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Renewable energy commercialization involves a broad, diverse array of technologies, including solar Photovoltaics , Solar Thermal power plants, Solar Heating and cooling systems, Wind Power , Hydroelectricity , Geothermal , Biomass , and Ocean Energy systems.International Energy Agency (2007). ''Renewables in global energy supply: An IEA facts sheet'' , OECD, 34 pages. The current status of these different technologies varies considerably. "First-generation" technologies are already mature and economically competitive, "second-generation" technologies are market ready and are being deployed at the present time, and "third-generation" technologies require continued R&D efforts in order to make large contributions on a global scale.International Council for Science (c2006). ''Discussion Paper by the Scientific and Technological Community for the 14th session of the United Nations Commission on Sustainable Development (CSD-14)'' While there are many "non-technical barriers" to the widespread use of renewables, , Gamesa , GE Energy , Q-Cells , Sharp Solar , SunOpta , and Vestas . , Sun and Biomass are three renewable energy sources]] THREE GENERATIONS OF RENEWABLE ENERGY TECHNOLOGIES Renewable Energy technologies are essential contributors to the energy supply portfolio as they generally contribute to world Energy Security , reducing dependency on Fossil Fuel resources, and providing opportunities for mitigating Greenhouse Gases . The International Energy Agency has defined three generations of renewable energy technologies, reaching back more than 100 years:
First- and second-generation technologies have entered the markets, and third-generation technologies heavily depend on long term RD&D commitments, where the public sector has a role to play. FIRST-GENERATION TECHNOLOGIES See Also: Hydroelectricity First-generation technologies are most competitive in locations with abundant resources. Their future use depends on the exploration of the remaining resource potential, particularly in developing countries, and on overcoming challenges related to the environment and social acceptance. For example, there are several significant environmental disadvantages of large-scale hydroelectric power systems, which include: dislocation of people living where the reservoirs are planned, release of significant amounts of carbon dioxide during construction and flooding of the reservoir, and disruption of aquatic ecosystems and birdlife. Hydroelectric power's dirty secret revealed ''New Scientist'', 24 February 2005. Hydroelectric power is now more difficult to site in developed nations because most major sites within these nations are either already being exploited or may be unavailable for these environmental reasons. SECOND-GENERATION TECHNOLOGIES Markets for second-generation technologies are strong and growing, mainly in countries such as Germany, Spain, the United States, and Japan. The challenge is to broaden the market base for continued growth worldwide. Strategic deployment in one country not only reduces technology costs for users there, but also for those in other countries, contributing to overall cost reductions and performance improvement. Solar Heating See Also: Solar hot water Solar Heating systems are a well known second-generation technology and generally consist of solar thermal collectors, a fluid system to move the heat from the collector to its point of usage, and a reservoir or tank for heat storage and subsequent use. The systems may be used to heat domestic hot water, swimming pool water, or for space heating. Solar water heating The heat can also be used for industrial applications or as an energy input for other uses such as cooling equipment. Solar assisted air-conditioning of buildings In many climates, a solar heating system can provide a very high percentage (50 to 75%) of domestic hot water energy. , Manchester , England , was clad in PV panels at a cost of £5.5 million. It started feeding electricity to the National Grid in November 2005.]] Photovoltaics See Also: Photovoltaic power stations In the 1980s and early 1990s, most photovoltaic modules provided (15 MW).