Cost-effectiveness of renewable electricity policies

We analyze policies to promote renewable sources of electricity. A portfolio standard (RPS) raises electricity prices and primarily reduces gas-fired generation. A knee of the cost curve exists between 15% and 20% goals for 2020 in our central case, and higher natural gas prices lower the cost of greater reliance on renewables. A renewable energy production tax credit lowers electricity price at the expense of taxpayers, which limits its effectiveness in reducing carbon emissions, and it is less cost-effective at increasing renewables than a portfolio standard. Neither policy is as cost-effective as a cap-and-trade policy for achieving carbon emission reductions.     

Renewable energy and sustainable development in Turkey

Achieving solutions to environmental problems that we face today requires long-term potential actions for sustainable development. In this regard, renewable energy resources appear to be the one of the most efficient and effective solutions. So clean, domestic and renewable energy is commonly accepted as the key for future life for Turkey. Turkey's geographical location has several advantages for extensive use of most of these renewable energy sources. Because of this and the fact that it has limited fossil fuel resources, a gradual shift from fossil fuels to renewables seems to be serious and the sole alternative for Turkey. This article presents a review of the present energy situation and sustainability, technical and economical potential of renewable energy sources and future policies for the energy sector in Turkey. Also, potential solutions to current environmental problems are identified along with renewable energy technologies. Throughout the paper several problems relating to renewable energy sources, environment and sustainable development are discussed from both current and future perspectives. The renewable energy potential of the country and their present use are evaluated here based on the available data. The present study shows that there is an important potential for renewables in Turkey.     

Analysis of renewable energy development to power generation in the United States

Renewable energy resources have historically played a small role for electricity generation in the US. However, concerns such as security of energy supply, limitations and price fluctuations of fossil fuels, and threats of climate changes have encouraged US policy makers to think and debate about diversification strategy in the energy supply and promotion of renewables. The current paper discusses the role of renewable portfolio in the US energy action plan during 2010–2030. A system dynamics model is constructed to evaluate different costs of renewable energy utilization by 2030. Results show that while renewables will create a market with near 10 billion $ worth (in the costs level) in 2030, the total value of renewable energy promotion and utilization in the US will be more than 170 billion $(in the costs level) during 2010–2030.     

Overview of renewable energy sources in the Republic of the Sudan

Sudan is an agricultural country with fertile land, plenty of water resources, livestock, forestry resources and agricultural residues. An overview of the energy situation in Sudan is introduced with reference to the end uses and regional distribution. Energy sources are divided into two main types: conventional energy (biomass, petroleum products and electricity) and non-conventional energy (solar, wind, hydro, etc.). Sudan possesses a relatively high abundance of solar radiation, moderate wind speeds, hydro and biomass energy resources. Application of new and renewable sources of energy available in Sudan is now a major issue in strategic planning for alternatives to fossil fuels to provide part of local energy demand. Sudan is an important case study in the context of renewable energy. It has a long history of meeting its energy needs through renewables. Sudan’s renewables portfolio is broad and diverse, due in part to the country’s wide range of climates and landscapes. Like many of the African leaders in renewable energy utilisation, Sudan has a well-defined commitment to continue research, development and implementation of new technologies. Sustainable low-carbon energy scenarios for the new century emphasise the untapped potential of renewable resources. Rural areas of Sudan can benefit from this transition. The increased availability of reliable and efficient energy services stimulates new development alternatives. Renewable environmentally friendly energy must be encouraged, promoted, implemented and demonstrated, for use in the Republic of the Sudan.     

Are government policies effective in promoting deployment of renewable electricity resources?

Using a panel data over 50 US states and years 1991–2007, this paper uses a state fixed-effects model with state-specific time-trends to estimate the effects of state policies on the penetration of various emerging renewable electricity sources, including wind, biomass, geothermal, and solar photovoltaic. Renewable portfolio standards with either capacity or sales requirements have a significant impact on the penetration of all types of renewables—however, this impact is variable depending on the type of renewable source: it is negative for combined renewables, wind, and biomass; and positive for geothermal and solar. Further, clean energy funds and required green power options mostly result in increasing the penetration of all types of renewables. On the other hand, voluntary renewable portfolio standards as well as state green power purchasing programs are found to be ineffective in increasing the penetration of any type of renewable source. Finally, economic variables, such as electricity price, natural gas price, and per capita GDP as well as structural variables, such as league of conservation voters rating and the share of coal-generated electricity are found to be generally insignificant, suggesting the crucial role of policy in increasing the penetration of renewables.     

