Energy Blitz April-May 2013 issue

Page 1

II V

APRIL- MAY 2013




io n t u l o v gy oRveins r e n E ingAmory B. L t a r e l By Acce s ' a i s A efan

ing Green

St … ovacs a k r i a d T In By

Th & y g Ener

ank B d l r e Wo

ck.... a b h s 13 Fla 0 2 S WFE

27 30 32 37 45

6 9 13 18 22

y) Agenc y g r e e En ewabl g More n e R l in na rnatio bles Becom e t n I ( a IRENA riefRenew de i B Policy itive Worldw le et Comp newab

tial Re n e d i d Res

te onnec s C d i r G System y g r e En

s India' g n i h c wat eenly tiatives: RE k d l r i er, MN n t i Wo s i r n e i po w h, M Solar oq Abdulla o odels m Dr. Far y r e eliv ergy d n E ? l r al rgy fo ctor e n e te se inable de, Susta g the priva Ben Garsi d in involv Wilson an ma ht By Em in sig

o trix S a M y Energg s ' l i z a in Br a Här By G e

rd

s ache d a e me h


ENERGY

ITZ L B

APRIL-MAY 2013

Advisory Board Dr. A. Jagadeesh | India Dr. Bhamy Shenoy | USA Er. Darshan Goswami | USA Elizabeth H. Thompson | Barbados Pincas Jawetz | USA Ediorial Board Salman Zafar | India Editor & Publisher M. R. Menon Business & Media P. Roshini Book Design Shamal Nath Circulation Manager Andrew Paul Printed and Published by M.R.Menon at Midas Offset Printers, Kuthuparamba, Kerala Editorial Office 'Pallavi' Kulapully Shoranur 679122, Kerala (E-Mail: editor.energyblitz@gmail.com) Disclaimer: The views expressed in the magazine are those of the authors and the Editorial team | energy blitzdoes not take responsibility for the contents and opinions.energy blitz will not be responsible for errors, omissions or comments made by writers, interviewers or Advertisers.Any part of this publication may be reproduced with acknowledgment to the author and magazine. Registered and Editorial Office 'Pallavi, Kulapully, Shoranur 679122, Kerala, India Tel: +91-466-2220852/9995081018 E-mail: editor.energyblitz@gmail.com Web: energyblitz.webs.com

Our ailing planet Earth is hungry for energy and as a result the global energy demand is predicted to rise by a third by 2035. To meet this demand, governments are facing investment and infrastructure decisions on a scale that will define the development of generations to come. And with concerns about the environmental and economic sustainability of hydrocarbons growing, and the cost of renewable energy technologies falling, the world faces a historic choice. . Most countries are fossil fuel importers. Being dependant on fuel imports exposes economies to substantial supply insecurity and price volatility, and the cruel truth about this is that it is the economies and the people who can least afford it that end up paying the cost. As the world proceeds on 4 degree temperature-increase trajectory, we face severe impacts of climate change and the prospect of a global population reaching 8 billion by 2030, with a rapidly increasing energy demand. Meanwhile, the prospect of indigenous renewable resources capable of producing secure and sustainable energy is technically possible and economically feasible today. In the face of global economic uncertainty, investment in a new industry generating new employment and income, while creating the new economic infrastructure of the 21st century, has become increasingly an idea whose time has come. Globally, the renewable energy revolution is happening, and is here to stay. More than 120 countries have set renewable energy targets, 5 million people already work in the sector, and annual investment in renewables is predicted to range between US$ 300 billion and 1 trillion by 2020. But to achieve the 'Sustainable Energy for All' objective of doubling the share of renewable energy in the global energy mix by 2030, we need to accelerate the momentum of this paradigm shift. 75% of the annual onshore wind market is based in only 4 regions of the world: China, India, the USA, and Europe. Offshore wind is even more concentrated. Any regulatory uncertainty affecting one of these major markets can have a dramatic effect upon the entire global supply chain. The spread of wind to new markets is already starting to take place: 68 countries now boast above 10MW in wind capacity. All of us have an exciting opportunity ahead to put the world on a sustainable path while generating growth and prosperity. We invite you to contribute to help transform this vision we all share into a living reality This issue is the 1st part of the focus 'Global Renewable Energy Initiatives' We take this opportunity to thank the Reed Exhibitions, Dubai the organizers of World Future Energy Summit 2013 in Abu Dhabi, January 15-17, 2013 for giving us the opportunity to work closely with them as their India Media Partner.

Ramanathan Menon


Asia's Accelerating Energy Revolution By Amory B. Lovins

Largely unnoticed in the West, Asia's energy revolution is gathering speed. It's driven by the same economic and strategic logic that Rocky Mountain Institute's Reinventing Fire analysis and book showed could profitably shift the United States from fossil-fuel-based and nuclear energy to three-times-more-efficient use and three-fourths renewables by 2050.

While RMI explores how key partners could apply our U.S. synthesis to other countries, including China, revolutionary shiftsstrikingly parallel to our approachare already emerging in the three biggest Asian economies: Japan, China, and India. They add strong reasons to expect the alreadyunderway renewable revolution to scale even further and faster.

Japan Awakens After world-leading energy efficiency gains in the 1970s, Japan's energy kaizen stagnated. Japanese industry remains among the most efficient of 11 major industrial nations, but Japan now ranks tenth among them in industrial cogeneration and commercial building efficiency, eighth in truck efficiency, and ties with the U.S. for next-to-last in car efficiency. With such low efficiencies and very high energy pricesfar higher for electricity than in a more competitive market structure, while gas prices are historically linked to oil pricesfixing these inefficiencies can be stunningly profitable. For example, retrofitting semiconductor company Rohm's Japan head office in front of the Kyoto railway stationeven without using superwindows as RMI did in the Empire State Building retrofitsaved even more energy (44 percent) with a faster payback (two years). As the debate triggered by the Fukushima disaster opens up a profound public energy conversation, Japan is starting to see those tremendous buildings efficiency opportunitiesand to realize that it is the richest in renewable energy (wind, solar, and marine in particular) of any major industrial country. Japan has twice the per-hectare high-quality renewable potential of North America, three times that of Europe, and nine times that of Germany. Yet Japan's renewable share of electricity generation is one-ninth that of Germanyso its renewable power exploitation is exactly the opposite of its relative endowment! Why such poor renewable generation and modest ambition despite such rich local resources? Answer: because Japan is in a race with Chile to be the last OECD country to establish an independent grid operator bringing supply competition and transparent pricing to the old geographic utility monopolies.

Renewable energy now provides one-fifth of the world's electricity and has added about half of the world's new generating capacity each year since 2008. Excluding big hydro dams, renewables got $250 billion in private investment in 2011 alone, adding 84 GW, according to Bloomberg New Energy Finance and REN21. The results were similar in 2012.

But that is changing; Japan's once-monolithic business support for utility monopolies-cum-monopsonies (one seller, one buyer) is eroding. Important impetus came in July 2012 from a bold initiativefeed-in tariffs that promote greater renewables integration into the gridchampioned by Softbank founder and now solar entrepreneur Masayoshi Son. The tariffs were set at three to four times original European levels, because the government, apparently based on 2005 foreign prices, unaccountably believed renewables cost that much in Japan, where even commodities like PV racks, cables, and junction boxes sell for about twice the world price. Some 5.2 GW of feed-in-tariff applications

6


China owns most of the world's photovoltaic manufacturing capacity, which can produce over twice what the world installed in 2012, so the government has boosted its 2020 PV target to 50 GW to soak up the surplus in a few years. Meanwhile, overcapacity drove consolidation, with over 100 makers exiting the world market in 2012. But plunging prices plus Western innovation have made wind and solar into likely powermarketplace winnerseven with incentives shrinking to zero.

were approved in 2012, including 3.9 GW of nonresidential solar. As prices fall, the Industry Minister is expected to start phasing down the solar feed-in tariff with a 10-percent cut this spring. Meanwhile, though, the government changed to one more aligned with incumbent monopolists, delaying reforms. And some utilities have been exploiting a loophole that lets them unilaterally reject renewable offerings, without explanation or appeal, as risky to grid stabilityso the developer gets no payment and doesn't build.

As non-hydro renewables head for about 11 percent of China's 2020 electricity generation, vigorous industrial and appliance efficiency efforts are trimming demand growth. To be sure, coal still supplies two-thirds of China's energy and nearly four-fifths of its electricity, but its star is dimming. Two-thirds of the coal-fired power plants added in 200306 were apparently unauthorized by Beijing, but in 200610, net additions of coal-fired capacity fell by half, then kept shrinking. In 2011, investment in new coal plants fell by one-fourth to less than half its 2005 level, and China's top five power companiessqueezed between rising coal prices and government-frozen electricity priceslost $2.4 billion on coal-fired generation. Coal's hidden costs, including rail bottlenecks, are becoming manifest; public opposition is rising. And now further speeding the shift from coal to efficiency and renewables is dangerously polluted air (especially in Beijing) as coal-burning mixes with the exhausts of abundant but polluting new cars. (Shanghai's Singapore-like auction now prices a new-car license plate above a small car to put it on.) Bad air has suddenly created a powerful grassroots environmental movement.

As these internal divisions play out, the Land of the Rising Sun is getting eclipsedmaking early progress despite persistent obstacles, but falling far short of its potential and others' progress. Japan added nearly 3 GW of photovoltaics in 2012but even less-organized Italy installed 7 GW in 2011. Similarly, Japan's windpower association projects the same market share in 2050 that Spain achieved back in 2010. But there are hopeful signs too. Son-san's initiative was supported by at least 34 provincial governors. Hiroshi Mikitani, billionaire founder of the e-commerce giant Rakuten, just left the powerful traditional business forum Keidanren to form a reformist rival group. Slowly, in the

In November 2012, the 18th Party Congress for the first time headlined a “revolution in energy production and use”strong language from an organization founded in revolution. The incoming leaders had already earmarked major funding to explore how to accelerate China's transition beyond coal. They clearly intend to fix what President Hu called an “unbalanced, uncoordinated, and unsustainable” development pattern and to get off coal faster. An unprecedented 2012 dip in coal-fired generation, even as the economy grew, was caused largely by a slowdown in manufacturing and strong hydro runoff, but

subtle and complex Japanese way, business leaders' center of gravity is shifting toward better buys and more entrepreneurial models. Real projects demonstrating renewables' competitive advantage will speed that shift. And if it does take hold, the world has long learned that nothing is as fast as Japanese industry taking over a sector. Nothing, that is, except its Chinese counterpart. China Scales China is the world's #1 energy user and carbon emitter, accounting for 55 percent of world energy-consumption growth during 20002011. Yet China now also leads the world in five renewable technologies (wind, photovoltaics, small hydro, solar water heaters, and biogas) and aims to lead in all. Its solar and wind power industries have grown explosively: windpower doubled in each of five successive years. In 2012, China installed more than a third of the world's new wind capacity and should beat 2015's official 100 GW windpower target by more than a year.

renewables and efficiency too are starting to displace coal. China is making a real bid to be the new Germany, leading not only in making but also in applying its abundant

7


renewable assets.

owned industries that dominate coal and nuclear power. India, the world's #3 windpower market, has already installed nearly four times more wind than nuclear capacity. Solar power too added 1 GW in 2012 and is taking off briskly. And of course India has huge efficiency opportunities because most of its ultimate infrastructure isn't yet built. Projects like Infosys's 70-percent-lessenergy-using new offices in Bangalorehelped by ASHRAE Fellow and RMI Senior Fellow Peter Rumseyare gaining wide attention. A constellation of impressive new nongovernmental efforts with businesses and governmental allies is starting to focus India's energy policy reforms and business mobilizations.

India Starts Tipping So what about the country thattogether with Chinais responsible for 76 percent of the world's planned 1.4 trillion watts of coal-fired power plants and 90 percent of the projected growth in global coal demand to 2016; that plans (implausibly) to build a coal-fired plant fleet twice as big as America's; and that will ultimately surpass China in population, though one-fourth of its people still lack electricity? India's power generation is still mainly coal-fired, but India's coal is only abundant, not cheap. Chronic coalsector and logistics challenges have created growing import dependence (as in China, which became a net importer in 2009). That helped the six countries that control four-fifths of global coal exports to gain the market power to boost prices, so they did. Rising coal imports and a weakening currency gave India a macroeconomic headache and power producers a financial migraine.

In all, India seems to be at an energy tipping point. It is starting to comprehend its massive efficiency and renewable potential, and enjoys growing private-sector skills to capture that potential, especially if regulatory barriers can be removed. All of this as the power sectorchastened by the world-record summer 2012 blackout of 600 million peoplestarts to face the need for serious reforms. The main missing elements, as in China and Japan, include rewarding utilities for cutting your bill (instead of selling you more energy), and allowing demand-side resources to compete in supply-side bidding.

Coal prices 23 times assumptions imposed a grave price/cost squeeze on two of the world's biggest coal plants4-GW projects owned by the largest generating firm (Tata Power, part of Tata Group that's nearly 5 percent of India's GDP) and by Reliance. Many plants can't even get enough coal, exacerbating electricity shortages, but the government doesn't want to raise electricity prices, so the dominoes are falling. In December 2011, Infrastructure Development Finance Company stopped financing new coal plants. In February 2012, the Reserve Bank of India said it wouldn't help banks that got in trouble on new coalplant loans. Financing dried up. Three weeks later, Tata announced its investment emphasis had shifted from coal projects to wind and solar. Led by four of India's richest families, India shelved plans for 42 GW of coal plants in the last three quarters of 2012. That's nearly a fourth of existing total capacity, or 68 percent of the government's short-term targetonly 32 percent of which Coal India says it can fuel. With power-hampered growth threatened by even scarcer or costlier power, some of India's electricity leaders are seeing their way forward in superefficiency, distributed renewables, and microgridsand not only in rural areas.

Of course, there are major challenges in modernizing a sprawling, disjointed sector with irregular management quality and transparency. But with so many brilliant entrepreneurs and engineers, important advances are already emerging from the bottom up at the firm, municipal, and state levels, whether led or followed by national policy. Meanwhile, all three of Asia's economic giants will be increasingly informed and perhaps inspired by the example of their European counterpart and prime competitor, Germany, which is now switching to a green electricity system faster than anyone thought possible. In late 2012, RMI's Amory Lovins spent seven weeks in Japan, China, India, Indonesia, and Singapore observing Asia's emerging green energy revolution. In February 2013, he returned to Japan and China. Japan, China, and Indiaall vulnerable to climate changeturned out to be in different stages of a “shared and massive shift” to a green energy future, one with remarkable similarities to RMI's Reinventing Fire vision for the United States. A version of this article originally appeared on Rocky Mountain Institute's blog, RMI Outlet (http://blog.rmi.org).

