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Renewable energy sources and technologies

Renewable energy sources have grown exponentially in popularity and adoption as governments, businesses, and individuals recognize that global warming is one of the biggest threats of our lifetime.

What is renewable energy?

You’ve probably heard the term “renewable energy” mentioned in the same breath as global warming and climate change. But what exactly is renewable energy? And why is it so important?

Renewable energy refers to natural energy sources or production processes that can be continuously replenished or replicated. We will never run out of wind and sunshine, for instance. In fact, wind turbines and solar panels are among the leading sources of renewable energy.

In addition to being endlessly available, renewable resources—or, “renewables”—generally create less pollution than their non-renewable counterparts, making them a healthier choice for people, animals, and the planet. It’s no surprise then that global leaders and environmental advocates are championing renewables as the key to building a more environmentally sustainable future.

Conversely, non-renewable energy sources like oil, gas, and coal are limited in quantity, cannot be quickly replenished, and are not available in every region of the world. Consider crude oil: Although many countries produce it, the U.S. Energy Information Administration reports that more than half of the world’s crude oil supply originates from just five countries. But most importantly, non-renewable energy sources like these carbon-based fossil fuels are considered one of the biggest contributors to climate change. 

The quest for net zero

With governments, businesses, and consumers now facing the fact that global warming and climate change are among the biggest threats of our lifetime, renewables have grown exponentially in popularity and adoption. With the aid of modern technologies, not only have today’s alternative energy sources become more reliable, they also have become more cost effective—even more so than fossil fuels.

Recognizing that individual efforts to limit global warming and irreversible climate change are not enough, countries around the world signed the Paris Agreement in 2016. This international treaty stipulates that governments worldwide will strive to achieve “net zero emissions”—removing as much carbon dioxide from the earth’s atmosphere as we release into it—by the year 2050.

The world’s continued transition to energy sources that release the least amount of greenhouse gases into the atmosphere is how we will succeed in halting the catastrophic environmental changes that are already upon us. And renewables—which are often “cleaner and greener” than non-renewable energies—are at the forefront of this effort.

Common renewable energy sources

New efforts are being made daily to develop and implement renewable energy sources without causing further damage to the planet. Let’s take a look at some of the most prevalent alternative energy sources:

Solar energy

Powered by solar, or photovoltaic (PV), cells made from silicon or other materials that transform sunlight into electricity. How much solar energy can be stored and used depends on the time of day, season, and geographical location of the solar cells. That said, just 90 minutes of sunlight captured at the earth’s surface would be sufficient to power all of the planet’s energy usage for a year, according to the U.S. Department of Energy.

Solar farms are not limited to land. They can also reside in bodies of water, like reservoirs and lakes. (Such solar panels are called floating photovoltaics or floatovoltaics.) When responsibly sited and manufactured, solar power systems don’t have an adverse environmental impact, as they don’t produce air pollutants or greenhouse gases.

Wind energy

The wind causes a turbine’s blades to spin, which a generator uses to produce electricity. One of the biggest complaints about wind energy is that the colossal (and often considered ugly) windmills used to generate wind energy take up massive amounts of land.

Offshore wind farms are a popular alternative to land-based ones. Although offshore wind farms have their downsides—including potentially volatile weather and rough water where the turbines need to function, and the exorbitant cost of installing power cables under the seafloor—the limitless supply of wind makes it an attractive resource.

Geothermal energy

Created in human-made wells that extract water heated by magma—a molten mixture of minerals and gases—from the earth’s core. Upon rising to the earth’s surface, the water turns to steam, which activates turbines that then power generators in order to produce electricity. Pumping the steam and hot water back into the earth lowers the emissions put out by geothermal energy, making this hydrothermal resource a green one.

Certain parts of the world, such as Iceland, have an abundance of easily accessible and available geothermal resources, while other regions lack this naturally occurring resource. Another downside is that digging into geological hot spots to create wells may cause substantial environmental damage and increase the risk of earthquakes. 