A market for renewable energy credits in the Indian power sector

Electricity generation from renewable energy sources in India has been promoted through a host of fiscal policies and preferential tariff for electricity produced from the same. The fiscal policies include tax incentives and purchase of electricity generated through renewable energy sources. The enactment of the Electricity Act 2003 (the Act) has lent further support to renewable energy by stipulating purchase of a certain percentage of the power procurement by distribution utilities from renewable energy sources. The renewable portfolio obligation as well as the feed-in tariff for power procurement has been specified by a number of State Electricity Regulatory Commissions (SERCs) for the respective state under their jurisdiction. A feed-in tariff determined through a cost-plus approach under a rate of return framework lacks incentive for cost minimisation and does not encourage optimal utilisation of renewable energy resources in the country. Such regulatory provisions differ across states.The prevalent practice of fixing a renewable portfolio obligation along with cost-based feed-in tariffs disregards economic efficiency. The paper proposes nationally tradable renewable energy credits scheme for achieving the targets set by the respective SERCs as renewable portfolio obligation. This would reduce the cost of compliance to a renewable portfolio obligation, and would encourage efficient resource utilisation and investment in appropriate technologies. The paper highlights its advantages and implementation issues. This paper discusses regulatory developments for promotion of renewable energy in various Indian states. The paper also identifies a number of issues related to regulations concerning renewable portfolio obligation.     

Motivations driving renewable energy in European countries: A panel data approach

Despite the increasing amount of literature available on renewable energy, the empirical analysis about drivers promoting renewables remains scarce. We have analyzed those drivers for European Countries. Over an extended period of time (1990–2006) we used panel data techniques, namely the fixed effects vector decomposition. The results suggest that both the lobby of the traditional energy sources (oil, coal, and natural gas) and CO₂ emissions restrain renewable deployment. The objective of reducing energy dependency appears to stimulate renewable energy use. Our results robustly support the EU decision to create a directive promoting the use of renewable sources (Directive 2001/77/EC). We also offer suggestions with regards to the design of appropriate policies towards renewable energy deployment.     

Are renewables an alternative to nuclear power? An analysis of the Austria/Slovakia discussions

Politicians and publics throughout Europe have different views on nuclear power and renewable energy sources. Countries such as Austria and Denmark which have no nuclear power are rather hostile towards this energy source, and at the same time view renewable energy sources as one of the solutions in curbing CO₂ emissions. Other countries, such as Slovakia, which is less endowed in terms of renewables, view nuclear power as a electricity-generating source that can reduce dependency on fossil fuels and thereby CO₂. This paper focuses on the confrontation between two nations with different sets of electricity policies, namely Austria and Slovakia. Of particular interest for this study include an evaluation of Austria's anti-nuclear policy towards its Slovakian neighbour and an analysis of Austria's attempts to promote renewable energy sources in both Austria and Slovakia. In conclusion, a number of recommendations are put forward with regard to how Austria's future energy dialogue with Slovakia should look like and what types of projects Austria should consider funding.     

Renewable energy in India: Current status and future potentials

Renewable energy sources and technologies have potential to provide solutions to the long-standing energy problems being faced by the developing countries. The renewable energy sources like wind energy, solar energy, geothermal energy, ocean energy, biomass energy and fuel cell technology can be used to overcome energy shortage in India. To meet the energy requirement for such a fast growing economy, India will require an assured supply of 3–4 times more energy than the total energy consumed today. The renewable energy is one of the options to meet this requirement. Today, renewable account for about 33% of India's primary energy consumptions. India is increasingly adopting responsible renewable energy techniques and taking positive steps towards carbon emissions, cleaning the air and ensuring a more sustainable future. In India, from the last two and half decades there has been a vigorous pursuit of activities relating to research, development, demonstration, production and application of a variety of renewable energy technologies for use in different sectors. In this paper, efforts have been made to summarize the availability, current status, major achievements and future potentials of renewable energy options in India. This paper also assesses specific policy interventions for overcoming the barriers and enhancing deployment of renewables for the future.     

