Renewable Energy Policies and Regulation in Asia

Asia-Pacific Dialogue on Clean Energy Governance and Regulation Workshop on Feed-in-Tariff Policy Manila, June 20th, 2010 Lutz Weischer
World Resources Institute

LW1

A climate of crises
Oil price rise fuels Indias inflation woe
Financial Times, May 17, 2011

China Rations Power Use Amid Drought

Wall Street Journal, May 18, 2011

Climate change bringing infection, hunger, illness

Reuters, May 13, 2011

India calls for equitable access to energy

Economic Times, May 19, 2011

Slide 2 LW1 We need better quotes here, particularly on climate/pollution and energy access
Lutz Weischer, 5/22/2011

Multiple crises that renewables could help solve

LW2

Renewables are growing

Source: Renewables 2010 Global Status Report Note: These statistics cover the electricity sector only, renewables include large hydropower

Slide 4 LW2 Can we redo these in Excel (or in ppt directly), so there is no black background. I would also like to start with what is now Figure 17 and add the GW numbers (140 GW Renewables, 160 GW Fossil).
Lutz Weischer, 5/22/2011

LW3

Developing countries are at the forefront

Current RE Capacity Projected New Capacity 2008-2035 (GW)
Developing Countries RE Developing Countries Nuclear Developing Countries Fossil Other Countries 4%

22%
Others 47%

Developing Countries 53%

38%

36%

78% of new capacity in developing countries RE largest share

Sources: Current installed renewable electric generation capacity from IPPC Special Report on Renewable Energy Sources; Projected New Electric Generation Capacity from International Energy Agency, World Energy Outlook 2010, New Policy Scenario

Slide 5 LW3 Only show New Policy Scenario here (and all three further down when we talk about emissions). Add investment numbers adn the statsitc about emerging economies outspending the OECD countries on public energy innovation spending.
Lutz Weischer, 5/20/2011

Yet, we are still not solving these crises

and only will with ambitious and smart policy

Policy drives deployment

United States
Net Annual Installed Wind Power Capacity 1998-2007, MW
6000

Denmark
Net Annual Installed Wind Power Capacity 1998-200, MW
680 636
5249

580
5000

480
4000

393 380
3000 2420 2454

316 280

316

225
2000 1694 1672

180 106

1000 659 412 142 0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 67 372

80 8 -20 1998 1999 2000 2001 2002 2003 2004 2005 2006 4 8 -12 2007

Source: US Department of Energy

Source: Danish Ministry of Energy

Germany
Net Annual Installed Wind Power Capacity 1998-2007, MW
3500 3247 4000

Spain
Net Annual Installed Wind Power Capacity 1998-2007, MW

3508 3000 2659 2500 2233.13 2037 2000 1808 1665 1568 1500 1490 1500 1191 1000 793 1000 746 613 500 500 419 1327 1523 1595 1667 2000 2500 2299 2645 3000 3500

0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Source: www.wind-energie.de

Source: AEE

= Years with production tax credit (US) or feed-in tariff (DK,DE, ES) for new wind turbines

= Years with no production tax credit (US) or feed-in tariff (DK,DE, ES) for new wind turbines

Policy drives the development of an industry

Leading wind turbine manufacturers are all from the large markets that have policies in place

What is Smart Renewable Energy Policy?

GenerationBased Incentives

Planning and Strategy

Targets Link to Development Objective Integrated Resource Planning Modelling

Renewable Energy Targets in Asia and the Pacific

Country China India Indonesia Philippines Sri Lanka Fiji Jordan Tonga Kuwait Lebanon Pakistan Syria Thailand Vietnam Bangladesh Mongolia Target 15% (final energy) by 2030 15% RE by 2030; 41 GW by 2017, 72 GW by 2022 5% geothermal, 5% biofuels, 5% other RE by 2025 Additional 6,972 MW by 2013 10% (power) non-conventional RE by 2015 100% (final energy) by 2013 10% (primary energy) by 2020 100% (final energy) by 2013 5 % of (final energy) by 2020 12% (final energy) by 2020 10% (primary energy) by 2012 4.3% (primary energy) by 2011 20% (primary energy) and 14% (power)by 2022 5% (primary energy) by 2020 10% (power) by 2020 20-25% (power) by 2020

Generation-Based Incentive
Individual Power Purchase Agreements Generation-Based Tax Credits Feed-in-Tariff Renewable Portfolio Standard

GenerationBased Incentives

Generation-Based Incentives in Asia and the Pacific

Feed-in-Tariffs
Year 1997
2002 2003 2004 2005 2006 2007 2008

Renewable Portfolio Standards

Cumulative Number 1
2 4 6 10 13 14 23

Additional Countries/States Sri Lanka

Indonesia South Korea, Maharashtra Andhra Pradesh, Madhya Pradesh Karnataka, Uttarakhand, Uttar Pradesh , China Kerala, Pakistan, Thailand Mongolia Chattisgarh, Gujarat, Haryana, Punjab, Rajasthan, Tamil Nadu, West Bengal , the Phillipines Taiwan

Year
2003 2004 2005 2006 2007 2008 2009

Additional Countries/States
Maharashtra Andhra Pradesh, Karnataka, Madhya Pradesh, Orissa China the Philippines -

Cumulative Number
1 5 5 5 6 7 7

2009

24

Competitive Bidding 4 countries: China, India, Mongolia, the Phillipines

Generation-Based Incentives in Asia and the Pacific

25 20 15 10 5 0 1997 2002 2003 2004 2005 2006 2007 2008 2009 FIT RPS Bidding

Policy and Regulatory Framework

Electricity sector regulation Interconnection Fossil Fuel Subsidies
GenerationBased Incentives

Technical Environment
Grid Infrastructure Grid Management Technical Capacity to Manufacture, Develop, Build, Operate, Maintain

GenerationBased Incentives

Attractive Financing Options

Concessional Loans Risk Mitigation Subsidies and Fiscal Advantages
GenerationBased Incentives

Questions?

Lutz Weischer Research Analyst 2 Degrees of Innovation Platform Climate and Energy Program, World Resources Institute +1-202-729-7880 lweischer@wri.org