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    Developed in co-operation with the G-20 Clean Energyand Energy Efficiency Working Group

    G-20 CLEAN ENERGY, AND

    ENERGY EFFICIENCY DEPLOYMENT

    AND POLICY PROGRESS

    2011

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    Developed in co-operation with the G-20 Clean Energyand Energy Efficiency Working Group

    G-20 CLEAN ENERGY, AND

    ENERGY EFFICIENCY DEPLOYMENT

    AND POLICY PROGRESS

    The IEA would like to thank the Organisation of the Petroleum Expor ting Countries (OPEC), the International

    Renewable Energy Agency (IRENA), and all participants in the G-20 C3E Working Group for their constructive

    review and comment of the earlier drafts of this report.

    This inormation paper was prepared or the G-20 Clean Energy and Energy Efciency Working Group (C3E)

    in October 2011. It was drated by IEAs Energy Technology Policy Division in co-operation with other

    Divisions o the IEA. This paper reects the views o the International Energy Agency (IEA) Secretariat,but does not necessarily reect those o individual IEA member countries. For urther inormation,

    please contact Antonia Gawel at: [email protected]

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    INTERNATIONAL ENERGY AGENCY

    The International Energy Agency (IEA), an autonomous agency, was established in November 1974.Its primary mandate was and is two-fold: to promote energy security amongst its membercountries through collective response to physical disruptions in oil supply, and provide authoritative

    research and analysis on ways to ensure reliable, affordable and clean energy for its 28 membercountries and beyond. The IEA carries out a comprehensive programme of energy co-operation amongits member countries, each o which is obliged to hold oil stocks equivalent to 90 days o its net imports.The Agencys aims include the following objectives:

    n Secure member countries access to reliable and ample supplies o all orms o energy; in particular,through maintaining eective emergency response capabilities in case o oil supply disruptions.

    n Promote sustainable energy policies that spur economic growth and environmental protectionin a global context particularly in terms o reducing greenhouse-gas emissions that contributeto climate change.

    n Improve transparency of international markets through collection and analysis ofenergy data.

    n Support global collaboration on energy technology to secure uture energy supplies

    and mitigate their environmental impact, including through improved energyefciency and development and deployment o low-carbon technologies.

    n Find solutions to global energy challenges through engagement anddialogue with non-member countries, industry, international

    organisations and other stakeholders.IEA member countries:

    Australia

    Austria

    Belgium

    Canada

    Czech Republic

    Denmark

    Finland

    France

    Germany

    Greece

    Hungary

    Ireland

    Italy

    Japan

    Korea (Republic o)

    Luxembourg

    NetherlandsNew Zealand

    Norway

    Poland

    Portugal

    Slovak Republic

    Spain

    Sweden

    Switzerland

    Turkey

    United Kingdom

    United States

    The European Commission

    also participates in

    the work o the IEA.

    Please note that this publication

    is subject to specifc restrictions

    that limit its use and distribution.

    The terms and conditions are available

    online atwww.iea.org/about/copyright.asp

    OECD/IEA, 2011

    International Energy Agency9 rue de la Fdration

    75739 Paris Cedex 15, France

    www.iea.org

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    3

    Tableofcontents

    Background.............................................................................................................................................5

    Scopeandmethodology........................................................................................................................6

    Acknowledgements................................................................................................................................

    7

    Introductionandsummaryoffindings..................................................................................................8

    CleanenergytechnologydeploymentandpoliciesinG20countries...............................................10

    Energyefficiency...........................................................................................................................10

    Renewablepower.........................................................................................................................17

    Nuclearpower...............................................................................................................................24

    Renewableheatingandcooling....................................................................................................28

    Carboncaptureandstorage..........................................................................................................31

    Transport.......................................................................................................................................33

    Annex1.C3EWorkingGroupquestionnaire.......................................................................................43

    Acronyms,abbreviationsandunitsofmeasure.................................................................................45

    References............................................................................................................................................46

    Listoffigures

    Figure1IncrementaltotalprimaryenergysupplyinG20andtheworld200009...............................9

    Figure2GlobalenergyrelatedC02emissionsforG20andtheworld200009.....................................9

    Figure3Evolutionofrenewableelectricitygeneration,200510........................................................18

    Figure4Growth

    in

    wind

    capacity

    2005

    10

    ...........................................................................................

    18

    Figure5GrowthinsolarPVcapacity200510......................................................................................19

    Figure6Globalnuclearcapacityandestimated2015capacity...........................................................25

    Figure7Nuclearcapacityunderconstructiongloballyandnumberofreactors.................................25

    Figure8Trendsinglobalcapacityofsolarheatingsystems,200509.................................................28

    Figure9OperatingandplannedprojectsintheG20groupofcountries...........................................32

    Figure10AggregatedG20membernationaltargetsforEV/PHEVs...................................................34

    Figure11Globallightdutyvehiclefueleconomy................................................................................36

    Figure12Averagefueleconomytrendsthrough2008byregion,withenactedor

    proposedtargetsthrough2020............................................................................................37

    Figure13Globalbiofuelsproductionbytypeoffuel,200510............................................................39

    Listoftables

    Table1Annualgrowthrates200010and2010statusofdeploymentfor

    cleanenergytechnologies.........................................................................................................8

    Table2Buildingenergyefficiencypolicytypes....................................................................................11

    Table3SummaryofG20countrybuilding,lightingandapplianceefficiencypolicies.......................12

    Table4SummaryofG20countryindustryefficiencypolicies............................................................16

    Table5SummaryofG20countryrenewableelectricitypolicies........................................................20

    Table6SummaryofG20countriesnuclearpolicies...........................................................................26

    Table7Barrierstoheatandrenewableheatdeployment..................................................................29

    Table8Summary

    of

    G

    20

    country

    renewable

    heat

    policies

    ................................................................

    29

    Table9SummaryofG20countryCCSregulatorydevelopmentandlargescaleprojectfunding......32

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    Table10SummaryofG20countryelectricvehiclepolicies...............................................................35

    Table11SummaryofG20countryfueleconomypolicies..................................................................37

    Table12SummaryofG20countrybiofuelspolicies...........................................................................40

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    5

    Background

    In their June 2010 Communiqu, G20 leaders stressed that their overriding objective is to

    safeguard and strengthen the (global economic) recovery and lay the foundation for strong,

    sustainable and balanced growth (G20, 2010a). In line with achieving this objective, their

    November2010

    Seoul

    G

    20

    Communiqu

    committed

    to

    support

    country

    led

    green

    growth

    policies

    that promote environmentally sustainable global growth along with employment creation while

    ensuring energy access for the poor. (They) recognise that sustainable green growth, as it is

    inherently a part of sustainable development, is a strategy of quality development, enabling

    countries to leapfrog old technologies in many sectors, including through the use of energy

    efficiency and clean technology. Countries agreed to take steps to create, as appropriate, the

    enablingenvironmentsthatareconducivetothedevelopmentanddeploymentofenergyefficiency

    and clean energy technologies, including policies and practices in (their) countries and beyond,

    includingtechnicaltransferandcapacitybuilding.

    Whilesupportingtheongoing initiativesoftheCleanEnergyMinisterial,theEnergyExpertsGroup

    was

    requested

    to

    monitor

    and

    report

    back

    ()

    on

    progress

    at

    the

    2011

    Summit

    in

    France

    (G

    20,

    2010b).

    Insupportof this request, the InternationalEnergyAgency (IEA)hasworked incollaborationwith

    theCleanEnergyandEnergyEfficiency (C3E)WorkingGroup,with input fromother international

    organisations todevelop this report,whichhighlightsG20 country andC3Ememberprogress in

    cleanenergyandenergyefficiencytechnologydeploymentandpolicydevelopment.

    Whilemany energy efficiency and clean technologieswillbe required to enable environmentally

    sustainable global growth, this report focusesonlyonprogress in those technologieshighlighted

    within the C3E questionnaire (see Annex I), which include energy efficiency, renewable power,

    nuclearpower,renewableheat,carboncaptureandstorage(CCS)andtransport.

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    6

    Scopeandmethodology

    UponrequestoftheC3E,thisdraftreportprovidesanoverviewofcurrentcleanenergytechnology

    deployment,andsummarisespoliciesinplacetoacceleratetheuptakeofthesetechnologiesacross

    G20andC3Emembercountries.

    ThisreportisintendedtoinformthediscussionsoftheC3Eanddoesnotincluderecommendations

    foraction.Following theguidelinesof theC3E, theReportpolicycontent isdrawnpredominantly

    from the Working Group country submissions. The report summarise contents from these

    submissionsthatwerecomparable,andforwhichinformationwassubmittedbyasufficientnumber

    ofcountries.Theshorttimeframeavailabletoreviewcountrysubmissionsandcompletethisdraft

    reportonlyallowedforbriefinteractionwithcountriestoclarifycontents.Whilenotalldetailsofthe

    individualsubmissionsareincludedinthereportpolicytables,thesearecontainedinthedocument

    CompendiumofG20C3EWorkingGroupQuestionnaireSubmissions.

    AstheIEAhasaimedtoprovideascompletepolicyinformationaspossible,somepolicydetailshave

    been supplemented where incomplete with information from the IEA Policies and Measures

    Database(http://www.iea.org/textbase/pm/index.html).

    For

    countries

    that

    did

    not

    submit

    the

    C3E

    questionnaire, information already available to the IEA has been included in the report. Some

    historicaltechnologydeploymentdatahasalsobeenincludedthroughoutthereporttoprovidethe

    readers with basic, but necessary context about the status of the various technologies being

    discussed.

    Theterm G20countriesusedthroughoutthereport, includesthefollowingcountries:Argentina,

    Australia, Brazil, Canada, China, European Union, France (G20 Presidency), Germany, India,

    Indonesia, Italy (C3EWGCoChair), Japan,Republicof Korea (C3EWGCoChair),Mexico,Russia,

    SaudiArabia,SouthAfrica,Spain(C3EWGCoChair),Turkey,UnitedArabEmirates(G20Observer),

    United Kingdom, and United States. These countries are all members of the G20 C3E Working

    Group.

