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At the national, state/provincial, and local/municipal levels, policies have played a major role in driving renew- able energy markets, investments, and industry develop- ments. However, not all policies have been equally effec- tive in supporting these developments.3 The success of such efforts depends not only on policy choice, but also on policy design and implementation. (For further dis- cussion of policy design and effectiveness, see the IPCC Special Report on Renewable Energy Sources discussed in Sidebar 5.) Consequently, governments continue to update and revise policies in response to design and implementation challenges and in response to advances in technologies and changes in the marketplace. n POlICy TaRGeTS In addition, each year the synergies between policies that promote renewable energy and those that encourage energy efficiency improvements become clearer. One example of such synergy is the potential for reductions Policy targets for various penetration levels of renewable energy as part of the future energy supply continue to grow in number.6 Targets now exist in at least 96 coun- tries, more than half of which are developing countries. (See Reference Tables R7–R9.) Most targets are for shares of electricity and typically aim at 10–30% of total electricity within the next 1–2 decades. Other types of targets include renewable energy shares of total primary or final energy, share of heat supply, installed capacities of specific technologies, and shares of biofuels in road transport fuels.7 Targets typically apply to a specific future year, although some apply to a range of years. in energy supply as the energy demand in buildings is reduced.4 Policies for building renovations and new con- struction standards are increasingly integrating on-site renewable energy and energy efficiency. Many targets existed for 2010 and, although some data for that year were still not available by mid-2011, it appears that many countries and states met their 2010 targets. In other cases, targets either were missed or were scaled back. However, because some targets are more ambitious than others, and because the support- ing policies needed to help achieve them are not always implemented strongly or consistently, caution is needed when judging the “success” of policy targets. In 2010, the lack of long-term policy certainty and stabil- ity in many places around the world became a stronger factor for renewable energy markets. In response to con- tinuing cost reductions for several technologies (particu- larly solar PV) and the global financial crisis that began in late 2008, many governments undertook reductions in tax and financial incentives for renewables, and others were contemplating significant policy overhauls. As a result, several national- and state-level renewable energy support mechanisms saw funding cuts in 2010, including in France, Germany, Spain, Italy, the Czech Republic, and the United Kingdom.5 The European Union’s 2010 targets for wind power (40 GW), solar PV (3 GWpeak), CSP (1 GW), and heating/ heat pumps (5 GWth), were all surpassed.8 By the end of 2010, wind power capacity had reached 86 GW and solar PV exceeded 29 GW.9 These strong growth trends are expected to continue and mean that the EU could well surpass its 2020 target of having 20% of energy come from renewables.10 (See Figure 15, next page.) However, neither the Renewable Electricity Directive nor the Biofuels Directive targets for 2010 were fully met (targets were 21% and 5.75% shares of electricity and transport fuels, respectively).11 Nevertheless, supporting policies continued to exert substantial influence on the rate of increase of the shares of renewables in the electricity, heat, and transport mar- kets. The renewable energy industry, along with many other players, continued to push for stable, long-term policies and effective policy mixes. In many instances, a combination of policies (such as offering an incentive in parallel with running a related education program) has proved more successful than taking a single approach Within the EU, many individual countries met their targets for 2010 or were about to do so. Two countries – Finland and Sweden – even passed their 2020 targets by 2010. Scotland is on track to exceed its target, set in 2007, for 31% of total electricity generation coming from renewables by 2011.12 Consequently, the Scottish government raised its 2020 target for the renewable 49 04 04 POlICy lanDSCaPe (such as simply providing a tax credit). In general, the global renewable energy market remains in a state of flux as policymakers continue to be challenged to set realistic and achievable targets and to link them with appropriate long-term policy mechanisms. Policies to support renewable energy investments continued to increase in number during 2010 and early 2011.1 Only a few countries had renewable energy support policies in the 1980s and early 1990s, but many more countries, states, provinces, and cities began to adopt such policies during the period 1998–2005, and especially during the period 2005–2011. The number of countries with some type of policy target and/or support policy related to renewable energy more than doubled during this latter period, from an estimated 55 in early 2005 to 119 by early 2011.2 This section surveys the landscape of existing renewable energy targets and policies, including new and amended policies at the national, state/provincial, and local levels. For a fuller history of renewable energy policies enacted since 2005, refer to past editions of this Renewables Global Status Report. RENEWABLES 2011 GlObal STaTuS RePORTPDF Image | GLOBAL STATUS REPORT Renewables 2011
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