The global energy industry is experiencing major transformations driven by the necessity to cut carbon dioxide emissions and shift towards renewable energy sources (RES). It is important to note that the Paris Agreement on Climate Change and the Kyoto Protocol impose specific obligations on the participating countries to limit global warming. The goal of the Paris Agreement is to reduce global carbon dioxide emissions by 55 percent by 2030. This, in turn, requires countries to pay close attention, which is reflected in the acceleration of investments in renewable energy. In this regard, the European Union has set a target to increase this share to 60 percent by 2030. These steps have helped reduce carbon dioxide emissions and develop infrastructure for clean energy.

However, for developing countries, there are still some obstacles in the form of financial difficulties related to the energy transition and the lack of technology, which remain among the most important issues. Therefore, some countries in Africa and Asia, despite the potential of renewable energy sources, face difficulties in making this transition due to limited technologies and financial resources. The transition to clean energy sources is one of the key areas in the fight against climate change. Thus, the transition process is accompanied by a number of challenges.

For example, worth mentioning economic barriers, which are considered a significant obstacle due to the high costs of implementing clean technologies. The production, installation, and maintenance of wind and solar power plants require substantial investments. Although the cost of solar panels and wind turbines is gradually decreasing, many developing countries cannot afford large-scale development of these technologies without government support or international subsidies. Additionally, government subsidies for fossil fuels such as oil, gas, and coal create further imbalances and slow down the transition to clean alternatives.

From a technological perspective, the instability of electricity production from renewable sources remains a serious challenge. Wind and solar energy depend on weather conditions, requiring the development of energy storage systems and adaptive grids. Modern storage technologies, such as lithium-ion batteries, are costly. Innovative solutions, such as hydrogen energy, are needed. Outdated electrical grids are not always capable of efficiently distributing electricity from decentralized sources. Here, once again, it is possible to make a clear parallel with economic barriers. Political factors occupy an essential role in the development of renewable energy sources. While some countries actively support the transition at the government level, others lack clear strategies and legislative initiatives. International agreements, such as the Paris Agreement, promote global coordination, but their implementation depends on national policies. A successful clean energy transition requires a comprehensive approach that includes innovation, government support, and international cooperation.

Broadly speaking, there are key elements which serve to escape the barriers stipulate the development of renewable energy sources such as strengthening state support and international cooperation, gradual phasing out of fossil fuel subsidies and focusing investments on clean energy and the support provided by the state in the form of subsidies and tax incentives.

Certainly, it’s necessary to note the valuable experience of Germany in the context of promoting the renewable energy system. A feed-in tariff is a method which is supposed to reinforce the investment in the renewable energy industry and is actively implemented by the German energy system. Consequently, Germany is one of the leaders in the development of renewable energy sources (RES) due to its feed-in tariff system and government subsidies.

The main function of renewable energy technology is ensuring the fixed price and long-term contracts (generally 20 years) to renewable energy producers. It mandates that utilities purchase renewable energy from generators at a predetermined rate. At the same time this policy will lead to reducing greenhouse gas emission. Nowadays, the feed-in tariffs (FIT) beside feed-in premiums (FIP) remain the most used renewable power generation policy employed at the national and local levels in several countries of the European Union. Above mentioned policy guarantees investment stability and financial backing for all types of renewable energy (wind power, solar energy, biomass, hydroelectricity, etc.) enabling Germany to see a substantial rise in the proportion of renewable energy in its electricity consumption.

A feed-in tariff is a policy mechanism aimed at generation of renewable electricity provided by the German Renewable Energy Sources Act.