Billions of Dollars to Advance Renewable Energy Economies
Billions of Dollars to Advance Renewable Energy Economies
A shift to a low-carbon economy based largely on Renewable Energy will require additional policies to attract significant increases in investment in technologies and infrastructure, says the United Nations’ Intergovernmental Panel on Climate Change (IPCC), providing four illustrative scenarios which estimate global investments ranging from $1.36 to $5.10 billion for 2011-20, and from $1.49 to $7.18 billion for the decade 2021-30. Denmark earns the biggest share of its national revenue from producing windmills and other clean technologies, the US is rapidly expanding its clean-tech sector, but no country can match China’s pace of green technology growth of 77% a year, according to a new report commissioned by the World Wildlife Fund for Nature.
By Arthur Max for AP (8 May 2011):
DENMARK earns the biggest share of its national revenue from producing windmills and other clean technologies, the US is rapidly expanding its clean-tech sector, but no country can match China’s pace of growth, according to a new report.
China’s production of green technologies has grown by a remarkable 77 per cent a year, according to the report, which was commissioned by the World Wildlife Fund for Nature and which will be unveiled tomorrow at an industry conference in Amsterdam.
“The Chinese have made, on the political level, a conscious decision to capture this market and to develop this market aggressively,” said Donald Pols, an economist with the WWF.
Denmark, a longtime leader in wind energy, derives 3.1 per cent of its gross domestic product from renewable energy technology and energy efficiency, or about 6.5 billion euros ($9 billion), said the report obtained by The Associated Press.
China is the largest producer in money terms, earning more than 44 billion euros ($60 billion), or 1.4 per cent of its gross domestic product.
The US ranks 17 in the production of clean technologies with 0.3 per cent of GDP, or 31.5 billion euros ($43 billion), but those industries have been expanding at a rate of 28 per cent per year since 2008.
“The US is growing substantially, so it seems the policy of (President Barack) Obama is working,” Pols said. But the US cannot compare with China, he said.
“When you speak to the Chinese, climate change is not an ideological issue. It’s just a fact of life. While we debate climate change and the transition to a low carbon economy, the debate is passed in China,” Pols said. “For them it’s implementation. It’s a growth sector, and they want to capture this sector.”
The report was prepared by Roland Berger Strategy Consultants, a global firm based in Germany. It gathered data on 38 countries from energy associations, bank and brokerage reports, investor presentations, the International Energy Agency and a score of other sources. It measured the earnings from producing renewables like biofuels, wind turbines and thermal equipment, and energy efficiency technology such as low-energy lighting and insulation.
“Clean technologies are really growing fast, but China is responsible for the majority of that growth,” said Ward van den Berg, who compiled and analysed the data for the consultancy firm.
Until recently, Chinese massive production of solar cells was aimed at the export market, but they are now making solar systems for the home market, as they have been doing for several years in wind energy, Van den Berg said.
Following Denmark and China, other countries in the top five clean-tech producers, in terms of percentage of GDP, are Germany, Brazil and Lithuania, the report said.
Source: www.news.com.au
Reuters (4 May 2011):
Following are findings by the United Nations’ Intergovernmental Panel on Climate Change (IPCC) in a draft report about renewable energy (RE).
TOTALS – RE accounted for 12.9 percent of global primary energy supply in 2008. The top contributor was biomass (10.2 percent) — mainly firewood used in developing nations — ahead of hydropower (2.3), wind (0.2), direct solar energy and geothermal (0.1 each) and ocean (0.002 percent).
RECENT EXPANSION – Of about 300 gigawatts of new electricity generating capacity added globally in 2008 and 2009, 140 GW came from RE. Developing countries host more than 50 percent of global RE power generation capacity, with China adding more capacity than any other country in 2009.
OUTLOOK – “Studies have consistently found that the total global technical potential for RE is substantially higher than both current and projected future global energy demand.” Solar power has the highest technical potential.
CLIMATE CHANGE – Climate change could affect RE availability — trees might grow in different regions, cloud formation could affect solar power and rainfall shifts can affect hydropower. “Research into these possible effects is nascent,” it said.
COSTS/TECHNOLOGY – “The levelized cost of energy for many RE technologies is currently higher than market energy prices, though in other cases RE is already economically competitive.”
More RE technologies would be economically attractive if impacts such as greenhouse gases emissions were included.
“The cost of most RE technologies has declined and significant additional technical advancements are expected…further cost reductions are expected.”
Areas of potential improvement range from next-generation biofuels to turbine designs for offshore wind energy. Further cost reductions for hydropower are “likely to be less significant” than some other RE technologies.
DEVELOPMENT – RE can help development goals in poor nations. In poor rural areas lacking grid access, RE can lead to substantial cost savings already.
REVIEW OF 164 EXPERT SCENARIOS – Shows RE could give carbon dioxide savings of between 220 billion and 560 billion tonnes from 2010 to 2050 compared to 1,530 billion tonnes of cumulative fossil and industrial CO2 emissions in a reference scenario.
In most scenarios reviewed, RE makes a higher contribution to low-carbon energy supply by 2050 than the options of nuclear power and fossil carbon capture and storage.
In 2008, total RE production stood at roughly 64 exajoules (EJ). In contrast, projected levels of RE deployment in 2050 are greater than 100 EJ/yr in most scenarios and reach 200 EJ/yr to 400 EJ/yr in many scenarios.
“An increase of production level of RE (excluding traditional bioenergy) anywhere from roughly three-fold to twenty-fold is necessary,” it said.
“The scenarios indicate that even without efforts to address climate change RE can be expected to expand.”
“Scenarios do not indicate an obvious single dominant RE technology at a global level.”
POLICIES – “A shift to a low-carbon economy based largely on RE will require additional policies to attract significant increases in investment in technologies and infrastructure.”
Four illustrative scenarios estimate global investments ranging from $1.36 to $5.10 billion for 2011-20, and from $1.49 to $7.18 billion for the decade 2021-30. Real costs will be lower, partly because of savings in other energy investments.
“Policy mechanisms enacted specifically to promote RE are varied and can apply to all energy sectors. They include fiscal incentives such as grants and tax credits; public finance policies such as low-interest loans; and regulations such as quantity-driven policies like quotas and price-driven policies including feed-in tariffs for electricity; mandates for RE heating installations, and biofuels blending requirements.”
“Some policy elements have been shown to be more effective and efficient in rapidly increasing RE deployment, but there is no one-size-fits-all policy,” it said.
Source: www.reuters.com