Renewable energy is energy which comes from natural resources such as sunlight, wind, rain, tides, and geothermal heat, which are renewable (naturally replenished). About 16% of global final energy consumption comes from renewables, with 10% coming from traditional biomass, which is mainly used for heating, and 3.4% from hydroelectricity. New renewables (small hydro, modern biomass, wind, solar, geothermal, and biofuels) accounted for another 2.8% and are growing very rapidly. The share of renewables in electricity generation is around 19%, with 16% of global electricity coming from hydroelectricity and 3% from new renewable.

Wind power is growing at the rate of 30% annually, with a worldwide installed capacity of 198 gigawatts (GW) in 2010 and is widely used in Europe, Asia, and the United States.  At the end of 2010, cumulative global photovoltaic (PV) installations surpassed 40 GW and PV power stations are popular in Germany and Spain.  Solar thermal power stations operate in the USA and Spain, and the largest of these is the 354 megawatt (MW) SEGS power plant in the Mojave Desert. The world's largest geothermal power installation is The Geysers in California, with a rated capacity of 750 MW. Brazil has one of the largest renewable energy programs in the world, involving production of ethanol fuel from sugar cane, and ethanol now provides 18% of the country's automotive fuel.  Ethanol fuel is also widely available in the USA.

While many renewable energy projects are large-scale, renewable technologies are also suited to rural and remote areas, where energy is often crucial in human development.  As of 2011, small solar PV systems provide electricity to a few million households, and micro-hydro configured into mini-grids serves many more. Over 44 million households use biogas made in household-scale digesters for lighting and/or cooking, and more than 166 million households rely on a new generation of more-efficient biomass cookstoves.

Climate change concerns, coupled with high oil prices, peak oil, and increasing government support, are driving increasing renewable energy legislation, incentives and commercialization. New government spending, regulation and policies helped the industry weather the global financial crisis better than many other sectors.

Overview

Renewable energy flows involve natural phenomena such as sunlight, wind, tides, plant growth, and geothermal heat, as the International Energy Agency explains:

Renewable energy is derived from natural processes that are replenished constantly. In its various forms, it derives directly from the sun, or from heat generated deep within the earth. Included in the definition is electricity and heat generated from solar, wind, ocean, hydropower, biomass, geothermal resources, and biofuels and hydrogen derived from renewable resources.

Renewable energy replaces conventional fuels in four distinct areas: power generation, hot water/ space heating, transport fuels, and rural (off-grid) energy services:

Power generation. Renewable energy provides 18 percent of total electricity generation worldwide. Renewable power generators are spread across many countries, and wind power alone already provides a significant share of electricity in some areas: for example, 14 percent in the U.S. state of Iowa, 40 percent in the northern German state of Schleswig-Holstein, and 20 percent in Denmark. Some countries get most of their power from renewables, including Iceland and Paraguay (100 percent), Norway (98 percent), Brazil (86 percent), Austria (62 percent), New Zealand (65 percent), and Sweden (54 percent).

Heating. Solar hot water makes an important contribution in many countries, most notably in China, which now has 70 percent of the global total (180 GWth). Most of these systems are installed on multi-family apartment buildings and meet a portion of the hot water needs of an estimated 50–60 million households in China. Worldwide, total installed solar water heating systems meet a portion of the water heating needs of over 70 million households. The use of biomass for heating continues to grow as well. In Sweden, national use of biomass energy has surpassed that of oil. Direct geothermal for heating is also growing rapidly.

Transport fuels. Renewable biofuels have contributed to a significant decline in oil consumption in the United States since 2006. The 93 billion liters of biofuels produced worldwide in 2009 displaced the equivalent of an estimated 68 billion liters of gasoline, equal to about 5 percent of world gasoline production.

Mainstream forms of renewable energy

Wind power

Airflows can be used to run wind turbines. Modern wind turbines range from around 600 kW to 5 MW of rated power, although turbines with rated output of 1.5–3 MW have become the most common for commercial use; the power output of a turbine is a function of the cube of the wind speed, so as wind speed increases, power output increases dramatically.  Areas where winds are stronger and more constant, such as offshore and high altitude sites, are preferred locations for wind farms. Typical capacity factors are 20-40%, with values at the upper end of the range in particularly favourable sites.

Globally, the long-term technical potential of wind energy is believed to be five times total current global energy production, or 40 times current electricity demand. This could require wind turbines to be installed over large areas, particularly in areas of higher wind resources. Offshore resources experience mean wind speeds of ~90% greater than that of land, so offshore resources could contribute substantially more energy

Hydropower

Energy in water can be harnessed and used. Since water is about 800 times denser than air, even a slow flowing stream of water, or moderate sea swell, can yield considerable amounts of energy. There are many forms of water energy:

Hydroelectric energy is a term usually reserved for large-scale hydroelectric dams. Examples are the Grand Coulee Dam in Washington State and the Akosombo Dam in Ghana.

Micro hydro systems are hydroelectric power installations that typically produce up to 100 kW of power. They are often used in water rich areas as a remote-area power supply (RAPS).

Run-of-the-river hydroelectricity systems derive kinetic energy from rivers and oceans without using a dam.

