APRIL- MAY 2013II V

Advisory Board Dr. A. Jagadeesh | IndiaDr. Bhamy Shenoy | USAEr. Darshan Goswami | USAElizabeth H. Thompson | BarbadosPincas Jawetz | USA

Ediorial Board Salman Zafar | India

Editor & PublisherM. R. Menon

Business & MediaP. Roshini

Book DesignShamal Nath

Circulation ManagerAndrew Paul

Printed and Published byM.R.Menon at Midas Offset Printers, Kuthuparamba, Kerala

Editorial Office'Pallavi' KulapullyShoranur 679122, Kerala(E-Mail: editor.energyblitz@gmail.com)

Disclaimer: The views expressed in the magazineare 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, IndiaTel: +91-466-2220852/9995081018E-mail: editor.energyblitz@gmail.com Web: energyblitz.webs.com

ENERGY LI ZB

T

Ramanathan Menon

APRIL-MAY 2013Our 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.

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Advisory Board Dr. A. Jagadeesh | IndiaDr. Bhamy Shenoy | USAEr. Darshan Goswami | USAElizabeth H. Thompson | BarbadosPincas Jawetz | USA

Ediorial Board Salman Zafar | India

Editor & PublisherM. R. Menon

Business & MediaP. Roshini

Book DesignShamal Nath

Circulation ManagerAndrew Paul

Printed and Published byM.R.Menon at Midas Offset Printers, Kuthuparamba, Kerala

Editorial Office'Pallavi' KulapullyShoranur 679122, Kerala(E-Mail: editor.energyblitz@gmail.com)

Disclaimer: The views expressed in the magazineare 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, IndiaTel: +91-466-2220852/9995081018E-mail: editor.energyblitz@gmail.com Web: energyblitz.webs.com

ENERGY IBL TZ

Ramanathan Menon

APRIL-MAY 2013Our 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.

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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 already-underway 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

Largely unnoticed in the West, Asia's energy revolution is Japan head office in front of the Kyoto railway stationeven gathering speed. It's driven by the same economic and without using superwindows as RMI did in the Empire strategic logic that Rocky Mountain Institute's Reinventing State Building retrofitsaved even more energy (44 percent) Fire analysis and book showed could profitably shift the with a faster payback (two years).United States from fossil-fuel-based and nuclear energy to three-times-more-efficient use and three-fourths As the debate triggered by the Fukushima disaster opens up renewables by 2050. a profound public energy conversation, Japan is starting to

see those tremendous buildings efficiency opportunitiesand Renewable energy now provides one-fifth of the world's to realize that it is the richest in renewable energy (wind, electricity and has added about half of the world's new solar, and marine in particular) of any major industrial generating capacity each year since 2008. Excluding big country. Japan has twice the per-hectare high-quality hydro dams, renewables got $250 billion in private renewable potential of North America, three times that of investment in 2011 alone, adding 84 GW, according to Europe, and nine times that of Germany. Yet Japan's Bloomberg New Energy Finance and REN21. The results renewable share of electricity generation is one-ninth that were similar in 2012. 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.

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

Asia's AcceleratingEnergy RevolutionBy Amory B. Lovins

were approved in 2012, including 3.9 GW of non- China owns most of the world's photovoltaic residential solar. As prices fall, the Industry Minister is manufacturing capacity, which can produce over twice expected to start phasing down the solar feed-in tariff with what the world installed in 2012, so the government has a 10-percent cut this spring. boosted its 2020 PV target to 50 GW to soak up the surplus

in a few years. Meanwhile, overcapacity drove Meanwhile, though, the government changed to one more consolidation, with over 100 makers exiting the world aligned with incumbent monopolists, delaying reforms. market in 2012. But plunging prices plus Western And some utilities have been exploiting a loophole that lets innovation have made wind and solar into likely power-them unilaterally reject renewable offerings, without marketplace winnerseven with incentives shrinking to zero.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 As these internal divisions play out, the Land of the Rising appliance efficiency efforts are trimming demand growth. Sun is getting eclipsedmaking early progress despite To be sure, coal still supplies two-thirds of China's energy persistent obstacles, but falling far short of its potential and and nearly four-fifths of its electricity, but its star is others' progress. Japan added nearly 3 GW of photovoltaics dimming. Two-thirds of the coal-fired power plants added in 2012but even less-organized Italy installed 7 GW in in 200306 were apparently unauthorized by Beijing, but in 2011. Similarly, Japan's windpower association projects the 200610, net additions of coal-fired capacity fell by half, same market share in 2050 that Spain achieved back in then kept shrinking. In 2011, investment in new coal plants 2010. fell by one-fourth to less than half its 2005 level, and

China's top five power companiessqueezed between rising But there are hopeful signs too. Son-san's initiative was coal prices and government-frozen electricity priceslost supported by at least 34 provincial governors. Hiroshi $2.4 billion on coal-fired generation. Coal's hidden costs, Mikitani, billionaire founder of the e-commerce giant including rail bottlenecks, are becoming manifest; public Rakuten, just left the powerful traditional business forum opposition is rising. And now further speeding the shift Keidanren to form a reformist rival group. Slowly, in the 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.

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 subtle and complex Japanese way, business leaders' center slowdown in manufacturing and strong hydro runoff, but 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 renewables and efficiency too are starting to displace coal. world's new wind capacity and should beat 2015's official China is making a real bid to be the new Germany, leading 100 GW windpower target by more than a year. not only in making but also in applying its abundant

6 7

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 already-underway 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

Largely unnoticed in the West, Asia's energy revolution is Japan head office in front of the Kyoto railway stationeven gathering speed. It's driven by the same economic and without using superwindows as RMI did in the Empire strategic logic that Rocky Mountain Institute's Reinventing State Building retrofitsaved even more energy (44 percent) Fire analysis and book showed could profitably shift the with a faster payback (two years).United States from fossil-fuel-based and nuclear energy to three-times-more-efficient use and three-fourths As the debate triggered by the Fukushima disaster opens up renewables by 2050. a profound public energy conversation, Japan is starting to

see those tremendous buildings efficiency opportunitiesand Renewable energy now provides one-fifth of the world's to realize that it is the richest in renewable energy (wind, electricity and has added about half of the world's new solar, and marine in particular) of any major industrial generating capacity each year since 2008. Excluding big country. Japan has twice the per-hectare high-quality hydro dams, renewables got $250 billion in private renewable potential of North America, three times that of investment in 2011 alone, adding 84 GW, according to Europe, and nine times that of Germany. Yet Japan's Bloomberg New Energy Finance and REN21. The results renewable share of electricity generation is one-ninth that were similar in 2012. 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.

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

Asia's AcceleratingEnergy RevolutionBy Amory B. Lovins

were approved in 2012, including 3.9 GW of non- China owns most of the world's photovoltaic residential solar. As prices fall, the Industry Minister is manufacturing capacity, which can produce over twice expected to start phasing down the solar feed-in tariff with what the world installed in 2012, so the government has a 10-percent cut this spring. boosted its 2020 PV target to 50 GW to soak up the surplus

in a few years. Meanwhile, overcapacity drove Meanwhile, though, the government changed to one more consolidation, with over 100 makers exiting the world aligned with incumbent monopolists, delaying reforms. market in 2012. But plunging prices plus Western And some utilities have been exploiting a loophole that lets innovation have made wind and solar into likely power-them unilaterally reject renewable offerings, without marketplace winnerseven with incentives shrinking to zero.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 As these internal divisions play out, the Land of the Rising appliance efficiency efforts are trimming demand growth. Sun is getting eclipsedmaking early progress despite To be sure, coal still supplies two-thirds of China's energy persistent obstacles, but falling far short of its potential and and nearly four-fifths of its electricity, but its star is others' progress. Japan added nearly 3 GW of photovoltaics dimming. Two-thirds of the coal-fired power plants added in 2012but even less-organized Italy installed 7 GW in in 200306 were apparently unauthorized by Beijing, but in 2011. Similarly, Japan's windpower association projects the 200610, net additions of coal-fired capacity fell by half, same market share in 2050 that Spain achieved back in then kept shrinking. In 2011, investment in new coal plants 2010. fell by one-fourth to less than half its 2005 level, and

China's top five power companiessqueezed between rising But there are hopeful signs too. Son-san's initiative was coal prices and government-frozen electricity priceslost supported by at least 34 provincial governors. Hiroshi $2.4 billion on coal-fired generation. Coal's hidden costs, Mikitani, billionaire founder of the e-commerce giant including rail bottlenecks, are becoming manifest; public Rakuten, just left the powerful traditional business forum opposition is rising. And now further speeding the shift Keidanren to form a reformist rival group. Slowly, in the 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.

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 subtle and complex Japanese way, business leaders' center slowdown in manufacturing and strong hydro runoff, but 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 renewables and efficiency too are starting to displace coal. world's new wind capacity and should beat 2015's official China is making a real bid to be the new Germany, leading 100 GW windpower target by more than a year. not only in making but also in applying its abundant

6 7

7

renewable assets. owned industries that dominate coal and nuclear power. India, the world's #3 windpower market, has already

India Starts Tipping installed nearly four times more wind than nuclear capacity. Solar power too added 1 GW in 2012 and is

So what about the country thattogether with Chinais taking off briskly. And of course India has huge efficiency responsible for 76 percent of the world's planned 1.4 opportunities because most of its ultimate infrastructure trillion watts of coal-fired power plants and 90 percent of isn't yet built. Projects like Infosys's 70-percent-less-the projected growth in global coal demand to 2016; that energy-using new offices in Bangalorehelped by ASHRAE plans (implausibly) to build a coal-fired plant fleet twice as Fellow and RMI Senior Fellow Peter Rumseyare gaining big as America's; and that will ultimately surpass China in wide attention. A constellation of impressive new population, though one-fourth of its people still lack nongovernmental efforts with businesses and governmental electricity? allies is starting to focus India's energy policy reforms and

business mobilizations.India's power generation is still mainly coal-fired, but India's coal is only abundant, not cheap. Chronic coal- In all, India seems to be at an energy tipping point. It is sector and logistics challenges have created growing import starting to comprehend its massive efficiency and dependence (as in China, which became a net importer in renewable potential, and enjoys growing private-sector 2009). That helped the six countries that control four-fifths skills to capture that potential, especially if regulatory of global coal exports to gain the market power to boost barriers can be removed. All of this as the power prices, so they did. Rising coal imports and a weakening sectorchastened by the world-record summer 2012 currency gave India a macroeconomic headache and power blackout of 600 million peoplestarts to face the need for producers a financial migraine. serious reforms. The main missing elements, as in China

and Japan, include rewarding utilities for cutting your bill Coal prices 23 times assumptions imposed a grave (instead of selling you more energy), and allowing price/cost squeeze on two of the world's biggest coal demand-side resources to compete in supply-side bidding.plants4-GW projects owned by the largest generating firm (Tata Power, part of Tata Group that's nearly 5 percent of Of course, there are major challenges in modernizing a India's GDP) and by Reliance. Many plants can't even get sprawling, disjointed sector with irregular management enough coal, exacerbating electricity shortages, but the quality and transparency. But with so many brilliant government doesn't want to raise electricity prices, so the entrepreneurs and engineers, important advances are dominoes are falling. In December 2011, Infrastructure already emerging from the bottom up at the firm, Development Finance Company stopped financing new municipal, and state levels, whether led or followed by coal plants. In February 2012, the Reserve Bank of India national policy. Meanwhile, all three of Asia's economic said it wouldn't help banks that got in trouble on new coal- giants will be increasingly informed and perhaps inspired plant loans. Financing dried up. Three weeks later, Tata by the example of their European counterpart and prime announced its investment emphasis had shifted from coal competitor, Germany, which is now switching to a green projects to wind and solar. Led by four of India's richest electricity system faster than anyone thought possible.families, India shelved plans for 42 GW of coal plants in the last three quarters of 2012. That's nearly a fourth of In late 2012, RMI's Amory Lovins spent seven weeks in existing total capacity, or 68 percent of the government's Japan, China, India, Indonesia, and Singapore observing short-term targetonly 32 percent of which Coal India says it Asia's emerging green energy revolution. In February can fuel. With power-hampered growth threatened by even 2013, he returned to Japan and China. Japan, China, and scarcer or costlier power, some of India's electricity leaders Indiaall vulnerable to climate changeturned out to be in are seeing their way forward in superefficiency, distributed different stages of a “shared and massive shift” to a green renewables, and microgridsand not only in rural areas. energy future, one with remarkable similarities to RMI's

Reinventing Fire vision for the United States. A version of As in China, vibrant private-sector entrepreneurship in this article originally appeared on Rocky Mountain renewables should be capable of far outpacing the state- Institute's blog, RMI Outlet (http://blog.rmi.org).

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.

From Grey to Green

Renewable Energy

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

Russia, India, China and South Africa) countries should invent and help inventors to build their development Since few decades, we have seen the transition between instead of entering into the international major groups the XIX-XXth century's mechanical era and the dependency, particularly for food, water and energy.computerised XXth century's end which has helped a

strong world economy seesaw from XIXth industrialised countries to the BRICS countries.

Almost renewable energy industrial plans are made of a In the same time period, several evident statement of facts first drop and then, stops. Renewable energy technologies has shown to the world that “Renewable” and “Green” seems to reach the goal of easing one's conscience, often ways of evolution are imperative and highly profitable, and rapidly controlled by fossil and nuclear majors, and then not only for industrial benefits. stays at this very first stage. Providing renewable energy These two simultaneous phenomenons are providing the should enter in a global vision and then it become as shown opportunity of the coming century: To start a new round with Tar Kovacs Systems “SeaSpace” project, a “Virtuous with new ideas....green if possible. It means Economic Cycle”, self continuing and self-generated. The INNOVATION. new involved technology's final cost are then less than any

previous technology.

A real opportunity to reinvent our industrial world, and why not, our economical world is offered to nations which Tar Kovacs Systems group has started as a French design are ready to move on and to those which are growing up office for innovation in green technologies and renewable with an exceptional opportunity of choice. This energy production means, following the “Prestige” oil opportunity doesn't consist in buying old, obsolete and tanker sunk in 2003. Its global ocean technology is based dirty technologies from abroad. As the mobile phone has on a new concept of the fuel cell. The result is cumulating brought unlimited potentials to countries which were not for ocean the same properties and potentials than the yet equipped with land line phones, new technologies aircraft industrial era, the steam power industrial era and allow to build new green industries without passing by the the jet propeller era in one single technology. previous polluting and expensive steps.

With Tar Kovacs Systems, oceans are open to all activities For example, it is not a good idea to build cars in India if it as they are on shore and in the space, with a real time and works like the old one, with oil fuel. The BRICS (Brazil, full communication & control.

Greening India… By Tarkovacs Stefan

Tar Kovacs Systems “Virtuous Economic Cycle”

8 9

7

renewable assets. owned industries that dominate coal and nuclear power. India, the world's #3 windpower market, has already

India Starts Tipping installed nearly four times more wind than nuclear capacity. Solar power too added 1 GW in 2012 and is

So what about the country thattogether with Chinais taking off briskly. And of course India has huge efficiency responsible for 76 percent of the world's planned 1.4 opportunities because most of its ultimate infrastructure trillion watts of coal-fired power plants and 90 percent of isn't yet built. Projects like Infosys's 70-percent-less-the projected growth in global coal demand to 2016; that energy-using new offices in Bangalorehelped by ASHRAE plans (implausibly) to build a coal-fired plant fleet twice as Fellow and RMI Senior Fellow Peter Rumseyare gaining big as America's; and that will ultimately surpass China in wide attention. A constellation of impressive new population, though one-fourth of its people still lack nongovernmental efforts with businesses and governmental electricity? allies is starting to focus India's energy policy reforms and

business mobilizations.India's power generation is still mainly coal-fired, but India's coal is only abundant, not cheap. Chronic coal- In all, India seems to be at an energy tipping point. It is sector and logistics challenges have created growing import starting to comprehend its massive efficiency and dependence (as in China, which became a net importer in renewable potential, and enjoys growing private-sector 2009). That helped the six countries that control four-fifths skills to capture that potential, especially if regulatory of global coal exports to gain the market power to boost barriers can be removed. All of this as the power prices, so they did. Rising coal imports and a weakening sectorchastened by the world-record summer 2012 currency gave India a macroeconomic headache and power blackout of 600 million peoplestarts to face the need for producers a financial migraine. serious reforms. The main missing elements, as in China

and Japan, include rewarding utilities for cutting your bill Coal prices 23 times assumptions imposed a grave (instead of selling you more energy), and allowing price/cost squeeze on two of the world's biggest coal demand-side resources to compete in supply-side bidding.plants4-GW projects owned by the largest generating firm (Tata Power, part of Tata Group that's nearly 5 percent of Of course, there are major challenges in modernizing a India's GDP) and by Reliance. Many plants can't even get sprawling, disjointed sector with irregular management enough coal, exacerbating electricity shortages, but the quality and transparency. But with so many brilliant government doesn't want to raise electricity prices, so the entrepreneurs and engineers, important advances are dominoes are falling. In December 2011, Infrastructure already emerging from the bottom up at the firm, Development Finance Company stopped financing new municipal, and state levels, whether led or followed by coal plants. In February 2012, the Reserve Bank of India national policy. Meanwhile, all three of Asia's economic said it wouldn't help banks that got in trouble on new coal- giants will be increasingly informed and perhaps inspired plant loans. Financing dried up. Three weeks later, Tata by the example of their European counterpart and prime announced its investment emphasis had shifted from coal competitor, Germany, which is now switching to a green projects to wind and solar. Led by four of India's richest electricity system faster than anyone thought possible.families, India shelved plans for 42 GW of coal plants in the last three quarters of 2012. That's nearly a fourth of In late 2012, RMI's Amory Lovins spent seven weeks in existing total capacity, or 68 percent of the government's Japan, China, India, Indonesia, and Singapore observing short-term targetonly 32 percent of which Coal India says it Asia's emerging green energy revolution. In February can fuel. With power-hampered growth threatened by even 2013, he returned to Japan and China. Japan, China, and scarcer or costlier power, some of India's electricity leaders Indiaall vulnerable to climate changeturned out to be in are seeing their way forward in superefficiency, distributed different stages of a “shared and massive shift” to a green renewables, and microgridsand not only in rural areas. energy future, one with remarkable similarities to RMI's

Reinventing Fire vision for the United States. A version of As in China, vibrant private-sector entrepreneurship in this article originally appeared on Rocky Mountain renewables should be capable of far outpacing the state- Institute's blog, RMI Outlet (http://blog.rmi.org).

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.

From Grey to Green

Renewable Energy

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

Russia, India, China and South Africa) countries should invent and help inventors to build their development Since few decades, we have seen the transition between instead of entering into the international major groups the XIX-XXth century's mechanical era and the dependency, particularly for food, water and energy.computerised XXth century's end which has helped a

strong world economy seesaw from XIXth industrialised countries to the BRICS countries.

Almost renewable energy industrial plans are made of a In the same time period, several evident statement of facts first drop and then, stops. Renewable energy technologies has shown to the world that “Renewable” and “Green” seems to reach the goal of easing one's conscience, often ways of evolution are imperative and highly profitable, and rapidly controlled by fossil and nuclear majors, and then not only for industrial benefits. stays at this very first stage. Providing renewable energy These two simultaneous phenomenons are providing the should enter in a global vision and then it become as shown opportunity of the coming century: To start a new round with Tar Kovacs Systems “SeaSpace” project, a “Virtuous with new ideas....green if possible. It means Economic Cycle”, self continuing and self-generated. The INNOVATION. new involved technology's final cost are then less than any

previous technology.

A real opportunity to reinvent our industrial world, and why not, our economical world is offered to nations which Tar Kovacs Systems group has started as a French design are ready to move on and to those which are growing up office for innovation in green technologies and renewable with an exceptional opportunity of choice. This energy production means, following the “Prestige” oil opportunity doesn't consist in buying old, obsolete and tanker sunk in 2003. Its global ocean technology is based dirty technologies from abroad. As the mobile phone has on a new concept of the fuel cell. The result is cumulating brought unlimited potentials to countries which were not for ocean the same properties and potentials than the yet equipped with land line phones, new technologies aircraft industrial era, the steam power industrial era and allow to build new green industries without passing by the the jet propeller era in one single technology. previous polluting and expensive steps.

With Tar Kovacs Systems, oceans are open to all activities For example, it is not a good idea to build cars in India if it as they are on shore and in the space, with a real time and works like the old one, with oil fuel. The BRICS (Brazil, full communication & control.

Greening India… By Tarkovacs Stefan

Tar Kovacs Systems “Virtuous Economic Cycle”

8 9

7

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

Tar Kovacs Systems is having this mind of “Virtuous a real opportunity to build on far off shore as many power Economic Cycle” because it has designed and patented the plants on deep sea bed or on the surface as needed, for half technology to do it, certified at “Vibrant Gujarat 2013”, by cost of any other technology.Principal Secretary D.J. Pandian of Energy & Petrochemical Department. These off shore power plants would then supply cheap

electric energy on shore, on one hand, and green fuels on From the technical equipments to produce constant and the other hand, for all other Tar Kovacs Systems safe renewable energy to the uses of this energy, into a applications like fisher ships, free wild fish farms, new ship multi conversion green fuel states, covering many building, deep exploitation of raw materials, clear water industrial fields, and again to energy production, our wells, and unlimited sea tasks.technology is offering a new concept of global economy.Then, renewable energy production is not the only target BRICS has less than 15 years to win their challenges. The but also a new mean to reach a whole green economy plan, world then will be much more aggressive between winners a real strategic independence, and a powerful capacity to and followers. Tar Kovacs Systems came to India in this export. mind. We need a strong determined country to build the

“SeaSpace” project, already copied in parts by several As Tar Kovacs Systems technology allows to protect, clean European major companies, and we need a political up and exploit oceans and deep sea bed, it allows also to support. Future belongs to audacious.build incredible off shore power plants, providing constant renewable energy without any touch to the sea bed. No Grey to Green? This is first a policy decision. Tar Kovacs anchors, no foundations, no maintenance and no Systems is a worker, ready to build.destruction by any tsunami, typhoon or storm. The result is

investments was the highest in 2011 at $257 billion, with 17 per To support the growth of the energy sector in the UAE, the cent increase.” However, this sector needs more investment government should encourage more investments in this sector as estimated at $6 trillion from China, European Union, US and well as develop a clear legislation to protect businesses in this U.K. until 2035, he added.industry, Rashid Ahmad Bin Fahd, UAE Minister of

Environment and Water, said during the Dubai Global Energy Calling for better legislation, he said that there should be a clear Forum recently.legal framework for investment in the energy sector as well as strict regulations to protect intellectual properties for innovative Energy sector, and especially the renewable energy, are projects.promising sectors in terms of social, economic and

environmental opportunities. This sector can at least create five Encouraging scientific research and increasing awareness about million job opportunities worldwide in addition to cost-efficient the importance of the renewable energy is another initiative that energy that can be provided for the areas suffering from energy the government can adopt to develop the energy sector in the shortage. In the UAE, our government has brought a lot of UAE, Bin Fahd said.attention on this sector and its value, he said.

