Commission on Science and Technology for Development
CSTD 2009-2010 inter-sessional panel
9-11 November 2009
Geneva
Issues Paper on
New and Emerging Renewable Energy Technologies
for Sustainable Development
NOT TO BE CITED
Prepared by the UNCTAD Secretariat
Table of Contents
I. Introduction………………………………………………………………………… 2
II. Energy Challenges and Sustainable Development………………………………....3
III. Emerging Renewable Energy Technologies…………………………………..……5
IV. Promoting the development and deployment of renewable energy
technologies:………..…………... ……………………...........................................…8
V. Policy considerations………………………………………………………….....…16
VI. Issues for discussion……………………………………………………….............. 20
VII. References………………………………………………………...............................22
Annex 1. An Overview of new and renewable energy technologies……………….24
(a) Generating Electric Power. “No technology provides a one-size-fit-all”
solution, but a combination can create a robust energy supply
(b) Storing and Delivering Renewable Power
(c) Renewable Transportation Fuels
Annex 2. International discussions and collaborations………….............................33
Lists of Figures
Figure 1: Share and population without electricity by developing region……………………4
Figure 2: Renewable energy share of global final energy consumption…………………… 6
Figure 3: 2007 product shares in world renewable energy supply………………………...….7
Lists of Boxes
Box.1: Overview of the range of renewable energy sources………………………..………..6
Box.2: Barefoot College: bottom up approach to technology transfer and local
empowerment………………………………………………………………………………..13
1
I. Introduction
The Commission on Science and Technology for Development (CSTD) has selected
“New and Emerging Technologies” as a priority theme for the 2009-2011 biennium.
Recalling that in adopting its multi-year work programme in 2007, the Commission agreed
that its science and technology-related work would contribute towards the implementation
of the 2005 World Summit Outcome 1 . It is within this framework, that the CSTD will
examine, during the 2009-2010 inter-sessional period, the role of green renewable energy
technologies, which hold enormous potential for the achievement of internationally agreed
development goals, especially those in the Millennium Declaration (MDGs).
Commitments to improve access to reliable and affordable energy services, in
particular to increase the share of renewable sources of energy in the global energy supply
have been repeatedly made by Governments at the international level, most notably at the
World Summit on Sustainable Development (WSSD) held in 2002, and the World Summit
(2005).
The Johannesburg Plan of Action, adopted at WSSD, emphasizes that access to
energy is fundamental to the eradication of poverty and calls on governments to ensure that
energy policies are supportive to their efforts to eradicate poverty. The Plan of Action,
"with a sense of urgency", calls for a substantial increase in the global share of renewable
energy sources. It further urges enhanced international and regional cooperation to
“improve access to reliable, affordable, economically viable, socially acceptable and
environmentally sound energy services, as an integral part of poverty reduction
programmes, by facilitating the creation of enabling environments and addressing capacitybuilding needs, with special attention to rural and isolated areas.”
The Plan of Action
calls for international support in helping developing countries create a level playing field
for the development of, inter alia, renewable energy and decentralized energy systems.
The 2005 World Summit Outcome document reiterates that “clean energy, meeting
energy needs and achieving sustainable development” require urgent action; calls for
practical international cooperation to promote the development and deployment of clean
energy; and highlights the importance of innovation, investment, technology transfer and
capacity building. It recognizes the role of science and technology, and urges support for
initiatives of research and development that address the special needs of developing
countries in the areas of energy and sustainable use of natural resources. It calls on the
international community to facilitate access to, and the development, transfer and diffusion
of, technologies, including environmentally sound technologies and corresponding knowhow, to developing countries. It further calls for greater efforts to develop renewable
sources of energy, such as solar, wind and geothermal.
This issues paper will provide an overview of new and emerging renewable energy
technologies, and identify some of the key challenges related to their development and
deployment in developing countries, through comparative analyses of selective case
1
Paragraph 60, A/res/60/1
2
studies. It will seek to identify key success factors, with a view to stimulating discussion
on good practices and policy options for building innovative capabilities, and promoting
effective diffusion of these technologies.
II. Energy Challenges and Sustainable Development
Energy is central to sustainable development. Although not an explicit goal itself,
energy and its access constitutes a prerequisite underpinning of all Millennium
Development Goals (MDGs).
Access to electricity and modern energy services can
contribute to: inter alia, higher yields in agricultural production; increased access to
information and telecommunications; improved health and quality of healthcare; and
improved standard of living in general. It also contributes significantly to gender equality
and education. 2
Today, an estimated 1.6 billion people in developing countries have no access to
electricity, particularly in sub-Sahara Africa, South Asia and some small island developing
states (SIDs) (see Figure 1). About 2.5 billion people, especially in rural areas of subSaharan Africa and South Asia, still lack access to modern energy services: They rely on
biomass fuels such as firewood, charcoal, manure, and crop residues 3 for cooking and
heating. These practices have severe adverse effects on health, 4 environment, social and
economic conditions. 5 The energy poverty thus contributes to the perpetuation of poverty
and degradation. Even in many of the middle income countries with relatively high rate of
electrification, the poor living in urban agglomerations and rural communities lack access
to energy services, largely due to the high costs associated with connection, and
distribution, as well infrastructure extension6 . In some cases, heavy reliance on imports of
fossil fuels that are subject to price volatility and price increases have also resulted in
higher energy costs for many households. 7
2
GTZ Report, “Energising Development,” June 2009.
3
UN General Assembly, Sixty-fourth session, Sustainable development: Promotion of new and renewable sources of
energy, 10 August 2009, and IEA: Energy Balances of Non-OECD Countries, 2008.
4
Recognized as the second most adverse cause for deaths (after malnutrition) in poor developing countries, World Health
Organisation (WHO) estimates 1.5 million (or 4,000 deaths per day) die due to indoor air pollution. WHO: Fuel for Life:
Household Energy and Health, Geneva 2006 and Conference Report, International Energy Conference, Vienna, Austria,
22-24 June 2009.
5
The use of biomass accelerates deforestation and requires a lot of time and effort for collection. Women and children
are usually responsible for this activity, which they could have otherwise be pursuing other productive activities such as
education and employment activities. See footnote 3.
6
The Millennium Project (2005). Energy Services for the Millennium Development Goals
7
UN General Assembly, Sixty-fourth session, Sustainable development: Promotion of new and renewable sources of
energy, 10 August 2009
3
Figure 1: Share and population without electricity by developing region
Source: IEA: WEO 2006
Equally important is the fact that the energy sector as a whole is responsible for
approximately 70% of total global greenhouse gas emissions, a major cause of climate
change. 8 Over the past two decades there has been increasing recognition and consensus
that a transformation of the energy systems is required if the disastrous impact of climate
change were to be reversed. This would require rapid diffusion and development of low
carbon energy technologies, including from renewable sources; improving energy
efficiency; and promoting conservation 9 .
Recent years have seen a high growth rate of the renewable energy sectors. In 2006,
global new investment in renewable energy sources amounted to about US$ 71 billion – an
increase of 43% over 2005. US$ 15 billion of this amount was invested in developing and
emerging countries. 10 According to UNEP 11 , some US$ 155 billion was invested in 2008
in clean energy companies and projects worldwide, of which US$ 117 billion went to
renewable energy projects, an increase of over 60% over 2006.
Green and renewable energy technologies have been recognized as particularly
appropriate for developing countries. In the context of rural areas where insufficient
transmission and distribution infrastructure is a problem, producing renewable energy
locally can offer a viable option. The broadening of energy mix and fuel sources can
increase national energy security by reducing the amount of absolute imports. An
8
UNCTAD, Trade and Development Report, 2009.
Ockwell, David et al. (2009), “Low Carbon Development: The Role of Local Innovative Capabilities”
10
GTZ Report on “Energy-policy Framework Conditions for Electricity Markets and Renewable Energies 23
Country Analyses” Eschborn, September 2007.
11
UNEP(2009) Global Trends in Sustainable Energy Investment
9
4
expansion of the national renewable energy sector can create local employment
opportunities and provide economic opportunities for developing countries to
commercialize produce and export these technologies. 12
The Renewable Energy Policy Network for the 21st Century (REN21) labels the
renewable energy sector as one of “guaranteed-growth” and “crisis-proof”, due to the
formidable investment trends throughout the past decade. In the mist of the financial crisis
in 2008, at least 160 publicly traded renewable energy companies worldwide had a market
capitalization greater than US$100 million. India emerged as a major producer of solar PV,
with new policies leading to US$18 billion in new manufacturing investment plans and
proposals by a number of companies. 13 China has doubled its installed wind power
capacity every year for the past five years, and is on pace this year to supplant the United
States as the world’s largest market for new installations. 14 According to a recent report, it
is estimated that China’s ‘green-technology’ market has the potential to grow to US$1
trillion and make up 15 per cent of GDP by 2013. 15
By early 2009, at least 73 countries have set policy targets for renewable energy
sources and at least 64 countries introduced promotion mechanisms 16 , including at least 23
developing or emerging countries. A number of large developing countries such as India,
China and Brazil, have managed to catch up fairly rapidly with technological leaders in
certain renewable energy sectors such as wind and solar. A number of factors have been
key to their success, including a strong commitment of national governments, policies to
encourage and facilitate technology development and deployment, and to support the
innovative capabilities of local firms and research institutes. Also important are bilateral
and multilateral collaborative initiatives along the entire spectrum of research and
development, demonstration and deployment (RDD&D).
