DOCSLIB.ORG

Global Cleantech Sector Report 2012

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Global Cleantech Sector Report 2012 Global Cleantech Sector Report 2012 www.mergers-alliance.com Sector Report 2012 Contents Report 2 Introduction 3 Report Highlights 4 Country Highlights 6 Deal Focus by Country Americas Brazil 8 Mexico 10 USA 12 Asia, Africa and Middle East China 14 India 16 Japan 18 South Africa 20 Turkey 22 Europe France 24 Germany 26 Italy 28 The Netherlands 30 Poland 32 Russia 34 Scandinavia 36 Spain 38 United Kingdom 40 Contacts 43 Transactions 44 Sector Report 2012 Report About the report This sector report was edited by Andre Johnston For more information on this report please of the Mergers Alliance central team. To compile contact Andre Johnston, Mergers Alliance our findings we conducted interviews with our Research Manager. sector experts from each member firm within the Mergers Alliance partnership. We also surveyed Andre Johnston owners and senior executives within cleantech Mergers Alliance sector organisations and private equity investors +44 207 881 2967 worldwide. [email protected] Deal Focus Within each country’s Deal Focus we review Additionally, we provide an overview of the merger and acquisition (M&A) activity, focusing cleantech sector as a whole, highlighting the on key deals and trends within the cleantech market structure as well as commenting on the sector. Cleantech is a shortened form of clean key trends and the factors influencing M&A. We technologies. We define cleantech as those provide our own insight on how we think the activities relating to renewable power generation: market might play out over the coming 18 Wind farms, solar, hydro, waste to energy, months and attempt to identify key investment geothermal, biogas, biomass and tidal. Our opportunities. We also provide a summary of report also includes transactions relating to two government policies from each country energy efficiency and resource management: that we believe has, or will, influence M&A Recycling, air & environment management, activity in cleantech. energy infrastructure, water treatment / conservation. We have included tables of Key terminology: PV (Photovoltaic), GW recent transactions where the target company (Gigawatt), MW (Megawatt), KW (Kilowatt), is located in the country under review. Mwh (Megawatt hour), kWh (Kilowatt hour) Disclaimer This publication contains general information and is not intended reasonable effort has been made to ensure the accuracy of to be comprehensive nor to provide financial, investment, legal, the information contained in this publication, this cannot be tax or other professional advice or services. This publication is guaranteed and neither Mergers Alliance nor any of its member not a substitute for such professional advice or services, and it firms or other related entity shall have any liability to any person should not be acted on or relied upon or used as a basis for any or entity which relies on the information contained in this investment or other decision or action that may affect you or publication, including incidental or consequential damages your business. Before taking any such decision you should arising from errors of omissions. Any such reliance is solely consult a suitably qualified professional adviser. Whilst at the user’s risk. 2 Sector Report 2012 Introduction Whilst the major economies of the world continue to navigate a difficult credit environment and weaker growth prospects, the cleantech industry remains somewhat unique in that it continues to develop strongly in almost all countries. As you will see from our sector experts across the world whilst each country may be at different points in their development trajectory, prospects in almost all are compelling. This development is being driven by the need As the global recovery takes hold, we at Mergers for governments to tackle climate change on a Alliance are ideally placed to help you. Whether multi-lateral basis and ensure security of energy you seek growth through acquisition, wish to supply for their populations and industries over restructure or realise value in your business, the long term. Legislation and attractive fiscal our international advisors are in a unique position incentives are key to much of the recent growth to help you. Our member firms have a prominent and in most countries these levers will drive position in boardrooms across the world and are