WREC IX - Final Report - World Renewable Energy Congress ...

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ing our own fuel by electrolysing waterand utilizing the hydrogen for poweringour transport sector. In cooperation withShell Hydrogen, Daimler Chrysler andNorsk Hydro, we founded the IcelandicNew Energy company and now wehave some hydrogen buses running as apart of the Reykjavík transport system;the first hydrogen fuelling station in theworld was opened in Reykjavík threeyears ago. If the early promise of thisinternational project based in Iceland onthe use of hydrogen is fulfilled, it couldenable our country to enjoy the possibilityof becoming completely independentof hydrocarbon fuel in the future.I mention this here today because as weall know the world is in a great need ofmaking renewables serve as a far higherproportion of global energy usage. Fortunately,all forecasts point towards a considerableincrease in renewables throughoutthe 21st century. However, given theeasy access to hydrocarbons and fossilresources, renewables still remain veryexpensive for most nations. But the governmentswhich put renewable energyhigh on the energy agenda soon realizethat they will be saving on other costswhich accompany the use of fossil energyresources because disruption of weatherpatterns,damage to health, pollution andmany other costs are associated with theuse of hydrocarbons.In the light of the important energy tasksfacing all governments of the world andthe priorities emphasized by my nation,it is for me both a privilege andan honour to present here today for thefirst time the Renewable Energy Trophy.It is awarded to the country which hasshown the highest percentage increasein renewable energy use in the two yearspreceding your congress.This winner country currently has a veryhigh dependence on imported oil, not justfor transport fuels but also for oil-firedelectricity generation. So a move towardsthe greater use of local renewable energyresources was seen to be strategic by itsHouse of Representatives for both economicand security of supply reasons.In this regard a new Law on the Promotionand Utilisation of Renewable EnergySources and Energy Conservationwas passed in 2003. It created a smalllevy on electricity consumers which, togetherwith government grants, has beenused to promote and support investmentsin renewable energy projects.The government endeavoured to align itspolicies with that of the European Unionand an Action Plan for the promotion ofrenewable energy was drawn up. It set atarget to double its total share from renewableenergy and also to increase its electricitygeneration from renewable energysources from almost zero to 6% by 2010.In 2004 a new guaranteed price schemefor electricity generation was introducedand capital grants and subsidies were offeredup to 70 million Euros.A new law to encourage the uptake ofbiofuels for transport and to support theuse of flexible fuel vehicles using bioethanolwas passed just over a year ago.Solar water heating has been in place forsome years and was the main contributorto the nation’s 1.8% of total primaryenergy from renewable energy as registeredin 2002.Nowadays approximately 92% of thebuildings, including 53% of the hotels,have solar water heaters installed. In additionseveral new wind, geothermal andbioenergy projects have been developed.Overall this strategy has increased the totalOlafur Ragnar Grimsson, Presidentof Iceland giving his speechshare of renewable energy to 7.4% - an impressiveincrease of 5.6% in just 2 years.Other nations also with impressive increasesof their renewable energy includeAlbania, Brazil, Kyrgystan, Panamaand Paraguay.However, tonight it is most fitting that wehonour the endeavours of a small islandnation in being the recipient of the 2006World Renewable Energy Trophy.Ladies and gentlemen, the winner is:CYPRUS.Cyprus has shown the world how it is possibleto increase in a dramatic way the roleof renewables and thus move away fromthe tremendous costs of hydrocarbons,costs incurred not only by our respectivecountries but by all of humankind.Two years from now we will learn whowill be the next winner. It could indeedbe Cyprus again if it continues on its remarkablepath, but it could also be anothercountry that makes outstanding progress.We congratulate and applaud Cyprusand express our profound gratitude forthe leadership it has provided.Speaker Prof Thomas Johansson Speaker Miss S. Bakshi Speaker Dr Nebojsa NakicenovicWREC IX, Florence 2006 - Final Report Page 6
