The importance of comprehensiveness in renewable electricity and energy-efficiency policy

Based on extensive research interviews and supplemented with a review of the academic literature, this article assesses the best way to promote renewable energy and energy efficiency. It begins by briefly laying out why government intervention is needed, and then details the four most favored policy mechanisms identified by participants: eliminating subsidies for conventional and mature electricity technologies, pricing electricity accurately, passing a national feed-in tariff, and implementing a nationwide systems benefit fund to raise public awareness, protect lower income households, and administer demand side management programs. Drawing mostly from case studies in the United States, the article also discusses why these policy mechanisms must be implemented comprehensively, not individually, if the barriers to renewables and energy efficiency are to be overcome.     

Transforming shortcomings into opportunities: Can market incentives solve Lebanon's energy crisis?

Over the past decades Lebanon's energy sector has been largely ignored and this has led to high economic and environmental costs. The sector is characterized by electricity poverty, an expanding and mainly unregulated transport sector and a lack of energy savings spanning through all sectors of the economy. Recently, the Government of Lebanon has committed to increase the share of renewable energy to 10% of the total energy supply by 2013 and to 12% by the year 2020; it also aims at reducing energy consumption by 6% by the year 2013. This paper aims at contributing to the formulation of a more comprehensive energy strategy for Lebanon by analyzing the recent changes in policy direction and by recommending legal, regulatory and policy measures in order to transform current shortcomings into opportunities allowing the country to become a regional ‘success story’ in the deployment of renewable energy and energy efficiency.     

Energy efficiency and renewables policies: Promoting efficiency or facilitating monopsony?

The cliché in the electricity sector, the “cheapest power plant is the one we don’t build,” neglects the benefits of the energy that plant would generate. That economy-wide perspective need not apply in considering benefits to only consumers if not building that plant was the exercise of monopsony power. A regulator maximizing consumer welfare may need to avoid rationing demand at monopsony prices. Subsidizing energy efficiency to reduce electricity demand at the margin can solve that problem, if energy efficiency and electricity use are substitutes. Renewable energy subsidies, percentage use standards, or feed in tariffs may also serve monopsony as well with sufficient inelasticity in fossil fuel electricity supply. We may not observe these effects if the regulator can set price as well as quantity, lacks buyer-side market power, or is legally precluded from denying generators a reasonable return on capital. Nevertheless, the possibility of monopsony remains significant in light of the debate as to whether antitrust enforcement should maximize consumer welfare or total welfare.     

Analysing the interactions between renewable energy promotion and energy efficiency support schemes: The impact of different instruments and design elements

CO₂ emissions reduction, renewable energy deployment and energy efficiency are three main energy/environmental goals, particularly in Europe. Their relevance has led to the implementation of support schemes in these realms. Their coexistence may lead to overlaps, synergies and conflicts between them. The aim of this paper is to analyse the interactions between energy efficiency measures and renewable energy promotion, whereas previous analyses have focused on the interactions between emissions trading schemes (ETS) and energy efficiency measures and ETS and renewable energy promotion schemes. Furthermore, the analysis in this paper transcends the “certificate” debate (i.e., tradable green and white certificates) and considers other instruments, particularly feed-in tariffs for renewable electricity. The goal is to identify positive and negative interactions between energy efficiency and renewable electricity promotion and to assess whether the choice of specific instruments and design elements within those instruments affects the results of the interactions.     

Financial impact of energy efficiency under a federal combined efficiency and renewable electricity standard: Case study of a Kansas “super-utility”

Historically, local, state and federal policies have separately promoted the generation of electricity from renewable technologies and the pursuit of energy efficiency to help mitigate the detrimental effects of global climate change and foster energy independence. Federal policymakers are currently considering and several states have enacted a combined efficiency and renewable electricity standard which proponents argue provides a comprehensive approach with greater flexibility and at lower cost. We examine the financial impacts on various stakeholders from alternative compliance strategies with a Combined Efficiency and Renewable Electricity Standard (CERES) using a case study approach for utilities in Kansas. Our results suggest that an investor-owned utility is likely to pursue the most lucrative compliance strategy for its shareholders—one that under-invests in energy efficiency resources. If a business model for energy efficiency inclusive of both a lost fixed cost recovery mechanism and a shareholder incentive mechanism is implemented, our analysis indicates that an investor-owned utility would be more willing to pursue energy efficiency as a lower-cost CERES compliance strategy. Absent implementing such a regulatory mechanism, separate energy efficiency and renewable portfolio standards would improve the likelihood of reducing reliance on fossil fuels at least-cost through the increased pursuit of energy efficiency.     

