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1 RENE WA BL E S 2018 GLOBAL STATUS REPORT A comprehensive annual overview of the state of renewable energy. 2018

2 RENEWABLES 2018 · GLOBAL STATUS REPORT RENEWABLES 2018 GLOBAL STATUS REPORT REN21 MEMBERS INTERNATIONAL ORGANISATIONS NGOS INDUSTRY ASSOCIATIONS Alliance for Rural Electrification (ARE) Climate Action Network International Asian Development Bank (ADB) (CAN-I) American Council on Renewable Energy Asia Pacific Energy Research Centre (ACORE) Council on Energy, Environment (APERC) and Water (CEEW) Associação Portuguesa de Energias ECOWAS Centre for Renewable Renováveis (APREN) Fundación Energías Renovables (FER) Energy and Energy Efficiency Association for Renewable Energy of Global Alliance for Clean Cookstoves (ECREEE) Lusophone Countries (ALER) (GACC) European Commission (EC) Chinese Renewable Energy Industries Global Forum on Sustainable Association (CREIA) Energy (GFSE) Global Environment Facility (GEF) Clean Energy Council (CEC) Greenpeace International International Energy Agency (IEA) European Renewable Energies ICLEI – Local Governments for Federation (EREF) International Renewable Energy Sustainability, South Asia Agency (IRENA) Global Off-Grid Lighting Association International Electrotechnical (GOGLA) Regional Center for Renewable Commission (IEC) Global Solar Council (GSC) Energy and Energy Efficiency Institute for Sustainable Energy (RCREEE) Global Wind Energy Council (GWEC) Policies (ISEP) Indian Renewable Energy Federation United Nations Development Mali Folkecenter (MFC) (IREF) Programme (UNDP) Partnership for Sustainable Low International Geothermal Association Carbon Transport (SLoCaT) United Nations Environment (IGA) Programme (UN Environment) Renewable Energy Institute (REI) International Hydropower Association World Council for Renewable United Nations Industrial (IHA) Energy (WCRE) Development Organization (UNIDO) Renewable Energy Solutions for the World Future Council (WFC) Mediterranean (RES4MED) World Bank (WB) World Resources Institute (WRI) World Bioenergy Association (WBA) World Wind Energy Association World Wildlife Fund (WWF) (WWEA) SCIENCE AND ACADEMIA NATIONAL GOVERNMENTS MEMBERS AT LARGE Michael Eckhart Afghanistan Fundación Bariloche (FB) Brazil International Institute for Applied Mohamed El-Ashry Systems Analysis (IIASA) Denmark David Hales International Solar Energy Society Germany (ISES) Kirsty Hamilton India National Renewable Energy Peter Rae Norway Laboratory (NREL) South Africa South African National Energy Spain Development Institute (SANEDI) United Arab Emirates The Energy and Resources Institute (TERI) United States of America CHAIR EXECUTIVE SECRETARY Arthouros Zervos Rana Adib National Technical University of REN21 Athens (NTUA)

3 COMMUNITY REN21 is a multi-stakeholder network that is built on an international community of over 900 experts from governments, inter-governmental organisations, industry associations, non-governmental organisations, and science and academia. It grows from year to year and represents an increasing diversity of sectors. REN21 provides a platform for this wide-ranging community to exchange information and ideas, to learn from each other and to collectively build the renewable energy future. This network enables the REN21 Secretariat, among other things, to produce its annual flagship publication, Renewables Global Status Report (GSR) the . The report is a truly collaborative effort where the contributors and peer reviewers work alongside an international authoring team and the REN21 Secretariat. REN21 COMMUNITY INVOLVEMENT IN GSR: Over have been new experts in experts actively involved at experts the community involved in 2018 400 40 % 900 60 % least twice internationally edition every year 3

4 RENEWABLES 2018 GLOBAL STATUS REPORT RENEWABLE ENERGY POLICY NETWORK st FOR THE 21 CENTURY REN21 is the global renewable energy policy multi- REN21 PRODUCTS stakeholder network that connects a wide range of key actors. REN21’s goal is to facilitate knowledge exchange, policy development and joint action towards a rapid global transition to renewable energy. REN21 brings together governments, non- governmental organisations, research and academic institutions, international organisations and industry to learn from one another and build on successes that advance renewable energy. To assist policy decision- making, REN21 provides high-quality information, Global Status Report: yearly publication since 2005 catalyses discussion and debate, and supports the development of thematic networks. RENEWABLES GLOBAL STATUS REPORT (GSR) Renewables Global First released in 2005, REN21's - REN21 facilitates the collection of com Status Report (GSR) has grown to become a truly prehensive and timely information on Bridging and collaborative effort, drawing on an international renewable energy. This information building the network of over 900 authors, contributors and reflects diverse viewpoints from both energy future. reviewers. Today it is the most frequently referenced report on renewable energy market, industry and private and public sector actors, serving policy trends. to dispel myths about renewable energy and to catalyse policy change. It does www.ren21.net this through six product lines: Indian Global Renewable Status Report Energy Status Chinese on Local Report Renewable Renewable REN21 Energy Renewables Energy First GSR publications: Status Report Interactive Map Policies published 2007 2008 2009 2010 2005 2006 2012 2011 2004 WIREC, DIREC, Renewables REN21 BIREC, Delhi Washington 2004, Bonn events: Beijing International International International Renewable Energy Renewable Energy Renewable Energy Conference Conference Conference 4 4

5 International Renewable REN21 Renewables Global Futures Reports Academy Energy Conferences Thematic Reports Regional Status Reports THEMATIC REPORTS RENEWABLES ACADEMY REGIONAL STATUS REPORTS INTERNATIONAL RENEWABLE ENERGY The REN21 Renewables Each report covers a specific These reports detail the CONFERENCES (IREC) Academy provides an opportu - topic related to renewable energy renewable energy developments The International Renewable nity for lively exchange among of a particular region; their pro- in detail. Examples of reports Energ y Conference (IREC) is a the growing community of REN21 duction also supports regional covered in this series include high-level political conference contributors. It of fers a venue Mini-grid Policy Toolkit, the data collection processes and series. Dedicated exclusively to - to brainstorm on future-orien informed decision making. Renewable Energy Tenders and the renewable energy sector, tated policy solutions and allows Community [Em]power[ment] and the biennial IREC is hosted GLOBAL FUTURES participants to actively contribute Renewables Energy Policies in REPORTS (GFR) by a national government and on issues central to a renewable a Time of Transition. convened by REN21. energy transition. REN21 produces reports that - illustrate the credible possibili ties for the future of renewables within particular thematic areas. 100% Renewables Global Futures Report Renewable Energy UNECE Mini-grid SADC and UNECE Policies in a Time Renewable Energy Policy Toolkit Renewable Energy of Transition Status Report EAC Global Futures Report and Energy Efficiency Renewable ECOWAS SADC Renewable Energy Status Reports Renewable Energy Energy and Renewable Energy MENA Tenders and Energy Efficiency and Energy Efficiency Renewables Interactive and Energy Efficiency Renewable Energy Community [Em]Power[ment] Status Report Status Report Map revamp Status Report Status Report 2014 2013 2018 2017 2016 2015 Second REN21 SAIREC, ADIREC, First REN21 MEXIREC, First GSR Renewables Microsite South Africa Mexico Renewables Abu Dhabi Academy, Academy, International International International Bonn Renewable Energy Renewable Energy Bonn Renewable Energy Conference Conference Conference 5 5

6 RENEWABLES 2018 GLOBAL STATUS REPORT TABLE OF CONTENTS GSR 2018 MARKET AND INDUSTRY TRENDS 03 10 ... Acknowledgements 69 ... Bioenergy ... 79 Geothermal Power and Heat 15 ... Foreword 83 Hydropower ... ... Executive Summary 16 Ocean Energy ... 88 19 Renewable Energy Indicators 2017 ... Solar Photovoltaics (PV) ... 90 ... 25 Top 5 Countries Table ... 100 Concentrating Solar Thermal Power (CSP) ... 103 Solar Thermal Heating and Cooling ... Wind Power 109 GLOBAL OVERVIEW 01 ... 29 Global Overview DISTRIBUTED RENEWABLES ... 35 Heating and Cooling FOR ENERGY ACCESS 38 ... Transport 04 40 ... Power Distributed Renewables for Energy Access 125 ... Overview of Energy Access 126 ... Technologies and Markets ... 128 POLICY LANDSCAPE ... 133 Investment and Financing 02 ... Business Models 135 Policy Landscape 49 ... Policy Developments 136 ... 52 ... Targets 137 ... International Initiatives and Programmes Heating and Cooling 54 ... Transport ... 56 137 ... Outlook Power ... 59 Integrating Policies 61 ... Sector Coupling and System-Wide Transformation ... 62 INVESTMENT FLOWS 05 Investment Flows ... 139 Investment by Economy ... 141 ... 144 Investment by Technology 145 ... Investment by Type ... 146 Renewable Energy Investment in Perspective 147 ... Sources of Investment 6

7 FE ATURE: CORPORATE SOURCING OF ENERGY SYSTEMS INTEGRATION RENEWABLE ENERGY AND ENABLING TECHNOLOGIES 08 06 ... Feature: Corporate Sourcing of Renewable Energy 173 .. 149 Energy Systems Integration and Enabling Technologies ... How Companies Source Renewable Electricity 174 Challenges of Energy Systems Integration 150 ... 176 ... Main Industries Sourcing Renewable Electricity Integrating Variable Renewable Electricity ... 151 Policy Frameworks to Enable Corporate Sourcing . . . . . . . . . . . . . . . . . . . . 157 Technologies for Systems Integration of Renewables ... 176 ... Energy Storage 158 177 ... Capacity Building Through Knowledge Sharing Heat Pumps ... 160 Electric Vehicles ... 161 ... 178 Reference Tables ... 228 Methodological Notes ENERGY EFFICIENCY Glossary ... 230 07 236 List of Abbreviations ... 165 Overview ... ... Energy Units and Conversion Factors 237 168 Electricity Generation ... Endnotes: see full version online at www.ren21.net/gsr Buildings ... 168 170 ... Industry ... 171 Transport DISCLAIMER: REPORT CITATION REN21. 2018. REN21 releases issue papers and reports to emphasise the importance of renewable energy and to generate discussion on issues central to the promotion of renewable energy. While REN21 papers Renewables 2018 Global Status Report and reports have benefited from the considerations and input from the REN21 community, they do (Paris: REN21 Secretariat). not necessarily represent a consensus among network participants on any given point. Although the information given in this report is the best available to the authors at the time, REN21 and its ISBN 978-3-9818911-3-3 participants cannot be held liable for its accuracy and correctness. The designations employed and the presentation of material in the maps in this report do not imply the expression of any opinion whatsoever concerning the legal status of any region, country, territory, city or area or of its authorities, and is without prejudice to the status of or sovereignty over any territory, to the delimitation of international frontiers or boundaries and to the name of any territory, city or area. 7

8 RENEWABLES 2018 GLOBAL STATUS REPORT TABLE OF CONTENTS GSR 2018 SIDEBARS TABLES Sidebar 1 Estimated Direct and Indirect Jobs in Renewable Table 1 ... Jobs in Renewable Energy 46 Energy, by Country and Technology, 2016-2017 47 Sidebar 2 Renewable Electricity Generation Costs, 2017 119 .. 64 Table 2 ... Renewable Energy Support Policies Sidebar 3 156 Digitalisation of Energy Systems ... Status of Renewable Electricity Generating Table 3 Technologies, Costs and Capacity Factors, 120 2017 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Table 4 Overview of Policy Measures That Support Various Corporate Sourcing Options 177 ... REFERENCE TABLES Table R15 Table R1 Biofuels Global Production, Top 15 Global Renewable Energy Capacity and Biofuel Production, 2017 Countries and EU-28, 2017 178 ... ... 206 Table R2 Table R16 Geothermal Power Global Capacity and Renewable Power Capacity, World and . . . . . . . . . . . . . . . 179 Top Regions/Countries, 2017 Additions, Top 10 Countries, 2017 ... 207 Table R3 Hydropower Global Capacity and Table R17 Renewable Energy Targets, Share of Primary or Final Energy and Progress, End-2015 Additions, Top 10 Countries, 2017 ... ... 180 208 Solar PV Global Capacity and Additions, Renewable Energy Targets, Technology- Table R4 Table R18 Specific Share of Primary or Final Energy Top 10 Countries, 2007-2017 183 .. 209 ... Table R5 Renewable Heating and Cooling Targets Concentrating Solar Thermal Power (CSP) Table R19 and Progress, End-2016 Global Capacity and Additions, 2017 210 ... 184 ... Renewable Transport Targets Solar Water Heating Collectors Total Table R6 Table R20 and Progress, End-2016 Capacity End-2016 and Newly Installed ... 186 Capacity 2017, Top 20 Countries 211 ... Table R7 Renewable Transport Mandates at the National/State/Provincial Levels, End-2017 Table R21 Wind Power Global Capacity and . 187 Additions, Top 10 Countries, 2017 ... 212 Table R8 Renewable Power Targets, Share of Electricity Generation and Progress, End-2016 Table R22 ... 189 Electricity Access by Region and Country, 2016 and Targets 213 ... Renewable Power Targets, Technology- Table R9 Specific Share of Electricity Generation Population Without Access to Clean Cooking ... 192 Table R23 by Region and Country, 2015 ... 217 Renewable Power Targets for Specific Amount Table R10 of Installed Capacity or Generation Programmes Furthering Energy Access, Table R24 ... 193 Selected Examples 220 ... Table R11 Renewable Heating and Cooling Policies, 2017 Table R25 199 ... International Networks Furthering Energy Access, Selected Examples 224 ... Feed-in Electricity Policies, Cumulative Table R12 Number of Countries/States/Provinces Table R26 Global Trends in Renewable Energy and 2017 Revisions Investment, 2007-2017 ... 227 200 ... Table R13 Renewable Power Tenders at the National/State/Provincial Levels, 2017 201 ... Table R14 Renewable Energy Targets, Selected City and Local Examples 202 ... 8

9 FIGURES Figure 31 Estimated Renewable Share of Total Final Figure 1 Solar Water Heating Collector Additions, Energy Consumption, 2016 Top 20 Countries for Capacity Added, 2017 ... 31 ... 104 Figure 2 Growth in Global Renewable Energy Solar Water Heating Collectors Global Figure 32 Compared to Total Final Energy Consumption, Capacity in Operation, Shares of Top 12 2005-2015 ... 31 Countries and Rest of World, 2016 105 ... Solar District Heating Systems, Global Annual Figure 33 Figure 3 Renewable Energy in Total Final Energy Additions and Total Area in Operation, 2007-2017 . 106 Consumption, by Sector, 2015 32 ... Wind Power Global Capacity and Figure 34 ... Carbon Pricing Policies, 2017 Figure 4 34 Annual Additions, 2007–2017 ... 109 Global Renewable Power Capacity, 2007-2017 41 Figure 5 Wind Power Capacity and Additions, Figure 35 Figure 6 Estimated Renewable Energy Share of Global . . . . . . . . . . . . . . . . . . . . . . . Top 10 Countries, 2017 110 Electricity Production, End-2017 41 ... Wind Power Offshore Global Capacity Figure 36 Renewable Power Capacities in World, EU-28, Figure 7 . . . . . . . . . . . . . . . . . . . . . . . . 113 by Region, 2007-2017 and Top 6 Countries, 2017 42 ... Market Shares of Top 10 Wind Turbine Figure 37 Figure 8 Share of Electricity Generation from Variable ... Manufacturers, 2017 114 Renewable Energy, Top 10 Countries, 2017 ... 43 Market Size and Current Penetration of Figure 38 Figure 9 Jobs in Renewable Energy ... 47 Off-Grid Solar Systems in Selected Countries, 2017 126 ... Figure 10 Number of Countries with Renewable Energy Population Without Access to Electricity, Figure 39 Regulatory Policies, by Sector, 2004-2017 ... 51 by Region or Country, 2010-2016 ... 127 National Sector-Specific Targets for Share Figure 11 Annual Global Sales of Off-Grid Solar Figure 40 of Renewable Energy, by a Specific Year, by 128 ... Systems, 2013-2017 Sector, in Place at End-2017 ... 53 Number of Off-Grid Solar Systems Sold by Figure 41 National Targets for Share of Renewable Figure 12 GOGLA Affiliates in Top 5 Countries, Energy in Final Energy, by a Specific Year, in 2016 and 2017 129 ... Place at End-2017 53 ... Estimated Renewable Energy-based Large Figure 42 Countries with Energy Efficiency Policies and Figure 13 Micro-grid projects (>100 kW) Installed Targets, End-2017 ... 54 Outside of the OECD and China, 2013-2017 130 .. National and Sub-national Renewable Figure 14 Number of Clean Cook Stoves Distributed in Figure 43 Transport Mandates, End-2017 ... 56 131 ... Selected Countries, 2015 and 2016 Targets for Renewable Power and/or Electric Figure 15 Approximate Proportion of Clean Cook Figure 44 ... 63 Vehicles, End-2017 Stoves by Energy Source, 2016 ... 132 Shares of Bioenergy in Total Final Energy Figure 16 Production of Biogas for Cooking in Figure 45 Consumption, Overall and by End-Use Selected Countries, 2015 and 2016 ... 132 Sector, 2016 70 ... Global Investment in Off-Grid Solar PV Figure 46 ... 133 Companies, 2013-2017 Consumption of Heat from Bioenergy in the Figure 17 EU-28, by Country and Fuel Source, 2006-2016 .. 71 Global Investment in Clean Cook Stove Figure 47 134 ... Companies, 2011-2017 Figure 18 Global Bio-power Generation, by Region, Global New Investment in Renewable Power Figure 48 2007-2017 ... 72 and Fuels in Developed, Emerging and Global Trends in Ethanol, Biodiesel and Figure 19 Developing Countries, 2007-2017 140 ... HVO/HEFA Production, 2007-2017 73 ... Global New Investment in Renewable Power Figure 49 Geothermal Power Capacity Global Figure 20 and Fuels, by Country or Region, 2007-2017 .. 142 79 Additions, Share by Country, 2017 . . . . . . . . . . . . . Global New Investment in Renewable Energy Figure 50 Figure 21 Geothermal Power Capacity and Additions, by Technology in Developed, Emerging and Top 10 Countries and Rest of World, 2017 ... 80 Developing Countries, 2017 144 ... Hydropower Global Capacity, Shares of Figure 22 Global Investment in New Power Capacity, Figure 51 Top 10 Countries and Rest of World, 2017 83 ... by Type (Renewables, Fossil Fuels and Hydropower Capacity and Additions, Figure 23 Nuclear Power), 2017 146 ... Top 10 Countries for Capacity Added, 2017 ... 84 Global Utility-Scale Energy Storage Figure 52 Capacity, by Technology, 2017 ... 158 Solar PV Global Capacity and Annual Figure 24 Global Passenger Electric Vehicle Market Figure 53 Additions, 2007–2017 ... 90 (including PHEVs), 2012-2017 ... 162 Solar PV Global Capacity, by Country Figure 25 Global Primary Energy Intensity and Total Figure 54 or Region, 2007–2017 ... 91 166 ... Primary Energy Supply, 2011-2016 Solar PV Capacity and Additions, Figure 26 Primary Energy Intensity of Gross Domestic Figure 55 Top 10 Countries, 2017 . . . . . . . . . . . . . . . . . . . . . . . . 91 Product, Selected Regions and World, Figure 27 Solar PV Global Capacity Additions, Shares of 2011 and 2016 ... 167 Top 10 Countries and Rest of World, 2017 95 ... Average Electricity Consumption per Figure 56 Concentrating Solar Thermal Power Global Figure 28 Electrified Household, Selected Regions and 100 .. Capacity, by Country and Region, 2007-2017 World, 2011 and 2016 ... 169 CSP Thermal Energy Storage Global Capacity Figure 29 Average Energy Intensity of Industry, Selected Figure 57 101 ... and Annual Additions, 2007-2017 Regions and World, 2011 and 2016 ... 170 Solar Water Heating Collectors Global Figure 30 Countries Where Corporations Have Sourced Figure 58 ... Capacity, 2007-2017 103 174 Renewable Electricity, up to End-2017 ... 9

10 RENEWABLES 2018 GLOBAL STATUS REPORT ACKNOWLEDGEMENTS RESEARCH DIRECTION AND LEAD AUTHORSHIP Janet L. Sawin (Sunna Research) Jay Rutovitz (Institute for Sustainable Futures, University of Technology Sydney – ISF-UTS) Freyr Sverrisson (Sunna Research) PROJECT MANAGEMENT AND GSR COMMUNITY MANAGEMENT (REN21 SECRETARIAT) REN21's Renewables Global Status Report series contributes to the objectives of the UN Secretary-General’s Hannah E. Murdock Sustainable Energy for All by providing the latest data on: Rana Adib the development and uptake of renewable energy; the evolution of distributed renewables for energy access; and CHAPTER AUTHORS energy efficiency’s contribution to achieving sustainable Emma Aberg (International Renewable Energy Agency – IRENA) energy access for all. REN21 is a recognised partner of Rana Adib (REN21) SEforALL. Fabiani Appavou Adam Brown Scott Dwyer (ISF-UTS) Global Trends in Renewable Energy Investment The Barbel Epp (solrico) report (GTR) is jointly prepared by the Frankfurt School- Flávia Guerra (REN21) UNEP Collaborating Centre for Climate & Sustainable Bozhil Kondev Energy Finance, Bloomberg New Energy Finance and Hannah E. Murdock (REN21) Global Trends in Renewable Energy UN Environment. The Evan Musolino report, formerly Investment Global Trends in Sustainable Jay Rutovitz (ISF-UTS) Energy Investment , was produced for the first time in Janet L. Sawin (Sunna Research) 2007 under UN Environment’s Sustainable Energy Kristin Seyboth (KMS Research and Consulting) Finance Initiative (SEFI). It grew out of efforts to track and Jonathan Skeen (SOLA Future Energy) publish comprehensive information about international Freyr Sverrisson (Sunna Research) investments in renewable energy. The latest edition of Sven Teske (ISF-UTS) this authoritative annual report tells the story of the most Stephanie Weckend (IRENA) recent developments, signs and signals in the financing of Henning Wuester (IRENA) renewable power and fuels. It explores the issues affecting each type of investment, technology and type of economy. SPECIAL ADVISOR The GTR is the sister publication to the REN21 Adam Brown Renewables Global Status Report . The latest edition of the GTR, supported by the German Federal Ministry of RESEARCH AND PROJECT SUPPORT Environment, Nature Conservation and Nuclear Safety, (REN21 SECRETARIAT) was released in April 2018 and is available for download at Linh H. Blanning, Flávia Guerra, Vibhushree Hamirwasia, www.fs-unep-centre.org. Archita Misra, Katharina Satzinger COMMUNICATION SUPPORT (REN21 SECRETARIAT) Laura E. Williamson, Mimi Lie, Anna Nilsson EDITING, DESIGN AND LAYOUT Lisa Mastny, Editor Lelani Arris, Editor weeks.de Werbeagentur GmbH, Design This report was commissioned by REN21 and produced in collaboration with a global network of research partners. PRODUCTION Financing was provided by the German Federal Ministry REN21 Secretariat, Paris, France for Economic Cooperation and Development (BMZ), the German Federal Ministry for Economic Affairs and Energy (BMWi) and UN Environment. A large share of the research for this report was conducted on a voluntary basis. 10

11 LEAD COUNTRY CONTRIBUTORS SIDEBAR AUTHORS Rabia Ferroukhi (IRENA) Algeria Gustavo Luís de Souza Motta (Ministry of Mines and Energy) Celia Garcia (IRENA) Samy Bouchaib (Centre de Développement Camila Ramos (Clean Energy Latin America) des Energies Renouvelables) George Kamiya Can Soysal (Lund University) (International Energy Agency – IEA) Argentina Arslan Khalid (IRENA) Brunei Darussalam Gastón A. Turturro Luis Munuera (IEA) Abdul Matiin Kasim (Brunei National (Universidad de Buenos Aires) Energy Research Institute) Michael Renner (IRENA) Roque Pedace (can-la, INforSE) Michael Taylor (IRENA) Bulgaria Armenia Ralitsa Nikolova (Sofia University) Anita Eisakhani REGIONAL CONTRIBUTORS Cameroon Australia Patrick Atouda Beyala Central and East Africa Veryan Hann (University of Tasmania) (SOAS University of London) Rafael Diezmos (African Solar Designs) Sama Dudley Achu (Valdas & Co. Ltd) Bangladesh Fabrice Fouodji Toche Syed Ahmed Canada (Global Village Cameroon) (Rahimafrooz Renewable Energy Ltd.) Michael Paunescu Allan Kinuthia (African Solar Designs) (Natural Resources Canada) Md. Tanvir Masud (Sustainable and Dorcas Wairimu (African Solar Designs) Renewable Energy Development Authority) Sven Scholtysik (University of Victoria) Europe Belarus Chile Robert Fischer Maurianny Garcia Hanna Berazanskaya (Belarusian Heat (Luleå University of Technology) (Pontifical Catholic University of Chile) and Power Institute) Latin America and Caribbean Jonathan Guerrero Vladimir Zui (Belarusian State University) Gonzalo Bravo (Fundación Bariloche) China Belgium Julio Eisman (Fundación ACCIONA Frank Haugwitz (Asia Europe Clean Eros Artuso (ProQuest Consulting Ltd.) Microenergía) Energy (Solar) Advisory Co. Ltd.) Lucas Furlano (Fundación Bariloche) Michel Huart (APERe) Sarah Tang (Chinese Renewable Energy Peter Krenz (Deutsche Gesellschaft für Dirk Vansintjan (REScoop.eu) Industries Association) Internationale Zusammenarbeit GmbH Helena Uhde (Beijing Institute of Benin – GIZ) Technology) Todeman Assan Middle East and North Africa (General Direction of Energy) Chinese Taipei Tarek Abdul Razek (Regional Center for Olola Vieyra-Mifsud Gloria Kuang-Jung Hsu Renewable Energy and Energy Efficiency (National Taiwan University) – RCREEE) Bolivia Colombia Franklin Molina Ortiz Eman Adel (RCREEE) Victor Fuertes (Universidad Autónoma Akram Almohamadi (RCREEE) Juan Pablo Vargas-Bautista de Occidente – UAO) (Private University of Bolivia) Sonia Al Zoghoul (RCREEE) Javier Galvan (Colombian Council Ramiro Juan Trujillo Blanco (Transtech) Oceania for Energy Efficiency) Atul Raturi (University of the South Pacific) Bosnia and Herzegovina Juan Camilo Gómez Trillos Slađana Božić and Admir Softic (Ministry (Oldenburg University) Southern Africa of Foreign Trade and Economic Relations Javier Rodriguez Joseph Ngwawi (Southern African of Bosnia and Herzegovina) Research and Documentation Centre) Juan Sebastian Pfeiffer (SEOS Energy) Eldar Hukić (Regulatory Commission for West Africa Dominican Republic Energy in the Federation of Bosnia and Jafaru Abdul Rahman (ECOWAS Centre Yderlisa Castillo Herzegovina) for Renewable Energy and Energy (National Energy Commission – CNE) Efficiency – ECREEE) Brazil Francisco Cruz (CNE) Hannes Bauer (ECREEE) Yasmini Bianor Canali Dopico Ecuador Daniel Paco Abenza (ECREEE) (Oldenburg University) Sebastian Espinoza (Instituto Nacional de Suani Coelho (University of São Paulo) Eficiencia Energética y Energías Renovables) Afghanistan Javier Escobar (University of São Paulo) Mojtaba Haidari Rafael Soria (Escuela Politécnica Nacional) (Ministry of Energy and Water) Philipp-Georg Hahn (AHK Rio de Janeiro) Egypt Julio Cesar Madureira Silva Albania Assem Korayem (Solar Energy Development Association) Erlet Shaqe (Albania Energy Association) (Instituto Federal do Espírito Santo) 11

12 RENEWABLES 2018 GLOBAL STATUS REPORT (continued) ACKNOWLEDGEMENTS LEAD COUNTRY CONTRIBUTORS (continued) Italy France Poland Antonello Di Pardo Romain Mauger (University of Groningen) Izabela Kielichowska (Ecofys) (Gestore dei Servizi Energetici) Romain Zissler (Renewable Energy Institute) Portugal Japan João Graça Gomes (Portuguese Gabon Hironao Matsubara (Institute for Renewable Energy Association – APREN) Patrick Atouda Beyala Sustainable Energy Policies – ISEP) (SOAS University of London) Susana Serôdio (APREN) Jordan Germany Qatar Diana Athamneh (Jordan Renewable Sebastian Hermann Faraj Saffouri Energy and Energy Efficiency Fund) (Germany Environment Agency) (Hamad Bin Khalifa University) Liberia Sigrid Kusch-Brandt Augustus Goanue (Renewable Energy) Russian Federation (ScEnSers Independent Expertise) Nikolay Belyakov Libya Stefanie Seitz (Deutsches Mariam El Forgani Spain Biomasseforschungszentrum GmbH) (General Electricity Company of Libya) Concha Canovas (Fundación Renovables) Marco Tepper (German Solar Association) Mexico Mikel González-Eguino Daniela Thrän (Helmholtz-Zentrum Miguel Ángel Benítez Torreblanca (Basque Centre for Climate Change) für Umweltforschung GmbH) (National Autonomous University of Mexico) Suriname Helena Uhde Luis Carlos Gutierrez-Negrin Jordi Abadal Colomina (Beijing Institute of Technology) (Geoconsul, SA de CV) (Inter-American Development Bank) Gabriela Hernández-Luna Ghana (CIICAp, Universidad Autónoma Switzerland Daniel Kofi Essien (DANESSIEN Consult) del Estado de Morelos – UAEM) Ulrich Reiter (TEP Energy GmbH) Nana Asare Obeng-Darko Alejandro Limón Portillo (Centro de (University of Eastern Finland) Tanzania Investigación Económica y Presupuestaria) Flavio Odoi-Yorke (Pan African University) Sixbert Mwanga Moldova (Climate Action Network) Greece Surugiu Ruslan (AO Pro-Energy) Lugano Wilson Eirini Tsifopoulou Mongolia (University of Copenhagen) Togo Myagmardorj Enkhmend (Mongolian Ioannis Tsipouridis (R.E.D. Pro Consultants) Nilto Labah-Niemeyer Wind Energy Association) (European Central Bank) Honduras Montenegro Dosse Sossouga Marco Antonio Flores Barahona Diana Milev (Green Home) (Amis des Etrangers au Togo) (Universidad Nacional Autónoma Myanmar de Honduras) Ukraine Simon Bittner (GIZ) Andriy Konechenkov (Ukrainian Wind Hungary Nigeria Energy Association / World Wind Energy Csaba Vaszko Adedoyin Adeleke (International Support Association – WWEA) Network for African Development; Centre Iceland Galyna Trypolska (Ukrainian National for Petroleum, Energy Economics and Law) Maria Gudmundsdottir Academy of Sciences) Mark Amaza (Power for All) (National Energy Authority of Iceland) Joshua Fakunle (Centre for Petroleum Uruguay Sigurdur Hjaltason (Orkustofnun) Energy Economics and Law) Secretary of Energy – Ministry of India Industry, Energy and Mining (Uruguay) Shehu Ibrahim Khaleel (Renewable Sheikh Adil Edrisi Energy Resources Development Uzbekistan (Banaras Hindu University) Initiatives – RENDANET) Nizomiddin Rakhmanov Abhishek Gaur (Feedback Infra Pvt Ltd) Eromosele Omomhenle (Microsoft) (Tashkent State Technical University) Pallav Purohit (International Institute for Olawale Tinuoye Vietnam Applied Systems Analysis) (Mikano International Limited) Linh H. Blanning Amit Saraogi Oman (Oorja: Empowering Rural Communities) Zimbabwe Maimuna Al Farie (Public Authority Prakriti Sethi (Sciences Po) Zvirevo Chisadza for Electricity and Water) (SolarEyes International) Daksha Vaja (Sustainable Energy) Pakistan Helena Uhde Muhammad Haris Akram (Standing Iran (Beijing Institute of Technology) Committee on Scientific and Technological Ebra Gohari (Parsia Business and Market Cooperation – COMSTECH) Development Solutions) Rahat Ali Khan Mohammad Hosein Seyyedan (SAMANIR) Mahdi Torabi Asr (Carnot Renewable Peru Energy Technology) Fiorella Ampa (WWF Peru) 12

13 LEAD TOPICAL CONTRIBUTORS Solar PV Concentrating Solar Thermal Power Enabling Technologies Carlotta Cambiè (Becquerel Institute) Luis Crespo Rodriguez (European Jake Bartell (Strategen) Solar Thermal Electricity Association) GTM Research Thomas Nowak Piero de Bonis (European Commission) (European Heat Pump Association) Denis Lenardič (pvresources) David Walwyn (University of Pretoria) Bert Witkamp (AEFO) (Becquerel Institute; IEA Gaëtan Masson Photovoltaic Power Systems Programme) Corporate Sourcing Energy Efficiency Dave Renné Eftimiya Salo (IRENA) Stuart White (ISF-UTS) (International Solar Energy Society) Louise Vickery (IEA, ISF-UTS) Michael Schmela (SolarPower Europe) Costs Andrei Ilas (IRENA) Geothermal Power and Heat Solar Thermal Heating and Cooling Pablo Ralon (IRENA) Philippe Dumas Hongzhi Cheng (Shandong SunVision (European Geothermal Energy Council) Management Consulting) Distributed Renewables Margaret Krieger Jan-Olof Dalenbäck for Energy Access (International Geothermal Association) (Chalmers University of Technology) Hary Andriantavy (African Association Krystyna Dawson (BSRIA) Global Overview for Rural Electrification – CLUB-ER) Pedro Dias (Solar Heat Europe) Bruce Douglas (Global Solar Council) William Brent (Power for All) Daniel Mugnier (Tescol) Carlos Gasco (Iberdrola) Giles Bristow (Ashden) Monika Spörk-Dür (AEE – Institute for Rainer Hinrichs-Rahlwes (European Jenny Corry Smith (CLASP) Sustainable Technologies – AEE INTEC) Renewable Energies Federation; German Hannah Daly (IEA) Werner Weiss (AEE INTEC) Renewable Energy Federation – BEE) Yasemin Erboy Ruff (CLASP) Manuel Olivera (C40 Cities) Transpor t Jon Exel (World Bank) Lourdes Sanchez (International Institute Cornie Huizenga (Partnership on Silvia Francioso (Global Off-Grid for Sustainable Development – IISD) Sustainable, Low Carbon Transport Lighting Association – GOGLA) Michael Schack (ENGIE) – SLo C aT ) Michael Franz (EU Energy Initiative Eric Scotto (Akuo Energy) Partnership Dialogue Facility / GIZ / Wind Power Anna Zinecker (IISD) Africa-EU Renewable Energy American Wind Energy Association Cooperation Programme) Heating and Cooling Daniel Fraile (WindEurope) Peter George (Global Alliance for Walter Haslinger (European Technology Clean Cookstoves – GACC) Ivan Pineda (WindEurope) and Innovation Platform on Renewable Caddi Golia (GACC) Jean-Daniel Pitteloud (WWEA) Heating & Cooling) Caitlyn Hughes Liming Qiao (Global Wind Energy Neil Veilleux (MC Group) (Solar Cookers International) Council – GWEC) John Kidenda (PowerGen) Tom Remy (WindEurope) Hydropower / Ocean Energy David Lecoque (GWEC) Steve Sawyer Ana Brito e Melo (WavEC) (Alliance for Rural Electrification) Shruti Shukla (GWEC) Mathis Rogner Aaron Leopold (Africa Minigrid (FTI Consulting) Feng Zhao (International Hydropower Association) Developers Association – AMDA) Scott Sklar (The Stella Group) Neeraja Penumetcha (GACC) Koen Peters (GOGLA) Investment Note: Some individuals have contributed Jem Porcaro (UN Foundation) Simon Bennett (IEA) in more than one way to this report. To Elisa Portale (World Bank) avoid listing contributors multiple times, Françoise d’Estais (United Nations they have been added to the group Environment Programme, Finance Dana Rysankova (World Bank) - where they provided the most informa Initiative) Daniel Alexander Schroth (African tion. In most cases, the lead country, Development Bank) Christine Gruening (United Nations regional and topical contributors also Environment Programme-Frankfurt Katherine Steel (Power Africa – US Agency participated in the Global Status Report School) for International Development) (GSR) review and validation process. Karol Kempa (United Nations Jessica Stephens (AMDA) Environment Programme-Frankfurt Laura Sundblad (GOGLA) School) Adrian Witkamp (European Alternative Angus McCrone Fuels Observatory – AEFO) (Bloomberg New Energy Finance) Michael Waldron (IEA) 13

14 RENEWABLES 2018 GLOBAL STATUS REPORT (continued) ACKNOWLEDGEMENTS PEER REVIEWERS AND OTHER CONTRIBUTORS University); Kilian Reiche (iiDevelopment Institute); Aris Karcanias (FTI Consulting); Yasmina Abdelilah (IEA); Dario GmbH); Ulrich Reiter (TEP Energy Abdul Matiin Kasim (Brunei National Abramskiehn (Climate Policy Initiative); GmbH); Pablo del Rio (Consejo Superior Energy Research Institute); Daniel Diego Acevedo (Bluerise); Christy de Investigaciones Científicas, CSIC); Kaufman (Norton Rose Fulbright); Aikhorin (TechnipFMC); Iqbal Akbar Javier Eduardo Rodriguez (Ministry of Izabela Kielichowska (Polish Wind (Technical University of Berlin); Juan Energy and Mines of Colombia); Heather Energy Association); Ånund Killingtveit Alarcon Marambio (Asia Pacific Energy Rosmarin (InterAmerican Clean Energy (Norwegian University of Science Research Centre); Abdelkader Baccouche Institute); Maria Ryabova (MGIMO and Technology); Benjamin King (US (National Agency for Energy Conservtion University); Marian Rzepka (GIZ); Kumiko Department of Energy, Office of Energy – ANME); Sarah Baird (Let There Be Light Saito (Solar System Development Efficiency & Renewable Energy – DOE, International); Manjola Banja (European Association); Kaare Sandholt (China EERE); Binod Koirala (University of Commission Joint Research Centre – EU National Renewable Energy Centre); Freiburg / Fraunhofer ISE); Karin JRC); Julian Barquin (Endesa); Deanne Oleg Savitsky; Deger Saygin (SHURA Kritzinger (Centre for Renewable and Barrow (Norton Rose Fulbright); Jörg Baur Energy Transition Centre); Bettina Sustainable Energy Studies, University (GIZ); Anastasiya Berdnikova (Russian Schreck (United Nations Industrial of Stellenbosch); Bikash Kumar Sahu Solar Industry Association); Juliette Development Organization); Stephen (MI Solar India Pvt Ltd); Bharadwaj Besnard (World Bank); Yasmini Bianor Schuck (Stephen Schuck and Associates Kummamuru (World Bioenergy Canali Dopico (Oldenburg University); Pty Ltd); Elmar Schuppe (GIZ); Rui Shan Association); Merce Labordena (ETH Peter Bickel (Center for Solar Energy (Duke University); Moustafa Sharshar Zurich); Maryse Labriet (ENERIS); and Hydrogen Research – ZSW); Rina (Chinese Academy of Sciences; Egyptian Stefano Lambertucci (European Solar Bohle Zeller (Vestas); Kristin Bretthauer Petrochemicals Holding Company); Thermal Industry Federation); Patrick (GIZ); Sharon Burghgraeve (IEA); Jens Eli Shilton (Elsol); Fuad Siala (OPEC Lamers (Idaho National Laboratory); Burgtorf (GIZ); Roman Buss (Renewables Fund for International Development); Ferdinand Larona (GIZ); George Academy – RENAC); Luigi Carafa Ralph Sims (Massey University); Manoj Lavidas (Technische Universiteit Delft); (Climate Infrastructure Partnership); Kumar Singh (India Power Corporation Benoit Lebot (International Partnership Kanika Chawla (Council on Energy, Limited); Yogesh Kumar Singh (National for Energy Efficiency Cooperation); Environment and Water); Hongzhi Cheng Institute of Solar Energy India); Neelam Seongho Lee (Korea Photovoltaic (Shandong SunVision Management Singh (World Resources Institute); Emilio Industry Association); Sarah Leitner Consulting); Kung-Ming Chung (Energy Soberon Bravo (Mexico Low Emission (GIZ) ; Pharoah Le Feuvre (IEA); Debora Research Center of the National Cheng Development Program); Elizabeth Spong Ley (Latinoamerica Renovable); Noam Kung University); Ute Collier (IEA); Drew (IEA); Janusz Staroscik (Association of Lior (University of Pennsylvania); Yuri Corbyn (GOGLA); Martin Cracknell Manufacturers and Importers of Heating Lopez (UAO); Detlef Loy (Loy Energy (EirGrid); Philipp Creutzburg (GIZ); Appliances – SPIUG); David Stickelberger Consulting); Lorcan Lyons (Lorcan Lyons Edgar Hernan Cruz Martinez (Colombian (Swissolar); Geoffrey Stiles (Carbon Consulting); Seungwook Ma (DOE, National Planning Department); Impact Consultants); Paul H. Suding; EERE); Vimal Mahendru (IEC); Jaideep Winfried Damm (GIZ); Serena Danesi Zoltan Szabo (Ethanol Europe); Ian Malaviya (Solar Thermal Federation (Zurich University of Applied Sciences); Thomson (Advanced Biofuels Canada); of India); Chris Malins (Techicct); Ana Nguyen Dang Anh Thi; Kelly Davies Olawale Tinuoye (Mikano International Marques Leandro; Emily McQualter (Norton Rose Fulbright); Kurtulus Deger Limited); Costas Travasaros (Greek (IEA); Marcelo Mesquita (ABRASOL); (Durham University); Chang Deng- Solar Industry Association – EBHE); Julia Meunch (Fachverband Biogas e.V.); Beck (ICLEI – Local Governments for Daniel Trier (PlanEnergi); Galyna Michael Milligan (Milligan Grid Solutions); Sustainability); Abdou Diop (Association Trypolska (Ukrainian National Academy Antonio Moreno-Munoz (Universidad Senegalaise pour la Promotion des of Sciences); Tomas Tuominen (GE de Cordoba); Cristian Muresan (ENGIE); Energies Renouvelables); Gabriela Renewable Energy); Gaston Turturro Namiz Mohamed Musafer (Janathakshan); Ehrlich (International Electrotechnical (Universidad de Buenos Aires); Kutay Ülke Federico Musazzi (ANIMA); Marcie Commission – IEC); Anita Eisakhani; (Bural Solar); Anton Usachev (Russian Musser (Independent Power Advocate); Kathryn Emmett (Norton Rose Fulbright); Solar Industry Association); Robert Van Michael Nast (German Aerospace Javier Esparrago (IRENA); David der Plas (Marge); Tineke Van der Schoor Center – DLR); Les Nelson (Solar Heating Ferrari (Sustainability Victoria); Daniel (Hanze University of Applied Sciences); & Cooling Programs, International Garcia (Solar Thermal Manufacturers Ashish Verma (First Solar); Christelle Association of Plumbing and Mechanical Organisation – FAMERAC); Abhishek Verstraeten (GE Global); Arnaldo Vieira Officials); Faith Odongo (Ministry of Gaur (Feedback Infra Pvt Ltd); Ben de Carvalho (ESCOnsult International); Energy and Petroleum, Kenya); Eromosele Grayson (Norton Rose Fulbright); Stefan Colin Wain (Hydro Tasmania); Jurei Yada Omomhenle (Microsoft); Dorothea Gsänger (WWEA); Jonathan Guerrero ; (International Partnership for Energy Otremba (GIZ); Ginevra Papi (Community Sylvain Guillaneuf (ALTEN); Veryan Hann Efficiency Cooperation); Peter Jianhua Energy England); Karl Peet (SLoCaT); (University of Tasmania); Diala Hawila Yang (Case Western Reserve University); Tony Phillips (La Poste); Kara Podkaminer (IRENA); Noel Haynes (InvestinGreen. Abdulmutalib Yussuff (University of (DOE, EERE); Pascual Polo (Spanish Energy); Andrew Hedges (Norton Rose Edinburgh); Sufang Zhang (North China Solar Thermal Association – ASIT); Fulbright); Claire Hilton (IEA); Lars Electric Power University). Edwige Porcheyre (Enerplan); Luka Holstenkamp (Leuphana Universitat Powanga (Regis University); Caspar Lüneburg); Arnulf Jaeger-Waldau (EU We would also like to thank Priesemann (GIZ); Roberta Quadrelli JRC); Rod Janssen (Energy In Demand); Eric Martinot (ISEP), Lead Author (IEA); Daya Ram Nhuchhen (Dalhousie Tomas Kaberger (Renewable Energy Emeritus of the GSR. 14

15 FOREWORD Renewable power accounted for 70% of net additions to global power generating capacity in 2017, but global energy-related carbon dioxide emissions rose 1.4% in 2017, after three years of holding steady. The increase in carbon emissions was the result of robust global economic growth (of 3.7%), lower fossil fuel prices and weaker energy efficiency efforts. This year’s Renewables 2018 Global Status Report (GSR) reveals two realities: one in which a revolution in the power sector is driving rapid change towards a renewable energy future, and another in which the overall transition is not advancing with the speed needed. While momentum in the power sector is positive, it will not on its own deliver the emissions reductions demanded by the Paris climate agreement or the aspirations of Sustainable Development Goal 7. The heating, cooling and transport sectors, which together account for about 80% of global total final energy demand, are lagging behind. But the news is not all bad. Renewable power generation capacity saw its largest annual increase ever with an estimated 178 gigawatts added globally. New solar photovoltaic generating capacity alone was greater than additions in coal, natural gas and nuclear power combined. And while China, Europe and the United States accounted for nearly 75% of the global investment in renewable power and fuels, 2017 saw significant investment in developing country markets. When measured per unit of gross domestic product, the Marshall Islands, Rwanda, the Solomon Islands, Guinea-Bissau and many other developing countries are investing as much as or more in renewables than developed and emerging economies. These positive developments need to be scaled up for a global energy transition. Corporate sourcing of renewable power is also on the rise. Initially many companies saw the adoption of renewable energy solutions mainly as an act of corporate social responsibility. Significant reductions in renewable energy costs, however, as well as maturing market and policy environments, have made renewables cost-competitive and attractive sources of energy in their own right. As this year’s report shows, corporate renewable energy sourcing has moved beyond the United States and Europe and is now found in countries such as Burkina Faso, Chile, China, Egypt, Ghana, India, Japan, Mexico, Namibia and Thailand. Better reporting is needed to reflect the myriad developments happening at the small scale and in end-use sectors. Grassroots efforts, decentralised solutions, innovation, start-ups, off-grid applications, solar thermal and other activities are not visible when reporting at - the global level, yet collectively they make a significant contribution. These developments offer opportunities for scaling up and further ing the transition in the energy system. Collecting data and tracking the evolution of small-scale solutions as well as how renewables are being used in key sectors such as transport and agriculture must be a new priority. Building on the data, and in an attempt to present an increasingly complex picture in the renewables sector, REN21 has created Advancing the Global Renewable Energy Transition: Highlights of the REN21 Renewables 2018 Global Status Report in Perspective . Like its 2017 predecessor, this document presents the overarching trends and developments from 2018 so that policy makers and others can more easily understand the significance of the latest renewable energy developments. Attention is paid to the uneven distribution of renewables at both the sector and regional levels. The document complements the Renewables 2018 Global Status Report . In closing, I would like to thank all those who have contributed to the successful production of this year’s report. At its heart is a multi-stakeholder network of more than 900 experts who give their time and expertise. They are complemented by the research direction and lead authoring team Janet L. Sawin, Jay Rutovitz and Freyr Sverrisson, the section authors, GSR Project Manager Hannah E. Murdock and the dedicated team at the REN21 Secretariat, under the leadership of Executive Secretary Rana Adib and her predecessor, Christine Lins. Arthouros Zervos Chair, REN21 15

16 ES EXECUTIVE SUMMARY AkzoNobel, DSM, Google and Philips formed a unique partnership to jointly sign two power purchase agreements (PPAs) in 2016 to create two wind power projects – Krammer and Bouwdokken – in Zeeland, the Netherlands. Together, these two wind parks have a total capacity exceeding 140 MW, Bouwdokken Windpark, Zeeland, enough to power some 128,800 EU households. The consortium represents a potentially replicable model The Netherlands for multiple renewable energy buyers to aggregate their electricity demand under a single PPA deal. 16

17 EXECUTIVE SUMMARY 01 GLOBAL OVERVIEW capacity installations were remarkable – nearly double those of ositive developments show that the renewable energy transition is possible, but advances so far wind power (in second place) – adding more net capacity than P are uneven across sectors. coal, natural gas and nuclear power combined. The year 2017 was another record-breaking one for renewable In the transport sector, the use of biofuels is still held back by energy, characterised by the largest ever increase in renewable sustainability debates, policy uncertainty and slow technological power capacity, falling costs, increases in investment and progress in advanced fuels, such as for aviation. Similarly, renewable i advances in enabling technologies. Many developments heating and cooling continues to lag behind. Both sectors receive during the year impacted the deployment of renewable energy, much less attention from policy makers than does renewable including the lowest-ever bids for renewable power in tenders power generation. However, lack of policy attention does not throughout the world, a significant increase in attention to reflect relative importance, as heating and cooling account for 48% electrification of transport, increasing digitalisation, jurisdictions of final energy use, transport for 32% and electricity for 20%. pledging to become coal-free, new policies and partnerships on The interconnection of power, heating and cooling, and transport carbon pricing, and new initiatives and goals set by groups of in order to integrate higher shares of renewable energy gained governments at all levels. increased attention during the year, in particular the electrification Increasingly, sub-national governments are becoming leaders in of both heating and transport. renewable energy and energy efficiency initiatives. At the same time, many developing and emerging countries are expanding their deployment of and investment in renewables and related infrastructure. The private sector is also increasingly playing a role in driving the deployment of renewable energy through its procurement and investment decisions. As of 2016, renewable energy accounted for an estimated 18.2% of global total final energy consumption, with modern renewables representing 10.4%. The number of countries with renewable energy targets and support policies increased again in 2017, and several jurisdictions made their existing targets more ambitious. Strong growth continued in the renewable power sector, while other renewable sectors grew very slowly. Solar photovoltaic (PV) i “Heating and cooling” in this report refers to thermal applications including climate control/space heating, heat for industrial use, cooking, agricultural drying, etc. 17

18 RENEWABLES 2018 GLOBAL STATUS REPORT HEATING AND COOLING POWER There is slow progress in renewable energy uptake in The electricity transition is well under way, due mostly to increases in installed capacity and in the cost- heating and cooling. competitiveness of solar PV and wind power. Modern renewable energy supplied approximately 10.3% of total global energy consumption for heat in 2015. Another 16.4% Renewable power generating capacity saw its largest annual was supplied by traditional biomass, predominantly for cooking increase ever in 2017, raising total capacity by almost 9% over and heating in the developing world. While additional bio-heat, 2016. Overall, renewables accounted for an estimated 70% of net additions to global power capacity in 2017, due in large part geothermal direct use and solar thermal capacities were added, growth was very slow. to continued improvements in the cost-competitiveness of solar PV and wind power. Energy demand for cooling is growing rapidly, and access to cooling is an issue for health and well-being. Renewables Solar PV led the way, accounting for nearly 55% of newly currently play a small role in providing cooling services, although installed renewable power capacity in 2017. More solar PV capacity was added than the net additions of fossil fuels and there is considerable potential. nuclear power combined. Wind (29%) and hydropower (11%) accounted for most of the remaining capacity additions. Several TRANSPORT countries are successfully integrating increasingly larger shares Renewable energy progress in the transport sector remains of variable renewable power into electricity systems. slow. Biofuels provide most of the current renewable energy Renewable-based stand-alone and off-grid single home or contribution, although electrification is gaining attention. mini-grid systems represented about 6% of new electricity The renewable energy share of transport continues to be low connections worldwide between 2012 and 2016. (3.1%), with more than 90% provided by liquid biofuels. Electrification of the transport sector expanded in 2017 – with electric vehicles (EVs) exceeding 1% of global light vehicle sales – and a number of countries announced plans to phase out sales of petrol and diesel vehicles. There are signs that the shipping and aviation sectors also may become open to electrification. Further electrification of the transport sector has the potential to create a new market for renewable energy and to facilitate the integration of higher shares of variable renewable energy, provided that the policy and market settings are suitable. More solar PV capacity was added in 2017 than the net additions of coal, gas and nuclear combined 18

19 RENEWABLE ENERGY INDICATORS 2017 2016 2017 INVESTMENT 1 274 279.8 New investment (annual) in renewable power and fuels billion USD POWER GW 2,017 Renewable power capacity (including hydro) 2,195 1,081 Renewable power capacity (not including hydro) 922 GW 2 Hydropower capacity 1,114 GW 1,095 Bio-power capacity 114 122 GW Bio-power generation (annual) 501 TWh 555 Geothermal power capacity GW 12.8 12.1 3 Solar PV capacity GW 303 402 Concentrating solar thermal power (CSP) capacity GW 4.8 4.9 Wind power capacity 539 GW 487 Ocean energy capacity GW 0.5 0.5 HE AT 4 Solar hot water capacity GW 472 456 th TRANSPORT Ethanol production (annual) billion litres 103 106 FAME biodiesel production (annual) 31 billion litres 31 HVO production (annual) 5.9 6.5 billion litres 5 POLICIES Countries with national/state/provincial renewable # 176 179 energy targets 57 # 57 Countries with 100% renewable electricity targets Countries with 100% renewable heating and cooling targets # 1 1 1 Countries with 100% renewable transport targets # 1 Countries with 100% renewable energy in primary # 1 1 or final energy targets # 21 22 States/provinces/countries with heat obligations/mandates 6 States/provinces/countries with biofuel mandates 68 70 # States/provinces/countries with feed-in policies # 110 113 # 33 33 States/provinces/countries with RPS/quota policies # 34 29 Countries with tendering (held in 2017) 7 Countries with tendering (cumulative) # 73 84 1 Investment data are from Bloomberg New Energy Finance and include all biomass, geothermal and wind power projects of more than 1 MW; all hydropower projects of between 1 and 50 MW; all solar power projects, with those less than 1 MW estimated separately; all ocean energy projects; and all biofuel projects with an annual production capacity of 1 million litres or more. 2 The GSR strives to exclude pure pumped storage capacity from hydropower capacity data. 3 Solar PV data are provided in direct current (DC). See Methodological Notes in this report for more information. 4 Solar hot water capacity data include water collectors only. The number for 2017 is a preliminary estimate. 5 A country is counted a single time if it has at least one national or state/provincial target. 6 Biofuel policies include policies listed both under the biofuel obligation/mandate column in Table 2 (Renewable Energy Support Policies) and in Table R7 (Renewable Transport Mandates at the National/State/Provincial Levels, End-2017.) 7 Data for tendering reflect all countries that have held tenders at any time up through the year of focus. Note: All values are rounded to whole numbers except for numbers <15 and investment, which are rounded to one decimal point. Where totals do not add up, the difference is due to rounding. FAME = fatty acid methyl esters; HVO = hydrotreated vegetable oil. 19

20 RENEWABLES 2018 GLOBAL STATUS REPORT POLICIES FOR HEATING AND COOLING 02 POLICY LANDSCAPE Policies aligning renewables and energy efficiency are Renewable energy policies and targets remain focused on common in the buildings sector, but not in industry. the power sector, with support for heating and cooling and The buildings and industry sectors often see alignment transport still lagging. between policies for renewable energy and energy efficiency, Renewable energy continues to attract the attention of policy with such measures routinely aimed at both increasing makers worldwide. Renewable technologies for power generation, renewable energy supply and reducing energy demand. heating and cooling, and transport are considered key tools for Often these policies encourage the use of renewable advancing multiple policy objectives, including boosting national energy in heating and cooling. By the end of 2017, at least energy security and economic growth, creating jobs, developing 145 countries had enacted energy efficiency policies, and at new industries, reducing emissions and local pollution, and least 157 countries had enacted energy efficiency targets. providing affordable and reliable energy for all citizens. Mandatory and voluntary energy codes for buildings, one of Many historical policy trends remained unchanged in 2017. The the most common policy tools to promote renewables and growth of renewable energy around the world continues to be energy efficiency in the buildings sector, exist in more than spurred by a combination of targeted public policy and advances 60 countries worldwide. By comparison, specific mechanisms in energy technologies. Direct policy support for renewable to increase renewable energy use for industrial processes are energy once again focused primarily on power generation, with not commonplace, although countries including Mexico and support for renewable technologies lagging in the heating and Tunisia launched new support mechanisms during 2017. cooling and transport sectors. Policies coupling the thermal (heating and cooling), transport and power sectors – and policies increasing the linkages between renewable energy and energy efficiency – continue to emerge slowly. New cross-sectoral integrated policies were introduced in 2017 in several countries, including Indonesia and Switzerland. Renewable energy and energy efficiency also are being advanced in some cases by climate change policies, including under commitments to achieve net-zero emissions or through specific mechanisms such as carbon taxes, the elimination of fossil fuel subsidies, and emissions trading schemes. In 2017, China launched the world’s largest emissions trading scheme, with the first phase of the new cap-and-trade programme focusing on the country’s power sector. Targets remain one of the primary means for policy makers to 57 countries express their commitment to renewable energy deployment. Targets are enacted for economy-wide energy development as have 100% renewable well as for specific sectors. As of year-end 2017, targets for the electricity targets renewable share of primary and final energy were in place in 87 countries, while sector-specific targets for renewable power were in place in 146 countries, for renewable heating and cooling in 48 countries, and for renewable transport in 42 countries. 20

21 POLICIES FOR TRANSPORT RENEWABLES INTEGRATION, SECTOR COUPLING AND SYSTEM-WIDE ENERGY TRANSFORMATION POLICIES Cities lead in “greening” public transport fleets, but policy New cross-sectoral integrated policies are emerging to attention is lacking for rail, aviation and shipping. support integration of variable renewables. Policies to promote renewable energy and energy efficiency Many policy makers and regulators are leading in efforts to in the transport sector continued to focus primarily on road address the need for increased flexibility in electricity grids. transport, promoting biofuels, electric mobility and fuel-efficiency. Their challenge is to modify policies, standards, and market and Rail, aviation and shipping have drawn comparably less policy regulatory frameworks to effectively harness the benefits that attention. However, many cities are expanding policy coverage, can be derived from variable renewable energy, while ensuring taking steps to integrate renewable solutions into public transport system reliability and security of supply. Policies that promote fleets, including city rail systems. grid services, such as synthetic inertia and voltage regulation, as well as enabling technologies such as energy storage, are POLICIES FOR ELECTRICITY increasingly playing a role in the advancement of energy systems. Use of tendering continues to spread, yet feed-in policies Similarly, some policy makers are starting to take a systems view, remain vital in support schemes for renewables. introducing cross-sectoral policies that advance the coupling of electricity, transport, and heating and cooling to provide As renewable power technologies and markets have matured, economy-wide benefits. policy makers have grappled with new challenges related to integrating renewable electricity into power systems. Many countries are moving away from some of the policy mechanisms that served as the foundational elements of numerous renewable energy support programmes. Developed countries have followed the lead of emerging economies such as Brazil and South Africa by continuing to replace feed-in policies with renewable energy tenders. More than 29 countries held renewable energy tenders in 2017. Feed-in policies remain a vital component of many national support schemes for renewables, often for promoting the development of small-scale renewable energy systems. Two countries adopted new feed-in policies in 2017 (Zambia and Vietnam), increasing the number of countries with such policies in place to 113, while rates set under many existing policies were revised. New net metering policies also were enacted in six countries in 2017, primarily to promote rooftop solar PV. 21

