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04 POLICY LANDSCAPE approved to allocate 1.2 GW of solar PV projects through public tenders by 2020.83 The United Kingdom announced plans to hold joint auctions for wind and solar power capacity for the first time in 2014.84 In Africa, Egypt launched a tender for the construction of the nation’s first solar PV plant of 200 MW, and South Africa set dates for its third round of CSP tenders.85 Kuwait held auctions to award licences for the construction of 50 MW of CSP capacity.86 In India, Phase 2 of the Jawaharlal Nehru National Solar Mission was launched with a call for bids to award 750 MW of grid- connected solar PV contracts across the country, although the tender was delayed twice as of early 2014.87 At the sub-national level, the state of Karnataka opened bidding for 130 MW of solar power capacity, while Punjab awarded contracts to 29 solar power developers for a cumulative capacity of 250 MW.88 Other types of auctions also took place to advance the deployment of renewable energy. The United States awarded the nation’s first licence for offshore wind development, and subsequently held two additional auctions for offshore licences.89 Countries continued to support the renewable energy sector through a mix of fiscal incentives and public financing aimed at helping to overcome the various cost barriers that challenge renewable energy deployment, including high upfront costs for renewables, continued high subsidies for fossil and nuclear energy, and failure to internalise environmental and social costs of energy production and use. A number of incentives were revised or introduced in 2013 and early 2014. For example, India reintroduced the Generation Based Incentive (GBI) scheme that had expired in April 2012, with payments of USD 0.01/kWh (50 paise/kWh), and applied it retroactively to include projects that were commissioned during the period of lapse.90 China introduced a 50% value-added tax (VAT) rebate for solar power plant operators as well as tax incentives to spur the development of hydropower, and Iran established a fund to support renewable electricity projects.91 In Europe, Denmark launched a new grant scheme that provided USD 46.1 million (DKK 250 million) in 2013, and allocated USD 92.3 million (DKK 500 million) annually from 2014 to 2020, to promote the deployment of renewable energy technologies (as well as district heating, co-generation, and energy efficiency) in energy-intensive industries.92 Ireland’s Offshore Renewable Energy Development Plan provided a combined USD 61.9 million (EUR 45 million) for testing facilities, and R&D for ocean energy.93 The U.K. increased the level of support for offshore wind producers under its green certificate scheme to 0.26 USD/ kWh (0.155 GBP/kWh), although contract terms were reduced from 20 to 15 years.94 In the United States, the state of New York pledged USD 1 billion in new funding to solar PV projects.95 Reductions to fiscal incentives also were seen during 2013. For example, France removed an 11% investment tax credit for solar PV equipment (the credit remained for solar water heaters); and the U.S. Production Tax Credit, which was extended in January 2013, expired at year’s end for new renewable energy projects in the United States (but the credit still applies to projects that began construction in 2013).96 During 2013 and early 2014, taxes and fees on renewable energy continued to be introduced retroactively in some European countries that previously supported renewable technologies. Bulgaria enacted a 20% tax on revenues from solar PV and wind installations; the Czech Republic placed an open-ended tax of 10% on revenue from solar PV installations larger than 30 kW; and Greece enacted a 10% tax on revenue from renewable power generation, to be enforced retroactively.97 Taxes on self- consumption are being enacted or considered as well. On top of existing grid access restrictions and fees, Spain introduced a tax on the self-consumption of solar PV, while Germany has proposed a similar levy on electricity generated from rooftop systems larger than 10 kW.98 A number of new policies are being enacted around the world in an effort to adapt to rapidly changing challenges that are emerging with higher shares of variable renewable electricity. Policies to advance system integration continue to gain prominence. These include promotion of energy storage, demand-side management (DMS), and regulations that aid in the integration of renewables into national grid networks and energy markets. New market mechanisms continued to be introduced and refined in 2013.99 (See Sidebar 7.) Singapore raised its cap on the total power provided by variable resources from 350 MW to 600 MW during periods of peak demand in 2013.100 China introduced a mandate requiring grid companies to purchase all solar electricity generated within their coverage areas.101 India allocated USD 6.9 billion (INR 430 billion) to a grid modernisation program—the Green Energy Corridor—to enable the integration of renewable energy sources.102 Policies to promote energy storage gained prominence at the national and sub-national levels in 2013 and early 2014. Japan introduced subsidies to cover two-thirds of the capital costs of lithium ion batteries installed with solar PV systems.103 In Canada, the provisions of Ontario’s Long-Term Energy Plan were amended to include 50 MW of energy storage in the province’s competitive procurement process.104 Puerto Rico’s energy regulator revised its existing minimum technical requirements to mandate the incorporation of energy storage in new renewable energy projects, and the U.S. state of California introduced a mandate on investor-owned utilities to begin buying 200 MW of energy storage capacity by 2014, with a statewide goal to acquire 1.3 GW of storage capacity by 2020.105 In addition, Massachusetts introduced requirements on utilities to develop plans to introduce smart meters and increase investments in smart-grid technology over the next decade.106 To reduce what is often one of the largest hurdles faced by renewable energy project developers, some countries also 82PDF Image | About ElectraTherm
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