Renewable Energy Development Barriers in Developing Countries

This article discusses the barriers faced by developing countries in shifting to renewable energy sources due to economic and governmental policies. It also highlights the counterarguments and refutations to these barriers.

Running head: RENEWABLE ENERGY DEVELOPMENT BARRIERS
Renewable energy development barriers in developing countries
Name of the student
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Introduction
In the current scenario, demands for sustainable energies in the global energy market
has increased. Due to the depletion of fossil fuel demand for alternative renewable energies
have increased. It has been identified that wave and water produce the renewable energy that
can be used for sustainable development. It is true that most of the developing countries are
rich in the case of renewable source. Due to this reason, the importance of renewable energies
in the global context has been highlighted in the developing countries. It cannot be denied
that improper economic structure and lack of government support, various challenges are
being faced by the developing countries in order to develop renewable energies. In the case of
developing countries various, governmental and economic policy barriers interrupt in the case
of shifting to alternative renewable energy sources. It cannot be denied that switching from
fossil fuel to renewable energy can bring the solution for these challenges. Moving from
fossil fuel to renewable energy is a long-term process.
Issue 1
Argument
In the current situation people have become habituated with the non-renewable
energies, due to this reason, developing countries are sticking in the fossil fuels. The process
of renewable energy production is uncertain and quite slow, which is creating the challenges
for developing countries. It cannot be denied that the renewable energy growth in the
developing countries has various limits for dealing with the funds, technology, improper
infrastructure and energy policy related issues. As the fossil fuel is reliable and affordable,
hence, the developing nations will depend on the fossil fuels. It has been identified that in the
case of developing countries, coal is an important non-renewable energy source. It provides
1/3 of the entire energy supply, which produces 40% electricity (Arena.gov.au 2018). Due to

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the changing infrastructure, the large amount of investment is required for switching to
renewable energy. It has been identified that $1100 billion is required for extracting the fossil
fuel and infrastructure development however, only 250 billion is being spent for the
renewable energy installation (Lo 2014). In order to develop the effective renewable energy
plant, efficient employees are required. However in the case of developing countries, the
recruitment cost of the skilled employees are higher. Due to the lack of economic stability, it
has become very difficult for the developing countries to shift in the renewable energies. The
statistical information has been collected recently, it has been identified that renewable
energy is expensive compared to the fossil fuel. As an example it can be said that although
India is rich with conventional and renewable energy resources, the suitability and easy
accessibility in the low cost have made coal as the important source of electricity in this
nation (Luthra et al. 2015). In the recent report of 2017, it has been identified that the wind
power cost is higher than the coal power. The wind cost is near about $60-70/MWh, however
the coal power cost is $40/MWh. Therefore, this can be said that such economic barriers
decrease the possibility of developing renewable energy in the developing countries.
Counter argument
However, it cannot be denied that in the current situation, the economic condition of
the developing countries got improved. Due to the economic development, many if the
developing countries are being able to bear the cost of renewable energy. Solar panels are
being used producing the cost-effective energy through batteries and inverter. It has been
identified that in 2016 near about 133 million people have started using the off-grid
renewable solutions for producing the electricity (Luthra et al. 2015). The growth of solar
energy has increased due to the financial support. In the case of the African continent within
last five years the fastest development of the off-grid renewable energy has shocked the
global energy industry. In between the year 2011 and 2016, from 2 million to 53 million

