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Wind Power Current studies indicate that the earth’s potential wind energy supply significantly exceeds global energy demand. Yet, despite 40 percent annual growth in wind-generating capacity over the past 25 years, only 1 percent of global electricity demand is currently met by wind power. More than 98 percent of total current wind power capacity is installed in OECD countries, China, and India. Wind power faces a large number of technical, economic, financial, institutional, market, and other barriers. To overcome these barriers, many countries have employed various policy instruments, including capital subsidies, tax incentives, tradable energy certificates, feed-in tariffs, grid access guarantees, and mandatory standards. The GEF has supported a variety of wind power projects in 38 countries. These have led to installation of almost 1GW of electric power. On 40 projects with a wind power component, the GEF has spent US$252 million, which has leveraged US$1.9 billion of cofinancing. Experience has shown that resource availability and familiarity with the technology are key considerations. However, the most significant barriers to successful growth in the wind market are regulations that deter renewable generators’ access to the grid and the incremental costs to distributors of turbine- generated electricity. Worldwide experience shows several successful approaches to this problem, including the creation of a renewable portfolio standard and a guaranteed renewable “feed-in” tariff. The GEF has helped countries understand and adopt these regulations. INVESTING IN RENEWABLE ENERGY: THE GEF EXPERIENCE 19PDF Image | INVESTING IN RENEWABLE ENERGY: THE GEF EXPERIENCE
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