As in China, vibrant private-sector entrepreneurship in renewables should be capable of far outpacing the state-

Amory B. Lovins cofounder and chief scientist of Rocky Mountain Instituteis a 65-year-old American consultant, experimental physicist and 1993 MacArthur Fellow. He has been active at the nexus of energy, resources, environment, development, and security in more than 50 countries for 35 years. He is widely considered among the world's leading authorities on energyespecially its efficient use and sustainable supplyand a fertile innovator in integrative design. His awards and accolades include a 1982 Mitchell Prize, a 1983 Right Livelihood Award (often called the “alternative Nobel Prize”), the 1999 Lindbergh Award, Time's 2000 Heroes for the Planet Award, the Onassis Foundation's first Delphi Prize (1989), the Nissan Prize (1993), and the World Technology Award (Environment) (1999). In 2008 he was named one of America's 24 Best Leaders by U.S. News & World Report and Harvard's Kennedy School, and received the first Aspen Institute / National Geographic Energy and Environment Award for Individual Thought Leadership. In 2009, he received the National Design Award (Design Mind), Time named him among the world's 100 most influential people, and Foreign Policy, one of the 100 top global thinkers. In 2010, he was Runner-Up for the Zayed Future Energy Prize.

7 8


Greening India… By Tarkovacs Stefan

Tar Kovacs Systems “Virtuous Economic Cycle” Russia, India, China and South Africa) countries should invent and help inventors to build their development instead of entering into the international major groups dependency, particularly for food, water and energy.

From Grey to Green Since few decades, we have seen the transition between the XIX-XXth century's mechanical era and the computerised XXth century's end which has helped a strong world economy seesaw from XIXth industrialised countries to the BRICS countries.

Renewable Energy Almost renewable energy industrial plans are made of a first drop and then, stops. Renewable energy technologies seems to reach the goal of easing one's conscience, often rapidly controlled by fossil and nuclear majors, and then stays at this very first stage. Providing renewable energy should enter in a global vision and then it become as shown with Tar Kovacs Systems “SeaSpace” project, a “Virtuous Economic Cycle”, self continuing and self-generated. The new involved technology's final cost are then less than any previous technology.

In the same time period, several evident statement of facts has shown to the world that “Renewable” and “Green” ways of evolution are imperative and highly profitable, and not only for industrial benefits. These two simultaneous phenomenons are providing the opportunity of the coming century: To start a new round with new ideas....green if possible. It means INNOVATION.

Don't buy it! Invent it and sell it! Greening India

A real opportunity to reinvent our industrial world, and why not, our economical world is offered to nations which are ready to move on and to those which are growing up with an exceptional opportunity of choice. This opportunity doesn't consist in buying old, obsolete and dirty technologies from abroad. As the mobile phone has brought unlimited potentials to countries which were not yet equipped with land line phones, new technologies allow to build new green industries without passing by the previous polluting and expensive steps.

Tar Kovacs Systems group has started as a French design office for innovation in green technologies and renewable energy production means, following the “Prestige” oil tanker sunk in 2003. Its global ocean technology is based on a new concept of the fuel cell. The result is cumulating for ocean the same properties and potentials than the aircraft industrial era, the steam power industrial era and the jet propeller era in one single technology. With Tar Kovacs Systems, oceans are open to all activities as they are on shore and in the space, with a real time and full communication & control.

For example, it is not a good idea to build cars in India if it works like the old one, with oil fuel. The BRICS (Brazil,

9


Tar Kovacs Systems is having this mind of “Virtuous Economic Cycle” because it has designed and patented the technology to do it, certified at “Vibrant Gujarat 2013”, by Principal Secretary D.J. Pandian of Energy & Petrochemical Department.

a real opportunity to build on far off shore as many power plants on deep sea bed or on the surface as needed, for half cost of any other technology.

From the technical equipments to produce constant and safe renewable energy to the uses of this energy, into a multi conversion green fuel states, covering many industrial fields, and again to energy production, our technology is offering a new concept of global economy. Then, renewable energy production is not the only target but also a new mean to reach a whole green economy plan, a real strategic independence, and a powerful capacity to export. As Tar Kovacs Systems technology allows to protect, clean up and exploit oceans and deep sea bed, it allows also to build incredible off shore power plants, providing constant renewable energy without any touch to the sea bed. No anchors, no foundations, no maintenance and no destruction by any tsunami, typhoon or storm. The result is

These off shore power plants would then supply cheap electric energy on shore, on one hand, and green fuels on the other hand, for all other Tar Kovacs Systems applications like fisher ships, free wild fish farms, new ship building, deep exploitation of raw materials, clear water wells, and unlimited sea tasks. BRICS has less than 15 years to win their challenges. The world then will be much more aggressive between winners and followers. Tar Kovacs Systems came to India in this mind. We need a strong determined country to build the “SeaSpace” project, already copied in parts by several European major companies, and we need a political support. Future belongs to audacious. Grey to Green? This is first a policy decision. Tar Kovacs Systems is a worker, ready to build.

Stefan Tarkovacs has a degree in architectural engineering and masters in International project management from school of Les Beaux Arts of Paris. He has an immense experience in the field of architectural development across the globe. His personality speaks the leadership qualities bestowed in him. He has an outstretched reach in leadership of people working under his guideline. To make people comfortable and easy on the worksite is in his nature, which leads projects to the successful end. He has well in his mind that “successful project can be achieved by providing comfortable environment to all”. He is best known as a “dreamer”. He believes that a dream is necessary to accomplish any impossible goal. He dreams the solutions that are compatible to nature. “To be with the nature” is his philosophy. His technical ability is best defined by the solution he had provided as an in-charge of Riyadh Parliament cooling system designer. He founded an inverse cooling system compared to the conventional standards, well adapted to the sand intrusion and local dressing habits, high difference of temperatures and its inconvenient and a better transition of the building structure heat absorption. He started in 1977 early in his career new technical solutions to numerous fields. He is blessed by the ability to analyze the global situations and market. A widely travelled man was back to Paris from eastern Europe in March 1986, when he analyzed country by country, field by field the global economy of that time and predicted the Berlin wall fall much before the experts could understand. After a deep research on the Soviet planned economy, he submitted his drafted memory to the Master degree jury on 9th November, 1989 in Paris- The day of the Berlin wall Destruction. His economical market study power was justified after the Berlin wall fall, when he proposed to the Western European major companies to start business expansion to the eastern side which was executed in 10 years. This resulted in great success for the western European major companies. Besides strong attitude, he has also a very soft corner for humanity. The coastal pollution by oil tanker “Prestige” in 2003 invoked his heart that resulted in his first patent as a solution which drew the attention of major European institutions. He has four international patents on his name. His innovations were remarked as “incredible” and it was announced as a patent with big market potential by British Embassy- Paris in 2011. He received high attention by major international science magazines like CIS- Oil & Gas- Russia. He found himself being called by nature to jump in the green solutions on boiling issues of the world. His mind behind this project is to be on his back standing on a strong country to make a world market with clean technologies. This new market will create good job opportunities in near future. As an individual he believes in serving for the nature by the qualities gifted to any individual by nature. So, he believes his prime duty is to protect our environment. As a founder of Tar Kovacs Systems, he has concrete vision to reduce the rich-poor gap by the help of his innovations. He has another 20 patents to be registered to serve for the same mission. He thinks that the large rich-poor disparity is the root of poverty and corruption. If this gap is reduced and finally eradicated, it will result in complete socio-economic development of a country. His thinking is aimed at this novel target. Stefan is also the Founder & Chairman- Tar Kovacs Systems (India) Pvt. Ltd. Stefan's contact email: tarkovacs.systems@gmail.com

7 10


UAE energy sector development requires clear legislation says Rashid Ahmad Bin Fahd, country's Minister of Environment and Water

To support the growth of the energy sector in the UAE, the government should encourage more investments in this sector as well as develop a clear legislation to protect businesses in this industry, Rashid Ahmad Bin Fahd, UAE Minister of Environment and Water, said during the Dubai Global Energy Forum recently.

investments was the highest in 2011 at $257 billion, with 17 per cent increase.” However, this sector needs more investment estimated at $6 trillion from China, European Union, US and U.K. until 2035, he added. Calling for better legislation, he said that there should be a clear legal framework for investment in the energy sector as well as strict regulations to protect intellectual properties for innovative projects.

Energy sector, and especially the renewable energy, are promising sectors in terms of social, economic and environmental opportunities. This sector can at least create five million job opportunities worldwide in addition to cost-efficient energy that can be provided for the areas suffering from energy shortage. In the UAE, our government has brought a lot of attention on this sector and its value, he said.

Encouraging scientific research and increasing awareness about the importance of the renewable energy is another initiative that the government can adopt to develop the energy sector in the UAE, Bin Fahd said.

Pointing to the main renewable energy project across the emirates, Bin Fahd said that Masdar City in Abu Dhabi will provide 7% of its power demand from the solar energy by 2020 and Shaikh Mohammad Bin Rashid Solar Park will provide 1% of the power demand from solar energy by 2020 and five 5% by 2030.

On the other hand, Ahmad Al Muhairbi, secretary-general of the Dubai Supreme Council of Energy, said that in line with the UAE's vision of Green Economy and sustainable development, the Dubai Supreme Council of Energy has created this forum as a platform to exchange views and expertise where opportunities and innovation can meet challenges.

In addition to that, the UAE has a lot of investment in the energy sectors in different countries, he said. “However, the government should attract more investment in this field to grow the energy industry further.”

“In the UAE, we have deployed a number of initiatives to improve energy efficiency, reduce demand and build up the capabilities to sustain our social and economic growth,” he added.

He remarked that world investment in the renewable energy remarkably grew in the last few years. “While these investments grew six-fold between 2004 and 2011, the size of these

“We have set renewable energy at the top of our agenda to diversify our energy sources and contribute to carbon reduction.”

11


The largest solar photovoltaic (PV) plant in Africa was inaugurated on April 20, 2013 by the Government of the Islamic Republic of Mauritania and Masdar, the renewable energy company of Abu Dhabi in the United Arab Emirates.

To date Mauritania's electricity grid, like many in Africa and around the world, has been reliant on expensive diesel generators and exposed to price volatility, energy security and sustainability issues. Further to this the nation's demand for energy grew by an estimated 12 percent in 2012, compounding the pressure on their 144-megawatts of installed capacity and resulting in severe energy shortages.

The new facility, located in the capital city of Nouakchott, is the largest solar PV plant in Africa at 15-megawatts. It will account for 10% of Mauritania's energy capacity, displace approximately 21,225 tons of carbon dioxide emissions a year, and supply energy to nearly 10,000 homes in Nouakchott. “Globally renewable energy has tremendous potential to meet our growing energy needs, and with the business case for renewables improving rapidly, the time has never been better for renewables,” Mr. Adnan Z. Amin, DirectorGeneral of IRENA said. “We are encouraged to see one of our early Members, Mauritania beginning their transition to an affordable secure and sustainable energy system.”

“Energy access is a pathway to economic and social opportunity,” said Mauritania President Mohamed Ould Abdel Aziz during the inauguration of the solar plant. “Electrification, through sustainable sources of energy, is critical in ensuring our people have access to basic services and is a step toward improving our infrastructure and longterm economic development.” With strong solar and wind energy resources, Mauritania has the potential to derive a significant portion of its electricity capacity from clean, secure, and sustainable sources of energy. Its wind energy potential alone is almost four times its annual energy demand.

12


Energy & The World Bank Context Access to environmentally and socially sustainable energy is essential to reduce poverty. Over 1.3 billion people are still without access to electricity worldwide, almost all of whom live in developing countries. About 2.7 billion use solid fuels - wood, charcoal, dung, other biomass, and coal - for cooking and heating. Every year fumes and smoke from open cooking fires kill about 1.6 million people, mostly women and children, from respiratory diseases. Africa faces acute energy challenges, with the lowest electrification rate of all the regions at 26% of households. About 550 million people do not have access to electricity. Without access to energy services, the poor are deprived of the most basic economic opportunities needed to improve their standards of living. “To make the leap to universal access to modern energy services by 2030, new capital investment of about $48 billion will be needed every year. This is in addition to worldwide annual investments of about $450 billion just to sustain energy services at current levels”

affordable to low-income consumers. Second, promote energy efficiency practices to moderate consumption patterns in energy-intensive economies. Third, facilitate a shift to cleaner energy sources where feasible. The Bank Group is contributing to this worldwide effort, through lending, analytical support, technical assistance and capacity-building. The WBG has formally engaged in active support for the Sustainable Energy for All (SEFA) initiative, with Bank Group President Jim Yong Kim assuming co-chairmanship of the initiative's multi-stakeholder advisory board. The initiative, launched by the UN Secretary General Ban Kimoon in September 2011, calls on governments, businesses and civil society to achieve three objectives by 2030: universal access to energy, including electricity and modern cooking and heating fuels; double the renewable share of power produced and consumed from 15% to 30%; and double the energy efficiency improvement rate. “The Sustainable Energy for All objectives will be achieved through collective action. There is a need for leadership in all countries. Countries with low access must expand that access. High-intensity consumers of energy need to scale-up efforts on energy efficiency. Countries with renewable energy potential need to find ways to tap that potential”

Climate change remains a critical concern. At present, more than 80% of energy consumed comes from burning fossil fuels, which produces greenhouse gases that cause climate change.

Disseminating knowledge through communities of practice

Population, technological and economic growth are expected to drive up overall energy demand by a third from now to 2030, with 90% of new demand in developing countries. These trends threaten to push global temperature above two degrees. Strategy

The Bank Group has launched Communities of Practice for Hydro-Power and Energy Efficiency, which bring together practitioners for knowledge exchange and dissemination of best practices. We will also launch communities of practice on Energy Access and Renewable Energy in 2013. These communities provide fertile ground for North-South and South-South exchange activities.

World Bank Group focuses on Sustainable Energy for All

Tracking progress towards the goals

Our challenge is to build a sustainable energy future by acting on three fronts. First, expand access to energy that is

The Sustainable Energy for All initiative needs data tracking and analytical support. The Bank Group and

13


ESMAP are leading a knowledge consortium in partnership with the International Energy Agency, and other international organizations to produce regular tracking reports on progress towards the goals. This will start with a Baseline Report in January 2013. Reaching the poor Millions of people worldwide have benefited from Bank Group energy financing. Women can earn an income by keeping a corner store or village eatery open at night. Mothers in childbirth after dusk and their newborns have a better chance at survival. Medicines and perishable food can be kept cool in a refrigerator. Children can read and study at night. Factories that otherwise would be closed, can stay open, providing jobs and a path out of poverty. The WBG is providing more than $1 billion a year to over 60 countries that is directly focused on expanding access, both by extending the grid and through off-grid solutions for remote areas. The Bank Group's financial instruments, such as partial risk guarantees, reduce risk associated with energy projects to leverage private investment for access, while its policy and strategic guidance help governments create conditions that attract companies who bring new business models, innovative finance or new energy and energy efficiency technologies. Since the Rio+20 Summit, 61 countries have opted in to the Sustainable Energy for All initiative, while businesses, investors and donors have committed $50 billion to it. The 61 countries, 25 of them in Africa, account for about 80% of global population without access to electricity. The Energy Sector Management Assistance Program (ESMAP), administered by the World Bank, has completed six of a total of 40 “rapid assessment� country studies undertaken by all SEFA partners (others supporting these assessments are the African Development Bank, Asian Development Bank, InterAmerican Development Bank, European Commission and the United Nations Development Programme). Each of these reviews a specific country's electricity and household fuels' access gaps, as well as status on renewable energy development and energy efficiency practice. ESMAP will deliver a technical assistance program for energy access in five developing countries.

options with an emphasis on renewable sources such as hydropower, wind, solar and geothermal, while also promoting energy efficiency. Projects support achievement of universal access to electricity and modern household fuels, as well as improved utility performance and sector governance. The Bank Group also provides financing and advice to countries on oil and natural gas extraction, production, processing, transmission and distribution. The Bank Group committed $8.2 billion to support energy finance in 2012; of which $3 billion from IBRD, $1.9 billion from IDA, $2 billion from IFC, and $489 million from MIGA. The Bank Group approved a total of $3.6 billion in financing for renewable energy projects in fiscal year 2012, a record 44% share of its annual energy lending

Moving towards clean energy The Bank Group supports development of energy systems based on least-cost

14


in 2012. Looking only at power generation projects approved in 2012, renewables accounted for an even larger share 84%. “Since 2007, the Bank Group has provided $12.5 billion for renewable energy projects and programs, just over one-quarter of all energy financing over the same period, which totaled $49.2 billion. “The renewable energy lending figure for 2012 is a remarkable spike, but also part of a consistent trend of increases over several years,” said Rachel Kyte, Vice President of Sustainable Development at the World Bank. “It shows the determination of many countries to seek lower-carbon energy solutions” Finance for energy access was close to 20% of 2012 commitments, while coal projects accounted for $690 million, less than 10% of energy project approvals for the year. The Climate Investment Funds have committed over $5 billion to date into clean energy projects.