On the other hand, Ahmad Al Muhairbi, secretary-general of the Pointing to the main renewable energy project across the Dubai Supreme Council of Energy, said that in line with the emirates, Bin Fahd said that Masdar City in Abu Dhabi will UAE's vision of Green Economy and sustainable development, provide 7% of its power demand from the solar energy by 2020 the Dubai Supreme Council of Energy has created this forum as a and Shaikh Mohammad Bin Rashid Solar Park will provide 1% platform to exchange views and expertise where opportunities of the power demand from solar energy by 2020 and five 5% by and innovation can meet challenges.2030.

“In the UAE, we have deployed a number of initiatives to In addition to that, the UAE has a lot of investment in the energy improve energy efficiency, reduce demand and build up the sectors in different countries, he said. “However, the capabilities to sustain our social and economic growth,” he government should attract more investment in this field to grow added.the energy industry further.”

“We have set renewable energy at the top of our agenda to He remarked that world investment in the renewable energy diversify our energy sources and contribute to carbon reduction.”remarkably grew in the last few years. “While these investments

grew six-fold between 2004 and 2011, the size of these

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

10 11

7

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

Tar Kovacs Systems is having this mind of “Virtuous a real opportunity to build on far off shore as many power Economic Cycle” because it has designed and patented the plants on deep sea bed or on the surface as needed, for half technology to do it, certified at “Vibrant Gujarat 2013”, by cost of any other technology.Principal Secretary D.J. Pandian of Energy & Petrochemical Department. These off shore power plants would then supply cheap

electric energy on shore, on one hand, and green fuels on From the technical equipments to produce constant and the other hand, for all other Tar Kovacs Systems safe renewable energy to the uses of this energy, into a applications like fisher ships, free wild fish farms, new ship multi conversion green fuel states, covering many building, deep exploitation of raw materials, clear water industrial fields, and again to energy production, our wells, and unlimited sea tasks.technology is offering a new concept of global economy.Then, renewable energy production is not the only target BRICS has less than 15 years to win their challenges. The but also a new mean to reach a whole green economy plan, world then will be much more aggressive between winners a real strategic independence, and a powerful capacity to and followers. Tar Kovacs Systems came to India in this export. mind. We need a strong determined country to build the

“SeaSpace” project, already copied in parts by several As Tar Kovacs Systems technology allows to protect, clean European major companies, and we need a political up and exploit oceans and deep sea bed, it allows also to support. Future belongs to audacious.build incredible off shore power plants, providing constant renewable energy without any touch to the sea bed. No Grey to Green? This is first a policy decision. Tar Kovacs anchors, no foundations, no maintenance and no Systems is a worker, ready to build.destruction by any tsunami, typhoon or storm. The result is

investments was the highest in 2011 at $257 billion, with 17 per To support the growth of the energy sector in the UAE, the cent increase.” However, this sector needs more investment government should encourage more investments in this sector as estimated at $6 trillion from China, European Union, US and well as develop a clear legislation to protect businesses in this U.K. until 2035, he added.industry, Rashid Ahmad Bin Fahd, UAE Minister of

Environment and Water, said during the Dubai Global Energy Calling for better legislation, he said that there should be a clear Forum recently.legal framework for investment in the energy sector as well as strict regulations to protect intellectual properties for innovative Energy sector, and especially the renewable energy, are projects.promising sectors in terms of social, economic and

environmental opportunities. This sector can at least create five Encouraging scientific research and increasing awareness about million job opportunities worldwide in addition to cost-efficient the importance of the renewable energy is another initiative that energy that can be provided for the areas suffering from energy the government can adopt to develop the energy sector in the shortage. In the UAE, our government has brought a lot of UAE, Bin Fahd said.attention on this sector and its value, he said.

On the other hand, Ahmad Al Muhairbi, secretary-general of the Pointing to the main renewable energy project across the Dubai Supreme Council of Energy, said that in line with the emirates, Bin Fahd said that Masdar City in Abu Dhabi will UAE's vision of Green Economy and sustainable development, provide 7% of its power demand from the solar energy by 2020 the Dubai Supreme Council of Energy has created this forum as a and Shaikh Mohammad Bin Rashid Solar Park will provide 1% platform to exchange views and expertise where opportunities of the power demand from solar energy by 2020 and five 5% by and innovation can meet challenges.2030.

“In the UAE, we have deployed a number of initiatives to In addition to that, the UAE has a lot of investment in the energy improve energy efficiency, reduce demand and build up the sectors in different countries, he said. “However, the capabilities to sustain our social and economic growth,” he government should attract more investment in this field to grow added.the energy industry further.”

“We have set renewable energy at the top of our agenda to He remarked that world investment in the renewable energy diversify our energy sources and contribute to carbon reduction.”remarkably grew in the last few years. “While these investments

grew six-fold between 2004 and 2011, the size of these

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

10 11

The largest solar photovoltaic (PV) plant in Africa was To date Mauritania's electricity grid, like many in Africa inaugurated on April 20, 2013 by the Government of the and around the world, has been reliant on expensive diesel Islamic Republic of Mauritania and Masdar, the renewable generators and exposed to price volatility, energy security energy company of Abu Dhabi in the United Arab and sustainability issues. Further to this the nation's Emirates. demand for energy grew by an estimated 12 percent in 2012, compounding the pressure on their 144-megawatts of The new facility, located in the capital city of Nouakchott, installed capacity and resulting in severe energy shortages.is the largest solar PV plant in Africa at 15-megawatts. It will account for 10% of Mauritania's energy capacity, “Energy access is a pathway to economic and social displace approximately 21,225 tons of carbon dioxide opportunity,” said Mauritania President Mohamed Ould emissions a year, and supply energy to nearly 10,000 Abdel Aziz during the inauguration of the solar plant. homes in Nouakchott. “Electrification, through sustainable sources of energy, is critical in ensuring our people have access to basic services “Globally renewable energy has tremendous potential to and is a step toward improving our infrastructure and long-meet our growing energy needs, and with the business case term economic development.”for renewables improving rapidly, the time has never been better for renewables,” Mr. Adnan Z. Amin, Director- With strong solar and wind energy resources, Mauritania General of IRENA said. “We are encouraged to see one of has the potential to derive a significant portion of its our early Members, Mauritania beginning their transition electricity capacity from clean, secure, and sustainable to an affordable secure and sustainable energy system.” sources of energy. Its wind energy potential alone is almost four times its annual energy demand.

affordable to low-income consumers. Second, promote energy efficiency practices to moderate consumption patterns in energy-intensive economies. Third, facilitate a

Access to environmentally and socially sustainable energy shift to cleaner energy sources where feasible. The Bank is essential to reduce poverty. Over 1.3 billion people are Group is contributing to this worldwide effort, through still without access to electricity worldwide, almost all of lending, analytical support, technical assistance and whom live in developing countries. About 2.7 billion use capacity-building.solid fuels - wood, charcoal, dung, other biomass, and coal - for cooking and heating. Every year fumes and smoke The WBG has formally engaged in active support for the from open cooking fires kill about 1.6 million people, Sustainable Energy for All (SEFA) initiative, with Bank mostly women and children, from respiratory diseases. Group President Jim Yong Kim assuming co-chairmanship

of the initiative's multi-stakeholder advisory board. The Africa faces acute energy challenges, with the lowest initiative, launched by the UN Secretary General Ban Ki-electrification rate of all the regions at 26% of households. moon in September 2011, calls on governments, businesses About 550 million people do not have access to electricity. and civil society to achieve three objectives by 2030: Without access to energy services, the poor are deprived of universal access to energy, including electricity and the most basic economic opportunities needed to improve modern cooking and heating fuels; double the renewable their standards of living. share of power produced and consumed from 15% to 30%;

and double the energy efficiency improvement rate.

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.

Population, technological and economic growth are The Bank Group has launched Communities of Practice for expected to drive up overall energy demand by a third from Hydro-Power and Energy Efficiency, which bring together now to 2030, with 90% of new demand in developing practitioners for knowledge exchange and dissemination of countries. These trends threaten to push global temperature best practices. We will also launch communities of practice above two degrees. on Energy Access and Renewable Energy in 2013. These

communities provide fertile ground for North-South and South-South exchange activities.

Our challenge is to build a sustainable energy future by The Sustainable Energy for All initiative needs data acting on three fronts. First, expand access to energy that is tracking and analytical support. The Bank Group and

Context

“To make the leap to universal access to modern energy services by 2030, new capital investment of about $48 “The Sustainable Energy for All objectives will be billion will be needed every year. This is in addition to achieved through collective action. There is a need for worldwide annual investments of about $450 billion just leadership in all countries. Countries with low access to sustain energy services at current levels” 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”

Strategy

Disseminating knowledge through communities of practice

World Bank Group focuses on Sustainable Energy for All Tracking progress towards the goals

Energy &

The World Bank

1312

The largest solar photovoltaic (PV) plant in Africa was To date Mauritania's electricity grid, like many in Africa inaugurated on April 20, 2013 by the Government of the and around the world, has been reliant on expensive diesel Islamic Republic of Mauritania and Masdar, the renewable generators and exposed to price volatility, energy security energy company of Abu Dhabi in the United Arab and sustainability issues. Further to this the nation's Emirates. demand for energy grew by an estimated 12 percent in 2012, compounding the pressure on their 144-megawatts of The new facility, located in the capital city of Nouakchott, installed capacity and resulting in severe energy shortages.is the largest solar PV plant in Africa at 15-megawatts. It will account for 10% of Mauritania's energy capacity, “Energy access is a pathway to economic and social displace approximately 21,225 tons of carbon dioxide opportunity,” said Mauritania President Mohamed Ould emissions a year, and supply energy to nearly 10,000 Abdel Aziz during the inauguration of the solar plant. homes in Nouakchott. “Electrification, through sustainable sources of energy, is critical in ensuring our people have access to basic services “Globally renewable energy has tremendous potential to and is a step toward improving our infrastructure and long-meet our growing energy needs, and with the business case term economic development.”for renewables improving rapidly, the time has never been better for renewables,” Mr. Adnan Z. Amin, Director- With strong solar and wind energy resources, Mauritania General of IRENA said. “We are encouraged to see one of has the potential to derive a significant portion of its our early Members, Mauritania beginning their transition electricity capacity from clean, secure, and sustainable to an affordable secure and sustainable energy system.” sources of energy. Its wind energy potential alone is almost four times its annual energy demand.

affordable to low-income consumers. Second, promote energy efficiency practices to moderate consumption patterns in energy-intensive economies. Third, facilitate a

Access to environmentally and socially sustainable energy shift to cleaner energy sources where feasible. The Bank is essential to reduce poverty. Over 1.3 billion people are Group is contributing to this worldwide effort, through still without access to electricity worldwide, almost all of lending, analytical support, technical assistance and whom live in developing countries. About 2.7 billion use capacity-building.solid fuels - wood, charcoal, dung, other biomass, and coal - for cooking and heating. Every year fumes and smoke The WBG has formally engaged in active support for the from open cooking fires kill about 1.6 million people, Sustainable Energy for All (SEFA) initiative, with Bank mostly women and children, from respiratory diseases. Group President Jim Yong Kim assuming co-chairmanship

of the initiative's multi-stakeholder advisory board. The Africa faces acute energy challenges, with the lowest initiative, launched by the UN Secretary General Ban Ki-electrification rate of all the regions at 26% of households. moon in September 2011, calls on governments, businesses About 550 million people do not have access to electricity. and civil society to achieve three objectives by 2030: Without access to energy services, the poor are deprived of universal access to energy, including electricity and the most basic economic opportunities needed to improve modern cooking and heating fuels; double the renewable their standards of living. share of power produced and consumed from 15% to 30%;

and double the energy efficiency improvement rate.

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.

Population, technological and economic growth are The Bank Group has launched Communities of Practice for expected to drive up overall energy demand by a third from Hydro-Power and Energy Efficiency, which bring together now to 2030, with 90% of new demand in developing practitioners for knowledge exchange and dissemination of countries. These trends threaten to push global temperature best practices. We will also launch communities of practice above two degrees. on Energy Access and Renewable Energy in 2013. These

communities provide fertile ground for North-South and South-South exchange activities.

Our challenge is to build a sustainable energy future by The Sustainable Energy for All initiative needs data acting on three fronts. First, expand access to energy that is tracking and analytical support. The Bank Group and

Context

“To make the leap to universal access to modern energy services by 2030, new capital investment of about $48 “The Sustainable Energy for All objectives will be billion will be needed every year. This is in addition to achieved through collective action. There is a need for worldwide annual investments of about $450 billion just leadership in all countries. Countries with low access to sustain energy services at current levels” 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”

Strategy

Disseminating knowledge through communities of practice

World Bank Group focuses on Sustainable Energy for All Tracking progress towards the goals

Energy &

The World Bank

1312

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.

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.

options with an emphasis on renewable sources such as The WBG is providing more than $1 billion a year to over hydropower, wind, solar and geothermal, while also 60 countries that is directly focused on expanding access, promoting energy efficiency. Projects support achievement both by extending the grid and through off-grid solutions of universal access to electricity and modern household for remote areas. The Bank Group's financial instruments, fuels, as well as improved utility performance and sector such as partial risk guarantees, reduce risk associated with governance. The Bank Group also provides financing and energy projects to leverage private investment for access, advice to countries on oil and natural gas extraction, while its policy and strategic guidance help governments production, processing, transmission and distribution.create conditions that attract companies who bring new business models, innovative finance or new energy and The Bank Group committed $8.2 billion to support energy energy efficiency technologies. finance in 2012; of which $3 billion from IBRD, $1.9 Since the Rio+20 Summit, 61 countries have opted in to billion from IDA, $2 billion from IFC, and $489 million the Sustainable Energy for All initiative, while businesses, from MIGA. The Bank Group approved a total of $3.6 investors and donors have committed $50 billion to it. The billion in financing for renewable energy projects in fiscal 61 countries, 25 of them in Africa, account for about 80% year 2012, a record 44% share of its annual energy lending 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.

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

Reaching the poor

Moving towards clean energy

in 2012. Looking only at power generation projects Asia ($2.7 billion, 22%). Lending was $2.1 billion (17%) approved in 2012, renewables accounted for an even larger each for Sub-Saharan Africa and Europe-Central Asia, $1.7 share 84%. 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.

Finance for energy access was close to 20% of 2012 commitments, while coal projects accounted for $690 Coal power projects accounted for less than 10% of the million, less than 10% of energy project approvals for the Bank's energy financing approved in 2012. Given its year. The Climate Investment Funds have committed over parallel focus on climate change, the Bank Group seeks $5 billion to date into clean energy projects. 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

About $5.4 billion (43%) of the Bank Group's renewable Group's policy is to support countries in such, but under energy lending since 2007 has been for hydropower, with strict criteria, which are:$1.1 billion (8.5%) each for geothermal and solar PV, and There is a demonstrated developmental impact $875 million (7%) for wind, and smaller amounts for (e.g. improving overall energy security, reducing

biomass and solar thermal. Another $3 billion went to power shortage, or access for the poor);projects in which the specific clean energy technology There is assistance to identify and prepare low supported was not identified beforehand; these include carbon projects;renewable energy funds, credit lines and community-driven There has been optimization of energy sources by development projects which typically support a mix of considering the possibility of meeting the micro-hydro, solar and wind power. country's needs through energy efficiency and

conservation;Within the World Bank Group, the International Finance There has been full consideration of viable Corporation (IFC) was the largest sponsor of renewables at alternatives to the least-cost options (including $4.5 billion (35%) over the six year period since 2007, environmental externalities), and when additional followed by IBRD ($3.7 billion, or 30%), IDA ($2.4 financing from donors for their incremental cost is billion, 19%) and MIGA ($533 million, 4%). not available;

The project uses the best appropriate available “Climate financing instruments housed at the World technology, to allow for high efficiency and, Bank, including the Carbon Finance Unit, the Global therefore, lower GHG emissions intensityEnvironment 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”

About 72% of South Africa's and 70% of India's electricity South Asia led the way with $3.2 billion (26%) in comes from coal-fired power stations, as does over 40% of renewable energy financing since 2007, followed by East the electricity generated in the US. But burning coal and

“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”

Hydropower leads

?

?

?

?

?

“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”

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

14 15

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.

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.

options with an emphasis on renewable sources such as The WBG is providing more than $1 billion a year to over hydropower, wind, solar and geothermal, while also 60 countries that is directly focused on expanding access, promoting energy efficiency. Projects support achievement both by extending the grid and through off-grid solutions of universal access to electricity and modern household for remote areas. The Bank Group's financial instruments, fuels, as well as improved utility performance and sector such as partial risk guarantees, reduce risk associated with governance. The Bank Group also provides financing and energy projects to leverage private investment for access, advice to countries on oil and natural gas extraction, while its policy and strategic guidance help governments production, processing, transmission and distribution.create conditions that attract companies who bring new business models, innovative finance or new energy and The Bank Group committed $8.2 billion to support energy energy efficiency technologies. finance in 2012; of which $3 billion from IBRD, $1.9 Since the Rio+20 Summit, 61 countries have opted in to billion from IDA, $2 billion from IFC, and $489 million the Sustainable Energy for All initiative, while businesses, from MIGA. The Bank Group approved a total of $3.6 investors and donors have committed $50 billion to it. The billion in financing for renewable energy projects in fiscal 61 countries, 25 of them in Africa, account for about 80% year 2012, a record 44% share of its annual energy lending 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.

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

Reaching the poor

Moving towards clean energy

in 2012. Looking only at power generation projects Asia ($2.7 billion, 22%). Lending was $2.1 billion (17%) approved in 2012, renewables accounted for an even larger each for Sub-Saharan Africa and Europe-Central Asia, $1.7 share 84%. 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.

Finance for energy access was close to 20% of 2012 commitments, while coal projects accounted for $690 Coal power projects accounted for less than 10% of the million, less than 10% of energy project approvals for the Bank's energy financing approved in 2012. Given its year. The Climate Investment Funds have committed over parallel focus on climate change, the Bank Group seeks $5 billion to date into clean energy projects. 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

About $5.4 billion (43%) of the Bank Group's renewable Group's policy is to support countries in such, but under energy lending since 2007 has been for hydropower, with strict criteria, which are:$1.1 billion (8.5%) each for geothermal and solar PV, and There is a demonstrated developmental impact $875 million (7%) for wind, and smaller amounts for (e.g. improving overall energy security, reducing

biomass and solar thermal. Another $3 billion went to power shortage, or access for the poor);projects in which the specific clean energy technology There is assistance to identify and prepare low supported was not identified beforehand; these include carbon projects;renewable energy funds, credit lines and community-driven There has been optimization of energy sources by development projects which typically support a mix of considering the possibility of meeting the micro-hydro, solar and wind power. country's needs through energy efficiency and

conservation;Within the World Bank Group, the International Finance There has been full consideration of viable Corporation (IFC) was the largest sponsor of renewables at alternatives to the least-cost options (including $4.5 billion (35%) over the six year period since 2007, environmental externalities), and when additional followed by IBRD ($3.7 billion, or 30%), IDA ($2.4 financing from donors for their incremental cost is billion, 19%) and MIGA ($533 million, 4%). not available;

The project uses the best appropriate available “Climate financing instruments housed at the World technology, to allow for high efficiency and, Bank, including the Carbon Finance Unit, the Global therefore, lower GHG emissions intensityEnvironment 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”

About 72% of South Africa's and 70% of India's electricity South Asia led the way with $3.2 billion (26%) in comes from coal-fired power stations, as does over 40% of renewable energy financing since 2007, followed by East the electricity generated in the US. But burning coal and

“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”

Hydropower leads

?

?

?

?

?

“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”

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

14 15

other fossil fuels produces about 70% of the planet's Sub-Saharan Africa, great potential exists for cost-effective greenhouse gas emissions. Here is the challenge: given renewable power, including wind, in large regions of rural these numbers, experts agree that the world cannot, at Sub-Saharan Africa.present, provide affordable access to electricity to 1.3 billion people without relying to some extent on coal.

MongoliaBut investing in coal alone for electricity - when considered in light of population growth projections - About 100,000 herder families in Mongolia have gained would push human-caused climate change deeply into a access to solar power through a program launched by the catastrophic zone. That's why we have strict criteria for Mongolian government with support from the World Bank financing of coal projects, limiting our financing to cases in and the Government of the Netherlands. Thanks to the which a country has no other options to respond to urgent National 100,000 Solar Ger Electrification Program, 70 demands for electricity, and providing several other percent of Mongolia's herders now have access to modern conditions have been met and the process reviewed by an electricityexternal advisory committee.

MaliResults 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,

China which includes installation of solar photo-voltaic electricity China leads the world in wind power with 62 gig watts systems in some 40 rural communities.(GW), of which over 50 GW is connected to the nation's Chinaelectricity grid as of this year. Grid-linked wind capacity will rise to 100 GW by 2015 and 200 GW by 2020. The A renewable energy project in which the World Bank and World Bank played a role in China's wind power the Global Environment Facility (GEF) provided $13 development with its its support for a China Renewable million and $27 million respectively, as well as technical Energy Scale Up Program, to which the World Bank has assistance, supported an initiative led by China to build a committed approximately $230 million. market for solar photovoltaic and wind energy technologies

almost from scratch. The Bank-supported renewable Egypt energy development program has enabled sales of over

402,000 PV solar-home systems (SHS) to rural families in The World Bank has expanded its engagement in wind remote areas of West and North-West China. About 1.6 energy development in several countries. In June 2010, the million nomadic people now have access to solar power as Bank approved a $220 million loan for Egypt to support a result.the Wind Power Development Project, out of which $150 million is financed from the Clean Technology Fund, a first Moroccofor the region.

The World Bank is implementing a $750-million grant by Colombia the Clean Technology Fund to the Middle East and North

Africa Concentrated Solar Power Scale Up Program, part A World Bank study, Wind Energy in Colombia concluded of which is financing the world's largest concentrated solar that wind is a realistic renewable energy alternative in power plant in Ouarzazate, in eastern Morocco. The plant Colombia, prompting the country's government to consider produces low-carbon solar electricity, and is at once several projects, including a 200 MW project to tap wind creating jobs and helping to expand the skill base in power. The study has been complemented by a Prototype Morocco to construct and operate such facilities. It will Carbon Fund grant for a wind farm in Jeripachi, in northern pave the way for the deployment of multiple solar energy Colombia. projects across North Africa.

