Heterogeneous policies,heterogeneous technologies: The case of renewable energy

This paper investigates empirically the effect of market regulation and renewable energy policies on innovation activity in different renewable energy technologies. For the EU countries and the years 1980 to 2007, we built a unique dataset containing information on patent production in eight different technologies, proxies of market regulation and technology-specific renewable energy policies. Our main finding is that, compared to privatisation and unbundling, reducing entry barriers is a more significant driver of renewable energy innovation, but that its effect varies across technologies and is stronger in technologies characterised by potential entry of small, independent power producers. In addition, the inducement effect of renewable energy policies is heterogeneous and more pronounced for wind, which is the only technology that is mature and has high technological potential. Finally, ratification of the Kyoto protocol, which determined a more stable and less uncertain policy framework, amplifies the inducement effect of both energy policy and market liberalisation.     

Renewable power for China: Past,present, and future

This paper briefly examines the history, status, policy situation, development issues, and prospects for key renewable power technologies in China. The country has become a global leader in wind turbine and solar photovoltaic (PV) production, and leads the world in total power capacity from renewable energy. Policy frameworks have matured and evolved since the landmark 2005 Renewable Energy Law, updated in 2009. China’s 2020 renewable energy target is similar to that of the EU. However, China continues to face many challenges in technology development, grid-integration, and policy frameworks. These include training, research and development, wind turbine operating experience and performance, transmission constraints, grid interconnection time lags, resource assessments, power grid integration on large scales, and continued policy development and adjustment. Wind and solar PV targets for 2020 will likely be satisfied early, although domestic demand for solar PV remains weak and the pathways toward incorporating distributed and building-integrated solar PV are uncertain. Prospects for biomass power are limited by resource constraints. Other technologies such as concentrating solar thermal power, ocean energy, and electricity storage require greater attention.     

CO2 and energy efficiency car standards in the EU in the context of a decarbonisation strategy: A model-based policy assessment

The European Union introduced CO₂ emission standards on cars as an obligation to manufacturers to reduce carbon footprint of cars in EU transportation. The car industry is already marketing low carbon emitting technologies to adjust to the 95 gCO₂/km target set for 2020. An alternative policy option is setting energy efficiency standards, measured as energy consumption per kilometre. A policy based on a long-term commitment on continuously decreasing standards and the choice of the focus between CO₂ or energy efficiency will strongly influence car technology choice. The aim of this paper is to assess these candidate policies for the EU in terms of effectiveness, costs and emission implications until 2050 on the basis of scenarios quantified using the PRIMES-TREMOVE energy economic transport model. The scenarios assume various configurations of the standards and the assessment draws on comparisons to a Reference scenario which does not strengthen standards after 2025. The analysis shows that restructuring the EU car fleet towards significant reductions of energy consumption and CO₂ emissions is affordable provided that preconditions are met regarding technology progress and development of refuelling/recharging infrastructure. CO₂ standards allow a diversified use of technologies, while efficiency standards are more “risky” favouring a single technology.     

Feasibility of the Nordic forest energy harvesting technology in Poland and Scotland

Finland and Sweden have been forerunners in the development of wood harvesting machinery and methods. In both countries, small- and large-scale supply systems for wood chips have been in operation for several decades. More recently, the production and use of forest chips from logging residues and small diameter trees has been growing rapidly.The European Union (EU) has set ambitious targets for the use of renewable energy to mitigate climate change and to increase domestic energy security and self-sufficiency. The largest unutilised source for renewable energy in the EU is forest biomass. European forests could fulfill one third of the goal set for biomass-based energy production in the EU’s Biomass Action Plan. In addition, member countries have started national programmes to promote the use of biomass for energy.As a result, interest in Nordic forest energy technology has been increasing rapidly in other parts of the EU. The Finnish Forest Research Institute and its collaborators have been running a technology transfer project in ten European countries, with the goal of tailoring and adapting Nordic forest technology to local conditions through analysing the applicability, costs and overall competitiveness of selected feedstock supply technologies.This paper summarizes the findings of feasibility studies carried out in Poland and Scotland and gives an overview of the current situation and development trends of forest energy in the European Union.     