Energy [R]evolution 2008—a sustainable world energy perspective

The Energy [R]evolution 2008 scenario is an update of the Energy [R]evolution scenario published in 2007. It takes up recent trends in global socio-economic developments, and analyses to which extent they affect chances for achieving global climate protection targets. The main target is to reduce global CO₂ emissions to 10 Gt per year in 2050, thus limiting global average temperature increase to 2 °C and preventing dangerous anthropogenic interference with the climate system. A review of sector and region specific energy efficiency measures resulted in the specification of a global energy demand scenario incorporating strong energy efficiency measures. The corresponding energy supply scenario has been developed in an iterative process in close cooperation with stakeholders and regional counterparts from academia, NGOs and the renewable energy industry. The Energy [R]evolution scenario shows that renewable energy can provide more than half of the world's energy needs by 2050. Developing countries can virtually stabilise their CO₂ emissions, whilst at the same time increasing energy consumption through economic growth. OECD countries will be able to reduce their emissions by up to 80%.     

The delivery of low-cost,low-carbon rural energy services

The provision of both electrical and mechanical energy services can play a critical role in poverty alleviation for the almost two billion rural users who currently lack access to electricity. Distributed generation using diesel generators remains a common means of electricity provision for rural communities throughout the world. Due to rising fuel costs, the need to address poverty, and consequences of global warming, it is necessary to develop cost efficient means of reducing fossil fuel consumption in isolated diesel microgrids. Based on a case study in Nicaragua, a set of demand and supply side measures are ordered by their annualized costs in order to approximate an energy supply curve. The curve highlights significant opportunities for reducing the costs of delivering energy services while also transitioning to a carbon-free electrical system. In particular, the study demonstrates the significant cost savings resulting from the implementation of conventional metering, efficient residential lighting, and electricity generation using renewable energy sources.     

From fluid milk to milk powder: Energy use and energy efficiency in the European dairy industry

In this paper, we conduct a cross-country analysis of energy consumption and energy efficiency for the dairy industry in four European countries. Changes in energy efficiency were monitored in two different ways. One way is to look at the energy use by tonne of milk processed by dairies (EE_Ip1$\mathit{EE}{I}_{p1}$). Another way is by comparing the actual energy use with the energy that would have been used if no changes in energy efficiency would have taken place (EE_Ip2$\mathit{EE}{I}_{p2}$). A characteristic of EE_Ip2$\mathit{EE}{I}_{p2}$ is that it corrects for differences in product mix among countries and in time. We found that changes in production mix are important in three of the four countries studied and that EE_Ip2$\mathit{EE}{I}_{p2}$ should be preferred when comparing levels of energy efficiency among countries or when there are significant changes in product mix. Once changes in product mix have been taken into account, our results show that France, Germany, the Netherlands and the United Kingdom have reduced their values in EE_Ip2$\mathit{EE}{I}_{p2}$, respectively by −0.4%, −2.1%, −1.2% and −3.8% per annum. The results also show that the British, German and Dutch dairy industries have converged towards similar (lower) values in their energy efficiency indicators and that the French dairy industry would save 30% if were to converge to similar values of EE_Ip$\mathit{EE}{I}_p$ as the ones obtained for Germany or the United Kingdom.     

Renewable and hydrogen energy integrated house

The residential sector accounts for about a third of the total world energy consumption. Energy efficiency, Renewable Energy Sources and Hydrogen can play an important role in reducing the consumptions and the emissions and improving the energy security if integrated (Efficiency, Res, Hydrogen) systems are developed and experimented. The paper analyzes a real residential 100 square meters house, where energy efficiency measures and RES technologies have been applied, sizing a hydrogen system (electrolyzer, metal hydrides and fuel cell) for power backup, taking into consideration its dynamic behavior, experimentally determined. The technologies used are already available in the market and, except hydrogen technologies, sufficiently mature. Through energy efficiency technologies (insulation, absorbers, etc), the maximum electrical and thermal power needed decreases from 4.4 kW_e to 1.7 kW_e (annual consumption from 5000 kWh to 1200 kWh) and from 5.2 kW_t to 1.6 kW_t (annual consumption from 14,600 kWh to 4500 kWh) respectively. With these reduced values it has been possible to supply the consumptions entirely by small photovoltaic and solar thermal plants (less than 10 m² each). The hydrogen backup even if remains the most expensive (versus traditional batteries and gasoline generator), satisfying all the electric needs for one day, increases the security and allows net metering. Moreover the low-pressure hydrogen storage system through metal hydrides guarantees system safety too. Finally the system modularity can also satisfy higher energy production.     