Turkey

In May 2009, the Bank approved a $600 million loan for IndonesiaTurkey to develop its renewable energy including wind. This project includes construction of 966 MW of A $175-million IBRD loan, accompanied by $125 million renewable energy generation (hydro, geothermal, wind, from the Clean Technology Fund, to support a subsidiary of landfill gas) capable of producing 3810 Gwh of electricity Indonesia's state-owned company Pertamina in boosting per year, thereby reducing GHG emissions by about 1.7 the country's geothermal power generation capacity in million tons per year. fields in South Sumatra and North Sulawesi. When the

project is completed in 2015, it will add 150 megawatts to Africa the grid, displacing an equivalent capacity of coal-based

power generation, thereby reducing local and global Sub-Saharan Africa is looking to harness wind energy, with environmental pollution.the assistance of the World Bank. According to a recent Bank report, The Economics of Energy Expansion in Rural Africa

Solar Power

Wind Power

Geothermal

The Bank Group, through ESMAP, is developing a Global stimulate private investment in renewable energy. We are Geothermal Development Program to deploy geothermal launching a pilot initiative aimed at eventual replication energy for electricity. This will mobilize expertise from called Global Energy Transfer Feed-in Tariffs Plus, or Iceland and offer tools to mitigate investor risk, so as to GET-FiT Plus. It will support renewable energy projects in increase private investment in this sector, starting in the 13 East Africa by providing partial risk guarantees combined countries of the Rift Valley in East Africa. with other financing to cover the premium associated with

feed-in tariffs.Energy Efficiency Supporting clean energy in small island developing states

Tajikistan Most small island states depend on expensive fossil fuels for power generation. They are also vulnerable to climate

Tajikistan has faced severe energy shortages in winter, change. The Bank and ESMAP, in collaboration with which culminated in a crisis in 2007. The Bank responded UNDP and the Alliance of Small Island States, will support to this emergency by ensuring that critical facilities, such expansion of the program, SIDS-DOCK, to co-finance as hospitals, had standby power year-round, and also by clean energy investment and technical assistance activities working to ensure that the improvements were sustainable. in the Caribbean, Pacific and Africa regions. In addition, Energy efficiency measures financed by IDA included the the Scaling Up Renewable Energy Program for Low-installation of 105,000 new meters that reduced power Income States (SREP), one of the Climate Investment consumption and increased bill collection, increased water Funds, will support clean energy initiatives in Maldives reserves at Tajikistan's major hydropower plant, and and Pacific Islands.provided 250,000 people in northern Tajikistan with basic modern energy services for the first time. Developing renewable energy resource maps

Mexico A more precise understanding of renewable energy potential is a key starting point for power sector planning

Mexico entered the Guinness Book of Records after in the developing world. ESMAP will launch a program on distributing almost 23 million energy-saving light bulbs for meso-scale mapping of renewable energy free. The national program, partially financed by the World resourcesincluding biomass, small hydro, solar and wind in Bank, established over 1,100 exchange points at which developing countries. These maps will guide governments customers replaced their incandescent bulbs with CFLs. and developers in exploiting renewable energy sources. The energy saving from the program so far is estimated at 1,400 gigawatt hours. Expanding the Global Gas Flaring Reduction Partnership

Energy Efficiency in Cities Flaring of gas associated with oil production has dropped by 20% worldwide, from 172 billion cubic meters (bcm) in

Energy efficient measures can help cities save money on 2005 to 140 bcm in 2011. This has reduced CO2 emissions energy, cut investments in new infrastructure, and make by 85 million tons, roughly the equivalent of emissions them more competitive. But it is difficult for city managers from 16 million cars. The Bank and its 33 partners to learn about what measures, options, and practices would including governments and oil companies in the Global be best for their cities. The Bank's Energy Sector Gas Flaring Reduction Partnership (GGFR) will step up Management Assistance Program has launched a database flaring reduction efforts over the next four years through of case studies to showcase best practices by cities activities to develop gas infrastructure and markets. 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 aheadScaling up urban energy efficiency

Providing risk mitigation for clean energyBuildings account for almost 40% of energy consumption. We will scale up ESMAP's Energy Efficient Cities Reducing high startup costs is essential to encourage Initiative with cities and mayors to promote energy renewable energy investments. To address this, the Bank efficiency and renewable energy solutions in the buildings, Group is collaborating with Deutsche Bank and Germany's power/heating, public lighting, solid waste, transport, and KfW agency to establish a global regime to support feed-in water/waste water sectors.tariffs. Feed-in tariffs are a proven policy incentive to

“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”

16 17

other fossil fuels produces about 70% of the planet's Sub-Saharan Africa, great potential exists for cost-effective greenhouse gas emissions. Here is the challenge: given renewable power, including wind, in large regions of rural these numbers, experts agree that the world cannot, at Sub-Saharan Africa.present, provide affordable access to electricity to 1.3 billion people without relying to some extent on coal.

MongoliaBut investing in coal alone for electricity - when considered in light of population growth projections - About 100,000 herder families in Mongolia have gained would push human-caused climate change deeply into a access to solar power through a program launched by the catastrophic zone. That's why we have strict criteria for Mongolian government with support from the World Bank financing of coal projects, limiting our financing to cases in and the Government of the Netherlands. Thanks to the which a country has no other options to respond to urgent National 100,000 Solar Ger Electrification Program, 70 demands for electricity, and providing several other percent of Mongolia's herders now have access to modern conditions have been met and the process reviewed by an electricityexternal advisory committee.

MaliResults 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,

China which includes installation of solar photo-voltaic electricity China leads the world in wind power with 62 gig watts systems in some 40 rural communities.(GW), of which over 50 GW is connected to the nation's Chinaelectricity grid as of this year. Grid-linked wind capacity will rise to 100 GW by 2015 and 200 GW by 2020. The A renewable energy project in which the World Bank and World Bank played a role in China's wind power the Global Environment Facility (GEF) provided $13 development with its its support for a China Renewable million and $27 million respectively, as well as technical Energy Scale Up Program, to which the World Bank has assistance, supported an initiative led by China to build a committed approximately $230 million. market for solar photovoltaic and wind energy technologies

almost from scratch. The Bank-supported renewable Egypt energy development program has enabled sales of over

402,000 PV solar-home systems (SHS) to rural families in The World Bank has expanded its engagement in wind remote areas of West and North-West China. About 1.6 energy development in several countries. In June 2010, the million nomadic people now have access to solar power as Bank approved a $220 million loan for Egypt to support a result.the Wind Power Development Project, out of which $150 million is financed from the Clean Technology Fund, a first Moroccofor the region.

The World Bank is implementing a $750-million grant by Colombia the Clean Technology Fund to the Middle East and North

Africa Concentrated Solar Power Scale Up Program, part A World Bank study, Wind Energy in Colombia concluded of which is financing the world's largest concentrated solar that wind is a realistic renewable energy alternative in power plant in Ouarzazate, in eastern Morocco. The plant Colombia, prompting the country's government to consider produces low-carbon solar electricity, and is at once several projects, including a 200 MW project to tap wind creating jobs and helping to expand the skill base in power. The study has been complemented by a Prototype Morocco to construct and operate such facilities. It will Carbon Fund grant for a wind farm in Jeripachi, in northern pave the way for the deployment of multiple solar energy Colombia. projects across North Africa.

Turkey

In May 2009, the Bank approved a $600 million loan for IndonesiaTurkey to develop its renewable energy including wind. This project includes construction of 966 MW of A $175-million IBRD loan, accompanied by $125 million renewable energy generation (hydro, geothermal, wind, from the Clean Technology Fund, to support a subsidiary of landfill gas) capable of producing 3810 Gwh of electricity Indonesia's state-owned company Pertamina in boosting per year, thereby reducing GHG emissions by about 1.7 the country's geothermal power generation capacity in million tons per year. fields in South Sumatra and North Sulawesi. When the

project is completed in 2015, it will add 150 megawatts to Africa the grid, displacing an equivalent capacity of coal-based

power generation, thereby reducing local and global Sub-Saharan Africa is looking to harness wind energy, with environmental pollution.the assistance of the World Bank. According to a recent Bank report, The Economics of Energy Expansion in Rural Africa

Solar Power

Wind Power

Geothermal

The Bank Group, through ESMAP, is developing a Global stimulate private investment in renewable energy. We are Geothermal Development Program to deploy geothermal launching a pilot initiative aimed at eventual replication energy for electricity. This will mobilize expertise from called Global Energy Transfer Feed-in Tariffs Plus, or Iceland and offer tools to mitigate investor risk, so as to GET-FiT Plus. It will support renewable energy projects in increase private investment in this sector, starting in the 13 East Africa by providing partial risk guarantees combined countries of the Rift Valley in East Africa. with other financing to cover the premium associated with

feed-in tariffs.Energy Efficiency Supporting clean energy in small island developing states

Tajikistan Most small island states depend on expensive fossil fuels for power generation. They are also vulnerable to climate

Tajikistan has faced severe energy shortages in winter, change. The Bank and ESMAP, in collaboration with which culminated in a crisis in 2007. The Bank responded UNDP and the Alliance of Small Island States, will support to this emergency by ensuring that critical facilities, such expansion of the program, SIDS-DOCK, to co-finance as hospitals, had standby power year-round, and also by clean energy investment and technical assistance activities working to ensure that the improvements were sustainable. in the Caribbean, Pacific and Africa regions. In addition, Energy efficiency measures financed by IDA included the the Scaling Up Renewable Energy Program for Low-installation of 105,000 new meters that reduced power Income States (SREP), one of the Climate Investment consumption and increased bill collection, increased water Funds, will support clean energy initiatives in Maldives reserves at Tajikistan's major hydropower plant, and and Pacific Islands.provided 250,000 people in northern Tajikistan with basic modern energy services for the first time. Developing renewable energy resource maps

Mexico A more precise understanding of renewable energy potential is a key starting point for power sector planning

Mexico entered the Guinness Book of Records after in the developing world. ESMAP will launch a program on distributing almost 23 million energy-saving light bulbs for meso-scale mapping of renewable energy free. The national program, partially financed by the World resourcesincluding biomass, small hydro, solar and wind in Bank, established over 1,100 exchange points at which developing countries. These maps will guide governments customers replaced their incandescent bulbs with CFLs. and developers in exploiting renewable energy sources. The energy saving from the program so far is estimated at 1,400 gigawatt hours. Expanding the Global Gas Flaring Reduction Partnership

Energy Efficiency in Cities Flaring of gas associated with oil production has dropped by 20% worldwide, from 172 billion cubic meters (bcm) in

Energy efficient measures can help cities save money on 2005 to 140 bcm in 2011. This has reduced CO2 emissions energy, cut investments in new infrastructure, and make by 85 million tons, roughly the equivalent of emissions them more competitive. But it is difficult for city managers from 16 million cars. The Bank and its 33 partners to learn about what measures, options, and practices would including governments and oil companies in the Global be best for their cities. The Bank's Energy Sector Gas Flaring Reduction Partnership (GGFR) will step up Management Assistance Program has launched a database flaring reduction efforts over the next four years through of case studies to showcase best practices by cities activities to develop gas infrastructure and markets. 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 aheadScaling up urban energy efficiency

Providing risk mitigation for clean energyBuildings account for almost 40% of energy consumption. We will scale up ESMAP's Energy Efficient Cities Reducing high startup costs is essential to encourage Initiative with cities and mayors to promote energy renewable energy investments. To address this, the Bank efficiency and renewable energy solutions in the buildings, Group is collaborating with Deutsche Bank and Germany's power/heating, public lighting, solid waste, transport, and KfW agency to establish a global regime to support feed-in water/waste water sectors.tariffs. Feed-in tariffs are a proven policy incentive to

“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”

16 17

7

As centrepieces of Abu Dhabi Sustainability Week, the Dr. Sultan Ahmed Al Jaber, Chief Executive Officer and sixth World Future Energy Summit and the inaugural Managing Director of Masdar, host of the World Future International Water Summit brought together 29,448 Energy Summit and the International Water Summit, attendees from 155 countries to influence the global presented a welcome speech and Siemens presented an

future of the renewable energy and water sectors. The industry perspective.joint opening ceremony brought together 3,500 delegates and 91 official delegations, while the exhibition areas The participation of a large number of international energy featured 800 exhibiting companies from 40 countries, 28 ministers in the Ministerial Panels on the opening day of the national pavilions. World Future Energy Summit showed the seriousness with

which governments are taking the renewable energy The French president, Francois Hollande, delivered a challenges. Ministers from India, China, Australia, Peru, keynote speech at the official inauguration of Abu Dhabi Morocco, Qatar and Saudi Arabia were among the Sustainability Week which took place at the opening contributors to the debate after the gala Official Opening ceremony of the World Future Energy Summit, and Ceremony.stressed the strong ties between both countries and the mutual interest in clean energy. Leaders from some of the world's most influential economic

development and environment organizations had delivered Also delivering keynote speeches at the official opening keynote speeches during the Ministerial Panels including Wu ceremony were Argentinian President Cristina Fernandez Hongbo, Under-Secretary-General of the United Nations; and HRH Queen Rania of Jordan. Todd Stern, USA's Special Envoy for Climate Change;

WFES- 2013 Flashback6th 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

Connie Hedegaard, EU Commissioner Climate Action in home.•hthe European Commission; and Jeffrey Sachs, Director of The Earth Institute at Columbia University and •gThe Zero Tracer, a futuristic electric motorcycle which can Special Advisor to the United Nations Secretary‐ reach speeds of up to 300 kilometres per hour, was one of the General on the Millennium Development Goals.Mr. Naji star attractions,•h said Mr. El Haddad.El Haddad, WFES Show Director for event organizer Reed Exhibitions, was encouraged by the increased One of the most successful WFES features, the Project & numbers participating in the sixth edition of the World Finance Village, returned for its third year, with more and Future Energy Summit, hosted by Masdar. bigger projects seeking investment totalling more than $8

billion.•gWe are expecting the most successful WFES since its inception in 2008 as global awareness of the need for The sixth World Future Energy Summit, hosted by Masdar, renewable energy continues to grow.•h Abu Dhabi's renewable energy company, was the centerpiece •gOur pre-registered numbers are 20% higher than this of Abu Dhabi Sustainability Week and was co-located with time last year. 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 •gExhibitor numbers were up by 10% than the 2012's French Pavilion at the inaugural International Water Summit event, and these global companies have launched over 70 held 15-17 at the Abu Dhabi National Exhibition Centre. new products, 20 more than last year,•h said Mr. El Haddad. The annual World Future Energy Summit held in Abu Dhabi

during January 15-17, 2013, was the world's foremost •gWe have also introduced exciting new features such as gathering dedicated to promoting sustainable technologies. the Technology Exchange Platform, the Green Ideas Fair Celebrating its sixth year in 2013, it was the leading in conjunction with the International Water Summit, the international event for government and industry decision Green Jobs Fair and the Sustainable Living area which makers committed to finding viable, sustainable solutions to includes a full-size Estidama-compliant energy efficient the world's growing energy challenges.

“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”

18 19

7

As centrepieces of Abu Dhabi Sustainability Week, the Dr. Sultan Ahmed Al Jaber, Chief Executive Officer and sixth World Future Energy Summit and the inaugural Managing Director of Masdar, host of the World Future International Water Summit brought together 29,448 Energy Summit and the International Water Summit, attendees from 155 countries to influence the global presented a welcome speech and Siemens presented an

future of the renewable energy and water sectors. The industry perspective.joint opening ceremony brought together 3,500 delegates and 91 official delegations, while the exhibition areas The participation of a large number of international energy featured 800 exhibiting companies from 40 countries, 28 ministers in the Ministerial Panels on the opening day of the national pavilions. World Future Energy Summit showed the seriousness with

which governments are taking the renewable energy The French president, Francois Hollande, delivered a challenges. Ministers from India, China, Australia, Peru, keynote speech at the official inauguration of Abu Dhabi Morocco, Qatar and Saudi Arabia were among the Sustainability Week which took place at the opening contributors to the debate after the gala Official Opening ceremony of the World Future Energy Summit, and Ceremony.stressed the strong ties between both countries and the mutual interest in clean energy. Leaders from some of the world's most influential economic

development and environment organizations had delivered Also delivering keynote speeches at the official opening keynote speeches during the Ministerial Panels including Wu ceremony were Argentinian President Cristina Fernandez Hongbo, Under-Secretary-General of the United Nations; and HRH Queen Rania of Jordan. Todd Stern, USA's Special Envoy for Climate Change;

WFES- 2013 Flashback6th 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

Connie Hedegaard, EU Commissioner Climate Action in home.•hthe European Commission; and Jeffrey Sachs, Director of The Earth Institute at Columbia University and •gThe Zero Tracer, a futuristic electric motorcycle which can Special Advisor to the United Nations Secretary‐ reach speeds of up to 300 kilometres per hour, was one of the General on the Millennium Development Goals.Mr. Naji star attractions,•h said Mr. El Haddad.El Haddad, WFES Show Director for event organizer Reed Exhibitions, was encouraged by the increased One of the most successful WFES features, the Project & numbers participating in the sixth edition of the World Finance Village, returned for its third year, with more and Future Energy Summit, hosted by Masdar. bigger projects seeking investment totalling more than $8

billion.•gWe are expecting the most successful WFES since its inception in 2008 as global awareness of the need for The sixth World Future Energy Summit, hosted by Masdar, renewable energy continues to grow.•h Abu Dhabi's renewable energy company, was the centerpiece •gOur pre-registered numbers are 20% higher than this of Abu Dhabi Sustainability Week and was co-located with time last year. 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 •gExhibitor numbers were up by 10% than the 2012's French Pavilion at the inaugural International Water Summit event, and these global companies have launched over 70 held 15-17 at the Abu Dhabi National Exhibition Centre. new products, 20 more than last year,•h said Mr. El Haddad. The annual World Future Energy Summit held in Abu Dhabi

during January 15-17, 2013, was the world's foremost •gWe have also introduced exciting new features such as gathering dedicated to promoting sustainable technologies. the Technology Exchange Platform, the Green Ideas Fair Celebrating its sixth year in 2013, it was the leading in conjunction with the International Water Summit, the international event for government and industry decision Green Jobs Fair and the Sustainable Living area which makers committed to finding viable, sustainable solutions to includes a full-size Estidama-compliant energy efficient the world's growing energy challenges.

“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”

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“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.

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 Hosted by Masdar, Abu Dhabi's multi-faceted renewable of attention for developers, engineers and architects looking energy company, the World Future Energy Summit also for the latest in energy efficiency. The upgraded Project & featured the Project and Finance Village, the Young Finance Village also enticed bankers and financiers looking Future Energy Leaders program, round table discussions, to invest in over $8 billion of renewable energy projects and various corporate events and social engagements.being showcased.

165 speakers led the discussions during the International Over 5,000 visitors attended the first International Water Renewable Energy Conference in Abu Dhabi (ADIREC), Summit to address global water issues such as water scarcity hosted by the World Future Energy Summit, which set in Arab regions, sustainable growth and economic the global future energy agenda for the next decade and development in arid regions, the future challenges of water provided a solutions blueprint for the 120 countries that

WFESIWS

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.

availability, and cross boundary collaboration through candidates.international water governance. The World Future Energy Summit has become a hub for

business opportunities within the renewable energy, clean The conference proceedings were led by more than 100 of technology and environmental industries and will continue the world's leading water experts from world-leading to host leading players in the production, installation and organizations such as UN Habitat, the Global Water integration of energy efficient products from the global Operators' Partnership Alliance (GWOPA), the World market. With the best and most innovative technologies Bank, UN Water, the International Desalination from the world of Smart Grids, Façade, Lighting, Isolation, Association, UNESCO, the Organization for Economic Smart Houses, Clean Transportation and Green Buildings Cooperation and Development (OECD), the Stockholm on show, exhibitors will have the opportunity to network

International Water Institute, the Public Utilities Board with buyers, hear about new projects using energy efficient Singapore, the Arab Countries Water Utilities Association products and learn about government policies promoting a and the UN Secretary General's Advisory Board on Water. more efficient and subsequently sustainable future.Strong local support also came from event sponsors such as the Abu Dhabi Water and Electricity Authority and In 2007, the Government of Abu Dhabi launched the Abu Environment Agency Abu Dhabi. Dhabi Vision 2030 to provide the Emirate with the

strategic environment that achieves sustainable urban "The whole event really places water and energy in the planning and economic growth. The New Building Codes, spotlight. World leaders, regional decision makers and the which represent one of the biggest changes to the industry - from water and energy came together to discuss municipal system in many years, will unify building solutions to global water and energy challenges," said practices and create better, safer, greener buildings that are Craig Halgreen, VP Global Communications at Borouge, more cost-effective and durable, and which are built to the principal sponsor of IWS 2013. even higher health and safety standards.

The Sustainable Solutions Village in the IWS exhibition The World Future Energy Summit (WFES) is the world's area showcased ideas that have been successfully foremost annual meeting committed to promoting the implemented in water scarce communities across the advancement of future energy, energy efficiency and clean world, and the IWS Project Stream brought together buyers technologies by engaging political, business, finance, and sellers from the international water community to academic and industry leaders to drive innovation, business explore beneficial synergies and establish partnerships. and investment opportunities in response to the growing Meanwhile, the Green Ideas Fair, run in conjunction with need for sustainable energy.the World Future Energy Summit, encouraged students to submit and display their environmental sustainability WFES 2014 will be held at ADNEC from 20 - 22 January, solutions. Winners were decided thorough an on-site voting 2014 in Abu Dhabi.system with cash prizes awarded to the top three

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. Non-hydropower 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.

20 21

“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.

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 Hosted by Masdar, Abu Dhabi's multi-faceted renewable of attention for developers, engineers and architects looking energy company, the World Future Energy Summit also for the latest in energy efficiency. The upgraded Project & featured the Project and Finance Village, the Young Finance Village also enticed bankers and financiers looking Future Energy Leaders program, round table discussions, to invest in over $8 billion of renewable energy projects and various corporate events and social engagements.being showcased.

