Promoting renewable energy sources for heating and cooling in EU-27 countries

In addition to public policies aimed at improving the energy efficiency of buildings, EU authorities have also promoted the use of Renewable Energy Sources for heating and cooling uses (RES H&C). This paper analyses the main policy measures implemented in EU-27 countries up to 2009: i.e. subsidies, tax incentives, financial support and feed-in tariffs. Twenty-three Member States (MSs) have developed some of these policy measures.     

Technologies and policies for the transition to a sustainable energy system in china

The paper highlights the energy dilemma in China’s modernization process. It explores the technological and policy options for the transition to a sustainable energy system in China with Tsinghua University’s Low Carbon Energy Model (LCEM). China has already taken intensive efforts to promote research, development, demonstration and commercialization of sustainable energy technologies over the past five year. The policy actions cover binding energy conservation and environmental pollution control targets, economic incentives for sustainable energy, and public R&D supports. In order to achieve the sustainable energy system transformation eventually, however, China needs to take further actions such as strengthening R&D of radically innovative sustainable energy technologies and systems such as poly-generation, enhancing the domestic manufacturing capacity of sustainable energy technologies and systems, creating stronger economic incentives for research, development, demonstration and commercialization of sustainable energy technologies, and playing a leading role in international technology collaborations.     

Replacing tedium with transformation: Why the US Department of Energy needs to change the way it conducts long-term R&D

To avoid promoting technologies that merely produce incremental change, the US Department of Energy needs to establish a new organization designed to focus on transformational R&D projects. From its inception in 1977, the US Department of Energy (DOE) has been responsible for maintaining the nation's nuclear stockpile, leading the country in terms of basic research, setting national energy goals, and managing thousands of individual programs. Despite these responsibilities, however, the DOE research and development (R&D) model does not appear to offer the nation an optimal strategy for assessing long-term energy challenges. American energy policy continues to face constraints related to an overly rigid management structure and loss of mission within the DOE, layers of stove-piping within and between the national laboratories, and inadequate public and private funding for energy R&D. To address these concerns, an independent organization dedicated to transformative, creative energy R&D is required.     

Global energy security and the implications for the EU

The following article will analyse the global and geopolitical dimensions of the future international energy security and its implications for Europe and the EU-27. In this context, I will discuss to which extent the EU's newly proclaimed “Energy Action Plan” of the EU Spring summit of 2007 and its declared common energy (foreign) policy are a sufficient strategy to cope with the new global and geopolitical challenges. The article concludes the following: (1) The interlinkage between globally designed traditional energy security concepts – that rely just on economic factors and “market-strategies” – and domestic as well as regional political stability demands new thinking with regard to both energy supply security and foreign and security policies. (2) Although after the Russian–Ukrainian gas conflict in January 2006, energy security has forced its way up the European energy and foreign policy agendas, the EU-27 member states have largely failed to forge a coherent European energy security and energy foreign policy strategy after their Spring summit of 2007 because its declared political solidarity has been still lacking. But the 2nd Strategic Energy Review of November 2008 has recommended new initiatives to overcome this lack by promoting concrete infrastructure and other projects for enhancing Europe's supply security and its political solidarity as part of a common energy (foreign) policy. If the EU is able to implement the March 2007 and November 2008 decisions, the EU oil and gas demand will drastically reduce and freeze at current levels. In this case, Putin's energy policies by using Russia's energy resources and pipeline monopolies as a political instrument to enforce its economic and geopolitical interests will be proved as self-defeating in Russia's long-term strategic interests. It will reduce Gazprom's gas exports to a much smaller EU gas market than originally forecasted as the result of a deliberate EU policy of decreasing its overall gas demand and by diversifying its gas imports.     

Innovation modelling and multi-factor learning in wind energy technology

Learning curves are frequently cited to justify the subsidization of new technologies to facilitate market competitiveness. The main literature has focused on improving the specification of the basic learning curve model by augmenting it to control for technological development measured by public R&D expenditures. In addition to employing R&D expenditures, the purpose of this paper is to assess the robustness of an augmented multi-factor learning curve model by estimating learning rates in a panel framework utilising patent data on relevant wind power technologies in Germany, Denmark, Spain and the UK. Results indicate that both innovation proxies are qualitatively identical and generate consistent learning estimates. The paper also aims at exploring the presence of unit roots in learning curves and alerts to the possibility of spurious estimations. Renewable energy policy guided by learning curve estimates should therefore be implemented with caution.     