III. Emerging Renewable Energy Technologies
The International Energy Agency defines renewable energy as follows:
“Renewable Energy is derived from natural processes that are replenished constantly. In
its various forms, it derives directly or indirectly from the sun, or from heat generated deep
within the earth. Included in the definition is energy generated from solar, wind, biomass,
geothermal, hydropower and ocean resources, and biofuels and hydrogen derived from
renewable resources.” 17
12
http://blogs.worldbank.org/technology-transfer-climate-context, 2009-10-12.
13
REN21, “Renewable Global Status Report: Energy Transformation Continues Despite Economic Slowdown”.
14
Peter Fairley, “China's Potent Wind Potential”,http://www.technologyreview.com/energy/23460/, September 14, 2009.
15
China Greentech Initiative’s report, Environmental Finance, 17 September 2009, www.wbcsd.org
16
REN21, Renewables Global Status Report, 2009 Update.
International Energy Agency (IEA) Statistics, Renewables Information (2009 Editions). For the purpose of
this Paper, traditional biomass will be excluded because it is not considered sustainable.
17
5
The range of renewable energy technologies is vast; their strengths and weaknesses
depend on the type of application and location (Box 1):
Box 1: Overview of the range of renewable energy sources
•
Hydropower: established, suitable for small (micro-hydro) and large-scale
applications;
•
Wind power: established and cost-effective, particularly on a large scale;
•
Solar photovoltaic (PV): established, close to diesel in economic terms on a smallscale, expensive on a large-scale, can be appropriate for remote rural electrification
but auxiliary equipment often not reliable;
•
Solar thermal: established for hot water systems;
•
Biomass (forestry, crop residues etc): established and cost-effective, particularly on
a large scale;
•
Marine (wave/tidal): needs more developmental work, has been commercialized but
not been widely adopted (limited number of suitable sites and expensive
construction); and
•
Geothermal: has been used but not well established; hot/dry rock geothermal energy
in combination with geothermal storage is being investigated for the future.
Source: Wald, Matthew, Scientific American, March 2009, pages 50-55
Renewable energy can contribute to all energy sectors, including electricity
generation, water and space heating, transport fuels, and rural (off-grid) energy. Though
the total shares in global energy supply remain low, renewable energy from wind, solar,
hydro, modern biomass (including modern biofuels, but excluding traditional biomass) and
geothermal supplies 5.4 percent of the world’s final energy consumption (see Figure 3).
About 70 percent of this modern renewable energy is hydropower. Wind accounts for the
second largest share in renewable electric power capacity, followed by small hydro.
Biomass, solar and geothermal provide hot water and space heating for buildings and
biofuels for transportation sector, though their contribution is still rather small, or less than
one percent of the energy supply 18 (see Annex 1 for detailed information on alternative/new
renewable energy technologies).
18
Schock, Robert N., “Energy Technologies for the 21st Century—The Roles of Renewable Energy”, Center for Global
Security Research, Lawrence Livermore National Laboratory, University of California, Livermore CA 94551.
6
Figure 2: Renewable energy share of global final energy consumption
Source: REN21: Renewables 2007 Global Status Report, 2008a.
Figure 3: 2007 product shares in world renewable energy supply
Source: International Energy Agency (IEA) Statistics, Renewables Information (2009 Editions)
In rural off-grid areas, renewable energy resources have a huge potential to provide
electricity to remote villages. In particular, wind, small hydro, solar PV, and biomass can
contribute significantly to rural electrification. 19
Wind: There are many potential sites for wind turbines. The most promising sites for
wind power development are located in mountainous and coastal areas, and in many cases
these places tend to be distant from the national grid, thus posing significant challenges.
Solar PV: Solar irradiation is abundant in most developing countries. In remote and
isolated areas, grid extension is not economically viable and diesel power generation is
costly because overland transportation of oil through mountainous roads or across the
19
Miyazaki, Masahiro, NEDO Report: “Renewable energy issues: NEDO’S experience in South-East Asia” New Energy
and Industrial Technology Development Organization, Japan (NEDO).
7
oceans is very costly, irregular and sometimes impossible, in particular, during rainy
seasons. In such cases, a stand alone PV system can be the most cost efficient option.
Small Hydro: The potential for small hydropower is large in developing countries.
However, hilly and mountainous areas with mini-hydro potential are sometimes too
sparsely populated for cost-efficient mini-hydro projects. In recent years, Asian countries
have placed great importance in developing mini-hydro for rural electrification and
economic development. The trend is that governments are shifting from their own planning
and management to allow the private sector to invest in small hydro projects. The
electricity cost from mini-hydro can be less than that from fossil fuel power plants, but the
high upfront cost is the most significant barrier.
Biomass: Wood and agro-industrial residues (e.g. cogeneration by sugar, rice, and
palm oil residues) can be used to supply heat and power generation. However, in many
developing countries, the technologies currently used are outdated and inefficient. If
efficient technologies are adopted, these residues can be used to produce a tremendous
amount of electricity. To make a project profitable, the plant should be large enough to
benefit from economies of scale to reduce collection and production costs.
As these technologies are mostly developed and produced in developed countries, the
increase of overall use of renewable energy in developing countries means an increase in
the transfer of the technologies from developed to developing countries. The transfers may
involve various forms depending on the arrangement and needs. Some are knowledge
alone; some equipment alone; and some both. A number of challenges involve the
techniques for production, generation, transmission and distribution of the energy supplied
by the renewable sources, which may require significant investment in appropriate
infrastructure, research and development and an integrated policy approach. Also inherent
in the transmission and distribution process are challenges such as an inherent low-energy
density, low efficiency of conversion, intermittent availability in some of the key areas, and
development of advanced, efficient and inexpensive energy-storage technologies need to be
taken into account.
Initiatives to overcome these technical obstacles will play a very significant role for
successful and effective adoption, transfer, and development of such technologies. These
policy-driven initiatives will have to take into account cross-cutting factors, such as legal,
regulatory, institutional, financial, infrastructure, market, political, social and cultural
issues. Consumer awareness for alternative energy sources and use calls for measures to
increase information flow and transparency.
IV.
Promoting the development and deployment of renewable energy
technologies
It has been widely recognized that public intervention is needed to stimulate innovation
in renewable energy technologies. The often cited reasons are: first, carbon-intensive
technologies benefit from a competitive advantage since the external costs related to them
are usually not reflected in the market price and therefore this price distortion reduce the
8
transfer and the market penetration of renewable energy technologies 20 , and second, the
larger social benefits of the investment in renewable energy technologies cannot be fully
captured by individual firms. Therefore there is a lack of incentive for the private sector to
raise their investment to socially optimal levels. Hence, current frontrunners in renewable
energy technologies have benefited from public policy interventions backed by legal and
regulatory framework. For instance, wind power became viable only when the EU, USA
and other governments provided active support through R&D spending and subsidies 21 .
The issue of transfer of technology is at the heart of the global renewable energy and
low-carbon economy debate. The economic reality is that many developing nations are
unlikely to “leapfrog” pollution-intensive stages of industrial development without a
commitment by developed nations to assist in providing access to the technologies
needed 22 . Fortunately, many of these technologies already exist in the public domain and
can be made available where they are needed. The increase in the overall use of renewable
energy in developing countries means an increase in the need of international transfer of
technologies from developed to developing countries. However, the discussion on
technology transfer does not adequately address the importance of the flow of knowledge –
the know-how, and know-why, which are key to the building of local innovative
capabilities 23 . Transfer of technology does not replace, but rather compliment domestic
efforts for capacity-building, which should be supported by domestic policies that foster
learning 24 . It is, therefore, crucial to deconstruct the issue at hand so as to better understand
the various barriers, risks and opportunities of technology transfer.
Technology can be regarded as a piece of information that is akin to knowledge and that
generates economic profit. A transfer of technology is a learning process, whereby
knowledge is being understood, used, and replicated. Both the transfer of technological
“hardware” and “software”, i.e. the final products or services and the relevant human
capacities and skills, organizational development and information networks are important
in determining success of a technology transfer. Technology transfer may take in various
different modes. Most commonly, it occurs either through consuming products or services
that incorporate the technology or licensing the capability to produce such products, either
by an indigenous firm or through a joint venture arrangement. Technology transfer also
may appear in the form of helping region or a nation develop its own capability to research
and produce the products. Other important channels of transfer have been through foreign
direct investment, technical assistance programs, including trainings and capacity-building
in technical skills, policy formulation, project management, development and monitoring,
application and commercialization (see Annex 2), either from multilateral (GEF/WB,
development banks)or bilateral (ODAs) donors. A significant barrier to successful
technology transfer is related to the issue of inadequate absorptive capacity: whether
knowledge and expertise are diffused as part of a transfer process depends on whether the
recipient firm has developed the necessary absorptive capacity that will allow it to take
20
UN GA 2009 “Promotion of new and renewable sources of energy” A/64/277
UNCTAD, Trade and Development Report, 2009
22
Sauter, R & Watson, J (2008), “Technology Leapfrogging: A Review of the Evidence”, DFID
23
Ockwell, David et al. (2009), “Low Carbon Development: The Role of Local Innovative Capabilities”
24
See UNCTAD (2003) Investment and Technology Policies for Competitiveness: review of successful
country experiences.
21
9
advantage of collaborations with frontrunner suppliers of technology. Absorptive capacity
is typically defined as the ability to recognize the value of new information, assimilate it,
and apply it to commercial ends 25 . However, the term is perhaps more useful when applied
in a country context and considered as “the ability to learn and implement the technologies
and associated practices of developed countries” 26 .
