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30 Appendix Government A Germany incentives and feed‐in tariffs Source: BSW‐Solar 2008 (www.solarwirtschaft.com ) Table 2 Germany‐Feed‐in Tariffs for Selected Power Generation Source 2002 2003 2004 Hydro (up to 500 kW) 7.67 7.67 7.67 Hydro (500 kW‐5 MW) 6.65 6.65 6.65 Landfill gas (up to 500kW) 7.67 7.67 7.67 Landfill gas (500 kW‐5 MW) 6.65 6.65 6.65 Biomass (up to 500 kW) 10.13 10.03 9.93 Biomass (500 kW‐5 MW) 9.11 9.02 8.93 Biomass (5 MW‐20 MW) 8.60 8.52 8.43 Geothermal (up to 20 MW) 8.95 8.95 8.95 Wind (onshore or offshore) 8.96 8.83 8.70

description

This study looks at one of the emerging energy alternatives, solar energy.The gap between demand and supply of energy is huge, specially in developing countries like china and India.Most part of Europe is dependent on Russian gas for its winter supply of energy. Solar energy is one of the alternatives for energy in these countries, as fuel ( sunlight) is free and non polluting. Here the focus is on three countries Germany, USA and India. The choice is based on the emergence of the different needs of these countries, which are in different stages of development of solar energy. This makes an interesting observance.

Transcript of Strategy challenges of Solar Energy Players-5

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AppendixGovernmentA

Germanyincentivesandfeed‐intariffs

Source:BSW‐Solar2008(www.solarwirtschaft.com)

Table2

Germany‐Feed‐inTariffsforSelectedPowerGeneration

Source 2002 2003 2004

Hydro(upto500kW) 7.67 7.67 7.67

Hydro(500kW‐5MW) 6.65 6.65 6.65

Landfillgas(upto500kW) 7.67 7.67 7.67

Landfillgas(500kW‐5MW) 6.65 6.65 6.65

Biomass(upto500kW) 10.13 10.03 9.93

Biomass(500kW‐5MW) 9.11 9.02 8.93

Biomass(5MW‐20MW) 8.60 8.52 8.43

Geothermal(upto20MW) 8.95 8.95 8.95

Wind(onshoreoroffshore) 8.96 8.83 8.70

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SolarPV(5MW) 48.09 45.68 43.40

AppendixGovernmentB

Majormarketinfluencescountrywise

Austria In 2000 a Solar Campaign started comparable to the 'Solar na klar- campaign in Germany. Based on the German experience, a further growth and development of the market is expected. Furthermore, the supply side of the market is becoming increasingly professional.

Belgium Since 1999, the regional and Federal governments and the utility sector have developed a number of positive initiatives. Ambitious goals are set and a number of tools to accomplish these goals are given (more or less in line with the ASTIG/DSMT-recommendations).

Denmark The Danish market has been stagnating for some years - mainly due to a doubtful approach of utility suppliers - after a successful period in the mid-nineties. New positive political initiatives are under development leading to a possible new impulse through solar-friendly regulations and stimulants. The supply has developed strongly, in particular specializing in large solar thermal plants.

Finland The market is expected to increase gradually due to expected increase in district heating applications.

France Positive effects are expected as a result of strong new incentive programs and through more 'open market policy' in the coming years. Further market 'increase is expected in combination with favourable climate conditions and stimulants through implementation of ASTIG/ DSMT recommendation

Germany There are strong indications that the present market growth figures will continue. Both the political as well as the strong industrial environment ( almost completely incorporated in the traditional heating industry ) are expected to maintain a stable condition for further growth. The high public awareness triggered by the 'Solar na klar!' campaign and positive job creation effects are in them- selves positive arguments and a stimulated political motive.

Greece A new National campaign is expected as a result of (re)newed commitment of the government with regard to stimulate the solar market. Publicity effects in conjunction with the upcoming Olympic- games in favour of a further solar market development. Furthermore stimulation is focussed on new application areas like cooling and partial obligation for commercial buildings.