Governmental policy and prospect in electricity production from renewables in Lithuania

In Lithuania, the generation of electricity is based on the nuclear energy and on the fossil fuels. After the decommissioning of Ignalina nuclear power plant in 2009, the Lithuanian Power Plant and other thermal plants will become the major sources of electricity. Consequently, the Lithuanian power sector must focus on the implementation of renewable energy projects, penetration of new technologies and on consideration of the future opportunities for renewables, and Government policy for promoting this kind of energy. Production of electricity from renewable energy is based on hydro, biomass and wind energy resources in Lithuania. Due to the typical climatic condition in Lithuania the solar photovoltaics and geothermal energy are not used for power sector. Moreover, the further development of hydropower plants is limited by environmental restrictions, therefore priority is given to wind energy development and installation of new biomass power plants. According to the requirements set out in the Directive 2001/77/EC of the European Parliament and of the Council of 27 September 2001 on the promotion of electricity produced from renewable energy sources in the internal electricity market [Official Journal L283, 33–40, 27 October 2001], 7% of gross consumption of electricity will be generated from renewable energy by 2010 in Lithuania. The aim of this paper is to show the estimation of the maximum renewable power penetration in the Lithuanian electricity sector and possible environmental impact.     

Trends in renewable energy strategy development and the role of CDM in Bangladesh

This article analyses and discusses trends in renewable energy strategy development in Bangladesh and the prospective role of the clean development mechanism (CDM) under the Kyoto Protocol. Use of renewables for electricity generation results in less greenhouse gas emissions compared with fossil fuel energy systems and often offers additional synergistic benefits. Despite the large potential for development of renewable energy sources in Bangladesh, currently their contribution to electricity generation remains insignificant. Existing policies and programs on renewable energy in Bangladesh are reviewed in relation to the specific requirements needed for CDM. A number of barriers are identified that impede the implementation of the CDM mechanism. Overall, it is recommended that more appropriate energy strategies, including a new national renewable energy strategy, need to be formulated and implemented and more suitable institutional settings need to be provided to promote energy sustainability for Bangladesh. Also, the suggestion is made that incorporation of objectives for CDM promotion in the new national renewable energy strategy to tie in with Bangladesh's CDM strategy should assist in advancement of renewables.     

Financing investments in renewable energy : the impacts of policy design

The costs of electric power projects utilizing renewable energy technologies (RETs) are highly sensitive to financing terms. Consequently, as the electricity industry is restructured and new renewables policies are created, it is important for policymakers to consider the impacts of renewables policy design on RET financing. This paper reviews the power plant financing process for renewable energy projects, estimates the impact of financing terms on levelized energy costs, and provides insights to policymakers on the important nexus between renewables policy design and financing. We review five case studies of renewable energy policies, and find that one of the key reasons that RET policies are not more effective is that project development and financing processes are frequently ignored or misunderstood when designing and implementing renewable energy policies. The case studies specifically show that policies that do not provide long-term stability or that have negative secondary impacts on investment decisions will increase financing costs, sometimes dramatically reducing the effectiveness of the program. Within U.S. electricity restructuring proceedings, new renewable energy policies are being created, and restructuring itself is changing the way RETs are financed. As these new policies are created and implemented, it is essential that policymakers acknowledge the financing difficulties faced by renewables developers and pay special attention to the impacts of renewables policy design on financing. As shown in this paper, a renewables policy that is carefully designed can reduce renewable energy costs dramatically by providing revenue certainty that will, in turn, reduce financing risk premiums.     

Solar energy in India: Strategies, policies, perspectives and future potential

Renewable energy sources and technologies have potential to provide solutions to the longstanding energy problems being faced by the developing countries like India. Solar energy can be an important part of India's plan not only to add new capacity but also to increase energy security, address environmental concerns, and lead the massive market for renewable energy. Solar thermal electricity (STE) also known as concentrating solar power (CSP) are emerging renewable energy technologies and can be developed as future potential option for electricity generation in India. In this paper, efforts have been made to summarize the availability, current status, strategies, perspectives, promotion policies, major achievements and future potential of solar energy options in India.     

