A review on energy scenario and sustainable energy in Indonesia

The global energy consumption is likely to grow faster than the population growth. The fuel consumption was growing from 6630 million tons of oil equivalents (Mtoe) in 1980 to 11,163 Mtoe in 2009. This projected consumption will increase 1.5% per year until 2030 and reach 16,900 Mtoe and the main drivers of this growth are mostly developing countries in Asia. Indonesia is one of the developing countries and energy supply is an important factor for all-around development. The country's energy consumption still depends on non-renewable energy such as crude oil, coal and natural gas as sources of energy. Utilization of fossil fuel continuously contributes to huge amount of greenhouse gases emission that leads to climate change. Facing such an unfavorable situation, the government of Indonesia prioritizes on energy supply securities by diversification of energy resources. The energy mixes in Indonesia based on five main resources; these are crude oil, natural gas, coal, hydropower, and renewable energy. Although the country encourages utilizing renewable energy, the contribution is only around 3%. Considering natural condition and geography, this country is blessed with great potential of renewable energy such as solar energy, wind energy, micro hydro and biomass energy. Noting the potential of renewable and sustainable energy resources in the country, the government must pay more attention on how to utilize it. Many efforts have been done to promote renewable energy such as to create energy policy and regulations, yet it still did not give any satisfactory result. Government, non-government agencies and the public should take a more proactive step to promote and use renewable energy in order to achieve the secure and environmentally sustainable energy resources.     

Key challenges to expanding renewable energy

The key advantage of renewables is that they are free of direct pollution and carbon emissions. Given concern over global warming caused by carbon emissions, there are substantial policy efforts to increase renewable penetrations. The purpose of this paper is to outline and evaluate the challenges presented by increasing penetrations of renewable electricity generation. These generation sources primarily include solar and wind which are growing rapidly and are new enough to the grid that the impact of high penetrations is not fully understood. The intrinsic nature of solar and wind power is very likely to present greater system challenges than “conventional” sources. Within limits, those challenges can be overcome, but at a cost. Later sections of the paper will draw on a variety of sources to identify a range of such costs, at least as they are foreseen by researchers helping prepare ambitious plans for grids to obtain high shares (30–50%) of their megawatt hours from primarily solar and wind generation. Energy poverty issues are outlined and related to renewable costs issues.     

Energy consumption projection of Nepal: An econometric approach

In energy dependent economies, energy consumption is often linked with the growth in Gross Domestic Product (GDP). Energy intensity, defined herewith, as the ratio of the total primary energy consumption (TPE) to the GDP, is a useful concept for understanding the relation between energy demand and economic development. The scope of this article is to assess the future primary energy consumption of Nepal, and the projection is carried out along with the formulation of simple linear logarithmic energy consumption models. This initiates with a hypothesis that energy consumption is dependent with the national macro-economic parameters. To test the hypothesis, nexus between energy consumption and possible determinant variables are examined. Status of energy consumption between the period of 1996 and 2009, and for the same period, growth of economic parameters are assessed. Three scenarios are developed differing from each other on the basis of growth rates of economic indicators: total GDP, GDP-agriculture, GDP-trade, GDP-industry, and other variables including growth in private consumptions, population, transport vehicles numbers, prices of fossil fuels etc. Scenarios are: Business as Usual (BAU), Medium Growth Scenario (MGS) and High Growth Scenario (HGS). Energy consumption in all the sectors and for all fuel types are not statistically correlated with every economic parameters tested in the assessment. Hence, the statistically correlated models are included in the prognosis of energy consumption. For example, the TPE consumption and electricity consumption, both are significantly dependent with the total GDP and population growth. Likewise, fuel wood consumption is significantly dependent with the growth in rural population and private consumptions. In BAU the estimated electricity consumption in 2030 would be 7.97 TWh, which is 3.47 times higher than that of 2009. In MGS, the total electricity consumption in 2030 is estimated to increase by a factor of 5.71 compared to 2009. Likewise, in HGS, electricity consumption would increase by 10-fold until 2030 compared to 2009, demanding installed capacity of power plant at 6600 MW, which is only from hydro power and other centralised system.     

