Hedging your bets
As renewable energy has moved from the margins to the mainstream of
power production, the arguments over its value are becoming increasingly
familiar. These are both pro (low-carbon or carbon-neutral electricity
production from home-grown resources, free fuel from wind, solar,
geothermal and hydropower) and con (wind and solar energy's
intermittency and renewables' power-generation costs typically exceeding
those of conventional fuels). Now a new factor in the equation is
emerging in favor of renewable energy: Power from renewable resources
can provide a hedge against volatile oil
Read more and comment…
Even "green" energy needs lower oil price
27 August 2008 - As a lengthening economic slowdown bites, the antidote
for the renewable energy sector may come as a surprise - a lower oil
price. Government subsidies and record prices for competing fossil fuels
have underpinned the alternative energy boom, but now they are now
starting to work against the sector. Reliance on subsidies exposes the
likes of wind and solar power to the whim of governments grappling with
wider voter priorities during a global economic slowdown.
Read more and comment…
The past two months have seen the long-looming global financial crisis
come to a head and the predictions among the pundits on its impact on
clean energy range from positive to negative. In the short term, the
credit crunch is clearly a challenge for expanding renewable energy
companies. Looking at the longer term, however, there seems to be much
agreement among government and business leaders alike that renewable
energy and energy efficiency will be the drivers of economic recovery
and that there’s never been a better opportunity to promote and deploy
them. The need for forward-thinking energy policy has also never been greater.
“Green New Deal” for economic recovery focuses on renewable energy
The United Nations Environment Programme (UNEP) in October launched its
“Green Economy Initiative to Get the Global Markets Back to Work”. Among
“the five sectors likely to generate the biggest transition in terms of
economic returns; environmental sustainability and job creation”, it
lists upfront “clean… and rural energy, including renewables and
sustainable biomass”. The initiative will draw on existing work
undertaken in the UN system and is already supported by multiple donor
governments.
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more...
“Deploying Renewables: Principles for Effective Policies” – IEA study
Renewable energy success stories show that growth in this sector
requires unequivocal and well-designed policies. Against this background,
the International Energy Agency (IEA) has launched the publication
Deploying Renewables: Principles for Effective Policies. The study
presents a comparative analysis of the various RE promotion policies
around the world. It highlights key policy tools to fast-track
renewables into the mainstream, estimating that nearly 50% of global
electricity supply will have to come from renewable energy sources if we
want to halve CO2 emissions by 2050. Achieving this energy revolution
will require unprecedented political commitment.
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more...
IRENA: International Renewable Energy Agency takes shape
The statutes for an International Renewable Energy Agency (IRENA) were
agreed on by 51 countries at a final preparatory conference held in
Madrid in October. Under the mandate of governments worldwide, IRENA
aims to become the main driving force in promoting a rapid transition
towards the widespread and sustainable use of renewable energy on a
global scale. While REN21 provides a flexible multi-stakeholder forum
for renewable energy policy making, IRENA is conceived as a formally
established intergovernmental organisation. The Founding Conference for
IRENA will be held in January 2009 in Bonn, Germany.
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more...
EUROPEThe European Union (EU) is indeed getting ready to make its contribution to the global
energy revolution. “The European Parliament’s Energy, Industry and
Transport Committee almost unanimously backed EU legislation that paves
the way for massive investment in renewables. EU countries are set to
back the main elements of the vote, according to Green MEP Claude Turmes,
who shepherded the file through Parliament. ‘This is a great day’ for
renewable energies in Europe…”.
Read more...
While confirming the goal of a 20% share of renewables in final energy
consumption by 2020, the adopted report calls for changes to the
biofuels target over growing concerns that sufficient amounts of
biofuels could not be imported from sustainable production.
Read more...
In a dedicated analysis of the EU's energy policy, the IEA
praised the EU for these policies and encouraged the EU to "vigorously
pursue [their] implementation" while continuing energy market reforms
and - importantly - "rebalancing funding within the energy R&D budget to
take proper account of the priorities in non-nuclear R&D".
Read more...
And on the national level...
UK Government embraces feed-in tariffs
On 16 October 2008, in a dramatic U-turn the UK government, which has
strenuously resisted renewable energy feed-in tariffs, finally endorsed
the concept, thus acknowledging a role for small-scale electricity
generation. This development is taking place against the backdrop of
more ambitious carbon emission reductions, for which 80% by 2050 is now
the envisaged target. Further bills currently discussed intend to smooth
the way for renewables, such as the planning bill. Furthermore, the
Crown Estate is poised to take on some 50% of pre-construction
development costs for offshore wind projects.