Solar energy

Solar energy is the energy derived from the sun through the form of solar radiation. Solar powered electrical generation relies on photovoltaics and heat engines. A partial list of other solar applications includes space heating and cooling through solar architecture, daylighting, solar hot water, solar cooking, and high temperature process heat for industrial purposes.

Solar technologies are broadly characterized as either passive solar or active solar depending on the way they capture, convert and distribute solar energy. Active solar techniques include the use of photovoltaic panels and solar thermal collectors to harness the energy. Passive solar techniques include orienting a building to the Sun, selecting materials with favorable thermal mass or light dispersing properties, and designing spaces that naturally circulate air.

Biomass

Biomass (plant material) is a renewable energy source because the energy it contains comes from the sun. Through the process of photosynthesis, plants capture the sun's energy. When the plants are burnt, they release the sun's energy they contain. In this way, biomass functions as a sort of natural battery for storing solar energy. As long as biomass is produced sustainably, with only as much used as is grown, the battery will last indefinitely.

In general there are two main approaches to using plants for energy production: growing plants specifically for energy use, and using the residues from plants that are used for other things. The best approaches vary from region to region according to climate, soils and geography.

Biofuel

Biofuels include a wide range of fuels which are derived from biomass. The term covers solid biomass, liquid fuels and various biogases. Liquid biofuels include bioalcohols, such as bioethanol, and oils, such as biodiesel. Gaseous biofuels include biogas, landfill gas and synthetic gas.

Bioethanol is an alcohol made by fermenting the sugar components of plant materials and it is made mostly from sugar and starch crops. With advanced technology being developed, cellulosic biomass, such as trees and grasses, are also used as feedstocks for ethanol production. Ethanol can be used as a fuel for vehicles in its pure form, but it is usually used as a gasoline additive to increase octane and improve vehicle emissions. Bioethanol is widely used in the USA and in Brazil.

Biodiesel is made from vegetable oils, animal fats or recycled greases. Biodiesel can be used as a fuel for vehicles in its pure form, but it is usually used as a diesel additive to reduce levels of particulates, carbon monoxide, and hydrocarbons from diesel-powered vehicles. Biodiesel is produced from oils or fats using transesterification and is the most common biofuel in Europe.

Biofuels provided 2.7% of the world's transport fuel in 2010

Geothermal energy

Geothermal energy is energy obtained by tapping the heat of the earth itself, both from kilometers deep into the Earth's crust in volcanically active locations of the globe or from shallow depths, as in geothermal heat pumps in most locations of the planet. It is expensive to build a power station but operating costs are low resulting in low energy costs for suitable sites. Ultimately, this energy derives from heat in the Earth's core.

Three types of power plants are used to generate power from geothermal energy: dry steam, flash, and binary. Dry steam plants take steam out of fractures in the ground and use it to directly drive a turbine that spins a generator. Flash plants take hot water, usually at temperatures over 200 °C, out of the ground, and allows it to boil as it rises to the surface then separates the steam phase in steam/water separators and then runs the steam through a turbine. In binary plants, the hot water flows through heat exchangers, boiling an organic fluid that spins the turbine. The condensed steam and remaining geothermal fluid from all three types of plants are injected back into the hot rock to pick up more heat.

The geothermal energy from the core of the Earth is closer to the surface in some areas than in others. Where hot underground steam or water can be tapped and brought to the surface it may be used to generate electricity. Such geothermal power sources exist in certain geologically unstable parts of the world such as Chile, Iceland, New Zealand, United States, the Philippines and Italy. The two most prominent areas for this in the United States are in the Yellowstone basin and in northern California. Iceland produced 170 MW geothermal power and heated 86% of all houses in the year 2000 through geothermal energy. Some 8000 MW of capacity is operational in total.

New and emerging renewable energy technologies

New and emerging renewable energy technologies are still under development and include cellulosic ethanol, hot-dry-rock geothermal power, and ocean energy. These technologies are not yet widely demonstrated or have limited commercialization. Many are on the horizon and may have potential comparable to other renewable energy technologies, but still depend on attracting sufficient attention and research, development and demonstration (RD&D) funding

Renewable energy debate

Renewable electricity production, from sources such as wind power and solar power, is sometimes criticized for being variable or intermittent. However, the International Energy Agency has stated that deployment of renewable technologies usually increases the diversity of electricity sources and, through local generation, contributes to the flexibility of the system and its resistance to central shocks.

There have been "not in my back yard" (NIMBY) concerns relating to the visual and other impacts of some wind farms, with local residents sometimes fighting or blocking construction. In the USA, the Massachusetts Cape Wind project was delayed for years partly because of aesthetic concerns. However, residents in other areas have been more positive and there are many examples of community wind farm developments. According to a town councilor, the overwhelming majority of locals believe that the Ardrossan Wind Farm in Scotland has enhanced the area.

The market for renewable energy technologies has continued to grow. Climate change concerns, coupled with high oil prices, peak oil, and increasing government support, are driving increasing renewable energy legislation, incentives and commercialization. New government spending, regulation and policies helped the industry weather the 2009 economic crisis better than many other sectors.