What Are the Five Major Types of Renewable Energy?

The Renewable Energy Age

By Govind Bhutada-June 9, 2022

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Awareness around climate change is shaping the future of the global economy in several ways.

Governments are planning how to reduce emissions, investors are scrutinizing companies’ environmental performance, and consumers are becoming conscious of their carbon footprints. But no matter the stakeholder, energy generation and consumption from fossil fuels is one of the biggest contributors to emissions.

Therefore, renewable energy sources have never been more top-of-mind than they are today.

The Five Types of Renewable Energy

Renewable energy technologies harness the power of the sun, wind, and heat from the Earth’s core, and then transforms it into usable forms of energy like heat, electricity, and fuel.

The above infographic uses data from Lazard, Ember, and other sources to outline everything you need to know about the five key types of renewable energy:

Energy Source	% of 2021 Global Electricity Generation	Avg. levelized cost of energy per MWh
Hydro	15.3%	$64
Wind	6.6%	$38
Solar	3.7%	$36
Biomass	2.3%	$114
Geothermal	<1%	$75

Editor’s note: We have excluded nuclear from the mix here, because although it is often defined as a sustainable energy source, it is not technically renewable (i.e. there are finite amounts of uranium).

Though often out of the limelight, hydro is the largest renewable electricity source, followed by wind and then solar.

Together, the five main sources combined for roughly 28% of global electricity generation in 2021, with wind and solar collectively breaking the 10% share barrier for the first time.

The levelized cost of energy (LCOE) measures the lifetime costs of a new utility-scale plant divided by total electricity generation. The LCOE of solar and wind is almost one-fifth that of coal ($167/MWh), meaning that new solar and wind plants are now much cheaper to build and operate than new coal plants over a longer time horizon.

With this in mind, here’s a closer look at the five types of renewable energy and how they work.

1. Wind

Wind turbines use large rotor blades, mounted at tall heights on both land and sea, to capture the kinetic energy created by wind.

When wind flows across the blade, the air pressure on one side of the blade decreases, pulling it down with a force described as the lift. The difference in air pressure across the two sides causes the blades to rotate, spinning the rotor.

The rotor is connected to a turbine generator, which spins to convert the wind’s kinetic energy into electricity.

2. Solar (Photovoltaic)

Solar technologies capture light or electromagnetic radiation from the sun and convert it into electricity.

Photovoltaic (PV) solar cells contain a semiconductor wafer, positive on one side and negative on the other, forming an electric field. When light hits the cell, the semiconductor absorbs the sunlight and transfers the energy in the form of electrons. These electrons are captured by the electric field in the form of an electric current.

A solar system’s ability to generate electricity depends on the semiconductor material, along with environmental conditions like heat, dirt, and shade.

3. Geothermal

Geothermal energy originates straight from the Earth’s core—heat from the core boils underground reservoirs of water, known as geothermal resources.

Geothermal plants typically use wells to pump hot water from geothermal resources and convert it into steam for a turbine generator. The extracted water and steam can then be reinjected, making it a renewable energy source.

4. Hydropower

Similar to wind turbines, hydropower plants channel the kinetic energy from flowing water into electricity by using a turbine generator.

Hydro plants are typically situated near bodies of water and use diversion structures like dams to change the flow of water. Power generation depends on the volume and change in elevation or head of the flowing water.

Greater water volumes and higher heads produce more energy and electricity, and vice versa.

5. Biomass

Humans have likely used energy from biomass or bioenergy for heat ever since our ancestors learned how to build fires.

Biomass—organic material like wood, dry leaves, and agricultural waste—is typically burned but considered renewable because it can be regrown or replenished. Burning biomass in a boiler produces high-pressure steam, which rotates a turbine generator to produce electricity.

Biomass is also converted into liquid or gaseous fuels for transportation. However, emissions from biomass vary with the material combusted and are often higher than other clean sources.

When Will Renewable Energy Take Over?

Despite the recent growth of renewables, fossil fuels still dominate the global energy mix.

Most countries are in the early stages of the energy transition, and only a handful get significant portions of their electricity from clean sources. However, the ongoing decade might see even more growth than recent record-breaking years.

The IEA forecasts that, by 2026, global renewable electricity capacity is set to grow by 60% from 2020 levels to over 4,800 gigawatts—equal to the current power output of fossil fuels and nuclear combined. So, regardless of when renewables will take over, it’s clear that the global energy economy will continue changing.