[http://www.prnewswire.com/cgi-bin/stories.pl?ACCT=ind_focus.story&STORY=/www/story/04-23-2007/0004571089&EDATE=MON+Apr+23+2007,+08:00+AM Largest U.S. Solar Photovoltaic System Begins Construction at Nellis Air Force Base] Large scale power applications reflect a growing market for solar photovoltaics. In 2000, the total annual manufacturing output of all solar companies was about 300 MW. In 2005, solar industry manufacturing output rose almost five-fold to more than 1,500 MW of solar PV modules and surpassed 2,000 MW in 2006. Solar Energy: Scaling Up Manufacturing and Driving Down Costs p. 30. Wind power See Also: Wind farms Some of the second-generation renewables, such as wind power, have high potential and have already realised relatively low production costs. "Stabilizing Climate" in s, and although it currently produces less than 1% of world-wide electricity use, it accounts for approximately 20% of electricity use in Denmark , 9% in Spain , and 7% in Germany . Global wind energy markets continue to boom – 2006 another record year European wind companies grow in U.S. However, it may be difficult to site wind turbines in some areas for aesthetic or environmental reasons, and it may be difficult to integrate wind power into electricity grids in some cases. ] The , TX (736 MW); Maple Ridge Wind Farm , NY (322 MW); Stateline Wind Project , OR & WA (300 MW); King Mountain Wind Farm , TX (281 MW); and Sweetwater Wind Farm , TX (264 MW). Modern forms of Bioenergy See Also: Biofuels on the left, alcohol on the right at a Filling Station in Brazil ]] Brazil has one of the largest renewable energy programs in the world, involving production of Ethanol Fuel from Sugar Cane , and Ethanol now provides 18 percent of the country's automotive fuel. As a result of this, together with the exploitation of domestic deep water oil sources, Brazil, which years ago had to import a large share of the petroleum needed for domestic consumption, recently reached complete self-sufficiency in oil. America and Brazil Intersect on Ethanol ''Renewable Energy Access'', 15 May 2006. How to manage our oil addiction - CESP New Rig Brings Brazil Oil Self-Sufficiency ''Washington Post'', 21 April 2006. Production and use of ethanol has been stimulated through: (1) low-interest loans for the construction of ethanol distilleries; (2) guaranteed purchase of ethanol by the state-owned oil company at a reasonable price; (3) retail pricing of neat ethanol so it is competitive if not slightly favorable to the gasoline-ethanol blend; and (4) tax incentives provided during the 1980s to stimulate the purchase of neat ethanol vehicles. Guaranteed purchase and price regulation were ended some years ago, with relatively positive results. In addition to these other policies, ethanol producers in the state of Sao Paulo established a research and technology transfer center that has been effective in improving sugar cane and ethanol yields.American Council for an Energy-Efficient Economy (1999). ''Policies for a More Sustainable Energy Future'' Most cars on the road today in the U.S. can run on blends of up to 10% ethanol, and motor vehicle manufacturers already produce vehicles designed to run on much higher ethanol blends. '', which calls for 7.5 billion gallons of biofuels to be used annually by 2012, will also help to expand the market. It should also be noted that the growing ethanol and biodiesel industries are providing jobs in plant construction, operations, and maintenance, mostly in rural communities. According to the Renewable Fuels Association, the ethanol industry created almost 154,000 U.S. jobs in 2005 alone, boosting household income by $5.7 billion. It also contributed about $3.5 billion in tax revenues at the local, state, and federal levels. THIRD-GENERATION TECHNOLOGIES Third-generation technologies are still under development and include advanced Biomass Gasification , Biorefinery technologies, Solar Thermal power stations, Hot-dry-rock geothermal power, and Ocean Energy . Third-generation technologies are not yet widely demonstrated or have limited commercialization. Many are on the horizon and may have potential comparable to other renewable energy technologies, but still depend on attracting sufficient attention and RD&D funding. New bioenergy technologies See Also: Cellulosic ethanol commercialization According to the International Energy Agency, new bioenergy (biofuel) technologies being developed today, notably cellulosic ethanol biorefineries, could allow biofuels to play a much bigger role in the future than previously thought.International Energy Agency (2006). ''World Energy Outlook 2006'' p. 8. Cellulosic ethanol can be made from plant matter composed primarily of inedible cellulose fibers that form the stems and branches of most plants. Crop residues (such as corn stalks, wheat straw and rice straw), wood waste, and municipal solid waste are potential sources of cellulosic biomass. Dedicated energy crops, such as switchgrass, are also promising cellulose sources that can be sustainably produced in many regions of the United States.Biotechnology Industry Organization (2007). ''Industrial Biotechnology Is Revolutionizing the Production of Ethanol Transportation Fuel'' pp. 3-4. Solar thermal power stations See Also: Solar power plants in the Mojave Desert Solar thermal power stations have been successfully operating