Of course, the transformation of the energy system isn’t free. Investment is needed to introduce new technologies and build the infrastructure that suits the requirements of renewable energy sources. Governments all over the world have developed different kinds of incentives to encourage the private investments that are needed to reap these climatic and economic benefits. While there are many approaches to the issue, the most successful and cost-effective method to date is a feed-in tariff system.

Over the course of more than 20 years, Germany has experimented with all sorts of policy incentives — tax credits, quota systems, loan programs, and, for several years starting in the year 1991, there was a primitive feed-in tariff system in place. These programs worked somewhat, but the results were rather mediocre.

The real breakthrough came with the “Renewable Energy Sources Act” and the comprehensive feed-in tariff system in included. It created the necessary investment environment for new participants and has allowed them to create entire new industries and exponential growth in renewable energy generation ever since.

Micro-Economic Benefits Too?

The macro-economic benefits of this successful law are obvious. More than 375,000 jobs in what is now called the “renewable energy industry sector,” a reduction of energy imports and environmental damage worth several billion euros, and a significant reduction of CO2 emissions. Due to the way renewables are being integrated into the conventional energy system, they have actually lowered the price of electricity at the European Energy Exchange.

However, the micro-economic effect of this successful policy — the down-side, if you will — is increased end-consumer electricity prices due to a surcharge that pays for the feed-in tariff. Today, the mix of all renewable energy sources paid for by the feed-in tariff produces electricity for approximately 16 ct/kWh. Compared to the average 6ct/kWh required for electricity generated by the mix of conventional steam-powered power plants, it’s no surprise that investing in such a system must seem like economic non-sense, especially in our current culture of tunnel vision economics that has taken root in the minds of our political elite.

It’s About Tomorrow, Stupid!

The typical result of this tunnel vision, is that most critics of renewables are totally ignorant of the fact that it’s beyond stupid to compare building blocks of a new system with the results of a system that has been established and subsidized for over a century.

Most nuclear reactors are reaching the end of their lifetime, powerlines are becoming outdated, and many fossil fuel power stations are approaching closure. That means that, over the course of the next few decades, almost the entire conventional energy system has to be replaced simply because of old age. Since this is a long-term process, it’s important to look at the long-term trends. And, boy, it doesn’t look good for the conventional energy sources. Across the board, a combination of necessary new standards and rising fuel costs increase the cost of electricity generation of new conventional power plants.

With renewable energy sources, it’s the other way around. Technologies to harness renewable energy are getting cheaper to install every year. PV solar prices fell by more than 60% within just a few years and wind power is now cheaper than new coal or nuclear. The trends are very clear.

So, What about 2030?

Now, a recent study commissioned by the German Ministry of the Environment has come to the conclusion that the transition to renewable energy sources will lead to cheaper electricity prices over the course of the next two decades.

Some of the leading German research institutes were asked to analyse the feasibility of the renewable energy goals of the German government and the economic implications of this transition. Among the institutes was the German space agency DLR and the famous “Fraunhofer Institute for Wind & Energy Systems” (IWES).

Using learning curves for renewable technologies based on experience of similar technologies and recent developments, the study tried to look into the future. Based on experience and the probable mix of renewables in the years to come, they simulated the price per kWh.

The result:

With the rate of introduction of renewables continuous till 2030, and the goals being met, the average price of electricity generated from a mix of renewable energy sources will be at an average of 7.6 cents per kWh by 2030. The trend at that time will continue to be downward. At the same time, the price of “conventional” fossil-fuel-powered electricity generation will already be at approximately 9.0 cents per kWh. That means that renewable electricity supply will be cheaper by 2030 or earlier.

Source: Clean Technica (http://s.tt/1961e)

The findings of this new report –Who’s Winning the Clean Energy Race?—show that clean energy investments continue to increase, Europe is still a key investment hub, the U.S. has risen past China, and renewable electricity is continuing to surge. These are some of the key conclusions from the new report produced by the Pew Environment Group and Bloomberg New Energy Finance in their annual report which details the state of clean energy investments globally and where key countries stand as of the end of 2011.

Here are some key take-aways.