Read more...
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Scotland launches Renewable Energy Framework
Preparing for the EU targets, the Scottish Government in October
launched the consultation process for its proposed Renewable Energy
Framework, which is intended to “contribute to the Scottish element of
the UK National Action Plan for renewable energy if and when the
proposed EU directive on renewable energy comes into force”. The
framework comprises a series of initiatives to increase investment in
renewable energy production. Most of this is expected to come from
onshore and offshore wind energy, but maritime energy technologies and
biomass are also embraced.
Read more...
Spain adapts its feed-in-tariff
After much uncertainty regarding Spain's PV law, the government has made
changes to the feed-in tariff and established its regulations for the
coming years. The changes, which were made because of concerns over
unsustainable market growth, turned out to be less dramatic than had
originally been expected.
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more...
ASIA
South Korea boosts renewables
South Korea said on Wednesday it will spend 111.5 trillion won (USD 103
billion) through 2030 in developing new renewable energy in an effort to
cut its reliance on fossil fuels and reduce carbon dioxide (CO2)
emissions.
Read more...
India approves biofuel rise
India has approved a national biofuel policy that aims to raise the
proportion of biofuels from five to 20 per cent in petrol and diesel
fuels over the coming decade using non-edible plant sources.
Read more...
NORTH AMERICA
US Senate passes PTC/ITC extensions, USD 700 billion bailout deal
On 24 September, the US Senate voted to extend the Production Tax Credit
(PTC)
and Investment Tax Credit (ITC) as part of its USD 700 billion bailout package for
the financial sector. The tax measure was passed by a vote of 93-2.
Under the legislation, the PTC will be extended for one year and the ITC
will be extended for eight years. The extensions would be at least
partially paid for by a change in the tax code for the oil and gas
industry. The bill also contains removal of the USD 2,000 cap for
residential solar installations. The USD 18 billion package is part of a
larger tax bill worth approximately USD 148 billion. However, five days
later, the bill was submitted to the House of Representatives, who
passed an "extenders" bill that was unacceptable to Senate Republicans
and the White House.
Read more...
Then, on 3 October, after more than a year of debate, both chambers of
the U.S. Congress approved a bill to extend the renewable energy PTC through December 31, 2009. The package also
provides for the creation of an eight-year ITC for small wind turbines, the first federal support for residential-scale
turbines since 1985.
Read more...
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US Government helps states foster gigawatt-level renewable energy developments
Beyond the federal tax policy, the US government is also seeking to financially support renewable energy action at
the state level. For this, the Department of Energy is providing US$4 million in grant money. Given that the money is
awarded to states to help shape policy and regulatory frameworks,
the support could stimulate considerable investment in the sector.
Read
more...Ontario, Canada seeks Green Energy Act
In the Canadian province of Ontario, a multi-stakeholder coalition is
working to initiate an "Ontario Green Energy Act". The coalition which
is led by the Ontario Sustainable Energy Association (OSEA) is calling
upon relevant organisations and individuals to support this effort.
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more...
AUSTRALIA
Senate inquiry: overwhelming support for gross national feed-in tariff
The Clean Energy Council, Australia's peak renewable energy body,
appeared before the Senate Environment Committee yesterday to provide
evidence for the implementation of a gross national feed-in tariff (FIT)
for solar PV – a scheme which pays households and businesses a premium
rate for all the renewable electricity they produce.
Read more...
AFRICA
EU, Africa unveil 'ambitious' energy partnership
The partnership will involve investments worth over EUR 600 million to
support electrification in Africa, as well as renewable energy projects
that would help diversify Europe's energy supplies.
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more...
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more...
- The Virtual Library
continues to grow as a choice selection of publications and book
reviews. Recently added: "Global Wind Energy Outlook 2008" and also
"energy [r]evolution - A Sustainable World Energy Outlook - 2008 " .
- The Event Calendar features events
on renewable energy policy, such as "Energy: Let's Move On" taking place in
Paris 17-22 November 2008.
- The Community Pinboard allows
individuals and institutions active in renewable energy policy to 'pin' announcements
on the front page of the REN21 website.
Newsletter produced by
REN21 Secretariat.
DisclaimerREN21 newsletter creates dialogue to emphasise the importance
of renewable energy and to generate discussion on how they can be
promoted. While the newsletter and website benefit from the contributions of the REN21
community, the views expressed are those of the individual authors
identified as the originators. They are not necessarily those of any of
the other contributors, or any partner, sponsor or endorsing body of the
REN21 Network.