165 speakers led the discussions during the International Over 5,000 visitors attended the first International Water Renewable Energy Conference in Abu Dhabi (ADIREC), Summit to address global water issues such as water scarcity hosted by the World Future Energy Summit, which set in Arab regions, sustainable growth and economic the global future energy agenda for the next decade and development in arid regions, the future challenges of water provided a solutions blueprint for the 120 countries that

WFESIWS

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.

availability, and cross boundary collaboration through candidates.international water governance. The World Future Energy Summit has become a hub for

business opportunities within the renewable energy, clean The conference proceedings were led by more than 100 of technology and environmental industries and will continue the world's leading water experts from world-leading to host leading players in the production, installation and organizations such as UN Habitat, the Global Water integration of energy efficient products from the global Operators' Partnership Alliance (GWOPA), the World market. With the best and most innovative technologies Bank, UN Water, the International Desalination from the world of Smart Grids, Façade, Lighting, Isolation, Association, UNESCO, the Organization for Economic Smart Houses, Clean Transportation and Green Buildings Cooperation and Development (OECD), the Stockholm on show, exhibitors will have the opportunity to network

International Water Institute, the Public Utilities Board with buyers, hear about new projects using energy efficient Singapore, the Arab Countries Water Utilities Association products and learn about government policies promoting a and the UN Secretary General's Advisory Board on Water. more efficient and subsequently sustainable future.Strong local support also came from event sponsors such as the Abu Dhabi Water and Electricity Authority and In 2007, the Government of Abu Dhabi launched the Abu Environment Agency Abu Dhabi. Dhabi Vision 2030 to provide the Emirate with the

strategic environment that achieves sustainable urban "The whole event really places water and energy in the planning and economic growth. The New Building Codes, spotlight. World leaders, regional decision makers and the which represent one of the biggest changes to the industry - from water and energy came together to discuss municipal system in many years, will unify building solutions to global water and energy challenges," said practices and create better, safer, greener buildings that are Craig Halgreen, VP Global Communications at Borouge, more cost-effective and durable, and which are built to the principal sponsor of IWS 2013. even higher health and safety standards.

The Sustainable Solutions Village in the IWS exhibition The World Future Energy Summit (WFES) is the world's area showcased ideas that have been successfully foremost annual meeting committed to promoting the implemented in water scarce communities across the advancement of future energy, energy efficiency and clean world, and the IWS Project Stream brought together buyers technologies by engaging political, business, finance, and sellers from the international water community to academic and industry leaders to drive innovation, business explore beneficial synergies and establish partnerships. and investment opportunities in response to the growing Meanwhile, the Green Ideas Fair, run in conjunction with need for sustainable energy.the World Future Energy Summit, encouraged students to submit and display their environmental sustainability WFES 2014 will be held at ADNEC from 20 - 22 January, solutions. Winners were decided thorough an on-site voting 2014 in Abu Dhabi.system with cash prizes awarded to the top three

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. Non-hydropower 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.

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7

poorest countries in terms of energy resources. This stark disparity is evident even in countries that share borders.

s it is an honor to be here with you today, so is it Despite neighboring some of the most oil rich countries, my a pleasure to be part of a conference that focuses country, Jordan, relies on imports to cover 96 per cent of our Aall of us on an issue as crucial as our very energy needs.

lifeblood, Energy.Our region hosts yet another contradiction. We're rich in the

I'm humbled to be surrounded by such a distinguished energy of our overwhelmingly young population, but poor in and talented audience: politicians, business leaders, the opportunities we can offer them. innovators, scientists, engineers and entrepreneurs. In fact, I half expected to walk in and see thousands of light And we've all seen the result of that. Frustrated energies bulbs above your heads sparking…popping… and spilling onto the Arab street over the past two years.burning with brilliant ideas! Which makes me think…why are great ideas always symbolized by a light According to a Gallop poll conducted last year, in the midst bulb? I'd love to know. of the unrest, the majority of Arab youth still place finding a

job as their number one priority. Yet, if we continue with By being here today, you're already part of the solution business as usual, too many are unlikely to find one in the to the global energy crisis. Fuelling our future with next 5 years.innovation and humanity. Bringing power, and with it, empowerment, to millions around the world. So, thank It was Thomas Edison, the inventor of the aforementioned you Sheikh Mohammed bin Zayed Al Nahyan and Abu light bulb, who said that, “Discontent is the first necessity of Dhabi, and Masdar for bringing us together. progress.' Well, we've seen the discontent; now let's work on

the progress. But in the absence of long-term, sustainable I cannot think of a better place for us to gather. Abu solutions to our energy needs, progress will be slow and Dhabi's bold vision for sustainable energy is uneven. Not just in this region, but everywhere.transforming this nation and inspiring our region….at a time when the Arab world is at a critical juncture. No Today 1.4 billion people, 1 in 5 in the world, still cannot one can predict the future, but this much is true: energy access grid electricity. For a billion more, access is requirements will play a vital role in determining it. unreliable. And, without sustainable energy, there can be no

sustainable development. The Arab world includes some of the richest and the

Her Majesty Queen Rania Al Abdullah

A Speech by Her Majesty Queen Rania Al Abdullah at the 'World Future Energy Summit' in Abu Dhabi

on January 15, 2013

Energy is humanity's lifeblood; where it flows, with all its choking fumes, that fragile newborns are brought prosperity burgeons. Where it stalls, the impoverished into the world. Nimat, a midwife, recalls a harrowing and disadvantaged languish…burdened by multiple moment during a delivery. challenges.

“Suddenly, a very strong wind blew out the lamp's light. I The most crippling effects of energy poverty are felt by was forced to continue the delivery in darkness, fumbling and children. It is a cruel irony that those who've had the guessing what to do.” Birth. The most critical moment for a least to do with climate change and energy crises are mother and her newborn child…and the light goes out.paying the highest price. And they know it. Last year, the Child Fund Alliance surveyed over 6,000 children aged Or take Iraq, where black-outs are so frequent, the Al-Dakhil between 10 and 12, from 47 countries, to find out about Clinicin Baghdad had to destroy precious medicines because their hopes, aspirations and fears. they couldn't be kept at the right temperatures. And where

they had to cancel their children's vaccination program In one question, they were asked, “If you could do one because the vaccines couldn't be stored properly.thing to improve the environment around your community, what would it be?” The answers might Children don't deserve these injustices. But there is surprise you. They didn't say, “build a soccer field” or, light…and well before the end of the tunnel. You and I know “give us a playground.” Some of the most popular that there are no technical barriers to universal access to responses from children were pleas to improve modern energy. infrastructure. “Drill for water.” “Build schools and hospitals.” “Provide electricity and latrines.” With capital investment and political will, we could light up

schools for children…power health clinics for mothers and Although they were young, they were wise beyond their their babies…and pump clean water for families. years. In recent years, the global community has made great progress in improving the lives of children, with With new energy we could fuel a solar revolution… bring more children enrolled in school, less global deaths about a boom in the science, engineering and manufacturing among children under 5, more access to clean drinking fields…build green industries and green jobs…and open new water. But, in too many places, this progress is not only markets for aspiring entrepreneurs. Proven, innovative slowing, it's in danger of stalling. solutions exist. And I'm proud that many of them are coming

from the Arab World. I'm proud that in Jordan, Bedouin Take Gaza, where power cuts, a daily reality, make women are training to be solar engineers…swapping studying at home tough. Street lamps there are not only unhealthy and expensive kerosene lamps for solar power…so illuminating roads, they're lighting up futures. that families have more money.Look…and you will see children huddled under them, textbooks in hand, reading, and learning. They have Or in Egypt, where farmers are exploring biodynamic learned to make a little light go a long way. Looking up agriculture …using compost to turn desert lands into healthy from his notes, ten-year-old Yazan, says, "When my soil. And where they're exploring innovative irrigation mother buys me a candle at home to study, it doesn't last methods to reduce water stress.long so I come here. I hardly ever notice the passing cars; I'm here to study because I wish to become a I'm proud of Abu Dhabi…of its global leadership role in doctor.” sustainable development. And Masdar City…a test-bed for

renewable energy and technology.Here's the thing. Maths can be hard. Grammar can be hard. Exams can be hard. Light to study by in the And, I'm pleased that, for the first time, this conference is evening, in the safety of your home…? That should be engaging and encouraging high school students to find easy. Because if it's not easy, children will drop out of innovative energy solutions, through the Zayed Future school. And as they do so, the promise of better Energy Prize. health…good jobs…and stronger economies goes with them. But while there are many examples of new energy

technologies, they are still too few and far between. They Or take Yemen, where, in the past year, there have been must be streamlined and scaled up. Made cheaper and more some days with less than one hour of electricity… and efficient.where sitting under street lamps to study is simply not an option for girls. “We were tired of darkness,” said 16 Ladies and gentlemen, there is an industry waiting to be year old Wafa Al-Rimi. And, so, with the help of INJAZ tapped. And the Arab world is perfectly positioned not only Yemen and some private sector guidance, she formed an to tap it…but to lead it.all female company that invented solar-powered lights for which they won INJAZAl-Arab's Best Company of In so doing, we would be addressing one of the key the Year in November. fundamentals to a more corrective course for the region,

using the potent energy of our people to chart the way Or take Sudan, where midwives pray that mothers will forward. Let's be inspired by Edison. 'I have not failed,' he give birth in daylight. Because when darkness descends, said, 'I've just found 10,000 ways that won't work.' I say, with it is only by the flickering flame of a kerosene lamp, your help, let us find one that will.

22 23

7

poorest countries in terms of energy resources. This stark disparity is evident even in countries that share borders.

s it is an honor to be here with you today, so is it Despite neighboring some of the most oil rich countries, my a pleasure to be part of a conference that focuses country, Jordan, relies on imports to cover 96 per cent of our Aall of us on an issue as crucial as our very energy needs.

lifeblood, Energy.Our region hosts yet another contradiction. We're rich in the

I'm humbled to be surrounded by such a distinguished energy of our overwhelmingly young population, but poor in and talented audience: politicians, business leaders, the opportunities we can offer them. innovators, scientists, engineers and entrepreneurs. In fact, I half expected to walk in and see thousands of light And we've all seen the result of that. Frustrated energies bulbs above your heads sparking…popping… and spilling onto the Arab street over the past two years.burning with brilliant ideas! Which makes me think…why are great ideas always symbolized by a light According to a Gallop poll conducted last year, in the midst bulb? I'd love to know. of the unrest, the majority of Arab youth still place finding a

job as their number one priority. Yet, if we continue with By being here today, you're already part of the solution business as usual, too many are unlikely to find one in the to the global energy crisis. Fuelling our future with next 5 years.innovation and humanity. Bringing power, and with it, empowerment, to millions around the world. So, thank It was Thomas Edison, the inventor of the aforementioned you Sheikh Mohammed bin Zayed Al Nahyan and Abu light bulb, who said that, “Discontent is the first necessity of Dhabi, and Masdar for bringing us together. progress.' Well, we've seen the discontent; now let's work on

the progress. But in the absence of long-term, sustainable I cannot think of a better place for us to gather. Abu solutions to our energy needs, progress will be slow and Dhabi's bold vision for sustainable energy is uneven. Not just in this region, but everywhere.transforming this nation and inspiring our region….at a time when the Arab world is at a critical juncture. No Today 1.4 billion people, 1 in 5 in the world, still cannot one can predict the future, but this much is true: energy access grid electricity. For a billion more, access is requirements will play a vital role in determining it. unreliable. And, without sustainable energy, there can be no

sustainable development. The Arab world includes some of the richest and the

Her Majesty Queen Rania Al Abdullah

A Speech by Her Majesty Queen Rania Al Abdullah at the 'World Future Energy Summit' in Abu Dhabi

on January 15, 2013

Energy is humanity's lifeblood; where it flows, with all its choking fumes, that fragile newborns are brought prosperity burgeons. Where it stalls, the impoverished into the world. Nimat, a midwife, recalls a harrowing and disadvantaged languish…burdened by multiple moment during a delivery. challenges.

“Suddenly, a very strong wind blew out the lamp's light. I The most crippling effects of energy poverty are felt by was forced to continue the delivery in darkness, fumbling and children. It is a cruel irony that those who've had the guessing what to do.” Birth. The most critical moment for a least to do with climate change and energy crises are mother and her newborn child…and the light goes out.paying the highest price. And they know it. Last year, the Child Fund Alliance surveyed over 6,000 children aged Or take Iraq, where black-outs are so frequent, the Al-Dakhil between 10 and 12, from 47 countries, to find out about Clinicin Baghdad had to destroy precious medicines because their hopes, aspirations and fears. they couldn't be kept at the right temperatures. And where

they had to cancel their children's vaccination program In one question, they were asked, “If you could do one because the vaccines couldn't be stored properly.thing to improve the environment around your community, what would it be?” The answers might Children don't deserve these injustices. But there is surprise you. They didn't say, “build a soccer field” or, light…and well before the end of the tunnel. You and I know “give us a playground.” Some of the most popular that there are no technical barriers to universal access to responses from children were pleas to improve modern energy. infrastructure. “Drill for water.” “Build schools and hospitals.” “Provide electricity and latrines.” With capital investment and political will, we could light up

schools for children…power health clinics for mothers and Although they were young, they were wise beyond their their babies…and pump clean water for families. years. In recent years, the global community has made great progress in improving the lives of children, with With new energy we could fuel a solar revolution… bring more children enrolled in school, less global deaths about a boom in the science, engineering and manufacturing among children under 5, more access to clean drinking fields…build green industries and green jobs…and open new water. But, in too many places, this progress is not only markets for aspiring entrepreneurs. Proven, innovative slowing, it's in danger of stalling. solutions exist. And I'm proud that many of them are coming

from the Arab World. I'm proud that in Jordan, Bedouin Take Gaza, where power cuts, a daily reality, make women are training to be solar engineers…swapping studying at home tough. Street lamps there are not only unhealthy and expensive kerosene lamps for solar power…so illuminating roads, they're lighting up futures. that families have more money.Look…and you will see children huddled under them, textbooks in hand, reading, and learning. They have Or in Egypt, where farmers are exploring biodynamic learned to make a little light go a long way. Looking up agriculture …using compost to turn desert lands into healthy from his notes, ten-year-old Yazan, says, "When my soil. And where they're exploring innovative irrigation mother buys me a candle at home to study, it doesn't last methods to reduce water stress.long so I come here. I hardly ever notice the passing cars; I'm here to study because I wish to become a I'm proud of Abu Dhabi…of its global leadership role in doctor.” sustainable development. And Masdar City…a test-bed for

renewable energy and technology.Here's the thing. Maths can be hard. Grammar can be hard. Exams can be hard. Light to study by in the And, I'm pleased that, for the first time, this conference is evening, in the safety of your home…? That should be engaging and encouraging high school students to find easy. Because if it's not easy, children will drop out of innovative energy solutions, through the Zayed Future school. And as they do so, the promise of better Energy Prize. health…good jobs…and stronger economies goes with them. But while there are many examples of new energy

technologies, they are still too few and far between. They Or take Yemen, where, in the past year, there have been must be streamlined and scaled up. Made cheaper and more some days with less than one hour of electricity… and efficient.where sitting under street lamps to study is simply not an option for girls. “We were tired of darkness,” said 16 Ladies and gentlemen, there is an industry waiting to be year old Wafa Al-Rimi. And, so, with the help of INJAZ tapped. And the Arab world is perfectly positioned not only Yemen and some private sector guidance, she formed an to tap it…but to lead it.all female company that invented solar-powered lights for which they won INJAZAl-Arab's Best Company of In so doing, we would be addressing one of the key the Year in November. fundamentals to a more corrective course for the region,

using the potent energy of our people to chart the way Or take Sudan, where midwives pray that mothers will forward. Let's be inspired by Edison. 'I have not failed,' he give birth in daylight. Because when darkness descends, said, 'I've just found 10,000 ways that won't work.' I say, with it is only by the flickering flame of a kerosene lamp, your help, let us find one that will.

22 23

themselves and their loved ones. JRF is also recognized as a Her Majesty Queen Rania Al Abdullah is a mother, a leader in the region for its achievements in protecting wife, a boss, an advocate, and a humanitarian. She once children. said, “I just wake up and feel like a regular person. At the From rescuing abused children to healing whole families, end of the day you are living your life for the people that JRF is now a centre of excellence, sharing its knowledge and you represent. It's an honour and a privilege to have that know-how with others in and outside of the country. chance to make a difference a qualitative difference in people's lives and it's my responsibility to make the Abroad, Queen Rania works for greater global action on most out of that opportunity.” access to quality education, and in her capacity as Eminent

Advocate for UNICEF and Honorary Chairperson for For that reason, Queen Rania spends much of her time listening to and talking with the people of Jordan, to UNGEI, she campaigns on behalf of children in need. She learn from them the best way to improve their also participates in international gatherings, such as the livelihoods and Jordan's prospects. Queen Rania Clinton Global Initiative and the World Economic Forum, of spearheads efforts in Jordan to adopt a holistic approach which she is a Board Member. to national education, encouraging agencies and As an Arab, Muslim woman, Queen Rania is committed to organizations to work on classroom quality, teaching reconciling people of different faiths and cultures by standards, computer access, family involvement, encouraging cross-cultural dialogue, particularly amongst community investment, and health awareness. young people.

Through initiatives, like Madrasati and the Teachers Her Majesty is author of the New York Times Best Seller, Academy, Queen Rania is helping Jordan's children get 'The Sandwich Swap', a children's story about two young the best start in life by repairing and revamping local girls, Lily and Salma, who learn the value of diversity by schools, while inspiring teachers to be their best. She exchanging food at school. Queen Rania is also the author of believes that the power of partnerships between the two other stories, 'The King's Gift' and 'Eternal Beauty'.public, private, and non-profit sectors is a source of great potential for change in Jordan's education system. A keen runner, and seeker of good jogging tunes, Queen

Rania enjoys spending time with her family and friends in The Jordan River Foundation (JRF) is Queen Rania's Aqaba, where she can relax and get into a great book. She NGO that gives a helping hand to the disadvantaged in also makes a mean chocolate chip cookie.Jordan. For over ten years it has provided families with skills and knowledge to work themselves out of poverty. Her Majesty is married to King Abdullah II bin Al Hussein of Today, it partners with the private sector and entire Jordan, they have 4 children: Prince Hussein, Princess Iman, communities to bring resources, energy, and change to Princess Salma, and Prince Hashem.the lives of vulnerable citizens, empowering and inspiring them to believe they can make a difference for

Lockheed Martin has been getting its feet wet in the OTEC uses the natural difference in temperatures between renewable energy game for some time. In the 1970s it the cool deep water and warm surface water to produce helped build the world's first successful floating Ocean electricity. There are different cycle types of OTEC Thermal Energy Conversion (OTEC) system that generated systems, but the prototype plant is likely to be a closed-net power, and in 2009 it was awarded a contract to cycle system. This sees warm surface seawater pumped develop an OTEC pilot plant in Hawaii. That project has through a heat exchanger to vaporize a fluid with a low apparently been canceled but the company has now shifted boiling point, such as ammonia. This expanding vapor is its OTEC sights westward by teaming up with Hong Kong- used to drive a turbine to generate electricity with cold based Reignwood Group to co-develop a pilot plant that seawater then used to condense the vapor so it can be will be built off the coast of southern China. recycled through the system.

World's largest OTEC power plant planned for ChinaBy Darren Quick

24 25

themselves and their loved ones. JRF is also recognized as a Her Majesty Queen Rania Al Abdullah is a mother, a leader in the region for its achievements in protecting wife, a boss, an advocate, and a humanitarian. She once children. said, “I just wake up and feel like a regular person. At the From rescuing abused children to healing whole families, end of the day you are living your life for the people that JRF is now a centre of excellence, sharing its knowledge and you represent. It's an honour and a privilege to have that know-how with others in and outside of the country. chance to make a difference a qualitative difference in people's lives and it's my responsibility to make the Abroad, Queen Rania works for greater global action on most out of that opportunity.” access to quality education, and in her capacity as Eminent

Advocate for UNICEF and Honorary Chairperson for For that reason, Queen Rania spends much of her time listening to and talking with the people of Jordan, to UNGEI, she campaigns on behalf of children in need. She learn from them the best way to improve their also participates in international gatherings, such as the livelihoods and Jordan's prospects. Queen Rania Clinton Global Initiative and the World Economic Forum, of spearheads efforts in Jordan to adopt a holistic approach which she is a Board Member. to national education, encouraging agencies and As an Arab, Muslim woman, Queen Rania is committed to organizations to work on classroom quality, teaching reconciling people of different faiths and cultures by standards, computer access, family involvement, encouraging cross-cultural dialogue, particularly amongst community investment, and health awareness. young people.

Through initiatives, like Madrasati and the Teachers Her Majesty is author of the New York Times Best Seller, Academy, Queen Rania is helping Jordan's children get 'The Sandwich Swap', a children's story about two young the best start in life by repairing and revamping local girls, Lily and Salma, who learn the value of diversity by schools, while inspiring teachers to be their best. She exchanging food at school. Queen Rania is also the author of believes that the power of partnerships between the two other stories, 'The King's Gift' and 'Eternal Beauty'.public, private, and non-profit sectors is a source of great potential for change in Jordan's education system. A keen runner, and seeker of good jogging tunes, Queen

Rania enjoys spending time with her family and friends in The Jordan River Foundation (JRF) is Queen Rania's Aqaba, where she can relax and get into a great book. She NGO that gives a helping hand to the disadvantaged in also makes a mean chocolate chip cookie.Jordan. For over ten years it has provided families with skills and knowledge to work themselves out of poverty. Her Majesty is married to King Abdullah II bin Al Hussein of Today, it partners with the private sector and entire Jordan, they have 4 children: Prince Hussein, Princess Iman, communities to bring resources, energy, and change to Princess Salma, and Prince Hashem.the lives of vulnerable citizens, empowering and inspiring them to believe they can make a difference for

Lockheed Martin has been getting its feet wet in the OTEC uses the natural difference in temperatures between renewable energy game for some time. In the 1970s it the cool deep water and warm surface water to produce helped build the world's first successful floating Ocean electricity. There are different cycle types of OTEC Thermal Energy Conversion (OTEC) system that generated systems, but the prototype plant is likely to be a closed-net power, and in 2009 it was awarded a contract to cycle system. This sees warm surface seawater pumped develop an OTEC pilot plant in Hawaii. That project has through a heat exchanger to vaporize a fluid with a low apparently been canceled but the company has now shifted boiling point, such as ammonia. This expanding vapor is its OTEC sights westward by teaming up with Hong Kong- used to drive a turbine to generate electricity with cold based Reignwood Group to co-develop a pilot plant that seawater then used to condense the vapor so it can be will be built off the coast of southern China. recycled through the system.

World's largest OTEC power plant planned for ChinaBy Darren Quick

24 25

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

“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”

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.