Renewable power for China: Past, present, and future

This paper briefly examines the history, status, policy situation, development issues, and prospects for key renewable power technologies in China. The country has become a global leader in wind turbine and solar photovoltaic (PV) production, and leads the world in total power capacity from renewable energy. Policy frameworks have matured and evolved since the landmark 2005 Renewable Energy Law, updated in 2009. China’s 2020 renewable energy target is similar to that of the EU. However, China continues to face many challenges in technology development, grid-integration, and policy frameworks. These include training, research and development, wind turbine operating experience and performance, transmission constraints, grid interconnection time lags, resource assessments, power grid integration on large scales, and continued policy development and adjustment. Wind and solar PV targets for 2020 will likely be satisfied early, although domestic demand for solar PV remains weak and the pathways toward incorporating distributed and building-integrated solar PV are uncertain. Prospects for biomass power are limited by resource constraints. Other technologies such as concentrating solar thermal power, ocean energy, and electricity storage require greater attention.     

Assessing the impacts of technology improvements on the deployment of marine energy in Europe with an energy system perspective

Marine energy could play a significant role in the long-term energy system in Europe, and substantial resources have been allocated to research and development in this field. The main objective of this paper is to assess how technology improvements affect the deployment of marine energy in the EU. To do so the linear optimization, technology-rich model JRC-EU-TIMES is used. A sensitivity analysis is performed, varying technology costs and conversion efficiency under two different carbon-emissions paths for Europe: a current policy initiative scenario and a scenario with long-term overall CO₂ emission reductions. We conclude that, within the range of technology improvements explored, wave energy does not become cost-competitive in the modelled horizon. For tidal energy, although costs are important in determining its deployment, conversion efficiency also plays a crucial role. Ensuring the cost-effectiveness of tidal power by 2030 requires efficiency improvements by 40% above current expectations or cost reductions by 50%. High carbon prices are also needed to improve the competitiveness of marine energy. Finally, our results indicate that investing 0.1–1.1 BEuro₂₀₁₀ per year in R&D and innovation for the marine power industry could be cost-effective in the EU, if leading to cost reduction or efficiency improvements in the range explored.     

Preconditions and tools for cross-sectoral regional industrial GHG and energy efficiency policy—A Finnish standpoint

The aim of this paper is to develop an approach and tools for cross-sectoral regional industrial GHG and energy policies. These policies can be conducted at different levels of society. To achieve real results in energy efficiency improvements and in GHG reductions, the policies must be focused on the correct levels in society. In Finland, the province level seems to be a reasonable level for a policy targeted at industry. This paper proposes a category for the ways industry uses energy: building energy users, major users of electricity for process/production, major users of heat for process/production and direct combustion users. This approach gives opportunities for developing regional cooperation among different industries. The approach is also important between industries and society, so that there are integrated solutions which e.g. utilise district heating and biofuel potentials. The individual technologies like electric motors, pumps, fans, heat recovery equipment and boilers do not seem to have any significant potentials for improvements in energy efficiency by the EU target year 2020. However, there are opportunities but they are at system levels: how effectively the individual technologies are applied as a part of industrial systems. This fact supports the idea of energy use categorising.     

So what do innovating companies really get from publicly funded demonstration projects and trials? innovation lessons from solar photovoltaics and wind

Demonstration projects and trials (DTs) are an extension of the prototyping process into next phases of development and are widely used in reducing uncertainty for new technologies. During the last few decades, DTs have been extensively used to help overcome innovation uncertainties in renewable energy for electricity supply systems in the US, EU and Japan. However, there is still relatively little attention to this “uncertain middle” phase in accelerating complex, large-system innovation, particularly as to what companies actually value, as distinct from what advocates suggest they should gain and what policy makers believe publicly funded DTs should achieve. Following development of a comprehensive database of DTs, fifteen company cases have been developed on solar PV with nine on wind turbines to establish what benefits they deliver. These provide comprehensive lessons for the design, management and coordination of future DT programmes in low carbon energy technology.     

