On 15 July 2010, the ’Renewable EnergyRenewable energy is power generated from infinite sources, such as wind or solar power. Conventional energy is generated from finite sources, such as natural gas or fossil oil. Policy Network for the 21st Century’ (REN21), which aims at facilitating  policy development for the rapid expansion of renewable energiesRenewable energy is power generated from infinite sources, such as wind or solar power. Conventional energy is generated from finite sources, such as natural gas or fossil oil. in developing and industrialised economies, released the ‘Renewables 2010 Global Status Report’, the 5th edition of its annual flagship publication.

What is the purpose of the REN21 RenewablesRenewable energy is power generated from infinite sources, such as wind or solar power. Conventional energy is generated from finite sources, such as natural gas or fossil oil. Global Status Report: Changes in renewable energyThe ability to perform work, mainly kinetic, potential, thermal energy, but also in forms of gravitational, sound, elastic and electromagnetic energy. markets, investments, industries, and policies have been so rapid in recent years that perceptions of the status of renewable energy can lag years behind the reality. This report captures that reality and provides a unique overview of renewable energy worldwide as of early 2010.

Since our last blog has already given an overview over those three distinct market sectors in which renewable energies continue to play an increasing role (powerUseful energy can be mechanical energy, for example powering a fan. generation, hot water and space heatingDomestic heating describes the heating of people' s private homes. and transportTransport includes all kinds of mobility, like cars, buses and airplanes. fuels), today’s article will focus on Chapter 4 of the ‘Renewables Global Status Report 2010’, which examines the policy landscape of renewable energies, including policy targets, promotion policies,  as well as green power purchasing  in 2009/ early 2010.

Policy Targets for Renewable Energy

By early 2010, policy targets for renewable energy at the national level existed in at least 85 countries worldwide, including all 27 European Union member states. Many historical targets have aimed for the 2010–2012 timeframe, although targets aiming for 2020 and beyond have emerged in increasing numbers in recent years. In 2008, all 27 EU countries confirmed national targets for 2020, following a 2007 EU-wide target of 20 percent of final energyFinal energy is the useful, secondary energy available to the final use, for example heat (hot water) for a radiator or electricity from the plug at home. by 2020. (See Figure 15) By early 2010, more than two-thirds of the 85 countries with existing national targets were aiming for 2020 or beyond in some manner. Examples of new national targets among developed countries include Australia (20 percent of electricityA form of energy having magnetic, radiant and chemical effects. Electric current is created by a flow of electrons. by 2020), Ireland (500 MW of ocean powerThe use of the vast potential energy within the oceans. Several kinds are possible, including OTEC and wave power. by 2020), Japan (14 GW of solar PV by 2020), and South Korea (11 percent of primary energyPrimary energy describes the primary energy content of raw wood, crude oil or coal. Units usually are Joule and toe (tonnes of oil equivalent). by 2030).

An increasing number of developing countries have introduced national targets: the number expanded from 22 (see ‘Renewables 2007 Global Status Report’) to  45 countries by early 2010 – including Brazil, Cape Verde, Jamaica, Kenya, Magagascar, Nicaragua, Rwanda, and Tunisia. In addition to these national-level targets, sub-national targets exist in a number of countries at the state, provincial, regional, city, or other levels.

Nevertheless, it appears that many countries won’t meet their 2010 targets by the end of the 2010. For example, the EU’s total share of electricity from renewables in 2008 was an estimated 16.7 percent, still short of the EU-wide target of 21 percent by 2010, although some EU countries were close to or had already achieved various types of national 2010 targets, including France, Germany, Latvia, Spain, and Sweden.

Power Generation Promotion Policies

At least 83 countries (41 developed/transition countries and 42 developing countries) have some type of policy to promote renewable power generation. The 10 most common policy types are feed-in tariffsA Feed-in Tariff is an incentive structure to encourage the adoption of renewable energy through government legislation. The regional or national electricity utilities are obligated to buy renewable electricity at above-market rates set by the government., renewable portfolio standards, capital subsidies or grants, investment tax credits, sales tax or VAT exemptions, green certificate trading, direct energy production payments or tax credits, net metering, direct public investment or financing, and public competitive bidding. (For details see Instruments of Renewable Energy Policies at REN21 website).

