[The Vector] Progress Report on Renewable Energy Released from the IEA — Continued
continued from earlier…
Success Stories
Take a look at the story of Denmark, highlighted in the report. In the late 1980s, Denmark decided it needed to reduce dependency on oil and address climate change concerns. It focused on wind and biomass. Today, 20% of electricity is produced from wind power and it has become a leading exporter of wind technology and expertise. Energy products and equipment accounted for more than 11% of Danish exports by 2009.
How did Denmark succeed?
- Reliable and focused public support and planning, plus private commitment to the goals
- Market mechanism such as feed-in tariffs and loan guarantees
- Financial incentives for the public
- Support of R&D
The stories of India and China are also noted in the IEA report.
India now has the 5th largest installed wind energy capacity in the world (three times more than Denmark.) India also used stable policies and support mechanisms. India’s Electricity Act of 2003 encouraged distributors to buy power from renewable energy sources, and supported development through Suzlon, an Indian company with a large wind market share.
China has achieved three times the capacity of India in just five years. China is now on their 11th Five-Year Plan which is heavy on support for renewable energy and goals to reduce pollution and increase domestic energy security. Installed wind capacity exceeded its 2010 target by 320%. Domestic policies require a certain amount of energy to be purchased from renewable sources, and there are market instruments and private support. It eliminated the bidding system in 2009 and replaced it with a fixed tariff approach.
Bad News
Despite the good new to be found, there is bad news, too: worldwide renewable electricity generation since 1990 grew an average of 2.7% per year, which is less than the 3% growth seen for total electricity generation. While 19.5% of global electricity in 1990 was produced from renewable sources, this share fell to 18.5% in 2008. This decrease is mainly the result of slow growth of the main renewable source, hydroelectric power, in OECD countries. Non‐hydro renewables will have to increase at double‐digit rates; wind power must see an annual average growth rate of 17% and solar power 22%. Coal has increased.
The report concludes that clear policies, government support and global cooperation are needed to continue the momentum towards stronger renewable energy worldwide.
