Extracts from the Sept-Oct 2002 edition of Renew
These extracts only represent about 25% of it

15. Global Emissions grow

The U.S. Energy Information Administration (EIA) has predicted a sharp increase in world demand for oil in the next two decades with a corresponding increase in greenhouse gas emissions. EIA’s recently released international energy outlook projects that continued demand will require an extra 44 billion barrels of oil each day over current production by the year 2020. That extra oil will benefit OPEC producers but may wreak havoc on climate conditions, as the increase will put about 4 billion tonnes of carbon dioxides emissions into the atmosphere in the same period.

Countries continue to improve their carbon intensity, which is the amount of carbon produced per US$1,000 of GDP, with the former Soviet Union, China and Eastern European nations leading the pack in reducing intensity. But these improvements are offset by the continued use of fossil fuels, especially in the transportation sector, along with escalating demand. EIA said developing nations account for much of the growth as nations such as China, India and South Korea as well as Central and South America reach consumption patterns similar to those of the industrialised world. The use of renewables will continue to grow, with EIA projecting a 53% increase by 2020, though their share of total global energy consumption drops from 9 to 8%, renewables being constrained by continuing ‘relatively moderate fossil fuel prices’. See: www.eia.doe.gov/oiaf/ieo/index.html

Japan tries to help

A Japanese government task force has decided on the basic principles of a plan to cut greenhouse gas emissions as required by the Kyoto accord- Japan is required to achieve a 6% cut between 2008-2012. The basic principles call for the industrial sector to cut carbon dioxide emissions by 7% and the commercial and household sectors to cut emissions by 2% from 1990 levels by 2010. They also call for increases in transport-related carbon dioxide emissions to be held under 17%. "If left alone, emissions from the transportation sector are likely to rise much further...due to factors such as an increase in the number of vehicles", the ministry official told Reuters. The principles also call for a reduction through steps such as technological innovation and citizens’ efforts, for example by limiting the amount of water used in showers and reducing wasteful photocopying.

India funds Renewables

The Indian Renewable Energy Development Agency (IREDA) is planning to provide support for around 10,000 MW of renewable energy projects by 2012. IREDA won the prestigious ‘Water Globe’ award for its solar-powered pumping system for the agriculture sector at the ‘Energy Globe Award 2002’ recently at Linz, Austria, in which 90 countries participated with 1,300 projects.

However not everyone is convinced that the 10,000 MW by 2012 target is realistic, given that it took 20 years to install just 3,500MW. For a detailed analysis of the obstacles facing the renewable energy sector in India see the web site run by CSE, the Centre for Science and Environment:

www.cseindia.org/html/dte/dte20020430/dte_analy.htm

Meanwhile, funding has now been agreed for the world’s largest solar power project near the town of Mathania, with the Rajasthan Government contributing US$163.46 million and loan and grant aid from Germany and from the Global Environmental Facility. It is a unique integrated 175MW solar combined cycle power generation plant, the first of its kind in the world, with a 35 MW solar energy input and 140 MW from fossil fuel.

Euro power market greened

The European Parliament has voted to change electricity rules to favour renewables, by requiring energy generators to show the sources of their electricity and the pollutants involved in producing it. Utility bills will have to show whether the power sold is from coal, nuclear or renewables. "This is a giant step forward and shifts the balance of power away from the large utilities towards a level playing field for all producers," said Claude Turmes, Green MEP from Luxembourg. Electricity suppliers will be required to show in their advertising and on utility bills the fuel mix and associated waste and emissions of the electricity, giving consumers the opportunity to make informed decisions about which companies should supply their electricity. (From www.edie.net)

Green Certificates

Green certificates are increasingly seen by governments around the world as a means to support renewable energy production. Sometimes formally called ‘TREC’s’ (tradable renewable energy certificates), green certificates are issued to producers as proof that a certain amount of energy has been generated from renewable sources.

Producers can also sell their green certificates separately from the electricity, thus gaining additional revenue. Potential buyers include generators unable to produce enough green electricity to meet a pre-determined obligation. The development of green certificate system varies widely around the world. Some European countries have already taken steps, either voluntarily or based on national legislation, to use a certificate-based system to increase renewable energy production to fulfill targets set by the EU’s renewables directive and the Kyoto Protocol. In Asia, Japan will finalize details for a green certificates scheme in 2003, while China has included a scheme in its tenth five-year plan covering 2001-2005. In the US, the implementation of renewable portfolio standards (RPS) schemes-introduced in 12 US states so far- forms the basis for green certificate trading. While each scheme varies in detail from state to state, RPS basically sets out net electric sales requirements of renewable energy for power producers in relation to their total energy supply. RPS schemes could help introduce diverse energy supplies in the US and cut down dependence on exported fossil fuels. It will also help fulfill the targets set out in President Bush’s Feb 14 climate change plan which requires an 18% reduction in green house gas emissions over the next ten years.

Full article at: www.platts.com/features/greencertificates/index.shtml

We look at the parallel growth of carbon trading in Reviews.