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    7

    Acknowledgements

    ThisreportreliesheavilyonthepolicyinformationsubmittedbymembercountriesoftheG20C3E

    workinggroup.Wewould therefore first like to thankall thoseofficials fromG20countrieswho

    contributed longhourstothiseffort,withoutwhichthisreportwouldnothavebeenpossible.We

    wouldalso

    like

    to

    thank

    the

    Organisation

    of

    the

    Petroleum

    Exporting

    Countries

    (OPEC),

    the

    InternationalRenewableEnergyAgency (IRENA),andallparticipants in theC3Eworkinggroup for

    theirconstructivereviewandcommentoftheearlierdraftsofthisreport.Whilethisfinalreportwas

    notabletotakeallviews intoaccount, ithasaimedtopresentabalancedreflectionofthe inputs

    received. This report would also not have been possible without the strong support of the C3E

    workinggroupanditscochairs:Italy,Spain,andtheRepublicofKorea.

    TheproductionofthisreportwascoordinatedandcoauthoredbyAntoniaGawel,withsignificant

    section information analysis and drafting from the following colleagues: Adam Brown, Zuzana

    DobrotkovaandAdaMarmiononrenewablepowerandheat;AnselmEisentrautonbiofuels;Robert

    TromopandCharlotteForbesonenergyefficiency;FranoisCuenot,LewFultonandTaliTriggon

    transport;

    Sean

    McCoy

    and

    Justine

    Garrett

    on

    Carbon

    Capture

    and

    Storage;

    and

    Kevin

    Breen

    on

    nuclearenergyandotherreportaspects.

    Finally, we would like to thank, Bo Diczfalusy, Paolo Frankl, Lew Fulton, Rebecca Gaghen,

    AmbassadorRichardH.JonesandMarkusWrakeoftheIEAfortheirguidanceandforcoordinating

    input from their respective teams.GillianBalitrand,AnnetteHardcastleandCatherine Smith also

    providedformattingandreviewsupport.

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    8

    Introductionandsummaryoffindings

    The deployment of clean energy technologies around the world is progressing rapidly:

    implementationofenergyefficiencypoliciesisimproving,renewableenergytechnologieshaveseen

    27%to56%growthrates inrecentyears1,andgovernmentsarebeginningtosetgoalstosupport

    thedevelopment

    of

    advanced

    vehicle

    markets.

    Table

    1provides

    abrief

    overview

    of

    deployment

    levelsandgrowthratesinanumberofcleanenergytechnologies:

    Table1Annualgrowthrates200010and2010statusofdeploymentforcleanenergytechnologies

    Technology Growth rate 2010 status of deployment

    Biofuels 24% 104 billion litres

    Biomass power 8% 284 TWh

    Hydro power 3% 3 428 TWh

    Solar PV 56% 34 TWh

    CSP 29% 2 TWh

    Wind 27% 338 TWh

    Geothermal power 4% 72 TWh

    Nuclear power 0% 2 630 TWh

    Solar thermal heat 11% 172 GWth

    Carbon Capture and Storage - 8 large scale projects in operation*

    Electric vehicles - -

    *AccordingtoGCCSIdatabaseassessment,2011.

    Note:Allgrowthratesarecalculatedasaverageannualgrowthratesfrom2005to2010withtheexceptionofsolarthermalheatwhichis

    calculatedfrom200509.Renewablegenerationfor2010isestimateddata.Solarthermalstatusispresentedfor2009.

    Source:IEAStatistics

    While thisprogresshasbeenpositive, theworld is still largelydependenton fossil fuels tosatisfy

    growth in globalenergydemand (Figure1). In thepastdecade, coalhasmetnearly50%ofnew

    electricitydemandgloballyandoilcurrentlyaccounts94%ofenergysupplyinthetransportsector.

    While renewablesgrowthhasbeenpositive,nonhydropower renewables representedonly3%of

    finalelectricityproduction in2009. Improvingenduseefficiency,enhancingtheefficiencyof fossil

    fuelbasedpowergeneration,andsupportingthewidespreaddeploymentofCCSwill,therefore,also

    becrucialaspectsofthetransitiontoacleanerenergyfuture.

    1From2005to2010,windpowergrewandanaveragerateof27%peryear,andsolarphotovoltaicatanaveragerateof56%.

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    9

    Figure1IncrementaltotalprimaryenergysupplyinG20andtheworld200009

    10 0 10 20 30 40 50

    Otherrenewables

    Biomassandwaste

    Hydro

    Nuclear

    Gas

    Oil

    Coal

    EJ

    G20Europe

    G20Pacific

    G20Asia

    G20Americas

    G20Africa

    Restoftheworld

    Note:G20Europe includingRussia isFrance,Germany, ItalyRussia,SpainTurkey,UnitedKingdom.G20Pacific isAustralia, Indonesia,

    JapanandKorea.G20Asia isChina, IndiaandSaudiArabia.G20Americas isArgentina,Brazil,Canada,Mexicoand theUnitedStates.

    G20AfricaisSouthAfrica.AlldataisofficialIEAstatistics.

    Theconsequencesof this trendarestarker thanever.Energy relatedCO2emissionsover thepast

    decadehavesteadilyincreased(Figure2).Despitetheslightdropobservedin2009duetoreduced

    economicdemand,early2010CO2emissionsestimatessuggestthattheywereatanhistorichighof

    30.6Gigatonnes (Gt). This represents a 5%jump from theprevioushigh in 2008. Perhaps,more

    important is that80%ofprojectedemissions from thepowersector in2020are locked indue to

    infrastructureinvestmentsalreadymade.

    Figure2Global

    energy

    related

    C02emissions

    for

    G

    20

    and

    the

    world

    2000

    09

    0

    5

    10

    15

    20

    25

    30

    35

    20 00 2 00 1 2 00 2 2 003 2 00 4 2 00 5 2 00 6 200 7 2 00 8 20 09 2010

    GTofCO2

    2010estimate

    Restoftheworld

    G20Africa

    G20Pacific

    G20Europe

    G20Americas

    G20Asia

    Note:AlldataisIEAstatistics.2010dataareestimates.

    The G20 group of countries represents close to 80% of these energy related CO2 emissions,

    although individual countries show a wide range of current, historical, and percapita emissions

    levels(percapitaemissionsrangedfrom1.4to17.7tonnesCO2in2009).TheG20groupistherefore

    presentedwith

    an

    important

    opportunity

    to

    make

    collective

    progress

    towards

    the

    objective

    of

    developinganddeployingenergyefficiencyandcleanenergytechnologies.

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    10

    Cleanenergytechnologydeploymentandpoliciesin

    G20countries

    The transition towards a cleaner energy futurewill require thedevelopment anddeployment of

    arrayof

    technologies

    across

    the

    entire

    energy

    sector

    (IEA,

    2010).

    This

    section

    provides

    an

    overview

    ofenergyefficiencyandcleanenergytechnologydeploymentandpolicyprogressinG20countries,

    withafocusonthosetechnologiesincludedintheC3EWorkingGroupquestionnaire.Thisincludes

    energyefficiency inbuildings, lighting,appliancesand industry; renewablepower;nuclearpower;

    renewableheatingandcooling;carboncaptureandstorage,andtransport.

    Energyefficiency

    Energyefficiency isacrucial resource thatcanhelpmeet futureenergyneeds inallcountries. Its

    benefits have the potential to be farreaching, by offsetting increases in final energy demand,

    providingsavingsonenergybills,andenablingCO2emissionreductions.TherecentIEAstudySaving

    Electricity in a Hurry also observed that implementation of energy efficiency measures is also

    critically important to avoid prolonged electricity shortfalls, which are caused when demand

    outpaces electricity available to customers. Prolonged electricity shortfalls can reduce economic

    competitiveness by creating uncertainty in electricity supply and increasing electricity costs (IEA,

    2011a).

    Government policies in energy efficiency tend to focus in seven different areas: crosssectoral

    activity,buildings,appliances, lighting, transport, industryandpowerutilities.Asallsectorsdiffer,

    effective policy packages should reflect the diffuse and incremental nature of energy efficiency

    actions. Policies also need to include a systemic approach, as no policy can be implemented in

    isolation.

    Theencouraging

    news

    is

    that

    public

    policy

    has

    already

    made

    substantial

    strides

    in

    successfully

    transformingmarketsforanarrayofenergyefficientproducts, includingcompactfluorescent light

    bulbs (CFLs), refrigerators, motors and key building components. These successes have been

    deliveredbyasuiteofwelldesignedand implementedenergyefficiencypolicies,suchasbuilding

    codes,standardsandlabelling(S&L),energycertificationschemesandutilityprogrammes.

    However,pervasivebarriers toenergyefficiency investmentand implementationof relatedpolicy

    measures remain: these include information, transaction, financing, institutional and structural

    barriers, and regulatory issues that can slow down investment. As energy efficiency is diverse,

    addressingthesebarrierscanbecomplex.Furthereffortsareneededtoadvanceintegratedbuilding

    designandperformance,strengthenappliancestandardsacrosstheboard,improvemonitoringand

    verification

    of

    labelling

    and

    certification

    schemes,

    incentivise

    utilities

    to

    invest

    more

    in

    energy

    efficiency and provide a competitive framework for industry to invest in the Best Available

    Technology(BAT).

    The following section provides an overview of G20 country technology deployment and policy

    progressintheareasofenergyefficiencyinbuildings,lighting,appliancesandindustry.

    Energyefficientbuildings,lightingandappliancesTheenergyconsumptionof thebuildingssector isprojected togrow from2759Mtoe in2007 to

    4407Mtoeby2050,withoverhalfthisconsumptioninresidentialbuildings.Deepcutsintheenergy

    consumptionofthebuildingsectorcanhoweverbeattainedinacosteffectivewaybyimplementing

    stringent

    requirements

    for

    both

    new

    and

    existing

    buildings

    and

    deploying

    currently

    existing

    energy

    efficienttechnologiesonaglobalscale.

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    11

    Significantbarrierstoachievingthepotentialenergyefficiencysavings inbuildingsmust,however,

    be addressed. These include split incentivesbetween tenant and landlords, lackof awarenessof

    efficient technologies, absenceofqualified technicians andhigh initial investment costs.Ways to

    helpovercomethesebarriersincludeensuringthatallnewbuildings,aswellasbuildingsundergoing

    renovation, are coveredby energy codes andmeetminimum energyperformance requirements.