Clean energy investments continue to increase. New clean energy investments—minus research and development – rose to $237 billion in 2011. That would make it the 35th largest economy in the world if it were a country.** This is a 604 percent growth since 2004 and a modest 6.4 percent growth from 2010 (see figure). While growth slowed in 2011 it still outpaced the pace of economic growth across the entire world economy as clean energy continues to be a key economic sector. This shows that the clean energy economy is still a real opportunity to help create jobs and business opportunities, while at the same time reducing the global warming pollution caused by other sources of energy.

European Union had the most, followed by the U.S. and China. The 27 members of the European Union (EU-27) had almost twice the total investment—$92.6***— of the U.S. investment–$48 billion (see table). Investments in the U.S. surged by 45 percent from the previous year, while China’s investments slowed. China was just behind the U.S. with new investment of $45.5 billion, dropping below the U.S. for the first time in the past three years. At the same time, investments in India continue to dramatically increase – rising by 54 percent from 2010 levels. Out of the G20 countries, South Africa and Mexico are bringing up the rear.

Renewable energy continues to surge. Last year, a record amount of new renewable energy capacity was added to the electricity fleet throughout the world. According to the report, the EU-27 has the largest amount of installed renewable energy capacity at 199 GW, followed by the China at 133 GW and U.S. at 93 GW.

Solar energy was the largest recipient of new investments – accounting for more than half the clean energy investments in the G20 countries. This was due to an increased investment in solar coupled with a declining price of solar. As the report points out:

“The cost of wind and solar generating capacity is declining rapidly, with solar photovoltaic module prices dropping 50 percent in 2011 alone.”

Renewable energy is for real, so let’s commit to more. With the declining price of renewable energy – making it cost competitive in many situations – now is not the time to either pull back from these investments or continue to invest in dirty sources of energy. The belief that renewable energy is something that you do “because it is a nice thing to do”, doesn’t match reality. Renewable energy is real, cost competitive in many situations, and a growing source of business opportunity. And given that other sources of electricity contribute to global warming and local air pollution, now is the time to double-down on more renewable energy. [Better yet is to “triple down” by tripling the amount of renewable energy in the electricity mix as we’ve called for at Rio+20.]

Countries, companies, and citizens have a chance at the 2012 Earth Summit in Rio this June to triple down on renewable electricity. Will they come through?

http://switchboard.nrdc.org/blogs/jschmidt/clean_energy_investments_conti.html

Switzerland-based South Pole Carbon, one of the largest carbon offset project developers in the world, has snapped up a majority stake in the Australian-based Climate Friendly, a specialist in the voluntary carbon market. It is expected to be the first of at least a dozen moves into the Australian carbon space as the government’s Clean Energy Future package takes effect, and liable parties look to reduce or offset their emissions.

http://www.theaustralian.com.au/business/international-carbon-trading-firms-queue-ahead-of-tax-launch-in-australia/story-e6frg8zx-1226325273975

In an interview with The Saturday Age in New York, Mr Carr said he had told UN Secretary-General Ban Ki-moon Australia would give evidence supporting a push led by Palau for a UN resolution asking the International Court of Justice to assess how much countries were responsible for the damage their emissions did overseas.

Climate law experts said that if the resolution was successful, it could be the first step by worst-affected nations in seeking reparations from countries such as the US, China and Australia.

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But the countries behind the push said their aim was to use International Court of Justice expertise to increase diplomatic pressure to cut emissions faster, not cast blame.

Mr Carr said Australia was in a good position to support the resolution, despite its reliance on fossil fuels, because it was introducing a carbon price.

Asked later to clarify Australia’s position, he said the government was concerned about the ”existential threat” to small island states from climate change and rising sea levels.

”We are very sympathetic to this cause and with my colleagues, including the minister for climate change, we will examine the draft resolution and finalise the Australian government’s position.”

Legal experts and climate campaigners doubted the Palau-led bid, backed by 17 countries, would succeed and questioned Mr Carr’s motives.

Ian Fry, an Australian who represents the island nation of Tuvalu at climate negotiations, said the Palau led-push could publicise the plight of poor countries but was unlikely to lead to a legal decision in their favour due to the complexity of apportioning blame for climate change.

He said Mr Carr’s stance was hypocritical given Australia had refused to raise its greenhouse target or commit to a second period of the Kyoto Protocol, the world’s only emissions reduction treaty.

