Despite the pandemic, renewable energy continues to grow steadily around the world and is becoming an important component of cities' recovery from the crisis. These are the results of the new report “Renewables in Cities 2021” by REN21.
Over the past few years, city governments have increasingly recognized the potential of renewable energy sources (RES) to create clean, livable, and sustainable cities. Note that in 2020, more than 1 billion people lived in cities with renewable energy targets and/or policies. National governments are usually seen as the main bodies responsible for regulating energy supply and infrastructure, as well as the transition to a renewable energy system. In turn, city governments have a unique opportunity to reduce energy consumption and associated greenhouse gas emissions while accelerating the implementation of renewable energy.
According to UN statistics for 2020, more than 55% of the world's population lived in cities around the world and accounted for about 75% of global carbon dioxide (CO2) emissions from final energy consumption. In recent years, the demand for energy in cities has increased rapidly due to population growth, urbanization, and economic activity in cities. Although urban electrification is high in most of the world, more than 176 million city dwellers still lack access to electricity. Municipal governments can play a key role in increasing energy access and achieving other sustainable development goals, while contributing to the Paris Climate Agreement goals by increasing renewable energy production and consumption.
Most energy in cities is consumed directly for: 1) generating electricity; 2) heating and cooling buildings and industries; and 3) transporting people and goods. In turn, cities use only a small portion of this energy for municipal buildings and fleets; the rest is used citywide for residential and commercial buildings, industrial activities, and private transportation. Thus, achieving urban renewable energy goals depends not only on political commitment and municipal investment in renewables, but also on the ability of governments to mobilize greater use of renewables by others, including through comprehensive policies, public awareness, and effective dialogue with stakeholders.
Renewable energy development in cities is often happening faster than trend-setting and policy actions at the national level. During 2019 and 2020, municipal governments around the world demonstrated a high level of advancement of current energy and climate issues, and addressed them to the best of their ability. Of note, reporting on government and citywide energy and climate targets has increased, and some cities have increased their ambition by adopting higher targets or setting earlier deadlines for achieving goals.
The ability and strategies of municipal governments to increase their use of renewable energy to meet their climate and energy goals depend on a number of factors. One critical factor affecting a city's ability to advance the adoption and use of renewable energy is the degree of regulatory and financial authority that national governments grant to city governments. The existing regulatory framework at the city, regional, and national levels also affects local renewable energy production, goal setting, and policy development. In addition, market rules, energy regulations, and policies set by higher levels of government, as well as the degree of economic dependence on fossil fuels, have a major impact on cities' ability to scale up renewable energy use.
In 2020, the COVID-19 pandemic and government-initiated measures to prevent the spread of infection had a major impact on both cities and incentives for RE development. In the first months of the pandemic, economic activity plummeted, leading to a decrease in energy demand worldwide and significantly impacting energy consumption in cities, especially in the transport sector. These events led to a change in the priorities of governments (especially municipal governments) as efforts to ensure public health and well-being were brought to the fore. Images of blue skies and clean air contributed to public pressure to reduce pollution and restore the planet. Although plans to eliminate COVID-19 were still in the works as of early 2021, initial proposals emphasized local economic development and job creation. Some municipal governments have announced a set of environmental remediation measures, including renewable energy options in line with similar plans that have been proposed at the national and supranational levels.
