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04 POLICY LANDSCAPE New policy targets were introduced by at least six countries in 2013. Azerbaijan approved a target for renewables to account for 9.7% of total primary energy and 20% of electricity by 2020; Bhutan set a target of 20 MW of renewable power capacity by 2025; and Kazakhstan targeted a 1% share of electricity from renewables by 2014 and a 3% share by 2020.8 Kenya enacted a plan to expand total electric capacity by 5,000 MW by 2016, up from 1,660 MW in late 2013, including 794 MW of hydropower capacity, 1,887 MW of geothermal, 635 MW of wind, and 423 MW of solar PV.9 Qatar set a goal of generating 2% of its electricity from renewables by 2020, and Russia targeted roughly 6 GW of solar, wind, and small-scale hydropower capacity by 2020.10 A number of countries revised existing targets for renewable power capacity and generation during the year, with most targets increasing. As of January 2014, China adopted a range of targets to be met by 2015, including 18 GW of wind and 35 GW of cumulative solar PV capacity (up from the previous 20 GW target), including 20 GW of distributed solar PV.11 China also set a target to achieve 200 MW of wind installed by 2020.12 India announced plans to more than double its renewable capacity, from 25 GW in 2012 to 55 GW by 2017.13 Thailand increased its existing long-term targets for electricity from solid biomass, agricultural waste-to-energy, solar, and wind power, and raised its overall target for renewable shares of final energy consumption to 25% by 2021.14 In the near term, Thailand plans to add 1 GW of solar PV by the end of 2014.15 Vanuatu added to its existing goal of 23% renewable electricity by end-2014 by establishing targets to achieve a 40% share by 2015, and 65% by 2020.16 In Europe, Portugal enacted a number of technology-specific targets for cumulative electric capacity by 2020, including 769 MW of bio-power from solid biomass; 59 MW of biogas power; 29 MW of geothermal power; 400 MW of small-scale hydropower; 6 MW of wave energy; 670 MW of solar PV; 50 MW of CSP; 5,273 MW of onshore wind power; and 27 MW of offshore wind power.17 The United Kingdom set a target to deploy 39 GW of offshore wind capacity by 2030.18 Germany, however, lowered its offshore wind targets from 10 GW to 6.5 GW by 2020, and from 25 GW to 15 GW by 2030.19 In the MENA region, Egypt adopted a new five-year plan that calls for the addition of 700 MW of solar PV and 2,800 MW of CSP by 2017; Libya increased its existing 2020 target for renewable electricity from 7% to 20%; and Saudi Arabia set a near-term goal of 6 GW of solar PV by 2020 as a step towards its existing 2032 goal of 16 GW.20 In Latin America, Chile doubled its existing target, calling for a 20% renewables share of electricity by 2025, and Uruguay set a new higher target to generate 90% of its electricity from renewable sources by 2015.21 On the regional level, the Caribbean Community (CARICOMi) Secretariat adopted a trans-national target on behalf of its 15 member states, calling for a regional renewable electricity share of 20% by 2017, 28% by 2022, and 47% by 2027.22 The shares are to be achieved by country-differentiated targets that were yet to be defined as of early 2014. The EU and the ECOWAS region of West Africa also have trans-national targets in place. At the sub-national level, the U.S. state of California set new standards requiring the deployment of an additional 600 MW of renewable capacity beyond the 33% renewable portfolio standard (RPS) goal to make it possible for small consumers to purchase up to 100% renewable electricity from their utilities.23 Also in the United States, Massachusetts raised its 2020 solar PV capacity target to 1.6 GW after achieving its goal of 250 MW four years early, and Minnesota set a goal for solar power to generate 10% of the state’s electricity by 2030.24 ■■POWER GENERATION POLICIES Most renewable energy support policies that were enacted or revised during 2013 focus on the power sector, as in past years.25 (See Figure 28). Around the world, a mix of regulatory policies, fiscal incentives, and public financing mechanisms— including feed-in policies, renewable portfolio standards (RPS), net metering, tax reductions or exemptions, grants, low-interest loans, and public competitive bidding /tendering—continued to be adopted to promote increased renewable power capacity or generation. In the majority of cases, countries have adopted a variety of mechanisms to produce the policy mix best tailored to their unique domestic circumstances. As in recent years, the majority of actions relating to feed-in policies centered on modifications to existing feed-in tariffs (FITs) and feed-in premiums (FIPs), and only two countries added such policies in 2013. Kazakhstan enacted a new feed-in policy, and Ecuador relaunched its FIT scheme (which expired in 2012) with a revised incentive structure. Ecuador’s feed-in rates for bioenergy and geothermal were unchanged, but tariffs were amended for wind power (up 28.6%), CSP (down 19.4%), and tidal energy (down 27.3%), and support for solar PV was eliminated.26 Ghana established rates for the FIT scheme that was adopted as part of the Renewable Energy Act of 2011.27 Reductions in feed-in rates continued in several countries. Many of these reductions were planned previously—often through mechanisms that were built into policy design—and were intended to ensure that financial support remained in line with changing market conditions. However, several European countries legislated reductions (or even removals) of support that were previously unplanned and in many cases enforced retroactively (i.e., on existing capacity), as noted below. Germany continued to implement scheduled quarterly reductions to its FIT for solar PV (in addition to annual reductions for most other technologies), with solar PV rates falling monthly. (New rates are set every three months, and reductions depend on actual installations in the previous quarter.) Further reductions in support are expected as amendments to the Renewable Energy Act are pursued, with changes anticipated in 2014.28 The United Kingdom strengthened several FIT incentives (see below), but the degression mechanism, which is applied quarterly, resulted in reduced rates for solar PV systems of up to 50 kW.29 Italy ceased feed-in support for new solar PV projects when the 76 i - CARICOM comprises Antigua and Barbuda, The Bahamas, Barbados, Belize, Dominica, Grenada, Guyana, Haiti, Jamaica, Montserrat, St. Kitts and Nevis, St. Lucia, St. Vincent and the Grenadines, Suriname, and Trinidad and Tobago.PDF Image | About ElectraTherm
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