”It is obviously a bit tokenistic, trying to garner support for Australia’s campaign for a seat on the UN Security Council,” he said. ”If you took this to a logical conclusion you would be saying Australia would be helping legal action against Australia. While Australia’s global emissions are not as high as some countries’, in per capita terms they are very high.”

Andrew Macintosh, from the Australian National University Centre for Climate Law and Policy, said it was unlikely the UN push would lead to a decision apportioning legal responsibility for climate change.

”Even if the case was successful, I can’t see China or the US or India backtracking on the basis of an International Court of Justice decision,” he said.

”And the idea of us giving evidence on behalf of these developing countries would be strange in the extreme given our history and our levels of pollution.”

Mr Carr met Mr Ban while at a disaster risk mitigation summit. He emphasised the urgency of combating climate change and pledged $1 million to help representatives from small nations to attend the Rio+20 environment summit in June.

Members of the Ambassadors for Responsibility on Climate Change include Bangladesh, Fiji, Kyrgyzstan, the Maldives, Papua New Guinea and Sri Lanka.

Read more: http://www.brisbanetimes.com.au/opinion/political-news/carr-to-help-fight-emitters-australia-among-them-20120413-1wz13.html#ixzz1t53H5Uf6

Before today’s first pre-Council of Australian Governments meeting between business leaders, the Prime Minister and the premiers, the federal and state governments indicated the business push to streamline environmental approvals would be endorsed.

And the Climate Change Minister, Greg Combet, told the Herald he had already set up a process with state ministers to weed out expensive and inefficient climate change programs after the carbon tax is introduced in July.

Read more: http://www.theage.com.au/opinion/political-news/premiers-to-slash-green-tape-inefficient-climate-schemes-20120411-1wsd7.html#ixzz1t58fnGv5

When most people think of alternative energy, their minds are filled with images of solar panels, wind turbines and hydrogen fuel cells. These three represent only a small fraction of the whole industry, however, and are simply the most well known amongst the multitude of renewable sources of power. Other, more obscure sources of energy include geothermal, marine, kinetic and biofuels. There are forms of energy that occupy the fringes of the industry, such a fusion and fission. One of these fringe elements is getting more attention, however, and it is based on one of the fundamental forces of the universe: Gravity.

Gravity is a force that everyone deals with on a daily basis, but few consider it for its uses in the alternative energy industry. One company, aptly named Gravity Power, has developed new storage technology using the fundamental force and claims that this technology could solve the problems currently facing the industry as a whole. Energy storage is one of the issues that is keeping the rapid acceleration and adoption of alternative energy at bay. There are very few efficient storage techniques currently available, a problem that researchers all over the world have been working to solve. Gravity Power’s approach may give the industry the answer it has been looking for.

The system is comprised of a single piston and a water pump attached to a turbine. The gravity pulls the piston down, creating a vacuum in the chamber above and pulling water through the pump and the turbine. The turbine then drives a generator, which can be used to store electricity. Gravity Power believes that this system could be a good compliment to wind and solar power.

The company is currently conducting tests regarding the cost of the system. Currently, Gravity Power’s findings indicate that the system is more cost effective the larger it is. A larger system can make better use of the planet’s gravity and produce sufficient charge to sustain larger generators.

http://www.hydrogenfuelnews.com/gravity-power-energy-storage-technology-could-be-a-boon-for-alternative-energy/853040/

John Griffiths also defended the Welsh Government’s controversial TAN 8 policy which has seen wind farms spring up in parts of Wales and called for all consenting powers on all major energy projects to be devolved to Wales from Westminster – apart from nuclear energy projects.

He also said it was his aim that nuclear sites in Wales – including the controversial Wylfa B site on Anglesey – should eventually be decommissioned, but insisted Welsh Government support for a new reactor on Anglesey remained.

He also dismissed an idea that Plaid Cymru AM Lord Dafydd Elis-Thomas could replace him as environment minister as “speculation”.

When asked if Wales planned to match Scotland’s stated ambition to generate all of its electricity through renewable energy in the next decade, he said: “Yes. We’re very ambitious when it comes to renewables, and we think Wales has a massive amount to offer.

“The marine energy resource in Wales, given our more sheltered waters offers great potential.

“Obviously the technology is still developing when it comes to marine, but we will have a tidal stream device off West Wales very soon and we’re taking matters forward with investment and facilitation from government in conjunction with the industry.”

