What are the three main Regulations Hindering Massive investment in the Renewable Energy Sector?

One of the most troubling issues that affect every part of the globe is climate change. As much as the coronavirus pandemic has affected almost every sector of the economy, one must say that restricted movement has had its own benefits. For instance, it has reduced the global temperatures rise since there are fewer emissions. However, it is only temporary, and according to the Inter-Governmental Panel on Climate Change (IPCC), the temperatures will still rise by 1.5 degrees Celsius by 2030. That comes as a surprise since pledging on dealing with the climate change issue has come from almost every country. One wouldn’t help but wonder why that’s the case.

First of all, such a temperature rise is life-threatening. People within the tropics, both Capricorn and Cancer, will be the most affected, and strong cyclones and rising sea levels could become common. That’s despite the transition towards renewable energy since it is not happening as fast as it should. After all, the burning of fossil fuels is still happening a lot, yet it contributes to climate change the most. On the other hand, developing countries are not embracing the transition to renewable energy despite being economically and physically fit. They often blame their slow adoption because the people advocating for the fight against climate change contributed the most to it, to begin with.

For those willing to invest in renewable energy, the path is not smooth either. First of all, there is a wide array of issues whereby from pricing to ownership, the path is not smooth when dealing with renewable projects. The same case applies land-use and processes leading to the approval.

One of the obstacles to renewable energy investment is the regulatory policy. As much as they are, in most cases great, the regulatory framework drags the approval process for a long time. As for pricing, one would assume that renewable is cheap since they use free natural resources. However, it is relatively expensive than fossil fuels energy when producing energy constantly.

There are also feed-in tariffs despite bringing new markets on board. Governments often tend to be against selling renewable assets to foreigners. As wise as it may sound, it becomes difficult for developing countries to sustain them since they are capital-intensive.

When it comes to approval, renewable projects experience a tough time when looking for approval because they are land-intensive, especially solar farms. So, it is only logical when people in charge of agriculture oppose it. In fact, being near a solar farm or wind turbine is most likely to reduce the value of your home.