READy
Renewable Energy Action
on Deployment
A publication of the IEA-RETD Implementing Agreement
Foreword(Transpose into a personal form for HJK)
Renewable energy technologies are on the verge of a new era. In many countries and regions, renewable energy is already responsible for meeting a substantial share of energy demand. The rapid and substantial progress of renewable energy in recent years has been driven by policies of local, national and regional authorities, in close cooperation with the business community, as well as continued technological innovation and cost reductions in energy generated with renewable sources.
Although progress in building new energy systems is considerable, the world is facing new challenges. Issues like energy independence, eradicating energy poverty, combating climate change and improve the crisis-robustness of energy systems are asking to accelerate the deployment of renewables. Recent events that have had large impacts on societies around the world – e.g., the financial crisis, the nuclear accident in Fukushima, large oil spills, new findings in climate change science - have further highlighted this need.
Achieving energy systems that will meet tomorrow’s energy demand in a sustainable, responsible way will require a large effort on the part of policy makers and business leaders. Today’s energy, environmental and social challenges—ranging from climate change to energy security and the need for universal access to energy services—justify the conclusion that renewables can and should be accelerated.
The International Energy Agency’s Implementing Agreement on Renewable Energy Technology Deployment (IEA-RETD) is a group of nine countries that advocates for a significantly higher utilization of renewable energy technologies. RETD believes international cooperation and public-private partnerships are crucial means to establish a more rapid and efficient deployment, and that it is important to step up to the plate today.
This READy book has been commissioned for the purpose of inspiring and guiding action to begin now. To the readers – including policy makers and other decision makers - the READy book presents a variety of policy options that have proven to accelerate the deployment of renewable energy technologies, based on experiences around the world at the local to national to regional levels. Lessons learned from successful cases reviewed in the book are distilled into six essential action points. Together these categories of policy actions compose the ACTION Star, a guide for taking action now while preparing for growth over the long term.
Decision and policy makers will find inspiration in the significant renewable energy developments to date, the many examples of successful policies in this book,and the ACTION star which provides policy recommendations for the way forward in six categories of actions that policy makers can begin to take now.
Table of Contents
Foreword
About IEA-RETD
Executive Summary
Roadmap to READy
Part I: Trends and Outlooks
1. Global and Regional Trends in Renewable Energy
2.What is possible and by when?
3.Drivers and Barriers
Part II: Policy Experiences and Lessons Learned
4.Policies to get on track: An overview
5.Policies for power markets
6.Transportation Policies
7.Heating and cooling policies
8.Energy systems change – policies for the transition
9.Local policies
10.Policies for Financing Renewables
Part III: The Road Ahead
11.Getting on track: Lessons learned for the road ahead
Case Studies
Appendix A.Players in the field
Wind Energy
Biomass and waste
Solar energy
Hydropower
Ocean Energies
Geothermal energy
Appendix B. References
Appendix C.Relevant RETD Studies
List of Case Studies
Case Study 1. U.S. Federal and State Policies to Support Wind Power
Case Study 2. China’s experience with on- and off-grid renewable power
Case Study 3. Brazil's Rewable Energy Tender
Case Study 4. Thailand and grid-connected generation
Case Study 5. Spain’s Experience with Solar PV
Case Study 6. EU Biofuels Directive
Case Study 7. Brazil's experience with ethanol
Case Study 8. Sweden’s Experience with Biomass for Heat and Power
Case Study 9. The Influence of an International Directive on RE H/C
Case Study 10. Provincial/State Programs in Canada and the United States
Case Study 11. Spain’s Solar Thermal Use Obligations
Case Study 12. Germany’s path toward energy system transformation
Case Study 13. Denmark’s path toward a sustainable energy system
Case Study 14. Upper Austria on the road to 100% renewable heat and power
Case Study 15. 100% Renewables in Güssing, Austria
Case Study 16. Rizhao: China’s Solar City
Case Study 17. Sustainable Transport in Reggio Emilia, Italy
Case Study 18. EU Framework Program/Marie Curie
Case Study 19. Sematech for Semiconductors
Case Study 20. U.S. FIPP Financing
Case Study 21. South Korea’s Green New Deal
Case Study 22. The European Loan Guarantee Program
Case Study 23. The UK’s Green Investment Bank
Figures
Figure 1 Average Annual Growth Rates of Renewable Energy Capacity and Biofuels Production, 2005-2010 [[figure to be redrawn]]
Figure 2. Global New Investment in Renewable Energy, 2004-2010 SDC = small distributed capacity. New investment volume adjusts for re-invested equity. Total values include estimates for undisclosed deals. Source: BNEF from UNEP, Global Trends in Renewable Energy Investment 2011 (Paris: UNEP, 2011).
