The case for renewable energy as against other traditional fuels is stronger than ever before due to the falling costs of solar photovoltaic, wind, battery technologies and Electric Vehicles(EV). The Government can provide contracts or guarantees to encourage private investors to invest into renewable sources as the volatile market conditions and Covid may distract the business leaders in the short-term.
Energy transition investments if executed well will not only create jobs and lead energy’s digital transformation in the 2021-2022 recovery phase but also would make energy affordable for the most vulnerable segments of the region. As innovation, growth and jobs shifts towards these new energy technologies, traditional power from fossil fuel sources will more rapidly become a less favorable source.
Along with costs decline in renewable energy generation and EV, insertion of cheaper renewable electricity and innovation in sectors such as steel and cement can lead to increased production of these important global materials in an efficient manner.