This is the first REN21 Newsletter in a year that promises to be a
turbulent and uncertain one for most industries as they struggle under the depressing influence of the global economic and financial downturn. Renewables in particular will be affected by the falling energy prices and the credit crunch. However, the fundamental indicators that have driven the meteoric rise in renewables over the last five years have not changed, and the need for countries to meet ambitious renewable energy targets should help the industry ride out the wave. REN21 argues for why investment in renewables today will help revitalise the economy and protect it from future recession
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Governments around the world are designing fiscal policies, including government spending and tax measures, to revive the economy, and investments in energy efficiency and renewable energy are finding their way into those policies as governments at all levels recognise the role sustainable energy can play in creating jobs. Nearly every economic recovery plan, whether in America, Europe, or Asia, is indicating that this crisis offers green opportunity. As Barack Obama said on Tuesday 25 February: "...We know the country that harnesses the power of clean, renewable energy will lead the 21st century. … to truly transform our economy, to protect our security and save our planet from the ravages of climate change, we need to ultimately make clean, renewable energy the profitable kind of energy."
The multiple national fiscal stimulus initiatives were echoed by UN Secretary-General Ban Ki-moon at the Davos World Economic Forum. Mr Ban Ki-moon called for a concerted effort by political and business leaders around the world, to prepare for what the UN Environment Programme UNEP launched as the Global Green New Deal last year.
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NORTH AMERICA
Agreement on major stimulus package in the US
Since the inauguration of the new US President on 20 January,
the world has been watching for the economic stimulus legislation.
President Barack Obama promised substantial new spending, including
for renewable energy. On February 11, Democratic leaders in the House
of Representatives and the Senate reached an agreement on a stimulus
package that would provide billions of dollars for "smart grid" projects
and renewable energy.
Read more...
Congress will funnel more than USD 40 billion into clean energy and efficiency programs -
and offer around USD 20 billion in tax breaks.
The bill will create a new 30% tax credit for facilities and equipment engaged in the manufacture
of renewable energy-generating property, such as solar panels. It also creates a grant program to
allow taxpayers to redeem solar investment tax credits. And it includes a temporary loan guarantee
program for renewable energy projects.
Read more...
California seeks to boost green technology
The US state of California is counting on the economic stimulus package
to help boost its new green technology industry founded on photovoltaic
solar cells, sources of biofuel such as algae and the application of
information technology to improve energy efficiency.
Read more...
California to cut GHG with ambitious renewable target
California has adopted the most sweeping curbs on greenhouse gas
emissions in the U.S. The state air board ordered a 15% cut in emissions
over the next 12 years, bringing them down to 1990 levels.
Read more...
Gainesville, Florida introduces municipal-level feed-in-tariff
At the municipal level, the City Commission of Gainesville, Florida unanimously
approved a solar feed-in tariff of USD 0.32/kWh for solar electric systems installed
after March 1, 2009. This is the first feed-in tariff to be enacted at any level in
the US and will replace Gainesville’s current rebate programme. Pending expected Florida
Public Service commission approval, GRU customers can sign up for the feed-in-tariff as
of March 1. Participants signing up during the first two years of the program will be
guaranteed a fixed rate of USD 0.32 per kilowatt hour for 20 years. Gainesville Regional
Utilities estimates that investors will see a 5-percent return on investment for large-scale projects.
Visit
GRU website...
Encouraging activity observed in other states
Much encouraging activity was recently observed also in several other
states, such as in
Hawaii late last year, with a comprehensive agreement including a
feed-in-tariff, an increased renewable portfolio standard, several other
regulatory steps, and infrastructure projects. In the California Energy
Commission, considerations regarding a feed-in-tariff are continuing as
well.
Wind Power: US surpasses Germany
The United States has passed Germany to become world #1 in wind power installations.
Read more...
International oil executives eager to work with
Obama to fashion new policies to tackle global warming.
Some support a tax on
carbon, while others favor a trading system. Almost all of them seemed reconciled
to the United States' adopting some kind of climate policy, and said they were
eager to work with the new administration to devise an effective energy strategy.
Read more...
Canada unveils new budget
Canada's Conservative government has unveiled a multi-million dollar stimulus package
that includes infrastructure spending and tax cuts. The budget sets out spending of
CAD 40 billion over five years. It also includes a new CAD 1 billion Green Infrastructure
Fund to support projects like public transit, sustainable energy and waste management.
Read more...
Ontario introduces green energy package that will boost renewables
The Canadian Province of Ontario has introduced energy-related legislation that will
increase incentives for feeding renewable energy into the grid. The provincial government
is hoping to create 50,000 new jobs from green energy projects including wind, solar,
biofuels and smart grid projects, calling it the “key to the province’s future”.
Read more...
EUROPE
Commission recognises job creation potential of solar energy
The European Commission has authorised, under EC Treaty state aid
rules, EUR 39.72 million of regional investment aid, which the German
authorities intend to grant to ersol Thin Film GmbH for the production
of thin-film solar modules in Erfurt, Germany. The project involves
investments of EUR 371 million and is expected to create 461 direct new
jobs in the region. The positive impact of the investment on regional
development is considered to outweigh the potential distortions of
competition.