Electricity sector in Mexico: Current status. Contribution of renewable energy sources

The challenge facing the world electricity sector is the cost incurred in maintaining the system and seeing to the environmental effects it causes. In Mexico the grid is supplied by thermal plants fed by oil products. Its great potential of renewable energies clearly shown in studies by national and international scholars has led the government to become more committed to take advantage of these energies. The goal is to reduce dependence on fossil fuels to generate electricity and to reduce the emission of greenhouse gases. In this article we analyse the current state of renewable energies, the conditions needed to foster them and the legislative changes already introduced to promote their greater part in the national electricity grid.     

China’s renewable energy policy: Commitments and challenges

The passing of the Renewable Energy Law (REL) in 2005 demonstrated China’s commitment to renewable energy development. In the 3 years after the REL, China’s renewable electricity capacity grew rapidly. From 2006 to 2008, China’s wind capacity installation more than doubled every year for 3 years in a row. However, three facts prevent us from being optimistic about China’s renewable electricity future. First, considered as a share of total capacity, renewable electricity capacity is decreasing instead of increasing. This is due simply to the rapid growth of fossil fuel capacity. Second, a significant amount of renewable generation capacity is wasted because it is not connected to the electricity grid. Finally, renewable electricity plants are running at a low level of efficiency. Based on an in-depth analysis of China’s existing renewable energy policy, we suggest that these challenges should be dealt with by introducing a market-based mandatory renewable portfolio requirement coupled with strong regulatory monitoring of grid enterprises.     

Biogas: A promising renewable technology and its impact on rural households in Nepal

Nepal, one of the least developed countries, is characterized by very low per capita energy consumption. Because of a lack of other commercial sources of energy, the country relies heavily on traditional fuel source, especially firewood. In order to solve the energy problem in rural areas, the country initiated production and distribution of several renewable energy technologies. Among several technologies, biogas has been proved to be viable and emerged as a promising technology. It has been one of the most successful models for the production of clean, environmental friendly, cost effective source of energy and has multiple benefits. In this paper we present the current state and discuss benefits of the biogas technology in Nepal. Improved health, increased crop productivity, saved time for women are some of the major benefits to the users. It provides economic benefit to the country through reduced deforestation and carbon trading. In addition, by reducing green house gas emission, the technology helps in mitigating global warming and climate change. Thus biogas is a renewable, sustainable and clean source of energy that provides multiple benefits; locally and globally. With some exception, cattle dung has been used primarily as an input and the technology is limited to households only. More systematic and comprehensive study supported by research and development is required to use other degradable waste such as municipal waste to produce biogas on a large scale.     

An energy pricing scheme for the diffusion of decentralized renewable technology investment in developing countries

The purpose of this paper is to investigate price support for market penetration of renewable energy in developing nations through a decentralized supply process. We integrate the new decentralized energy support: renewable premium tariff, to analyze impacts of tariff incentives on the diffusion of renewable technology in Senegal. Based on photovoltaic and wind technologies and an assessment of renewable energy resources in Senegal, an optimization technique is combined with a cash flow analysis to investigate investment decisions in renewable energy sector. Our findings indicate that this support mechanism could strengthen the sustainable deployment of renewable energy in remote areas of Senegal. Although different payoffs emerged, profits associated with a renewable premium tariff are the highest among the set of existing payoffs. Moreover in analyzing impacts of price incentives on social welfare, we show that price tariffing schemes must be strategically scrutinized in order to minimize welfare loss associated with price incentives. Finally we argue that a sustainable promotion of incentive mechanisms supporting deployment of renewable technology in developing nations should be carried out under reliable institutional structures. The additional advantage of the proposed methodology is its ability to integrate different stakeholders (producers, investors and consumers) in the planning process.     

Renewable energy in the Palestinian Territories: Opportunities and challenges

The Palestinian Territories relies on Israel for 100% of its fossil fuel imports and for 87% of its electricity imports. Total energy consumption in the Palestinian Territories is the lowest in the region and costs more than anywhere else in the Middle East. The purpose of this paper is to present the current energy situation in the Palestinian Territories, evaluate the potential of renewable energies in meeting part of the energy demand and discuss the challenges and benefits of using these types of energies. It is shown that the main renewable energy sources in the Palestinian Territories are solar, wind and biomass. Using the available renewable energy sources in the Palestinian Territories may significantly decrease the energy reliance on neighboring countries and improve the Palestinian population's access to energy. It is estimated that solar sources have the potential to account for 13% of electricity demand and wind energy for 6.6%. The conversion of animal waste into biogas has the potential to meet the needs of 20% of the rural population. The conversion of unused agricultural residue into biodiesel could replace 5% of the imported diesel.     

