The unrecognized contribution of renewable energy to Europe's energy savings target

We show that renewable energy contributes to Europe's 2020 primary energy savings target. This contribution, which is to a large extent still unknown and not recognized by policy makers, results from the way renewable energy is dealt with in Europe's energy statistics. We discuss the policy consequences and argue that the ‘energy savings’ occurring from the accounting of renewable energy should not distract attention from demand-side energy savings in sectors such as transport, industry and the built environment. The consequence of such a distraction could be that many of the benefits from demand-side energy savings, for example lower energy bills, increase of the renewable energy share in energy consumption without investing in new renewable capacity, and long-term climate targets to reduce greenhouse gas emissions by more than 80%, will be missed. Such distraction is not hypothetical since Europe's 2020 renewable energy target is binding whereas the 2020 primary energy savings target is only indicative.     

Consumers' willingness to pay for renewable and nuclear energy: A comparative analysis between the US and Japan

This paper examines consumers' willingness to pay for nuclear and renewable electricity as two alternatives to fossil fuels for the reduction of greenhouse gas emissions. We conduct a choice experiment of consumer-stated preferences on the basis of an online survey in four US states and Japan after the Fukushima nuclear plant accident. First, the results suggest that US consumers' willingness to pay for a 1% decrease in greenhouse gas emissions is $0.31 per month, which is similar to the results for the US a decade ago. Japanese consumers show a slightly lower willingness to pay of $0.26 per month. Second, the average consumer in both countries expresses a negative preference for increases in nuclear power in the fuel mix (to a greater extent in Japan). Third, renewable energy sources were endorsed by both US and Japanese consumers, who show a willingness to pay $0.71 and $0.31 per month for a 1% increase in the use of renewable source energy. This study also examines the differences in respondents' characteristics. Approximately 60% of the US respondents who did not change their perception concerning the use of nuclear energy subsequent to the Fukushima nuclear crisis have almost no preference for variation in nuclear power, which is in stark contrast to the Japanese respondents' opposition to nuclear energy.     

Quality uncertainty and the market for renewable energy: Evidence from German consumers

Consumers can choose from a wide range of electricity supply contracts, including green power options. Electricity produced from renewable energy involves information asymmetries. With a sample of more than 2,000 German electricity consumers, we tested the proposition of a “lemon market” for renewable energy in a discrete choice experiment. Specifically, we found that, compared to investor-owned firms, additional willingness-to-pay for renewable energy is approximately double when offered by cooperatives or municipally-owned electricity utilities. Consumers who are experienced with switching suppliers have an additional willingness-to-pay of one Eurocent per kilowatt hour for cooperatives and two Eurocents for public enterprises. The results demonstrate that organizational transformation in dynamically-changing electricity markets is not only driven by political initiatives but also by consumers' choices on the market. Public policy may reduce information asymmetries by promoting government labeling of green energy products.     

Electricity generation from renewable energy sources in Poland

AbstractFor the European Union's Member States 2001/77/EC Directive on the promotion of electricity produced from renewable energy sources in the internal electricity market determined targets for 2010 of 21% share of electricity from renewable energy sources in total electricity consumption. Particular Member States adopted different measures for development of renewable and in consequence they achieved different results. Poland, being Member State of the EU since 2004 has accepted target of 7.5% for electricity generated from renewable energy sources until 2010. Currently, in this decade, new 2009/28/EC Directive on the promotion of the use of energy from renewable sources plays significant role in development of renewable energy sources. Directive set new target for 2020. Nowadays is a time for summary and assessment of results fulfilling Directives and monitor progress of new targets. Article presents measures implemented for renewable source energy development, also current state and perspectives of using of renewable energy sources in Poland and in the EU.     

Cost and benefit of renewable energy in the European Union

An assessment is made as to whether renewable energy use for electricity generation in the EU was beneficial throughout the cycle of high and low oil prices. Costs and benefits are calculated with the EU statistics for the period of low oil prices 1998–2002 and high oil prices 2003–2009. The share of renewable energy in electricity production was 21% of all energy resources in 2008, growing on average 5% a year during 2003–2008 compared to nil growth of the fossil fuels mix. Correlations show significant impacts of growing renewable energy use on changes in consumers' electricity prices during the high and rapidly increasing fossil fuel prices in the period 2005–2008. The growing use has contributed to price decrease in most countries that use more renewable energy and price increase in many countries that use little renewable energy. Costs and benefits are assessed through comparison between the observed consumers' electricity prices and simulated prices had they followed the costs of fossil fuel mix. A net benefit of 47 billion euro throughout the oil price cycle is attributable to the growing use of renewable energy, which is on average 8 billion euro a year. This net benefit is larger than the total public support for renewable energy. The net benefit would be larger had the EU anticipated high oil prices through more public support during low oil prices, as this would create productive capacity, but countries' interests increasingly differed. An anti-cyclic EU policy is recommended.     

