RenewableS 2013 GlObal STaTUS RePORT - REN21

Glossary
Investment. Purchase of an item of value with an expectation
of favourable future returns. In this report, new investment
in renewable energy refers to investment in: technology
research and development, commercialisation, construction
of manufacturing facilities, and project development (including
construction of wind farms, purchase and installation of solar
PV systems). Total investment refers to new investment plus
merger and acquisition (M&A) activity (the refinancing and sale
of companies and projects).
Investment tax credit. A taxation measure that allows investments
in renewable energy to be fully or partially deducted from
the tax obligations or income of a project developer, industry,
building owner, etc.
Joule/Kilojoule/Megajoule/Gigajoule/Terajoule/
Petajoule/Exajoule. A Joule (J) is a unit of work or energy
equal to the energy expended to produce one Watt of power
for one second. For example, one Joule is equal to the energy
required to lift an apple straight up by one metre. The energy
released as heat by a person at rest is about 60 J per second.
A kilojoule (kJ) is a unit of energy equal to one thousand (10 3 )
Joules; a megajoule (MJ) is one million (10 6 ) Joules; and so on.
The potential chemical energy stored in one barrel of oil and
released when combusted is approximately 6 GJ; a tonne of dry
wood contains around 20 GJ of energy.
Leasing or lease-to-own. A fee-for-service arrangement in
which a leasing company (generally an intermediary company,
cooperative, or NGO) buys stand-alone renewable energy
systems and installs them at customer sites, retaining ownership
until the customer has made all payments over the lease
period. Because the leasing periods are longer than most
consumer finance terms, the monthly fees can be lower and the
systems affordable for a larger segment of the population.
Levelised Cost of Energy (LCOE). The unique cost price of
energy outputs (e.g., USD/kWh or USD/GJ) of a project that
makes the present value of the revenues equal to the present
value of the costs over the lifetime of the project.
Mandate/Obligation. A measure that requires designated
parties (consumers, suppliers, generators) to meet a minimum,
and often gradually increasing, target for renewable energy,
such as a percentage of total supply or a stated amount of
capacity. Costs are generally borne by consumers. Mandates
can include renewable portfolio standards (RPS); building
codes or obligations that require the installation of renewable
heat or power technologies (often in combination with energy
efficiency investments); renewable heat purchase requirements;
and requirements for blending biofuels into transport fuel.
Market concession model. A model in which a private
company or NGO is selected through a competitive process
and given the exclusive obligation to provide energy services to
customers in its service territory, upon customer request. The
concession approach allows concessionaires to select the most
appropriate and cost-effective technology for a given situation.
Net metering. A regulated arrangement in which utility customers
who have installed their own generating systems pay only
for the net electricity delivered from the utility (total consumption
minus on-site self-generation). A variation that employs
two meters with differing tariffs for purchasing electricity and
exporting excess electricity off-site is called “net billing.”
Ocean energy. Energy captured from ocean waves (generated
by wind passing over the surface), tides, salinity gradients, and
ocean temperature differences. Wave energy converters capture
the energy of surface waves to generate electricity; tidal
stream generators use kinetic energy of moving water to power
turbines; and tidal barrages are essentially dams that cross tidal
estuaries and capture energy as tides flow in and out.
Power. The rate at which energy is converted per unit of time,
expressed in Watts (Joules/second).
Production tax credit. A taxation measure that provides the
investor or owner of a qualifying property or facility with an
annual tax credit based on the amount of renewable energy
(electricity, heat, or biofuel) generated by that facility.
Public competitive bidding (also called auction or tender).
A procurement mechanism by which public authorities solicit
bids for a given amount of renewable energy supply or capacity,
generally based on price. Sellers offer the lowest price
they would be willing to accept, but typically at prices above
standard market levels.
Pumped storage hydropower. Plants that pump water from a
lower reservoir to a higher storage basin using surplus electricity,
and reverse the flow to generate electricity when needed.
They are not energy sources but means of energy storage and
can have overall system efficiencies of around 80–90%.
Regulatory policy. A rule to guide or control the conduct of
those to whom it applies. In the renewable energy context,
examples include mandates or quotas such as renewable
portfolio standards, feed-in tariffs, biofuel blending mandates,
and renewable heat obligations.
Renewable energy certificate (REC). A certificate awarded to
certify the generation of one unit of renewable energy (typically
1 MWh of electricity but also less commonly of heat). In systems
based on RECs, certificates can be accumulated to meet
renewable energy obligations and also provide a tool for trading
among consumers and/or producers. They also are a means of
enabling purchases of voluntary green energy.
Renewable energy target. An official commitment, plan,
or goal set by a government (at the local, state, national, or
regional level) to achieve a certain amount of renewable energy
by a future date. Some targets are legislated while others are
set by regulatory agencies or ministries.
Modern bioenergy. Energy derived efficiently from solid, liquid,
and gaseous biomass fuels for modern applications, such
as space heating, electricity generation, combined heat and
power, and transport (as opposed to traditional bioenergy).
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