Italy The Italian market continues to show strong development in the North. It is expected that this development will gradually move to more Southern Regions already in 2001/2002. There remains uncertainty on the development of incentive programmes.

The Netherlands

Strong political commitments for renewables in conjunction with various incentive programs and national solar campaign (starting 2001/2002) will be the basis for further market growth. Like in Germany the supply-side is strongly

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integrated in the existing heating industry.

Portugal There remains a political uncertainty on the introduction of incentives programs. In more general terms incentive programs are expected to be linked to Southern European initiatives.

Spain Growth finally started in 1999 - especially very successful in Andalucia. Incentive programs are developed further, including legislation and obligatory measures (Barcelona and others). Supply side and infrastructure is still to be developed (an open and harmonized market will generate extra stimulants) therefor the growth rate is tempered - but Spain is expected to be one of the fast developing markets in EU.

Sweden Market mainly focusing on large projects, incentive programs are considered and slowly started.

Switzerland Unfortunately the 'Campaign for Renewable Energy' in 09.2000 failed but in 2002 a new initiative to facilitate/stimulate solar with positive results is expected.

UK Still only very few concrete renewable initiatives (for heating) are considered. In general energy efficiency and renewables are starting to come on the political agenda.

Incentives,whichstimulatesolarthermalsystemsin11Europeancountries

Country Fiscal Measure Investment Subsidy

Regulation Organizational Measure

Others

Austria - Increased investment allowance

At regional, energy company and local level

- Self-construction groups - Free or cheap energy consult - Specific financing schemes

- Favourable financing, (project financing, favourable loans)

Germany - Eco-bonus for sustainable building - Increased investment allowance (eastern states)

At national, regional, energy company and local level

- Campaign - Specific financing schemes

- Favourable loans - Solarthermie 2000

The

Netherlands

- Favourable depreciation - Tax deduction - Green funds - Energy tax

At national, regional, energy companies and local level

- Energy performance in building regulation

- Exemption

- Campaign - Long term agreement - Specific financial schemes

- Project subsidies - Solar city award

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- Energy saving fund

from building permit

Switzerland - Tax exemption/reduction

At national, regional and local level

- Self-construction initiative - Central information point

- Energy 2000 - Solar award

Denmark - Energy tax - C02 tax

At national level Special regulation in case water heater is replaced

- Campaign - Danish Plan of Action for Solar Energy

- Solar Energy Plan of Action 1998-2000 - Energy 21

Belgium

- Increased investment allowance

- Tax exemption (from advance levy on immovables)

At national, regional, energy company and local level

- Agreement in principle on exemption from building permit

- Promotion and information campaign of Flemish authorities

- Subsidy for bottom-up initiatives

France - Tax reduction - Reduced VAT

At national level and regional level

Spain At regional level

- Obligation in Barcelona

- Favourable financing

Portugal - Tax deduction - Reduced VAT - Favourable depreciation

At national level

- Favourable financing, (project subsidy, favourable loans)

Sweden - Energy tax - CO2 tax

At national and regional level

- RD&D program

United Kingdom

At local level

- Solar Clubs project

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AppendixGovernmentC

AmericanSolarIncentives

Americanincentiveprogramsareincreasing.Recentintroductionof10millionSolarroofsby2018,introducedbyMr.SandersandCalifornia'sMillionSolarRoofsinitiative(2005).Recentlyabanusinglandforsolarpowergenerationwastakenbackwithintwodaysduetomassiveopposition,whichindicatespublicinvolvementandsupportforsolarprogramsinUSA,speciallyinfaceofrisingoilcosts.