22 RENEWABLES 2018 GLOBAL STATUS REPORT HYDROPOWER MARKET AND INDUSTRY TRENDS 03 Hydropower industry prioritises sustainability, modernisation and digitalisation of facilities. BIOENERGY Global additions to hydropower capacity in 2017 were an estimated Modern use of bioenergy for heating is growing slowly due 19 GW, bringing total capacity to approximately 1,114 GW. While to a lack of policy attention and to low fossil fuel prices. significant, this is the smallest annual increment seen over the last Bioenergy is the largest renewable contributor to global final five years. China remained the perennial leader in commissioning energy demand, providing nearly 13% of the total. The traditional new hydropower capacity, accounting for nearly 40% of new use of biomass in developing countries (for cooking and heating) installations in 2017, and was followed by Brazil, India, Angola and accounts for almost 8% of this, and modern use for the other Turkey. Other countries that added significant capacity included 5%. Modern bioenergy provides about 4% of heat demand Iran, Vietnam, the Russian Federation and Sudan. in buildings and 6% in industry, as well as some 2% of global Pumped storage is the dominant source of large-scale energy electricity generation and 3% of transport needs. storage, accounting for an estimated 96% of global energy Growth in modern use of bioenergy for heating has been relatively storage capacity. Global pumped storage capacity rose by more slow in recent years (below 2% annually) due to a lack of policy than 3 GW in 2017, for an estimated year-end total of 153 GW. attention and to low fossil fuel prices. The electricity sector Among the priorities of the hydropower industry in 2017 were has seen more rapid growth, with generation from biomass continued advances towards more sustainable development of increasing 11% in 2017. China overtook the United States as the hydropower resources, increased climate change resilience, and largest producer of bioelectricity during the year. ongoing modernisation efforts and digitalisation of existing and Production of biofuels for transport increased 2.5% in 2017. new facilities. The United States and Brazil remained the world’s largest producers of ethanol and biodiesel. The production and use of new transport fuels such as hydrotreated vegetable oil (HVO) OCEAN ENERGY have grown significantly over the last five years, and in 2017 Industry’s optimism and development efforts bring ocean HVO accounted for about 6% of total biofuel production by energy closer to commercialisation. energy content. Progress also is being made in developing the technologies needed to produce advanced biofuels for aviation Of the approximately 529 megawatts (MW) of operating use, for example. ocean energy capacity at the end of 2017, more than 90% was represented by two tidal barrage facilities. Ocean energy technologies deployed in open waters (excluding tidal barrage) had a good year, as tidal stream and wave energy saw new GEOTHERMAL POWER AND HEAT capacity come online, much of it in the waters of Scotland. Technology innovation is addressing sector-specific Optimism prevailed in the industry in 2017, particularly in Europe, challenges in the geothermal industry. where some technologies advanced enough to be on the brink An estimated 0.7 gigawatts (GW) of new geothermal power of commercialisation. The industry started constructing its first capacity came online in 2017, bringing the global total to around manufacturing plants, promising greater production scale and 12.8 GW. Indonesia and Turkey accounted for three-fourths of new cost reductions. Government support of ocean energy, through capacity; installations also came online in Chile, Iceland, Honduras, direct funding and through research and infrastructure support, Mexico, the United States, Japan, Portugal and Hungary. remains a critical element in ongoing development. Geothermal direct use (direct thermal extraction for heating and ) cooling) increased by an estimated 1.4 gigawatts-thermal (GW th . Space heating of capacity to an estimated global total of 25 GW th SOLAR PHOTOVOLTAICS (PV) continued to be one of the largest and fastest growing sectors, New solar PV installations surpassed net additions of fossil with several new projects feeding into district heat systems in fuels and nuclear power combined. Europe and China, in particular. Solar PV was the top source of new power generating capacity The geothermal industry remained constrained by various in 2017, due largely to strong growth in China, with more solar PV sector-specific challenges, such as long project lead-times installed globally than the net additions of fossil fuels and nuclear and high resource risk, but technology innovation to address power combined. Global capacity increased nearly one-third, to such challenges continued during 2017. The industry is focused . approximately 402 GW dc on advancing technologies to reduce development risk and to cost-effectively tap geothermal resources in more locations, as Although solar PV capacity is concentrated in a short list of well as to reduce the potential environmental consequences. countries, by year’s end every continent had installed at least 1 GW of capacity, and at least 29 countries had 1 GW or more. Solar PV is playing an increasingly important role in electricity generation, accounting for over 10% of generation in Honduras in 2017 and for significant shares in Italy, Greece, Germany and Japan. 22

23 i Globally, market expansion is due largely to the increasing around 472 GW . China again led for new installations, followed th competitiveness of solar PV, combined with growing demand for by Turkey, India, Brazil and the United States. electricity in developing countries and rising awareness of the Driven by government support, solar district heating advanced technology’s potential to alleviate pollution, reduce carbon dioxide in an increasing number of countries, with the first large-scale emissions and provide energy access. Nevertheless, most global installations coming online in Australia, France, the Kyrgyz demand continues to be driven largely by government policy. Republic and Serbia. By year’s end, an estimated 296 large-scale The year 2017 saw record-low auction prices driven by intense solar thermal systems were connected to heating networks. competition, thinning margins for manufacturers and developers The year also saw records for new solar heat for industrial alike, and continued consolidation in the industry. The drive processes (SHIP) installations, driven by economic to increase efficiencies and reduce energy costs has pushed competitiveness, a strong supply chain and policies to reduce air innovations in manufacturing and product performance. Even as pollution. At least 110 such systems (totalling 135 MW ) started th falling prices have challenged many existing solar PV companies, operation globally, raising the world total by 21%. Concentrating low and predictable energy prices offered by solar PV, along with collector technologies played an increasing role in providing expanding markets, are luring new participants to the industry, space heating and industrial heat, with Oman, China, Italy, India including oil and gas companies. and Mexico being the largest markets. For the first time since the peak years of 2011-2012, new manufacturing capacity was constructed for flat plate and concentrating collectors. To make up for continued declines in their home markets, several European manufacturers increased their export volumes, supplying new emerging markets in North Africa, the Middle East and Latin America. WIND POWER Prices fell rapidly for both onshore and offshore wind power, and the offshore sector had its best year yet. The year 2017 brought tumbling bid prices for both onshore CONCENTRATING SOLAR THERMAL POWER and offshore wind power capacity in auctions around the CSP plants with thermal energy storage emerge as a viable world. Bid prices were down due to technology innovation and competitor to fossil fuel thermal power plants. scale, expectations of continued technology advances, reduced Global concentrating solar thermal power (CSP) capacity reached financing costs due to lower perceived risk, and fierce competition 4.9 GW in 2017, with South Africa being the only country to bring in the industry. Electric utilities and large oil and gas companies new CSP capacity online (100 MW). However, at year’s end about continued to move further into the industry. 2 GW of new plants was under construction; China (300 MW Wind power had its third strongest year ever, with more than being built) and Morocco (350 MW) were particularly active. An 52 GW added (about 4% less than in 2016) for a total of 539 GW. estimated 13 gigawatt-hours of thermal energy storage (TES) was China saw installations decline for the second year running, while operational, and most new plants are incorporating TES. Europe and India had record years. Spain remained the global leader in existing CSP capacity – followed by the United States – with Spanish CSP plants In some of the largest wind power markets, strong growth was achieving record electricity generation in 2017. The year also saw driven by looming regulatory changes; elsewhere, wind energy’s record low CSP tariffs being bid and/or awarded in competitive cost-competitiveness and its potential environmental and tenders in Australia, Chile and the United Arab Emirates, where developmental benefits drove deployment. Rapidly falling prices a 700 MW CSP tender was awarded. CSP with TES emerged for wind power have made it the least-cost option for new power as a viable competitor to fossil fuel thermal power plants. Price capacity in a large and growing number of countries. reductions were driven by competition as well as by technology The offshore wind sector had its best year yet, as total capacity cost reductions aided by ongoing research and development increased 30%. China’s offshore market started to take off activity in the sector. in 2017, and the world’s first commercial floating project was commissioned in Scotland. The sizes of turbines and projects SOLAR THERMAL HEATING AND COOLING continued to increase, and several manufacturers announced plans to produce machines of 10 MW and larger. Solar heat for industrial processes had a record year, and use in district energy systems advanced. At least 13 countries – including Costa Rica, Nicaragua and Uruguay, and several countries in Europe – met 10% or more of An estimated 35 GWth of new solar thermal capacity was their electricity consumption with wind power during 2017. commissioned in 2017, increasing total global capacity 4% to i Total does not include solar concentrator technologies used for space and water heating and for industrial process heat. 23

24 RENEWABLES 2018 GLOBAL STATUS REPORT 05 DISTRIBUTED RENEWABLES INVESTMENT FLOWS 04 Global investment in renewables increased even as costs FOR ENERGY ACCESS continued to fall, and developing and emerging countries Distributed renewables for energy access (DREA) systems are extended their lead over developed countries. to achieve energy increasingly being considered as a solution Global new investment in renewable power and fuels (not access goals. including hydropower projects larger than 50 MW) exceeded Approximately 1.06 billion people (about 14% of the global USD 200 billion annually for the eighth year running. The population) live without electricity, and about 2.8 billion people i was up 2% over 2016, investment total of USD 279.8 billion (38% of the global population) are without clean cooking facilities. despite further cost reductions for wind and solar power The vast majority of people without access to both electricity and technologies. Including investments in hydropower projects clean cooking are in sub-Saharan Africa and developing Asia, larger than 50 MW, total new investment in renewable power and and most of them live in rural regions. fuels was at least USD 310 billion in 2017. DREA systems are increasingly being considered as a solution Dollar investment in new renewable power capacity (including to achieve energy access goals through the deployment of off- all hydropower) was three times the investment in fossil fuel grid solar systems and renewable-based mini-grids, and through generating capacity, and more than double the investment in the distribution of clean cook stoves. Off-grid solar systems, and fossil fuel and nuclear power generation combined. in particular those commercialised through the pay-as-you-go Investment in renewable energy continued to focus on solar (PAYG) business model, were the most significant technology in power, particularly solar PV, which increased its lead over wind the sector, providing electricity access to more than 360 million ii projects, such as wind power in 2017. Asset finance of utility-scale people worldwide. In 2017, although the sales of off-grid solar farms and solar parks, dominated investment during the year at systems decreased in the two main regional markets of East Africa USD 216.1 billion. Small-scale solar PV installations (less than and South Asia, markets in Central Africa, East Asia and the Pacific 1 MW) saw an investment increase of 15%, to USD 49.4 billion. were growing rapidly. An increasing number of private mini-grid developers are actively testing a range of business models and Developing and emerging economies overtook developed helping to move the mini-grids sector to maturity. In India alone, an countries in renewable energy investment for the first time in estimated 206 mini-grid systems were installed during 2016-2017. 2015 and extended their lead in 2017, accounting for a record 63% of the global total, due largely to China. Investment Investment continued to flow to PAYG companies – with an in developing and emerging countries increased 20% to estimated USD 263 million raised in 2017 – although investment USD 177 billion, while that of developed countries fell 19% to in off-grid solar companies as a whole decreased 10% from 2016 USD 103 billion. China accounted for a record 45% of global to 2017. Investment in clean cook stove companies fell in 2016 to investment in renewables (excluding hydropower larger than 50 its lowest level since 2012 (USD 18.1 million), highlighting the need MW), up from 35% in 2016, followed by Europe (15%), the United for more effort to raise funds in the sector. States (14%) and Asia-Oceania (excluding China and India; 11%). A growing trend in 2017 was the establishment of partnerships Smaller shares were seen in the Americas (excluding Brazil and between multinationals, local businesses and/or governments the United States, 5%), India (4%), the Middle East and Africa to deploy DREA systems to meet energy access targets. The (4%) and Brazil (2%). year also saw an increasing number of national governments enhancing the enabling environment to advance DREA. Similarly, development finance institutions continued to support the sector through various programmes and initiatives. Investment in PAYG companies was an estimated USD 263 million in 2017 i Investment-related data do not include hydropower projects larger than 50 MW, except where specified. ii “Utility-scale” here refers to wind farms, solar parks and other renewable power installations of 1 MW or more in size, and to biofuel production facilities with capacity exceeding 1 million litres. 24

25 TOP 5 COUNTRIES 2017 Annual Investment / Net Capacity Additions / Pro duction in 2017 5 4 3 1 2 Investment in renewable power Japan United States Germany China and fuels (not including hydro India over 50 MW) Marshall Investment in renewable power Serbia Guinea-Bissau Solomon Islands Rwanda 1 Islands and fuels per unit GDP Geothermal power capacity Chile Turkey Honduras Iceland Indonesia Hydropower capacity China Brazil India Angola Turkey Solar PV capacity China Turkey Japan India United States Concentrating solar thermal - - - South Africa - 2 power (CSP) capacity Wind power capacity India China United States Germany United Kingdom Solar water heating capacity India China United States Brazil Turkey Biodiesel production Brazil Germany Argentina Indonesia United States Ethanol production United States Brazil China Canada Thailand Total Capacity or Generation as of End-2017 1 2 3 4 5 POWER Renewable power capacity India Germany Brazil United States China (including hydropower) Renewable power capacity China India Germany Japan United States (not including hydropower) per Renewable power capacity Germany/Sweden Denmark Iceland Finland 3 (not including hydro) capita Bio-power generation China United States Germany Japan Brazil Bio-power capacity Germany India China Brazil United States Geothermal power capacity Philippines Indonesia Turkey New Zealand United States 4 Hydropower capacity United States Canada Brazil China Russian Federation 4 Hydropower generation Brazil United States Russian Federation China Canada Solar PV capacity Japan Italy Germany China United States per capita Solar PV capacity Japan Belgium Italy Australia Germany Concentrating solar thermal India South Africa United States Spain Morocco power (CSP) Wind power capacity Germany India Spain China United States Wind power capacity per capita Denmark Germany Portugal Ireland Sweden HEAT Solar water heating collector China Brazil Germany Turkey United States 5 capacity Solar water heating collector Greece Barbados Austria Cyprus Israel capacity per capita 6 Geothermal heat capacity Turkey China Japan Hungary Iceland 1 Countries considered include only those covered by Bloomberg New Energy Finance (BNEF); GDP (at purchasers’ prices) data for 2016 from World Bank. BNEF data include the following: all biomass, geothermal and wind power projects of more than 1 MW; all hydropower projects of between 1 and 50 MW; all solar power projects with those less than 1 MW (small-scale capacity) estimated separately; all ocean energy projects; and all biofuel projects with an annual production capacity of 1 million litres or more. Small-scale capacity data used to help calculate investment per unit of GDP cover only those countries investing USD 200 million or more. 2 Only one country brought CSP capacity online in 2017, which is why no countries are listed in places 2, 3, 4 and 5. 3 Per capita renewable power capacity (not including hydropower) ranking based on data gathered from various sources for more than 70 countries and on 2016 population data from the World Bank. 4 Country rankings for hydropower capacity and generation differ because some countries rely on hydropower for baseload supply whereas others use it more to follow the electric load to match peaks in demand. 5 Solar water heating collector rankings for total capacity and per capita are for year-end 2016 and are based on capacity of water (glazed and unglazed) collectors only. Data from International Energy Agency Solar Heating and Cooling Programme. Total capacity rankings are estimated to remain unchanged for year-end 2017. 6 Not including heat pumps. Note: Most rankings are based on absolute amounts of investment, power generation capacity or output, or biofuels production; if done on a basis of per capita, national GDP or other, the rankings would be different for many categories (as seen with per capita rankings for renewable power not including hydropower, solar PV, wind power and solar water heating collector capacity). 25

26 RENEWABLES 2018 GLOBAL STATUS REPORT advances and cost reductions, the diversification of renewable 06 ENERGY SYSTEMS INTEGRATION energy and other companies into the storage industry, and increasing linkages with VRE. AND ENABLING TECHNOLOGIES Heat pump markets continued to expand, driven by policies Energy systems are adapting to rising shares of renewable to mitigate air pollution (particularly in China) and to advance energy. opportunities to use renewable electricity for heating and With rising penetration of renewable energy – whether variable cooling (particularly in Europe). Heat pumps have the potential renewable energy (VRE; wind and solar power), thermal energy to help balance the electrical system by shifting loads and or gaseous and liquid fuels – there are challenges to integrating reducing VRE curtailment, using (surplus) solar and wind power it into existing energy systems. The penetration of modern to meet heating and cooling demand. Manufacturers continued renewable energy is highest in the electricity sector, where to pursue acquisitions to gain access to new markets and many countries already are successfully integrating high shares know-how, and to increase their market share. of VRE. At least 10 countries generated 15% or more of their Electrification of the transport sector gained increasing electricity with solar PV and wind power in 2017, and many had attention in 2017, and could enable greater integration of far higher short-term shares. renewable electricity. Global sales of electric passenger cars Power systems are adjusting to better accommodate rising increased 58% over 2016, and more than 3 million of them were shares of VRE by increasing system flexibility. Utilities and traveling the world’s roads by year’s end. The passenger car system operators also are adjusting their operations, adding market remained a small share (1.3%) of total passenger vehicle energy storage and digitising systems to help integrate VRE. sales and was eclipsed by two- and three-wheeled EVs. Use At the same time, renewables are evolving to improve the ease of electric buses also increased, with an estimated 386,000 of integration, and state-of-the-art solar PV and wind energy in service (mostly in China). In several countries, utilities are generators can provide a variety of relevant system services to playing a significant role in expanding EV charging points and, stabilise the power grid. along with vehicle manufacturers and others, continue working Several technologies – including energy storage, heat pumps to advance the synergies between EVs and VRE. and electric vehicles – have evolved in parallel with renewable energy and are now helping to integrate VRE into the electricity sector and to facilitate the coupling of renewable power with the thermal and transport sectors. Global sales of Energy storage, mainly in the form of pumped storage, has electric passenger been used for decades to support grid reliability, increase cars increased infrastructure resilience and for other purposes; increasingly, it is being used in conjunction with renewable energy technologies. During 2017, at least 3.5 GW of utility-scale storage capacity was % 58 commissioned. Residential and commercial electricity storage over 2016 capacity also grew rapidly in some countries, particularly in combination with solar PV. The year saw continued technology 26

27 ENERGY EFFICIENCY 07 FE ATURE: 08 The importance of energy efficiency is increasingly CORPORATE SOURCING OF recognised internationally, while global energy intensity RENEWABLE ENERGY continues to fall. Corporate sourcing of renewable energy continued to Dialogue at the international level has begun to recognise the increase and spread to new regions. importance of integrating energy efficiency and renewable energy. International organisations, global campaigns and a Corporations began sourcing renewable energy in the mid- host of other actors are increasingly raising awareness and 2000s to meet their own environmental and social objectives encouraging policy makers to consider the two in concert. As a and to address the growing demand for corporate sustainability result, policies have emerged in recent years that attempt to link from investors and consumers. More recently, renewables have renewables and energy efficiency. become attractive energy sources in their own right, providing cost-competitive energy, long-term price stability and security of In 2016, global gross domestic product (GDP) grew 3%, whereas supply, among other benefits. energy demand increased only 1.1%. However, countries outside of the Organisation for Economic Co-operation and US and European markets account for the bulk of corporate Development (OECD) continue to see increasing energy use renewable energy sourcing, but the practice is spreading, with alongside growing GDP, while OECD countries, as a whole, do not. growth in countries such as Burkina Faso, Chile, China, Egypt, Ghana, India, Japan, Mexico, Namibia and Thailand. The decline in energy demand per unit of economic output has been made possible by a combination of supply- and demand- In 2017, corporations sourced renewable electricity in more than side focused policies and mechanisms as well as structural 70 countries through corporate power purchase agreements changes. These include: the expansion, strengthening and long- (PPAs), utility green procurement programmes and unbundled lasting impact of energy efficiency standards for appliances, renewable electricity certificates (RECs) or guarantees of origin buildings and industries; improved fuel efficiency standards (GOs). In addition, corporations in a large number of countries and, more recently, the growing deployment of EVs – especially worldwide have invested directly in renewable energy systems when supplied by renewable energy sources; fuel switching to for their own consumption. less carbon-intensive alternatives, including renewables; and Unbundled RECs or GOs remain the most popular approach structural changes in industry, including a transition towards less to corporate sourcing. As other cost-competitive options have energy-intensive and more service-oriented industries. become available, however, many large corporations have begun considering sourcing options that allow them to play a more active role in adding new renewable capacity to the grid. The information technology sector continues to purchase by far the largest amounts of renewable energy, mainly through wind energy PPAs. Heavy industry, which has a tradition of owning energy-generating assets or holding bilateral contracts with generators, also has increased its sourcing of renewables in recent years. The options available for corporations to source renewable energy depend greatly on the markets and policy frameworks in which they operate, as well as on the nature of their operations and internal capacity. In response to rising corporate interest in renewable energy sourcing, several initiatives have been established to recognise and further support the development and pursuit of ambitious renewable energy goals through various sourcing options. The importance of integrating energy efficiency and renewable energy is increasingly recognised 27

28 01 GLOBAL - OVER VIEW By the end of 2017, Deutsche Post DHL had 5,000 StreetScooter electric vehicles operating entirely on renewable electricity for the company’s urban postal delivery service. According to DHL, the EVs’ maintenance and wear costs are 60-80% below those for similar conventional vehicles, and the use of emissions by 16,000 tonnes annually, contributing to DHL’s Electric vehicle of renewable electricity reduces the company’s CO 2 Deutsche Post DHL commitment to achieve net-zero emissions by 2050.

29 01 GLOBAL OVERVIEW 01 GLOBAL he year 2017 was another record-breaking one for investment in renewable 2017 was another renewable energy, characterised by the largest ever energy technologies and T increase in renewable power capacity as well as by related infrastructure and record- falling costs, increases in investment and advances in enabling are becoming renewable technologies. Many developments during the year affected the breaking 3 energy leaders. Renewable deployment of renewable energy, including the lowest ever bids year energy investment in for solar and wind power in tenders in several countries around for renewable energy the world, increasing digitalisation, heightened attention to many developing countries electrification of transport, a number of jurisdictions pledging continued to be as high - OVER to become coal-free, new policies and partnerships on carbon or even higher than that pricing, and new initiatives and goals set by governments at in developed countries all levels. 4 when viewed on a per gross domestic product (GDP) basis. Several renewable energy technologies – such as hydropower, p ( See Top 5 Countries table.) bioenergy and geothermal power and heat – have long been established as mainstream and cost-competitive sources of energy. Solar PV and wind power are joining them: both are now competitive with new fossil fuel capacity in an increasing number of locations, and they are coming closer to being competitive with 1 existing fossil fuel and nuclear power generation. Growth in renewable energy deployment and output continued in 2017, particularly in the power sector, thanks to several factors, including: increasing access to finance; concerns about energy VIEW security, the environment and human health; growing demand for energy in developing and emerging economies; the need for access to electricity and clean cooking facilities; and dedicated policy initiatives and ambitious targets. Increasingly, sub-national governments are becoming leaders in renewable energy and energy efficiency initiatives, and national governments in some countries are 2 Many developing and pulling back from leadership roles. emerging economies are increasing their deployment of and 29

30 RENEWABLES 2018 GLOBAL STATUS REPORT Many high-profile announcements and partnerships in 2017 Although renewables could have important impacts on the renewable energy sector. continue to gain ground These include: globally, progress is + % 5.4 uneven across sectors In the context of the United Nations Sustainable Development n and regions. In many is the average growth rate Goals (SDGs), 2017 saw the creation of Sustainability Mobility developing countries, of modern renewables for All (SUM4ALL), a new strategic global alliance that aims to particularly in sub-Saharan over the past decade implement the SDGs in the transport sector, including reducing Africa, energy access the sector’s environmental footprint to combat climate change 5 rates remain low, but rates and pollution. are improving steadily n Sustainable Energy for All (SEforALL) and the Kigali Cooling in Asia. Approximately Efficiency Program launched the Cooling for All initiative aimed 1.06 billion people worldwide lived without electricity in 2016 at identifying the challenges and opportunities of expanding i (latest data available ), while about 2.8 billion people lack access access to affordable, sustainable cooling solutions through the 16 to clean cooking facilities. Despite rapid expansion of renewable intersection of the Paris Climate Agreement, the SDGs and the energy capacity and output, particularly of solar photovoltaic 6 Montreal Protocol’s Kigali Amendment. (PV) and wind power, fossil fuels continue to make up the China launched the world’s largest emissions trading scheme, n overwhelming majority of global total final energy consumption 17 and a coalition of national and sub-national governments (TFEC). launched the Carbon Pricing in the Americas co-operative As of 2016, modern renewables (not including traditional use of 7 framework. biomass) accounted for approximately 10.4% of TFEC, a slight n In November 2017, a group of 27 national, provincial, state and 18 increase compared to 2015. ( p See Figure 1.) The greatest city governments launched the Powering Past Coal Alliance, portion of the modern renewable share was renewable electricity committing to phasing out coal power by 2030; by early 2018, (accounting for 5.4% of TFEC), most of which was generated 8 membership had surpassed 60. 19 by hydropower (3.7%). It was followed by renewable thermal energy (an estimated 4.1% of TFEC) and transport biofuels (about n Twenty-five C40 member cities around the world established 20 0.9%). Traditional use of biomass, primarily for cooking and goals to reach net-zero emissions by 2050, with a focus heating in developing countries, accounted for an additional on improving energy efficiency and increasing the use of 21 9 7. 8% . Combined renewable energy accounted for an estimated renewable energy in urban buildings. 22 18.2% of TFEC. The European Commission, the Global Covenant of Mayors n and R20–Regions of Climate Action created a joint venture The overall share of renewable energy in TFEC has increased only to support sub-national authorities in Africa in identifying, modestly in recent years, despite tremendous growth in some 23 structuring and developing bankable low-carbon and climate- renewable sectors. See Figure 2.) p A primary reason for this ( resilient infrastructure projects, with a focus on energy access modest rise is the continued growth in overall energy demand 10 and renewable energy projects. (except for a decline in 2009 following the global economic recession), which counteracts the strong forward momentum A multi-stakeholder group launched the Transport n 24 of modern renewable energy technologies. In addition, the Decarbonisation Alliance, with national governments from traditional use of biomass has grown slowly on a global basis Costa Rica, France, the Netherlands and Portugal, as well as and has even declined in some countries. Although this is a the Paris Process on Mobility and Climate, alongside cities, positive development, it is slowing the growth of the total global regions, and private companies committed to ambitious action 11 renewable energy share. on transport and climate change. n The global Electric Vehicles Initiative launched the [email protected] Campaign, setting a collective goal of a 30% market share for electric vehicles (EVs) among all passenger cars, light commercial vehicles, buses and trucks by 2030, a target that can help open up opportunities for greater use of renewable 12 energy in the transport sector. While these developments are promising, renewables and the broader energy sector face several challenges. Strong global economic growth led to an estimated 2.1% increase in energy demand in 2017 – more than twice the average increase over 13 Energy-related carbon dioxide (CO ) the previous five years. 2 emissions rose – by an estimated 1.4% – in 2017 for the first time 14 In some instances, jurisdictions moving away from in four years. 15 coal have switched to natural gas rather than to renewables. i Throughout this chapter, where data are provided for a year prior to 2017, they reflect the latest data available at the time of writing. 30

31 01 FIGURE 1. Estimated Renewable Share of Total Final Energy Consumption, 2016 Nuclear energy 2.2% Traditional biomass % 79.5 Wind/solar/biomass/ 7.8% geothermal/ocean power Fossil fuels Modern renewables GLOBAL OVERVIEW Biofuels for % 0.9 % 1.7 transport Note: Data should not be 10.4% 3.7 % compared with previous years because of revisions due to Hydropower improved or adjusted data or methodology. Totals may not add up due to rounding. 4.1 % Biomass/solar/ geothermal heat Source: See endnote 18 for this chapter. Growth in Global Renewable Energy Compared to Total Final Energy Consumption, 2005-2015 FIGURE 2. Share of TFEC Average 10-year TFEC (Exajoules) growth rates 400 20% Total final % +1.7 energy consumption 15% 300 Traditional +5.4 % biomass Modern share of renewables TFEC 10% 200 % +2.3 Modern Traditional Combined % +0.2 renewables biomass renewables 5% 100 share of TFEC Fossil and nuclear +1.6 % energy 0% 0 2013 2005 2006 2015 2008 2014 2010 2012 2007 2009 2011 Note: Combined renewables = both modern renewables and traditional biomass. Source: See endnote 23 for this chapter. i Progress in the renewable heating and cooling and transport In the area of transport, the vast majority of global energy needs sectors continues to be relatively slow, despite a number of within the sector are still met by oil (92%), with small proportions 28 As of 2015, modern initiatives to boost the role of renewables and the electrification met by biofuels (2.8%) and electricity (1.3%). 25 Renewable heating and cooling has bioenergy (excluding traditional use of biomass) remained the of heating and transport. received much less attention from policy makers than renewable leader by far in the contribution of renewable energy to transport, 29 However, power generation and has been identified as the “sleeping giant and accounted for the majority of renewable heat. 26 The supply the lack of advancement and attention in these sectors does of renewable energy potential” for the past decade. of modern renewable heat increased 20.5% in the period from not reflect relative importance: as of 2015, heating and cooling 2007 to 2015, whereas renewable electricity generation increased accounted for 48% of TFEC, followed by transport (32%) and 27 30 ( p See Figure 3.) 56.6% during this period. electricity consumption (20%). “Heating and cooling” in this chapter refers to thermal applications including climate control/space heating, heat for industrial use, cooking, agricultural drying, etc. i 31

32 RENEWABLES 2018 GLOBAL STATUS REPORT Renewable Energy in Total Final Energy Consumption, by Sector, 2015 FIGURE 3. Heat Power Transport 48% 32% 20% 27% 25% 3% Renewable Renewable Renewable energy energy energy 8.4% 16.4% 0.3% dern Mo 2.8% renewables Renewable Tradit ional Renewable other than electricity iomass b Biofuels tricity elec electricity 1.9% Renewable electricity for heat Source: See endnote 30 for this chapter. 39 Investment in 2017 held Strong growth continued in the renewable power sector in 2017. accounting for 45% of global investment. steady or trended upwards in Latin America and the United States Solar PV capacity installations were remarkable — nearly double but fell 30% in Europe, where it has been in decline since about those of wind power (in second place) – adding more net capacity 40 31 p See Investment chapter.) ( 2010. Growth has than coal, natural gas and nuclear power combined. been uneven among renewable energy technologies, with the Private sector investment and procurement decisions are playing vast majority of capacity added being solar PV, wind power and a key role in driving renewable energy deployment. As of early See Market and Industry chapter.) hydropower. ( p 2017, 48% of the US-based Fortune 500 companies had targets for emissions reduction, energy efficiency or renewable energy Sector coupling – the interconnection of the power, heating, (or combinations thereof); 10% of companies had a specific cooling and transport sectors in order to integrate higher shares renewable energy target, and 23 companies had a target for of renewable energy – gained increased attention during the 41 32 Such targets have led to the expansion 100% renewable energy. Electrification of heating and transport, although currently year. of corporate power purchase agreements (PPAs): during small (particularly in transport) is seen as providing a pathway 2017, corporate entities worldwide contracted an estimated to the expansion of renewable energy (and an accompanying 5.4 gigawatts (GW) of new renewable power generating capacity, reduction in carbon emissions), and specifically to assist with 42 33 up 26% from 2016. integration of large shares of variable renewable energy (VRE). China, for example, is encouraging the electrification of residential Although US and European markets continued to account for the heating, manufacturing and transport in regions that have high bulk of corporate renewable energy sourcing, corporate sourcing concentrations of renewable power to reduce curtailment of wind of renewable electricity has spread to regions around the world, 34 power, solar PV and hydropower, as well as to combat air pollution. in countries as diverse as Burkina Faso, Chile, China, Egypt, 43 A number of US states are examining options for electrification By early Ghana, India, Japan, Mexico, Namibia and Thailand. of the transport, industrial, residential and commercial end-use 2018, more than 130 leading global corporations had joined the 35 sectors to allow for increasing the overall renewable energy share. RE100 initiative – a network of corporations committed to using 44 100% renewable electricity – up from 87 corporations in 2016. Global investment in renewable power and fuels in 2017 totalled See Feature chapter.) p ( USD 279.8 billion (excluding hydropower plants larger than 50 megawatts (MW)), up 2% from 2016 but 13% below the all- Shareholder pressure and the rising competitiveness of the 36 Nearly all of the investment was in solar time high in 2015. renewables sector also has resulted in increased investment 37 45 The costs of these rapidly PV (57%) and wind power (38%). Large oil in renewable energy by the fossil fuel industry. growing technologies have fallen so quickly that renewable energy corporations more than doubled their number of acquisitions, capacity installations in 2017 exceeded those in 2016 despite project investments and venture capital stakes in renewable lower absolute investment, as each dollar represents more capacity energy in 2016 relative to 2015, and 49% of all deals over the past 38 Developing and emerging economies accounted on the ground. 15 years involved renewable energy, the majority of which included 46 for 63% of total renewable energy investment, a higher share than However, these companies' investment in renewables solar PV. 47 remains limited compared to their spending on fossil fuels. developed countries for the third year in a row, with China alone 32

33 01 Some oil companies and many other energy companies also have during the year. Further, The number of cities started investing in distributed renewables for energy access the number of cities 48 i powered by at least 70% ) systems in developing and emerging economies. (DREA powered by at least renewable electricity DREA systems continued to play an important role in providing 70% renewable electricity electricity access to households in remote areas in 2017 and to more than doubled more than increasing access to clean cooking. Renewable energy stand- between 2015 and 2017, GLOBAL OVERVIEW alone and mini-grid systems accounted for some 6% of new from 42 to 101, including doubled 49 electricity connections worldwide between 2012 and 2016. Auckland, Brasilia, Nairobi ween 2015 and 2017 bet 53 Additionally, the number of clean cook stoves distributed more and Oslo. than tripled in 2016 compared to 2015, although the majority At the global level, (71%) of these were liquefied petroleum gas, followed distantly international climate by wood and charcoal (23%), with modern renewables making negotiations continued to intersect with renewable energy policy. 50 The synergies between energy efficiency and up the remainder. Of the 168 parties that had submitted Nationally Determined renewable energy are particularly salient for improving access Contributions (NDCs) under the Paris Agreement by the end of to modern energy services at least cost, as integrating super- October 2017, 109 of these included quantified renewable energy efficient appliances, for example, can reduce the annualised 54 targets, and a further 36 referred to renewable energy action. system cost by up to 30%, despite higher upfront appliance ii in Bonn, Germany in 2017, However, during climate negotiations 51 ( See Distributed Renewables chapter.) p costs. parties did not yet agree on how NDCs should be organised, In all sectors, renewable energy support policies continued to play delivered and updated, leaving uncertainty on how national 55 a crucial role. The number of countries with renewable energy renewable energy commitments would be ramped up. targets and support policies increased again in 2017; targets Carbon pricing policies, if well designed, may incentivise the were in place in 179 countries at the national and/or sub-national deployment of renewable energy technologies by increasing level (up from 176 countries in 2016), and several jurisdictions the comparative cost of higher-emission fuels and technologies 52 However, policy made their existing targets more ambitious. 56 The number through the inclusion of at least some externalities. support continues to lag in the renewable heating and cooling of jurisdictions worldwide with carbon pricing policies in place See Policy Landscape chapter and p ( and transport sectors. 57 ( p See Figure 4.) stood at 64 by year’s end, up from 61 in 2016. Reference Tables R3-R11. ) As of April 2018, between 20% and 25% of global greenhouse gas emissions were covered by an explicit carbon price, up from Sub-national governments contributed significantly to renewable 13% at the end of 2016, with the increase due mainly to the entry energy deployment in 2017: an increasing number of communities, 58 into force of China’s scheme. cities and regions introduced 100% renewable energy targets DREA systems are renewable-based stand-alone and off-grid single home or mini-grid systems, independent of a centralised electricity grid, that supply modern i energy services to households. They provide a wide range of services – including lighting, operation of appliances, cooking, heating and cooling – in both urban and rural areas of the developing world. These negotiations took place at the 23rd Conference of the Parties (COP23) to the United Nations Framework Convention on Climate Change. ii 33

34 RENEWABLES 2018 GLOBAL STATUS REPORT FIGURE 4. Carbon Pricing Policies, 2017 NATIONAL POLICIES Regional emissions trading system (ETS) (EU-28-plus) Both regional ETS (EU-28-plus) and national carbon tax National ETS National carbon tax Both national ETS and national carbon tax Source: See endnote 57 for this chapter. SUBNATIONAL POLICIES Sub-national ETS Both sub-national ETS and sub-national carbon tax Ontario a lifetime of approximately 40 years, can both lock in carbon- The Chinese policy includes carbon taxes, as well as emissions Québec Sub-national carbon tax British Columbia intensive generation and lock out renewable power. Globally, trading, among some 1,700 power companies that collectively Alberta 59 ) annually. 654 GW of new coal plants are in development throughout emit more than 3 billion tonnes of carbon dioxide (CO 2 Saitama 68 California For comparison, in 2016, the European Union’s Emissions Trading the world. Tokyo 60 In . Scheme (EU ETS) covered around 1.7 billion tonnes of CO 2 Direct global subsidies to fossil fuels were estimated to be at least Connecticut late 2017, EU members reached agreement on EU ETS reforms Beijing USD 360 billion in 2016, a 15% reduction from 2015 but more than Delaware Chongqing to increase the scheme’s impact; these included an agreement Maine double the estimated subsidies to renewable power generation, Fujian to reduce the number of emissions certificates issued and to Maryland 69 In 2017, the Group of Twenty (G20) reaffirmed at USD 140 billion. Hubei Massachusetts 61 The Carbon accelerate the cancellation of surplus certificates. Guangdong its 2009 commitment to phasing out “inefficient fossil fuel New Hampshire Shanghai Pricing in the Americas initiative, launched in 2017, includes New York subsidies”, yet progress is slow and large investors, insurers Shenzhen Rhode Island members from North, Central and South America and aims to and civil society have called for both increased transparency Tianjin Vermont strengthen the implementation of carbon pricing as a central 70 The main obstacles identified and acceleration of the process. policy instrument in order to advance action on climate change, include the lack of a clear definition for “inefficient subsidies”, the the shift to “clean” energy, innovation and the promotion of absence of mandatory reporting and the lack of timelines for the 62 sustainable economic development. 71 phase-out commitments. Developments in the wider energy landscape in 2017 have At the same time, however, an increasing number of companies affected the context in which renewable energy is developing. that own, develop or operate coal power plants shifted away Low fossil fuel prices continued to pose a challenge to renewable 72 Utilities in Africa, Australia, from the coal business during 2017. energy markets during the year, especially in the heating China, Europe, India and the United States have signalled their 63 The Brent crude oil price averaged and transport sectors. intention to move out of fossil fuel generation and into large- around USD 54 per barrel in 2017, which was about half the 73 For example, scale renewables, and some are already doing so. average price of the 2011-2014 period but still nearly double the French-owned utility ENGIE sold off coal and natural gas 64 Natural gas the average price during the 1996-2005 period. assets worth EUR 15 billion (USD 18 billion) between the start of prices also have been relatively low in Europe, Japan and the 2016 and the end of 2017, and will re-invest EUR 22 billion 65 United States in recent years. (USD 26 billion) by the end of 2018 in energy efficiency and 74 Global coal consumption increased an estimated 1% in 2017, Enel (Italy) moved from 25% renewable energy renewables. 66 This was due almost entirely to reversing a two-year decline. capacity in 2010 to 43% at the end of 2016, and electric utilities an increase in coal-fired electricity generation, and would have in 26 out of the 28 EU member states agreed to build no more been even higher if not for a reduction in coal use in industry coal-fired power plants from 2020 onwards and to decarbonise 75 67 The Port of Amsterdam, Constructing a new coal-fired power plant, with and buildings. Europe’s electricity supply by 2050. 34

35 NATIONAL POLICIES Regional emissions trading system (ETS) (EU-28-plus) Both regional ETS (EU-28-plus) and national carbon tax National ETS 01 National carbon tax Both national ETS and national carbon tax Carbon Pricing Policies, 2017 (continued) FIGURE 4. SUBNATIONAL POLICIES Sub-national ETS GLOBAL OVERVIEW Both sub-national ETS and sub-national carbon tax Ontario Québec Sub-national carbon tax British Columbia Alberta Saitama California Tokyo Connecticut Beijing Delaware Chongqing Maine Fujian Maryland Hubei Massachusetts Guangdong New Hampshire Shanghai New York Shenzhen Rhode Island Tianjin Vermont Source: See endnote 57 for this chapter. which handles some HEATING AND COOLING Fossil fuel subsidies 16 million tonnes of coal were more than Energy for heating and cooling accounts for nearly half of per year, also announced global total final energy consumption. This is split roughly plans to stop processing double 76 equally between heat for industrial processes and heat for use coal by 2030. the estimated subsidies 77 in buildings. Demand for space cooling – supplied mostly by The following sections for renewable power electricity via air conditioners – accounts for about 2% of TFEC discuss key developments generation in 2016 78 but is growing rapidly, especially in emerging economies. and trends in renewable Renewable energy can contribute to the heating and cooling energy in 2017 by sector. sector in three ways: through the direct combustion of biomass (both modern and traditional), through direct use of geothermal and solar thermal energy, and by contributing to the electricity supply when it is used for heating or cooling. Heat consumption remains heavily fossil fuel-based. The largest share of renewable heating is associated with traditional biomass for heating and cooking in developing countries, which accounts for 79 some 16.4% of global heat demand. This traditional use of biomass – often in open fires or very inefficient indoor stoves – leads to significant health problems and is often linked to unsustainable levels of fuelwood collection. In developing countries in particular, energy access efforts focus on providing clean cooking solutions ( to replace such practices. See Distributed Renewables chapter.) p Only 10.3% of the heat used worldwide in 2015 was produced from 80 modern renewables, including renewably generated electricity. However, there is increasing appreciation of the role that renewables can play in heating. Renewable energy can serve thermal demand when supplied by electricity, either directly or through the use of heat pumps. Electricity is estimated to account for more than 7% of total heat demand in buildings and industry, with about one-quarter of this 35

36 RENEWABLES 2018 GLOBAL STATUS REPORT 86 81 Further electrification of heating Most renewable estimated to be renewable. under way to overcome technical challenges. 87 heat for industry, as for buildings, is supplied by bioenergy. received increasing attention in 2017, for example in the United 82 See Figure 16 in Market and Industry chapter.) ( p Interest also is rising in using electricity from States and China. i solar PV for heat to increase self-consumption in the face of , solar thermal and geothermal Although additional bio-heat 83 reductions in feed-in tariffs. capacities were added in 2017, growth in these markets is slow. ( See sections on Biomass Energy, Solar Thermal Heating and p Direct use of modern renewables in the heating and cooling Cooling, and Geothermal Power and Heat in Market and Industry sector involves the use of more-efficient bioenergy combustion, chapter.) Heat markets are complex and fragmented, which and the direct use of solar and geothermal heat. The heat can be poses a challenge to policy making, and multiple barriers – both supplied directly to industrial processes, individual buildings or to economic and non-economic – impede the uptake of renewable a larger number of users through the use of district heat systems. 88 While policy options exist to address many of these barriers, heat. Trends in the use of modern renewable energy for heating vary by policy makers have devoted much less attention to renewable technology, although the relative shares of the main renewable heat than to renewable electricity: at the end of 2017, 48 countries heat technologies remained stable during the past few years: had targets in place for renewable heat, compared to 146 for after modern bioenergy, the greatest contributors are renewable 89 In addition, fossil p ( See Policy Landscape chapter.) electricity. 84 electricity, solar thermal and geothermal energy. fuel heating systems sometimes have lower capital costs, which, In the buildings sector, the need is primarily for relatively low- combined with low fossil fuel prices, can discourage a shift to temperature heat – typically in the range of 40 to 70 degrees renewable systems, particularly since energy prices generally do Celsius (°C) – for space and water heating. Heat may be not include the externalities of fossil fuel systems such as carbon supplied via onsite equipment or through a district heat network. 90 emissions and air quality. Renewable energy systems can provide individual heating in District heating and cooling systems are an important enabling residential and medium-size office buildings, either as stand- technology for the use of renewables. District heating can alone systems or in addition to existing central heating systems, combine different sources of heat and can play a positive role and can provide thermal energy for district heat systems. in the integration of VRE, including through the use of electric The most common use of solar thermal in buildings is for domestic ( heat pumps. See Integration chapter.) District heat systems p water heating, and solar heat also is used for space heating in supply about 11% of global space and water heating needs and single-family houses. Geothermal extraction also offers great are particularly suitable for use in densely populated regions that potential for district heating applications (as well as for power have an annual heating demand of four or more months, such 91 production). In Europe, where increasingly efficient building as in the northern latitudes of Asia, Europe and North America. stock can be heated at relatively low supply temperatures Most district heat systems today are fuelled by either coal or (40° C or less for new efficient buildings), interest is rising in the natural gas, with the renewable energy share ranging from only 92 use of both geothermal and solar thermal for district heating. 1% in China and Japan to 42% in Denmark. See Geothermal and Solar Thermal sections in Market and ( p Examples exist of high levels of penetration of renewables in Industry chapter.) district heating, however. Sweden, for example, has a share of 90% 93 The industry sector similarly has a need for low- and medium- European renewables and recycled heat in its heating supply. temperature heat (for example, for drying), although some countries completed 10 new or renovated geothermal district 94 industries require process heat at much higher temperatures Driven by government support, solar heating plants in 2017. – including steam at several hundred degrees Celsius and high- district heating became more important in an increasing number of 95 temperature direct heat for use in kilns by the mineral industries, Globally, bioenergy accounts countries in Europe and elsewhere. 85 96 High-temperature heat remains more complicated for example. for about 95% of renewable energy supplied to district heating. with renewables, and further research and innovation are still ( p See Market and Industry chapter.) i Bioheat is heat from bioenergy. 36

37 01 Although not as widely Modern renewable adopted as district energy accounted for heating, district cooling is attracting growing interest and can be fuelled entirely 10.3 % or in part by renewables. GLOBAL OVERVIEW of total global energy District cooling networks consumption for heat (such as those in Paris in 2017 and Helsinki) generally produce chilled water in centralised energy plants, which is then distributed via underground pipes to provide air 97 conditioning to buildings. Renewables thus far have played a small role in providing cooling services in general (aside from their overall role in electricity supply), yet great potential exists. Locations with high cooling The region remained the world’s second largest North America: demand often also have good solar availability, creating the producer of renewable heat, with renewables meeting just over possibility for cooling using either solar PV systems or direct 112 10% of heat demand. However, growth in the renewable heating 98 options such as solar absorption chilling. However, in many sector is slow, due in part to a decline in the use of renewables countries in Asia, cooling demand peaks or remains high in the in industry, reflecting changes in production patterns in key sub- evening, resulting in pressure on the grid and the need for energy 113 sectors such as pulp and paper. The United States ranked fifth 99 for cooling from sources other than solar PV. worldwide for solar water heating collector capacity additions Energy demand for cooling is growing rapidly, and access to 114 in 2017. The country is seeing increased interest in renewable cooling (including refrigeration) is an issue for health and well- heat strategies and in the electrification of heat to allow greater 100 being, particularly in the developing world. In addition to the new penetration of renewable electricity, as evidenced by a number 115 Cooling for All initiative of SEforALL, the Kigali Cooling Efficiency of US studies. In Canada, installations of bioenergy systems for 116 Program (launched in 2017) aims to support implementation of heat increased 42% in 2016 compared to 2015. the Kigali Amendment to the Montreal Protocol and the transition In 2017, China made high-profile commitments to replacing Asia: 101 to efficient and clean cooling solutions for all. coal as a main source for heating by enacting a coal ban for Developments in the renewable heat and cooling sector occurred 28 cities and emphasising an enhanced role for renewables. in most regions of the world in 2017: In addition, several renewable heating-related targets were 117 established in the country’s 13th Five-Year Plan. China is home Latin America: Modern renewable energy supplied an estimated to the largest new solar thermal system for industrial heating 25% of heat demand in 2016 (another 14% was from traditional 118 102 completed during 2017. India also has a strong market for solar biomass); most heat demand in the region is for industrial use. thermal applications, with installations of solar thermal collectors A few countries rely heavily on renewable sources for industrial 119 up approximately 25% in 2017. Asia was again the largest heat (mainly bioenergy, but also solar and geothermal), including market for solar thermal-driven chillers, with solar thermal cooling Paraguay (90% of industrial heat supplied by renewable energy), 120 103 installations commissioned in China, India and Singapore. Uruguay (80%), Costa Rica (63%) and Brazil (48%). In 2017, Biogas for cooking also expanded further in south-central and Brazil met around 50% of its industrial heat demand with 104 south-eastern Asian countries, including Bangladesh, Cambodia, biomass, the highest share in the world. The country also 121 105 Indonesia and Nepal. was the fourth largest market for solar thermal collectors. ( R See Reference Table R20.) Most heat demand in Africa is for cooking, with the Africa: majority supplied from traditional biomass, which can have Europe: The EU continued to produce the most heat from modern serious impacts on health and generally is not sustainably renewables of any region in 2016, with the majority consumed in 122 produced. See Distributed Renewables chapter.) p ( South 106 buildings. The contribution of modern renewables to heat is Africa and Tunisia were among the top 20 countries worldwide growing as a result of mandatory renewables targets in the EU for installations of solar collectors during 2017, ranking 14th and Renewable Energy Directive (RED) and the inclusion of heat in the 123 18th, respectively. The use of See Reference Table R20.) R ( 107 National Renewable Energy Action Plans of member countries. In biogas for cooking continued to grow in sub-Saharan Africa, November 2017, the energy committee of the European Parliament 124 namely in Ethiopia, Kenya and Tanzania. adopted changes to the RED to 2030, including a recommendation to increase the share of renewables in heating and cooling by 1% Middle East: Although the contribution of renewables to 108 annually. An estimated 19% of the EU’s total heating and cooling heating and cooling in the region is very small, interest is rising 125 demand was met by renewable sources (primarily solid biomass) in developing solar thermal solutions for cooling. Some early 109 126 in 2016, up from 15% in 2010. In 2017, seven European countries demonstration cooling plants were constructed in the region. In were among the top 10 countries worldwide for additions to solar late 2017, Phase 1 of a solar thermal plant delivered the first steam 110 water heating capacity. New solar thermal or geothermal district for enhanced oil recovery to the Amal West oil field in southern 127 heat capacity came online in Austria, France, Germany, Italy, the Oman. p ( See Solar Thermal Heating and Cooling section in 111 Netherlands, Romania, Sweden and Serbia. Market and Industry chapter.) 37

38 RENEWABLES 2018 GLOBAL STATUS REPORT The entry points for TRANSPORT Renewable energy renewable energy in makes up about Energy for the transport sector makes up nearly one-third of total the transport sector 128 final energy consumption globally. The transport sector is made are: the use of 100% up of several sub-sectors, including road transport (urban, long- liquid biofuels (including % 3.1 distance, freight), marine, aviation and rail transport. Despite advanced biofuels) or gains in efficiency, global energy demand in the transport sector of total global of biofuels blended increased 39% between 2000 and 2016, a rise attributed to the energy consumption with conventional fuels; increased movement of freight globally and to the overall increase for transport natural gas vehicles and in transport demand in emerging and developing countries, infrastructure converted 129 among other factors. to run on upgraded biomethane; and the The 2015 Paris Agreement helped put transport on the climate use of electricity for transport (provided that the electricity is agenda and marked the beginning of more serious dialogue on itself renewable), either directly in EVs or for the production of decarbonisation in the sector. Twenty-one voluntary stakeholder synthetic fuels, in particular hydrogen pathways. Some renewable initiatives on sustainable, low-carbon transport were created energy carriers can be used in the internal combustion engines in the follow-up, and in 2017 they converged into the Transport of conventional vehicles, whereas others require the use of Decarbonisation Alliance, a multi-stakeholder alliance comprising alternative vehicles. countries, cities, regions and private sector entities committed to 130 ambitious action on transport and climate change. In addition, Biofuels (principally ethanol and biodiesel) make the greatest planning was initiated in 2017 for emissions reduction in the contribution to renewable transport by far, supplying 2.8% of world 138 internationally governed maritime and aviation sectors, both of energy consumption for transport (as of 2015). Approximately 131 which rely almost exclusively on the use of fossil fuels. New CO 2 1.3% of transport needs are supplied by electricity, with just standards were adopted for aircraft in 2017, and a climate change over one-quarter of that estimated to be renewable electricity 132 139 strategy was adopted for shipping by early 2018. (as of 2015). Global ethanol production increased 2.5% in 2017 compared to 2016, and biodiesel production remained relatively Road transport – in particular the light-duty vehicle market – was 140 stable, following a 9% increase in 2016. ( p See Market and affected in 2017 by the revelation of efforts by at least one major Industry chapter.) 133 automaker to circumvent emissions control requirements. In Growth in the use of biofuels is slow, held back by policy 2017, five countries announced their intention to ban sales of uncertainties related to feedstock sustainability and by slow new diesel and petrol cars – by 2030 (India, the Netherlands and 134 progress in bringing forward new technologies that can produce Slovenia) and by 2040 (France and the United Kingdom). Late See Box 2 in Policy Landscape p ( fuels for markets such as aviation. in the year, a coalition of corporations from China, Europe and the chapter.) In 2017, the BioFuture Platform saw 19 countries agree to United States launched EV100, a new campaign to accelerate the 135 scale up their bioenergy commitments and develop sustainable uptake of EVs and associated infrastructure. In addition to the biofuels targets, and the Mission Innovation Sustainable Biofuels introduction of EV100 and other initiatives (such as [email protected]), Challenge was launched and aims to stimulate and co-ordinate 2017 was a breakthrough year for car manufacturers announcing 141 136 efforts to bring new sustainable biofuels to the market. electric product lines. Opportunities for other renewable energy applications are All of these developments have helped foster a more holistic view opening up due to the increasing electrification of both rail and of decarbonisation strategies, with increased recognition of the road transport, and to the slow increase in the use of hydrogen importance of incorporating renewable energy, transitioning to 142 and synthetic fuels for transport in some countries. Further new transport modes and reducing the overall need for transport electrification of transport has the potential to create a new – in addition to improving vehicle fuel efficiencies and emission 137 market for renewable energy and to ease the integration of VRE, standards, the main focus so far. 38

39 01 provided that market and policy settings ensure the effective harmonisation of charging patterns with the requirements of the See Integration chapter.) electricity system. p ( Even so, the renewable contribution from electricity is small, accounting for about 10% of all renewable transport, with biofuels 143 Although the use of electricity in contributing the remainder. GLOBAL OVERVIEW transport previously was limited mainly to trains, light rail and some buses, in 2017 there were signs of the entire sector opening to electrification, as fully electric passenger cars, scooters and bicycles became more commonplace in many locations, and as prototypes were released for electric heavy-duty trucks, planes 144 Electric passenger vehicles on the road passed the and ships. 145 3 million mark in 2017. The uptake of electric mobility helps to increase the use of renewable energy in transport only if renewables play a significant (and growing) role in the generation of electricity. Already, examples exist of countries and cities – including the Netherlands and the cities of Delhi (India) and Santiago (Chile) – 146 supplying both heavy and light rail with renewable electricity. electricity is likely to be renewable if the country maintains its However, only Austria and Germany had policies in 2017 to current high share of electricity from renewable sources (97% explicitly stimulate the use of renewable electricity in EVs, by 155 from hydropower and 1% from wind power in 2016). linking financial and fiscal incentives for electric mobility to the Rail accounts for around 1.9% of the total energy used in transport 147 While only limited examples are use of renewable electricity. 156 The share of and is the most highly electrified transport sector. available of direct policy linkages between EVs and renewable electricity in this sector was an estimated 39% in 2015, up from electricity, many countries have targets for both EVs and 157 However, about one-fourth of the electricity is 29% in 2005. renewable electricity, which is likely to result in increased use of 158 estimated to be renewable, contributing 9% of rail energy. renewable energy for transport as more EVs come onto the roads Some jurisdictions are opting to increase the share of renewables while more renewable energy becomes available for EV charging. in rail transport to well above the share in their power sectors. See Figure 15 in Policy Landscape chapter.) ( p For example, the Dutch railway company NS announced in 2017 Marine transport consumes around 12% of the global energy that it had achieved its 2016 target to power all electric trains used in transport and is responsible for approximately 2% of 159 Biofuels also are used in the with 100% renewable electricity. 148 The International Maritime Organisation’s CO₂ emissions. rail sector: in 2017, the Netherlands announced that 18 new trains Marine Environment Protection Committee approved a roadmap 160 fuelled with biodiesel were being brought into service. (2017-2023) to develop a strategy for reducing greenhouse gas 149 Multiple entry points for renewable emissions from ships. Road transport accounts for 67% of global transport energy 161 energy are possible in this sector: the use of biofuels in existing use, with passenger vehicles representing two-thirds of this. engines (the most immediate option), the use of synthetic fuels Regional trends related to renewable energy in road transport or hydrogen produced with renewable electricity in modified during 2017 include: engines, direct incorporation of wind power (sails) or solar energy, Asia: Biofuel production in the region increased 2.4% in 2017, well and electrification to the extent that the electricity is renewable. 162 Several Asian below the increase of more than 12% seen in 2016. In 2017, China launched the world’s first all-electric cargo ship, countries remain in the top 15 countries for biofuels production and two large ferries in Sweden were converted from diesel to globally, including China, Thailand, Indonesia, Singapore and 150 In September 2017, the Maritime and Port Authority electricity. ( India. p See Bioenergy section in Market and Industry chapter of Singapore, BHP and GoodFuels Marine signed a letter of intent ) India’s first biomethane-fuelled bus and Reference Table R15. to collaborate on a biofuels pilot project in Singapore, which is 163 started operation in 2017. 151 expected to be carried out in 2018. Countries in the region also were increasingly active in electric Aviation accounts for around 11% of the total energy used in mobility in 2017, although not directly tied to renewables in most 152 In 2016, the International Civil Aviation Organisation transport. cases. EV sales in China increased 69% and accounted for just adopted an agreement to mitigate greenhouse gas emissions under half of the global total; elsewhere in the region, India in the aviation sector, and by the end of 2017, 107 countries announced an EV target, Thailand approved a new EV support representing 91.8% of air traffic had submitted State Action 153 policy, and Malaysia announced its ambition to become a The Action Plans support the production and use of Plans. 164 i Although most countries in the region do “marketing hub” for EVs. produced sustainable aviation fuels, specifically drop-in biofuels 154 not require that their electrified vehicles use renewable electricity, In 2017, from biomass and different types of organic waste. many have renewable electricity targets that will effectively Norway announced a target of 100% electric short-haul flights 165 by 2040; assuming that this target is achieved, much of the determine the “share” of renewable electricity for these vehicles. i Drop-in biofuels have properties enabling them to replace fossil fuels directly in transport systems, or to be blended at high levels with fossil fuels. 39

40 RENEWABLES 2018 GLOBAL STATUS REPORT Europe: Policy support for and public opinion regarding first- POWER Total renewable generation biofuels continued to be uncertain, with ongoing - Renewable power gen power capacity discussions in the region over the role of bioenergy in the EU’s RED erating capacity saw its between 2020 and 2030. Overall biofuel production fell slightly largest annual increase in 2017 despite a rise in production of hydrotreated vegetable more than 166 - ever in 2017, with an esti Europe is home to three of the world’s four largest oil (HVO). mated 178 GW installed producers of biomethane for vehicle fuel – Germany, Sweden and doubled world wide, raising total Switzerland – and the region’s biomethane production increased he decade in t 167 capacity by almost 9% Sales of EVs in Europe increased 12% between 2015 and 2016. 2007-2017 182 Solar PV led over 2016. 39% in 2017 compared to 2016 and accounted for nearly one- 168 the way, accounting for Norway leads the region in total EV quarter of global sales. 169 nearly 55% of newly The increase in the number of sales and market penetration. 183 More solar PV capacity installed renewable power capacity. EVs on Europe’s roads, alongside increasing renewable electricity was added in 2017 than the net additions of fossil fuels and generation, brings opportunities for further decarbonisation of 184 170 nuclear power combined. transport. Wind and hydropower accounted for most of the remaining North America: The United States continued to be the world’s renewable capacity additions, contributing more than 29% and largest producer and user of biofuels, supported both by 185 Total R See Reference Table R1.) ( nearly 11%, respectively. agricultural policy and by the federal Renewable Fuel Standard. renewable power capacity more than doubled in the decade Production of ethanol increased by close to 2.8% in 2017 2007-2017, and the capacity of non-hydropower renewables relative to 2016, and a record average blend rate of 10.08% was 186 171 p See Figure 5.) ( increased more than six-fold. The United States is the largest market globally for achieved. biomethane as a transport fuel, and production, which grew Overall, renewable energy accounted for an estimated 70% of nearly six-fold between 2014 and 2016, increased another 15% i in net additions to global power capacity in 2017, up from 63% 172 North America was the third largest regional market in 2017. 187 By year’s end, global renewable power capacity totalled 2016. for EVs after Europe and China, and EV sales in 2017 were up around 2,195 GW – enough to supply an estimated 26.5% of 27% in the United States and 68% in Canada (Canada being the 188 global electricity, with hydropower providing about 16.4%. 173 ( p See Electric Vehicles section in smaller market of the two). ( p See Figure 6.) Integration chapter.) Ongoing capacity growth and geographical expansion of Latin America: Biofuel production in the region grew 2% in renewable power technologies are driven by a number of factors, 174 Biodiesel production 2017, after remaining stable in 2016. including rising electricity demand in some countries, targeted increased 9% in 2017, building on an 11% rise in 2016, and ethanol renewable energy support mechanisms and continuing cost 175 In Brazil, biodiesel production increased production was stable. declines (particularly for solar PV and wind power). See Market ( p 176 The market for EVs in 12.9%, following a 4.4% decline in 2016. and Industry chapter and Sidebar 2.) South and Central America is still at a very early stage, but some new initiatives emerged. For example, Argentina announced a new support policy for EVs and plans for 220 EV charging stations, and Uruguay launched the first electric route in Latin 177 America, with six charging stations at 60-kilometre intervals. In the case of Uruguay, which gets 98% of its electricity from renewable energy, its electric mobility strategy is part of a larger national goal to increase the share of renewables in the country’s 178 energy mix. Africa: Production and use of biofuels in Africa are still at very low levels, although some signs of growth were apparent. Biofuel production increased 28% (from very low levels) in 2017, up from 179 In Nigeria, the state oil corporation signed an 17% in 2016. agreement with the government of the state of Kebbi to build a new ethanol plant to help meet the government mandate on automotive biofuels production, and in Zambia, Sunbird Bioenergy Africa launched a programme to secure feedstock for an ethanol project for the transport fuel market to provide 15% of 180 Some early sales of EV the country’s petroleum requirements. passenger cars occurred in South Africa, and the country’s first 181 electric bus was launched in Cape Town. i The estimated shares for 2016 and 2017 are derived from different sources (see endnote 187), and therefore the difference may not represent an absolute increase. However, it is an indication that renewable energy’s share of net capacity additions rose significantly in 2017 relative to 2016. 40

