participation.

Digital substations

Digital substations transform traditional analog systems to enhance monitoring and control capabilities. This upgrade supports more responsive grid operations and better data utilization. 

Toshiba leads in digital substation technology. It provides systems that convert analog signals from transformers into digital formats. Through this approach, they help to improve safety and operational efficiency.

The bottom line:

While renewable energy is crucial for achieving sustainability, its integration presents challenges that must be addressed through innovation in energy technology and infrastructural upgrades. The paradoxes of increased carbon emissions and equipment damage due to curtailment require attention. These issues underscore the need for a more robust approach to managing renewable energy.

By investing in modern infrastructure, such as advanced inverters and energy storage, the energy sector can minimize the drawbacks of renewable energy. This will pave the way for a truly sustainable future in the energy sector.

If you have any questions or would like to know if we can help your business with its sustainability challenges, please contact us here or email us at solutions@prescouter.com

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