Figure 3. Experience curves (logarithmic scale) for (a) the price of silicon PV modules and onshore wind power plants per unit of capacity; and (b) the cost of sugarcane-based ethanol production from the IPCC Special Report on Renewable Energy Sources and Climate Change Mitigation (2011).
Figure 4. GWEC Wind Power Market Forecast, 2011-2015
Figure 5. GWEC Wind Power Annual Market Forecast by Region, 2010-2015
Figure 6. EPIA Global Market Data (2000-2010) on solar PV, including near-term scenarios (2011-2015)
Figure 7. EPIA Regional Market Data (2010) and Scenarios on PV (2011-2015)
Figure 8. [SPM.9 from the SRREN summary for policy makers, to be redrawn] 164 scenarios, summarized in one graph by IPCC. The black dots at the right side represent business-as-usual scenarios, while four categories of scenarios show a wide range of corresponding renewable contribution (y-axis, in exajoules) and greenhouse gas emissions (x-axis). The grey crossed lines show the relationship in 2007.
Figure 9. [Picture 5.8, page 211, WEO 2009, to be redrawn].The 450 (ppm) scenario in WEO 2009 compared to the Reference Scenario. The contributions of different sources are represented on the right.
Figure 10. [to be re-drawn, Picture 5.9, page 213 WEO 2009]. Deployment of contributions by different energy sources until 2030. The dotted black line includes nuclear energy.
Figure 11. [to be re-drawn [Picture 13.2, page 384 WEO 2010] ] The development of scenarios WEO 2009 and 2010. Reference scenarios converge towards 2030/2035, but the WEO2010 ‘Current Policies’ scenario shows increased CO2 emissions relative to the WEO2009 version. The 2010 New Policies scenario includes new country pledges (under the Copenhagen Agreement?) and the 450 scenario accounts for new insights.
Figure 12 [to be re-drawn] [figure 9.1 p279, WEO2010].
Figure 13. Development of world primary energy demand under three scenarios.
Figure 14. WEO2011 p 72: Shares of different fuel in three scenarios.
Figure 15. Page 239: Cumulative share of abatement relative to the New Policies scenario in the 450 scenario, with sensitivity analysis regarding delayed development of other low-carbon options, such as carbon capture and storage or nuclear energy. Even more renewable energy will be required than in the basic 450 scenario, to higher costs.
Figure 16. [to be re-drawn] Greenhouse gas emissions according to the WEO2009 scenario (until 2030), extended to 2050 by the Blue Map scenario. Blue Map shows a 50% global emissions reduction by 2050 compared to 2010, and even of about 75% compared to the baseline.
Figure 17 [To be redrawn: Figure ES1 from RETD SC4, July 2010] The RETD ACES scenario shows possible developments towards 2060 that are considered to be realistic. The largest contribution to energy demand comes from renewable energy technologies with significant contributions also from fossil fuels with carbon capture and storage (CCS) and natural gas, while coal and oil without CCS gradually fall toward zero.
Figure 18. The ACES scenario describes a rapid reduction in the share of nuclear and fossil energy in the power sector over the next two decades. Overall electricity generation will continue to grow exponentially during the 21st century.