    Thisshould

    be

    done

    in

    away

    that

    does

    not

    impact

    the

    provision

    of

    affordable

    living

    to

    low

    income

    households.

    SummaryofG20policies

    Policies to improve the energy efficiency of existing buildings, with emphasis on significant

    improvements to building envelopes and systems during renovations will help achieve energy

    efficiencyobjectives.Inorderto improvetheenergyefficiencyofbuildingsspecifically,anarrayof

    policy instruments are available. These include regulatory building codes, voluntary approaches,

    economic instruments,energycertificationschemes,andminimumenergyperformancestandards

    (MEPS)orS&Lforbuildingcomponents,asoutlinedinTable2below.

    Table2Building

    energy

    efficiency

    policy

    types

    Policy instrument Description

    Regulatory building codesThese include energy efficiency standards for new buildings; the stringency of building codesstandards should be reviewed and advanced.

    Voluntary approaches

    These are a useful preliminary step for countries beginning to develop energy efficiencypolicies, in order to prepare for the development and implementation of mandatory buildingstandards. Currently, there is not significant information about this approach in G-20countries.

    Economic instruments

    These include grants and tax reduction. They are important across G-20 countries toincrease leverage in energy efficiency investments in buildings. The United StatesWeatherisation Assistance Program provides grants for energy efficiency retrofits. Over thepast 33 years, they have serviced more than 6.4 million low-income households and reducedannual energy bills on average by about USD 437 after weatherisation has taken place. In

    France, Italy and the United Kingdom, tax incentives are a commonly used economicinstrument whereas Germany supports a preferential rate loan system for the energy-efficient renovation of buildings. Governmental subsidies and tax incentives for EnergyEfficiency technologies are provided in Russia under recently adopted Federal program andEnergy efficiency legislation.

    Energy certification

    schemes

    These aim to make sure buyers and renters of buildings are adequately informed of thebuildings energy efficiency. Eight countries have implemented mandatory certificationschemes for buildings. On top of the mandatory certification scheme, voluntary certificationschemes exist and have been implemented with success: examples include Leadership inenergy and Environmental Design LEED (United States), Building Research EstablishmentEnvironmental Assessment Method BREAM (United Kingdom), and Haute QualitEnvironnementale HQE (France). Training of qualified experts on the energy certificationprocedure and informing citizens about energy certification is also fundamental. In Spain, theInstitute for Diversification and Energy Saving (IDAE) has carried out several campaigns,developed guides and carried out training courses, in collaboration with the Autonomous

    Communities.Minimum energy

    performance requirements

    and Labels (MEPS or S&L)

    for buildings components

    Voluntary labelling schemes and minimum energy performance energy requirements areusually implemented for windows. The scope of the revised European Union EcoDesignDirective (2009/125/EC) has been extended to include energy-related products. In the nearfuture mandatory S&L requirements for windows are expected to be adopted within the EU.

    Householdappliances represent thebestexampleofhowgovernmentpoliciesandpublicprivate

    partnershipscantransformconsumerpurchasingofenergyconsumingequipment.Governmentled

    MEPS and labelling programmes are used widely in this sector and have been transformative,

    leading to increased functionality and efficiency of most appliances while reducing unit costs.

    Productenergy labellingtakesoneoftwo forms:endorsement labelling,suchastheUnitedStates

    EnergyStarlabel(generallyofvoluntarynature),andcomparativelabelling,alsousedwidelyacross

    G20countries(usuallyintheformofmandatoryprogrammes).MexicousesavoluntaryFIDELabel

    systemtocertifyandidentifyenergyefficientproductsfortheMexicanmarket.Indiaestablishedits

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    12

    mandatoryenergyefficiency labellingprogramme in2007 coveringmany appliances including air

    conditioners, televisions, and refrigerators. Although enduse MEPS and labelling programmes in

    equipment and buildings are being implemented with increasing frequency, the extent of

    compliancevaries.

    Lightingonitsownconsumesafifthofglobalelectricity.Globally,incandescentlampsareestimated

    tohave

    accounted

    for

    970

    TWh

    of

    final

    electricity

    consumption

    in

    2005

    (IEA

    2006).

    In

    the

    hypotheticalcasethatalltheselampsweretobereplacedbyCFLs,cumulativelythiswouldreduce

    globalnet lighting costsbyUSD1.3 trillion from2008 to2030andavoid6.4GtCO2emissionsat

    negativeabatementcost.Thephasingoutofinefficientlampsis,therefore,akeypriorityinthisarea.ToovercomethehighpurchasecostwhichheldbackthemarketpenetrationofCFLs initially,most

    countries introduced the phaseout of incandescent light bulbs which began in 2010. Japan for

    example, implementedMEPS forthemost inefficientbulbsandprogressedtoaremoval fromthe

    marketof all incandescent lamps.Australia,Brazil,Russia,Canada andKoreahave announcedor

    introducedpolicies thatwill lead to thephaseout incandescent lamps,whileChinaand Indiaare

    consideringsuchpolicies.

    Table3provides

    an

    overview

    of

    energy

    efficiency

    targets,

    policies

    and

    their

    progress,

    with

    afocus

    onthebuildingsectorandinclusionofsomemeasuresrelatedtolighting,andhouseholdappliances.

    Completecountrysubmissionswith furtherdetailscanbe found in thedocumentCompendiumof

    G20C3EWorkingGroupQuestionnaireSubmissions.

    Table3SummaryofG20countrybuilding,lightingandapplianceefficiencypolicies

    Country Summary of Policies/Targets Policy type Progress/Status

    Argentina

    A variety of labelling rules, provisions andresolution on appliances, air conditioners andelectric appliances for washing, dryingclothes and lighting.

    Labelling, voluntary andcompulsory schemes andminimum standards.

    Implementation underway insome areas. Plan to implementin other areas.

    Australia

    Tax Breaks for Green Buildings Programallows eligible businesses that invest inimproving the energy efficiency of theirexisting buildings will be able to apply for atax break.

    Under the Building Energy EfficiencyDisclosure Act 2010 there are mandatoryobligations applicable to many commercialbuildings. Most sellers or lessors of officespace of 2,000 square metres or more will berequired to obtain and disclose an up-to-dateenergy efficiency rating.

    Energy Efficiency in Government Operations(EEGO) aims to reduce the energyconsumption of Australian Governmentoperations with particular emphasis on

    building energy efficiency.

    Clean Technology Food and FoundriesInvestment Program will provide grants tofood and beverage processing and metalfoundries and forging industry firms to investin energy-efficient capital equipment and low-pollution technologies and processes.

    The Equipment Energy Efficiency (E3)Program applies Minimum EnergyPerformance Standards (MEPS) and EnergyRating Labels (ERLs) to appliances,equipment and lighting products.

    Phase-out of inefficient lighting commenced

    in 2009 with the removal of A shaped GLSincandescent lamps of all wattages from themarket.

    Financial incentives

    Regulatory

    Scheme

    Financial incentives

    Standards

    Implemented

    Implemented

    Government office buildings areto achieve the following energyintensity targets by June 2011:7,500 MJ/person per annum for

    tenant light and power;400 MJ/m2 annum for centralservices.

    Development underway

    22 products are covered by theprogram with a further 20 beingproposed for futureconsideration.

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    13

    Brazil

    Labelling Programme for residential,commercial and public buildings;

    Labelling Programme, Energy Efficiency Sealand Minimum Energy PerformanceStandards, acting complementarily.

    Education & outreach(labelling)

    Regulatory (MEPs forAppliance )

    Implementation underway

    Fully Implemented

    Canada

    ecoENERGY for Buildings and Houses

    ecoENERGY Retrofit Initiative

    Education & outreach(Dollars to Senseworkshops, trainingprogrammes, rating &labelling); model codes;partnerships & capacitybuilding.

    Financial Incentives forenergy efficiencyimprovements in homes &grants of up to USD 5 000per unit for home andproperty owners.

    Substantial implementation

    Substantial implementation

    EuropeanUnion

    Energy Efficiency Plan

    Intelligent Energy Europe Programme (2007-13)

    Regulatory instruments(binding measures,obligations for entities, etc)

    Financial Incentives &subsidies (e.g., grants tolocal and regionalauthorities for developingbankable sustainableenergy investments).

    Implementation underway,however: recent Commissionestimates suggest that the EU ison course to achieve only half ofthe 20% energy savingobjective. The Commission has,therefore, developed acomprehensive new EnergyEfficiency Plan.

    Substantial implementationinother areas.

    France

    New buildings with low energy consumption50kWh/m2/year (2012) (in primary energy);positive energy buildings (2020)

    European directives on eco-design andlabelling

    Thermal Regulation 2012about to fully come intoforce; financial incentivesto building refurbishment;

    thermal regulation forexisting buildings.

    Regulations by family ofproducts linked withenergy.

    Aims toreduce by 38% theprimary energy consumption ofexisting buildings by 2020.

    Germany

    A wide variety of Directives and Ordinancesexist in the buildings sector. Nationalregulation includes the Energy Saving Act(EnEG) and Energy Saving Ordinance(EnEV), other measures include the On-siteconsultation in residential buildings.

    Regulatory(Directives, audits, etc)

    Substantial implementation

    Italy

    Italian National Action Plan on EnergyEfficiency 2007- Decree 115/08- MD26/6/2009

    e.g. Financial incentives to buildingrefurbishment (fiscal rebate as the minimumbetween EUR 100k and 55% of therefurbishment costs)

    Target of 60 027 GWh/y by 2016;77 121 GWh/y by 2020

    Regulatory Implementation underway

    Japan

    Act on the Rational Use of Energy: Reportingrequirements on the energy efficiency andmaintenance of buildings under construction/reconstruction/ large-scale repair/ extension;defines energy conservation standard forappliances and equipment based on Top-runner programme; labelling programmetargeted at home appliances.

    The Strategic Energy Plan for Japan: sets

    improvement goals for building and applianceenergy efficiency.

    Regulatory Implementation underwayor plan to implement

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    Korea

    National legislation includes Article No. 66 onnew building code (Building Act); Article 66-2on new buildings energy performancecertification (Building Act) and Article No. 8on public buildings energy performancecertification.

