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The next decade is one of action. By 2030, investments into renewable energy projects should be doubled from $330 billion to $750 billion to achieve the objectives of energy transition and sustainable development goals, a top decision-maker said in Abu Dhabi. International Renewable Energy Agency (Irena) director-general Francesco La Camera stressed the need for stronger policies and more investment. He noted renewables should be central to energy and economic planning.
The Ministry of Industry and Trade has proposed a new feed-in tariff 32 percent lower than the earlier incentive rate. It wants a fixed rate of 7.09 cents per kWh, down from the 9.35 cents offered to projects completed before June 30 last year, it said in a recent proposal to the government. The new tariff will apply to projects that were begun before November 23 last year and start commercial operations between July 2019 and the end of this year. To be effective for 20 years, it has not accounted for value-added tax and fluctuations in currency exchange rates.
Technological advancements such as increased-capacity wind turbines, floating wind turbines and 3D printing have brought down the overall cost of offshore wind power and opened new offshore locations that were previously inaccessible. These improvements are accelerating the adoption of wind power and driving the global offshore wind turbines market toward monumental growth. The scaling up of investments in the renewable energy sector through national, regional and international climate change-related policies has had an enormous effect on the offshore wind turbine market.
Renewable energy is starting to lose its subsidies because it has proved that it can be as cheap as and even cheaper than fossil fuels. For example, China and the United Kingdom, two of the most ardent supporters of green energy, have recently pulled back on subsidies, and the Trump administration in the United States would also like to. But while wind and solar power rates can cost less than traditional fuels, the subsidies are masking another problem — one that is becoming apparent as the subsidies are eliminated.