investment for decades to come. renowned for delivering award winning partner- led advisory service with seamless international You will find in our report a great deal of cooperation. market-leading insight into the key issues facing the sector in 2011 and beyond: how We hope you enjoy reading our report and the industry needs to operate on a global basis, welcome any thoughts or additions you might why geographical comparative strengths are like to contribute. focusing investment in each country and how broad state initiatives and targets are ensuring that transactions get done. Our work also highlights the key developments in different cleantech sectors and how this is shaping the M&A strategies of mid-cap companies, global corporates and the private equity industry alike. Andy Currie Chairman of Mergers Alliance Managing Partner of Catalyst Corporate Finance LLP + 44 207 881 2960 [email protected] 3 Sector Report 2012 Report Highlights We at Mergers Alliance believe the main factors to shape M&A in the cleantech sector over the next three years will be: The “globality” of cleantech Government targets impacting cleantech The deployment of technology and capital (both corporate and institutional) in cleantech has had a Renewable targets are driving cleantech sector distinctly international flavour since the industry’s development. One of the more sweeping initiatives is the inception. Nonetheless, there has been a slight EU’s 20-20-20 directive. It mandates a change in energy reduction in cross-border activity over the past 18 consumption and efficiency habits and for renewables to months which can be largely attributed to ongoing constitute 20% of energy generation by 2020. China’s global economic concerns and contracting government Renewable Energy Law aims for 15% renewable energy support. This trend should reverse as balance sheets usage by 2020. South Africa, whose domestic cleantech strengthen and as investors start looking for targets in industry is currently almost nonexistent, is targeting an developing economies with strong macro fundamentals ambitious 37% by 2030. Such initiatives will underpin and robust support mechanisms. We expect interest to investment decisions and help ensure deals get stretch beyond the BRIC countries to include nascent completed, even in the face of global economic cleantech markets with high-growth potential such as uncertainty. South Africa and Poland. Specific policies having direct Countries to capitalise on their affect on M&A comparative advantage Certain legislative and fiscal policies are directly affecting Each country will capitalise on their comparative natural the volume of M&A transactions. The National Biodiesel strengths; the UK with offshore wind, South Africa with Program in Brazil, which mandates a 5% biodiesel blend solar, Sweden with biomass. Equally, countries such as in diesel, has triggered a number of deals, the recently the Netherlands with its water industry and Germany and implemented feed-in-tariffs in the UK was the catalyst Japan with their manufacturing capabilities will be looking behind some of the most notable transactions in the to entrench and further develop their respective UK. Conversely, regressive policies have also been the competitive advantages. driving force behind a string of deals; the reductions in photovoltaic subsidies in Italy being a good case in point. Scope of private equity interest broad We should see a new round of incentives, particularly from countries with healthy current account surpluses, Unlike in many industries, private equity investors have as they attempt to emerge from the renewables arms been involved across the whole financing cycle from pre- race endowed with a healthy green portfolio. revenue venture finance, through traditional MBO’s, to investing into large-scale generating assets. It should be noted that there was a slight increase in investments into The impact of Fukushima more mature businesses which have clearer paths to exit. The nuclear renaissance has seemingly slowed as a result Our research shows that PE/VC investment in 2010 of the Great East Japan earthquake creating conditions increased by 19% compared to 2009 and 2011 is set to for the meltdown of nuclear reactors in Fukushima. It is achieve similar growth numbers. We expect this number clear now that Fukushima has had a substantive effect to continue to increase over the coming years due to the on the policies of both governments