This is a tour d'horizon on current trends as perceived by REN21 Secretariat staff. It does not necessarily reflect the views of the REN21 Steering Committee Members.

Europe

Several European Union member state governments have recently improved conditions for electricity markets to meet renewable energy targets. This was the case in France, Italy, Ireland, Portugal, Greece, the Czech Republic, Poland and other EU countries. As instruments, feed in tariffs prevail. However, quota and public bidding are also applied. Spain has adjusted policies, UK government is planning an adjustment and Germany is considering something similar. The Netherlands, Denmark and other North See riparian countries are readjusting their wind energy policies to focus on off-shore generation. Outside the EU, Norway has set the course for very serious progress in wind energy. In Switzerland, an important judicial verdict has paved the way for more wind parks.

Sweden is targeting high shares for bioenergy also in the fuel market after biomass has already reached high shares in the electricity and heat markets. The World Bioenergy Conference 2006 was one in series of many bioenergy conferences in 2006, indicating the importance of the subject in the policy agenda and reflecting the high activity level in investment and financing. France has established a policy for renewables in the transport market. Netherlands and Belgium have set ambitious goals for biofuels, relying heavily on imports from sustainable sources. Germany has reshuffled the biofuels policy and introduced a blending quota. This reflects a worldwide policy trend towards quota.

Meanwhile, the EU directive on energy performance of buildings that came into effect this year should dramatically improve the market for renewable energy in buildings.

In 2007, the EU Commission is planning to adopt a Road Map on Renewable Energy beyond 2010. The European Renewable Energy Policy Conference at the end of January 2007 should boost support for another important step and help shaping effective RE policies in Europe.

US and Canada

In the US, some Federal States are stepping up the pace. The leading example in 2006 is California with the California Solar Initiative and the politically spectacular legislation to reduce greenhouse gas emissions.

Nonetheless, the substantial investment opportunities in US wind energy and biofuels need more federal support. The American Council On Renewable Energy (ACORE) will hold a political forum, PHASE II of Renewable Energy In America: Market Forecasts And Policy Requirements, on 29-30 November on Capitol Hill in Washington.

The case for renewable energy in the US is made in a convincing way by the memorandum from the Centre for American Progress and Worldwatch Institute.

On the other side of the border, the Canadian government announced their new plan to curb air pollution and GHG emissions. Renewables will be included. As with some US States, the Canadian provinces are not waiting for the Federal government, and moving to implement their own renewable energy promotion actions.

Latin America and the Caribbean

In Latin America renewables have an important role in electricity generation, especially from hydro and to a minor extend from geothermal. After Brazil, where the Proinfa Programme has induced the expected investment in wind and small hydro, also Argentina, Chile, Colombia and Mexico strive for effective policies, switching from temporary programmes to long-term assurance of undiscriminatory access for renewable energy to the electricity generation market. In Biofuels, the example of the world leader Brazil is increasingly followed by other South American and Caribbean countries, including oil-producers.

The Iberoamerican Ministerial Meeting on Energy Security and Renewable Energy on 26-27 September 2006, Montevideo, Uruguay, supported by UNIDO, decided to set up a network of renewable energy observatories. The EU – LAC meeting on renewable energy in Panama was intended to forge renewable energy business and knowledge relationships between Europe and Latin America. The Interamerican Development Bank (IADB) is expected to reveal an investment Initiative on Providing Sustainable Energy in Latin America and the Caribbean at a conferenceon 27 and 28 November 2006 in Washington, DC.

Asia

Most eyes are on China and India, where two important international renewable energy conferences are taking place, the Great Wall Renewable Energy Conference and the World Wind Energy Conference. In spite of an already optimistic outlook, many experts believe the framework conditions for renewable energy can be further improved in both countries.

Another focus of attention is Malaysia and Indonesia, which are occupied with the new opportunities which the Bioenergy boom might bring for exports.

Oceania

The Australian Government has announced huge allocations to climate projects from its new AUD 500 million fund, giving priority to clean coal projects but also co-financing renewable energy projects with state governments and the private sector. Australia hosted the Global Windpower 2006 Conference in September.

Across the Tasman Sea, New Zealand is further increasing its high percentage of electricity from renewable energy, and introducing renewable transport fuels. Other Pacific island countries are looking for support to convert their energy systems to use renewable energy as a means for mitigating high fossil fuel prices that threaten their economies and global climate change, which threatens their very existence.

Middle East and North Africa

Important changes are taking place in the region, as could be observed at the MENAREC 3 conference. Not only oil-poor countries like Israel, Jordan, Egypt and Morocco are actively developing renewable energy, but some oil exporting countries are starting to take a real interest in renewables, particularly technologies that utilise the abundant solar resource of the region for drinking water supply. In the UAE, Abu Dhabi with its Al Masdar Initiative is a leading example.

Sub-Sahara Africa

The energy situation in many Sub-Sahara African countries is increasingly critical and exacerbated by the effects of climate change. Countries are facing the double challenge of improving the grid power supplies without reverting to expensive and CO2 intensive fossil fuels, as well as meeting the demands for a minimum level of modern energy services for the majority of their poor. South Africa is preparing new framework conditions for renewables. Nigeria is considering a renewable energy policy. Ethiopia and other countries in the rift valley area are moving to make use of geothermal for electricity generation.

There have been successes, as a recent GEF-REN21 event showed, but much more needs to be done. Alarmed by the situation, the World Bank is suggesting an Action Plan for energy access with special emphasis on Sub-Sahara Africa as part of the proposed Investment Framework (read more at http://www.ren21.net/PolicyProcess/g8.asp). Several donor countries are also preparing new bilateral initiatives.


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