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Renewable energy development covers the advancement, capacity growth, and use of renewable energy sources. Modern interest in renewable energy development is linked to concerns about exhaustion and greenhouse gases of fossil fuels and environmental, social and/or political risks of extensive use of fossil fuels and nuclear power. It is a form of energy development with a focus on renewable energy, including all energy from renewable sources. [edit] HistoryWhat is now thought of as renewable energy has been used by man since prehistory. The burning of biomass for heat and light has been practiced throughout recorded history. Windmills and watermills have converted the potential energy of water for centuries, to a power source for small-scale agricultural and industrial processes. The modern technologies which now comprise renewables have different and varied histories. The beginning of the development of wind technology can be dated back to the late 19th Century and experiments in Denmark and elsewhere. Interest in the technology peaked in Denmark during both World Wars due to limited access to fossil fuels. From the 1950s onwards, photovoltaic (solar) cells saw investment as a result of their usefulness in space craft, with resulting improvements in the technology and knowledge of materials, along with reductions in price to levels acceptable to some consumers. The main motivation for the expansion of renewable energies came with the oil crises of 1973 and 1979-80. Concern by political leaders in a host of countries saw increases in support for research and development of new technologies (Jimmy Carter was the first US politician to focus significantly on solar energy use, in response to the 1973 crisis). Wind, wave and solar energy technologies all benefited from this investment with an increase in the range of their application. Elsewhere, there have been experimentations with passive solar energy, including daylighting, which continues a tradition of orienting house-building to benefit from natural resources. Alongside the industrial development of renewable energies, many societies simply continue to practice as a matter of course what has happened for hundreds of years. [edit] Non-technical barriers to acceptanceIn 2006, the U.S. Department of Energy's Office of Energy Efficiency and Renewable Energy did a review of recent literature discussing the "non-technical barriers" to renewable energy use, specifically solar. These are marketing, institutional, and policy impediments which are holding back the acceptance of renewable energy technologies. These key barriers are listed here, from most frequently cited to least, and "must be addressed as part of the technology acceptance efforts":[1]
[edit] Renewable energy support mechanismsBecause of the above non-technical barriers, creating/harvesting (renewable) energy may be more difficult and expensive than burning fossil fuels. Technology for using fossil fuels, such as mines and power plants, is already well established whereas much renewable technology is new.[2] There remains considerable discussion amongst politicians, academics and others as to the most appropriate mechanism - or combination of mechanisms - for achieving renewable energy policy goals. Some people claim that renewable energy is not cost effective, as it often needs government incentives in order to be viable. This may be because fossil fuel prices do not include the true costs of global ecological change now and in the future[3]; an argument of ecological economists. It should also be noted that the effort involved in extracting oil from ever deeper reservoirs is increasing and that the costs of renewable energy technology have been shown to fall with increased investment and expansion of capacity.[4] Conceivably, the cost of renewable energy will drop below fossil fuel costs. Much of renewable energy policy concerns the stimulation of markets and thus demand for the various technologies with the aim of improving efficiency and reducing costs. A number of policy mechanisms have been applied to this end, the mechanisms which have been applied widely are the quota (or RPS) mechanism, the fixed tariff mechanism, contract bidding mechanisms and the application of tax credits. Growing levels of experience in the application of these has enabled more critical assessments of their usefulness in addressing the multiple goals of renewable energy policy. [edit] Quota mechanismsA quota mechanism, sometimes known as a Renewable Portfolio Standard (RPS), sees a government place an obligation on either an electricity supply company or on consumers (albeit usually manifested through their supply company) to source a specified fraction of their electricity from renewable energy sources. Companies which fail to meet the obligation are required to pay a penalty price for every unit of electricity by which they fall short of their obligation. The mechanism acts to create a market for electricity, allowing competition amongst renewable generators to meet the needs of that market. The underlying theory is that competition in this market place will drive down the costs of supplying renewable electricity and thus minimize the costs to the consumer of meeting renewable energy targets. The market allows a government to set the capacity that is required, and allows the market place to set the cost. The level at which the penalty price is set allows the government to place an upper limit on the total costs to the consumer. The mechanism is in place in different forms in just over half of U.S. states as well as the United Kingdom, Italy and Belgium amongst other European countries. In the U.S., quota mechanisms applied at the state level are often assisted by the intermittent application of a federally mandated production tax credit.[citation needed] [edit] Advantages
