RENEWABLES 2005 GLOBAL STATUS REPORT Paper prepared for the REN21 Network by The Worldwatch Institute www.ren21.net Lead Author: Eric Martinot www.ren21.net Renewable Energy Policy Network for the 21st Century REN21 is a global policy network aimed at providing a forum for international leadership on renewable energy. Its goal is to allow the rapid expansion of renewable energies in developing and industrial countries by bolstering policy development and decision making on sub-national, national, and international levels. Open to all relevant and dedicated stakeholders, REN21 is a network of the capable and the committed which creates an environment in which ideas and information are shared and cooperation and action are encouraged to promote renewable energy worldwide. REN21 connects governments; international institutions and organizations; partnerships and initiatives; and other stakeholders on the political level with those “on the ground.”REN21 is not an actor itself but a set of evolving relationships oriented around a commitment to renewable energy. The establishment of a global policy network was embraced in the Political Declaration of the International Conference for Renewable Energies, Bonn 2004 (Renewables 2004), and formally launched in Copenhagen in June 2005. REN21 Steering Committee Thomas Becker Jackie Jones Peter Rae Ministry of the Environment Department for Environment, Food World Wind Energy Association Denmark and Rural Affairs United Kingdom Artur Runge-Metzger Mohammed Berdai DG Environment: Climate, Ozone Centre de Développement des Energies Stephen Karekezi and Energy Renouvelables African Energy Policy Research Network European Commission Morocco Li Junfeng Jamal Saghir James Cameron National Development and Reform Energy and Water Climate Change Capital Commission, Energy Research Institute The World Bank Chinese Renewable Energy Industries Paulo Cypriano Association Steve Sawyer Embassy of Brazil in Germany China Climate and Energy Greenpeace Michael Eckhart Susan McDade American Council on Renewable Energy Energy Environment Group Ernst-Christoph Stolper United Nations Development Programme Network of Regional Governments David Hales for Sustainable Development Worldwatch Institute Jennifer Morgan nrg4SD Climate Change Programme, WWF Rainer Hinrichs-Rahlwes Griffin Thompson Federal Ministry for the Environment, Paul Mubiru Department of State Nature Conservation and Nuclear Safety Ministry of Energy and Mineral Development United States Germany Uganda Arthouros Zervos Neil Hirst Rajendra Pachauri European Renewable Energy Council Energy Technology Collaboration Division The Energy and Resource Institute Global Wind Energy Council International Energy Agency India Ton van der Zon Michael Hofmann Wolfgang Palz Ministry of Foreign Affairs, DGIS German Federal Ministry for Economic World Council for Renewable Energy Netherlands Cooperation and Development Mark Radka Richard Hosier Division of Technology, Industry Global Environment Facility and Economics United Nations Environment Programme Suggested Citation REN21 Renewable Energy Policy Network. 2005. “Renewables 2005 Global Status Report.”Washington, DC: Worldwatch Institute. RENEWABLES 2005 GLOBAL STATUS REPORT PAGE 2 RENEWABLES 2005 GLOBAL STATUS REPORT ACKNOWLEDGMENTS Lead Author and Research Director Alliance for Decentralized Energy); Eldon Boes (NREL); John Byrne (University of Delaware); Anil Cabraal (World Eric Martinot, Worldwatch Institute and Tsinghua University Bank); John Christensen (UN Environment Programme); Wendy Clark (NREL); Christian de Gromard (French Sponsors FFEM); Nikhil Desai; Jens Drillisch (GTZ); Christine Eibs- REN21 Renewable Energy Policy Network; German Federal Singer (E+Co); Chas Feinstein (World Bank); Manfred Ministry for Environment, Nature Protection, and Nuclear Fischedick (Wuppertal Institute); Larry Flowers (NREL); Safety; German Federal Ministry for Economic Cooperation Lisa Frantzis (Navigant Consulting); David Fridley (Lawrence and Development Berkeley National Laboratory); Lew Fulton (International Energy Agency); Chandra Govindarajalu (World Bank); Producer and Publisher Chris Greacen (Palang Thai); Gu Shuhua (Tsinghua Univer- sity); Jan Hamrin (Center for Resource Solutions); Miao Worldwatch Institute and GTZ GmbH Hong (World Bank/GEF China Renewable Energy Project); Thomas Johansson (Lund University); Dan Kammen (Uni- Special Thanks versity of California at Berkeley); Stephen Karakezi Tsinghua-BP Clean Energy Research and Education Center, (AFREPREN); Sivan Kartha (Tellus Institute); Marlis Kees Tsinghua University (GTZ); Jong-dall Kim (Kyungpook National University); June Koch (CMT Consulting); Jean Ku (NREL); Lars Kvale Researchers and Regional (Center for Resource Solutions); Ole