The most common policy of all is the feed-in tariffs: By early 2010, at least 50 countries and 25 states/provinces had adopted feed-in tariffs over the years, more than half of which have been enacted since 2005. (See Table R10) Moreover, states and provinces have been adopting and updating feed-in tariffA Feed-in Tariff is an incentive structure to encourage the adoption of renewable energy through government legislation. The regional or national electricity utilities are obligated to buy renewable electricity at above-market rates set by the government. policies in increasing numbers as well. This is particularly true in the United States (e.g. California, Hawaii, Vermont, and Washington) Countries considering new feed-in policies include Israel, Japan, Malaysia, Vietnam, and Yemen.

Renewable portfolio standard (RPS) policies, also called renewable obligations or quota policies, exist at the state/ provincial level in the United States, Canada, and India, and at the national level in 10 countries: Australia, Chile, China, Italy, Japan, the Philippines, Poland, Romania, Sweden, and the United Kingdom.239 (See Table R11) Globally, 56 states, provinces, or countries had RPS policies by early 2010. Most RPS policies require renewable power shares in the range of 5–20 percent, typically by 2010 or 2012, although more recent policies are extending targets to 2015, 2020, and 2025. Most RPS targets translate into large expected future investments, although the specific means (and effectiveness) of achieving quotas can vary greatly among countries or states. Also on state level, RPS policies have been enacted during 2009 (USA/ Kansas, 20 percent by 2020), or already exist (Canada India, and Belgian)

Some type of direct capital investment subsidy, grant, or rebate is offered in at least 45 countries. Investment tax credits, import duty reductions, and/or other tax incentives are also common means for providing financial support at the national level in many countries, and also at the state level in the United States, Canada, and Australia.

Capital subsidies and tax credits have been particularly instrumental in supporting solar PV markets. Capital subsidies for solar PV have become common at the national, state, local, and utility levels, typically for 30–50 percent of installed costs. More than half of all U.S. states had such subsidy programs (or tax-credit policies), either statewide or for specific utilities, with many programs added or modified in at least 20 states during 2009 alone.

New solar PV rooftop programs featuring subsidies and tax credits were announced in 2009 in several countries. Notable are China’s new solar PV subsidies, which provide roughly 50 percent of capital cost for building-based solar PV over 50 kW and for other on-gridA grid is a network of transmission lines, usually to distribute electric power . projects over 300 kW in size.

Energy production payments or credits, sometimes called “premiums,” exist in a handful of countries. These are typically a fixed price per kilowatt-hour, or may be a percentage of other utility tariffs or baselines. In early 2009, the United States extended the production tax credit (PTC) through 2012 for wind powerWind power is the conversion of wind energy into a useful form, such as electricity, using wind turbines. By 2010, a single wind turbine can produce several MW of electric power., and through 2013 for biomassEnergy resources derived from organic matter. These include wood, agricultural waste and other living-cell material that can be burned to produce heat energy. They also include algae, sewage and other organic substances that may be used to make energy through chemical processes.
Biomass, a ..., geothermalAlso known as geothermal power. Heat that is stored inside the earth is transformed into electrical energy by geothermal power plants. This form of energy is considered to be cost-effective, reliable and friendly to the environement., hydroHydro power is electrical energy produced through the power of moving water.
Power obtained from the (typically gravitational) movement of water., and ocean technologies. Other countries with energy production payments or premiums now include Argentina, Estonia, Finland, Honduras, Luxembourg, the Netherlands, Panama, Peru, the Philippines, and Sweden.

Net metering (also called “net billing”) is an important policy for rooftop solar PV (as well as other renewables) that allows self-generated power to offset electricity purchases. Net metering laws now exist in at least 10 countries and in 43 U.S. states. Net metering exists in a growing number of developing countries, for example Tanzania and Thailand. Most net metering is only for small installations, but a growing number of regulations allow larger sized installations to qualify. Net metering laws continue to evolve and become more sophisticated as new provisions address issues such as net excess generation, renewable energy credit ownership, and community-owned systems. In addition to subsidies and net metering, a few jurisdictions are beginning to mandate solar PV in selected types of new construction through building codes (e.g. Spain’s 2006 building code for solar PV and solar hot waterHot water for domestic use and swimming pools. for new construction and renovations).