[edit] Disadvantages
[edit] Contract bidding mechanismsGovernments place an obligation on supply companies to accept electricity from renewable energy generating technologies which have been awarded contracts by government. Generators win these contracts by taking part in a competitive bidding process organized by the government or a specified agent of the government. Historically, competition has usually taken place within technology 'bands', that is, such that competing bids are only compared between generators employing the same technology.[citation needed] For example, wind generator against wind generator. Essentially, this means there are usually different competitions going on at the same time for each technology. Generally, the lowest bids are awarded contracts, provided they meet any criteria set down by the government as part of the competitive process. Examples of such a mechanism in practice include the UK's Non-Fossil Fuel Obligation (NFFO), Ireland's Alternative Energy Requirement (AER) and the French EOLE. [edit] Advantages
[edit] Disadvantages
[edit] Tariff mechanismsIn a Feed-in Tariff mechanism, the government fixes a price for every unit of electricity produced from any technology which it classifies as renewable. Because fossil fuels are relatively cheap, this price is typically greater than the market price for electricity available in that territory and thus tariffs enable generators to operate economically. Different tariff levels may be set for different technologies. A government may provide the subsidy from its own funds or may compel utility companies to purchase the electricity thus produced, passing the costs on to its consumers. Network supply companies are compelled to accept all electricity from specified technologies. [edit] Advantages
[edit] Disadvantages
[edit] Production tax creditsProduction tax credits support the introduction of renewables by allowing companies which invest in renewables to write off this investment against other investments they make. A PTC can be used as the central mechanism for the support of renewables as part of a national or regional mechanism, or it can be used in support of other mechanisms, such as a quota mechanism. Production tax credits have been supplied at the federal level in the U.S.; they have tended to be most effective in states which also provide some other form of support, most notably a quota mechanism. [edit] Advantages
[edit] Disadvantages
[edit] Use ObligationThis places an obligation to install a certain fraction of renewable energy in buildings as they are constructed and/or refurbished. They can be applied in different ways and support different technologies to suit the available resources. Use obligations can be linked to the obtaining of planning permission for new buildings, with permission dependent on meeting the minimum level of installation. [edit] Advantages
[edit] Disadvantages
[edit] Scenarios and blueprintsSee also: Energy policy Many governments and environmental organisations have published reports outlining a future renewables fuel mix, or position papers on future commitments.
[edit] Australia
[edit] Trends favouring renewables
The renewable market will boom when cost efficiency attains parity with other competing energy sources. The following trends are a few examples by which the renewables market is being helped to attain critical mass so that it becomes competitive enough versus fossil fuels: Other than market forces, renewable industry often needs government sponsorship to help generate enough momentum in the market. Many countries and states have implemented incentives — like government tax subsidies, partial copayment schemes and various rebates over purchase of renewables — to encourage consumers to shift to renewable energy sources.[5] Government grants fund for research in renewable technology to make the production cheaper and generation more efficient.[6] Development of loan programs that stimulate renewable favoring market forces with attractive return rates, buffer initial deployment costs and entice consumers to consider and purchase renewable technology. A famous example is the solar loan program sponsored by UNEP helping 100000 people finance solar power systems in India.[7] Success in India's solar program has led to similar projects in other parts of developing world like Tunisia, Morocco, Indonesia and Mexico. Imposition of high fossil fuel consumption / carbon taxes, and channel the revenue earned towards renewable energy development.[8] Many think-tanks are warning that the world needs an urgency driven concerted effort to create a competitive renewable energy infrastructure and market. The developed world can make more research investments to find better cost efficient technologies, and manufacturing could be transferred to developing countries in order to use low labor costs. The renewable energy market could increase fast enough to replace and initiate the decline of fossil fuel dominance and the world could then avert the looming climate and peak oil crises.[9] Most importantly, renewables is gaining credence among private investors as having the potential to grow into the next big industry. Many companies and venture capitalists are investing in photovoltaic development and manufacturing. This trend is particularly visible in Silicon valley, California, Europe, Japan.