Hydroelectric power

Refers to dams or barriers constructed to control water flow. The directed water then spins a generator’s turbine blades, which creates electricity. Because of the dependability of its source, hydroelectric power is often more reliable than solar or wind power. This reliability positions hydroelectric power as the largest renewable energy source for electricity in the United States.

Large hydroelectric plants, also known as mega-dams, aren’t considered non-renewable energy because they divert and decrease natural water flows. Nearby animals and humans can suffer by losing some or all of the access to water that they depend on. Conversely, small hydroelectric plants—which have an installed capacity of less than approximately 40 megawatts—divert only a fraction of the water flow as their larger siblings, and carefully managed ones don’t create as much environmental damage.

Tidal power

Another example of hydro energy, only this resource relies on the twice-daily tidal currents of the ocean to power turbine generators. While still a nascent resource, the highly predictable nature of tidal power makes it an attractive and sustainable source of energy. As with dams, some tidal energy methods can harm wildlife and their surrounding environments. Tidal barrages, for example, operate similarly to dams but are located in ocean bays or lagoons.

Biomass energy

Refers to heat that’s generated by burning material from plants to power a steam turbine in order to generate electricity. Biomass energy is created by transforming waste into fuel. This waste-to-energy conversion can deliver power with low financial and environmental costs.

For example, refuse wood—like chippings from sawmills—can be used for biomass energy instead of letting it decompose in landfills where it would raise carbon levels. That said, many forms of biomass are not considered clean energy sources, as they have been shown to generate higher carbon emissions than fossil fuels.

Renewable energy technologies and cloud computing

Although the call to action has rightly been made to implement renewable sources of energy, such as solar- and geothermal-powered homes at the individual level, it remains crucial to address the climate crisis at the industry and business level. Individual consumers are making advances with the growing movement of rooftop solar panels to power electric vehicles, but any advancement at the industry level to support and empower cleaner energy solutions will invariably include the environmental benefits of cloud computing.

Although digital technologies reduce harmful environmental impact by requiring less energy, cloud computing still remains “grounded” on the planet via the datacenter. Some cloud computing technologies consume enormous amounts of unrenewable energy—for example, cryptocurrency mining. Analysis by the University of Cambridge estimates that the cryptocurrency mining of just one company, Bitcoin, uses more coal-generated electricity annually than entire countries the size of Norway or Argentina.

Some cloud services companies, such as Microsoft, are focused on supporting renewable energy technologies by improving performance and efficiency and reducing power consumption to help minimize the environmental impact of physical datacenters.

Cloud computing innovations

Examples of the environmental benefits of cloud computing include innovations such as:

  • Liquid-immersion cooling: This method of server cooling helps to reduce energy and water consumption while providing higher processing power.
  • Grid-interactive UPS batteries: Small steps like implementing grid-interactive UPS batteries help to reduce demand on the grid.
  • Cleaner fuels for power backup: Fueling datacenter backup generators with less-carbon-intensive fuels in place of traditional diesel helps to reduce carbon emissions.

Cloud computing can never be a universal remedy or single solution to address climate change, but there are many exciting digital technologies to support renewable energy. These technologies help by reducing energy use and aid the transition to a more carbon-neutral grid.

Learn about Microsoft’s commitment to sustainability

Power and utility cloud innovations

Some examples of innovative cloud solutions in the power and utilities industry are:

An aerial view of solar panels in a dirt field.

Intelligent or “smart” grids

These cloud technologies optimize a company’s energy management. They employ interactive data from millions of sensors used by individual customers by relying on alternative energy sources like rooftop solar panels and electric cars to operate the power grid more efficiently.

Two people wearing protective gear standing in front of wind turbines and looking at a laptop.

Artificial intelligence and machine learning

Energy companies use data and AI to intelligently match demand and supply of renewable energy sources. Technologies such as digital twins allow companies to improve load balancing, integrate distributed energy resources, control devices, and automate operations to optimize energy use.

Two people on a work site wearing protective gear using a laptop and looking at paperwork.