Policy Issues SummaryReportMr Michael Jefferson, Chairman ofthe Policies CommitteeThe policy issues part of the Congressprogramme had been organised arounda number of themes:• policy and performance at the internationallevel;• prospects for sustainable development;• renewable energy for social and industrialdevelopment;• technological innovation and diffusion;• financing renewable energy;• renewable energy for reducing localand regional pollution; and• alleviating global climatic change.Speakers took varied positions on policyinitiatives at the international level, fromthe optimistic to the downright critical,with even the optimists taking theview that there were already too manygeneral recommendations in circulationand the need was for real action. Arecurring theme was that policymakersseemed more concerned with announcingtargets (realistic or otherwise) ratherthan ensuring a systemic approach toadopting rapidly those forms of renewableenergy most suited to local circumstances(a portfolio approach), which isconsistent with sustainable developmentand the efficient deployment of taxpayers’and shareholders’ funds.There was concern that progress was insufficientgiven the prospective shortfallin the availability of conventional oilresources in relation to expected globaldemand within fifteen years. Fossil fuel(especially coal) use has been increasingits share of World primary energy useso far this century, and given the paceof expansion in the Asia/Pacific region(particularly in China) it is difficult tosee how this can be reversed in the shortto medium term.solar PV, wind and modern biomass, theoverall figures are not consistent withsustainable development.The huge potential that the expanded useof renewable energy has for social andindustrial development is, by the sametoken, not being realised fast enough.Distributed generation systems, so beneficialto community and household initiatives,are still not receiving adequatebacking. Technological innovation anddiffusion is not progressing at an adequatepace, with a lack of real awarenessthat our present course is not sustainablein even the relatively short term. Thefact that government RD&D expenditurehas generally fallen over the past 20years compounds the problem, and subsidiesto conventional fuels which stillfar outrun support for renewable energyfurther intensify it. However, a numberof speakers had critical comments tomake about the wind energy industry,which was failing to answer a number ofchallenges and attracting undue financialand policy support while other forms ofrenewable energy were sidelined (criticalcomments were focussed on the UK,Denmark and Germany at the Congress).These criticisms suggested that feed-intariffsystems, though relatively attractive,are not without weaknesses.Given the slow expansion of renewableenergy use, speakers not surprisinglypointed to continuing localised pollution(especially affecting the young,the elderly, and women in and aroundthe home), and to the near 29% rise inglobal carbon dioxide emissions fromfossil fuel use since 1990 (with China,USA and India accounting for over 70%of the increase). Although hundreds ofscenarios exist which give a flavour ofthe possible alternative paths the Worldcould follow over the next century, thecurrent trajectory is not one to give confidencein the wellbeing of future generations.In view of the rather pessimistic tone adoptedby most speakers on policy issuesit was a great pleasure to have a jointPolicy/Gender Issues panel discussion,with Bundit Fungtammasan (Thailand),John Constable (UK), Ruth Potopsingh(Jamaica), and Nicola Steen (UK) answeringquestions – there were 18 in all– from the policy perspective. The firstthree related to wind energy, and werecrisply dealt with by John Constable– including the incorrect suggestionmade in one plenary speech that UKwind energy developers receive no publicsubsidy! Thereafter questions relatedto tackling local deprivation in order toprogress social advancement, and acceleratingtechnological and economicdrivers to improve material conditionswhile making serious efforts to ensureenvironmental protection. These questionswere very competently dealt withby the joint team under the chairmanshipof Barbara Farhar and Michael Jefferson.Although more people are able to accessmodern energy services, the number ofpeople who cannot is expected to remainin excess of 1.4 billion for some decades.New forms of renewable energy, if hydrois excluded, now account for under2.5% of World primary energy usage,and if modern biomass is excluded thisfigure falls to 0.5%. Despite impressiveannual rates of growth of grid-connectedMembers of the WREC Technical CommitteesWREC IX, Florence 2006 - Final Report Page 7
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