Solar and Other Renewable Hot Water and Heating Policies

Mandates for solar hot water in new construction represent a strong and growing trend at both national and local levels. Israel for a long time was the only country with a national level mandate, but Spain followed with a national building code (see above) for new construction and renovation,  , and many other countries have followed suit: India’s nationwide energy conservationAll the measures taken to lower the level of energy consumption. codes requires at least 20 percent of water heating capacity from solar for residential buildings, hotels, and hospitals with centralized hot water systems. South Korea’s new 2010 mandate requires on-site renewable energy to contribute at least 5 percent of total energy consumption(Final) energy consumption includes all energy supplied to to final user and includes all sectors, such as households, industries, agriculture…. for new public buildings larger than 1,000 square meters. China is planning to mandate solar hot water in certain types of new construction nationwide. Germany’s Renewable Energies Heating Law, effective in 2009, requires all new residential buildings to obtain at least 20 percent of household heating and hot water energy from renewables, including solar, biomass, and geothermal. And in late 2009 and early 2010, the EU  Parliament was working on a directive to require high “energy performance” in new  buildings throughout Europe starting in 2020, including renewable energy sourcesRenewable energy harnesses energy that is available to us infinitely, from sources like wind or lunar energy. for building energy needs.

For some years, China was one of the only countries with long-term national goals for solar hot water, with targets of 150 million square meters by 2010 and 300 million square meters by 2020. Other countries with solar hot water targets include India (20 million square meters by 2022), Morocco (1.7 million square meters by 2020), and Tunisia (740,000 square meters by 2012). Capital subsidies for solar hot water are now a common policy in many states and countries. At least 20 countries, and probably several more, provide capital grants, rebates, VAT exemptions, or investment tax credits for solar hot water/heating investments, including Australia, Austria, Belgium, Canada, Chile, Cyprus, Finland, France, Germany, Greece, Hungary, Japan, the Netherlands, New Zealand, Portugal, Spain, Sweden, the United Kingdom, the United States, and Uruguay.

Other policies or proposals to support solar hot water exist or are under consideration. The city of Betim, Brazil, is installing solar hot water in all new public housing. Italy’s renewable energy certificates (so-called “white certificates”) also apply to solar hot water. The European Commission is considering promotion policies for renewable heating, including solar, potentially leading to a new directive (and thus a full compliment of directives for electricity, transport, and heating). Several countries in North Africa and the Middle East are continuing to develop solar hot water policies, building codes, and/or promotion programs, including Egypt, Jordan, Morocco, Syria, and Tunisia.

BiofuelsLiquid fuels and blending components produced from biomass (plant) feedstocks, used primarily for transportation.
Bio fuels are liquid fuels that are produced of plant material or herbal remains. Policies

Mandates for blending biofuels into vehicle fuels have been enacted in at least 41 states/provinces and 24 countries at the national level. (See Table R12) Most mandates require blending 10–15 percent ethanolEthanol, also called ethyl alcohol, pure alcohol, grain alcohol, or drinking alcohol, is a volatile, flammable, colorless liquid. Ethanol is abbreviated as EtOH, using the common organic chemistry notation of representing the ethyl group (C2H5) with Et.
Bioethanol is a readily available, ... with gasoline or blending 2–5 percent biodieselA biodegradable transportation fuel for use in diesel engines that is produced through the transesterification of organically- derived oils or fats. It may be used either as a replacement for or as a component of diesel fuel.
Biodiesel is a biosynthetic fuel with similar properties as ... with diesel fuel. Mandates can now be found in at least 13 Indian states/territories, 9 Chinese provinces, 9 U.S. states, 5 Canadian provinces, 2 Australian states, and at least 14 developing countries at the national level. Brazil has been the world leader in mandated blending of biofuels for 30 years (mandated range of 20–25 percent).

In addition to mandated blending, several biofuels targets and plans define future levels of biofuels use. The U.S. “renewable fuelsLiquid fuels and blending components produced from biomass (plant) feedstocks, used primarily for transportation.
Bio fuels are liquid fuels that are produced of plant material or herbal remains. standard” requires fuel distributors to increase the annual volume of biofuels blended to 36 billion gallons (136 billion liters) by 2022. The UK has a similar renewable fuels obligation, targeting 5 percent by 2010. Japan’s strategy for long-term ethanol production targets 6 billion liters/year by 2030, representing 5 percent of transport energy. China targets the equivalent of 13 billion liters of ethanol and 2.3 billion liters of biodiesel per year by 2020. South Africa’s strategy targets 2 percent biofuels. EU-Targets for share of transport energy from renewables include Belgium (5.75 percent by 2010), Croatia (5.75 percent by 2010), France (10 percent by 2015), and Portugal (7 percent biodiesel by 2010). These are in addition to the EU-wide target of 10 percent of transport energy by 2020 that covers both sustainable biofuels and electric vehicles. The EU-wide target incorporates a newly adopted definition of sustainability, which adds to a growing number of biofuels sustainability standards.