in , and a 100MW plant in Israel . Israeli company drives the largest solar plant in the world Ocean energy See Also: Wave farm In terms of was announced in February, 2007 by the Scottish Executive , at a cost of over 4 million Pounds , as part of a £13 million funding packages for Ocean Power In Scotland . The farm will be the world's largest with a capacity of 3 MW generated by four Pelamis machines. Orkney to get 'biggest' wave farm ''BBC News'', 20 February 2007. In 2007, the world's first commercial Tidal Power station is to be installed in the narrows of Strangford Lough in Ireland. The 1.2 megawatt underwater tidal electricity generator, part of Northern Ireland's Environment & Renewable Energy Fund scheme, will take advantage of the fast tidal flow (up to 4 metres per second) in the lough. Although the generator is expected to be powerful enough to power a thousand homes, the Turbine will have minimal environmental impact, as it will be almost entirely submerged, and the rotors pose no danger to wildlife as they turn quite slowly. World tidal energy first for NI, BBC News ''BBC News'', 7 June 2007. Nanotechnology thin-film solar panels Solar power panels that use Nanotechnology , which can create circuits out of individual silicon molecules, may cost half as much as traditional photovoltaic cells, according to executives and investors involved in developing the products. Nanosolar has secured more than $100 million from investors to build a factory for nanotechnology thin-film solar panels. The company expects the factory to open in 2010 and produce enough solar cells each year to generate 430 megawatts of power. Solar power nanotechnology may cut cost in half, executives say LEADING RENEWABLE ENERGY COMPANIES Acciona Energy Acciona Energy is a leader in the renewable energy sector and the company’s mission is to "demonstrate the technical and economic viability of a sustainable energy model". Acciona Energy Acciona Energy is the largest developer, owner and operator of wind farms in the world, with 164 wind farms in nine countries representing over 4,500 MW of wind power installed or under construction. BP Solar made by BP Solar]] BP has been involved in solar power since 1973 and its subsidiary, BP Solar , is now one of the world's largest solar power companies with production facilities in the United States, Spain, India and Australia, employing a workforce of over 2,000 people worldwide. Solar Power Profitability: BP Solar BP solar is a major worldwide manufacturer and installer of photovoltaic solar cells. Welcome to BP Solar Gamesa , and it is also a major builder of wind farms. ]] GE Energy GE Energy has installed over 5,500 wind turbines and 3,600 hydro turbines, and its total installed capacity of renewable energy exceeds 160,000 MW. GE Energy Kyocera Kyocera has announced a plan to increase its solar cell production to 500 MW per year in 2010. 500 MW is about three times the 2007 production output, and the company will strengthen production bases in Japan, the US, Europe and China, investing a total of about ¥30 billion through to 2010. Kyocera to Triple Solar Cell Production to 500 MW in FY2010 Solar firm to double capacity Q-Cells Q-Cells , the German solar cell manufacturer, went from zero manufacturing output in 2000 to being the world’s second largest manufacturer of solar cells in 2006. Q-Cells planned to manufacture about 250 MW of solar cells in 2007. Solar Energy: Scaling Up Manufacturing and Driving Down Costs p. 35. Q-cells is based in Thalheim, Germany, and employs more than 1,000 people. Q-Cells CEO says has ‘very positive’ 2nd quarter Evergreen Solar and Q-Cells Announce Partnership with REC Sharp Solar Sharp Solar produces both single and multi-crystalline solar cells and for some years has been the world's leading manufacturer of photovoltaic modules. Sharp's solar modeules are used for many applications, from satellites to lighthouses, and from industrial applications to residential use. Sharp Corporation began researching solar cells in 1959 with mass production first beginning in 1963. Sharp manufactures PV modules near Wrexham and production capacity amounted to 324 MW in 2004. Sharp Solar Modules Sharp Solar celebrates five years as world number one Today, Sharp is the world’s leading manufacturer of solar PV modules, representing more than a quarter of global solar PV output, with annual revenues of more than $1 billion from that business. The company’s president, Katsuhiko Machida, predicts that the cost of generating power from photovoltaics could fall by half between 2006 and 2010. Commercial projects completed through Sharp’s authorised distributor, Solarcentury, have included supplying PV panels as part of a complete solar power generation system on a new petrol station