The Transition towards Renewable Energy: The Challenge of Sustainable Resource Management for a Circular Economy

Abstract

The transition towards renewable energy is not as impressive as expected when considering the wide array of efforts undertaken. Energy-abundant countries do not have sufficient stimuli to curb the use of fossil fuels; some of them even work on increasing international supply. Greenhouse gas emissions remain high. As the world population grows, more attention must be devoted to the transition towards renewables. This transition requires additional resources and leaves behind waste that must be recycled. Without a circular economy, the transition towards renewable energy will require extra power, resulting in a spiral that is very detrimental to the environment of our planet. This paper provides a picture of the current situation, discusses tendencies, and systemizes issues that must be tackled.

1. Introduction

The world’s transition towards renewable energy could be more balanced. European countries care about the Green Deal and emphasize reducing the use of fossil energy [1,2]. Other countries [3,4,5], especially energy-abundant ones, have less stimuli to undertake this transition.

The transition towards renewable energy is a long-term goal, conditioned by the urgent need to reduce CO₂ emissions; alas, this is not an easy task [6,7,8].

Despite all the efforts and measures worldwide, the consumption of primary energy resources and greenhouse gas emissions remain the same (see Figure 1, Figure 2 and Figure 3 below).

The energy demand will rise in the future since Earth’s population continues to grow. A strong relationship between GDP growth and energy consumption, especially in less developed countries, is known to economists [10,11,12].

The statistical data provided below show a clear picture of future population increases. Africa’s population has the greatest momentum (Figure 4).

Due to the poverty of the majority of countries in Africa [13], the use of energy is comparatively low due to affordability concerns. However, this poverty will diminish in the future, inevitably increasing energy demand and placing related pressures on the ecology of our planet. A forecast of the total population of Africa until 2050 is provided in Figure 5. A forecast of the share of the population living in extreme poverty in Africa until the year 2065 is provided in Figure 6.

2. Transition towards Renewable Energy: Challenges Related to Circular Economy

The single way to curb air pollution caused by primary energy consumption is switching towards renewables, such as solar energy, wind, wave power, etc.

The transition towards renewables involves a wide array of barriers. The barriers are broad, involving behaviours and attitudes, which have to be resolved through communication and raising awareness, encouraging the social responsibility of consumers and industries [14,15,16], and promoting company transparency in terms of performance sustainability [17].

Other barriers include the additional costs required to obtain energy-efficient equipment, assemble solar batteries, or purchase green energy from grids [18,19]. Additionally, more sustainable production costs make greener products more expensive. Therefore, innovations in that area are essential. They could make the transition towards renewables cheaper, e.g., producing thinner and more efficient solar panels [20] or curbing energy demand via innovative solutions [21]. Low-energy construction and transport are essential constituents of demand reduction in relation to energy sources [22].

Although the transition towards renewable energy is needed since CO₂ emissions have to be curbed, it will only be efficient if resources are managed sustainably.

The problem is that such a transition results in additional resource demand, and these resources become waste after reaching the end of their life cycle. This waste has to be recycled. To understand the complexity and importance of resource management efficiency, let us use an example of solar panels. Currently, installed panels have to be recycled in 20–30 years. Solar panel sandwiches will have to be dismantled into composite parts. Some of those parts must be burned or, using other technologies, transformed into resources that could be re-used. Rare metals must be extracted and processed differently than glass and plastics.

Some industries already use an additive approach to manufacturing [23] to make dismantling and recycling easier and more efficient. However, the solar industry has not yet come up with such solutions.

In summary, the example of the photovoltaic industry shows that the need to process used solar panels results in demand for additional energy and other resources, such as capital, human resources, and time, diminishing the initial effect of transitioning towards renewables.