    For lighting, there are articles No. 22 on High-

    efficiency equipment certification programmeand 4th Energy utilisation rationalisationmaster plan.

    Regulatory Implementation underway. Planto implement other measures

    Mexico

    Law for Sustainable Use of Energy and theNational Program for the Sustainable Use ofEnergy (PRONASE).

    Regulatory Implementation is underway insome areas such as theHipoteca Verde. In other areas,plan to implement.

    Russia

    Law No. 261 of 2009 establishes a rule thatbuildings, structures and facilities must meetenergy efficiency requirements during boththe start-up phase and during their operation.

    In accordance with the legislation, effective 1January 2011 incandescent light bulbs ratedat 100 watts or higher that may be used onalternating current circuits for lighting, maynot be sold in the Russian Federation.

    Approved requirements for lighting devicesand electric bulbs, a variety of labelling rules,provisions and resolution on electricappliances.

    RegulatoryLabelling

    Implementation is underway

    SaudiArabia

    A variety of policies are underway or beingconsidered, such as plans to establish SEECCenter to develop future plans, andManagement System Smart Building forbuildings and building materials.

    Plan to implement

    Spain

    European Directives in place. SpecificSpanish Regulation includes Spanish EnergySaving and Efficiency Strategy 2011-12. TheTechnical Building Code (RD 314/2006) and

    the Regulation on Building HeatingInstallations (RD 1027/2007) are beingreviewed. Approval of a Building EnergyCertification procedure for new buildings (RD47/2007). A procedure of energy certificationfor existing buildings is under development.Setting of eco-design requirements forproducts and energy labelling. Plan 330 andPlan 2000 to reduce by 20% energyconsumption by 2016 in 2 330 PublicBuildings through ESCOs (National, Regionaland Local). RD 1890/2008 regulates energyefficiency in street lighting installations.

    Spanish RENOVE plans for electricalhousehold appliances and lifts.

    Regulatory (bothEuropean and national)

    Financial Incentives forenergy efficiency

    improvements in buildings

    Implementation orimplementation is underway

    UnitedKingdom

    Building, appliance and lighting are includedunder the EU Energy End-Use Efficiency andEnergy Services Directive to deliver 9%energy savings by 2016.

    Measures include Building Regulations andcertification, European appliance standards,the Carbon Emissions Reduction Targetobligation on energy suppliers andinformation, fiscal incentives, advice andinformation services.

    A mix of codes andstandards, regulatorymeasures (national andEU), labelling &information dissemination

    Substantial implementation orimplementation underway.

    UnitedStates

    National measures include standards andincentives for energy efficient housingtechnologies, lighting, and appliances;labelling programmes such as EnergyStar;and various public-private partnershipactivities such as the Commercial BuildingInitiative.

    A mix of codes andstandards, regulatorymeasures, financialincentives, labelling &information dissemination

    Substantial implementation orImplementation underway insome areas; Plannedimplementation in some areas.

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    EnergyefficiencyinindustryTheenergyintensityofthemanufacturingindustryasawholehasbeendecreasingby1.3%peryear

    since2005.Whilethismayhidesignificantfluctuationsinindustrialactivitycausedbyotherfactors

    such as the economic recession, this trend bodes well for longterm energy savings targets. The

    effect of these savings is significant: despite a 45% increase in output, final energy in the

    manufacturingsectordecreasedby0.6%between1990and2006(IEA,2009).

    SummaryofG20policies

    Energyefficiencypolicyinmostcountrieshasdrawnoneconomicincentivestodrivethemarketfor

    moreadvancedenergyefficientequipment,reducingtheupfrontinvestmentcostthroughtaxrelief

    or subsidies, grants or loans. Many countries provide lists of eligible energy efficient equipment

    whichactasan informationorbenchmarkingtoolforcompanyorpublicsectorprocurement(IEA,

    2011c).Turkeyhasestablishedaprogrammeoffinancialgrantsforindustrybasedenergyefficiency

    projects that reduce energy intensity by 10% on average over three years in industrial

    establishments. Canadas ecoENERGY for Industry Programme devoted approximately

    CAD18

    million

    in

    information

    sharing

    and

    technology

    investments

    to

    encourage

    energy

    intensity

    reductionsinindustrialplants.

    Many G20 countries are continuing, or expanding, their promotion of energy management in

    industry. These policies commonly include the provision of energy management tools, training,

    energymanager certificationandqualityassurance.Forexample, theAustralianEnergyEfficiency

    Opportunities (EEO)program requires largeenergyusers (consumingmore than0.5petajoulesof

    energyinayear)toassesstheirenergyuseandreportpublicly,andtothegovernmentonidentified

    savings. Nevertheless, with few G20 countries implementing energy management support

    programmes,significantroomforimprovementremains.Therehavebeendevelopmentstowardsa

    globalenergymanagement standardunder the InternationalStandardsOrganisation (ISO),whose

    new ISO 50001 will establish a framework for industrial plants, commercial facilities or entire

    organisationsto

    manage

    energy.

    This

    standard

    was

    recently

    approved

    as

    aDraft

    International

    Standard (DIS).Targetingbroadapplicabilityacrossnationaleconomicsectors, it isestimated that

    thestandardcouldinfluenceupto60%oftheworldsenergyuse(ISO,2011).

    Theopportunities for improving theenergyefficiencyofelectricmotors areoftenmisseddue to

    organisational structures in many companies, which separate equipment procurement from

    operationandmaintenance.Thisgivesthepurchasingofficerlittlereasontolookbeyondthelowest

    purchasepriceatpotentiallymoreefficienttechnologies.Onepolicyapproachtoovercomethis is

    theuseofMEPS.TheUnitedStatesandCanadaare international leaders intermsofsettingmotor

    energyefficiency standards, as they introduced MEPS regulations for motors in the late 1990s

    followedbymanycountriessuchasChina,Australia,Korea,Brazil,andMexico.TheEuropeanUnion

    alsopassed

    MEPS

    legislation

    for

    electric

    motors

    in

    2009

    as

    an

    implementing

    measure

    under

    the

    Eco

    design Directive. Japan is considering applying the Top Runner Program under Energy

    Conservation law to electricmotors. India and Russia have not adoptedMEPS but are currently

    consideringtheirimplementation.

    Energy providers have distinct advantages and play a major role in delivering energy efficiency

    improvements inmanyG20 countries.An ability to recoverprogramme costs, compensation for

    foregonerevenuesduetolowersales,andacceptablelevelsofregulatoryandotherrisksareamong

    the factors that can enable energyproviders to embrace this role. Thesehave been achieved in

    manyjurisdictions,notably InNorthAmericaandpartsofEurope. InBrazil,utilities collect1%of

    electricity revenues,which isused to fundenergyefficiencyprogrammesaswellas researchand

    development. The EUs Energy Efficiency Plan 2011 proposes legislation that will oblige energy

    regulatorsand

    energy

    companies

    to

    take

    steps

    that

    enable

    their

    customers

    to

    cut

    their

    energy

    consumption. This could take the form of obligations to cut customer energy consumption, or

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    requirements to implement certain typesofefficiency investmentprogrammes,eitherdirectlyor

    throughEnergyServiceCompanies.

    Table4providesanoverviewofenergyefficiencymeasures, targets andprogress in the industry

    sector within G20 countries. Complete country submissions can be found in the document

    CompendiumofG20C3EWorkingGroupQuestionnaireSubmissions.

    Table4SummaryofG20countryindustryefficiencypolicies

    Country Brief summary of Policies/Targets Policy type Progress/Status

    Argentina

    Decree N 140/2007.

    Energy Efficiency Project in Argentina- GEF(Decree N 1253/09)

    Regulatory Plan to implement

    Australia

    Energy Efficiency Opportunities Act (2006).Mandatory energy efficiency assessmentsand public reporting of results by Australia'slargest energy using corporations (280) andgenerators covering more than 55% of

    Australia's energy use. The program alsodelivers capacity building materials and

    workshops to support identification andimplementation of opportunities.

    Regulatory Implemented

    BrazilStudies are being undertaken on incentivesfor energy efficiency appliances.

    Plan to implement

    Canada

    EcoENERGY aims at encouraginginformation-sharing regarding newtechnologies and best practices in industrialenergy use, as well as the adoption of anEnergy Management Standard. It is deliveredthrough the Canadian Industry Programmefor Energy Conservation (CIPEC).

    Education and Outreach;Information Dissemination;Policy Processes; Project-BasedProgramme; Strategic Planning;Voluntary Agreement, PrivateSector/Government-arrangedagreements.

    Substantialimplementation in industry

    EuropeanUnion

    Energy efficiency in industry will be tackledthrough energy efficiency requirements forindustrial equipment, improved information

    provision for SMEs and measures tointroduce energy audits and energymanagement systems. Improvements to theefficiency of power and heat generation arealso proposed, ensuring that the EnergyEfficiency Plan includes energy efficiencymeasures across the whole energy supplychain.

    Regulatory Implementation underway

    France

    European directive on CO2 emissions tradingscheme (reduction by 20% of the CO2emissions covered by the scheme in 2020).

    Regulatory Plan to implement, butmany other industrial-related measures haveyet to be implemented

    Italy

    Italian National Action Plan on EnergyEfficiency 2007: Decree 115/08-

    MD/6/2009- Law 99/ 2009-Decree 28/2011

    e.g. Financial incentives for the purchase ofefficient electric motors or inverters (fiscalrebate of EUR 20k of the investment costs).

    Regulatory ImplementationUnderway: 8270 Gxh/yhas been achieved by

    2011

    Japan

    Act on the Rational Use of Energy: obligesfactors of defined energy consumption levelsto assign energy managers and reportenergy consumption. Factors consumingover 3000kl-oe must report on mid-termenergy consumption plans. Factories shouldalso endeavour to achieve 1% or morereduction in energy use annually.

    Strategic Energy Plan for Japan (2010):promotes use of the most advanced energyconservation/ low-carbon technologies.

    Regulatory Implementation underway

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    Korea

    Specific national regulations such as Article 42on GHG-Energy target management systemand Article 32 on Energy Audit: compulsory forindustrial users that exceed the baselinevolume of 2000 TOE for energy.

