Renewable energy is becoming an increasingly important sector, as countries around the world seek to reduce their reliance on fossil fuels. If your business is operating in this field, it’s important to be aware of the legal obligations you have to comply with. In this article, we’ll take a look at some of the key compliance issues you need to be thinking about, and how you can effectively meet your obligations.
Growth in renewable energy markets
2015 and the COP21 Paris climate accords worked as a major catalyst for forward momentum in the renewable energy space. The summit resulted in 195 countries signing the Paris Agreement, which set a goal of limiting global temperature rise to well below 2 degrees Celsius. This agreement was a major step forward in international cooperation on climate change, and has had a significant impact on renewable energy markets. The international renewable energy agency (IRENA) reports that the total investment in renewable power and fuels reached record levels in 2017, with more than $279 billion USD spent. This was a significant increase from the $242 billion USD invested in 2016, and further evidence of the growing importance of renewables.
In addition to the Paris climate accords, subsequent COP summits have also spurred governmental action to make entry into the renewable energy sector easier. For example, the COP22 summit in 2016 resulted in the launch of the Marrakech Partnership for Global Climate Action. This partnership is aimed at supporting the implementation of the Paris Agreement and includes a number of initiatives to promote renewable energy. The growth of these sorts of initiatives is another indication of the increasing importance of renewables.
Overall, the past decade has seen tremendous growth in the renewable energy sector. According to IRENA, the world now has more than twice as much installed capacity of renewable power as it did just 10 years ago. And this trend is only expected to continue in the coming years, with IRENA projecting that renewable energy could make up nearly 30% of the world’s total power mix by 2030.
With this rapid growth comes increased scrutiny, and businesses operating in the renewable energy sector need to be aware of the compliance issues they need to address. let’s take a look at some of the key compliance considerations for businesses in this space.
Important regulatory factors in renewable sectors
Localised environmental impacts will be a major consideration in the planning stages of any renewable project. And depending on the size and scope of the project, you may also need to obtain resource consents from local authorities. It’s important to be aware of the potential environmental impacts of your project and to have a plan in place to mitigate them.
Businesses operating in the renewable energy sector also need to be aware of the various regulations they need to comply with. These can vary depending on the location of the project, but may include things like building codes and environmental regulations. Additionally, renewable energy projects can have a significant impact on local council or governmental plans. As such, it’s important to consult with relevant authorities early on in the planning process to ensure that your project is aligned with local plans.
The impact of scale on renewable projects
The renewable energy sector is growing rapidly, and projects are becoming increasingly large in scale. This has a number of implications for businesses operating in the space. First, it’s important to consider the impact that your project will have on the surrounding area. Will it be disruptive to local residents or businesses? How will you manage waste from the project?
Second, large-scale projects will often require a significant investment of capital. As such, it’s important to have a solid business plan, with the data and infrastructure in place to ensure that your project is financially viable. As renewable energy becomes increasingly important, businesses operating in the space need to be aware of the compliance issues they need to address. let’s take a look at some of the key compliance considerations for businesses in this space.
Localised environmental impacts will be a major consideration in the planning stages of any renewable project. And depending on the size and scope of the project, you may also need to obtain resource consents from local authorities. It’s important to be aware of the potential environmental impacts of your project and to have a plan in place to mitigate them.
Finally, large-scale renewable energy projects can have a major impact on the grid. As such, it’s important to work with your local utility to ensure that your project will be able to seamlessly integrate into the existing grid.
The role of government in renewable energy compliance
Governments around the world are playing an increasingly active role in promoting renewable energy. In many cases, this takes the form of incentives and subsidies for businesses operating in the space. However, it’s important to be aware of the compliance requirements that come with these incentives. Failure to comply with these requirements can result in significant penalties, including the loss of government support.
Additionally, governments are also establishing renewable energy targets, which businesses need to be aware of. These targets can have a major impact on the planning and development of renewable energy projects. As such, it’s important to consult with relevant authorities to ensure that your project is in line with local targets.
The compliance challenges of a rapidly changing sector
The renewable energy sector is growing rapidly, and new technologies are being developed at a rapid pace. This presents a number of compliance challenges for businesses operating in the space. First, it’s important to stay up-to-date with the latest changes in technology and regulations. New technologies may require different compliance considerations, and failure to comply with the latest regulations can result in significant penalties.
Second, the rapid pace of change can make it difficult to obtain the necessary permits and approvals for projects. As such, it’s important to have a solid plan in place and to consult with relevant authorities early on in the process.
Finally, the renewable energy sector is global in nature, and compliance requirements can vary from country to country. As such, it’s important to be aware of the compliance requirements in each market that you’re operating in.
The role that compliance software plays in this equasion
As the renewable energy sector grows in scale and complexity, compliance software is becoming an increasingly important tool for businesses operating in the space. Compliance software helps businesses to manage their compliance obligation and to ensure that they are meeting the latest regulations. Additionally, compliance software can help businesses to streamline the permit and approval process for new projects.
This is particularly important in a rapidly changing sector like renewable energy, where new technologies and regulations are emerging constantly. Compliance software can help businesses to keep up with these changes and to ensure that they are operating in compliance with the latest standards.
Totum Compliance as a modular compliance software solution
Totum Compliance is a modular compliance software solution that can be tailored to the specific needs of businesses operating in the renewable energy sector. Totum Compliance helps businesses to manage their compliance obligation, to ensure that they are meeting the latest regulations, and to streamline the permit and approval process for new projects.
The Totum Compliance software modules include:
– Licences
– Obligations
– Audit and assurance
– Risks
– Enterprise
Totum Compliance software is designed to be scalable, so that it can grow with your business as your compliance needs change. Additionally, the Totum Compliance team can provide expert assistance with tailoring the software to your specific requirements.
