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Introduction to Renewable Energy

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Fast Facts About
Renewable Energy

Principle Energy Uses: Electricity, Heat
Forms of Energy: Kinetic, Thermal, Radiant, Chemical

The term “renewable” encompasses a wide diversity of energy resources with varying economics, technologies, end uses, scales, environmental impacts, availability, and depletability. For example, fully renewable resources are not depleted by human use, whereas “semi-renewable” resources must be properly managed to ensure long-term availability. The most renewable type of energy is energy efficiency, providing the same or better service using less energy. Most renewable energy resources have significantly lower environmental and climate impacts than their fossil fuel counterparts.

The data in these Fast Facts do not reflect two important renewable energy resources: traditional biomass and energy efficiency. See the Biomass and Energy Efficiency pages to learn more.


Significance

Energy Mix

8% of world 🌎
9% of U.S. 🇺🇸

Electricity Generation

32% of world 🌎
23% of U.S. 🇺🇸

Share of Each Sector’s Energy Use Provided by Renewables

Industry 18%
Buildings 18%
Agriculture 18%
Transport 4%

Change in Global Consumption of Renewable Electricity

Increase:
⬆ 36%
(2019 to 2024)


Types of Renewable Resources

Energy Efficiency

Energy efficiency measures that reduce the need for energy in the first place (e.g., LED light bulbs, insulation, heat pumps, programmable thermostats)

Renewable Resources

Wind
Solar
Ocean

Semi-Renewable Resources

Hydro
Geothermal
Biomass

Renewable Energy Has Vast Potential to Meet Global Energy Demand

Solar >1,000x global demand
Wind ~3x global demand


World

Share of Global Energy Demand Met by Renewable Resources

Hydropower 3%
Wind 2%
Solar 1%
Biomass*, Geothermal, and Other Renewables 3%

Share of Global Electricity Generation Met by Renewable Resources

Hydropower 14%
Wind 8%
Solar 7%
Biomass*, Geothermal, and Other Renewables 3%

Global Growth

(2019-2024)
Hydropower generation
5% increase
Wind generation
77% increase
Solar generation
199% increase
Biofuels consumption
21% increase
 

*Includes biofuels

Largest Renewable Energy Producers

China 29% 🇨🇳
U.S. 12% 🇺🇸
of global renewable energy generation

Highest Penetration of Renewable Energy

Norway 52% 🇳🇴
New Zealand 47% 🇳🇿
of the country’s energy supply is renewable

(China is 9%,
U.S. is 7%)

Largest Renewable Electricity Producers

China 38% 🇨🇳
U.S. 15% 🇺🇸
of global renewable electricity generation

Highest Penetration of Renewable Electricity

Albania, Bhutan, Nepal, Paraguay, Ethiopia, Iceland, Congo, Costa Rica, Lesotho 100%

Central African Republic, Norway, Namibia, Uganda, Eswatini, Sierra Leone, Malawi, Tajikistan, Uruguay, El Salvador, Kenya > 90%
of the country’s net electricity generation is renewable

(China is at 33%,
U.S. is at 23%)


U.S.

Share of U.S. Energy Demand Met by Renewable Resources

Biomass* 5%
Wind 2%
Hydro 1%
Solar 1%

Share of U.S. Electricity Generation Met by Renewable Resources

Wind 11%
Hydro 6%
Solar 5%
Biomass* 1%

U.S. States That Produce the Most Renewable Electricity

Texas 18%
California 11%
of U.S. renewable electricity production

U.S. States With Highest Penetration of Renewable Electricity**

Vermont >99%
South Dakota 82%
Washington 70%
Idaho 69%
Iowa 68%
of state’s total generation comes from renewable resources

*Includes biofuels
**Includes hydropower


Renewable Energy Expansion Policies

The Inflation Reduction Act (2022) continued tax credits for new renewable energy projects in the U.S. The One Big Beautiful Bill Act (H.R. 1, 2025) narrows eligibility and shortens timelines for wind and solar projects to qualify for the full value of clean energy tax credits.

Production Tax Credit (PTC)

Tax credit of $0.0275/kWh of electricity produced at qualifying renewable power generation sites

Investment Tax Credit (ITC)

Tax credit of 30% of the cost of a new qualifying renewable power generation site

LCOE of U.S. Resources, 2025: Renewable Resources
Resource (Renewables)Unsubsidized LCOE*LCOE with ITC/PTC Tax Subsidy
Wind (Onshore)$37 - $86$15 - $75 (PTC)
Solar PV (Utility Scale)$38 - $78

$24 - $57 (ITC)

$20 - $45 (PTC)

Solar + Storage (Utility Scale)$50 - $131$33 - $111 (ITC)
Geothermal$66 - $109$44 - $93 (ITC)
Wind (Offshore)$70 - $157$52 - $141 (PTC)
Solar PV (Rooftop Residential)*$177 - $282$74 - $229 (ITC)
Wind + Storage (Onshore)$44 - $123$21 - $103 (PTC)

*From LCOE, 2024.