Figure 19. This figure from the IEA-RETD Best Uses of Bioenergy study illustrates that the upper limit for the available potential of sustainable biomass by 2050 (green bar) is about double the upper limit for the contribution of biomass to a sustainable energy supply (yellow bar).
Figure 20 U.S. Annual and Cumulative Installed Wind Power Capacity, 1999-2009 (From IPCC SRREN; To be updated or otherwise revised if kept. For updating: the US added about 5,100 MW in 2010, and an estimated 6,810 MW in 2011 – GWEC and AWEA.)
Figure 21. Energy input for district heating in Sweden, 1970–2009. (Mitchell, et al., 2011)(Swedish Energy Agency, 2010)
Figure 22. Projected total renewable energy heating and cooling energy in the 27 Member States of the EU according to the NREAPs. Data sourced from (Beurskins & Hekkenberg, 2011).
Figure 23. Average Annual Growth of renewable energy H/C Technologies in the 27 Member States of the EU according to the NREAPs. Data sourced from (Beurskins & Hekkenberg, 2011).
Figure 24 Development of power generation from renewable sources in Germany, 1990-2010
Figure 25. Installed wind capacity in Denmark, 1981-2009 [update: 2010 additions ~<300 MW for total of 3749 MW; 2011 additions estimated at 178 MW for total of 3871 MW.]
Figure.26:Biomass sources
Figure 27:Logistical steps within a biomass energy system
Figure 28:Biomass conversion routes
Figure 29:Principle of operation of a shoreline Oscillating Water Column device
Figure 30. Possible conversion routes for biomass heat (simplified). Source: (EREC, 2007)
Figure 31. From primary energy source to end-use in vehicles. The green coloured region represents the technologies where renewable energy can be applied.
Tables
Table 1 Global Renewable Energy Installed Capacity or Annual Production, 2005 and 2010
Table 2 Overview of the scenarios in this chapter
Table 3. (To be re-drafted) Summary of barriers, examples of opportunities and stakeholders.
Table 4. [to be re-drafted] Early 2011, an IEA-RETD publication made an inventory of 31 barriers, divided among six main categories.
Table 5. Key Elements of Successful Quantity- and Price-Based Policies
Table 7. Selected examples of local targets and incentives (Source: REN21 Renewables Global Status Report 2011)
Table 8. Renewable resources and secondary energy carriers.
About IEA-RETD
Renewable energy will play a critical role in de-carbonising the energy sector, reducing the costs associated with climate change impacts and adaptation, providing energy access to all, and securing long-term energy security at affordable costs. However, it is widely recognized that the establishment of a more sustainable, low-carbon energy system, based largely on renewable energy, will require a major transition in the energy sector and beyond, in both scale and scope.
The International Conference for Renewable Energies in Bonn, Germany in June 2004, was the first of a series of major international conferences to address questions such as how to substantially increase the share of renewables in global energy supply, and how to better make use of their potential and advantages. Participants—including government ministers, representatives of the United Nations and other international and non-governmental organizations, civil society and the private sector—aimed to chart the way towards accelerated deployment of renewable energy.
The IEA-RETD Implementing Agreement was one of the key outcomes of the Bonn conference. This knowledge exchange framework was established to focus on how to bridge the gap—generally called the “Valley of Death”—between research and development (R&D) and deployment of renewable energy technologies. In Bonn and at relevant follow-up conferences, countries at different stages of development all over the world concluded that benefitting from each other’s experiences and best practices will be crucial, and thus they came together to work within the RETD framework.
The IEA-RETD is currently comprised of nine countries: Canada, Denmark, France, Germany, Ireland, Japan, the Netherlands, Norway, and the United Kingdom. The IEA-RETD is a policy-focused, technology cross-cutting platform that brings together the experience and best practices of countries, along with the expertise of renowned consulting firms and academic institutions. IEA-RETD believes that a stable and predictable policy framework is required to create the conditions in which renewable energy can be deployed swiftly and economically at the scale required to address major energy related challenges.
The IEA-RETDis one of a number of Implementing Agreements on renewable energy under the framework of the International Energy Agency (IEA).
