Why Renewable Energy isn’t Displacing Fossil Fuel Fast Enough

Although wind and solar electricity generation has become more affordable than coal or natural gas across most markets, regulatory and financial obstacles prevent faster transition. Renewables supplied over 90% of generating capacity additions worldwide during 2024, but challenges such as permitting delays and limited access to capital access have resulted in slow adoption, especially in rapidly industrializing nations where energy demand grows fastest.

Mature renewable technologies have made using clean energy to generate utility scale cheaper than using natural gas and coal, providing sustained economic advantages over fossil alternatives which require continuous fuel purchases.

In 2024, renewable energy installations prevented $467 billion in fuel purchases globally. Renewables reached 46% of worldwide installed capacity by year’s end following the addition of 585 gigawatts of new renewable capacity. This is approximately three times Texas’s entire generating infrastructure added in just a single year.

Public health concerns reinforce the economic arguments for accelerating the global transition from fossil fuels to renewables. Pollution emissions from coal, oil, and gas combustion cause roughly 5 million annual deaths globally from respiratory and cardiovascular impacts. Home natural gas appliances release benzene during operation, creating carcinogen exposure in some residences that can match levels seen in secondhand tobacco smoke environments. Research also associates gas cooking appliances with 12.7% of childhood asthma diagnoses in the United States.

Furthermore, fossil fuel combustion generates atmospheric greenhouse gases that trap heat, elevating temperatures and intensifying health challenges including heat stress, respiratory conditions, and disease transmission patterns. Despite the key role fossil fuels like coal, natural gas, and oil have played in industrialization, they have a detrimental effect on both public health and the ecosystems we rely on.

But regulatory barriers still persist across developed nations even though the need to transition to renewables is immediate. Energy projects in the United States average 4.5 years due to slow permitting processes, while transmission infrastructure approvals frequently extend beyond a decade. Solar developments dominate planned capacity additions but encounter these protracted timelines, and bipartisan 2024 federal legislation designed to streamline permitting procedures has stalled in Congress.

Developing economies face substantially steeper challenges beyond the typically slow regulatory procedures seen in the U.S. According to International Energy Agency projections, emerging markets will generate 85% of global electricity demand growth through 2027 yet renewable construction in the global south still lags behind fossil fuel adoption. This is largely due to limited capital financing for green energy projects. Renewable projects often require significant capital during their initial construction phases, but operational savings gradually accumulate over decades as fuel requirements disappear.

Financial institutions often impose higher interest rates for renewable projects in developing nations due to higher lender risk, and weaker government backing mechanisms. To ensure equitable access to capital for renewable energy development in developing nations, governments and development institutions can stabilize energy policies, deploy public funds to cover risk portions, or provide lender insurance that substantially lowers borrowing costs.

Transition technologies like those commercialized by companies like EverGen Infrastructure Corp. (TSX.V: EVGN) (OTCQX: EVGIF) can help in curtailing emissions as measures are instituted to accelerate the adoption of renewable energy in different markets.

About GreenEnergyStocks

GreenEnergyStocks (“GES”) is a specialized communications platform with a focus on companies working to shape the future of the green economy. GreenEnergyStocks is one of 70+ brands within the Dynamic Brand Portfolio @ IBN that delivers: (1) access to a vast network of wire solutions via InvestorWire to efficiently and effectively reach a myriad of target markets, demographics and diverse industries; (2) article and editorial syndication to 5,000+ outlets; (3) enhanced press release enhancement to ensure maximum impact; (4) social media distribution via IBN to millions of social media followers; and (5) a full array of tailored corporate communications solutions. With broad reach and a seasoned team of contributing journalists and writers, GES is uniquely positioned to best serve private and public companies that want to reach a wide audience of investors, influencers, consumers, journalists, and the general public. By cutting through the overload of information in today’s market, GES brings its clients unparalleled recognition and brand awareness. GES is where breaking news, insightful content and actionable information converge.

To receive SMS alerts from GreenEnergyStocks, text “Green” to 888-902-4192 (U.S. Mobile Phones Only)

For more information, please visit https://www.GreenEnergyStocks.com

Please see full terms of use and disclaimers on the GreenEnergyStocks website applicable to all content provided by GES, wherever published or re-published: https://www.greennrgstocks.com/Disclaimer

GreenEnergyStocks
Los Angeles, CA
www.GreenEnergyStocks.com
310.299.1717 Office
Editor@GreenEnergyStocks.com

GreenEnergyStocks is powered by IBN