Australian renewable energy policy: Barriers and challenges

Effective policy and regulatory frameworks are paramount to incentivising the deployment of renewable energy to achieve long term reductions in carbon emissions. Australia's renewable energy policy has taken significant steps towards encouraging the deployment of lower-emission energy generation. Significant policy barriers still exist at the federal and state levels, however, which have reduced the effectiveness of a concerted national effort to deploy renewables. The current policy landscape has favoured mature technologies which present the lowest investment risk at the expense of emerging options which may present greater efficiency and emissions reduction gains. The lack of support for emerging technologies delays their effective deployment and the accumulation of highly skilled human capital, until the medium to long term. This paper outlines the key policy frameworks, incentives and regulatory environment which encompasses the renewable energy sector, and presents a critical analysis of the barriers faced by the industry.     

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.     

Green hydrogen potentials from surplus hydro energy in Nepal

This paper studies the potentials of green hydrogen production from hydropower energy and its application in electricity regeneration and replacement of petroleum products from the transportation sector in Nepal. The potential surplus hydroelectric energy, and hydrogen production potential from the surplus energy considering different scenarios, is forecasted for the study period (2022–2030). The results showed that hydrogen production potential ranges from 63,072 tons to 3,153,360 tons with the utilization of surplus energy at 20% and 100% respectively, in 2030. The economic analysis of hydrogen from hydropower projects that electricity is valued based on per kg of hydrogen when the surplus electricity is provided at feasible lower price values compared to the US $1.17. This study concludes that hydrogen production from spilled hydro energy and its use in the transportation sector and independent electricity generation is a niche opportunity to lead the country towards sustainable energy solutions and an economy running on hydrogen.     

Global warming and renewable energy sources for sustainable development in Turkey

Turkey, with its young population and growing energy demand per person, its fast growing urbanization, and its economic development, has been one of the fast growing power markets of the world for the last two decades. It is expected that the demand for electric energy in Turkey will be 300 billion kWh by the year 2010 and 580 billion kWh by the year 2020. Turkey is heavily dependent on expensive imported energy resources that place a big burden on the economy and air pollution is becoming a great environmental concern in the country. In this regard, renewable energy resources appear to be the one of the most efficient and effective solutions for clean and sustainable energy development in Turkey. Turkey's geographical location has several advantages for extensive use of most of these renewable energy sources. This article presents a review of the potential and utilization of the renewable energy sources in Turkey.     

Role of renewable energy technologies in rural communities' adaptation to climate change in Nepal

The aim of this paper is to analyze the role of renewable energy technologies (RETs) such as biogas, improved cooking stoves (ICSs), micro hydro (MH) and solar power (SP) in helping rural communities in Nepal to adapt to climate change. The analysis considers the energy efficiency of different RETs as well as their socio-economic and environmental impacts. The efficient use of biomass in new technology, such as biogas and ICSs for cooking, has increased energy security and reduced the negative effects of traditional biomass usage. MH and SP systems are replacing candles and kerosene lamps, and are the most promising RET models for electricity generation in rural Nepal. The improved illumination from these technologies also produces better education, health, environments, and social harmony in rural communities. This study uses the Long-range Energy Alternatives Planning model (LEAP) model to develop a plan for long-term RETs use in Nepal, and specifically focuses on household energy use in rural areas. It assesses the role of biogas and ICSs in rural communities and climate change adaptation in Nepal, along with the potential role of MH and SP technologies. According to the LEAP analysis, the planned implementation of MH for 20-year long-term will result in the reduction of 2.553 million tons of CO₂ emissions. Similarly SP, biogas, and ICSs will result in a reduction in CO₂ emissions of 5.214 million tons, 35.880 million tons, and 7.452 million tons, respectively.     

The role of hydrogen and fuel cells to store renewable energy in the future energy network – potentials and challenges

The penetration of renewable energy sources is expected to rapidly increase from 15% to 50% in 2050 due to their vital contribution to the global energy requirements, sustainability and quality of life in economical, environmental and health aspects. This huge rise highlights the necessity of development of energy storage systems, especially for intermittency renewable energies such as solar photovoltaic and wind turbine, in order to balance the energy network. In this study, renewable energy options including pumped hydro, pressurized air, flywheels, Li ion batteries, hydrogen and super-capacitors are compared based on a specific set of criteria. The criteria considered are energy/power density, ease of integration with the existing energy network, cost effectiveness, durability, efficiency and safety. Our study showed that storing renewable energy sources in the form of hydrogen through the electrolysis process is ranked as the most promising option considering the mentioned criteria. It brings about several benefits suggesting that hydrogen and fuel cells are promising contributors towards a more sustainable future, both in energy demand and environmental sustainability.     