Technological capabilities, along with knowledge and institutions are important
determinants of national absorptive capacity 27 . Technological capabilities are especially
important in that they determine the existing stock of resources (which may include
knowledge, skills that enable exchange within and between different actors) and the
potential for generating and managing technical change 28 . How technological capabilities
accumulate over time is a crucial aspect of the technology transfer in that it has implication
on the scalability of the technology and its overall economic impact. Increasingly, due to
product specialization, technological accumulation has become less automatic with the
expansion of production capacity. One way of overcoming this barrier would be to address
education and training needs so as to equip firms with the “know-how” and “know-why” in
assessing, operating and improving a technology. National systems of innovation and
international collaborative R&D and information sharing initiatives may have a central role
to play in facilitating technology transfer in this regard.
Furthermore, a technology’s stage of development deserves important considerations.
For example, where technologies are at early pre-commercial stages of development,
barriers related to both horizontal (from one geographic location to another) and vertical
(through different stages of the value chain) transfer need to be overcome. 29
In addition, access to intellectual property such as patents may be needed in order to
facilitate technology transfers. The mainstream view is that even given unhindered access
to intellectual property rights (IPRs), technology transfer can only occur if developing
countries find ways of overcoming significant barriers related to absorptive capacity,
technological capability, local adaptation, and market and institutional structure etc. Often
it is the case that, irrespective of IPR barriers, a latecomer firm faces great difficulties in
catching up with a frontrunner because the ability to begin using a technology involves
possessing certain trade secrets and tacit knowledge. However, there is mixed empirical
evidence in support of this view. It has been suggested that further empirical analysis
should focus “on issues such as: the extent to which IPRs as a barrier to technology transfer
vary according to the stage of technology development or the specific nature of the
technology; the relationship between the strength of the IPR regime in a developing country
and the extent to which this fosters technology transfer; the potential for overcoming IPR
25
Cohen and Levinthal (1990), "Absorptive capacity: A new perspective on learning and innovation",
Administrative Science Quarterly, Volume 35, Issue 1 pg. 128-152
26
Narula,Rajneesh & Criscuolo,Paola, 2002. "A novel approach to national technological accumulation and
absorptive capacity: Aggregating Cohen and Levinthal”, European Journal of Development Research, Taylor
and Francis Journals, vol. 20(1), pages 56-73
27
Sauter, R & Watson, J (2008), “Technology Leapfrogging: A Review of the Evidence”, DFID
28
Bell and Pavitt, 1993 M. Bell and K. Pavitt, Technological accumulation and industrial growth: contrasts
between developed and developing countries, Industrial and Corporate Change 2 (1993), pp. 157–210
29
Ockwell
10
issues via international collaborative R&D initiatives on technologies at a very early stages
of development with the aim of making the IPR available as a free, or low cost, public
good” 30 .
Another mode of technology transfer touches upon an important aspect of development
pathways- how on the back of international technology transfers developing countries may
achieve a technology paradigm shift. Rather than considering the process of technology
transfer as one that results in technological accumulation, the idea is that a more radical
innovation can provide additional ‘windows of opportunity’ for developing countries 31 . In
fact, this is admittedly the most arduous yet rewarding way in which latecomer nations may
catch-up with the economic and technological process of advanced nations. The level of
integration of the transfer process, whether knowledge and skills have been acquired at an
early enough stage, seems to be very important in determining whether latecomer firms can
at later stages of technology development adapt and innovate. The “know-why” knowledge
- knowledge of the processes that lead to new innovations and why they work - is closely
related to innovative capabilities. Equally important are setups and structures embodied in
national innovation systems that facilitate technical and institutional exchanges of firms,
researchers, and policy makers in creating the right innovative milieu.
The technology transfer debate should also look at the larger market framework in order
to better capture the economic reality that many developing countries face. In particular,
market size is a concern for smaller developing countries with a limited domestic energy
consumption market. Contrasting this with countries like China and India where
frontrunner firms are likely to benefit from the transfer in exchange for access to the
countries’ large markets, it becomes clear that creative solutions are needed for smaller
developing countries to gain access to certain technologies.
The Clean Development Mechanism (CDM), established by the Kyoto Protocol of
the United Nations Framework Convention on Climate Change (UNFCCC), has the
potential to provide an important impetus to the transfer of renewable energy (as well as
other low-carbon) technologies in developing countries. Whilst the main objective of the
CDM is to reduce greenhouse gas (GHG) emissions, increasingly more projects have been
developed in the area of renewable energy technologies.
The present CDM project
pipeline in terms of geographical distribution is unequal with large emerging economies
such as China, India, Brazil and Mexico being the leading host countries with a combined
share of 75 per cent of the total project pipeline. The shares of Africa, the Middle East, and
Europe and Central Asia, remain small. It has been argued that, domestic policy measures
have played an important role for developing countries to reap the benefits from CDM. For
example, in the case of China, a significantly lower tax 32 is placed on revenues generated
from the transfer of certified emission reductions (CERs) in renewable energy technologies,
thereby encouraging more projects to go into these sectors.
30
Lewis, JI, Wiser, RH (2007), “Fostering a renewable energy technology industry: An international
comparison of wind industry policy support mechanisms”, Energy Policy 35 (2007) 1844–1857
31
Sauter, R & Watson, J (2008), “Technology Leapfrogging: A Review of the Evidence”, DFID .
32
Order 37 Administrative measures for operation and management of CDM projects stipulates for example,
the percentage of revenue allocation to the states as follows: 65% for HFC projects, 2% for renewable energy
projects. Source: Ernst & Young(2009) China turns green on taxation
11
It is apparent that the processes involving access, transfer and deployment are
developmental issues rather than merely technical issues. The case studies below illustrate
the importance of at least three elements in renewable energy transfer and development: (1)
the reforms of legal, regulatory and institutional frameworks to increase consistency and
coordination in policy and operations of line ministries; (2) massive investment for largescale, systematic and long-term training, capacity-building, and RDD&D activities and the
support of networks of domestic and international research institutions to improve local
absorptive capacities, diffusion and deployment; and (3) the promotion of public-privateinternational partnership and collaboration to overcome the major parts of the technical and
financial constraints. As will be demonstrated in the cases of India, Brazil and China,
renewable energy development has benefited from various policy mechanisms, notably
financial and tax incentives, favourable customs duties, export credit assistance, and public
support for RD&D programmes 33 .
Renewable energy projects and country case studies
Many national projects and programmes on renewable energy technologies have
been successful in attracting interest from donors. Yet significant challenges remain
including, inter alia, resistance by vested interests such as incumbent utilities or suppliers
of traditional or fossil fuel-based energy sources; lack of awareness of national or subnational institutions of local conditions and needs; failure to engage local communities on
the grassroots level, lack of knowledge and understanding of available technologies on the
part of local communities, lack of incentives for private sector investment and coordination
between government policies that deal with rural development, electrification, renewables
and poverty reduction.
Arguably, renewable energy technology donor projects are more likely to succeed, if
they are linked to (or are part of) other development projects. For example, in Malawi,
Ethiopia and Uganda, the transfer of cooking stove technology has not only brought about
improvement of basic living and health conditions (owing to improved indoor air quality
and hygiene in the kitchen), commercial production has also been established successfully.
The producer groups are mostly rural women, who have acquired production, marketing
and other entrepreneurial skills from the projects and have benefited from this business
opportunity. 34
AusAID 35 has identified the following success factors for renewable energy projects:
•
Economic viability, which initially may need government supports in lowering tariff
and/or non-tariff barriers;
•
Linking energy technologies with social, economic and developmental aspects of a
country;
33
Bell and Pavitt, 1993 M. Bell and K. Pavitt, Technological accumulation and industrial growth: contrasts
between developed and developing countries, Industrial and Corporate Change 2 (1993), pp. 157–210.
34
GTZ Report, “Energising Development,” June 2009.
“Power for the people: renewable energy in developing countries” A Summary of Discussion at the Renewable Energy
Forum, Canberra, 18 October 2000, Hosted by the Australian Agency for International Development (AusAID).
35
12
•
Affordability 36 ;
•
Appropriate technologies that suit the natural endowment of the country;
•
Reliability and sustainability, which involve training and capacity building for local
community to maintain and service equipment.
Box 2: Barefoot College: Bottom-Up approach to technology transfer and local
empowerment
•
Founded in 1972 by Bunker Roy in the village of Tilonia in Rajasthan, India,
Barefoot College was built “by the poor for the poor”. Roy was convinced that
solutions to rural problems lay within the community: By giving the rural poor
access to practical technology, Barefoot College demystified and put technology
and in the hands of the villagers themselves.
•
The solar engineering programme provided training in the installation of PV solar
systems, and in the wiring, installation, maintenance, and spare parts construction
in off grid villages, targeting semi-literate and illiterate women from rural
villages. The training programme led to the installation of 8700 solar units and
manufacturing of 4100 solar lanterns without the help from urban professionals.
More than 574 villages and 870 schools now had access to solar electricity.
The programme received funding from the European Commission, Asian
Development Bank (ADB), UNDP and the Indian Ministry of Non-Conventional
Energy Sources.
•
•
The Barefoot approach was replicated in 13 states in India and many developing
countries in Asia and Africa.