41 01 Global Renewable Power Capacity, 2007-2017 FIGURE 5. Gigawatts World Total Global 2,500 renewable 2,195 Gigawatts power capacity 2,000 GLOBAL OVERVIEW Ocean, CSP and geothermal power Bio-power 1,500 Solar PV Wind power Hydropower 1,000 500 0 2013 2014 2012 2015 2016 2017 2011 2010 2009 2008 2007 Source: See endnote 186 for this chapter. Estimated Renewable Energy Share of Global Electricity Production, End-2017 FIGURE 6. 73.5 % Non-renewable electricity % 5.6 Wind power % 16.4 Hydropower 26.5 % Renewable 2.2 % Bio-power electricity % 1.9 Solar PV Ocean, CSP and % 0.4 geothermal power Source: See endnote 188 for this chapter. i Renewable energy tenders in 2017 resulted in record low bid prices The cost-competitiveness of renewable power generation (unsubsidised) continued to improve in 2017. While the average for both solar PV and wind power in several countries, with bids as global levelised costs of energy (LCOE) for the more mature low as USD 30 per megawatt-hour for onshore wind power and 192 technologies – bio-power, geothermal and hydropower – have for solar PV. Reductions in bid prices in the offshore wind power 193 remained relatively stable in recent years, solar and wind power sector also were remarkable in several European countries. have seen years of steady cost declines and are becoming ever Although the use of VRE generation linked to battery storage is 189 more competitive for meeting new electricity generation needs. not widely deployed, wind power-plus-storage and solar PV-plus- The global weighted average LCOE of utility-scale solar PV fell storage have started to compete with natural gas peaking plants 73% between 2010 and 2017, and onshore wind power has 194 in some markets. 190 become one of the most competitive sources of new generation. During the year, the community energy sector in some countries Offshore wind power and concentrating solar thermal power experienced challenges in locations where it traditionally has (CSP) prices also fell over this period, with their global weighted 195 191 been strong, for example in Germany and the United Kingdom. average LCOEs declining 18% and 33%, respectively. p See Table 3 in Market and Industry chapter.) ( This is due primarily to the shift in policies from feed-in tariffs (FITs) i For multiple reasons, tender prices may be lower than LCOEs. For example, bids may include annual adjustments, and tender conditions might include the provision of grid connection to developers. In addition, bids reflect expected future rather than current costs. 41

42 RENEWABLES 2018 GLOBAL STATUS REPORT China alone was home to nearly 30% of the world’s renewable to tenders, which tend to favour large corporate players over 196 power capacity – totalling approximately 647 GW, including However, the number of community wind community actors. 197 201 about 313 GW of hydropower. power projects is rising in some countries outside of Europe. In Australia, for example, the community energy sector expanded i Considering only non-hydropower capacity, the top countries significantly from just 2 projects in 2014 to more than 70 in 2017, were China, the United States and Germany, followed by India, with community investment of some USD 24 million and more 202 ( p See Figure 7 and Reference Japan and the United Kingdom. 198 Community energy than 90 active community energy groups. Table R2. ) projects also are on the rise in Japan, where the total capacity of The world’s top countries for non-hydro renewable power 199 community solar PV projects almost doubled in 2017, to 86 MW. capacity per inhabitant were Iceland (more than 2.1 kilowatts (kW) The top country for total installed renewable power capacity at per inhabitant), Denmark (nearly 1.6 kW), Germany and Sweden the end of 2017 was China, followed distantly by the United States, 203 (both approaching 1.3 kW). 200 Brazil, Germany and India, which moved ahead of Canada. The distinction of non-hydropower capacity is made because hydropower remains the largest single component by far of renewable power capacity and i output, and thus can mask trends in other renewable energy technologies if always presented together. Renewable Power Capacities* in World, EU-28, and Top 6 Countries, 2017 FIGURE 7. Gigawatts 1200 Ocean, CSP and geothermal power 1,081 1100 Gigawatts Bio-power 200 1000 Solar PV 180 900 Wind power 161 800 160 140 700 600 120 106 500 100 429 400 80 334 320 61 57 300 60 38 200 40 100 20 0 0 Germany World EU-28 Japan India China United United BRICS Total Kingdom States Note: BRICS = Brazil, the Russian Federation, India, China and South Africa. *Not including hydropower. Source: See endnote 202 for this chapter. 42

43 01 An estimated 17 countries An estimated 17 countries generated more than generated more than 90% of their electricity with renewable sources 204 Although most in 2017. 90 % of these countries are GLOBAL OVERVIEW supplied almost com - of their electricity with pletely by hydropower, renewable sources in three of them – in 2017 Uruguay, Costa Rica and Ethiopia – wind power also provides a significant 205 contribution. Several countries are successfully integrating increasingly larger shares of variable solar PV and wind power into electricity systems by improving regulations and market design to reward flexibility, and by improving transmission and interconnection so as to broaden balancing areas. In some cases, countries also are investing in energy storage capacity (mostly pumped storage). Countries leading the way in VRE penetration include Denmark (nearly 53%), Uruguay (28%) and Germany (26%); Ireland, Portugal and Spain also have VRE penetration levels above 206 ( p See Figure 8 and Integration chapter.) 20%. A number of countries and regions integrated much higher shares of VRE into their energy systems as instantaneous shares of total demand for short periods during 2017. They include, for example, South Australia, which generated more than 100% of load from wind power alone and 44% of load from solar PV alone on two separate occasions; Germany (66% of load from wind and solar power combined); the US state of Texas (54% of load from wind power alone); and Ireland (60% of load from wind power 207 alone). Share of Electricity Generation from Variable Renewable Energy, Top 10 Countries, 2017 FIGURE 8. Share of total generation (%) Share of total generation (%) 60 60 Solar PV Solar PV 50 Wind power 50 Wind power 40 40 30 30 20 20 10 10 0 0 0 0 PortugalSpain DenmarkUruguay Greece United Germany Honduras Ireland Nicaragua Ireland DenmarkUruguay Nicaragua Honduras Greece United PortugalSpain Germany Kingdom Kingdom A89)K LF<@ G<10-) <*>5 0*9-<)@ , >>8-6<*1 98 9F) M)@9 ,N, <5,M5) 6,9, ,9 9F) 9<+) 8G ;0M5<>,9<8*O 06)@ 9F) 98; "! >8 Note: This figure includes the top 10 countries according to the best available data at the time of publication. ;0M5<>,9<8*O <5,M5) 6,9, ,9 9F) 9<+) 8G >>8-6<*1 98 9F) M)@9 ,N, 0*9-<)@ , 06)@ 9F) 98; "! >8 A89)K LF<@ G<10-) <*>5 Source: See endnote 206 for this chapter. 43

44 RENEWABLES 2018 GLOBAL STATUS REPORT solar PV, and became the Curtailment of wind and solar power can be considered an Renewable energy world’s largest producer indicator of challenges with grid integration of VRE. Such accounted for an of bioelectricity in 2017, challenges have led to high curtailment rates in China, the world’s 208 estimated In 2017, however, with a 23% increase largest market for wind power and solar PV. 217 India nearly average curtailment for wind power in China was reduced to over 2016. doubled its solar PV 12%, down from 17% in 2016, and average curtailment of solar 209 70 % capacity, which exceeded PV was 6-7%, down 4.3 percentage points compared to 2016. of net additions to global Elsewhere, jurisdictions that have relatively high shares of VRE the country’s annual wind power capacity in 2017 have successfully introduced measures – such as market design power installations for the 218 to increase flexibility or transmission planning to ensure export first time. 210 ability – to reduce curtailment to low levels. Indonesia led the world Falling technology costs (particularly for solar PV) – combined with with new geothermal power generation capacity, and Turkey was advances in technologies to manage mobile payment systems among the top countries for capacity additions in solar PV, wind 219 – have enabled renewables to play a growing role in providing power, geothermal (second, after Indonesia) and hydropower. 211 In developing and emerging economies, as well energy access. Growth has slowed in recent years in several countries Europe: as in isolated areas such as islands or isolated rural communities in Europe. However, in 2017, for the first time, electricity generation (where electricity prices tend to be high if they are not heavily from non-hydropower renewables (wind, solar and biomass) subsidised), existing energy supplies may be unreliable whereas overtook lignite and hard coal generation, and renewables renewable energy resources can be plentiful, making renewable 220 For comparison, generated 30% of the region’s electricity. 212 electricity more competitive relative to other options. just five years before, coal generation was more than twice the 221 Off-grid stand-alone systems and mini-grids represented about generation from wind, solar and biomass power combined. 6% of new electricity connections worldwide between 2012 Continuing an ongoing trend of renewables accounting for rising and 2016, and continued to provide access for new populations shares of new power capacity each year, 85% of newly installed 213 Distributed systems are estimated to be the least-cost in 2017. 222 Wind power and power capacity in the EU was renewable. option to supply electricity to nearly three-quarters of the people solar PV accounted for three-fourths of the annual increase in living in remote areas of sub-Saharan Africa – the population renewable power capacity, and offshore wind power represented 214 p See ( that is considered the most difficult to serve worldwide. 223 around 20% of the total European wind power market in 2017. Distributed Renewables chapter.) Growth has become more uneven geographically, however, Throughout 2017, note worth y developments took place in the with only two countries – Germany and the United Kingdom – renewable power sector in most regions of the world, although accounting for 57% of the EU’s renewable capacity expansion 224 progress is uneven: between 2014 and 2017. After ongoing debate, the European Parliament voted in January Renewable power has grown most notably in Asia, Asia: 2018 for a new European Renewable Clean Energy Target of 35% particularly China. The region continued to be the global leader in by 2030, which applied to the overall energy mix for all sectors renewable power capacity, accounting for 75% of global solar PV 225 215 and likely would result in more than 50% renewable electricity. additions and for 48% of global wind power additions in 2017. New solar PV capacity in both China and India surpassed new coal However, concern remains that new coal power will be allowed 216 China remained the world leader installations for the first time. to receive subsidies via capacity payments, and that priority 226 in installed capacities of hydropower, onshore wind power and dispatch for wind and solar power will be abandoned. 44

45 01 North America: In the United States, renewable energy (PAYG) companies raised about USD 260 million in capital in accounted for 18% of total electricity generation, up from 15% 2017, up 19% from 2016, and served more than 700,000 customers 227 243 Direct corporate and utility purchases of renewable in 2016. ( p See through contracts based on mobile payment systems. electricity are playing an increasing role in the sourcing of Distributed Renewables chapter.) 228 The United States leads globally in this renewable electricity. Australia generated 17% of electricity from renewable Oceania: area, accounting for 60% of all renewable PPA capacity by the GLOBAL OVERVIEW 229 energy in 2016, with about 10% of this from non-hydropower p Although the growth in ( See Feature chapter.) end of 2017. 244 US renewable capacity overall was lower in 2017 than in 2016, After four years of declines, the country’s growth rate sources. 230 In cumulative solar PV capacity still increased 26% in 2017. in non-hydro renewable power capacity increased to 12% in 2016 245 Canada, overall growth in nonhydropower renewable capacity Australia was one of the world’s top and reached 16% in 2017. has slowed significantly, from nearly 30% in 2014 to around 4% installers (seventh) of solar PV capacity in 2017, and the country 231 in 2017. 246 New ranked fifth globally for total capacity per inhabitant. Latin America and the Caribbean: In Latin America, the Zealand generated 85% of its electricity from renewable energy overall non-hydropower renewables growth remained strong in in 2016, with well over half of this from hydropower and most of 2017, and markets for wind power, solar PV and other renewable the rest from geothermal power; other renewable power sources 232 technologies are emerging in many countries in the region. 247 have not grown substantially in the country. Renewable energy sources (mostly hydropower) accounted for 233 nearly two-thirds of the region’s electricity supply in 2016. Markets in the Middle East have not yet taken off Middle East: In Uruguay, the share of VRE increased sharply in a short significantly, although promising signs of market development 234 248 Honduras and time period, from 1% in 2013 to 28% in 2017. The share of renewable generation in were seen in 2017. Nicaragua also have achieved high VRE shares, at 17% and 15%, the region is very low (around 2.5%), with non-hydropower 235 Brazil has been the region’s largest market for respectively. 249 However, in 2017, Saudi renewables providing less than 0.6%. wind power for some time and led the regional market for solar Arabia held a solar PV tender and began the process of holding PV in 2017, becoming the second country in the region (after wind power tenders, and several countries added renewable 236 Chile ranked third Chile) to exceed 1 GW of solar installations. 250 energy targets or increased the ambition of existing targets. globally for new geothermal power capacity, and Honduras and 237 A large pipeline of solar PV and CSP projects also exists in the Mexico also added some capacity. region, with projects under construction in Israel, Jordan, Kuwait, Africa: Overall growth in renewable power capacity is 251 Saudi Arabia and the United Arab Emirates. 238 Non- concentrated in a limited number of countries in Africa. hydropower renewable power capacity in the region grew an 239 The top countries for cumulative estimated 9% overall in 2017. non-hydropower renewable capacity were South Africa, Egypt 240 South Africa was the only country worldwide to and Kenya. bring new CSP capacity online in 2017, leading led the global 241 Across Africa, interest market for the second year running. is growing in solar PV as a means to diversify the energy mix, 242 In East meet rising energy demand and provide energy access. and West Africa, decentralised energy service companies have established a thriving market for off-grid solar PV: pay-as-you-go 45

46 RENEWABLES 2018 GLOBAL STATUS REPORT SIDEBAR 1. Jobs in Renewable Energy The renewable energy sector employed, directly and indirectly, Global employment in solar thermal heating and cooling i . This figure includes approximately 10.3 million people in 2017 was estimated at 807,000 jobs in 2017, a 2.6% decrease from 1.5 million jobs in large-scale hydropower, for which only an 2016. This reflects a decline in new installations in China (the ii See Figure 9.) ( . p estimate of direct employment is available dominant market and a major exporter) and in Brazil, India See Market and Industry chapter.) p ( and the EU. Employment in the renewable energy sector is influenced by a large number of factors, including falling technology costs, Overall, most renewable energy employment was in China, changes in labour productivity, corporate strategies and Brazil, the United States, India, Germany and Japan. industry restructurings, industrial policies to enhance domestic China remained the undisputed leader in renewable energy value creation, and market developments in renewable energy. employment, with nearly 4.2 million jobs. Solar PV was by far Solar photovoltaics (PV) was again the largest employer, the main source of job creation in the country’s renewables primarily because installations of solar PV dominated new sector. Except for a decline in solar thermal heating p See ( renewable energy installations by a large margin. and cooling, China’s employment in renewable energy This was followed by jobs in Market and Industry chapter.) technologies remained essentially unchanged. biofuels, large-scale hydropower, wind energy, and solar Biofuels continued to be Brazil’s mainstay, with close to See Table 1.) p thermal heating and cooling. ( 0.8 million jobs out of a total 1.1 million in the country’s Global employment in solar PV was estimated at renewables energy sector. Although the ethanol industry 3.4 million jobs in 2017, 9% higher than in 2016. As the leading continued to shed jobs, the biodiesel industry was on the rise. PV manufacturer and market, China accounted for two-thirds In the United States, the decline in solar jobs was offset by of these jobs, or some 2.2 million. India registered strong gains in wind power and biofuels for an overall 1% increase. growth in grid-connected installations, with an estimated Wind power employment gained 3% in 2017, and both iii . The United States, by contrast, 92,000 jobs in this segment ethanol and biodiesel jobs increased. recorded the first decline ever in solar PV employment, In India, employment in the solar sector has been driven reflecting a slowing pace of installations as well as policy by rapid capacity growth. Although the country remained uncertainties. Solar PV employment also declined in Japan highly dependent on panel imports, it had an estimated and in the European Union (EU). 164,000 jobs in solar PV in 2017 – up 36% over 2016 – mostly Biofuels employment totalled an estimated 1.9 million jobs. in installation and in operations and maintenance. Wind Brazil continued to have the largest biofuels workforce, but the power employed an estimated 60,500 people in India in 2017. iv . numbers continued to be affected by rising mechanisation In 2016 (latest data available), the number of renewable In Southeast Asia, the agricultural supply chain for biofuels energy jobs in the EU reached 1.27 million, up from 1.19 million production remained labour-intensive. A decline in biofuels v . The solid biomass and wind power sectors were the in 2015 employment in Indonesia was offset in part by gains in Malaysia, largest employers, followed by biofuels. Solar PV employment Thailand and the Philippines. Changes in biofuels employment continued to shrink, dipping to just below 100,000 jobs. do not necessarily equate to net gains or losses because Germany remained in the lead in Europe. After four years of feedstock supplies can be switched between different end-uses. vi . Wind retrenchment, it posted a gain in 2016, to 332,000 jobs An estimated 1.1 million people worked in the wind power power, geothermal energy and bioenergy all added jobs, but industry in 2017, a 0.6% decline from 2016 that reflected a the solar industry continued to shed them. slower pace of new capacity additions. Wind employment Solar PV represented a significant source of jobs in the in China was almost unchanged – at 510,000 jobs – as a renewable energy sectors of a number of countries, including decline in new installations was compensated by growth – in Asia – Bangladesh, Japan, Malaysia, the Philippines, the in the labour-intensive offshore sector. Germany and the Republic of Korea, Singapore and Turkey, as well as other United States reached new records in wind employment; countries such as Australia, Mexico and South Africa. India, the United Kingdom and Brazil were other significant employers. Supply chains have become more globalised as more countries attempt to build domestic capabilities. i This sidebar is drawn from International Renewable Energy Agency (IRENA), Renewable Energy and Jobs – Annual Review 2018 (Abu Dhabi: 2018). Data are principally for 2016 and 2017, although dates vary by country and technology, including instances where only earlier information was available. Where possible, employment numbers include direct and indirect employment; induced employment is not included. Jobs figures should be regarded as indicative, as estimates draw on a large number of studies with different underlying methodologies, uneven detail and data quality, and varying definitions of renewable energy employment. ii 10 MW is often used as a threshold for small- versus large-scale hydropower; however, this is inconsistent across countries. Jobs estimates are based on IRENA’s employment factor approach. iii Using an employment factor method. iv The ethanol figure is from a government database, whereas the biodiesel estimate uses employment factors. The overall figure includes an approximation of equipment manufacturing employment. , 2017 Edition (Brussels: 2018)) has switched from a survey to input-output The principal source (EurObserv’ER, The State of Renewable Energies in Europe v analysis. EU jobs figures were adjusted where more detailed national data were available. Only ground-source and hydrothermal heat pumps are included. vi Employment numbers for Germany are revised from earlier reports based on an input-output study commissioned by the German government. 46

47 01 Estimated Direct and Indirect Jobs in Renewable Energy, by Country and Technology TABLE 1. United k India Japan China Brazil World Germany Total EU States Thousand jobs GLOBAL OVERVIEW 272 164 233 10 2,216 3,365 100 36 Solar PV h g 299 35 200 3 24 1,931 51 795 Liquid biofuels 106 34 510 1,148 344 160 5 61 Wind power Solar thermal 17 807 670 42 34 8.9 0.7 13 heating/cooling i a, b 41 780 180 80 58 389 Solid biomass 7 344 145 85 41 71 Biogas Hydropower j l 12 290 95 74 9.3 12 7. 3 c (small-scale) Geothermal 93 1.5 35 2 6.5 25 a, d energy 5.2 34 11 0.6 6 CSP f 8,829 Total 893 1,268 3,880 432 283 332 786 Hydropower j l 1,514 20 74 7. 3 312 184 26 289 e (large-scale) (including large- Total j 1,076 4,192 812 721 303 1,268 332 10,343 scale hydropower) Note: Jobs estimates generally derive from 2016 or 2017 data, although some data are from earlier years. Estimates result from a review of primary sources such as national ministries and statistical agencies, as well as secondary sources such as regional and global studies. Totals for individual countries/regions may not add up due to rounding. a b c Power and heat applications. Traditional biomass is not included. Although 10 MW is often used as a threshold, definitions are inconsistent across d e Includes ground-source heat pumps for EU countries. Large-scale hydropower includes direct jobs only, so the table underestimates countries. f Totals include waste (28,000 jobs), ocean energy (1,000 jobs) and non-technology-specific jobs (8,000). employment for this technology relative to others. g About 225,400 jobs in sugarcane processing and 168,000 in ethanol processing in 2016; also includes a rough estimate of 200,000 indirect jobs in h Includes 237,000 jobs in ethanol and about 62,200 jobs in biodiesel in 2017. equipment manufacturing in 2016, and 202,000 jobs in biodiesel in 2017. j i Based on employment factor calculations for bioelectricity and combined heat and power (CHP). Combines small- and large-scale hydropower. l k All EU data are from 2016 and include Germany. EU hydropower data combine small- and large-scale facilities; hence the regional total with large-scale hydropower is the same as the total without it. Figure is derived from EurObserv’ER data, adjusted with national data for Germany, the United Kingdom and Austria, as well as IRENA calculations. Source: IRENA Jobs in Renewable Energy FIGURE 9. Bioenergy biomass, biofuels, biogas Geothermal Solar energy solar PV, CSP, solar heating/cooling Wind power Hydropower (small-scale) ropower Hyd (large-scale) = 50,000 jobs million 1.5 million 8.8 + World 10.3 Total: million jobs Source: IRENA 47

48 02 POLICY - LAND SCAPE In 2017, Argentinian aluminium producer Aluar started to build its 110 MW El Llano wind park The construction is expected to finish in 2019, with 31 wind turbines. Located close in Chubut, Argentina. to the company’s facilities, the plant will provide electricity for aluminium smelting, helping the company El Llano Wind Park, comply with the Argentinian mandate for large electricity consumers, thus acquiring more than the required Chubut, Argentina 8% of their power consumption from renewable sources.

49 02 POLICY LANDSCAPE consumers who are ncreasing renewable energy deployment contributes to multiple policy objectives, including boosting producing their own I national energy security and economic growth, electricity and wish to feed countries 87 creating jobs, developing new industries, reducing emissions and their surplus generation local pollution, and providing affordable and reliable energy for have economy-wide targets into the grid. To advance 1 all. Policy makers continue to promote renewable heating and for renewable energy share the integration of VRE, cooling, renewable transport technologies and renewable power of primary or final energy some policy makers by implementing a range of policies including targets, regulations, have begun to adopt public financing and fiscal incentives as well as, increasingly, policies that increase R complementary policies enacted together. ( As of See Table 2.) the electrification of the year-end 2017, 179 countries had renewable energy targets at the thermal (heating and 2 national or state/provincial level, up from 176 the previous year. cooling) and transport sectors. To increase access to modern The interaction of policy, cost reductions and technology energy services, many policy makers in developing countries are development has led to rapid change in the energy sector, designing mechanisms to maximise the potential of renewable prompting both proactive and reactive responses from policy energy-powered micro-grids as an alternative to expanding makers. Market and regulatory environments are being adjusted, traditional centralised power networks, especially in rural areas with many countries introducing mechanisms designed to where expanding the grid is not cost effective. ( See Distributed p accelerate investment, innovation and the use of smart, efficient, ) Renewables chapter. 3 resilient and environmentally sound technology options. Policy makers at the sub-national level often play a leading Renewable energy policies are just one component of broader role in renewable energy policy, with the re-emergence of energy sector policies, such as fossil fuel subsidies or carbon more decentralised energy systems spurring the engagement pricing mechanisms. of city and local officials. Many have used the direct control The challenges and opportunities, as well as the suite of policies over planning policies – including building regulations and adopted, vary widely by region and country, and also by level of purchasing authorities – that their national-level counterparts government. In more mature renewable energy markets, policy may lack to shape energy pathways for their communities. Local makers are starting to grapple with integrating rising shares of commitments to renewable energy frequently are driven by the distributed and variable renewable energy (VRE) into power economic benefits deriving from renewable energy, as well as systems that were developed primarily for centralised fossil by the potential for climate change mitigation, improved local air fuel, nuclear and hydropower generation. Policy makers also are dealing with the challenges posed by traditional grid-connected and/or water quality, and local job creation. 49

50 RENEWABLES 2018 GLOBAL STATUS REPORT Cities regularly lead on efforts to deploy innovative technologies TRENDS IN 2017 in the power sector and may be key drivers for transitioning Many historical trends remained unchanged in 2017, with the other energy end-use sectors by promoting electric vehicle (EV) growth of renewable energy around the world spurred by a integration, modernising public transport fleets and mandating combination of targeted public policy and advances in energy the use of biofuels or solar water heating to meet municipal technologies. A trend is emerging towards coupling of the heating needs. Lessons learned at the local level often inform the thermal (heating and cooling), transport and power sectors, as development of national policy. well as towards increasing linkages between renewable energy The following sections provide an overview of renewable energy and energy efficiency, although such measures remain limited. policy developments in 2017 by end-use sector. The chapter New cross-sectoral integrated policies were introduced in 2017 has evolved to keep pace with emerging trends in the energy in several countries. Indonesia outlined goals for reducing energy sector, such as the need for more systematic sector coupling i by 17% across the industry, transport, residential and intensity and integration of VRE. The examples featured are intended to services sectors and for achieving a 23% renewable share of provide a snapshot of developments and trends in renewable 4 Switzerland also introduced new cross- primary energy by 2025. energy policy in 2017 and are not intended to be a comprehensive 5 By end-2017, 87 countries See Box 1.) p ( sectoral policies in 2017. list of all policies enacted to date. In addition, the chapter does had economy-wide renewable energy targets for either primary not attempt to assess or analyse the effectiveness of specific 6 or final energy, and Ukraine increased its target during the year. policy mechanisms. ( R See Reference Tables R3 and R4.) Further details on newly adopted policies and policy revisions are Direct policy support for renewable energy, as in past years, included in the Reference Tables and endnotes associated with continued to focus primarily on power generation, with direct this chapter. Policies for energy access are covered in the chapter support for renewable technologies lagging in the heating and . Distributed Renewables for Energy Access ( cooling and transport sectors. See Figure 10 and Reference p ) Tables R5-R11. However, efforts to increase renewable energy i Energy intensity is the amount of primary energy per unit of economic output (usually gross domestic product). BOX 1. Integrated Policy Spotlight: Switzerland Energy Strategy 2050 On 21 May 2017, approximately 58% of voters in Switzerland energy sector, increase investment in the country and foster voted to approve a nationwide increase in renewable energy job creation. use and a scaling back of the country’s nuclear sector. Renewable and energy efficiency technologies will be The referendum was a first step towards implementing a supported by revenue raised from electricity consumers sweeping energy strategy that outlines goals through 2050. as well as from the existing fossil fuel tax. The framework The strategy seeks to harmonise efforts under three key includes provisions for revising permitting of renewable pillars: 1) saving energy and improving efficiency, 2) promoting energy systems, as well as market and incentive schemes renewable energy and 3) phasing out nuclear power. to advance renewable energy integration. The strategy also Switzerland has pledged that renewable energy and energy calls for new technical solutions, including the deployment efficiency will play a growing role in its energy mix and has of smart meters, as well as for action to reduce transmission placed a moratorium on new nuclear power plants (nuclear congestion and to adopt an increasingly decentralised accounted for 32% of Swiss electricity production in 2016). energy supply system. The overall strategy aims to decrease dependency on Source: See endnote 5 for this chapter. imported fossil fuels, reduce the environmental impact of the 50

51 02 Number of Countries with Renewable Energy Regulatory Policies, by Sector, 2004-2017 FIGURE 10. 150 Number of countries 128 countries 125 120 Power POLICY LANDSCAPE 100 70 90 countries 75 Transport 60 50 24 countries 30 25 Heating 29 & Cooling countries 0 had other 0 heating and 200820092010 2013 2007 2012 2014201520162017 200420052006 2011 cooling policies transport regulatory heating and cooling Number of countries with power regulatory incentives/mandates incentives/mandates regulatory incentives/mandates Note: Figure does not show all policy types in use. In many cases countries have enacted additional fiscal incentives or public finance mechanisms to support renewable energy. A country is considered to have a policy (and is counted a single time) when it has at least one national or state/provincial-level policy in place. Insufficient Power policies include feed-in tariffs/premiums, tendering, net metering and renewable portfolio standards. Tendering is counted cumulatively. Heating and cooling policies include solar heat obligations, technology- policy support neutral heat obligations and renewable heat feed-in tariffs. Some countries with regulatory policies for persists for renewables heating and cooling also have other heating and cooling policies. Transport policies include biodiesel obligations/mandates, ethanol obligations/mandates and non-blend mandates. For more information see in heating and cooling Table 2 . and transport Source: REN21 Policy Database. in heating, cooling and transport benefit from rising shares of ( end-2017. These targets typically See Reference Table R14.) R renewable power to the extent that electricity is used in these take one of two forms: either the establishment of a renewable sectors. A focus also is emerging on integrating VRE into existing energy goal for energy use across the municipality, or a energy systems, which may necessitate sector coupling commitment to use renewable energy for government-controlled energy generation and consumption. Municipal leaders in Japan The European Union (EU) was the only regional entity to adopt released the Nagano Declaration in 2017 committing to work 7 a collective regional commitment to renewable energy in 2017. towards 100% renewable energy for cities and regions across the The EU’s Clean Energy for All Europeans package covers the 11 New 100% renewable energy or electricity targets were country. energy market, renewable energy and efficiency policies, and will established in 8 US cities in 2017, bringing the nationwide total to use a common reporting framework to measure the impact of 12 8 48, of which 5 had already met their 100% goals by year’s end. The policies on the power system as well as on emission goals. first legislative element of the package, on energy efficiency, was Cities also have taken collective action to aggregate the impacts of 9 The debate around the next round of European passed in 2017. their commitments. In 2017, more than 250 US mayors committed energy targets extending to 2030 continued throughout the year, to the US Conference of Mayors’ goal of 100% renewable energy with the European Parliament voting in January 2018 in favour of by 2035 (although these have not all been enacted in legislation a goal for renewables to meet 35% of regional energy demand 13 yet). In Germany, over 150 districts, municipalities, regional 10 by 2030. associations and cities had committed to 100% renewable energy by the end of 2017 through the 100% Renewable Energy Local government continues to play a leading role in the global 14 Regions network. Initiatives such as C40 Cities also are driving energy transition, as demonstrated by the ambitious targets collaboration, allowing cities to share practices to advance their that many have set, with hundreds of jurisdictions having 15 energy transitions. made commitments to 100% renewable energy or electricity by 51

52 RENEWABLES 2018 GLOBAL STATUS REPORT RENEWABLE ENERGY LINKAGE TO CLIMATE CHANGE POLICIES TARGE TS 85 countries, states or Many commitments to advance renewable energy have been Targets remain one of provinces have targets for made through climate change policies worldwide, which often the primary means that feature specific renewable energy and energy efficiency goals. more than policy makers use to Increasingly ambitious climate targets in some ( p See Table 2.) express their commitment jurisdictions will require action across all energy end-use sectors, to renewable energy 50 % even in cases where specific energy targets are not included. In deployment. Targets take renewable electricity 2017, 25 C40 member cities from across the world established many forms, including 16 New Zealand also goals to reach net-zero emissions by 2050. goals for achieving a proposed a target of net-zero carbon by 2050, and four out specified contribution of of seven Australian states or territories introduced net-zero renewable generation (or 17 emissions targets for 2050. capacity), mandates (such as renewable portfolio standards, or Specific mechanisms such as carbon taxes, the elimination of RPS) that call for the sourcing of specific shares of renewable fossil fuel subsidies, and emissions trading schemes often are energy, and capacity goals for specific renewable technologies. used to meet carbon reduction goals. p ( See Figure 4 in Global The majority of targets continue to focus on renewable energy in The impact of each of these policies on the Overview chapter.) the power sector. As of year-end 2017, more than 150 countries renewable energy sector varies widely. Historically, renewable had renewable power-related targets in place at the national transport fuels or technologies for renewable heating and See Reference Tables R8-R10 ( .) level. R cooling, for example, have been more likely to benefit from carbon Targets for renewable shares of heating and cooling and transport pricing mechanisms than have renewable power generating energy use have been introduced to a much lesser degree, in 18 technologies, although this is not always the case. ( p See place in 48 and 42 countries, respectively, by year's end. In 2017, China launched the world’s largest emissions trading Reference Tables R5, R8 and R9. ) Figures 11 and 12, Table 2 and scheme, with the first phase of the new cap-and-trade programme Many countries are increasing the ambition of their renewable 19 In the United States, focusing on the country’s power sector. electricity commitments. During 2017, Cabo Verde set a target for the nine northeast states that make up the Regional Greenhouse 100% renewable power by 2025, bringing to 90 the total number Gas Initiative agreed to reduce power plant greenhouse gas of countries, states and provinces that have targets for 50% or 20 Additionally, the emissions across the region 65% by 2030. 24 more of their electricity from renewables. 19 member countries of the BioFuture Platform, a global network Other countries, such as the Republic of Korea, also increased aiming to fight climate change through scaling up deployment their targets, although not to as high as 50% renewable of modern sustainable low-carbon transport options, made a 25 The Altai Republic (Russian Federation) introduced electricity. formal commitment to develop targets for biofuels to address the 21 its first renewable target, for 150 megawatts (MW) of solar climate impacts of the energy-transport nexus. 26 photovoltaics (PV) by 2021. The social cost of carbon also can be used to promote low-carbon 22 China established new technology-specific targets under its 13th In 2017, public utility energy sources in energy sector regulation. Five-Year Plan for Renewable Energy, including a goal to increase commissions in the US states of Colorado and Minnesota both wind power capacity to 210 gigawatts (GW) as part of the broader issued rulings requiring that a cost of USD 43 per tonne be 23 goal to increase total renewable power capacity to 680 GW by considered by utilities when they plan new power plants. 27 At the sub-national level, Flanders (Belgium) increased its 2020. solar and wind power targets by one-third, and Karnataka (India) 28 tripled its solar power target from 2 GW to 6 GW by 2022. In the United States, 29 states, the District of Columbia and 3 territories have established targets through renewable portfolio standards. Although no new states added or removed RPS policies in 2017, Maryland increased and accelerated its RPS to 25% by 2020 (up from 20% by 2022), and Massachusetts created requirements for offshore wind power 29 Efforts to increase RPS goals in and solar PV procurement. 30 California and Nevada were not successful. 52

53 02 FIGURE 11. National Sector-Specific Targets for Share of Renewable Energy by a Specific Year, by Sector, in Place at End-2017 = one target = one target HEATING AND COOLING TRANSPORT Most national targets = one target = one target TRANSPORT HEATING AND COOLING focus on the power sector, Targets for share of transport energy from Targets for share of heating and cooling from where the level of ambition renewable sources in % renewable sources in % Targets for share of transport energy from Targets for share of heating and cooling from is typically higher than for renewable sources in % renewable sources in % 100 100 heating and cooling and 100 100 for transport. POLICY LANDSCAPE 80 80 80 80 countries 48 have national 60 60 targets for 60 60 renewable energy in heating and cooling. 40 40 40 40 20 20 20 20 countries 42 have national targets for 0 0 renewable energy 0 0 2030 2025 2030 2025 2020 2020 target year target year in transport. 2025 2020 2030 2025 2030 2020 target year target year = one target POWER = one target POWER Targets for share of electricity generation from renewable sources in % Targets for share of electricity generation from renewable sources in % 100 146 100 countries have national targets 80 for renewable 80 energy in power. 60 60 Note: Each dot can represent more than one country and is based on the highest target that a country 40 has set at the national level. Figure 40 includes only countries with targets in these sectors that are for a specific share from renewable 20 sources by a specific year, and does 20 not include countries with other types of targets in these sectors. The total number of countries with any type of target for renewable 0 energy (not specific to shares by 0 2050 2030 2020 2010 2040 target year a certain year) is 48 in heating and 2050 2040 2030 2020 2010 target year cooling, 42 in transport and 146 in power. Some targets shown may be non-binding. National Targets for Share of Renewable Energy in Final Energy, by a Specific Year, in Place at End-2017 FIGURE 12. Only Denmark has a 100% renewables target Highest share of for total final final energy targeted Highest share of to come from final energy targeted energy renewable sources to come from renewable sources 0% 91-10 91-10 0% 81-90% 81-90% 71-80% 71-80% 61-7 0% 0% 61-7 51-6 0% 51-6 0% 41-5 0% 0% 41-5 0% 31-4 31-4 0% 0% 21-3 21-3 0% Note: Map shading is based on the highest target that a country has at the national level, although time 0% 11-2 frames (and qualifying technologies) to reach these targets vary significantly, from 2018 to 2050. Note: Map shading is based on the highest target that a country has at the national level, although time 0% 11-2 For details, see Reference Tables for Policy Landscape chapter. Some targets shown may be non-binding. frames (and qualifying technologies) to reach these targets vary significantly, from 2018 to 2050. 1-1 0% For details, see Reference Tables for Policy Landscape chapter. Source: REN21 Policy Database. 0% 1-1 Source: REN21 Policy Database. 53

54 RENEWABLES No p GLOBAL STATUS REPORT In 2017, the Indian Ministry of Power updated the country’s HEATING AND COOLING Energy Conservation Building Code to establish new energy efficiency standards and a range of mandates for the share of 33 BUILDINGS The code promotes hot water demand met by solar power. passive energy building design, efficient lighting and renewable The buildings sector, unlike other sectors, often sees a close energy technologies and applies to buildings with a peak load of alignment between policies for renewable energy and energy 34 100 kilowatts (kW) and above. efficiency, in which measures are routinely aimed at both increasing renewable energy supply and reducing energy demand. Voluntary standards were announced in British Columbia (Canada) in 2017, establishing a four-step process to transition to Building energy codes are one of the most common policy tools 35 the construction of net-zero-energy ready buildings. used to promote renewable energy and energy efficiency in the sector. Mandatory and voluntary energy codes for buildings exist Incentives for the deployment of renewable or energy savings 31 Mandates can focus on in more than 60 countries worldwide. technologies are used regularly in the buildings sector. In 2017, the required use of specific technologies – such as solar water Hungary began offering interest-free loans to homeowners that heaters or energy-efficient cooling appliances – to source deploy energy efficiency or renewable energy technologies – specific shares of energy or electricity needs from renewable including solar thermal, solar PV and biomass boilers – under a EUR 36 sources, or can be framed in terms of performance standards for The Former Yugoslav 370 million (USD 457 million) programme. i . either maximum energy use or greenhouse gas creation Republic of Macedonia extended and expanded a programme that reimburses up to 30% of system costs for household solar water Policies often focus on new construction or refurbishment. heaters; in addition, the country supports solar thermal for space However, certain jurisdictions have adopted codes, standards 37 heating and cooling through a reduced value-added tax levy. or mandates requiring renewable energy or energy efficiency to be integrated into existing buildings, regardless of whether The EU funded much of an EUR 1.4 million (USD 1.7 million) solar 32 38 Policies have been enacted at refurbishment is occurring. Germany established a new district heating installation in Serbia. the national, sub-national and local levels, including in some subsidy scheme designed for solar, biomass or waste heat linked of the most populous cities in the world. By end-2017, at least to district heating to meet over 50% of annual demand; under the 145 countries had enacted some kind of energy efficiency policy, new mechanism, suppliers are eligible for grants that cover up to and at least 157 countries had enacted one or more energy 60% of the cost of feasibility studies and up to 50% of the costs 39 The Hungarian government launched a call p See Figure 13.) ( efficiency target. of new investment. i For example, energy use or greenhouse gas emissions per square metre of floor area; this may be specific to a service (for example, heating and cooling) or may be for the building as a whole. FIGURE 13. Countries with Energy Efficiency Policies and Targets, End-2017 Both energy eiciency target and policy Energy eiciency policy only Energy eiciency target only No policy/target or no data Source: REN21 Policy Database. 54

55 02 for applications for a USD 50 million fund designed to promote INDUSTRY 40 Renewable energy and Slovenia biomass and geothermal district heat networks. Renewable energy for energy efficiency policies provided subsidies for 35% to 55% of the investment cost for industrial use faces are routinely integrated into private companies and public authorities investing in renewable specific challenges that 41 Andalusia (Spain) adopted a energy for district heat networks. have slowed deployment, building codes Sustainable Construction programme that provides incentives including finance, POLICY LANDSCAPE for 30% to 85% of the investment costs for solar thermal systems, risk (both financial as well as support for solar PV and efficiency measures such as and energy supply), 42 building insulation and lighting improvements. technology maturity and At the sub-national level, the US state of New York announced lack of information or 49 a USD 15 million programme to encourage the installation of In some awareness. ground-source heat pumps, and the state of Oregon set a building countries, the regulatory framework for energy production code requirement for all new-build residential and commercial limits the ability of generators to operate as third-party power 43 i 50 The buildings to be “solar ready” by 2020 and 2022, respectively. Well-designed policies would help overcome these . producers city of Chicago mandated that all of its public buildings be powered challenges, and policy makers have begun to enact mechanisms entirely by renewable energy by 2025, making it the largest city in to provide financial assistance for project development, regulatory 44 the world to adopt such a requirement. reforms to allow or facilitate self-generation, and guarantees to 51 address project risks. Elsewhere, the city of Seoul (Republic of Korea) requires all new public apartments to install solar PV as of 2018, while existing Specific mechanisms to increase renewable energy use for buildings receive subsidies covering approximately 75% of the industrial processes are not commonplace, but some examples 45 installation fee for solar PV. exist. In 2017, Mexico launched an inter-institutional platform 52 Tunisia extended its Prosol to promote solar process heat. Specific subsets of buildings also were targeted for support, with Industry programme to provide financial support to industrial government buildings or other public facilities often the focus of 53 And Argentina facilities looking to use renewable energy. these mechanisms. For example, Indonesia aims to transform revised market rules to allow large consumers to meet their 1,000 existing mosques into eco-mosques by 2020, with a plan to renewable power requirements through direct supply contracts promote renewable power generation technologies such as solar 54 Loan guarantees can be used to with private generators. 46 In PV and biogas in addition to resource efficiency measures. advance deployment as well in cases where investments are Croatia, a grant scheme for public institutions to fund all energy perceived as risky, as in France where the government has efficiency and renewable energy technologies for building provided incentives to industry for the use of technologies such 47 The Non-Domestic Renewable renovation was enacted in 2017. 55 as geothermal heating and cooling. Heat Incentive in the United Kingdom provides financial incentives to increase investment in renewable heat technologies including biomass, geothermal and solar thermal by the public 48 and non-profit sectors, as well as by businesses. This means that the entity may not export electricity, so renewable generation may be sub-optimally sized. i 55

56 RENEWABLES No t GLOBAL STATUS REPORT the national level. Other sub-sectors such as rail, aviation and TRANSPORT shipping have drawn comparably less policy attention despite Renewable fuels and electric mobility can decrease reliance on also being large energy consumers. However, action at the local fossil fuels, and – along with the promotion of fuel efficiency, public level is rapidly expanding the traditional focus on road transport, transport or smart planning options to reduce transport needs – with many cities taking steps to integrate renewable solutions they can provide an avenue for increasing national energy security See Rail, into public transport fleets, including city rail systems. ( p 56 and reducing local air pollution. The transport sector accounts Aviation and Shipping section in this chapter.) 57 for more than half of global oil demand. This has made transport an important target of transformation for the ever-growing list ROAD TRANSPORT of jurisdictions seeking to achieve a 100% renewable energy Biofuels, electrified transport, and fuels such as hydrogen all have share. Of course, electrification or hydrogen-based transport potential for the future transport energy mix. Their deployment is is only renewable to the extent that the electricity (or hydrogen production) is from renewable generation. An example of policies particularly critical to the growing list of jurisdictions that have aiming to ensure an increased renewable share is the US state of announced plans to ban some or all fossil fuel vehicles from their California’s requirement that 33% of hydrogen fuel dispensed into streets. 58 fuel cell vehicles be produced from renewable sources. Biofuel blend mandates remain one of the most widely adopted Several jurisdictions are seeking to better integrate renewable mechanisms for increasing renewable fuel use in the road solutions in their transport sectors. For example, in Europe 10% of transport sector. These mandates are prevalent across all transport fuels consumed in each EU member state must come geographic regions and countries at all economic development 59 from renewable sources by 2020. If the proposed European levels. As in past years, in 2017 national and sub-national renewable energy goal is adopted, this will be increased to 14% governments continued to require specific shares of biodiesel 60 by 2030. or ethanol to be blended into transport fuels. ( p See Figure 14 Reference Table R7. ) However, concerns remain about the and Policies to promote renewable energy in the transport sector 61 continued to focus primarily on road transport, especially at p See Box 2.) ( sustainability of some biofuels. National and Sub-National Renewable Transport Mandates, End-2017 FIGURE 14. No other transport mandates/policies National biofuel blend mandate, below 10% No policy or no data National biofuel blend mandate, 10% or above Sub-national biofuel blend mandate only Note: Shading shows countries and states/provinces with mandates for either biodiesel, ethanol or both. Source: REN21 Policy Database. 56

57 02 Policy Debate: Biofuel Feedstocks BOX 2. The debate over the use of crop-based biofuel feedstocks impact when emissions from indirect land-use change are accounted for. continued in 2017, especially in Europe. The air quality benefits from biofuels relative to fossil fuels vary according to the fuel The debate has transitioned to the policy arena. For example, POLICY LANDSCAPE used and the vehicle type; however, analysis indicates that Norway was considering removing the mandate for E20 (a biofuels can reduce carbon monoxide, hydrocarbons and 20% ethanol blend) that was both agreed to and achieved in particulate matter emissions. In many countries biofuels also 2017. Similar concerns have led to the adoption of policies and reduce the need for fuel imports, promoting energy security measures aimed at promoting sustainability. Organisations and reducing cost and vulnerability to fluctuations in the such as the Roundtable on Sustainable Biomaterials, a network international fuels market. of governments, biofuel producers and other entities, have developed certification schemes to evaluate the social and However, critics have challenged the perception of biofuels environmental sustainability of biofuels. In 2017, the European as a sustainable energy source due to factors including Parliament voted to introduce a single certification scheme to food availability, cost to consumers, potential land-use evaluate the sustainability of palm oil entering the EU market. concerns and the sustainability of fuel sources used for biofuel production. Life-cycle emissions impacts, including More commonly, biofuel promotion policies have begun to emissions from indirect land-use change, are one of the chief include specific requirements for the use of next-generation concerns cited by many who have challenged the use of cellulosic biofuels. In the EU, the Renewable Energy Directive traditional biofuels for fuelling transport. This concern is hotly for 2030 proposed by the European Commission in 2017 debated, with proponents on both sides of the debate finding included a target of 3% for advanced biofuels and a cap of a wide range of results for life-cycle emissions, depending on 7% on first-generation biofuels. Similar requirements for the assumptions. For example, proponents of biofuels contend use of advanced biofuels have already been adopted at the that even with impacts of land-use changes, ethanol results national level in the EU, for example in Italy. in lower greenhouse gas emissions than petrol, while biofuel Source: See endnote 61 for this chapter. critics have contended that biodiesel results in greater climate 66 In 2017, ethanol blend mandates were enacted or revised in In the methanol from 1% to 3% and for biodiesel from 5% to 7%. United States, Minnesota doubled the state biodiesel mandate five countries around the world. At the national level, Argentina 67 to B20 effective May 2018. Slovenia mandated that 10% of all increased its mandate to E12, Romania increased its mandate 68 heavy-duty trucks must run entirely on biodiesel. from E4.5 to E8 for 2018, and Zimbabwe returned its mandate to E10 after a temporary reduction to E5 in response to supply Fiscal incentives for biofuel production as well as grants for the 62 Mexico raised the limit on ethanol content from challenges. development of second-generation biofuels remain a fixture of E5.8 to E10 except in the cities of Guadalajara, Mexico City and many transport fuel support schemes. In 2017, the Canadian Monterrey; however, the move has been halted temporarily by province of Alberta allocated CAD 63 million (USD 50 million) for 63 At the sub-national level, Queensland (Australia) the courts. grant funding to bioenergy projects producing biodiesel, ethanol, 64 69 enacted an E3 blend mandate. and solid biomass- and biogas-based electricity generation. New or revised biodiesel mandates also were enacted during Other jurisdictions have set goals or incentives for electric or 2017, although to a lesser extent than those for ethanol. In fuel-efficient vehicles. More policy announcements were made South America, Brazil’s mandate for B8 went into effect, which in 2017 than in any previous year, and the level of ambition has 70 was increased to B10 in early 2018, and Colombia increased continued to increase. Although numerous measures have been 65 its mandate for specific regions of the country from B8 to B9. adopted in recent years to scale up the use of electric vehicles, few efforts have been made to directly link renewable electricity Elsewhere, New Zealand increased the maximum blend for 57

58 RENEWABLES 2018 GLOBAL STATUS REPORT production and EV use or to ensure that EVs work to support RAIL, AVIATION AND SHIPPING 71 As of the integration of renewable energy into energy supplies. Rail transport, aviation and shipping provide critical services to October 2017, at least 60 countries as well as 40 cities or regions move people and goods around the world. However, policies 72 Also in 2017, the had targets and/or plans for electric mobility. that target the use of renewable fuels or electric mobility tied to 10 member countries of the Electric Vehicles Initiative launched renewable power are less common in these sectors than in road the [email protected] Campaign, setting a collective goal of a 30% transport. market share for EVs among all passenger cars, light commercial 73 As of 2013, the rail transport sector was responsible for 2% of vehicles, buses and trucks by 2030. 84 The sector differs from other global transport energy use. In 2017, Slovenia announced a ban on the registration of new transport sub-sectors that remain largely dependent on 74 The United Kingdom and diesel and petrol cars after 2030. petroleum-based products because it sources more than one- France announced their intention to ban the sale of all diesel 85 third of its energy from electricity. and petrol cars and vans by 2040, and the Scottish government 75 Policy makers are slowly supporting the integration of renewable The Dutch announced a target year of 2032 for the same. energy into rail transport systems, particularly at the municipal government confirmed plans in late 2017 to require that all new 76 level. In the United States, the Bay Area Rapid Transit system, India announced a target to sell cars be emission-free by 2030. which provides public rail service to California’s San Francisco only EVs by 2030, and aims to deploy 5 million to 7 million EVs by 77 Bay Area, set a requirement that 50% of the rail system’s power Norway aims to eliminate the sale of fossil fuel vehicles by 2020. 78 come from renewable energy by 2025 (compared to a state-wide China aims for EVs and plug-in 2025 through a set of incentives. 86 target of 50% renewable electricity by 2030) and 100% by 2045. hybrids to account for at least 20% of auto sales by 2025, and in September 2017 it announced that it was working on a plan to Few direct support policies target the use of renewable fuels 79 phase out fossil fuel vehicles. in the aviation sector, which accounts for 11% of final transport energy consumption, as aviation fuels generally are not included Governments also are supporting EVs through public 87 The exception is Indonesia, in transport mandates for biofuels. procurement. In the United States, approximately 20 cities formed which in 2017 introduced a 2% renewable jet fuel mandate, a partnership in 2017 to collectively procure EVs for public vehicle 88 80 A proposed European which is set to increase to 5% by 2025. In 2017, India held its first national EV tender when the fleets. directive would require aviation biofuels to count more highly Energy Efficiency Services Limited called for bids for 10,000 EVs 81 in the contributions towards the region’s renewable transport In to be used by government agencies and departments. 89 In addition to the new policy developments in 2017, the target. November 2017, the Indian government announced that it would Netherlands, Norway and the United States also have policies provide grants of up to INR 1.05 billion (USD 16.4 million) each to in place from prior years aimed at promoting alternative jet fuel “Smart Cities” of more than 1 million people for EVs to be used i 90 were As of year-end 2017, five renewable jet fuels production. for mass transport; it also announced plans to provide funds to 91 82 certified for blending with traditional petroleum jet fuels. By the end of develop charging infrastructure in selected cities. 2017, Shenzhen (China) had successfully electrified its entire fleet Unlike in the road and rail transport sectors, only limited near- 83 92 of 16,000-plus public buses. However, term electrification alternatives exist in aviation. Avinor, the public operator of Norwegian airports, announced in For a discussion of policy linkages between renewable energy January 2018 that all flights under 1.5 hours are targeted to be and EVs, see the section on Sector Coupling and System-Wide 93 entirely electric by 2040. Energy Transformation in this chapter. At least 60 countries and 40 cities or regions have targets and/or plans for electric mobility As with other road transport fuels, renewable jet fuels can be produced through biological, chemical and thermal processes. i 58

59 02 95 residential multi-apartment buildings. The feed-in tariff (FIT) POWER remains for solar PV and wind power projects less than 750 kW 96 Grid-connected renewable energy systems often receive support Non-EU countries and for biomass projects less than 150 kW. through financial incentives and measures such as feed-in policies, in Europe also have followed this trend, for example Moldova, ii i tenders or net metering , which have contributed to the deployment which established a tendering system for large-scale projects 97 of renewable generation. As renewable energy technologies and and continued to support smaller projects with a FIT in 2017. POLICY LANDSCAPE markets have matured, policy makers have grappled with new Elsewhere, both Egypt and Pakistan announced plans to switch 98 challenges related to integrating VRE – into power systems, and from feed-in policies to tenders for renewable energy. they have adjusted existing policy mechanisms and developed Driven in part by the continued shift from FITs to tenders, new ones. renewable power tenders were held in more than 29 countries in Many countries are moving away from, or reducing their use 2017. R See Reference Table R13.) In some instances, onshore ( of, traditional centrally fixed, price-based mechanisms. This is wind power and solar PV have set record low prices in national particularly true of feed-in policies, which were foundational tenders and have proven to be competitive with conventional 99 elements of many renewable support programmes. Developed See Solar PV and Wind Power sections p ( energy technologies. countries have followed the lead of emerging economies such as in Market and Industry chapter.) Brazil and South Africa by turning to more competitive systems, In Europe, France announced plans to tender 3 GW of onshore 94 such as renewable energy tenders. In Europe, a multi-tiered wind power, increased its annual tender target for solar PV system has developed, partly in response to European Commission from 1.45 GW to 2.45 GW, held a 200 MW solar and wind power State Aid guidelines through which large-scale projects or specified tender to evaluate the competitiveness of the technologies and power supply profiles are awarded through tenders, while smaller- announced winners of a 51 MW self-consumption tender for scale projects continue to be supported through feed-in policies. 100 Poland held its first-ever feeding excess generation to the grid. In Germany, Renewable Energy Act amendments first released in tender for renewables; the Russian Federation awarded tenders for 2016 entered into force in 2017, extending tendering mechanisms 520 MW of solar PV and 1.7 GW of wind power capacity; and Spain to cover offshore wind power and technology-neutral tenders awarded approximately 8 GW of primarily wind power and solar PV 101 and introducing financial support for solar PV systems on projects. Tendering (also called auction/reverse auction or tender) is a procurement mechanism by which renewable energy supply or capacity is competitively solicited from i sellers, who offer bids at the lowest price that they would be willing to accept. Individual tenders may vary by qualifying technology, capacity offered, etc., and may be evaluated on both price and non-price factors. Net metering is a regulated arrangement in which utility customers with on-site electricity generators can receive credits for excess generation that is fed into ii the grid, which can be applied to offset consumption. Under net metering, customers typically receive credit at the level of the retail electricity price. Under net billing, customers typically receive credit for excess power at a rate that is lower than the retail electricity price. Different jurisdictions may apply these terms in different ways, however. Policy Spotlight: Vietnam Solar PV Promotion BOX 3. In April 2017, Vietnam established its first comprehensive allow developers to sell power only to the Vietnam Electricity policy designed to promote solar PV. The new scheme aims Corporation. The policy also includes tax exemptions, to address energy security concerns stemming from the establishes technical requirements, provides for government- country’s use of coal and hydropower generation by enacting allocated land for solar PV projects and sets guidelines mechanisms to spur solar PV deployment. for the development of national and provincial plans for solar power. Since the issuance of the new policy, at least The policy outlines both regulatory and financial measures. 1,200 MW of large-scale solar PV projects have been These include targeted price-based mechanisms – for announced. example, a FIT for ground-mounted solar PV plants and net Source: See endnote 108 for this chapter. metering for residential rooftop solar PV systems, which 59

60 RENEWABLES 2018 GLOBAL STATUS REPORT 102 In India, Elsewhere, Israel held its first two solar PV tenders. energy projects of 20 MW or smaller, with a goal of diversifying 107 tenders were held at both the national and state levels; two power generation and increasing energy access in rural areas. Vietnam adopted a feed-in scheme that provides grid-connected rounds for onshore wind energy were held nationally, contracting solar PV plants with guaranteed 20-year tariffs of USD 0.091 per a total of 2 GW, with the lowest bids below USD 40 per megawatt- 103 108 In the United States, the state of Massachusetts ( p See Box 3.) kilowatt-hour. hour (MWh). 104 held the first offshore wind power tenders in the country. Developed countries continued to revise existing feed-in polices Tenders also were held during the year in Argentina, Armenia, in 2017. To advance a national goal of 11% renewable energy Australia, Ethiopia, Madagascar, Malaysia, the Netherlands, Saudi by 2020, Luxembourg extended its 15-year FIT for solar PV Arabia, Senegal, Sri Lanka, the United Kingdom and Zambia, installations larger than 30 kW and provided an investment 105 among other countries. 109 subsidy plus a 15-year FIT for systems of up to 30 kW. Feed-in policies, and the fixed price and dispatch certainty that Germany widened the target group for its FIT for small-scale they provide, still play a role in efforts to scale up renewable projects to include extending benefits to renewable generation power in many countries, particularly to provide support for and consumption in rental properties, referred to as landlord- smaller-scale projects and specific technologies. 110 The United Kingdom established to-tenant electricity supply. 111 At the sub-national a new FIT rate for anaerobic digestion. Two countries adopted new feed-in policies in 2017, increasing 106 level, the SMART programme in the US state of Massachusetts the number of countries with such policies in place to 113. Zambia launched its 200 MW See Reference Table R12.) R ( replaced the previous tradable credits programme to give solar FIT strategy targeting small and medium-sized renewable PV developers of 5 MW or less a long-term, stable floor price BOX 4. Demand-side Management Initiatives Distributed energy resources – including demand response, distribution network businesses to recover from customers distributed renewable energy technologies and energy up to half the cost of demand management activities that storage – can increase system flexibility and reduce demand are cost effective (that is, less costly than new network on the system at peak periods. Development of resources infrastructure). The DMIS is in addition to the existing revenue to manage demand and supply imbalances can assist with cap regulation that decouples network revenues from energy the integration of VRE, as VRE and demand variability can throughput. Measures that could be supported by the DMIS present similar challenges to the energy system. New policies include demand response, energy efficiency, energy storage to enhance the use of distributed resources to meet peak and local generation. demand in 2017 included: United States: California passed a new law in 2017 In December 2017, the Australian Energy Regulator Australia: requiring utilities to plan for the deployment of “non-emitting” introduced a Demand Management Incentive Scheme (DMIS) resources – including demand-side management as well as aimed at encouraging distribution network businesses to energy storage and renewable energy technologies – to serve invest in demand management as an alternative to traditional peak demand. Also in 2017, Massachusetts announced nearly investment in network infrastructure poles and wires. The USD 5 million in grants to support demand-reduction Regulator expects the scheme to result in investment of up initiatives aimed at curbing peak demand. to AUD 1 billion (US 780 million) in demand management Source: See endnote 127 for this chapter. over five years commencing in 2019. The scheme allows 60

61 02 for electricity generated, INTEGRATING POLICIES At least 157 countries had and Ontario (Canada) The integration of high shares of VRE into energy systems awarded FIT support energy requires the modification of policies, standards, and market and to solar PV, biogas and 112 regulatory frameworks to effectively harness the benefits that landfill gas projects. efficiency can be derived from renewables, while ensuring system reliability Consistent cuts to feed-in targets as of end-2017 POLICY LANDSCAPE and security of supply. Policy makers and regulators in some rates have occurred jurisdictions are taking a leading role in attempting to address across the globe in the need for increased flexibility in the grid. recent years. In 2017, for Integration policies require a wide variety of technical concepts, example, China reduced ranging from fast frequency response and synthetic inertia to FIT rates for utility-scale 113 enabling grid service provision from demand-side management At the sub- solar PV, with reductions dependent on the region. 127 See Box 4 and Integration ( p and distributed energy resources. national level, Karnataka (India) reduced its FIT for wind power, chapter.) and Chinese Taipei reduced its FIT for solar PV and wind and 114 increased its FIT for geothermal power by 5%. Several Australian initiatives during 2017 were intended to address the issue of maintaining system security, including reviews of both Net metering or net billing policies, which let grid-connected 128 The Australian Energy technical and market system requirements. consumers who generate their own electricity sell what they do Market Operator proposed a new rule on generator requirements not use on-site to the grid, are often a key tool for promoting the for maintaining security and published a working paper on fast use of small-scale systems, primarily rooftop solar PV. These frequency response to provide guidance on the services that policies have been particularly prevalent in developed and 129 The federal may be valuable in a transforming energy market. emerging economies. government announced the development of a National Energy New net metering policies were enacted during 2017 in Albania, Guarantee, intended to combine regulation of emissions reduction Argentina, Bahrain, Moldova and Tanzania, and Namibia’s and reliability by tasking electricity retailers with purchasing 115 Existing net metering net metering policy came into force. sufficient flexible generation to maintain reliability and sufficient low- programmes also were expanded during the year. Cyprus emission generation to meet climate targets, although concerns expanded eligibility under its existing scheme to biomass and exist that this will hamper renewable development by replacing the 116 Lithuania amended its net metering biogas power plants. 130 South Australia announced an specific renewable energy target. programme as part of an effort to install 200 MW of new solar energy plan to improve power system security, reliability and market 117 Mauritius opened phase two of its net PV capacity by 2020. competition, and submitted rule changes to develop new markets metering programme, providing for the installation of up to and processes to manage frequency control and inertia as the state 118 Pakistan expanded net 2 MW of new solar PV systems. 131 moves towards its target of 50% renewable power by 2025. 119 metering from a few cities to the entire country. In India, Andhra Pradesh and Rajasthan became the fifth and Battles continued in legislative and regulatory bodies as well as sixth states (along with Chhattisgarh, Jharkhand, Karnataka and in the judicial system, pitting proponents of net metering against Uttarakhand) to introduce forecasting and scheduling regulations its detractors, often electric utilities. The United States has to increase the accountability of solar and wind power generators seen some of the most contentious battles over net metering, and to ease the integration of large-scale VRE; three other states a policy that is in place in 42 US states and territories, and 132 published draft regulations in 2017. 120 In Nevada, the state Public these debates continued in 2017. Renewable energy systems themselves can assist with the Utilities Commission (PUC) mandated the implementation of 121 integration of VRE through the provision of grid services, for In New Hampshire, net metering that had been halted in 2015. example, synthetic inertia from wind turbines or voltage regulation consumer groups, utilities and the solar power industry worked ( In the United States, See Integration chapter.) p from inverters. together to develop a new net metering framework for the state, Hawaii’s PUC authorised the activation of new smart inverter resulting in a compromise among the parties that included new, 122 functions for solar PV and storage systems, and California In Arizona, lower net metering rates set by the state PUC. mandated that all inverters connected to the grid – whether for regulators reduced net metering rates for new rooftop solar PV 123 residential and commercial rooftop solar PV, battery systems or The Indian state of Gujarat established maximum customers. 124 EVs – must be smart inverters so that utilities can communicate capacities for eligible rooftop solar PV systems. 133 with them as needed. Virtual net metering, which allows off-site generation to Policies promoting the deployment of enabling technologies qualify for net metering payments, is beginning to emerge p ( also are an element of VRE integration. See Integration as an alternative to rooftop net metering schemes. Greece Many of these policies have focused largely on the chapter.) implemented virtual net metering in 2017, allowing farmers promotion of energy storage technologies, often in conjunction and certain public entities (including schools, hospitals and with new renewable generation from solar PV. For example, in local governments) to claim credit for electricity fed into 2017 Germany increased the budget available for funding energy the grid from solar PV systems located far from the point of 134 125 The Czech storage systems combined with small-scale solar PV. The US state of Rhode Island adopted virtual consumption. Republic continued to require each kW of solar PV installed to be net metering alongside provisions to streamline permitting and 126 coupled with at least 5 kW of storage capacity, and introduced a grid connection of solar PV systems. USD 20.3 million programme that provides subsidies to cover part 135 of the costs of buying and installing these systems. 61