The regional electricity generation mix in Scotland: A portfolio selection approach incorporating marine technologies

Standalone levelised cost assessments of electricity supply options miss an important contribution that renewable and non-fossil fuel technologies can make to the electricity portfolio: that of reducing the variability of electricity costs, and their potentially damaging impact upon economic activity. Portfolio theory applications to the electricity generation mix have shown that renewable technologies, their costs being largely uncorrelated with non-renewable technologies, can offer such benefits. We look at the existing Scottish generation mix and examine drivers of changes out to 2020. We assess recent scenarios for the Scottish generation mix in 2020 against mean-variance efficient portfolios of electricity-generating technologies. Each of the scenarios studied implies a portfolio cost of electricity that is between 22% and 38% higher than the portfolio cost of electricity in 2007. These scenarios prove to be mean-variance “inefficient” in the sense that, for example, lower variance portfolios can be obtained without increasing portfolio costs, typically by expanding the share of renewables. As part of extensive sensitivity analysis, we find that Wave and Tidal technologies can contribute to lower risk electricity portfolios, while not increasing portfolio cost.     

Additional renewable energy growth through small-scale community orientated energy policies

This paper summarises the energy policies that the UK Government has enacted in order to achieve its renewable targets by 2010. Current policies are designed primarily to support large-scale renewable projects through Renewable Obligation Certificates, Levy Exemption Certificates and capital grant schemes. Non-profit domestic and non-profit community renewable projects are also eligible for grant support. First-hand experience of privately owned renewable projects indicate that existing renewable policy is insufficient in its support of both small-scale and community-based profit oriented renewable energy (RE) schemes. Primary and secondary survey information suggests that people living in regions where RE will be situated may generally be inclined to support broader uses of renewables in these regions. Small-scale renewables can make a significant cumulative contribution to the RE mix. The results reported in this paper support the contention that the Government could go further towards approaching its targets through rural-focused changes to its energy incentive programmes.     

Energy diversification in Finland: achievements and potential of renewable energy development

Finland was an early adopter of several alternative energy technologies, particularly in biomass and hydropower energy for many years. The main policy in the Finnish energy and climate sectors is to increase the exploitation of renewable energy sources while reducing CO₂ emissions. Meanwhile, a successful energy policy should achieve three conflicting objectives: clean, cheap, and secure energy. The development of renewables in Finland has lagged that of other EU countries, particularly in fields such as wind power in recent years. This article discusses about the history, current status, and potentials of the major renewable and local energy in order of utilisation in Finland. It is seen that the major contributors to replacing carbon-based fuels are likely to be biomass and wind power, with geothermal and solar energy sources to play a lesser role.     

The role of energy efficiency in reducing Scottish and UK CO2 emissions

In 2003, the UK government launched its long-anticipated White Paper on energy, the centrepieces of which were ambitious targets for the production of electricity from renewable technologies and the long-term aspiration of a 60% reduction in UK greenhouse gas emissions by 2050. In the White Paper it was recognised that such a dramatic reduction in emissions will require significant changes in the way in which energy is produced and used. However there has been a general failure to recognise the fact that in order to meet emissions targets, the UK will have to significantly reduce its energy consumption; this is not helped by the general misconception in the UK that reductions in CO₂ emissions will occur simply by increasing the production of electricity from renewable sources.

Specifically, this paper highlights the current trends in renewables deployment and energy demand, with a specific focus on Scotland, where the authorities have set more ambitious renewables targets than the rest of the UK. As will be demonstrated in this paper, without energy demand reduction, the deployment of renewables alone will not be sufficient to curtail growth in UK CO₂ emissions. This is illustrated using a case study of the Scottish housing sector; whilst this case study is necessarily local in scope, the results have global relevance. The paper will also address the magnitude of energy savings required to bring about a reduction in emissions and assesses the status of the policies and technologies that could help bring such reductions about.     