The public debate around renewable energy, however, The rapid growth in the deployment of solar and

continues to suffer from an outdated perception that wind is driving a convergence in electricity

renewable energy is not competitive, forming a generation costs. When excellent local resources are

significant and unnecessary barrier to its deployment. available, mature technologies, such as biomass,

geothermal and hydropower, can all produce IRENA's Renewable Power Generation Costs in 2012: electricity of very competitive costs, although in An overview is the most current, comprehensive analysis limited quantities. As the deployment of wind and of the costs and performance of renewable power solar has increased, we are seeing a reduction in the generation today, which analyses 8,000 medium-to large- costs of wind and solar technologies and a scale renewable power generation projects. convergence in the LCOE of renewable technologies

at low levels. This will continue in the short-to Key findings include:

medium-term given the current manufacturing

overcapacity for wind and solar PV. ? Renewable account for almost half of new

electricity capacity installed and costs are continuing to Further equipment cost reductions can be expected

fall. The rapid deployment of renewables, working in to 2020, which will lower the weighted average

combination with high learning rates, has produced a LCOE of renewables. The rate of decline to 2020 for

virtuous circle that is leading to significant cost declines solar PV is likely to be slower than in recent years,

and helping to fuel a renewable revolution. In 2011, but wind and CSP may see acceleration.

additions included 41 GW of new winder power Hydropower, geothermal and most biomass

capacity, 30 GW of solar photovoltaic (PV), 25 GW of combustion technologies are mature and their cost

hydropower, 6 GW of biomass, 0.5 GW of concentrated reduction potentials are not large.

solar power (CSP) and 0.1 GW of geothermal power.

Rapid cost reductions to renewable power The levelised cost of electricity (LCOE) is

generation technologies means that up-to-date are declining for wind, solar PV, CSP and some

required to evaluate support policies for renewables, biomass technologies, while hydropower and

while a dynamic analysis of the costs of renewables geothermal electricity produced of good sites

is needed to decide on the level of support. There is are still the cheapest way to generate electricity.

insufficient publicity available data to allow policy Renewable technologies are now the most

makers to make robust decisions about the role of economic solution for new capacity in an

renewable power generation. increasing number of countries and regions.

Where oil-fired generation is the predominant

power generation source (e.g. on islands, off-

?

?

??

planned for key locations in China.Tropical regions are considered the only viable locations Lockheed Martin and Reignwood will begin concept for OTEC plants due to the greater temperature design of the sea-based prototype plant this year with differential between the shallow and deep water. Unlike construction due to begin next year. Once it is up and wind and solar power, OTEC can produce electricity running, the two companies plan to use the knowledge around the clock, 365 days a year to supply base load

and experience gained over the course of the project to power. OTEC plants also produce cold water as a by-improve the design of additional commercial-scale product that can be used for air conditioning and plants.refrigeration at locations near the plant.

The companies claim each 100 MW OTEC facility could 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.

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 The plant is to be built off the coast of southern China to million barrels of oil and decrease carbon emissions by supply 100 percent of the power needed for a large-scale half a million tons. Assuming oil trading at near US$100 green resort community being developed by Reignwood a barrel, they estimate fuel savings from one plant could Group. The new resort is planned as Reignwood's first exceed $130 million a year.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 27

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

“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”

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.

The public debate around renewable energy, however, The rapid growth in the deployment of solar and

continues to suffer from an outdated perception that wind is driving a convergence in electricity

renewable energy is not competitive, forming a generation costs. When excellent local resources are

significant and unnecessary barrier to its deployment. available, mature technologies, such as biomass,

geothermal and hydropower, can all produce IRENA's Renewable Power Generation Costs in 2012: electricity of very competitive costs, although in An overview is the most current, comprehensive analysis limited quantities. As the deployment of wind and of the costs and performance of renewable power solar has increased, we are seeing a reduction in the generation today, which analyses 8,000 medium-to large- costs of wind and solar technologies and a scale renewable power generation projects. convergence in the LCOE of renewable technologies

at low levels. This will continue in the short-to Key findings include:

medium-term given the current manufacturing

overcapacity for wind and solar PV. ? Renewable account for almost half of new

electricity capacity installed and costs are continuing to Further equipment cost reductions can be expected

fall. The rapid deployment of renewables, working in to 2020, which will lower the weighted average

combination with high learning rates, has produced a LCOE of renewables. The rate of decline to 2020 for

virtuous circle that is leading to significant cost declines solar PV is likely to be slower than in recent years,

and helping to fuel a renewable revolution. In 2011, but wind and CSP may see acceleration.

additions included 41 GW of new winder power Hydropower, geothermal and most biomass

capacity, 30 GW of solar photovoltaic (PV), 25 GW of combustion technologies are mature and their cost

hydropower, 6 GW of biomass, 0.5 GW of concentrated reduction potentials are not large.

solar power (CSP) and 0.1 GW of geothermal power.

Rapid cost reductions to renewable power The levelised cost of electricity (LCOE) is

generation technologies means that up-to-date are declining for wind, solar PV, CSP and some

required to evaluate support policies for renewables, biomass technologies, while hydropower and

while a dynamic analysis of the costs of renewables geothermal electricity produced of good sites

is needed to decide on the level of support. There is are still the cheapest way to generate electricity.

insufficient publicity available data to allow policy Renewable technologies are now the most

makers to make robust decisions about the role of economic solution for new capacity in an

renewable power generation. increasing number of countries and regions.

Where oil-fired generation is the predominant

power generation source (e.g. on islands, off-

?

?

??

planned for key locations in China.Tropical regions are considered the only viable locations Lockheed Martin and Reignwood will begin concept for OTEC plants due to the greater temperature design of the sea-based prototype plant this year with differential between the shallow and deep water. Unlike construction due to begin next year. Once it is up and wind and solar power, OTEC can produce electricity running, the two companies plan to use the knowledge around the clock, 365 days a year to supply base load

and experience gained over the course of the project to power. OTEC plants also produce cold water as a by-improve the design of additional commercial-scale product that can be used for air conditioning and plants.refrigeration at locations near the plant.

The companies claim each 100 MW OTEC facility could 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.

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 The plant is to be built off the coast of southern China to million barrels of oil and decrease carbon emissions by supply 100 percent of the power needed for a large-scale half a million tons. Assuming oil trading at near US$100 green resort community being developed by Reignwood a barrel, they estimate fuel savings from one plant could Group. The new resort is planned as Reignwood's first exceed $130 million a year.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 27

Drinking Water from the Sea Using renewable systems

energyDesalination powered by renewable energy has also

Global demand for water is rising, but freshwater sources become increasingly attractive to areas rich in fossil

are becoming scarcer particularly in semi-arid and fuels, such as the Gulf. More than half of growth in the

coastal/island areas. Countries are increasingly turning to desalination market is in the MENA region, which has an

desalination of seawater and brackish water sources in abundance of renewable energy resources.

order to provide people with clean, fresh drinking water. Global demand for desalinated water is projected to grow Desalinated water currently accounts for 0.6% of global by 9% per year between 2010 and 2016. In the Middle water supply. The Middle East and North Africa East and North Africa, water demand is expected to (MENA) region accounts for about 38% of the global increase from 9 billion m3 in 2010 to 13.3 billion m3 in desalination capacity, led by Saudi Arabia.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);

Renewable energy offers a sustainable and secure way to ? Membrane desalination (reverse osmosis) uses

desalinate. Currently, only 1% of desalinated water high pressure from electrically-powered pumps to separate

comes from renewable energy, but the technology is fresh water from seawater or brackish water using a

improving and prices are coming down. Renewable membrane. This can be powered by electrica lly from

energy poses a viable cost-effective option in many parts solar photovoltaic and CSP. This is appropriate in arid

of the world.regions with extensive solar energy potential, such as the

Gulf.There is increasing demand for desalinated water in

energy-importing countries, such as India, China and (For more information, please contact:

small islands. This means there is significant market www.irena.org/publications)

potential for renewable energy-powered desalination

“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”

UN Secretary-General Ban Ki-moon is leading a global for a new phase to implement the aspirational goals.

initiative on Sustainable Energy for All (SE4ALL) to In this context, IRENA has launched REMAP 2030, a global mobilise action from all sectors of society in support of roadmap to identify the policies and actions required to double three interlinked objectives to be achieved by 2030:the share of renewable energy (to 30%) by 2030. The launch,

. Ensure universal access to modern energy services; which took place yesterday at the third IRENA Assembly,

. Double the global rate of improvement in energy marks the start of a process which will invite experts and policy efficiency; and makers from across the globe to assess the challenges and . Double the share of renewable energy in the global opportunities in meeting that goal, taking into account the

energy mix interactions between renewable energy and the other two

SE4ALL objectives. IRENA's initial analysis suggests that Speaking on the final day of the third IRENA Assembly in increasing the share of renewable energy to 30% is achievable.Abu Dhabi, Dr. Robert F. Ichord, Jr., Deputy Assistant

Secretary, Bureau of Energy Resources, U.S. Department Speaking at a thematic presentation yesterday afternoon, of State, described the momentum and support that has IRENA's Director-General Adnan Z. Amin presented some of gathered for the initiative since its inception in September the preliminary findings of the REMAP 2030 project, which 2011. indicate that, if progress continues at the current pace,

renewable energy will account for 21% of the global energy As a result of this momentum, in September last year

mix in 2030, leaving a gap of 9%. This presents a significant Secretary-General Ban Ki-moon convened a high-level

challenge that requires action at all levels and in different meeting on SE4ALL in New York, and together with Jim

sectors, and Mr. Amin invited governments to show their Yong Kim, President of the World Bank expressed support

12

3

Irena launches roadmap to double renewable energy by 2030By Amy Cutter, Editor of Outreach

support by nominating national experts to take part. had previously been raised in the morning's ministerial

roundtables and at last year's high-level meeting on SE4ALL Dr. Ichord said that IRENA was well positioned as a in his presentation Mr. Amin emphasised that IRENA's renewables hub for multilateral action and cooperation and involvement was based on the distinction that the initiative is already playing a key role in the implementation of provides a collaborative platform to facilitate cooperation SE4ALL through activities on policy and enabling between different constituencies, rather than giving directives environments, technology and knowledge development, or binding goals.financing and innovation models, and outreach and

partnership. He continued to say that IRENA would still be conducting

research into ways to increase the global share of renewables In response to the presentations, India raised concerns were SE4ALL not to exist, but that the initiative provides an about IRENA's involvement with the SE4ALL initiative, organising framework for stakeholders that the Agency can which was not agreed by consensus at Rio+20. In utilise to advance their mission.particular, the Indian delegation highlighted that Rio+20

had given clear primacy to access to energy and they In contrast to India, Germany voiced their commitment to the

therefore had issue with the focus on the goal to double the goals of SE4ALL and said that IRENA's involvement was

share of renewables in the global energy mix. To close their appropriate given their unique positioning and as SE4ALL

statement India reiterated that agreements made at the was not a negotiated outcome of Rio+20 but a Secretary-

Rio+20 Summit should not be renegotiated in other General initiative. They stated their support of REMAP 2030

forums. and their intention to contribute to the work with both data and

experts.Seemingly pre-empting the comments from India which

“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!”

Solar Power

28 29

Drinking Water from the Sea Using renewable systems

energyDesalination powered by renewable energy has also

Global demand for water is rising, but freshwater sources become increasingly attractive to areas rich in fossil

are becoming scarcer particularly in semi-arid and fuels, such as the Gulf. More than half of growth in the

coastal/island areas. Countries are increasingly turning to desalination market is in the MENA region, which has an

desalination of seawater and brackish water sources in abundance of renewable energy resources.

order to provide people with clean, fresh drinking water. Global demand for desalinated water is projected to grow Desalinated water currently accounts for 0.6% of global by 9% per year between 2010 and 2016. In the Middle water supply. The Middle East and North Africa East and North Africa, water demand is expected to (MENA) region accounts for about 38% of the global increase from 9 billion m3 in 2010 to 13.3 billion m3 in desalination capacity, led by Saudi Arabia.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);

Renewable energy offers a sustainable and secure way to ? Membrane desalination (reverse osmosis) uses

desalinate. Currently, only 1% of desalinated water high pressure from electrically-powered pumps to separate

comes from renewable energy, but the technology is fresh water from seawater or brackish water using a

improving and prices are coming down. Renewable membrane. This can be powered by electrica lly from

energy poses a viable cost-effective option in many parts solar photovoltaic and CSP. This is appropriate in arid

of the world.regions with extensive solar energy potential, such as the

Gulf.There is increasing demand for desalinated water in

energy-importing countries, such as India, China and (For more information, please contact:

small islands. This means there is significant market www.irena.org/publications)

potential for renewable energy-powered desalination

“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”

UN Secretary-General Ban Ki-moon is leading a global for a new phase to implement the aspirational goals.

initiative on Sustainable Energy for All (SE4ALL) to In this context, IRENA has launched REMAP 2030, a global mobilise action from all sectors of society in support of roadmap to identify the policies and actions required to double three interlinked objectives to be achieved by 2030:the share of renewable energy (to 30%) by 2030. The launch,

. Ensure universal access to modern energy services; which took place yesterday at the third IRENA Assembly,

. Double the global rate of improvement in energy marks the start of a process which will invite experts and policy efficiency; and makers from across the globe to assess the challenges and . Double the share of renewable energy in the global opportunities in meeting that goal, taking into account the

energy mix interactions between renewable energy and the other two

SE4ALL objectives. IRENA's initial analysis suggests that Speaking on the final day of the third IRENA Assembly in increasing the share of renewable energy to 30% is achievable.Abu Dhabi, Dr. Robert F. Ichord, Jr., Deputy Assistant

Secretary, Bureau of Energy Resources, U.S. Department Speaking at a thematic presentation yesterday afternoon, of State, described the momentum and support that has IRENA's Director-General Adnan Z. Amin presented some of gathered for the initiative since its inception in September the preliminary findings of the REMAP 2030 project, which 2011. indicate that, if progress continues at the current pace,

renewable energy will account for 21% of the global energy As a result of this momentum, in September last year

mix in 2030, leaving a gap of 9%. This presents a significant Secretary-General Ban Ki-moon convened a high-level

challenge that requires action at all levels and in different meeting on SE4ALL in New York, and together with Jim

sectors, and Mr. Amin invited governments to show their Yong Kim, President of the World Bank expressed support

12

3

Irena launches roadmap to double renewable energy by 2030By Amy Cutter, Editor of Outreach

support by nominating national experts to take part. had previously been raised in the morning's ministerial

roundtables and at last year's high-level meeting on SE4ALL Dr. Ichord said that IRENA was well positioned as a in his presentation Mr. Amin emphasised that IRENA's renewables hub for multilateral action and cooperation and involvement was based on the distinction that the initiative is already playing a key role in the implementation of provides a collaborative platform to facilitate cooperation SE4ALL through activities on policy and enabling between different constituencies, rather than giving directives environments, technology and knowledge development, or binding goals.financing and innovation models, and outreach and

partnership. He continued to say that IRENA would still be conducting

research into ways to increase the global share of renewables In response to the presentations, India raised concerns were SE4ALL not to exist, but that the initiative provides an about IRENA's involvement with the SE4ALL initiative, organising framework for stakeholders that the Agency can which was not agreed by consensus at Rio+20. In utilise to advance their mission.particular, the Indian delegation highlighted that Rio+20

had given clear primacy to access to energy and they In contrast to India, Germany voiced their commitment to the

therefore had issue with the focus on the goal to double the goals of SE4ALL and said that IRENA's involvement was

share of renewables in the global energy mix. To close their appropriate given their unique positioning and as SE4ALL

statement India reiterated that agreements made at the was not a negotiated outcome of Rio+20 but a Secretary-

Rio+20 Summit should not be renegotiated in other General initiative. They stated their support of REMAP 2030

forums. and their intention to contribute to the work with both data and

experts.Seemingly pre-empting the comments from India which

“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!”

Solar Power

28 29

“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”

“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)”

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 A grid-connected system allows you to power your home system supplier/installer should contact your power or small business with renewable energy during those provider to learn about its specific grid-connection periods (daily as well as seasonally) when the sun is requirements before purchasing any part of your renewable

energy system. See our page on balance-of-system equipment requirements for small renewable energy systems.

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.

You will need to contact your power provider directly to shining, the water is running, or the wind is blowing. Any learn about its specific requirements. If your power excess electricity you produce is fed back into the grid. provider does not have an individual assigned to deal with When renewable resources are unavailable, electricity from grid-connection requests, try contacting your state utilities the grid supplies your needs, eliminating the expense of commission, state utility consumer advocate group electricity storage devices like batteries. (represents the interests of consumers before state and

federal regulators and in the courts), state consumer In addition, power providers (i.e., electric utilities) in most representation office, or state energy office.states allow net metering, an arrangement where the excess electricity generated by grid-connected renewable energy

Addressing safety and power quality for grid systems "turns back" your electricity meter as it is fed back

connectioninto the grid. If you use more electricity than your system feeds into the grid during a given month, you pay your

Power providers want to be sure that your system includes power provider only for the difference between what you safety and power quality components. These components used and what you produced.include switches to disconnect your system from the grid in the event of a power surge or power failure (so repairmen Some of the things you need to know when thinking about are not electrocuted) and power conditioning equipment to connecting your home energy system to the electric grid ensure that your power exactly matches the voltage and include:frequency of the electricity flowing through the grid.

? Equipment required to connect your system to the grid

? Grid-connection requirements from your power provider

? State and community codes and requirements

Equipment required for grid-connected systems

Aside from the major small renewable energy system The Institute of Electrical and Electronics Engineers

Grid-Connected Residential Renewable Energy Systems(IEEE) has written a standard that addresses all grid-connected 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 With a grid-connected system, when your renewable for more information. energy system generates more electricity than you can use

at that moment, the electricity goes onto the electric grid Underwriters Laboratories (UL) has developed UL 1741 to for your utility to use elsewhere. The Public Utility certify inverters, converters, charge controllers, and output Regulatory Policy Act of 1978 (PURPA) requires power controllers for power-producing stand-alone and grid- providers to purchase excess power from grid-connected connected renewable energy systems. UL 1741 verifies that small renewable energy systems at a rate equal to what it inverters comply with IEEE 1547 for grid-connected costs the power provider to produce the power itself. Power applications. providers generally implement this requirement through

various metering arrangements. Here are the metering The National Electrical Code (NEC), a product of the arrangements you are likely to encounter:National Fire Protection Association, deals with electrical equipment and wiring safety. Although states and power Net purchase and sale -- Under this arrangement, two uni-providers are not federally mandated to adopt these codes directional meters are installed: one records electricity and standards, a number of utility commissions and drawn from the grid, and the other records excess legislatures now require regulations for distributed electricity generated and fed back into the grid. You pay generation systems to be based on the IEEE, UL, and NEC retail rate for the electricity you use, and the power standards. provider purchases your excess generation at its avoided

cost (wholesale rate). There may be a significant difference In addition, some states are now "pre-certifying" specific between the retail rate you pay and the power provider's models of equipment as safe to connect to the state avoided cost.Net metering -- Net metering provides the electricity grid. 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

When connecting your small renewable energy system to the excess electricity your system feeds back into the grid. the grid, you will probably need to sign an interconnection The meter spins forward as you draw electricity, and it agreement with your power provider. In your agreement, spins backward as the excess is fed into the grid. If, at the power providers may require you to do the following: end of the month, you've used more electricity than your Carry liability insurance -- Liability insurance protects the system has produced, you pay retail price for that extra power provider in the event of accidents resulting from the electricity. If you've produced more than you've used, the operation of your system. Most homeowners carry at least power provider generally pays you for the extra electricity $100,000 of liability through their homeowner insurance at its avoided cost. The real benefit of net metering is that policies (although you should verify that your policy will the power provider essentially pays you retail price for the cover your system), which is often sufficient. Be aware, electricity you feed back into the grid.however, that your power provider may require that you carry more. Some power providers may also require you to Some power providers will now let you carry over the indemnify them for any potential damage, loss, or injury balance of any net extra electricity your system generates caused by your system, which can sometimes be from month to month, which can be an advantage if the prohibitively expensive. resource you are using to generate your electricity is

seasonal. If, at the end of the year, you have produced more Pay fees and other charges -- You may be asked to pay than you've used, you forfeit the excess generation to the permitting fees, engineering/inspection fees, metering power provider.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.

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.

Metering and rate arrangements for grid-connected systems

Contractual issues for grid-connected systems

work, and appointing representatives to handle grid-connection inquiries”

“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”

“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

30 31

“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”

“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)”

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 A grid-connected system allows you to power your home system supplier/installer should contact your power or small business with renewable energy during those provider to learn about its specific grid-connection periods (daily as well as seasonally) when the sun is requirements before purchasing any part of your renewable

energy system. See our page on balance-of-system equipment requirements for small renewable energy systems.

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.

You will need to contact your power provider directly to shining, the water is running, or the wind is blowing. Any learn about its specific requirements. If your power excess electricity you produce is fed back into the grid. provider does not have an individual assigned to deal with When renewable resources are unavailable, electricity from grid-connection requests, try contacting your state utilities the grid supplies your needs, eliminating the expense of commission, state utility consumer advocate group electricity storage devices like batteries. (represents the interests of consumers before state and

federal regulators and in the courts), state consumer In addition, power providers (i.e., electric utilities) in most representation office, or state energy office.states allow net metering, an arrangement where the excess electricity generated by grid-connected renewable energy

Addressing safety and power quality for grid systems "turns back" your electricity meter as it is fed back

connectioninto the grid. If you use more electricity than your system feeds into the grid during a given month, you pay your

Power providers want to be sure that your system includes power provider only for the difference between what you safety and power quality components. These components used and what you produced.include switches to disconnect your system from the grid in the event of a power surge or power failure (so repairmen Some of the things you need to know when thinking about are not electrocuted) and power conditioning equipment to connecting your home energy system to the electric grid ensure that your power exactly matches the voltage and include:frequency of the electricity flowing through the grid.

? Equipment required to connect your system to the grid

? Grid-connection requirements from your power provider

? State and community codes and requirements

Equipment required for grid-connected systems

Aside from the major small renewable energy system The Institute of Electrical and Electronics Engineers

Grid-Connected Residential Renewable Energy Systems(IEEE) has written a standard that addresses all grid-connected 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 With a grid-connected system, when your renewable for more information. energy system generates more electricity than you can use

at that moment, the electricity goes onto the electric grid Underwriters Laboratories (UL) has developed UL 1741 to for your utility to use elsewhere. The Public Utility certify inverters, converters, charge controllers, and output Regulatory Policy Act of 1978 (PURPA) requires power controllers for power-producing stand-alone and grid- providers to purchase excess power from grid-connected connected renewable energy systems. UL 1741 verifies that small renewable energy systems at a rate equal to what it inverters comply with IEEE 1547 for grid-connected costs the power provider to produce the power itself. Power applications. providers generally implement this requirement through

various metering arrangements. Here are the metering The National Electrical Code (NEC), a product of the arrangements you are likely to encounter:National Fire Protection Association, deals with electrical equipment and wiring safety. Although states and power Net purchase and sale -- Under this arrangement, two uni-providers are not federally mandated to adopt these codes directional meters are installed: one records electricity and standards, a number of utility commissions and drawn from the grid, and the other records excess legislatures now require regulations for distributed electricity generated and fed back into the grid. You pay generation systems to be based on the IEEE, UL, and NEC retail rate for the electricity you use, and the power standards. provider purchases your excess generation at its avoided

cost (wholesale rate). There may be a significant difference In addition, some states are now "pre-certifying" specific between the retail rate you pay and the power provider's models of equipment as safe to connect to the state avoided cost.Net metering -- Net metering provides the electricity grid. 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

When connecting your small renewable energy system to the excess electricity your system feeds back into the grid. the grid, you will probably need to sign an interconnection The meter spins forward as you draw electricity, and it agreement with your power provider. In your agreement, spins backward as the excess is fed into the grid. If, at the power providers may require you to do the following: end of the month, you've used more electricity than your Carry liability insurance -- Liability insurance protects the system has produced, you pay retail price for that extra power provider in the event of accidents resulting from the electricity. If you've produced more than you've used, the operation of your system. Most homeowners carry at least power provider generally pays you for the extra electricity $100,000 of liability through their homeowner insurance at its avoided cost. The real benefit of net metering is that policies (although you should verify that your policy will the power provider essentially pays you retail price for the cover your system), which is often sufficient. Be aware, electricity you feed back into the grid.however, that your power provider may require that you carry more. Some power providers may also require you to Some power providers will now let you carry over the indemnify them for any potential damage, loss, or injury balance of any net extra electricity your system generates caused by your system, which can sometimes be from month to month, which can be an advantage if the prohibitively expensive. resource you are using to generate your electricity is

seasonal. If, at the end of the year, you have produced more Pay fees and other charges -- You may be asked to pay than you've used, you forfeit the excess generation to the permitting fees, engineering/inspection fees, metering power provider.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.

