Role of Renewables in Modern EnerSystems - Opportunities and Challenges

DSD Special Event on “Energy Transformation for Asia:

Responding to Energy Security and Climate Challenges”

Role of Renewables in Modern Energy Systems - Opportunities and Challenges

February 6th 2009

Dr. Marianne Osterkorn

Director General REEEP

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Content

� Impact of Asia in the Global Energy Market

� Role of Renewables in the Asian Energy Market

� Special Schemes in India and China

� REEEP support on renewables and energy efficiency

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The major share of the estimated 45% increase in world energy demand by 2030 will take place in Asia

Source: World Energy Outlook 2008, IEA

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Due to the size of the energy market, CO2 emissions will be highest in Asia


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Per capita emissions in Asia will continue to be below US and Europe

Source: Climate Group

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The estimated €6 trillion investment in Asian energy infrastructure will go primarily into fossil fuels based projects

0

500

1 000

1 500

2 000

2 500

3 000

3 500

4 000

2006-2015 2015-2030

TW

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Geothermal, tide and wave

Solar

Biomass

Wind

Hydro

Nuclear

Fossil fuels


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Asia is already one of the biggest renewable markets in the world and will remain so through 2030


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Hydropower is making a comeback …

… with some 170 GW of capacity now under construction, mostly in non-OECD Asian countries


Total: 167 GW

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In Asia wind could contribute up to 24% of electricity production by 2030

Source:Global Wind Energy Outlook 2008, GWEC

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China has become a global leader in renewable energy both in terms of investment and manufactoring

� 11th five-year plan enlisted reducing GDP energy intensity 20% and increase the share of RES to 10% by 2010 and 30% by 2050

� Bidding system - Wind Concession Program and provincial initiatives

� MLTPRE calls for $ 300billion investment by 2020 –300GWhydropower,30GW wind,30GW bio-mass, 1.8 solar power

� 5th largest installed capacity of wind ( 5900 MW )- largest turbine manufacturing industry

� China is the 3rd largest global producer of solar PV

� China is the global leader in solar water heating – 40 million systems covering 10 million households

� 72% Hydro

� 4% Wind

� 8% Biomass

� 16% Solar

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India has one of the world largest programmesdeploying renewable energy products and systems

� Action Plan for Climate Change, strong environmental policies and legislative framework and institutional support

� Preferential tariffs, RES purchase obligations for utilities (up to 10% of power ), tax incentives

� Market has been estimated to be worth around$1billion with future investment up to $3billion

� Hugh estimated potential 15KMW small hydro, 45KMW wind,17KMW biomass all grid connected

� World 3rd largest wind producer with 7845 MW capacity ( 2000 MW annual increase )and the world 2nd

largest biogas producer

� 75% Hydro

� 18% Wind

� 7% Other RE

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Opportunities for renewables are substantial

� Sustained energy demand growth ensures the long term

market potential

� Favorable legal frameworks in most countries – feed in

tariffs, easy grid access, financial and tax incentives

� Favorable business climate – strong local industry,

supportive financial services

� Strong manufacturing capabilities

� Huge renewable energy resources and potentials

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Challenges and barriers have to be overcome

� Initial cost for renewable investments still not competitive

� Limitation with the existing grid infrastructure

� Financial crises could slow down infrastructure investments

� Energy planning doesn’t fully recognize all the potential of

renewables

� Need for more R&D and demonstration to build confidence

in new technologies

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REEEP - a market facilitator for renewable energy and energy efficiency

� REEEP accelerates market development through a focus on :

� policy/regulation development and improvement

� Implementation of innovative finance mechanisms

� REEEP is driven by a bottom-up approach to meet the real needs on the ground – 100 projects in 40 countries

� REEEP is strongly committed to the MDGs and aims to improve access to sustainable clean energy for the poor

� REEEP is a truly global partnership with 270 partner ( 42 governments ) and more than 3000 friends of REEEP

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Development of a National Wind Energy Roadmap for China

� Provision of a comprehensive Road Map that enables China to achieve its policy 4000 MW by 2010 and 20,000 MW by 2020 –2010 target already exceeded

� Plan for quality assurance, testing and indigenization

� Plan for Establishment of an industrial basis for manufacturing large-scale wind turbines and of a domestic capacity for commercial wind farm project development

� Project Partner: CRED/ERI

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Rural Biomass Renewable Energy Action Plan in China

� Development of a National Action Plan and its implementation for rural biomass energy in China

� Providing detailed measures to achieve the biomass development target and reduce GHG emissions

� Removal of Barriers to rural biomass development

� Promotion of public awareness and acceptance of the national strategy for rural biomass energy

� Project Partner: EED Consulting working with Ministry of Agriculture

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Financing for Bundled Small-Scale Rural Renewable Energy Enterprises in India

� Establishment of a new credit practice for small-scale renewable enterprises in rural India in cooperation with in Yes Bank Ltd. (YBL)

� Development of pipeline of interested small-scale rural renewable ventures

� Securing conventional and carbon financing for three projects

� Scaling up of this efforts to other Indian banks

� Project Partner: e³V

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Removal of Barriers for Biomass Gasification in India

� Creation of a separate line of credit for Large-scale penetration of the BG technology in India

� Creation of a revolving fund for manufacturers, users and Local Service Providers

� Implementation of 30 BG systems of various capacities (10 kg/hour to 300 kg/hour)

� Development of a minimum of five local service providers

� Project Partner: TERI

REEEP International Secretariat

Vienna International CentreRoom D1732Vienna, Austria

[email protected]+43 1 26026 3677

www.reeep.orgwww.reegle.info

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Capacity building support for the implementation of the Renewable Energy Law in China

� Support the Government of China to implement the Renewable Energy Law, which came into force in January 2006

� Organization of training workshops for government officials and enterprises

� Monitor the implementation of the law and assist policy makers

� Enhanced understanding by up to 300 officials and enterprise leaders of the law and how to implement it

� Project Partners: CREIA

Technology

Role of Renewables in Modern EnerSystems - Opportunities and Challenges