Asia ($2.7 billion, 22%). Lending was $2.1 billion (17%) each for Sub-Saharan Africa and Europe-Central Asia, $1.7 billion (14%) for Latin America and the Caribbean, and $445 million (4%) in the Middle East and North Africa. About one percent of the total renewable energy financing went to multi-regional funds. Finance for energy access was close to 20% of 2012 energy commitments, while coal power projects accounted for less than 10%.

The World Bank Group and Coal The Bank supports coal projects where it is the only option for the poor. Coal power projects accounted for less than 10% of the Bank's energy financing approved in 2012. Given its parallel focus on climate change, the Bank Group seeks opportunities to help developing countries expand access to energy by using renewable energy sources. However, the WBG does support coal power generation if it is the only way to get electricity to people who don't have it. The Bank Group's policy is to support countries in such, but under strict criteria, which are: ? There is a demonstrated developmental impact (e.g. improving overall energy security, reducing

Hydropower leads About $5.4 billion (43%) of the Bank Group's renewable energy lending since 2007 has been for hydropower, with $1.1 billion (8.5%) each for geothermal and solar PV, and $875 million (7%) for wind, and smaller amounts for

World Bank Group Financing for Energy by Type, FY 2007-12 (Revised US$ Millions) *

biomass and solar thermal. Another $3 billion went to projects in which the specific clean energy technology supported was not identified beforehand; these include renewable energy funds, credit lines and community-driven development projects which typically support a mix of micro-hydro, solar and wind power.

? ?

Within the World Bank Group, the International Finance Corporation (IFC) was the largest sponsor of renewables at $4.5 billion (35%) over the six year period since 2007, followed by IBRD ($3.7 billion, or 30%), IDA ($2.4 billion, 19%) and MIGA ($533 million, 4%).

?

? “Climate financing instruments housed at the World Bank, including the Carbon Finance Unit, the Global Environment Facility, and the Climate Investment Funds accounted for $1.2 billion (10%) of the Bank Group's commitment to renewables. Other instruments such as IBRD/IDA guarantees, trust funds whose grants are implemented by the beneficiaries, and special financing tools made up the remainder” South Asia led the way with $3.2 billion (26%) in renewable energy financing since 2007, followed by East

power shortage, or access for the poor); There is assistance to identify and prepare low carbon projects; There has been optimization of energy sources by considering the possibility of meeting the country's needs through energy efficiency and conservation; There has been full consideration of viable alternatives to the least-cost options (including environmental externalities), and when additional financing from donors for their incremental cost is not available; The project uses the best appropriate available technology, to allow for high efficiency and, therefore, lower GHG emissions intensity

“In regions such as sub-Saharan Africa and countries such as India, where hundreds of millions of people have no electricity, getting access to energy is the predominant issue for them and for their governments” About 72% of South Africa's and 70% of India's electricity comes from coal-fired power stations, as does over 40% of the electricity generated in the US. But burning coal and

15


other fossil fuels produces about 70% of the planet's greenhouse gas emissions. Here is the challenge: given these numbers, experts agree that the world cannot, at present, provide affordable access to electricity to 1.3 billion people without relying to some extent on coal.

Sub-Saharan Africa, great potential exists for cost-effective renewable power, including wind, in large regions of rural Sub-Saharan Africa. Solar Power Mongolia

But investing in coal alone for electricity - when considered in light of population growth projections would push human-caused climate change deeply into a catastrophic zone. That's why we have strict criteria for financing of coal projects, limiting our financing to cases in which a country has no other options to respond to urgent demands for electricity, and providing several other conditions have been met and the process reviewed by an external advisory committee.

About 100,000 herder families in Mongolia have gained access to solar power through a program launched by the Mongolian government with support from the World Bank and the Government of the Netherlands. Thanks to the National 100,000 Solar Ger Electrification Program, 70 percent of Mongolia's herders now have access to modern electricity Mali The Bank has providedthrough the International Development Associationtwo zero-interest loans for Mali in 2003 and 2008 respectively, for a total of $70.6 million, to support a household energy and rural access project, which includes installation of solar photo-voltaic electricity systems in some 40 rural communities. China

Results Wind Power China China leads the world in wind power with 62 gig watts (GW), of which over 50 GW is connected to the nation's electricity grid as of this year. Grid-linked wind capacity will rise to 100 GW by 2015 and 200 GW by 2020. The World Bank played a role in China's wind power development with its its support for a China Renewable Energy Scale Up Program, to which the World Bank has committed approximately $230 million. Egypt The World Bank has expanded its engagement in wind energy development in several countries. In June 2010, the Bank approved a $220 million loan for Egypt to support the Wind Power Development Project, out of which $150 million is financed from the Clean Technology Fund, a first for the region.

A renewable energy project in which the World Bank and the Global Environment Facility (GEF) provided $13 million and $27 million respectively, as well as technical assistance, supported an initiative led by China to build a market for solar photovoltaic and wind energy technologies almost from scratch. The Bank-supported renewable energy development program has enabled sales of over 402,000 PV solar-home systems (SHS) to rural families in remote areas of West and North-West China. About 1.6 million nomadic people now have access to solar power as a result. Morocco

A World Bank study, Wind Energy in Colombia concluded that wind is a realistic renewable energy alternative in Colombia, prompting the country's government to consider several projects, including a 200 MW project to tap wind power. The study has been complemented by a Prototype Carbon Fund grant for a wind farm in Jeripachi, in northern Colombia.

The World Bank is implementing a $750-million grant by the Clean Technology Fund to the Middle East and North Africa Concentrated Solar Power Scale Up Program, part of which is financing the world's largest concentrated solar power plant in Ouarzazate, in eastern Morocco. The plant produces low-carbon solar electricity, and is at once creating jobs and helping to expand the skill base in Morocco to construct and operate such facilities. It will pave the way for the deployment of multiple solar energy projects across North Africa.

Turkey

Geothermal

In May 2009, the Bank approved a $600 million loan for Turkey to develop its renewable energy including wind. This project includes construction of 966 MW of renewable energy generation (hydro, geothermal, wind, landfill gas) capable of producing 3810 Gwh of electricity per year, thereby reducing GHG emissions by about 1.7 million tons per year.

Indonesia

Colombia

Africa Sub-Saharan Africa is looking to harness wind energy, with the assistance of the World Bank. According to a recent Bank report, The Economics of Energy Expansion in Rural

A $175-million IBRD loan, accompanied by $125 million from the Clean Technology Fund, to support a subsidiary of Indonesia's state-owned company Pertamina in boosting the country's geothermal power generation capacity in fields in South Sumatra and North Sulawesi. When the project is completed in 2015, it will add 150 megawatts to the grid, displacing an equivalent capacity of coal-based power generation, thereby reducing local and global environmental pollution. Africa

16


The Bank Group, through ESMAP, is developing a Global Geothermal Development Program to deploy geothermal energy for electricity. This will mobilize expertise from Iceland and offer tools to mitigate investor risk, so as to increase private investment in this sector, starting in the 13 countries of the Rift Valley in East Africa.

stimulate private investment in renewable energy. We are launching a pilot initiative aimed at eventual replication called Global Energy Transfer Feed-in Tariffs Plus, or GET-FiT Plus. It will support renewable energy projects in East Africa by providing partial risk guarantees combined with other financing to cover the premium associated with feed-in tariffs. Supporting clean energy in small island developing states

Energy Efficiency Tajikistan Tajikistan has faced severe energy shortages in winter, which culminated in a crisis in 2007. The Bank responded to this emergency by ensuring that critical facilities, such as hospitals, had standby power year-round, and also by working to ensure that the improvements were sustainable. Energy efficiency measures financed by IDA included the installation of 105,000 new meters that reduced power consumption and increased bill collection, increased water reserves at Tajikistan's major hydropower plant, and provided 250,000 people in northern Tajikistan with basic modern energy services for the first time. Mexico Mexico entered the Guinness Book of Records after distributing almost 23 million energy-saving light bulbs for free. The national program, partially financed by the World Bank, established over 1,100 exchange points at which customers replaced their incandescent bulbs with CFLs. The energy saving from the program so far is estimated at 1,400 gigawatt hours. Energy Efficiency in Cities Energy efficient measures can help cities save money on energy, cut investments in new infrastructure, and make them more competitive. But it is difficult for city managers to learn about what measures, options, and practices would be best for their cities. The Bank's Energy Sector Management Assistance Program has launched a database of case studies to showcase best practices by cities implementing energy efficiency policies and programs. This platform helps policymakers learn about diverse initiatives, and draw from a menu of policies and programs. The database is drawn from 15 case studies in the buildings, transport, solid waste, water, public lighting, and heating/power sectors of China, Colombia, Egypt, India, Mexico, Pakistan, South Africa, Ukraine, and Portland, Oregon (USA), as well as Eco2 cities case studies from Australia, Brazil, Japan, New Zealand, Singapore, and Sweden. Additional studies will double the database source countries to 30 in fiscal 2011.

Looking ahead

Most small island states depend on expensive fossil fuels for power generation. They are also vulnerable to climate change. The Bank and ESMAP, in collaboration with UNDP and the Alliance of Small Island States, will support expansion of the program, SIDS-DOCK, to co-finance clean energy investment and technical assistance activities in the Caribbean, Pacific and Africa regions. In addition, the Scaling Up Renewable Energy Program for LowIncome States (SREP), one of the Climate Investment Funds, will support clean energy initiatives in Maldives and Pacific Islands. Developing renewable energy resource maps A more precise understanding of renewable energy potential is a key starting point for power sector planning in the developing world. ESMAP will launch a program on meso-scale mapping of renewable energy resourcesincluding biomass, small hydro, solar and wind in developing countries. These maps will guide governments and developers in exploiting renewable energy sources. Expanding the Global Gas Flaring Reduction Partnership Flaring of gas associated with oil production has dropped by 20% worldwide, from 172 billion cubic meters (bcm) in 2005 to 140 bcm in 2011. This has reduced CO2 emissions by 85 million tons, roughly the equivalent of emissions from 16 million cars. The Bank and its 33 partners including governments and oil companies in the Global Gas Flaring Reduction Partnership (GGFR) will step up flaring reduction efforts over the next four years through activities to develop gas infrastructure and markets. “A new target has been set, to reduce flaring by another 30% by 2017, or from 140 bcm of gas flared in 2011 to 100 bcm by end of 2017. This is a reduction in CO2 emissions equivalent to taking 60 million cars off the road. In this new phase of flaring reduction, we will also increase use of previously flared gas to expand access to electricity and cleaner household fuels. We will seek to transform the natural gas value chain to expand access to electricity and cooking fuels in countries where gas is flared, such as Nigeria, Iraq, Indonesia, Gabon, Republic of Congo and Angola� Scaling up urban energy efficiency

Providing risk mitigation for clean energy Reducing high startup costs is essential to encourage renewable energy investments. To address this, the Bank Group is collaborating with Deutsche Bank and Germany's KfW agency to establish a global regime to support feed-in tariffs. Feed-in tariffs are a proven policy incentive to

Buildings account for almost 40% of energy consumption. We will scale up ESMAP's Energy Efficient Cities Initiative with cities and mayors to promote energy efficiency and renewable energy solutions in the buildings, power/heating, public lighting, solid waste, transport, and water/waste water sectors.

17


WFES- 2013 Flashback 6th World Future Energy Summit in Abu Dhabi and the inaugural International Water Summit brought together 29,448 attendees from 155 countries to influence the global future of the renewable energy and water sectors As centrepieces of Abu Dhabi Sustainability Week, the sixth World Future Energy Summit and the inaugural International Water Summit brought together 29,448 attendees from 155 countries to influence the global

Dr. Sultan Ahmed Al Jaber, Chief Executive Officer and Managing Director of Masdar, host of the World Future Energy Summit and the International Water Summit, presented a welcome speech and Siemens presented an

future of the renewable energy and water sectors. The joint opening ceremony brought together 3,500 delegates and 91 official delegations, while the exhibition areas featured 800 exhibiting companies from 40 countries, 28 national pavilions.

industry perspective.

The French president, Francois Hollande, delivered a keynote speech at the official inauguration of Abu Dhabi Sustainability Week which took place at the opening ceremony of the World Future Energy Summit, and stressed the strong ties between both countries and the mutual interest in clean energy. Also delivering keynote speeches at the official opening ceremony were Argentinian President Cristina Fernandez and HRH Queen Rania of Jordan.

The participation of a large number of international energy ministers in the Ministerial Panels on the opening day of the World Future Energy Summit showed the seriousness with which governments are taking the renewable energy challenges. Ministers from India, China, Australia, Peru, Morocco, Qatar and Saudi Arabia were among the contributors to the debate after the gala Official Opening Ceremony. Leaders from some of the world's most influential economic development and environment organizations had delivered keynote speeches during the Ministerial Panels including Wu Hongbo, Under-Secretary-General of the United Nations; Todd Stern, USA's Special Envoy for Climate Change;

7 18


Connie Hedegaard, EU Commissioner Climate Action in the European Commission; and Jeffrey Sachs, Director of The Earth Institute at Columbia University and Special Advisor to the United Nations Secretary‐ General on the Millennium Development Goals.Mr. Naji El Haddad, WFES Show Director for event organizer Reed Exhibitions, was encouraged by the increased numbers participating in the sixth edition of the World Future Energy Summit, hosted by Masdar. •gWe are expecting the most successful WFES since its inception in 2008 as global awareness of the need for renewable energy continues to grow.•h •gOur pre-registered numbers are 20% higher than this time last year. “Aside from the high-powered program of the prestigious biennial International Renewable Energy Conference in Abu Dhabi (ADIREC), held for the first time in the Middle East, the exhibition area at WFES 2013 became the focus of attention with an increased number of side events and several features making their debut” g• Exhibitor numbers were up by 10% than the 2012's event, and these global companies have launched over 70 new products, 20 more than last year,•h said Mr. El Haddad. •gWe have also introduced exciting new features such as the Technology Exchange Platform, the Green Ideas Fair in conjunction with the International Water Summit, the Green Jobs Fair and the Sustainable Living area which includes a full-size Estidama-compliant energy efficient

home.•h •gThe Zero Tracer, a futuristic electric motorcycle which can reach speeds of up to 300 kilometres per hour, was one of the star attractions,•h said Mr. El Haddad. One of the most successful WFES features, the Project & Finance Village, returned for its third year, with more and bigger projects seeking investment totalling more than $8 billion. The sixth World Future Energy Summit, hosted by Masdar, Abu Dhabi's renewable energy company, was the centerpiece of Abu Dhabi Sustainability Week and was co-located with the inaugural International Water Summit, also hosted by Masdar. The World Future Energy Summit 2013 was also the host venue for the prestigious biennial International Renewable Energy Conference. The Abu Dhabi Sustainability Week opened with the third session of the Assembly of the International Renewable Energy Agency (IRENA). Minister of Environment and Energy, France, tours the French Pavilion at the inaugural International Water Summit held 15-17 at the Abu Dhabi National Exhibition Centre. The annual World Future Energy Summit held in Abu Dhabi during January 15-17, 2013, was the world's foremost gathering dedicated to promoting sustainable technologies. Celebrating its sixth year in 2013, it was the leading international event for government and industry decision makers committed to finding viable, sustainable solutions to the world's growing energy challenges.