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.

Metering and rate arrangements for grid-connected systems

Contractual issues for grid-connected systems

work, and appointing representatives to handle grid-connection inquiries”

“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”

“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

30 31

expensive coal from origins as South Africa, Australia and According to reports, the world is looking to India for ideas Indonesia. “We must focus on trapping clean energy not to capture solar energy to fuel development, according to just from sun but also from wind, geothermal sources and Dr. Farooq Abdullah, Union Minister for New and even sea.”Renewable Energy (MNRE). He said this while

inaugurating the State's off-grid rooftop solar power This would help reduce our reliance on fossil and other program in which 10,000 households are involved initially.non-renewable energy sources and temper global warming threat. In his address, Chief Minister Oommen Chandy said Agency for Non-Conventional Energy and Rural that rooftop solar power program was the most ideal Technology (ANERT), Kerala, an autonomous body under solution for the State.the department of power, is spearheading the program.

Kerala used to be a power-surplus State in the 1970s and Many of the countries are willing to join our efforts at early 1980s but environmental concerns have reversed the harnessing this giant source of energy, the Union Minister situation. This is because hydroelectric power stations have said. Scientists across the country and outside are working since come to be associated with massive implications for on ways to store solar energy in a meaningfully economical the environment.manner.

Unlike other State, Kerala does not have the land to spare “We're all hoping that we'll soon succeed in finding a to house massive solar photovoltaic plants that stand on solution,” Abdullah said. This is a challenge we have to acres and acres. Given the circumstances, rooftop solar take head-on. “Solar energy is out future. It is rather the power program has been found to be the most practicable future of the world.”solution.

He expressed happiness that all States are working hard “The rooftop solar power program is the first step in the towards this. Rajasthan has gone a long way forward.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 Speaking on the occasion, electricity minister Aryadan 2022. Abdullah said that adequate availability of power has Mohammed said that the program has elicited good implications for not just the general economy and industry response from people.but also for jobs.

ANERT has received 'some 5,000 applications, he said. And this is exactly why the country has been sourcing

World keenly watching India's solar power initiatives: Dr. Farooq Abdullah, Minister, MNRE

“We expect to get even more going forward.” notes this is the highest increase in the industrial age, which began more than 260 years

A growing interest in a low-carbon economy means Access to sustainable energy resources is vital to investors can expect a crowded and fast-developing sustainable development, which is a fundamental concern market, a British energy minister said.for the United Nations, the secretary-general said. U.N.

Secretary-General Ban Ki-moon issued a message to British Energy and Climate Change Minister Greg Barker delegates gathered at a weeklong energy summit under way told delegates at the Abu Dhabi Sustainability Week in Abu Dhabi during 2nd week of January 2013. The conference that development banks and pension funds meeting represents the third session of the International should look at a low-carbon future as a growth opportunity.Renewable Energy Agency (IRENA) assembly."The opportunities for the global, low-carbon economy are huge and growing at an exponential rate," he said in a IRENA aims to promote widespread and increased use of statement. "Clean energy and a range of resource efficient clean energy resources from hydropower to geothermal projects can expect growing interest in attracting technology.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 The conference began with the third session of the sector to get behind the low-carbon transformation under International Renewable Energy Agency's General way across the globe.Assembly. IRENA aims to promote widespread and increased use of clean energy resources from hydropower "Sustainable energy is essential to achieving sustainable to geothermal technology.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 Ban's so-called sustainable energy for all initiative aims to that are human-induced could open new business provide universal energy access, double energy efficiency opportunities.rates and double the share of renewable energy in the

global energy sector by 2030."Abu Dhabi is investing in the future of energy by working with investment partners and governments, like the United Ban said harnessing sustainable energy resources may Kingdom, to build sophisticated, large-scale renewable "reduce the risks of runaway climate change."\energy projects that showcase the economic returns, and environmental benefits, of addressing these pressing In November, the U.N. World Meteorological Organization issues," he said in a statement.stated there was a 29% increase in the 1990-2010 period in

the warming effect of greenhouse gas emissions. WMO

Conference equates climate with growthU.N. sees global role for renewable energy

Global investment in renewable energy has grown rapidly in longer-term objectives, and digest the effects of the rapid recent years, driven by concerns about climate change, the expansion in Biomass & wasteincreasing 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. Geographically Europe will remain the largest regional

market for renewables up to 2014, with 25% of world Over the next 20 years this growth will require nearly $7 investment, but will experience a contraction over this period trillion of new capital. During this period renewable sources, as governments review the value of clean energy support including hydro, will increase their share of total primary mechanisms in the face of severe sovereign debt problems. energy production from 12.6% in 2010 to 15.7% in 2030. The Growth in the European market will resume post 2015 at an share of non-hydro renewable resources will increase from annual growth rate of 8% as investment is scaled up to 10.3% to 13.2% over the same period. achieve the European renewable energy target by 2020.

The next 10 years will see a steep climb in investment as The economic challenges in Europe will be felt less in the rest countries rush to meet their 2020 renewables targets. In of the world. In China investment in renewable energy is addition, much of the spend in 2018-20 will be in the more expected to continue to increase in all years, and by 2014 costly offshore wind projects, in particular in Germany and China will become the largest single market for renewable the UK. Expenditure on renewable energy projects is likely to energy with an annual spend of just under $50bn, accounting dip temporarily in the early 2020s as countries review their for 21% of the world market. The US and Canada are also

Regional outlook

Global Renewable Energy Market Projections

32 33

expensive coal from origins as South Africa, Australia and According to reports, the world is looking to India for ideas Indonesia. “We must focus on trapping clean energy not to capture solar energy to fuel development, according to just from sun but also from wind, geothermal sources and Dr. Farooq Abdullah, Union Minister for New and even sea.”Renewable Energy (MNRE). He said this while

inaugurating the State's off-grid rooftop solar power This would help reduce our reliance on fossil and other program in which 10,000 households are involved initially.non-renewable energy sources and temper global warming threat. In his address, Chief Minister Oommen Chandy said Agency for Non-Conventional Energy and Rural that rooftop solar power program was the most ideal Technology (ANERT), Kerala, an autonomous body under solution for the State.the department of power, is spearheading the program.

Kerala used to be a power-surplus State in the 1970s and Many of the countries are willing to join our efforts at early 1980s but environmental concerns have reversed the harnessing this giant source of energy, the Union Minister situation. This is because hydroelectric power stations have said. Scientists across the country and outside are working since come to be associated with massive implications for on ways to store solar energy in a meaningfully economical the environment.manner.

Unlike other State, Kerala does not have the land to spare “We're all hoping that we'll soon succeed in finding a to house massive solar photovoltaic plants that stand on solution,” Abdullah said. This is a challenge we have to acres and acres. Given the circumstances, rooftop solar take head-on. “Solar energy is out future. It is rather the power program has been found to be the most practicable future of the world.”solution.

He expressed happiness that all States are working hard “The rooftop solar power program is the first step in the towards this. Rajasthan has gone a long way forward.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 Speaking on the occasion, electricity minister Aryadan 2022. Abdullah said that adequate availability of power has Mohammed said that the program has elicited good implications for not just the general economy and industry response from people.but also for jobs.

ANERT has received 'some 5,000 applications, he said. And this is exactly why the country has been sourcing

World keenly watching India's solar power initiatives: Dr. Farooq Abdullah, Minister, MNRE

“We expect to get even more going forward.” notes this is the highest increase in the industrial age, which began more than 260 years

A growing interest in a low-carbon economy means Access to sustainable energy resources is vital to investors can expect a crowded and fast-developing sustainable development, which is a fundamental concern market, a British energy minister said.for the United Nations, the secretary-general said. U.N.

Secretary-General Ban Ki-moon issued a message to British Energy and Climate Change Minister Greg Barker delegates gathered at a weeklong energy summit under way told delegates at the Abu Dhabi Sustainability Week in Abu Dhabi during 2nd week of January 2013. The conference that development banks and pension funds meeting represents the third session of the International should look at a low-carbon future as a growth opportunity.Renewable Energy Agency (IRENA) assembly."The opportunities for the global, low-carbon economy are huge and growing at an exponential rate," he said in a IRENA aims to promote widespread and increased use of statement. "Clean energy and a range of resource efficient clean energy resources from hydropower to geothermal projects can expect growing interest in attracting technology.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 The conference began with the third session of the sector to get behind the low-carbon transformation under International Renewable Energy Agency's General way across the globe.Assembly. IRENA aims to promote widespread and increased use of clean energy resources from hydropower "Sustainable energy is essential to achieving sustainable to geothermal technology.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 Ban's so-called sustainable energy for all initiative aims to that are human-induced could open new business provide universal energy access, double energy efficiency opportunities.rates and double the share of renewable energy in the

global energy sector by 2030."Abu Dhabi is investing in the future of energy by working with investment partners and governments, like the United Ban said harnessing sustainable energy resources may Kingdom, to build sophisticated, large-scale renewable "reduce the risks of runaway climate change."\energy projects that showcase the economic returns, and environmental benefits, of addressing these pressing In November, the U.N. World Meteorological Organization issues," he said in a statement.stated there was a 29% increase in the 1990-2010 period in

the warming effect of greenhouse gas emissions. WMO

Conference equates climate with growthU.N. sees global role for renewable energy

Global investment in renewable energy has grown rapidly in longer-term objectives, and digest the effects of the rapid recent years, driven by concerns about climate change, the expansion in Biomass & wasteincreasing 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. Geographically Europe will remain the largest regional

market for renewables up to 2014, with 25% of world Over the next 20 years this growth will require nearly $7 investment, but will experience a contraction over this period trillion of new capital. During this period renewable sources, as governments review the value of clean energy support including hydro, will increase their share of total primary mechanisms in the face of severe sovereign debt problems. energy production from 12.6% in 2010 to 15.7% in 2030. The Growth in the European market will resume post 2015 at an share of non-hydro renewable resources will increase from annual growth rate of 8% as investment is scaled up to 10.3% to 13.2% over the same period. achieve the European renewable energy target by 2020.

The next 10 years will see a steep climb in investment as The economic challenges in Europe will be felt less in the rest countries rush to meet their 2020 renewables targets. In of the world. In China investment in renewable energy is addition, much of the spend in 2018-20 will be in the more expected to continue to increase in all years, and by 2014 costly offshore wind projects, in particular in Germany and China will become the largest single market for renewable the UK. Expenditure on renewable energy projects is likely to energy with an annual spend of just under $50bn, accounting dip temporarily in the early 2020s as countries review their for 21% of the world market. The US and Canada are also

Regional outlook

Global Renewable Energy Market Projections

32 33

India is committed to sustainable energy for all and it Lokesh said: "India is appreciative the work done by stands among the top five nations of the world in terms IRENA in the area of renewable energy. It has studied of renewable energy capacity, Indian Ambassador to the the work program put up by the Director General IRENA UAE said. Speaking at the 3rd session of International for the year 2013.Renewable Energy Agency (IRENA) being held in Abu Dhabi, Ambassador M K Lokesh said that the country "The program is elaborate and includes varied activities." has an installed base of over 26,000 MW, which However, he said that over 1.4 billion people in the constitutes 12.5 per cent of the country's total power world, with 400 million in India alone, remain without generation capacity, representing an almost 400 per cent access to electricity.increase in the past five years alone.

"With such daunting challenges, the issue is universal "Renewable energy sector in India is now seen as access to energy per se, utilizing all forms of energy and significant player in the grid connected power generation not just the renewables. As far as India is concerned, and an essential player for energy access. Investment in even a doubling of the share of renewables will not make renewable energy sector grew by 25 per cent last year a dent on the scale of our energy poverty," said Lokesh.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

Stating India's position on United Secretary General's point of view, primacy needs to be given to ensuring Initiative on Sustainable Energy for All (SE4ALL) universal access to energy.

India stands among the top five nations of the world in terms of renewable energy capacity

India committed to sustainable energy for all

expected to see no lasting slowdown in project build, together $71bn in 2010 to $140bn in 2020 and $82bn in 2030. The hitting $50bn of investment by 2020. bioenergy sector will see renewed activity with the

commercialisation of second-generation technologies and By far the most rapid growth will be seen in the rapidly global supply chains developing in the movement of biomass developing economies of India, the Middle East and North fuels. Investment in biofuels, biomass and waste-to-energy is Africa (MENA), Africa and Latin America, which are projected to increase from $14bn in 2010 to $80bn in 2020 projected to experience growth rates of 10-18% per year and then remain level in the following decade.between 2010 and 2020. By 2020 the markets outside of the EU, US, Canada and China will Net power production will increase account for 50% of by nearly 90% over the next 20 world investment. years, to 34,000TWh worldwide.

Although electricity intensity has declined over the last 20 years and will continue to come down, there is

A f t e r 2 0 2 0 m o r e a clear correlation between a m b i t i o u s e n e r g y economic growth and electricity policies coupled with demand. The share of clean much lower unit costs of electricity (renewables, including renewable technologies hydro, and fossil-fuel plants with w i l l d r i v e f u r t h e r carbon capture and storage) is deployment of renewable energy technologies. Although in projected to rise from 23% in 2010 to 29% in 2020, reaching the 10 years to 2030, world investment in renewables will rise 34% in 2030. by a more modest 2.5% per year, this masks a very significant increase in development as the cost of technologies declines. Within the renewable sector, the share of hydro power is

expected to decline from some 19% in 2010 to 15% by 2020. The benefits of cost reductions over time will mostly affect Because of the overall increase in power production, hydro the solar sector, where unit costs are expected to fall by 60% output will still increase in absolute terms by 2% a year. The over the next 20 years. This will spur deployment of solar aggregate share of other renewable technologies, such as technologies around the world, but it will also mean less wind, solar and geothermal, and CCS, will grow from 5% in capital is required to produce the same output. Annual 2010 to 19% in 2030, corresponding to a 10% compound investment in solar power assets will go from $86bn in 2010 annual growth rate.to $150bn in 2020 and then remain constant at $150bn a year between 2020 and 2030. (Source: Bloomberg New Energy Finance)

The wind sector will broadly match solar and grow from

Power generation

Technology outlook(Incidentally, this program is for 1 kW per Unlike the 10,000-rooftop programme, which is to be householdno subsidy will be given for any capacity formally launched on February 11, the 25,000 plants beyond 1 kW.)”project will be grid-connected.

“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.

For the current program, ANERT has empanelled 15 Even as it is getting ready to formally launch its '10,000 companies. Any person who is interested in putting up a rooftop' program, Kerala is working on the next solar plant on his roof could get it done by any of these stepanother program to facilitate an additional 25,000 companies and be eligible for the state government rooftop solar plants in the State. But unlike the 10,000-subsidy.With the subsidies from both the central and rooftop program, which is to be formally launched on state government, the cost for the 1 kW system works February 11, the next one will be grid-connected.out to be around Rs. 80,000. ANERT is also talking to

This was disclosed by the Director of the Agency for banks for facilitating funding for even this amount, Non-conventional Energy and Rural Technology Jayaraju told the press.(ANERT), M. Jayaraju. ANERT is Kerala's nodal body

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

The regulations for the grid-tie 25,000 rooftop program Kayamkulam plant in 1998, the peak power deficit in the are being evolved by the Kerala State Electricity Board State is as much as 1,600 MW.A uniqueness of the state and will have to be approved by the state electricity is that about 80 per cent of the demand is from the 90 regulatory commission. Jayaraju expressed confidence lakh-odd domestic consumers. However, most that the program would be brought in before 2014. consumers are affluent and would not mind putting up

solar plants on their roofs for the sake of energy security, he said.

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

Kerala plans 25,000-rooftop solar units program

“India sees energy goals set in UNSG's SE4All initiative, which could not be accepted by all parties as a package, as restricting its policy space and options. Particular it was finally decided to only "take note of the initiative reference is therefore, invited to the discussions held at without welcoming it or endorsing."Rio+20 conference last June, where IRENA was also present, and where the SE4all initiative was discussed in At Rio, member states did not come to an agreement on a great detail," the ambassador said. setting targets on energy access, energy efficiency and

renewable energy.According to him, since the initiative had elements in it,

34 35

India is committed to sustainable energy for all and it Lokesh said: "India is appreciative the work done by stands among the top five nations of the world in terms IRENA in the area of renewable energy. It has studied of renewable energy capacity, Indian Ambassador to the the work program put up by the Director General IRENA UAE said. Speaking at the 3rd session of International for the year 2013.Renewable Energy Agency (IRENA) being held in Abu Dhabi, Ambassador M K Lokesh said that the country "The program is elaborate and includes varied activities." has an installed base of over 26,000 MW, which However, he said that over 1.4 billion people in the constitutes 12.5 per cent of the country's total power world, with 400 million in India alone, remain without generation capacity, representing an almost 400 per cent access to electricity.increase in the past five years alone.

"With such daunting challenges, the issue is universal "Renewable energy sector in India is now seen as access to energy per se, utilizing all forms of energy and significant player in the grid connected power generation not just the renewables. As far as India is concerned, and an essential player for energy access. Investment in even a doubling of the share of renewables will not make renewable energy sector grew by 25 per cent last year a dent on the scale of our energy poverty," said Lokesh.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

Stating India's position on United Secretary General's point of view, primacy needs to be given to ensuring Initiative on Sustainable Energy for All (SE4ALL) universal access to energy.

India stands among the top five nations of the world in terms of renewable energy capacity

India committed to sustainable energy for all

expected to see no lasting slowdown in project build, together $71bn in 2010 to $140bn in 2020 and $82bn in 2030. The hitting $50bn of investment by 2020. bioenergy sector will see renewed activity with the

commercialisation of second-generation technologies and By far the most rapid growth will be seen in the rapidly global supply chains developing in the movement of biomass developing economies of India, the Middle East and North fuels. Investment in biofuels, biomass and waste-to-energy is Africa (MENA), Africa and Latin America, which are projected to increase from $14bn in 2010 to $80bn in 2020 projected to experience growth rates of 10-18% per year and then remain level in the following decade.between 2010 and 2020. By 2020 the markets outside of the EU, US, Canada and China will Net power production will increase account for 50% of by nearly 90% over the next 20 world investment. years, to 34,000TWh worldwide.

Although electricity intensity has declined over the last 20 years and will continue to come down, there is

A f t e r 2 0 2 0 m o r e a clear correlation between a m b i t i o u s e n e r g y economic growth and electricity policies coupled with demand. The share of clean much lower unit costs of electricity (renewables, including renewable technologies hydro, and fossil-fuel plants with w i l l d r i v e f u r t h e r carbon capture and storage) is deployment of renewable energy technologies. Although in projected to rise from 23% in 2010 to 29% in 2020, reaching the 10 years to 2030, world investment in renewables will rise 34% in 2030. by a more modest 2.5% per year, this masks a very significant increase in development as the cost of technologies declines. Within the renewable sector, the share of hydro power is

expected to decline from some 19% in 2010 to 15% by 2020. The benefits of cost reductions over time will mostly affect Because of the overall increase in power production, hydro the solar sector, where unit costs are expected to fall by 60% output will still increase in absolute terms by 2% a year. The over the next 20 years. This will spur deployment of solar aggregate share of other renewable technologies, such as technologies around the world, but it will also mean less wind, solar and geothermal, and CCS, will grow from 5% in capital is required to produce the same output. Annual 2010 to 19% in 2030, corresponding to a 10% compound investment in solar power assets will go from $86bn in 2010 annual growth rate.to $150bn in 2020 and then remain constant at $150bn a year between 2020 and 2030. (Source: Bloomberg New Energy Finance)

The wind sector will broadly match solar and grow from

Power generation

Technology outlook(Incidentally, this program is for 1 kW per Unlike the 10,000-rooftop programme, which is to be householdno subsidy will be given for any capacity formally launched on February 11, the 25,000 plants beyond 1 kW.)”project will be grid-connected.

“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.

For the current program, ANERT has empanelled 15 Even as it is getting ready to formally launch its '10,000 companies. Any person who is interested in putting up a rooftop' program, Kerala is working on the next solar plant on his roof could get it done by any of these stepanother program to facilitate an additional 25,000 companies and be eligible for the state government rooftop solar plants in the State. But unlike the 10,000-subsidy.With the subsidies from both the central and rooftop program, which is to be formally launched on state government, the cost for the 1 kW system works February 11, the next one will be grid-connected.out to be around Rs. 80,000. ANERT is also talking to

This was disclosed by the Director of the Agency for banks for facilitating funding for even this amount, Non-conventional Energy and Rural Technology Jayaraju told the press.(ANERT), M. Jayaraju. ANERT is Kerala's nodal body

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

The regulations for the grid-tie 25,000 rooftop program Kayamkulam plant in 1998, the peak power deficit in the are being evolved by the Kerala State Electricity Board State is as much as 1,600 MW.A uniqueness of the state and will have to be approved by the state electricity is that about 80 per cent of the demand is from the 90 regulatory commission. Jayaraju expressed confidence lakh-odd domestic consumers. However, most that the program would be brought in before 2014. consumers are affluent and would not mind putting up

solar plants on their roofs for the sake of energy security, he said.