IoT (the Internet of Things)

Using device sensors and predictive maintenance, companies manage and extend the life cycles of machinery and other assets. This allows for reduced use of unrenewable sources of power and materials that are involved in new manufacturing.

A large green carbon capture system.

Carbon-capture technology

While not a renewable energy source itself, carbon capture mitigates the environmental impact of carbon dioxide by capturing and storing emissions from smokestacks. It can even extract carbon dioxide from the air and then store it underground or recycle it to make new products, such as fuel or building materials. These technologies use advanced emission dashboards, AI, and IoT digital twin technology to improve carbon capture and storage.

Renewable energy industry trends

Adoption of renewable energy sources is reaching record highs. According to the International Energy Agency (IEA), an energy forum comprised of 29 countries that promote sound energy policies, renewable energy capacity is set to expand globally by 50 percent before 2024. Growth-wise, solar energy is leading the charge, but wind, geothermal, and hydroelectric power aren’t far behind.

Leaning into solar energy

The IEA also predicts that solar energy will account for 60 percent of the growth of the global renewable energy industry through 2025. China, Belgium, the Netherlands, Austria, Australia, and the United States are expected to lead the way, with each predicted to add millions of solar installations.

Why is adoption of solar energy booming? For one thing, the cost to install solar panels has been falling for years and is expected to keep plummeting. For another, solar is more accessible and offers more freedom than energy sources that require specific locations, such as wind and hydropower. Every place on Earth gets sunlight, regardless of climate.

With adoption growing, the solar industry is focused on expanding storage capabilities and refining distribution so that homes and businesses can keep running regardless of weather. This increase in consistency will spur more corporations, governments, and residents to go all in on solar.

Wind energy: on- and offshore

As wind energy capacity increases globally, so does its adoption. Right now, China is leading the way; however, the United States and Japan are catching up thanks to promising legislation.

In the United States, the Biden-Harris administration has committed to deploying 30 gigawatts of offshore wind energy by 2030. Lawmakers in Japan have created regulations to spur turbine construction in ports and harbors, and to encourage developers to build offshore farms. The country might even replace their nuclear reactors with offshore turbines.

The reign of hydropower and rise of geothermal

According to the IEA, while hydropower will continue to be the world’s primary source of renewable power in the foreseeable future, it won’t experience quite the growth of solar or wind power. Suitable and cost-effective locations are already in short supply, thereby increasing costs.

Geothermal energy, already prevalent in Iceland and Pacific Rim countries, is anticipated to grow 28 percent by 2024. Asian countries, especially Indonesia and the Philippines, are already increasing their capacity, with no signs of slowing down.

Leaving “dirty” energy behind

What does the future of renewables mean for our traditional power sources? Seeing lower costs and increased demand in the clean energy sector will prompt major oil and gas companies to expand their investments in renewables. In fact, the IEA predicts that “renewables will overtake coal to become the largest source of electricity generation worldwide in 2025.” 

Meanwhile, Middle Eastern nations, such as Saudi Arabia, could completely transition away from oil thanks to its abundance of a far more renewable energy source: sunshine. Experts say the country could feasibly move to a 100 percent renewable energy system by 2040, if energy storage technology continues to advance and regulatory bodies pass the right legislation.

The North American Supergrid

Though the world seems ready to fully embrace renewables, current power infrastructure isn’t built to effectively support this shift. For example, in the United States, one of the biggest questions right now revolves around how to efficiently transfer energy across an entire country.

Enter the North American Supergrid. Proposed by the Climate Institute, a nonprofit organization based in Washington, D.C., this new power grid would make renewable energy far more accessible. Once in place, the United States could move solar energy from farms in the Southwest to major cities in the Northeast.

In theory, a nodal high voltage direct current (HVDC) network would be installed on top of existing regional distribution systems, giving everyone access to renewable energy without altering how electricity is currently used in homes and businesses. If implemented, this supergrid could make clean energy more competitive in an otherwise fossil fuel-dominated market.