    Regulatory: Energy savingloans

    In some areas, fullimplementation has takenplace. In other areas,substantialimplementation orimplementation isunderway

    Mexico

    To update mandatory standard of efficiency inthree-phase motors; encourage thereplacement of inefficient motors throughpolicies such as Law for the Sustainable Useof Energy (LASE); National Program for theSustainable Use of Energy (PRONASE) andvarious strategies for new and existingequipment.

    Regulatory: certificate &information programme

    In many cases, plannedimplementation, orimplementation underway

    Russia

    Obligatory Energy audits and Energy savingprograms for State regulated companies, statesubsidies and guarantees for Energy Efficiencyprojects.

    Regulatory: Auditing,

    Information sharing,

    Financial (tax incentives etc.)

    Planned implementation,but for Energy auditsimplementation isunderway

    SaudiArabia

    Enhance Energy Efficiency (EE) and reduceintensity and Energy audits, Smart Metering,and Time of Use Tariff (TOU).

    Auditing Planned implementation,but for some measures,implementation isunderway

    Spain

    A variety of specific national programmes,such as Public aid programmes, EnergyEfficiency Action Plan 2008-12, EnergyEfficiency Action Plan 2011-20 and RoyalDecree-Law 14/2010. Voluntary agreementsbetween the representative associations ofeach sector and Ministry and IDEA, and aPublic Support Programme are also in place.

    Regulatory and Voluntary Implementation planned,or underway

    UnitedKingdom

    The United Kingdom Policy Framework is setout in the United Kingdom Energy Efficiency

    Action Plan Update published in July 2011which can be found athttp://www.decc.gov.uk/assets/decc/11/meeting-energy-demand/international-energy/2289-uk-report-eu-enduse-esd.pdf

    The framework includes action in the industrialsector including the Climate Change

    Agreements with energy intensive sectors ofindustry, the Carbon Reduction CommitmentEnergy Efficiency Scheme and fiscalincentives.

    Financial (taxes, taxincentives, etc), Regulatory,Voluntary Agreements,information dissemination,Emissions Trading

    Substantialimplementation, orImplementation underway

    UnitedStates

    Measures include energy performancestandards for industrial equipment, voluntaryrecognition partnerships such as Save EnergyNow LEADERS and EnergyStar for Plants, andvarious technical assistance and best practiceprogrammes, such as Industrial AssessmentCenters and Green Suppliers Network.

    Regulatory

    Voluntary

    Certification

    Education and outreach

    Substantialimplementation or

    Implementation underwayin other ways

    Renewablepower

    Ataglobal scale, renewableelectricitygeneration2hasbeengrowingstrongly.Between2005and

    2010,totalglobalgenerationfromrenewablesources increasedby22%,from3293to4159TWh

    (Figure3).Hydropowerstillplaysthemajorrole,withashareof16.2%oftotalelectricityproduction

    in2009,andhasbeen increasingsteadily(atanaverageof17%annualgrowthbetween2005and

    2010). The nonhydro renewable electricity generation technologies have been growing more

    rapidly,albeitfromamuchlowerbase,withgenerationdoublingoverthelastfiveyears.Although,

    itsoverallshareoftotalelectricityproductionremainslow,at3%in2009,someindividualcountries,

    particularlyinEurope,havemadeimportantstrides.

    2Withinthissection,nonhydrorenewablesincludewind,solar,biomass,geothermalandoceanenergy.

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    Figure3Evolutionofrenewableelectricitygeneration,200510

    0

    500

    1000

    1500

    2000

    2500

    3000

    3500

    4000

    4500

    2005 2006 2007 2008 2009 2010

    NonhydroRest

    ofWorld

    HydroRestof

    World

    NonhydroG20

    HydroG20

    TWh

    Source:BasedonIEAstatisticsandestimates.

    Figure3showstheimportanceofG20countriesinthisfield.76%ofhydrogenerationiswithinthe

    G20Group,andallthegrowthinhydrogenerationoverthelastfiveyearshascomefromwithinthe

    G20countries (notably inChina).93%ofnonhydrorenewablegenerationoccurswithintheG20

    countries,wheregenerationdoubledbetween2005and2010.

    Whilegenerationfromallthetechnologieshasbeengrowing,themostdramaticgrowthhasbeenin

    thewindandsolarphotovoltaic(PV)sectors.Windcapacityhasgrownfrom59to194GWoverthe

    lastfiveyears(Figure4)withover97%ofinstalledcapacitywithinG20countries.

    Figure4Growthinwindcapacity200510

    0

    50

    100

    150

    200

    250

    2005 2006 2007 2008 2009 2010

    GW

    RestofWorld

    RestofCEM

    India

    Spain

    Germany

    US

    China

    Source:IEAanalysisbasedonGWECandWWEA.

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    TheglobalgrowthofPV in recentyearshasalsobeen remarkable,albeit froma lowbase.Global

    capacitywasbelow5GWinonly2005andistodayatthe40GWmarkalmosta10foldincreasein

    fiveyears.Mostofthisrapidgrowthhastakenplaceinaverylimitednumberofmarketsandnearly

    allthedeployedPVhasbeeninstalledwithinG20membercountries(Figure5).

    Figure

    5

    Growth

    in

    solar

    PV

    capacity

    2005

    10

    0

    5

    10

    15

    20

    25

    30

    35

    40

    45

    2005 2006 2007 2008 2009 2010

    GW

    RestofG20

    US

    Italy

    Japan

    Spain

    Germany

    Source:IEAanalysisbasedonIEAPVPS,EPIA,BNEF,andothercountryspecificsources.

    SummaryofG20policies

    Strong renewables targetsand supportpolicies that stimulateR&D, innovationand investment in

    renewable generation viaeconomic support andmarket accesspolicieshavedrivenmuchof the

    recentgrowthintherenewablesmarket.SeventeenoftheG20membersnowhavenationaltargets

    forrenewableelectricitygeneration.Thesetargetsareexpressedinvariouswayssomearetargets

    fortheproportionofrenewableenergyinthetotalenergymix,somespecifictotheelectricitysector

    andsometechnologyspecific.

    Since 2005, six additional G20 countries have adopted renewable energy targets. Many other

    countrieshaveextendedorupdated their targets, settingmoreambitiousand longer termgoals.

    TheUnitedStatesandCanadahavenofederaltargets,althoughtherearesometargetsattheState

    andProvincial/Territoriallevels.

    Currently, almost all G20 countries have in place measures aimed at catalysing investment in

    renewableelectricitygenerationvia financing,pricing, fiscal,publicbidding, andallprovide some

    formofR&Dpolicysupport.Overthelastfiveyearsmanycountrieshaverefinedtheirpolicies,such

    asfeedintariffsystems,toimprovetheirimpactondeploymentortomakethepoliciesmorecost

    effective. Several countries now have different mechanisms in place for different sectors or

    technologies.Onestrongrecenttrendistheintroductionofpubliccompetitivebiddingprocessesto

    auctionrenewableenergygeneration,asisthecaseinMexico,Brazil,ArgentinaandSouthAfrica.

    While renewable energy targets are generally supported by a suite of policies and programmes

    which encourage and facilitate investment, financial incentives alone are not sufficient, as other

    noneconomicbarriers(likegridaccessorcomplexadministrativeprocedures)canimpedeprogress

    andincrease

    investment

    costs.

    A

    comprehensive

    policy

    package

    is

    necessary

    to

    ensure

    that

    renewable energy technologies are deployed as cost effectively as possible. While the detailed

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    design of policies will be specific to a countrys own circumstances and policy environment,

    experience has demonstrated that a number of policy design criteria can be applied to enable

    efficiencyandcosteffectiverenewableenergydesign.Dependingonspecificcircumstances,these

    mayinclude:

    An overall strategic approach which puts renewables in the context of the overall nationalenergy

    policy

    goals,

    focussing

    on

    the

    technologies

    that

    can

    most

    easily

    meet

    policy

    needs

    in

    the

    shortandlongterm;

    Atransparentandstablerenewablespolicyenvironmentandsupportiveregulation,providingasuitableenvironmentforinvestment;

    Appropriatetariffsthatincentiviseinvestmentintherequiredtechnologies,butcanbeadjustedin light of technology progress and cost reductions, so as not to over reward investors and

    developers;

    Priorityaccessanddispatchforrenewablegeneratorstothegrid;

    Streamlinedadministrativeproceduresandasupportiveinstitutionalframework.

    Table 5belowprovides a summaryofG20 country renewable energypolicies, including targets,

    financial support schemes (feedin tariffs, tenders, taxpolicies, grants, green certificate schemes,

    tradablepermits),andotherrenewableenergysupportpolicies.Completecountrysubmissionscan

    befoundinthedocumentCompendiumofG20C3EWorkingGroupQuestionnaireSubmissions.

    Table5SummaryofG20countryrenewableelectricitypolicies

    Country Targets Financial support Other RE support policy

    Argentina

    Target: 8% share ofRenewable Energies inNational ElectricityConsumption (2016).

    National Programme ofHydro power tendered:

    Chihuidos I (637MW), CndorCliff (1140 MW), LaBarrancosa (600 MW)

    National Strategic WindPower Plan: futureimplementation

    Tender and tax policy: NationalPromotion Scheme for the use ofrenewable sources destined to theproduction of electrical energy.

    Financial Support: Fiduciary Fundcreation destined to the payment of a

    renewable electricity generation bonus.Tax benefits: Act N26.190

    Institutional creation: Secretary ofEnergy resolution N 712/2009 enablessupply contracts between Compaa

    Administradora del Mercado MayoristaElctrico S.A. (CAMMESA) andENARSA in the context of theGENREN Programme.