Charging Chinese future: the roadmap of China's policy for new energy automotive industry

China's new energy vehicle (NEV) industry, which survives with powerful policy intervention and fostering, is an important branch of Chinese green energy policy revolution against climate change and circumstance issues. In the study, the roadmap of China's policy exploration on developing China's NEV industry within the time window of 2001–2020 was investigated systematically. Powerful policy intervention plays an important role in initializing the framework of China's NEV industry under the comprehensive situation when China's innovation capability and automobile technology were both at unsatisfactory state. China's policy of developing NEV market demonstrates that intense government intervention is necessary and successful at the starting stage of the NEV industry. Delicate balance between governmental intervention and market self-adjustment should be intensified by suitable policies. The pilot innovations and the serious lessons of China's policy explorations are of both practical and research significance for other developing countries.     

Optimal policy of energy innovation in developing countries: Development of solar PV in Iran

The purpose of this study is to apply managerial economics and methods of decision analysis to study the optimal pattern of innovation activities for development of new energy technologies in developing countries. For this purpose, a model of energy research and development (R&D) planning is developed and it is then linked to a bottom-up energy-systems model. The set of interlinked models provide a comprehensive analytical tool for assessment of energy technologies and innovation planning taking into account the specific conditions of developing countries. An energy-system model is used as a tool for the assessment and prioritization of new energy technologies. Based on the results of the technology assessment model, the optimal R&D resources allocation for new energy technologies is estimated with the help of the R&D planning model. The R&D planning model is based on maximization of the total net present value of resulting R&D benefits taking into account the dynamics of technological progress, knowledge and experience spillovers from advanced economies, technology adoption and R&D constraints. Application of the set of interlinked models is explained through the analysis of the development of solar PV in Iranian electricity supply system and then some important policy insights are concluded.     

Spatial misfits in a multi-level renewable energy policy implementation process on the Small Island State of Malta

One of the priorities of energy policies of the European Union (EU) is to generate 20% of EU's total energy consumption from renewable energy (RE) sources by 2020. The EU policy framework mainly emphasizes economical and technical aspects of RE sources, and promotes large scale projects. However the local implementation of RE EU policies can lead to spatial misfits if the policy implementation neglects the peculiarities of the place. It is important to understand the misfits and relationship between the EU RE policies and the local implementation process, as misfits can affect the policy implementation process and subsequently policy outcomes can be different from those intended, leading to inapt or inapplicable measures. This article presents findings of a qualitative in-depth study of Malta’s RE policy implementation. The paper shows that planning of central large-scale RE projects in Malta provokes land and marine use conflicts and can cause difficulties in implementation. The concerned key actors implement the policies according to their motivation, perception, and capacity, and the context in which they are embedded. Hence, both the EU RE policy framework and the national interaction process influence the implementation process, which can lead to spatial mismatches.     

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.     

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.     

Building a low carbon society

This paper presents the strategy of the European Union in the field of energy and climate change. At the heart of the package are three commitments to be met by 2020: to reduce greenhouse gas emissions by at least 20%, to ensure that 20% of final energy consumption is met with renewable sources, and to raise energy efficiency by 20%. This strategy is based on the scientific consensus drawn by the International Panel for Climate Change, and implements the EU political strategy to limit the anthropogenic temperature rise to no more than 2 °C. A Directive for the geological storage of CO₂ is another integral part of the package. This should enable the development and subsequent deployment of zero emission power plants. From a research and technology perspective, the Strategic Energy Technology Plan (SET-Plan) lists several energy technologies which will be required to reconcile economic growth and a vision of a decarbonised society. The EU climate and energy package and the SET-Plan are part of the solution both to the climate crisis and to the current economic and financial crisis. They represent a green “new deal” which will enhance the competitiveness of EU industry in an increasingly carbon-constrained world.     

Policies for the transition towards a hydrogen economy: the EU case

This paper reviews the current EU policy framework in view of its impact on hydrogen and fuel cell development. It screens EU energy policies, EU regulatory policies and EU spending policies. Key questions addressed are as follows: to what extent is the current policy framework conducive to hydrogen and fuel cell development? What barriers and inconsistencies can be identified? How can policies potentially promote hydrogen and fuel cells in Europe, taking into account the complex evolution of such a potentially disruptive technology? How should the EU policy framework be reformed in view of a strengthened and more coherent approach towards full deployment, taking into account recent technology-support activities?     

试论可再生能源技术在农村地区推广的市场化前景

我国农村可再生能源技术的市场化仍然面临诸多障碍,但随着可再生能源产业政策体系的完善,融资渠道的多元化和相关服务体系的建立,可再生能源技术推广的市场环境将会得到进一步改善.我国主要可再生能源技术在农村地区推广的市场化前景广阔,未来工作的关键是抓好政策制定、扩大宣传、降低成本和积极进行项目示范.     