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

Kerala plans 25,000-rooftop solar units program

“India sees energy goals set in UNSG's SE4All initiative, which could not be accepted by all parties as a package, as restricting its policy space and options. Particular it was finally decided to only "take note of the initiative reference is therefore, invited to the discussions held at without welcoming it or endorsing."Rio+20 conference last June, where IRENA was also present, and where the SE4all initiative was discussed in At Rio, member states did not come to an agreement on a great detail," the ambassador said. setting targets on energy access, energy efficiency and

renewable energy.According to him, since the initiative had elements in it,

34 35

Effective policies, selected and adapted to suit local In much of Europe, support schemes for renewables are conditions, are essential to increase the share of renewable subject to uncertainty because of public deficits, with energy in countries at every stage of economic Spain, Portugal, Latvia, Bulgaria and the Czech Republic development. Renewable energy deployment is all putting commitments to renewable energy on hold. Even increasingly cost competitive and is at the centre of global in difficult economic times, however, governments can efforts to reduce CO2 emissions and extend sustainable “invest scarce public funds… to create the enabling energy to everyone on the planet. 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 “For me, one of the most pleasantly surprising things about Policies” on 12 January in collaboration with the German this workshop was the convergence of views of all the Federal Ministry for the Environment, Nature participants, from different institutions, on what it will take Conservation and Nuclear Safety. The discussion took to upscale renewable energy,” he added. “And it isn't place ahead of the third Assembly of IRENA in Abu Dhabi, subsidies. It's to establish an enabling policy environment United Arab Emirates, a global gathering for policy 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.

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 discussions about how to double the share of renewables in and adjustment methodologies increase predictability. the global energy mix by 2030.Retro-active changes in policy, in particular, undermine investor confidence. Tariff levels should not be influenced Anywhere in the world, investment in renewable power by lobby groups but defined by panels of experts or in a generation depends on stable regulatory frameworks, competitive process, workshop participants said.transparent planning processes and clear procedures for

connection to the grid, workshop participants agreed.An IRENA policy expert, Dr.Rabia Ferroukhi, introduced and compared FITs, FIPs, and auctions how they work, However, there are no “one size fits all” support schemes. their benefits and drawbacks. By early 2012, more than 60 Policies including feed-in tariffs (FITs), auctions, and countries were using FITs or FIPs, compared to only 30 feed-in premiums (FIPs) need to be adapted to local countries in 2005, she noted. These schemes have become conditions and varying degrees of market maturity. Hybrid increasingly popular, especially in developing countries. approaches are becoming more common, particularly in One of IRENA's forthcoming reports, entitled, 'Assessment developing countries, and local communities must be of Renewable Energy Tariff-Based Support Mechanisms', consulted and included to maximise employment focuses on auctions schemes, presenting case studies from opportunities and local added value, which builds Brazil, China, France, Morocco, Peru and South Africa.confidence in renewables as the basis for a better future.

Although FITs and FIPs are still the most popular Investors, too, need to have confidence in the market, and mechanisms, the use of auctions is increasing worldwide, the creation of stable long-term policies is essential to the Dr. Ferroukhi said. Over time, FITs, FIPs and auctions have successful deployment of renewable energy in every undergone significant changes in the way they are market. Feed-in tariffs are the most widely used scheme designed, making all three systems more effective and and carry the lowest risk. Auctions although often seen as efficient, she added. “Each country has its unique policy unsuccessful in the previous decade are increasingly goals and capabilities.”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 Even as governments slash green subsidies, renewable high technology diversity, involve a broad spectrum of forms of energy are rapidly becoming cheaper than oil and investors, and are suitable for immature markets.gas in many markets.

Another session of the workshop highlighted support “Today, renewable energy is more cost-competitive than policies for wind energy based on research by IRENA, the fossil-based energy if you have the right policy Global Wind Energy Council (GWEC) and UNDP, while a framework,” said Yannick Glemarec, Director of third session focused on adapting renewable energy tariffs Environmental Finance at the United Nations Development to immature energy markets in developing countries.Programme (UNDP). “Renewables are the best way for

oil-importing countries to save money.”

Well-chosen tariff schemes can boost renewable energy scale-up

”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”

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. Pro-poor models usually require 'non-traditional' 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 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 The term 'energy delivery model' refers to the combination be defined with the end-users and reflect the development of technology, finance and management needed to supply benefits generated by energy access, such as improved energy to users. The delivery model can be designed as an health, education and livelihoods.enterprise, development project or a government program.

Innovations in energy delivery models can help to ensure Lack of knowledge and understanding of delivery the poor gain access to the benefits of modern energy models is a key obstacle to investment. A survey of services.entrepreneurs involved in energy delivery to the poor revealed a need for more systematic analysis of delivery Meeting the SE4ALL goals will involve enabling low-models, in order to provide investors, governments and income households to benefit from the use of goods, such donors with evidence of their impact, financial as efficient cookstoves or solar lamps. Combining sustainability and potential return on investment.affordability with quality, while ensuring the design is both

useful and culturally acceptable to users, are challenges Business analysis tools, such as Osterwalder's 'business that have been tackled by the designers of cookstoves such model canvas', can be applied to in-depth case studies to as the Anagi cookstove in Sri Lanka and solar product highlight pro-poor innovations within a delivery model. companies working in Africa, such as Tough Stuff and Combining this with established tools such as Practical d.light. Innovative pay-as-you-go payment systems have Action's 'market mapping' methodology allows for analysis been developed by Eight19, Village Infrastructure and within a specific context. This approach highlights the others.risks of replicating 'successful' delivery models when contextual factors are uncertain or inappropriate to a given Development benefits can be achieved by enabling small-model. Interventions that target vulnerable groups are often scale entrepreneurs to provide distribution services for more sensitive to these factors and models require solar products or stoves to the most outlying regions. appropriate tailoring. By exploring how energy delivery Franchise models, such as SolarAid's SunnyMoney, are models can benefit the poor, we can inform efforts to another option for local entrepreneurs. Co-operative ensure that energy access interventions contribute to the models can be effective in certain contexts, for example the SE4ALL goals and deliver lasting development impacts.hydro-power systems installed by United Nations

Sustainable energy for all? Energy delivery models involving the private sectorBy Emma Wilson and Ben Garside, International Institute for Environment and Development

36 37

Effective policies, selected and adapted to suit local In much of Europe, support schemes for renewables are conditions, are essential to increase the share of renewable subject to uncertainty because of public deficits, with energy in countries at every stage of economic Spain, Portugal, Latvia, Bulgaria and the Czech Republic development. Renewable energy deployment is all putting commitments to renewable energy on hold. Even increasingly cost competitive and is at the centre of global in difficult economic times, however, governments can efforts to reduce CO2 emissions and extend sustainable “invest scarce public funds… to create the enabling energy to everyone on the planet. 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 “For me, one of the most pleasantly surprising things about Policies” on 12 January in collaboration with the German this workshop was the convergence of views of all the Federal Ministry for the Environment, Nature participants, from different institutions, on what it will take Conservation and Nuclear Safety. The discussion took to upscale renewable energy,” he added. “And it isn't place ahead of the third Assembly of IRENA in Abu Dhabi, subsidies. It's to establish an enabling policy environment United Arab Emirates, a global gathering for policy 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.

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 discussions about how to double the share of renewables in and adjustment methodologies increase predictability. the global energy mix by 2030.Retro-active changes in policy, in particular, undermine investor confidence. Tariff levels should not be influenced Anywhere in the world, investment in renewable power by lobby groups but defined by panels of experts or in a generation depends on stable regulatory frameworks, competitive process, workshop participants said.transparent planning processes and clear procedures for

connection to the grid, workshop participants agreed.An IRENA policy expert, Dr.Rabia Ferroukhi, introduced and compared FITs, FIPs, and auctions how they work, However, there are no “one size fits all” support schemes. their benefits and drawbacks. By early 2012, more than 60 Policies including feed-in tariffs (FITs), auctions, and countries were using FITs or FIPs, compared to only 30 feed-in premiums (FIPs) need to be adapted to local countries in 2005, she noted. These schemes have become conditions and varying degrees of market maturity. Hybrid increasingly popular, especially in developing countries. approaches are becoming more common, particularly in One of IRENA's forthcoming reports, entitled, 'Assessment developing countries, and local communities must be of Renewable Energy Tariff-Based Support Mechanisms', consulted and included to maximise employment focuses on auctions schemes, presenting case studies from opportunities and local added value, which builds Brazil, China, France, Morocco, Peru and South Africa.confidence in renewables as the basis for a better future.

Although FITs and FIPs are still the most popular Investors, too, need to have confidence in the market, and mechanisms, the use of auctions is increasing worldwide, the creation of stable long-term policies is essential to the Dr. Ferroukhi said. Over time, FITs, FIPs and auctions have successful deployment of renewable energy in every undergone significant changes in the way they are market. Feed-in tariffs are the most widely used scheme designed, making all three systems more effective and and carry the lowest risk. Auctions although often seen as efficient, she added. “Each country has its unique policy unsuccessful in the previous decade are increasingly goals and capabilities.”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 Even as governments slash green subsidies, renewable high technology diversity, involve a broad spectrum of forms of energy are rapidly becoming cheaper than oil and investors, and are suitable for immature markets.gas in many markets.

Another session of the workshop highlighted support “Today, renewable energy is more cost-competitive than policies for wind energy based on research by IRENA, the fossil-based energy if you have the right policy Global Wind Energy Council (GWEC) and UNDP, while a framework,” said Yannick Glemarec, Director of third session focused on adapting renewable energy tariffs Environmental Finance at the United Nations Development to immature energy markets in developing countries.Programme (UNDP). “Renewables are the best way for

oil-importing countries to save money.”

Well-chosen tariff schemes can boost renewable energy scale-up

”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”

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. Pro-poor models usually require 'non-traditional' 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 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 The term 'energy delivery model' refers to the combination be defined with the end-users and reflect the development of technology, finance and management needed to supply benefits generated by energy access, such as improved energy to users. The delivery model can be designed as an health, education and livelihoods.enterprise, development project or a government program.

Innovations in energy delivery models can help to ensure Lack of knowledge and understanding of delivery the poor gain access to the benefits of modern energy models is a key obstacle to investment. A survey of services.entrepreneurs involved in energy delivery to the poor revealed a need for more systematic analysis of delivery Meeting the SE4ALL goals will involve enabling low-models, in order to provide investors, governments and income households to benefit from the use of goods, such donors with evidence of their impact, financial as efficient cookstoves or solar lamps. Combining sustainability and potential return on investment.affordability with quality, while ensuring the design is both

useful and culturally acceptable to users, are challenges Business analysis tools, such as Osterwalder's 'business that have been tackled by the designers of cookstoves such model canvas', can be applied to in-depth case studies to as the Anagi cookstove in Sri Lanka and solar product highlight pro-poor innovations within a delivery model. companies working in Africa, such as Tough Stuff and Combining this with established tools such as Practical d.light. Innovative pay-as-you-go payment systems have Action's 'market mapping' methodology allows for analysis been developed by Eight19, Village Infrastructure and within a specific context. This approach highlights the others.risks of replicating 'successful' delivery models when contextual factors are uncertain or inappropriate to a given Development benefits can be achieved by enabling small-model. Interventions that target vulnerable groups are often scale entrepreneurs to provide distribution services for more sensitive to these factors and models require solar products or stoves to the most outlying regions. appropriate tailoring. By exploring how energy delivery Franchise models, such as SolarAid's SunnyMoney, are models can benefit the poor, we can inform efforts to another option for local entrepreneurs. Co-operative ensure that energy access interventions contribute to the models can be effective in certain contexts, for example the SE4ALL goals and deliver lasting development impacts.hydro-power systems installed by United Nations

Sustainable energy for all? Energy delivery models involving the private sectorBy Emma Wilson and Ben Garside, International Institute for Environment and Development

36 37

“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”

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

The traditional energy solution has relied on fossil fuels, worldwide. REFiTs encourage investment in renewable yet not only are they becoming unaffordable, but their energy generation from individual home owners and historic consumption by rich, industrialised nations is communities to big companies by guaranteeing to buy and driving dangerous climate change. On the continent that pay for all the electricity produced. As of 2012, 65 has done least to cause it, the effects are already evident, countries have implemented some form of a REFiT, increasing the frequency and severity of floods and driving 64% of global wind installations and 87% of global droughts and impacting people's livelihoods. This has also photovoltaic (solar) installed capacity. While the majority undermined the generation capacity of one of the of these installations have occurred in industrialised continent's major energy sources hydropower, which has countries, particularly Europe, the African continent has also come under pressure because of its negative impacts significant untapped renewable energy potential.on people and ecosystems.

REFiTs have the potential to transform energy systems and In finding a sustainable, affordable and reliable energy societies in profound and tangible ways. When tailored to

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

the local context, they can successfully increase overall areas. Community-scale mini-grids can provide all the energy production both on and off the grid, boost benefits of the grid while encouraging greater levels of economic development and improve access to clean democratic control and ownership over local energy energy for all while avoiding the emission of green systems.house gases and other problems related to dirty

From the experiences of these countries, it is possible to development. Moreover, the decentralised approach of draw several broad lessons for countries interested in REFiTs allows for alternative ownership and governance developing their own REFiT. In order to build models and provides the opportunity to empower momentum for a REFiT policy, it is important to have communities as well as refreshing local democracy and high-level political support as well as buy-in from all self-governance.other stakeholders. South-South learning exchanges

Several African countries have already introduced the involving ministries, utilities, regulators, financiers, policy, including Algeria, Kenya, Mauritius, Rwanda, project developers and community representatives have South Africa (which abandoned its REFiT in favour of a been a successful tool in this context.bidding process), Tanzania, and Uganda. Many more are

Broad coalitions involving civil society in addition to either developing their REFiT or planning to, such as policy makers and private sector representatives have Botswana, Egypt, Ethiopia, Ghana, Namibia, and proven successful in designing and implementing REFiT Nigeria. Challenges being addressed vary from country policies that are resilient to changes in the political to country, as although they hail from the same landscape.The success of a REFIT depends on an continent, there is a great deal of difference between enabling environment. The policy should thus be an them.integral part of the country's wider development strategy.

These countries include a small-island state dependent Awareness raising about renewable technologies in on fuel imports (Mauritius), the continent's biggest general and REFiTs in particular will help overcome carbon polluter who is facing international pressure to skepticism. Moreover, a specific program to build reduce its emissions (South Africa), countries with less technical capacity of local companies should be than 3% rural electrification (Tanzania), and others with implemented. A strong national value chain avoids almost universal access to electricity (Algeria, Egypt). expensive imports and provides economic benefits This means each country has had different motivations beyond the renewable energy sector.for introducing a REFiT, and is experiencing distinct

REFiTs are more than just guaranteed payments for outcomes.renewable energies. They can promote rural

Many of the aforementioned countries face the challenge electrification, increase overall generation capacity, of low levels of electrification and dispersed rural provide greater grid stability or aim to promote inclusive populations. While this is problematic for traditional economic and social development. These objectives are REFiTs designs, which presuppose a well-developed of course not mutually exclusive, but policymakers will national grid, Tanzania has shown that REFiTs can also have to decide on where their priorities lie and design the serve decentralised mini-grids. More than just providing REFiT policy accordingly. Nevertheless, it is clear that clean and environmentally friendly energy, such policies REFiTs - whatever their particular design - will be also support wider socio-economic development in rural integral to Africa's transition to renewable energy.

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.”

38 39

“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”

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

The traditional energy solution has relied on fossil fuels, worldwide. REFiTs encourage investment in renewable yet not only are they becoming unaffordable, but their energy generation from individual home owners and historic consumption by rich, industrialised nations is communities to big companies by guaranteeing to buy and driving dangerous climate change. On the continent that pay for all the electricity produced. As of 2012, 65 has done least to cause it, the effects are already evident, countries have implemented some form of a REFiT, increasing the frequency and severity of floods and driving 64% of global wind installations and 87% of global droughts and impacting people's livelihoods. This has also photovoltaic (solar) installed capacity. While the majority undermined the generation capacity of one of the of these installations have occurred in industrialised continent's major energy sources hydropower, which has countries, particularly Europe, the African continent has also come under pressure because of its negative impacts significant untapped renewable energy potential.on people and ecosystems.

REFiTs have the potential to transform energy systems and In finding a sustainable, affordable and reliable energy societies in profound and tangible ways. When tailored to

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

the local context, they can successfully increase overall areas. Community-scale mini-grids can provide all the energy production both on and off the grid, boost benefits of the grid while encouraging greater levels of economic development and improve access to clean democratic control and ownership over local energy energy for all while avoiding the emission of green systems.house gases and other problems related to dirty

From the experiences of these countries, it is possible to development. Moreover, the decentralised approach of draw several broad lessons for countries interested in REFiTs allows for alternative ownership and governance developing their own REFiT. In order to build models and provides the opportunity to empower momentum for a REFiT policy, it is important to have communities as well as refreshing local democracy and high-level political support as well as buy-in from all self-governance.other stakeholders. South-South learning exchanges

Several African countries have already introduced the involving ministries, utilities, regulators, financiers, policy, including Algeria, Kenya, Mauritius, Rwanda, project developers and community representatives have South Africa (which abandoned its REFiT in favour of a been a successful tool in this context.bidding process), Tanzania, and Uganda. Many more are

Broad coalitions involving civil society in addition to either developing their REFiT or planning to, such as policy makers and private sector representatives have Botswana, Egypt, Ethiopia, Ghana, Namibia, and proven successful in designing and implementing REFiT Nigeria. Challenges being addressed vary from country policies that are resilient to changes in the political to country, as although they hail from the same landscape.The success of a REFIT depends on an continent, there is a great deal of difference between enabling environment. The policy should thus be an them.integral part of the country's wider development strategy.

These countries include a small-island state dependent Awareness raising about renewable technologies in on fuel imports (Mauritius), the continent's biggest general and REFiTs in particular will help overcome carbon polluter who is facing international pressure to skepticism. Moreover, a specific program to build reduce its emissions (South Africa), countries with less technical capacity of local companies should be than 3% rural electrification (Tanzania), and others with implemented. A strong national value chain avoids almost universal access to electricity (Algeria, Egypt). expensive imports and provides economic benefits This means each country has had different motivations beyond the renewable energy sector.for introducing a REFiT, and is experiencing distinct

REFiTs are more than just guaranteed payments for outcomes.renewable energies. They can promote rural

Many of the aforementioned countries face the challenge electrification, increase overall generation capacity, of low levels of electrification and dispersed rural provide greater grid stability or aim to promote inclusive populations. While this is problematic for traditional economic and social development. These objectives are REFiTs designs, which presuppose a well-developed of course not mutually exclusive, but policymakers will national grid, Tanzania has shown that REFiTs can also have to decide on where their priorities lie and design the serve decentralised mini-grids. More than just providing REFiT policy accordingly. Nevertheless, it is clear that clean and environmentally friendly energy, such policies REFiTs - whatever their particular design - will be also support wider socio-economic development in rural integral to Africa's transition to renewable energy.

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.”

38 39

“Ripasso Energy, a solar technology provider based in Sweden, has demonstrated a new solar-to-grid-quality-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.”

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

The Ripasso Energy Stirling Dish technology is efficiency record from an installation in United States. especially suited for arid and hot climate in the “sun Ripasso has further developed and commercialized the Dish-belt” when one third of the solar energy directly is Stirling concept to a cost efficient and modularized system converted to three-phase electricity through a heat engine with automatic sun tracking modules operating independently driving a rotating generator and without any need for and generating 2x30 kW three phase AC power each. These water cooling. Earlier tests and reports from U.S. DoE, modules are not depending on large centralized turbines but IRENA, ESTRELA, IEA and others have pointed out the can individually generate electricity from the start and then many advantages for Stirling dish technology. However gradually be combined to larger CSP power plants from this has not been fully demonstrated for commercial hundreds of kW for local and industrial use to hundreds of operation until now. MW utility scale plants for grid connections.

The large engine size of 30 MW, professional automotive From submarines and also from CSP demonstration sites in production and very accurate solar tracking provides cost USA, Ripasso acquired the license from Kockums and efficient and robust CSP technology and an important entered other strategic partnerships in order to further step towards a clean energy sustainable future”, says develop the Dish-Stirling concept. Since 2011 the Ripasso Gunnar Larsson, Managing Director for Ripasso Energy. CSP design has been tested in the factory in Sweden and in The Ripasso Energy solution is modularized without any Antalya, Turkey. The first commercial power plant is now need for central turbines or DC/AC converters allowing being built for the South African company, GHG Reductions step-by-step implementation with generation starting in Upington, RSA where the solar radiation gives DNI levels from the first units in service. Low environmental impact which are among the highest in the world (2800 to 3000 in combination with low Levelized Cost Of Energy kWh/m2 and year). And generating a new world record! (LCOE) offers a new “Fast-track” path for solar based Ripasso Energy is located in Malmö, Sweden, near Kockums world future energy in “the sun belt. and close to a highly experienced supply chain originating

from the automotive and telecom industry. This ensures The solar conditions in parts of MENA, South Africa and efficient and high quality production for the key components. Chile indicates that it is possible to obtain LCOE levels Ripasso Energy is now actively looking for local partners and of less than 0.1 Euro per KWh for a 30 MW plant and suppliers around the world in order to further customize CSP even lower for larger plants where 0.05 Euro per kWh is solutions to meet each market demand.

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

“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.

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

"The opportunities for the global, low-carbon economy geothermal technology.are huge and growing at an exponential rate," he said in a statement. "Clean energy and a range of resource

Ban, in his statement, said his sustainable energy efficient projects can expect growing interest in initiative aims to encourage governments, the public and attracting investment as new financial participants crowd the private sector to get behind the low-carbon into this fast developing market.”transformation under way across the globe.

The conference began with the third session of the "Sustainable energy is essential to achieving sustainable International Renewable Energy Agency's General development, the overarching priority of the United Assembly. IRENA aims to promote widespread and Nations," he said. increased use of clean energy resources from

hydropower to geothermal technology.Ban's so-called sustainable energy for all initiative aims to provide universal energy access, double energy Sultan Ahmed al-Jaber, the Emirati special envoy for efficiency rates and double the share of renewable energy and climate change, said evolving climate trends energy in the global energy sector by 2030. 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 In November, the U.N. World Meteorological renewable energy projects that showcase the economic Organization stated there was a 29% increase in the returns, and environmental benefits, of addressing these 1990-2010 period in the warming effect of greenhouse pressing issues," he said in a statement.gas emissions. WMO notes this is the highest increase in

the industrial age, which began more than 260 years

Conference equates climate with growth

U.N. sees global role for renewable energy

40 41

“Ripasso Energy, a solar technology provider based in Sweden, has demonstrated a new solar-to-grid-quality-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.”

