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REN21 10 Years Report

25 01 and was limited to roof-top solar PV. In 2012 in an attempt to help plug the gap caused by the loss of nuclear capacity, the feed-in- tariff was broadened to include all renewable energy technolo- gies. Additionally, the government hoped to thus encourage the exploitation of Japan’s vast renewable energy potential, which is estimated to be over 1800 GW for wind (including off-shore), 200 GW for solar, and over 20 GW for geothermal resources. In response to the 2012-enacted feed-in-tariff, Japan has seen a rush to increase solar PV capacity, resulting in the addition of 7.0 GW in the financial year 2013 and bringing the country’s solar PV capacity to 13.6 GW. Under the new feed-in tariff 0.1 GW of biopower was added ending 2013 with an estimated 3.4 GW for the sector. n DEPLOYMENT OF RENEWABLES The Australian wind power market grew steadily since 2008 with an annual increase of 200 – 400 MW to reach an installed total installed capacity of 3239 MW by the end of 2013. From 2004 to 2008, the Australian annual solar PV market lacked the necessary policy support resulting in installations that were only in the low, double-digit MW range. With falling prices and the implementation of state based FIT programs alongside the RET, the solar PV annual market grew from around 100 MW in 2009 to almost 400 MW in 2010, and doubled to 800 MW the year after with 2012 setting a new record with 1038 MW of installed capacity. Despite a slowdown in installed capacity by the end of 2013 the sector reached 3,300 MW. Today, well over one million Australian households have solar PV systems and almost another million have installed solar hot water systems. By the end of 2013, almost 15% of Australia’s power generation was from renewables with hydro providing 58% of all renewable electricity followed by wind (26%), biomass (8%) and solar PV (8%). New Zealand is a country which, for its size, has an unusually large endowment of renewable energy potential. In 2004 approx- imately 30% of New Zealand total primary energy supply was supplied by renewables; by 2014 it was close to 40%. Electricity generation from renewable sources was just over 70% in 2004 with a peak of approximately 75% in 2011 followed by a slight decrease in subsequent years, due to a decline in hydropower. The contribution of renewable sources to the primary energy mix supply decreased 2% in 2012—down from 39% in 2011— primarily because of drop in hydropower’s contribution. In 2013 the share of renewables in the primary energy mix were geother- mal (over 50%) hydropower (close to 25%) followed closely by bioenergy and solar with a small contribution (less than 5%) from wind. By 2005, Japan had just over 6GW of renewable electricity capacity, supplied predominately from hydropower with minor contributions from bioenergy and geothermal; solar PV contrib- uted 1.2 GW. By 2013 Japan had an overall renewable energy capacity of 17 GW, the majority of which is supplied by solar PV. Although Japan’s installed wind power capacity experienced strong growth rate (approximately 30%) until 2006, the rate of wind power annual installation capacity has slowed since due to various constraints, including unclear support policies, problems related to site conditions, priority of grid connection and local opposition due to environmental concerns. South Korea has good tidal potential as seen with its 254 MW Sihwa plant and is developing it capacity in CSP with the recent installation of a small pilot CSP plant. Additionally, Palau, Cook Islands, Niue, Micronesia, Kiribati, Samoa, Solomon Islands, Marshall Islands, Vanuatu, Tonga, Fiji, Tuvalu created national targets. Both Tonga and Fiji failed to meet goals for 100% of final energy from renewables; subsequently, Fiji reduced its targets to 100% of electricity and 23% of final energy from renewable sources by 2030. Niue, Tuvalu and the Cook Islands are aiming for 100% renewable energy electricity by 2020. n MILESTONES OF THE PAST DECADE During 2008, Australia crossed the 1 GW mark for total installed wind capacity and 2013 set a new record for wind with 655 MW of new capacity installed during the year. Solar photovoltaic has enjoyed steady growth due to Australia’s strong solar resources, steady cost decline and government incentives. By 2012, Australia crossed the one million solar PV roof-top milestone, making solar systems increasingly main- stream. In 2011 the total investment in renewables added up to 5.5 billion Australian Dollars (AUS$). The finance sector showed increased interest in the renewable industry leading to AU$ 5.301 billion in renewable energy investment in 2012 and AU$ 5.187 billionii in 2013. The most notable development in the region was in Japan, where investment in renewable energy (excluding research and devel- opment) increased by 80% relative to 2012 levels. An increase of 76% in 2013, to USD 23 billion, made Japan the top country for investments in small-scale distributed renewables. n MAIN CHALLENGES FOR RENEWABLES The main challenge for renewables in Australia is the political instability of its energy and renewable energy policy. With the fast up-take of solar PV and wind in some regions, renewable power systems have reached a scale which requires new grid integration policy and regulation; the current electricity market framework also needs to change in order to reflect these new developments. Overall, policy incentives in New Zealand are less than in other countries such as Germany and the United States, which have adopted a more proactive renewable energy development policy stance. The lack of concrete and ‘bankable’ incentives not only limits development overall, but also limits the extent of strategic industrials development. Achieving the target of 90% electricity from renewables will depend largely on the effectiveness with which government policy is developed. Despite the rise of the large-scale market in Japan, many more projects were approved than built, primarily due to shortages of land, funds, grid access, qualified engineers and construction companies, and Japanese-brand equipment. Further develop- ment of renewable energy in Japan will require significant invest- ment in supporting services such as education and construction.

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