Conceptualizing the Role of Renewables in Determining Energy Security

Introduction

Energy security has emerged as the most significant policy agenda since the OPEC oil embargo of 1973. The formation of a cartel holds considerable relevance in terms of oil prices and production. It also signifies the importance of world politics and the role of geopolitics in governing production and prices. International Energy Agency (IEA) defines energy security as “the uninterrupted availability of energy sources at an affordable price”. Energy security, as defined by IEA, has a long-term dimension of energy security, which deals with investments necessary to supply energy to attain economic development and achieve sustainable environmental needs. Short-term energy security focusses on the ability of an energy system to react to the sudden changes in the supply-demand balance. It is realized that lack of energy security is associated with negative socio-economic impacts such as physical unavailability of energy or volatility of prices.

Energy security can be defined as “the ability of households, businesses and government to accommodate disruptions in supply in energy markets” (Metcalf, 2013). It is also addressed as ‘availability of sufficient supplies at affordable prices, (Yergin, 2006). On the other hand, Sovacool and Mukherjee (2011) proposed that “energy security should comprise five dimensions related to availability, affordability, technology development, sustainability and regulation”.

Brown and Sovacool (2010) defined energy security as “adequate energy supply and affordable prices as well as social and cultural sustainability and environmental preservation”. European Commission described energy security as “uninterrupted physical availability of energy products on the market at an affordable price for all consumers” (Cherp et al., 2012). While International Atomic Energy Agency (IEA) redefines energy security as “adequate, affordable and reliable access to energy fuels and services, it includes the availability of resources, decreasing dependence on imports, decreasing pressures on the environment, competition and market efficiency, reliance on indigenous resources that are environmentally clean and energy services that are affordable and equitably shared”.

With the advent of climate change as the most significant global challenge, The Paris Agreement sets a goal to limit the increase in average temperature below 20C (IRENA, 2018). Addressing the emerging global challenge of Climate Change, energy transition to renewable energy sources is imperative. It brings forth the genesis of energy transition driven by renewable energy sources. The chapter overviews the emerging role of renewables in energy transition across the globe. The energy transition is a consequence of the interplay of various determinants that govern the pathways of the energy transition. In this context, a series of variables affecting the role of renewables have been critically analysed to evaluate the role of renewables. However, renewable energy is highly constraint by its inherent dependency on technology and innovation, which is evolving at a rapid rate making the use of renewable energy more efficiently. Consequently, the countries have adopted Nationally Determined Contributions (NDCs) that differs from country to country, identifying the role of renewable energy in meeting the greenhouse gas emission reduction targets.

Renewable energy capacity has experienced a growth of 8.3% during 2017, increasing approximately 64% of the share of renewable in total installed capacity in Asia in 2017. Wind and Solar share of new capacity increased by 85% in 2017. At the same time, the primary energy demand for each source is consistently rising, with oil experiencing the highest demand among all energy source. However, the share of renewables in power has substantially increased from 1% in 2000 to 8% in 2017 (IRENA). It is observed that the cumulative installed capacity of photovoltaic (PV) power is much higher than the cumulative capacity of wind turbine across the world.