Effects of climate and energy policy related measures and targets on the future structure of the European energy system in 2020 and beyond

Stabilising the concentration of CO₂ in the atmosphere at a level of 450 ppm in order to keep global temperature increase below 2 °C requires an ambitious climate policy. This study analyses the role of different technologies in the EU-27 with regard to efficiency improvements, fuel switching and energy saving measures under such a climate policy target. The analysis is carried out using the regionalised Pan-European TIMES energy system model, a technology oriented, linear optimisation model. Thereby limited resources and import potentials of various energy carriers, competition among different sectors and the country-specific differences in energy demand are taken into account. As a result, it turns out that the structure of energy use inside the EU-27 is much stronger, influenced by political targets and positions regarding climate protection, energy security and the use of nuclear energy than by available technologies. In the case of climate protection polices and limited use of nuclear energy, the most important measures for the reduction of greenhouse gases are an increased use of renewables, carbon capture and storage, fuel switching and the intensified application of electricity in the end use sectors. Efficiency improvements play an additional role when security of supply is taken into account.     

Energy research and technology development data collection strategies: The case of Greece

The European Union (EU) from the beginning of 2007 has focused its emphasis on the development of a new policy that puts energy back at the heart of EU action. Indeed, it has very often been stated that the difficulty and complexity of achieving green energy targets in the EU will require strengthened measures to promote implementation of new energy technologies (NET), as well as measures to support the related energy Research and Technology Development (R&TD). Often forgotten is the fact, that most of all, a European-wide co-ordinated forum is needed to continuously develop and sophisticate the monitoring and methodology results, bringing together specialised statisticians, energy researchers and experts on energy socio-economics. Today a nebulous picture prevails on the existence of categorized data with regards to energy Research and Technology Development (R&TD) expenditure. In this context, aim of this paper is the presentation of energy R&TD data collection strategies, as well as the related findings for the Greek energy market.     

Energy R&D A UK perspective

Energy R & D is essential for countries wishing to lessen their dependence on imported oil and to widen their long-term options for energy policy. Accepting that energy R & D must be viewed in an international context, Mr Surrey and Mr Walker review the UK coal, gas, oil, nuclear and electricity supply industries' programmes, examine the role of government and suggest guidelines for a national strategy. They call for more positive direction of energy R & D by the Government in order to balance the interests of the nationalised fuel industries where they conflict or overlap, and to ensure consistency of energy R & D policy with industrial policies.     

Promotion of biofuel consumption in the transport sector: An EU-27 perspective

The European Union's (EU) Directive 2003/30/EC [1] set an objective of reaching a 5.75% share of renewable energy as a proportion of the total energy consumption of the transport sector by 2010. As all the Member States (MSs) of the EU-27 were obliged to comply with this directive different public policy measures were developed and implemented to promote the use of biofuels in transport—biofuels being the main renewable energy source (RES) in this sector. In this article, we review the public measures undertaken in the EU-27, and show how these measures primarily involve tax incentives and biofuel blending mandates on fuel sales. All countries, with the exception of Finland, introduced tax incentives of various types to promote the use of biofuels, while 18 MSs also implemented biofuel blending mandates through the passing of legislation relating to this matter.     

Is there a relationship between public expenditures in energy R&D and carbon emissions per GDP? An empirical investigation

Energy innovation plays a crucial role in the reduction of carbon emissions. In order to design climate and energy policies that promote the development, deployment and diffusion of new energy technologies, policy makers not only require a theoretical understanding of the energy innovation system, but also empirical evidence of the effects that policy actions have had. This paper focuses on public energy R&D, a traditional and controversial option among the various climate technology policies, and empirically analyses its relationship with carbon emissions per GDP (i.e. carbon intensity) and its two components: energy intensity and the carbon factor. Evidence of the causality links that have prevailed in 13 advanced economies over the 1980–2004 period has been obtained through dynamic panel models. Our findings confirm that government R&D spending is not sufficient by itself to boost the energy innovation process. Public energy R&D has been successful in improving energy efficiency at country level, but it has failed to have a significant impact on the carbon factor and carbon intensity. At the same time the formation of energy R&D budgets is found to be significantly affected by carbon trends.     