Balancing energy and environment: The effect and perspective of management instruments in China

The rapid growth of Chinese economy has tremendously stimulated the expansion of energy consumption. The structure of energy consumption in China is featured with the coal domination. Air pollution is becoming increasingly severe. As a result, we are confronted with the extremely arduous task to balance energy consumption and environmental protection. In order to coordinate the relationship between energy consumption and environmental protection in a strategic way, this paper analyzes comprehensively the instruments, effects and perspectives of energy-related environmental management. Meanwhile, this paper illustrates the barriers and challenges facing the energy and energy-related environmental management in China, and suggests a priority strategy of management instrument, mainly composed of energy-saving, optimization of energy structure, promulgation of environmental standards, advance in environmental technologies, internalization of environmental costs, establishment of a public benefit fund and adoption of a Renewable Portfolio System.     

Putting renewables and energy efficiency to work: How many jobs can the clean energy industry generate in the US?

An analytical job creation model for the US power sector from 2009 to 2030 is presented. The model synthesizes data from 15 job studies covering renewable energy (RE), energy efficiency (EE), carbon capture and storage (CCS) and nuclear power. The paper employs a consistent methodology of normalizing job data to average employment per unit energy produced over plant lifetime. Job losses in the coal and natural gas industry are modeled to project net employment impacts. Benefits and drawbacks of the methodology are assessed and the resulting model is used for job projections under various renewable portfolio standards (RPS), EE, and low carbon energy scenarios We find that all non-fossil fuel technologies (renewable energy, EE, low carbon) create more jobs per unit energy than coal and natural gas. Aggressive EE measures combined with a 30% RPS target in 2030 can generate over 4 million full-time-equivalent job-years by 2030 while increasing nuclear power to 25% and CCS to 10% of overall generation in 2030 can yield an additional 500,000 job-years.     

Sustainable application of renewable sources in water pumping systems: Optimized energy system configuration

Eighteen years ago, in Portugal, the expenses in a water supply system associated with energy consumption were quite low. However, with the successive crises of energy fuel and the increase of the energy tariff as well as the water demand, the energy consumption is becoming a larger and a more important part of the total budget of water supply pumping systems. Also, new governmental policies, essentially in developed countries, are trying to implement renewable energies. For these reasons, a case-study in Portugal of a water pumping system was analysed to operate connected to solar and wind energy sources.     

A pre-feasibility case study on integrated resource planning including renewables

In recent years, economical and environmental constraints force governments and energy policy decision-makers to change the prominent characteristics of the electricity markets. Accordingly, depending on local conditions on the demand side, usage of integrated resource planning approaches in conjunction with renewable technologies has gained more importance. In this respect, an integrated resource planning option, which includes the design and optimization of grid-connected renewable energy plants, should be evaluated to facilitate a cost-effective and green solution to a sustainable future.     

Greenhouse gas emission reduction perspectives in the Baltic States in frames of EU energy and climate policy

The goal of this paper is to estimate the perspectives of the Baltic States: Estonia, Latvia and Lithuania on meeting the new European Union climate commitments, i.e., to reduce greenhouse gas emissions by 20% to the year 2020 in comparison with 1990. This ambitious target could be reached based on other EU climate and energy package commitments: increase of the share of renewables and improvement of energy efficiency as tools for fulfilling the GHG emissions reduction target.The paper gives an overview on the current situation and future plans of the Baltic States in the field of energy efficiency, consumption of renewables and reduction of GHG emissions.     