62 RENEWABLES 2018 GLOBAL STATUS REPORT In the United States, Massachusetts committed to deploying These efforts are often organised under national energy 200 MWh of energy storage by 2020, increased its solar PV strategies. For example, during 2017 France announced a plan incentive for systems that include energy storage and awarded to invest EUR 20 billion (USD 24 billion) between 2018 and USD 20 million in grants to support community storage 2022 in an energy transition plan, with about half of the funds 136 New York became the fourth US state (following projects. (EUR 9 billion; USD 11 billion) going to energy efficiency California, Massachusetts and Oregon) to commit to an energy improvements and the remainder going to renewable energy and 137 Maryland became the first state in the country storage target. 144 to advance the shift to clean vehicles. to offer a tax credit for energy storage systems at residences In China, with an eye towards reducing the curtailment of VRE 138 Nevada enacted a suite of energy storage and businesses. and meeting a new goal of eliminating curtailment altogether by and grid modernisation policies, including the addition of energy 2020, the National Energy Administration is promoting renewable 139 California storage as a qualifying technology in the state’s RPS. energy consumption by: encouraging power generators to increased the funds available annually for energy storage-related 140 trade with heating companies; gradually eliminating coal-fired New York City became the first US municipality to rebates. industrial boilers and shifting residential heating to natural gas or adopt an energy storage target, calling for 100 MWh of storage 141 electricity; improving transmission capacity from provinces that capacity by 2020. have surpluses of solar and wind power to population centres; China released its first national-level policy document to and reforming the electricity market, which historically has not guide development of the energy storage industry, including 145 taken into account marginal costs when prioritising dispatch. plans for non-pumped storage projects, driven in part by a In 2017, China announced plans to introduce a system to steer desire to increase renewables penetration and to reduce VRE 146 solar PV investments to regions with lower rates of curtailment. 142 In addition, China’s 13th Five-Year Hydropower curtailment. Plan calls for increasing the country’s pumped storage capacity While examples of direct policy linkages between EVs and 143 to 40 GW by 2020. renewable electricity are limited, a number of jurisdictions have adopted policies to encourage or mandate the use of renewable energy in EVs. Austria offers a purchase price premium for EVs SECTOR COUPLING AND SYSTEM-WIDE charged with 100% renewable electricity, and in 2017 Germany established an EUR 300 million (USD 370 million) tendering ENERGY TRANSFORMATION programme providing grants for the deployment of EV charging Policies that promote sector coupling can provide economy- 147 The city infrastructure that sources electricity from renewables. wide benefits. This coupling can occur by linking renewable of Pittsburgh (United States) announced that charging stations for power directly to heating and cooling or transport, or by using 148 its new EV fleet would be powered by a 100 kW solar PV array. renewable power-to-gas. These efforts can maximise the benefits of renewable energy sources while helping to better integrate However, countries with targets for both EVs and renewable renewable energy into all sectors. energy in power may encourage the use of renewable deployment for transport. See Figure 15.) p Costa Rica, where the electricity ( Policies that promote sector coupling between electricity, system is 98% renewable, announced tenders for EVs to be transport, and heating and cooling can provide economy-wide 149 Similarly, Sweden’s powered by the country’s electric grid. benefits and assist in increasing the overall renewable energy new climate policy draws on the country’s existing low-emission Policy makers are starting to p ( share. See Integration chapter.) power sources to decarbonise transport by increasing electric look at the energy system as a whole, introducing policies that 150 mobility as well as biofuel use. are cross-sectoral. 62

63 02 FIGURE 15. Targets for Renewable Power and/or Electric Vehicles, End-2017 NATIONAL TARGETS POLICY LANDSCAPE Both renewable electricity and electric vehicle targets Electric vehicle target only, no renewable electricity target No policy or no data SUBNATIONAL TARGETS United Kingdom India Canada United States New YorkNew YorkNew YorkNew York New York Washington Washington Washington Washington Washington VermontVermontVermontVermont Vermont ScotlandScotlandScotlandScotland Scotland British Columbia British Columbia British Columbia British Columbia British Columbia OregonOregonOregonOregon Oregon Massachusetts Massachusetts Massachusetts Massachusetts Massachusetts Rhode Island Rhode Island Rhode Island Rhode Island Rhode Island Karnataka KarnatakaKarnatakaKarnatakaKarnataka Connecticut Connecticut Connecticut Connecticut Connecticut IlinoisIlinoisIlinoisIlinois Ilinois California CaliforniaCaliforniaCaliforniaCalifornia MarylandMarylandMarylandMaryland Maryland CITY TARGETS Oslo London Vancouver Oxford Seattle Québec Portland Montreal Beijing San Francisco New York Seoul Los Angeles Jeju Shenzen Dubai Dubai Note: Targets for Norway and the United Kingdom are national-level final energy targets. The United States does not have a renewable electricity target at the national level; de facto state-level targets have been set through existing RPS policies. The figure provides a sample of local renewable energy commitments worldwide. It does not aim to present a comprehensive picture of all municipal electric vehicle or renewable Source: REN21 Policy Database. electricity goals. 63

64 RENEWABLES 2018 GLOBAL STATUS REPORT Table 2. Renewable Energy Support Policies Country Fiscal Incentives and Regulatory Policies Public Financing , 2 7 RPS billing targets payment mandate mandate Transpor t Tendering tax credits production obligation/ Tradable REC Reductions in Investment or Electric utility Feed-in tariff/ Net metering/ in INDC or NDC Heat obligation/ Public investment, quota obligation/ premium payment subsidies or rebates VAT or other taxes Renewable energy Renewable energy Energy production loans, grants, capital sales, energy, CO High Income Countries Andorra Antigua and P Barbuda P Australia 6 E, P, HC, T Austria P Bahamas, The P Bahrain 1 P Barbados E, P, HC, T Belgium P Brunei Darussalam P* Canada 6 E, P Chile E, P, HC, T Cyprus 6 E, P, HC, T Czech Republic 6 E, P, HC, T Denmark E, P, HC, T Estonia E, P, HC, T Finland 6 6 E, P, HC, T France 6 E, P, HC, T Germany E, P, HC, T Greece 6 6 E, P, HC, T Hungary E Iceland E, P, HC, T Ireland E, P Israel 6 E, P, HC, T Italy E, P Japan 6 E, P Korea, Republic of P Kuwait E, P, HC, T Latvia Liechtenstein E, P, HC, T Lithuania E, P, HC, T Luxembourg 6 E, P, HC, T Malta Monaco 6 6 6 E, P, HC, T Netherlands P New Zealand 6 E, T Norway Oman E, P Palau 6 E, P, HC, T Poland 2 E, P, HC, T Portugal P, T Qatar San Marino P Saudi Arabia P Seychelles P Singapore 6 E, P, HC, T Slovak Republic 6 E, P, HC, T Slovenia 6 3 E, P, HC, T Spain St. Kitts and Nevis E, P, HC, T Sweden 6 E Switzerland Trinidad and P Tobago E, P United Arab Emirates 6 6 E, P, T, HC United Kingdom 6 4 P* United States 6 Uruguay Note: Please see key on last page of table. 64

65 02 Table 2. Renewable Energy Support Policies (continued) Country Fiscal Incentives and Regulatory Policies Public Financing , 2 7 POLICY LANDSCAPE RPS billing targets payment mandate mandate Transpor t Tendering tax credits production obligation/ Tradable REC Reductions in Investment or Electric utility Feed-in tariff/ Net metering/ in INDC or NDC Heat obligation/ Public investment, quota obligation/ premium payment subsidies or rebates VAT or other taxes Renewable energy Renewable energy Energy production loans, grants, capital sales, energy, CO Upper-Middle Income Countries E, T Albania E, P Algeria E, P Argentina P Azerbaijan E Belarus P Belize Bosnia and E Herzegovina Botswana E, P Brazil 6 E, P, HC, T Bulgaria , P, HC E China P Colombia P Costa Rica 6 E, P, HC, T Croatia P Cuba P Dominica P Dominican Republic P Ecuador Equatorial Guinea E, P Fiji E, P Gabon E, P Grenada E, P Guyana P Iran P Iraq E, P Jamaica P Kazakhstan 6 E, P, HC Lebanon E, P, HC, T Libya 6 6 E, P, HC, T Macedonia, FYR P Malaysia P Maldives P Marshall Islands 6 P Mauritius P, HC Mexico E, P, HC, T Montenegro P Namibia Nauru E, T Panama P Paraguay P Peru 6 E, P, HC, T Romania P Russian Federation E, P Samoa E, P, HC, T Serbia 6 P South Africa E, P St. Lucia St. Vincent and P 1 the Grenadines Suriname E, P, HC, T Thailand P Tonga P Turkey Turkmenistan P Tuvalu P Venezuela Note: Please see key on last page of table. 65

66 RENEWABLES 2018 GLOBAL STATUS REPORT Table 2. Renewable Energy Support Policies (continued) Country Fiscal Incentives and Regulatory Policies Public Financing , 2 7 RPS billing targets payment mandate mandate Transpor t Tendering tax credits production obligation/ Tradable REC Reductions in Investment or Electric utility Feed-in tariff/ Net metering/ in INDC or NDC Heat obligation/ Public investment, quota obligation/ premium payment subsidies or rebates VAT or other taxes Renewable energy Renewable energy Energy production loans, grants, capital sales, energy, CO Lower-Middle Income Countries Angola 6 P Armenia E, P Bangladesh E, HC Bhutan P Bolivia Cabo Verde P P Cambodia P Cameroon P Congo, Republic of E, P Côte d’Ivoire E, P Djibouti E, P Egypt El Salvador 6 Georgia E, P Ghana E, P Guatemala P Honduras 6 P, H C India , P E Indonesia E, P, HC, T Jordan P, HC Kenya P Kiribati E, HC Kosovo Kyrgyz Republic E Lao PDR P Lesotho E Mauritania Micronesia, P Federated States of E, P, HC, T Moldova E, P Mongolia P, H C Morocco Myanmar P Nicaragua P Nigeria Pakistan 5 P Palestine, State of P Papua New Guinea P Philippines São Tomé P and Príncipe P Solomon Islands P Sri Lanka P Sudan Swaziland E Syria P Tajikistan P Timor-Leste 6 P Tunisia , E, P 6 Ukraine HC, T E , P Uzbekistan E, P Vanuatu E, P, T Vietnam P Yemen Zambia Note: Please see key on last page of table. 66

67 02 Table 2. Renewable Energy Support Policies (continued) Country Fiscal Incentives and Regulatory Policies Public Financing , 2 7 POLICY LANDSCAPE RPS billing targets payment mandate mandate Transpor t Tendering tax credits production obligation/ Tradable REC Reductions in Investment or Electric utility Feed-in tariff/ Net metering/ in INDC or NDC Heat obligation/ Public investment, quota obligation/ premium payment subsidies or rebates VAT or other taxes Renewable energy Renewable energy Energy production loans, grants, capital sales, energy, CO Low Income Countries E, P, T Afghanistan E, P Benin P Burkina Faso E Burundi Central African Republic Chad P Comoros Congo, Democratic P Republic of P Eritrea P Ethiopia P Gambia E, P Guinea E, P Guinea-Bissau P Haiti Korea, Democratic People's Republic E, P Liberia E, P Madagascar E, P, HC Malawi E, P Mali HC Mozambique E, P Nepal E, P Niger P Rwanda P Senegal P, H C Sierra Leone Somalia P South Sudan P Tanzania E, P To g o P, HC, T Uganda Zimbabwe Policies Targets Existing national policy or tender framework Energy (final or primary) E (could include sub-national) P Power Existing sub-national policy or tender framework New Heating or cooling (but no national) HC Revised T Transport National tender held in 2017 * Indicates sub-national target Sub-national tender held in 2017 Removed 1 Certain Caribbean countries have adopted hybrid net metering and feed-in policies whereby residential consumers can offset power while commercial consumers are obligated to feed 100% of the power generated into the grid. These policies are defined as net metering for the purposes of the GSR. 2 FIT support removed for large-scale power plants. 3 Spain removed FIT support for new projects in 2012. Incentives for projects that previously had qualified for FIT support continue to be revised. 4 State-level targets in the United States include RPS policies. 5 The area of the State of Palestine is included in the World Bank country classification as “West Bank and Gaza”. 6 Includes renewable heating and/or cooling technologies. 7 Some targets shown may be non-binding. Note: Countries are organised according to annual gross national income (GNI) per capita levels as follows: “high” is USD 12,236 or more, “upper-middle” is USD 3,956 to USD 12,235, “lower-middle” is USD 1,006 to USD 3,955 and “low” is USD 1,005 or less. Per capita income levels and group classifications from World Bank, “Country and Lending Groups”, http://data.worldbank.org/about/country-and-lending-groups, viewed March 2018. Only enacted policies are included in the table; however, for some policies shown, implementing regulations may not yet be developed or effective, leading to lack of implementation or impacts. Policies known to be discontinued have been omitted or marked as removed or expired. Many feed-in policies are limited in scope of technology. Source: See endnote 2 for this chapter. 67

68 03 MARKET AND INDUSTRY TRENDS In 2017, United Parcel Service of America (UPS) expanded its investment in solar energy as an owner/ operator of solar assets at at least eight facilities in the United States. The estimated USD 18 million investment in 26,000 solar panels and related infrastructure at the facilities supplies about half of the daily Solar panels on energy needs of each building and resulted in a nearly five-fold increase in solar power generation at UPS UPS facility in facilities – equivalent to the energy needed to electrify some 1,200 US homes annually. The company also has Parsippany, New invested in alternative fuel and advanced technology vehicles and fuelling stations globally since 2009 – from Jersey, United States pedal power and electric-assisted bicycles in dense urban areas, to electric and hybrid-electric vehicles, to renewable natural gas.

69 03 MARKET AND INDUSTRY TRENDS MARKET BIOENERGY ii iomass energy (bioenergy) can be produced from , and the Sustainable expansion of a sustainable bioeconomy a wide range of feedstocks of biological origin Biofuels Innovation Challenge, which is part of the global Mission B 6 AND using a number of different processes to produce Innovation programme and has 22 participating countries. heat, electricity and transport fuels (biofuels). Many bioenergy conversion pathways are well established and fully commercial, BIOENERGY MARKETS while others are still at the development, demonstration and 1 Bioenergy markets are greatly influenced by the policy contexts commercialisation stages. of specific countries and regions. During 2017, several countries i If the traditional use of biomass is included, bioenergy implemented policies to support bioenergy production and use. contributed an estimated 12.8% (46.4 exajoules (EJ)) to total For example, in Brazil, the RenovaBio initiative is expected to lead 2 Modern bioenergy (excluding final energy consumption in 2016. 7 Also to a significant increase in bioenergy production and use. the traditional use of biomass) contributed 5% to final energy in 2017, India launched a major initiative to enhance the level of 3 See Figure 16.) ( p consumption. domestic production and use of biofuels (including advanced INDUSTRY Bioenergy plays an expanded role in many low-carbon scenarios 8 In contrast, debate biofuels produced from agricultural residues). and can be particularly useful in the long-haul transport sector, has continued within the European Union (EU) about the role of 4 where other energy alternatives may not be readily available. bioenergy in the EU Renewable Energy Directive, with constraints An expanded role for bioenergy remains the subject of debate 9 Uncertainties also to be introduced on “food-based” biofuels. and sometimes controversy regarding the sustainability of remain around the future of the US Renewable Fuel Standard production and use. See Box 2 in Policy Landscape chapter.) ( p 10 These varying policy climates greatly affect market (RFS). However, there is increasing consensus that when produced and developments. used in a sustainable way, bioenergy can contribute to reductions in greenhouse gas emissions and provide a range of other The contribution of bioenergy to final energy consumption for 5 environmental, social and economic benefits. heat in buildings and industry exceeds its use in electricity and TRENDS transport, even when the traditional use of bioenergy is excluded; In 2017, a number of initiatives were advanced to expand however, the electricity sector has seen the highest rate of growth sustainable bioenergy development, including the newly 11 established 20-country BioFuture Platform to promote the p ( See Figure 16.) in bioenergy consumption. The traditional use of biomass for heat involves the burning of woody biomass or charcoal as well as dung and other agricultural residues in simple and ineffi i - cient devices. The bioeconomy comprises those parts of the economy that use renewable biological resources from the land and sea to produce food, materials and energy. ii 69

70 RENEWABLES 2018 GLOBAL STATUS REPORT FIGURE 16. Shares of Bioenergy in Total Final Energy Consumption, Overall and by End-Use Sector, 2016 Modern Non- Traditional biomass biomass biomass 3.0 2.1 Transport Electricity 100% 6.1 % 0.4 % 0.9 21.8 Heat, 87.2 % buildings Non-biomass (modern) 4.0 75% 1.4 % 50% Heat, buildings (traditional) % 7.8 % 12.8 25% Biomass 2.2 % 0% Heat, industry Heat, Heat, Transport Electricity Note: Totals may not add up due to rounding. buildings industry Source: See endnote 3 for this section. energy consumption has been declining gradually for several Bio-heat Markets years, from 9.2% of total final energy consumption (TFEC) in Bioenergy as solid fuels (biomass), liquids (biofuels) or gases 14 ( See Figure 2 in p 2005 to an estimated 7.8% of TFEC in 2016. (biogas or biomethane) can be used to produce heat for cooking Global Overview chapter.) and for space and water heating in the residential sector, in In 2016, modern bioenergy applications provided an estimated traditional stoves or in modern appliances such as pellet-fed 13.1 EJ of heat in terms of final energy consumption, of which central heating boilers. At a larger scale, it can provide heat for 15 The global residential 7.9 EJ was used in industrial applications. public and commercial premises as well as for industry, where it and commercial sectors consumed 5.2 EJ of bioenergy in 2016, can provide either low-temperature heat for heating and drying 16 The total installed used mainly for space heating in buildings. applications or high-temperature process heat. Bioenergy also heat capacity of modern bioenergy increased to an estimated can be used to co-generate electricity and heat via combined 17 ) in 2017. 314 gigawatts-thermal (GW heat and power (CHP) systems, either on-site in buildings or th distributed from larger production facilities via district energy Europe is the largest consumer of modern bio-heat by region. systems, to provide heating (and in some cases cooling) to EU member states have promoted the use of renewable heat in residential, commercial and industrial buildings. both buildings and industry in order to meet mandatory national 18 The EU used targets under the Renewable Energy Directive. The traditional use of biomass to supply energy for cooking and 19 an estimated 3.6 EJ of bio-heat in 2016 (latest data available). heating in simple and usually inefficient devices is still the largest The majority of this was supplied from solid See Figure 17.) p ( use of bioenergy. Given the serious negative health impacts of biomass (91%), with additional approximately equal contributions such use, and the unsustainable nature of much of the supply 20 i (MSW). (4% each) from biogas and from municipal solid waste of such biomass, there is an emphasis on reducing traditional biomass uses as part of the efforts to improve energy access. See Distributed Renewables chapter.) ( Because the supply of p biomass for traditional use is informal, obtaining accurate data on 12 its use is difficult. The amount of biomass used in traditional applications has grown slowly, from 27.7 EJ in 2005 to an estimated 28.4 EJ in 13 However, the share of traditional biomass in total global 2016. i Municipal solid waste contains a significant proportion of biomass materials (food wastes, used wood, etc.), and the energy produced from this part of the waste is usually considered to be renewable. The proportion of renewable energy supplied varies according to the specific waste composition, but a value of 50% is often used as a default. Given the potentially toxic nature of the flue gases from such fuels, plants using MSW should be fitted with stringent emission control systems to avoid adverse impacts on air quality. 70

71 03 Consumption of Heat from Bioenergy in the EU-28, by Country and Fuel Source, 2006-2016 FIGURE 17. Exajoules EU-28 Total 4.0 3.6 Exajoules 3.5 3.0 2.5 MARKET AND INDUSTRY TRENDS 2.0 1.5 1.0 0.5 0 2011 2013 2012 201620152014 20102009 2008 2006 2007 2012 2009 2007 2006 2010 2011 2008 2013 2014 2016 2015 Sweden Austria st of EU-28 Municipal solid waste Re Biogas France Solid biomass Poland Bioliquids United Kingdom Germany Finland Romania Spain Italy Source: See endnote 19 for this section. and commercial heating was essentially unchanged in 2017 at Germany is the largest consumer (0.52 EJ) of bio-heat in the EU, 32 14.0 million tonnes. Most of the pellets were used in Europe followed by France (0.45 EJ), Sweden (0.36 EJ), Italy (0.32 EJ) 21 (11.1 million tonnes) – with the leading markets in Italy, Germany and Finland (0.30 EJ). Since 2007, the consumption of heat from 22 and France – followed by North America (2.9 million tonnes, with bioenergy in the EU has increased by over 30%. The fastest- 33 sales in the United States down 4% to 2.6 million tonnes). growing market over this period is the United Kingdom, where bio-heat consumption has risen more than five-fold with support 23 Bioelectricity Markets under the UK’s Renewable Heat Incentive Scheme. Global bioelectricity (electricity generation from bioenergy) Heat supplied from bioenergy accounts for around 6.8% of all 24 capacity increased 7% between 2016 and 2017, to 122 gigawatts industrial heat consumption. Total bioheat consumption in 34 (GW). Total global bioelectricity generation rose 11% in 2017 to industry has been stable in recent years, concentrated in bio- 35 555 terawatt-hours (TWh). China has now overtaken the United based industries such as the pulp and paper sector, timber States as the largest producer of bioelectricity; the other major 25 and the food and tobacco sectors. More than 50% of global producers are Brazil, Germany, Japan, the United Kingdom and industrial use of bio-heat continues to occur in three countries: 36 India. ( See Figure 18.) p 26 Brazil, India and the United States. Brazil is the largest user of bioenergy for industrial heat production (1.4 EJ) due to the use In Europe, the leading region for bioelectricity generation, of bagasse in CHP applications in the sugar industry, the use of generation rose 11% in 2017 compared to 2016, driven by the Renewable Energy Directive and maintaining the strong growth residues in the pulp and paper industry and the use of charcoal 37 27 of the previous decade. Europe’s largest bioelectricity producer in the iron and steel industry. is Germany, where capacity increased 4% in 2017 to 8.0 GW, with India is the second largest user of bioenergy for industrial heat 38 significant rises in biogas, biomethane and sewage gas capacity. 28 production, particularly in the sugar industry. Bioenergy use Bioelectricity generation in Germany rose 1% (51 TWh), with a 2% in industry in North America has been falling, compensated by rise in biogas and methane generation offsetting reductions from gains in Asia and South America, reflecting changes in production 39 other biomass feedstocks. 29 patterns in key industry sectors, especially pulp and paper. The United Kingdom’s bioelectricity capacity increased by China used some 8 million tonnes of biomass (equivalent to 241 megawatts (MW) in 2017 to 6.0 GW, due primarily to increases 120 petajoules (PJ)) in the industrial sector in 2016 (latest data in wood-based generation capacity, anaerobic digestion and available), and the country’s 13th Five-Year Plan indicates that 40 waste-to-energy. The country’s bioelectricity generation rose 30 this will increase to 30 million tonnes (450 PJ) by 2020. The use 6% in 2017 to 31.8 TWh, with growth in large-scale generation of biomass for heating is seen as a way to reduce local pollution based on solid biomass fuels including wood pellets, anaerobic by replacing coal in heating applications, and to provide heat in digestion and MSW, offset in part by reductions in landfill gas 31 the country’s north during periods of gas shortage. 41 generation and in co-firing of biomass with coal. Generation Modern use of bio-heat in buildings is concentrated in North also is estimated to have grown strongly in Finland, Ireland, 42 Poland and Sweden during 2017. America and the EU. The market for wood pellets for domestic 71

72 RENEWABLES Tera GLOBAL STATUS REPORT Global Bio-Power Generation by Region, 2007-2017 FIGURE 18. Terawatt-hours per year Rest of World World Total 600 China 555 Terawatt-hours South America 500 Asia North America 400 EU-28 300 200 100 0 2010 2009 2008 2007 2017 2016 2015 2014 2013 2012 2011 Source: See endnote 36 for this section. China has become the world’s largest bioelectricity producer, bioelectricity capacity increased 10% in 2017 to 9.5 GW, and 52 as generation grew 23% in 2017 to 79.4 TWh, and capacity generation rose 8% to 32.5 TWh. 43 increased from 12.1 GW to 14.9 GW. This growth is in response to revised objectives in the 13th Five-Year Plan, which set a capacity Transport Biofuel Markets 44 target for renewables of 23 GW by 2020. The combustion of Biofuels production and use are very concentrated geographically, agricultural wastes and MSW accounted for most of the total with more than 80% of production and use taking place in the 45 bioelectricity generation. 53 United States, Brazil and the EU combined. In 2017, global The United States has the second highest level of bioelectricity biofuels production rose around 2.5% compared to 2016, reaching generation, although generation has been relatively flat for the 54 143 billion litres (equivalent to 3.5 EJ). The United States and last decade in the absence of strong policy drivers and because Brazil remained the largest biofuel producers by far, followed by of increasing competition from other sources of renewable 55 Germany and then Argentina, China and Indonesia. electricity generation. Generation rose only 2% in 2017 to 69 TWh 46 The main biofuels produced were ethanol, biodiesel (fatty acid (up from 68 TWh in 2016). US bioelectricity capacity decreased methyl ester or FAME fuels), and fuels produced by treating animal slightly despite the commissioning of 268 MW of new capacity, 47 and vegetable oils and fats with hydrogen (hydrotreated vegetable as some existing capacity was retired. oil (HVO) / hydrotreated esters and fatty acids (HEFA)), as well Brazil is the largest producer of bioelectricity in South America, i as a growing contribution from biomethane in some countries . with capacity rising 5% in 2017 to 14.6 GW and generation rising An estimated 65% of biofuel production (in energy terms) was 48 4% to 49 TWh. Nearly 80% of the biomass-based electricity 56 ethanol, 29% was FAME biodiesel and 6% was HVO/HEFA. generation in Brazil is fuelled by bagasse, which is produced in ( See Figure 19.) The use of biomethane as a transport fuel, while p 49 large quantities in sugar production. 57 growing rapidly, contributed less than 1% of the biofuel total. In Asia (beyond China), bioelectricity capacity and generation Production, consumption and trade in biofuels are affected by continued to rise strongly in Japan, stimulated by a generous 50 several factors including growing conditions in the producing feed-in tariff. The country’s capacity for dedicated biomass countries, the policy and market environments, as well as import plants increased 14% to reach 3.6 GW in 2017, and generation 51 totalled some 37 TWh, a 16% increase from 2016. tariffs and other measures affecting international trade. India’s total i All references to ethanol in the GSR refer to bioethanol, that is, ethanol derived from biomass. Ethanol is produced principally from sugar- and starch-containing materials including corn, sugar cane, wheat and cassava. After pre-treatment and fermentation the ethanol is separated by distillation. Most biodiesel is made by chemically treating vegetable oils and fats (including palm, soy and canola oils, and some animal fats) to produce FAME biodiesel. Ethanol and biodiesel are collectively referred to as “conventional biofuels”. While FAME fuels can be used in diesel engines, their properties depend on their origin and differ from those of fossil-based diesel, so they are usually used as a blend with fossil diesel products. An alternative is to take the oils and treat them with hydrogen to produce a hydrocarbon product that then can be refined to produce fuels with properties equivalent to those of a range of fuels derived from fossil fuels such as diesel or jet fuel. These fuels are described as HVO/HEFA and sometimes as renewable diesel. (See, for example, Aviation Initiative for Renewable Fuels in Germany, “Hy - dro-processed esters and fatty acids (HEFA)“, http://www.aireg.de/en/production/hydro-processed-esters-and-fatty-acids-hefa.html.) In addition, a range of other biofuels are produced at a much smaller scale, including ethanol from cellulosic feedstocks, pyrolysis oils, etc. See Liquid Fuels Industry section of the Bioenergy text for further details and references. 72

73 03 Global Trends in Ethanol, Biodiesel and HVO/HEFA Production, 2007-2017 FIGURE 19. Energy content (exajoules) HVO/HEFA World Total 4 3.5 Exajoules Biodiesel (FAME) Ethanol 3 MARKET AND INDUSTRY TRENDS 2 1 0 2008 2007 2017 2015 2014 2012 2011 2010 2013 2009 2016 Note: HVO = hydrotreated vegetable oil; HEFA = hydrotreated esters and fatty acids; FAME = fatty acid methyl esters Source: See endnote 56 for this section. Global annual production of ethanol increased 3.8% between 2016 in 2017 aimed at US-produced ethanol; if the quota is exceeded, 58 72 and 2017, from 101 billion litres to 105.5 billion litres. The United an import tariff is imposed. States and Brazil maintained their leads in ethanol production, Biodiesel production is more geographically diverse than ethanol 59 together accounting for 84% of global production in 2017. The production and is spread among many countries. Although 60 next largest producers were China, Canada and Thailand. Europe was the highest-producing region in 2017, the leading US ethanol production rose 2.8% to 60 billion litres during the year, countries for biodiesel production were the United States (16% 61 following a good corn harvest. More than 90% of this fuel was of global production), Brazil (11%), Germany (9%), Argentina (9%) 73 used in the United States – with a record average blend rate of Global biodiesel production rose around and Indonesia (7%). 74 10.08% – to meet the annual volume requirements under the US The increase was due mainly to 1% to 36.6 billion litres in 2017. Environmental Protection Agency’s (US EPA’s) final Renewable increases in the United States, where production grew 1.6% to 62 Fuel Standard (RFS2) allocations. The remaining fuel was 6 billion litres in response to improved opportunities for biodiesel 63 75 exported to more than 60 countries. Biodiesel production in Brazil increased 13% in in the RFS. 2017 to reach a record 4.3 billion litres, with the blending level of Ethanol production in Brazil was stable in 2017 at 28.5 billion litres, 76 64 Germany was again the largest biodiesel in diesel rising to 9%. despite high global sugar prices favouring sugar production. The 77 In Argentina, biodiesel European producer at 3.5 billion litres. fuel was used mainly within Brazil but some was exported, for 65 production increased 8% to 3.3 billion litres, and in Indonesia example to the United States. 78 production fell 10% to 2.5 billion litres in 2017. China continued to rank third for ethanol production globally in International trade in biodiesel was greatly affected by changing 2017 and produced an estimated 3.3 billion litres, a 4% increase 66 import tariffs. The United States introduced “anti-dumping” tariffs over 2016. China aims to shift to an E10 ethanol/gasoline blend 79 67 In Europe, however, on imports from Indonesia and Argentina. by 2020, which would push demand up by a factor of at least four. 80 the EU ended tariffs on imports of biodiesel in 2017. The country’s ethanol production has grown, based largely on maize (70%) but with significant contributions from cassava (25%) HVO/HEFA, produced by treating vegetable oils and animal 68 and molasses from sugar beet and sugar cane (5%). fats (including wastes and residues) with hydrogen, have fuel properties that are closer to those of fossil-based fuels and that Ethanol production in Canada, which ranked fourth globally in 69 can be tailored to particular end-uses. Production is concentrated 2017, increased 3% to 1.7 billion litres. In Thailand, the fifth largest 81 70 in Finland, the Netherlands, Singapore and the United States. producer, production increased 23% to 1.5 billion litres. Global production of HVO grew an estimated 10% in 2017, from Global trade patterns for ethanol have been changing, in part in 82 5.9 billion litres to 6.5 billion litres. response to rapidly rising demand in China and to the introduction The United States is the largest market for biomethane, and of protective import tariffs in several countries. In 2015, China production of the fuel has been stimulated in the country since became a major importer of ethanol, especially from the United 2015, when biomethane was first included in the advanced States; however, as domestic production in China increased, cellulosic biofuels category of the EPA’s RFS, thereby qualifying the country introduced tariff barriers in early 2017 that greatly 71 83 reduced these imports. US biomethane consumption grew nearly Brazil also introduced an import quota for a premium. 73

74 RENEWABLES 2018 GLOBAL STATUS REPORT The use of MSW as a six-fold between 2014 and 2016, then increased another 15% in 84 fuel for electricity or heat 2017 to some 17.4 PJ. production is very well In Europe, the other globally significant market for biomethane 80 % established, for example in for transport, consumption increased 12% between 2015 and 92 This Europe and Japan. 85 of all biofuels are produced Production and use were 2016, to 6.1 PJ (latest data available). practice often is driven by and used in the United concentrated in Sweden (4.7 PJ), where methane production efforts to improve waste States, Brazil and the EU from food wastes is encouraged as part of a sustainable waste management and to reduction policy, and where use of biomethane as a transport fuel avoid sending the MSW is prioritised over its use for electricity production or for injection to landfill, as much as to 86 Germany (1.3 PJ) was Europe’s second largest into gas grids. provide renewable energy. 87 user of biomethane for transport in 2016. Energy generation from MSW is being deployed more widely in a number of emerging BIOENERGY INDUSTRY and developing countries where urbanisation has led to rising waste production and thus to waste disposal problems. Bioenergy requires a more complex supply chain than other renewable energy technologies, including feedstock suppliers In China, producing energy from waste is used widely as an and processors as well as transport of the fuel to end-users. The alternative to landfill, and waste-to-energy plants also are starting required equipment includes specialised biomass harvesting, to be developed in other parts of Asia and in Africa. For example, handling and storage equipment in addition to appliances and in Addis Ababa, Ethiopia, construction began in 2017 on a waste- hardware components to convert biomass to useful energy to-energy plant that will process 1,400 tonnes of municipal waste carriers and energy services. Many of the necessary technologies a day and generate 185 gigawatt-hours (GWh) of electricity are well developed and commercially available; however, the annually, enough to meet the power demands of 25% of the city’s bioenergy industry – with support from academia, research 93 And in Chonburi, Thailand, the international waste households. institutions and governments – is making progress in bringing management firm Suez (France) began work on an 8.63 MW 88 new technologies and fuels to the market. industrial waste-to-energy power plant that will process some 94 100,000 tonnes of waste each year. Solid Biomass Industry Global production and trade in wood pellets for industrial use A very diverse set of industries is involved in growing, harvesting, i , (mostly in power stations) and for heating continued to expand delivering, processing and using solid biomass to produce heat and 95 Some with production reaching some 30 million tonnes in 2017. electricity, ranging from the informal supply of traditional biomass, 14 million tonnes was used for residential and commercial heating to the locally based supply of smaller-scale heating appliances, to markets that year – notably in Italy, Germany and Sweden – but regional and global players involved in large-scale district heating 96 Recent developments the market did not grow significantly. and power generation technology supply and operations. Using include the commissioning of Helsinki, Finland’s largest pellet- biomass to produce electricity and/or heat can involve the use of fired boiler – which uses 21 tonnes of wood pellets per hour to fuels close to their source, such as MSW, residues from agricultural generate heat for apartment blocks – by the Finnish company and forestry processes, and purpose-grown energy crops. 97 Helen in February 2018. The fuels also can be processed and transported to be used where The other 16 million tonnes of wood pellets was used in the markets are most profitable – notably, through the international trade industrial sector, mostly for power generation, a growth of more in biomass pellets that often are used for large-scale generation, 98 Europe is the major market for this use, than 20% since 2016. either by co-firing in coal-fired power stations or for burning in dominated by the United Kingdom, which used 7.5 million tonnes dedicated utility-scale plants. The energy can be used for heating, for 99 UK-based Drax – of wood pellets for power generation in 2017. electricity generation or for both, through the use of CHP systems. the world’s largest bio-electricity generator and pellet user – has Bagasse and other agricultural residues are commonly used to already converted three coal generation units (totalling 1.9 GW) to 100 produce heat and power around the world, especially in Brazil. The company also biomass pellets, and is converting a fourth. This technology is being deployed to a larger extent in more has invested heavily in pellet production to secure its supplies, countries, and several new plants were commissioned or under and in 2017 it opened a plant in the US state of Louisiana that 101 development in 2017. For example, in Sierra Leone, Sunbird Denmark can produce 45,000 tonnes of pellets annually. Bioenergy Africa successfully commissioned the country’s first is the second largest European market for wood pellet use, 102 bioenergy plant (32 MW), using a variety of feedstocks (bagasse, at 2.7 million tonnes. napier grass, sorghum, miscanthus and wood chips) to supply an Markets also have developed rapidly in the Republic of Korea 89 agricultural estate, with surplus power sold to the national grid. and in Japan, where combined pellet production totalled In Mexico, a 50 MW bagasse plant was completed (commissioned some 2.6 million tonnes in 2017 and is expected to exceed in February 2018) to supply power and heat to the sugarcane mill; 10 million tonnes by 2020 as projects under construction come 90 A 1.8 MW plant any excess energy will be exported to the grid. 103 In 2017, developers in Japan rushed to get bioelectricity online. fuelled with rice husks is being developed in the Ayeyarwaddy projects approved before the expected reduction in the feed-in 91 region of Myanmar. There is still no consensus about the sustainability of such large-scale supply of wood pellets, although most large-scale use is subject to certification. For a i Technology Roadmap: Delivering Sustainable Bioenergy (Paris: 2017), pp. 48-55, http://www.iea.org/publications/freepubli - discussion of the main issues, see IEA, cations/publication/Technology_Roadmap_Delivering_Sustainable_Bioenergy.pdf. 74

75 03 104 tariff at year’s end. By mid-2017, more than 800 projects with a total capacity of 12.4 GW had won government approval, nearly 105 double Japan’s biomass target for 2030. In 2017, the Finnish company Valmet was contracted to install a 112 MW power plant in Kishiru, Japan, based on a circulating fluidised bed system for co-firing coal and biomass, including 106 wood pellets and crushed palm kernel shells (PKS). Andritz (Austria) will supply a boiler using PKS and wood pellets to produce 50 MW of electricity for export to the grid in Ichihara, 30 107 kilometres east of Tokyo. Toshiba Corporation (Japan) started MARKET AND INDUSTRY TRENDS commercial operation of a 50 MW biomass power plant using PKS in Omuta, in Fukuoka prefecture, to produce electricity for the grid; the company plans to import 0.2 million tonnes of PKS 108 per year, mainly from Indonesia. Japanese companies involved in bioenergy production from biomass pellets are taking steps to ensure adequate fuel 109 supply imports. For example, Sumitomo, the country’s largest pellet importer, has undertaken efforts to secure supply by taking financial stakes in several pellet-producing companies 110 By contrast, Europe’s second largest ethanol plant (and the worldwide. In 2017, Sumitomo acquired a 48% share in Canada’s 111 United Kingdom’s largest), operated by Vivergo in East Yorkshire, second largest pellet producer, Pacific Bioenergy. It also has was taken offline in December 2017 for the foreseeable future interests in Brazil, where it has taken a stake in Cosan Biomassa, 112 because of market uncertainties including a lack of progress a company that plans to make pellets from sugarcane residue. in the United Kingdom in developing concrete proposals for a The United States is the largest producer and exporter of 10% ethanol blend (E10) in petrol, and because of EU plans to 113 wood pellets. As of end-2017, the country had the capacity 123 Archer Daniels constrain the use of “food-based” biofuels. to produce 10.7 million metric tonnes (11.8 million short tons) of Midland (United States) mothballed its biodiesel facility in Mainz, 114 pellets annually in 87 plants. Actual production in 2017 was Germany in early 2018 after the removal of EU import tariffs on 5.3 million tonnes (5.8 million tons), of which 4.7 million tonnes 124 Indonesian biofuels. (5.2 million tons) was exported, mainly to Europe (primarily the 115 United Kingdom). Other major producers and exporters of While most efforts to promote biofuels in transport are led by 116 wood pellets included Canada and Latvia. policy and regulation, the Below 50 initiative, launched in Europe in 2016 under the auspices of the World Business Council for Liquid Biofuels Industry Sustainable Development, aims to promote demand for biofuels that offer a carbon reduction of more than 50% compared to fossil The production of liquid biofuels has been growing slowly and 125 The initiative brings together the entire supply chain from fuels. depends heavily on the policy and regulatory climate, which feedstock producers to users such as transport fleet operators. varies greatly by region. In Brazil, the RenovaBio initiative has By the end of 2017, more than 20 international companies had been a strong promoter of the country’s biofuels industry, while in 117 subscribed to the initiative, and it had expanded to hubs on four the United States the future of the national RFS remains unclear. 126 continents. In the EU, uncertainties continue around the future of biofuels between 2020 and 2030 under the Renewable Energy Directive, In regions outside of the main markets (North and South America, with the likelihood of a cap on conventional biofuels based on Europe, China and India), development of biofuels production feedstocks that also can be used as food, and an increasing is held back by the lack of effective supporting policies and 118 emphasis on advanced biofuels. In India and China, biofuels technical capacity; however, some promising signs of industry are being given more priority, with a medium-term emphasis on activity were apparent in 2017. In Nigeria, the state oil corporation 119 advanced biofuels. signed a memorandum of understanding with the Kebbi State Despite the policy uncertainty, US production of ethanol and Government to build an ethanol plant based on cassava and biodiesel continued to grow to serve domestic and export markets, sugarcane feedstocks, and to produce 84 million litres of ethanol 120 127 and ethanol exports reached a record high in 2017. Some In Zambia, Sunbird Bioenergy Africa launched a per year. investment in new capacity also occurred. For example, Poet programme to encourage growers to plant cassava to supply (United States) increased the production capacity of its Ohio- feedstock for an ethanol project that will provide 120 million litres based ethanol facility from 265 million litres to 568 million litres of ethanol per year (equivalent to 15% of Zambia’s petroleum (70 million gallons to 150 million gallons) per year; Cargill (United requirements), highlighting the long lead-time associated with States) was building a “state of the art” biodiesel plant in the state 128 In the need to establish a supply chain for biofuels projects. of Kansas; and World Energy (United States) and Biox (Canada) Indonesia, a waste-to-ethanol project is under way that will 121 commissioned a new biodiesel facility in Houston, Texas. process food waste into bio-products such as ethanol (2.3 million 129 And in Thailand, St1 (Finland) litres), animal feed and fertiliser. In Brazil, a USD 115 million corn ethanol facility opened in the announced its cooperation with Ubon Bio Ethanol (Thailand) to Mato Grosso region in August 2017, capable of producing some 122 130 227 million litres (60 million gallons) of ethanol per year. launch a pilot project to produce ethanol from cassava waste. 75

76 RENEWABLES 2018 GLOBAL STATUS REPORT 137 178 million litres (47 million gallons) per year. Worldwide efforts to demonstrate the production and use of Valero Energy Corporation and Darling Ingredients Inc. (both United States) advanced biofuels continued in 2017. These aim to respond to the policy requirement to produce fuels that demonstrate improved are expanding their Diamond Green Diesel production facility in Norco, Louisiana from 605 million litres to 1,040 million litres sustainability performance – including better life-cycle carbon (160 million gallons to 275 million gallons) of renewable diesel savings than some biofuels produced from sugar, starch and annually, and announced plans in 2017 to further increase oils, as well as fuels with less impact on land use (for example, 131 138 Advanced biofuels also can have capacity to 2,080 million litres (550 million gallons). from wastes and residues). properties enabling them to replace fossil fuels directly in transport The emerging cellulosic ethanol industry saw mixed progress in systems (“drop-in biofuels”), including in applications such as 2017, with large-scale production growing but remaining limited to aviation, or for blending in high proportions with conventional only a small number of facilities. The volume of cellulosic ethanol fuels. A number of different pathways to produce advanced that qualified under the US RFS increased by a factor greater biofuels are under development and include bio-based fuels in than 2.5 in 2017; however, production still reached only some the form of ethanol, butanol, diesel jet fuel, gasoline, methanol 139 Two commercial-scale flagship plants closed in 38 million litres. 132 and mixed higher alcohols from an array of feedstocks. 2017: after the merger of DuPont and Dow (both United States), The market for new biofuels in 2017 was led by HVO/HEFA, the plant producing ethanol from corn stover in the US state of followed by ethanol from cellulosic materials such as crop Nevada was mothballed, and the Chemtex plant in Crescentino, Italy was closed following the failure of the parent company residues, and by fuels from thermochemical processes including 140 133 gasification and pyrolysis. Gruppo Mossi Ghisolfi (Italy). Production of HVO/HEFA fuels (based on feedstocks including Elsewhere, production increased at a number of existing plants i used cooking oil, tall oil including Brazil’s Raizen plant, which was expected to double and others) continued to increase in 2017, its production to 14 million litres of cellulosic ethanol in 2017, mainly through increases in production ramped from existing 141 Poet-DSM (United States) and at the country’s Granbio plant. production capacity, and with growing emphasis on using non- 134 For example, Neste (Finland), which owns announced that the critical pre-treatment phase of its Liberty food feedstocks. plant in Emmetsburg, Iowa, which produces ethanol from three large-scale renewable HVO diesel production facilities in Singapore, the Netherlands and Finland, announced plans to both corn residues, was operating successfully, opening the way to 142 The integrated production of ethanol increase the capacity of its existing facilities to 3 million tonnes sustained production. from cellulosic residues such as corn kernels in conventional corn (3.7 billion litres) by 2020 by improving productivity at these ethanol plants in the United States is expanding. Five plants, with sites, as well as to add a further 1 million tonnes of capacity in 135 a total capacity of nearly 2 billion litres (500 million gallons) and And UPM (Finland), which produces HVO from tall Singapore. based on technology developed by Edeniq (United States), were oil at its Lappeenranta biorefinery, announced plans to carry out an 143 approved by the US EPA in 2017. environmental impact assessment as the first stage of developing a new Finnish plant that would use a wider range of biomass raw In Europe, Borregaard (Norway) produced some 20 million litres 136 materials to produce 500,000 tonnes of renewable diesel fuel. of cellulosic ethanol in 2017 – along with a range of other products 144 – at its biorefinery in Norway. A number of new plants also were The US Renewable Energy Group, which has 14 production sites in the United States and Germany, announced plans in announced in 2017, including an investment in a plant by Clariant 2017 to increase the capacity at its Geismar, Louisiana plant by (Switzerland) that will produce 50,000 tonnes of cellulosic i Tall oil is a mixture of compounds found in pine trees and is obtained as a byproduct of the pulp and paper industry. 76

77 03 155 trial period. ethanol in south-western Qantas signed a long-term supply contract with 145 Romania. Clariant also Agrisoma (France) to supply fuels based on carinata oil seed, and licensed its technology to carried out a trans-Pacific flight from Los Angeles to Melbourne 156 China Enviral (Slovak Republic), China’s Hainan using a 10% blend of carinata-based biofuels. which plans to build a Airlines also made a trans-Pacific flight from Beijing to Chicago ove rtook the United States 157 50,000 tonne per year using biofuel derived from waste cooking oil. in 2017 as the world's plant in the Slovak city of largest producer Interest in the use of biofuels in marine applications increased in 146 Leopoldov. of bioelectricity 2017, pushed by the short-term requirement to reduce sulphur India’s Ministry of emissions from ships in coastal regions, as well as by longer-term 158 Petroleum and Natural Several projects aim to demonstrate the use of carbon targets. MARKET AND INDUSTRY TRENDS Gas announced plans biofuels in the marine sector. For example, GoodFuels (Netherlands) to build at least 12 commercial-scale advanced biofuel plants collaborated with the Dutch Coast Guard to supply biofuels for – mainly to produce cellulosic ethanol from the large volumes use in its ships, and collaborated with Heineken and Nedcargo of plant residues in the country – in order to help reduce fossil (both Netherlands) to demonstrate the use of biofuels on inland fuel import dependency, reduce pollution from in-field burning of waterways, transporting beer from a brewery in Zouterwoude 147 159 crop residues, and improve energy security and independence. Following initiatives by the US Navy – the Great to Rotterdam. Plans are progressing to build these plants based on Indian and Green Fleet – the Australian navy has been trialling biofuels in its 160 international expertise. For example, Bharat Petroleum Company fleet (particularly to facilitate joint US/Australian operations). selected Praj Industries (both India), which opened a large-scale Biofuels also are being used increasingly as a fuel in rail transport. cellulosic ethanol plant in 2017, to build a 37 million litre per year In the Netherlands, Arriva (Netherlands) is supplying 18 new trains facility in Bargarh in the state of Odisha, using biomass feedstock 161 Indian fuelled with biodiesel that are being brought into service. 148 sourced from the local farming community. Railways is experimenting with the use of biodiesel, compressed 162 Commercialisation of thermal processes such as pyrolysis and biogas and ethanol on its networks. gasification also advanced in 2017. Enerkem (Canada) adapted its commercial-scale gasification plant in Edmonton, Alberta, which Gaseous Biomass Industry processes 300 tonnes per day of sorted municipal wastes, to Biogas (a mixture principally consisting of methane and carbon produce ethanol instead of methanol, and the fuel qualifies for use ) can be produced by the anaerobic digestion of a dioxide, CO 2 149 as cellulosic ethanol under the US RFS. Additional plants based range of biological materials including the organic fraction in on this technology are under development in the Netherlands, MSW, food wastes, sewage, animal manures, liquid industrial where Enerkam, along with Air Liquide (France), AkzoNobel effluents and crops grown specifically to be digested. Biogas also (Netherlands) and the Port Authority, agreed to provide initial is produced as waste decays in landfill sites (landfill gas) and can funding to develop a project in Rotterdam; and in China, where the be collected for fuel use, thereby reducing emissions of methane, Sinobioway Group (China) has provided an equity stake in a joint a potent greenhouse gas that can be a safety hazard as well. venture company that aims to develop the Chinese market for this 150 Biogas also can be upgraded to biomethane by removing the CO 2 technology. In addition, Ensyn (Canada) has been successfully and other gases, enabling its use more easily in transport and for providing fuels from its Ontario-based pyrolysis plant to US 151 injection into natural gas pipelines. Biomethane production has customers, qualifying under the US RFS2 programme. been growing, but different end-uses are favoured in different In Norway, a first-of-its-kind demonstration plant is being 163 For example, in the United States and Sweden countries. developed based on hydro liquefaction technology, which biomethane is produced mainly for transport applications, but subjects solid biomass to high temperatures and pressures. The in the United Kingdom it is used mostly as a pipeline gas. clean fuel company Steeper Energy (Denmark and Canada) will In the United States, biogas is produced mainly from landfill license its proprietary Hydrofaction technology to Silva Green 164 However, a growing trend gas for use in power generation. Fuel, a Norwegian-Swedish joint venture. With an investment of is to upgrade the gas to biomethane for use in transport, where USD 76.8 million, the plant will use wood wastes and produce it qualifies as an advanced biofuel. Although this sector grew a hydrocarbon product that can be converted to renewable 152 some 15% in 2017, this is a significant slowdown from the six- diesel or jet fuel. Licella (Australia) is in a joint venture with 165 fold increase between 2014 and 2016. the forestry company Canfor (Canada) to produce and upgrade bio-crude produced by a hydrothermal liquefaction process in Biogas production in Europe is focused mainly on the anaerobic the Canadian province of British Columbia, and has announced digestion of agricultural wastes (including animal manures) and, 153 plans to build a plant in Australia. increasingly, on the digestion of recovered food wastes (for 166 More than 500 example, in Sweden and the United Kingdom). Although the use of biofuels in aviation is seen as a long-term 167 However, progress in biomethane facilities now exist in Europe. priority, the quantity of biofuels used in aviation is still a very 154 some markets (such as the United Kingdom) has slowed because small fraction of total fuel use in the sector. In 2017, a number of of regulatory changes affecting tariffs available for electricity, heat airlines and airports made progress in using biofuels for long-haul and biomethane production. Biogas production also is seen as flights, securing appropriate fuels and making biofuels available an important tool to reduce corporate carbon footprints. For at key airports. Virgin Australia procured aviation fuels from Gevo example, the Swedish beer manufacturer Carlsberg converted its (United States), and Chicago’s O’Hare airport also used fuel from 168 Gevo to supply biofuel for eight airlines using the airport for a brewery in Falkenerg, Sweden to 100% biogas in 2017. 77

78 RENEWABLES 2018 GLOBAL STATUS REPORT 175 ii The option of producing biochar In India, in addition to 4.9 million small-scale biogas digesters alongside this technology. bioenergy production is also being investigated as a means to ( used for household energy production p see Distributed 176 sequester carbon. Renewables chapter) , biogas production increasingly is seen as a constructive way to deal with municipal and food wastes and In 2017, operations started at the Illinois Industrial CCS Project, owned agricultural residues. Capacity for large-scale biogas production and operated by Archer Daniels Midlands and the first large-scale 169 In a project in India increased to 300 MW by the end of 2017. project to combine carbon capture and storage with a bioenergy developed in Palava City, Mumbai in 2017, the gas produced from feedstock. The Decatur, Illinois project will capture 1 million tonnes of the digestion of MSW is cleaned and used for power generation, 177 CO annually from the distillation of corn into ethanol. will The CO 2 2 170 and the facility also produces bio-fertiliser. be compressed and dehydrated, then injected on-site for permanent 178 storage at a depth of some 2.1 kilometres. Although small-scale biogas digesters are being deployed around the world, the production and use of biogas at the medium and Also being studied is the feasibility of capturing and storing larger scales in other regions is not well developed. However, the CO produced at an existing municipal waste incinerator in 2 significant potential exists – for example, from agricultural residue, Oslo, Norway, where the waste heat produced is used for district i 179 residue from sugar ethanol production in manure and vinasse heating. More than 400,000 tonnes of CO could be captured 2 171 Brazil – and some larger-scale plants started operating in 2017. and stored in the offshore carbon storage facilities under 180 In Durazno, Uruguay the agricultural company EDL began development. expanding its digester plant to produce up to 8 MW of electricity A further possibility is to recycle the carbon captured from from cattle manure feedstock at a facility that produces dried bioenergy production via chemical or biological processes to 172 Kenya’s Olivado plant, which produces oil from avocados, milk. form fuels or chemicals, using hydrogen from sustainable low- is installing a biogas system that will reduce its waste streams carbon sources, such as from the electrolysis of water using and make the plant self-sufficient in energy, producing 1.5 GWh renewable electricity (bioenergy with carbon capture and use, 173 annually. or BECCU). These options do not have “negative emissions” because the CO is released when the produced fuels are 2 Bioenergy with Carbon Capture and Storage or Use 181 used. Although few large-scale projects exist that use CO 2 Many low-carbon scenarios depend on the capture and from bioenergy processes in this way, a number of examples storage of carbon dioxide produced when bioenergy is used to have emerged in Belgium, Germany, Iceland and India where 174 Removal from the produce heat, electricity or transport fuels. CO from non-bioenergy sources is being recovered and used to 2 182 is seen as having a double benefit that atmosphere of such CO 2 make hydrocarbon fuels. While such processes do not produce leads to “negative emissions”. Although interest in such options biofuels, the products also reduce carbon emissions and can is increasing, in the absence of strong policy drivers that might be an important way to demonstrate the technology that will be make such projects economic and socially acceptable, only a needed for BECCU projects and to improve the overall efficiency 183 with which biomass can be used. very limited number of large-scale projects are demonstrating i Vinasse is an organic residue left after distillation to produce ethanol. ii Biochar is defined here as charcoal produced intentionally from wood in order to sequester carbon. Biochar may be used as a soil conditioner. 78

79 03 development, commercial operations started at the first two GEOTHERMAL POWER AND HEAT of three 110 MW sections of the Sarulla plant. The plant is the iii 7 country’s first geothermal combined-cycle Indonesia also unit. GEOTHERMAL MARKETS placed into operation the fourth and last unit of the 220 MW Ulubelu plant, which by year’s end met 25% of electricity demand Geothermal resources provide electricity and thermal energy 8 in the Lampung region of southern Sumatra. Geothermal power services (process heat, space heating and cooling). Total useful 9 supplies about 5% of Indonesia’s electricity. i (or 170 TWh), with energy in 2017 was an estimated 613 PJ Turkey’s net additions were at least 243 MW, for a total of electricity and thermal output each providing approximately equal 10 1 1.1 GW. The country’s largest single installation ever was the However, estimates of thermal energy consumption (also shares. first unit of Kizildere III, commissioned in 2017 with a capacity of known as “direct use”) are somewhat uncertain due to lack of data. MARKET AND INDUSTRY TRENDS 11 99.5 MW. Upon completion in early 2018, the plant became Some geothermal plants produce both electricity and thermal 12 Turkey’s largest geothermal power plant (165 MW). The output for various heat applications. country’s last geothermal plant to come online in 2017 was the ii generating geothermal power of new An estimated 0.7 GW 13 iv 33 MW Melih binary-cycle plant. capacity came online in 2017, bringing the global total to an Turkey has developed most of its geothermal capacity in just five 2 Indonesia and Turkey both continued to lead estimated 12.8 GW. 14 years, with more than 800 MW added between 2013 and 2017. for new installations and accounted for three-quarters of the new Strong growth in the Turkish geothermal sector has been attributed 3 Other countries adding capacity (in capacity during the year. 15 to supporting policies enacted more than a decade ago. Turkey order of scale) were Chile, Iceland, Honduras, Mexico, the United 16 met 2.1% of its electricity demand in 2017 with geothermal power. 4 See Figure 20.) ( p States, Japan, Portugal and Hungary. At year’s end, Turkey had an additional 271 MW under construction 17 The countries with the largest amounts of geothermal power and a further 527 MW under development. generating capacity at the end of 2017 were the United States, Chile ranked third globally for new capacity installations during the Philippines, Indonesia, Turkey, New Zealand, Mexico, Italy, the year. The country’s 48 MW Cerro Pabellón is reportedly the 5 See Figure 21.) p ( Iceland, Kenya and Japan. first geothermal power plant commissioned in South America; it is Indonesia had another good year, adding about 275 MW of located in the Atacama Desert at a record (for geothermal facilities) 6 altitude of 4,500 metres above sea level. As is the case for several new capacity and ending 2017 with 1.8 GW. After decades of p See Integration chapter.) i ( This does not include the renewable final energy output of ground-source heat pumps. th th refer to thermal capacity. In this section, units MW and GW refer to electric power capacity, and MW and GW ii A geothermal combined-cycle unit uses a binary system to extract residual energy from the steam exiting the high-pressure flash turbines, maximising energy iii extraction and overall plant efficiency. In a binary plant, the geothermal fluid heats and vaporises a separate working fluid that has a lower boiling point than water; the fluid drives a turbine to iv generate electricity. Each fluid cycle is closed, and the geothermal fluid is re-injected into the heat reservoir. The binary cycle allows an effective and efficient extraction of heat for power generation from relatively low-temperature geothermal fluids. Organic Rankine Cycle (ORC) binary geothermal plants use an organic working fluid, and the Kalina Cycle uses a non-organic working fluid. In conventional geothermal power plants, geothermal steam is used directly to drive the turbine. Geothermal Power Capacity Global Additions, Share by Country, 2017 FIGURE 20. Chile 7% 39% Indonesia 6% Iceland 5% Honduras Remaining 4% Mexico 4 countries United States 3.4% 34% Japan 0.7% Turkey Portugal 0.6% Hungary 0.4% Source: See endnote 4 for this section. 79

80 RENEWABLES Mega GLOBAL STATUS REPORT FIGURE 21. Geothermal Power Capacity and Additions, Top 10 Countries and Rest of World, 2017 Megawatts + 24 2,500 2500 Added in 2017 2016 total 2,000 2000 + 275 1,500 1500 + 243 + 90 + 25 1,000 1000 + 45 + 5 500 500 0 0 United Japan Iceland Mexico New Indonesia Tu r k e y Rest of Italy Kenya Philippines States World Zealand Source: See endnote 5 for this section. 06)@ 9F) 98; "! >8 A89)K LF<@ G<10-) <*>5 >>8-6<*1 98 9F) M)@9 ,N, ;0M5<>,9<8*O 0*9-<)@ , <5,M5) 6,9, ,9 9F) 9<+) 8G projects completed in 2017, the plant’s two units utilise a binary by a favourable feed-in tariff and by exemption from environmental 27 cycle, where the geothermal fluid is reinjected into the reservoir in impact assessments for plants smaller than 7.5 MW. 18 a closed loop while a separate working fluid drives the turbines. The United States is the global leader for installed geothermal Two plants came online in Central America in 2017, including the power capacity, but expansion remains slow. One 24 MW unit – first geothermal plant to be built in Honduras. The realisation of the Tungsten Mountain plant in Nevada – came online, and two 28 the 35 MW Platanares facility was aided by 2007 legislation to Total capacity was around 2.5 GW 30 MW units were retired. net promote renewable electricity generation, which grants the plant at year’s end, and geothermal power generated about 16 TWh 19 29 a 10-year income tax exemption. during the year, accounting for 0.4% of US net generation. i unit at the Los Mexico saw the completion of another 25 MW net The Tungsten Mountain plant utilises a new turbine design Humeros complex, bringing the country’s total installed operational that allows the use of a single energy converter in place of two. 20 capacity to 916 MW. As of 2017, Mexico had 224 production wells This design reduces capital expenditure per unit of power and across five separate geothermal fields, which met 1.7% (5.9 TWh) is expected to curtail operating costs significantly, while also 21 30 of the country’s electricity needs during the year. The project also increasing both efficiency and unit availability. is notable for its innovative use of directional drilling to achieve In Iceland, the first (45 MW) of two stages of the 90 MW ii ; this was instrumental in the ultimate sufficient permeability Þeistareykir geothermal power plant came online during the year, 31 22 The fact that this was the only plant success of the project. with a second turbine expected to be completed in 2018. A total to come online in the United States, following a year with no of 18 production wells were drilled to supply enough steam for the 23 capacity additions, has been attributed in part to low natural equivalent of 100 MW of power capacity. Iceland derives over gas prices as well as to the perennial challenges of geothermal 27% of its electricity from geothermal sources, with some 710 MW development: long project lead-times, high development costs of geothermal power capacity, some of which provides thermal 32 24 and associated economic risk. co-generation for district water and space heating (see below). The Philippines is second only to the United States for total Japan saw the start of the 5 MW Takigami binary plant in 2017, 33 25 Much like geothermal power capacity in operation (1.9 GW). bringing total capacity to 527 MW. Despite its significant resource the United States, however, the country has not seen significant potential, development of geothermal energy in Japan has been geothermal expansion in recent years. No new capacity came tempered by concerns about safety and potential unintended online in 2017, but in early 2018 the country completed its first economic and environmental consequences, including its 26 new geothermal capacity since 2014, the 12 MW Maibarara-2 possible adverse effects on hot springs. The focus of geothermal 34 development is on relatively small projects, which are supported extension. In general, a power plant’s net capacity equals gross capacity less the plant’s own power requirements. In the case of geothermal plants, net capacity also i may reflect the effective power capability of the plant as determined by the current steam production of the field and running capacity, as opposed to the total nameplate capacity of its generator(s). ii A viable geothermal system requires a combination of three characteristics: sufficient heat, water and flow (the last made possible by relative permeability of the sub-surface rock). 80

