Renewable Energy Promotion Policy and the International Community

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Renewable Energy Promotion Policy and the
International Community

• Inter-American Development Bank Conference on
• Investing in Sustainable Energy and Climate
  Change Mitigation
• Washington, 28 and 29 November 2006

Paul Suding, REN21 Secretariat
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I. How are Latin American and Caribbean
countries moving forward in making policy changes
to promote renewable energy? II. What support
should the international community provide?
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Source REN21 Global Status Report 2006
I. 1 Advancement of Renewables in Latin America
and Caribbean asynchronous with global trends

• Past Exceptional RE Developments in LAC
• Large Hydro Power South America
• Geothermal Power Mexico and Central America
• Ethanol Programme Brazil
• Mechanical Wind Pumps Argentina
• Recent past Little participation in recent
  global RE growth trend
• Strong global renewable energy investment and
  production growth trends (sustained wind and
  solar PV annual growth rates of 25 and 50, high
  growth in Biofuels and Biomass electricity as
  well as Solar Hot Water strong rural RE growth
  in Asia)
• In Latin America renewable significant energy
  production increase only in Biofuels

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Latin America already advanced in specific RE
(hydro, geothermal, ethanol) at least in parts of
the region low dynamics on wind and solar which
are the global growth champions
Source OLADE
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Renewable Energy in main energy markets Leading
countries (capacity or production) 2005
Source REN21 Global Status Reports
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Renewable Energy systems in rural energy Leading
countries 2005
Source REN21 Global Status Reports
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I. 2. Renewable Energy Promotion Policies

• The biggest RE growth is in countries, states and
  municipalities with RE promotion policies
• Brazil and US for biofuels
• US States, Spain, Germany, for wind energy
• Germany, Japan for photovoltaic energy
• China, City of Barcelona etc. for solar water
  heating
• Promoting policies have mushroomed globally
• In 2005 at least 54 countries had RE promotion
  policies, including 15 Developing Countries in
  LAC only Brazil
• 2005/2006 policy changes in LAC rapid for
  Biofuels, cautious in electricity generation
• numerous countries are introducing a policy
  (quota blending) to introduce bioenergy in
  transport fuel markets
• Several national and local government initiatives
  for promotion in electricity sector

Source REN21 Global Status Reports
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Renewable Energy Take-Off, when Market Access
secure and Promotion Policies in Place
R D
Demonstration
Standards
Public Investment
Public bidding - tendering
Fiscal Incentives
General Market Access Rules
Price- or quantity-driven support schemes
Green Certificates
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II. 1. RE policy making is a national task
decision makers and stakeholders
Executive powers (Energy, Environment,
Development, Finance, Foreign Affairs,
Trade) Legislative powers ------------------------
Political parties, leading political
personalities Media, Opinion leaders Energy
supply industry, developers, Equipment industry
Agricultural sector Workers Unions Environment
and Development NGOs, other civil
society Financial institutions Leading research
and education organisations
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II.2. Various Options of International Support
for Renewable Energy Promotion Policies

• Frameworks
• Intergovernmental
• UN organisations and conventions
• Regional organisations
• Sector organisations
• Partnerships
• Multilateral development cooperation Bilateral
  development cooperation
• ODA and other public finance
• Clean Development Mechanism and International
  Emission Trading Schemes
• International Associations
• Parliamentarians
• Experts, Scientists,
• Business Council,
• International NGOs
• Informal
• Conferences,
• Multi-stakeholder Networks

• Vehicles
• International Commitments negotiated or
  voluntary, targets or actions
• International Review Arrangement
• Policy dialogue
• Showcasing of leading country
• Consulting, Twinning, Information Exchange of
  Experience
• Supporting conditions
• Financial instruments frameworks to support
  investment, reduce risks
• Collaboration on International Standards and
  norms, technical guidelines
• Technology Transfer Joint RD, and Industrial
  Cooperation
• Capacity building
• Access for project developers and investors
• Business

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II.3. Conclusion

• National policy Transform markets to allow RE
  business to access markets at conditions which
  value environmental, climate, supply security,
  local development aspects
• International support
• Include all stakeholder groups
• Demonstrate effective and viable RE promotion
  policies and their impacts on investment and
  energy development
• Develop further appropriate financing instruments
  
• Share technology development

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REN21 Mission

• REN21 - providing international leadership for
  the rapid expansion of renewable energy in
  developing and industrial countries based on
  cooperation of participants
• Informal network, flexible, multiple stakeholders
  from energy, development and environment
  community
• www.ren21.net
• THANK YOU FOR YOUR ATTENTION