Strategic Analysis of the Renewable Electricity Transition: Power to the World without Carbon Emissions?

Abstract

This paper explores the role of electricity in the transition to renewable energy to mitigate climate change. A systematic literature review with the Scopus database identified 92 papers relevant to the renewable electricity transition. A PESTLE (Political, Economic, Sociological, Technological, Legal, and Environmental) review of the papers provided a multidisciplinary analysis. The Paris Agreement created a global movement for carbon neutrality to address the threats of climate change, calling for a transition to renewable electricity to lead the way and expand into new sectors and regions. Although smaller renewable technologies are ramping up, complexities thwarting the transition include locked-in assets, high upfront costs, variability of solar and wind energy, infrastructure, difficulty in decarbonizing transportation and industry, material resource constraints, and fossil fuel support. This research found that renewables are not replacing fossil fuels to date but adding further energy demands, so that greenhouse gas emissions rose in 2021 despite an increased renewable electricity share. Without a major shift in the trillions of dollars of subsidies and investment away from fossil fuels to renewables, catastrophic climate change is predicted. This paper found that the Paris Agreement’s commitment to net-zero carbon and the transition to renewable electricity are undermined by record-high levels of subsidies and financing for fossil fuel industry expansion. Transitioning to a climate-neutral economy requires an investment away from fossil fuels into renewable energy ecosystems. Renewable electricity provides possibilities to realize sustainable development goals, climate stabilization, job creation, a green economy, and energy security with careful planning.