19


“The summit was an unparalleled forum for political, business and intellectual debate, and for networking and transactions between manufacturers, suppliers and customers in both the public and private sector. It comprised a world-class conference, a large-scale exhibition, and an annual celebration of the winners of Abu Dhabi's Zayed Future Energy Prize, which recognizes global achievement in the fields of renewable energy and sustainable development”

have already set renewable energy targets. 1,045 conference delegates, a 7 percent increase over last year, discussed the need for innovation in renewable energy and greater support from governments in terms of policy development, investment and collaboration.Thousands of visitors poured into the exhibition at WFES 2013 to see the latest technologies and solutions in areas such as energy efficiency, solar energy and electric transport, including 70 new product launches. “This is our fifth time to participate in WFES and we are keen on continuing to be part of this event. We believe this is an excellent platform for reaching international companies and networking with potential partners or clients. So far we have been able to link with our trade customers from the UAE, India and Europe,” said Leah Liu, Marketing and Communication Manager from Sun Tech Limited.

Minister of Environment and Energy, France, tours the French Pavilion at the inaugural International Water Summit held 15-17 at the Abu Dhabi National Exhibition Centre.

Hosted by Masdar, Abu Dhabi's multi-faceted renewable energy company, the World Future Energy Summit also featured the Project and Finance Village, the Young Future Energy Leaders program, round table discussions, and various corporate events and social engagements.

The Zero Tracer, an enclosed electric motorbike that can reach speeds of around 250 kph, attracted large numbers of curious visitors, while the Eco-Home in the new Sustainable Living area was the centre of attention for developers, engineers and architects looking for the latest in energy efficiency. The upgraded Project & Finance Village also enticed bankers and financiers looking to invest in over $8 billion of renewable energy projects being showcased.

WFES IWS 165 speakers led the discussions during the International Renewable Energy Conference in Abu Dhabi (ADIREC), hosted by the World Future Energy Summit, which set the global future energy agenda for the next decade and provided a solutions blueprint for the 120 countries that

Over 5,000 visitors attended the first International Water Summit to address global water issues such as water scarcity in Arab regions, sustainable growth and economic development in arid regions, the future challenges of water

20


availability, and cross boundary collaboration through international water governance.

candidates. The World Future Energy Summit has become a hub for business opportunities within the renewable energy, clean technology and environmental industries and will continue to host leading players in the production, installation and integration of energy efficient products from the global market. With the best and most innovative technologies from the world of Smart Grids, Faรงade, Lighting, Isolation, Smart Houses, Clean Transportation and Green Buildings on show, exhibitors will have the opportunity to network

The conference proceedings were led by more than 100 of the world's leading water experts from world-leading organizations such as UN Habitat, the Global Water Operators' Partnership Alliance (GWOPA), the World Bank, UN Water, the International Desalination Association, UNESCO, the Organization for Economic Cooperation and Development (OECD), the Stockholm

The full picture for all end-use sectors: power, heating, cooling and transport In the power sector, renewables accounted for almost half of the estimated 208 gigawatts (GW) of electric capacity added globally during 2011. Wind and solar photovoltaics (PV) accounted for almost 40% and 30% respectively of new renewables capacity, followed by hydropower (nearly 25%). By the end of 2011, total renewable power capacity worldwide exceeded 1,300 GW, up 8% over 2010, renewables comprised more than 25% of total global power generating capacity (estimated at 5,360 GW in 2011) and supplied an estimated 20.3% of global electricity. Nonhydropower renewables exceeded 390 GW, a 24% capacity increase over 2010. Solar PV grew the fastest of all renewable technologies during the period from end-2006 through 2011, with operating capacity increasing by an average of 58% annually, followed by concentrating solar thermal power (CSP), which increased almost 37% annually over this period from a small base, and wind power (26%). Demand is also growing rapidly for solar thermal heat systems, geothermal ground-source heat pumps, and some solid biomass fuels, such as wood pellets The heating and cooling sector offers an immense yet mostly untapped potential for renewable energy deployment. Heat from biomass, solar, and geothermal sources already represents a significant portion of the energy derived from renewables, and the sector is slowly evolving as countries (particularly in the European Union) are starting to enact supportive policies, as well tracking the share of heat derived from renewable sources. Trends in the heating (and cooling) sector include an increase in system size, expanding use of combined heat and power (CHP), the feeding of renewable heating and cooling into district networks, and the use of renewable heat for industrial purposes. Hydropower and geothermal power are growing globally at rates averaging 2-3% per year. In several countries, however, the growth in these and other renewable technologies far exceeds the global average.

International Water Institute, the Public Utilities Board Singapore, the Arab Countries Water Utilities Association and the UN Secretary General's Advisory Board on Water. Strong local support also came from event sponsors such as the Abu Dhabi Water and Electricity Authority and Environment Agency Abu Dhabi. "The whole event really places water and energy in the spotlight. World leaders, regional decision makers and the industry - from water and energy came together to discuss solutions to global water and energy challenges," said Craig Halgreen, VP Global Communications at Borouge, the principal sponsor of IWS 2013. The Sustainable Solutions Village in the IWS exhibition area showcased ideas that have been successfully implemented in water scarce communities across the world, and the IWS Project Stream brought together buyers and sellers from the international water community to explore beneficial synergies and establish partnerships. Meanwhile, the Green Ideas Fair, run in conjunction with the World Future Energy Summit, encouraged students to submit and display their environmental sustainability solutions. Winners were decided thorough an on-site voting system with cash prizes awarded to the top three

with buyers, hear about new projects using energy efficient products and learn about government policies promoting a more efficient and subsequently sustainable future. In 2007, the Government of Abu Dhabi launched the Abu Dhabi Vision 2030 to provide the Emirate with the strategic environment that achieves sustainable urban planning and economic growth. The New Building Codes, which represent one of the biggest changes to the municipal system in many years, will unify building practices and create better, safer, greener buildings that are more cost-effective and durable, and which are built to even higher health and safety standards. The World Future Energy Summit (WFES) is the world's foremost annual meeting committed to promoting the advancement of future energy, energy efficiency and clean technologies by engaging political, business, finance, academic and industry leaders to drive innovation, business and investment opportunities in response to the growing need for sustainable energy. WFES 2014 will be held at ADNEC from 20 - 22 January, 2014 in Abu Dhabi.

21


A Speech by Her Majesty Queen Rania Al Abdullah at the 'World Future Energy Summit' in Abu Dhabi on January 15, 2013 Her Majesty Queen Rania Al Abdullah

A

s it is an honor to be here with you today, so is it a pleasure to be part of a conference that focuses all of us on an issue as crucial as our very lifeblood, Energy. I'm humbled to be surrounded by such a distinguished and talented audience: politicians, business leaders, innovators, scientists, engineers and entrepreneurs. In fact, I half expected to walk in and see thousands of light bulbs above your heads sparking…popping… and burning with brilliant ideas! Which makes me think…why are great ideas always symbolized by a light bulb? I'd love to know. By being here today, you're already part of the solution to the global energy crisis. Fuelling our future with innovation and humanity. Bringing power, and with it, empowerment, to millions around the world. So, thank you Sheikh Mohammed bin Zayed Al Nahyan and Abu Dhabi, and Masdar for bringing us together. I cannot think of a better place for us to gather. Abu Dhabi's bold vision for sustainable energy is transforming this nation and inspiring our region….at a time when the Arab world is at a critical juncture. No one can predict the future, but this much is true: energy requirements will play a vital role in determining it.

poorest countries in terms of energy resources. This stark disparity is evident even in countries that share borders. Despite neighboring some of the most oil rich countries, my country, Jordan, relies on imports to cover 96 per cent of our energy needs. Our region hosts yet another contradiction. We're rich in the energy of our overwhelmingly young population, but poor in the opportunities we can offer them. And we've all seen the result of that. Frustrated energies spilling onto the Arab street over the past two years. According to a Gallop poll conducted last year, in the midst of the unrest, the majority of Arab youth still place finding a job as their number one priority. Yet, if we continue with business as usual, too many are unlikely to find one in the next 5 years. It was Thomas Edison, the inventor of the aforementioned light bulb, who said that, “Discontent is the first necessity of progress.' Well, we've seen the discontent; now let's work on the progress. But in the absence of long-term, sustainable solutions to our energy needs, progress will be slow and uneven. Not just in this region, but everywhere. Today 1.4 billion people, 1 in 5 in the world, still cannot access grid electricity. For a billion more, access is unreliable. And, without sustainable energy, there can be no sustainable development.

The Arab world includes some of the richest and the

7 22


Energy is humanity's lifeblood; where it flows, prosperity burgeons. Where it stalls, the impoverished and disadvantaged languish…burdened by multiple challenges. The most crippling effects of energy poverty are felt by children. It is a cruel irony that those who've had the least to do with climate change and energy crises are paying the highest price. And they know it. Last year, the Child Fund Alliance surveyed over 6,000 children aged between 10 and 12, from 47 countries, to find out about their hopes, aspirations and fears. In one question, they were asked, “If you could do one thing to improve the environment around your community, what would it be?” The answers might surprise you. They didn't say, “build a soccer field” or, “give us a playground.” Some of the most popular responses from children were pleas to improve infrastructure. “Drill for water.” “Build schools and hospitals.” “Provide electricity and latrines.” Although they were young, they were wise beyond their years. In recent years, the global community has made great progress in improving the lives of children, with more children enrolled in school, less global deaths among children under 5, more access to clean drinking water. But, in too many places, this progress is not only slowing, it's in danger of stalling. Take Gaza, where power cuts, a daily reality, make studying at home tough. Street lamps there are not only illuminating roads, they're lighting up futures. Look…and you will see children huddled under them, textbooks in hand, reading, and learning. They have learned to make a little light go a long way. Looking up from his notes, ten-year-old Yazan, says, "When my mother buys me a candle at home to study, it doesn't last long so I come here. I hardly ever notice the passing cars; I'm here to study because I wish to become a doctor.” Here's the thing. Maths can be hard. Grammar can be hard. Exams can be hard. Light to study by in the evening, in the safety of your home…? That should be easy. Because if it's not easy, children will drop out of school. And as they do so, the promise of better health…good jobs…and stronger economies goes with them. Or take Yemen, where, in the past year, there have been some days with less than one hour of electricity… and where sitting under street lamps to study is simply not an option for girls. “We were tired of darkness,” said 16 year old Wafa Al-Rimi. And, so, with the help of INJAZ Yemen and some private sector guidance, she formed an all female company that invented solar-powered lights for which they won INJAZAl-Arab's Best Company of the Year in November. Or take Sudan, where midwives pray that mothers will give birth in daylight. Because when darkness descends, it is only by the flickering flame of a kerosene lamp,

with all its choking fumes, that fragile newborns are brought into the world. Nimat, a midwife, recalls a harrowing moment during a delivery. “Suddenly, a very strong wind blew out the lamp's light. I was forced to continue the delivery in darkness, fumbling and guessing what to do.” Birth. The most critical moment for a mother and her newborn child…and the light goes out. Or take Iraq, where black-outs are so frequent, the Al-Dakhil Clinicin Baghdad had to destroy precious medicines because they couldn't be kept at the right temperatures. And where they had to cancel their children's vaccination program because the vaccines couldn't be stored properly. Children don't deserve these injustices. But there is light…and well before the end of the tunnel. You and I know that there are no technical barriers to universal access to modern energy. With capital investment and political will, we could light up schools for children…power health clinics for mothers and their babies…and pump clean water for families. With new energy we could fuel a solar revolution… bring about a boom in the science, engineering and manufacturing fields…build green industries and green jobs…and open new markets for aspiring entrepreneurs. Proven, innovative solutions exist. And I'm proud that many of them are coming from the Arab World. I'm proud that in Jordan, Bedouin women are training to be solar engineers…swapping unhealthy and expensive kerosene lamps for solar power…so that families have more money. Or in Egypt, where farmers are exploring biodynamic agriculture …using compost to turn desert lands into healthy soil. And where they're exploring innovative irrigation methods to reduce water stress. I'm proud of Abu Dhabi…of its global leadership role in sustainable development. And Masdar City…a test-bed for renewable energy and technology. And, I'm pleased that, for the first time, this conference is engaging and encouraging high school students to find innovative energy solutions, through the Zayed Future Energy Prize. But while there are many examples of new energy technologies, they are still too few and far between. They must be streamlined and scaled up. Made cheaper and more efficient. Ladies and gentlemen, there is an industry waiting to be tapped. And the Arab world is perfectly positioned not only to tap it…but to lead it. In so doing, we would be addressing one of the key fundamentals to a more corrective course for the region, using the potent energy of our people to chart the way forward. Let's be inspired by Edison. 'I have not failed,' he said, 'I've just found 10,000 ways that won't work.' I say, with your help, let us find one that will.

23


Her Majesty Queen Rania Al Abdullah is a mother, a wife, a boss, an advocate, and a humanitarian. She once said, “I just wake up and feel like a regular person. At the end of the day you are living your life for the people that you represent. It's an honour and a privilege to have that chance to make a difference a qualitative difference in people's lives and it's my responsibility to make the most out of that opportunity.�

themselves and their loved ones. JRF is also recognized as a leader in the region for its achievements in protecting children. From rescuing abused children to healing whole families, JRF is now a centre of excellence, sharing its knowledge and know-how with others in and outside of the country. Abroad, Queen Rania works for greater global action on access to quality education, and in her capacity as Eminent

For that reason, Queen Rania spends much of her time listening to and talking with the people of Jordan, to learn from them the best way to improve their livelihoods and Jordan's prospects. Queen Rania spearheads efforts in Jordan to adopt a holistic approach to national education, encouraging agencies and organizations to work on classroom quality, teaching standards, computer access, family involvement, community investment, and health awareness.

Advocate for UNICEF and Honorary Chairperson for UNGEI, she campaigns on behalf of children in need. She also participates in international gatherings, such as the Clinton Global Initiative and the World Economic Forum, of which she is a Board Member. As an Arab, Muslim woman, Queen Rania is committed to reconciling people of different faiths and cultures by encouraging cross-cultural dialogue, particularly amongst young people.

Through initiatives, like Madrasati and the Teachers Academy, Queen Rania is helping Jordan's children get the best start in life by repairing and revamping local schools, while inspiring teachers to be their best. She believes that the power of partnerships between the public, private, and non-profit sectors is a source of great potential for change in Jordan's education system.