Top down strategy for renewable energy investment: Conceptual framework and implementation

Electricity market is undergoing a tremendous transformation throughout the world. A drastic reduction of carbon emission cannot be realized if renewable energy resources are not increased in share of generation mix. Currently, most of the traditional mechanisms, including regulatory policies, fiscal incentives and public financing, are initiated from and heavily relied on policymakers and governments. However, not only these schemes do not necessarily align with business interests of investors, but also the motivations for renewable energy developments are always initiated by governments. In order to realize the full potential of renewable energy investment, an innovative approach is necessary to motivate investors and lessen government expenditures.In this paper, we present a top down strategy for renewable energy investment. The proposed approach is a three-step framework. By applying the approach, renewable energy global market leaders and trends will be identified and analyzed that included: (1) economics and renewable energy policy, (2) specific renewable energy sectors that presents the most attractive investment opportunity, (3) and finally the most promising renewable energy investment vehicles for investors. Other stakeholders can also use the developed framework, such as consumers and policymakers, to make socio-economic decisions and assess renewable energy investments.     

Interactions between renewable energy policy and renewable energy industrial policy: A critical analysis of China's policy approach to renewable energies

This paper analyzes China's policy approach to renewable energies and assesses how effectively China has met the ideal of appropriate interactions between renewable energy policy and renewable energy industrial policy. First we briefly discuss the interactions between these two policies. Then we outline China's key renewable energy and renewable industrial policies and find that China's government has well recognized the need for this policy interaction. After that, we study the achievements and problems in China's wind and solar PV sector during 2005–2012 and argue that China's policy approach to renewable energies has placed priority first on developing a renewable energy manufacturing industry and only second on renewable energy itself, and it has not effectively met the ideal of appropriate interactions between renewable energy policy and renewable energy industrial policy. Lastly, we make an in-depth analysis of the three ideas underlying this policy approach, that is, the green development idea, the low-carbon leadership idea and indigenous innovation idea. We conclude that Chinas' policy approach to renewable energies needs to enhance the interactions between renewable energy policy and renewable energy industrial policy. The paper contributes to a deeper understanding of China's policy strategy toward renewable energies.     

Potential and use of renewable energy sources in Croatia

The current share of renewable energy sources in electricity production in Croatia is very high, around 50%. Nevertheless it is expected that the share of renewables will have to rise and efficient strategies must be examined and adopted. The Croatian government has recognised the important role renewable energy sources could play in Croatian energy and electricity supply. The most important barrier for a wider deployment of renewables in energy production is their cost which is still above those of conventional energy sources. As the energy market is currently undergoing the process of liberalisation, support mechanisms that are compatible with an open market philosophy must be adopted. The characteristics of the Croatian power system, the expected consumption, growth and possible future role of renewables in energy and electricity production is presented. The current legislative framework relevant for renewables is analysed and discussed.     

Analysis of the EU renewable energy directive by a techno-economic optimisation model

The EU renewable energy (RES) directive sets a target of increasing the share of renewable energy used in the EU to 20% by 2020. The Norwegian goal for the share of renewable energy in 2020 is 67.5%, an increase from 60.1% in 2005. The Norwegian power production is almost solely based on renewable resources and the possibility to change from fossil power plants to renewable power production is almost non-existing. Therefore other measures have to be taken to fulfil the RES directive. Possible ways for Norway to reach its target for 2020 are analysed with a technology-rich, bottom-up energy system model (TIMES-Norway). This new model is developed with a high time resolution among others to be able to analyse intermittent power production. Model results indicate that the RES target can be achieved with a diversity of options including investments in hydropower, wind power, high-voltage power lines for export, various heat pump technologies, energy efficiency measures and increased use of biodiesel in the transportation sector. Hence, it is optimal to invest in a portfolio of technology choices in order to satisfy the RES directive, and not one single technology in one energy sector.     

An econometric analysis of residential expenditures on energy conservation and renewable energy sources

Economic theory suggests that residential expenditures on energy conservation and renewable energy sources will be determined by the ability of households to purchase conservation inputs, their incentive to invest in conserving energy, the energy efficiency of existing homes and miscellaneous factors such as climate and age of the home-owner. Empirical analyses of energy-related expenditures reported on individual income tax returns confirm the importance of household income, energy price increases and climate conditions in determining energy conservation investments. Income tax credits are also found to have stimulated residential spending on conservation and renewable energy.     

