Transitioning to sustainable and clean energy sources is an urgent global imperative to combat climate change and build a greener future. Solar power stands out as a key player in achieving this goal, offering a reliable and renewable energy solution. Governments and international organisations are increasingly recognizing the importance of supportive policies and incentives to drive solar energy adoption and advance SDG 7's vision of affordable and clean energy for all.
As a trusted solar energy system provider, Sunview plays a vital role in contributing to the achievement of SDG 7 through its commitment to renewable energy solutions. Sunview actively supports the transition to clean, sustainable, and accessible energy for everyone. Discover more at Sunview.
This article delves into the critical role of policy measures and incentives in promoting solar power adoption, and the profound implications it holds for creating a more sustainable energy landscape.
Embracing Battery Energy Storage Systems (BESS) to Boost Solar Reliance and Energy Security
The first would be the improved solar reliance and energy security with the adoption of BESS. Energy storage is a crucial technology that will play a vital role in providing the necessary flexibility, stability, and reliability for the energy systems of the future. As the world shifts towards a more sustainable energy landscape, the global battery energy storage system market is projected to witness significant growth, with an expected size of USD 17.5 billion by 2028, growing at a CAGR of 26.4% during the forecast period.
Given its immense potential, solar energy is vital for achieving renewable energy targets, and a reliable battery energy storage system (BESS) is crucial in maximising its potential. Malaysia acknowledges this importance and has embraced energy storage solutions with its first homegrown BESS. Energy storage systems offer effective solutions to enhance power supply reliability and maximise the utilisation of renewable energy sources. Their adoption benefits the Commercial and Industrial (C&I) sector for peak shaving and utility-scale applications for grid stabilisation, with declining battery system costs further boosting its appeal.
Sunview, a key player in this domain, has partnered with Huawei to enhance battery storage solutions using Internet of Things (IoT) systems. Sunview’s CEO, Mr. Ong emphasised that with BESS, they can assist customers in reducing customer maximum demand costs and catering to different tariff categories (Tariff C & E) set by Tenaga Nasional Bhd, expanding clientele and addressing energy-related challenges.
As the demand for BESS continues to grow, it is expected that the price of such systems will reduce over time. For example, according to Statistica, lithium-ion battery prices dropped by 90% from $1,220 in 2010 to $132 per kilowatt-hour in 2021.
"Solar installations have brought a remarkable positive impact to households, especially in countries like Australia. Homeowners can now generate power during the day, selling excess energy at the peak tariff to the grid, and wisely choose to consume more power during night time at off-peak tariff. This not only enhances energy usage efficiency but also bolsters grid stability, ultimately leading to reduced energy costs for all consumers." - Vincent Ng, Sunview's Chief Business Development Officer
Implementing BESS allows for optimised energy consumption and increased reliance on solar energy as the main power source, leading to substantial savings in the long run. As energy storage technology advances, it will undoubtedly play a pivotal role in shaping a cleaner, more efficient, and sustainable energy future.
The Integration of Smart Grid Technologies with Solar Energy
The second development to expect would be the integration of Smart Grid technologies with solar energy. Incorporating Smart Grid technologies with solar energy has the potential to revolutionise our approach to renewable energy integration.
“By harnessing the power of Artificial Intelligence (AI) and Machine Learning (ML) algorithms, we can unlock new frontiers of efficiency and performance for solar systems. This seamless integration of AI and ML enhances solar system performance which in return, contributes to the continuous improvements in Smart Grid technologies. Embracing these innovations is key to achieving a more sustainable and intelligent energy future.", said Vincent Lim, Sunview’s Head of Design & Operation.
TNB's investment in the Grid of the Future, showcased in MyRER, has yielded remarkable results, reducing System Average Interruption Duration Index (SAIDI) from 150 minutes in 2002 to 45.06 minutes in 2022. With AI and ML at the helm, this promises for a brighter and more reliable energy future.
Earlier this year, The GEF6 Sustainable City Development Programme achieved success by launching the Smart Grid initiative in Melaka. With support from the Global Environment Facility (GEF) and collaboration between MIGHT, UNIDO, Universiti Tenaga Nasional (UNITEN), and TNB Research (TNBR), the program integrated various Smart Grid technologies, including solar farms, rooftop solar panels, smart metres, EV charging stations, and battery systems. The project surpassed its target by reducing around 19,000 tCO2eq carbon emissions, equivalent to planting 287,000 trees over a decade.
Moreover, the emergence of N-type panel technology in rooftop solar systems is a rising trend, boosting solar production for the same DC capacity. Thus as a leading solar provider, Sunview has adopted this technology to further enhance our solar solutions to our customers.
In the face of unpredictable price fluctuations and supply disruptions associated with fossil fuels, the future of energy systems will increasingly rely on solar energy. By reducing dependency on non-renewable resources, solar power plays a crucial role in building more resilient and sustainable energy systems for the future.
Driving Solar Adoption for SDG 7: Policy and Incentives for Clean and Affordable Energy
The third development is policy and incentives driving adoption for achieving SDG 7. To drive adoption and achieve Sustainable Development Goal 7 (SDG 7) of affordable and clean energy, governments and international organisations recognise solar power's crucial role and implement favourable policies, such as feed-in tariffs, tax credits, and subsidies, to promote solar energy adoption. These incentives make solar installations more affordable and accessible for individuals, businesses, and communities.
Sunview has already submitted a project for approximately 200MWac in the VPPA total quota of 600MW, showcasing their commitment to sustainable energy solutions. Additionally, extending the Net Energy Metering (NEM) program with a capacity of up to 800MW, where customers can now enjoy savings on their maximum demand utility bill, further incentivizes solar adoption.
The rise of Renewable Energy Certificate (REC) trading further complements solar adoption efforts, providing a robust policy framework that encourages investments in solar energy projects from both public and private sectors. As these policies continue to evolve and expand, the solar industry will attract substantial funding, accelerating the global transition to clean and renewable energy sources, thus contributing to achieving SDG 7 and fostering a sustainable energy future.
In conclusion, embracing solar power and implementing supportive policies and incentives are vital steps towards achieving SDG 7 of affordable and clean energy. Incentive programs like feed-in tariffs and tax credits make solar installations more accessible, and the future growth of VPPAs holds promise for job creation and renewable energy investments. Advanced technologies like distributed solar and green VPPAs attract capital and support sustainability goals. Robust policy frameworks and extended programs such as NEM drive solar adoption and contribute to a greener, more resilient energy future. Together, these efforts propel us closer to a sustainable and environmentally responsible world.