Her Majesty is author of the New York Times Best Seller, 'The Sandwich Swap', a children's story about two young girls, Lily and Salma, who learn the value of diversity by exchanging food at school. Queen Rania is also the author of two other stories, 'The King's Gift' and 'Eternal Beauty'.

The Jordan River Foundation (JRF) is Queen Rania's NGO that gives a helping hand to the disadvantaged in Jordan. For over ten years it has provided families with skills and knowledge to work themselves out of poverty. Today, it partners with the private sector and entire communities to bring resources, energy, and change to the lives of vulnerable citizens, empowering and inspiring them to believe they can make a difference for

A keen runner, and seeker of good jogging tunes, Queen Rania enjoys spending time with her family and friends in Aqaba, where she can relax and get into a great book. She also makes a mean chocolate chip cookie. Her Majesty is married to King Abdullah II bin Al Hussein of Jordan, they have 4 children: Prince Hussein, Princess Iman, Princess Salma, and Prince Hashem.

24


World's largest OTEC power plant planned for China By Darren Quick

Lockheed Martin has been getting its feet wet in the renewable energy game for some time. In the 1970s it helped build the world's first successful floating Ocean Thermal Energy Conversion (OTEC) system that generated net power, and in 2009 it was awarded a contract to develop an OTEC pilot plant in Hawaii. That project has apparently been canceled but the company has now shifted its OTEC sights westward by teaming up with Hong Kongbased Reignwood Group to co-develop a pilot plant that will be built off the coast of southern China.

OTEC uses the natural difference in temperatures between the cool deep water and warm surface water to produce electricity. There are different cycle types of OTEC systems, but the prototype plant is likely to be a closedcycle system. This sees warm surface seawater pumped through a heat exchanger to vaporize a fluid with a low boiling point, such as ammonia. This expanding vapor is used to drive a turbine to generate electricity with cold seawater then used to condense the vapor so it can be recycled through the system.

25


Tropical regions are considered the only viable locations for OTEC plants due to the greater temperature differential between the shallow and deep water. Unlike wind and solar power, OTEC can produce electricity around the clock, 365 days a year to supply base load

planned for key locations in China. Lockheed Martin and Reignwood will begin concept design of the sea-based prototype plant this year with construction due to begin next year. Once it is up and running, the two companies plan to use the knowledge

power. OTEC plants also produce cold water as a byproduct that can be used for air conditioning and refrigeration at locations near the plant.

and experience gained over the course of the project to improve the design of additional commercial-scale plants.

Despite such advantages, and even though demonstration plants were constructed as far back as the 1880s, there are still no large-scale commercial OTEC plants in operation. This is largely due to the costs associated with locating and maintaining the facility off shore and drawing the cold water from the ocean depths. But the time may finally be right.

The companies claim each 100 MW OTEC facility could

With the shelving of the Hawaii OTEC pilot plant, the 10 MW prototype offshore plant will be the largest planned OTEC project to date. Like the Hawaii project, which was also to be a 10 MW facility, the China OTEC plant is designed to pave the way for higher capacity plants ranging from 10 to 100 MW. produce the same amount of energy in a year as 1.3 million barrels of oil and decrease carbon emissions by half a million tons. Assuming oil trading at near US$100 a barrel, they estimate fuel savings from one plant could exceed $130 million a year.

The plant is to be built off the coast of southern China to supply 100 percent of the power needed for a large-scale green resort community being developed by Reignwood Group. The new resort is planned as Reignwood's first net-zero community, with the company also currently developing two large-scale low-carbon resorts and others

Darren's love of technology started in primary school with a Nintendo Game & Watch Donkey Kong (still functioning) and a Commodore VIC 20 computer (not still functioning). In high school he upgraded to a 286 PC, and he's been following Moore's law ever since. This love of technology continued through a number of university courses and crappy jobs until 2008, when his interests found a home at Gizmag

26


IRENA (International Renewable Energy Agency) Policy Brief Renewables Becoming More Competitive Worldwide

grid and in some countries) a lower-cost renewable solution almost always exists. Renewables are also increasingly the most economic solution for new grid-connected capacity where good resources are available. As the cost of renewable power drops, the scope of economically viable applications will increase even further.

“Dramatic recent and projected falls in the costs of renewable energy are making it competitive with fossil fuels in countries across the world, and the least cost option in a growing number of markets. For example, solar energy has already become cheaper than diesel generation, with clear benefits for communities which live in areas far away from the electricity grid� The public debate around renewable energy, however, continues to suffer from an outdated perception that renewable energy is not competitive, forming a significant and unnecessary barrier to its deployment.

?

The rapid growth in the deployment of solar and wind is driving a convergence in electricity generation costs. When excellent local resources are available, mature technologies, such as biomass, geothermal and hydropower, can all produce electricity of very competitive costs, although in limited quantities. As the deployment of wind and solar has increased, we are seeing a reduction in the costs of wind and solar technologies and a convergence in the LCOE of renewable technologies at low levels. This will continue in the short-to medium-term given the current manufacturing overcapacity for wind and solar PV.

?

Further equipment cost reductions can be expected to 2020, which will lower the weighted average LCOE of renewables. The rate of decline to 2020 for solar PV is likely to be slower than in recent years, but wind and CSP may see acceleration. Hydropower, geothermal and most biomass combustion technologies are mature and their cost reduction potentials are not large.

?

Rapid cost reductions to renewable power generation technologies means that up-to-date are required to evaluate support policies for renewables, while a dynamic analysis of the costs of renewables is needed to decide on the level of support. There is insufficient publicity available data to allow policy makers to make robust decisions about the role of renewable power generation.

IRENA's Renewable Power Generation Costs in 2012: An overview is the most current, comprehensive analysis of the costs and performance of renewable power generation today, which analyses 8,000 medium-to largescale renewable power generation projects. Key findings include: ? Renewable account for almost half of new electricity capacity installed and costs are continuing to fall. The rapid deployment of renewables, working in combination with high learning rates, has produced a virtuous circle that is leading to significant cost declines and helping to fuel a renewable revolution. In 2011, additions included 41 GW of new winder power capacity, 30 GW of solar photovoltaic (PV), 25 GW of hydropower, 6 GW of biomass, 0.5 GW of concentrated solar power (CSP) and 0.1 GW of geothermal power. ?

The levelised cost of electricity (LCOE) is declining for wind, solar PV, CSP and some biomass technologies, while hydropower and geothermal electricity produced of good sites are still the cheapest way to generate electricity. Renewable technologies are now the most economic solution for new capacity in an increasing number of countries and regions. Where oil-fired generation is the predominant power generation source (e.g. on islands, off-

27


Drinking Water from the Sea Using renewable energy

systems Desalination powered by renewable energy has also become increasingly attractive to areas rich in fossil fuels, such as the Gulf. More than half of growth in the desalination market is in the MENA region, which has an abundance of renewable energy resources.

Global demand for water is rising, but freshwater sources are becoming scarcer particularly in semi-arid and coastal/island areas. Countries are increasingly turning to desalination of seawater and brackish water sources in order to provide people with clean, fresh drinking water. Desalinated water currently accounts for 0.6% of global water supply. The Middle East and North Africa (MENA) region accounts for about 38% of the global desalination capacity, led by Saudi Arabia. “Desalination is very energy intensive. Countries mostly use fossil fuels to power the process, but this is not sustainable. Fossil fuels are vulnerable to price volatility and supply problems in remote areas such as island communities� Renewable energy offers a sustainable and secure way to desalinate. Currently, only 1% of desalinated water comes from renewable energy, but the technology is improving and prices are coming down. Renewable energy poses a viable cost-effective option in many parts of the world. There is increasing demand for desalinated water in energy-importing countries, such as India, China and small islands. This means there is significant market potential for renewable energy-powered desalination

Global demand for desalinated water is projected to grow by 9% per year between 2010 and 2016. In the Middle East and North Africa, water demand is expected to increase from 9 billion m3 in 2010 to 13.3 billion m3 in 2030. How does renewable energy power desalination? ? Thermal desalination uses heat to vaporize fresh water. This can be powered by solar energy, in particular heat from concentrated solar power (CSP); ? Membrane desalination (reverse osmosis) uses high pressure from electrically-powered pumps to separate fresh water from seawater or brackish water using a membrane. This can be powered by electrica lly from solar photovoltaic and CSP. This is appropriate in arid regions with extensive solar energy potential, such as the Gulf. (For more information, please contact: www.irena.org/publications)

Irena launches roadmap to double renewable energy by 2030 By Amy Cutter, Editor of Outreach UN Secretary-General Ban Ki-moon is leading a global initiative on Sustainable Energy for All (SE4ALL) to mobilise action from all sectors of society in support of three interlinked objectives to be achieved by 2030: 1. Ensure universal access to modern energy services; 2. Double the global rate of improvement in energy efficiency; and 3. Double the share of renewable energy in the global energy mix Speaking on the final day of the third IRENA Assembly in Abu Dhabi, Dr. Robert F. Ichord, Jr., Deputy Assistant Secretary, Bureau of Energy Resources, U.S. Department of State, described the momentum and support that has gathered for the initiative since its inception in September 2011. As a result of this momentum, in September last year Secretary-General Ban Ki-moon convened a high-level meeting on SE4ALL in New York, and together with Jim Yong Kim, President of the World Bank expressed support

for a new phase to implement the aspirational goals. In this context, IRENA has launched REMAP 2030, a global roadmap to identify the policies and actions required to double the share of renewable energy (to 30%) by 2030. The launch, which took place yesterday at the third IRENA Assembly, marks the start of a process which will invite experts and policy makers from across the globe to assess the challenges and opportunities in meeting that goal, taking into account the interactions between renewable energy and the other two SE4ALL objectives. IRENA's initial analysis suggests that increasing the share of renewable energy to 30% is achievable. Speaking at a thematic presentation yesterday afternoon, IRENA's Director-General Adnan Z. Amin presented some of the preliminary findings of the REMAP 2030 project, which indicate that, if progress continues at the current pace, renewable energy will account for 21% of the global energy mix in 2030, leaving a gap of 9%. This presents a significant challenge that requires action at all levels and in different sectors, and Mr. Amin invited governments to show their

28


support by nominating national experts to take part. Dr. Ichord said that IRENA was well positioned as a renewables hub for multilateral action and cooperation and is already playing a key role in the implementation of SE4ALL through activities on policy and enabling environments, technology and knowledge development, financing and innovation models, and outreach and partnership. In response to the presentations, India raised concerns about IRENA's involvement with the SE4ALL initiative, which was not agreed by consensus at Rio+20. In particular, the Indian delegation highlighted that Rio+20 had given clear primacy to access to energy and they therefore had issue with the focus on the goal to double the share of renewables in the global energy mix. To close their statement India reiterated that agreements made at the Rio+20 Summit should not be renegotiated in other forums.

had previously been raised in the morning's ministerial roundtables and at last year's high-level meeting on SE4ALL in his presentation Mr. Amin emphasised that IRENA's involvement was based on the distinction that the initiative provides a collaborative platform to facilitate cooperation between different constituencies, rather than giving directives or binding goals. He continued to say that IRENA would still be conducting research into ways to increase the global share of renewables were SE4ALL not to exist, but that the initiative provides an organising framework for stakeholders that the Agency can utilise to advance their mission. In contrast to India, Germany voiced their commitment to the goals of SE4ALL and said that IRENA's involvement was appropriate given their unique positioning and as SE4ALL was not a negotiated outcome of Rio+20 but a SecretaryGeneral initiative. They stated their support of REMAP 2030 and their intention to contribute to the work with both data and experts.

Seemingly pre-empting the comments from India which

Solar Power “It is high time for a new look at solar energy but also that it is a key to non-nuclear future of the world. It offers a great goal that all countries will recognize the immensity of the bounty to be gained from the solar harvest and give its best in the quest for solar power!�

29


Grid-Connected Residential Renewable Energy Systems “While renewable energy systems are capable of powering houses and small businesses without any connection to the electricity grid, many people prefer the advantages that grid-connection offers. Aside from the major small renewable energy system components, you will need to purchase some additional equipment to connect your system to the electric grid. Grid-connection requirements vary widely, but regulations usually have to do with safety and power quality, contracts (which may require liability insurance), and metering and rates”

components, you will need to purchase some additional equipment (called "balance-of-system") in order to safely transmit electricity to your loads and comply with your power provider's grid-connection requirements. You may need the following items:] ? ? ?

Power conditioning equipment Safety equipment Meters and instrumentation.

Because grid-connection requirements vary, you or your system supplier/installer should contact your power provider to learn about its specific grid-connection requirements before purchasing any part of your renewable energy system. See our page on balance-of-system equipment requirements for small renewable energy systems.

A grid-connected system allows you to power your home or small business with renewable energy during those periods (daily as well as seasonally) when the sun is

Grid-connection requirements from your power provider Currently, requirements for connecting distributed generation systemslike home renewable energy or wind systemsto the electricity grid vary widely. But all power providers face a common set of issues in connecting small renewable energy systems to the grid, so regulations usually have to do with safety and power quality, contracts (which may require liability insurance), and metering and rates. shining, the water is running, or the wind is blowing. Any excess electricity you produce is fed back into the grid. When renewable resources are unavailable, electricity from the grid supplies your needs, eliminating the expense of electricity storage devices like batteries. In addition, power providers (i.e., electric utilities) in most states allow net metering, an arrangement where the excess electricity generated by grid-connected renewable energy systems "turns back" your electricity meter as it is fed back into the grid. If you use more electricity than your system feeds into the grid during a given month, you pay your power provider only for the difference between what you used and what you produced. Some of the things you need to know when thinking about connecting your home energy system to the electric grid include: ?

Equipment required to connect your system to the grid Grid-connection requirements from your power provider State and community codes and requirements

You will need to contact your power provider directly to learn about its specific requirements. If your power provider does not have an individual assigned to deal with grid-connection requests, try contacting your state utilities commission, state utility consumer advocate group (represents the interests of consumers before state and federal regulators and in the courts), state consumer representation office, or state energy office.

Addressing safety and power quality for grid connection Power providers want to be sure that your system includes safety and power quality components. These components include switches to disconnect your system from the grid in the event of a power surge or power failure (so repairmen are not electrocuted) and power conditioning equipment to ensure that your power exactly matches the voltage and frequency of the electricity flowing through the grid.

Equipment required for grid-connected systems

“In an attempt to address safety and power quality issues, several organizations are developing national guidelines for equipment manufacture, operation, and installation (your supplier/installer, a local renewable energy organization, or your power provider will know which of the standards apply to your situation, and how to implement them)”

Aside from the major small renewable energy system

The Institute of Electrical and Electronics Engineers

? ?

30


(IEEE) has written a standard that addresses all gridconnected distributed generation including renewable energy systems. IEEE 1547-2003 provides technical requirements and tests for grid-connected operation. See the IEEE Standards Coordinating Committee on Fuel Cells, Photovoltaics, Dispersed Generation, and Energy Storage for more information. Underwriters Laboratories (UL) has developed UL 1741 to certify inverters, converters, charge controllers, and output controllers for power-producing stand-alone and gridconnected renewable energy systems. UL 1741 verifies that inverters comply with IEEE 1547 for grid-connected applications. The National Electrical Code (NEC), a product of the National Fire Protection Association, deals with electrical equipment and wiring safety. Although states and power providers are not federally mandated to adopt these codes and standards, a number of utility commissions and legislatures now require regulations for distributed generation systems to be based on the IEEE, UL, and NEC standards. In addition, some states are now "pre-certifying" specific models of equipment as safe to connect to the state electricity grid.