    Financial support to Hydroconstruction: Secretariat of EnergyResolution N 762/2009

    Law N 26.123: HydrogenResearch and developmentProject

    Law N 26.190: NationalDevelopment Scheme for the Useof Sources Renewable energy for

    Electricity ProductionLaw N 26.093: Regulation andPromotion Scheme for Productionand Sustainable Use of Biofuels

    PERMER: Energy poverty in ruralareas programme

    Australia

    Renewable Energy Target:20% electricity from renewable

    sources by 2020

    Renewable Energy certificates:Small-scale Renewable Energy

    Scheme (SRES) and Large-scaleRenewable Energy Target (LRET)

    Investment: Clean Energy FinanceCorporation (CEFC)

    Research grants: Clean TechnologyInnovation programme; AustralianSolar Institute

    Two for one grant funding basis:Renewable Energy Demonstrationprogramme

    Emerging Renewables funding andprogram delivery for the developmentof renewable energy

    Equity Investments: RenewableEnergy Venture Capital Fund

    Installation grants: RemoteIndigenous Energy

    R&D grants for solar PV andThermal:Australian Solar Institute

    (ARENA program)Infrastructure Funding:Connecting renewables FundResearch and demonstrationprogramme: The Solar Citiesprogramme

    Carbon Tax non-technologyspecific fiscal policy/ taxdeduction for the exploration ofgeothermal energy

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    Grants: Geothermal drillingprogramme; National Solar SchoolsProgram (NSSP); Low EmissionsTechnology Demonstration Fund

    Financial support: Solar FlagshipsProgramme-Financial support to large-scale demonstration of grid-connectedsolar plants

    Demonstration grants:Acre Solar

    Brazil

    Decennial Plan for EnergyExpansion (PDE 2019):

    Wind: 6.041 MW (expectedinstalled capacity by 2019,PDE 2019).

    Hydro: 116.699 MW(expected installed capacity by2019, PDE 2019)

    Biomass: 8 521 MW(expected installed capacity by2019, PDE 2019)

    Small Hydro: 6.966 MW

    (expected installed capacity by2019, PDE 2019)

    Tradable permits and cash grants:Program for the Promotion of

    Alternative Sources of Electric Energy(PROINFA).

    Auctions sale and purchase ofelectricity: Wind, Biomass, Hydro

    Framework policy: DecennialPlan for Energy Expansion (PDE2019)

    Solar PV: The National ElectricEnergy Agency (ANEEL) and theMinistry of Mines and Energy areaiming at reducing barriers todeployment and integrating solarphotovoltaic energy in the nationalenergy portfolio

    Canada

    Credit based targeting the biomasssector: Pulp and Paper GreenTransformation Program (PPGTP)

    Premium /kWh: ecoENERGY forRenewable Power

    Capital Grants: ecoENERGY forAboriginal and Northern Communities

    Tax Reduction: Income Tax Act, Class43.2 of Annex II

    China

    12th Five Year Plan: 30 GWof Biomass installed capacityby 2020; 16% of electricity

    from renewables by 2020(including large hydro).

    Feed-in tariff policies: Wind onshore,solar PV, biomass

    Tenders: large scale hydro, wind.

    Financial support: Golden Sunprogramme

    Grid access and premium:Renewable Energy Law

    Grants and premium: Biogas supportproject

    Tax policy: Preferential Tax Policiesfor Renewable Energy

    Offshore Wind expansionProgramme:Assessment anddeployment;

    Policy framework: InternationalScience and TechnologyCooperation Programme for Newand Renewable Energy

    Strategic planning: NationalClimate Change Program

    EuropeanUnion

    Directive 2009/28/EC- AllRenewables: 20% share ofrenewables in final energyconsumption and a minimum10% share of renewables inthe transport sector by 2020

    Directive 2003/87/ECestablishing a scheme forGHG emission allowancetrading within theCommunity: 21% GHGreduction as compared to2005 by 2020

    Framework policy withmandatory application:EU-Directive 2009/28/EC

    on the promotion of the use ofenergy from renewable sources

    France

    Wind: 11 500 MW by 2012and 25 000 MW 2020; Solar:1 100 MW by 2012 and5 400 MW by 2020; Hydro:

    Additional capacity of3 000 MW by 2020; Biomass:

    Additional 520 MW in 2012,and 2 300 MW in 2020;

    Offshore wind: 1 000 MW by2012 and 6 000 MW by 2020

    Feed-in tariff: onshore wind, smallscale solar PV, small scale biomass

    Calls for Tender: offshore wind, largescale solar PV, large scale biomass(priority given to cogeneration), marine,hydro (priority to storage hydropowerplants).

    Fiscal Policy and other financialincentives: Finance Law 2009

    Framework policy: Le Grenellede lenvironnement

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    Germany

    EU-Directive 2009/28/ECon the promotion of the useof energy from renewablesources: 20% share ofrenewables in final energyconsumption and a minimum10% share of renewables inthe transport sector by 2020.

    Energy Concept 2010 of theFederal Government:Targets for gross final energyconsumption from renewables:2020: 18%;2030: 30%;2040:45%;2050: 60%.

    Offshore wind power

    10 GW by 2020 and 20 to25 GW by 2030

    Targets for electricitygeneration by renewableenergies: 2020: at least 35%;2030: 50%; 2040: 65%; 2050:80%

    Feed-in tariff and priority access forsolar: Renewable Energy Sources Act(EEG), wind, biomass and geothermalelectricity

    Infrastructure investments: GridExpansion Acceleration Act (NABEG)

    Investments in R&D:Act establishing

    an Energy and Climate Fund 2011(EKFG-ndG)

    Policy framework: GridExpansion Acceleration Act(NABEG)

    Policy framework: Directive2009/31/EC on the geologicalstorage of carbon dioxide

    R&D investment: From 2011 to

    2014, EUR 3.4 billion will beinvested into the support of theresearch on energy. About 80% ofthe funds will be invested intoresearch on renewable energy(EUR 1.3 billion) and energyefficiency (EUR 1 2 billion)

    The research will be financedthrough federal budget and theGerman Energy and Climate Fund(ECF)

    India

    Targets: 10% electricity fromrenewable sources by 2012

    Electricity Act 2003: RenewablePurchase Obligation (RPO) mandatedby State Electricity RegulatoryCommission (SERC)

    2006 Tariff policy- Feed-in tariffsestablished by CERC and SERC:Wind, small hydro, solar PV andthermal

    Grants and feed-in premium:National Solar Mission

    Subsidies and RD&D: CentralFinancial assistance for Biogas plants

    Quota policy with green certificates:Renewable Energy Certificates systemMarch 2011

    Framework Policy: ElectricityPolicy 2005

    National Action Plan on ClimateChange (NAPCC) 2008: DynamicMinimum Renewables PurchaseStandard (DMRPS)andidentification of 8 core SolarMissions

    RD&D grants: Solar citiesdevelopment programme

    Indonesia

    Target: 15% of electricitydemand from renewablesources by 2025

    Guaranteed price: Purchase tariff forelectricity from geothermal

    Tax incentives: Geothermalexploration programme

    Framework policy: NationalEnergy Blueprint

    Italy

    National Renewable EnergyAction Plan (NREAP)/Legislative Decreeno.28/2011

    Directive 2009/28/EC,Electricity from RES: 26.39%by 2020, out of which 5.33%from wind, 3.03% from solar,11.21% from hydro,5.01%from biomass, 1.80%

    from geothermal

    Feed-in Tariff/ Conto Energetico I toIV: Solar PV, biomass, hydropower,geothermal, tidal and wave

    Feed-in tariff adjustment / Call fortenders: Decree 28 May 2011

    Feed-in tariff for small scalerenewable: All renewable electricity

    Tradable certificates: Provisions forthe Green energy certificate system

    National electric systemresearch: RD&D

    Japan

    General target: 10% priorityenergy supply from renewablesources by 2020

    Feed-in tariff: Solar PV

    Grants: Residential Solar PVprogramme

    Renewable Portfolio StandardSystem: Electricity from renewablesources

    Framework policy:Comprehensive review ofJapanese energy policy

    Act on purchase of RenewableEnergy Sourced ElectricityUtilities: Obligation to Purchasefor utilities the electricity fromSolar PV, wind power, hydraulicpower, geothermal and biomass

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    Mexico

    National Energy strategy:35% of total power capacitycoming from cleantechnologies by 2024

    Special Program forRenewable Energy 2009:7.6% of total capacity coming

    from renewable technologiesby 2012

    Mandate and subsidies: Law for thedevelopment of renewable energy andenergy transition financing.

    Targets and framework policy:2008 Renewable Energy Law(LAERFTE)

    Framework policy: NationalEnergy Strategy 2010

    Renewable energy strategydesign: Special Program for

    Renewable Energy 2009

    Republicof Korea

    Korea 1st

    National EnergyMaster Plan 2008-30: Energyintensity will be improved by11.3% by 2012 and to 46.7%by 2030

    3rd

    National RenewableEnergy Plan: 11.0% ofrenewable energy share intotal primary energy supply by2030, including 4 155 ktoefrom wind; 1 364 ktoe fromsolar PV; 1 447 ktoe fromhydro; 1 357 ktoe from

    biomass; 1 261 ktoe fromgeothermal; 1 540 ktoe frommarine power.

    Road-map for off-shore windpower:2.5GW by 2019

    Investment and grants: 3rd NationalRenewable Energy Plan.

    Feed-in tariff, subsidies, certificationscheme:Act on the promotion of thedevelopment use and diffusion of newand renewable energy (enforced on

    April, 2010).

    Demonstration investment: Road-map for off-shore wind power.

    Framework policy: Korea 1stNational Energy Plan 2008-2020.

    Portfolio Standard by 2012: Acton the promotion of thedevelopment, use and deploymentof new and renewable energy.

    Russia

    Regulation # 1 of the RFgovernment dated 8 January2009: Target 1.5 % ofelectricity generation fromRES in 2010; 2.5 % by 2015and 4.5% by 2020

    Federal subsidies Framework Policy:Federal Law "On Power Industry" (as of26 March 2003 No.35-FZ (35-)

    Mandate and Financial incentives:State Policy guidelines for promotingrenewable energy in the power sector

    Eligibility criteria for subsidiesallocation: The Resolution of theGovernment of the RF # 850 as of20 October, 2010.

    Framework policy: TheResolution of the RF Government# 1715- as of November 13, 2009

    Infrastructure development: TheResolution of the RF Government# 823 On Plans and Programs ofProspective Electric PowerIndustry Development

    Monitoring system: Order # 607of the Ministry of Energy of RF as

    of 17 December 2010

    SaudiArabia

    King Abdullah City for Atomic &Renewable Energy (KACARE):Framework policy and researchcentre on solar, wind, biomass andgeothermal energies.