and energy emergence of a growing number of specialist PE funds conglomerates. The biggest news was arguably that focus exclusively on cleantech. Interestingly within Germany’s decision to shut down all of its nuclear power PE circles, the definition of cleantech has been plants by 2022. Just weeks after the Japan earthquake broadened to include sectors such as water, waste nuclear energy giant EDF bought out the remaining management and industrial process efficiency. shares it does not already own of its renewable energy 4 subsidiary EDF Energies Nouvelles; a possible indication that the disaster is influencing corporate decision making. Chinese wind turbine firms are emerging to become Sector focus highly competitive across the globe
Load more

Recommended publications
  • Renewable and Sustainable Energy Transitions for Countries with Different Climates and Renewable Energy Sources Potentials
    energies Article Renewable and Sustainable Energy Transitions for Countries with Different Climates and Renewable Energy Sources Potentials Haichao Wang 1,2, Giulia Di Pietro 3, Xiaozhou Wu 1,*, Risto Lahdelma 2, Vittorio Verda 3 and Ilkka Haavisto 4 1 Institute of Building Environment and Facility Engineering, School of Civil Engineering, Dalian University of Technology, Dalian 116024, China; [email protected] or haichao.wang@aalto.fi 2 Department of Mechanical Engineering, Aalto University School of Engineering, P.O. BOX 14100, FI-00076 Aalto, Finland; risto.lahdelma@aalto.fi 3 Dipartimento Energia, Politecnico di Torino, Corso Duca degli Abruzzi 2, 10129 Torino, Italy; [email protected] (G.D.P.); [email protected] (V.V.) 4 Condens Heat Recovery Oy, Puhelinkatu 12, 13110 Hämeenlinna, Finland; ilkka.haavisto@condens.fi * Correspondence: [email protected] Received: 21 September 2018; Accepted: 10 December 2018; Published: 18 December 2018 Abstract: Renewable energy sources (RES) are playing an increasingly important role in energy markets around the world. It is necessary to evaluate the benefits from a higher level of RES integration with respect to a more active cross-border transmission system. In particular, this paper focuses on the sustainable energy transitions for Finland and Italy, since they have two extreme climate conditions in Europe and quite different profiles in terms of energy production and demand. We developed a comprehensive energy system model using EnergyPLAN with hourly resolution for a reference year for both countries. The models include electricity, heat and transportation sectors. According to the current base models, new scenarios reflecting an RES increase in total fuel consumption have been proposed.
    [Show full text]
  • Wind Power a Victim of Policy and Politics
    NNoottee ddee ll’’IIffrrii Wind Power A Victim of Policy and Politics ______________________________________________________________________ Maïté Jauréguy-Naudin October 2010 . Gouvernance européenne et géopolitique de l’énergie The Institut français des relations internationales (Ifri) is a research center and a forum for debate on major international political and economic issues. Headed by Thierry de Montbrial since its founding in 1979, Ifri is a non- governmental and a non-profit organization. As an independent think tank, Ifri sets its own research agenda, publishing its findings regularly for a global audience. Using an interdisciplinary approach, Ifri brings together political and economic decision-makers, researchers and internationally renowned experts to animate its debate and research activities. With offices in Paris and Brussels, Ifri stands out as one of the rare French think tanks to have positioned itself at the very heart of European debate. The opinions expressed in this text are the responsibility of the author alone. ISBN: 978-2-86592-780-7 © All rights reserved, Ifri, 2010 IFRI IFRI-BRUXELLES 27, RUE DE LA PROCESSION RUE MARIE-THERESE, 21 75740 PARIS CEDEX 15 – FRANCE 1000 – BRUXELLES – BELGIQUE Tel: +33 (0)1 40 61 60 00 Tel: +32 (0)2 238 51 10 Fax: +33 (0)1 40 61 60 60 Fax: +32 (0)2 238 51 15 Email: [email protected] Email: [email protected] WEBSITE: Ifri.org Executive Summary In December 2008, as part of the fight against climate change, the European Union adopted the Energy and Climate package that endorsed three objectives toward 2020: a 20% increase in energy efficiency, a 20% reduction in GHG emissions (compared to 1990), and a 20% share of renewables in final energy consumption.