Methodological proposal for territorial distribution of the percentage reduction in gross inland energy consumption according to the EU energy policy strategic goal

A 20% reduction in the consumption of energy is one of the main goals of the European Union’s (EU) 20/20/20 Energy Strategy. But the uniform application of this overall goal to all of the countries is neither fair nor equitable, as it does not take into consideration the characteristics of the energy system in each Member State. This article therefore proposes a nonlinear distribution methodology with objective, dynamic goals for reducing gross inland energy consumption, according to the context and characteristics of each member state. We hope it will open discussion on how these overall goals can be weighted. Then we analyse the situation of the energy indicators related to energy efficiency in the reference year (2005) used by the EU for reaching its goal of reducing the gross inland consumption by 20% by 2020, and its progress from 1996 to 2007. Finally, the methodology proposed is applied to the year 2020 on the NUTS0 territorial level, that is, to members of the EU, according to the EUROSTAT Nomenclature of Territorial Units for Statistics (NUTS). Weighting is done based on energy intensity, per capita gross inland consumption and per capita energy intensity in two scenarios, the EU-15 and EU-27.     

Patterns of technological innovation and evolution in the energy sector: A patent-based approach

Given the ever-increasing pace and complexity of technological innovation in the energy sector, monitoring technological changes has become of strategic importance. One of the most common techniques for technology monitoring is patent analysis, which enables the identification of technological trends over time. However, few previous studies have carried out patent analysis in the energy sector. This study aims to explore patterns of innovation and of evolution in energy technologies, particularly focusing on similarities and differences across technologies. For this purpose, we first defined the relevant energy technologies and extracted the associated patent data from the United States Patents and Trademark Office (USPTO) and then adopted six patent indices and developed six patent maps to analyze their innovation characteristics. We then clustered energy technologies with similar characteristics, so defining innovation categories, and analyzed the changes in these characteristics over time to define their evolution categories. As one of the few attempts to investigate the overall trends in the energy sector's innovation and evolution, this study is expected to help develop an in-depth understanding of the energy industry, which will be useful in establishing technology strategies and policy in this rapidly changing sector.     

EU renewable energy support policy: Faith or facts?

The recent EU Commission proposal for promoting the supply of power from renewable energy sources was originally based on a pan-European, harmonised tradable green certificate (TGC) scheme. We suggest, on the basis of a multi-disciplinary analysis, that a pan-EU TGC system is not the way forward for Europe. It is vital that the Commission (and the majority of Member States) avoids implementation of such policy designs put forward by a coalition of vested interests. They should instead look at, and act upon, the available evidence from those countries that have experimented with TGCs (e.g. Flanders, UK and Sweden) and design policies that stand a better chance of meeting the criteria of effectiveness, efficiency and equity. In particular, the policies must enable EU to meet the immense innovation/industrialisation challenge by inducing the development of a capital goods industry that can, eventually, diffuse a broad range of technologies that use renewable energy sources. Only then we can acquire an ability to implement an industrial revolution in the energy system in a way that broadly meets the criteria of effectiveness and dynamic efficiency.     

A model-based assessment of the impact of revitalised R&D investments on the European power sector

This paper presents an analysis of the effect of enhanced research and development (R&D) efforts for a set of low-carbon power technologies on the development of the European energy sector. It applies a methodology using the concept of Two-Factor-Learning, which quantitatively links trends in technology cost to both accumulated R&D investments and production volumes. The impacts of the latter on the energy sector are then simulated in a consistent manner with the POLES global energy model. On this basis, it compares the total system costs of an assumed increase in worldwide R&D investments that for the EU are in line with proposals made in its European Strategic Energy Technology Plan to a baseline development. It finds that an increase in research efforts at a global level will contribute to reducing the costs of currently less mature low-carbon technologies, thus accelerating their market entry. When comparing two scenarios that both fulfil the EU's 2020 energy and climate objectives and differing only in their R&D investment levels, the reduced technology costs allow EU support policies for renewables and carbon values to be reduced, and the cumulative (discounted) benefit of the accelerated research efforts is positive in the long term.