CorporateDepreciation: ModifiedAcceleratedCost‐RecoverySystem(MACRS)

CorporateExemption: ResidentialEnergyConservationSubsidyExclusion(Corporate)

CorporateTaxCredit: RenewableElectricityProductionTaxCreditSolarandGeothermalBusinessEnergyTaxCredit

FederalGrantProgram: RenewableEnergySystemsandEnergyEfficiencyImprovementsProgramTribalEnergyProgramGrantValue‐AddedProducerGrantProgram

FederalLoanProgram EnergyEfficientMortgage(EEM)EnergyStarFinancingandMortgagesTax‐exemptFinancingforGreenBuildings,RenewableEnergy&BrownfieldRedevelopment

PersonalExemption: ResidentialEnergyConservationSubsidyExclusion(Personal)

ProductionIncentive: ConservationSecurityProgram(CSP)ProductionIncentiveRenewableEnergyProductionIncentive(REPI)

GreenPowerPurchasing/Aggregation: FederalGovernment‐GreenPowerPurchasingGoal

AlternativeFuelVehicleIncentivesandPolicies:

U.S.DepartmentofEnergy'sCleanCitiesProgram

Source:www.dsireusa.org

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AppendixGovernmentDIndiaSolarProgramandNAPCC

India’sNationalActionPlanonClimateChange(NAPCC)setsouteightfocalpointsforthegovernment’ssustainabledevelopmentstrategythrough2017.TheNAPCCislikelytobecomeasignificantdriverofnewinvestmentopportunitiesinthecountry’srenewableenergyportfolio,andinsolargenerationinparticular.

Astheworld’ssecondmostpopulouscountryandsecondlargestgrowingeconomy,Indiahasuniquechallengesindevelopinganenergysupplyadequatetomeetthecountry’sdevelopmentneeds,includingprovidingelectricitytothe44%ofitspopulationwithoutgridaccess.

Solarpowerconstitutesroughly2MWofthetotalapproximate12,400MWofIndia’sgrid‐interactiverenewablepower,sourcedbyatotalof33grid‐interactivesolarphotovoltaicplantsinstalledwithfinancialassistancefromtheenvironmentministry.DecentralizedsolarenergysystemscomposethelargershareofIndia’ssolarpowerandconsistof120MWofphotovoltaicsystems,acollectorareaofabout2.30millionsquaremetersofsolarwaterheatingsystemsand620,000solarcookers,usedfordiverseapplicationsincludinglighting,telecommunication,smallpowerrequirements,batterycharging,waterheating,andcooking.

Existingincentivesforrenewableenergydeploymentincludeasystemofrenewablepurchaseobligations(RPOs)(similartorenewableportfoliostandards(RPS)intheU.S.),andvariousfundingforrural,urban,andindustrialusesofrenewableelectricity.

TheNAPCCseekstoconsolidateIndia’sactivitiesonrenewableenergyandclimate,throughimprovedresearchanddevelopmentonclimatetechnologiesandthroughprioritizingasubstantialincreaseinsolarenergyrelativetothetotalenergymix.TheNAPCClaunchestheNationalSolarMission(NSM),whichmustpresentacomprehensiveplanningdocumenttothePrimeMinister’sCouncilonClimateChangebyDecember2008,includingstrategiesfordelivering:

• Sufficientsolarenergyin“urbanareas,industries,andcommercialestablishments”tomeetthetargetsdefinedintheNAPCC;

• Public‐privatepartnershipsforruralsolarthermalapplicationdevelopment;• Localsolarphotovoltaicproductionof1000MW/yearby2017;and• Concentratingsolarpowerproductionof1000MW/yearby2017;

TheNAPCCadditionallyproposesadynamicminimumrenewablepurchasestandard,beginningat5%ofthetotalgridpurchasestarting2009‐2010,increasingby1%eachyearfor10years,alongwithverificationmechanismsandtradablecertificatesforrenewable‐basedpowerinexcessofthenationalstandard,tradableamongStateElectricity

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http://climateintel.com/2008/07/22/solar‐energy‐in‐india‐the‐national‐action‐plan/