IEA-RETD Objectives and target groups
Already, the renewable energy industries have made enormous progress and taken substantial steps along the learning curve, and many renewable energy technologies are experiencing high rates of market growth. Nevertheless, policy and decision makers require a step change to stimulate wider deployment of renewable energy technologies and to avoid further lock-in effects of investments in conventional energy technologies.
IEA-RETD aims to demonstrate the need for action and to motivate relevant players to take advantage of the current window of opportunity. The IEA-RETD framework intends to empower energy policy makers and energy market actors through the provision of information and tools, and to provide possible pathways toward accelerated deployment and commercialization of renewable energy. Some general RETD objectives include:
- Make transparent and demonstrate the impact of renewable energy action and inaction;
- Facilitate and show best practice measures;
- Provide solutions for leveling
- the playing field between renewable energy and other energy resources and technologies;
- Make transparent the market frameworks for renewable energy, including infrastructure and cross-border trade;
- Demonstrate the benefits of involving private and public stakeholders in the accelerated deployment of renewable energy technologies;
- Enhance stakeholder dialogue;
- Implement effective communication;
- Organize outreach activities.
Disclaimer
This book draws heavily on studies commissioned by the IEA-RETD as well as reports produced by other international and national organizations. Its content does not necessarily reflect the views and opinions of the IEA Secretariat or of its individual member countries.
Executive Summary
READy: Renewable Energy Action on Deployment
Executive Summary
Six policy actions for accelerated deployment
The READy book presents a kaleidoscope of policy options that have proven to accelerate the deployment of renewable energy technologies, based on experiences around the world at the local to national levels. Lessons learned from successful cases reviewed in the book are distilled into six essential action points. Together these categories of policy actions compose the ACTION Star, a guide for taking action now while preparing for growth over the long term.
There is growing consensus that a transformation of the energy system must begin immediately. This is because investment decisions made today couldlock countries onto a particular path for the next several decades, and because any delay will increase the economic costs associated with energy production and use, as well as the costs of the required transition. Thus, this publication focuses on actions that are needed now.
Working in close cooperation, policy makers and the business community can bring about necessary and timely changes in the energy system. This collaboration enables a smooth transition to an economy that is based primarily on renewable energy sources. Policy makers play a key role in accelerating deployment of renewable energy technologies by influencing near- and long-term planning and investment decisions through government policy.
In some countries, policy makers have already created and applied policies that have successfully attracted substantial financing to renewable energy, encouraging significant technological advancement alongside massive and rapid deployment. Their experiences provide both inspiration and evidence that the transition to a clean energy system is achievable. Yet, while some countries are moving rapidly in the needed direction, others are still struggling with inertia or have not even begun down this path. A much faster and more global deployment of renewables is required to advance economic development and create domestic jobs, improve energy security, provide energy access to all, reduce local health and environmental impacts and, most importantly, to reduce greenhouse gas emissions dramatically in order to ensure a stable climate.
Getting on track to this sustainable energy future calls for stepped-up policy action starting now. It calls for a focus on advancing renewable energy deployment in combination with major energy efficiency improvements. Recent international developments—such as the global and regional financial crises, the so-called ‘Arab Spring’, Japan’s 2011 Fukushima nuclear accident, and the development of unconventional fossil fuels—have affected circumstances and perceptions surrounding renewable energy. But they have not changed the urgency for change.
Experiences to date point to six key ingredients that policy makers can mix together in their own recipes,adapted to local circumstances, to substantially accelerate deployment of renewable energy – even in the current difficult economic climate — to effectively and efficiently realize the many benefits of a sustainable energy economy.
READy to get on track
This Renewable Energy Action on Deployment publication (READy) publication is intended primarily for use by policy makers. READy is a publication of the International Energy Agency’s Implementing Agreement on Renewable Energy Technology Deployment (IEA-RETD), which aims to increase awareness and accelerate deployment ofrenewable energy technologies. IEA-RETD advocates for expanded international cooperation and public-private partnerships to further the acceleration of renewable deployment.