    [Show full text]
  • Over the Past Few Years, There Has Been a Sharp Expansion in the End
    High Resolution Non-hydrostatic Numerical Simulations for Wind Energy Assessment over Libya. A thesis submitted in fulfilment of the requirements for the degree of (MMaster of Science) By IBRAHIM S. M. ALHAWARI School of Mathematics and Statistics Faculty of Science University of New South Wales Sydney, Australia August 2009 THE UNIVERSITY OF NEW SOUTH WALES Thesis/Dissertation Sheet Surname or Family name: ALHAWARI First name: IBRAHIM S. M. Other name/s: Abbreviation for degree as given in the University calendar: MSc School: Mathematics and Statistics Faculty: Science Title: High Resolution Non-hydrostatic Numerical Simulations for Wind Energy Assessment over Libya. Abstract 350 words maximum This research is aimed at understanding the national wind energy resource of Libya to examine the viability of obtaining wind-generated electricity in the country. High-resolution regional wind observations in Libya are not sufficient for wind resource assessments throughout the country. To overcome such a barrier, the wind conditions have been estimated utilising high-resolution 3-D nested numerical simulations by the Non-hydrostatic Mesoscale Model of the Weather Research and Forecasting system (WRF-NMM). Analysis 2007 data from the Global Forecast System (GFS) were used as initial conditions whereas the boundary conditions came from a combination of GFS analysis and forecast data, in all runs. The coarse domain had a horizontal resolution of 15 km and a temporal resolution of 30 seconds while the fine domain had a horizontal resolution of 5 km and a temporal resolution of 10 seconds. 365 successive nested simulations were performed to produce hourly wind velocity data at 10 m above the ground along with at model sigma levels for both domains for the entire year.
    [Show full text]
  • Ento Di Economia E Finanza
    Dipartimento di Economia e Finanza Cattedra: European Economic History and Policies HORIZON 20-20-20 ASSESSMENT OF THE ITALIAN CONDITION: FOCUS ON RES – E Relatore: Prof. Carlo Viviani Candidato: Alessandro Michelangelo Castiello D’Antonio Matricola: 157801 Anno Accademico: 2011/2012 1 Table of Contents Abstract ........................................................................................................................ 3 1. Introduction ......................................................................................................... 4 2. - 20% Greenhouse Gas Emissions ...................................................................... 8 3. + 20% Energy Efficiency ................................................................................... 16 4. + 20% Renewable Energy Sources ................................................................... 22 4.1 Traditional Energy Sources .............................................................................. 26 4.1.1 Hydropower...................................................................................................... 26 4.1.2 Biomass ............................................................................................................ 29 4.2 New Renewable Energy Sources ....................................................................... 35 4.2.1 Wind Power ....................................................................................................... 35 4.2.2 Solar Power ......................................................................................................
    [Show full text]
  • Deliverable 2.1: Technical and Socio-Economic Conditions
    Ref. Ares(2018)5593330 - 31/10/2018 Deliverable 2.1: Technical and socio-economic conditions A literature review of social acceptance of wind energy development, and an overview of the technical, socio- economic and regulatory starting conditions in the wind energy scarce target regions Date: 29.10.18 Version V2 Summary WP 2 Name of the WP: Social acceptance analyses in target regions/communities Dissemination Public Due delivery date: 28 February 2018 level: Nature: Report Actual delivery date: 08 June 2018 Lead beneficiary: CICERO Contributing beneficiaries: All partners Lead authors: Kristin Linnerud, Stine Aakre and Merethe Dotterud Leiren Contributing authors: Freie Universität Berlin (FFU), Authors: seecon Ingenieure, ENEA, Ecoazioni, Institute of Physical Energetics (IPE), Latvian Environmental Investment Fund (LEIF), Norwegian Water Resources and Energy Directorate (NVE). Polish National Energy Conservation Agency (KAPE), ECORYS ES, ACER Document history Reviewed/Approved Version Date Submitted by Partner Date by/Partner V0 13.05.18 Stine Aakre CICERO Reviewed by FFU 24.05.18 Reviewed by IPE and V0 13.05.18 Stine Aakre CICERO 17.05.18 and 07.06.18 KAPE VI 08.06.18 Stine Aakre CICERO Reviewed by FFU 08.06.18 Reviewed & approved V2 29.10.18 Merethe D. Leiren CICERO 31.10.18 by FFU, R. Di Nucci WinWind has received funding from European Union's Horizon 2020 Research and Innovation programme under Grant Agreement Nº 764717. The sole responsibility for any errors or omissions made lies with the consortium. The content does not necessarily reflect the opinion of the European Commission. The European Commission is also not responsible for any use that may be made of the information contained therein.