in Nottinghamshire, and a large social housing project in King’s Cross, London. SunOpta SunOpta is located in Canada and was founded in 1973. Its operations are divided between SunOpta Food (organics), Opta Minerals, and SunOpta BioProcess (bioethanol). SunOpta's fastest growing business segment is the BioProcess Group, which is a leading developer of technology in the cellulosic ethanol market. SunOpta's BioProcess Group specializes in the design, construction and optimization of biomass conversion equipment and facilities. They have over 30 years experience delivering biomass solutions worldwide and use innovative technologies to produce cellulosic ethanol and cellulosic butanol. Raw materials include wheat straw, corn stover, grasses, oat hulls and wood chips. SunOpta Bioprocess Group Vestas , the company merged with the Danish wind turbine manufacturer NEG Micon . NON-TECHNICAL BARRIERS TO ACCEPTANCE In September 2006, the U.S. Department of Energy's '' Office Of Energy Efficiency And Renewable Energy '' published a review of recent literature discussing the "non-technical barriers" to renewable energy use.National Renewable Energy Laboratory, (2006). ''Nontechnical Barriers to Solar Energy Use: Review of Recent Literature'', Technical Report, NREL/TP-520-40116, September, 30 pages. These are marketing, institutional, and policy impediments which are holding back the acceptance of renewable energy technologies. These key barriers are listed here, from most frequently cited to least:
With such a wide range of non-technical barriers, there is no silver bullet solution to drive the transition to renewable energy. So there is a need for several different types of policy instruments to overcome different types of barriers and complement each other.Diesendorf, Mark (2007). ''Greenhouse Solutions with Sustainable Energy'', UNSW Press, p. 293. PUBLIC POLICY LANDSCAPE Public policy has a role to play because the free market system has some fundamental limitations. The market does not incorporate into prices the indirect costs of providing goods or services into prices, it does not value nature’s services adequately, and it does not respect the sustainable-yield thresholds of natural systems. It also favors the near term over the long term, thereby showing limited concern for future generations.Brown, L.R. (2006). ''Plan B 2.0 Rescuing a Planet Under Stress and a Civilization in Trouble'' W.W. Norton & Co, pp. 228-232. Tax and subsidy shifting promise both gains in economic efficiency and environmental benefits.Brown, L.R. (2006). ''Plan B 2.0 Rescuing a Planet Under Stress and a Civilization in Trouble'' W.W. Norton & Co, pp. 234-235. Shifting taxes The need for tax shifting—lowering income taxes while raising levies on environmentally destructive activities—in order to create a more responsive market has been widely endorsed by economists. For example, a tax on coal that incorporated the increased health care costs associated with breathing polluted air, the costs of damage from acid rain, and the costs of climate disruption would encourage investment in renewable technologies. A number of countries in Western Europe are already shifting taxes in a process known there as environmental tax reform, to achieve environmental goals. A four-year plan adopted in Germany in 1999 systematically shifted taxes from labor to energy and, by 2001, this plan had lowered fuel use by 5 percent. It had also accelerated growth in the renewable energy sector, creating some 45,400 jobs by 2003 in the wind industry alone, a number that is projected to rise to 103,000 by 2010. In 2001, Sweden launched a new 10-year environmental tax shift designed to convert 30 billion kroner ($3.9 billion) of taxes on income to taxes on environmentally destructive activities. Other European countries with strong tax reform efforts are France, Italy, Norway, Spain, and the United Kingdom. Asia’s two leading economies, Japan and China, are considering the adoption of carbon taxes. Shifting subsidies Subsidies are not inherently bad as many technologies and industries were born of government subsidies. The Internet was the result of publicly funded links among computers in government laboratories and research institutes. And the combination of the federal tax deduction and a robust state tax deduction in California gave birth to the modern wind power industry. But just as there is a need for tax shifting, there is also a need for subsidy shifting. Lester Brown has argued that "a world facing the prospect of economically disruptive climate change can no longer justify subsidies to expand the burning of coal and oil. Shifting these subsidies to the development of climate-benign energy sources such as wind, solar, biomass, and geothermal power is the key to