The speed at which the electricity sector can be decarbonized and grow to satisfy increasing demand will critically influence our ability to limit global warming to 1.5°C. Renewable energy is the main lever to decarbonize electricity consumption. Today, renewables are reliable and cost-competitive compared to conventional generation sources. REscale brings together leading companies representing the full renewable energy value chain to accelerate deployment of renewables and the transition to a low-carbon electricity system.
While renewable generation accounted for 26.5% of global electricity production in 2017, we need to move faster. The main challenges are accessing new finance instruments, ensuring bankability and improving the integration of growing proportions of renewables into grids and electricity markets.
The costs of renewable technologies have decreased 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 electricity demand grows, building and operating renewable projects is a profitable and sustainable business model for investors, developers, utilities and consumers alike.
REscale members share the ambition to scale up renewable deployment beyond average growth to achieve 3.5 terawatts of capacity by 2025. REscale has four 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.