    [Show full text]
  • WIND FORCE 12 a Blueprint to Achieve 12% of the World's Electricity from Wind Power by 2020
    WIND FORCE 12 A blueprint to achieve 12% of the world's electricity from wind power by 2020 [June 2005] WIND FORCE 12 SUMMARY RESULTS IN 2020 Total MW installed 1,254,030 Annual MW installed 158,728 TWh generated to meet 12% global demand 3,054 Co2 reduction (annual million tonnes) 1,832 Co2 reduction (cumulative million tonnes) 10,771 Total investment per annum €80 billion Total job years 2.3 million Installation costs in 2020 €512/kW Electricity generation costs in 2020 €2.45cents/kWh TABLE OF CONTENTS Page - OVERVIEW . .2 - THE GLOBAL MARKET STATUS OF WIND POWER . .6 - WIND POWER AND ENERGY POLICY REFORM . .11 1. Legally binding targets for renewable energy . .11 2. Specific policy mechanisms . .12 2.1 Fixed Price Systems . .12 2.2 Renewable Quote Systems . .13 2.3. Design criteria 2.4 Defined and stable returns for investors . .13 3. Electricity market reform . .13 3.1 Removal of electricity sector barriers to renewables . .13 3.2 Removal of market distortions . .14 3.2.1 End subsidies to fossil fuel and nuclear power sources . .14 3.2.2 Internalise the social and environmental costs of polluting energy . .15 - INTERNATIONAL POLICIES . .17 Implementation of the Kyoto Protocol and post 2012 reductions framework . .17 Reform of Export Credit Agencies (ECAs), Multi-Lateral Development Banks (MDBs) and International Finance Institutions (IFIs) . .18 G8 recommendations . .18 Policy summary . .19 - COUNTRY REPORTS . .20 Australia . .20 Brazil . .23 Global map . .24 Canada . .26 China . .28 France . .31 India . .32 Italy . .34 Japan . .35 Offshore . .36 Philippines . .39 Poland . .40 Turkey .
    [Show full text]
  • Valuation of Vestas Wind Systems A/S
    Valuation of Vestas Wind Systems A/S Master Thesis – Cand. Merc. EBA/Msc. in Applied Economics & Finance Copenhagen Business School January 2012 Jonas Schlesinger Counsellor: Carsten Kyhnauv STUs: 178.669 = 78,5 standard pages Executive Summary The purpose of this thesis is a valuation of Vestas Wind Systems A/S. It was conducted based on theory obtained at “Cand. Merc. Applied Economics and Finance” at the Copenhagen Business School. In order to evaluate if Vestas is priced correctly a strategic and financial analysis were conducted. Subsequently forecasts about Vestas’ future ability to create Value for its shareholders were made. Finally, using the previous sections’ findings as input, the discounted cash flow model (DCF) and the economic value added model (EVA) were used to derive Vestas’ fair equity value. Ultimately, to give some perspective on the assumptions used, a sensitivity analysis was provided. The strategic analysis consists of a macroeconomic and an industry analysis. Within the former, special attention was given to the political framework, as it was judged to be of paramount importance. The main finding of this section was, that despite of the current situation being characterised by high uncertainty due to the aftermath of the financial crisis, the European debt crisis and the US economy struggling, overall political commitment and support is good and levels of planned and expected wind energy capacity increases are high. The industry analysis revealed increasing competition within the industry. Vestas’ market share is believed to decrease to some extent, which in light of expected high market growth, was deemed unproblematic. Especially the prospects of the offshore segment were found to be a major opportunity for Vestas.
