Digitalization and Consumers’ Trust in Renewable Energy
By Ashkan Pakseresht
Interest in green energy remains on the rise, and an increasing number of businesses are making it a priority in their communications. While governments and industries work to reduce reliance on traditional fossil fuels by investing in renewables, it is crucial to preserve the public trust in the value of renewable energy.
The energy systems and power infrastructure has played and will continue to play a significant role in the economy’s decarbonization. Decarbonizing the energy system entails replacing fossil fuels with low-carbon technologies such as renewables and hydrogen, as well as an emphasis on energy efficiency. Over the last 15 years, we have seen a remarkable shift from fossil fuels toward more green energy systems throughout the world [1, 2]. At the EU level, the share of renewable energy from total energy consumption grew steadily from 9.6 % in 2004 to 22.1 % in 2020 [3]. Estimates suggest that electricity consumption may double by 2050, due to growing demand as electricity replaces fossil fuels to power cars, and households’ electricity or heating [4].
Achieving net zero emissions will require changes in consumers’ behaviors to decarbonize their lifestyles and they must receive transparent information on the carbon content of tariffs to make informed energy decisions. Sustainability is becoming increasingly essential to customers when selecting a product, expecting firms to utilize sustainably sourced materials, reduce company CO2 emissions and energy consumption, and demonstrate transparency in how a product is manufactured. However, recent research indicates that consumers often find it difficult to trust the information supplied on manufactured products regarding their environmental claims or pledges, particularly the use of green energy [5, 6].
That lack of consumer trust comes primarily from an overflow of irrelevant and sometimes confusing information. Moreover, several research studies have demonstrated consumers’ concerns about greenwashing and self-congratulatory communication. Hence, there is an urgent need that the electricity supplied through the utility grids to provide information regarding how it was generated, its origin and its environmental impacts (e.g., carbon footprint). Lately, there have been attempts to fill this gap through for example Renewable Energy Certificates (REC) in accounting, tracking, and assessing the ownership of energy supply and consumption. Yet, it is still not possible for consumers to easily understand what portion of the energy they are consuming or using for the products/services are from renewable sources and which sources.
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