Factors which influence Nova Scotia farmers in implementing energy efficiency and renewable energy measures

Improvements in energy efficiency and renewable energy use can reduce farm operating costs and reduce greenhouse gas (GHG) emissions. Responses (n=224, representing a 32% response rate) from a mail survey were used to assess use and interest in energy efficient and renewable energy options on farms in Nova Scotia, Canada. Energy efficiency options used the most were behavior, insulation, and lighting. Few farms used renewable energy options. Approximately 78% of farmers indicated an interest in implementing energy efficiency and renewable energy options. Interest varied by farm type and size. Interest increased with farm size. The two main efficiency options of interest were lighting (60.8%) and insulation (43.7%), while wind power development (55.5%) and solar water heating (24.5%) were the main renewable options of interest. Farmers concerned about power and equipment reliability were less likely to be interested in implementing options. Farmers concerned about the environment were more likely to be interested in implementing options. Current use of certain energy efficiency technologies, such as efficient lighting, influenced implementation interest.     

Looking into the Danish energy system: Lesson to be learned by other communities

Industrialization, development and social transformation has brought together issues of over exploitation of limited energy resource base (e.g. fossil fuel), accelerated threats of energy insecurity, and liberation of greenhouse gas emissions across the continents. The global challenge for the 21st century and way ahead is to find other means of satisfying energy needs, diversifying the energy supply, up-scaling the make-up of renewable energy to a greater extent, optimization of energy consumption and supply system. Denmark has been continuously moving towards optimization of energy production, usage and its overall management, during and even after the first global oil crisis. The country has been delivering its priority in the development of renewable energy and standing the country an energy self sufficient from last three decades. Country's overall consumption of energy has decreased than that of the decades of 1980 and 1990s, with wider range of energy mix and saving options. The Danish government has strategized to make the country fossil fuel free by 2050, where special attention and interventions is required to boost up its development of renewable energy in the country. The past efforts of the Danish government in the energy development has helped not only making the country ‘energy self sufficient’, but also lowering the level of carbon dioxide in the atmosphere. Danish energy policy and strategies have been found more conducive and reflective of the joint EU priorities on the matter of dealing with climate change and energy security. All the past progress and its allied policies seem to be quite supportive in fulfilling its strategies for greener future. This review paper will discuss on the past efforts of Danish government in energy management and highlights on some political initiatives, which have been realised to support the country moving towards clean and green energy future.     

The feasibility of renewable energies at an off-grid community in Canada

Three renewable energy technologies (RETs) were analyzed for their feasibility for a small off-grid research facility dependent on diesel for power and propane for heat. Presently, the electrical load for this facility is 115 kW but a demand side management (DSM) energy audit revealed that 15–20% reduction was possible. Downsizing RETs and diesel engines by 15 kW to 100 kW reduces capital costs by $27 000 for biomass, $49 500 for wind and $136 500 for solar.The RET Screen International 4.0^® model compared the economical and environmental costs of generating 100 kW of electricity for three RETs compared to the current diesel engine (0 cost) and a replacement ($160/kW) diesel equipment. At all costs from $0.80 to $2.00/l, biomass combined heat and power (CHP) was the most competitive. At $0.80 per liter, biomass’ payback period was 4.1 years with a capital cost of $1800/kW compared to wind's 6.1 years due to its higher initial cost of $3300/kW and solar's 13.5 years due to its high initial cost of $9100/kW. A biomass system would reduce annual energy costs by $63 729 per year, and mitigate GHG emissions by over 98% to 10 t CO₂ from 507 t CO₂. Diesel price increases to $1.20 or $2.00/l will decrease the payback period in years dramatically to 1.8 and 0.9 for CHP, 3.6 and 1.8 for wind, and 6.7 and 3.2 years for solar, respectively.     

Energy Policies of Gulf Cooperation Council (GCC) countries—possibilities and limitations of ecological modernization in rentier states

Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates are major oil and natural gas producing countries that make up the Gulf Cooperation Council. The six GCC countries fall in the top 25 countries of carbon dioxide emissions per capita and are perceived as the main actors blocking international climate change negotiations. The aim of this article is to discuss from a policy perspective the capacities of the GCC states to switch toward an ecological modernization of their energy sectors. At the beginning of the paper, I analyze the benefits of transforming oil wealth into funding for renewable energy and energy efficiency. After this, I discuss obstacles to such a transformation process based on the rentier states theory. Finally, I investigate governance of the GCC on all levels (international, regional, and local). The article shows that the GCC countries have recently adopted a more pro-active approach toward ecological modernization. This reorientation has not yet resulted in the development of consistent strategies and policies, however. The concluding assumption based on the concept of policy transfer is that pioneering projects such as Masdar City and innovative regulation like the green building code in Dubai will spread within the GCC.