Real-world renewable energy innovations and examples

Many businesses, industries, and governments are taking laudable steps to incorporate intelligent, innovative cloud technologies into their renewable energy efforts—some even committing to primarily or completely running on renewable energy in the near future.

Axpo

Axpo, Switzerland’s biggest producer of renewable energy, is using Azure Cognitive Search, Azure Maps, and Power BI to enable its grid engineers and maintenance teams to easily find comprehensive, up-to-date data about the condition of each grid asset. This cuts search time by up to 99 percent, makes it easier to identify problem areas in near real time, and paves the way to automate several grid-asset management tasks. All this significantly reduces the time needed to complete many operational activities.

SSE Renewables

Another European leader in renewable energy, SSE Renewables—which builds more offshore wind farms than any company worldwide—is using AI, IoT, and cloud technology to ensure its efforts don’t damage surrounding wildlife and ecosystems. For example, the company monitors the health of neighboring birds with remote digital video cameras that upload data to an AI-enabled cloud system that tracks the activity and vitality of each individual animal.

Vattenfall

Vattenfall, a multinational energy company owned by the Swedish government, is another pioneer in renewable energy. Together with Microsoft, the company has created a service that matches instantaneous demand for renewable energy with immediately available supply. Some renewables will not always be available the moment a business needs them. (The sun doesn’t always shine and the wind doesn’t always blow, after all.) But with Vattenfall’s 24/7 matching service, companies that want to move to 100 percent fossil-free electricity can do so. For instance, if no solar electricity is available during a particular hour, the service will match businesses with a renewable energy source that is available.

National Fund for Environmental Protection and Water Management

In the government sector, Poland’s National Fund for Environmental Protection and Water Management is using cloud computing to make it easier for Polish citizens to apply for and receive grants to make their homes more energy efficient and less prone to air pollution. The organization streamlined the administration of its incentive program by fully digitizing its grant application process, making it easier for citizens to apply for energy-efficiency grants and for the organization to award them. Since the organization modernized its incentive program, more than 215,000 Polish households have received these energy grants.

The Met Office

Finally, in the UK—a global leader in the quest for net zero—The Met Office, the nation’s weather service, is relying on cloud computing to help it pursue 100 percent renewable energy. Tracking and predicting weather patterns is highly data intensive, drawing on complex simulations, big data, AI, and powerful analytics. Rather than rely on a physical supercomputer to meet these workloads, The Met Office is using an intelligent cloud-based supercomputing service. By using this cloud service, the agency predicts it will save 7,415 metric tons of carbon.

Accelerate your sustainability journey

Wherever you are on your path to net zero, Microsoft Cloud for Sustainability enables you to amplify progress and transform your business through environmental, social, and governance (ESG) capabilities.

Frequently asked questions about renewable energy

  • The most popular sources of renewable energy include the following:

    • Solar energy—created by transforming sunlight into electricity.
    • Hydroelectric power—human-made barriers such as dams that control water flow to create electricity.
    • Wind energy—produced by windmills that convert wind power into electricity.
    • Tidal power—relies on ocean currents to power turbine generators. 
    • Geothermal energy—created in human-made wells that extract heated water from the earth’s core.
    • Biomass energy—created by transforming waste materials into fuel.
  • A number of renewable energy sources are considered highly efficient because their supply is essentially infinite. These include wind, sunshine, and the ocean’s tides. To understand how abundant these resources are, consider this statistic: According to the U.S. Department of Energy, it only takes 90 minutes of sunlight captured at the earth’s surface to power all of the planet’s energy usage for one year. Not surprisingly, solar power is one of the fastest growing forms of renewable energy around the globe.

  • One could argue that solar power systems are the safest, as they don’t produce air pollutants or greenhouse gases and they don’t have any adverse environmental impacts.

  • Renewable energies have a number of advantages over fossil fuels. Because renewable energies are created from natural resources like wind and water, they are more abundant, reliable, and cost-effective than fossil fuels. Most important, renewable energies generally create less pollution than fossil fuels—which are now considered one of the largest causes of climate change.

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