ADB, UNDP, Skoll Foundation, Foundation
Ensemble (Together Foundation), Het Groene Woud (The Green Forest) and the
Indian Technical and Economic Cooperation Division supported its replication in
Ethiopia, Afghanistan, Bolivia, Bhutan, Cameroon, Gambia, Malawi, Mali,
Mauritania, Rwanda, Sierra Leone and United Republic of Tanzania.
A number of developing countries, in particular, Brazil, India, and China, have been
successful in promoting the deployment of renewable energy technologies and also the
development of indigenous capabilities. Some common elements underlying their success
stories are: national development and energy strategies, large-scale and long-term
infrastructure investment and financial supporting structures for technology transfer,
development and deployment; reforms of legal and regulatory frameworks; large-scale and
36
For example, 20Watt access may provide affordable to a small, affordable power for 10-watt light bulbs,
making a big improvement over candles, whereas 100 watts may be unaffordable for many poor people.
13
systematic training, capacity-building, and R&D activities; supports for commercialization
and export promotion, and public-private-international partnership and collaboration.
India
The Government of India has pledged to provide electricity to all rural settlements
under the national strategy “Mission 2012 – Power for all” under the auspices of the newly
adopted Renewable Energy Plan 2012 and the Electricity Act of 2003. 37 The Plan, which
provided basic electricity supplies to all villages by the end of 2007 and plans to supply
electricity to all households by 2012, has relied on both small-scale and large-scale projects
in its execution. For small-scale projects, the focus has been to improve remote village
electrification and decentralized energy systems, such as family type biogas plants,
improved chulha (cooking stove), solar street lighting system and home lantern, solar water
heating systems, aero-generator/hybrid systems and solar photovoltaic pumps. For largescale projects, the major shift has been to privatize the electricity sector into generation,
transmission and distribution companies. The government also plans to introduce
additional regulations, such as quota regulation, preferential tariffs and preferential prices
so as to increase the opportunity for growth in the use of renewable energy sources, and
promote private sector participation and commercialization in the renewable energy sectors.
Over the past 10 years, India has established itself as an important location for wind
turbine manufacturing. 38 In 2005, Indian companies boasted a 62% of market share at home
and had expanded abroad with a 6% global market share. 39 Indian manufacturers partially
co-operated with foreign companies through joint-ventures or licensing agreements, and
have increasingly focused on exports. The Indian manufacturer Suzlon is ranked amongst
the top wind turbine manufacturer worldwide, followed by Enercon India and NEPC India
that specialize in producing small wind turbines. In the small hydro turbine sector, India
has a well developed network of producers and traders that provides the market with
complete systems as well as manufacturing components and spare parts. The key to the
Indian wind turbine success story can be attributed to the existence of a stable and sizable
domestic market that allows Indian manufacturers to put to test their technology and
manufacturing strategies and experiment with technology designs. 40
The Indian Ministry of New and Renewable Energy (MNRE) established separate
institutions that had responsibilities for policies, planning, research and development 41 , and
37
According to a draft by the government, it aims to • Achieve a 10% share (about 12 GW of installed capacity) of
national power supply from renewable energy sources • Provide electricity to at least 4,500 rural settlements (25% of the
18,000 villages without electricity) on the basis of renewable energies • Install 5 million solar-powered lanterns and 2
million solar home systems.
38
Technical barriers to the development of wind energy has been the insufficiently developed grid, which renders
feeding-in impossible in many locations. Grid overloading and repairs has been the cause for connected wind farms to
stop at times of good wind power.
39
Lewis, JI, Wiser, RH (2007), “Fostering a renewable energy technology industry: An international
comparison of wind industry policy support mechanisms”, Energy Policy 35 (2007) 1844–1857
40
ibid.
Solar Energy Centre, National Institute of Renewable Energy and Centre for Wind Energy Technology (CWET
41
14
financing 42 . In addition, a financial institution was established to provide concessional
financial support to the renewable energy sector, and a country-wide implementation
network was created that consisted of state nodal departments, state nodal agencies,
autonomous commercialization, NGOs, R&D institutions, financial institutions and private
entrepreneurs. With regards to funding mechanisms, other financial and fiscal incentives
have been provided by government subsidies, credits, soft loans and fiscal incentives, such
as VAT exemption, reduced import duties, reduced income taxes. Other sources include
Industrial Development Bank of India (IDBI) and the International Finance Corporation
(IFC), private banks and micro-financing institutions. India was also amongst the first
countries to benefit from CDM financing.
Brazil
In 2002, a law was passed to provide a framework for policies promoting renewable
energy sources. The PROINFA (Programa de Incentivo às Fontes Alternativas de Energia
Elétrica) was subsequently designed to promote the deployment of renewable energy
technologies through incentives and subsidies.
In Brazil, academic institutions have benefited from renewable energy capacitybuilding activities, strengthened through international cooperation. For example, the
Federal University of Pernambuco, in partnership with a regional private energy supply
company, has developed expertise in the area of solar radiation as well as in solar PV.
Training activities for energy and finance experts have been assisted by German assistance
programs through InWEnt and German Wind Energy Institute – DEWI). Brazil has also
taken part in the international research project – the SolarPACES project (Solar Power and
Chemical Energy Systems) through CEPEL (Centro de Pesquisas de Energia Elétrica).
Funding for hydro, wind and ethanol projects come from various sources, nationally
and internationally. The Brazilian Development Bank BNDES provides low-interest loans
funds available for 12 years to cover up to 80% of the costs. The support from the USAID
through the International Development Institute Winrock aims to promote the use,
development of renewable energies in the north and north east regions. The concession
fees, subsidy fund, and remuneration arrangement are covered partly by ANEEL, the
federal government, the power supply companies through the PROINFA program. The
government also places expectation through the sale of emissions certificates to be realized
under the CDM.
Brazil also hosts a large number of CDM projects, most of which in the area of
renewable energy.
China
The Renewable Energy Law came into effect in China in 2005. The Law, with its
implementing regulations, provides the policy framework for the renewable energy sector.
According to the Medium and Long-Term Development Plan for Renewable Energy of
42
Indian Renewable Energy Development Agency (IREDA
15
2007, these policies aim at establishing a “basic system of renewable energy technologies
and industry” by the year 2010.
Specific policy measures have been directed to promoting the growth in the area of
wind energy. The past few years have witnessed the rise of a number of Chinese wind
turbine manufactures, mostly Goldwind, Donfang, and Sinovel. They have followed
similar paths in technological learning and development, through licensed production
designed by German companies such as Repower and Fuhrländer, and joint research and
development with Chinese research institutes and universities. Government policy support,
in the form of research grants and subsidy and tax incentives have been important.
Central to the rapid development of the Chinese wind sector, is the role of research
institutes and universities, which work closely with the firms, often supported by policy
measures that provide incentives for joint and collaborative projects. For example, under
the Ministry of Science and Technology (MOST), the Energy Department of Shenyang
Industry University successfully developed in 2005 an adjustable pitch and variable speed
double feed turbine of 1 MW capacity commissioned by Goldwind. In 2006, a 1.5 MW
version of the same turbine was developed and released in the market. 43 There are several
research institutes at Tsinghua University, and the Academies of Science, Engineering and
Social Studies which specialize in renewable energy technologies and related policies.
Since the mid 1990s, China has had strong foreign involvement in the renewable
energy sector through both private joint venture and bilateral and multilateral technical
cooperation programmes. The project for capacity-building and rapid commercialization of
renewable energy was conducted by the UNDP, assisted by the Global Environment
Facility (GEF) funds and the Australian and Dutch governments. The scaling up
programme for cost-effectiveness and removal of institutional and economic barriers for
large-scale wind and biomass projects was carried out in cooperation with the World
Bank/GEF.
V. Policy considerations
As seen in the case studies above, the effective diffusion and development of
renewable energy technologies require strong policy initiatives, large investments in
infrastructure, long-term commitment in R&D activities, and innovations tailored to local
opportunities, capabilities and needs. 44 Thus, the challenges are of a multidimensional
nature.
At the local and national level, a national plan needs to be established focusing on
specific conditions in upgrading science and technology capacity and connecting it to the
manufacturing capacity. The key success factor is the importance of policy consistency
between science and technology policy and those of other of the national development
43
He, Yulin, and Chen, Xinping. “ Wind turbine gernator systems. The supply chain in China: Status and
problems“. Renewable Energy 34(2009) 2892 -2897.
44
Dominique Foray, “Technology Transfer in the TRIPS Age: The need for new types of partnerships between the least
developed and most advanced economies, “ ICTSD Programme on IPRs and Sustainable Development, May 2009.
16
agenda. In order to promote renewable energy technologies within the national energy
system, there is a need public support to R&D, removal of trade barriers, and effective
capacity-building centres and networks for renewable energy technological innovation.
The science and technology policies and measures that are needed to promote transfer
and development of renewable energy technologies include:
•
Private sector development, which brings about private sector participation and upscale development progress. This can include establishment of business parks and
innovation clusters (such as wind farms or industrial zones for solar cell production)
to induce growth and commercialization. The link needs to be made with
investment and trade policies to attract foreign direct investment (FDI). As
illustrated by the experiences of Chinese and Indian turbine manufactures, licensing
arrangements, FDI and joint ventures could be important channels for technology
transfer and learning.
•
Supporting universities and public research centres, which are dedicated to
renewable energy technologies. These institutes/centres can be publicly funded or
through a mix of donor or public-private funding, and linked with global learning
networks, including the Diaspora. A sound National Systems of Innovation (NSI) is
a critical determinant for the success of technology transfer and development.
