The IPCC’s recently released Fifth Assessment Report makes clear the scientific consensus on the impacts and implications of climate change – and the scope of the challenge cannot be understated.

In the words of the report –

Continued emission of greenhouse gases will cause further warming and long-lasting changes in all components of the climate system, increasing the likelihood of severe, pervasive and irreversible impacts for people and ecosystems. Limiting climate change would require substantial and sustained reductions in greenhouse gas emissions which, together with adaptation, can limit climate change risks.

And indeed the conclusion for the required measures is game-changing:

These pathways [for maintaining global temperature increase within 2 degrees Celsius] would require substantial emissions reductions over the next few decades, and zero emissions of CO2 and other long-lived GHGs over by the end of the century.

The implicit requirement is the elimination of the use of fossil fuels by 2100 (except for carbon capture and storage applications). To achieve this means drastic changes in all walks of life – from how we heat our homes, to what fuels our cars and airplanes, to how many industries operate and manufacture goods, to of course how we generate our electricity.

The power sector’s contribution to global emissions, and therefore to climate change, is well known and estimated to account for 25% of direct emissions in the latest report. At the same time, this contribution to emissions has been one of the important drivers for a shift to renewable sources in many regions; for example the EU target of 20% renewable generation by 2020.

Due to the importance and prominent role that the power sector plays in any economy, from providing energy to industry to powering everyday life in homes, offices and schools, there has been a long-standing tension however between achieving economic or development objectives and climate objectives. That is especially true for emerging economies that are left aggrieved by the injustice of possibly delaying economic growth due to addressing emissions, as well as being disproportionally at risk from the impacts of climate change.  

This is exactly where renewable focused micro-grids can and should play a big and important role. By definition, microgrids operate in a system that can operate completely independently from the main power grid and hence can be built from scratch according to the going (environmental and economic) concerns, as defined by the various stakeholders and system designers. By combining renewable energy solutions of different sources, storage, a system design and even some conventional power methods, it can create an extremely environmentally friendly and cost effective system. In other words, renewable focused micro-grids offer the rare opportunities to serve both development and climate objectives. Given recent advancements and cost reductions in renewable generation and battery technologies (since 2010 the cost has more than halved, from over 1000 USD/kWh effective to approx. 500 USD/kWh effective), renewable-focused microgrids can be cost-effective relative to current diesel generator focused alternatives or relative to investing in grid infrastructure to provide electrification. In regards to emissions, there are many examples of autonomous non-interconnected microgrids operating primarily with renewable generation with certain cases exceeding 90%. Although each site and circumstance is different, as a general approximation renewable generation could cost-effectively supply in the range of 30-60% of the power use for a majority of sites. We have typically seen that wind and solar PV.

Renewable microgrids and distributed renewable generation can empower local communities and businesses in both developed and emerging markets by giving them full control of their power. Power is critical for quality of life and economic growth and having reliable and sustainable local supply that can be relied on for the long-term can have huge impacts on economic growth and quality of life. The technology is available and ready, the costs are competitive (and continuously improving) and the need is clear. What is needed at this stage is a coordination across the layers of stakeholders, multi-lateral organizations to local governments and officials, policy-makers to provide the regulatory and legal frameworks and with financial institutions to fund those initiatives that will whole-heartedly support the deployment of renewable microgrids as a solution to both urgent climate and development needs.