On the Winds of Change Impact of Renewables on Electricity Markets [Guest Editorial]

Renewable energy technologies are being welcomed in many countries worldwide because of their minor or nonimpact on the environment, as compared to the adverse impact of traditional fossil fuel generation alternatives. Although renewable energy in the form of hydroelectricity has been present since the dawn of electricity, the emphasis is presently on nonconventional renewables, such as wind and solar technologies. The threat of climate warming, and the emission-reduction commitments that countries have voluntarily assumed to fight, has been a strong force. Although these technologies are maturing rapidly, they are still not at the technological and economical state to compete with traditional ones such as natural gas, coal thermal generation, or large hydro. Countries have thus acted proactively to help overcome different barriers and force renewables by creating direct support mechanisms to help them develop, thus facilitating the emission reduction objective. Europe has been the main driver in these efforts. Its 20-20-20 plan for 2020 was defined in 2007 as an integrated approach to transform Europe into a highly energy-efficient, low-carbon economy. The 2020 objective of reducing greenhouse gas emissions by at least 20% below 1990 levels coupled with 20% of energy consumption from renewable resources plus a 20% reduction in primary energy use by improving energy efficiency. The European Commission recently proposed that the European Union should consider unilaterally moving to a 30% reduction in ${\rm CO_2}$ by 2020.