•
Providing incentives for R&D at firm level in private companies and supporting
technology deployment in market niches. These include government subsidies, and
other support measures such as tax credit for new power plants, targeted cheap
credits or financial guarantees.
•
Government procurement. Government can encourage private firms to adopt
renewable energy technologies by committing to an initial investment in the
application of the new technology. In fact, prices will fall with growing demand and
increasing return to scale so that it makes economically and commercially viable for
private firms to adopt new technologies. This should ease the “carbon lock-in” of
the current modes of production and consumption. 45
Other specific measures regarding standards, taxes, market incentives, price signals,
labeling regulations, regulatory measures (including building codes, fuel efficiency
standards and mandates for renewable energy use) need to be clear and predictable to
promote the effective transfer and development of renewable energy technologies. Some of
these measures include:
•
Portfolio Standard / Renewable Energy Quota Scenario (REQ)/ Mandatory Market
Share (MMS): a minimum share obligation of renewable energy is imposed on
electric utilities, for example 5 to 20 percent. 46 Renewable energy quotas and
45
Unruh GC and Carrillo-Hermosilla J (2006). Globalizing carbon lock-in. Energy Policy, 34 (14): 11851197.
46
“Assessing Policy Options for Increasing the Use of Renewable Energy for Sustainable Development:
Modelling Energy Scenarios for Ghana” UN Energy Report 2006 and “Assessing Policy Options for
Increasing the Use of Renewable Energy for Sustainable Development: Modelling Energy Scenarios for
Sichuan, China” UN Energy Report 2007.
17
portfolio standards are normally set as a target within a timeframe and tied to a
concession agreement. Such measures become increasingly popular due to the fact
that renewable energy quotas and portfolio standards have resulted in some low-cost
deployment of renewable energy, primarily on-shore wind energy.
•
Public Benefit Fund (PBF): a fund is created through a levy on electricity
transmission, which can be used for partly funding investments in renewable energy
technologies, normally up to one-third of the needed investment for wind and solar
technologies for an enterprise. As seen in the case studies, the funds are normally
administered at the national level.
•
CDM funding: an international promotion instrument under the Kyoto Protocol of
the UNFCCC, which offers investors the possibility of earning carbon credits
(CERs) if they undertake projects to deploy renewable energy technologies in
developing countries thus reducing GHG emissions. This has been the main
impetus for technology transfer in renewable energy for the past years.
•
Concession Programs, such as the wind concession program, used in China and
Brazil, whereby private developers can auction wind rights with the lowest bid per
kilowatt hour to win a geographic concession for a limited duration. This is also
tied to the sale of certified (carbon) emission reductions (CERs) generated by
renewables on the international market. 47
•
Feed-in tariffs. The feed-in laws have been enacted in some 50 countries. It
obliges utilities to purchase power generated from renewables at a certain price,
with a per-kilowatt/hour premium, set by the regulatory authority and therefore
offers producers of electricity from renewables at a guaranteed price for an agreed
amount of electricity produced and fed-in. When well designed and implemented,
feed-in tariffs provide a long-term price guarantee that reduces regulatory and
market risk of renewable energy. The success lies in the question of resources and
the grid-use arrangement by which producers may be required to contribute to the
costs of grid development. A less costly system is the combination of feed in and
quota systems, whereby only a ceiling amount of energy produced from renewable
source is guaranteed under the feed-in arrangement. 48
The renewable energy instruments listed above are selected options that can lead to an
increase in investments and effective deployment of renewable energy technologies. The
questions of success and cost-effectiveness depend largely on the choice of option(s),
which can be one or a combination of policy measures reinforcing each other, taking into
account local specific conditions, the renewable resources that are available, and national
framework for sustainable development.
At the regional level, collaboration can take the form of research centres and
networks of excellence for energy technologies, joint-ventures or bilateral projects. They
provide venues for exchanges of knowledge and experiences in basic research, technical
47
See footnote 46.
48
See footnote 38.
18
demonstration, business skill trainings, financial techniques, policy and regulatory advice
and support, market analysis to be adapted to local conditions and challenges. An example
of collaborative institutional and infrastructure networks is the Trans-European energy
networks (TEN-E) with aims to provide a stimulus for technology and capacity mapping
among the European Union member States. TEN-E was created under the Strategic Energy
Technology Plan (SET Plan) of the European Commission so that the EU institutions and
Member States can work together in research, development and innovation to drive down
the cost of existing energy technologies and bring about market development of
technologies for the sustainable energy system. 49
At the global level, as the UN Secretary General has called for a transition to a “green
economy” to address the current crises and transform the way in which the world produces
and uses energy. It is a call for countries to adopt low carbon paths in their development
goals. 50 Thus, international cooperation is indispensable and indeed vital in all fronts.
At the technical front, international organizations continue to provide support for
technical assistance in training, capacity-building, and strategic planning to promote new
and renewable energy sources and technologies (see Annex 2).
At the financial front, large-scale resource mobilization has been committed by the
World Bank groups, the Global Environment Facility (GEF) Fund, the proposed New Deal
Fund, the regional development banks and the international investor groups (REN21) to
accelerate investments in technological changes, thereby mitigating climate change impacts
and supporting economic diversification and creating employment opportunities.
At the political front, it is necessary to address the unresolved issue of how to balance
trade and IP regimes for technology transfer, processes and production methods. Measures
such as subsidies, public funding, preferential loans, export credits guarantees, and local
content requirements are and will continue to be used to support the transfer and
development of these technologies. International efforts should actively promote NorthSouth and South-South cooperation in the development of renewable energy technologies.
The World Business Council for Sustainable Development (WBCSD), inspired by the
success of the open source software community, launched the Eco-Patent Commons 51 in
January 2008, which contains patents for environmentally beneficial technologies donated
by member companies which are freely available for open access on the WBCSD website.
Similarly, there have been calls for a global technology patent pool which would
significantly reduce the licensing costs, ensure timely technology transfer and its broader
benefit for sustainable development.
On the issue of intellectual property rights (IPRs), the latest Trade and Development
Report 2009 of UNCTAD argues for the importance to strike a balance between IPRs and
global public interest. The Report encourages applying the same kind of flexibility given to
49
http://ec.europa.eu/energy/infrastructure/tent_e/ten_e_en.htm, Decision No 1364/2006/EC of the European
Parliament and of the Council of 6 September 2006 laying down guidelines for trans-European energy
networks
50
http://www.viennaenergyconference.org/
51
WIPO Magazine, “Sharing Technology to Meet a Common Challenge, Navigating proposals for patent
pools, patent commons and open innovation,” April 2009.
19
pharmaceutical products in the TRIPS agreement to renewable energy technologies,
namely, to grant compulsory licensing to climate change related patents (low carbon
technologies). It has also been argued 52 that focus of the debate on IPR and technology
transfer has been very much on access, without sufficient attention to the tacit aspects of
knowledge, especially the “know-why”, which is often not described in patents. Access to
and mastery of this knowledge is important to overcoming barriers to technology
development and innovation. The importance of supporting local absorptive and innovative
capabilities should be emphasized.
Intergovernmental fora such as the CSTD could provide a platform for the sharing of
good practice examples and promoting North-South, and South-South partnerships. For
example, an in-depth study of projects such as the Barefoot College of India might provide
useful insights for strategies in promoting renewable energy technologies for development,
as well as promoting South-South cooperation.
VI. Issues for discussion
Science, technology and innovation in general, and renewable energy technologies in
particular can play a vital role for the achievement of the MDGs and other internationally
agreed development goals. To reap their benefits, concerted efforts are needed at the local,
national, regional and international levels.
Yet, in most countries, renewable energy policy is the mainstay of environment
ministries, and overall energy policy is the responsibility of energy or economy ministries.
Energy planners and economic planners in most developed countries use sophisticated tools
and processes to determine the optimal energy mix and expansion plan for their countries’
energy system, taking into account their countries’ unique economic, environmental and
social aspects. Similarly, optimal mixes of policy instruments have been designed and
“tested” by trial-and-error, sometimes at rather large costs, and especially in relation to
renewable energy technologies. Officials in environment and energy ministries would also
agree that technology and innovation were central to an efficient energy system that
promotes economic growth, development, and mitigates environmental impacts.
Against this background, it is surprising, how rarely science, technology and
innovation policies enter the debate about renewable energy, especially in developing
countries. The examples presented in the paper provide a glimpse of the magnitude of the
potential development benefits that might arise from the recognition of the centrality of
science, technology and innovation policies also in the area of renewable energy
technologies.
In this context, CSTD experts are encouraged to consider all the issues raised in this
paper and discuss in particular the following questions:
1. Role of S&T ministries in the debate on renewable energy:
o With energy/economic planners in charge of energy strategies and energy
mix, and environmental officers in charge of renewable energy, what should
52
Ockwell David et al. (2009), “Low Carbon Development: The Role of Local Innovative Capabilities”
20
be the role of science and technology ministries in the debate on energy and
renewable policy in developing countries?
2. Contribution of renewable energy technology regimes to the MDGs:
o Can we identify particular renewable energy technology regimes that are
ideally suited to promote development and contribute to the achievement of
the MDGs? How does the link work? What recommendations (if any) could
be made to policy makers?