stabilizing the earth’s climate." Some countries are eliminating or reducing climate disrupting subsidies and Belgium, France, and Japan have phased out all subsidies for coal. Germany reduced its coal subsidy from $5.4 billion in 1989 to $2.8 billion in 2002, meanwhile lowering its coal use by 46 percent. It plans to phase out this support entirely by 2010. China cut its coal subsidy from $750 million in 1993 to $240 million in 1995. More recently, it has imposed a tax on high-sulfur coals. While some leading industrial countries have been reducing subsidies to fossil fuels, most notably coal, the United States has been increasing its support for the fossil fuel and nuclear industries. Policies encouraging investment Investment in renewable energy is still very much driven by public policy, which today includes a broadening array of tariff and fiscal support regimes in many countries that together create a stable environment globally for continued sector growth.United Nations Environment Programme and New Energy Finance Ltd. (2007), p. 8. A number of events in 2006 helped push renewable energy up the political agenda, including the US mid-term elections in November, which confirmed clean energy as a mainstream issue. The Stern Review on the Economics of Climate Change made a strong economic case for investing in low carbon technologies now, while arguing that economic growth need not be incompatible with cutting energy consumption.United Nations Environment Programme and New Energy Finance Ltd. (2007), p. 11. Renewable energy (and energy efficiency) are no longer niche sectors that are promoted only by governments and environmentalists. The increased levels of investment and the fact that much of the capital is coming from more conventional financial actors suggest that sustainable energy options are now becoming mainstream.United Nations Environment Programme and New Energy Finance Ltd. (2007), p. 17. INVESTMENT TRENDS Climate Change concerns coupled with High Oil Prices and increasing government support are driving increasing rates of investment in the renewable energy and energy efficiency industries, according to a trend analysis from the United Nations Environment Programme . The report says investment capital flowing into renewable energy climbed from $80 billion in 2005 to a record $100 billion in 2006. In 2007, the upward trend is continuing, with capital investments occurring in sectors and regions previously considered too risky and too illiquid to merit the attention of the institutional investment community.United Nations Environment Programme and New Energy Finance Ltd. (2007), p. 3. The OECD still dominates, but there is now increasing activity from companies in China, India and Brazil. Chinese companies were the second largest recipient of venture capital in 2006 after the United States. In the same year, India was the largest net buyer of companies abroad, mostly in the more established European markets. A recent report from Helmut Kaiser Consultancy of Zurich states that the generation and storage of renewable energy will be the fastest growing sector in energy market over the next 20 years. Renewable Energy Markets Worldwide Driven by Climate Change, Says Swiss Study ''Renewable Energy Access'', 24 April 2007. The international law firm of Thompson & Knight LLP has launched a Climate Change and Renewable Energy Practice Group, consisting of 26 attorneys. International law firm sets up renewable energy practice group The Ernst & Young "Country Attractiveness Indices" provide scores for national renewable energy markets, renewable energy infrastructures and their suitability for individual technologies. The indices, which provide scores out of 100, are updated on a regular basis. Investment in renewable energy ''Engineer Live!'', 24 August 2007. SUSTAINABLE ENERGY Renewable energy and Energy Efficiency are said to be the “twin pillars” of sustainable energy policy. Both resources must be developed in order to stabilize and reduce carbon dioxide emissions. Efficiency slows down energy demand growth so that rising clean energy supplies can make deep cuts in fossil fuel use. If energy use grows too fast, renewable energy development will chase a receding target. Likewise, unless clean energy supplies come online rapidly, slowing demand growth will only begin to reduce total emissions; reducing the carbon content of energy sources is also needed. Any serious vision of a sustainable energy economy thus requires commitments to both renewables and efficiency.American Council for an Energy-Efficient Economy (2007). ''The Twin Pillars of Sustainable Energy: Synergies between Energy Efficiency and Renewable Energy Technology and Policy'' Report E074. SEE ALSO
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