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renewable energy users has increased. Due to the installation of renewable energy plants the
employment opportunities have increased in the developing countries. It has been identified
that in the year 2016, IRENA had introduced 9.8million jobs (Irena.org 2015). In the
maintenance and renovation department of renewable energy, IRENA has decided to recruit
near about 60000 employees within coming 2050 (Irena.org 2015). Therefore, this can be
said that the importance of renewable energy is quite higher in the case of developing
countries.
Refutation
It cannot be denied that the policies regarding the energy development and project
installation are a long-term process which needs huge investments. The market expectation of
the renewable energy market is increasing but fossil fuels are ruling the market from the long
period. In this situation, cost reduction of the renewable energies can be beneficial for the
developing countries. It is also true that the technology is quite high in the case of renewable
energy comparing the non-renewable energy (Yaqoot, Diwan and Kandpal 2016). The
technological equipment which is being used in the case of renewable energy is higher than
the non-renewable energy because all the equipment is imported. On the other hand, it has
been identified that in the case of coal firms, the manufacturing unit needs few workers but in
the case of renewable energy plants, a large number of workers are being recruited. Hence,
this can be said that near about double workforce of coal industries, is required in the solar
industries that increase the cost, which sometimes creates barriers for the developing
countries. Due to this reason the renewable energies are not being adopted by the developing
nations.
Issue 2
Argument

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On the other hand, it has been identified that delay in the implementation of
government policies in the developing countries and governmental support towards the fossil
fuels have created barriers for developing the renewable energy plants. As the government
policies are in the favourable situation for the fossil fuel investors, therefore, the gas, coal and
oil are being supplied in the developing nations without any barriers (Keho 2016). It has been
identified that private organizations are not showing their interest towards investing in the
renewable sources due to the government policies. Due to inadequate research and improper
planning regarding the renewable energy development practices, it has become tough for the
developing countries to take such initiatives (Kardooni, Yusoff and Kari 2016). On the other
hand, lack of efficient technicians and separation as well as lack of transparency regarding
the government policies the developing nations are suffering. Due to the political instability
and the complex association between the organizations the renewable energy development
initiatives are getting hampered (Hua, Oliphant and Hu 2016). It is also true that in order to
develop the renewable energy plants, the political barriers discourage the initiatives. Due to
such barriers many of the developing nations depend on the non-renewable energies.
Counter argument
It can be said that with the increasing rate of fossil fuel uses, the shortage of fossil fuel
supply has increased. In this situation the renewable energy can be an effective solution for
the continuing the supply chain process. The government has taken the renewable energy
production process as the important strategy in order to reduce poverty. Due to the unstable
fossil fuel costs, the scope for renewable energy development has increased. It has been
identified that in the year 2017, the Philippines has attempted to provide electricity to near
about 90% of the entire households and introduced the policy named ‘Demand-side
management'. The aim of the policy is to increase the rural electrification by developing the
Energy regulatory board, increasing finding and recruiting efficient staffs (Kardooni, Yusoff

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and Kari 2015). On the other hand, it is also true that the government in developing countries
has started supporting the renewable energy initiatives like the Mexican Federal Electricity
Commission has produced electricity from the geothermal and hydropower. Therefore, the
developing countries have started developing the renewable energies with the help of
government.
Refutation
However, there are many developing countries where the government prefer the
products which can be easily accessible. It cannot be denied that in the case of Indonesia, the
government still supporting the fossil fuel investment initiatives. In the recent report, it has
been identified that Malaysia has stopped the installation process of a solar panel
(Bhattacharya et al. 2016). Due to the introduction of the financial motivations, the
consumption of energy has reduced, such governmental enhancement has played an
important role in the case of making the renewable energies are an optional source.
Therefore, this can be said that it is difficult for the government of developing countries to
shift their support from fossil fuel to renewable energy.
Conclusion
In this study, it can be concluded that sustainability of the renewable energies is quite
higher for environment and economy. However, it is true that due to the easier accessibility
the fossil fuels have become the main energy resource in the developing countries. In terms
of environmental benefits, the renewable energy is very effective. It is also true that lack of
skilled employees and financial support have become major barriers for the developing
countries. Hence, it has been identified that the government of developing countries will
focus on introducing the renewable energy as the additional energy, but the fossil fuels are
still the main energy source in the developing countries.

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References
Arena.gov.au. 2018. What is Renewable Energy? Retrieved June 27, 2018, from
https://arena.gov.au/about/what-is-renewable-energy/
Bhattacharya, M., Paramati, S.R., Ozturk, I. and Bhattacharya, S., 2016. The effect of
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Hua, Y., Oliphant, M. and Hu, E.J., 2016. Development of renewable energy in Australia and
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