3. Inter-ministerial coordination and policy coherence: In order to ensure policy
coherence, there appears to be a need for an inter-ministerial group or other
coordination mechanism to encourage the transfer and development of renewable
energy technologies, which besides the S&T ministries might include energy,
environment, and trade ministries, energy planning groups, investment promotion
agencies, IP organizations, and research institutions.
o What is the experience with such comprehensive coordination in your
country? Has it been effective or not and why?
o Is a formal or informal arrangement preferred?
4. Building on good practices in developing Asia: Many of the good practice
examples in Asia have typically followed comprehensive, interdisciplinary and
phased policies that were geared to ultimately develop their countries’ own science
and technology capacity and development of renewable energy technologies.
o Is such experience applicable to developing countries in other regions?
Why?
o Should national or local governments promote business and innovation
parks? How comprehensive should such an approach be?
o How important is R&D on renewable energy technologies in developing
countries? Do developing countries need to promote research on
technologies tailored to poor countries and particular climatic conditions?
What are the key considerations?
o Should the CSTD be encouraged to recommend broad guidelines for
consideration by governments for such an approach?
21
VII. Selected References
Foray, Dominique. “Technology Transfer in the TRIPS Age: The need for new types of
partnerships between the least developed and most advanced economies, “ ICTSD
Programme on IPRs and Sustainable Development, May 2009.
GTZ, “Energy-policy Framework Conditions for Electricity Markets and Renewable
Energies 23 Country Analyses” Eschborn, September 2007.
GTZ, Technical and Economic Potential of Wind Powered Water Desalination, January
2009
IAEA 12th Scientific Forum, Energy for Development, Vienna International Centre, 15-16
September 2009.
IEA Statistics, Renewables Information, 2009.
IEA: Energy Balances of Non-OECD Countries, 2008
Miyazaki, Masahiro, NEDO Report: “Renewable energy issues: NEDO’s experience in
South-East Asia” New Energy and Industrial Technology Development Organization,
Japan (NEDO).
Ockwell, Ely, Mallett, Johnson and Watson, “Low Carbon Development: The Role of
Local Innovative Capabilities,” Economic&Social Research Council, 2009.
“Power for the people: renewable energy in developing countries” A Summary of
Discussion at the Renewable Energy Forum, Canberra, 18 October 2000, Hosted by the
Australian Agency for International Development (AusAID).
REN21, “Renewable Global Status Report: Energy Transformation Continues Despite
Economic Slowdown”.
REN21 Renewable Energy Policy Network for the 21st Century, Renewables Global Status
Report 2009 Update, www.ren21.net/globalstatusrepot/g2009.asp
Riso DTU, “Network Regulation and Support Schemes - How Policy Interactions Affect
the Integration of Distributed Generation,” 10 October 2009.
Schock, Robert N., “Energy Technologies for the 21st Century—The Roles of Renewable
Energy”, Center for Global Security Research, Lawrence Livermore National Laboratory,
University of California, Livermore CA 94551
UN General Assembly, Sixty-fourth session, Sustainable development: Promotion of new
and renewable sources of energy, 10 August 2009.
UNCTAD, Trade and Development Report 2009.
Wald, Matthew, Scientific American, March 2009, pages 50-55;
World Economic and Social Survey 2009, Promoting Development, Saving the Planet,
Department of Economic and Social Affairs, United Nations, 2009.
22
Wytze van der Gaast and Katherine Begg, EU funded ENTTRANS Report, „Enhancing the
Role of the CDM in Accelerating Low-Carbon Technology Transfers to Developing
Countries”.
UN ESCAP, “An Innovative Approach to Municipal Solid Waste Management in Least
Developed and Low-Income Developing Countries,” Regional Seminar & Study Visit
on Community-based Solid Waste Management, December 2007.
UNEP, Global Trends in Sustainable Energy Investment 2009.u
WIPO Magazine, “Sharing Technology to Meet a Common Challenge, Navigating
proposals for patent pools, patent commons and open innovation,” April 2009
23
Annex 1. An Overview of Alternative/New Renewable Energy Technologies
(a) Generating Electric Power. “No technology provides a one-size-fit-all” solution, but a combination can create a robust energy
supply.
Technologies
Hydropower
Status/Price
Advantages
Drawbacks
Hydro-generated
electricity
currently
center
around
2
cents/kWh, but are
estimated to be as high
as 10 cents/kWh for
some
systems
(Johansson
et
al.,
2004).
A mature technology,
easily dispatchable.
Large
(10-MW)
hydroelectricity
systems account for
25 EJ/yr of global
energy (BP, 2004),
providing 17% of
global electricity and
avoiding
releasing
0.6 GtC/yr of carbon
into the atmosphere
compared to the same
amount of coal-fired
power generation.
It
is
currently
burdened
with
environmental (river
and stream aquatic
life)
and
social
(displacement
of
populations) issues.
Also, the issue of
intermittency
has
surfaced in Brazil
during a period of
prolonged drought in
a region used to
relying on significant
rainfall
and
in
California
during
periods
of
low
mountain
snowfall
and
subsequent
runoff.
SolarThermal
Energy radiating from
the sun has enormous
potential for heat and
electricity production.
Utilizing solar photons
to create free electrons
in
a
photovoltaic
The
technical
potential is three
times present use
today. May be the
most amenable to
storage
of
renewables.
Investment cost is
still very high. Needs
flat
land;
best
resources may be
distant from existing
transmission; disturbs
pristine
desert
24
Policies direction on S&T,
Investment, and R&D
Hydropower
projects
under
construction will increase the
electricity share by about 13
percent for a total electricity share
of just under 20 percent (World
Energy Council, 2004a). About 25
percent of water reservoirs in the
world have associated generation
facilities, but many more irrigation
and urban water supply schemes
could add hydropower generation.
BP estimates there is the capability
to produce 60 EJ of energy from
large hydropower systems (BP,
2004).
Policy consideration to combine
power from a thermal generation
facility or a wind farm is useful to
pump water up to a reservoir in
off-peak hours, to be converted
back into electricity during periods
of peak demand with the pump
acting as a turbine.
Not to be overlooked is the
potential of passive solar power.
Buildings can be designed to use
efficient solar collection for
passive space heating, heating
water,
and
cooling
using
absorption chillers or desiccant
Applications
and
Potential
impacts on Development
Small hydropower systems (<10
MW) have provided electricity to
many rural communities in
developing countries, such as
Nepal, but in total generate only
slightly less than 1 EJ/yr of power
(World Energy Council, 2004a).
Particularly increased in several
Asian and African countries.
High-temperature,
solarconcentrated thermal power (CSP)
generating plants are best sited in
areas with high direct solar
radiation, usually at lower
latitudes. In these areas, one
square kilometer of land is enough
system today produces
over 1 GWe. Solar
thermal production of
electricity
using
radiation
heating
produces slightly less
than half that amount.
Trough systems are
commercial;
power
towers
have
been
demonstrated.
19.9 – 28.1 cent/kWh
(through trough).
SolarPhotovoltaic
At
present,
solar
photons creating free
electrons
in
a
photovoltaic
system
produces over 1 GWe.
Commercial modules
are
up
to
18%
efficiency and generate
electricity
in
high
sunshine regions, but
competitive in grid
applications only when
demanded by quota or
heavily
subsidized.
Can be developed in
electrically congested
urban areas, where it
saves not only the
cost of generation but
also the cost of laying
new
distribution
lines;
peak
production matches
peak load fairly well;
no need for cooling
water.
environments; may
require cooling water,
which is hard to find
in
deserts,
the
sunniest areas.
regeneration (U.S. Climate Change
Technology Program, 2003). In a
typical mid-latitude temperate
region, 30 percent of energy use is
for space and water heating and is
often around 50 percent of total
building energy use with cooking
and appliances making up the
balance (World Energy Council,
2004a).
to generate 125 GWh/yr from a
50-MW plant (Philibert, 2004).
Thus, about 1 percent of the
world’s desert areas could
theoretically be sufficient to meet
the world’s electricity demand.
The CSP plants are categorized as
parabolic trough-shaped mirror
reflectors, central tower receivers
using heliostats, or parabolic dishshaped reflectors. Nine California
power plants, connected to the
Southern California grid during
the period 1984–1991 have sizes
in the range from 14 to 80 MW,
with over 2 million square meters
of parabolic troughs. Electricity
from these sources at the buss bar
costs 18 cents/kWh (EPRI, 2005).
Many other planned plants in
Spain, Morocco, Algeria, Egypt,
and Israel.
Production is very
small, thus makes the
investment not very
affordable.
Experimental photovoltaic cells
have laboratory efficiencies up to
37 percent (U.S.Climate Change
Technology
Program,
2003).
Work on reducing the cost of
manufacturing, developing new
materials such as quantum dots and
nanostructures, and using low-cost
polymer materials, will allow this
resource to be more fully
exploited. Commercial thin-film
cells have efficiency in the range
of 4–8 percent, but commercial
efficiencies of 10 percent seem
70% increase in solar PV, grid
connected; fastest growing power
generation technology; increased
especially in Spain, Germany and
US.
25
46.9-70.5
cents/kWh
(though U.S. Climate
Change Tech Prog,
2003 indicates the cost
of electricity generated
by SP to be between
20-32 cents/kWh).
Oceans
The ocean resource
involves capturing the
energy in wind-driven
waves, ocean currents,
the tides, or the
temperature difference
between warm surface
water in tropical and
sub-tropical
latitudes
and the colder water at
depths of 1,000 meters
or
greater.
The
economically
exploitable resource in
deep-water waves using
current device designs
is estimated to be as
great as 7 EJ/yr (World
Energy
Council,
2004a),
while
the
theoretical potential is
in the millions of EJ.
