In 2004, the German government introduced the first large-scale feed-in tariff system, under the German Renewable Energy Act, which resulted in explosive growth of PV installations in Germany. At the outset the FIT was over 3x the retail price or 8x the industrial price. The principle behind the German system is a 20-year flat rate contract. The value of new contracts is programmed to decrease each year, in order to encourage the industry to pass on lower costs to the end users. The programme has been more successful than expected with over 1GW installed in 2006, and political pressure is mounting to decrease the tariff to lessen the future burden on consumers.
A 2014-published life-cycle analysis of land use for various sources of electricity concluded that the large-scale implementation of solar and wind potentially reduces pollution-related environmental impacts. The study found that the land-use footprint, given in square meter-years per megawatt-hour (m2a/MWh), was lowest for wind, natural gas and rooftop PV, with 0.26, 0.49 and 0.59, respectively, and followed by utility-scale solar PV with 7.9. For CSP, the footprint was 9 and 14, using parabolic troughs and solar towers, respectively. The largest footprint had coal-fired power plants with 18 m2a/MWh.
Solar and wind are Intermittent energy sources that supply electricity 10-40% of the time. To compensate for this characteristic, it is common to pair their production with already existing hydroelectricity or natural gas generation. In regions where this isn't available, wind and solar can be paired with significantly more expensive pumped-storage hydroelectricity.
Renewable electricity production, from sources such as wind power and solar power, is sometimes criticized for being variable or intermittent, but is not true for concentrated solar, geothermal and biofuels, that have continuity. In any case, the International Energy Agency has stated that deployment of renewable technologies usually increases the diversity of electricity sources and, through local generation, contributes to the flexibility of the system and its resistance to central shocks.
Additions of small amount (0.5 weight %) of nanoreinforcement (carbon nanotubes or nanoclay in the polymer matrix of composites, fiber sizing or interlaminar layers can allow to increase the fatigue resistance, shear or compressive strength as well as fracture toughness of the composites by 30–80%. Research has also shown that the incorporation of small amount of carbon nanotubes/CNT can increase the lifetime up to 1500%.
The primary obstacle that is preventing the large scale implementation of solar powered energy generation is the inefficiency of current solar technology. Currently, photovoltaic (PV) panels only have the ability to convert around 24% of the sunlight that hits them into electricity. At this rate, solar energy still holds many challenges for widespread implementation, but steady progress has been made in reducing manufacturing cost and increasing photovoltaic efficiency. Both Sandia National Laboratories and the National Renewable Energy Laboratory (NREL), have heavily funded solar research programs. The NREL solar program has a budget of around $75 million  and develops research projects in the areas of photovoltaic (PV) technology, solar thermal energy, and solar radiation. The budget for Sandia’s solar division is unknown, however it accounts for a significant percentage of the laboratory’s $2.4 billion budget. Several academic programs have focused on solar research in recent years. The Solar Energy Research Center (SERC) at University of North Carolina (UNC) has the sole purpose of developing cost effective solar technology. In 2008, researchers at Massachusetts Institute of Technology (MIT) developed a method to store solar energy by using it to produce hydrogen fuel from water. Such research is targeted at addressing the obstacle that solar development faces of storing energy for use during nighttime hours when the sun is not shining. In February 2012, North Carolina-based Semprius Inc., a solar development company backed by German corporation Siemens, announced that they had developed the world’s most efficient solar panel. The company claims that the prototype converts 33.9% of the sunlight that hits it to electricity, more than double the previous high-end conversion rate. Major projects on artificial photosynthesis or solar fuels are also under way in many developed nations.
While many renewable energy projects are large-scale, renewable technologies are also suited to rural and remote areas and developing countries, where energy is often crucial in human development. Former United Nations Secretary-General Ban Ki-moon has said that renewable energy has the ability to lift the poorest nations to new levels of prosperity. As most of renewables provide electricity, renewable energy deployment is often applied in conjunction with further electrification, which has several benefits: Electricity can be converted to heat (where necessary generating higher temperatures than fossil fuels), can be converted into mechanical energy with high efficiency and is clean at the point of consumption. In addition to that electrification with renewable energy is much more efficient and therefore leads to a significant reduction in primary energy requirements, because most renewables don't have a steam cycle with high losses (fossil power plants usually have losses of 40 to 65%).
There are potentially two sources of nuclear power. Fission is used in all current nuclear power plants. Fusion is the reaction that exists in stars, including the sun, and remains impractical for use on Earth, as fusion reactors are not yet available. However nuclear power is controversial politically and scientifically due to concerns about radioactive waste disposal, safety, the risks of a severe accident, and technical and economical problems in dismantling of old power plants.