    CDM Projects for solar, wind,biomass and geothermal.

    SouthAfrica

    Integrated resource plan forelectricity: 13% of totalelectricity demand fromrenewables by 2020, of which4 759 MW or 12.7% of totalcapacity from hydro; 9 200

    MW or 10.30% of totalcapacity from wind; 1 200 MWor 1.3% of total capacity fromCSP and 8 400 MW or 9.4% oftotal capacity from PV.

    Feed-in tariff: Biomass, hydro, solarPV and thermal, wind

    Tenders / public bidding process: Allrenewable energy projects

    Framework policy: White paperon renewable energy

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    Spain

    Directive 2009/28/EC: 20.8%of renewable energy share ingross final energyconsumption

    Renewable Energy Plan2011-20 (final approve stillpending); 40% of electricity

    generated from renewable, ofwhich 35 000 MW of windonshore, 750 MW of windoffshore, 7 250 MW of solarPV, 4 800 MW of solarthermal, 13 861 MW of hydropower, 1 950 MW of biomass,50 MW of geothermal and100 MW of marine power.

    Research grants: The National Planfor Scientific Research, Developmentand Technological Innovation (R&D&I)

    FIT for all renewable electricity:Royal Decree 661/2007.

    Pre-registration obligation for FITentitlement: Royal Decree Act 6/2009

    Royal Decree 1614/2010 on electricalenergy from wind and thermalelectric technologies: Limited hoursper year eligible to be supported by afeed in tariff

    FIT for solar PV: Royal Decree1565/2010 on new tariff regulation forthe production of photovoltaic electricalenergy

    Net metering: distributed generation

    ICO Financing line: Low interest loans

    Royal Decree 1028/2007:authorisation administrative procedurefor offshore wind plants

    Renewable Energy Plan 2011-20(still to be approved by SpanishGovernment)

    Spanish Strategy on ClimateChange and Clean Energy 2007-2012-2020: Measures willencourage the development of

    biomass, thermoelectric andphotovoltaic solar, specificallyencouraging small PV facilities(less than 5 kW)

    Promotion of competitiveness:Sustainable Economy Act (Law2/2011)

    Pre-registration guidelines forFIT entitlement: Royal Decree

    Act 6/2009

    Permit application procedures:Royal Decree 1028/2007 on theauthorisation administrativeprocedure for offshore wind plants

    TurkeyRenewable Energy Law2010: 30% electricity fromrenewable sources by 2023

    Renewable Energy Law 2010: Feed-in tariff (wind, solar, biomass,geothermal) and bonus payments

    Framework policy: Law ongeothermal resources and naturalmineral water;Strategic Plan 2010

    UAE

    Target: 7% renewable energygeneration capacity by 2020

    Feasibility studies / Frameworkpolicy: Dubai Integrated EnergyStrategy 2030

    Masdar demonstration project

    UnitedKingdom

    Directive 2009/28/EC/ 2011Renewables Roadmap: 15%of energy consumption fromrenewable sources by 2020.

    Feed-in tariff Law: Wind, solar PV,Hydro, bioenergy

    Renewable Obligation Policy:Mandate and Quota system

    Framework policy: RenewablesRoadmap

    Framework Policy: Energy Act;Climate change and sustainableenergy Act

    UnitedStates

    Although there is not a Federal

    target, 24 of the 50 US stateshave Renewable PortfolioStandards in place

    Tax policy: Examples include

    Production Tax Credits; Investment TaxCredits; Residential Renewable EnergyTax Credit

    Financial incentives: Examplesinclude Sustainable Energy Resourcesfor Consumers (SERC) Grants; Stateand Tribal Energy Programs; SunShotInitiative ($1 a Watt Initiative); RapidDeployment of Renewable Energy andElectric Power Transmission Projects;Renewable Energy ProductionIncentive (REPI)

    Grants: Renewable EnergyDeployment Grants

    Other policy support for renewable

    energy deployment includes codesand standards, education, training,and workforce development atDOE Programmes for Solar, Wind,Water Power, Geothermal, andBiomass. This includes activitiessuch as the Federal Wind SittingInformation Center, Solar AmericaShowcases, Woody BiomassUtilization Initiative, Center forGeothermal Technology Transfer,State Climate and EnergyPartnership Program, and others

    Nuclearpower

    Deploymentofnewnuclearcapacityhasbeenlargelyflatoverthelastnumberofyearsworldwide

    operational installednuclearcapacity increased from370GWeattheendof2005 to375GWeby

    theendof2010.Worldwideelectricitygenerationfromnuclearpowerplantshasalsoremainedflat

    ataround2600TWh.Therewas,however,asignificantnumberofconstructionstartsin2010.Given

    the nuclear policy reviews following the recent major incident at the Fukushima Daiichi nuclear

    power plant in Japan, it is however uncertain whether the previously planned rate and scale of

    expansionwillbemaintained.

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    Figure6Globalnuclearcapacityandestimated2015capacity

    0

    50

    100

    150

    200

    250

    300

    350

    400

    450

    2005 2010 2015

    GW

    Restofthe worldUnitedStatesRussia

    Japan

    France

    China

    Source:IAEAPRISdatabase,2011.

    Attheendof2010,therewere65plantsunderconstruction,ofwhich27were inChina,although

    some have been in construction for a number of years. It is notable that the number of new

    constructionstartsin2010wasthehighestsincethe1980s.

    Figure7Nuclearcapacityunderconstructiongloballyandnumberofreactors

    Source:IAEAPRISdatabase,2011andcountrysubmissions.

    SummaryofG20policies

    Following the Fukushima accident, there was a general review within countries of the safety of

    existingplantsandareconsiderationofnewbuildprogrammes.Asaresult,Germanyannouncedan

    acceleratedphaseoutofnuclearby2022,Switzerlandannouncedaphaseoutbutwithoutdefined

    timelines to date and Italy voted in a referendum not to reintroduce nuclear. Elsewhere, many

    countriescommitted toacomprehensivereviewofexistingplants,eitheratanational levelor, in

    some

    cases,

    such

    as

    Europe

    as

    a

    co

    ordinated

    and

    harmonised

    process.

    The

    results

    of

    this

    latter

    processareexpected towardstheendof2011and involvetestingofthecapabilityofthenuclear

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    powerplantstowithstandexternaleventsandprolongedlossofcoolingfunctions,inadditiontothe

    adequacyoftheiraccidentmanagement.

    Howeverinothercountriestherewasareconfirmationofstated intentionsto introducenewbuild

    inRussia,theCzechRepublic,TurkeyandtheUnitedArabEmirates,whileintheUnitedKingdomand

    theUnitedStates,thevalueofnuclearaspartofadiverseenergymixwasrestated.Itisclearthat,

    overall,there

    will

    be

    aslow

    down

    in

    nuclear

    build

    rates

    and

    it

    is

    uncertain

    whether

    growth

    targets

    willbeachievedintheexpectedtimeframe.Publicconfidencehasbeensignificantlyaffectedandre

    establishing trustwillbe a long and challenging task.However it is not clear how extensive this

    periodofreconsiderationwillbe.

    Table6providesasummaryofG20nuclearenergytargets,policyframeworksandcurrentprogress.

    Complete country submissions canbe found in thedocumentCompendiumofG20C3EWorking

    GroupQuestionnaireSubmissions.

    Table6SummaryofG20countriesnuclearpolicies

    CountryTargets included innational legislation

    Policy frameworks and nationalpriorities

    Current progress

    Argentina

    Construction of a 4th nuclearpower plant, productive lifeextension of Embalse powerplant, completion of Atucha IInuclear power plant,construction of reactorCAREM.

    Law N 26.566Declares of national interestEmbalse power plant life extensionas well as CAREM project and theconstruction of the fourth NuclearPower Plant.

    Additionally, the Law gives powersto expropriate property for theconstruction of the IV NuclearPower Plant.

    Atucha II is already testing itsprimary circuits. Contracts for lifeextension to Embalse have recentlybeen signed.

    Australia

    Environment Protection andBiodiversity Conservation Act 1999prohibits nuclear construction forpower generation.

    Brazil

    3 412 MW by 2019 Resolution No.3 of the BrazilianNational Energy Policy Council(CNPE), published on 25 June2007.

    The increase of 70% (from2 007MW to 3 412 MW) in theinstalled capacity of nuclear powerplants in Brazil shall be achievedwith the entry into operation ofNuclear Power Plant Angra III,scheduled for June 2015.

    Canada

    Nuclear Energy Act, NuclearSafety and Control Act, NuclearFuel Waste Act, Nuclear Liability

    Act

    One new reactor under officialconsideration

    EuropeanCommission

    No targets at the EU level.

    Nuclear Illustrative

    Programmes indicates non-binding production targetsand required investments.

    Legislation based on the EuratomTreaty. Focusing mainly on safetyand radiological protection

    including: the Directiveestablishing a Communityframework for the nuclear safety ofnuclear installations 2009 andDirective on the management ofspent fuel and radioactive waste2011.

    The Nuclear Safety Directive hasbeen transposed into nationallegislation in most of the Member

    States.The Waste Directive must betransposed before 23 August 2013and Member States have to submittheir first national programmes in2015.

    FrancePlans to construct two newEPR power plants

    One EPR is under construction(Flamanville), the other one (Penly)is in the authorisation process

    Germany

    Planned phase-out of nuclearpower use for commercialpower generation by 2022 atthe latest.

    Amendment to the Atomic EnergyAct July 2011 provided for thephase out of nuclear power to bereplaced with renewable power.

    Eight (of 17) nuclear power plantswere shut down in March 2011 orrested disconnected from the gridfor a moratorium period. With theamendment to the Atomic Energy

    Act entered into force on 6 August2011, they will not go back on-line.

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    India

    The eleventh 5 year plan(200712) included theaddition of 3.8 GW of nuclearcapacity. National PowerCorporation of India Ltdforesees 11 GW added underthe 12th Plan. Report of theExpert Committee of thePlanning Commission onIntegrated Energy Policysees a total installed capacityof 29 GW by 2020 under anoptimistic scenario.

