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60 In addition to mandated blending, several biofuels targets and plans define future levels of biofuels use. The EU is targeting 10% of transport energy from renewables by 2020, counting both sustainable biofuels and electric vehicles. The U.S. “renewable fuels standard” requires fuel distributors to increase the annual volume of bio- fuels blended to 36 billion gallons (136 billion liters) by 2022.114 China targets the equivalent of 13 billion liters of ethanol and 2.3 billion liters of biodiesel per year by 2020. South Africa’s strategy targets 2% biofuels. 04POlICy lanDSCaPe mandates mentioned earlier, the “Biomcasa” program, which is promoting the use of biomass for heat in build- ings, provided EUR 5 million to certified energy service companies to offer a biomass alternative and ensure that building occupants receive a 10% minimum decrease in their heat bill.95 Balancing policy costs against policy effectiveness has led to the re-evaluation of some heating support measures in recent years. For example, in 2010 the German Ministry of Finance initially did not approve continued funding for a market incentive program to support solar hot water/ heating, biomass heating, and efficient heat pumps.96 After some months of public campaigning, however, the suspension was lifted.97 New policies introduced since the beginning of 2010 include the United Kingdom’s innovative Renewable Heat Incentive (RHI), which started in June 2011 and will continue to 2014–15. The total program investment budget of GBP 850 million was retained, against the trend of wider government budget cuts.98 Householders will receive a grant upon installing a renewable heating appliance, with long-term tariff support to be intro- duced in 2012. Businesses will receive Renewable Heat Premium payments quarterly over a 20-year period with exact support levels yet to be announced. Technologies include injection of biomethane into natural gas pipe- lines for heat applications.99 The government aims to obtain 12% of U.K. heating from renewable sources by 2020, compared with about 2% at present, although the country’s 4 pence/kWh biomethane tariff is lower than other key European biomethane heat markets such as Germany and France.100 Germany rejected an approach similar to the U.K.’s in favor of a heat obligation, in part because heat metering costs are relatively high for smaller applications.101 n TRanSPORT POlICIeS Another example of new policies, the newly implemented Irish guaranteed support price, ranging from EUR 8.5 cents/kWh to 15 cents/kWh depending on the technol- ogy deployed, includes heating from anaerobic digestion, combined heat and power (CHP), biomass CHP, and biomass heat, including provision for 30% co-firing of biomass in the three existing peat-fired power stations that are operating.102 In Hungary, the National Renewable Energy Action Plan has a target of 4.4% share of heating and cooling from renewables by 2020.103 This includes providing subsidies to help promote geothermal and bio- mass heat projects as well as for the installation of solar thermal systems.104 The South African Department of Energy announced in 2010 its intention to offer 200,000 individual grants for a mass roll-out of the national solar water heating program under the Industrial Policy Action Plan.105 Solar water heating is also gaining support in India where a 30% capital subsidy and/or loan at 5% has been made available.106 Countries that have recently introduced biofuels blend- ing mandates include South Korea (2% biodiesel and fuel-tax exemption incentives from 2012) and Jamaica (supporting policies for the development and expansion of bioethanol from sugar cane and biodiesel).109 Several countries also enacted amendments to existing biofuel policy legislation in 2010. Finland increased the cur- rent mandated E4 biofuel blend (4% ethanol) to E6 for 2011–14, and then to E20 by 2020.110 Ethiopia boosted the E5 blend to E10 in March 2011.111 Thailand increased its subsidy on B3 and B5 diesel fuels to keep retail prices below THB 30 per liter.112 And Spain increased the minimum biofuel blend for 2011 and mandated biodiesel blending to increase from the previous B3.9 to B6 in 2011 and then to B7 in 2012.113 Policies continue to support liquid biofuel production and blending for use as transportation fuel. Common policies include biofuel subsidies, tax exemptions, or blending mandates. Blending mandates now exist in 31 countries at the national level and in 29 states/ provinces around the world. (See Table R12.) Fuel-tax exemptions and production subsidies exist in at least 19 countries, including 10 EU countries and four developing countries.107 However, in some countries, recent reduc- tions of support schemes has resulted in the closure of some biofuel production plants. Recent years have also seen increased attention to biofuels sustainability and environmental standards, most notably under the EU Renewable Energy Directive.108PDF Image | GLOBAL STATUS REPORT Renewables 2011
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