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.     

Technological learning and renewable energy costs: implications for US renewable energy policy

This paper analyzes the relationship between current renewable energy technology costs and cumulative production, research, development and demonstration expenditures, and other institutional influences. Combining the theoretical framework of ‘learning by doing’ and developments in ‘learning by searching’ with the fields of organizational learning and institutional economics offers a complete methodological framework to examine the underlying capital cost trajectory when developing electricity cost estimates used in energy policy planning models. Sensitivities of the learning rates for global wind and solar photovoltaic technologies to changes in the model parameters are tested. The implications of the results indicate that institutional policy instruments play an important role for these technologies to achieve cost reductions and further market adoption.     

Bond financing for renewable energy in Asia

Addressing the financing gap for renewable energy (RE) projects in Asia is critical to ensure that the rapidly increasing energy needs could be met sustainably. This paper explores the cause of the financing gap in Asia and proposes the use of bond financing to address the financing gap. Specifically, three fixed income instruments, namely local currency denominated (LCY) corporate bonds, asset backed project bonds and financial green bonds, will be assessed. Whilst the potential for these three instruments to mobilize large flows of private sector financing is great, key supportive policies aimed at reducing the capital market bias for conventional power generation technologies and supportive RE policies are required. Another key aspect would be the necessary deepening of local and regional fixed income markets before such capital market instruments are able to play a big role.     

An analysis of feed-in tariff remuneration models: Implications for renewable energy investment

Recent experience from around the world suggests that feed-in tariffs (FITs) are the most effective policy to encourage the rapid and sustained deployment of renewable energy. There are several different ways to structure a FIT policy, each with its own strengths and weaknesses. This paper presents an overview of seven different ways to structure the remuneration of a FIT policy, divided into two broad categories: those in which remuneration is dependent on the electricity price, and those that remain independent from it. This paper examines the advantages and disadvantages of these different FIT models, and concludes with an analysis of these design options, with a focus on their implications both for investors and for society.     

Current utilization and future prospects of emerging renewable energy applications in Canada

Canada has vast renewable energy resources due to its extensive geography and traditionally they have played an important role, particularly prior to the turn of the 20th century. Public interest in new renewable energy technologies (RETs) emerged and grew during the oil shocks of the 1970s and early 1980s. Even though many Canadian provinces had been deriving most of their electricity from hydroelectric power, the first oil crises of the 1970s ignited a strong interest in all forms of renewable energy. Though Canada has huge prospects for low-impact RETs, it is falling behind most industrialized nations in the expansion of these technologies due to a lack of supporting market structures and the absence of appropriate government policies and initiatives. This review focuses on only applications of low-impact emerging RETs that refer to wind, solar, small hydro, geothermal, marine and modern biomass energy. Today, these technologies are mostly in the dissemination, demonstration and early stage of commercialization phase in Canada and currently they contribute less than 1% of the total primary energy consumption. It is evident from the past experience of Europe and Japan that environmentally benign RETs can contribute significantly toward Canada’s Kyoto target of reducing greenhouse gas emissions by displacing the use of conventional fossil fuels, and help Canada take an essential step toward a sustainable energy future. In this paper, the current energy utilization scenario of Canada has been analyzed and an array of emerging RET applications has been presented under the category of: (i) green power technologies; (ii) green heat technologies; and (iii) green fuel technologies.     

Opportunities and challenges for renewable energy policy in China

Renewable energy is the inevitable choice for sustainable economic growth, for the harmonious coexistence of human and environment as well as for the sustainable development. Government support is the key and initial power for developing renewable energy. In this article, an overall review has been conducted on renewable energy development policy (including laws and regulations, economic encouragement, technical research and development, industrialized support and government model projects, etc.) in China. On this basis, a systematic analysis has been conducted on the disadvantages of renewable energy development policy. On the point of long-term effective system for renewable energy development, a series of policy advice has been offered, such as strengthening the policy coordination, enhancing regional policy innovation, echoing with clean development mechanism, implementing process management, constructing market investment and financing system. It is expected that the above advices could be helpful to ever-improvement of renewable energy development policy.