RenewableS 2013 GlObal STaTUS RePORT - REN21

In Europe, two existing RPS policies were altered in 2012.
Poland increased utility quotas for renewable electricity by 1%
per year, and Italy moved to phase out its existing RPS, which
will be replaced with its FIT system. 42 In Asia, South Korea
implemented the RPS policy that it enacted in 2010, as called
for in the initial decree. 43
No new RPS policies were adopted in the United States,
but several existing policies were revised at the state level.
Delaware established a solar PV requirement of 3.5% by 2026;
Maryland brought the target date for the solar portion of its RPS
forward two years to require a 2% solar contribution by 2020;
New Hampshire increased the renewable quota to 24.8% by
2025; and New Jersey increased the solar requirement to 4.1%
by 2028. 44 There were efforts to reduce or repeal RPS laws in
a number of states, although Ohio was the only state to reduce
the renewables portion of its mandate, lowering it to 12.5%. 45 In
addition, a number of states, such as New Hampshire, revised
their eligibility requirements to allow for non-power generation
technologies to qualify for the RPS. (See Heating and Cooling
Policies section.)
Renewable certificates are often utilised in tandem with RPS
and quota systems. In early 2012, a common Norwegian-
Swedish green certificate market was established with a target
of developing 26.4 TWh of renewable capacity by 2020. 46 At
the national level, Australia halved the number of tradable
certificates allocated for the installation of small-scale solar
PV systems, and Romania adopt a number of new regulations,
including limiting new capacity development and the growth of
new players, in an effort to make its green certificates scheme
more attractive to investors. 47
At the state and provincial level, certificate-related changes
were made in the Indian state of Andhra Pradesh, which
enacted a certificate mechanism under its new Solar Power
Policy 2012; in the U.S. state of Arizona, which exempted the
sale of Renewable Energy Certificates (RECs) from state sales
tax; and in the Belgian regions of Brussels, Flanders, and
Wallonia, which all decreased incentives under their separate
green certificate schemes. 48
Several countries have turned to public competitive bidding
(also tendering or auctions) in recent years, with the number of
countries rising from nine in 2009 to 36 by the end of 2011. 49
A total of 43 countries were identified by early 2013, with
30 of these countries classified as upper-middle income or
lower. 50 Tendering schemes range from technology-specific to
technology-neutral; include varying levels of capacity (some
setting volume caps); occasionally set price ceilings; and often
include various criteria for project selection so that price is not
the only or most important factor. 51
Throughout 2012 and early 2013, a number of countries
held new tenders for the development of wind and solar
technologies. Chile placed a call for bids for the construction
of a CSP plant. 52 France held its first offshore wind tenders and
approved 541 MW of new solar PV and CSP projects through
government tenders. 53 Morocco began tenders for 2 GW of
wind to be installed by 2020. 54 Saudi Arabia is turning to public
tenders to award the first round of utility-scale PV and CSP
projects towards its new solar targets. 55 At the state level, India
is increasingly turning to tendering to deploy new renewable
energy capacity. For example, Tamil Nadu released a tender
for 1 GW of solar power in late 2012, and Andhra Pradesh
announced plans to allocate 1 GW of new solar PV through a
public tender in early 2013. 56
Net metering polices exist in at least 37 countries—including
Canada (in eight provinces) and the United States (in 43 states,
Washington, D.C., and four territories). Three new policies
were enacted in 2012: Brazil implemented a programme for
small-scale power generation of 1 MW or less; Chile approved
net billing legislation for renewables up to 100 kW; and Egypt
enacted a net metering policy late in the year. 57 In addition,
three existing policies were revised in 2012, including in two
U.S. states: California nearly doubled the number of systems
that qualify for its net metering programme, and Massachusetts
doubled the allowance cap for its solar net metering programme,
permitting up to 6% of peak demand to qualify. 58 In
addition, Denmark reduced support for new solar PV installations
through multiple revisions to its net metering programme,
including limiting support to 10 years and reducing guaranteed
sale prices. 59
A host of fiscal incentives that are currently used to address
the cost and finance barriers that impede the renewable
energy sector were added or revised in 2012 and early 2013.
In Cameroon, the value-added tax (VAT) was removed on all
renewable energy products; India removed import duties
on CSP equipment; Ireland extended a mechanism allowing
corporations to deduct investments in renewable energy; Libya
exempted all renewable energy equipment and components
from customs duties; and Madagascar halved import taxes
for renewable energy equipment. 60 In the United States, the
Production Tax Credit (PTC), a major driver of development
for wind power in particular, was extended through 2013. 61
In addition, U.S. PTC eligibility requirements were revised to
allow projects to qualify as long as they are under construction
(rather than operational) before the end-2013 expiration. 62 Also
in the United States, a 50% accelerated depreciation bonus
was extended and the 1603 cash grant programme remained
in place for existing projects, although new projects no longer
qualify. 63
As with FIT rates, several countries reduced subsidies to
renewables during 2012. Belgium removed a tax credit for
investments in geothermal, solar thermal, biomass, and biogas
power plants. 64 India drastically reduced incentives for wind
and solar power in 2012, including suspending the accelerated
depreciation tax incentive and discontinuing the generationbased
incentive (GBI); however, the GBI was reinstated in early
2013. 65 Also in early 2013, payments to the Indian National
Clean Energy Fund, a mechanism designed to support solar
deployment under the National Solar Mission, were delayed. 66
Beyond these reductions, a number of countries began levying
taxes on technologies that they subsidised previously. Taxes
on renewable energy installations were introduced by three
countries in 2012: Bulgaria enacted temporary retroactive
taxes on revenue from solar, wind, hydro, and biomass projects;
Greece set a tax on consumers of renewable power in 2012,
and subsequently raised it in early 2013; and Spain placed a
7% flat tax on all forms of power generation, including renewables.
67 In addition, the United States set two rounds of import
tariffs on Chinese solar modules and cells as well as tariffs on
wind towers imported from China and Vietnam as a result of
ongoing trade disputes. 68 (See Sidebar 8, GSR 2012.)
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