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Kyoto targets call to significant CO2-reduction. Energy carriers such as Renewables become more importance for the future energy supply. Therefore, global energy challenges require new long-term solutions, such a future energy system based on Renewables and other non-fossil resources, and more energy-efficient end-use. 11.2 The Role of Energy Policy to Promote Renewables Deployment Renewable energy technology solutions have a crucial role to play in addressing today’s energy challenges. Ensuring dependable supplies of affordable Renewables technologies is essential. Expanded use of Renewables, in combination with increased energy efficiency as well as rational energy use in all sectors of energy consumers can reduce dependence on imported fossil fuels, thus enhancing energy security. Increased use of Renewables and greater efficiency can help reduce greenhouse gas emissions. Even if Renewables production has doubled since 1970, the share of Renewables in energy supply in EU-Member States has stagnated around 6%. This means that Renewables just could keep pace with the overall increase in energy demand but more needs to be done to expand their shares in the fuel mix. Commitment on the part of policy and industry is necessary to stimulate demand and significantly increase use of emerging Renewables technologies. Public Expenditures for Renewables Energy R&D Governmental based R&D is an important driving factor for market deployment of Renewables. Compared to other research areas, energy research has a special position, due to its significant impact on environmental targets as well as social goals (e.g. affordable energy), and due to the potential damage to economic development that increasing dependence on imports could cause. Total government energy R&D expenditures in IEA countries increased sharply after the oil price shocks in the 1970s. Budgets declined to about half of their peak levels by 1987 and remained relatively stable to 2002. As a percentage of total R&D funding, funding for Renewables was higher from 1974 through 1986 than in the period since 1987. Renewables technologies accounted for 8.2% of total government energy R&D funding from 1974 to 2001. These shrinking budgets contrast with the role governments envisage for new energy technologies in total and renewable energy in particular to help getting towards a more sustainable energy supply. From 1974 to 2002, Renewables R&D expenditures of the IEA countries totalled about USD 23.55 billion, some 8% of total energy R&D funding in the period. Public expenditures for Renewables R&D grew rapidly in the late 1970s and peaked in 1980 at just under USD 2 billion. Expenditures declined by about two-thirds in the early 1980s but have been relatively stable since the late 1980s, in the range of USD 550 million to USD 700 million. Annual expenditures on Renewables R&D for all IEA countries averaged about USD 650 million from 1990 to 2002, 7.7% of total government energy R&D budgets. While the actual budget on biomass R&D shrank from some USD 213 million in 1983 to only about USD 76 million in 1993, the relative importance increased steadily from 5.4% to 26.3% in the period from 1974 to 2002. 41PDF Image | Economic Perspectives of Renewable Energy Systems
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