Policy strategies and paths to promote sustainable energy systems—The dynamic Invert simulation tool

The European Union has established a number of targets regarding energy efficiency, Renewable Energy Sources (RES) and CO₂ reductions as the ‘GREEN PAPER on Energy Efficiency’, the Directive for ‘promotion of the use of bio-fuels or other renewable fuels for transport’ or ‘Directive of the European Parliament of the Council on the promotion of cogeneration based on a useful heat demand in the internal energy market’. Many of the according RES and RUE measures are not attractive for investors from an economic point of view. Therefore, governments all over the world have to spend public money to promote these technologies/measures to bring them into market. These expenditures have to be adjusted to budget concerns and should be spent most efficiently. Therefore, the spent money has to be dedicated to technologies and efficiency measures with the best yield in CO₂ reduction without wasting money.     

Energy efficiency improvement procedures and audit results of electrical,thermal and solar applications in Palestine

Energy conservation in utilities has played a vital role in improving energy efficiency in the industrial, commercial and residential sectors. The electrical energy consumption in Palestine has increased sharply in the past few years and achieved by the end of 2001 to 10% per year. It is expected that this percentage will increase to about 12% if the current political situation will end hopefully with peace. Modern energy efficient technologies are needed for the national energy policy. Such technologies are investigated in this paper. Implementing of a national 3 years project aiming at energy efficiency improvement in residential and industrial sectors as well as in public utilities, which include wide range of diversified audits and power measurements, had led to creating this paper. Measurement and audit results had shown that the total conservation potential in these sectors is around 15% of the total energy consumption. The associated costs of the investment in this field are relatively low and correspond to a pay back period varying in the range from 6 to 36 months. Consequently, the energy conservation policy will be seriously improved in the forthcoming years. It is estimated that 10% of the new energy purchasing capacity will be reduced accordingly.     

Energy demand and conservation in US residential and commercial buildings Impact of the US national energy plan

This paper evaluates the impact of the US National Energy Plan on energy demand in US commercial and residential buildings. Following a brief historical review of energy use patterns in US buildings, estimates are presented of how the National Energy Plan would affect the sector in terms of fuel expenditures and investment in energy using equipment and structures. The analysis is based on economic-engineering models of energy demand which are currently being used by the US Department of Energy to evaluate conservation programmes. The demand models incorporate behavioural as well as technological determinants and are sufficiently disaggregated to allow consideration of individual components of the National Energy Plan.     

Formulating a modern energy companies’ environment in the EU accession member states through a decision support methodology

One of the current energy policy's goals in the European Union (EU) is the exchange of knowledge and experience between the EU-15 member states and the new as well as the candidate countries in issues regarding the development of Renewable Energy Sources and the promotion of Energy Efficiency (EE). Nowadays, the liberalization of energy markets and the deterioration of the climate, in combination with the non-stop crude oil price increase, have had a decisive influence on the development of the above sectors. In addition, one of the most important elements for the renewable energy and EE development is the enhancement of energy producers by renewable energy and Energy Service Companies (ESCOs), respectively. These companies’ success is based on the formulation of a modern environment in each EU member state. However, the environment in the new and candidate member states is less mature than the environment in the EU-15 member states, as it is still in its development phase. In this context, the main aim of this paper is to present a “multi-dimensional” decision support methodology for the formulation of modern energy companies’ operational environment in the 13 new and candidate member states of the EU.     

Communications on energy: Fighting London's cold war

This communication illustrates the work of the London Energy and Employment Network. LEEN has the twin aims of promoting a rational energy policy for London and, in the process, generating much needed employment. In cooperation with Hackney, one of Britain's poorest boroughs, LEEN organized Hackney's Cold War — a series of initiatives showing the practical measures, informational back-up and funding sources necessary for a local energy policy. LEEN intends to repeat this project in other London Boroughs, with the eventual aim of helping to persuade central government to adopt a more comprehensive approach to energy conservation nationally.     

