Investments in clean energy are a key factor in mitigating climate change and transitioning towards sustainable energy production. The requirements for these investments are diverse and should be examined from multiple perspectives.
A functioning energy system requires integration of various components
From a systems perspective, investments in clean energy require a comprehensive approach that considers the interaction and integration of various components of the energy infrastructure.
For example, renewable energy production needs to be coordinated with energy storage systems and consumption. It is important to ensure that energy production and consumption are balanced across different times and locations.
Additionally, opportunities for developing network infrastructure should be considered, enabling better energy management and resource optimization.
The development of technology aims at cost efficiency and competitiveness
From a technological perspective, investments in clean energy require continuous development and innovation. Technological breakthroughs can improve energy production efficiency, reduce costs, and enhance the competitiveness of clean energy compared to traditional energy sources.
For instance, the development of solar panels and wind turbines has significantly lowered their production costs over the past decades. Furthermore, energy storage technologies such as batteries and heat storages play a crucial role in enabling flexible use of renewable energy and balancing energy reserves.
Additionally, many industrial emission reduction methods, such as hydrogen production, require technology development and demonstration, and there is still uncertainty about which solutions can be commercialized on a large enough scale.
Investments must consider both system and technology uncertainties
For the transition to clean energy, it is crucial to make investments that consider both system and technology uncertainties. The tasks under the first work package of the REPower-CEST project complement broader scenario modelling by examining a wider range of potential development paths and uncertainties. The topics include:
- factors to consider in the development of electricity and gas grids,
- the role of hydropower in the electricity system,
- the potential of geothermal energy and its role in the heating sector,
- technological carbon sinks,
- clean electricity production, storage, transmission, and new consumption,
- fossil-free district heating production and distribution,
- energy use, flexibility, and storage in buildings, industry, and transportation.
VTT Technical Research Centre of Finland is responsible for the content of this page, as part of the REPower-CEST project.