Fuel-tax exemptions and production subsidies have become important biofuels policies. The largest production subsidies exist in the U.S., where the federal government provides a 45 cents/gallon (13 cents/liter) tax credit for ethanol blending through 2010. There is also a U.S. tax credit of $1.00/gallon (28 cents/liter) for biodiesel. Canada provides federal biofuels production subsidies of CAD 10 cents/liter for ethanol and CAD 20 cents/liter for biodiesel. Biofuels tax exemptions exist in at least 10 EU countries ( Belgium, France, Greece, Ireland, Italy, Lithuania, Slovenia, Spain, Sweden, UK), and  Canada and Australia with fuel-tax exemptions, as well as several developing countries with fuel-tax exemptions, including Argentina, Bolivia, Colombia, and South Africa. Fuel-tax exemptions often coincide with other types of tax benefits for biofuels investment and trade.

Green Power Purchasing and Renewable Electricity Certificates

There are currently more than 6 million green power consumers in Europe, the United States (more than 1 million green power consumers purchased 24 TWh in 2008, up from 18 TWh in 2007 and double the 12 TWh purchased in 2006), Australia (Australia had 900,000 green power residential consumers and 34,000 business consumers who collectively purchased 1.8 TWh in 2008), Japan (58 GWh of green power certificates sold in 2006, primarily to corporate, non-profit, and municipal customers, and partly to households), and Canada. Green power purchasing and utility green pricing programs are growing, aided by a combination of supporting policies, private initiatives, utility programs, and government purchases. The three main vehicles for green power purchases are: utility green pricing programs, competitive retail sales by third-party producers enabled through electricity deregulation/liberalization (“green marketing”), and voluntary trading of renewable energy certificates. In most European countries, the market share of green power is still small, less than 5 percent. The Netherlands was the leader in green power consumers during the period 2005–20008, with more than 3 million local green power consumers at a peak, due in part to large fossil-fuel electricity taxes combined with tax exemptions for green power.  Germany has now eclipsed the Netherlands as the green power leader in Europe. In 2008, the country was home to an estimated 2.2 million green power residential customers (6.2 TWh purchased) and an estimated 150,000 business customers (4.8 TWh purchased). Germany’s market has shown the fastest growth in recent years, up from 750,000 customers in 2006. Other major green power markets in Europe include Austria, Finland, Italy, Sweden, Switzerland (600,000 customers in 2007), and the UK.

Eighteen EU countries are members of the European Energy Certificate System (EECS), a framework that allows the issue, transfer, and redemption of voluntary renewable energy certificates (RECs). The EECS has also begun to provide “guarantee-of-origin” certificates in combination with RECs, which enable producers of renewable electricity to prove origination from a renewable source.  A total of 209 TWh of certificates were issued during 2009, triple the 67 TWh of issuance during 2006. HydropowerHydro power is electrical energy produced through the power of moving water.
Power obtained from the (typically gravitational) movement of water. has dominated certificate trading, accounting for 91 percent of certificates in 2009. (Norway, a major hydro producer, issued 62 percent of all certificates under the EECS in 2009.)

City and Local Government Policies

Also city and local governments around the world continue to enact policies to reduce greenhouse gas emissionsGreenhouse gas emissions cause dangerous anthropogenic climate change. Emissions include CO2, fluoridated gases, methane which are emitted by human activity such as deforestation and burning fossil fuels, and water vapour. and promote renewable energy. A 2009 companion report from REN21, the ‘Global Status Report on Local Renewable Energy Policies’, provides an overview of municipal policies and activities to promote renewable energy, surveying 180 cities and local governments in Europe, the United States, Latin America, Australia, New Zealand, China, South Korea, and Japan. It considers local policies in five main categories: target setting; regulation based on legal responsibility and jurisdiction; operation of municipal infrastructure; voluntary actions and government serving as a role model; and information, promotion, and raising awareness. The report also gives many specific examples of these policies, some of which are summarized in Chapter 4 and in Table R13 of the ‘Renewables 2010 Global Status Report’.