He acknowledged huge controversy around wind energy – particularly in Powys where several wind farm projects have been mooted – but said the Welsh Government remained “very committed” to the TAN 8 planning policy which identified areas of Wales where large-scale wind farms should be encouraged.

“We think Wales offers great potential for the UK, it’s not just a matter of meeting Wales’ energy needs from renewables, but making a contribution to the wider UK picture,” he said.

“If you are going to do that, you do need a mix and onshore wind needs to be an important part of that mix.”

Mr Griffiths called for all consenting powers affecting energy projects, including that of the proposed multi-billion pound Severn Barrage project, to be handed to Wales from Westminster, although said he is not seeking power to determine whether nuclear projects are approved.

“It’s quite clear that we do need further consenting powers for energy projects here in Wales, and if we had those we could offer a much more certain and stable situation here in Wales for energy companies,” he said.

“We would have a much better offer to put on the table for energy companies. It would be simplified, streamlined and easier to understand and we could make sure it was more efficient. We need further powers and the sooner they come, the better.

“There are particular factors with nuclear that have been recognised by governments across the UK. It is a very specialised area of activity and it has a huge significance right across the UK and the globe.

“So we can understand why the UK Government feels very strongly that it should be it that has responsibility for nuclear power development.

“Nuclear has a role to play, and I think many environmentalists take that view now, that if we are going to adequately meet the challenges of climate change then certainly in the transitional period before we get to much greater renewable energy capacity, then nuclear must be part of the overall energy mix.”

He added: “We have to look at the wider energy picture, it’s not just about Wales’ needs. It’s about Wales as part of the UK, and indeed a worldwide effort to meet those very major challenges of climate change.

“We look to an energy mix and there are always these questions of transition, how you get to that future stage of really being able to drive forward renewable energy.”

But he ruled out any new-build nuclear sites in Wales, but said he was “disappointed” that German companies E.ON and RWE npower pulled out of the £8bn plans at the end of March.

“We remain confident that because of the advantages of that site and the history of nuclear generation on Anglesey, companies will come forward and there will be a new nuclear generating plant on Anglesey.

“There is some frustration among all the key stakeholders with recent developments as everyone is committed to this development.”

He added: “We welcome interest from major players in the nuclear industry that can bring this proposal to fruition.

“But obviously there is much discussion to take place between the Welsh Government and the stakeholders before any proposals are actually given the go-ahead.”

But he warned that any company looking to take on the project would have their safety credentials scrutinised, in response to the news Russian state-owned nuclear company Rosatom, which is reportedly eyeing the site.

“What everyone is crystal clear about is the need for safety to be paramount,” he said. “And obviously the nuclear authorities, the Environment Agency, the Welsh Government, and others would want to be absolutely crystal clear on the safety credentials of any company involved in nuclear generation in Wales.

“There can be, and will be, no compromise.”

And he dismissed speculation that Plaid Cymru’s Lord Elis-Thomas could become environment minister in the Welsh Government, in a bid to give Labour an overall majority.

“There is all sorts of speculation in politics about all sorts of things, coalitions, changes in policy, reshuffles. That’s the world we live in.

“I’m getting on with my job as environment minister in Wales. I think it’s a big job to do. It’s a job that I’ve enjoyed over the last year. I look forward to continuing to drive forward Welsh Government environment policy in the future.”

Read More http://www.walesonline.co.uk/news/wales-news/2012/04/16/wales-should-ditch-nuclear-power-says-environment-minister-91466-30764479/#ixzz1t5116gUt

The report also found that the US overtook China as the top nation in terms of private investments. The other G-20 nations that scored big are Germany, Italy, the United Kingdom and India.

“Clean energy investment, excluding research and development, has grown by 600% since 2004, on the basis of effective national policies that create market certainty,” said director of Pew’s Clean Energy Program Phyllis Cuttino. She goes on to explain one of the biggest contributing factors for this exponential growth has been national policies that have helped attract private investors and, in the US, the stimulus package programs. The US alone attracted $48 billion in investment last year alone while China wasn’t too far behind with $45.5 billion.

Perhaps the most encouraging news is that the growth wasn’t limited to just one sustainable energy source. Solar increased globally by 44%, attracting about $128 billion. While solar accounts for more than half of all sustainable energy investment in the G-20 nations, 43 GW of wind power also got integrated.