Read more...
UK report urges government green spending A major new UK report has
called on governments to include a minimum of USD 400 billion of green spending in their economic stimulus plans to be able
to deal with the economic crisis as well as prevent further decades of
high-carbon growth.
Read more...
Norwegian government increases funding to "green energy" investment fund
As part of its economic stimulus package, the Norwegian government has increased funding
to Enova, the Norwegian government's "green energy" investment fund, by
NOK 1.2 billion,
to NOK 2.6 billion total.
Read more...
Germany plans for 30% renewables by 2020 On 12 February, Germany
presented an "energy roadmap" which emphasises energy efficiency and
reliance on renewable sources. The plan shows Germany's commitment to
meet its current target of meeting 50% of its energy needs with
renewable energy by the middle of the century. As part of the plan, it
pledges to raise the efficiency of fossil fuel power stations by 2020,
as well as renewing its goal to phase out nuclear energy.
Read more...
Greece pushes PV, says no to new coal and nuclear After the Greek
Parliament
improved the country's PV feed-in regulation in January, Minister Kostis
Hatzidakis in February confirmed the renewable energy strategy, ruling out
investment in new coal-fired or nuclear power plants.
Read more...
ASIA
India - Tamil Nadu regulator proposes to raise wind power
tarrif
The Tamil Nadu Electricity Regulatory Commission (TNERC) plans to raise
the wind power tariff to INR 3.40/kWh (USD 0.07) from INR 2.90. The objective is to encourage wind power generation capacity
in the context of the prevailing power shortage in the State and the
need to add to the State's generation capacity fast.
Read more...
Philippines have signed into law an incentive renewable energy
legislation
The Philippines have signed into law the country's renewable energy
legislation, which will provide incentives for investors. The law aims
to accelerate the exploration of geothermal, hydroelectric, solar, biomass,
wind, and marine energy and increase the utilisation and development of renewable energy.
The President said the new legislation is the "first and most comprehensive renewable-energy
law in Southeast Asia" and would enable the Philippines to capture a part of the soaring
investments in renewable-energy development worldwide.
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more...
Pakistan approves extension of short term renewable energy policy till December 2009
The existing policy, set up in December 2006, was set to be replaced by a more comprehensive
medium term policy in December 2008. Since the mid term policy has still not been finalised,
the Alternative Energy Development Board has approved the extension of the short-term policy.
The short term policy primarily focussed on technology demonstration, pilot projects and rural electrification. The new policy will focus
on commercialisation of renewable energy projects by providing incentives and tax sops.
Pakistan has set a target of 10% installed renewable capacity by 2010.
Read more...
Russia starts to address barriers to renewable energy growth
Prime Minister Vladimir Putin has signed a directive that calls for increasing
the share of renewables in electricity generation and sets several specific
targets for small hydro, tidal, geothermal, wind, solar, and biomass soures.
Read
more...
MIDDLE EAST/NORTH AFRICA
Regional Energy Center's Charta adopted
In Cairo, the organisational charta of
RCREEE,
the Regional Center for Renewable Energy and Energy Efficiency was adopted. This
is a decisive step in the formal establishment of the Center. Minister Hassan
Younes opened the RCREEE Board of Trustees Meeting in presence of the German
Ambassador and representatives from Denmark and EU Delegation.
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more...
Israel seeks 10 percent of energy from renewables by 2020
Israel's government on Monday set a target of producing 10 percent of
the country's electricity from renewable energy sources such as solar and wind
by 2020.
Read
more...
US-Israel sign agreement of cooperation in renewable energy
One step toward reaching this target was perhaps the recent signing of
the US-Israel Energy Cooperation Act. This international collaboration
aims at creating a renewable energy storage initiative to reduce the
world's oil dependence. It will fund eligible joint ventures between US
and Israeli businesses, with two million USD already allocated for this
year - to be scaled up in the future.
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more...
Renewables to cover 7% of Abu Dhabi's power needs
Renewable energy sources will account for at least seven per cent of Abu Dhabi's
power generation capacity by 2020, the chief executive of Masdar, Abu Dhabi Future
Energy Company said on Monday.
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more...
AUSTRALIA / PACIFIC
Australia brings forward AUD 500 million green energy fund
In December of last year, Reuters had reported that Prime Minister Kevin Rudd
“unveiled plans to bring forward a AUD 500 million fund to promote renewable
energy in a bid to stimulate the economy”
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more...
Australian national and state governments working to expand renewables target
The Australian government has released draft legislation for its 20% by 2020 Renewable Energy Target.
The government is working in cooperation with the states and territories through the Council of Australian
Governments (COAG), to implement an expanded national Renewable Energy Target (RET) that will bring
the Mandatory RET and existing and proposed state and territory targets into a single national RET scheme.
The legislation includes new Solar Credits that will provide incentives for households to install
solar PV systems.
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more...
New Zealand shifts from legislation to tax incentive for biofuels
In New Zealand, the government has passed into law a bill that repeals
a biodiesel mandate that was to have come into effect from February 2009.
Energy Minister Gerry Brownlee said the government would instead offer tax
incentives rather than compelling production through legislation.
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more...