    [Show full text]
  • Preliminary Workshop Program Version 0.1, 19 April 2008
    Preliminary Workshop Program Version 0.1, 19 April 2008 The Seventh Workshop is organized by: The Seventh Workshop is sponsored by: The Seventh Workshop is supported by: Sunday 25 Monday 26 Tuesday 27 Wednesday 28 8:00 - 9:00 Entrance Hall Registration 9:00 – 11:00 9:00-10:40 Room Zaragoza Room Burgos/León Room Room Zaragoza 9:15 - 18:00 Salamanca/Ávila Welcome and Session 1 Session 5a Session 5b Session 5c Market Integration of Forecasting and Grid Code Issues I Keynote Session Wind Power Operation Issues 11:00 – 11:25 10:40 – 11:00 Coffee Break Coffee Break Field Trip 11:25 – 13:00 11:00 – 13:00 i) Control Centre of REE - Red Room Zaragoza Room Burgos/León Room Zaragoza Room Burgos/León Room Eléctrica (CECOEL) Salamanca/Ávila ii) Villacañas wind farm Session 2a Session 2b Session 6a Session 6b Session 6c Grid Integration Wind Forecasting Modeling and DC Cabling Issues Islanding Projects iii) Operation Centre for Solutions Renewable Energies - CORE 13:00 – 14:00 13:00 – 14:00 of Iberdrola in Toledo Lunch Lunch The busses for the Field 14:00 – 15:40 14:00 – 15:40 Trip will be leaving from Room Room Zaragoza Room Room Zaragoza Room Burgos/León the Hotel Meliá Avenida Burgos/León Salamanca/Ávila América at 09:00 a.m. Session 3a Session 3b Session 3c Session 7a Session 7b Modeling and Wind Offshore Wind Farms Power System Planning Grid Code Issues II Advanced Solutions Farm Control and Turbine Concepts & Operation for Balancing 15:40 – 16:00 15:40 – 16:00 Coffee Break Coffee Break 16:00 – 18:00 16:00 – 16:45 Room Zaragoza Room Burgos/León
    [Show full text]
  • Renewable Energy Impact on Power Quality Performances in Modern Electric Grids
    Morris Brenna, Federica Foiadelli, WSEAS TRANSACTIONS on POWER SYSTEMS Michela Longo, Dario Zaninelli Renewable Energy Impact on Power Quality Performances in Modern Electric Grids MORRIS BRENNA, FEDERICA FOIADELLI, MICHELA LONGO, DARIO ZANINELLI Department of Energy Politecnico di Milano Via La Masa, 34, 20156 MILANO - ITALY [email protected]; [email protected]; [email protected]; [email protected] Abstract: - The significant increase of the Renewable Energy Sources (RES) has radically transformed the electricity generation system presenting many aspects to be studied and analyzed. RESs such as solar and wind are fluctuating and weather-driven sources, that can introduce consequences for the functioning and the quality of the delivered power to the end users. This paper aims to present a deep research of the impact, in terms of power quality, of the introduction of photovoltaic and wind generation into the Italian electric grid, that covers many different case studies since the variety of its topology depending on the geographical regions. A deep study, based on infield measurements data, of the correlation between power quality, in particular voltage sags, and renewable energy introduction is presented and discussed. Key-Words: - Power Quality, Voltage Sags, Wind Farm, Photovoltaic System, Renewable Energy 1 Introduction level of variable renewable energy in their grids is A dramatic increase in renewable energy generation presented in [8]. is a nowadays challenge to which many research The impact of RES requires an active contribution works are addressed. This topic has been central of each RES to ensure power quality and grid since many years, first for the economic and reliable stability and therefore a system approach is benefits that the introduction of renewable sources necessary [9].
