The Future of Renewable Energy: Top Trends to Watch in 2024

As the world intensifies its efforts to combat climate change, renewable energy continues to emerge as a cornerstone of global energy strategies. This year we are set to witness significant advancements and shifts from technological innovations to regulatory changes! So, we wanted to highlight the top trends to look out for this year when it comes to renewable energy. 

1. Technological Advancements

a. Enhanced Solar Photovoltaic Efficiency

Solar technology has seen remarkable progress, with the efficiency rates of solar panels increasing year by year. We can expect further breakthroughs in solar photovoltaic (PV) technology, particularly with the development of tandem and bifacial solar cells. These advancements promise higher energy yields, lower costs, and broader applications, making solar power more accessible and efficient.

b. Next-Generation Wind Turbines

Wind energy technology is also advancing rapidly. The development of taller, more efficient wind turbines, capable of harnessing wind energy at higher altitudes, is expected to continue. Innovations such as floating offshore wind turbines are gaining traction, enabling the exploitation of wind resources in deeper waters, where wind speeds are generally higher and more consistent.

c. Energy Storage Solutions

The integration of renewable energy into the grid hinges on effective energy storage solutions. Advancements in battery technology, particularly in solid-state batteries and flow batteries, are anticipated to improve energy storage capabilities. These innovations will enhance the reliability and stability of renewable energy sources, enabling better management of supply and demand.

2. Emerging Trends

a. Green Hydrogen

Green hydrogen, produced using renewable energy, is gaining momentum as a versatile and clean energy carrier. Increased investment in green hydrogen infrastructure, along with advancements in electrolysis technology, is expected in the next year. We expect it to be utilized in various sectors, including transportation, industry, and energy storage, thus playing a crucial role in decarbonization efforts.

b. Decentralized Energy Systems

The shift towards decentralized energy systems, such as microgrids and community solar projects, is another significant trend. These systems enhance energy resilience, reduce transmission losses, and empower local communities by providing them with control over their energy sources. Innovations in blockchain technology are also contributing to this trend by enabling transparent and efficient energy trading.

c. Agrivoltaics

Agrivoltaics, the practice of co-locating solar panels and agricultural activities, is gaining attention as a means to optimize land use. This approach allows for the simultaneous production of food and energy, potentially increasing land productivity and providing additional revenue streams for farmers. We expect more pilot projects and research in this area, particularly in regions with high solar irradiance.

3. Regulatory Changes

a. Strengthening Climate Policies

Governments worldwide are increasingly enacting stronger climate policies and renewable energy targets. The European Union’s Green Deal, the U.S. Inflation Reduction Act, and various national policies are expected to drive significant investments in renewable energy. This year, we anticipate more countries to adopt ambitious climate goals, bolstering the renewable energy market.

b. Carbon Pricing Mechanisms

The implementation of carbon pricing mechanisms, such as carbon taxes and cap-and-trade systems, is expected to expand. These mechanisms incentivize the reduction of carbon emissions and make renewable energy sources more competitive. As more regions adopt or enhance carbon pricing policies, renewable energy investments are likely to surge.

4. Global Collaboration and Financing

a. International Partnerships

Global collaboration in renewable energy research, development, and deployment is intensifying. Initiatives such as the International Solar Alliance and Mission Innovation are fostering international cooperation, sharing best practices, and mobilizing resources. In 2024, enhanced global partnerships are expected to accelerate the transition to renewable energy.

b. Sustainable Financing

The financial sector’s role in driving renewable energy projects is becoming increasingly prominent. Green bonds, sustainable investment funds, and public-private partnerships are vital in financing renewable energy infrastructure. In 2024, we anticipate a rise in sustainable finance initiatives, aligning financial flows with climate goals and fostering large-scale renewable energy deployment.

5. Renewable / Alternative Energy Integration 

a. Wind & Solar 

Wind, solar, and, in certain regions, hydroelectric power, along with their integration technologies, will significantly impact the available energy sources as renewable and low-carbon technologies continue to penetrate the grid, reducing our dependence on coal and natural gas. 

b. Electric Vehicles and Vehicle-to-Grid Integration 

Electric vehicles (EVs) and vehicle-to-grid (V2G) integration are emerging as crucial components of the sustainable energy landscape. Over the past two decades, traditional internal combustion engines have been identified as major contributors to greenhouse gas emissions, prompting both consumers and regulatory bodies to demand coordinated sustainability initiatives from the automotive industry. In response, manufacturers have been expanding their fleets to include electric and hybrid-electric vehicles. Although the growth rate of EV sales has slowed, their market share continues to rise, reaching 7.6 percent of the overall market in 2023.

As the number of EV users increases, the adoption of V2G charging options will also grow. V2G technology allows electricity stored in an electric vehicle's battery to be transferred back to the grid, making effective management of this integration increasingly important. Focus will be placed on developing new integration technologies and standards to handle fast-charging loads and to optimize charging times. These factors are critical to maintaining the stability and efficiency of the overall energy system.

6. The Grid 

a. New Transmission Line Technologies

Improving production, transmission, distribution, storage, and maintenance, including transmission line technology, is crucial for ongoing infrastructure hardening in preparation for extreme weather conditions and unprecedented natural disasters.

Advancements in transmission line technology, particularly with the increased integration of grid-forming inverters (GFIs), will have the most significant impact. Traditional grid-following inverters (GFIs) depend on synchronous generators to provide a reference frequency, which can be unavailable during outages. In contrast, GFIs control their own frequency output, enabling them to naturally support local frequency and share a portion of the load change. As alternative energy sources become more prevalent, grid operators will need to incorporate GFIs and other inverter-based resources (IBRs) to manage outages and independently restart the grid. GFIs can maintain system stability even in the absence of synchronous machines, making them a potentially groundbreaking technology.

b. Grid Modernization Policies

To accommodate the increasing share of renewables, grid modernization is essential. Policies promoting the development of smart grids, capable of handling variable renewable energy inputs and improving grid resilience, are expected to gain traction. Investments in grid infrastructure, including digitalization and cybersecurity, will be pivotal in ensuring a stable and efficient energy system.

Conclusion

The future of renewable energy looks promising, driven by technological advancements, emerging trends, and supportive regulatory changes. As the world continues to prioritize sustainability, the renewable energy sector is set to play a pivotal role in shaping a cleaner, greener future. By staying abreast of these trends, stakeholders can better navigate the evolving landscape and contribute to a resilient and sustainable energy system.