Mandatory Renewable Energy Targets

They say a day in politics can be a long time - a week even more. None more so than the last 7 days, when much progress in the EU has started to take shape. The battle centred around the acceptance of binding targets for the reduction of greenhouse gas emissions by drawing 20 percent of power from renewable sources by 2020.

First off 7th March, in the UK. After a telephone call with European Commission President Jose Manuel Barroso, Tony Blair finally accepted the need for a binding target to help establish EU leadership in the worldwide fight against climate change.

8th and 9th March, Brussels: 2 days of EU negotiations netted a binding compromise agreement. Greenhouse gas emissions are to be reduced by 20 percent from 1990 levels by the year 2020, with a 30 percent reduction to be implemented when other nations follow suit. Mandatory targets were agreed: 20% energy is to come from renewable sources like wind and solar power by 2020 (Currently renewables account for less than 7% of the energy mix used in the EU). 10% of cars and trucks will run on biofuels made from plants by 2020.

The compromise:
1. Individual targets will be allowed for each of the 27 EU member states to meet the renewable energy goal, with less stringent targets for East European countries who lag behind the rest of the EU in developing renewable energy (Poland, for example, obtains more than 90 percent of its energy for heating from coal).
2. The inclusion of nuclear energy. Despite stiff resistance from Austria, Denmark and Ireland, Mr. Chirac succeeded in lobbying hard for the inclusion of nuclear power as a noncarbon energy alternative (95% of France's energy comes from nuclear).

Detailed rules specifying how the agreement will be enforced have yet to be drawn up and The European Commission, which drafts legislation for the European Union, will be charged with coming up with individual countries’ targets in coordination with those nations. Doubtless much legal wrangling lies ahead.

Nevertheless, these are significant foundations. The importance of mandatory targets are two fold. Firstly, mandatory targets mean teeth: violation of targets will result in prosecution at the ECJ and imposition of heavy fines - a necessary deterrent to ensure targets are met. Secondly, it finally opens the door to the renewables industry. Despite the lack of subsidies that conventional energy receives (to the tune of $250-300 billion annually worldwide), renewables will be able to compete in the energy sector and investor confidence in the renewable market place is assured.

Energy Revolution Report: How to cut Global Energy CO2 Emissions by 2050

Just how on earth is this planet going to substantially reduce it’s carbon emissions? For sure, it will require radical solutions to be implemented, and a groundbreaking study released this week provides the very roadmap we so desperately need. The report is the first comprehensive analysis of how the global energy system can be restructured based on a detailed assessment for the potential of proven renewable energy sources, energy efficiency and the utilisation of efficient, decentralised cogeneration. Such a route would deliver nearly 70% of global electricity supply and 65% of global heat supply by 2050.

The report, ‘Energy [R]evolution: A Sustainable World Energy Outlook', was developed in conjunction with specialists from the Institute of Technical Thermodynamics at the German Aerospace Centre (DLR) and more than 30 scientists and engineers from universities, institutes and the renewable energy industry around the world. Commissioned by the European Renewable Energy Council (EREC) and Greenpeace International, it demonstrates how we can halve global CO2 emissions by 2050, whilst allowing for increased energy consumption and economic growth. It concludes that renewable energies must represent the backbone of the world’s economy – and that includes developing countries such as China, India and Brazil.

Structural change is at the core of the report. Decentralised technologies and energy systems connected to local distribution networks and large scale renewable energy supplies, such as large offshore wind farms and Concentrating Solar Power plants will be key components. This will achieve higher fuel efficiencies and reduce distribution losses.

In stark contrast, following a "business as usual" scenario would see demand for energy double by 2050, the authors warn.













The report also highlights the short time window for making the key decisions in energy infrastructure. Within the next few years governments, investment institutions and utility companies have to act. Within the next decade, many of the existing power plants in the OECD countries will come to the end of their technical lifetime and will need to be replaced, whilst developing countries such as China, India and Brazil are rapidly building up new energy infrastructure to service their growing economies.

This is a rallying call for governments to phase-out subsidies for fossil and nuclear fuels by 2010 and introduce the `polluter-pays principle`. The market as it currently exists is distorted by the fact that it is still virtually free for fossil and nuclear fuel industry to pollute. Current conventional energy subsidies (to the tune of $250-300 billion worldwide) artificially reduce the price of power, keep renewable energy out of the market place and prop up non-competitive technologies and fuels. Thus, at present new renewable energy generators have to compete with old nuclear and fossil fuelled power stations which produce electricity at marginal costs.

Without political support renewable energy remains at a disadvantage, marginalised by the distortions in the world’s electricity markets created by decades of massive financial, political and structural support to conventional technologies. Developing renewables will therefore require strong political and economic efforts, especially through laws that guarantee stable ‘feed-in’ tariffs over a period of up to 20 years.

Energy Revolution presents demands that are needed in the energy sector to encourage a shift to renewable sources. The main ones are:
• Phase out all subsidies for fossil and nuclear energy and internalise external costs of damage to health and the environment
• Establish legally binding targets for implementation of renewable energy
• Provide defined and stable returns for investors
• Guarantee priority access to the grid for renewable power generators
• Implement strict efficiency standards for all energy consuming appliances, buildings and vehicles

This a report with far reaching aims which, it is hoped, will result in far reaching consequences – consequences that would contribute to sustainable economic growth, high quality jobs, technology development, global competitiveness and industrial and research leadership. And of course, a whopping 50% reduction in carbon emissions. All we need do now is start working out how to tackle the remaining 30%

Energy [R]evolution: A Sustainable World Energy Outlook

World's largest offshore windfarm to be built in the Thames Estuary

There’s been a sea change in the wind direction, so to say. The Government today gave the go-ahead for two major offshore wind farms to be built in the Thames Estuary.

The London Array windfarm will consist of 341 turbines in an area of 145 square miles stretching between Margate in Kent and Clacton in Essex. The £500 million Thanet farm will house a further 100 turbines and could be operational as soon as 2008.

Together the windfarms could deliver 1.3 GW of green electricity, which would be enough to meet the demand of a third of all homes in Greater London.They will make a significant contribution to the Government's ambition - as set out in the Energy Review - to deliver a five-fold increase in the UK's renewable energy resource by 2020.

Secretary of State for Trade and Industry Alistair Darling said:
"Britain is second only to Denmark in the offshore wind sector and projects such as the London Array, which will be the biggest in the world when completed, and Thanet underline the real progress that is being made.

Environment Secretary David Miliband added:
"We expect this announcement will be the first of a number of large-scale offshore wind farms in the UK and will provide real impetus for the continued developments in the offshore renewable energy sector that will benefit generations to come.
Both projects consented today will also bring significant economic opportunities to the local communities and to UK businesses.
Full DTI press release