[10][11][12] [edit] All electricity from renewable sources (AERS)Further information: Renewable energy in Germany, Renewable energy in Spain, and Outlook On Renewable Energy In America On July 2008, Al Gore, challenged the United States to commit to producing all electricity from renewable sources (AERS) like solar and wind power in 10 years [13] [14]. Al Gore´s Alliance for Climate Protection has created the Repower America project to promote this goal. Center for Resource Solutions supports Al Gore's AERS goal[15]. Scientists from the University of Kassel have been busy proving that Germany can power itself entirely by renewable energy [16] . Some autonomous regions in Spain lead Europe in the use of renewable energy technology, and plan to reach 100% renewable energy generation in a few years (AERS goal). Castile and León and Galicia are especially near this goal, producing in 2006 70% of their total electricity demand from renewable energy sources, and 5 communities produces more than 50% from renewables. The Oregon Institute of Technology announced that it was going to be the world’s first university to be powered entirely by geothermal energy and the University of Oklahoma has picked up the use-only-renewable-energy gauntlet and has announced that the school’s main campus will be entirely powered by wind by 2013 [17]. [edit] InvestmentsMain article: Investment in renewable energy Venture capital and private equity investments in clean energy companies increased by 167 percent in 2006, according to investment analysts at New Energy Finance Limited [18]. These clean energy investments increased from $2.7 billion in 2005 to $7.1 billion in 2006, driven mainly by a surge of investments in biofuels in the United States. Investments in biofuels more than quadrupled, increasing from $647 million in 2005 to $2.8 billion in 2006. In addition, investments in solar energy more than tripled, while wind power investments more than doubled. Investments in other clean energy technologies—including energy efficiency, fuel cells, hydrogen, smart power distribution, and carbon markets—grew by 74 percent. New investment into the sector jumped US$148 billion in 2007, up 60 per cent over 2006, noted a report by the Sustainable Energy Finance Initiative (SEFI). Wind energy attracted one-third of the new capital and solar one-fifth. But interest in solar is growing rapidly on the back of major technological advances which saw solar investment increase 254 per cent [19]. The IEA predicts US$20 trillion will be invested into alternative energy projects over the next 22 years [19]. According to Greentech Media, $5 billion of venture capital has been invested in clean energies and technologies over the past 18 months for development of renewable energy industries such as new clean energy startups, investment in clean technology and investment in renewable energy and environmental services companies in Asia. [20] [edit] Statutory definitions of renewable energyStatutory definition of renewable energy may differ from a scientific definition, reflecting the legislators' other concerns, such as environmental damage and political sustainability. Contentious cases are, but not limited to: impure biomass or waste materials (such as painted wood), large hydroelectric power plants, and nuclear power (see Nuclear power proposed as renewable energy. Regarding nuclear power there is an ongoing public discussion whether it can or cannot be included in any definition of renewable energy (see Renewable energy).
[edit] IEA definitionThough International Energy Agency is not a legislative body, the definition used by this specialised organisation of OECD is representative and influential (... denotes ellipsis from original text):[21] "Renewables include the following categories: Combustible Renewables and Waste* (CRW):
Hydro Power: Potential and kinetic energy of water converted into electricity in hydroelectric plants. It includes large as well as small hydro, regardless of the size of the plants. [edit] EU Directive 2001/77/ECDefinition of renewable energy sources used by EU legislators coincides with the IEA definition, above. Bio-waste is limited to biodegradable fraction. Article 2. of the EU Directive 2001/77/EC[22] provides the following definition of renewable energy sources:
further specifying biomass:
[edit] Australia, federal legislationIn Australia, the federal Renewable Energy (Electricity) Act 2000 takes a broad approach and defines certain energy sources that are eligible renewable energy sources (Act s 17). These include (a) hydro; (b) wave; (c) tide; (d) ocean; e) wind; f) solar; g) geothermal aquifer; h) hot dry rock; (i) energy crops; j) wood waste; k) agricultural waste; l) waste from processing of agricultural products; m) food waste; n) food processing waste; o) bagasse; (p) black liquor; q) biomass based components of municipal solid waste; r) landfill gas; s) sewage gas and biomass based components of sewage; t) any other energy source prescribed by the regulations. Further detail of definitions is found in the Regulations. The Act states s.17(2) that fossil fuels; and materials or waste products derived from fossil fuels are not eligible renewable energy sources. Although the Australian federal legislation does not directly rule out nuclear power as an eligible source, it is not included in the list of eligible sources. [edit] See also
[edit] References
[edit] Further reading
[edit] External links
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