Energy and renewable energy scenario of Pakistan

This paper presents a review about conventional and renewable energy scenario of the county in quantitative terms of supply, generation and exploitation of available resources. In this energy scenario, the renewable energy share is in the range of a fraction of a percentage compared to total conventional energy supplies, so depicting it as a sector of least significance for government. Main emphasis in this paper has been given on presentation of data about renewable energy (RE) installations in the country, on-going activities, development projects, RE planning and achievements of public sector RE institutions and organizations. At the end some suggestions are given for effective planning and exploitation of RE resources and use of technologies. These suggestions are not only useful for Pakistan but also are equally important for the third world countries to enhance appreciably RE contribution in their total energy supplies of their country.     

Which factors affect the willingness of consumers to adopt renewable energies?

This study presents insights into the determinants of consumers' willingness to adopt renewable energies in the residential sector. The empirical analysis is based on the estimation of binary probit regression models. Empirical results suggest that middle-aged and highly educated people are probably more willing to adopt renewable energy sources in their home. In general, income positively affects consumers' acceptance of renewable energy projects in the residential sector. However, the results suggest that marital status and gender are not statistically significant factors in the willingness to adopt renewable energies. A tax deduction is estimated to be the most effective financial policy measure to promote consumers' acceptance of renewable energies in the residential sector, more so than an energy subsidy. Our analysis is focused on intention because we expect that those people willing to adopt renewable energy sources in their residence are a potentially relevant market segment for the application of renewable energies.     

A review of renewable energy activities in Yemen

Republic of Yemen is a developing country depending on oil for the energy needs. A look at the availability of renewable energy resources shows that the country is endowed with considerable solar, wind, bio-gas energy resources. This paper presents a review of activities in the field of renewable energy applications in Yemen and future trends, some suggestions and recommendations for using this renewable energy resources are also drawn.     

An energy management approach for renewable energy integration with power generation and water desalination

The share of the renewable energy sources (RES) in the global electricity market is substantially increasing as a result of the commitment of many countries to increase the contribution of the RES to their energy mix. However, the integration of RES in the electricity grid increases the complexity of the grid management due to the variability and the intermittent nature of these energy sources. Energy storage solutions such as batteries offer either short-term storage that is not sufficient or longer period storage that is significantly expensive. This paper introduces an energy management approach which can be applied in the case of power and desalinated water generation. The approach is based on mathematical optimization model which accounts for random variations in demands and energy supply. The approach allows using desalination plants as a deferrable load to mitigate for the variability of the renewable energy supply and water and/or electricity demands. A mathematical linear programming model is developed to show the applicability of this idea and its effectiveness in reducing the impact of the uncertainty in the environment. The model is solved for the real world case of Saudi Arabia. The optimal solution accounts for random variations in the renewable energy supply and water and/or electricity demands while minimizing the total costs for generating water and power.     

Spanish energy roadmap to 2020: Socioeconomic implications of renewable targets

The European Union has established challenging targets for the share of renewable energies to be achieved by 2020; for Spain, 20% of the final energy consumption must be from renewable sources at such time. The aim of this paper is the analysis of the consequences for the electricity sector (in terms of excess cost of electricity, investment requirements, land occupation, CO₂ emissions and overcapacity of conventional power) of several possibilities to comply with the desired targets. Scenarios are created from different hypotheses for energy demand, biofuel share in final energy in transport, contribution of renewables for heating and cooling, renewable electricity generation (generation mix, deployment rate, learning curves, land availability) and conventional power generation (lifetime of current installations, committed deployment, fossil fuel costs and CO₂ emissions cost). A key input in the estimations presented is the technical potential and the cost of electricity from renewable sources, which have been estimated in previous, detailed studies by the present authors using a methodology based on a GIS (Geographical Information System) and high resolution meteorological data. Depending on the scenario, the attainment of the targets will lead to an increase in the cost of electricity from 19% to 37% with respect to 2007.     