Langniss; Dan Lieber- Correspondents man (Center for Resource Solutions); Li Hua (SenterNovem); Li Junfeng (China Renewable Energy Industries Associa- Kyung-Jin Boo (Korean Energy Economics Institute); John tion); John Lund (International Geothermal Association Michael Buethe (Georgetown University); Odon de Buen and Oregon Institute of Technology); Subodh Mathur (National Autonomous University of Mexico); Akanksha (World Bank); Paul Maycock (PV News); Bob McCormick Chaurey (The Energy and Resources Institute (TERI)); Red (NREL); Susan McDade (UNDP); Tim Merrigan (NREL); Constantino (Greenpeace Philippines); Jose Etcheverry Alan Miller (International Finance Corporation); Fred (David Suzuki Foundation); Uwe Fritsche (Öko-Institut); Morse (Morse Associates); Wolfgang Mostert; Hansjörg Daniele Guidi (Ecosoluzioni); Katja Hünecke (Öko-Institut); Müller (GTZ); Kevin O’Connor, Kathy O’Dell, and Ralph Tetsunari Iida (Institute for Sustainable Energy Policies); Overend (NREL); Rolf Posorski (GTZ); Mark Radka Waeni Kithyoma (AFREPREN); Liu Pei (Tsinghua Univer- (UNEP); Venkata Ramana (Winrock International); Jeannie sity); Samuel Martin (Asian Institute of Technology); Jose Renne (NREL); Jamal Saghir (World Bank); Oliver Schaefer Roberto Moreira (Biomass Users Network Brazil); Miquel (European Renewable Energy Council); Michael Schlup Muñoz (Autonomous University of Barcelona); Mika (BASE): Martin Schöpe (German Federal Ministry for Obayashi (Institute for Sustainable Energy Policies); Derrick Environment, Nature Protection and Nuclear Safety); Rick Okello (AFREPREN); Kilian Reiche (World Bank); Michael Sellers (International Energy Agency); Shi Pengfei with Rogol (Massachusetts Institute of Technology and CLSA Qin Haiyan (China Wind Energy Association); Judy Siegel Asia Pacific Markets); Ikuko Sasaki (Institute for Sustainable (Energy and Security Group); Scott Sklar (Stella Group); Energy Policies); Janet Sawin (Worldwatch Institute); Klaus Brian Smith (NREL); Virginia Sonntag-O’Brien (BASE); Schmidt (Öko-Institut); Peter Stair (Worldwatch Institute); Till Stenzel (International Energy Agency); Paul Suding Fabby Tumiwa (Indonesia NGOs Working Group on Power (GTZ); Blair Swezey (NREL); Christof Tempe (Öko-Insti- Sector Restructuring); Wang Yunbo (Tsinghua University). tut); Valérie Thill (European Investment Bank); Molly Tir- pak (ICF); Dieter Uh (GTZ); Eric Usher (UN Environment Other Contributors Programme); Claudia von Fersen (KfW); Bill Wallace Thanks to the following people for contributing time, mate- (UNDP/GEF China Renewable Energy Project); Njeri rials, and/or review comments: Molly Aeck (Worldwatch Wamukonya (UNEP); Xiaodong Wang (World Bank); Wang Institute); Lily Alisse (International Energy Agency); Dennis Zhongying (China Energy Research Institute); Werner Weiss Anderson (Imperial College of London); Sven Anemüller (AEE INTEC); Ryan Wiser (Lawrence Berkeley National (Germanwatch); Frederic Asseline (EU-China Energy and Laboratory); Christine Woerlen (GEF); Jeremy Woods Environment Programme); Robert Bailis (University of Cal- (Imperial College of London); Dana Younger (International ifornia at Berkeley); Doug Barnes (World Bank); Morgan Finance Corporation); Arthouros Zervos (European Renew- Bazilian (Sustainable Energy Ireland); Jeff Bell (World able Energy Council and European Wind Energy Association). RENEWABLES 2005 GLOBAL STATUS REPORT PAGE 3 CONTENTS Executive Summary . 4 Figure 7. Share of Existing Solar Hot Water/ Heating Capacity, Selected Countries, 2004 . 10 1. Global Market Overview . 6 Figure 8. Solar Hot Water Existing per 2. Investment Flows . 14 1,000 Inhabitants . 11 3. Industry Trends . 17 Figure 9. Fuel Ethanol Production, 2000 and 2004 . 11 4. Policy Landscape . 19 Policy Targets for Renewable Energy . 19 Figure 10. Annual Investment in Renewable Power Generation Promotion Policies . 20 Energy, 1995–2004 . 14 Solar Hot Water/Heating Promotion Policies . 24 Figure 11. EU Renewable Energy Targets— Biofuels Promotion Policies . 25 Share of Electricity by 2010 . 19 Green Power Purchasing and Utility Green Pricing . 26 Municipal-Level Policies . 27 Table 1. Renewable Energy Indicators . 7 5. Rural (Off-Grid) Renewable Energy . 29 Table 2. Status of Renewables Glossary . 34 Technologies—Characteristics and Costs . 12 Notes and References . (*) Table 3. Non-EU Countries with Renewable Energy Targets . 20 Table 4. Renewable Energy Promotion Figures, Tables, and Sidebar Policies . 21 Figure 1. Renewable Energy Contribution to Table 5. Cumulative Number of Global Primary Energy, 2004 . 6 Countries/States/Provinces Enacting Feed-in Policies . 23 Figure 2. Average Annual Growth Rates of Renewable Energy Capacity, 2000–2004 . 8 Table 6. Cumulative Number of Countries/States/Provinces Enacting Figure 3.