Costs of power from
tidal fluctuations range
from 8–15 cents/kWh
(Johansson
et
al.,
2004).
Transmission
lines
are usually short.
Building
durable
structures in areas of
strong
surf
is
expensive. One issue
to be overcome in
utilizing
ocean
resources for power
is competition over
rights to the use of
the
water
(for
example, fishing and
recreation).
26
within reach during the next
several years (RISØ, 2002). Costs
of photovoltaic cell-produced
power in the United States range
from 45–76 cents/kWh (EPRI,
2005), although Johansson et al.
(2004) quote figures as low as 25
cents/kWh worldwide.
Many wave devices are still in the
R&D stage with only a small
number of devices tested or
deployed in the sea. Extracting
electrical energy from tidal
currents is estimated to yield in
excess of 10 TWh/yr (0.4 EJ/yr) in
each major estuary with large tidal
fluctuations like the Bay of Fundy
or the Solway Firth (World Energy
Council, 2004a). Ocean thermal
energy conversion is still in the
research stage and it is too early to
estimate the energy that might be
recovered from this potential
resource. Ocean current devices
have been demonstrated off the
coast of England. From a
theoretical
standpoint,
ocean
currents offer an immense source
of renewable energy. From
preliminary investigations for the
Agulhas current off the coast of
South Africa—the swiftest sea
current in the world—it was
estimated that on a 100-meter-deep
seabed, a 1-km stretch of
permanent turbines would produce
100 MW (Nel, 2003).
The initial application will likely
be replacing expensive power
from diesel generators in tropical
island nations.
Wind
A mature technology;
commercial; growing
rapidly. At present, a
little over 0.5 EJ/yr of
wind energy is captured
globally using 40 GW
of
installed
wind
turbines (World Energy
Council, 2004a). This
has increased from 2.3
GW of capacity in 1991
since
new
wind
installations have been
growing at an average
of 25 percent/yr. Price
estimate is between 6.18.4 cents/kWh (but
transmission can push
those amounts higher).
Offers
greatest
energy-producing
potential; no need for
cooling water.
Production correlates
poorly with load;
some object to the
appearance and sound
of the machines and
transmission towers;
threats to some birds
and
bats;
may
interfere with aerial
surveillance radars;
best sites are not near
population centers.
Geother
mal
Commercial but small.
The present installed
capacity of plants to
convert geothermal heat
to generate electricity is
over 8,000 MWe with
an average production
of 0.5 EJ/yr and a
capacity
factor
averaging 70 percent
(World Energy Council,
2004a). Over 10,000
MWe
of
proven
resources are not yet
utilized and it has been
estimated that over
1,000
TWh/yr
of
Supply is reliable
enough to be used for
base-load power.
There
are
some
growing
concerns
relating
to
land
subsidence and the
long-term
sustainability of a
project if fluid and/or
heat are extracted
faster than it can be
naturally replenished
(Bromley and Currie,
2003).
The stream from
underground water
can
have
nasty
components, which
will
rot
heat
27
The largest size of wind turbines is
now approaching 5 MW with rotor
diameters of 125 meters. The
average turbine size is currently
1.6–2 MW. Higher mean annual
wind speeds experienced offshore
have led to the development of
offshore wind farms that have the
advantage of less public impact.
Current capital costs for landbased wind turbine farms are about
$900 per installed kW and power
is generated at 3–4 cents/kWh on
good sites. Based on a learning rate
experience of 15 percent cost
reduction per doubling of installed
capacity in Denmark since 1985,
the cost of wind power should be
2.4–3.0 cents/kWh by 2010
(Morthorst, 2004).
Several technologies are available
to enhance the use of geothermal
heat including combined cycle for
steam resources, trilateral cycles
for binary total-flow resources, and
absorption–regeneration
cycles
(World Energy Council, 2004a). It
is expected that improvements in
characterizing
underground
reservoirs,
low-cost
drilling
techniques,
more
efficient
conversion systems, and utilization
of deeper reservoirs, will improve
the use of geothermal energy.
Issues for technical improvement
are low electrical conversion
efficiencies and the release of
Onshore
wind:
increased
especially in the US, Germany,
China, India; Offshore wind:
reached almost 1.5 GW; mostly
applied in Europe. Wind power is
currently delivered to the buss bar
at 4.5 to 6.5 cents/kWh in the
United States (EPRI, 2005). The
European
Wind
Energy
Association recently published a
target of 75 GW (168 TWh) for
the EU-15 countries in 2010 and
180 GW (425 TWh) in 2020
(EWEA, 2004). The global wind
energy resource is capable of
several times the current total
global demand for electricity.
Fast growing in the US, as well as
in several (76) developing
countries. Geothermal heat is also
used directly to provide industrial
process heat and domestic water
and space heating, most notably in
Iceland and New Zealand where
the hydrothermal resource is
abundant.
Biomass
electricity could be
produced
(World
Energy
Council,
2004a). Present cost
estimate is between 6.27.6 cents/kWh. In the
United States, costs of
geothermal
electric
power are in the range
of 5–6 cents/kWh at the
buss bar (EPRI, 2005)
and Johansson et al.
(2004) quote figures
worldwide as low as 2
cents/kWh.
Biomass
sources
include
forest,
agricultural,
and
livestock residues, short
rotation
forest
plantations, specialist
energy crops, municipal
solid waste, and other
organic waste streams.
These are used as
feedstock to produce
solid
fuels
(chips,
pellets,
briquettes,
logs),
liquid
fuels
(biodiesel, bioethanol),
and
gaseous
fuels
(biogas, synthesis gas,
hydrogen)
(Sims,
2004). These fuels can
then be converted via
numerous routes to
electricity,
heat,
Modern
biomass
energy
utilizes
market forces to fully
use what in the past
would have been
discarded as waste.
Over 130 million
tonnes of municipal
solid waste, including
plastics,
are
combusted annually,
but much more is
deposited in landfills,
which in turn creates
large amounts of
methane. Municipalsolid-waste
combustion
or
gasification
is
preferred if emissions
can be minimized.
Industry
makes
exchangers and, if
released, pollute the
air, location is at the
whim of nature and
often not convenient
to existing power
lines.
gases to the atmosphere. Japan is
testing ground-source heat pumps
to increase conversion efficiencies.
Developing countries
consume a large but
inefficient volume of
low-grade traditional
biomass in the form
of firewood, dung,
and
charcoal
(amounting to as
much as 14 percent
of global primary
energy
use)
for
heating and cooking
(World
Energy
Council,
2004a).
Other issues arise
around
sustainable
management (can it
actually
be
achieved?),
conversion
efficiencies (typically
much lower than
This area holds significant promise
for technical improvement, in step
with
general
advances
in
biotechnology.
Research
on
artificial enzymes to hydrolyse
biomass,
on
fermentation
organisms to remove contaminants
from synthesis gas, and produce
cost-effective methods of drying,
compacting, and transporting lowenergy-density biomass residues is
needed to take greater advantage of
this resource. In addition, cutting
edge research on imitating natural
designs (biomimesis) for processes
such as artificial photosynthesis or
photon-induced decomposition of
water hold great promise.
28
Growth at large and small scale in
the European Union countries and
several developing countries. Cofiring of biomass with coal or gas
and
co-generation
through
combustion to generate useful
heat and power are promising
commercial options. Progress has
been remarkable (Johansson et al.,
2004) and Sweden now obtains 25
percent of its energy supply from
biomass (forestry waste for
domestic and district heating) and
expects to raise this to 40 percent
by 2020.
transport
fuels,
chemicals,
and
materials.
Available
global annual biomass
residues are estimated
to contain around 100
EJ of energy including
6 EJ/yr from municipal
solid waste (World
Energy
Council,
2004a).
Present
costs
of
delivered
electricity
range between 3–12
cents/kWh, costs for
heat
between
1–6
cents/kWh, and $8–
25/GJ for liquid fuel, all
of which at the low end
are competitive today.
substantial use of
biomass
residues
such as bark, reject
logs, and black liquor
in pulp and paper
mills.
Biochemical
technologies
can
convert cellulose to
sugars
and
glycerides, which in
turn can be converted
to
bioethanol,
biodiesel, hydrogen,
and
chemical
intermediates in biorefineries.
(b) Storing and Delivering Renewable Power
Technologies
Status/Price
Automotive
Batteries
GM plans to market a plug-in
hybrid in 2010. Ford, in 5 years.
$300 per usable kW-hour of
storage for a battery that would
run a car for 40 miles (ie 3 miles
per kW-hour).
Stationary
Batteries
A Vancouver-based company,
VRB Power Systems, sells
“flow batteries,” with tanks to
hold hundreds of gallons of
fossil-fuel
conversion), delivery
costs from source to
market, soil erosion
from
agricultural
practices, and the use
of
chemical
fertilizers.
Advantages
Drawbacks
This
lithium-ion
battery will endure
15 years and 5,000
charge cycle, far
more
than
the
familiar
lithium
ions in today’s
consumer devices.
The round trip
efficiency is 65-75
percent- meaning
the battery loses 25-
Might not give a reliable,
continuous
energy
especially for high speed
car.
This system would raise the
price of the solar kW-hour
by 50 percent or more.
29
Policies direction on S&T,
Investment, and R&D
Applications
and
potential impacts on
Development
Lead acid and sodiumsulfur batteries are
used by the high-tech
industry to provide
electrolytes. In one direction, the
system absorbs energy; in the
other, it gives it back, in
megawatt-hour quantities.
