Challenges and Opportunities Towards the uptake of renewable energy Challenges The lack of robust data and co-ordination across some demand sectors, such as agriculture, hinders progress tracking, policy development and effective integration of renewable energy solutions. The capital-intensive nature of renewable energy investments, coupled with the cost of replacing existing infrastructure, poses affordability challenges. Inadequate policy frameworks and incentives for renewables adoption, as well as the siloed nature of energy policies, impede the widespread uptake of renewables. Persistent resistance from fossil fuel companies slows the transition to renewables in multiple sectors, hindering progress towards sustainable energy systems. Technological limitations and high upfront costs for renewable solutions in high-temperature industrial processes, long-haul transport and certain building types pose challenges in achieving widespread decarbonisation. Investments in grid infrastructure development and permitting policies are current bottlenecks for the integration of renewables in electric grids. Opportunities Adoption of renewables in all demand sectors can reduce dependence on fossil fuels, protecting them from price volatility and supply shocks. Rising fossil fuel prices, declining renewable costs, and increased international funding for energy transition projects provide opportunities for accelerated renewables uptake in all sectors. Sectors can benefit from cost savings, improved sustainability practices and increased competitiveness by embracing renewables. Integration of renewables offers opportunities for cost reduction, energy savings, and improved resilience, particularly for low-income households. Enhanced co-ordination among government ministries and stakeholders can lead to improved policy frameworks and incentives, fostering the adoption of renewables across sectors. Renewables create social value through generating employment opportunities, improving energy security and access, bringing considerable health benefits, reducing gender inequalities and strengthening local value chains. (See GSR 2023 Economic & Social Value Creation Module.) Regional interconnections and improved storage solutions can help integrate a higher share of renewables into the energy system. Investment