    11th 5 year plan (200712)produced by the PlanningCommission of the Government ofIndia.

    Report of the Planning commissionExpert Committee on IntegratedEnergy Policy August 2006.

    The Kaiga 4 PHWR reactor wasgrid connected on 19/01/2011 with202 MW gross capacity. A furthersix reactors are currently underconstruction in India with a totalcapacity of 3.76 GW net capacity.

    Italy

    Japan

    The Strategic Energy Plan forJapan is now under radicalreview due to the Great EastJapan Earthquake and

    Accident at Fukushima Dai-ichi Nuclear Power Station inMarch 2011.

    Korea

    2030: 27.8% (nuclear energyshare in total primary energysupply)

    2030: 59% (Nuclear energyshare in power generation).

    Korea 1st National Energy Plan2008-2020. Establishes thenational plan for managing energysupply and demand in the long-term including nuclear energy.

    This plan includes policies on theconstruction of additional nuclearpower plants, the nationalmanagement policy on spent fuels,nuclear safety and publicacceptance.

    2010: 12.2% (nuclear energy sharein total primary energy supply)

    2010: 31.1% (Nuclear energy sharein power generation)

    Mexico

    35% of total power capacitycoming from renewable, largehydro and nuclear by 2024.

    National Energy Strategy Both units of Laguna Verde plantoperating at 800 MWe per unit, inincrease of 20% from previouslevels.

    Russia50-53 GW by 2020.Increasing the share ofnuclear by 2030 to between25% to 30%.

    The regulation of the RussianFederation Government (2008)ensures the growth of nuclearpower to 2020.

    Under Realisation

    Saudi Arabia

    Established the KingAbdullah City for Atomic &Renewable Energy(KACARE) to develop,disseminate and deploytechnologies;

    Nuclear plan under consideration

    Spain

    United ArabEmirates

    5.6 GW of nuclear power tobe installed between 2017and 2020 to meet 25% of

    electrical demand.

    USD 20 billion contract awarded toKEPCO, total project valueestimated at USD 40 billion.

    UnitedKingdom

    No specific targets. NationalPolicy Statements identify aneed of 18 GW of non-renewable capacity by 2025.

    The nuclear National PolicyStatements (NPS) identified eightsites that could host a nuclearpower station by 2025.

    Three energy consortia haveannounced plans to develop at fiveof the eight sites identified in theNPS. The first reactor is expectedonline by 2018/2019.

    United States

    Energy Policy Act 2005 providesfor $4.3 billion in tax breaks fornuclear power; Early Site Permitsand Combined Construction andOperating License streamlinesnuclear power licensing; Price-

    Anderson Act indemnifies industryagainst incidents overUSD 10 billion.

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    Renewableheatingandcooling

    The use of renewable energy systems for both domestic and industrial heating and cooling

    applicationshasreceivedrelativelylittleattentioncomparedwithrenewableelectricityortransport

    biofuels. Renewable heating can principally be provided by three technologies biomass, solar

    heatingand

    geothermal.

    In

    regions

    where

    cooling

    has

    agreater

    energy

    demand

    than

    heating,

    especiallyduringpeaksummerperiods,renewableenergycoolingsystemsshowgoodpotentialfor

    furtherdevelopment. Space cooling can, forexamplebe supplied through theuseofheatdriven

    adsorptionchillersasanalternativetoelectricallydrivencompressionchillers.Thissectionfocuses

    predominantlyonrenewableheatprogressascountrysubmissionsfocusedmainlyonheatpolicies.

    Overall the renewableheat sector isexpanding,with growthof approximately6% from200509.

    Biomassmakesthe largestcontribution,particularlytomeetheatingandcookingneedswithinthe

    traditionalbiomasssector,wherebiomassisoftenusedinefficientlyandcauseshumanhealthand

    indoor pollution challenges.Given lack of data, distinguishing between traditional and modern

    efficientuseofbiomassforindustryandcommerceisdifficult.

    Therehas

    been

    growth

    in

    the

    geothermal

    heating

    sector

    in

    countries

    endowed

    with

    asignificant

    geothermal resource. The strongest growth has been experience in the solar heating sector,

    particularlyasaresultofrapidgrowthinChina,wheredeploymenthasdoubledinthelastfiveyears

    (Figure8).

    Figure8Trendsinglobalcapacityofsolarheatingsystems,200509

    0

    20

    40

    60

    80

    100

    120

    140

    160

    180

    200

    2005 2006 2007 2008 2009

    GWth

    China

    EU27

    RestofG20RestofWorld

    Source:IEAanalysisbasedondatafromtheIEASolarHeatingandCoolingImplementingAgreement.

    SummaryofG20policies

    Stimulatingamarketforheatrequiresaddressingchallengesthataredifferentandsometimesmore

    difficult to overcome than in the electricity and transport sectors. A number of key barriers to

    renewableheatdeploymentmaydeterdeployment,someassociatedwiththeoverallcharacteristics

    of the heat sector and some specific to the introduction of renewable options. Table7 below

    outlinesanumberoftheseheat,andrenewableheatspecificbarriers.

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    Table7Barrierstoheatandrenewableheatdeployment

    Barriers to heat (general) Barriers to renewable heat

    Fragmented market: millions of owners/developers,district heating operators and industries

    Renewable heat production should be close to heat sink(limited transportability, no grid for surplus, limited storage)

    Gatekeepers between supply and demand (installers,

    architects)

    Heat demand can be variable over time (space heating is

    seasonal)Dynamics of heat market: space heating demanddeclining, power for heat in new buildings

    Heat is a heterogeneous commodity: differing temperaturesin both demand and renewable heat supply

    Split incentive between building owner and consumer/tenant

    Basedontheanalysisofsubmittedcountryinformation,summarisedinTable8:

    Twelveof the countrieshave targets for renewableheat, eightofwhichhave targets covering a

    rangeoftechnologies,andafurtherfourwithtargetsspecifictosolarheatingtechnologies;

    Elevencountriesalsohaveactivemeasurestopromoterenewableheat,including10countrieswith

    marketincentives

    to

    encourage

    investment

    often

    via

    capital

    grants

    and

    rebates.

    The

    UnitedKingdom isthefirstcountryto implementaspecificfeedintariffsystemtotheheatsector.

    Spain has also planned to establish a specific incentive schemes for renewable heat production

    throughEnergyServiceCompanies.Againthelargestemphasisisonsolarthermalsystems.

    Asnotedabove, inpast,renewableheatpolicieshavenotreceivedasmuchattentionasthosefor

    theelectricityandtransportsectors.TheG20countrypolicyoverviewconfirmsthatthisisstillthe

    case,sincefewercountrieshavetargetsandpoliciesinplacethanfortheotherrenewablesectors.

    Theanalysis,however,alsoshowsgrowingrecognitionthatrenewableheattechnologiescanplayan

    important role inmeetingheatingneeds,with cost effective and technicallyproven technologies

    appliedincountrieswhereresourceandmarketconditionsarefavourable.

    Table8below

    provides

    an

    overview

    of

    renewable

    heat

    targets,

    financial

    support,

    and

    other

    policies

    inplaceacrossG20countries.Whererenewablecoolingpoliciesweresubmittedbycountries,these

    were included in the table. Complete country submissions can be found in the document

    CompendiumofG20C3EWorkingGroupQuestionnaireSubmissions.

    Table8SummaryofG20countryrenewableheatpolicies

    Country Targets Financial support Other RE support policy

    Argentina

    Australia

    Grants: The Renewable EnergyBonus Scheme Solar HotWater Rebate (REBS)

    Grants for solar hot water

    systems: National SolarSchools Program (NSSP)

    Brazil

    Solar thermal target: 15 million minstalled in 2015, from about7 million m in 2011

    Financial incentives: TheNational Plan for EnergyEfficiency (PNEf) Will bepublished soon, as well as acorrelated Action Plan

    Canada

    Credit based supportprogramme: Pulp and PaperGreen Transformation Program(PPGTP)

    Tax Reduction: Income TaxAct, Class 43.2 of Annex II

    Capital grants: ecoENERGY for

    Renewable Heat; ecoENERGYRetrofit Homes

    Efficiency Standard: EnergyEfficiency Regulations for Groundor Water-Source Heat Pumps

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    China12

    thFive year Plan Solar thermal:

    300 million m2 by 2020Renewable energy Law:Guarantee access to heatpipelines and financial support

    European

    Union

    Directive 2009/28/EC

    Directive 2003/87/EC

    Target 21% GHG reduction as

    compared to 2005, establishing ascheme for GHG emissionallowance trading within theCommunity

    France

    National Renewable EnergyAction Plan for France :

    General: 23% of renewable energyin the gross final energyconsumption in 2020

    Solar thermal: 185 ktoe by 2012,927 ktoe by 2020

    Biomass: 10 970 ktoe by 2012,16 455 ktoe by 2020

    Geothermal: Excluding geothermal

    energy from heat pumps: 195 ktoeby 2012, 500 ktoe by 2020

    Renewable energy from heatpumps (geothermal oraerothermal): 1 300 ktoe in 2012,1 850 ktoe in 2020

    Renewable heat from districtheating : 775 ktoe in 2012,3 200 ktoe in 2020

    Grants: Fond Chaleur

    Tax Policy and other financialincentives: Finance Law 2009

    Framework policy: Le Grenelle delenvironnement

    Germany

    EU-Directive 2009/28/EC

    on the promotion of the use ofenergy from renewable sources:14% by 2020

    Energy Concept of the FederalGovernment 2010

    Obligation of use: RenewableEnergies Heat Act 2009

    Market Incentive Program(MAP) Investment costsubsidies and low-interest loans

    IndiaSolar thermal: 15 million m2 by2017 / 20 million m2 by 2022

    Indonesia No regulation

    Italy

    NREAP- Legislative Decreeno.28/2011:

    Renewable heat in total finalenergy consumption: 17.09%, outof which 2.59% from solar, 9.27%from biomass, 0.49% fromgeothermal, 4.74% from heatpumps

    JapanGrants: Renewable Heatprogramme Framework

    Framework policy:Comprehensive review of

    Japanese energy policy

    MexicoNational Solar Thermal Plan(PROCALSOL): 1.8 million squaremeters of solar hea