Deployment of renewable energy

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Deployment of renewable energy

• A short introduction to the role and progress of
  the IEA RETD Implementing Agreement
• Aldo Iacomelli (Deputy-Chairman)

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Objectives of the RETD

• To elaborate and present options for - best
  practice policy measures and mechanisms for cost
  reduction, enabling increased use of RE in
  competitive energy markets through strengthened
  international collaboration.
• - innovative business strategies and projects
  that will encourage deployment to public and
  private sector stakeholders.
• - disseminate information and enhance knowledge
  about RE deployment to support public and private
  sector decision making.
• 9 participating countries
• Canada Denmark France Observers
• Germany Ireland Italy Japan, New Zealand
• Netherlands Norway United Kingdom

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Conclusions from joint RETD/REWP Workshop, Paris,
15 March 2007

• 1. Renewable Energy in Energy Scenarios
• Reference scenarios need to reflect political
  decisions in supporting of EE and RE
• Scenarios need to demonstrate ways to cope with
  constraints on greenhouse gas emissions and to
  include the benefits of RE to society
• It is an abdication of responsibility and
  misleading for potential investors if scenarios
  do not include the real technical political
  potential of RE.
• 2. Bridging the Valley of Death Between RD and
  Market Deployment
• The public sector must prove an enabling
  political, market-oriented framework and stable
  long-term policies and payment mechanisms to
  allow for the successful integration of RE into
  markets.
• 3. Scope for International Collaboration
• There is a need to
• establish and promote international RE markets
  well adapted to the properties of such
  technology
• calculate the costs of inaction if RE and EE is
  not deployed
• contribute to energy security (supply side) with
  RE in developed and developing countries with
  multilateral cooperation.

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RETD ongoing activities Project 1 - Renewable
Energy - Cost and Benefits for Society (RECaBS),
www.recabs.org

• Objective
• to estimate the costs and benefits of RE compared
  to traditional electricity generating
  technologies
• to identify improvement possibilities for
  renewable energy technologies/sources through the
  learning processes.
• Main challenges in RECaBS
• Basic cost figures
• Large differences
• Business cycle vs planning prices
• Learning rates
• Value of CO2 emission reduction
• Value of air emissions
• Local conditions
• RE resources are unevenly distributed
• Environmental costs are site dependent
• Evaluated benefits of job-creation depend on
  national industries and policies
• Methodology not well described, lack of consensus
• Security of supply
• Local benefits/employment

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RECaBS Cost comparison 2010 and 2025
2010
2025
Discount rate 5 , Fuel prices WEO 2006
(biomass 3 /GJ)
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Project 2 - Renewable Energy Technology in the
Heating and Cooling Markets

• Objective
• To identify actions which governments and local
  authorities could undertake to promote RE for
  heating and cooling.
• Outcome
• In a joint-report with the IEA Renewable Energy
  Working Party, expected July 2007, the following
  will be included
• 1) A presentation of existing political support
  for renewable heating across 12 OECD nations
• 2) Analysis and recommendation on good policy
  practices
• 3) A description of innovative policy
  instruments
• Standard methods to calculate support needs and a
  web-based tool
• Best policy practices and recommendations
  brochure.

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Project 2 - Renewable Energy Technology in the
Heating and Cooling Markets (2)
Space and domestic water heating constitute a
significant portion of the energy demand in
buildings, and therefore the final energy supply.
94 Policies are included in this analysis across
12 OECD countries spanning 1990-2007
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Project 3 - Policy instrument design to reduce RE
financing costs

• Objective
• Identify design elements in policy instruments
  that reduce perceived risks of renewable energy
  technology (RET) projects.
• Give best practice examples of implemented
  international, national or regional policy
  designs that reduce these perceived risks.
• Make concrete recommendations for policy design
• Preliminary recommendation
• Express long-term commitment for RES, then create
  a stable support mechanism, that effectively
  meets the policy goal, at acceptable levels of
  investor risk, and at acceptable social costs

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RETD Next Steps

• New RETD project activities approved at last ExCo
  meeting
• Innovative electricity markets to incorporate
  variable production, (expected launch June
  2007)
• RE in global energy scenarios, (expected launch
  June 2007)
• Risk quantification risk management in RE
  projects, (expected launch November 2007)
• Next ExCo meeting, October 2007, Canada
• Visit the RETD homepage at www.iea-retd.org