The case for a new energy research,development and promotion policy for the UK

This paper is a critical assessment of the current balance of efforts towards energy research and development (R&D) and the promotion of low-carbon electricity technologies in the UK. We review the UK's main technological options and their estimated cost ranges in the medium term. We contrast the energy R&D spending with the current and expected future cost of renewable promotion policies and point out the high cost of carbon saving through existing renewable promotion arrangements. We also note that liberalisation of the electricity sector has had significant implications for the landscape of energy R&D in the UK. We argue that there is a need for reappraisal of the soundness and balance of the energy R&D and renewable capacity deployment efforts towards new energy technologies. We suggest that the cost-effectiveness of UK deployment policies needs to be more closely analysed as associated costs are non-trivial and expected to rise. We also make a case for considering increasing the current low level of energy R&D expenditure. Much of energy R&D is a public good and we should consider whether the current organisation of R&D effort is fit for purpose. We argue that it is important to build and maintain the research capability in the UK in order to absorb spillovers of technological progress elsewhere in the world. Against this background, the recent signs that an energy R&D renaissance could be underway are therefore positive and welcome.     

Renewable energy technologies for the Indian power sector: mitigation potential and operational strategies

The future economic development trajectory for India is likely to result in rapid and accelerated growth in energy demand, with attendant shortages and problems. Due to the predominance of fossil fuels in the generation mix, there are large negative environmental externalities caused by electricity generation. The power sector alone has a 40 percent contribution to the total carbon emissions. In this context, it is imperative to develop and promote alternative energy sources that can lead to sustainability of the energy–environment system. There are opportunities for renewable energy technologies under the new climate change regime as they meet the two basic conditions to be eligible for assistance under UNFCCC mechanisms: they contribute to global sustainability through GHG mitigation; and, they conform to national priorities by leading to the development of local capacities and infrastructure. This increases the importance of electricity generation from renewables. Considerable experience and capabilities exist in the country on renewable electricity technologies. But a number of techno–economic, market-related, and institutional barriers impede technology development and penetration. Although at present the contribution of renewable electricity is small, the capabilities promise the flexibility for responding to emerging economic, socio–environmental and sustainable development needs. This paper discusses the renewable and carbon market linkages and assesses mitigation potential of power sector renewable energy technologies under global environmental intervention scenarios for GHG emissions reduction. An overall energy system framework is used for assessing the future role of renewable energy in the power sector under baseline and different mitigation scenarios over a time frame of 35 years, between 2000 to 2035. The methodology uses an integrated bottom-up modelling framework. Looking into past performance trends and likely future developments, analysis results are compared with officially set targets for renewable energy. The paper also assesses the CDM investment potential for power sector renewables. It outlines specific policy interventions for overcoming the barriers and enhancing deployment of renewables for the future.     

A Monte Carlo approach to generator portfolio planning and carbon emissions assessments of systems with large penetrations of variable renewables

A new generator portfolio planning model is described that is capable of quantifying the carbon emissions associated with systems that include very high penetrations of variable renewables. The model combines a deterministic renewable portfolio planning module with a Monte Carlo simulation of system operation that determines the expected least-cost dispatch from each technology, the necessary reserve capacity, and the expected carbon emissions at each hour. Each system is designed to meet a maximum loss of load expectation requirement of 1 day in 10 years. The present study includes wind, centralized solar thermal, and rooftop photovoltaics, as well as hydroelectric, geothermal, and natural gas plants. The portfolios produced by the model take advantage of the aggregation of variable generators at multiple geographically disperse sites and the incorporation of meteorological and load forecasts. Results are presented from a model run of the continuous two-year period, 2005–2006 in the California ISO operating area. A low-carbon portfolio is produced for this system that is capable of achieving an 80% reduction in electric power sector carbon emissions from 2005 levels and supplying over 99% of the annual delivered load with non-carbon sources. A portfolio is also built for a projected 2050 system, which is capable of providing 96% of the delivered electricity from non-carbon sources, despite a projected doubling of the 2005 system peak load. The results suggest that further reductions in carbon emissions may be achieved with emerging technologies that can reliably provide large capacities without necessarily providing positive net annual energy generation. These technologies may include demand response, vehicle-to-grid systems, and large-scale energy storage.