Energy Sector Transformation
Driving Advancements in Cleaner Energy
Tremendous technology advancements in renewable energy, energy storage and energy efficiency are driving the transformation of energy and other sectors. As the energy sector is one of the main sources of greenhouse gas emissions, a shift to cleaner and more reliable sources of power will be a critical building block to implementing the Paris Agreement.
Energy Transformation refers to the transition from oil, coal and natural gas for electricity generation to renewable energy and distributed generation (RE DG).
In 2015, CCAP launched its Energy Transformation program to promote the development of distributed energy resources (DER), primarily focused on distributed renewable generation, but also encompassing other distributed technologies that contribute to greater levels of clean energy including smart grids, storage and energy efficiency.
CCAP has been working through research, in-country support and dialogues at the regional and to promote energy transformation at the national and regional level in developed as well as developing countries.
CCAP is working with Pakistan’s Alternative Energy Development Board to accelerate the deployment of distributed generation from renewable energy (DG RE) through a nationally appropriate mitigation action (NAMA).
In collaboration with the Department of Energy (DoE) and the Climate Change Commission, CCAP is working on a nationally appropriate mitigation action (NAMA), to accelerate the uptake of projects under net energy (NEM) regulation.
- The price of solar has fallen 80% in five years, and the cost of wind power has been reduced by nearly half.
- High levels of intermittent RE can be achieved. California has reached 25% renewables capacity (not including large hydro) and is on track for meeting their 33% Renewable Portfolio Standard (RPS) in 2020.
- Other countries have similarly reached high levels of renewables, including Denmark (39%), Portugal (25%) and Spain (21%).
- Global energy investments total $1 trillion a year, with clean energy investments claiming increasing amounts each year.
- Financing for NAMAs has been ramping up, by the GCF and other sources providing an opportunity to fund this transformation away from fossil fuels.
In the coming months, CCAP will be focusing our attention towards enhancing the project pipeline for climate and clean energy investments from the Green Climate Fund and other climate finance institutions.