Just 10% of utility companies have prioritised renewables over the past two decades, according to research from the Smith School of Enterprise and the Environment, University of Oxford.
It asserts that there has been “missed opportunity for progress” on global climate commitments, amid claims that utility firms could have expanded renewables-based power generation capacity faster than gas or coal-fired capacity.
‘This research brings out a worrying gap between what is needed to stop global warming, and what actions are being taken by the utility sector,’ explains Galina Alova, study author and researcher at the Smith School of Enterprise and the Environment.
‘Although there have been a few high-profile examples of individual electric utilities investing in renewables, this study shows that overall, the sector is making the shift to clean energy slowly or not at all.’
‘Utilities’ continued investment in fossil fuels leaves them at risk of stranded assets – where power plants will need to be retired early – and undermines global efforts to tackle climate change
‘The global shift to a low carbon future might be further jeopardised by the strain that COVID-19 pandemic has put on public and private finance, as well as supply chains, resulting in pause or cancellation of new renewable energy projects.
Many countries and businesses have devoted to reach net-zero greenhouse gas emissions by 2050, to prevent the disastrous consequences of climate change. To achieve this, fossil fuels must be replaced with renewable energy throughout the economy.
But the study implies that utilities remain committed to their conventional fossil-fuel-dominated activities. While independent power producers are leading the penetration of renewables, traditional utilities lag behind.