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

The Ripasso Energy Stirling Dish technology is efficiency record from an installation in United States. especially suited for arid and hot climate in the “sun Ripasso has further developed and commercialized the Dish-belt” when one third of the solar energy directly is Stirling concept to a cost efficient and modularized system converted to three-phase electricity through a heat engine with automatic sun tracking modules operating independently driving a rotating generator and without any need for and generating 2x30 kW three phase AC power each. These water cooling. Earlier tests and reports from U.S. DoE, modules are not depending on large centralized turbines but IRENA, ESTRELA, IEA and others have pointed out the can individually generate electricity from the start and then many advantages for Stirling dish technology. However gradually be combined to larger CSP power plants from this has not been fully demonstrated for commercial hundreds of kW for local and industrial use to hundreds of operation until now. MW utility scale plants for grid connections.

The large engine size of 30 MW, professional automotive From submarines and also from CSP demonstration sites in production and very accurate solar tracking provides cost USA, Ripasso acquired the license from Kockums and efficient and robust CSP technology and an important entered other strategic partnerships in order to further step towards a clean energy sustainable future”, says develop the Dish-Stirling concept. Since 2011 the Ripasso Gunnar Larsson, Managing Director for Ripasso Energy. CSP design has been tested in the factory in Sweden and in The Ripasso Energy solution is modularized without any Antalya, Turkey. The first commercial power plant is now need for central turbines or DC/AC converters allowing being built for the South African company, GHG Reductions step-by-step implementation with generation starting in Upington, RSA where the solar radiation gives DNI levels from the first units in service. Low environmental impact which are among the highest in the world (2800 to 3000 in combination with low Levelized Cost Of Energy kWh/m2 and year). And generating a new world record! (LCOE) offers a new “Fast-track” path for solar based Ripasso Energy is located in Malmö, Sweden, near Kockums world future energy in “the sun belt. and close to a highly experienced supply chain originating

from the automotive and telecom industry. This ensures The solar conditions in parts of MENA, South Africa and efficient and high quality production for the key components. Chile indicates that it is possible to obtain LCOE levels Ripasso Energy is now actively looking for local partners and of less than 0.1 Euro per KWh for a 30 MW plant and suppliers around the world in order to further customize CSP even lower for larger plants where 0.05 Euro per kWh is solutions to meet each market demand.

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

“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.

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

"The opportunities for the global, low-carbon economy geothermal technology.are huge and growing at an exponential rate," he said in a statement. "Clean energy and a range of resource

Ban, in his statement, said his sustainable energy efficient projects can expect growing interest in initiative aims to encourage governments, the public and attracting investment as new financial participants crowd the private sector to get behind the low-carbon into this fast developing market.”transformation under way across the globe.

The conference began with the third session of the "Sustainable energy is essential to achieving sustainable International Renewable Energy Agency's General development, the overarching priority of the United Assembly. IRENA aims to promote widespread and Nations," he said. increased use of clean energy resources from

hydropower to geothermal technology.Ban's so-called sustainable energy for all initiative aims to provide universal energy access, double energy Sultan Ahmed al-Jaber, the Emirati special envoy for efficiency rates and double the share of renewable energy and climate change, said evolving climate trends energy in the global energy sector by 2030. 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 In November, the U.N. World Meteorological renewable energy projects that showcase the economic Organization stated there was a 29% increase in the returns, and environmental benefits, of addressing these 1990-2010 period in the warming effect of greenhouse pressing issues," he said in a statement.gas emissions. WMO notes this is the highest increase in

the industrial age, which began more than 260 years

Conference equates climate with growth

U.N. sees global role for renewable energy

40 41

controlled by the California Independent The report found that CSP with a System Operator. A report on the value that six-hour storage capacity can lower CSP with thermal storage adds to the peak net loads when the sun isn't California system is expected early next shining, enough to add $35.80 per year. The Colorado study marks one of the megawatt hour to the capacity and first times that the operational and capacity operational value of the utility, value of CSP with thermal storage has been compared to photovoltaic (PV) solar evaluated using a production cost model, a power alone, and even higher extra traditional utility planning tool. value when compared to CSP

without storage. The net load is the The NREL authors employed Energy normal load minus variable Exemplar's PLEXOS simulation model that renewables such as photovoltaic and allowed them to isolate the relative value of wind. thermal energy storage (TES) with and without storage. CSP with TES, with an The additional value comes because ability to store thermal energy in, say, thermal storage allows CSP to molten salt, can use its heat-energy to drive displace more expensive gas-fired

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.

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

Also, CSP with TES can lower peak net loads in the value would come in a scenario in which there is evenings when electricity use can still be high, but PV relatively high penetration of renewables into the isn't available. So, it helps utilities offset the need to utility's mix, about 34%. If the penetration was lower, build new gas-fired generators in order to meet the the extra value would be lessened. electricity demand when the sun goes down. "CSP with thermal storage can continually reduce that peak demand The authors simulated grid operations in two balancing as the peak moves into the evening," Hummon said. "It areas primarily in Colorado. NREL is also using the continually maintains a high operational value and high same methodology it developed for the Colorado capacity value." scenario for the more complex California system

“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"

Concentrated solar power with thermal energy storage can help Utilities

“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 photovoltaic industry is in the midst of wrenching United States and India. This cycle of sanction and retaliation changebuffeted by government incentive cuts and nose- will not help solve the fundamental challenge of overcapacity diving prices that has hurt solar suppliers worldwide, plaguing the global PV industry.rocked by trade disputes among its major players, and hamstrung by a sputtering global economy,” said Ash South Africa and Romania will emerge as PV markets to watch Sharma, director, solar research at IHS. “However, there in 2013. The two countries next year will expand from virtually are some bright spots ahead: Solar installations are on the no solar installations to capacity of several hundred megawatts. rise, technology is becoming more efficient, and a weak The PV uptake in both markets is driven by distinct factors. In EU market roiled by financial turmoil will be offset by an South Africa, PV additions will mainly stem from the tenders ascendant China and the United States.” awarded in 2012; in Romania, the growth driver will be a green

certificate (GC) scheme that will stay in place until 2014.Below are the top 10 predictions for 2013 from the IHS solar research team: Double-digit returns remain possible for European PV projects

in 2013. With the subsidy schemes that are currently in place, all The global PV market will achieve double-digit EU countries continue to offer attractive conditions for both installation growth in 2013, but market revenue will fall to private and institutional investors. Meanwhile, an evaluation of $75 billion. no-incentive scenarios shows that the most mature market

segments are on the cusp of grid parity, allowing healthy returns on investment.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 Solar will surpass wind in the United States. The year 2013 below. Revenue is projected to decline once again in 2013 marks an important milestone, representing the first time that to $75 billion, on the back of lower volume growth and new U.S. solar PV capacity additions will be greater than those continued system price declines, given that PV component made by wind. This is partly a result of the near-term uncertainty prices continue to fall. 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.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 China will become the world's largest PV market. Total PV from more than 750 companies in 2010. Most of the installations in China next year are predicted to surpass 6 consolidation will involve companies going out of gigawatts, allowing the country to surpass Germany as the No. 1 business entirely. Many integrated players, particularly solar market on the planet.those based in China, will fold up shop in 2013. The large expense of building and then operating integrated facilities Energy storage will transform the solar industry. Batteries that are underutilized will be more than many can handle increasingly are being seen as an attractive way of retaining PV financially. electricity, letting people use the power later in the day to avoid

paying high prices for electricity from the grid. Next year IHS PV module prices will stabilize in 2H 2013 as oversupply forecasts a big jump in the number of residential PV systems eases. Despite a drastic decline in prices along the silicon installed with batteries attached.supply chain since March 2011, solar prices will stabilize by mid-2013. Changes in market dynamics will help New technology will revive equipment vendors' prospects. restore the global supply-demand balance. Improved technologies will help PV manufacturers cut costs,

increase margins and ultimately distinguish themselves from the Solar trade wars will rage on in 2013, yielding few competition. Such a focus creates an opportunity for both winners. As of November 2012, there were six different manufacturers and equipment suppliers to obtain larger revenue solar trade cases proceeding involving China, Europe, the streams.

Top-10 Solar Market Predictions For 2013

“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

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

The United Arab Emirates, Saudi Arabia, Jordan, Turkey, projected solar policies for each country analyzed. The report and Morocco, have ambitious solar power generation goals also provides strategic analysis and a competitive outlook on the as well as evolving policies and regulatory frameworks to companies active in each market. In addition, the report offers support these goals. Demonstration projects are being solar (PV and CSP) project details for each market along with deployed in some countries, while large scale projects are country-specific demand forecasts to 2017.being deployed in others. However, in a region undergoing

Middle East and North Africa (MENA) Solar Market Outlook, 2013-2017

42 43

controlled by the California Independent The report found that CSP with a System Operator. A report on the value that six-hour storage capacity can lower CSP with thermal storage adds to the peak net loads when the sun isn't California system is expected early next shining, enough to add $35.80 per year. The Colorado study marks one of the megawatt hour to the capacity and first times that the operational and capacity operational value of the utility, value of CSP with thermal storage has been compared to photovoltaic (PV) solar evaluated using a production cost model, a power alone, and even higher extra traditional utility planning tool. value when compared to CSP

without storage. The net load is the The NREL authors employed Energy normal load minus variable Exemplar's PLEXOS simulation model that renewables such as photovoltaic and allowed them to isolate the relative value of wind. thermal energy storage (TES) with and without storage. CSP with TES, with an The additional value comes because ability to store thermal energy in, say, thermal storage allows CSP to molten salt, can use its heat-energy to drive displace more expensive gas-fired

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.

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

Also, CSP with TES can lower peak net loads in the value would come in a scenario in which there is evenings when electricity use can still be high, but PV relatively high penetration of renewables into the isn't available. So, it helps utilities offset the need to utility's mix, about 34%. If the penetration was lower, build new gas-fired generators in order to meet the the extra value would be lessened. electricity demand when the sun goes down. "CSP with thermal storage can continually reduce that peak demand The authors simulated grid operations in two balancing as the peak moves into the evening," Hummon said. "It areas primarily in Colorado. NREL is also using the continually maintains a high operational value and high same methodology it developed for the Colorado capacity value." scenario for the more complex California system

“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"

Concentrated solar power with thermal energy storage can help Utilities

“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 photovoltaic industry is in the midst of wrenching United States and India. This cycle of sanction and retaliation changebuffeted by government incentive cuts and nose- will not help solve the fundamental challenge of overcapacity diving prices that has hurt solar suppliers worldwide, plaguing the global PV industry.rocked by trade disputes among its major players, and hamstrung by a sputtering global economy,” said Ash South Africa and Romania will emerge as PV markets to watch Sharma, director, solar research at IHS. “However, there in 2013. The two countries next year will expand from virtually are some bright spots ahead: Solar installations are on the no solar installations to capacity of several hundred megawatts. rise, technology is becoming more efficient, and a weak The PV uptake in both markets is driven by distinct factors. In EU market roiled by financial turmoil will be offset by an South Africa, PV additions will mainly stem from the tenders ascendant China and the United States.” awarded in 2012; in Romania, the growth driver will be a green

certificate (GC) scheme that will stay in place until 2014.Below are the top 10 predictions for 2013 from the IHS solar research team: Double-digit returns remain possible for European PV projects

in 2013. With the subsidy schemes that are currently in place, all The global PV market will achieve double-digit EU countries continue to offer attractive conditions for both installation growth in 2013, but market revenue will fall to private and institutional investors. Meanwhile, an evaluation of $75 billion. no-incentive scenarios shows that the most mature market

segments are on the cusp of grid parity, allowing healthy returns on investment.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 Solar will surpass wind in the United States. The year 2013 below. Revenue is projected to decline once again in 2013 marks an important milestone, representing the first time that to $75 billion, on the back of lower volume growth and new U.S. solar PV capacity additions will be greater than those continued system price declines, given that PV component made by wind. This is partly a result of the near-term uncertainty prices continue to fall. 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.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 China will become the world's largest PV market. Total PV from more than 750 companies in 2010. Most of the installations in China next year are predicted to surpass 6 consolidation will involve companies going out of gigawatts, allowing the country to surpass Germany as the No. 1 business entirely. Many integrated players, particularly solar market on the planet.those based in China, will fold up shop in 2013. The large expense of building and then operating integrated facilities Energy storage will transform the solar industry. Batteries that are underutilized will be more than many can handle increasingly are being seen as an attractive way of retaining PV financially. electricity, letting people use the power later in the day to avoid

paying high prices for electricity from the grid. Next year IHS PV module prices will stabilize in 2H 2013 as oversupply forecasts a big jump in the number of residential PV systems eases. Despite a drastic decline in prices along the silicon installed with batteries attached.supply chain since March 2011, solar prices will stabilize by mid-2013. Changes in market dynamics will help New technology will revive equipment vendors' prospects. restore the global supply-demand balance. Improved technologies will help PV manufacturers cut costs,

increase margins and ultimately distinguish themselves from the Solar trade wars will rage on in 2013, yielding few competition. Such a focus creates an opportunity for both winners. As of November 2012, there were six different manufacturers and equipment suppliers to obtain larger revenue solar trade cases proceeding involving China, Europe, the streams.

Top-10 Solar Market Predictions For 2013

“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

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

The United Arab Emirates, Saudi Arabia, Jordan, Turkey, projected solar policies for each country analyzed. The report and Morocco, have ambitious solar power generation goals also provides strategic analysis and a competitive outlook on the as well as evolving policies and regulatory frameworks to companies active in each market. In addition, the report offers support these goals. Demonstration projects are being solar (PV and CSP) project details for each market along with deployed in some countries, while large scale projects are country-specific demand forecasts to 2017.being deployed in others. However, in a region undergoing

Middle East and North Africa (MENA) Solar Market Outlook, 2013-2017

42 43

In 2009, Brazil established the commitment to, by 2020, people that, until the mid 2000s, had no access to reduce the emissions of CO2 from 36,1% to 38,9%, a education, medical assistance, jobs and credit; let alone mission that is not easy for a developing country with a computers, internet, microwaves, air conditioners and population of almost 200 million inhabitants and an ever others. Their lives changed. Today, the so called “C” class growing demand for energy. (low middle class) sets trends and revolutionizes from

eating habits to the country's musical taste, and it happens With the implementation of Real as the official currency from the North to the South of the “Tupiniquim Republic”. since 1994, the Brazilian population started to live in a But these changes in Brazilian society also brought on an stable economy, which was unprecedented until then. The increase in the demand for energy to sustain so many new middle class, as well as the offering of formal jobs, grew. It electronic devices in homes and in industries, and it is in brought along great expectations from a fraction of the this aspect that one identifies a gigantic gap in the

Brazil's Energy Matrix Some headaches in sight

By Gerda Häring

Brazil's Belo Monte Dam

Achievements

44 45

In 2009, Brazil established the commitment to, by 2020, people that, until the mid 2000s, had no access to reduce the emissions of CO2 from 36,1% to 38,9%, a education, medical assistance, jobs and credit; let alone mission that is not easy for a developing country with a computers, internet, microwaves, air conditioners and population of almost 200 million inhabitants and an ever others. Their lives changed. Today, the so called “C” class growing demand for energy. (low middle class) sets trends and revolutionizes from

eating habits to the country's musical taste, and it happens With the implementation of Real as the official currency from the North to the South of the “Tupiniquim Republic”. since 1994, the Brazilian population started to live in a But these changes in Brazilian society also brought on an stable economy, which was unprecedented until then. The increase in the demand for energy to sustain so many new middle class, as well as the offering of formal jobs, grew. It electronic devices in homes and in industries, and it is in brought along great expectations from a fraction of the this aspect that one identifies a gigantic gap in the

Brazil's Energy Matrix Some headaches in sight

By Gerda Häring

Brazil's Belo Monte Dam

Achievements

44 45

efficiency of basic services supply in the country. the big cities that consume energy. After the inauguration, it will be 700km from Belém, 756km from Manaus,

Problems are old. In 2001, during the administration of the 2.393km from Rio de Janeiro, 2.403 from São Paulo, President in charge then, Fernando Henrique Cardoso, 2.560km from Curitiba, 1.982km from Recife (the capital Brazilian citizens could already experience the results of of Pernambuco state) and 1.532km from the national lack of investments in the energy sector. The imposed capital, Brasília. rationing was considered again.

Energy transmission, the great villain of Brazilian The Brazilian government, engaged in fulfilling its energetic supply, will continue to be an issue and its loss, commitment of reducing CO2 emissions according to the the worst limitation. The biggest hindrance in supplying agreement made, encourages researches on green energy energy to the country today, as in the last decade, maybe sources, like biodiesel. Besides, now it gives more won't be the produced amounts of energy, but the difficulty emphasis to solar and wind power, but its greatest in distributing it. investment for the past five years is in what Brazil has considered to be a clean and profitable energy source, According to the Annual Energy Report of 2011, the whose technology has been dominated for years. supply of energy in Brazil was 272,3 Mtep and the actual

use was 228,7 Mtep. The loss, including the Therefore, Brazil hasn't seen any problems in starting to transformation, added up to 3,7% of what was offered. build the hydroelectric plant of Belo Monte, located in the These results awakened the international attention. The North, more specifically in the state of Pará. The place was State Grid Corporation, that is the national Chinese energy chosen because that is where Xingu river has a 96m fall, company, increased its investments in Brazil and finished technically known as the South Amazonian fall line. In this in January 2013 the purchase of seven assets of electric place, the river widens four times more, exhibiting islands energy transmission scattered over ten Brazilian states and waterfalls, that is, it is the ideal spot to build a (amounting up to 2.7929km of extension). Until now, these hydroelectric plant. The estimated potential for Belo Monte energy company assets belonged to the Spanish is 11.000MW, which means an average of 4.500MW every Actividades de Construcción, which sold them claiming year being injected in the Brazilian electric system. high levels of loss. Nevertheless, there are problems: the population that lives around the area where the hydroelectric plant will be built; The Chinese interest, as broadcasted by the Brazilian press, the Indian tribes; the families that live on the banks of arose because, like in Brazil, their energy source centers Xingu River and the inhabitants of cities like Altamira, and consumers are separated by long distances, which Vitória do Xingu and nine others that will see makes a link between the limitations of the two nations. approximately 25.953 Km2 of their territory deforested to Due to these restrictions, there may be an exchange of built the lake of the hydroelectric plant and its others technology, fostering more reciprocal investments.functional areas, which will total around 503 Km2. The deforestation, the environmental deterioration of the fauna Brazil has an environmental and ethnic battle ahead, for and flora and the disappearing of almost 50% of some most of the population affected by the construction of Belo towns are causing a major polemic and retaliations against Monte hydroelectric plant is made of Indian peoples who workers who are already found there. The construction demand their rights, alongside with those who live in river work has already been caveated and nearly everyday there banks and inhabitants of the eleven towns that will be are protests against it. Some personalities related to parties deforested or that will simply disappear from the map. It linked to the environmental cause have already stood cannot be disregarded that part of it is located in preserved against Belo Monte, and yet the construction works go on, areas. Though IBAMA has given Belo Monte the even though slowly due to contrary manifestations. necessary permits, it is sure that the first deadline to finish

the construction has been forgotten. 2019 is already Since its beginning, Belo Monte suffers with restrictions. conjectured to be the year for Belo Monte to, finally, send Its total capacity got diminished because of the need to its average 4,500MW to the National Interconnected correspond to the Brazilian environmental laws' demands; System (SIN). moreover, there is the distance between Belo Monte and

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.

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efficiency of basic services supply in the country. the big cities that consume energy. After the inauguration, it will be 700km from Belém, 756km from Manaus,

Problems are old. In 2001, during the administration of the 2.393km from Rio de Janeiro, 2.403 from São Paulo, President in charge then, Fernando Henrique Cardoso, 2.560km from Curitiba, 1.982km from Recife (the capital Brazilian citizens could already experience the results of of Pernambuco state) and 1.532km from the national lack of investments in the energy sector. The imposed capital, Brasília. rationing was considered again.

Energy transmission, the great villain of Brazilian The Brazilian government, engaged in fulfilling its energetic supply, will continue to be an issue and its loss, commitment of reducing CO2 emissions according to the the worst limitation. The biggest hindrance in supplying agreement made, encourages researches on green energy energy to the country today, as in the last decade, maybe sources, like biodiesel. Besides, now it gives more won't be the produced amounts of energy, but the difficulty emphasis to solar and wind power, but its greatest in distributing it. investment for the past five years is in what Brazil has considered to be a clean and profitable energy source, According to the Annual Energy Report of 2011, the whose technology has been dominated for years. supply of energy in Brazil was 272,3 Mtep and the actual

use was 228,7 Mtep. The loss, including the Therefore, Brazil hasn't seen any problems in starting to transformation, added up to 3,7% of what was offered. build the hydroelectric plant of Belo Monte, located in the These results awakened the international attention. The North, more specifically in the state of Pará. The place was State Grid Corporation, that is the national Chinese energy chosen because that is where Xingu river has a 96m fall, company, increased its investments in Brazil and finished technically known as the South Amazonian fall line. In this in January 2013 the purchase of seven assets of electric place, the river widens four times more, exhibiting islands energy transmission scattered over ten Brazilian states and waterfalls, that is, it is the ideal spot to build a (amounting up to 2.7929km of extension). Until now, these hydroelectric plant. The estimated potential for Belo Monte energy company assets belonged to the Spanish is 11.000MW, which means an average of 4.500MW every Actividades de Construcción, which sold them claiming year being injected in the Brazilian electric system. high levels of loss. Nevertheless, there are problems: the population that lives around the area where the hydroelectric plant will be built; The Chinese interest, as broadcasted by the Brazilian press, the Indian tribes; the families that live on the banks of arose because, like in Brazil, their energy source centers Xingu River and the inhabitants of cities like Altamira, and consumers are separated by long distances, which Vitória do Xingu and nine others that will see makes a link between the limitations of the two nations. approximately 25.953 Km2 of their territory deforested to Due to these restrictions, there may be an exchange of built the lake of the hydroelectric plant and its others technology, fostering more reciprocal investments.functional areas, which will total around 503 Km2. The deforestation, the environmental deterioration of the fauna Brazil has an environmental and ethnic battle ahead, for and flora and the disappearing of almost 50% of some most of the population affected by the construction of Belo towns are causing a major polemic and retaliations against Monte hydroelectric plant is made of Indian peoples who workers who are already found there. The construction demand their rights, alongside with those who live in river work has already been caveated and nearly everyday there banks and inhabitants of the eleven towns that will be are protests against it. Some personalities related to parties deforested or that will simply disappear from the map. It linked to the environmental cause have already stood cannot be disregarded that part of it is located in preserved against Belo Monte, and yet the construction works go on, areas. Though IBAMA has given Belo Monte the even though slowly due to contrary manifestations. necessary permits, it is sure that the first deadline to finish

the construction has been forgotten. 2019 is already Since its beginning, Belo Monte suffers with restrictions. conjectured to be the year for Belo Monte to, finally, send Its total capacity got diminished because of the need to its average 4,500MW to the National Interconnected correspond to the Brazilian environmental laws' demands; System (SIN). moreover, there is the distance between Belo Monte and

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.

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