Geothermal energy is produced by tapping into the thermal energy created and stored within the earth. It arises from the radioactive decay of an isotope of potassium and other elements found in the Earth's crust. Geothermal energy can be obtained by drilling into the ground, very similar to oil exploration, and then it is carried by a heat-transfer fluid (e.g. water, brine or steam). Geothermal systems that are mainly dominated by water have the potential to provide greater benefits to the system and will generate more power. Within these liquid-dominated systems, there are possible concerns of subsidence and contamination of ground-water resources. Therefore, protection of ground-water resources is necessary in these systems. This means that careful reservoir production and engineering is necessary in liquid-dominated geothermal reservoir systems. Geothermal energy is considered sustainable because that thermal energy is constantly replenished. However, the science of geothermal energy generation is still young and developing economic viability. Several entities, such as the National Renewable Energy Laboratory and Sandia National Laboratories are conducting research toward the goal of establishing a proven science around geothermal energy. The International Centre for Geothermal Research (IGC), a German geosciences research organization, is largely focused on geothermal energy development research.
Renewable energy technology has sometimes been seen as a costly luxury item by critics, and affordable only in the affluent developed world. This erroneous view has persisted for many years, but 2015 was the first year when investment in non-hydro renewables, was higher in developing countries, with $156 billion invested, mainly in China, India, and Brazil.
Using 100% renewable energy was first suggested in a Science paper published in 1975 by Danish physicist Bent Sørensen. It was followed by several other proposals, until in 1998 the first detailed analysis of scenarios with very high shares of renewables were published. These were followed by the first detailed 100% scenarios. In 2006 a PhD thesis was published by Czisch in which it was shown that in a 100% renewable scenario energy supply could match demand in every hour of the year in Europe and North Africa. In the same year Danish Energy professor Henrik Lund published a first paper in which he addresses the optimal combination of renewables, which was followed by several other papers on the transition to 100% renewable energy in Denmark. Since then Lund has been publishing several papers on 100% renewable energy. After 2009 publications began to rise steeply, covering 100% scenarios for countries in Europe, America, Australia and other parts of the world.
With advanced technology being developed, cellulosic biomass, such as trees and grasses, are also used as feedstocks for ethanol production. Ethanol can be used as a fuel for vehicles in its pure form, but it is usually used as a gasoline additive to increase octane and improve vehicle emissions. Bioethanol is widely used in the United States and in Brazil. The energy costs for producing bio-ethanol are almost equal to, the energy yields from bio-ethanol. However, according to the European Environment Agency, biofuels do not address global warming concerns. Biodiesel is made from vegetable oils, animal fats or recycled greases. It can be used as a fuel for vehicles in its pure form, or more commonly as a diesel additive to reduce levels of particulates, carbon monoxide, and hydrocarbons from diesel-powered vehicles. Biodiesel is produced from oils or fats using transesterification and is the most common biofuel in Europe. Biofuels provided 2.7% of the world's transport fuel in 2010.
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A photovoltaic system converts light into electrical direct current (DC) by taking advantage of the photoelectric effect. Solar PV has turned into a multi-billion, fast-growing industry, continues to improve its cost-effectiveness, and has the most potential of any renewable technologies together with CSP. Concentrated solar power (CSP) systems use lenses or mirrors and tracking systems to focus a large area of sunlight into a small beam. Commercial concentrated solar power plants were first developed in the 1980s. CSP-Stirling has by far the highest efficiency among all solar energy technologies.
A few localities have exploited the attention-getting nature of wind turbines by placing them on public display, either with visitor centers around their bases, or with viewing areas farther away. The wind turbines are generally of conventional horizontal-axis, three-bladed design, and generate power to feed electrical grids, but they also serve the unconventional roles of technology demonstration, public relations, and education.
Concentrated solar power plants may use thermal storage to store solar energy, such as in high-temperature molten salts. These salts are an effective storage medium because they are low-cost, have a high specific heat capacity, and can deliver heat at temperatures compatible with conventional power systems. This method of energy storage is used, for example, by the Solar Two power station, allowing it to store 1.44 TJ in its 68 m³ storage tank, enough to provide full output for close to 39 hours, with an efficiency of about 99%.
Grid parity, the point at which the cost of photovoltaic electricity is equal to or cheaper than the price of grid power, is more easily achieved in areas with abundant sun and high costs for electricity such as in California and Japan. In 2008, The levelized cost of electricity for solar PV was $0.25/kWh or less in most of the OECD countries. By late 2011, the fully loaded cost was predicted to fall below $0.15/kWh for most of the OECD and to reach $0.10/kWh in sunnier regions. These cost levels are driving three emerging trends: vertical integration of the supply chain, origination of power purchase agreements (PPAs) by solar power companies, and unexpected risk for traditional power generation companies, grid operators and wind turbine manufacturers.[dead link]
A solar power tower uses an array of tracking reflectors (heliostats) to concentrate light on a central receiver atop a tower. Power towers can achieve higher (thermal-to-electricity conversion) efficiency than linear tracking CSP schemes and better energy storage capability than dish stirling technologies. The PS10 Solar Power Plant and PS20 solar power plant are examples of this technology.