Energy Policy

Introduction to Energy Policy

Nowadays, climate change is a unique challenge for all human beings all around the world and one of the critical components which can help to address the severe impacts of climate change is how eco-friendly the energy policy is drafted to support eco-friendly energy sources. While the shift toward renewable energy is fast growing, shaping energy policy to support its production and consumption has come with some complexity which is important for industry, policymakers, and governments for their informed decision-making and strategic planning to address this complexity. Hence, this section aims to provide background information about renewable energy for the purpose of forming policy discussion on renewable energy, energy efficiency, and their role on addressing the impact of climate change.

Finding smart solutions to reduce our reliance on fossil fuels and cut GHG emissions are the main goals of energy policy through supporting the use of wind, solar, hydro, bioenergy, and other renewable sources. These types of policies not only protect the environment but also enhance our energy security. It's a crucial step forward in creating a more sustainable and cleaner future for all.

Key Aspects of Renewable Energy Policy:

• Financial mechanisms such as grants, feed-in-tariffs and tax credits to encourage investment in renewable energy technologies

• Legislation and Regulations approving targets for GHGs emission reduction and adoption of renewable energy.

• Supporting innovation and technology development in renewable energy and energy efficiency. 

Focus Area

• To replace fossil fuel, energy policy’s main objective is to support renewable energy and this replacement is driven by the need to mitigate climate change and reduce the impact of energy production on the environment. Energy policy proposes mandates and incentives to increase the share of renewables in the energy mix​.

• Finding opportunities to reduce the amount of energy required for goods and services is the main objective of energy efficiency measures. These measures are standards for energy-saving initiatives, buildings and appliances, and programs to improve industrial and residential energy efficiency performances.

• Tracking climate change is a principal objective of energy policy and to reduce GHG emissions in order to comply with international agreements (e.g. Paris Agreement), energy policy supports the use of renewable energy.  

• Renewable energy initiatives promote sustainability. This includes encouraging the use of renewable natural resources, such as sunlight and wind. These initiatives reduces environmental impact and maintains a long-term sustainable environment.

• Renewable energy saves energy cost, creates considerable job opportunities, and ensure energy security for all. Although the upfront costs of renewable energy projects might be higher than fossil fuel projects, their long-term benefits are incredible. This includes reduction of operational costs, decrease of dependences on importing fuels, and the creation of new job opportunities. Therefore, energy policy strives to balance these economic considerations while respecting environmental and social objectives​.

• Technology progress is crucial to realize the policy target in renewable energy. Although renewable energy has already been competitive or even beat fossil fuel based generation (due to the dramatic progress in wind turbines, solar panels and energy storage etc.). However, it is not yet mature which calls for R&D investment to increase cost-competitiveness, efficiency and reliability.

Renewable energy policy plays an important role progress sustainable development and to mitigate the impact of climate change. So far Europe has been leading green innovation and can maintain its leadership position in the shift towards a sustainable energy future by several means such as utilizing incentives, promoting innovation, enforcing strict regulations, and fostering international collaboration.