81 03 Around the world, a During 2017, geothermal direct use capacity was added in several handful of other plants locations across Europe and in China. Developments in other Geothermal markets are less clear due to lack of consolidated data. European came into service in 2017. These include the countries completed 10 new or renovated geothermal district t use increased by direc 4 MW Pico Alto binary heating plants in 2017. France accounted for six of these; two were an estimated 1.4 GW th 49 completed in the Netherlands and one each in Italy and Romania. plant on the Portuguese of capacity in 2017 island of Terceira, in For decades, geothermal district systems in the Paris metropolitan the Azores, which area have utilised the heat of the Dogger aquifer, which lies at a meets 10% of electricity depth of about 2,000 metres. At least four district heat systems demand for the island’s in the area expanded their geothermal capabilities during 2017. MARKET AND INDUSTRY TRENDS 56,000 inhabitants, The 32-year-old network of Chevilly-L’Haÿ-Villejuif opened a new and Hungary’s first production plant that boosted the geothermal share of the system geothermal heat and power plant (Turawell), which combines 50 The communities of Dammarie-les-Lys and Trempley- to 70%. ) of 3 MW of power capacity with 7 megawatts-thermal (MW th en-France also added additional geothermal heat to existing 35 thermal output. district heat systems, and the City of Cachan replaced 34-year-old 51 The latter used an innovative process, Elsewhere, plans were in progress during 2017 to develop wells with two new bores. 52 additional capacity. Several volcanic islands in the Caribbean, drilling horizontally into the aquifer below the surface. struggling with some of the world’s highest electricity prices, Development of geothermal for heat also continued in China, are eager to displace costly fossil fuel imports with local including expansion in the Xiongan New Area (Hebei province), geothermal energy. In late 2017, the EU provided EUR 12 million which was said to have increased geothermal and other (USD 14.4 million) in grant funding to support geothermal 53 ii 2 . China’s central in 2017 renewable heating by 10 million m 36 Exploratory drilling on development in the Eastern Caribbean. government targets a significant increase in the sustainable 37 the island of Nevis was under way in late 2017. use of geothermal resources to reduce air pollution while also In China, the central government plans to increase the use of protecting water resources. Under the 13th Five-Year Plan, China 54 geothermal energy in cities to reduce local air pollution and aims to increase direct use of geothermal heat five-fold by 2020. 38 As of 2015 (latest data available), In late 2017, the government specified a target equivalent to greenhouse gas emissions. China had less than 30 MW of geothermal power capacity, mostly 70 million tonnes of coal by 2020, of which 40 million tonnes of in Tibet, but the country’s 13th Five-Year Plan for geothermal coal equivalent would be for heating purposes (and the remainder 55 39 energy calls for an additional 500 MW by 2020. presumably for electricity generation). Geothermal direct use Territories bordering the Arctic Circle have never been major – direct thermal extraction for heating and i – increased by an estimated 1.4 GW of capacity in 2017, sources of fresh vegetables, but in 2017 Iceland was finalising plans cooling th 40 Direct use capacity has . for an estimated global total of 25 GW to start the export of produce to continental Europe, grown with th 56 the aid of heat and lighting sourced from geothermal energy. grown by an annual average of 6% in recent years, while direct 41 heat consumption has grown by an annual average of 3.5%. The difference is explained in part by relatively rapid growth GEOTHERMAL INDUSTRY in geothermal space heating, which exhibits below-average The geothermal industry in 2017 remained constrained by various 42 capacity utilisation. sector-specific challenges, such as long project lead-times and Space heating (including via district heat networks) is one of the high resource risk, but technology innovation continued and largest and fastest growing sectors for direct use of geothermal prompted optimism about future prospects. The industry focused heat, although swimming pools and other public baths may still on advancing technologies to reduce development risk and to 43 These two broad be the largest single-application category. cost-effectively tap geothermal resources for heat and power in markets – space heating and pools – command around 80% more locations, as well as to reduce the potential environmental 44 The remaining of both direct use capacity and consumption. consequences of geothermal energy production. 20% is for applications that include domestic hot water supply, Among the various renewable energy technologies, geothermal greenhouse heating, industrial process heat, aquaculture, snow energy is not unique in having to contend with high upfront 45 melting and agricultural drying. project costs. However, the inherent high risk of geothermal 46 China is the most significant user of direct geothermal heat. exploration and project development, and the lack of adequate Other top users of direct geothermal heat (in order of scale) risk mitigation, continues to be a focus of attention for the are Turkey, Iceland, Japan, Hungary, the United States and New 57 The uncertainty about the geothermal resource industry. Zealand, which, together with China, accounted for approximately in any given location often stands in the way of mobilising 47 The ranking of top 76% of direct geothermal use in 2015. enough capital, especially private capital, to fund the expensive countries for capacity differs slightly (and includes India and Italy) exploratory drilling that must occur at the outset to establish the 48 due to differences in applications and capacity utilisation. size, temperature and other parameters that define the viability 58 of a resource. i Direct use refers here to deep geothermal resources, irrespective of scale, as distinct from shallow geothermal resource utilisation, specifically ground-source See Heat Pumps section in Integration chapter.) p heat pumps. ( The source for the expansion in renewable heating in China expresses the change in terms of floor area of heated space rather than units of energy. ii 81

82 RENEWABLES 2018 GLOBAL STATUS REPORT New methods of resource exploration and extraction are helping Iceland’s CarbFix project has made headway in tackling CO 2 to overcome some of the economic and technical challenges that emissions, demonstrating that more than 95% of injected can be bound as carbonate minerals within a period of two CO otherwise stand in the way of further development. Continuing 2 69 Building on these advances, years, depending on local geology. technology innovation, particularly in the United States and Swiss company Climeworks partnered with the Icelandic Europe, has raised the prospect of exploration and development geothermal company Reykjavik Energy to combine direct-air of geothermal resources that previously were out of reach, even sequestration technology with the geological CO capture of CO in areas with an average or low geothermal gradient, by reaching 2 2 59 used in the CarbFix project in Iceland. The aim is to provide deeper into the earth and by better means of heat extraction. emissions, carbon removal capabilities to offset unavoidable CO 2 Work also continued in 2017 on the development of resource 70 irrespective of their source. mapping tools to reduce the cost and economic risk inherent to Research continues to show promise for sequestration of H S the pursuit of sufficient temperature and water flow to generate 2 i S injected in basaltic rock solidifies . The US government committed USD 5 million to as well. Up to 62% of H electricity 2 (mineralises), provided that the rate of injection and solution advance the development of a mapping tool that aims to better 60 predict the presence of viable geothermal resources. acidity and temperature remain within ideal parameters. S reinjection and sequestration in geothermal systems is H 2 In the United States, what is referred to as deep direct-use considered a technically feasible option that is more economical (DDU) is an emerging research area that envisions the use of 71 than alternatives commonly used in the industry. relatively low-temperature geothermal heat, attained at great There also is growing interest in producing geothermal energy depth, to meet moderate thermal demand in regions that are not 61 In 2017, the US from abandoned oil and gas wells or from abandoned mines rich in conventional hydrothermal resources. Department of Energy provided funding for six DDU research to mitigate incremental drilling costs, which are a significant 72 In the United projects to conduct feasibility studies of low-temperature deep- portion of the total cost of any geothermal project. Kingdom, researchers investigated in 2017 the possibility of well geothermal systems, highlighting DDU as a potentially efficient heating homes with flood waters found in abandoned coal mines; and cost-effective alternative to high-temperature electricity 62 while not a new idea, it has potential applications in regions with generation and to fuel combustion for space heating and cooling. 73 In a long history of mining operations near cities and towns. US government-funded research also continued to focus on oil-rich Alberta, Canada, a study was launched during the year to enhanced (or engineered) geothermal systems (EGS) with ascertain the economic feasibility of tapping the thermal energy multiple national labs and universities engaged in a collaborative found in oil wells for space heating and to spur new industry, effort to advance the technology. The ultimate objective is 74 inspired by examples in the United States. to make geothermal energy utilisation more geographically Geothermal brine can contain relatively high penetrations of rare diverse, thereby allowing the resource to be a major contributor 63 earth minerals and metals, and the recovery of these materials EGS involves fracturing the sub- to domestic energy supply. 75 With US surface rock formations to enhance permeability and flow to form could add value to geothermal resource extraction. 64 state and federal funding, SRI International (United States) is a geothermal reservoir that is productive enough to be viable. developing technology to recover the valuable metal lithium from In Europe, ongoing technological advancement in deep 76 In geothermal brines, with the rate of recovery exceeding 90%. geothermal extraction is believed to offer great potential for 2017, some companies in Canada announced the development district heating applications as well as for power production of a filtration method to separate metals and minerals, including because the region’s increasingly efficient building stock can be lithium, from geothermal brine. A reported advantage of this low- heated at relatively low supply temperatures (40° C or less for energy technology is that it does not require a reduction in brine 65 In addition, low-temperature (binary) new efficient buildings). 77 temperature to work effectively. conversion technologies further improve the viability of (low- Some partnerships and mergers took place in 2017 among temperature) deep geothermal sources for combined heat and 66 geothermal energy technology- and project developers. Ormat electricity production in more locations. Technologies (United States) acquired geothermal plant operator Emissions mitigation technologies also continued to receive and developer U.S. Geothermal Inc., along with its 45 MW of ) and hydrogen sulphide attention in 2017. Carbon dioxide (CO 2 capacity in the western United States, as well as Viridity Energy ii S) are unwelcome by-products of conventional open-loop (H 2 Inc., a demand-response, energy management and storage emission rates from geothermal energy extraction. While CO 2 78 Technology providers Atlas Copco (Sweden) and operator. geothermal plants are generally small compared to fossil fuel Egesim (Turkish subsidiary of Siemens) announced a partnership plants, in some instances they can be significant and even 79 to provide joint geothermal power plant solutions in Turkey. 67 The recognition of very exceed those of coal-fired power plants. emissions from Turkey’s geothermal plants has significant CO 2 prompted efforts to assess technical challenges and opportunities 68 related to the capture and reinjection of those emissions. i A hydrothermal resource must offer a combination of sufficient heat and water flow to generate enough steam to be economically viable for electricity generation. 2 ii Stand-alone closed-loop binary-cycle power plants can avoid significant venting of CO and other pollutants from the geothermal fluid. Conventional open-loop power plants vent gases to the atmosphere. 82

83 03 by 1.8 GW to 28.5 GW, HYDROPOWER Global additions to and a further 39 GW was under construction 11 HYDROPOWER MARKETS hydropower at year’s end. China’s development plans Global additions to hydropower capacity in 2017 were an estimated capacity in 2017 were reflect the potential value 1 i . While 19 GW, bringing total capacity to approximately 1,114 GW an estimated 19 GW of pumped storage in significant, this is the smallest annual increment seen over the last alleviating the country’s 2 The leading countries for cumulative capacity – China, five years. curtailment of wind power Brazil, Canada, the United States, the Russian Federation, India 12 and solar PV generation. and Norway – remained the same as in the past several years, and MARKET AND INDUSTRY TRENDS together they represented about 63% of installed capacity at year’s Hydropower development 3 Generation from ) See Figure 22 and Reference Table R17. ( p end. remained relatively strong across the rest of Asia as well. Vietnam ii , hydropower, which varies annually with hydrological conditions completed the 260 MW Trung Son plant, which is intended to was an estimated 4,185 TWh worldwide in 2017, up about 2% provide flood protection and irrigation needs as well as to generate 4 Global pumped storage capacity (which is counted over 2016. electricity to promote local economic development. The project 5 separately) increased about 2% in 2017. was designed to minimise social and environmental impacts and is Vietnam’s first large-scale hydropower project to receive funding China remained the perennial leader in commissioning 13 from the World Bank. new hydropower capacity, accounting for nearly 40% of new installations in 2017, and was followed by Brazil, India, Angola and India brought into commercial operation 1.9 GW of new 14 Turkey. Other countries that added significant capacity included hydropower capacity in 2017, for a year-end total of 44.6 GW. 6 See Figure 23.) ( p Iran, Vietnam, the Russian Federation and Sudan. The bulk of the additional capacity came from a 1.2 GW project China also led for installations of pumped storage capability during on the Teesta River, which was completed several years behind 7 15 the year, followed by Switzerland and Portugal. schedule. Due to additional delays in completing associated transmission infrastructure, the plant’s output was severely China added 7.3 GW of hydropower capacity in 2017 (excluding 16 restricted in its first year of operation. 8 The projects pumped storage), for a year-end total of 312.7 GW. completed in 2017 represented investment of CNY 61.8 billion Nearly half (6.3 GW) of all large-scale hydropower projects 17 (USD 9.8 billion), which was virtually identical to the previous in India were facing delays or other challenges as of early 2017. 9 Hydro power generation during the year, at 1,190 TWh, year. Generation was 136 TWh for the year, an increase of 5.6% 18 10 over 2016. Pumped storage capacity grew was up marginally from 2016. i Where possible, all capacity numbers exclude pure pumped storage capacity unless otherwise specified. Pure pumped storage plants are not energy sources but means of energy storage. As such, they involve conversion losses and are powered by renewable and/or non-renewable electricity. Pumped storage plays an important role in balancing grid power and in the integration of variable renewable energy resources. Hydropower output also may vary with other local priorities, such as use of storage capacity (reservoirs) to balance variable renewable electricity ii generation and for managing water supply, as well as market conditions, such as the price of competing sources of energy. Hydropower Global Capacity, Shares of Top 10 Countries and Rest of World, 2017 FIGURE 22. 28% 9% China Brazil 7% Next 6 countries Canada 7% Russian Federation 4.3% United States 31% India 4.0% Rest of World Norway 2.7% 17% Turkey 2.5% Japan 2.0% France 1.7% Source: See endnote 3 for this section. 83

84 RENEWABLES Giga GLOBAL STATUS REPORT FIGURE 23. Hydropower Capacity and Additions, Top 10 Countries for Capacity Added, 2017 Gigawatts +3.4 350 +7.3 300 60 Added in 2017 250 +0.4 50 50 20 16 total +1.9 200 40 150 +0.6 30 +3.4 100 20 +0.4 +0.5 50 10 +1.4 +0.3 +0.3 0 0 India Angola Côte Turkey Iran Vietnam Russian Sudan Brazil China Federation d’Ivoire Source: See endnote 6 for this section. <5,M5) 6,9, ,9 9F) 9<+) 8G ;0M5<>,9<8*O A89)K LF<@ G<10-) <*>5 06)@ 9F) 98; "! >8 0*9-<)@ , >>8-6<*1 98 9F) M)@9 ,N, ii turbines Pakistan’s new 147 MW Patrind hydropower plant takes advantage completed in early 2017, with the last five of 50 bulb 27 Construction of the 11.2 GW Belo Monte of the natural difference in elevation between the Kunhar and placed in service. plant continued to advance (4.5 GW completed at year-end), Jhelum rivers by connecting them with a 2.2 kilometre tunnel, with four of the larger 611 MW turbines along with two smaller some 8 kilometres above their confluence. The high natural 28 The project has faced setbacks units installed during the year. sediment load from the Himalayan headwaters is expected to due to its alleged impacts on local communities and, in 2017, to a pose challenges to the project and will be managed with a bypass revocation of its operating licence, pending action to address the tunnel. The project, owned by interests in the Republic of Korea, 29 Nonetheless, developer’s failure to satisfy project requirements. received certified emissions reduction credits under the Clean 30 it is expected that Belo Monte will be completed by 2019. Development Mechanism (CDM), in line with Korean efforts to 19 Pakistan also made progress on promote CDM projects abroad. Following some improvement in 2016, Brazil’s hydropower output some smaller installations, such as the 7.6 MW Marala plant and was down 3.8% in 2017, to 401 TWh (accounting for 70% of total 20 the 2.6 MW Machai project. generation), due to drought in parts of the country and to low 31 Farther to the west, the 450 MW Rudbar project was completed in The decline in output prompted a national reservoir levels. surcharge on electricity rates late in the year and an increase in Iran, in line with national efforts to reduce electricity generation from 32 electricity imports from neighbouring countries. fossil fuels and to reduce harmful emissions. The project added to 21 It the country’s existing hydropower capacity of more than 10 GW. Other developments in South America included the completion was funded largely by Chinese interests that expressed a desire to of Bolivia’s largest hydropower plant to date: the multipurpose intensify such industrial co-operation with Iran in accordance with 33 The plant represents 7% of the 120 MW Misicuni plant. 22 Iran also commissioned the first China’s “Belt and Road” initiative. country’s power capacity, and its reservoir will serve to improve 23 of three 70 MW units at the Darian plant. 34 Peru expanded its hydropower local municipal water supply. Turkey expanded its hydropower capacity by 0.6 GW in 2017, portfolio with three run-of-river projects of less than 20 MW each, 24 Even so, hydropower bringing total installed capacity to 27.3 GW. following the completion of two large projects in 2016 (totalling 35 Colombia completed eight units of less than generation in Turkey contracted 12.7% during 2017, to 58.5 TWh, about 1 GW). 36 25 20 MW each, for a total of 11.7 GW in operation. due to severe drought. Brazil remains the largest hydropower producer in South In Africa, Angola made significant progress on two large America and ranked second globally for new installations in hydropower plants. The Laúca project saw two of its 334 MW turbines come online, with the remainder of the 2.1 GW plant 2017. Approximately 3.4 GW was added for a year-end total of 26 i 37 plant was In addition, the recently The 3.6 GW Santo Antônio run-of-river expected to be completed in 2018. 100.3 GW. i “Run-of-river” projects generate electricity at the rate of natural (and variable) river flows, while projects incorporating reservoirs store water to compensate for variability in flow, to increase “head” (difference in elevation) for greater power, and possibly for reasons such as flood control, irrigation, general water supply and drought mitigation. Some run-of-river projects do incorporate dams that provide some minimal storage capacity and flexibility of operation but that may be insufficient to provide flood control and some other water management services. ii A bulb turbine is a sealed unit that encapsulates both the turbine and generator and is placed directly in the water stream. See US Department of Energy, “Types of hydropower turbines”, https://www.energy.gov/eere/water/types-hydropower-turbines, viewed April 2018. 84

85 03 38 renovated Camcambe plant was expanded by 700 MW. These facilities (25 MW and 81 MW), which comprise the Upper Lillooet 52 projects are part of a concerted effort to increase electrification to River Hydro Project. 39 Only 35% of the Angolan population had access to 60% by 2025. The Russian Federation has long been among the top countries 40 electricity in 2016, and many people relied on diesel generators. for hydropower capacity, and has seen a net five-year growth in 53 During 2017, the country’s As part of an effort to double its generating capacity by 2020 installed capacity of 5.4% (2.5 GW). (from the current capacity of about 2 GW), Côte d’Ivoire in 2017 stated hydropower capacity increased by 364 MW for a total 54 41 Most of that added capacity was tied to the inaugurated its largest hydropower project, the 275 MW Soubré. of 48.4 GW. inauguration of the 320 MW Nizhne-Bureyskaya hydropower The country plans to improve its electrification rate (63% in 2016) plant in the Russian Far East, where a majority of the country’s while increasing the share of hydropower and other renewables 42 in its electricity mix, which is dominated by natural gas. projects under construction are located. Following a flood in the MARKET AND INDUSTRY TRENDS Amur River basin in 2013, the design of the plant was modified for Sudan inaugurated its 320 MW Upper Atbara and Setit Dam 55 Overall hydropower generation (179 TWh) improved flood control. project in 2017, increasing the country’s installed capacity by 56 However, in the Russian Federation was stable relative to 2016. 43 The project is linked to an agreement that allows Saudi 13%. reservoir levels declined in some regions, such as the Far East, 44 Meanwhile, Arabia to cultivate land in the vicinity of the dams. 57 resulting in increased utilisation of thermal power plants in 2017. thousands of displaced local families have complained about Energy storage capability of hydropower facilities has long been the government’s lack of commitment to compensate them for 45 a critical component of modern energy infrastructure, supporting farmland lost to the project. reliability and efficiency of energy systems. Hydropower Tensions in the region persisted between Ethiopia and its reservoirs can (passively) store energy by reducing output when downstream neighbours Sudan and Egypt over the feared other sources are plentiful, which allows natural flows to raise impacts of Ethiopia’s Grand Renaissance Dam (6 GW) on water the energy potential in the reservoir, thereby achieving effective 46 The dam for the project, which was 60% flows in the Nile. storage. Conversely, pumped storage can directly absorb surplus complete and ready to start storing water as of early 2018, has 58 power off the grid. raised concerns about restricted sediment flow, which could 47 Growing penetration of variable renewable energy (VRE) is potentially exacerbate relative sea-level rise in the Nile delta. 59 increasing interest in additional electricity storage capacity. The United States continued to rank third globally for installed Pumped storage hydropower is the dominant source of large- hydropower capacity, but recent expansion has been relatively scale energy storage, accounting for an estimated 96% of global modest, with a net five-year growth of 1.7% (1.3 GW) through 60 See Integration chapter.) p Global ( energy storage capacity. 48 The country added a net of 145 MW in 2017, for a year-end 2017. pumped storage capacity rose by more than 3 GW in 2017, for 49 Following years of suppressed output due to total of 80 GW. 61 i New capacity was . a year-end total of an estimated 153 GW drought in the southwestern United States, generation improved 62 installed in China, Portugal and Switzerland. for the second consecutive year, rising 12% relative to 2016 to 50 Improvement was noted in all parts of the country, Two large pumped storage plants were completed in China. The 300 TWh. 51 To the north, Canada but particularly in the state of California. five remaining reversible turbine generators of the Liyang facility saw the completion in British Columbia of two run-of-river were operational by the end of 2017 (one unit came online in i This total may include some “mixed” plants that incorporate pumping capability alongside net incremental generation from natural inflows (open loop) and, as such, are counted as hydropower capacity. The total global pumping capability in 2017, including mixed plants, may be as high as 164 GW, with pure pumped storage portion of that total being 119 GW, from International Renewable Energy Agency, personal communication with REN21, April 2018. 85

86 RENEWABLES 2018 GLOBAL STATUS REPORT 63 China also 2016), for a total of 1.5 GW of pumping capability. HYDROPOWER INDUSTRY completed the first 300 MW of a 1.2 GW storage plant in Shenzen Among the priorities of the hydropower industry in 2017 were City, the country’s first large-scale pumped storage facility to be continued advances towards more sustainable development of 64 built within an urban environment. hydropower resources, and ongoing modernisation efforts and In Europe, three (mixed) pumped storage plants entered digitalisation of existing and new facilities. service; each was an open-loop system that combines pumping The hydropower industry and the World Bank Group (a historically capability with conventional hydropower generation from natural significant funder of hydropower projects in developing countries) flows. The Veytaux hydropower plant in Switzerland, originally affirmed their commitment to the responsible development built in 1971, saw its capacity double in 2017 with the addition of 70 The World of hydropower projects, both large and small. two 120 MW generators. The expanded plant can pump water Bank noted the potential for hydropower to provide impressive from Lake Geneva to the Hongrin reservoir – 880 metres higher development benefits if implemented in a socially, financially 65 in altitude – at a capacity of 420 MW. 71 The World Bank Group’s and environmentally sustainable way. Portugal’s 780 MW Frades II and 263 MW Foz Tua pumped International Finance Corporation (IFC) declared that the 66 The two variable- storage plants both entered service in 2017. integration of environmental and social risks at the early stages speed 390 MW pump turbines of Frades II are the largest of their of project planning is imperative for sustainability and allows for 72 kind in Europe. They can respond faster to changing demands of broad economic benefits beyond energy generation alone. the grid than can conventional turbines with fixed speeds, and Climate change resilience also has emerged as a key 67 Many projects in Europe are more stable against voltage drops. consideration in project assessments at the World Bank. In are incorporating variable-speed turbines for flexibility and wider 2017, the Bank set out to draft guidelines (to be finalised in 2019) operating range, particularly to accommodate rising penetration that would be designed to ensure that both existing and future 68 A severe drought in Portugal during 2017 underscored of VRE. 73 These hydropower projects are resilient to climate-related risks. the importance of pumped storage and hydropower reservoirs risks include physical, operational and economic threats to the for secure energy supply and stable electricity prices, as well as viability of hydropower infrastructure caused by dramatic shifts for adequacy of water supply. Subsequently, Portugal began to or extreme variability in hydrological conditions, as well as related consider interconnecting its dam infrastructure and increasing 74 social and environmental risks. 69 the storage capacity of existing dams. In 2017, the IFC worked with the governments of Myanmar and Lao PDR to integrate strategic environmental and social assessments into country-wide evaluations of water resources 75 Both development, prioritising broad stakeholder engagement. countries, along with Cambodia, China, Thailand and Vietnam, share the riches of the Mekong River, where large hydropower projects have altered river flows significantly, raising concerns about associated impacts on aquatic ecosystems, agriculture 76 and fisheries in downstream territories. The Hydropower Sustainability Assessment Protocol, introduced in 2011, has gained prominence as a global standard for evaluating hydropower projects from inception to construction and operation. In 2017, three project assessments were published 77 One under the Protocol, all for projects implemented in Europe. of these was an ex-post evaluation of the 690 MW Kárahnúkar project in Iceland. Completed in 2007, it is the country’s largest The hydropower and most controversial power project, in part because of industry focused on wilderness areas lost due to land inundation by several reservoirs modernisation 78 The plant was found to meet and to a change in river flows. 79 and digitalisation standards of best practice across most of the topics assessed. of ex isting and In late 2017, Sustainable Energy for All (SEforALL) and the new facilities International Hydropower Association (IHA) signed an agreement to consult on the concept of a Hydropower Preparation Facility, which would aid national governments in prioritising potential hydropower projects according to their assessed sustainability, 80 In before putting them out to tender to the private sector. addition to identifying the most viable projects in the context of sustainability and local needs, SEforALL and the IHA expect that such preliminary screening may improve the prospects for project funding by reducing the high upfront costs and risks associated 81 with early-stage preparations of hydropower projects. 86

87 03 MARKET AND INDUSTRY TRENDS Many hydropower facilities around the world are decades old, to refurbish plant components and on how to optimise specific 86 and some have been around – in some form – for over a century. configurations for efficient operation. Modernisation and rehabilitation of existing plants is a significant i of large (>50 MW) hydropower projects Total asset finance part of industry operations and serves to extend plant life, to in 2017 is estimated to have been USD 45 billion, and another increase maintenance intervals and reduce associated costs 87 This is about double the USD 3 billion for small projects. and downtime, and to improve reliability. Modernisation also can 88 Most of the 2017 financing asset finance reported for 2016. increase a plant’s efficiency, power output, flexibility within the (USD 28 billion) is represented by a single project: the 16 GW energy system, ability to provide grid support, and resilience to 89 Baihetan project in China, to be completed by 2022. 82 climate change. GE’s renewable energy segment continued to show growing Digitalisation of hydropower facilities is one aspect of revenues in 2017, due in part to higher hydropower-related sales, modernisation efforts on existing plants as well as being a feature but hydropower still comprised only one-tenth of the revenues of new construction. ( p See Digitalisation sidebar in Integration 90 Andritz Hydro that the company generated from wind power. chapter.) This involves the implementation of advanced reported that the market environment continued to be difficult, simulation, monitoring and control technologies that allow plant and placed the bulk of the blame on low electricity prices and low operators to observe and respond to all aspects of plant operating 91 The company noted very moderate energy prices in general. conditions in a more timely and effective manner. The objective investment activity among power companies that own and is improved efficiency of operations and maintenance, greater operate hydropower facilities, particularly for plant upgrades, plant reliability, and more flexible integration with the operations with a continued decline in new orders (down 12%) and sales 83 of other generating facilities, including VRE. 92 (down 10%) for 2017. Some of the major hydropower technology leaders continued to Voith Hydro saw fewer contracts awarded than expected in 2017; expand their capabilities in digitalisation during 2017. For example, sales remained stable (down 1%) relative to 2016, but new orders Voith Hydro (Germany) introduced a virtual (or “augmented”) 93 The company anticipates a positive impact on dropped by 15%. reality application to remotely visualise and analyse plant orders from growing demand for pumped storage, highlighting conditions, which in turn allows for an optimised repair and China in particular, where several pumped storage facilities were 84 GE (United States) has used computer-generated service plan. 94 in the pipeline by late 2017. digital simulations of plant components along with actual measurements to identify weaknesses, with the ultimate aim 85 of providing real-time recommendations on corrective action. Andritz (Austria) offers a digital solution for enhancing operation and maintenance of hydropower plants. The system has been useful in making well-informed decisions on whether and when Defined by capturing the whole value of a project at the moment of final investment decision. i 87

88 RENEWABLES 2018 GLOBAL STATUS REPORT OCEAN ENERGY INDUSTRY OCEAN ENERGY Optimism prevailed in the industry in 2017, particularly in Europe, where some technologies advanced enough to be on the brink OCEAN ENERGY MARKETS of commercialisation. The industry started constructing its first i remains a largely untapped renewable energy Ocean energy manufacturing plants, promising greater production scale and 1 Of the source, despite decades of development efforts. 14 cost reductions. approximately 529 MW of operating capacity at the end of 2017, By one count, over 90 tidal energy technology developers around 2 more than 90% was represented by two tidal barrage facilities. the world were advancing various technologies during 2017, Ocean energy technologies deployed in open waters (excluding 15 with about half of them focusing on horizontal-axis turbines. tidal barrage) had a good year, as both tidal stream and wave Meanwhile, well over 200 companies were developing wave energy deployments saw new capacity come online, much of iv energy converters of various types, with point-absorber devices ii it launched in the waters of Scotland. The year ended with net 16 being the most common approach. capacity additions of at least 4 MW, for a year-end total of 17 MW 3 of tidal stream and 8 MW of wave energy capacity. Scotland continued to be the centre of tidal energy developments in 2017. Scotland’s MeyGen tidal stream energy project completed Aside from means of energy conversion (tidal, wave, etc.), ocean the initial leg of its first phase, with all four 1.5 MW horizontal-axis energy technologies can be classified by their general development 17 turbines delivering power to the grid by early 2017. By late in the iii , stage. Tidal range facilities, such as Sihwa and La Rance year, the project had fed 2.6 GWh of electricity to the grid and use relatively mature and well-established in-stream turbine 18 was close to entering its planned 25-year operational phase. As technologies that also are used in run-of-river hydropower projects. of early 2018, MeyGen’s developers had received full consent to See Hydropower section in this chapter.) The United Kingdom’s p ( expand the project up to 86 MW (the offshore lease on the site proposed 320 MW Swansea Bay tidal barrage project received a permits up to 398 MW), with installation expected to continue favourable independent review in early 2017, but concerns have 19 into 2019. been raised about its cost and potential ecological impact, and it 4 continued to await government approval by year’s end. Also in Scotland, Nova Innovation (United Kingdom) installed in Shetland’s Bluemull Sound a third 100 kilowatt (kW) direct- Other open-water technologies, such as tidal stream and drive turbine in what the company claimed was the world’s first wave energy converters, are generally in an earlier stage of 5 grid-connected tidal array (the first two turbines were launched Tidal stream development, with various prototypes deployed. 20 in 2016). Nova Innovation led a group of industrial, academic technologies are probably closest to technological maturity and research organisations in securing EU funding in support and have shown a significant convergence around the use of of ocean energy technology, for a total of EUR 19.3 million horizontal-axis turbines, combined with a variety of mooring 21 6 (USD 23.1 million). Some of the funds will support expansion The first tidal turbine arrays (a cluster of multiple techniques. 7 of the Bluemull Sound array to six turbines, with the expectation interconnected turbines) were being deployed in 2017. that it will provide enough insight into operational performance Conversely, wave energy technology development shows very to reduce the costs of tidal energy and boost the confidence of little technological convergence, due in part to the diversity of 22 potential investors. the wave resource and the complexity of extracting energy 8 Another tidal energy developer to receive EU support in 2017 was Wave energy converter demonstration projects from waves. 9 Scotrenewables Tidal Power (United Kingdom). The company’s Developers of ocean are mostly in the pre-commercial stage. 2 MW SR2000 device, first installed in 2016 at the European thermal energy conversion and salinity gradient technologies are Marine Energy Centre (EMEC) in Orkney, Scotland, operated at full also far from commercial deployment, having launched only a 23 10 The unit supplied power as it underwent a test programme in 2017. few pilot projects. power to the grid in high-sea conditions, providing the equivalent Europe saw significant deployment activity for ocean energy of 7% of the electricity demand of the Orkney Islands (more than devices in 2017, and notable developments were found around 24 1.2 GWh by the end of the year). The SR2000 incorporates two 11 However, the development of ocean energy has been the world. 1 MW horizontal-axis turbines (each with a 16-metre rotor diameter) slower than expected. Markets for these nascent technologies 25 that are mounted on a floating hull platform. are still driven predominantly by government support, and In Cherbourg, France, Naval Energies started building a facility effective international co-operation has played an important 12 to manufacture tidal turbines, with a planned production Challenges to commercial success have included financing role. capacity of 25 units per year. The plant, which will produce obstacles in an industry characterised by relatively high risk 2 MW open-centre turbines by OpenHydro (a subsidiary of Naval and high upfront costs and the need for improved planning, 13 Energies, previously DCNS Energies) in partnership with EDF consenting and licensing procedures. i Ocean energy refers to any energy harnessed from the ocean by means of ocean waves, tidal range (rise and fall), tidal streams, ocean (permanent) currents, temperature gradients (ocean thermal energy conversion) and salinity gradients. The definition of ocean energy used in this report does not include offshore wind power or marine biomass energy. ii Each year, various tidal and wave energy projects under development undergo removals and redeployments. iii These are the 254 MW Sihwa plant in the Republic of Korea (completed in 2011) and the 240 MW La Rance tidal power station in France (built in 1966). iv Point-absorbers are wave energy converters that couple a floating element to a sea-floor base, converting the wave-driven motion of the floating top relative to the base into electricity, from European Marine Energy Centre Ltd., see endnote 15. 88

89 03 Energies Nouvelles of France, is expected to mark the start of key components, such an industrial phase in the tidal energy sector and to launch the as novel wave energy Government 26 Seven of those turbines commercialisation of the technology. converters, power take- ii were scheduled for deployment at the Normandy Hydro Project off devices (PTOs) , support 27 at Raz Blanchard, starting in 2018. structural materials and critical to remains manufacturing processes, Also in France, tidal turbine developer Guinard Energies carried ongoing development 39 and control systems. out a demonstration of its 3.5 kW P66 turbine. The small design of in the ocean energy the turbine aims to simplify installation and maintenance in isolated The United States has industry 28 areas, including hybrid applications with solar PV and batteries. focused its support for ocean energy in the Wave energy also advanced in 2017, with pilot and demonstration MARKET AND INDUSTRY TRENDS area of wave energy projects found in the waters of several countries, including China, converters. In 2017, the US Department of Energy (DOE), in Spain and Sweden. co-operation with Oregon State University, worked on finalising In China, the 100 kW Sharp Eagle wave energy demonstration plans for the Pacific Marine Energy Center South Energy Test Site project was redeployed in 2017, with upgrades to better serve the to be completed by 2021, with space to accommodate 20 grid- 29 Earlier tests had indicated wave power needs of remote islands. 40 connected wave energy converters. The DOE also announced energy conversion efficiency above 20%, yielding as much as an additional USD 12 million in 2017 to advance wave energy, 30 1.8 MWh per day. allocating support to four projects including two that will test and validate wave energy converters in open waters and two that will A new air turbine by Kymaner (Portugal) underwent tests at the 41 address early-stage development challenges. Mutriku wave power plant in the Bay of Biscay, Spain. The device harnesses wave-driven compressed air, a technology known One of the challenges for ocean energy developers is to devise 31 Nearby, Oceantec (Spain) as an oscillating water column. efficient and cost-effective PTO devices that can cope with the celebrated the first full year of testing on its MARMOK-A-5 unique demands of ocean energy. With the aim of eliminating the 30 kW floating wave energy converter at the Biscay Marine need for hydraulic components in PTOs, DOE-funded research Energy Platform, where it demonstrated its survivability in winter yielded a prototype magnetically geared generator that could 32 seas and 85% availability to generate electricity. be ideal for low-speed, high-torque applications such as wave 42 energy conversion. Other successful DOE-funded research Several Swedish companies are developing both wave and tidal during 2017 aimed to make the components used in tidal energy energy devices. Waves4Power completed a grid connection on its 33 devices more durable and efficient, to reduce operating costs, Seabased WaveEL wave energy buoy off the coast of Norway. 43 and to advance commercialisation. discontinued development at its demonstration project, the Sotenäs wave energy park, to focus on commercial project In late 2016 through mid-2017, Chinese authorities released markets where the technology can already be competitive. The several edicts on energy and technology innovation, including company noted that its point-absorber devices were proven to the 13th Five-Year Plan on Ocean Energy. The specific targets 34 be highly efficient. for ocean energy include the development of new demonstration and testing facilities, the construction of island projects and a Government support of ocean energy, whether through direct 44 capacity target for the installation of 50 MW by 2020. funding or through research and infrastructure support, remains a critical element in ongoing development. In Europe, for In 2017, the European Commission published a report to example, various project and research funding opportunities shed light on the reasons for past failures in ocean energy i ), as well as the availability (including MaRINET2 and FORESEA development and on the lessons that might be drawn from of testing facilities, are made possible by regional, national and experience. The report calls for a “covenant” between the local government entities. industry and the public sector that would seek: co-ordinated evaluation of technology development; certification, performance Supported by the European Commission’s Horizon 2020 guarantees, standardisation and accreditation; a consistent policy programme, MaRINET2 announced its first set of awards totalling framework and alignment of public funding activities; a staged EUR 1.3 million (USD 1.6 million) to support technology developers 35 support structure with strict conditions; and the application The FORESEA of offshore wind, wave and tidal energy projects. of performance criteria to assess technological and sectoral project also made several awards to technology developers 45 36 readiness, all for a more selective and targeted support. Launched in 2016, FORESEA provides competitive in 2017. funding opportunities to ocean energy technology companies to As the ocean energy industry draws closer to commercialisation, test their devices in real sea conditions at test centres in France, 46 questions remain regarding potential impacts on marine life. Based 37 Ireland, the Netherlands and the United Kingdom. on current knowledge, the deployment of single devices appears to pose very small risk to the marine environment, but only actual Wave Energy Scotland, formed in 2014 as a subsidiary of the experience with large commercial arrays will reveal any risk that they Highlands and Islands Enterprise of the Scottish government to represent. More research, data collection and sharing are needed to ensure that Scotland maintains a leading role in ocean energy, establish accurate risk assessment, which is a prerequisite for well- had awarded GBP 28 million (USD 37.8 million) to 62 projects 47 38 informed consent and permitting requirements. All projects focused on in 11 countries by the end of 2017. Funding Ocean Renewable Energy through Strategic European Action. i A PTO is a device for transferring power from its source to deliver work. In the case of ocean energy conversion, the PTO transfers converted energy ii (i.e., from wave action) in a manner that is suitable for generating electricity. 89

90 RENEWABLES 2018 GLOBAL STATUS REPORT The top five national markets – China, the United States, India, SOLAR PHOTOVOLTAICS (PV) Japan and Turkey – were responsible for nearly 84% of newly installed capacity; the next five were Germany, Australia, the 8 SOLAR PV MARKETS For cumulative Republic of Korea, the United Kingdom and Brazil. capacity, the top countries were China, the United States, Japan, The year 2017 was a landmark one for solar photovoltaics (PV): 9 p See Figure 25.) ( Germany and Italy, with India not far behind. the world added more capacity from solar PV than from any other Despite the heavy concentration in a handful of countries, new type of power generating technology. More solar PV was installed markets are emerging and countries on all continents have than the net capacity additions of fossil fuels and nuclear power 10 1 By the end begun to contribute significantly to global growth. In 2017, solar PV was the top source of new power combined. of 2017, every continent had installed at least 1 GW and at least capacity in several major markets, including China, India, Japan 11 2 i The leaders for solar 29 countries had 1 GW or more of capacity. of solar PV Globally, at least 98 GW and the United States. dc PV capacity per inhabitant were Germany, Japan, Belgium, Italy capacity was installed (on- and off-grid), increasing total capacity 12 and Australia. by nearly one-third, for a cumulative total of approximately 3 On average, the equivalent of more ( p See Figure 24.) 402 GW. 4 than 40,000 solar panels was installed each hour of the year. The significant market increase relative to 2016 was due primarily 5 India’s to China, where new installations were up more than 50%. market doubled, while other major markets (Japan and the United 6 For the fifth year running, Asia eclipsed all States) contracted. other regions, accounting 7 for 75% of global additions. Solar PV was the top source of new power capacity in several major markets The GSR endeavours to report all capacity data in direct current (DC). See endnotes and Methodological Notes for further details. i Solar PV Global Capacity and Annual Additions, 2007-2017 FIGURE 24. Gigawatts World Total Total 450 global 402 Gigawatts capacity 400 +98 350 303 Annual 300 additions +76 250 Previous 228 year‘s +51 capacity 200 177 +40 150 137 +38 100 100 +29 70 40 +31 23 50 +17 15 8 +8 +6.6 +2.5 0 2015 2014 2013 2012 2011 2010 2009 2008 2007 2017 2016 Note: Data are provided in direct current (DC). Totals may not add up due to rounding. Source: IEA PVPS. See endnote 3 for this section. 90

91 03 FIGURE 25. Solar PV Global Capacity, by Country or Region, 2007-2017 Gigawatts World Total Total 450 global 402 Gigawatts capacity 400 350 303 Rest of World 300 Italy 250 228 Germany MARKET AND INDUSTRY TRENDS Japan 200 177 United States 150 137 China 100 100 70 50 40 23 15 8 0 2014 2015 2016 2009 2017 2007 2008 2010 2011 2012 2013 Note: Data are provided in direct current (DC). Source: See endnote 9 for this section. Globally, market expansion was due largely to the increasing In 2017, China surpassed all expectations, adding more solar competitiveness of solar PV combined with the rising demand PV capacity (nearly 53.1 GW) than was added worldwide in 17 For the first time, solar PV was China’s leading for electricity in developing countries, as well as to the increasing 2015 (51 GW). 18 By year’s end, total installations source of new power capacity. awareness of solar PV’s potential to alleviate pollution, reduce 13 emissions and provide energy access. Solar PV also approached 131.1 GW, far surpassing the government’s minimum CO 2 is meeting growing interest in some countries in producing target for 2020 (105 GW), announced in 2016 with the aims of 14 Nevertheless, most global demand continues electricity locally. advancing economic development, poverty alleviation and 15 19 p See Figure 26 and ( Reference to be driven largely by government incentives and regulations. environmental protection. Because China accounts for more than half of global Challenges remain to be addressed before solar PV can become a Table R6. ) major source of electricity worldwide, although several countries demand and manufacturing, developments there can have a 20 wide-reaching impact on the solar PV sector. – including Germany, Greece, Honduras and Italy – already meet 16 significant portions of their electricity demand with solar PV. FIGURE 26. Solar PV Capacity and Additions, Top 10 Countries, 2017 Gigawatts 140 +53.1 Annual additions 120 Previous year‘s 100 capacity 80 60 +10.6 +7 +1.7 40 +0.4 +9.1 20 +0.9 +0.9 +1.3 +0.1 0 United United Italy China India FranceAustraliaSpain JapanGermany Kingdom States Note: Data are provided in direct current (DC). Source: See endnote 19 for this section. 91

92 RENEWABLES 2018 GLOBAL STATUS REPORT China’s market continued to be driven by government policy rate fell 9.3 percentage points to average 22% for the year, and 21 30 Unlike 2016, when a rush of projects came online in Even as in 2017. Gansu’s rate was down 9.8 percentage points to 20%. advance of a mid-year feed-in tariff (FIT) cut, followed by a lag curtailment rates declined, evidence emerged that air pollution, in the second half of the year, a robust rate of new installations specifically particulate matter, in China (and elsewhere) is 31 22 A healthy second half of the Even so, solar PV in was maintained throughout 2017. reducing solar panel output significantly. China generated 118 TWh in 2017 (up nearly 79% over 2016) – year was fuelled by projects not completed by a mid-year FIT representing approximately 1.9% of the country’s total electricity adjustment, as well as by anticipation of the looming expiration of several provincial and local incentives, and yet another downward generation – and penetration rates in five provinces ranged from 32 23 5.5% to 16.5%. FIT adjustment at year’s end. While most capacity additions in China continued to be in large The United States remained a distant second to China for new 33 installations in 2017, adding 10.6 GW for a total of 51 GW. centralised projects, there was an evident shift toward so-called i 24 solar PV. About 19.4 GW of distributed capacity For the second consecutive year, solar PV represented the distributed was added in 2017, up from 4.2 GW in 2016, for a cumulative country’s leading source of new generating capacity (based 34 California again led for capacity added total of 30 GW; new rooftop systems saw a three-fold increase on net additions). 25 The government (5.2 GW), followed by North Carolina (1 GW) and Florida relative to 2017, to 2 GW installed during 2017. 35 Several states, including California, reached or has increased its emphasis on distributed projects – particularly (0.4 GW). 36 exceeded 10% solar PV penetration in 2017. rooftop systems for self-consumption – in an effort to lessen the 26 burden on transmission capacity and to reduce curtailment. Overall, however, the US market contracted by 30% relative to The year also saw a clear shift from sparsely populated regions 2016 due to several factors, including interconnection delays, a with high rates of curtailment in China’s northwest towards major slowdown in maturing markets (including California) as well as ii and political uncertainty – both demand centres. The central and eastern regions accounted rising solar PV equipment prices due primarily to an impending decision about federal duties on for 27.7% and 20%, respectively, of newly installed capacity in 27 37 Reversing a multi-year trend Distributed solar PV installations were naturally more imported solar cells and modules. 2017. of continuous expansion, US installations declined in both the concentrated in areas of greater population, with the eastern residential (down 16%, to 2.2 GW) and utility-scale (down nearly provinces of Zhejiang, Shandong and Anhui accounting for 38 28 Only the non-residential nearly 46% of distributed additions. 40%, to 6.2 GW) sectors during 2017. (commercial) sector expanded relative to 2016 (up 28%, to Preliminary data show that China’s curtailment of solar PV 39 2.1 GW), driven largely by end-of-year policy deadlines. averaged 6-7% in 2017, down 4.3 percentage points relative to 29 Whereas most US solar procurement was driven by state mandates Curtailment was concentrated mainly in two provinces, 2016. until 2015 and 2016, by early 2017 almost all new procurement of both of which saw substantial reductions: Xinjiang’s curtailment i “Distributed” solar PV in China includes ground-mounted systems of up to 20 MW that comply with various conditions, in addition to commercial, industrial and residential rooftop systems. Distributed generation consists largely of commercial and industrial systems and, increasingly, floating projects and, to a lesser extent, residential systems. See endnote 24. ii A rush to purchase modules in the second half of the year, in advance of a possible tariff on imports, pushed up module prices in the United States; overall, they were up 14% for the year, from GTM Research and Solar Energy Industries Association, U.S. Solar Market Insight: 2017 Year in Review, Executive Summary (Boston: March 2018), p. 15, https://www.greentechmedia.com/research/subscription/u-s-solar-market-insight. 92

93 03 China more solar PV added capacity in 2017 than the world installed in 2015 MARKET AND INDUSTRY TRENDS large-scale projects was due to voluntary utility and corporate and south), flat power demand, rising panel costs domestically 40 See Feature chapter.) ( p While some electric utilities sourcing. and uncertainty raised by the see Industry text in this section) p ( 52 Several tenders are fighting for revisions or elimination of supportive policies, possibility of new duties on imported panels. were postponed due to lack of interest among prospective bidders, such as net metering, others aim to diversify their businesses in response to record-low bids early in the year and rising module and increase profits by investing in solar PV projects in response 53 To address private sector concerns about the slowing prices. to solar PV’s increasing cost-competitiveness with natural gas 41 In 2017, more than 6.2 GW of utility solar PV capacity project pipeline (10.6 GW of utility-scale capacity at year’s end) and generation. was brought online in the United States; by year’s end, 2.3 GW the lack of a clear roadmap, the government announced plans to 54 was under construction and a further 14.6 GW was contracted tender an additional 67 GW of solar capacity by early 2020. 42 through power purchase agreements (PPAs). Japan’s market contracted (by 13%) for the second year running India placed third for new installations in 2017, adding a record but still ranked fourth globally for additions, with an estimated 43 55 By year’s Demand for 9.1 GW, more than double the 4 GW installed in 2016. 7 GW installed for a total capacity exceeding 49 GW. 56 To large-scale projects fell due to a reduction in the national FIT. end, India had 18.3 GW of total capacity and ranked sixth globally 44 Solar PV was the country’s top source reduce costs, in 2017 Japan began shifting to tenders for systems for cumulative capacity. 57 In the country’s first solar auction, project of new power capacity (followed by wind power), accounting for of 2 MW and larger. approvals totalled less than 10% of the government’s capacity an estimated 45% of new installations in 2017, and ahead of new 58 45 The states of Telangana and tender due to its high hurdles for participation. coal capacity for the first time. Karnataka were home to about half of new solar PV installations, Shipments of panels for residential applications in Japan also were each adding more than 2 GW, followed by Andhra Pradesh and down for the fourth consecutive year but nonetheless accounted Rajasthan. Telangana became India’s first state to pass 3 GW of 59 Interest in residential for roughly 1.1 GW of new installations. 46 installed solar PV. solar-plus-storage options continued to increase, with an estimated 60 The number of community solar Demand for large-scale solar projects in India has been driven 25,000 systems installed in 2017. PV projects also rose during the year, with total capacity almost by rapidly falling prices combined with strong policy support in 61 47 In 2017, large doubling to 86 MW, up from 45 MW in 2016. several states and at the national level since 2014. ground-mounted systems accounted for about 91% of solar PV Japan saw little curtailment of solar PV in 2017, and only in some 48 Rooftop solar is India’s fastest growing sector, but it additions. islands of the Kyushu area, where the solar PV share of peak remains a small market segment – approximately 0.8 GW was 62 Kyushu’s demand reached 71% for a short period of one day. 49 The rooftop market added in 2017, for a year-end total of 1.7 GW. utility has managed high shares of variable renewable energy by is driven largely by commercial, industrial and government controlling thermal generation and through the use of pumped facilities seeking to reduce their electricity bills, as few residential 63 For all of Japan, solar PV accounted for an estimated storage. 50 Growth also has been customers can afford the upfront costs. 5.7% of total electricity generation in 2017, up from 4.8% in 2016 restrained because many state distribution companies have 64 and 2.7% in 2015. refused to purchase surplus solar power from commercial and industrial rooftop installations, and some states ban net metering, 51 prompting customers to install sub-optimally sized systems. In the final quarter of 2017, India’s market growth slowed due to lack of transmission infrastructure (particularly in the north 93

94 RENEWABLES 2018 GLOBAL STATUS REPORT Elsewhere in Asia, Turkey installed a record 2.6 GW, more In the United Kingdom, new installations fell 54% relative to 2016, to 65 around 0.9 GW, due mainly to closure of the Renewable Obligation The than doubling its total capacity to 3.4 GW at year’s end. 66 Certificates window and to a significant reduction (in 2016) in FIT In Republic of Korea added more than 1 GW for the first time. 82 France and the Netherlands each payments for new installations. Thailand, government-issued PPAs have been in decline, but an added nearly 0.9 GW, while Spain’s installations were up 145% over increasing number of companies are installing rooftop solar PV 83 67 Spain, which was 2016, to 0.1 GW (mostly in rooftop projects). Armenia entered the solar market in 2017, for self-consumption. 68 once a solar PV powerhouse, held a solar tender to catch up with completing its third large-scale solar PV plant by year’s end. 2020 EU targets, and saw more than 3.5 GW of capacity allocated Other countries in the region have seen rapid growth, but from a 84 69 Elsewhere on the continent, the Russian to future projects. In many Southeast Asian countries, although solar small base. 85 Federation added 115 MW for a total of 250 MW. PV is cost-competitive with fossil fuels, demand is suppressed by 70 government subsidies for fossil fuels. Utilities in Australia are grappling with the rapid growth of solar PV. The country added a record 1.3 GW in 2017, for a total capacity of The EU added an estimated 6 GW of solar PV capacity in 2017, for 71 7.2 GW, as residential and commercial customers responded to a The market is still in transition a year-end total of nearly 108 GW. continued rise in electricity prices and to the improving economics but is progressing towards reduced dependence on traditional 86 72 The residential market again accounted for the of solar energy. Falling costs and advances in FIT-based government support. majority of Australia’s new installations (64%), but the number technology are creating demand for rooftop and ground-mounted 73 and capacity of commercial rooftop systems expanded at an Demand in the region is driven increasingly by applications. 87 By year’s end, almost 1.8 million rooftop solar unprecedented rate. tenders, as well as by self-consumption where supportive policy 74 PV installations (residential and commercial) were in operation, Several utility-scale plants were under frameworks are in place. 88 accounting for the vast majority of Australia’s cumulative capacity. development and being planned during the year in Italy, Portugal, Spain and the United Kingdom, including the United Kingdom’s About 29% of dwellings in South Australia and 27% in Queensland 75 However, few first unsubsidised solar PV-plus-storage facility. had solar PV installations by early 2018, with substantial shares in 89 projects based on PPAs and corporate sourcing have been In September 2017, several other states and territories as well. 76 realised in Europe due to regulatory limitations. South Australia’s demand for electricity from the grid hit several record lows at mid-day due to increased output from rooftop The leading EU markets were (in order of market size) Germany, 90 solar systems. 77 All saw growth the United Kingdom, France and the Netherlands. relative to 2016, with the exception of the United Kingdom, which Distributed solar-plus-storage has become cheaper than retail 78 91 Germany added almost lost its regional lead for capacity additions. In 2017, electricity from the grid in several regions of Australia. 1.7 GW (well below the government target of 2.5 GW) for a year-end an estimated 40% of new solar rooftop installations included 79 About half of the residential systems installed in total of 42.4 GW. energy storage systems, amounting to almost 20,800 battery Germany during 2017 were combined with storage capacity, up from installations, mostly in the residential sector; this was up from 80 92 Repowering of Germany’s around 41% in 2015 and 14% in 2014. Battery 6,750 battery installations in 2016 and 500 in 2015. existing systems (replacing older modules with new, more powerful storage also is being used alongside some large-scale plants that 81 93 ones to increase yield) is in a very early stage but increasing rapidly. were under construction in Australia during 2017. 94

95 03 Across Africa, interest is growing in solar PV as a means to Latin America and the Caribbean together still represent a small portion of global demand, but markets are expanding quickly and diversify the energy mix, meet rising demand and provide 107 The top countries for cumulative capacity were large companies are flocking to the region with expectations of energy access. 94 By end-2017, a significant amount of capacity South Africa with 1.8 GW (added 13 MW) and Algeria (added massive growth. 108 In these and other was in the pipeline following tenders in Argentina, Brazil, Chile and 50 MW for a total approaching 0.4 GW). 109 95 Most installations have occurred via large-scale PPAs, African countries, most capacity is in large-scale projects. Mexico. but distributed solar PV has experienced significant growth in Several countries brought large plants online in 2017, and many 110 more had projects being planned or under construction. Brazil and in Mexico, where high electricity prices and net metering 96 Brazil became the However, rapidly falling costs, new business models and a global provide an incentive to switch to solar PV. region’s second country (after Chile) to exceed 1 GW of installed quality certification scheme for pico-scale solar products have MARKET AND INDUSTRY TRENDS 111 As of solar PV capacity, adding nearly all of it in a single year (0.9 GW) combined to enable the emergence of projects of all sizes. 97 With this, Brazil moved up to rank tenth 2016 (latest data available), more than 59 million people in Africa for a total of 1.1 GW. globally for capacity added in 2017, although the country accounted (second only to Asia) were using off-grid solar energy in the form 112 98 ( p See Figure 27.) for only about 1% of global additions. of solar lamps and solar home systems, and via mini-grids. p See Distributed Renewables chapter.) ( Investment in many of Chile has struggled with transmission restrictions, which have Africa’s solar projects, large and small, has been advanced by slowed the connection of new projects, but new transmission 113 international financing organisations. 99 infrastructure was expected to ease congestion by year’s end. While demand is expanding rapidly for off-grid solar PV in Chile maintained its lead in the region, adding nearly 0.7 GW in 100 Also in 2017, Colombia commissioned Africa and other regions, grid-connected systems continue 2017 for a total of 1.7 GW. its first solar park (9.8 MW) on the site of a former coal-fired to account for the vast majority of existing and newly installed 114 Among grid-connected systems, power plant; the country is turning to solar energy to diversify solar PV capacity worldwide. 101 distributed applications (residential, commercial and industrial its electricity mix, which is heavily dependent on hydropower. rooftop systems) have struggled to maintain a roughly stable After years of announcements without much market growth in the global market (in terms of capacity added annually) since 2011, 102 Many Middle East, 2017 and early 2018 saw some real progress. but the market for distributed capacity increased somewhat in countries increased existing targets or put forth ambitious new 115 Centralised large-scale projects comprise the major share 2017. ones, driven by rapidly falling solar technology costs, the desire to of capacity added each year (77% in 2017), driven largely by the 103 The diversify their energy mix, and climate change objectives. 116 use of tenders and by the availability of low-cost capital. region’s second large-scale plant (200 MW) was completed in 104 Jordan connected the world’s The size and number of large projects continued to grow during the United Arab Emirates (UAE). largest project in a refugee camp (12.9 MW) and at year’s end 2017. By year’s end, at least 196 solar PV plants of 50 MW and 105 In October, Saudi larger were operating in at least 28 countries, with the UAE had several big projects under development. 117 The total capacity of such plants Arabia held a tender for 300 MW of solar PV and, in January 2018, joining the list during the year. 118 Planning or that came online in 2017 was more than 4.6 GW. announced plans to launch tenders for 3.3 GW of solar PV during 106 construction began on very large projects in nearly every region the year. Solar PV Global Capacity Additions, Shares of Top 10 Countries and Rest of World, 2017 FIGURE 2 7. 54% 9.3% India China Next 6 countries 8.8% Turkey 2.7% Germany 1.7% Australia 1.3% Republic of Korea 1.2% 10% 7.1% 10.8% United Kingdom 0.9% Rest of United Japan Brazil 0.9% World States Source: See endnote 98 for this section. 95