    [Show full text]
  • Paper Ewec 09
    1 THE CRETA EXPERIENCE: HOW WIND CAN HELP LOCAL DEVELOPMENT Menniti D.*, Burgio A.*,Pinnarelli A*. Scordino N.*, Sorrentino N.* and Raffa M. # * CRETA @ Dept. of Electronics, Computer and System Science, University of Calabria - Italy # Fortore Enegia S.p.a. – Italy Abstract —This paper deals with a new model of local analysis, therefore such communities of small village are development that the consortium CRETA (Italy) and the destined to survive with their poor patrimony. In such context company Fortore Energia (Italy) together propose. This new the consortium CRETA and the company Fortore Energia (in model is effected by some projects, said actions, based on the the next they will be named CRETA-ES) together propose a exploitation of the renewable energy sources of a territory; in new model of local development realized through a series of order to contribute to a sustainable development, each action project ideas, said actions , finalized to stimulate the pours into the territory an equitable part of the proceeds obtained by the exploitation of its natural resources. Thise equitable part investments of the local actors to pour into the territory an should be, for instance, the transformation of all the crumbling equitable part of the proceeds obtained by the exploitation of and unused houses of the historical downtown of a small village in its natural resources. In this way the risks and the benefits rooms or apartments of a widespread hotel. In this paper several become comparable also from the point of view of local actions, that effected the proposed development model, and the communities. The actions that effect the proposed achievable results are presented.
    [Show full text]
  • How Do You Like Wind Farms? Understanding People's
    AESTIMUM 64, Giugno 2014: 15-37 Daniel Vecchiato How do you like wind farms? Understanding people’s TESAF, Dipartimento Territorio e Sistemi Agro-Forestali , Università preferences about new energy di Padova landscapes with choice experiments E-mail: [email protected] This study aims at understanding people’s preferences about wind energy in order to foster the installation of new power plants in Italy. The application of a choice ex- periment allowed the willingness to pay to be estimated for the following attributes: wind turbines position, turbine height, number of turbines per wind farm and minimum distance of the farm from houses/coast. According to our results the majority of people perceive wind energy posi- tively and prefer offshore wind farms. People recognise the Keywords: Choice experiment, Wind importance of preserving landscape and think that wind energy, Landscape externalities, Italy, turbines do not improve its beauty. In this respect the in- Renewable energy, Internet survey stallation of new wind farms can be considered a second- best solution in terms of landscape preservation, but a JEL: H23,Q01,Q20,Q51,Q56,O13 first-best solution if other aspects are taken into account. 1. Introduction Directive 2009/28/EC (23rd April 2009, also known as the “20–20–20 European Directive”) prescribes the adoption of measures to foster the production of en- ergy from renewable resources. The aim of the Directive is to have 20% of gross energy consumption in the EU supported by renewables and 10% of cars using biofuel by 2020. This is an ambitious target and wind energy has an important role to play in this.
    [Show full text]
  • Energy Subsidies at Times of Economic Crisis
    Energy subsidies at times of economic crisis: A comparative study and scenario analysis of Italy and Spain EPRG Working Paper 1603 Cambridge Working Paper in Economics 1608 Arjun Mahalingam, David M. Reiner Abstract From 2005-2012, Spain and Italy saw significant investment in renewable energy, most notably in onshore wind and solar, driven by generous subsidies, the expectation of rising carbon prices and falling renewables (especially solar panel) costs. As a result of the Global Financial Crisis, both countries were faced with massive fiscal deficits and were forced to curtail their renewable support schemes, although these efforts took several years to take effect after the onset of the initial crisis. Ironically, both Spain and Italy incurred the lion’s share of their liability for renewables support after the onset of the crisis particularly because of the rapid drop in costs of solar PV panels, while subsidy levels remained high. In spite of changes to their support regimes, Italy is likely to meet its 2020 climate and renewable targets, whereas Spain is unlikely to meet its 2020 renewables target based on current trajectories. Following a comparative historical survey of the two large EU member states, we present a scenario analysis that contrasts alternative futures of 2030 where renewable support remain at current levels (essentially zero) or is revived and where carbon prices stay at current low levels (€5/t CO2) or rises to levels needed to accomplish the proposed 40% EU 2030 reduction target. We find that, by 2030, in large parts of Spain, solar PV will be cost-competitive even under low-carbon price and low renewable support regimes, whereas concentrated solar power (CSP) and onshore wind, will require at least either a sustained renewable support regime or a high carbon price to become cost competitive.
    [Show full text]