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Renewables 2013 GLOBAL STATUS REPORT

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Renewables 2013 GLOBAL STATUS REPORT RENEWABLES 2013 GLOBAL STATUS REPORT 2013 STEERING REN 21 COMMITTEE INDUSTRY ASSOCIATIONS INTERNATIONAL ORGANISATIONS NGOS Dennis McGinn Bindu Lohani Ibrahim Togola American Council on Renewable Energy Asian Development Bank (ADB) Mali Folkecenter/ Citizens United for (ACORE) Piotr Tulej Renewable Energy and Sustainability Ernesto Macías Galán European Commission (CURES) Alliance for Rural Electrification (ARE) Robert K. Dixon Irene Giner-Reichl David Green Global Environment Facility (GEF) Global Forum on Sustainable Energy Clean Energy Council (CEC) Paolo Frankl (GFSE) Li Junfeng International Energy Agency (IEA) Sven Teske Greenpeace International Chinese Renewable Energy Industries Adnan Z. Amin Association (CREIA) International Renewable Energy Agency Emani Kumar Rainer Hinrichs-Rahlwes (IRENA) ICLEI – Local Governments for Sustainability South Asia European Renewable Energy Council Veerle Vandeweerd (EREC) United Nations Development Programme Tetsunari Iida Steve Sawyer (UNDP) Institute for Sustainable Energy Policies Global Wind Energy Council (GWEC) (ISEP) Mark Radka Tomas Kaberger Marietta Sander United Nations Environment Programme Japan Renewable Energy Foundation International Geothermal Association (IGA) (UNEP) (JREF) Richard Taylor Pradeep Monga Harry Lehmann International Hydropower Association United Nations Industrial Development World Council for Renewable Energy (IHA) Organization (UNIDO) Heinz Kopetz (WCRE) Vijay Iyer World Bioenergy Association (WBA) Athena Ronquillo Ballesteros World Bank Stefan Gsänger World Resources Institute (WRI) World Wind Energy Association (WWEA) Rafael Senga World Wildlife Fund (WWF) MEMBERS AT LARGE NATIONAL GOVERNMENTS SCIENCE AND ACADEMIA Michael Eckhart Mariangela Rebuá de Andrade Simões Nebojsa Nakicenovic Citigroup, Inc. Brazil International Institute for Applied Systems Mohamed El-Ashry Hans Jørgen Koch Analysis (IIASA) United Nations Foundation Denmark David Renné David Hales Manfred Konukiewitz/Karsten Sach International Solar Energy Society (ISES) Second Nature Germany Kevin Nassiep Kirsty Hamilton Shri Tarun Kapoor South African National Energy Chatham House India Development Institute (SANEDI) Peter Rae Øivind Johansen Rajendra Pachauri REN Alliance Norway The Energy and Resources Institute (TERI) Arthouros Zervos David Pérez Public Power Corporation Spain Paul Mubiru EXECUTIVE SECRETARY Uganda Christine Lins Thani Ahmed Al Zeyoudi REN21 United Arab Emirates Tom Wintle United Kingdom DiscLAimer: REN21 releases issue papers and reports to emphasise the importance of renewable energy and to generate discussion of issues central to the promotion of renewable energy. While REN21 papers and reports have benefitted from the considerations and input from the REN21 community, they do not necessarily represent a consensus among network participants on any given point. Although the information given in this report is the best available to the authors at the time, REN21 and its participants cannot be held liable for its accuracy and correctness. 2 FOREWORD Access to modern energy enables people to live better lives— meeting the growing demands for energy in many countries. providing clean heat for cooking, lighting for streets and homes, Widespread deployment of renewable energy technologies is cooling and refrigeration, water pumping, as well as basic changing the energy-access dynamic in a number of develop- processing and communications. Yet over 1 billion people still ing countries, and is turning rural villages into thriving centres lack access to modern energy services. of commerce. Globally, in just five years, solar PV soared from As a result of the UN Secretary General’s Sustainable Energy for below 10 GW in 2007 to just over 100 GW in 2012. In the EU, All Initiative and the upcoming Decade of Sustainable Energy renewables accounted for almost 70% of new electric generat- for All, achieving universal energy access has risen to the top of ing capacity in 2012. the international agenda. However, given that the world recently We stand on the cusp of renewables becoming a central passed 400 parts per million of atmospheric CO2—potentially part of the world’s energy mix. As technical constraints are enough to trigger a warming of 2 degrees Celsius compared overcome, most of the alleged limitations to achieving higher with pre-industrial levels—meeting growing energy needs in shares of renewables are due to a lack of political will to enact a climate-constrained world requires a fundamental shift in the necessary policies and measures. It is time to address this how those energy services are delivered. Renewable energy, remaining hurdle. The Renewables 2013 Global Status Report coupled with energy