Comparative assessment of future motor vehicles under various climate change mitigation scenarios

The aim of comparative assessment of future road transport technologies is to find the cheapest motor vehicles in terms of private and external Greenhouse Gas (GHG) emission costs under various international climate change mitigation scenarios in 2020 and 2050. The comparative assessment of the main road transport technologies ranging from conventional vehicles to hybrid electric vehicles was performed. The main indicators for comparative future motor vehicles assessment are: private costs and life cycle external costs of GHG emissions. The obtained ranking of road transport technologies allows to identify the most perspective future motor vehicles taking into account international climate change mitigation constraints and to promote these road technologies by policy tools. The cheapest road transport technologies in 2020 and 2050 are: the main results presented in this paper were obtained during EU financed Framework 7 project “PLANETS” dealing with probabilistic long-term assessment of new energy technology scenarios.     

Innovation in the energy sector: Lessons learnt from R&D expenditures and patents in selected IEA countries

Long time series of the IEA and international patent offices offer a huge potential for scientific investigations of the energy innovation process. Thus, this paper deals with a broad literature review on innovation drivers and barriers, and an analysis of the knowledge induced by public research and development expenditures (R&D) and patents in the energy sector. The cumulative knowledge stock induced by public R&D expenditures in 14 investigated IEA-countries is 102.3 bn EUR in 2013. Nuclear energy has the largest share of 43.9 bn EUR, followed by energy efficiency accounting for 14.9 bn EUR, fossil fuels with 13.5 bn EUR, and renewable energy with 12.1 bn EUR. A regression analysis indicates a linear relation between the GDP and the cumulative knowledge, with each billion EUR of GDP leading to an additional knowledge of 3.1 mil EUR. However, linearity is not given for single energy technologies. Further, the results show that appropriate public R&D funding for research and development associated with a subsequent promotion of the market diffusion of a niche technology may lead to a breakthrough of the respective technology.     

Solar energy in The Netherlands recent progress

The Netherlands has a well advanced policy on energy and the environment. The Governmental “Policy Document on Energy Conservation” forms the basis for the programs on renewable energy. The aim is to have 5 % (163 PJ) of the total energy produced by renewable energy sources in the year 2010. The National Solar Thermal and Photovoltaic Energy Programmes 1990–1994 are managed and coordinated by Novem. Novem is an intermediary organisation acting between the government on the one hand and the marketplace on the other. Novem has a permanent staff of 270 and allocates about US$ 130 million annually as project funds. This paper provides an recent overview of the Solar Thermal and Photovoltaic Programmes in the Netherlands, after introducing the government policy.     

Life cycle costing,government policies and the diffusion of energy-conserving technology

Energy conservation has become a major goal of State and Federal policy. Governments are called on to play an active role in identifying promising energy-conserving technologies, and in encouraging their timely and widespread adoption.For their role to be effective, governments must have available—and be willing to use—some economic tools that permit estimation of the costs and benefits of their actions. Costs may consist of funds spent on research, development and public education, of tax revenues foregone, of administrative expenses, or of outright subsidies to producers or consumers. Benefits arise mainly through the earlier adoption of energy-conserving technologies with their attendant economic savings.In evaluating these savings, governments may assign “shadow prices” different from observed market prices to certain energy forms, to reflect more correctly their perceived value to society. They may also want to use discount rates different from those of private businesses or individuals in their benefit-cost calculus, to better take into account the claims of future generations on earth's remaining resources.The main purpose of this paper is to show what special economic tools are required in this evaluation, to develop some of them, and to demonstrate their application. Specifically, the aim is to explain and illustrate the usefulness to public policy makers of the techniques of life cycle costing and of market acceptance estimation.In order to highlight the basic principles without getting embroiled in excessive algebraic details, certain simplifications are introduced (and clearly stated) in the course of the paper. Although the tools are general, the development is made concrete by focussing the discussion on consumer durables that use and/or deliver energy in the performance of their service, and that are ready for application without further research and development effort.     

Public demonstration projects and field trials: Accelerating commercialisation of sustainable technology in solar photovoltaics

The paper considers the role of government funded demonstration projects and field trials (DTs) in accelerating the commercialisation of new energy technologies that meet a public good but do not have immediate market appeal [Sagar, A.D., van der Zwaan, B., 2006. Technological innovation in the energy sector: R&D, deployment, and learning-by-doing. Energy Policy 34, 2601–2608]. Drawing on an original database of DTs in the EU, Japan and USA from 1973 to 2004, we review the history of DTs in photovoltaic technology for electricity generation, and its subsequent take up as a commercial energy source.