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Policy Department A: Economic and Scientific Policy ____________________________________________________________________________________________ Yet, some 3 billion people around the world continue to rely primarily on traditional biomass fuels such as wood, dung and crop residue for cooking and heating and 1.5 billion people do not have access to electricity at all. Most of these people live in rural areas of South Asia (e.g. India and China) and sub-Saharan Africa [UNDP/WHO 2009]. Modern renewable energy sources are an important component in the fight against energy poverty. The potentials for these RES are manifold in developing countries, e.g. in terms of sunshine, wind, water and biomass. However, limited technical and financial resources obstruct the large-scale introduction of RES in many parts of the world. Global investment in renewable energy generation reached some €78 billion22 ($117 billion) in 2008, of which some €25 billion ($37 billion) were made in developing countries [UNEP/New Energy Finance 2009]. More than 80% of these investments were made in only three developing countries, namely in China (43%), Brazil (30%) and India (10%). Most Chinese investment was in new wind projects, with some additional investments in biomass plants. In 2008, China was the world’s largest PV manufacturing base, with 95% of production destined for export markets. In Brazil, ethanol played a dominant role representing some 70% of new renewables investments. In India, most new renewables investments were made in the wind sector [ibid.]. The EU’s framework for dialogue and partnerships with developing countries is the EU Energy Initiative for Poverty Eradication and Sustainable Development (EUEI). The EUEI is a joint commitment by EU member states and the European Commission aimed at supporting improved access to sustainable energy services through more efficient use of fossil fuels and traditional biomass and by increasing the use of renewable energy. The Initiative mobilises public and/or private resources for specific actions and instruments, both from domestic and international sources. The ACP-EU Energy Facility is one if the EUEI instruments to support the supply of energy services in rural areas of African, Caribbean and Pacific states. The first Energy Facility was launched under the 9th European Development Fund (EDF) in 2005 and co-financed some 74 projects with a total volume of €220 million. 40% of the total budget supported renewable energy. The second Energy Facility has been launched under the 10th EDF for the period 2009-2013. The total budget for this period is €200 million. On 30 November 2009, a call of proposals was launched for the first €100 million. Notification of awarded projects is expected in October 2010. The Commission is also identifying a new programme to support energy in Latin America as part of the 2010-2013 Regional Indicative Programme. Another instrument of relevance to renewable energy sources is the Partnership Dialogue Facility (PDF), which was also developed within the context of the EUEI. Its objective is to promote access to energy based on national and international multi-stakeholder dialogue. Amongst the ongoing projects is the Biomass Energy Strategy (BEST) Initiative, which aims to ensure a sustainable supply of energy from biomass and to promote access to modern fuels to households and small enterprises in Africa. A more innovative approach has been chosen with the creation of the Global Energy Efficiency and Renewable Energy Fund (GEEREF), which was set up in late 2008 in an effort to address the financing gap for clean energy projects in developing countries. GEEREF was conceived as an innovative financing instrument aimed at leveraging private investments with public funds. Funding of GEEREF is currently at about €108 million (financed by the European Commission, Germany and Norway) for the period 2007-2011. 22 Financial data originally quoted in 2008 USD was exchanged into EUR using the average 2008 USD/EUR exchange rate (1.4708). Source: Eurostat, 2010. IP/A/ITRE/ST/2009-11 & 12 84 PE 440.278PDF Image | Policy Department Renewable Technologies
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