Renewable energy is increasingly reliable and cost-competitive compared to conventional sources. Through REscale we bring together leading energy and technology companies to accelerate the deployment of renewables and the transition to a low-carbon electricity system. The speed at which the electricity sector can be decarbonized and grow to satisfy increasing demand will critically influence our ability to limit the rise in global temperatures to under 2°C.
While renewable generation accounted for 26.5% of global electricity production in 2017, considerable acceleration is needed to keep the rise in global temperatures under 2°C. The main challenges are accessing new finance instruments, ensuring bankability, and improving the integration of growing levels of renewables into grids and electricity markets.
The costs of renewable technologies are decreasing to competitive levels while new technological and market advances are helping to overcome variable generation patterns. This makes renewables a profitable investment opportunity. As global energy demand grows, building and operating renewable projects is a prosperous and sustainable business model for developers, IPPs and many utilities alike.
REscale members share the ambition to scale up renewable deployment in line with the International Energy Agency's scenario for a 2°C world: achieving 3.5 terawatts of capacity by 2025. REscale has three action plans:
1. Renewable finance: Facilitate the scale up of finance by exploring new investment vehicles
2. Corporate Renewable PPAs: Increase understanding and use of Corporate Renewable Power Purchase Agreements.
3. Market structures: Facilitate dialogue between private sector and policymakers to integrate renewables into electricity markets
4. Low-Carbon Microgrids: Demonstrate technologies and innovative business models