Output and substitution elasticities of energy and implications for renewable energy expansion in the ECOWAS region

This study estimates output and substitution elasticities of renewable energy and nonrenewable energy for the Economic Community of West African States (ECOWAS) and discusses implications for expanding the former. The results show that nonrenewable energy promises greater benefits for ECOWAS economic transition, with output elasticities averaging between 0.052–0.579 and −0.055 to 0.223 for nonrenewable energy and renewable energy respectively. Overall estimated technological progress is low (−0.5% to 2.6%); the bulk coming from input efficiency. Substitution elasticities (0.02–0.94) suggest potential for switching towards renewable energy. Notwithstanding, scale, economics and sitting problems inherent in renewable power generation challenge the opportunities for energy substitution. A sustainable policy solution, therefore, appears to be one favoring scaled and efficient electricity generation from fossil energy in the short-run with a gradual switch towards renewable power in the long-run. In general, the applied model provides insights that energy efficiency enhances sustainable growth by propelling technological advancement especially when technical change is scale-biased and factor-augmenting. The study also provides insights that impacts of exogenous shocks to inputs are temporary, and hence, do not jeopardize efforts aimed at scaling output through increased and efficient use of labor, capital and energy; especially nonrenewable energy.     

A review of computer tools for analysing the integration of renewable energy into various energy systems

This paper includes a review of the different computer tools that can be used to analyse the integration of renewable energy. Initially 68 tools were considered, but 37 were included in the final analysis which was carried out in collaboration with the tool developers or recommended points of contact. The results in this paper provide the information necessary to identify a suitable energy tool for analysing the integration of renewable energy into various energy-systems under different objectives. It is evident from this paper that there is no energy tool that addresses all issues related to integrating renewable energy, but instead the ‘ideal’ energy tool is highly dependent on the specific objectives that must be fulfilled. The typical applications for the 37 tools reviewed (from analysing single-building systems to national energy-systems), combined with numerous other factors such as the energy-sectors considered, technologies accounted for, time parameters used, tool availability, and previous studies, will alter the perception of the ‘ideal’ energy tool. In conclusion, this paper provides the information necessary to direct the decision-maker towards a suitable energy tool for an analysis that must be completed.     

Valuing the attributes of renewable energy investments

Increasing the proportion of power derived from renewable energy sources is becoming an increasingly important part of many countries's strategies to achieve reductions in greenhouse gas emissions. However, renewable energy investments can often have external costs and benefits, which need to be taken into account if socially optimal investments are to be made. This paper attempts to estimate the magnitude of these external costs and benefits for the case of renewable technologies in Scotland, a country which has set particularly ambitious targets for expanding renewable energy. The external effects we consider are those on landscape quality, wildlife and air quality. We also consider the welfare implications of different investment strategies for employment and electricity prices. The methodology used to do this is the choice experiment technique. Renewable technologies considered include hydro, on-shore and off-shore wind power and biomass. Welfare changes for different combinations of impacts associated with different investment strategies are estimated. We also test for differences in preferences towards these impacts between urban and rural communities, and between high- and low-income households.     

Algerian renewable energy assessment: The challenge of sustainability

Algeria plays a very important role in world energy markets, both as a significant hydrocarbon producer and as an exporter, as well as a key participant in the renewable energy market. Due to its geographical location, Algeria holds one of the highest solar potentials in the world. This paper presents a review of the present renewable energy situation and assesses present and future potential of renewable energy sources (RESs) in Algeria. This paper also discusses the trends and expectation in solar systems applications and the aspects of future implementation of renewable energies in the Middle East and North Africa (MENA) region status. The problem related to the use of RES and polices to enhance the use of these sources are also analysed in this paper. In addition the available capacity building, the technical know-how for each RES technology and localizing manufacturing of renewable energy equipments are defined. The co-importance of both policy and technology investments for the future Algerian markets of RES and competitiveness of the solar/wind approach is emphasized. Some examples of policy significantly impacting Algerian markets are reviewed, and the intention of the new Algerian RES initiative is discussed.     

Alternative carriers for remote renewable energy sources using existing CNG infrastructure

Optimal locations of renewable energy sources are often remote relative to consumers and electricity grids. In contrast, some existing CNG pipelines pass through optimal renewable energy harvesting regions. The growing interest in the possibility of using geothermal energy in central Australia has created a need to assess the economic, technical, and environmental viability of converting remote renewable energy to fuel for transport using existing CNG pipelines, and to compare this alternative with that required to construct new high-capacity electricity transmission lines. This assessment is reported, using first the conversion of electricity to hydrogen, and then conversion of the hydrogen to methane. The paper also compares the alternative of direct injection of hydrogen into existing CNG pipelines to create “hythane” (HCNG). An economic assessment showed that the relative capital and operating costs are sufficient make the alternative carrier prospect worthy of further consideration.