The transition towards renewable energy, be it solar energy, wind, surf energy, or any other type of renewable energy, must be carried out by considering resource management in advance, accounting for all equipment life cycles. This cycle (we can call it the supply chain in specific contexts) has to be managed prudently to adhere to the principles of a circular economy. This cycle has to start, not in the production stage, as seen now, it must start with thorough and responsible design, which would make recycling easy and efficient [24]. This issue is complicated since, for example, solar panels, an essential part of the photovoltaic industry, are produced by numerous companies that use their own design and production technologies, making it extremely complicated to separate layers of obsolete solar panels of different sizes and technologies when sorting these used materials and recycling them. China is an essential player in solar panels production. Their solar panels are exported worldwide. The absence of international standards makes recycling expensive, sometimes leading to used panels being treated as non-recyclable waste and even buried—a serious crime in terms of sustainability [25].

The problems facing solar energy panels are not unique; thus, solutions have to be found.

Similar issues arise when recycling wind turbines and other equipment, such as solar batteries.

To conclude, the transition towards renewable energy must be implemented by embracing all value chains, from production to equipment utilization when at the end of their lifecycle. If these measures are not taken, immense resources will be wasted and pollution will not be mitigated.

The intersection of the circular economy and the transition towards renewables must be identified and discussed to visualize the overall challenges facing the circular economy caused by the transition toward renewable energy,

Until now, just one example of the challenges facing sustainable resource management for a circular economy related to the transition towards solar energy has been discussed.

The aim of this publication is to compose the available fragments into one specifically composed picture, disclosing a variety of implications involved in the inevitable transition and conditioning the economic rise of economies that possess the resources needed to ensure the future of our planet. Since the topic of the circular economy is vast, we will focus on the consequences of short-sighted policies tackling one issue which, in turn, causes other ones.

A road map and a predictive capacity assessment are necessary to conserve resources, be it capital, unforeseen additional energy demand, or human resources. What is even more critical is that time is wasted as well, which means we are most likely moving towards numerous still-unpredicted consequences at incredible speed.

When we ask a student to define a circular economy, we will receive a sufficiently correct answer: the need to reduce consumption, prolong the use of goods, and recycle in order to achieve a so-called “closed-loop” that delays the extraction of natural resources. The 3R principle relates to “Reduce, Re-use, and Recycle.” The transition towards a circular economy is closely related to the transition towards renewable energy. At first glance, gradual reliance on solar and wind energy linearly positively affects the move towards the use of sustainable natural resources. As we will see, the relationship between a more circular economy and switching to power generated by renewables is not linear since it requires various financial, energy-related, and natural resources. Therefore, we must be prepared for the issues that will inevitably emerge when transitioning to renewable energy. We must understand them clearly to overcome these hurdles with preparedness and as efficiently as possible.

Special attention must be paid to the intersection of the circular economy and the transition towards renewables.

Understanding the relationship and differences between the circular economy and the transition towards renewable energy must be facilitated.

A vast strand of the literature is devoted to multiple facets of the circular economy. Similarly, numerous studies have been designed to tackle the many problems related to the transition towards renewable energy [26,27]. Let us briefly discuss the three fundamental principles of the circular economy: “Reduce, Re-use, and Recycle”. Let us return to the main principles of circular economy and consider how they can be applied to the energy transition towards renewables.

The first principle, “reduce”, can increase energy consumption efficiency, diminish energy intensity, and reduce consumption via decreased demand and behavioural changes.

Notably, despite certain similarities, differences in connotations due to specific processes are present (see

Table 1. The specifics of the “Reduce“ principle in application.

The Transition towards the Circular Economy	The Transition towards Renewable Energy
Diminishing consumption	Increased efficiency (innovations) Behavioural changes (energy stewardship)

).

Table 1,

Table 2. The specifics of the “Re-use” principle in application.

The Transition towards the Circular Economy	The Transition towards Renewable Energy
Collecting, sorting waste, and recycling	Recycling solar panels and batteries

and

Table 3. The specifics of the “Recycle“ principle in application.

Transition towards the Circular Economy	Transition towards Renewable Energy
Collecting, sorting waste. and recycling	Recycling solar panels, batteries, and wind turbines

illustrate that the “Reuse” principle does not apply to the transition to renewable energy, and “Recycle” encounters obstacles in terms of implementation. In addition, there are peculiarities specific to the transition towards renewable energy that need to be considered in terms of circular economy principles.