Contractual issues for grid-connected systems When connecting your small renewable energy system to the grid, you will probably need to sign an interconnection agreement with your power provider. In your agreement, power providers may require you to do the following: Carry liability insurance -- Liability insurance protects the power provider in the event of accidents resulting from the operation of your system. Most homeowners carry at least $100,000 of liability through their homeowner insurance policies (although you should verify that your policy will cover your system), which is often sufficient. Be aware, however, that your power provider may require that you carry more. Some power providers may also require you to indemnify them for any potential damage, loss, or injury caused by your system, which can sometimes be prohibitively expensive. Pay fees and other charges -- You may be asked to pay permitting fees, engineering/inspection fees, metering charges (if a second meter is installed), and stand-by charges (to defray the power provider's cost of maintaining your system as a backup power supply). Identify these costs early so you can factor them into the cost of your system, and don't be afraid to question any that seem inappropriate. “In addition to insurance and fees, you may find that your power provider requires a great deal of paperwork before you can move ahead with your system. However, power providers in several states are now moving to streamline the contracting process by simplifying agreements, establishing time limits for processing paper

work, and appointing representatives to handle gridconnection inquiries”

Metering and rate arrangements for gridconnected systems With a grid-connected system, when your renewable energy system generates more electricity than you can use at that moment, the electricity goes onto the electric grid for your utility to use elsewhere. The Public Utility Regulatory Policy Act of 1978 (PURPA) requires power providers to purchase excess power from grid-connected small renewable energy systems at a rate equal to what it costs the power provider to produce the power itself. Power providers generally implement this requirement through various metering arrangements. Here are the metering arrangements you are likely to encounter: Net purchase and sale -- Under this arrangement, two unidirectional meters are installed: one records electricity drawn from the grid, and the other records excess electricity generated and fed back into the grid. You pay retail rate for the electricity you use, and the power provider purchases your excess generation at its avoided cost (wholesale rate). There may be a significant difference between the retail rate you pay and the power provider's avoided cost.Net metering -- Net metering provides the greatest benefit to you as a consumer. Under this arrangement, a single, bi-directional meter is used to record both electricity you draw from the grid and the excess electricity your system feeds back into the grid. The meter spins forward as you draw electricity, and it spins backward as the excess is fed into the grid. If, at the end of the month, you've used more electricity than your system has produced, you pay retail price for that extra electricity. If you've produced more than you've used, the power provider generally pays you for the extra electricity at its avoided cost. The real benefit of net metering is that the power provider essentially pays you retail price for the electricity you feed back into the grid. Some power providers will now let you carry over the balance of any net extra electricity your system generates from month to month, which can be an advantage if the resource you are using to generate your electricity is seasonal. If, at the end of the year, you have produced more than you've used, you forfeit the excess generation to the power provider. “While renewable energy systems are capable of powering houses and small businesses without any connection to the electricity grid, many people prefer the advantages that grid-connection offers” Aside from the major small renewable energy system components, you will need to purchase some additional equipment to connect your system to the electric grid. Grid-connection requirements vary widely, but regulations usually have to do with safety and power quality, contracts (which may require liability insurance), and metering and rates.

31


World keenly watching India's solar power initiatives: Dr. Farooq Abdullah, Minister, MNRE According to reports, the world is looking to India for ideas to capture solar energy to fuel development, according to Dr. Farooq Abdullah, Union Minister for New and Renewable Energy (MNRE). He said this while inaugurating the State's off-grid rooftop solar power program in which 10,000 households are involved initially.

expensive coal from origins as South Africa, Australia and Indonesia. “We must focus on trapping clean energy not just from sun but also from wind, geothermal sources and even sea.”

Agency for Non-Conventional Energy and Rural Technology (ANERT), Kerala, an autonomous body under the department of power, is spearheading the program.

This would help reduce our reliance on fossil and other non-renewable energy sources and temper global warming threat. In his address, Chief Minister Oommen Chandy said that rooftop solar power program was the most ideal solution for the State.

Many of the countries are willing to join our efforts at harnessing this giant source of energy, the Union Minister said. Scientists across the country and outside are working on ways to store solar energy in a meaningfully economical manner.

Kerala used to be a power-surplus State in the 1970s and early 1980s but environmental concerns have reversed the situation. This is because hydroelectric power stations have since come to be associated with massive implications for the environment.

“We're all hoping that we'll soon succeed in finding a solution,” Abdullah said. This is a challenge we have to take head-on. “Solar energy is out future. It is rather the future of the world.”

Unlike other State, Kerala does not have the land to spare to house massive solar photovoltaic plants that stand on acres and acres. Given the circumstances, rooftop solar power program has been found to be the most practicable solution.

He expressed happiness that all States are working hard towards this. Rajasthan has gone a long way forward.

“The rooftop solar power program is the first step in the long march towards attaining self-sufficiency in power,” Chandy said.

The Jawaharlal Nehru Solar Power Mission aims to generate 20,000 MW of grid-connected solar power by 2022. Abdullah said that adequate availability of power has implications for not just the general economy and industry but also for jobs.

Speaking on the occasion, electricity minister Aryadan Mohammed said that the program has elicited good response from people.

And this is exactly why the country has been sourcing

ANERT has received 'some 5,000 applications, he said.

32


“We expect to get even more going forward.�

notes this is the highest increase in the industrial age, which began more than 260 years

U.N. sees global role for renewable energy

Conference equates climate with growth

Access to sustainable energy resources is vital to sustainable development, which is a fundamental concern for the United Nations, the secretary-general said. U.N. Secretary-General Ban Ki-moon issued a message to delegates gathered at a weeklong energy summit under way in Abu Dhabi during 2nd week of January 2013. The meeting represents the third session of the International Renewable Energy Agency (IRENA) assembly.

A growing interest in a low-carbon economy means investors can expect a crowded and fast-developing market, a British energy minister said.

IRENA aims to promote widespread and increased use of clean energy resources from hydropower to geothermal technology. Ban, in his statement, said his sustainable energy initiative aims to encourage governments, the public and the private sector to get behind the low-carbon transformation under way across the globe.

British Energy and Climate Change Minister Greg Barker told delegates at the Abu Dhabi Sustainability Week conference that development banks and pension funds should look at a low-carbon future as a growth opportunity. "The opportunities for the global, low-carbon economy are huge and growing at an exponential rate," he said in a statement. "Clean energy and a range of resource efficient projects can expect growing interest in attracting investment as new financial participants crowd into this fast developing market.� The conference began with the third session of the International Renewable Energy Agency's General Assembly. IRENA aims to promote widespread and increased use of clean energy resources from hydropower to geothermal technology.

"Sustainable energy is essential to achieving sustainable development, the overarching priority of the United Nations," he said.

Sultan Ahmed al-Jaber, the Emirati special envoy for energy and climate change, said evolving climate trends that are human-induced could open new business opportunities.

Ban's so-called sustainable energy for all initiative aims to provide universal energy access, double energy efficiency rates and double the share of renewable energy in the global energy sector by 2030. Ban said harnessing sustainable energy resources may "reduce the risks of runaway climate change."\ In November, the U.N. World Meteorological Organization stated there was a 29% increase in the 1990-2010 period in the warming effect of greenhouse gas emissions. WMO

"Abu Dhabi is investing in the future of energy by working with investment partners and governments, like the United Kingdom, to build sophisticated, large-scale renewable energy projects that showcase the economic returns, and environmental benefits, of addressing these pressing issues," he said in a statement.

Global Renewable Energy Market Projections Global investment in renewable energy has grown rapidly in recent years, driven by concerns about climate change, the increasing cost of fossil fuels and national economic policies to create green jobs. Looking forward, global investment in renewable energy projects (excluding hydro) will rise from $195bn in 2010 to $395bn in 2020 and to $460bn by 2030.

longer-term objectives, and digest the effects of the rapid expansion in Biomass & waste Regional outlook

Over the next 20 years this growth will require nearly $7 trillion of new capital. During this period renewable sources, including hydro, will increase their share of total primary energy production from 12.6% in 2010 to 15.7% in 2030. The share of non-hydro renewable resources will increase from 10.3% to 13.2% over the same period.

Geographically Europe will remain the largest regional market for renewables up to 2014, with 25% of world investment, but will experience a contraction over this period as governments review the value of clean energy support mechanisms in the face of severe sovereign debt problems. Growth in the European market will resume post 2015 at an annual growth rate of 8% as investment is scaled up to achieve the European renewable energy target by 2020.

The next 10 years will see a steep climb in investment as countries rush to meet their 2020 renewables targets. In addition, much of the spend in 2018-20 will be in the more costly offshore wind projects, in particular in Germany and the UK. Expenditure on renewable energy projects is likely to dip temporarily in the early 2020s as countries review their

The economic challenges in Europe will be felt less in the rest of the world. In China investment in renewable energy is expected to continue to increase in all years, and by 2014 China will become the largest single market for renewable energy with an annual spend of just under $50bn, accounting for 21% of the world market. The US and Canada are also

33


expected to see no lasting slowdown in project build, together hitting $50bn of investment by 2020. By far the most rapid growth will be seen in the rapidly developing economies of India, the Middle East and North Africa (MENA), Africa and Latin America, which are projected to experience growth rates of 10-18% per year between 2010 and 2020. By 2020 the markets outside of the EU, US, Canada and China will account for 50% of world investment. Technology outlook After 2020 more ambitious energy policies coupled with much lower unit costs of renewable technologies will drive further deployment of renewable energy technologies. Although in the 10 years to 2030, world investment in renewables will rise by a more modest 2.5% per year, this masks a very significant increase in development as the cost of technologies declines. The benefits of cost reductions over time will mostly affect the solar sector, where unit costs are expected to fall by 60% over the next 20 years. This will spur deployment of solar technologies around the world, but it will also mean less capital is required to produce the same output. Annual investment in solar power assets will go from $86bn in 2010 to $150bn in 2020 and then remain constant at $150bn a year between 2020 and 2030.

$71bn in 2010 to $140bn in 2020 and $82bn in 2030. The bioenergy sector will see renewed activity with the commercialisation of second-generation technologies and global supply chains developing in the movement of biomass fuels. Investment in biofuels, biomass and waste-to-energy is projected to increase from $14bn in 2010 to $80bn in 2020 and then remain level in the following decade. Power generation Net power production will increase by nearly 90% over the next 20 years, to 34,000TWh worldwide. Although electricity intensity has declined over the last 20 years and will continue to come down, there is a clear correlation between economic growth and electricity demand. The share of clean electricity (renewables, including hydro, and fossil-fuel plants with carbon capture and storage) is projected to rise from 23% in 2010 to 29% in 2020, reaching 34% in 2030. Within the renewable sector, the share of hydro power is expected to decline from some 19% in 2010 to 15% by 2020. Because of the overall increase in power production, hydro output will still increase in absolute terms by 2% a year. The aggregate share of other renewable technologies, such as wind, solar and geothermal, and CCS, will grow from 5% in 2010 to 19% in 2030, corresponding to a 10% compound annual growth rate. (Source: Bloomberg New Energy Finance)

The wind sector will broadly match solar and grow from

India committed to sustainable energy for all India is committed to sustainable energy for all and it stands among the top five nations of the world in terms of renewable energy capacity, Indian Ambassador to the UAE said. Speaking at the 3rd session of International Renewable Energy Agency (IRENA) being held in Abu Dhabi, Ambassador M K Lokesh said that the country has an installed base of over 26,000 MW, which constitutes 12.5 per cent of the country's total power generation capacity, representing an almost 400 per cent increase in the past five years alone.

Lokesh said: "India is appreciative the work done by IRENA in the area of renewable energy. It has studied the work program put up by the Director General IRENA for the year 2013. "The program is elaborate and includes varied activities." However, he said that over 1.4 billion people in the world, with 400 million in India alone, remain without access to electricity. "With such daunting challenges, the issue is universal access to energy per se, utilizing all forms of energy and not just the renewables. As far as India is concerned, even a doubling of the share of renewables will not make a dent on the scale of our energy poverty," said Lokesh.

"Renewable energy sector in India is now seen as significant player in the grid connected power generation and an essential player for energy access. Investment in renewable energy sector grew by 25 per cent last year and amounted to nearly USD 3.8 billion," he said.

"We in India are committed to sustainable energy for all. We have set ambitious targets for increasing the share of renewables in our overall energy mix. However, as far as UNSG's SE4All initiative is concerned, from India's point of view, primacy needs to be given to ensuring universal access to energy.

India stands among the top five nations of the world in terms of renewable energy capacity Stating India's position on United Secretary General's Initiative on Sustainable Energy for All (SE4ALL)

34


“India sees energy goals set in UNSG's SE4All initiative, as restricting its policy space and options. Particular reference is therefore, invited to the discussions held at Rio+20 conference last June, where IRENA was also present, and where the SE4all initiative was discussed in a great detail," the ambassador said.

which could not be accepted by all parties as a package, it was finally decided to only "take note of the initiative without welcoming it or endorsing." At Rio, member states did not come to an agreement on setting targets on energy access, energy efficiency and renewable energy.

According to him, since the initiative had elements in it,

Kerala plans 25,000-rooftop solar units program Unlike the 10,000-rooftop programme, which is to be formally launched on February 11, the 25,000 plants project will be grid-connected.

(Incidentally, this program is for 1 kW per householdno subsidy will be given for any capacity beyond 1 kW.)�

Even as it is getting ready to formally launch its '10,000 rooftop' program, Kerala is working on the next stepanother program to facilitate an additional 25,000 rooftop solar plants in the State. But unlike the 10,000rooftop program, which is to be formally launched on February 11, the next one will be grid-connected.

For the current program, ANERT has empanelled 15 companies. Any person who is interested in putting up a solar plant on his roof could get it done by any of these companies and be eligible for the state government subsidy.With the subsidies from both the central and state government, the cost for the 1 kW system works out to be around Rs. 80,000. ANERT is also talking to banks for facilitating funding for even this amount, Jayaraju told the press.

This was disclosed by the Director of the Agency for Non-conventional Energy and Rural Technology (ANERT), M. Jayaraju. ANERT is Kerala's nodal body for driving renewable energy.

Kerala is suffering from a big power deficit, Jayaraju said. Since no power plant has come up after NTPC's

Kayamkulam plant in 1998, the peak power deficit in the State is as much as 1,600 MW.A uniqueness of the state is that about 80 per cent of the demand is from the 90 lakh-odd domestic consumers. However, most consumers are affluent and would not mind putting up solar plants on their roofs for the sake of energy security, he said.

The regulations for the grid-tie 25,000 rooftop program are being evolved by the Kerala State Electricity Board and will have to be approved by the state electricity regulatory commission. Jayaraju expressed confidence that the program would be brought in before 2014. “The State Government is also working on the subsidy to those who put up rooftop solar plants. In the current '10,000 rooftop' program, the State gives a subsidy of Rs. 39,000 for a one kW system, over and above the subsidy given by the Ministry of New and Renewable Sources, Government of India.

