RENEWABLE ENERGY: RD&D Priorities Insights from IEA Technology Programmes 001-006.Qxd 23/01/06 10:44 Page 2 001-006.Qxd 23/01/06 10:44 Page 3
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INTERNATIONAL ENERGY AGENCY This pdf-fi le is for the personal use of the purchaser only. The information contained in it is subject to copyright by the OECD/IEA. This material is for sale; therefore, the User may not copy, republish, lend, post on any server (unless a multi-user licence is purchased for use on the intranet, in which case the multi-user license terms apply), use on Web sites, transmit or redistribute to any mailing lists any part of the material for commercial purposes, for compensation of any kind or simple dissemination. RENEWABLE ENERGY: RD&D Priorities Insights from IEA Technology Programmes 001-006.qxd 23/01/06 10:44 Page 2 001-006.qxd 23/01/06 10:44 Page 3 Foreword Foreword The key element towards the enhanced realisation of renewable energy technologies in the energy portfolio is accelerated technological advancement and subsequent cost reduction, combined with novel applications and deployment. This outcome can be significantly supported by a range of RD&D initiatives, if properly designed and implemented. Renewable energies have great potential to contribute to improved energy security and reduced greenhouse gas emissions. But whilst hydropower and bio-resources have played an important role in the energy mix ever since the industrialisation of energy supply, some other renewable technologies have found it difficult to compete. However, recently selected applications of “new” renewable energies in favourable resource areas have become cost- competitive. Such market niches should be encouraged with deployment support. But costs must still come down substantially if more renewables are to be introduced into the mainstream. At the International Conference for Renewable Energies in Bonn in June 2004, the IEA emphasised that the world needs a new generation of renewable technologies to reach the mainstream market for heat, fuels and electricity and that we need to use public funds as effectively as possible in achieving this. It called on IEA member countries to improve their strategy for market deployment of renewable energy technologies, to include externalities in policy considerations and – above all – to increase targeted renewables RD&D funding. This publication, “Renewable Energy: RD&D Priorities, Insights from the IEA Technology Programmes”, is intended to build on that call. It reviews the current status of the portfolio of renewable energy technologies and provides guidance on their mid- and long-term development. The study explores the options for the RD&D to achieve breakthroughs that will lead to large-scale markets and identifies what activities should take priority. It also looks at the benefits of increased RD&D funding in terms of technological advancement and cost improvement. It covers renewable energy technologies in the early research stage through to those that have reached a level of maturity. The report is based on a substantial input from the IEA Implementing Agreements on renewable energy technologies and has received input from the members of the Renewable Energy Working Party and the IEA Secretariat. I hope it contributes to expanding the role of mature renewables and to moving second- and third-generation renewable energies a further step closer to the mainstream. Claude Mandil Executive Director 3 001-006.qxd 23/01/06 10:44 Page 4 001-006.qxd 23/01/06 10:44 Page 5 Acknowledgements Acknowledgements The lead author of this publication is Nobuyuki Hara, an analyst at the Renewable Energy Unit (REU) of the International Energy Agency (IEA). However, the document reflects a broad, collective effort, drawing on extensive input from many colleagues at the IEA, and the Renewable Energy Implementing Agreements. REU team members, Lily Alisse, Jane Barbière, Bridget Errington and Nicolai Kirchner made substantial and critical contributions. Piotr Tulej supervised the project. Guidance, was provided by Neil Hirst, Director of the Office of Energy Technology and Research and Development. Antonio Pflüger, Head of the Energy Technology Collaboration Division, gave guidance and substantial input. Robert K. Dixon, Head of the Energy Technology Policy Division, reviewed the publication. The author also relied on the work of the IEA Energy Statistics Division: special thanks to Lorcan Lyons, Jung-Ah Kang, Ana Belen Padilla and Paul Dowling. Production assistance was provided by the IEA Public Information Office: Loretta Ravera, Muriel Custodio, Corinne Hayworth and Bertrand Sadin added significantly to the material presented. The work was also guided by the Renewable Energy Working Party (REWP) of the IEA including: Roberto Vigotti (Italy); Gilles Mercier (Canada); Annette Schou (Denmark); Morgan Bazilian (Ireland); Hiroyasu Morita (Japan); Masakazu Shima (Japan); Kaoru Yamaguchi (Japan); Tetsuji Tomita (Japan); Donghwan Kim (Korea); Willem van der Heul (Netherlands); Ralph E.H. Sims (New Zealand); Harald Rikheim (Norway); and Hans Ulrich Schärer (Switzerland). Special thanks go to the Government of Canada, including Gilles Mercier, Vice Chair of the REWP, for continuous support throughout the entire project. The report additionally reflects the work of all IEA Renewable Energy Implementing Agreements. Particular thanks go to: Kyriakos Maniatis and John R. Tustin (Bioenergy); Jean- Paul Rigg and Niels Nielsen (Hydropower); David Nieva and Mike Mongillo (Geothermal); Peter Goldman and Patricia Weis-Taylor (Wind Energy Systems); Stefan Nowak and Mary Brunisholz (Photovoltaic Power Systems); Michael Rantil, Frederick H. Morse and Pamela Murphy (Solar Heating and Cooling); Tom Mancini, Michael Geyer, and Robert Pitz-Paal (SolarPACES); and Katrina Polaski, Philippe Schild and Ana Brito-Melo (Ocean Energy Systems). The lead author takes sole responsibility for any possible errors or omissions, in spite of all these important contributions. Many thanks go to Marilyn Smith for skilful editing and assistance with manuscript preparation. Comments and questions should be addressed to [email protected] 5 001-006.qxd 23/01/06 10:44 Page 6 007-014.qxd 23/01/06 10:45 Page 7 Table of contents Table of contents Foreword ........................................................... 3 Acknowledgements.................................................. 5 Chapter 1 • Executive Summary 15 Chapter 2 • Introduction 21 Context ............................................................. 21 Status of renewable energy .......................................... 22 Lessons learned ..................................................... 22 Support for RD&D................................................... 23 Impact of past market and policy trends on renewable energy ......... 28 Maturity of renewable energy technologies ........................... 29 Conclusions......................................................... 33 References ................................................................................................................... 34 Chapter 3 • Technologies 35 Bioenergy ............................................................................................. 37 Highlights ........................................................................................................ 38 Introduction..................................................................................................... 39 Current technology status ................................................................................ 40 Current RD&D................................................................................................. 43 Additional RD&D priorities ............................................................................. 48 Conclusions..................................................................................................... 49 Current activities of IEA Bioenergy Implementing Agreement .......................... 50 References ....................................................................................................... 52 Hydropower .......................................................................................... 55 Highlights ........................................................................................................ 56 Introduction..................................................................................................... 57 Current technology status ................................................................................ 58 Current RD&D................................................................................................. 59 Additional RD&D priorities ............................................................................. 63 Costs and benefits of additional RD&D ........................................................... 66 Current activities of IEA Hydropower Implementing Agreement ...................... 69 References ....................................................................................................... 70 7 007-014.qxd 30/01/06 9:21 Page 8 Table of contents Geothermal ........................................................................................... 71 Highlights ........................................................................................................ 72 Introduction..................................................................................................... 73 Current technology status ................................................................................ 74 Current RD&D................................................................................................