It
costs $500-$600 to store a kWhour.
Fuel Cells
Electricity from any source,
such as solar, wind and even
coal, can be used to break up
water molecules into their
hydrogen
and
oxygen
components in a device called
an electrolyzer. The hydrogen
can then be run through a fuel
cell to make electricity.
Compressed
Air
The
Alabama
Energy
Cooperative
opened
a
compressed-air energy storage
plant in 1991, using coal plants
that ordinarily would be idle at
night, to pump air into a
hallowed-out salt dome at a
pressure of more than 1,000
pounds per square inch. When
extra power is needed in
daytime, compressed air is
inserted into a combustion
turbine fired by natural gas.
Electricity
transmission
Only about 100 scattered
installations of wind and solar in
existence at the moment. For
more efficient grid, it would
35 percent of the
electricity put into
it.
intermittent power and
avoid any loss of
power
or
power
quality in the time
between
grid
disruption and backup
generator startup.
They have a capital cost in
the thousands of dollars per
kW of capacity, and the
round-trip
efficiency
through the electrolyzer to
the fuel cell and then back
into current is less than 50
percent- meaning that for
every two kilowatt-hours
put in the bank, only one
comes back out again.
Ordinarily
the
turbine compresses
its own air, and the
most
efficient
generator
today
requires
6,000
British
thermal
units
(Btu)
of
natural
gas
to
produce a kilowatthour. Compressed
air
storage,
in
contrast,
cuts
natural gas use by
one third.
This is a solution to
handle bulk power
transfers over huge
distances. It is a
Technologies that hold
promise are flywheels made
with high-tech materials (Sglass, Kevlar, carbon fiber)
and
with
advanced
bearings, reversible fuel
cells, and hydrogen storage,
among others.
Compressed gas is
used in many places
today
to
provide
energy
and
heat
storage.
Lacking
a
national
commitment to integrating
the electricity system on a
continental scale and about
30
Solar collectors with
fast
growing
development
especially in China,
need
19,000
miles
of
transmission, with 130-foot
towers, at $2.6 million a mile.
Ice Storage
Ice Energy, a company based in
California, sells equipment that
yields 500-gallon blocks of ice
at night, in building basements.
Making ice at night is easier
than doing so during the day,
because the temperature of the
outdoor air, to which the
compressor must release the
heat, is generally lower than it is
earlier in the day.
new high-voltage
“backbone,” akin to
an
interstate
highway system for
the grid. Voltage
would be pushed up
to 765,000 volts to
reduce line losses.
No new technology
required.
It can be used to
combine with wind
power to produce
power at night and
use it during the
daytime.
$60 billion to pay for it.
Germany,
Spain,
Turkey, Japan, Israel
and Brazil.
Policy consideration to
combine with requirements
for energy efficiency in
public buildings and new
building
construction
projects
Ice is used to cool
building during the
day, ideal for building
in tropical countries.
(c) Renewable Transportation Fuels
Three main pathways exist for making liquid transportation fuels from renewables. The first is simply to burn plant oils, most
often soy or palm, in diesel engines. In the U.S., to be legal the oil must be converted to a chemical form called an ester. The process
is simple, but the scale is limited, and the entire enterprise is caught up in the food-versus-fuel debate.
Equally simple is to let yeast digest sugars and produce alcohol, but that, likewise, is limited in scale and puts the corner filling
station in competition with the supermarket for the output of the field.
Tremendous volumes of sugars, however, are tied up in non-food crops and in the no edible part of plants that are grown as food,
such as wheat straw and corn stalks. The cellulose material contains conventional six-carbon sugars as well as five-carbon sugars,
which ordinary yeast does not like.
31
To unlock these sugars for the third pathway, some pilot-scale plants use steam or acids, or a combination. Another option is
enzymes from gene-altered bacteria or fungi. To convert the sugars to liquid fuel, some use catalytic processes, and others turn to
yeasts, often genetically altered as well. Some simply break down cellulosic material into a fuel gas of carbon monoxide and
hydrogen, then re-form that into hydrocarbon molecules, such as ethanol, other alcohols or other liquids. Feedstocks include forest
detritus, such as chips, bark and pinecones; paper and plastics from household garbage; and agricultural wastes.
Although all these methods have been shown to work on a lab or pilot scale, successful commercial operation remains elusive.
Incentives and quotas are spurring many efforts, however.
STATUS: Struggling toward commercial operation
PRICE: Not established; the target is uncertain because gasoline and diesel prices are so volatile.
ADVANTAGES: Some biofuels are low-or zero-carbon; reduces reliance on overseas oil.
DRAWBACKS: Some fuels put pressure on food prices; production of biofuels from corn requires copious amounts of fossil
fuels, so total energy and carbon advantages are small; most biofuels are less energy-dense than gasoline, yielding fewer miles per
gallon.
APPLICATIONS AND POTENTIAL IMPACTS ON DEVELOPMENT: Ethanol has high growth especially in Brazil and the US,
while biodiesel is mainly produced in the European Union (about two-thirds)
Source: Wald, Matthew, Scientific American, March 2009, pages 50-55; Schock, Robert N., “Energy Technologies for the 21st
Century—The Roles of Renewable Energy”, Center for Global Security Research, Lawrence Livermore National Laboratory,
University of California, Livermore CA 94551; and REN21, 2009.
32
Annex 2
International discussions and collaborations 53 :
There exist a large number of programmes and initiatives within the United Nations
system aimed at promoting the development and deployment of renewable energy
technologies. These include:
Agenda 21, of which the United Nations Department of Economic and Social Affairs
(DESA) has been responsible for its implementation. Agenda 21 focuses on energy,
environment and social development and to furthering the development and use of new
and renewable sources of energy, promoting efficiency of energy use as well as
enhancing energy exploration and development in developing countries and developing
national capacity for energy project evaluation and analysis of energy technologies.
The United Nations Economic Commission for Europe (ECE) programmes aim at (a)
the transition to a more sustainable path for the production and use of energy; and (b) the
fuller integration of the energy economies and energy infrastructures of countries in the
region.
Activities include emphasis on the development and implementation of
sustainable energy policies and strategies; the improvements in energy efficiency,
especially in economies in transition; the efficient extraction, transport and use of natural
gas; the implementation of environmentally- sound technologies; and the further
interconnection of electric power infrastructures. Increased emphasis is being now given
to energy-related environmental issues, in particular with respect to the use of coal, as
well as to increasing the use of new and renewable energy sources. The ECE activities
are reviewed annually by the ECE Committee on Sustainable Energy.
The United Nations Economic and Social Commission for Western Asia (ESCWA)
programmes are directed at: 1) upgrading energy use efficiency; (2) promoting the use of
cleaner fuels and technologies; (3) promoting a cost effective mix of fossil and renewable
energy sources; and (4) mitigating to the maximum possible the environmental impacts of
the energy sector.
The United Nations Economic and Social Commission for Asia and the Pacific
(ESCAP) programmes focus on the access to adequate, reliable and affordable energy
and play a catalytic role in the promotion of regional cooperation in the field of energy in
partnership with other sub-regional energy agencies , such as the ASEAN Energy Centre,
Asia Pacific Energy Research Centre, South Asia Association for Regional Cooperation
and the (Pacific) Forum secretariat.
The United Nations Economic Commission for Latin America and the Caribbean
(ECLAC) provides advisory services to member states on energy and sustainable
development matters; in particular for a) strengthening the capacity of national
institutions in energy policies; b) providing technical support to develop national capacity
for energy project evaluation and economic regulations; c) preparing sector studies on
53
Briefing Paper on Energy Activities of the United Nations by the Ad Hoc Inter-Agency Task Force on
Energy, 2001.
33
energy panorama and perspectives for the specific country or the Region; and d)
organizing regional and interregional seminars on energy development & planning.
UNDP provides advice on integrated strategies that are required to “get energy
right”. UNDP’s experience in integrated development solutions enables it to address the
multiple social, economic and environmental aspects of sustainable energy approaches.
UNEP’s strengths in the energy field is the UNEP Collaborating Centre on Energy
and Environment (UCCEE). Created in 1990, the Centre’s international group of
scientists, engineers, and economists provides technical and analytical support to UNEP
and partners in developing countries.
UNESCO oversees the World Solar Programme 1996-2005 which implements a plan
of promoting information, research, education and training activities geared to facilitating
the wider use of renewable energy sources and technologies adapted to improve living
conditions and promote sustainable development.
UNIDO focuses on improving accessibility of energy, which includes finding ways
and means by which energy can be delivered reliably, affordably and in an
environmentally sound and socially acceptable manner. UNIDO’s Energy Program
Expert advice, including knowledge-based assistance in the forms of: training,
dissemination of information, technology transfer, including through networking and
partnership, procurement and contracting, energy audits, and demonstration projects
The United Nations Framework Convention on Climate Change (UNFCCC) focuses
on the issues of climate change, emissions of greenhouse gases (GHGs) such as carbon
dioxide, methane, nitrous oxide, and the chlorofluorocarbons, resulting from important
human activities, are changing the composition of the atmosphere which will cause the
earth’s climate to change and to reduce GHG emissions. In 1997, the Kyoto Protocol to
the Convention was adopted by consensus.
Other programs are undertaken by WHO, WMO, UNFPA, FAO, IAEA, GEF and the
World Bank.
34