LCOE of U.S. Resources, 2025: Non-Renewable Resources.
(The ITC/PTC program does not provide subsidies for non-renewable resources. Fossil fuel and nuclear resources have significant subsidies from other policies.)
Resource (Non-Renewables)Unsubsidized LCOE*
Natural Gas (combined cycle)$49 - $109
Natural Gas Peaker Plants$149 - $251
Coal$71 - $173
Nuclear$141 - $228

*LCOE (levelized cost of energy) - allows for the comparison of different electricity generating technologies


Important Factors for Renewable Site Selection

  • Resource availability
  • Environmental constraints and sensitivities, including cultural and archeological sites
  • Transmission infrastructure
  • Power plant retirements
  • Transmission congestion and prices
  • Electricity markets
  • Load growth driven by population and industry
  • Policy support
  • Lease/easement or purchase
  • Permitting

Drivers

  • Competitive and declining costs of wind, solar, and energy storage
  • Lower environmental and climate impacts (social costs) than fossil fuels
  • Expansion of competitive wholesale electricity markets
  • Governmental clean energy and climate targets and policies
  • Corporate clean energy targets and procurement of renewable energy
  • No fuel cost or fuel price volatility
  • Retirements of old and/or expensive coal and nuclear power plants
  • Most renewable resources are abundant, undepletable

Barriers

  • Permitting hurdles
  • NIMBY/BANANA* concerns
  • Competition from subsidized fossil fuels and a lack of price for their social cost (e.g., price on carbon)
  • Site-specific resources means greater need to transport energy/electricity to demand
  • High initial capital expenditure requirements required to access fuel cost/operating savings
  • Intermittent resources
  • Inconsistent governmental incentives and subsidies
  • Managing environmental impacts to the extent that they exist

*NIMBY - not in my backyard; BANANA - build absolutely nothing anywhere near anything


Climate Impact: Low to High

  • Solar, wind, geothermal, and ocean have low climate impacts with zero operating emissions
  • Hydro: Some locations have greenhouse gas emissions due to decomposing flooded vegetation
  • Biomass: Some crops require significant energy inputs, land use change can release carbon dioxide and methane

Environmental Impact: Low to High

  • Most renewable energy resources have low environmental impacts, particularly relative to fossil fuels; some, like biomass, can have more significant impacts
  • No air pollution with the exception of biomass from certain feedstocks
  • Can have land and habitat disruption for biomass production, solar, and hydro
  • Potential wildlife impacts from wind turbines (birds and bats)
  • Modest environmental impacts during manufacturing, transportation, and end of life

Updated November 2025

Our 10-Minute Take On
Introduction to Renewable Energy

If you're short on time, start by watching this video of key highlights from our lecture on Introduction to Renewable Energy.

Diana Gragg

Presented by: Diana Gragg, PhD; Core Lecturer, Civil and Environmental Engineering, Stanford University; Explore Energy Managing Director, Precourt Institute for Energy
 

Recorded: June 13, 2025  
Duration: 10 minutes

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Slides available upon request.

If you liked this video, watch the other 10-Minute Takes here!

Before You Watch Our Lecture on
Introduction to Renewable Energy

We assign videos and readings to our Stanford students as pre-work for each lecture to help contextualize the lecture content. We strongly encourage you to review the Essential reading below before watching our lecture on Introduction to Renewable Energy . Include the Optional and Useful readings based on your interests and available time.

Essential

Optional and Useful

Our Lecture on
Introduction to Renewable Energy

This is our Stanford University Understand Energy course lecture that introduces renewable energy. We strongly encourage you to watch the full lecture to gain foundational knowledge about renewable energy and important context for learning more about specific renewable energy resources. For a complete learning experience, we also encourage you to review the Essential reading we assign to our students before watching the lecture.

Kirsten Stasio

Presented by: Kirsten Stasio, Adjunct Lecturer, Civil and Environmental Engineering, Stanford University; CEO, Nevada Clean Energy Fund (NCEF)
Recorded on: May 15, 2024  Duration: 68 minutes

Table of Contents

(Clicking on a timestamp will take you to YouTube.)
00:00 Introduction 
02:06 What Does “Renewable” Mean? 
15:29 What Role Do Renewables Play in Our Energy Use? 
27:12 What Factors Affect Renewable Energy Project Development?

Lecture slides available upon request.

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Additional Resources About
Renewable Energy

Stanford University

Fast Facts Sources

More details available on request.
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