At present, the importance and potential of renewable energy to power a sustainable future can’t be overstated. A great deal of this success is due to the essential role of Policy & Regulations in championing the cause of green energy. This article seeks to unpack the relationship between policy and regulation, and how they work together to advance renewable energy technologies.
Renewable energy technologies, like most emerging technologies, require supportive policies to promote research and development, drive growth and usage, and attract sufficient investment capital to thrive. Without proper regulations and policies, the interplay between economic, social and environmental factors can make the renewable energy sector vulnerable to market uncertainties, retarding its growth and uptake.
– Anonymous
The Different Forms of Policy & Regulations:
- Feed-in Tariffs (FiTs) and Power Purchase Agreements (PPAs): Policies that offer long-term contracts to renewable energy producers to provide security and certainty of a steady income stream for their power generation.
- R&D investments: Policies that foster and promote research and development of renewable technologies to help researchers overcome the technical limitations of current methods.
- Regulatory mandates and targets: These set the roadmap for renewable energy. They provide a clear signal to stakeholders about the government’s commitment and aspirations regarding renewable energy usage.
Why Policy Matters in Renewable Energy
Policies play a crucial role in making renewable energy technologies more competitive. In many countries, these policies appear in the form of tax incentives, subsidy programs, and energy portfolio standards.
For instance, tax benefits given to individuals or companies who invest in renewable energy infrastructure can help reduce the cost of installing and operating renewable energy systems. In turn, this helps make renewable energy more affordable for consumers and boosts its acceptance in society.
Regulations: A Companion to Policy
While policy drives the high-level direction and aspirations for renewable energy, regulations are the practical applications of these policies. They provide the how-to, the mechanism for translating policy objectives into definite actions on the ground.
The establishment of regulatory bodies fosters the evolution of renewable energy by setting specific frameworks that guide renewable energy projects and address any potential legal or financial issues. In some cases, regulations are implemented to provide a level playing field, ensuring traditional energy sectors do not monopolize the energy market, and renewable energy suppliers have equal opportunities.
In conclusion, policy and regulation carry a significant role in advancing renewable energy technologies. It’s more than evident that the more robust the policy & regulatory environment, the more the green energy sector stands to benefit.