96 RENEWABLES 2018 GLOBAL STATUS REPORT of the world, including: a SOLAR PV INDUSTRY Based on projects 221 MW project in The year 2017 was characterised by a number of prominent completed in 2017, the Portugal, reported to themes, including: record-low auction prices driven by intense global weighted average be Europe’s largest competition; thinning margins for producers and developers alike LCOE of large-scale solar unsubsidised solar PV (for a variety of reasons, including the shift in many countries PV plants is project; a 102 MW solar- from FITs to tenders); continued consolidation in the industry plus-storage plant in among manufacturers and developers; a host of trade-related Japan; and a 300 MW down % 73 129 Module disputes; and continuing advances in technology. 119 project in Argentina. 0 since 201 prices continued to fall in 2017, but at a slower pace than in 2016, Considering plants of with average global prices down an estimated 6% for the year, to 4 MW or larger, more than 130 Installed costs also declined globally over USD 0.39 per watt. 70 countries had projects 131 the course of 2017. installed by year’s end, and the total global capacity of these 120 Based on projects completed during the year, by one estimate facilities was approaching 140 GW. the global weighted average levelised cost of energy (LCOE) Floating photovoltaic projects also are growing in both number from large-scale solar PV plants was USD 100 per MWh, down and scale. Since 2015, more than 100 plants have begun 132 At this level, solar PV is competing head- 73% since 2010. operation worldwide atop hydropower reservoirs, industrial water to-head with fossil fuel power sources in many locations, and 121 The benefits sites, aquaculture ponds and other water bodies. 133 p ( See Sidebar 2.) The US doing so without financial support. of putting solar modules atop water bodies include increased government announced in early 2017 that the national SunShot economic output per unit of land, improved output (due likely to Initiative target for 2020 had been achieved, with the US average the cooling effect of water on solar panels) and reduced water price of utility-scale solar PV (based on installed costs) below 122 Japan leads for the number of floating plants, due evaporation. USD 60 per MWh; however, the average price rose again during in part to the country’s FIT policy combined with the limited roof 134 the year due to a pending decision on import tariffs. 123 Other countries with and ground space for solar PV systems. i Solar PV auctions around the world in 2017 resulted in bids projects include China, with approximately 400 MW of floating at new record lows, with bidding in some markets below capacity, India, the Republic of Korea and Brazil, where the 124 USD 30 per MWh for projects to begin operations from country’s first floating project was completed in 2017. 135 Argentina, Chile, India, Mexico, Saudi Arabia about 2019. Back on land, solar PV cells and modules are being integrated into and the Emirates of Abu Dhabi and Dubai (UAE) all saw an increasing number of consumer products as well as building 136 The year also brought very low bids for solar PV in 2017. materials. These range from appliances (such as refrigerators national record low bids for tenders in Germany, for and televisions for off-grid markets) to fabrics, and from electric example, where average winning bids fell nearly 50% over 125 vehicles and roadways to tiles for building facades and roofing. two years, to below EUR 50 per MWh (USD 60 per MWh) A school building in Copenhagen, Denmark, completed in 2017, 137 The United States saw what was estimated in late 2017. is covered in more than 12,000 solar tiles, which are expected to to be the country’s cheapest PPA ever arranged, for a 150 MW 126 meet over half the electricity demand of the campus. 138 project in Texas to be operational in 2020. Solar PV plays an increasingly important role in electricity Around the world, low bids were due to a variety of factors, generation in several countries. In 2017, solar PV accounted for including the low cost of components, expectations that 10.3% of total generation in Honduras and significant shares also technology costs would continue to fall, increased competition 127 in Italy (8.7%), Greece (7.6%), Germany (7%) and Japan (5.7%). among developers and a relatively low weighted average cost At the end of 2017, at least 22 countries – including China and 139 Further, in some of capital due to declining risk perception. India – had enough solar PV capacity to meet 2% or more of countries, bids have become increasingly competitive due to their total annual electricity demand, and enough capacity was in expected low operating costs in locations with excellent solar operation worldwide to produce close to 494 TWh of electricity resources and, in some cases, the necessity to compete with 128 per year. 140 low wholesale electricity prices. Downward pressure on prices and slim margins made 2017 another challenging year for many solar manufacturers and 141 developers, causing further consolidation in the industry. Mergers and acquisitions continued as companies aimed to capture value in project development or to move into new markets (locations or applications), or simply to survive in an increasingly Note that bid prices do not necessarily equate with energy costs. Also, energy costs vary widely according to solar resource, project size, regulatory and fiscal i framework, the cost of capital and other local influences. Distributed rooftop solar PV remains more expensive than large-scale solar PV but has followed similar price trajectories, and is competitive with (or less expensive than) retail electricity prices (although not wholesale prices) in many locations. See, for example, Galen Barbose and Naïm Darghouth, Tracking the Sun VIII: The Installed Price of Residential and Non-Residential Photovoltaic Systems in the United (Berkeley, CA: Lawrence Berkeley National Laboratory, September 2017), p. 2, https://emp.lbl.gov/sites/default/files/tracking_the_sun_10_report. States pdf; International Energy Agency Photovoltaic Power Systems Programme, Survey Report of Selected IEA Countries : Trends in Photovoltaic Applications 2017 (Paris: 2017), p. 61. Between 1992 and 2016 96

97 03 142 100 GW for cells (up 23% over 2016) and 107 GW for modules competitive environment. For example, NSP, Gintech and Solar 155 (up 28%). Thin film production increased by an estimated 6%, Tech (all Chinese Taipei) announced that they would merge to accounting for 5% of total global PV production (down from 6% create what might be, at least temporarily, the world’s second 143 156 By one estimate, solar project in 2016 and 8% in 2015). largest cell manufacturer. acquisition increased 67% in 2017, to 20.4 GW, and the number China continued to dominate global production in 2017, for the of corporate merger and acquisition transactions increased from 157 Asia accounted for 90% (and China 66%) of ninth year running. 144 68 in 2016 to 71. global module production, and China alone was home to about 158 Cutthroat pricing that is not necessarily reflective of cost has Europe’s share of module 60% of cell production capacity. 145 In 2017, production stayed flat, at about 6% in 2017, and the US share forced some manufacturers out of business. ii 159 shipped an The top 10 module suppliers manufacturers Suniva (US-based but primarily Chinese-owned) remained at 2%. MARKET AND INDUSTRY TRENDS i 160 JinkoSolar, both filed for bankruptcy in the United estimated 57 GW in 2017, or nearly 60% of the total. and Germany’s SolarWorld States and appealed for trade relief (which ultimately led to the Trina Solar (both China) and Canadian Solar (Canada/China) 146 Chinese cell manufacturer were in the top three for the third consecutive year, and were US adoption of tariffs in early 2018). 147 SunEdison (United ET Solar filed for bankruptcy at year’s end. followed by JA Solar (China) and Hanwha Q Cells (Republic of States), once reported to be the world’s largest renewable Korea); GCL, LONGi, Risen Energy, Shunfeng and Yingli Green, 161 energy company, won final approval for a bankruptcy plan that all based in China, rounded out the top 10. 148 Impacts were felt beyond the left nothing for shareholders. Several countries imposed anti-dumping and countervailing manufacturing sector, with shrinking or shifting markets affecting duties on imported solar cells and modules in 2017 and early developers and installers in some key countries. For example, 2018 to protect domestic manufacturing: Turkey published a list three of the largest US installers shifted away from the residential of China-based manufacturers that are subject to a new anti- 149 In Japan, 50 companies went market or went bankrupt. dumping fee; the EU extended import tariffs on solar cells and bankrupt in the first half of the year, compared with 23 during modules from China, Chinese Taipei and Malaysia and, later 150 the same period in 2016, due to a slowdown in deployment. in 2017, set minimum import tariffs on Chinese solar products; The need to drive down manufacturing and project development India opened an investigation into the potential dumping of costs has raised concerns that manufacturers and developers solar products from Chinese equipment makers and imposed could be pushed to cut corners, and that quality could be a duty on glass for solar panels from China; and the United 151 In turn, this concern is prompting developers compromised. States considered, and in early 2018 adopted, tariffs on imported of large-scale projects to invest increasingly in rigorous quality cells and modules from most solar manufacturing countries to 152 assurance programmes to secure return on their investment. provide domestic manufacturers relief from alleged unfair trade 162 practices. Although some manufacturing facilities closed, many were The threat of import tariffs in the United States spurred hoarding opened or expanded during the year to meet demand in local 153 On balance, global production of solar panels and drove up module prices in the second half of markets or to evade trade duties. 163 154 The construction of some US projects was cancelled or capacity of crystalline silicon cells and modules rose in 2017. 2017. 164 Preliminary estimates of 2017 production capacity exceeded delayed while awaiting the tariff decision. Tenders around the world saw new record-low bids for solar PV in 2017 In early 2018, SolarWorld filed for insolvency again, this time in Bonn, Germany, from Frank Asbeck, “SolarWorld ist erneut pleite”, Zeit Online, 28 March 2018, i http://www.zeit.de/wirtschaft/2018-03/frank-asbeck-solarworld-insolvenz. ii The solar PV value chain also includes manufacturers upstream (e.g., polysilicon, wafers, solar glass, chemicals, backsheets and balance of systems components) as well as downstream actors, including engineering, procurement and construction companies, project developers and operations and maintenance providers. 97

98 RENEWABLES 2018 GLOBAL STATUS REPORT In India, solar PV bid prices fell to new lows in early 2017, due and batteries (including US-based Tesla and China’s BYD) also 173 to intense competition caused by slowing demand, and to increased their reach into the sector during the year. 165 the expectation that module prices would continue to fall. Industry's pairing of solar PV with storage remains limited Record-low winning bids brought the price of new solar PV but is expanding rapidly in some countries, particularly in to half that of new coal and even below that of existing coal 174 Solar-plus-storage also is used Australia, Germany and Japan. plants, leading to suspension or cancellation of tenders for increasingly for providing energy access for people living off-grid 166 However, high demand in China and the new coal capacity. 175 Wanting to get in on the ground floor, a and for mini-grids. United States, coupled with a reduced supply of polysilicon number of companies – including solar PV manufacturers and in China, made it difficult to secure solar panels and pushed installers, battery manufacturers and big-box stores – announced up prices in India from May onwards; increased taxes and the 176 solar-plus-storage related plans in 2017. threat of import duties on solar panels further compounded the 167 Innovations and advances continued in manufacturing, product In response, several developers in India delayed challenges. 177 168 They were driven performance and efficiency during the year. In procurement or sought to exit low tariff commitments. largely by rapid price reductions, which have forced companies addition, in several instances, distribution system operators 169 to decrease costs and to differentiate themselves, as well as by In forced developers to renegotiate PPAs at lower prices. growing customer demands for increased functionality and a late 2017, China’s Trina Solar was reconsidering construction 178 In order rising number of grid requirements in some countries. of a planned manufacturing facility in India, for which it had to reduce manufacturing costs, for example, US-based First already secured land, because the company claimed India’s 170 Solar decided in 2016 to discontinue its Series 4 and successfully solar prices were too low. unveiled its first functional Series 6 thin film module off the new Even as falling prices have challenged many existing solar PV 179 production line in Ohio just one year later. companies, low and predictable energy prices offered by solar Throughout 2017, new record cell and module efficiencies were PV, along with expanding markets, are luring new players to the i 180 Passivated Emitter Rear Cell (PERC) technology achieved. industry. A growing number of utilities, particularly in Europe and has become the new standard for the monocrystalline silicon the United States, are entering the sector through acquisition of 171 solar cell variety because it increases efficiencies with modest companies and solar plants, and through project development. 181 In early 2018, LONGi of China announced a world investment. For example, France’s EDF announced in 2017 that it plans to record conversion efficiency of 23.6% with its monocrystalline develop an additional 30 GW of capacity by 2035, to align with a 182 172 Efficiency gains from such advances have PERC solar cells. Fossil government goal of rebalancing the country’s energy mix. reduced the number of modules required for a given capacity, fuel companies (including Europe-based BP, Shell and Total, and 183 helping to reduce soft costs. Thai coal-mining giant Banpu) and even manufacturers of autos i PERC is a technique that reflects solar rays to the rear of the solar cell (rather than being absorbed into the module), thereby ensuring increased efficiency as well as improved performance in low-light environments. 98

99 03 developers are moving into the sector because they see its The drive to increase efficiencies and lower LCOEs, which is i 194 , has Significant challenges potential to provide stable revenue. also supported by China’s Top Runner programme remain in many developed markets where O&M is exposed to pushed module manufacturers to develop advanced module iii ii 184 . and half-cut cells growing price pressures and where there are inconsistencies technologies, such as multi-busbars vi continued to achieve further improvements in Perovskites in scope and quality of service, as well as in emerging markets stabilisation and efficiency (exceeding 20% in the laboratory) that lack O&M skills and local capacity for manufacturing solar 195 However, O&M costs of large-scale projects through ongoing R&D, although durability challenges remain, components. have fallen rapidly and yield has increased in some countries and start-up companies worked during the year to commercialise 185 Development of due to clustering of projects and economies of scale, improved combined perovskite-silicon solar cells. options for integrating solar PV into building materials, including performance and reliability of inverters, evolution in plant and 186 MARKET AND INDUSTRY TRENDS facades and glass blocks, also progressed. tracker designs, remote monitoring with new digital technologies (such as digital infrared cameras and drones) and robotic Advances in balance of systems technologies helped improve 196 cleaning systems. 187 Low bid prices have installation and overall performance. Efforts to advance recycling processes continued during 2017, encouraged an increased focus on quality of modules, inverters 188 v although there is relatively small demand for recycling of are the main source Inverters and other system components. waste and solar panels (at end-of-life, or damaged or defective of failure in large-scale plants, and suppliers continued working 197 189 In addition to recycling’s potential environmental panels). in 2017 to improve their long-term reliability and performance. benefits, the process can yield materials to be sold in global Advances include the development of new materials, as well commodity markets or to be used for the production of new as increased use of data analytics to raise system yields for 198 In the United States, thin film manufacturer First solar panels. large-scale solar PV plants, and to provide capabilities such as 190 Solar, which offers recycling of its own products, is designing power optimisation and energy storage for residential systems. its panels to be conducive to recycling, and one of the country’s Increasingly, panel manufacturers are integrating inverters (and largest electronics recyclers, ECS Refining, is ramping up its even storage) into their products through their own developments 199 French environmental capability to recycle solar PV panels. and partnerships, and inverter manufacturers (such as Huawei) are 191 services provider Veolia announced plans in 2017 to build a moving into solar project operations and maintenance (O&M). 200 Also in Europe, the solar module recycling facility in France. Increased competition in the large-scale solar PV sector has trading of used modules increased during the year, particularly elevated the importance of advances in O&M in order to reduce in Germany, where the market for repowering is starting to associated costs and to ensure that plants perform at or above 201 take off. 192 As a result, O&M has grown into a stand-alone expectations. 193 Solar panel manufacturers and project business segment. Innovations and advances continued in solar PV manufacturing, product performance and efficiency China’s PV Top Runner programme, introduced in 2015, provides economic incentives to Chinese companies to invest in new and innovative technologies i and to achieve minimum performance parameters for cells, modules and inverters. ii Busbars are the thin strips of copper or aluminium between cells that conduct electricity. The size of the busbar determines the maximum amount of current that it can carry safely. iii Half-cut cells are fully processed solar cells cut in two pieces to reduce cell-to-module losses during assembly, which increases efficiency and boosts power. Perovskite solar cells include perovskite (crystal) structured compounds that are simple to manufacture and are expected to be relatively inexpensive to iv produce. They have achieved considerable efficiency improvements in laboratories in recent years. Inverters convert direct current electricity from solar panels to alternating current for the grid. v 99

100 RENEWABLES Giga GLOBAL STATUS REPORT to be viewed as central to the competitiveness of CSP because it CONCENTRATING SOLAR THERMAL ii improves the overall operational value of the technology through 6 the provision of dispatchable or baseload power. POWER (CSP) Parabolic trough and tower technologies continued to dominate CSP MARKETS the market, with approximately 0.9 GW of trough systems and 7 0.8 GW of tower systems under construction by the end of 2017. i Concentrating solar thermal power (CSP) saw 100 MW of In addition, Fresnel plants totalling approximately 0.1 GW were capacity come online in 2017, bringing global capacity to around at various stages of construction, mainly in China, but also small 1 4.9 GW. ) Several ( See Figure 28 and p Reference Table R19. 8 plants in France and India. projects that were due to enter operation during the year were delayed until 2018 and later. Although global capacity increased South Africa commissioned the 100 MW Xina Solar One plant iii by just over 2% in 2017, the CSP industry was active, with a ) during the year, increasing (with 5.5 hours of TES; 500 MWh 9 pipeline of about 2 GW of projects under construction around A further 200 MW was total capacity by 50% to 300 MW. the world, particularly in China and in the Middle East and North under construction at year’s end: the 100 MW Kathu Solar Park 2 Africa (MENA) region. (4.5 hours; 450 MWh) was expected to commence operations in 2018, and the 100 MW Ilanga 1 facility (4.5 hours; 450 MWh) For the second year running, South Africa led the market 10 Several additional was scheduled for commissioning in 2020. in new additions in 2017, being the only country to bring new 3 CSP projects under development faced ongoing uncertainty in CSP capacity online. Also for the second consecutive year, 2017 as the state-owned utility, Eskom, continued to delay the new capacity was confined to emerging markets, with no new signing of PPAs under the Department of Energy’s Renewable capacity commissioned in the traditional markets of Spain and 11 Energy Independent Power Producer Procurement Program. the United States. This latter trend is set to continue because all However, progress was made in April 2018, when the department commercial CSP capacity under construction by the end of 2017 4 signed 27 renewable project contracts with independent power was located outside of Spain and the United States. 12 producers, including one for a 100 MW CSP project. An estimated 13 GWh of thermal energy storage (TES) based Although no other CSP capacity came online in 2017, several almost entirely on molten salts was operational in conjunction 5 facilities were approaching commercial operation in countries with CSP plants across five continents by the end of 2017. with high direct solar irradiation levels. China’s CSP market The vast majority of CSP plants still under ( p See Figure 29.) construction will incorporate some form of TES, which continues continued to gather momentum with the announcement of i CSP is also known as solar thermal electric power. ii The operational value of power generation and/or energy storage capacities is a measure of their ability to reduce the overall production costs of an electricity system. iii For CSP plants that incorporate TES, the hours of thermal storage and capacity are provided, in parentheses, in hours and in MWh. Where thermal storage ca - pacity has been reported in hours, it is assumed that these are full load hours (i.e., hours of storage at full plant discharge capacity). This section has converted storage capacity stated in hours into MWh by multiplying peak plant capacity by the stated number of storage hours. Similarly, where sources report storage capacity in MWh the storage value in hours has been derived by dividing storage in MWh by peak plant capacity. FIGURE 28. Concentrating Solar Thermal Power Global Capacity, by Country and Region, 2007-2017 World Total Gigawatts 4.9 Gigawatts 5.0 Rest of World 4.5 4.0 Spain 3.5 United States 3.0 2.5 2.0 1.5 1.0 0.5 0 2016 2017 2007 2008 2009 2010 2011 2012 2013 2014 2015 Source: See endnote 1 for this section. 100

101 03 FIGURE 29. CSP Thermal Energy Storage Global Capacity and Annual Additions, 2007-2017 Gigawatt-hours World Total Total 14.0 12.8 Gigawatt-hours global capacity +0.5 12.3 12.0 11.6 +0.7 +1.8 9.8 9.8 10.0 Annual +0.0 +3.3 additions 8.0 Previous MARKET AND INDUSTRY TRENDS year‘s 6.5 capacity 6.0 +2.0 4.5 +2.6 4.0 2.0 2.0 0.8 +1.2 0.4 +0.4 +0.4 +0.04 0 2017 2010 2008 2009 2011 2012 2013 2007 2016 2014 2015 Source: See endnote 5 for this section. Rashid Al Maktoum Solar Park was designed to incorporate a 20 projects – including parabolic trough, tower and Fresnel 13 facilities – with a combined capacity of 1 GW. Although not all 260-metre solar tower along with parabolic trough capacity and 24 are expected to be constructed, five projects totalling 300 MW is expected to enter commissioning in 2020. are targeting commercial operation before the end of 2018, which In Latin America, construction resumed at Chile’s 110 MW 14 will qualify them for a higher FIT. Several other projects are 25 Construction was (17.5 hours; 1,925 MWh) Atacama 1 plant. 15 aiming for completion before the end of 2020. halted in 2016 due to financial challenges faced by Spain’s India was the only other country in Asia with CSP capacity under 26 The Abengoa, the initial developer and owner of the facility. construction by the end of 2017, with the 14 MW Dadri Integrated 27 plant is expected to enter operations in 2019. i 16 Solar Combined-Cycle plant expected to begin operation in 2018. While Australia added no new capacity during 2017, the South Several countries in the MENA region had projects under Australian government signed a generation project agreement construction that were expected to be completed in 2018. Two for the Aurora Power Plant, a 100 MW system (8 hours; of the largest such plants were in Morocco, where the 200 MW 28 1,100 MWh) that is scheduled for completion in 2020. Noor II facility (7 hours; 1,400 MWh) entered the final stages of Some CSP activity continued in Europe in 2017. In Denmark, a hybrid construction during the year and commenced commissioning 17 combined heat and power facility that includes CSP technology, in early 2018. The adjacent 150 MW Noor III plant (7 hours; biomass boilers, heat pumps and oil-fired units began operations 1,200 MWh) was also at an advanced stage of construction by 29 18 The facility, which is connected to a district heating in early 2018. year’s end. Once both plants are operational, Morocco’s total 19 system, can alternate between providing heat and power at peak capacity will exceed 0.5 GW. 30 A 9 MW Fresnel facility was under price periods, and heat only. Israel’s 121 MW Ashalim Plot B tower facility is due to commence 31 construction in France’s Pyrenees Orientales district. 20 operations in 2018. The plant is located near the 110 MW Ashalim Plot A parabolic trough facility, which also was under Spain remained the global leader in existing CSP capacity, with 21 construction during 2017. 2.3 GW in operation at year’s end, followed by the United States 32 Spain’s CSP plants achieved a record with just over 1.7 GW. In Saudi Arabia, construction continued on the 43 MW Duba 33 22 Although these two countries output of 5.35 TWh in 2017. 1 ISCC facility and on the 50 MW Waad al Shamal ISCC plants. accounted for over 80% of global installed capacity at the end Kuwait’s 50 MW (10 hours; 500 MWh) Shagaya plant also 23 of 2017, no capacity has entered commercial operation in Spain progressed during 2017. In the UAE, a CSP tender was awarded 34 Neither country since 2013 and in the United States since 2015. for what is expected to be the largest CSP facility in the world 35 when completed. The 700 MW CSP plant in the Mohammed bin had new facilities under construction at year’s end. i Integrated solar combined-cycle facilities are hybrid plants that utilise both solar energy and natural gas for the production of electricity. 101

102 RENEWABLES 2018 GLOBAL STATUS REPORT CSP had a landmark year in 2017 in terms of bid tariffs in competitive tenders The Chinese CSP industry in particular was boosted by the CSP INDUSTRY 45 China’s 20 “pilot” plants announced in September 2017. The year 2017 was a landmark one for CSP in terms of bid tariffs programme has provided a launching pad from which at least seen in competitive tenders, particularly in Australia, Chile and five domestic CSP developers and contractors are entering the the UAE. In the Australian state of South Australia, a 150 MW 46 For example, the UAE’s Mohammed international marketplace. plant (8 hours; 1,200 MWh) was awarded at a global record-low bin Rashid Al Maktoum Solar Park will be built in a partnership 36 bid tariff capped at AUD 78 per MWh (USD 61 per MWh). This 47 between China-based Shanghai Electric and ACWA Power. bid tariff was 75% lower than the bid tariff for the Andasol CSP plant in Spain, which was the first commercial CSP plant with Abengoa (Spain), until recently the industry’s largest developer and 37 TES in the world and commenced operation in 2008. builder, continued with the implementation of its restructuring plan and the sale of assets aimed at achieving stability and avoiding In Chile, successive rounds of solar auctions in March and 48 This insolvency after posting a USD 8 billion loss in early 2017. October attracted bids for CSP with TES at USD 63 per MWh followed a few years of challenges arising from Spanish energy 38 In the UAE, a and under USD 50 per MWh, respectively. reforms in 2013, which included retroactive changes to renewable 39 700 MW project was awarded at a bid tariff of USD 73 per MWh. power contracts, a moratorium on new renewable power plants TES will be incorporated in both the 100 MW trough (15 hours; 49 and the introduction of taxes on electricity sales. 1,500 MWh) and 600 MW tower (10 hours; 6,000 MWh) sections 40 of the plant. CSP price reductions have been driven by competition as well as technology cost reductions arising from research CSP developers have focused on TES as a key competitive and development (R&D) activities, and less so by wide-scale advantage of CSP for providing competitively priced, 50 41 Critical adoption and economies of scale in manufacturing. dispatchable power. This focus has been driven by the R&D progress that played a role in the record-low CSP pricing increasing cost-competitiveness of solar PV compared to CSP observed in 2017 included improvements to heliostat designs that without TES, but also by the emerging role of CSP with TES as focused on using thinner glass, larger heliostat sizes, and more a viable competitor with traditional (gas, coal and nuclear) 51 42 efficient and cheaper heliostat drives. thermal power plants. R&D in CSP continued to receive public financial support in The leading developers of projects either brought into 2017. For example, the Dubai Electricity and Water Authority operation or under construction in 2017 included ACWA announced research funding of AED 500 million (USD 136 million), Power (Saudi Arabia) and Abengoa (Spain). Numerous other to be spent at the Mohammed bin Rashid Al Maktoum Solar Park developers from China, France, India, Israel, Saudi Arabia 52 43 The United States announced USD 62 million in R&D by 2020. and South Africa also were active in the CSP industry. funding to reduce technological risk and to lower the average Prominent engineering and construction companies working LCOE of CSP to USD 0.06 per kilowatt-hour (kWh) or less by the on CSP projects included (in order of MW developed or built end of 2020 (without subsidies), despite the country’s stalled CSP in 2017) Sener (Spain), GE (United States), Abengoa (Spain), 53 In addition, the European Commission initiated funding market. ACS Cobra (Spain), Acciona (Spain), TSK (Spain), Lanzhou for R&D focused on achieving a 40% reduction in CSP electricity Dacheng Technology Company (China), NWEPDI (China) and 44 54 SunCan (China). supply prices by 2020 relative to 2013 levels. 102

103 03 3 the year were down 4%, from 36.5 GW in 2016. The contraction th SOLAR THERMAL HEATING AND COOLING was due primarily to increasing competition with other renewable energy technologies in the residential sector – the primary sales SOLAR THERMAL HEATING AND COOLING MARKETS channel for solar thermal technologies worldwide – and to low Solar thermal heating and cooling systems served millions fossil fuel prices throughout the year, which negatively affected 4 of residential and commercial clients in 2017. Solar thermal the commercial sector. technology was used for a wide range of applications: hot water, The six leading countries for new installations in 2017 were again space heating and cooling, product drying, water desalination, China, Turkey, India, Brazil (which dropped into fourth place direct steam provision for industrial processes and commercial 5 behind India), the United States and Germany. See Figure 31.) ( p cooking. Systems with glazed and unglazed collectors provided MARKET AND INDUSTRY TRENDS Most of the top 20 countries for solar thermal installations in approximately 388 TWh (1,397 PJ) of heat annually by the end of 1 2017, equivalent to the energy content of 228 million barrels of oil. 2016 remained on the list in 2017. The exception was Denmark, which dropped from the ranks, leaving room for Tunisia. The top Globally, 35 GW of capacity of glazed (flat plate and vacuum tube th 20 countries for solar thermal installations with glazed and technology) and unglazed collectors was newly commissioned unglazed collectors accounted for an estimated 93% of the in 2017, bringing the total global capacity to an estimated 6 2 global market in 2017. 472 GW p Gross additions for ( by year’s end. See Figure 30.) th FIGURE 30. Solar Water Heating Collectors Global Capacity, 2007-2017 World Total Gigawatts-thermal 472 Gigawatts-thermal 500 Total global 456 435 capacity 409 400 374 330 Glazed 300 collectors 285 Unglazed 242 collectors 203 200 170 145 100 0 2011 200820092010 2007 2014201520162017 2013 2012 Note: Data are for glazed and unglazed solar water collectors, and do not include concentrating and air collectors. Source: IEA SHC. See endnote 2 for this section. 103

104 RENEWABLES Giga GLOBAL STATUS REPORT FIGURE 31. Solar Water Heating Collector Additions, Top 20 Countries for Capacity Added, 2017 Gigawatts-thermal 30 -6% Unglazed 25 collectors 1.5 +4% Glazed - evacuated 20 tube collectors 1.2 +26% Glazed - flat plate collectors 15 -3% 0.9 -4% 10 0.6 -16% -3% +1% +7% 5 0.3 +16% -4% -5% +4% -4% -9% -3% -15% -2% -3% 1.5 -27% 0 0 Italy India Israel Brazil Spain Japan Turkey China France Tunisia Poland Austria Mexico Greece Australia Germany Switzerland South Africa Taipei, China United States Note: Additions represent gross capacity added. Source: See endnote 5 for this section. accounted for almost 10% of the collector area installed in China In most of the top 20 countries, flat plate collectors dominated 14 during 2017. the market. In China and India, however, vacuum tube collectors These included several large-scale solar space accounted for more than two-thirds of 2017 additions, and in heating and cooling systems, such as a 1 MW installation for th 7 Turkey they accounted for about 50%. central heating in the Olympic sports centre in Shijiazhuang Considering all new (Hebei province), a 2.2 MW installations in the top 20 markets, vacuum tube collectors system for residential heating in th accounted for 73% (down from 75% in 2016), followed by flat Hohehot (Inner Mongolia) and a 1.1 MW concentrating collector th 15 plate collectors with 23% (up from 21% in 2016) and unglazed system to heat a sports office in Tianjin. 8 water collectors with 4% (unchanged). This trend towards the use of solar thermal systems for space heating is accelerating. In December 2017, the Chinese National China was again the world ́s largest solar thermal market by Development and Reform Commission issued a Clean Space far. New collector installations in 2017 totalled 26.1 GW th 2 Heating Plan (2017 to 2021) for northern China that calls for the (37.26 million m ) in China, 19 times greater than the total 9 replacement of coal boilers with solar water heaters or heat additions in the second largest market, Turkey. China’s rural retail 16 pumps to reduce air pollution. market continued to decline during the year because of reduced construction activity and market saturation, but the decline has Turkey was again the second largest market for new installations, been increasingly offset by rising demand for solar space heating 2 17 adding 1.35 GW (1.93 million m ) in 2017, up 4% over 2016. Solar th 10 and solar water heaters for large real estate projects. Therefore, water heater sales remained high, even without direct investment the strong downward trend of recent years flattened somewhat 18 subsidies, due to a strong construction market. Approximately in 2017, with new installations declining only 6% relative to 2016, 60% of new solar thermal capacity was installed in new buildings, which saw a 9% one-year market decline, following an even 19 primarily in the south and west of the country. This was 11 larger year-to-year contraction (-17%) in 2015. stimulated by Turkey’s urban transformation programme, which entails replacing multi-family houses in urban areas with new The transition from vacuum tube collectors to flat plate collectors 20 earthquake-resistant high-rise buildings. accelerated in China during 2017, with new flat plate collector area increasing 13%, while the market for vacuum tube collectors As in previous years, vacuum tube collectors gained market share 12 decreased 9%. The rise in sales of flat plate collectors in China in Turkey’s colder regions, such as middle and eastern Anatolia, is due to increasing demand for facade- and balcony-integrated 21 accounting for about half of the country ́s additions in 2017. Natural 13 applications, where flat plate collectors are safer and more aesthetic. circulation systems dominated Turkey’s residential market, whereas forced circulation systems made up the majority of commercial New solar thermal applications, such as space heating and 22 installations in hotels, hospitals, stadiums and military bases. cooling, as well as industrial and agricultural applications, 104

105 03 For unglazed collectors, India’s additions in 2017 were up 26% over the previous year’s 23 2 The market reached ). (1.52 million m installations, to 1.06 GW th the United States A record a new level of maturity following a brief period of contraction after was followed by Brazil 24 the national incentive programme ended in 2014. (443 MW ), Australia th number (266 MW ) and Mexico th olar heat of new industrial s Starting in 2016, India’s national solar thermal industry 35 (80 MW ). th systems were operating association called for binding standards on imported vacuum in 2017 tubes and vacuum tube collector systems, and in 2017 the initial California, Florida and 25 Several states invited impacts were apparent in the market. Hawaii were the three key tenders for solar thermal systems and required certificates from US states for solar thermal the Bureau of Indian Standards, which were available only for installations. California’s MARKET AND INDUSTRY TRENDS 26 As a result, flat plate collectors flat plate collectors as of 2017. relatively strong market accounted for 26% of installations, up from 12% in 2016, with was due to the California Solar Initiative – Solar Thermal, which 2 sold by the small number of remaining flat nearly 0.4 million m was extended in May 2017 for 2.5 years and provides incentives 27 plate collector manufacturers in India. 36 for solar thermal systems that replace gas water heaters. Other 2 ) of glazed and unglazed Brazil installed 884 MW (1.26 million m th US states with attractive incentive programmes – including 28 Whereas the collectors in 2017 to rank fourth for new capacity. Arizona, Massachusetts and North Carolina – also contributed 37 pool heating market (unglazed) grew 15% relative to 2016, the significantly to additions in 2017. flat plate collector market for domestic hot water applications Germany was again the world’s sixth largest market, with additions 29 This represented a strong break from Brazilʼs declined 17%. 2 38 of 437 MW However, 2017 was the ) in 2017. (625,000 m th high average annual growth rates (11%) for installations of glazed country’s weakest year for solar thermal collector additions in more 30 Constraints on the market collectors between 2010 and 2015. 39 than a decade. The market decrease (down 16%) was the result included the national economic crisis, which reduced investment of a sharp decline in the sales of combi systems, which supply both and purchasing power, and delays in implementing the next 40 space heating and hot water. In contrast, the year saw record phase of the social housing programme Minha Casa Minha Vida. demand in Germany for heat pumps used for space heating, which Vacuum tube collectors were again a niche market (2%), but the 31 attracted attention from installers and end consumers due to their area added during the year was up 27% relative to 2016. 41 high ratings within the European energy label. The United States was the world’s fifth largest market for all types 2 The top six countries for new installations in 2017 also were the ), ; 0.94 million m of solar thermal collectors in 2017 (658 MW th top countries for cumulative capacity at the end of 2016 (latest and the largest market for unglazed collectors for swimming pool 32 data available), but in a different order. With its year-end total The unglazed segment accounted for 81% ). heating (536 MW th 33 of 325 GW , China accounted for 71% of total global capacity th Despite of new additions in the United States during the year. 42 (456 GW ). It was followed distantly by the United States, th continuing low oil and natural gas prices and an increasing focus 43 34 Turkey, Germany, Brazil and India. p See Figure 32.) ( on solar PV, new installations of all collectors dropped only 4%. FIGURE 32. Solar Water Heating Collectors Global Capacity in Operation, Shares of Top 12 Countries and Rest of World, 2016 Next 18.4% 71.2% 11 countries China United States 3.9% Turkey 3.3% Germany 3.0% Brazil 2.1% India 1.5% 1.4% Australia 0.8% Austria Israel 0.7% 10.4% Greece 0.7% Rest of 0.7% Italy World Japan 0.5% Note: Data are for glazed and unglazed solar water collectors. Totals may not add up due to rounding. Source: IEA SHC. See endnote 43 for this section. 105

106 RENEWABLES 2018 GLOBAL STATUS REPORT Although most solar thermal capacity continued to be installed online only two small plants and three extensions, increasing total 2 49 solar as solar water heaters in individual buildings, the use of capacity by 19.7 MW ). The significant decline in new (26,636 m th district heating technologies expanded further during 2017, in capacity is due to project development requiring several years of an increasing number of countries. Driving factors included planning. All new activities beyond 2016 were stalled because the increased awareness of the potential for solar district heating to new energy savings mandate for utilities was signed only at the 50 reduce carbon emissions in the heating sector (particularly in end of 2016. Consequently, although several new projects were 51 Europe), and the potential to avoid the negative health impacts launched during 2017, most could not be completed by year's end. of coal boilers in urban areas (mainly in Poland and China) by Elsewhere in Europe during 2017, Austria brought online one new feeding solar thermal energy into coal-fuelled district heating district heating plant (0.9 MW ), Germany added two (totalling th 44 networks. 1.3 MW ), and Sweden added one (0.4 MW ) as did Serbia th th 52 Globally, at least 296 large-scale solar thermal systems (0.63 MW ). France’s subsidy scheme for large-scale solar th 2 (each >350 kilowatts-thermal (kW ) were connected ), or 500 m th thermal projects, launched in 2015, saw its first results with the to district heating networks or provided space heating for large inauguration of the country’s first large solar district heating field 53 residential, commercial and public buildings, for a total of 1.2 GW th (1.6 MW ) in December. th 2 (1.74 million m ) in operation by the end of 2017. These included glazed With the growing recognition that solar thermal district heating may 45 and concentrating solar thermal collectors. p ( See Figure 33.) be the most cost-effective way to decarbonise the heating sector, The vast majority (90%) of solar thermal capacity for district several other countries in Europe have organised stakeholder heating was in Europe, with Denmark alone accounting for 76% workshops and studies on renewable/solar district heating. 46 (932 MW ) of the global total by the end of 2017. Markets outside th Increased awareness of solar district heating among Germany’s Europe had a total of 19 installations, with a cumulative 118 MW th municipal utilities resulted in the submission of a large number of 47 of capacity. The world’s two largest district heating plants both applications under the country’s newly enacted subsidy scheme started operations in late 2016: a 110 MW flat plate collector field th (District Heating Network 4.0), which aims to increase the number in Silkeborg, Denmark and a 52.5 MW parabolic trough collector th 54 of fourth-generation district heating networks. The scheme 2 system that heats 500,000 m of living and commercial space near provides grants for up to 60% of the costs of feasibility studies and 48 the town of Baotou in Inner Mongolia, China. up to 50% of investment in new district heating networks, as long as renewable sources (solar or biomass) or waste heat meet at In 2017, following Denmark’s 2016 record for installations of solar 55 least 50% of heating demand. thermal district heating systems (347 MW ), the country brought th FIGURE 33. Solar District Heating Systems, Global Annual Additions and Total Area in Operation, 2007-2017 World Total 2 Collector area in m Number of systems 296 systems 2,000,000 40 Cumulative collector Number of systems 1,800,000 36 area in added outside Europe operation in Europe 1,600,000 32 Number of systems added in Europe 1,400,000 28 1,200,000 24 Cumulative collector 1,000,000 20 area in operation outside 800,000 16 Europe 600,000 12 400,000 8 200,000 4 0 0 2014201520162017 2007 200820092010 2011 2013 2012 Note: Includes large-scale solar thermal installations for residential, commercial and public buildings. Data are for solar water collectors and concentrating collectors. Source: IEA SHC. See endnote 45 for this section. 106

107 03 Also in 2017, Slovenia ) were constructed to parabolic trough collectors (totalling 2.8 MW th 68 supply heat for manufacturing businesses, hotels and sport clubs. announced that it would The top fund 35-55% of the total India was the first country worldwide (in 2010) to enact an cost (with the amount incentive programme specifically for concentrating solar thermal depending on the size of markets technologies. However, as of 2017, the 30% investment subsidy the investor) of new solar for concentrating heat was paid on a case-by-case basis, resulting in only a few new thermal or biomass plants 69 technologies in 2017 installations with a total of 2.8 MW This was a significant drop . th connected to district were Oman, China, Italy, from 2016, when 18 MW of concentrated collector capacity was th 56 heating systems. In early 70 India and Mexico added. As of early 2018, the government confirmed the extension 2018, Poland announced a 71 of the investment subsidy scheme until 2020. MARKET AND INDUSTRY TRENDS financial support scheme In addition to concentrating collectors, flat plate and vacuum for renewable district tube collectors are used increasingly to provide heat for industry 57 heating projects to reduce severe air pollution in several cities. around the world. Industry accounts for a significant portion of Interest in solar district heating also expanded beyond Europe global heat demand, and solar energy is suitable for meeting during 2017. A 0.5 MW solar district heating plant was th needs in the low- to medium-temperature range (below 400 °C), 58 inaugurated in the Kyrgyz Republic's capital city of Bishkek. In which account for about 50% of industrial heat demand. Australia, a new 0.5 MW collector field started feeding into the th In 2017, had a record year, with at least SHIP installations 59 district heating system of a large university campus. 110 systems (135 MW ) starting operations, raising the world total th China is the world’s largest market for district heating in addition to 72 by 21% to 635 SHIP plants in operation by year’s end. being the largest solar thermal market – a promising combination. Not included in this statistic are 378 small SHIP units (totalling In 2017, the Chinese central government conducted feasibility 1.6 MW ) that were newly installed in the silk production centre of th studies in more than 20 counties and cities in Tibet, where many Sidlaghatta, in southern India, to enable a switch away from wood 60 houses lack space heating, and awarded funding for two sites. 73 or briquettes used in traditional stoves. By year’s end, construction was under way for a parabolic trough collector field (12.6 MW ) in Shenzha, and a 14 MW collector th th Drivers for market growth varied by region. In Mexico and Oman, field with 15,000 cubic metres of pit storage was contracted (to be for example, solar thermal heat was more cost-effective than heat 61 commissioned by the end of 2018) in the town of Langkazi. from fossil fuel boilers, while in other countries, such as China, 74 growth was driven by government policies and other incentives. Concentrating collector technologies for heat and steam In China, solar heat is increasingly being used to replace coal- production have supplied only niche markets in recent years, and fired boilers in order to reduce air pollution. In 2016, the Chinese thus their capacity is not included in global and national capacity government established an ambitious target to meet 10% of statistics. However, for the first time, data for new installations 75 industrial heat demand with solar thermal energy by 2020. The with concentrating collectors are available. In 2017, an estimated largest new SHIP system worldwide completed during 2017 is a 2 concentrating solar thermal capacity of 143 MW ) (204,487 m th 2.3 MW vacuum tube collector installation that supplies heat for th was installed globally, with Oman (100 MW ), China (15 MW ), th th 76 a factory in Tibet, China. Italy (14 MW ) and Mexico (2.8 MW ), India (2.8 MW ) being th th th 62 the largest markets. These countries have good direct In addition to the key SHIP markets of China, India, Mexico and 77 irradiation potential, which is critical for concentrating collector Oman, 15 other countries saw such systems installed in 2017. technologies. The majority of these installations are used For example, the second largest SHIP plant completed during for industrial applications (so-called solar heat for industrial the year provides steam for a meat producer in Afghanistan. The processes, or SHIP), such as food and beverage production 2.3 MW parabolic trough collector field was financed by the th 78 or textile and automotive manufacturing; in China, however, Asian Development Bank. almost all systems are used for hot water and space heating of Solar thermal air conditioning and cooling remained a niche commercial buildings, and in India and Mexico some systems market in 2017. As in past years, demand for solar thermal cooling are used by large commercial heat consumers such as laundries, systems was stimulated by three factors: the potential to reduce 63 hotels and hospitals. electricity consumption, including peak loads; the potential to use The project in Oman was the largest concentrating collector natural refrigerants, such as water, which is appealing to European customers in particular; and the ability to provide both heating and system for industrial steam production constructed as of end- 79 cooling, depending on the needs over the year. 2017. The 100 MW parabolic trough collector field, placed in th greenhouses for an enhanced oil recovery plant, was completed In the Middle East, several countries and regions – including 64 in 2017 and started solar steam production in early 2018. This Kuwait, Saudi Arabia and the Emirate of Dubai – are gradually capacity corresponds to four steam-producing blocks – one-tenth removing subsidies for electricity, which in turn is generating of the final total plant size ordered by state-owned Petroleum demand for renewable cooling solutions (air conditioning 65 Development Oman. The construction of eight additional blocks accounts for the highest portion of household and commercial 66 (200 MW ) was announced for completion in 2018. th 80 electricity bills). In 2017, some early demonstration plants were constructed in the region (by European suppliers), including a Projects that began operation in 2017 included two demonstration 2 small solar cooling unit (with a 10 kW sorption chiller) at a waste plants in Italy, each with a 10,000 m concentrating collector array heat recovery company in Dubai and a solar thermal cooling (7 MW ), to heat thermal oil to 300 °C (backed up by biomass th 2 system (using 234 m of evacuated flat plate collectors) for a boilers) to increase the electrical efficiency of distributed power 67 81 generation units. company in Kuwait. In Mexico, 19 commercial systems with 107

108 RENEWABLES 2018 GLOBAL STATUS REPORT Asia was again the largest market for thermally driven chillers, even German and Austrian manufacturers, in particular, faced challenges during 2017 as a result of declining sales in domestic though only a handful of large solar energy-driven cooling systems 82 India saw the markets. Consolidation continued in Austria, where Sonnenkraft were installed in the region in 2017 and early 2018. completion of its first solar thermal air conditioning system in a purchased its competitor Tisun in December 2017. Due to 2 ), public building driven by vacuum tube collector field (1,575 m substantial debt accumulation, in early 2018 Sonnenkraft asked 97 and IKEA Singapore completed installation of a solar thermal for Tisun to be put into administration. 83 cooling system (2,475 m² flat plate collector field) in early 2018. Despite the declining number of installations in key solar thermal China has ambitious objectives for solar cooling: its 13th Five-Year markets worldwide, more manufacturers of solar collectors and Plan calls for solar thermal energy to cover 2% of the cooling load storage tanks adapted their product lines and sales strategies 84 Initial market impacts were seen in late 2017 in buildings by 2020. successfully during 2017 in order to compete more effectively in 85 98 with the announcement of plans for two large installations. the shrinking global market. In southern European countries that have cooling needs during Several export-oriented companies profited from increasing summer months, solar thermal solutions that combine solar demand for solar water heaters in North Africa (where demand cooling with solar hot water have been shown to improve the shifted from vacuum tubes to flat plate collectors), in Italy (due to 86 economics of the solar investment. an attractive national subsidy scheme) and in growing markets 99 Collector in the Middle East and in Central and South America. producers in Greece, for example, saw their total exports rise SOLAR THERMAL HEATING AND COOLING INDUSTRY ), following a 14% increase again in 2017, by 41% (to 325 MW th China was home to the largest collector manufacturers in 2017 for in 2016, due to cost-competitiveness and the good reputation of both key solar thermal technologies: vacuum tube and flat plate 100 The capacity of their exports exceeded domestic their products. collectors. As in previous years, the manufacturers of vacuum 101 Spain’s three collector manufacturers – BDR ). sales (221 MW th tube collectors were all from China: Sunrise East Group (including of Thermea, Delpaso Solar and Termicol – exported 88 MW th 87 the Sunrain and Micoe brands), Himin and Linuo Paradigma. 102 solar thermal collectors in 2017, an increase of 46% over 2016. For the first time, however, Chinese companies also dominated The year 2017 saw International co-operation with experienced the list of the world’s largest flat plate collector manufacturers. manufacturers supporting the design of new collector factories The Austrian-based company Greenonetec, which held the top in China, Moldova and Uzbekistan. Sweden’s Absolicon Solar position for flat plate production until 2016, was relegated to Collector sold its production line for covered parabolic trough second place by Sunrise East Group, and followed by Jinheng collectors to a newly formed Chinese joint venture, Heli New Solar (with its export brand BTE Solar) and Five Star, all of which 88 Energy, which combines knowledge of manufacturing and Furthermore, Greenonetec are Chinese-based manufacturers. 103 The Polish system energy efficiency project development. has been majority-owned (51%) since May 2017 by the supplier Makroterm supported the Moldovan company Raut Chinese-based Haier Group, one of the largest manufacturers of 89 in commissioning an assembly line for vacuum tube collectors household appliances in the world. 104 The Turkish collector manufacturer Solimpeks in September. Jinheng Solar, a flat plate collector manufacturer, responded to consulted for the Uzbek Artel Group in the layout of a state- the expanding demand for flat plate collectors by building new of-the-art collector and tank factory that went into operation in automated collector production lines, more than doubling the 105 November. 90 A new Chinese factory’s collector area production volume. A strong and growing supply chain of around 80 turnkey SHIP company, Sanqiaoneng, which manufactures highly efficient 106 However, suppliers helped to drive market growth in 2017. absorbers for flat plate collectors and concentrates on high- despite the record number of installations during the year, less quality solutions for solar heating and cooling, was also launched 91 than half of them commissioned a project due to low fossil fuel The solar heating department of the Sunrise East in 2017. prices, lack of awareness of the technologies and a consumer Group reported a 44% increase in sales of flat plate collectors 107 focus on the high upfront costs. for commercial housing projects in southern China, although the company’s total collector sales fell significantly in 2017 due to Most manufacturers of large-scale thermally driven chillers a substantial decline in the retail market for individual housing (greater than 50 kW) are based in Asia, whereas European 92 units. producers focus on chiller units between 5 and 50 kW. The Elsewhere in Asia, two manufacturers of flat plates in Turkey number of solar thermal cooling system suppliers in Europe and one in India were among the world’s largest companies declined during 2017, largely because some chiller manufacturers 93 Increasing demand in India enabled Emmvee in the industry. shifted to combined solar PV-split air conditioning systems, Solar Systems to re-enter the list of the 20 top flat plate collector which they consider to be more economical, especially in central 94 108 manufacturers worldwide. The remaining Europe where the cooling season is short. solar thermal cooling system suppliers in Europe continued to Europe also was home to several of the largest flat plate collector face challenges during 2017 due to high system costs and the manufacturers, with four based in Germany, two each in Greece 95 increasing popularity of solar PV, which is simpler and more Germany’s Bosch and Spain, and one each in Italy and Poland. economical for space cooling at relatively small scale. However, Thermotechnik remained the largest entirely European-owned some found demand in niche markets, such as commercial manufacturer of flat plate collectors in 2017. However, its sales 109 buildings in southern Europe (e.g., Italy and Spain). were well below those of the top Chinese-based companies due to continuing contraction in Germany and the weak market in 96 Brazil – two of the company’s key markets. 108

109 03 MARKET AND INDUSTRY TRENDS Strong growth in some of the largest markets (e.g., Germany, WIND POWER India and the United Kingdom) was driven by significant policy and regulatory changes, which pushed many developers to WIND POWER MARKETS commission projects quickly to take advantage of expiring support schemes; elsewhere, deployment was driven by wind Wind power had a relatively modest year compared with 2015 and energy’s cost-competitiveness and its potential environmental 2016, but still saw its third strongest 12-month period, with more than 6 and other benefits. Rapidly falling prices for wind power, both 1 52 GW added globally in 2017. Cumulative capacity increased nearly onshore and offshore, have made it the least-cost option for new 2 11%, to around 539 GW. ( p See Figure 34.) As in 2016, a decline in power generating capacity in a large and growing number of Chinese installations accounted for much of the contraction, while 7 markets. Around the world, wind power is quickly becoming a 3 several other markets, including Europe and India, had record years. 8 mature and cost-competitive technology. By the end of 2017, more than 90 countries had seen commercial wind power activity, and 30 countries – representing every region Asia was the largest regional market for the ninth consecutive 4 – had more than 1 GW in operation. Nevertheless, for the first time year, representing nearly 48% of added capacity (with a total in at least a decade, the trend towards greater diversification of exceeding 235 GW by year’s end), followed by Europe (over markets reversed, with a concentration of new wind power capacity 30%), North America (14%) and Latin America and the Caribbean 5 9 (almost 6%). in a smaller number of markets. China retained its lead for new installations, despite Wind Power Global Capacity and Annual Additions, 2007-2017 FIGURE 34. Gigawatts World Total 600 539 Gigawatts Annual +52 487 500 additions +55 433 Previous year‘s +64 400 370 capacity +52 319 300 +36 283 +45 238 +41 198 200 +39 159 +38 121 94 27 + 100 20 + 0 2010 2016 2014 2013 2012 2011 2015 2009 2008 2017 2007 Source: See endnote 2 for this section. 109

110 RENEWABLES Giga GLOBAL STATUS REPORT Wind Power Capacity and Additions, Top 10 Countries, 2017 FIGURE 35. Gigawatts 200 +19.7 Annual additions Previous year‘s 150 capacity 100 +7.0 +6.1 50 +4.1 +0.1 +4.3 +1.7 +0.3 +2.0 +0.3 0 Spain Canada Germany United Brazil China Italy France United India Kingdom States Note: Additions are net of decommissioning. Source: See endnote 11 for this section. a second year of contraction, and was followed distantly by the Although the northern and western provinces were still 10 Others United States, Germany, the United Kingdom and India. home to a significant portion of China’s wind power capacity, in the top 10 for additions were Brazil, France, Turkey, South new installations declined further in regions with the worst 11 ( p See Figure 35 and Reference Table R21. ) Africa and Finland. curtailment rates, and they continued to rise in some of the most At year’s end, the leading countries for total wind power capacity populous provinces, with significant construction in low-wind 16 The top per inhabitant were Denmark, Ireland, Sweden, Germany and speed regions of eastern, central and southern China. 12 provinces for capacity additions in 2017 were Shandong (2.2 GW), Portugal. Henan (1.3 GW) and Shaanxi (1.1 GW), all of which are relatively China added nearly 19.7 GW in 2017, for a total installed capacity 17 close to demand centres. 13 The decline in new installations, of approximately 188.4 GW. Overall, an estimated 41.9 TWh of potential wind energy was for the second year running, was due primarily to restrictions on curtailed in 2017 in China – a national average of 12% for the year, deployment in regions with high curtailment rates and to a shift in 18 Most curtailment was concentrated in down from 17% in 2016. focus to lower wind speed areas to better harmonise wind power a handful of provinces, all of which saw significant reductions expansion with grid infrastructure investments and to reduce 14 relative to 2016 in response to a number of policies, including About 15 GW was integrated into the national grid curtailment. those to expand electrification (especially of heating in industry), and started receiving the FIT premium in 2017, with approximately 15 i to encourage direct trade of renewable energy among large considered officially grid-connected by year’s end. 164 GW 19 Even with consumers and to construct new transmission lines. curtailment, wind power’s share of total generation in China has increased steadily in recent years, reaching 4.8% in 2017 (up from 20 4% in 2016 and 3.3% in 2015). Asia was the largest regional market for Elsewhere in Asia, India installed a record 4.1 GW to rank fifth wind power for the for additions, and easily maintained its fourth-place global position for cumulative capacity, ending the year with more than 21 Record installations early in 2017 were due largely to a 32.8 GW. ninth rush to capitalise on national incentives before they expired and consecutive year 22 to the country’s transition from FIT-based PPAs to auctions. But the pace of additions slowed significantly during the year due to an abrupt end to the generation-based incentives scheme and to a reduction in accelerated depreciation benefits, combined Statistics differ among Chinese organisations and agencies as a result of what they count and when. For more information, see endnote 15 for this section. i 110

111 03 with a gap in auctions for new capacity (due at least in part to flat Germany was again the top installer in the region and the third power demand); the results were decreased orders and factory largest globally, adding 6.6 GW (6.1 GW net) for a total of 56.1 GW 23 37 (50.8 GW onshore and 5.4 GW offshore). closings. Germany’s record year Low bids in India’s first tender led to the cancellation of state FIT schemes, and power producers came under pressure was largely driven by efforts to take advantage of guaranteed 24 from states to renegotiate pricing. FITs as the country moved to a system of feed-in premiums with auctions for most installations (in line with European Commission Turkey’s 2017 installations were about half of those in 2016 due 38 requirements). Wind energy generation increased 33% relative to business cycles, but the country again ranked among the top to 2016, due to an increase in total capacity (up 12%) and to 10 globally for new capacity, adding almost 0.8 GW for a total improved wind resource conditions, and it accounted for nearly 25 approaching 6.9 GW. Turkey ended the year with a round of 39 19% of Germany’s total net electricity generation in 2017. 26 tenders for 2.1 GW of wind power capacity. Pakistan and Japan MARKET AND INDUSTRY TRENDS each added close to 0.2 GW, followed by the Republic of Korea The United Kingdom added 4.3 GW (nearly 2.6 GW onshore (0.1 GW), with Mongolia, Vietnam, Thailand and Chinese Taipei and 1.7 GW offshore), increasing its total capacity by 29%, to 27 40 adding relatively small amounts of capacity. 18.9 GW. The significant increase (five times 2016 additions) was due largely to a dash to install projects prior to expiration of The EU installed roughly 15.6 GW of gross capacity (15 GW net, the Renewables Obligation Certificates framework for onshore accounting for decommissioning), up 25% over 2016 additions 41 installations. France saw record additions (1.7 GW) for the to a record high, bringing its total capacity to 168.7 GW (153 GW 42 second consecutive year, for a total approaching 13.8 GW. Spain 28 onshore and 15.8 GW offshore). In a rush to beat a change in has added little since early 2013, when a moratorium was placed the EU regulatory framework (which required member states to 43 on public support for renewables. In 2017, however, the country introduce competitive auctions for the allocation of support as of saw its largest increase (96 MW) in four years and held auctions 2017), the region saw record additions both onshore (12.5 GW) for new capacity, with more than half (4.1 GW) going to wind 29 and offshore (3.2 GW). Wind power represented an estimated 44 power. Sweden saw the year’s largest corporate deal anywhere 55% of new generating capacity added during 2017, and its share in the world, with Norsk Hydro committing to purchase most of in the EU’s total power capacity reached 18% (up from 12% in 45 the electricity from a 650 MW wind power project. 30 2012). By year’s end, 16 EU member states had more than 1 GW 31 each, and 9 had more than 5 GW. Elsewhere in Europe, Norway added a record 0.3 GW, and For the EU as a whole, wind 46 power generation in 2017 was up 12% over 2016, due in part to Ukraine and Serbia each added some capacity. The Russian better wind resources, and it met about 11.6% of total electricity Federation held a wind power tender in 2017 and commissioned 47 32 demand. its first commercial-scale wind farm in early 2018. North America ranked third globally for new capacity brought Six EU countries – Germany, the United Kingdom, France, Belgium into operation in 2017. The United States held onto the second (0.5 GW), Ireland (0.4 GW) and Croatia (0.1 GW) – set records 33 for newly added capacity in 2017. spot for annual additions (7 GW), although the market was down Ireland added the most wind 48 34 (by 15% relative to 2016) for the second consecutive year. power capacity relative to its electricity consumption. Finland Much i of the year’s activity focused on partial repowering (0.5 GW) also was among the top EU countries for installations (upgrading 35 49 as the last projects under its FIT came online. of existing projects). In all, 17 countries The country also was second, after China, added capacity, but the market was highly concentrated with for cumulative capacity at year’s end (89 GW) and for electricity 50 the top three countries accounting for 80% of the EU’s newly generation from wind power. Wind power ranked second after 51 36 installed capacity. solar PV for net US capacity additions. i Partial repowering refers to the installation of new components (e.g., drivetrain or rotor) on an existing tower and foundation to improve performance. 111

112 RENEWABLES 2018 GLOBAL STATUS REPORT Other countries adding capacity in the region included Mexico, Texas alone added 2.3 GW, for a year-end total of 22.6 GW; which ranked second regionally for new installations (0.5 GW) and if Texas were a country, it would rank sixth worldwide for 52 Wind power accounted for nearly 15% of cumulative capacity. for total capacity (4 GW), followed by Uruguay (added 0.3 GW), 67 53 Argentina Utility-scale wind electricity generation in the state during 2017. Chile (added 0.1 GW) and Costa Rica (added 59 MW). completed little capacity in 2017, but investment increased power accounted for more than 15% of annual generation in eight significantly in response to government tenders, and the country additional states, more than 30% in four states (including Iowa, at 54 68 36.9%) and 6.3% of total US electricity generation. ended the year with a project pipeline of at least 3 GW. Africa and the Middle East saw little new capacity enter Increasingly, economics are driving utilities, corporations and 69 South Africa was the only African country operations in 2017. other actors in the United States to sign PPAs for wind energy or 55 PPAs totalling almost to commission wind power projects in 2017, adding about to invest in wind power projects directly. 56 70 However, Kenya and Morocco had Corporations 5.5 GW were signed in 2017, up 29% over 2016. 0.6 GW for a total of 2.1 GW. and other non-utility customers accounted for 40% of contracted large projects, including Kenya’s Lake Turkana wind farm, that 71 In the Middle capacity; utilities signed the rest and announced plans to develop were awaiting grid connection as of early 2018. 57 See Feature chapter for more on ( p East, Saudi Arabia took the first steps towards a competitive 4.2 GW of their own projects. By year’s end, an additional 13.3 GW of wind corporate sourcing.) tender and inaugurated at least one commercial turbine, and Iran 58 72 Jordan continued to lead the power capacity was under construction in the United States. brought one 30 MW project online. 73 region for total capacity. To the north, Canada saw its market halved (to 0.3 GW) for The Oceania region had another quiet year. Only Australia added the second consecutive year but remained among the top 10 59 Despite the decline in capacity (0.6 GW), bringing its total to about 4.6 GW by year’s countries for total capacity (12.2 GW). new installations, wind energy has represented Canada’s largest end, with significant additional capacity under construction and 74 60 source of new electricity generation for more than a decade. development. The province of Ontario continued to lead in cumulative capacity, Although onshore wind power continues to account for the followed by Québec, while Prince Edward Island had the country’s vast majority (more than 96%) of global installed capacity, nine 61 highest rate of wind energy penetration (29%). countries connected a total 4.3 GW of offshore wind capacity Latin America and the Caribbean added about 3.1 GW (down during 2017, increasing total world offshore capacity 30%, to 75 The top countries for offshore additions were the almost 13% relative to 2016) for a regional total of about 18.8 GW. 62 Brazil continued to rank among United Kingdom (1.7 GW), Germany (1.2 GW), China (1.2 GW) 21.9 GW in at least 25 countries. 76 Europe connected a record 3.1 GW, for the global top 10, with about 2 GW commissioned in 2017, for and Belgium (0.2 GW). 63 After a two-year lull, a total approaching 15.8 GW, with an additional 1.9 GW awaiting a year-end total approaching 12.8 GW. 77 Germany increased its offshore and following the cancellation of 0.3 GW-worth of construction connection at year’s end. capacity by nearly one-third, Finland added its first commercial licences from previous auctions (at the request of developers), 64 In the absence of auctions, offshore plant, France installed a 2 MW floating demonstrator Brazil resumed auctions in late 2017. private contracts with very competitive PPA prices helped to turbine, and Denmark decommissioned the world’s first offshore 78 65 Wind power accounted for 7.4% of Brazil’s Hywind Scotland (30 MW), the world’s first drive installations. wind farm (5 MW). 66 79 electricity generation in 2017 (up from 5.9% in 2016). commercial floating project, was commissioned in October. Offshore wind had a record year with 4.3 GW added, all in Europe and Asia 112