The peculiarities of the transition towards renewable energy that are yet to be considered in terms of a circular economy are summarized below (Figure 7).

To generalize, the peculiarity of renewable energy development is that it requires other valuable resources, such as land (e.g., solar energy farms, windmills, wind turbines, and hydropower plants), financial resources, such as investment in grids, and the extraction of rear earth resources, which are needed for the production of batteries (latter resulting in inevitable decentralization through comparative energy storage independence, reducing grid loads). The circular economy needs to consider the rise of additional pressure on the transition process of using scarce resources.

It is imperative to see that some resources, such as rare metals, which are required for the production of batteries are only available in some countries; other countries appear to be in a much weaker position in terms of these resources [35]. Increasing demand for rare metals can be met by increasing the scale of mining, inevitably raising prices, similar to what happens in other similar mining industries [36].

The demand for batteries is accelerating in step with attempts to transition towards renewable energy use, with Lithium-ion batteries being in the highest demand (Figure 8). Electric car batteries are the primary drivers of this market.

Worldwide reserves of rare earth resources are depicted below (Figure 9). It shows that several countries, such as China, Vietnam, Russia, Brazil and India, possess a significant part of our planet’s reserves, which may result in future geopolitical tensions soon.

There is an urgent need for novel economic policies [37,38] and strategies to secure our future [39] via well-designed, purposely managed, and socially responsible investments [40] (Majewska, A.; Bełtowska, P. 2023).

3. Concluding Insights

World primary energy consumption has not decreased despite numerous policies and increased awareness.

Renewables and hydroelectricity comprise a minor share of overall energy consumption. Leading positions in terms of energy production are still held by fossil fuels, specifically oil, natural gas, and coal. Nuclear energy is located between fossil fuels and renewables (in this paper, we do not consider the role of nuclear power, which has long-term harmful impacts on the planet);

Carbone dioxide emissions remain high due to the composition of the consumed energy mix.

The world population continues to grow. Africa is the leading continent in terms of population growth. Currently, due to poverty, Africa contributes little to the increasing energy demand. However, this situation will inevitably change in the future, with diminishing poverty and respective increases in energy affordability.

Transitioning towards renewables remains the primary way of curbing the deterioration of our planet. However, this path is not easy since it requires changes to behaviours and attitudes concerning energy consumption, brought about via the increased social responsibility of consumers and industries. Sustainability reporting must become the usual practice, enhancing the transparency of companies. Barriers, such as additional costs, have to be absorbed by consumers and producers. Innovations are expected to raise demand, and energy stewardship and diminished costs for renewables transition through novel technological solutions are needed.

Special attention must be paid to the intersection of the circular economy and the transition towards renewables. It means that the development of renewable energy requires significant amounts of additional resources, specifically land and sea, financial resources for building and servicing infrastructure (e.g., grids), and rare earth elements (needed for energy storage in batteries);

The main share of all rare earth elements can be found in China, Vietnam, Russia, Brazil and India. The sharp rise in demand for those rare elements may trigger serious additional geopolitical tensions.

Recycling all equipment needed for the growth of renewable energy, such as obsolete solar panels, wind turbines, and batteries, still needs to be solved. The transition towards renewable energy is necessary; this process must be thoroughly thought through and implemented through sustainable resource management to achieve a circular economy.

4. Directions of Further Research

Further research must tackle a wide range of issues related to the transition towards renewable energy, tackling the challenge of sustainable resource management for a circular economy. The following directions would allow us to fill in the existing gaps:

• Curbing primary resource consumption by reducing demand via new technologies, economic policies, and international agreements;
• Increase innovative renewables by expanding the use of batteries;
• Manage all supply chains involving the recycling of obsolete equipment, such as solar panels, wind turbines, windmills, and batteries;
• Solve problems related to the extra costs of renewable energy encountered by producers and consumers;
• Predict the consequences of rising demand for rare earth elements related to their mining and geopolitical risks;
• Look for technological and managerial solutions that allow for the use of untapped resources contained in used batteries;
• Devise policies and transfer knowledge to employ renewable resources in African countries to prepare to meet the inevitable energy demand increases in this developing continent.