ANERT on its part is putting up a 2 MW groundmounted solar power plant near Palakkad, Jayaraju said.

35


Well-chosen tariff schemes can boost renewable energy scale-up Effective policies, selected and adapted to suit local conditions, are essential to increase the share of renewable energy in countries at every stage of economic development. Renewable energy deployment is increasingly cost competitive and is at the centre of global efforts to reduce CO2 emissions and extend sustainable energy to everyone on the planet.

In much of Europe, support schemes for renewables are subject to uncertainty because of public deficits, with Spain, Portugal, Latvia, Bulgaria and the Czech Republic all putting commitments to renewable energy on hold. Even in difficult economic times, however, governments can “invest scarce public funds… to create the enabling environment to mobilise private finance” for renewable energy deployment, Glemarec said.

The International Renewable Energy Agency (IRENA) organised an all-day “Workshop on Renewable Energy Policies” on 12 January in collaboration with the German Federal Ministry for the Environment, Nature Conservation and Nuclear Safety. The discussion took place ahead of the third Assembly of IRENA in Abu Dhabi, United Arab Emirates, a global gathering for policy

“For me, one of the most pleasantly surprising things about this workshop was the convergence of views of all the participants, from different institutions, on what it will take to upscale renewable energy,” he added. “And it isn't subsidies. It's to establish an enabling policy environment to reduce investment risk.” Presenters from Germany, Cyprus, Malaysia and South Africa shared the experiences of their countries with various feed-in systems. Participants also discussed ways IRENA could assist its 160 participating countries through its Renewable Energy Policy Advisory Network (REPAN). IRENA, established in 2011, has become the policy hub for efforts to double the share of renewables in the global energy mix by 2030 and provide sustainable energy for all.

discussions about how to double the share of renewables in the global energy mix by 2030. Anywhere in the world, investment in renewable power generation depends on stable regulatory frameworks, transparent planning processes and clear procedures for connection to the grid, workshop participants agreed.

Renewable energy deployment has often been hindered by unclear policy frameworks, which have in turn made project financing difficult. Frequent, unpredictable changes reduce investment certainty, whereas transparent schedules and adjustment methodologies increase predictability. Retro-active changes in policy, in particular, undermine investor confidence. Tariff levels should not be influenced by lobby groups but defined by panels of experts or in a competitive process, workshop participants said. An IRENA policy expert, Dr.Rabia Ferroukhi, introduced and compared FITs, FIPs, and auctions how they work, their benefits and drawbacks. By early 2012, more than 60 countries were using FITs or FIPs, compared to only 30 countries in 2005, she noted. These schemes have become increasingly popular, especially in developing countries. One of IRENA's forthcoming reports, entitled, 'Assessment of Renewable Energy Tariff-Based Support Mechanisms', focuses on auctions schemes, presenting case studies from Brazil, China, France, Morocco, Peru and South Africa.

However, there are no “one size fits all” support schemes. Policies including feed-in tariffs (FITs), auctions, and feed-in premiums (FIPs) need to be adapted to local conditions and varying degrees of market maturity. Hybrid approaches are becoming more common, particularly in developing countries, and local communities must be consulted and included to maximise employment opportunities and local added value, which builds confidence in renewables as the basis for a better future.

Although FITs and FIPs are still the most popular mechanisms, the use of auctions is increasing worldwide, Dr. Ferroukhi said. Over time, FITs, FIPs and auctions have undergone significant changes in the way they are designed, making all three systems more effective and efficient, she added. “Each country has its unique policy goals and capabilities.”

Investors, too, need to have confidence in the market, and the creation of stable long-term policies is essential to the successful deployment of renewable energy in every market. Feed-in tariffs are the most widely used scheme and carry the lowest risk. Auctions although often seen as unsuccessful in the previous decade are increasingly common for wind and other large-scale renewable energy projects.

FITs have the drawback of being discontinuous, with stop and go cycles. Fixed FITs require low capital cost, create high technology diversity, involve a broad spectrum of investors, and are suitable for immature markets.

Even as governments slash green subsidies, renewable forms of energy are rapidly becoming cheaper than oil and gas in many markets. “Today, renewable energy is more cost-competitive than fossil-based energy if you have the right policy framework,” said Yannick Glemarec, Director of Environmental Finance at the United Nations Development Programme (UNDP). “Renewables are the best way for oil-importing countries to save money.”

Another session of the workshop highlighted support policies for wind energy based on research by IRENA, the Global Wind Energy Council (GWEC) and UNDP, while a third session focused on adapting renewable energy tariffs to immature energy markets in developing countries.

36


Sustainable energy for all? Energy delivery models involving the private sector By Emma Wilson and Ben Garside, International Institute for Environment and Development Development Programme's Rural Energy Development Programme in Nepal. Research carried out by the International Institute for Environment and Development (IIED) has highlighted a number of lessons for design and implementation of energy delivery models for the poor: Private sector interventions alone often cannot reach the poorest. Propoor models usually require 'nontraditional' business partners, such as government, non-government organisations, enterprise associations, social enterprises and communities. A key challenge is targeting government and donor support to stimulate and enhance private sector involvement. Understanding the socio-cultural context is important in designing models that reach the poor. This understanding may help identify new entry points for the poor and ways of capturing their dynamism and innovation in designing products and services that meet local preferences one size does not fit all.

�The UN Sustainable Energy for All initiative (SE4ALL), launched in 2012, places huge emphasis on the role of the private sector in delivering universal energy access, along with energy efficiency and an increase in renewable energy's contribution to the energy mix. Achieving these ambitious goals will require innovations in energy delivery models and new types of partnership between the public and private sectors and civil society�

The success of energy access initiatives should be measured in terms of development benefits not the number of households connected to the grid or efficient cookstoves distributed. The 'indicators of success' should be defined with the end-users and reflect the development benefits generated by energy access, such as improved health, education and livelihoods.

The term 'energy delivery model' refers to the combination of technology, finance and management needed to supply energy to users. The delivery model can be designed as an enterprise, development project or a government program. Innovations in energy delivery models can help to ensure the poor gain access to the benefits of modern energy services. Meeting the SE4ALL goals will involve enabling lowincome households to benefit from the use of goods, such as efficient cookstoves or solar lamps. Combining affordability with quality, while ensuring the design is both useful and culturally acceptable to users, are challenges that have been tackled by the designers of cookstoves such as the Anagi cookstove in Sri Lanka and solar product companies working in Africa, such as Tough Stuff and d.light. Innovative pay-as-you-go payment systems have been developed by Eight19, Village Infrastructure and others. Development benefits can be achieved by enabling smallscale entrepreneurs to provide distribution services for solar products or stoves to the most outlying regions. Franchise models, such as SolarAid's SunnyMoney, are another option for local entrepreneurs. Co-operative models can be effective in certain contexts, for example the hydro-power systems installed by United Nations

Lack of knowledge and understanding of delivery models is a key obstacle to investment. A survey of entrepreneurs involved in energy delivery to the poor revealed a need for more systematic analysis of delivery models, in order to provide investors, governments and donors with evidence of their impact, financial sustainability and potential return on investment. Business analysis tools, such as Osterwalder's 'business model canvas', can be applied to in-depth case studies to highlight pro-poor innovations within a delivery model. Combining this with established tools such as Practical Action's 'market mapping' methodology allows for analysis within a specific context. This approach highlights the risks of replicating 'successful' delivery models when contextual factors are uncertain or inappropriate to a given model. Interventions that target vulnerable groups are often more sensitive to these factors and models require appropriate tailoring. By exploring how energy delivery models can benefit the poor, we can inform efforts to ensure that energy access interventions contribute to the SE4ALL goals and deliver lasting development impacts.

37


The transformative power of renewable energy feed-in tariffs in Africa By World Future Council, Heinrich Böll Foundation and Friends of the Earth

“Africa is facing an energy crisis: the existing production capacity cannot meet the growing demand for electricity. The electricity needed to power and grow the economy, drive local development and tackle urban and rural poverty is simply not there. In addition, traditional sources have become unreliable, unaffordable or increasingly unacceptable. Energy has been described as the 'missing millennium development goal' that enables others to be achieved, yet according to the World Bank less than 25% of Sub-Saharan households have access to electricity, falling to 10% in rural areas” The traditional energy solution has relied on fossil fuels, yet not only are they becoming unaffordable, but their historic consumption by rich, industrialised nations is driving dangerous climate change. On the continent that has done least to cause it, the effects are already evident, increasing the frequency and severity of floods and droughts and impacting people's livelihoods. This has also undermined the generation capacity of one of the continent's major energy sources hydropower, which has also come under pressure because of its negative impacts on people and ecosystems. In finding a sustainable, affordable and reliable energy

solution to meet its needs, Africa has the opportunity to leapfrog the dirty development pathways followed by countries in the global North and power its economies and its societies through renewable energy. The UN Secretary General Ban Ki-moon said in September that “Providing sustainable energy for all could be the biggest opportunity of the 21st century. Sustainable energy is the golden thread that connects economic growth, social equity, and a climate and environment that enables the world to thrive.” Renewable Energy Feed-in Tariffs (REFiTs) have been successful at increasing the use of renewable technologies worldwide. REFiTs encourage investment in renewable energy generation from individual home owners and communities to big companies by guaranteeing to buy and pay for all the electricity produced. As of 2012, 65 countries have implemented some form of a REFiT, driving 64% of global wind installations and 87% of global photovoltaic (solar) installed capacity. While the majority of these installations have occurred in industrialised countries, particularly Europe, the African continent has significant untapped renewable energy potential. REFiTs have the potential to transform energy systems and societies in profound and tangible ways. When tailored to

38


the local context, they can successfully increase overall energy production both on and off the grid, boost economic development and improve access to clean energy for all while avoiding the emission of green house gases and other problems related to dirty development. Moreover, the decentralised approach of REFiTs allows for alternative ownership and governance models and provides the opportunity to empower communities as well as refreshing local democracy and self-governance.

areas. Community-scale mini-grids can provide all the benefits of the grid while encouraging greater levels of democratic control and ownership over local energy systems. From the experiences of these countries, it is possible to draw several broad lessons for countries interested in developing their own REFiT. In order to build momentum for a REFiT policy, it is important to have high-level political support as well as buy-in from all other stakeholders. South-South learning exchanges involving ministries, utilities, regulators, financiers, project developers and community representatives have been a successful tool in this context.

Several African countries have already introduced the policy, including Algeria, Kenya, Mauritius, Rwanda, South Africa (which abandoned its REFiT in favour of a bidding process), Tanzania, and Uganda. Many more are either developing their REFiT or planning to, such as Botswana, Egypt, Ethiopia, Ghana, Namibia, and Nigeria. Challenges being addressed vary from country to country, as although they hail from the same continent, there is a great deal of difference between them.

Broad coalitions involving civil society in addition to policy makers and private sector representatives have proven successful in designing and implementing REFiT policies that are resilient to changes in the political landscape.The success of a REFIT depends on an enabling environment. The policy should thus be an integral part of the country's wider development strategy. Awareness raising about renewable technologies in general and REFiTs in particular will help overcome skepticism. Moreover, a specific program to build technical capacity of local companies should be implemented. A strong national value chain avoids expensive imports and provides economic benefits beyond the renewable energy sector.

These countries include a small-island state dependent on fuel imports (Mauritius), the continent's biggest carbon polluter who is facing international pressure to reduce its emissions (South Africa), countries with less than 3% rural electrification (Tanzania), and others with almost universal access to electricity (Algeria, Egypt). This means each country has had different motivations for introducing a REFiT, and is experiencing distinct outcomes.

REFiTs are more than just guaranteed payments for renewable energies. They can promote rural electrification, increase overall generation capacity, provide greater grid stability or aim to promote inclusive economic and social development. These objectives are of course not mutually exclusive, but policymakers will have to decide on where their priorities lie and design the REFiT policy accordingly. Nevertheless, it is clear that REFiTs - whatever their particular design - will be integral to Africa's transition to renewable energy.

Many of the aforementioned countries face the challenge of low levels of electrification and dispersed rural populations. While this is problematic for traditional REFiTs designs, which presuppose a well-developed national grid, Tanzania has shown that REFiTs can also serve decentralised mini-grids. More than just providing clean and environmentally friendly energy, such policies also support wider socio-economic development in rural

Environment “Among the many problems facing us today are two crises that are more closely linked than as generally realized. On the one handand very obviouslywe are beginning to choke on the wastes of our machine age. On the otherand not as evident to most of us, but nonetheless truewe are within sight of the end of fuel supplies for those machines which are the causes of environmental pollution. We continue to demand energy and more energy for the technological life we lead; in doing so we foul the air, earth, water and are reaching nearer to the bottom of the fuel drum. How we are going to overcome the crises depends upon how best we are going to find ways to refill the fuel drum.�

39


New efficiency world record of Ripasso Energy gives lowest cost for Dish Stirling solar power

“Ripasso Energy, a solar technology provider based in Sweden, has demonstrated a new solar-to-gridquality-electricity efficiency world record of 32 % for 30 kW Stirling dish modules in Upington, South Africa at an ambient temperature of above 28 Deg.C.” The Ripasso Energy Stirling Dish technology is especially suited for arid and hot climate in the “sun belt” when one third of the solar energy directly is converted to three-phase electricity through a heat engine driving a rotating generator and without any need for water cooling. Earlier tests and reports from U.S. DoE, IRENA, ESTRELA, IEA and others have pointed out the many advantages for Stirling dish technology. However this has not been fully demonstrated for commercial operation until now. The large engine size of 30 MW, professional automotive production and very accurate solar tracking provides cost efficient and robust CSP technology and an important step towards a clean energy sustainable future”, says Gunnar Larsson, Managing Director for Ripasso Energy. The Ripasso Energy solution is modularized without any need for central turbines or DC/AC converters allowing step-by-step implementation with generation starting from the first units in service. Low environmental impact in combination with low Levelized Cost Of Energy (LCOE) offers a new “Fast-track” path for solar based world future energy in “the sun belt. The solar conditions in parts of MENA, South Africa and Chile indicates that it is possible to obtain LCOE levels of less than 0.1 Euro per KWh for a 30 MW plant and even lower for larger plants where 0.05 Euro per kWh is

our target. This makes the Stirling dish competitive with all other electrical energy technologies in these countries and also feasible in other regions in Asia, Australia and Americas with relatively high solar radiations”, says Carl Ohlen, Marketing & Sales Director for Ripasso Energy and continues;” Recent reports from IEA, the World Bank as well as the negotiations at the latest UN COP conference in Doha all points out the urgency to de-carbonize the energy system. The Ripasso Energy Stirling Dish offers here an efficient solution with fast implementation for many countries in need of electricity. The design of the Stirling Engine is based on a license from Kockums and since many years used in submarines for the Swedish Navy but also with a previous solar-to-electricity efficiency record from an installation in United States. Ripasso has further developed and commercialized the DishStirling concept to a cost efficient and modularized system with automatic sun tracking modules operating independently and generating 2x30 kW three phase AC power each. These modules are not depending on large centralized turbines but can individually generate electricity from the start and then gradually be combined to larger CSP power plants from hundreds of kW for local and industrial use to hundreds of MW utility scale plants for grid connections. From submarines and also from CSP demonstration sites in USA, Ripasso acquired the license from Kockums and entered other strategic partnerships in order to further develop the Dish-Stirling concept. Since 2011 the Ripasso CSP design has been tested in the factory in Sweden and in Antalya, Turkey. The first commercial power plant is now being built for the South African company, GHG Reductions in Upington, RSA where the solar radiation gives DNI levels which are among the highest in the world (2800 to 3000 kWh/m2 and year). And generating a new world record! Ripasso Energy is located in Malmö, Sweden, near Kockums and close to a highly experienced supply chain originating from the automotive and telecom industry. This ensures efficient and high quality production for the key components. Ripasso Energy is now actively looking for local partners and suppliers around the world in order to further customize CSP solutions to meet each market demand.

