Renewable energy comes from natural sources that replenish themselves continuously, unlike fossil fuels that take millions of years to form. The main types include solar, wind, hydropower, biomass, and geothermal energy. Each type offers distinct advantages for organisations working towards sustainability goals, and understanding these differences helps businesses make informed decisions about their energy transitions.
What exactly is renewable energy and why does it matter?
Renewable energy is power generated from natural resources that naturally regenerate within a human timescale. Unlike coal, oil, and natural gas which form over millions of years and deplete when used, renewable sources like sunlight, wind, and flowing water continuously replenish themselves.
The distinction between renewable and non-renewable energy matters enormously for climate action. Burning fossil fuels releases carbon dioxide that’s been locked underground for millennia, driving climate change. Renewable energy sources produce little to no direct emissions during operation, making them essential tools for reducing carbon footprints.
For organisations, this has practical implications beyond environmental responsibility. Companies working towards Science Based Targets initiative (SBTI) commitments or preparing for CSRD reporting need to demonstrate measurable progress on emissions reduction. Transitioning to renewable energy directly addresses Scope 2 emissions from purchased electricity and significantly improves performance in frameworks like CDP climate disclosures.
What are the main types of renewable energy available today?
Understanding the main renewable energy sources helps organisations identify which options best suit their operational needs and sustainability strategies:
- Solar energy – Captures sunlight through photovoltaic systems that generate electricity or solar thermal systems that capture heat, making it ideal for businesses with available roof space or land
- Wind energy – Harnesses moving air to spin turbines through onshore wind farms or offshore installations that take advantage of stronger, more consistent winds over water
- Hydropower – Uses flowing or falling water to drive turbines through large dams, run-of-river systems, or small-scale installations, providing reliable and adjustable energy output
- Biomass energy – Comes from organic materials like wood, agricultural waste, or energy crops that release energy when burned or converted into biofuels, working well for industries with organic waste streams
- Geothermal energy – Taps into heat beneath the Earth’s surface through power plants that use underground steam or heat pumps for heating and cooling buildings, providing constant power regardless of weather conditions
These renewable energy types work best as part of a diversified strategy rather than in isolation. Solar and wind complement each other since solar produces most during sunny days whilst wind often picks up at night, creating a natural balance throughout the day. Adding hydropower or biomass provides dispatchable power that fills gaps when weather-dependent sources aren’t producing, ensuring consistent energy supply. By combining multiple renewable sources, organisations can achieve greater reliability, maximise their emissions reductions, and build resilience against fluctuations in any single energy type. This integrated approach becomes particularly valuable when aligning energy procurement with sustainability reporting requirements and long-term decarbonisation targets.
How do businesses decide which renewable energy type to use?
Choosing the right renewable energy sources requires balancing practical considerations with sustainability objectives. Organisations evaluate several interconnected factors:
- Geographic location – Fundamentally shapes which renewable options make sense, as facilities in windy regions might prioritise wind energy whilst those in sunny climates would lean towards solar, with geothermal only working in specific geological zones
- Energy needs and consumption patterns – Businesses with high daytime electricity demand often find solar effective since production peaks coincide with usage, whilst continuous operations might prioritise sources like hydropower that provide steady baseload power
- Infrastructure requirements – Vary dramatically between renewable types, with solar panels on existing roofs requiring minimal disruption whilst geothermal systems involve significant ground work
- Sustainability reporting frameworks – Increasingly drive decisions as organisations working towards SBTI targets need to demonstrate emissions reductions, companies preparing CDP disclosures benefit from clear renewable procurement strategies, and the EU Taxonomy requires specific environmental performance criteria
These decision factors rarely work in isolation, and successful renewable energy strategies address them holistically. Different industries prioritise different renewable sources based on their operational realities. Data centres with massive electricity needs often pursue large-scale wind or solar contracts that can meet their continuous power demands. Food manufacturers with organic waste streams might implement biomass systems that turn operational by-products into energy. Retail chains frequently choose solar installations across multiple sites to collectively reduce their carbon footprint whilst benefiting from distributed generation. The most effective approach involves assessing all these elements together, ensuring the selected renewable energy mix delivers both operational reliability and measurable progress towards sustainability commitments.
Conclusion
Renewable energy types each offer distinct pathways for organisations committed to sustainability. Solar, wind, hydropower, biomass, and geothermal sources provide clean alternatives to fossil fuels, directly supporting emissions reduction and climate action goals. The right choice depends on geographic advantages, operational needs, and alignment with reporting frameworks like SBTI, CDP, and CSRD.
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If you are interested in learning more, reach out to our team of experts today.
