2019 / 2020 THE GROWING WORLD OF RENEWABLE ENERGY Abdullah Bin Hamad Al-Attiyah International Foundation for Energy & Sustainable Development TABLE OF CONTENTS Foreword ........................................................................................................................................................................................................... 8 Chapter 1. Introduction .............................................................................................................................................................................. 11 Chapter 2. Different types of energy sources ................................................................................................................................... 15 2.1 Non-renewable energy sources (NRES) ...................................................................................................................... 18 2.2 Renewable energy sources ............................................................................................................................................. 21 2.2.1 Combustible renewables ....................................................................................................................................... 22 2.2.2 Non-combustible renewables ............................................................................................................................. 25 2.3 Secondary sources of energy ......................................................................................................................................... 31 Chapter 3. Clean energy sources ............................................................................................................................................................ 35 3.1 Energy sources that produce emission free energy ................................................................................................ 36 3.1.1 Biomass and the environment ............................................................................................................................ 36 3.1.2 Hydropower and the environment ..................................................................................................................... 36 3.1.3 Wind and the environment .................................................................................................................................. 38 3.1.4 Solar and the environment .................................................................................................................................. 38 3.1.5 Geothermal and the environment ...................................................................................................................... 39 3.1.6 Tidal and the environment .................................................................................................................................. 39 3.1.7 Nuclear and the environment ............................................................................................................................ 39 3.2 Technologies that aid clean energy ............................................................................................................................ 40 Chapter 4. Role of renewables on the sustainable development goals (UN SDGs) ............................................................ 43 4.1 Renewables and energy security .................................................................................................................................. 47 4.2 Renewables and energy intensive industries ............................................................................................................ 48 4.3 Economic benefits of renewables ................................................................................................................................ 49 4.3.1 Improve balance of trade and reduce price volatility .................................................................................. 49 4.3.2 Create jobs and develop new industries and skills ....................................................................................... 50 4.3.3 Meet rapidly rising energy demand .................................................................................................................. 50 4.3.4 Provide access to energy and alleviate poverty in developing countries ............................................... 51 4.3.5 Alleviate fuel poverty and advance rural economic development in industrialized countries ........ 51 4.3.6 Keep energy revenue local ................................................................................................................................... 52 4.3.7 Increase tax revenue ............................................................................................................................................. 52 4.3.8 Reduce public health costs .................................................................................................................................. 53 Chapter 5. Impact of renewables on climate change ................................................................................................................. 55 5.1 Pre-Paris momentum on renewables ....................................................................................................................... 58 5.2 Summary of renewable energy profile for some key countries ........................................................................ 66 5.2.1 Brazil ....................................................................................................................................................................... 66 5.2.2 China ....................................................................................................................................................................... 67 5.2.3 India ........................................................................................................................................................................ 68 5.2.4 Indonesia ............................................................................................................................................................... 68 5.2.5 South Africa .......................................................................................................................................................... 69 5.2.6 South Korea .......................................................................................................................................................... 69 5.2.7 Mexico .................................................................................................................................................................... 69 5.2.8 Australia ................................................................................................................................................................ 70 5.2.9 Denmark ................................................................................................................................................................. 71 5.2.10 Japan .................................................................................................................................................................... 71 5.2.11 Norway ................................................................................................................................................................. 72 5.2.12 Russia ................................................................................................................................................................... 72 5.2.13 Sweden ................................................................................................................................................................ 73 5.2.14 United Kingdom ................................................................................................................................................ 73 5.2.15 United States of America ............................................................................................................................... 74 Chapter 6. Policy framework ................................................................................................................................................................ 77 6.1 Policy instruments ......................................................................................................................................................... 81 6.2 Renewable Energy Policy Design .............................................................................................................................. 83 Chapter 7. Business case ........................................................................................................................................................................ 97 7.1 Private sector stake in renewables ........................................................................................................................... 99 7.2 The huddles and challenges to overcome .............................................................................................................. 102 7.3 Levelling the playing field by internalizing all externalities ............................................................................ 103 Chapter 8. Updates of technology ....................................................................................................................................................