efficiency measures, is central to achieving provides renewable energy proponents and decision makers this objective. with information and motivation to tackle the challenges ahead. Renewables already play a major role in the energy mix in many On behalf of the REN21 Steering Committee, I would like to countries around the world. In 2012, prices for renewable thank all those who have contributed to the successful pro- energy technologies, primarily wind and solar, continued to fall, duction of the GSR 2013. These include lead author/research making renewables increasingly mainstream and competitive director Janet L. Sawin, together with the other section authors; with conventional energy sources. In the absence of a level the GSR project managers, Rana Adib and Jonathan Skeen; and playing field, however, high penetration of renewables is still the entire team at the REN21 Secretariat, under the leadership dependent on a robust policy environment. of Christine Lins. Special thanks go to the ever-growing network Overall, the rate of policy adoption has slowed relative to the of more than 500 contributors, including authors, researchers, early-to-mid 2000s. Revisions to existing policies have occurred and reviewers, who participated in this year’s process and at an increasing rate, and new types of policies have begun helped make the GSR 2013 a truly international and collabo- to emerge to address changing conditions. Integrated policy rative effort. approaches that conjoin energy efficiency measures with the The REN 21 Renewables 2013 Global Status Report provides implementation of renewable energy technologies, for example, useful insight into the global renewable energy market and are becoming more common. policy arena. I trust that it will serve as an inspiration for your Global investment in renewable energy decreased in 2012, work towards a rapid worldwide transition to a renewable but investment expanded significantly in developing countries. energy future. Global investment decreased in response to economic and policy-related uncertainties in some traditional markets, as well as to falling technology costs, which had a positive effect on capacity installations. Renewable energy is spreading to new regions and countries and becoming increasingly affordable in developing and developed countries alike. At the same time, falling prices, combined with declining policy Arthouros Zervos support in established markets, the international financial Chairman of REN21 crisis, and ongoing tensions in international trade, have chal- lenged some renewable energy industries. Subsidies to fossil fuels, which are far higher than those for renewables, remain in place and need to be phased out as quickly as possible. The emergence of shale gas brings a new dynamic to the energy market, and it remains to be seen how it will affect renewable energy deployment globally. Despite fiscal and policy uncertainties, renewables are bringing modern energy services to millions of people, and increasingly 3 GSR 2013 TABLE OF CONTENTS Foreword ....................................... 3 Acknowledgements ................................. 8 Executive Summary ................................ 12 Selected Indicators Table ............................ 14 Top Five Countries Table ............................. 17 01 GLOBAL MARKET AND INDUSTRY OVERVIEW 18 04 POLICY LANDSCAPE 64 Power Sector ................................. 21 Policy Targets ................................. 65 Heating and Cooling Sector ..................... 25 Power Generation Policies ...................... 68 Transportation Sector .......................... 25 Heating and Cooling Policies .................... 70 Transport Policies ............................. 72 02 MARKET AND INDUSTRY TRENDS BY TECHNOLOGY Green Energy Purchasing and Labelling ........... 73 Bioenergy .................................... 27 City and Local Government Policies ............... 73 Geothermal Heat and Power ..................... 33 Hydropower .................................. 35 05 RURAL RENEWABLE ENERGY 80 Ocean Energy ................................. 39 Renewable Technologies for Rural Energy ......... 81 Solar Photovoltaics (PV) ........................ 40 Policies and Regulatory Frameworks .............. 83 Concentrating Solar Thermal Power (CSP) ......... 44 Industry Trends and Business Models ............. 84 Solar Thermal Heating and Cooling ............... 46 Africa: Regional Status ......................... 85 Wind Power. 49 Asia: Regional Status. 86 Latin America: Regional Status .................. 87 03 INVESTMENT FLOWS 56 The Path Forward ............................. 87 Investment by Economy ........................ 57 Investment by Technology ...................... 61 06 FEATURE: SYSTEM TRANSFORMATION 88 Investment by Type ...........................
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