2011 saw the overall installation of 83.5 GW in renewable energy.

Other key findings from the report include:
■
Led by 42 percent growth in the United States and 15 percent in Brazil, investment in the Americas region grew by more than 21 percent to $63.1 billion, faster than any other region.

■
The clean energy sector in the Asia/Oceania region increased more than 10 percent to $75 billion. Relatively flat investment in China was mitigated by sharp gains in India, Japan, and Indonesia, which were among the fastest-growing clean energy markets in the world.

■
The clean energy sector in the European region grew by a modest 4 percent but remains the leading destination for such investment, at $99.3 billion. Significant investment growth in Italy, the United Kingdom, and Spain helped to offset declines in other European Union member states. Germany and Italy continue to lead the world in deployment of small, distributed solar photovoltaic power installations, accounting for more than 50 percent of worldwide solar capacity additions, and 38 percent of G-20 solar technology investments.

■
The United States remains the leader in venture capital financing, an important measure of energy innovation, attracting $6 billion, or 70 percent of the G-20 total. Germany and China were distant followers, with $635 million and $458 million, respectively, in venture capital investments.

http://www.greenchipstocks.com/articles/global-renewable-energy-growth/1754

The European Union is officially on track to meet a goal for 20 percent of its energy to come from renewable sources by 2020.

After that, there is no policy certainty and “abrupt changes” for instance to solar subsidies are destroying confidence among investors, the commissioner said.

At the same time, the EU’s Emissions Trading Scheme (ETS), meant to encourage low carbon energy has crashed to record lows, far below the level needed to be a green incentive.

“We need a functioning ETS and credible carbon price as a precondition,” Oettinger said.

In times of crisis, some member states were unfairly blaming renewable spending for adding to economic problems.

“In some cases, renewables support is being used as a scapegoat,” he said, but argued public deficits were not the result of support for renewables.

“It does not normally come from the public budget,” he said. “It might be necessary to give clear guidance to member states from the side of the commission.”

Oettinger was addressing the annual conference of the European Wind Energy Association in Copenhagen.

DANISH AMBITION

Later in the week, the Danish EU presidency will host informal meetings of energy and environment ministers, which will continue the debate on how to get beyond the group’s existing set of 2020 green energy targets.

At the same time, the commission, the EU’s executive arm, is drawing up a policy document on renewables strategy.

Apart from funding, Oettinger said it would look at closer cooperation between member states and on new grids to accommodate green power.

“Wind and solar are facing increasing difficulty. We urgently need to increase the speed with which we adapt the infrastructure,” he said.

He also wants positive links with markets beyond the European Union.

“We need to continue to ensure the EU industry can access these markets,” he said, citing the United States and China.

China, especially, has been seen as a threat by some in the industry to continued expansion as it competes aggressively and dominates the supply of rare earths, a component in high-tech industry, including green energy.

Denmark’s own environmental ambitions are the highest in the EU. It is a world leader in wind energy and it wants to be free of fossil fuel energy by 2050.

“Together we can transform the EU economy into a green superpower,” Danish Prime Minister Helle Thorning-Schmidt told the conference.

But the Danish EU presidency is struggling to persuade some of the 27 member states to be anywhere near as ambitious.

Poland, which is heavily reliant on carbon-intensive coal, in March vetoed a low carbon road map, which would establish non-binding milestones on carbon reduction to give guidance after the 2020 target on a 20 percent emissions cut expires.

A 2050 energy road map, which ministers will debate informally in Denmark this week, has also run into controversy.

Pro-nuclear nations have argued nuclear power generation, which does not emit carbon dioxide, has as much right as renewables to be counted in low carbon goals, while Poland dislikes what it sees as discrimination against coal.

Oettinger and other commissioners have said binding targets are the way to get results. Oettinger has also said there is a need to agree a new set of policy goals before the current commission’s term of office ends in 2014. (Editing by James Jukwey)

http://www.reuters.com/article/2012/04/16/energy-wind-oettinger-idUSL6E8FG1KX20120416

“The new regime lays the groundwork for an orderly and sustainable development for renewable energy,” the Rome-based ministry said in an e-mailed statement.

http://www.bloomberg.com/news/2012-04-11/italy-to-realign-renewable-energy-incentives-with-eu-levels.html