Lesser-Known Challenges that All Renewable Farm Operators Face

Did you know that renewable energy sources can supply 2/3 of the current total global energy? Renewable energy is the energy that is harvested from natural sources such as sun and wind. Consumers now understand the benefits and need to transform into a carbon-free, renewable source. Consequently, there is a gaining momentum as most developed countries are joining the transition. A good example of such countries is Denmark. Denmark started its mass transition into renewable sources of energy as early as two decades ago. The country has registered 8% real-time GDP growth while creating more employment opportunities in the energy sector. In other words, it is possible to fuel employment and economic growth while reducing the contribution of non-renewable sources of energy.

However, amidst all these, some countries and organizations are still reluctant to fully adopt renewable energy technologies due to less-known hurdles that all renewable farm operators face. While most people are yet to adapt to renewable sources of energy, farm business owners and operators still experience barriers to entry, transmission and technical barriers, political barriers, availability of power, and cybersecurity challenges. All these challenges exist in tandem to derail the development and application of renewable sources of energy globally.

• Cybersecurity challenges

The first less-known challenge that renewable energy business owners face has everything to do with imminent cybersecurity threat. While it may not sound anything close to ordinary, hi-tech hackers can exploit various security loopholes in the critical renewable energy infrastructure to disable the entire power grid and shut down generator farms. A first of its kind cyber-attack on solar and wind renewable energy was against sPower, a renewable energy provider in Utah. The company was the first to be targeted by a cybersecurity threat and the first power grid operator to lose its connection with power generation installations in the USA.

In brief, when a cyberattack is timed at the right moment, it could take out a significant portion of a country’s entire power supply, disrupting its productivity and economy severely. Due to such potentially severe, long-reaching impacts of a breach in system security, it is therefore important for employees working in the renewable space to employ strong cybersecurity practices like using strong passwords, avoiding any suspicious links or using a VPN to encrypt their online and business activities conducted through the Internet.

• Transmission and technical barriers

There is an already-existing meticulous infrastructure for fossil fuel plants and nuclear power, especially in urban centers. Factories, too, have all their main grids connected to fossil fuel stations. Therefore, most renewable farm operators cannot extensively leverage the existing infrastructure. With such technical barriers, companies and farm operators cannot make sustainable profits to compete favorably with investors from non-renewable energy plants.

Therefore, it means that all operators are forced to move their operations to areas where there is little or no existing infrastructure, such as offshores or countryside. However, that is still a dimming hope because most consumers are concentrated in urban areas.

• Political barriers

There are no predictable revenue systems for the renewable energy industry today, thanks to insufficient regulations and policies that favor its development. Moreover, some countries have policies and regulations which support the adoption of renewable energy at either regional or household level. For instance, a family would prefer to have its own solar panel instead of feeding on a national grid. Some countries also don’t have explicit policies to protect private investors. Remember, the industry is already dominated by private investors because it requires a large amount of capital to run a farm.

Unfavorable regulatory policies are a great hindrance that farm operators have to deal with since they scare away potential investors. Investing in a high-grid renewable energy power plant costs a fortune and is best when many investors pull resources together. 

• Barriers to entry

Another challenge that farm operatives have to deal with is the industry’s barriers to entry, which include market power and costs of investments. Already-existing energy providers are also well-established in terms of market share, customer trust, and reliability. In other words, it isn’t an easy task to convince a factory to jump into your grid, whereas a cheaper alternative is well-established.

Therefore, not all investors and farm operators live to achieve their dream of operating the largest renewable energy power plant in the region. Moreover, as a farm operator, you must show your muscle and ability to scale up for investors to take your proposal seriously. You must be able to meet large amounts of energy production to be relevant.

• Ecological and geographical powers

Not all countries are endowed to harvest and utilize renewable sources of energy like sun and wind. Therefore, Farm operators have to look for the best geographical location where the sun and wind energy are steady. Otherwise, investment in areas where these sources are sporadic will only yield to intermittent energy, which isn’t profitable at all since it cannot serve at large scale.

Despite all these challenges, renewable energy is indispensable if everyone wants to live in a world that doesn’t over-rely on fossil fuels that promote greenhouse gas emissions. That way, the earth can be saved from global warming effects, which are already experienced in some parts of the world with sweeping climate changes. Therefore, farm operators and investors must think outside the box to overcome the above challenges and prevail!