40


U.N. sees global role for renewable energy

“Access to sustainable energy resources is vital to sustainable development, which is a fundamental concern for the United Nations, the secretary-general said. U.N. Secretary-General Ban Ki-moon issued a message to delegates gathered at a weeklong energy summit under way in Abu Dhabi during 2nd week of January 2013. The meeting represents the third session of the International Renewable Energy Agency (IRENA) assembly”

Conference equates climate with growth A growing interest in a low-carbon economy means investors can expect a crowded and fast-developing market, a British energy minister said. British Energy and Climate Change Minister Greg Barker told delegates at the Abu Dhabi Sustainability Week conference that development banks and pension funds should look at a low-carbon future as a growth opportunity.

IRENA aims to promote widespread and increased use of clean energy resources from hydropower to geothermal technology.

"The opportunities for the global, low-carbon economy are huge and growing at an exponential rate," he said in a statement. "Clean energy and a range of resource efficient projects can expect growing interest in attracting investment as new financial participants crowd into this fast developing market.”

Ban, in his statement, said his sustainable energy initiative aims to encourage governments, the public and the private sector to get behind the low-carbon transformation under way across the globe.

The conference began with the third session of the International Renewable Energy Agency's General Assembly. IRENA aims to promote widespread and increased use of clean energy resources from hydropower to geothermal technology.

"Sustainable energy is essential to achieving sustainable development, the overarching priority of the United Nations," he said. Ban's so-called sustainable energy for all initiative aims to provide universal energy access, double energy efficiency rates and double the share of renewable energy in the global energy sector by 2030.

Sultan Ahmed al-Jaber, the Emirati special envoy for energy and climate change, said evolving climate trends that are human-induced could open new business opportunities.

Ban said harnessing sustainable energy resources may "reduce the risks of runaway climate change.”

"Abu Dhabi is investing in the future of energy by working with investment partners and governments, like the United Kingdom, to build sophisticated, large-scale renewable energy projects that showcase the economic returns, and environmental benefits, of addressing these pressing issues," he said in a statement.

In November, the U.N. World Meteorological Organization stated there was a 29% increase in the 1990-2010 period in the warming effect of greenhouse gas emissions. WMO notes this is the highest increase in the industrial age, which began more than 260 years

41


Concentrated solar power with thermal energy storage can help Utilities The report found that CSP with a six-hour storage capacity can lower peak net loads when the sun isn't shining, enough to add $35.80 per megawatt hour to the capacity and operational value of the utility, compared to photovoltaic (PV) solar power alone, and even higher extra value when compared to CSP without storage. The net load is the normal load minus variable renewables such as photovoltaic and wind.

“The storage capacity of concentrating solar power (CSP) can add significant value to a utility company's optimal mix of energy sources, a new report by the U.S. Department of Energy's National Renewable Energy Laboratory (NREL) suggests�

The additional value comes because thermal storage allows CSP to displace more expensive gas-fired

controlled by the California Independent System Operator. A report on the value that CSP with thermal storage adds to the California system is expected early next year. The Colorado study marks one of the first times that the operational and capacity value of CSP with thermal storage has been evaluated using a production cost model, a traditional utility planning tool. The NREL authors employed Energy Exemplar's PLEXOS simulation model that allowed them to isolate the relative value of thermal energy storage (TES) with and without storage. CSP with TES, with an ability to store thermal energy in, say, molten salt, can use its heat-energy to drive turbines at power plants over much longer stretches of the day. "We've known for a long time that CSP with storage adds significant value, however, we are now able to quantify this value in the language utilities understand," said Mark Mehos, manager of NREL's Concentrating Solar Power program.

“Compared to other renewable options, at high penetration levels CSP with TES can be dispatched to displace natural gas rather than coal. This is important because electricity produced from natural gas fired generators is typically more costly than that produced from coal. "With CSP with thermal storage, you aren't diving as deep into the generation stack, displacing cheaper and cheaper fuel," Denholm said. "You're always displacing the highest-cost fuel"

generation during peak loads, rather than displacing lower-priced coal; and because it can continue to flatten the peak load in the evenings when PV isn't contributing to the mix because the sun has set. The report, "Simulating the Value of Concentrating Solar Power with Thermal Energy Storage in a Production Cost Model," by NREL's Paul Denholm and Marissa Hummon, noted that the $35.80 per megawatt extra value would come in a scenario in which there is relatively high penetration of renewables into the utility's mix, about 34%. If the penetration was lower, the extra value would be lessened.

Also, CSP with TES can lower peak net loads in the evenings when electricity use can still be high, but PV isn't available. So, it helps utilities offset the need to build new gas-fired generators in order to meet the electricity demand when the sun goes down. "CSP with thermal storage can continually reduce that peak demand as the peak moves into the evening," Hummon said. "It continually maintains a high operational value and high capacity value."

The authors simulated grid operations in two balancing areas primarily in Colorado. NREL is also using the same methodology it developed for the Colorado scenario for the more complex California system

42


Top-10 Solar Market Predictions For 2013 “The photovoltaic industry is in the midst of wrenching changebuffeted by government incentive cuts and nosediving prices that has hurt solar suppliers worldwide, rocked by trade disputes among its major players, and hamstrung by a sputtering global economy,” said Ash Sharma, director, solar research at IHS. “However, there are some bright spots ahead: Solar installations are on the rise, technology is becoming more efficient, and a weak EU market roiled by financial turmoil will be offset by an ascendant China and the United States.” Below are the top 10 predictions for 2013 from the IHS solar research team: The global PV market will achieve double-digit installation growth in 2013, but market revenue will fall to $75 billion. Industry revenuesmeasured as system prices multiplied by total gigawatts installedpeaked at $94 billion in 2011, but fell sharply to $77 billion in 2012, as presented in the figure below. Revenue is projected to decline once again in 2013 to $75 billion, on the back of lower volume growth and continued system price declines, given that PV component prices continue to fall. The solar module industry will consolidate further in 2013. As 2012 comes to a close, fewer than 150 companies will remain in the photovoltaic upstream value chain, down from more than 750 companies in 2010. Most of the consolidation will involve companies going out of business entirely. Many integrated players, particularly those based in China, will fold up shop in 2013. The large expense of building and then operating integrated facilities that are underutilized will be more than many can handle financially. PV module prices will stabilize in 2H 2013 as oversupply eases. Despite a drastic decline in prices along the silicon supply chain since March 2011, solar prices will stabilize by mid-2013. Changes in market dynamics will help restore the global supply-demand balance. Solar trade wars will rage on in 2013, yielding few winners. As of November 2012, there were six different solar trade cases proceeding involving China, Europe, the

United States and India. This cycle of sanction and retaliation will not help solve the fundamental challenge of overcapacity plaguing the global PV industry. South Africa and Romania will emerge as PV markets to watch in 2013. The two countries next year will expand from virtually no solar installations to capacity of several hundred megawatts. The PV uptake in both markets is driven by distinct factors. In South Africa, PV additions will mainly stem from the tenders awarded in 2012; in Romania, the growth driver will be a green certificate (GC) scheme that will stay in place until 2014. Double-digit returns remain possible for European PV projects in 2013. With the subsidy schemes that are currently in place, all EU countries continue to offer attractive conditions for both private and institutional investors. Meanwhile, an evaluation of no-incentive scenarios shows that the most mature market segments are on the cusp of grid parity, allowing healthy returns on investment. Solar will surpass wind in the United States. The year 2013 marks an important milestone, representing the first time that new U.S. solar PV capacity additions will be greater than those made by wind. This is partly a result of the near-term uncertainty over the federal production tax credit for wind. However, it is also a reflection of solar PV's increasing competitiveness as a form of renewable power generation in some key U.S. markets. China will become the world's largest PV market. Total PV installations in China next year are predicted to surpass 6 gigawatts, allowing the country to surpass Germany as the No. 1 solar market on the planet. Energy storage will transform the solar industry. Batteries increasingly are being seen as an attractive way of retaining PV electricity, letting people use the power later in the day to avoid paying high prices for electricity from the grid. Next year IHS forecasts a big jump in the number of residential PV systems installed with batteries attached. New technology will revive equipment vendors' prospects. Improved technologies will help PV manufacturers cut costs, increase margins and ultimately distinguish themselves from the competition. Such a focus creates an opportunity for both manufacturers and equipment suppliers to obtain larger revenue streams.

Middle East and North Africa (MENA) Solar Market Outlook, 2013-2017 “The MENA region possesses the greatest technical potential for renewable energy in the world with much of this potential attributed to solar energy. This potential is now starting to be more seriously considered, driven by rapidly increasing energy usage, high insolation rates, a young and empowered workforce, and an increasing awareness of the costs of burning natural resources The United Arab Emirates, Saudi Arabia, Jordan, Turkey, and Morocco, have ambitious solar power generation goals as well as evolving policies and regulatory frameworks to support these goals. Demonstration projects are being deployed in some countries, while large scale projects are being deployed in others. However, in a region undergoing

dramatic political and social change, questions remain as to the long term outlook for solar energy. In this report, we discuss the drivers for adoption, the major players and stakeholders, the overall market structure, and the long term outlook of each solar market in the MENA region. This 103-page report examines energy scenarios driving solar growth in the MENA region and examines the current and projected solar policies for each country analyzed. The report also provides strategic analysis and a competitive outlook on the companies active in each market. In addition, the report offers solar (PV and CSP) project details for each market along with country-specific demand forecasts to 2017.

43


Achievements

44


Brazil's Energy Matrix Some headaches in sight By Gerda Häring

Brazil's Belo Monte Dam

In 2009, Brazil established the commitment to, by 2020, reduce the emissions of CO2 from 36,1% to 38,9%, a mission that is not easy for a developing country with a population of almost 200 million inhabitants and an ever growing demand for energy. With the implementation of Real as the official currency since 1994, the Brazilian population started to live in a stable economy, which was unprecedented until then. The middle class, as well as the offering of formal jobs, grew. It brought along great expectations from a fraction of the

people that, until the mid 2000s, had no access to education, medical assistance, jobs and credit; let alone computers, internet, microwaves, air conditioners and others. Their lives changed. Today, the so called “C” class (low middle class) sets trends and revolutionizes from eating habits to the country's musical taste, and it happens from the North to the South of the “Tupiniquim Republic”. But these changes in Brazilian society also brought on an increase in the demand for energy to sustain so many new electronic devices in homes and in industries, and it is in this aspect that one identifies a gigantic gap in the

45


efficiency of basic services supply in the country. Problems are old. In 2001, during the administration of the President in charge then, Fernando Henrique Cardoso, Brazilian citizens could already experience the results of lack of investments in the energy sector. The imposed rationing was considered again.

the big cities that consume energy. After the inauguration, it will be 700km from Belém, 756km from Manaus, 2.393km from Rio de Janeiro, 2.403 from São Paulo, 2.560km from Curitiba, 1.982km from Recife (the capital of Pernambuco state) and 1.532km from the national capital, Brasília. Energy transmission, the great villain of Brazilian energetic supply, will continue to be an issue and its loss, the worst limitation. The biggest hindrance in supplying energy to the country today, as in the last decade, maybe won't be the produced amounts of energy, but the difficulty in distributing it.

The Brazilian government, engaged in fulfilling its commitment of reducing CO2 emissions according to the agreement made, encourages researches on green energy sources, like biodiesel. Besides, now it gives more emphasis to solar and wind power, but its greatest investment for the past five years is in what Brazil has considered to be a clean and profitable energy source, whose technology has been dominated for years. Therefore, Brazil hasn't seen any problems in starting to build the hydroelectric plant of Belo Monte, located in the North, more specifically in the state of Pará. The place was chosen because that is where Xingu river has a 96m fall, technically known as the South Amazonian fall line. In this place, the river widens four times more, exhibiting islands and waterfalls, that is, it is the ideal spot to build a hydroelectric plant. The estimated potential for Belo Monte is 11.000MW, which means an average of 4.500MW every year being injected in the Brazilian electric system. Nevertheless, there are problems: the population that lives around the area where the hydroelectric plant will be built; the Indian tribes; the families that live on the banks of Xingu River and the inhabitants of cities like Altamira, Vitória do Xingu and nine others that will see approximately 25.953 Km2 of their territory deforested to built the lake of the hydroelectric plant and its others functional areas, which will total around 503 Km2. The deforestation, the environmental deterioration of the fauna and flora and the disappearing of almost 50% of some towns are causing a major polemic and retaliations against workers who are already found there. The construction work has already been caveated and nearly everyday there are protests against it. Some personalities related to parties linked to the environmental cause have already stood against Belo Monte, and yet the construction works go on, even though slowly due to contrary manifestations. Since its beginning, Belo Monte suffers with restrictions. Its total capacity got diminished because of the need to correspond to the Brazilian environmental laws' demands; moreover, there is the distance between Belo Monte and

According to the Annual Energy Report of 2011, the supply of energy in Brazil was 272,3 Mtep and the actual use was 228,7 Mtep. The loss, including the transformation, added up to 3,7% of what was offered. These results awakened the international attention. The State Grid Corporation, that is the national Chinese energy company, increased its investments in Brazil and finished in January 2013 the purchase of seven assets of electric energy transmission scattered over ten Brazilian states (amounting up to 2.7929km of extension). Until now, these energy company assets belonged to the Spanish Actividades de Construcción, which sold them claiming high levels of loss. The Chinese interest, as broadcasted by the Brazilian press, arose because, like in Brazil, their energy source centers and consumers are separated by long distances, which makes a link between the limitations of the two nations. Due to these restrictions, there may be an exchange of technology, fostering more reciprocal investments. Brazil has an environmental and ethnic battle ahead, for most of the population affected by the construction of Belo Monte hydroelectric plant is made of Indian peoples who demand their rights, alongside with those who live in river banks and inhabitants of the eleven towns that will be deforested or that will simply disappear from the map. It cannot be disregarded that part of it is located in preserved areas. Though IBAMA has given Belo Monte the necessary permits, it is sure that the first deadline to finish the construction has been forgotten. 2019 is already conjectured to be the year for Belo Monte to, finally, send its average 4,500MW to the National Interconnected System (SIN).

Author Gerda Häring holds a Brazilian (Rio de Janeiro), degree in Logistics Management – SENAC RJ College, MBA in Logistics in Foreign Trade (current) – SENAC RJ, Extension in production and planning control – Rio de Janeiro State University (current); working as logistics instructor at SENAC Technical School. Review and translation into English: Rafaela Tuyane Pereira Pinheiro, Brazilian (Rio de Janeiro), graduated in Arts (Portuguese and English Languages) - Federal University of Rio de Janeiro. Master's Course in Linguistics (current) - Rio de Janeiro State University; works as an EFL teacher.

46




Turn static files into dynamic content formats.

Create a flipbook
Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.