113 03 Wind Power Offshore Global Capacity by Region, 2007-2017 FIGURE 36. Gigawatts 20 18.8 North America 16 Asia 14.4 Europe 12.2 12 MARKET AND INDUSTRY TRENDS 8.7 8 7.0 5.4 4.1 4 3.2 2.2 1.5 1.1 0 2009 2008 2007 2017 2015 2014 2013 2012 2016 2010 2011 Source: See endnote 87 for this section. China’s offshore market started to take off in 2017. The country saw was believed to be the first UK transfer of an entire wind energy record installations for a total of nearly 2.8 GW at year’s end, and a project (6.9 MW) from a commercial developer to community 80 90 After lagging for several years due further 5 GW under construction. ownership. The share of citizen ownership or investment 91 to regulatory and jurisdictional issues, China’s offshore sector is on remains high in Germany but has declined in recent years. 81 track to meet a national target of 5 GW by 2020. Elsewhere in Asia, In 2017, Germany changed its tendering conditions to enable capacity was added in Chinese Taipei (8 MW), which commissioned participation of community projects (with lower access barriers), its first offshore project, in Japan (5 MW), which launched its first and most capacity from the first three onshore auctions was 82 offshore tender, and in the Republic of Korea (3 MW). awarded to projects that qualified as citizen energy. However, concerns arose that some projects might not be built and that Although the United States added no new capacity, as of late 2017 many successful applicants were not traditional community there were 14 proposed offshore wind projects in various stages 92 entities (i.e., owned by local citizens). of development (totalling over 12.5 GW) spanning 10 states, and 83 i 5 northeastern states had enacted supporting policies. In Australia, turbines continued to be used for a variety of Small-scale 84 plans were announced for a 2 GW project off the coast of Victoria. applications (both on- and off-grid), including defence, rural electrification, water pumping and desalination, battery charging, A total of 17 countries (11 in Europe) had offshore wind capacity telecommunications, and increasingly to displace diesel in by the end of 2017, although 4 of these had only demonstration 93 85 remote locations. The global market slowed in 2016 (latest The United Kingdom maintained its lead for total projects. data available) relative to 2015, with total capacity up an estimated capacity, with 6.8 GW at year’s end, followed by Germany ii 94 8.3%. small-scale turbines, or over Approximately 1 million (5.4 GW), China (2.8 GW), Denmark (1.3 GW) and the Netherlands 86 1 GW, were operating worldwide by year’s end (up from (1.1 GW). Europe was home to about 84% of global offshore 95 935 MW at end-2015). capacity (down from 88% in 2016), with Asia accounting for 87 nearly all the rest. ( p See Figure 36.) While most countries have some small-scale turbines in use, the majority of units and of capacity operating at the end of 2016 The number of community and citizen-owned wind power 88 was in China (459 MW), the United States (233 MW) and the projects also expanded during 2017. Community wind power 96 United Kingdom (154 MW). Capacity sales in the top markets projects are on the rise in Japan, inspired by earlier movements in 89 have contracted in recent years in response to obstacles The United Kingdom saw in July what Denmark and Germany. i Small-scale wind systems generally are considered to include turbines that produce enough power for a single home, farm or small business (keeping in mind that consumption levels vary considerably across countries). The International Electrotechnical Commission sets a limit at approximately 50 kW, and the World Wind Energy Association (WWEA) and the American Wind Energy Association define “small-scale” as up to 100 kW, which is the range also used in the GSR; however, size varies according to the needs and/or laws of a country or state/province, and there is no globally recognised definition or size limit. For more information, see, for example, WWEA, 2017 Small Wind World Report Summary (Bonn: June 2017), http://www.wwindea.org/wp-content/uploads/filebase/ small_wind_/SWWR2017-SUMMARY.pdf. ii Total number of units does not include some major markets, including India, for which data were not available. Taking this into account, more units are estimated to be operating worldwide, from WWEA, Small Wind World Report 2018 (Bonn: forthcoming, 2018). 113

114 RENEWABLES 2018 GLOBAL STATUS REPORT such as policy changes, an economic slowdown (China) and WIND POWER INDUSTRY 97 China saw a steady decline from competition with solar PV. The big story of 2017 was tumbling bid prices for wind power its 2009-2011 high until 2016, when its market size recovered to – both onshore and offshore – in several auctions around the 98 The UK market, in contrast, was down significantly 2012 levels. 106 This was due to a number of factors, including technology world. in 2016 alongside caps on deployment and reduced payments innovation and scale, expectations of continued technology under the UK FIT, and the US market (capacity) fell nearly 50% advances, lower financing costs (especially for European that year, to its lowest level since at least 2012 (although unit offshore wind power) due to lower perceived risk, as well as fierce sales increased), due largely to a general downward trend in 107 Wind energy has emerged as one of competition in the industry. 99 public incentives. the most competitive ways to add new generating capacity, and During 2017, an estimated 561 turbines (totalling around is less expensive than existing fossil power in a small but growing 100 108 Germany dismantled the 0.6 GW) were decommissioned. However, increased competition and the number of markets. largest number and capacity of turbines (all onshore), followed scramble for market share in 2017 came at the expense of profits by Denmark, the Netherlands, the United States, Japan, Latvia, throughout the supply chain, with several large manufacturers 101 109 Finland, Chinese Taipei and Belgium. seeing their turbine orders increase but their profits decline. Wind power is providing a significant share of electricity in a Auctions were held in more than 15 markets during 2017, and a growing number of countries. In 2017, wind energy covered total of about 25 GW of wind capacity contracts was awarded 110 an estimated 11.6% of EU annual electricity consumption and In markets as diverse as Canada, (including 5 GW offshore). ii equal or higher shares in at least 8 EU member states, including for onshore wind power India, Mexico and Morocco, bid prices i 111 of its annual electricity consumption Denmark, which met 43.4% A Mexican tender late in the were close to USD 30 per MWh. 102 At least 13 countries around the world – with wind power. year saw prices below USD 20 per MWh – a world record low and 112 including Costa Rica, Nicaragua and Uruguay – met 10% or Germany down 40-50% relative to Mexico’s tenders in 2016. 103 more of their annual electricity consumption with wind power. also saw a national record low of EUR 38 per MWh (around 113 Uruguay saw its share of generation from wind power increase USD 45 per MWh) in November 2017. more than four-fold in just three years, from 6.2% in 2014 to 26.3% Reductions in bid prices in the offshore sector were particularly in 2017, and Nicaragua generated over 15% of its electricity with remarkable. Tenders in Germany (April) and the Netherlands 104 Globally, wind power capacity in operation by the wind power. (announced in December) in 2017 attracted “zero-subsidy” end of 2017 was enough to account for an estimated 5.6% of total bids (to be paid market prices only) for offshore projects due to 105 electricity generation. 114 Although no price come online in 2024 and 2022, respectively. Wind power accounted for 50.2% of net generation in Denmark during 2017 (see endnote 102). There is a difference between generation i (electricity produced within a country’s borders) and consumption due to imports and exports of electricity and to transmission losses. ii Note that bid prices do not necessarily equate with costs. Also, energy costs vary widely according to wind resource, project and turbine size, regulatory and fiscal framework, the cost of capital and other local influences. FIGURE 37. Market Shares of Top 10 Wind Turbine Manufacturers, 2017 16.6% 16.7% 7.6% GE (USA) Siemens Gamesa Vestas (Spain) (Denmark) 2% 6.0% 6.6% 16. 10.5% Goldwind (China) Next 4 companies Envision (China) Enercon (Germany) Nordex Acciona (Germany) 5.2% Mingyang (China) 4.7% 19.6% Senvion (Germany) 3.7% Others Suzlon (India) 2.6% Note: Total does not add up to 100% due to rounding. Source: FTI Consulting. See endnote 125 for this section. 114

115 03 subsidy will be provided, the governments of both countries Gamesa earlier in the year and to the company’s presence in 127 China’s Goldwind remained in third place, pledged to cover grid connection costs; the Dutch government 35 countries in 2017. with domestic projects accounting for 90% of commissioned also shouldered some of the development risk and committed 115 128 US manufacturer GE dropped two steps to fourth, In September, turbines. to establishing a national floor price for carbon. followed by Germany’s Enercon, which had a record year thanks a UK auction saw bids as low as GBP 57.5 (USD 77.6) per 129 Most Chinese manufacturers saw to a strong domestic market. MWh (including the costs of transmission assets) – half the their volumes drop in 2017 due to the rising market shares of price of contracts awarded for an offshore auction in 2015 – 130 116 In the young US Goldwind and Envision in a shrinking domestic market. for projects to be completed in 2022-2023. offshore market, the state of Maryland offered two developers While most wind turbine manufacturing takes place in China, the USD 132 per MWh (for 368 MW to be online in 2020), 45% below EU, India and the United States, the manufacture of components, MARKET AND INDUSTRY TRENDS the price of generation from the first US offshore wind farm such as blades, and the locations of company offices are 117 (Block Island), which was completed in 2016. spreading to be close to growing wind power markets, as While the global shift to auctions is driving down the cost companies seek to reduce transport costs and to access new 131 Goldwind is expanding beyond China as of wind power to utilities and ratepayers, it is causing fierce sources of revenue. demand slows at home; in 2017 it was the first Chinese turbine competition in the industry, forcing turbine manufacturers to 132 European turbine manufacturer to move into the Philippines. look for ways to further reduce their costs and contributing to 118 Several leading manufacturers makers – including Vestas, Nordex and Senvion – have invested consolidation in the industry. 133 Siemens Gamesa opened around the world reduced jobs and closed factories during in India, drawn by rapid growth. its third blade factory in India and launched Africa’s first blade 2017, and many small or medium-sized turbine vendors were 134 119 LM Windpower (Denmark; part of GE) German factory in Morocco. acquired, filed for insolvency or exited the industry. began production at a new blade manufacturing plant in Turkey manufacturer Senvion announced a restructuring programme 120 that included job cuts and factory closures, mostly in Germany. to supply the rapidly growing market there, and opened its 135 Vestas announced Nordex (Germany) launched and completed a programme to fourth blade factory in northeastern China. plans to build its first blade manufacturing plant in the Russian reduce costs and invested in the development of new projects 121 136 Suzlon Energy (India) exited the Brazilian Manufacturers and service providers also are Federation. to strengthen sales. 122 137 Dutch turbine manufacturer Lagerwey was acquired market. expanding into Argentina, Australia and the United States. 123 Siemens (Germany) and by German manufacturer Enercon. Repowering has become a billion-dollar annual market, particularly Gamesa (Spain) finalised their merger to create one of the world’s in Europe and increasingly leading wind power players, Siemens Gamesa Renewable Energy 138 in the United States. 124 The global shift (Spain), and discontinued production of Adwen turbines. While most repowering to tenders is As competition intensified, the world’s top 10 turbine manufacturers involves the replacement captured an increasing share of the market (nearly 80%, up of old turbines with fewer, driving down 125 p Vestas (Denmark) barely ( See Figure 37.) from 75% in 2016). larger, taller, and more- the cost maintained its position as the largest supplier of wind turbines efficient and reliable 126 of wind power to utilities Siemens Gamesa thanks to the company’s wide global presence. machines at the same and ratepayers followed closely, due largely to the merger of giants Siemens and site, some operators are 115

116 RENEWABLES 2018 GLOBAL STATUS REPORT switching even relatively new machines for larger and upgraded market, and lowest in ii 155 Offshore wind power turbines (including software improvements) or are replacing (2.1 MW). Asia-Pacific 139 developers are relying specific components, such as blades (partial repowering). Significant differences in on a dramatic increase Germany repowered an estimated 338 turbines with a total capacity average turbine ratings in turbine scale – of around 1 GW, and the United Kingdom (18 MW) and Portugal can occur within regions; 140 machines taller than the In the United States, the (10 MW) also repowered some projects. on land in Europe, extension of federal tax credits – enabling project owners to extend differences result from Eiffel Tower turbine lifetime, increase output and reduce O&M costs, while regulatory restrictions on - to drive down their costs also qualifying for another decade of credits – has incentivised height, age of projects 141 An estimated 2.1 GW of (partial) repowering of existing assets. 156 and/or wind speeds. 142 US capacity was partially repowered during 2017. Offshore, developers In response to rapidly falling offshore wind power prices in Europe, are taking advantage of larger turbines as soon as they interest is rising elsewhere, prompting European manufacturers 157 The size of turbines as well as projects has become available. and developers to turn to new offshore markets, particularly increased rapidly in order to reduce costs through scale and 143 For example, Siemens Gamesa, Asia and the United States. 158 Larger turbines mean that fewer foundations, standardisation. Enercon, Ørsted (formerly Dong) and others have opened offices converters, cables and other resources are required for the same in Chinese Taipei to meet onshore demand and to help launch output; this translates into faster project development, reduced 144 the country’s offshore sector. 159 Across risk, lower O&M costs and overall greater profitability. Non-wind companies also continued to move further into the wind Europe, the average capacity of newly installed turbines offshore power sector. Electric utilities acquired wind power projects and was 5.9 MW in 2017, up 23% relative to 2016 and double compared 160 service companies, created wind power subsidiaries, established to 10 years earlier. partnerships to develop and operate wind power plants, and In 2017, Goldwind unveiled a new platform for 6 MW-plus offshore 145 Danish utility Dong Energy (for expanded into new regions. turbines suitable for low-, medium- and high-wind sites; MHI Danish Oil and Natural Gas) sold its oil and gas business to Vestas Offshore Wind unveiled an up-rated version of its 8 MW focus on offshore wind power and bioenergy, and changed its turbine that can achieve a rated power of 9 MW, and followed that name to Ørsted to better reflect its transformation away from with a 9.5 MW model only four months later; Senvion (Germany) 146 Swedish utility Vattenfall announced plans to invest fossil fuels. announced plans for a machine 10 MW or larger by 2022; and USD 1.9 billion in wind power during 2017-2018, highlighting a Siemens Gamesa also was working to greatly increase the 147 Russian nuclear power shift from fossil fuels to renewables. 161 In early 2018, GE unveiled capacity of turbines for offshore use. company Rosatom created a subsidiary for its wind power plans to invest more than USD 400 million over the next few years business and signed an agreement with Lagerwey to lay the 162 Looking to the future, developers are to develop a 12 MW turbine. 148 foundation for a wind power industry in the Russian Federation. relying heavily on technological development, including dramatic In the United States, utilities continued to sign PPAs for wind increases in turbine scale – machines taller than the Eiffel Tower power and increasingly turned their sights to owning and – to drive down their costs, further fuelling the push for these 149 operating projects themselves. 163 enormous machines. Large oil and gas companies – including Shell (Netherlands), Such changes have driven capacity factors significantly higher Statoil (Norway), Total (France) and Eni (Italy) – as well as within given wind resource regimes, onshore and offshore, creating companies servicing the oil and gas industry, continued moving 164 further opportunities in established markets as well as new ones. (back) into the wind (and solar) power sector to secure new In the United States, for example, the average capacity factor of sources of future revenue, and even challenged leading utility 150 projects constructed in 2014-2015 (latest data available) was Their primary interest is in companies in competitive auctions. 151 42.5%, compared to an average of 32.1% for projects built between the offshore industry, where their expertise is most transferable. 165 In Brazil, as new projects with better technology 2004 and 2011. This development is apparent in Europe, where the oil and gas 152 came online, the average capacity factor for all operational wind industry is winding down in some areas, and in the United States. farms rose from 38.8% in 2015 to over 40.9% in 2016, and to 42.9% In 2017, the general trend continued towards larger machines – 166 Capacity factors are rising offshore as well with the in 2017. including longer blades, larger rotor size and higher hub heights 167 evolution to taller, larger machines. – as turbine manufacturers aimed to boost output and gain or 153 Most large manufacturers are focusing on tested and well-proven By year’s end, 7 of the top 10 turbine maintain market share. i turbine platforms that provide flexibility and enable them to more for use manufacturers had launched 4 MW turbine platforms easily develop turbines for specific markets while minimising onshore, and the average size of turbines delivered to market in 168 154 Several new wind turbine models, for low and high wind costs. 2017 was more than 11% larger than in 2016, at more than 2.4 GW. locations, entered the market in 2017, including many adapted for By region, average turbine sizes (including onshore and offshore) 169 were highest in Europe (3.1 MW), due in part to the large offshore specific country markets. Turbine “platforms” refers to a basic “model” of turbine, which enables manufacturers to standardise components such as rotors, generators, towers i or hubs for use across different wind turbines, thereby minimising the number of different components required. This streamlines the manufacturing and installation process, helping to reduce costs for manufacturers and to drive down the levelised cost of energy (LCOE). See endnote 154. Asia-Pacific reflects the region provided in the original source and differs from the regional definitions across the rest of the GSR, which can be found ii at http://www.ren21.net/GSR-Regions. 116

117 03 MARKET AND INDUSTRY TRENDS the turbine tower foundations); Lagerwey (Germany) announced Wind turbine manufacturers expanded their activities in digital solutions, as well as solar PV and energy storage, to tap into plans to build a turbine that will produce hydrogen directly; and GE 170 new revenue streams. In 2017, GE unveiled software that partnered with US-based Microsoft to integrate batteries into its 178 boosts productivity and streamlines repairs, and Vestas began turbines for a project in Ireland. 171 using operational efficiency software to help reduce costs. Other advances in 2017 include: Nordex launched a solution Several manufacturers, developers and operators have begun to reduce sound levels while increasing turbine yield; Vestas using drones to inspect, and even clean, wind turbines, thereby released a concept for a new tower design that will require less 172 improving worker safety and reducing costs. As with solar PV, material, thereby facilitating tower transport and reducing costs; O&M has become a rapidly growing sector in the wind industry and Lagerwey began testing a climbing crane that builds a turbine due to the increased number of turbines in operation and to the 179 Innovations also continued in blade while scaling its tower. 173 need to minimise down-time. manufacturing processes and materials to improve their efficiency, Also in 2017, Siemens Gamesa won two contracts in India to develop 180 increase annual production and reduce wind energy costs. large-scale solar PV projects, Brazil’s largest wind company, CPFL A significant advance in the offshore sector is towards the Energias Renovaveis, set its sights on dominating the country’s deployment of floating turbines, which offer the potential to solar industry, and several companies around the world – including expand the areas where offshore wind power is viable and GE, Goldwind, Siemens Gamesa and Vestas – focused on hybrid economically attractive because they can be placed where winds 174 wind-solar PV projects (some also with storage). For example, are strongest and most consistent, rather than where the seafloor Siemens Gamesa announced its first hybrid contract for a solar 181 The first commercial floating wind farm, topography is suitable. PV-wind power facility in India, and Vestas began constructing the i , began operation in Statoil’s 30 MW Hywind Scotland project first phase of the Kennedy Energy Park, Australia’s first utility-scale 182 175 Challenges that remain for 2017 near the coast of Aberdeen. wind, solar PV and energy storage hybrid project. the floating sector include the development of an efficient supply Developers and increasingly manufacturers are incorporating 183 chain and narrowing the range of potential platform designs. 176 battery storage into wind energy projects onshore and offshore. Even so, floating turbines are moving beyond the demonstration To increase capacity factors and improve returns, Vestas has phase and attracting significant investment, with a pipeline of partnered with several energy storage companies to explore 184 projects in place in Europe and plans for projects elsewhere. 177 potential solutions for wind power-plus-storage. In addition, The economics of offshore wind power have improved far manufacturers are developing innovative new technologies: in 185 A new generation of turbines, faster than experts expected. 2017, Siemens Gamesa began construction of a wind-to-heat maturation of the supply chain, cost reductions in industry energy storage system; Max Bögl (Germany) completed four turbines integrated with pumped storage (including reservoirs in logistics and shipping, as well as increased competition and i The turbines used for Statoil’s 30 MW Hywind Scotland project are built much like floating offshore oil drilling rigs, with the platforms anchored to the seabed. See endnote 182. 117

118 RENEWABLES 2018 GLOBAL STATUS REPORT Whether large- or small-scale, as turbines age and are repowered experience have reduced prices dramatically and made offshore 186 In 2017, building on or dismantled the result is significant amounts of obsolete wind power competitively priced in Europe. an agreement signed in 2016 by 10 northern European countries components, such as blades. The rapid evolution of turbine designs to co-operate to reduce the cost of installing turbines offshore, and the competitive marketplace are shortening turbine life cycles Belgium, Denmark and Germany supported a pledge to install because products are quickly replaced with newer and larger 187 195 These The industry has begun to address this issue, with 60 GW of new offshore capacity within the next decade. machines. three countries joined with 25 companies in a pledge to work several companies working to reuse and recycle turbine hardware. 188 together to increase investment and further reduce costs. In the United States, for example, GE works with a company that New offshore markets still face challenges that Europe and China recycles fiberglass and is converting used turbine blades into new 196 In Denmark, upon decommissioning of the Vindeby have addressed, including building supply chains and associated products. offshore wind farm, Ørsted planned to use the blades as a noise infrastructure such as ports, rail links and installation vessels, as well 189 197 In Spain, a In 2017, the United States barrier and to use other components as spare parts. as technology for electrical connections. pilot initiative was launched in 2017 to recycle turbine blades that saw increased interest from European as well as domestic oil and 198 Across Europe, gas companies in the development of infrastructure, and particularly are faulty or damaged, or that have been retired. 190 a demonstration project was initiated to develop new design and installation vessels, for a domestic offshore wind power industry. manufacturing processes that make it easier to recycle and extend Small-scale wind turbine production continued to be concentrated the life cycle of composite products, which are used for numerous in just a few regions, with China, Germany, the United Kingdom 199 applications including wind turbine blades. and the United States accounting for more than half of global 191 manufacturing; developing countries still play a minor role. The number of producers in China and the United States has Table 3 on the following pages for a summary See Sidebar 2 and p declined significantly in recent years, with manufacturers relying of the main renewable energy technologies and their characteristics 192 In China, manufacturing, sales and heavily on export markets. 200 and costs. employment related to small-scale wind turbines declined sharply 193 In the United States, 12 companies in 2017 relative to 2016. (9 of which were US-based) reported sales during 2016 (latest data available), compared with 31 companies in 2012; in 2016 alone, at least 5 small-scale wind turbine manufacturers (4 US-based and 194 1 Canadian) changed ownership or went out of business. Floating wind turbines offer the potential to expand the areas where offshore wind power is viable and economically attractive 118

119 03 SIDEBAR 2. Renewable Electricity Generation Costs in 2017 increased from 27% to 30%. The LCOE of onshore wind power The average cost of electricity – measured in unsubsidised projects in 2017 fell to as low as USD 30 per MWh, with a global levelised cost of electricity (LCOE) – from renewable power weighted average of USD 60 per MWh. generation technologies either is already very competitive or is continuing to fall to competitive levels for new projects What has been truly remarkable, however, is the continued cost i commissioned in 2017 . Costs of the more mature geothermal, declines for solar PV. Driven by an 81% decrease in solar PV bio-power and hydropower technologies are relatively stable. module prices since the end of 2009, along with reductions in Most of the recent reductions in cost have been associated with balance of system costs, the global weighted average LCOE MARKET AND INDUSTRY TRENDS solar PV and wind power technologies; after years of steady of utility-scale solar PV fell 73% between 2010 and 2017, to iv cost declines, solar and wind power are becoming ever more . The global weighted-average capacity USD 100 per MWh competitive technologies for meeting new generation needs. factor of commissioned utility-scale solar PV has risen since 2010, although this increase has been driven more by a growing share Three key drivers are increasingly important for reducing the of projects in the sunbelt than by technology improvements. As cost of solar and wind power generation. These are: competitive a result of all these factors, solar PV is increasingly competing procurement; a large and growing base of experienced head-to-head with conventional power sources, and doing so and internationally active project developers; and ongoing without financial support in a growing number of locations. technology improvements. Regulatory and institutional frameworks are transitioning to set the stage for competitive Offshore wind power and concentrating solar thermal power procurement of renewable power generation. In response, (CSP), although still at relatively early stages in deployment, both project developers are bringing to the international market saw their costs fall between 2010 and 2017 to a global weighted their significant experience as well as their increasing access to average LCOE of USD 140 per MWh and USD 220 per MWh, international capital markets. respectively. These values are still relatively high, but the cost reduction potential for these technologies is strong. Particularly for solar and wind power, technology advances are The years 2016 and 2017 saw record low auction prices for solar improving efficiencies in manufacturing, reducing installed costs PV in Abu Dhabi and Dubai in the United Arab Emirates, as and improving the performance of power generation equipment. well as in Chile, Mexico, Peru and Saudi Arabia. Similarly, very Innovations include larger wind turbines with greater swept low auction results for onshore wind power in countries such areas, which enable them to harvest more energy from the as Brazil, Canada, Germany, India, Mexico and Morocco have same resource, and new solar PV cell architectures, which offer made onshore wind power one of the most competitive sources greater efficiency. At the same time, the maturity and the proven of new generating capacity in those locations. For CSP and track record of these renewable technologies are lowering offshore wind power, 2016 and 2017 were breakthrough years: perceived project risk, which greatly reduces the cost of capital. auction results for projects that will be commissioned in 2020 Bio-power, hydropower and geothermal power are all mature and beyond signal a step-change, with the costs of electricity technologies that exhibit fairly stable cost profiles, although under these contracts being significantly lower than the costs of innovation in these technology groups continues. The estimated projects commissioned in 2017. costs of these technologies, as well as of onshore wind power The lowest auction prices for renewable power reflect a nearly projects commissioned in 2017, were largely within the range of ii constant set of key competitiveness factors. These include: a fossil fuel-fired electricity generation costs. Indeed, the LCOE favourable regulatory and institutional framework; low offtake for these technologies was estimated to be at the lower end of iii and country risks; a strong, local civil engineering base; the LCOE range for fossil fuel options . favourable taxation regimes, low project development costs; The global weighted average LCOE of new hydropower plants and excellent renewable energy resources. commissioned in 2017 was around USD 50 per MWh. For new Projects contracted via competitive procurement in 2017 may bio-power and geothermal power projects, the global average represent a relatively small subset of renewable power capacity was approximately USD 70 per MWh. additions over the next few years, and trends in auction results Onshore wind power has become one of the most competitive may not be representative of LCOE trends at a project level. sources of new generation. Wind turbine prices have fallen Nevertheless, based on the auction prices in 2017 and 2018, the 37-56% since their peaks in 2007-2010, depending on the outlook for solar and wind electricity prices to 2020 presages market. In combination with more modest reductions in the lowest yet seen for these modular technologies, which can balance-of-project costs, total installed costs for onshore wind be deployed in every country of the world. power fell by a fifth between 2010 and 2017; at the same time, the global weighted average capacity factor for new projects Source: IRENA. See endnote 200 for this section. This sidebar discusses utility-scale power generation costs and is based on data for 62 GW of renewable power generation capacity commissioned i in that year. ii All references to LCOE in this sidebar exclude the impact of any financial support policies, so the cost to final consumers will be lower than quoted here in markets where this support is material. iii In 2017, fossil fuel-fired power generation costs fell in the range USD 50 to USD 170 per MWh depending on the fuel and country, although higher values exist in countries reliant on diesel-fired electricity generation, notably island states. iv The decline in module prices has accounted for about two-thirds of the cost reduction over this period, with balance-of-system cost reductions accounting for the rest. 119

120 RENEWABLES 2018 GLOBAL STATUS REPORT Status of Renewable Electricity Generating Technologies, Costs and Capacity Factors, 2017 TABLE 3. 0.30 0 0.20 0.05 0.10 0.25 0.15 min max wa Capacity Factor R Levelised Cost of Energy R USD/kWh Total Investment Cost min max wa R USD/kW BIO-POWER Africa Africa 0.46 0.9 5,579 1,525 2,755 0.62 Asia Asia 1,910 0.14 0.93 0.71 736 5,972 Central America and the Caribbean Central America and the Caribbean 2,295 1,696 0.27 0.8 0.6 1,450 Eurasia Eurasia 1,344 0.83 Europe Europe 507 7, 95 7 3,462 0.18 0.98 0.84 Middle East Middle East 0.64 3,284 4,272 3,857 0.46 0.92 North America North America 3,718 0.84 0.96 0.16 510 7, 375 Oceania Oceania South America South America 0.96 0.2 1,695 7,505 562 0.64 China China 920 5,972 1,527 0.33 0.93 0.64 India India 736 5,497 1,455 0.63 0.9 0.73 United States United States 0.94 1,668 10,240 4,400 0.93 0.96 0.20 0.15 0.30 0.25 R R Levelised Cost of Energy Total Investment Cost R USD/kW min max wa max wa 0 0.10 0.05 Capacity Factor min USD/kWh GEOTHERMAL Africa Africa 3 ,745 7, 689 0.8 0.92 0.87 5,101 Asia Asia 0.85 0.9 0.41 3,055 8,736 1,867 POWER Central America and the Caribbean Central America and the Caribbean 3,537 0.57 Eurasia Eurasia 0.8 3,259 Europe Europe 3,613 8,919 5,209 0.6 0.8 0.66 Middle East Middle East North America North America 0.8 2,029 6,720 3,422 0.924 0.87 Oceania Oceania 4,000 0.8 0.8 0.8 4,440 3,783 South America South America 4,348 4,348 0.8 4,348 0.95 0.83 China China India India United States United States 0.8 5,162 6,720 5,328 0.8 0.8 0.30 0.25 0.20 0.15 min R wa max Levelised Cost of Energy R USD/kWh Total Investment Cost 0 USD/kW min max wa Capacity Factor R 0.05 0.10 HYDRO Africa Africa 0.86 0.3 2,114 6,730 532 0.59 Asia Asia 5,666 1,316 0.16 0.82 0.46 483 POWER Central America and the Caribbean Central America and the Caribbean 1,650 4,474 3,404 0.32 0.55 0.53 Eurasia Eurasia 2,528 4,082 0.72 0.5 1,499 0.32 Europe Europe 570 7,70 0 0.16 0.58 0.29 2,080 Middle East Middle East 0.34 1,971 1,657 0.53 0.31 1,475 North America North America 1,051 5,195 2,395 0.31 0.68 0.49 Oceania Oceania 3,727 3,729 3,729 0.31 0.5 0.45 South America South America 2,022 1,026 5,824 0.34 0.81 0.61 China China 798 1,647 990 0.42 0.53 0.51 India India 0.75 483 2,859 1,163 0.16 0.41 United States United States 0.5 1,051 4,228 1,351 0.31 0.37 0.20 0.15 0.30 0.25 0.05 0.10 R min max wa Levelised Cost of Energy USD/kWh Total Investment Cost R 0 USD/kW min max wa Capacity Factor R SOLAR PV Africa Africa 2,172 0.14 0.28 0.18 805 4,735 Asia Asia 4,212 1,248 0.1 0.23 0.17 832 Central America and the Caribbean Central America and the Caribbean 2,810 1,688 0.16 1,319 0.19 0.17 Eurasia Eurasia 1,463 3,551 1,904 0.1 0.18 0.14 Europe Europe 921 2,330 1,294 0.11 0.18 0.12 Middle East Middle East 0.22 0.35 1,201 2,487 3,850 0.18 North America North America 4,120 0.14 0.32 0.2 955 2,084 Oceania Oceania 1,550 1,924 0.2 0.26 0.22 2,535 South America South America 823 3,879 2,044 0.12 0.34 0.2 China China 1,005 1,873 1,058 0.1 0.19 0.17 India India 661 1,786 971 0.15 0.22 0.19 United States United States 2,215 850 0.2 0.14 0.32 1,869 LCOE weighted average wa = weighted average = = LCOE range 120

121 03 Levelised Cost of Energy R USD/kWh Total Investment Cost R USD/kW min max wa Capacity Factor R min max wa Africa Africa 1,525 5,579 2,755 0.46 0.9 0.62 Asia Asia 736 5,972 1,910 0.14 0.93 0.71 Central America and the Caribbean Central America and the Caribbean 1,450 0.8 1,696 2,295 0.6 0.27 Eurasia Eurasia 0.83 1,344 Europe Europe 7, 95 7 3,462 0.18 0.98 0.84 507 Middle East Middle East 3,857 0.46 0.92 0.64 3,284 4,272 North America North America 7, 375 3,718 0.16 0.96 0.84 510 Oceania Oceania MARKET AND INDUSTRY TRENDS South America South America 1,695 0.2 0.96 0.64 7,505 562 China China 920 0.33 0.93 0.64 1,527 5,972 India India 5,497 1,455 0.63 0.9 0.73 736 United States United States 0.94 0.96 0.93 4,400 10,240 1,668 wa max min USD/kW R Total Investment Cost USD/kWh R Levelised Cost of Energy wa max min R Capacity Factor Africa Africa 3 ,745 0.87 0.92 0.8 5,101 7, 689 Asia Asia 0.41 1,867 8,736 3,055 0.9 0.85 Central America and the Caribbean Central America and the Caribbean 3,537 0.57 Eurasia Eurasia 3,259 0.8 Europe Europe 5,209 8,919 3,613 0.6 0.8 0.66 Middle East Middle East North America North America 0.87 0.924 0.8 3,422 6,720 2,029 Oceania Oceania 4,000 3,783 0.8 4,440 0.8 0.8 South America South America 4,348 0.95 4,348 0.83 4,348 0.8 China China India India United States United States 0.8 5,162 6,720 5,328 0.8 0.8 R USD/kW min max R Levelised Cost of Energy wa Capacity Factor R min Total Investment Cost max wa USD/kWh Africa Africa 0.59 532 6,730 2,114 0.3 0.86 Asia Asia 483 5,666 1,316 0.16 0.82 0.46 Central America and the Caribbean Central America and the Caribbean 1,650 3,404 0.32 0.55 0.53 4,474 Eurasia Eurasia 1,499 4,082 2,528 0.32 0.72 0.5 Europe Europe 0.29 570 7,70 0 2,080 0.16 0.58 Middle East Middle East 1,971 1,657 0.31 1,475 0.34 0.53 North America North America 0.49 5,195 0.68 0.31 2,395 1,051 Oceania Oceania 3,727 3,729 3,729 0.45 0.5 0.31 South America South America 1,026 0.61 0.81 0.34 2,022 5,824 China China 798 1,647 990 0.42 0.53 0.51 India India 2,859 1,163 0.16 0.75 0.41 483 United States United States 0.5 1,051 4,228 1,351 0.31 0.37 Capacity Factor R min max wa Levelised Cost of Energy R USD/kWh Total Investment Cost R USD/kW min max wa Africa Africa 4,735 0.14 0.28 0.18 805 2,172 Asia Asia 832 1,248 0.1 0.23 0.17 4,212 Central America and the Caribbean Central America and the Caribbean 1,319 2,810 1,688 0.16 0.19 0.17 Eurasia Eurasia 1,463 3,551 1,904 0.1 0.18 0.14 Europe Europe 921 2,330 1,294 0.11 0.18 0.12 Middle East Middle East 0.35 0.22 0.18 1,201 3,850 2,487 North America North America 4,120 0.14 0.32 0.2 955 2,084 Oceania Oceania 1,550 1,924 0.2 0.26 0.22 2,535 South America South America 823 3,879 2,044 0.12 0.34 0.2 China China 1,005 1,873 1,058 0.1 0.19 0.17 India India 661 1,786 971 0.15 0.22 0.19 United States United States 1,869 0.32 2,215 850 0.2 0.14 Source: IRENA. See endnote 200 of Wind Power section in this chapter. 121

122 RENEWABLES 2018 GLOBAL STATUS REPORT Status of Renewable Electricity Generating Technologies, Costs and Capacity Factors, 2017 (continued) TABLE 3. wa USD/kW min max wa Capacity Factor R min max USD/kWh R Levelised Cost of Energy Total Investment Cost R 0.6 0.5 0.3 0.4 0.1 0.2 0 CONCENTRA- Africa Africa 0.36 0.39 0.53 6,850 7, 8 41 11,300 Asia Asia 0.21 7,475 3,053 0.54 4,110 0.28 TING SOLAR Central America and the Caribbean Central America and the Caribbean THERMAL Eurasia Eurasia Europe Europe 8,970 5,982 0.32 0.41 0.23 7,4 02 POWER (CSP) Middle East Middle East 6,220 0.24 6,373 6,680 0.39 0.29 North America North America 0.52 0.35 0.27 7,0 02 7,753 6,373 Oceania Oceania 0.23 6,673 6,673 0.11 6,672 0.12 South America South America China China 0.29 2,550 3,450 3,223 0.28 0.28 India India 3,053 7,475 4,228 0.21 0.54 0.28 United States United States 0.35 6,373 7,753 7,0 02 0.27 0.52 0.20 0.15 0.30 0.25 wa Total Investment Cost R USD/kW min max Capacity Factor max Levelised Cost of Energy 0 0.10 0.05 wa R USD/kWh R min WIND POWER Africa Africa 2,040 0.19 0.48 0.37 2,850 1,485 Asia Asia 1,044 1,221 0.18 3,882 0.25 0.46 ONSHORE Central America and the Caribbean Central America and the Caribbean 2,184 0.54 0.24 3,265 1,981 0.33 Eurasia Eurasia 1,032 0.24 2,002 0.37 1,605 0.49 Europe Europe 0.29 0.51 0.14 1,868 3,702 1,151 Middle East Middle East 1,320 0.14 0.29 0.2 916 1,857 North America North America 1,270 3,001 1,718 0.22 0.51 0.4 Oceania Oceania 2,124 1,184 3,169 0.33 0.23 0.43 South America South America 0.4 0.55 1,829 2,909 972 0.26 China China 989 1,197 0.29 0.23 0.25 1,414 India India 0.24 850 1,282 1,097 0.19 0.33 United States United States 0.44 1,381 2,534 1,648 0.23 0.41 0.30 0 0.25 0.10 0.05 0.20 0.15 Capacity Factor R Levelised Cost of Energy R USD/kWh Total Investment Cost USD/kW min wa max min R max wa WIND POWER Africa Africa Asia Asia 3,260 1,890 0.23 0.29 0.28 5,055 OFFSHORE Central America and the Caribbean Central America and the Caribbean Eurasia Eurasia Europe Europe 4,355 6,480 0.38 0.27 0.55 2,698 Middle East Middle East North America North America 0.48 9,667 Oceania Oceania South America South America China China 0.29 1,890 4,258 3,249 0.23 0.28 India India United States United States 9,667 0.48 LCOE weighted average wa = weighted average = LCOE range = 122

123 03 Levelised Cost of Energy USD/kWh Total Investment Cost R USD/kW min max wa Capacity Factor R min max wa R Africa Africa 6,850 0.53 0.39 11,300 0.36 7, 8 41 Asia Asia 0.54 0.28 7,475 4,110 3,053 0.21 Central America and the Caribbean Central America and the Caribbean Eurasia Eurasia Europe Europe 0.41 5,982 8,970 7,4 02 0.23 0.32 Middle East Middle East 0.24 6,220 0.29 6,680 6,373 0.39 North America North America 0.27 0.52 0.35 6,373 7,0 02 7,753 Oceania Oceania 6,673 0.23 0.12 6,672 6,673 0.11 MARKET AND INDUSTRY TRENDS South America South America China China 0.28 0.28 3,223 2,550 3,450 0.29 India India 0.21 7,475 3,053 0.54 4,228 0.28 United States United States 7,0 02 7,753 0.52 0.35 6,373 0.27 USD/kWh Total Investment Cost R USD/kW min max wa Capacity Factor R min max wa Levelised Cost of Energy R Africa Africa 0.19 0.48 0.37 2,850 1,485 2,040 Asia Asia 3,882 0.18 0.46 0.25 1,044 1,221 Central America and the Caribbean Central America and the Caribbean 0.24 0.54 0.33 3,265 1,981 2,184 Eurasia Eurasia 1,605 0.24 0.49 0.37 1,032 2,002 Europe Europe 0.14 0.51 0.29 1,151 3,702 1,868 Middle East Middle East 0.29 0.2 1,857 1,320 916 0.14 North America North America 1,718 0.51 0.4 3,001 1,270 0.22 Oceania Oceania 0.43 0.33 2,124 3,169 1,184 0.23 South America South America 0.26 0.55 972 2,909 1,829 0.4 China China 0.23 0.29 0.25 989 1,197 1,414 India India 1,282 850 0.24 0.33 0.19 1,097 United States United States 1,381 1,648 0.23 0.44 0.41 2,534 USD/kWh Total Investment Cost R USD/kW min max wa Capacity Factor R min max wa Levelised Cost of Energy R Africa Africa Asia Asia 0.23 3,260 5,055 0.29 1,890 0.28 Central America and the Caribbean Central America and the Caribbean Eurasia Eurasia Europe Europe 0.27 2,698 0.38 6,480 4,355 0.55 Middle East Middle East North America North America 9,667 0.48 Oceania Oceania South America South America China China 3,249 0.23 0.29 0.28 1,890 4,258 India India United States United States 9,667 0.48 Source: IRENA. See endnote 200 of Wind Power section in this chapter. 2016 Note: All monetary values are expressed in USD . LCOE is computed using a weighted average cost of capital of 7.5% for OECD countries and China and 10% for the rest of the world, and excludes subsidies and/or taxes. Where only the weighted average is shown for specific regions/countries and technologies (i.e., without minimum and maximum amounts for LCOE, investment cost or capacity factor), there is only one project in the IRENA Renewable Costing Database. The data methodology and regional groupings are defined in IRENA, Renewable Power Generation Costs in 2017 (Abu Dhabi: 2018), www.irena.org/costs. 123

124 04 DISTRIBUTED RENEWABLES FOR ENERGY ACCESS As of 1 February 2018, Aguas Chañar, a water-cycle management company in Atacama, Chile, began using electricity from renewable sources under a long-term PPA with Acciona Energia of Spain. El Romero All the electricity supplied under the PPA comes from Acciona’s 246 MW El Romero Solar power plant in the Solar photovoltaic Atacama Desert and its 45 MW Punta Palmeras wind farm in the region of Coquimbo. The contract power plant, covers more than 70% of Aguas Chañar’s electricity needs across several installations. Atacama, Chile

125 04 DISTRIBUTED RENEWABLES FOR ENERGY ACCESS DISTRIBUTED RENEWABLES i istributed renewables for energy access (DREA) In places where the electric systems are renewable-based systems (stand-alone grid does not reach or D iii ii , DREA ) that and off-grid systems as well as mini-grids is unreliable % 6 technologies provide generate and distribute energy independently of a centralised electricity grid. DREA systems provide a wide range of services cost-effective options for of new electricity generating electrical and – including lighting, operation of appliances, cooking, heating connections worldwide mechanical power, heating and cooling – in both urban and rural areas of the developing between 2012 and 2016 were provided by off-grid water and space, cooking world. These systems represented about 6% of new electricity FOR ENERGY and mini-grid renewable connections worldwide between 2012 and 2016, mainly in rural and baking, and enabling 1 energy systems In some countries, DREA technologies play a key role in areas. various productive uses. fulfilling the energy needs and enabling the livelihoods of millions For example, about 13% of people living in rural and remote parts of the world. of the population of Bangladesh gained access to electricity through off-grid solar iv , while 51% of the off-grid population of Kenya is served systems 2 See Figure 38.) ( p by DREA systems. ACCESS i See Sidebar 9 in GSR 2014 for more on the definition and conceptualisation of DREA. Note that the GSR has started using the acronym DREA to distinguish from distributed renewable energy that is not necessarily linked to providing energy access. ii This chapter does not distinguish between mini- and micro-grids. For more details, see the glossary at the end of the report. iii Unreliable is defined here as delivering electricity for less than 12 hours per day. iv "Solar systems" throughout the chapter refers to solar PV systems, unless otherwise specified. 125

126 RENEWABLES 2018 GLOBAL STATUS REPORT FIGURE 38. Market Size and Current Penetration of Off-Grid Solar Systems in Selected Countries, 2017 Uganda Tanzania Ethiopia India Kenya Bangladesh million million million million million million 148 9 9 9 17 17 households households households households households households Estimated market size (o -grid and unreliable grid areas) Market penetration of o -grid solar systems (o -grid and unreliable grid areas) 13% 51%50%22% 19% 20% Source: See endnote 2 for this chapter. ii building on the momentum of pay-as-you-go (PAYG) sales in DREA systems traditionally have provided basic services such as lighting and cooking to off-grid communities. However, because the traditional East African markets and on a significant increase in sales in new West African markets, although these systems of their increasing reliability, short installation time, improved 8 still supply a small proportion of overall off-grid solar customers. cost-benefit ratio and the emergence of financial schemes that Investments in off-grid solar companies decreased slightly reduce the upfront cost burden, DREA systems increasingly 9 despite an increase in the capital raised by PAYG companies. are being considered as either a complement to or, in some situations, a substitute for centralised power generation, with the This chapter reviews the current status of and trends in DREA in added benefit of reducing dependence on fossil fuel imports. developing and emerging countries and presents an overview of the major programmes and initiatives that were launched or were In remote areas with low population densities, DREA systems can operational in 2017. be the fastest and most cost-effective means for providing people with electricity, making these systems a compelling proposition 3 In countries such as for achieving energy access goals quickly. Kenya and Uganda, the number of off-grid systems deployed OVERVIEW OF ENERGY ACCESS in 2016 outpaced the grid connections achieved by rural Approximately 1.06 billion people (about 14% of the global 4 electrification agencies and national utility companies. population) lived without electricity in 2016, about 125 million 10 DREA systems offer an opportunity to accelerate the transition The definition of electricity access fewer people than in 2014. iii to modern energy services in remote and rural areas, while also , although efforts are ongoing may vary from country to country offering social, environmental and economic co-benefits such as: to develop and harmonise statistical methodologies for the 11 calculation of electrification rates. reduced chronic and acute health effects n About 2.8 billion people (38% of the global population, and about n improved lighting quality for households 50% of the population in developing countries) live without clean n increased school retention and improved grades for children iv 12 . The vast majority of people without access cooking facilities to either electricity or clean cooking are in sub-Saharan Africa increased income for small and medium-sized businesses and n 13 or the Asia-Pacific region, and most of them live in rural areas. 5 reduced negative impacts on forests. n For example, 55% See Reference Tables R22 and R23.) ( R In 2017, an increasing number of national governments of people without electricity access live in sub-Saharan Africa demonstrated their interest in DREA systems by enhancing 14 Furthermore, 67% of people and 41% live in developing Asia. i 6 . In the off-grid solar market, sales of the enabling environment without access to clean cooking facilities live in developing Asia 7 At smaller devices (for example, solar lanterns) decreased in 2017. 15 and 30% live in sub-Saharan Africa. the same time, the market for larger systems continued to grow, For example, putting in place supporting legal and regulatory frameworks, appropriate financing mechanisms and sufficient overall investment, as well as strong i partnerships between public and private actors. ii With the PAYG model, customers usually make a small deposit for the installation of the system and then pay regular instalments through mobile payment systems. PAYG has two main approaches: energy as a service approach whereby the customer pays for the electricity provided and does not own the system, and the lease-to-own model whereby the customer becomes the owner of the system after a period of time. The lease-to-own model is the most prominent one. For example, in South Africa, a household is considered to have access to electricity if it is supplied with 50 kilowatt-hours (kWh) per month, while a village in India iii is considered electrified if electricity is provided to social institutions such as schools and health centres and to 10% of households. This refers to the use of inefficient, unhealthy and unsafe open fires as well as rudimentary cook stoves running on solid fuels such as biomass, coal and iv animal waste for daily cooking needs. 126

127 04 In Africa, 588 million people (nearly 48% of the population) lack access to electricity, with the majority of those living in sub- Uganda Bangladesh Ethiopia Tanzania India Kenya 16 An estimated 26 million people in the region Saharan Africa. gained access to electricity annually between 2012 and 2016, million million million million million million 148 9 9 17 9 17 households households households households households households with progress made in electricity access outpacing population 17 However, progress has been growth between 2014 and 2016. 18 ( p See Figure 39.) Access also slow compared to other regions. varies considerably, from close to 100% across North Africa to Estimated market size less than 15% in countries such as South Sudan (1%), the Central (o -grid and African Republic (3%), Chad (9%), Sierra Leone (9%) and Niger unreliable 19 grid areas) R ( See Reference Table 22.) (11%). Market penetration of o -grid solar systems (o -grid and unreliable grid areas) DISTRIBUTED RENEWABLES FOR ENERGY ACCESS 51%50%22% 13% 20% 19% FIGURE 39. Population Without Access to Electricity, by Region or Country, 2010-2016 Access Change Population Change Million people 2010-2016 2010-2016 1,500 Other World Total + - 7.4 % % 24 1,250 Other developing Asia Southeast Asia Other - + % 44 % 8.6 1,000 Other developing + - % % 11 31 India Asia 750 Southeast + - % % 11 53 Asia 500 India + - % 7.6 % 42 Sub-Saharan Africa 250 Sub- Saharan - + % 1 % 18 Africa 0 2012 2013 201420152016 2010 2011 Source: See endnote 18 for this chapter. headline electrification rate In addition, as of the end of 2015, about 848 million people (72% improved from 43% in 2000 of the population) in Africa lacked access to clean cooking Electricity 23 to 82% in 2016. Despite facilities, with the vast majority (846 million) of them in sub- 20 progress, large numbers Access Rates Saharan Africa. In some 24 countries in the sub-Saharan of people remain without region, more than 90% of the population still relied on traditional have improved across all access to modern energy. i biomass , coal or kerosene for cooking purposes, including in regions, although sub- India is home to the highest Nigeria (171 million people; 94% of the population), Ethiopia Saharan Africa is lagging number of people worldwide (94 million people; 95% of the population) and the Democratic behind without reliable access Republic of the Congo (75 million people; more than 95% of the to electricity (239 million, 21 population). R ( See Reference Table R23.) 24 or 18% of the population). In developing Asia, the number of people who lack access The number of people without electricity access in Bangladesh to electricity decreased from over 1 billion in 2000 to less than is approximately 41 million (25% of the population), in 25 0.44 billion in 2016, with significant progress particularly in Pakistan 51 million (26%) and in Indonesia 23 million (9%). 22 Bangladesh, China, India and Indonesia. See Reference Table R22.) R ( In India, for example, the i Firewood, charcoal, dung or crop residues used in open fireplaces or unimproved cook stoves. 127

128 RENEWABLES 2018 GLOBAL STATUS REPORT In addition, as of the end of 2015, about 1.9 billion people (49% of TECHNOLOGIES AND MARKETS the population) living in developing Asia lacked access to clean 26 People in rural and remote regions generally acquire improved The number of people relying on traditional cooking facilities. access to energy in three ways: through household-level use of biomass to meet their household cooking needs is more than isolated devices and systems that generate electricity and/or heat; 780 million (59%) in India, 307 million (33%) in China, 133 million through systems such as mini-grids that are village-wide or regional (83%) in Bangladesh, 95 million (50%) in Pakistan and 67 million 27 and that connect multiple users; and through grid extension, where See Reference Table R23.) R ( (32%) in Indonesia. the grid is extended beyond urban and peri-urban areas. Although 93% of the population in the Middle East region has This section discusses developments in 2017 for distributed access to electricity, in some individual countries high shares of 28 renewable energy and covers core technologies such as pico In Yemen, the population still lack access to modern energy. iii ii i , plug-and-play and custom-made solar home solar systems 48% of the population (14 million people) does not have access systems (SHS), non-domestic off-grid power supply systems, to electricity, and 39% of the population (11 million people) lacks 29 mini-grids and clean cooking systems. access to modern cooking fuels and technologies. Similarly, in Latin America and the Caribbean as a whole, while ACCESS TO ELECTRICITY 97% of inhabitants have access to electricity, several individual countries have high shares of people without access, including Off-grid solar systems such as solar lanterns and SHS Haiti (67% of the population; 7 million people), Honduras (24%; experienced impressive growth between 2010 and 2017 (60% 30 About 59 million 2 million) and Nicaragua (11%; 0.7 million). compound annual growth rate) and were notably the most people in the region (12% of the population) do not have access significant technologies in the DREA sector in 2017 in terms of 31 to clean forms of cooking. market development and technological and business model 33 Some 130 million quality-assured off-grid solar innovation. In Haiti, 93% of the population is dependent on traditional cooking systems had been sold cumulatively by the end of 2017, providing fuels and devices, while in Honduras and Nicaragua less than 34 32 In electricity access to about 360 million people worldwide. 50% of the population has access to clean cooking solutions. 2017, an estimated 25.8 million off-grid solar systems were sold, 35 p See Figure 40.) ( a 14% decrease from sales reported in 2016. This contraction is attributed mainly to a decrease in sales of pico 36 Pico solar systems still account for about 87% of solar systems. 37 the market, despite rising sales of plug-and-play SHS. Pico systems are lanterns and simple multi-light systems (which may enable mobile charging), or units under 10 watts. i Plug-and-play systems are packaged solar home kits of 11 watts or more, typically powering several lights as well as energy-efficient appliances. ii “Custom-made” systems (also referred to as “component” systems) are those in which components (such as the solar photovoltaic module, battery, lights, etc.) iii are compiled independently, and may be from different manufacturers. Systems may be assembled and distributed as part of national programmes or assembled in an entirely decentralised manner. Custom-made systems may offer price advantages but also may have lower quality and/or safety standards. Annual Global Sales of Off-Grid Solar Systems, 2013-2017 FIGURE 40. Off-grid solar system sales saw a Million units 35 % –14 30.1 change from 2016, due 30 to a series of localised 26.7 25.8 25.2 shocks and some market 25 restructuring 20 17.6 15 10 5 0 2013 2014 2015 2016 2017 (est.) Source: See endnote 35 for this chapter. 128

129 04 Sales of off-grid solar systems decreased nearly 16% between 2016 and 2017 in both East Africa and South Asia, the two main 38 In regional markets that account for 66% of global sales. contrast, the market in Central Africa expanded by almost 173% 39 in 2017 while markets in East Asia and the Pacific grew 41%. Across the top five markets, sales decreased in 2017 in Ethiopia, India and Kenya, whereas sales increased in the Democratic 40 See Figure 41.) p ( For Republic of the Congo and Uganda. example, Kenya, the largest market in sub-Saharan Africa, had 41 a 24% decrease in reported sales in 2017 compared to 2016. In contrast, the off-grid solar market in the Democratic Republic of the Congo and Uganda continued to grow, with sales in the Democratic Republic of the Congo reported to have more than 42 tripled between 2016 and 2017. DISTRIBUTED RENEWABLES FOR ENERGY ACCESS Number of Off-Grid Solar Systems Sold by GOGLA Affiliates in Top 5 Countries, 2016 and 2017 FIGURE 41. Million units 3.5 3.0 2016 2017 -26% 2.5 2.0 1.5 -25% 1.0 +21% -26% 0.5 +341% 0 UgandaEthiopiaDemocratic India Kenya Republic of the Congo Note: Data reported here represent about 30% of all sales of off-grid solar PV products across these markets. Source: See endnote 40 for this chapter. Pico solar systems experienced a 15% drop in sales in 2017, with example, a significant proportion of the 5.2 million SHS installed 43 22.3 million devices sold during the year. This contraction in in Bangladesh by year-end 2017, with a total capacity of sales is attributed mainly to a series of localised shocks in the 218 megawatts (MW), consists of custom-made SHS 48 key markets of India, Kenya, Nigeria and Tanzania, as well as to distributed through a national programme. 44 i structural market changes . Many examples exist of DREA systems providing electricity In contrast, the market for plug-and-play SHS grew by about access to social institutions. In 2017, projects deploying solar 45 28% in 2017, with estimated sales of 1.02 million. Moreover, sales systems to multiple hospitals and clinics were implemented in 49 more than doubled in some regions between the second quarter In Ghana, Malawi, Namibia, Pakistan, Uganda and Zimbabwe. of 2016 and the first quarter of 2017, albeit from a low base, with a 2016, Morocco embarked on an initiative to decrease the energy 46 110% increase in South Asia and a 170% increase in West Africa. consumption of mosques, and several off-grid mosques were 50 Also in 2017, an initiative equipped with solar systems in 2017. The share of custom-made SHS remains largely unstudied; aimed at improving school access to electricity deployed multiple however, new data suggest that these systems make up as 51 47 much as 9% of the market for off-grid solar systems. For systems in Zambia. These changes include, for example, the exhaustion of relatively easier markets and the inability to penetrate untapped ones, and the market exit of some repor - i ting companies due to increased competition with non-GOGLA affiliates. 129

130 RENEWABLES 2018 GLOBAL STATUS REPORT In 2017, humanitarian efforts led to installations of DREA systems Solar PV is the technology of choice for most mini-grids under as part of reconstruction and stabilisation initiatives in Puerto Rico, development in the last few years. Even in countries such as 52 Under the initiative the State of Palestine, South Sudan and Syria. Indonesia and Myanmar, where hundreds of hydropower mini- of the United Nations Refugee Agency (UNHCR), refugee camps grids have been serving rural customers for many years, solar PV 59 In countries in Jordan, Kenya, Lebanon and Rwanda were equipped with solar systems are quickly starting to gain market share. such as Bangladesh, India and Rwanda, where many villages are systems to improve camp power supply, provide light in schools 53 relatively compact and densely populated, several companies are and improve the lives of individual refugees. deploying direct current (DC) solar PV mini-grids that provide The mini-grid sector, although still considered a niche by many, has 60 basic energy services. witnessed significant attention from governments and financiers. Biomass gasifiers traditionally have played an important role in An increasing number of private mini-grid developers are actively the electrification of villages and in the provision of power to off- testing a range of business models and helping to move the sector grid small and medium-sized enterprises in South and Southeast to maturity. The main drivers for the increased interest in mini-grids Asia. In recent years, interest from some Indian manufacturers to are the lower costs of solar photovoltaic (PV) technology, improved enter new markets has kick-started the deployment of gasifiers understanding by investors about potential returns, operational in sub-Saharan Africa as well, with installations of 5 gasifiers performance and costs, as well as government recognition that 61 A US-based in Tanzania providing power to 1,000 customers. DREA systems can help achieve targets for energy access more 54 manufacturer has installed two biomass gasifiers in Liberia rapidly than traditional grid extensions. 62 since 2014. Developments in the mini-grid sector targeting off-grid Hydropower-based mini-grids continue to be an important communities were driven by installations in East Africa and South technology for the electrification of communities living in Asia. A hotbed for business model innovation, India reported mountainous areas where the costs of expanding the grid are too the largest number of mini-grid installations in the period 2016- 55 Mini-grid projects also were deployed in high and the water resource is reliable. New installations in 2017 2017, at 216 systems. 56 Bangladesh, Kenya, Liberia, Myanmar, Nigeria and Tanzania. helped provide electricity access to communities in Afghanistan, 63 Madagascar and Tajikistan. According to one source, in 2017 an estimated 13 renewable The rapid market growth of DREA technologies between 2010 energy-based large mini-grid projects (with installed capacity and 2017 has been facilitated by several technological innovations. greater than 100 kW) were implemented in countries outside of Key system components such as batteries, light-emitting diodes the Organisation for Economic Co-operation and Development (LEDs), controllers and meters have experienced major cost (OECD) and China, primarily in Africa and Southeast Asia, half of 57 64 These developments reductions and efficiency improvements. which were designed specifically to provide electricity access. The pipeline for 2018 suggests that the market may more than have been complemented by the emergence and proliferation double, with about 35 new mini-grid projects announced in of solutions for remote monitoring, data analytics, and customer 65 ( See also Digitalisation sidebar in p management and payments. 2017, although many smaller mini-grids are not included in these 58 ( p See Figure 42.) Integration chapter.) Adoption of these innovations by other DREA estimates. In 2017, the Figure DRE7. Estimated Renewable Micro Grid projects (>100 kW) Outside of the OECD and China, 2013-2017 FIGURE 42. Estimated Renewable Energy-based Large Mini-grid Projects (>100 kW) number of Installed Outside of the OECD and China, 2013-2017 annually installed smaller mini- Number of projects grids is moving 40 from tens to 35 HUNDREDS. 35 30 25 20 18 16 14 15 13 9 10 5 0 2017 2014 2013 2017 2015 2016 (completed) (announced) Note: Data include only projects that have installed capacity greater than 100 kW and with at least two generation sources that have a local load and that are islandable. About half of these larger mini-grids are to improve energy access, with the rest for industrial/commercial use or to boost island supplies. Source: Bloomberg New Energy Finance (BNEF). See endnote 58 for this chapter. 130

131 04 subsectors has the potential to unlock and accelerate new markets ACCESS TO CLEAN COOKING FACILITIES 66 for DREA technologies and to increase customer choice. The market for clean cooking solutions continued to thrive in i At the same time, several manufacturers have started marketing cook stoves making up 83% (30.8 million) of the 2016, with clean 69 highly efficient low-voltage DC appliances such as televisions The number of clean cook 37 million cook stoves distributed. (TVs), fans, refrigerators and small machines designed specifically stoves distributed more than tripled in 2016 compared to 2015, 67 70 DISTRIBUTED RENEWABLES FOR ENERGY ACCESS By using high-efficiency to be powered by off-grid solar systems. highlighting the positive momentum in the sector. products the energy system size can be reduced significantly so that In 2016, building on the momentum of its Pradhan Mantri Ujjwala consumers get the same or higher level of energy service at lower Yojana cooking gas programme, India became the main market cost overall. For example, integrating super-efficient appliances 71 China for clean cook stoves, with 20.3 million distributed. on a mini-grid can reduce annual electricity expenditures by 60% continued to be a major market, with 6.2 million clean stoves compared to using conventional appliances, and the annualised distributed in 2016, while Bangladesh, Ghana and Kenya all cost of both appliances and their electricity use is reduced by 30%, 72 ( See Figure 43). p matched or exceeded their 2015 numbers. 68 despite higher upfront appliance costs. In 2016, only an estimated 29% of the 30.8 million clean cook This technology evolution is increasingly transforming off-grid stoves distributed used renewable fuels, with most of those systems into viable propositions, as evidenced by the market ii 73 , followed by biogas (3.5%). using wood or charcoal (25%) entry of large energy companies. The majority of clean cook stoves (71%) See Figure 44.) p ( 74 use liquefied petroleum gas (LPG). Globally, a cumulative total of more than 50 million biogas cook stoves had been installed as of year-end 2016, with about “Clean” in this section refers to clean and/or efficient cook stoves as per the methodology of the Global Alliance i for Clean Cookstoves: stoves and fuels that meet Tier 2 for efficiency are considered efficient, and those that meet Tier 3 for indoor emissions are considered clean for health, in accordance with the interim performance guidelines in the International Organization for Standardization International Workshop Agreement. This includes pellets and gasifiers, both of which are wood-based. ii 20 million clean cook stoves were in 2016, distributed in India Number of Clean Cook Stoves Distributed in Selected Countries, 2015 and 2016 FIGURE 43. two-thirds of the world total Million units 25 +84 % 20 2015 2016 15 10 -72 % 5 +51 % +84 % 0 Kenya Bangladesh China India Note: Figure does not exclusively show renewable energy-based cook stoves. Figure includes cook stoves that were both sold (at market and subsidised prices) and given at no cost. Source: See endnote 72 for this chapter. 131

