Historically, the transition from one energy system to another, as from wood to coal or coal to oil, has proven an enormously complicated process, requiring decades to complete. In similar fashion, it will undoubtedly be many years before renewable forms of energy—wind, solar, tidal, geothermal, and others still in development—replace fossil fuels as the world’s leading energy providers. Nonetheless, 2015 can be viewed as the year in which the epochal transition from one set of fuels to another took off, with renewables making such significant strides that, for the first time in centuries, the beginning of the end of the Fossil Fuel Era has come into sight.
This shift will take place no matter how well or poorly the deal just achieved at the UN climate summit in Paris is carried out. Although a robust commitment by participating nations to curb future carbon emissions will certainly help speed the transition, the necessary preconditions—political will, investment capital, and technological momentum—are already in place to drive the renewable revolution forward. Lending a hand to this transformation will be a sharp and continuing reduction in the cost of renewable energy, making it increasingly competitive with fossil fuels. According to the Paris-based International Energy Agency (IEA), between now and 2040 global investments in renewable power capacity will total $7 trillion, accounting for 60 percent of all power-plant investment.
Fossil fuels will not, of course, disappear during this period. Too much existing infrastructure—refineries, distribution networks, transportation systems, power plants, and the like—are dependent on oil, coal, and natural gas, which means, unfortunately, that these fuels will continue to play a prominent role for decades. But the primary thrust of new policies, new investment, and new technology will be in the advancement of renewables.
Two events on the periphery of the Paris climate summit were especially noteworthy in terms of the renewable revolution: the announcement of an International Solar Alliance by India and France, and the launching of the Breakthrough Energy Coalition by Bill Gates of Microsoft, Jeff Bezos of Amazon, and a host of other billionaires.
As described by Indian Prime Minister Narendra Modi, the International Solar Alliance is meant to mobilize private and public funds for the development and installation of affordable solar systems on a global scale, especially in developing countries. “We intend making joint efforts through innovative policies, projects, programs, capacity-building measures, and financial instruments to mobilize more than 1,000 billion US dollars of investments that are needed by 2030 for the massive deployment of affordable solar energy,” Modi and French President François Hollande indicated in a joint statement on November 30.