132 RENEWABLES 2018 GLOBAL STATUS REPORT 126 million people using biogas for cooking, mainly in China ( p See Figure 45.) Through the Africa Biogas Partnership 75 Programme, more than 58,000 biogas plants are estimated (112 million) and India (10 million). China accounted for to have been installed in Burkina Faso, Ethiopia, Kenya, Tanzania 13 million cubic metres of biogas production from biogas 78 and Uganda since 2009. digester installations for cooking in 2016, and India accounted for 76 2 million cubic metres. The use of biogas for cooking continued As of the end of 2017, more than 3.1 million solar cookers were to grow in South-Central and South-Eastern Asian countries estimated to have been distributed worldwide, with 115,000 solar such as Bangladesh, Cambodia, Indonesia and Nepal, and also cookers deployed in 2016 to provide clean cooking facilities to 79 77 in sub-Saharan Africa, namely in Ethiopia, Kenya and Tanzania. households. Approximate Proportion of Clean Cook Stoves by Energy Source, 2016 FIGURE 44. Only an estimated 71 % % 23 LPG/gas Wood/ Wood/ 29 % charcoal charcoal of the 30.8 million clean cook stoves distributed in 2016 used renewable energy Pellets or gasifier % 1.9 Biogas/alcohol % 3.5 % 0.4 Solar energy Renewable % 0.1 electricity Note: LPG = liquefied petroleum gas Source: See endnote 73 for this chapter. FIGURE 45. Production of Biogas for Cooking in Selected Countries, 2015 and 2016 Worldwide production of biogas for cooking Million cubic metres 15,000 150 saw little change from 2015 to 2016. 2015 120 2016 10,000 90 60 5,000 30 150 0 0 Nepal Bangladesh Cambodia Kenya Indonesia China India Source: See endnote 77 for this chapter. 132

133 04 Off-grid solar companies operating in sub-Saharan Africa, INVESTMENT AND FINANCING DISTRIBUTED RENEWABLES FOR ENERGY ACCESS primarily in East Africa, continued to be the main recipients DREA systems attracted some USD 922 million in investment of capital inflows in the sector. For example, the Kenyan solar between 2012 and 2017, with a large portion of this for solar energy company M-KOPA secured USD 80 million in 2017, the 80 85 In 2017, off-grid solar companies raised USD 284 million, PV. The German company largest solar deal in Africa that year. 81 a decrease of 10% from the USD 317 million raised in 2016. Mobisol raised USD 25 million in 2017 to expand its operations in 82 86 See p ( PAYG companies attracted nearly all of the investment. In 2017, off-grid solar projects accounted for 5 of the East Africa. 87 As of Figure 46 and Business Models section of this chapter.) 11 largest solar investments on the African continent. the end of 2017, the PAYG solar PV companies had raised an Investments continued to flow to PAYG companies in Asia, 83 estimated USD 263 million, an increase of 18% from 2016. although at a much slower pace than recorded in previous years. DREA companies attracted funding in 2017 from various sources, In 2017, Greenlight Planet raised USD 60 million in equity and debt including development finance institutions (DFIs), impact financing to expand its activities in rural Africa and Asia, while 88 investors, investment funds, foundations, commercial finance and Off-grid India-based Mera Gao Power secured USD 2.5 million. crowdfunding platforms. Impact investors (USD 139 million) and solar companies in Latin America and the Caribbean raised about DFIs (USD 71 million) accounted for nearly 75% of the financing USD 12.5 million in investments in 2017, with Guatemala’s Kingo 84 p ( See International secured by off-grid solar companies in 2017. announcing a USD 8 million investment to expand its activities in 89 Initiatives and Programmes section in this chapter.) The proportion of investment on a debt basis Central America. continues to grow, constituting 61% in 2017, up from 40% in 2015, with equity-based investments accounting for 36% and grant- 90 based investments accounting for 3% in 2017. FIGURE 46. Global Investment in Off-Grid Solar PV Companies, 2013-2017 Investment in PAYG companies increased Million USD 350 Total Investment in O -Grid Solar % 1,400 Investment in during 2013-2017 Million USD 284 300 Other o-grid solar companies 250 Pay-as-you-go solar companies 200 150 100 50 0 2014 2015 2016 2017 (est.) 2013 Note: Data for 2017 are estimated. Source: See endnote 82 for this chapter. 133

134 RENEWABLES 2018 GLOBAL STATUS REPORT Mini-grids continued to attract financing in 2017, primarily challenges impeding the 99 i through public funds or development banks. In 2017, . growth of the sector Less than half Zambia-based Standard Microgrid announced that it had Since 2014, debt and of the estimated annual raised up to USD 3.5 million for the deployment of six equity financing in the investment required to 91 PowerGen raised solar PV mini-grids in the country. sector has increased achieve universal energy USD 4.5 million in view of providing electricity through mini- considerably, making access by 2030 is being grids to some 50,000 people in the next two years in Kenya up nearly 70% of funds committed to fund energy 92 The government of Cameroon secured a loan of and Tanzania. invested in the sector in access activities 100 USD 123 million from the Bank of China for the extension of its p ( See Figure 47.) 2017. 93 rural electrification programme with solar PV mini-grids. For example, in 2017 Also in 2017, the government of Mozambique launched its Rwanda’s Inyenyeri USD 500 million electrification programme based on hydropower secured a loan of EUR 8 million (USD 9.6 million) from Athelia 94 Indian mini-grid developer OMC Power and solar PV mini-grids. Climate Fund and the Dutch development bank FMO – as announced an equity investment of about USD 9.3 million from well as a grant of about EUR 3.75 million (USD 5.5 million) – to Japan’s Mitsui in a joint venture to install solar hybrid mini-grids in scale up its model to provide clean forced-draft gasifier stoves 95 101 The Microgrid Investment Accelerator, launched in 2017 Africa. Also in 2017, ATEC together with biomass pellets in Rwanda. by Facebook and Microsoft, aims to mobilise some USD 50 million Biodigesters (Australia) secured about USD 950,000 in the form of between 2018 and 2020 to expand energy access in East Africa, equity and results-based financing to expand its biogas and cook 96 102 India and Indonesia. Although for LPG rather than for stove activities in Cambodia. renewable cook stoves, at the end of 2017 Kenya’s PayGo Energy In the clean cooking sector, Sustainable Energy for All had raised around USD 1.4 million as debt and equity financing to (SEforALL) estimates that, on average, USD 32 million was finance the development of clean cooking as a service solution invested annually in 2013-2014 in the 20 high-impact countries that will allow for the purchase of small increments of LPG and – an average of USD 26 million from international public funding 103 97 therefore reduce the upfront affordability barrier. Nearly 78% of these and USD 6 million from private finance. investments (USD 24.8 million) targeted the sub-Saharan Africa Alternative funding mechanisms such as crowdfunding region and in particular East African countries, while around continued to support the development of small DREA companies. USD 7.2 million was channelled to Asia (primarily India and For example, off-grid solar companies raised an estimated 98 Vietnam). USD 2.7 million from crowdfunding platforms in 2017, more 104 In 2017, Namibian than double the amount raised in 2016. After attracting an annual average of around USD 24 million in solar distributor Olusheno raised EUR 209,400 (USD 250,870) investment from 2012 to 2016, clean cooking companies recorded 105 financing flows of only USD 18.1 million in 2017, highlighting the through crowdfunding to bring SHS to households in Namibia. i The sector currently is characterised by low margins, high transaction costs due to a fragmented and early-stage pipeline, and a lack of investor knowledge, among other issues that hinder investment flows. FIGURE 47. Global Investment in Clean Cook Stove Companies, 2011-2017 Million USD 30 Grant 26.7 26.5 25.7 Equity 25 Debt 21.6 19.4 20 18.1 15 12.7 10 5 0 2013 2014 2015 2016 2017 2011 2012 Source: See endnote 100 for this chapter. 134

135 04 The non-profit organisation Energy 4 Impact rolled out a BUSINESS About crowdfunding campaign to promote both clean cook stoves and solar lighting products among women entrepreneurs in MODELS 106 Crowdfunding also helped finance mini-grid East Africa. In recent years, innovative % 80 107 deployments in Nigeria and India. business models have of off-grid solar PV sales Climate finance is supporting the deployment of DREA systems been used to scale up were PAYG in 2015-2017 as well. Sri Lanka secured support from the Global Environment energy access delivery Facility in 2017 for 1,000 biogas digesters as part of a Nationally strategies. A shift has 108 The Green Appropriate Mitigation Action (NAMA) project. occurred from the donor/ Climate Fund (GCF) approved a USD 50 million project in government-driven model Ethiopia in 2017 that includes the use of solar energy to power to a private sector model, 109 By the end of 2017, the GCF had approved two water pumps. where private firms lease or sell an electricity generating system 113 projects with a major focus on energy access, representing 4.7% and supply energy to consumers who pay for the service provided. 110 of all funds allocated. These business models have enabled the commercialisation of affordable and reliable products, helped overcome market failures However, despite the increasing capital flows in the DREA sector, DISTRIBUTED RENEWABLES FOR ENERGY ACCESS and increased the viability of providing services to the off-grid and the amount raised is far from the estimated annual investment of poor populations that lack access to energy. USD 45-56 billion required to achieve the objective of universal 111 Less than half of this amount (an access to energy by 2030. The success of these business models relies mainly on innovation 114 average of USD 19.4 billion for 2013 and 2014) is actually being Five distribution models in distribution and end-user financing. committed to fund energy access activities; of this, only 0.1% are generally used by DREA companies: partnerships between (about USD 200 million per year) directly supports DREA-related companies and institutions; distributor-dealer channels; 112 activities. proprietary distribution; franchise models; and renting or leasing systems. To overcome the consumer financing hurdle, many DREA companies, mostly those involved in off-grid solar PV, are shifting from microfinance institution (MFI)-based product loans to the PAYG model of end-user financing in countries that have 115 relatively high penetrations of mobile money and digital finance. From 2015 to 2017, PAYG systems made up about 80% of off- grid solar sales (mostly SHS), with estimated cumulative sales of 1.5 million systems and more than 30 companies deploying PAYG 116 East African markets solar in Africa, Asia and Latin America. made up almost 86% of PAYG cumulative sales between 2013 and 2017, with more than 500,000 units installed in Kenya alone, while a combined total of about 50,000 units had been installed 117 in West Africa and South Asia as of 2016. As part of their revenue diversification strategy, more off-grid solar companies are starting to offer televisions as part of their solar package. In 2017, Simpa Networks launched India’s first 118 Similarly, d.light began solar-powered satellite TV solution. 119 Also commercialising a PAYG solar TV package in East Africa. in 2017, UK-based Azuri Technologies partnered with Kenya’s 120 By the end of Mobicom to expand its solar TV systems offer. 2017, M-KOPA announced that it had connected nearly 100,000 homes to solar TVs in East Africa since the launch of its solar- 121 powered TV in 2016. Market-based approaches such as the PAYG model are yet to emerge as game changers for the clean cooking sector. As of the end of 2017, only an estimated 6-12% of improved cook stoves had been 122 distributed through a non-subsidised market-based approach. Companies such as Envirofit, BioLite and BURN Manufacturing are building partnerships with MFIs to sell their products through a partner with financial capacity, thereby circumventing the high upfront cost of clean cook stoves. BURN Manufacturing sold more than 300,000 clean cook stoves in Kenya between 2013 and mid- 123 2017, helped by its partnerships with MFIs. Some companies in the clean cooking sector also are transforming their business models to provide clean cooking facilities on a PAYG basis, although most initiatives are focused 135

136 RENEWABLES 2018 GLOBAL STATUS REPORT on LPG rather than on renewable stoves. At the end of 2017, POLICY DEVELOPMENTS KopaGas, operating in Tanzania, was serving an estimated 124 Although much progress has been made in many regions of Also in 15,000 customers monthly with its pay-per-use LPG. the world to increase energy access through the use of DREA 2017, Envirofit experimented with its pay-as-you-cook model with 125 systems, the lack of appropriate policy support and an enabling Fenix International, a the launch of its SmartGas LPG program. environment is often seen as one of the key challenges impeding PAYG solar company, secured funding in 2017 to offer renewable 138 For example, some 70% of Africa’s least- growth of the sector. clean cook stoves to its customers using a PAYG instalment i 126 have not yet established a proper enabling electrified countries method. environment including the right policies, institutions, strategic Despite growing interest and several pilot projects, a business 139 planning, regulations and incentives to support energy access. 127 model has not yet been proven for renewable-based mini-grids. Moreover, fewer than 50% of the 55 countries defined as Mini-grid models that have been developed in recent years are ii have implemented national programmes for the access-deficit tailor-made to the site, the customer base, the ownership and 140 128 deployment of stand-alone solar systems. In 2017, the the operation model, among other considerations. US-based company Renewvia Energy and Nigeria’s Community Policies supporting the growth of DREA systems can be classified Energy Social Enterprises Limited and microfinance company in five broad categories: Kilowatts partnered to power 10,000 Nigerian homes with solar n Reduce import duties and tariffs on renewable energy products 129 Similarly, Powerhive received mini-grids using a PAYG scheme. Support the availability of local finance through loans, grants n support from Power Africa’s Development Innovation Ventures and microfinance programme to develop its Productive Use Program based on renewable mini-grids that will provide customers in Kenya with Establish energy access targets and national commitments n low-cost appliance leases and business loans combined with Establish rural electrification plans or programmes incorporating n 130 enterprise development support. DREA One growing trend in the DREA sector has been the establishment Provide regulatory support such as established procedures n of partnerships between multinationals and local businesses for mini-grid operators or the adoption of quality standards for and off-grid solar companies. Several notable partnerships were 141 products and services. initiated in 2017. Africa’s largest telecommunications company, MTN Group, expanded its partnerships with Mobisol and Fenix In 2017, several countries adopted policy measures to create the 131 Mobisol also partnered with solar distributors International. appropriate enabling environment for DREA deployment and Baobab+ and SunTransfer to offer off-grid solar solutions through increased rates of energy access. 132 Following the PAYG in Côte d’Ivoire and Ethiopia, respectively. To support the deployment of mini-grids, Nigeria approved agreement between Africa’s Ignite Power and the government of 142 The guidelines comprehensive guidelines regulating the sector. Rwanda in 2016, UK-based BBOXX and the government of Togo provide clarity about key regulatory aspects important to 133 In signed an agreement to install about 300,000 SHS by 2022. developers, such as tariffs and grid integration. Other countries 2017 the French energy giant ENGIE acquired Fenix International, used government-backed energy funds to support the 134 The German energy utility E.ON a lease-to-own SHS provider. development of mini-grids. Along with Kenya and Tanzania, 135 In 2016, the French is operating eight mini-grids in Tanzania. which have used government funds to deploy mini-grids for national utility EDF entered into a partnership with a company several years, the Mozambique Energy Fund announced in 2017 136 Similarly, based in Myanmar aimed at developing mini-grids. that it was providing substantial financing for the electrification of Envirofit, a leading clean cook stove company, partnered with 143 322 villages in the country. India’s leader in technology and outsourcing, Infosys, to deliver 137 While the policy framework for mini-grids seems to be improving 37,200 cook stoves in the state of Maharashtra. in several countries, policy changes relating to import duties and value-added tax (VAT) for renewable energy technologies 144 have negatively affected the sales of off-grid solar products. However, in 2017 some countries such as Sierra Leone removed 145 VAT and import duties on solar products. i Least-electrified countries are those with an access rate of less than 20%. ii Access-deficit countries are those with less than 90% electrification or more than 1 million people without access. 136

137 04 to facilitate access to INTERNATIONAL INITIATIVES AND sustainable energy Distributed for rural households PROGRAMMES renewable primarily through solar Numerous international actors and donors continued to be 160 energy systems PV. In addition, OFID committed to deploying DREA systems in 2017. For example, are emerging as the least approved a grant of in 2017 SEforALL launched a people-centred accelerator that expensive and fastest USD 1 million to Energy aims to advance gender equality, social inclusion and women’s option for providing energy 4 Impact to drive the 146 empowerment in the sustainable energy sector. access to many remote rural adoption of small-scale Power Africa continued to advance off-grid access through 161 populations solar irrigation in Rwanda. investments, technical assistance to rural electrification agencies In addition to multilateral and national utilities, and targeted support to the private 147 funding, bilateral financing continued to flow in the sector. New sector. By mid-2017, Power Africa reported that it had achieved Zealand granted USD 3.4 million to Vanuatu to provide modern 10.6 million connections towards its goal of 60 million connections 162 energy to 8,400 households through SHS and mini-grids. India by 2030, delivered mainly by pico solar systems and a small 148 announced that it would provide USD 66 million to finance a number of mini-grids. DISTRIBUTED RENEWABLES FOR ENERGY ACCESS 163 solar hybrid rural electrification project in Mauritania. DFIs continued to be an important source of funding for DREA Energising Development (EnDev) – an energy access partnership projects in 2017. The World Bank saw a record number of requests i financed by seven donor countries – continued to support energy from partner governments for support of projects promoting 149 access programmes in Africa, Asia and Latin America. In 2017, energy access. It approved USD 150 million for Kenya’s Off-grid in collaboration with Barclays Bank Kenya, EnDev implemented Solar Access Project for Underserved Counties, which aims to provide modern energy to an estimated 1.3 million people in a results-based financing (RBF) project to provide financial 150 the country. incentives to private project developers investing in solar PV 164 hybrid mini-grids. Similar RBF instruments were deployed for Niger also received USD 50 million from the World Bank to 165 mini-grids and end-user appliances in Rwanda. increase energy access in rural and peri-urban regions through 151 stand-alone solar systems and solar hybrid mini-grids. At the The French Development Agency (AFD), through its subsidiary end of 2017, the World Bank was considering projects to construct Proparco, secured EUR 24 million (USD 28.8 million) from mini-grids in Madagascar, Nigeria and Zambia, as well as a the European Union’s ElectriFI initiative to deploy its African 166 USD 200 million Regional Off Grid Electrification Project in Renewable Energy Scale-Up Facility. This facility will use the Economic Community of West African States and four about half of the earmarked funds to provide technical assistance 152 Sahel countries. facilities to off-grid electricity providers, with the aim of providing 167 energy to 1 million households on the continent. Also in 2017, Similarly, the African Development Bank (AfDB) unveiled a the Shell Foundation and Dutch development bank FMO USD 12 billion plan under its new electrification programme that announced a USD 50 million fund for energy access businesses aims to provide decentralised solar technologies to 75 million 168 153 in India and Africa. households and businesses between 2017 and 2022. In 2017, the AfDB’s Sustainable Energy Fund for Africa, which provides grants In the clean cooking sector, the Global Alliance for Clean and technical assistance to governments, awarded USD 995,000 Cookstoves provided support of up to USD 150,000 to six to the Republic of Gambia to facilitate private investments in green companies in 2017 to scale up investments in commercial clean mini-grids, and USD 975,000 to Togo to enable the deployment of 169 cooking businesses. 154 300,000 solar kits over a five-year period. With the government of Japan, the AfDB also launched the Japan-Africa Energy Initiative that will support energy access OUTLOOK activities in the region through USD 6 billion concessional and In 2017, off-grid distributed renewable systems attracted strong 155 non-concessional finance. The AfDB also successfully raised interest from governments and international organisations USD 90 million by issuing the first Light Up and Power Africa that are striving to improve energy access. The PAYG model 156 Bond, sold solely to Japan’s Dai-ichi Life Insurance Company. for small solar systems, enabled by the emergence of mobile In addition, the AfDB together with the Nordic Development technology, has become one of the dominant business models. Fund launched the Facility for Energy Inclusion Off-Grid Energy This, combined with the reduction in solar PV costs, has enabled 157 Access Fund, a USD 55 million blended-finance debt fund. the rapid spread of DREA into new markets, particularly in The Asian Development Bank approved sovereign financing sub-Saharan Africa. DREA systems are emerging as the least for energy access and off-grid systems in Vanuatu and started expensive and fastest option for providing energy access to many the implementation of an off-grid market development project remote rural populations. However, reaching energy access goals 158 in Central Asia. It also approved the third round of the Public- requires the necessary enabling environment in terms of legal 159 Private Infrastructure Development Facility in Bangladesh. and regulatory frameworks, appropriate financing mechanisms and sufficient overall investment, as well as strong partnerships The OPEC Fund for International Development (OFID) between public and private actors. granted USD 800,000 to Tajikistan and the Kyrgyz Republic Australia, Germany, the Netherlands, Norway, Sweden, Switzerland and the United Kingdom. i 137

138 05 - INVEST MENT FLOWS Solar rooftop The Jurong Port in Singapore completed a SGD 30 million (USD 22.4 million) installation of solar system at Jurong panels on its warehouse rooftop in 2016, making it the then-largest port-based solar PV facility Port facility, The facility has a peak capacity of 9.5 MW and is estimated to generate more than 12 MWh in the world. City of Singapore, of solar energy per year, providing more than 60% of the port’s annual electricity needs. Singapore

139 05 INVESTMENT FLOWS - INVEST lobal new investment in renewable power and fuels Global new investment in (not including hydropower projects larger than G renewable power and fuels 50 megawatts (MW)) totalled USD 279.8 billion in i reached . 2017, as estimated by Bloomberg New Energy Finance (BNEF) This represents an increase of 2% compared to the previous MENT year, even as the costs of wind and solar power technologies fell 279.8 ii . Investment in renewable power and fuels has exceeded further USD 200 billion annually since 2010. ( p See Figure 48 and billion USD Investment in hydropower projects larger ) Reference Table R26. in 2017. 1 iii . than 50 MW was an estimated additional USD 45 billion in 2017 FLOWS Global Trends in Renewable Energy Investment 2018 (Frankfurt: 2018), the sister publication to the i This chapter is derived from United Nations Environment’s GSR, prepared by the Frankfurt School–UNEP Collaborating Centre for Climate & Sustainable Energy Finance (FS-UNEP Centre) in co-operation with Bloomberg New Energy Finance (BNEF). Data are based on the output of the Desktop database of BNEF, unless otherwise noted, and reflect the timing of investment decisions. The following renewable energy projects are included: all biomass and waste-to-energy, geothermal and wind power projects of more than 1 MW; all hydropower projects of between 1 and 50 MW; all solar power projects, with those less than 1 MW estimated separately and referred to as small-scale projects or small-scale distributed capacity; all ocean energy projects; and all biofuel projects with an annual production capacity of 1 million litres Global Trends Report or more. For more information, please refer to the FS-UNEP Centre/BNEF . Where totals do not add up, the difference is due to rounding. Note that declining costs of some renewable energy technologies (particularly solar PV and wind power) have a downward influence on total dollar investment ii (all else being equal). Thus, changes in investment (monetary) do not necessarily reflect changes in capacity additions. Investment in large-scale hydropower (>50 MW) is not included in the overall total for investment in renewable energy. Similarly, investment in large-scale iii hydropower is not included in the chapter figures, unless otherwise mentioned. 139

140 RENEWABLES 2018 GLOBAL STATUS REPORT Global New Investment in Renewable Power and Fuels in Developed, Emerging and Developing Countries, 2007-2017 FIGURE 48. Billion USD 350 +2.2% 323 World Total growth (from 2016 280 300 288 billion USD to 2017) 284 274 255 244 250 234 Developing and emerging countries 200 China 181 197 178 Developed 159 50.4 56.8 165 countries 150 151 152 51.1 146 133 47.7 126 123 126.6 115 115 121.2 100 103 44.7 37.6 96.9 42.8 85.3 36.5 25.9 63.4 50 58.3 32.7 48.2 27.4 41.5 38.1 25.3 16.6 0 2012 2014201520162017 2013 200820092010 2007 2011 Note: Figure does not include investment in hydropower projects larger than 50 MW. Investment totals have been rounded to nearest billion and are in current USD. Source: BNEF. These estimates do not include investment in renewable heating China played a dominant role, Developing countries investing USD 126.6 billion, and cooling technologies, for which data are not collected i extended their lead over reports its highest figure ever. comprehensively. The International Energy Agency developed countries in 2017, that global investment in solar thermal heating technologies Substantial increases in with developing countries were increased steadily until 2013 but then fell each year through 2016 2 witnessed in Mexico, Egypt, (latest data available). the United Arab Emirates Investment in new renewable power capacity (including all 63 % and Argentina. hydropower) was three times the level of investment in fossil fuel obal investment of gl generating capacity and more than double the investment in in renewable energy fossil fuel and nuclear capacity combined. Investment in renewable energy continued to focus on solar power, particularly solar photovoltaics (PV), which increased ii its lead over wind power in 2017. Asset finance of utility-scale projects, such as wind farms and solar parks, dominated investment at USD 216.1 billion worldwide. Small-scale solar PV installations (less than 1 MW) accounted for USD 49.4 billion, representing an increase of 15%. iii as a group Renewable energy investment in developed countries fell 19% in 2017. Investment decreased in the two developed- country front-runners, the United States and Japan, as well as in the leading European countries, Germany and the United Kingdom. Among developing and emerging countries, renewable energy investment increased 20%, to USD 177 billion. i Methodologies for calculating investment in solar thermal heating and cooling technologies differ across institutions, and therefore data are not comparable. - “Utility-scale” in this chapter refers to wind farms, solar parks and other renewable power installations of 1 MW or more in size, and to biofuel production facili ii ties with capacity exceeding 1 million litres. Developed-country volumes are based on OECD countries excluding Chile, Mexico and Turkey. iii 140

141 05 Utility-scale solar power arrays of more than 1 MW accounted for INVESTMENT BY ECONOMY most of China’s solar power total, while the country’s investment Developing and emerging economies overtook developed in small-scale solar PV project development increased nearly countries in renewable energy investment for the first time in 2015; five-fold. By comparison, China’s total investment in wind power was USD 36.1 billion; investment in onshore wind power they extended their lead in 2017, accounting for a record 63% was down 28%, while offshore wind power increased 180% of global investment in renewable energy, due largely to China. i to USD 10.8 billion. China also invested significant sums in Developments in renewable energy investment varied by region , INVESTMENT FLOWS ii large-scale hydropower , commissioning 7.3 gigawatts (GW) in rising in China, Latin America (including Brazil) and the Middle 3 2017, a large portion of which was projects larger than 50 MW. East and Africa, and falling in Europe, the United States, Asia- p ( See Hydropower section in Market and Industry chapter.) ( p See Figure 49.) Oceania (excluding China), Japan and India. Investment in Europe totalled USD 40.9 billion in 2017, a significant Considering all financing of renewable energy (but excluding drop (36%) from 2016. Asset finance accounted for 74% of the hydropower larger than 50 MW), China accounted for a record region’s investment, at USD 30.4 billion, of which USD 26.7 billion 45% of the global investment total, up from 35% in 2016. China was invested in wind power and USD 2.8 billion was invested in was followed by Europe (15%), the United States (14%) and Asia- solar power. Small-scale distributed capacity in Europe fell sharply Oceania (excluding China and India; 11%). Smaller shares were in 2017, to USD 6.6 billion, due in part to a significant reduction (by seen in the Americas (excluding Brazil and the United States, 5%), more than half) in the United Kingdom. India (4%), the Middle East and Africa (4%) and Brazil (2%). The United Kingdom – Europe’s largest national investor in The top 10 national investors consisted of four developing or renewable energy in 2016 – saw total investment fall 65% to emerging countries and six developed countries. In addition to USD 7.6 billion. This decline reflected an end of subsidies for China and the United States, top countries included Japan, India onshore wind and utility-scale solar power and a substantial and Germany. The next five countries were Australia, the United gap in time between auctions for offshore wind power projects. Kingdom, Brazil, Mexico and Sweden. Germany took over as the largest European investor at China’s investment in renewable power and fuels reached a record USD 10.4 billion, despite a 35% reduction from 2016. Germany’s USD 126.6 billion in 2017, up 31% over 2016. Most of this total investment decline reflected investors’ uncertainty as the country (USD 103.3 billion) was in asset finance, which increased 14% shifts away from feed-in tariffs to auctions for all technologies. relative to 2016. In 2016, China invested roughly the same amount Although Europe’s two biggest markets saw reductions in 2017, in solar and wind power; however, in 2017 the country experienced investment increased in several other countries in the region, a boom in overall solar power investment, up 58% to USD 86.5 billion, including Sweden (up 127% to USD 3.7 billion), the Netherlands whereas total investment in wind power declined by 6%. (up 52% to USD 1.8 billion) and Greece (up 287% to USD 0.8 billion). China accounted for a record % 45 of all financing in renewable energy i Regions presented in this chapter reflect those presented in UN Environment’s Global Trends in Renewable Energy Investment 2017 (Frankfurt: 2017), and differ from the regional definitions across the rest of the GSR, which can be found at http://www.ren21.net/GSR-Regions . ii The Chinese government estimates that hydropower facilities of all sizes completed in 2017 represent an investment of CNY 61.8 billion (USD 9.8 billion), from China National Energy Administration, ”National electric power industry statistics in 2017”, 22 January 2018, http://www.nea.gov.cn/2018-01/22/c_136914154.htm (using Google Translate). 141

142 RENEWABLES 2018 GLOBAL STATUS REPORT The United States remained the largest individual investor shift in policy from a generous feed-in tariff (FIT) to tendering among developed economies, with a total of USD 40.5 billion for projects larger than 2 MW. Investment in both solar and wind in 2017, a decrease of 6% compared to 2016. Utility-scale asset power declined in 2017, whereas investment in biomass increased finance remained stable, at USD 29.3 billion, with wind power 120%, due in part to a shift towards biomass on the part of some accounting for the majority (67%). Although small distributed solar power developers as well as to a looming FIT reduction. capacity (rooftop and other solar power systems of less than Other markets in the region with decreases included Thailand 1 MW) also attracted significant sums, the total of USD 8.9 billion (down 72% to USD 700 million), Chinese Taipei (down 10% was down 12% from 2016, due in part to a restructuring of the to USD 600 million) and the Philippines (down 77% to market. Investment in US public markets fell again in 2017, to USD 300 million). However, some countries saw noteworthy USD 1.0 billion, from a high of USD 8.9 billion in 2015. increases in investment, including Indonesia (up 67% to In Asia-Oceania (excluding China and India) investment fell 12% USD 1.0 billion) and Pakistan (up 42% to USD 700 million). The to USD 31.4 billion – the lowest amount since 2013, due largely modest renewable energy investment figures in the region to a decline in Japan. Japan’s investment continued to fall in resulted largely from policy uncertainty, particularly in Indonesia, 2017, down 28% from 2016 to USD 13.4 billion. Investment was the Philippines, Thailand and Vietnam. hampered by uncertainties related to grid connection and to a Global New Investment in Renewable Power and Fuels, by Country or Region, 2007-2017 49 FIGURE . United States Europe Billion USD Billion USD 128.4 49.2 46.7 50 Europe 43.1 120 40.5 40.6 113.9 39.1 39.2 40 35.9 35.4 33.7 30 100 23.9 88.9 20 82.5 81.3 80 10 67.9 67.4 64.1 62.9 59.4 0 60 2017 2016 200720082009201020112012201320142015 40.9 United States 40 (excl. United States & Brazil) Americas China Billion USD 20 14.4 13.4 15 12.5 12.4 11.4 10.4 9.6 10 0 Asia & Oceania 6 5.5 5.9 2017 2007200820092010201120122013201420152016 4.9 (excl. China & India) 5 Americas (excl. United States & Brazil) 0 2007200820092010201120122013201420152016 2017 China Billion USD 126.6 Brazil Brazil 121.2 120 Billion USD India 11.5 12 10.2 9.8 8.1 7.7 7.8 96.9 7.4 100 6.7 8 6 5.6 (excl. China & India) Asia & Oceania 4.3 85.3 4 Billion USD 80 0 60 2007200820092010201120122013201420152016 2017 53.1 Africa & Middle East 51.2 63.4 50 58.3 45.1 60 48.2 40 Africa & Middle East 35.7 India 41.5 31.4 30.9 Billion USD Billion USD 38.1 40 30 25.2 13.8 13.7 15 15 13.3 19.8 10.9 25.3 10.2 20 10.1 9.9 9.2 9.0 9 14.5 8.3 8.4 10 10 8.0 12.8 16.1 13.7 20 6.8 6.4 5.7 10 4.2 4.2 5 5 3.2 2.3 1.9 1.7 0 0 0 0 2017 2007200820092010201120122013201420152016 2007200820092010201120122013201420152016 2007200820092010201120122013201420152016 2017 2017 2007200820092010201120122013201420152016 2017 Note: Data are in current USD and include government and corporate R&D. Source: BNEF. 142

143 05 Investment in India declined 20% compared to 2016, to a total of Brazil's 2017 investment was in wind power, at USD 3.6 billion (down 18% from 2016), and in solar power, which rose 204% to of USD 10.9 billion. Approximately USD 6.7 billion was invested USD 1 billion. in new solar power capacity (up 3%), and USD 4 billion was invested in wind power during 2017 (down 41%). Investment in the Middle East and Africa combined increased 11% in 2017, to USD 10.1 billion, with substantial increases in Egypt In the Americas (beyond Brazil and the United States) investment and the United Arab Emirates. Investment leapt nearly six-fold in totalled USD 13.4 billion (up 124%). Investment in both Mexico INVESTMENT FLOWS Egypt, to USD 2.6 billion, and 29-fold in the United Arab Emirates, and Argentina jumped roughly nine-fold, to USD 6 billion and to USD 2.2 billion. In Jordan, investment rose 26% to a record USD 1.8 billion, respectively. Other countries in the region saw USD 1.1 billion. At the same time, however, South Africa continued smaller increases. For example, investment was up in Chile (up to experience a decline, with investment down to USD 102 million 55% to USD 1.5 billion), Peru (up 66% to USD 300 million) and in 2017 from a high of USD 5.6 billion in 2012. Financing in Costa Rica (up 31% to USD 300 million). Morocco also fell relative to 2016 (down 48% to USD 200 million). Brazil’s total investment was USD 6 billion, an increase of 8% from 2016, but this was far below the peak total of USD 11.5 billion in 2008, when the global biofuels boom was still in full swing. Most United States Europe Billion USD Billion USD 128.4 49.2 46.7 50 Europe 43.1 120 40.5 40.6 113.9 39.1 39.2 40 35.9 35.4 33.7 30 100 23.9 88.9 20 82.5 81.3 80 10 67.9 67.4 64.1 62.9 59.4 0 60 2016 200720082009201020112012201320142015 2017 40.9 United States 40 (excl. United States & Brazil) Americas China Billion USD 20 14.4 13.4 15 12.5 12.4 11.4 10.4 9.6 10 0 Asia & Oceania 6 5.5 5.9 2007200820092010201120122013201420152016 2017 4.9 (excl. China & India) 5 Americas (excl. United States & Brazil) 0 2017 2007200820092010201120122013201420152016 China Billion USD 126.6 Brazil Brazil 121.2 120 Billion USD India 11.5 12 10.2 9.8 8.1 7.7 7.8 96.9 7.4 100 6.7 8 6 5.6 (excl. China & India) Asia & Oceania 4.3 85.3 4 Billion USD 80 0 60 2017 2007200820092010201120122013201420152016 53.1 Africa & Middle East 51.2 63.4 50 58.3 45.1 60 48.2 40 Africa & Middle East 35.7 India 41.5 31.4 30.9 Billion USD Billion USD 38.1 40 30 25.2 13.8 13.7 15 15 13.3 19.8 10.9 25.3 10.2 20 10.1 9.9 9.2 9.0 9 14.5 8.3 8.4 10 10 8.0 12.8 16.1 13.7 20 6.8 6.4 5.7 10 4.2 4.2 5 5 3.2 2.3 1.9 1.7 0 0 0 0 2017 2007200820092010201120122013201420152016 2017 2007200820092010201120122013201420152016 2017 2007200820092010201120122013201420152016 2007200820092010201120122013201420152016 2017 143

144 RENEWABLES 2018 GLOBAL STATUS REPORT In 2016, emerging and developing economies maintained a INVESTMENT BY TECHNOLOGY narrow lead in solar power investment and fell behind developed New investment in renewable energy in 2017 continued to be economies in wind power investment. In 2017, however, due dominated by solar PV and wind power, accounting for roughly primarily to China, these countries accounted for the bulk of 57% and 38%, respectively. Solar power was the only technology solar power investment and recovered a small lead in wind to witness an increase in 2017, with new investment up 18% power investment. Solar power investment declined 17% in relative to 2016, to USD 161 billion. developed countries (to USD 45.4 billion), while it increased 41% in developing countries (to USD 115.4 billion). Investment in wind Investment in all other technologies was down in 2017. The most power declined during 2017 in developed countries (down 19% substantial declines in dollar value were seen in wind power to USD 52.4 billion) and in developing countries (down 4% to i (down 12% to USD 107 billion), in biomass/waste-to-energy USD 54.8 billion). (down 36% to USD 4.7 billion) and in geothermal power (down 34% to USD 1.6 billion). Investment in biofuels declined 3% to Large-scale hydropower projects over 50 MW in size represented New Investment in 2007 (Billion USD) ( p See Figure 50.) USD 2.0 billion. the third most important sector (after solar and wind power) for renewable energy investment in 2017. Translating hydropower capacity additions into asset finance dollars per year is not straightforward because the average project takes four years to build. Although BNEF does not track detailed statistics for large- scale hydropower projects, it estimates that asset financing for large-scale hydropower projects reaching financial go-ahead in 2017 totalled around USD 45 billion, up 108% from 2016. i Includes all waste-to-power technologies but not waste-to-gas. FIGURE Global New Investment in Renewable Energy by Technology in Developed, Emerging and Developing Countries, 2017 . 50 Change TechnologyNew Investment in 2007 (Billion USD) relative to 2016 Solar 45.4 + 18 % Solar power power 86.5 28.9 115.4 Wind 52.4 - Wind power 12 % power 36.118.7 54.8 2.3 Bio-power Bio-power - 36 % 2.3 0.2 Small-scale Small-scale - 14 % hydropower hydropower 3.0 1.7 - Biofuels Biofuels 3 % 0.3 Developed countries Geothermal 0.6 Geothermal - 34 % power China power 1.1 Other developing and emerging countries Ocean 0.2 Ocean - 14 % energy energy 0 100 60 80 120 20 0 40 Note: Total values include estimates for undisclosed deals as well as estimates for small distributed capacity and corporate and government R&D. Source: BNEF. 144

145 05 Venture capital and pri - INVESTMENT BY TYPE investment vate equity i (R&D) spending rose 6% in Global research and development (VC/PE) in renewable Solar 2017, to a record high of USD 9.9 billion, with the increase driven energy decreased 33% entirely by corporate R&D. Government R&D stayed flat relative in 2017, to USD 1.8 billion, power to 2016, at USD 5.1 billion, while corporate R&D increased 12% to continuing a downward USD 4.8 billion. Europe was again the biggest regional investor trend as the sector co ntinues to dominate INVESTMENT FLOWS in R&D and witnessed an 8% increase in 2017, to USD 2.7 billion. matures and as R&D in investment in renewable The United States out-spent China for the first time since 2011, wind and solar power energy increasing R&D investment 8% to 2.1 billion. China’s investment moves increasingly into remained steady at USD 2 billion. the hands of large man - ufacturers. As in previ - Total R&D spending in 2017 was up for all sectors except ocean ous years, solar power companies attracted the most VC/PE energy, which remained flat. R&D investment in solar power – the - investment, with more than two-thirds of the total. VC/PE invest largest recipient of all such investment – increased 6% to ment fell across all sectors, with solar power dropping 38% to USD 4.7 billion; wind power rose 6% to USD 1.9 billion (a new USD 1.2 billion and wind power dropping 12% to USD 433 million. high); and biofuels increased 2% to USD 1.7 billion. The United States remained the centre of worldwide VC/PE of utility-scale projects again accounted for the Asset finance investment in renewables, representing 43% of the total, with vast majority of total investment in renewable energy. It totalled USD 770 million (down 57% from 2016). USD 216.1 billion during the year, an increase of just 0.2% relative – which is not counted as part of the Acquisition activity to 2016, led by solar power projects in China, which totalled USD 278.9 billion in new investment – slipped 1% to USD 64.9 billion. USD 114 billion, after four years of growth. Both corporate investment, or investment Small-scale distributed capacity mergers and acquisitions (M&A; the buying and selling of in solar PV systems of less than 1 MW, increased 15% to companies) and public market investor exits fell in 2017: M&A USD 49.4 billion. Small-scale investment in China jumped by more than half to USD 14.3 billion, and public market investor five-fold in 2017, to USD 19.6 billion, taking the global lead and exits by more than 80% to USD 1.2 billion. Private equity buy-outs accounting for almost 40% of the global total. Investment was quintupled to USD 11.2 billion, a record high. Asset acquisitions down in this category in both the United States (-12%) and Japan and refinancing remained the largest single category of (-38%) in 2017, to USD 8.9 billion and USD 5.4 billion, respectively. acquisition activity, with deals worth USD 87.2 billion, up 14% Public market investment in renewable energy companies and from 2016. Within this category, Europe overtook the United funds fell 6% to USD 5.7 billion, the smallest amount seen since States to lead, increasing its activity 26% to USD 37.2 billion. 2012. Funds raised by initial public offerings (IPOs) fell almost Activity increased in the United States (up 4% to USD 30.8 billion) 50% to USD 1.4 billion. In the United States, investment via public but decreased in China (down 40% to USD 3.8 billion). In other markets in “yield companies” (yieldcos) extended its decline from regions, substantial growth was seen in asset acquisitions and a multibillion-dollar peak in 2015. Overall, solar power companies refinancing. For example, activity in Brazil doubled to USD 6.1 billion, and related funds raised USD 2.5 billion (up USD 1 billion over and activity in India quadrupled to USD 1.3 billion, starting from 2016), while wind power companies raised USD 2.4 billion a low base. (down 44% compared to 2016). See Sidebar 5 in GSR 2013 for an explanation of investment terms used in this chapter. i Public Asset Global Acquisition Venture Small-scale finance market research and capital and distributed activity investment capacity private development equity investment 216 9.9 49.4 5.7 114 1.8 billion USD billion USD billion USD billion USD billion USD billion USD 145

146 RENEWABLES 2018 GLOBAL STATUS REPORT RENEWABLE ENERGY INVESTMENT PERSPECTIVE IN Investment in new In 2017, renewable power technologies continued to attract far renewable power capacity more investment dollars than did fossil fuel or nuclear power in 2017 was more than generating plants. An estimated USD 310 billion was committed to constructing new renewable power plants (including i without large-scale hydropower, plus an USD 265 billion twice estimated USD 45 billion for hydropower projects larger than 50 MW). This compares to approximately USD 103 billion that in fossil fuels and committed to fossil fuel-fired generating capacity and nuclear combined USD 42 billion for nuclear power capacity. Overall, renewable energy accounted for about 68% of the total amount committed ( p to new power-generating capacity in 2017. See Figure 51.) i This number is for renewable power asset finance and small-scale projects. It differs from the overall total for renewable energy investment (USD 278.9 billion) provided elsewhere in this chapter because it excludes biofuels and some types of non-capacity investment, such as equity-raising on public markets and development R&D. . Global Investment in New Power Capacity, by Type (Renewables, Fossil Fuels and Nuclear Power), 2017 FIGURE 51 Hydropower 42 billion USD 45 >50 MW billion USD Nuclear 10 % power 265 % 9.2 billion USD 103 billion USD  (    > )   Fossil fuels 22.6 % % 58.2 Source: BNEF. Note: Renewable investment data in figure exclude biofuels and some types of non-capacity investment. The bulk of the USD 45 billion in asset finance recorded for hydropower larger than 50 MW in 2017 (USD 28 billion) represents a single 16 GW project in China, to be completed by 2022. 146

147 05 SOURCES OF INVESTMENT Most renewable energy projects are financed either on-balance- sheet by a utility, by an independent power producer or other investor, or by non-recourse project finance that is largely made up of debt from banks. Generally, non-recourse debt finance for Renewables made up projects takes the form of bank loans. In 2017, on-balance-sheet INVESTMENT FLOWS financing by utilities and energy companies was up 2% from 2016, to USD 121.5 billion, and non-recourse project finance decreased % 68.2 4%, to USD 91.2 billion. of g lobal investment i jumped 67% to a record In 2017, global issuance of green bonds in new power capacity USD 163.1 billion. The strong growth in green bonds was related to a leap in the volume of asset-backed securities issued (mostly linked to residential solar PV systems in the United States), to growth in green bond issuance by sovereign governments, including those of France, Fiji and Nigeria, and to a jump in issuance by non-financial corporations. In addition to commercial banks and bond issues, the other major source of debt for renewable power assets is borrowing directly from the world’s large array of national and multilateral development banks. Aggregate figures for development bank lending to renewables in 2017 were not yet available at the time of publication. Among those that had published data in early 2018, the European Investment Bank provided finance for renewables totalling EUR 4.7 billion (USD 5.6 billion) in 2017, up from EUR 3.9 billion in 2016. Institutional investors such as insurance companies and pension funds tend to be more risk-averse and therefore are interested in the predictable cash flows of a project already in operation. Nonetheless, in Europe, direct investment by institutional investors in renewable energy hit a record in 2017, totalling USD 9.9 billion, up 42% from 2016. i Green bonds include qualifying debt securities issued by development banks, central and local governments, commercial banks, public sector agencies and corporations, asset-backed securities and green mortgage-backed securities, and project bonds. 147

148 06 ENERGY SYSTEMS INTEGRATION AND ENABLING TECHNOLOGIES In 2017, BMW launched a 15 MW battery storage farm with 700 second-life i3 electric vehicle batteries to store electricity from its 10 MW wind power facility. The four wind turbines produce around BMW wind power 26 GWh annually to power machines that make electric vehicles, including the model i3, at the BMW factory project and battery in Leipzig, Germany. Linking wind power with old electric vehicle batteries will enable the company to reduce its demand for electricity at peak times while more effectively integrating renewable energy into the power storage farm, grid during off-peak periods. Leipzig, Germany

149 06 ENERGY SYSTEMS INTEGRATION AND ENABLING TECHNOLOGIES Energy systems integration, as defined here, is the significant he increased deployment of renewable energy is 1 This is driving a transformation of energy systems. elimination of technical, physical, organisational and legal T occurring mostly in the electricity sector, where many impediments to high penetration of renewable energy (in countries have seen significant growth in deployment driven by particular VRE) in energy systems – including in power grids, the rapid decline in solar photovoltaic (PV) and wind power costs, district thermal systems and transport fuelling systems. Such and several frontrunners are reaching relatively high shares of integration encompasses changes and optimisation in the 2 However, variable renewable energy (VRE) in their electricity mix. planning, design and implementation of energy-related supply- the vast majority of countries are in the early stages of developing and demand-side technologies, infrastructure, markets and renewable electricity portfolios. In addition, while modern regulatory frameworks to facilitate much greater use of renewable i and the transport renewables contribute to heating and cooling energy sources across all end-use sectors while establishing, 3 Whatever the rate of sector, growth has been relatively limited. maintaining or improving sustainable, secure, adequate, reliable renewable energy uptake in various sectors, challenges related to and affordable energy services. 4 its integration into existing energy systems remain. i “Heating and cooling” in this chapter refers to thermal applications including climate control/space heating, heat for industrial use, cooking, agricultural drying, etc. 149

150 RENEWABLES 2018 GLOBAL STATUS REPORT buildings and industry CHALLENGES OF ENERGY SYSTEMS In 2017, at least 10 can assist in integrating countries generated more rising shares of VRE and INTEGRATION than reduce its curtailment; it The challenges of systems integration vary by local, national, and also can open pathways regional needs and conditions, but all pertain to the question of for renewable electricity how renewable energy markets can continue to expand in an % 15 into new end-use orderly manner. of their electricity from markets, provided that solar PV and wind power ity. tric ions of variable trat Variable renewable elec High pene the additional demand renewable electricity can be impeded by physical, technical, is aligned with system regulatory and market constraints that are specific to the requirements and does resource, but also by the characteristics and conditions of the not instead increase 10 wider energy system, including a relative lack of flexibility in the system stress. operation of system resources, whether on the supply or demand The basic technologies required for sector coupling are in place. 5 side. This lack of system flexibility, combined with transmission For example, heat pumps are a mature technology that allows bottlenecks and inadequate system information, can force 11 i efficient penetration of electricity into thermal markets. Surplus uneconomical curtailment of VRE and raise overall system costs, VRE generation can be used to produce thermal energy in 6 as well as impede the advancement of renewables. individual buildings, for district heating and cooling (DHC) systems 12 In systems that rely predominantly on thermal generation, efforts and for industrial purposes. Electric vehicle (EV) markets are to maintain system reliability traditionally have focused on the expanding rapidly, although from a small base. The challenge lies in co-ordinating the two objectives – expanded renewable challenges and solutions associated with relatively few large, energy markets and effective VRE integration – which requires centralised dispatchable generators designed for continuous 7 timely information flow and the appropriate market design and operation, with relatively long start and stop times. A system 13 technologies for optimal management of demand and supply. with high proportions of wind and solar energy, however, requires ( p See, for example, Electric Vehicles section in this chapter.) somewhat different strategies, especially greater flexibility of both 8 generation and demand over varying time frames. The system DHC systems offer a ready pathway Renewable thermal energy. may need market, regulatory or technical changes to enable to use renewable thermal energy (such as solar, geothermal and VRE and associated technologies to provide ancillary services to biomass), as well as renewable electricity, as a substitute for fossil fuel maintain security of supply. Additional storage or interconnection sources, enabling the aggregation of multiple and diverse consumer among grid systems (where technically possible) may be required needs at a scale that can be more flexible and more economically 14 at some stages of development to avoid energy shortfalls, efficient than are individual household or building systems. although current studies have indicated that such requirements Challenges for incorporating renewable heating and cooling into 9 arise at relatively high levels of penetration. thermal energy systems, including DHC systems, include: potentially Sector coupling and expanded markets for renewable high initial costs for new networks; high return temperatures in Sector coupling refers to the integration of energy electricity. established DHC systems; lack of data on both available renewable supply and demand across electricity, thermal and transport resources and local thermal energy demand; lack of available applications, which may occur via co-production, combined space within urban environments for new geothermal, solar and use, conversion or substitution. The coupling of the electricity biomass installations; lack of temporal correlation between resource sector with efficient transport and heating and cooling in availability and demand in the case of solar heat; and high biomass fuel cost and logistical challenges related to biomass fuel supply 15 and plant siting. Some of these challenges are mitigated by the relative demand density in cities; fuel substitution and conversion at existing thermal plants; seasonal thermal storage; and diversification of supply and demand, such as a combination of flexible biomass 16 and binary geothermal plants for co-generation of heat and power. Liquid renewable fuels can Renewable gases and liquid fuels. serve road transport, aviation and marine applications. Properties of some biofuels, such as sugar-derived ethanol or biodiesel (fatty acid methyl ester), are similar enough to their fossil 17 counterparts to allow blending. Generally, blending levels and the integration of renewable fuels are subject to technological compatibility (e.g., fossil fuel-based infrastructure) and often to policy-influenced market shares (e.g., blending mandates), among others. Some biofuels may be used unblended: for example, ethanol can be used in road vehicles with some modification (“flex-fuel vehicles”), and Surplus here refers to electricity from variable renewable energy sources that exceeds instantaneous demand. i Drop-in biofuels are liquid bio-hydrocarbons that are functionally equivalent to petroleum fuels and are fully compatible with existing petroleum infrastructure. ii 150

151 06 ii ENERGY SYSTEMS INTEGRATION AND ENABLING TECHNOLOGIES – such as biojet and advanced biodiesel “drop-in biofuels” INTEGRATING VARIABLE RENEWABLE – are being developed for use in jet and diesel applications. ( See Bioenergy section in Market and Industry chapter.) p ELECTRICITY Biomethane and hydrogen produced with renewable energy may The primary role of electric power systems is to ensure that be injected into natural gas distribution grids and subsequently enough electricity is available at all times to meet demand safely, used for thermal, electricity or transport applications. Blend reliably and at a reasonable cost. To accomplish this objective, levels for hydrogen are limited by end-use constraints, pipeline electricity system operators and regulators have always needed infrastructure and existing natural gas composition, and vary by to plan ahead, arranging for system resources that can meet location, but blending of 5-20% by volume is considered feasible expected demand at all times and for the system to be resilient 23 without requiring significant modifications to existing pipeline enough to withstand sudden changes in conditions. 18 infrastructure and end-use appliances. Integrating high penetrations of VRE may create challenges Integration challenges facing biogas include the costs of for system balancing (over periods of seconds, minutes, days upgrading the biogas to meet the quality standards in place for and even seasons) as well as for power quality and equipment 24 natural gas grids, and the complications in distributing hydrogen reliability. The challenges vary depending on the specific 25 because of its low volumetric density and purity requirements characteristics of a given electricity system. 19 for transport applications. The development of a lower-cost However, the need to prepare for VRE integration is sometimes pathway for hydrogen made from renewable energy (and derived overshadowed by misconceptions that misrepresent or overstate ammonia) is attracting interest for use in the chemical industry the scale of challenges, especially at the early stages of VRE 20 and in fuel cell vehicles. 26 i deployment. shares of VRE can be Integrating relatively low Transmission Distributed renewable electricity production. managed with modest adjustments, such as improved resource and distribution networks may benefit from distributed forecasting, improved grid codes (interconnection standards), better generation, especially when located within transmission- real-time information flow on VRE output, and sensible planning constrained areas. However, the proliferation of distributed of geographical dispersion and balancing of wind and solar power 27 energy resources, particularly solar PV, has changed network installations (which often have complementary generation profiles). operational and planning requirements. High penetrations of At relatively high levels of VRE deployment, additional measures are distributed generation cause bi-directional flows of energy, which needed, including designing methods to achieve greater flexibility 21 may require changes to infrastructure and system operations. from existing and new system resources to balance supply and 28 The adequacy of simple volumetric tariff structures to charge for demand and to maintain grid voltage and frequency stability. network services is already challenged by the growth in appliances In 2017, at least 10 countries generated more than 15% of their with high intermittent demand, such as air conditioners, and is 29 electricity with solar PV and wind power. See Figure 8 in ( p 22 further stressed by behind-the-meter generation. In Denmark, wind power accounted Global Overview chapter.) 30 This chapter examines efforts to integrate variable renewable for a record 50.2% of annual electricity generation. Several electricity into existing energy systems and to steer the evolution countries met far higher shares of their electricity demand with of energy systems to better accommodate renewable energy. non-variable renewables, including hydropower, biomass and It also reviews the status of some technologies that enable geothermal, as well as concentrating solar thermal power (CSP) with storage. renewable energy integration. i VRE shares in the single-digit percentages would be presumed to be relatively low. However, what constitutes high penetration in the context of integration challenges is highly location- and system-specific. ( p See Feature chapter in GSR 2017.) 151

152 RENEWABLES 2018 GLOBAL STATUS REPORT Some countries and regions are managing very high short- Many options are available for ensuring reliability while integrating high proportions of VRE. These involve a combination of: term shares of VRE in the generation mix. On 28 October 2017, 1) making VRE more suitable for the broader energy system, and wind power generated a record 24.6% of the European Union’s 2) making the entire energy system (predominantly, but not limited (EU's) electricity demand, meeting 109% of demand in Denmark 40 31 The first category In South to, the power sector) more suitable for VRE. followed by 61% in Germany and 44% in Portugal. of options includes improved resource forecasting, combining Australia, during the 2016-2017 financial year, wind power met different types of variable resources with appropriate geographical over 78% of demand for 5% of the time (and 143% of demand distribution, and operational and technology improvements. The for one five-minute period), and solar PV met more than 30% of 32 In the US state of Texas, for a short second involves measures to improve the flexibility and resilience demand for 10% of the time. period in late 2017, wind power met over 54% of demand for the of energy systems. These include improving energy system 33 And for a brief period in May 2017, solar main grid operator. operations and performance through changes in market design PV in the United Kingdom generated enough electricity to meet and regulatory frameworks; improved planning and deployment 34 almost one-quarter of the country’s demand. of grid infrastructure, flexible generation, and information and control technology; energy storage; demand-response capability; To date, most flexibility in power systems has been provided 41 and coupling of the electricity, thermal and transport sectors. by transmission interconnections with neighbouring systems ( See Feature chapter, and Table 4 in GSR 2017.) p and by flexible generation capacity (particularly hydropower The challenges associated with integrating high shares of VRE – and and natural gas-fired power plants). However, these traditional the mix of solutions selected – vary from place to place and depend flexible assets are not keeping up with fast-growing VRE. In on the flexibility of existing energy systems. Effective integration of 2016, an estimated 130 gigawatts (GW) of new flexible and VRE calls for holistic approaches to infrastructure planning, systems utility-scale storage capacity came online, the lowest level in 42 operations techniques, markets and rate regulations. more than a decade; meanwhile, capacity from solar PV and wind power has risen rapidly in recent years, with more than Denmark’s success in integrating and balancing VRE, for example, 35 130 GW added in 2016 alone. can be attributed in large part to the flexibility of the system. This Rising penetration of solar and wind power has led to their flexibility is due to several factors including the unusual ability i ; curtailment in some countries, due to structural, regulatory or to vary the output of coal-fired power plants over a wide range day-ahead weather forecasting and real-time updates that enable operational constraints. In China, for example, approximately quick responses to changes in VRE output; transmission planning 56.2 terawatt-hours (TWh) of solar PV and wind generation in parallel with new generating capacity; the coupling of electricity was curtailed in 2016 due to several factors, including lack of with heat supply, including significant capacity of biomass transmission capacity to transport electricity to high-demand combined heat and power; and the use of domestic balancing centres, excess power supply and regulations granting priority 36 The share of wind generation in China markets and interconnection with neighbouring grids to freely buy to electricity from coal. 43 subject to curtailment declined from 17% in 2016 to 12% in 2017 and sell power to balance solar and wind energy output. (41.9 TWh), and preliminary data indicate that curtailment of solar 37 Germany is experiencing PV output declined also, to about 6-7%. congestion on its grids due to rising VRE output and increased trade with its neighbours; this is limiting the flow of wind power from turbines in the north to high-demand regions in the south, leading 38 About 3.7 TWh of renewable electricity (mostly to curtailment. wind power), or about 2.3% of annual renewable generation, was 39 curtailed in Germany during 2016. Raising and lowering of output from wind and solar power is typically faster and more accurate than for coal and nuclear power plants i Coal-fired power plants typically have a minimum load of 40-50% of their capacity and have long lead times and high costs for starting, with even a hot start taking 1-3 hours (see endnote 43). 152

153 06 first harmonised grid code, which entered into force during 2017, MAKING VARIABLE RENEWABLE ENERGY EASIER TO INTEGRATE 60 opens the door for such requirements. Despite a pervasive misconception that the growing use of Studies have shown that wind and solar power, utilising suitable VRE resources must result in unacceptable cost and reliability inverter technology, can provide fast frequency response, voltage penalties, VRE systems can be deployed without prohibitive control as well as ramping control (regulation and dispatchable additional expenditures and without the need for significant 61 44 Coal-fired load following), much like conventional generators. Further, state-of-the-art additional reserve capacity or storage. and nuclear power plants have minimum load levels below which solar and wind energy generators can provide a variety of relevant 45 they cannot reduce power (which can be 40% or more of a coal Utility-scale solar PV system services to stabilise the power grid. plant’s maximum capacity), and nuclear plants typically offer plants, for example, can provide reactive power as well as voltage 46 limited load-following (ramping) capability; in contrast, wind and Wind turbines can provide grid services and frequency support. solar power facilities can be very flexible in this regard, subject to such as voltage control and frequency regulation, as well as ride- 62 i 47 the instantaneous availability of the wind and solar resources. Market reforms under way in when other plants fail. through Also, ramping of output from wind and solar power is typically Europe and elsewhere are enabling VRE to play a wider role in 63 48 faster and more accurate than for coal and nuclear power plants. p See Policy Landscape chapter.) ( supporting the grid. Testing of a 300 megawatt (MW) solar PV farm in California VRE resource forecasting predicts the output of solar and wind during 2016 demonstrated the potential for solar power plants power plants over different time frames, helping planners and to provide grid frequency regulation, voltage stability and system operators to cost-effectively schedule dispatchable power 49 reactive power control, as well as to perform other valuable tasks Tools for wind and solar forecasting plants and spinning reserves. for grid balancing. The plant can be operated at less than full continue to advance, driven in large part by rising shares of VRE 50 capacity in order to shift output up or down as wholesale market Increasingly, on-site forecasting of generation in grid systems. ENERGY SYSTEMS INTEGRATION AND ENABLING TECHNOLOGIES prices change, and, on demand, it can contribute to frequency wind and solar resources is a requirement of feed-in tariff rules and 64 regulation more quickly than can natural gas-fired power plants. power purchase agreements (PPAs), as well as being important for 51 Whether it is worthwhile to operate in this way depends on the optimising plant operations and performance. revenues available in ancillary services markets and their ability Day-ahead forecasting of wind power can be well over 90% accurate 65 to compensate for lost electricity sales. 52 on average and more than 97% accurate less than one hour ahead. Solar (both PV and CSP) and wind power also are aiding In 2017, Texas grid operator ERCOT planned to launch intra-hour integration by including storage capacity at installations and by wind forecasting based on improved modelling to help manage ( See Energy incorporating storage into wind turbine design. p plant variability and optimise generation assets. This approach will Storage section in this chapter, and Market and Industry chapter.) provide ERCOT with forecasts for the next two hours at five-minute 53 Improvements in low-wind turbine technologies are broadening intervals, which align with the system dispatch intervals. their operating range and reducing variability in output, while Solar PV plant operators continued to adopt a variety of satellite, 66 wind turbines offshore are providing more consistent output. cloud imaging and infrared technologies to improve short-term Integrated systems planning is informing the integration and 54 Public and private efforts to forecasting and increase revenues. deployment of renewable energy technology, reflected in the 55 In general, improve solar forecasting tools advanced during 2017. regional distribution of VRE plants in large markets, co-locating innovations in weather forecasting, image processing, satellite of wind and solar power projects and east-west orientation of technology and digitalisation are providing more accurate solar 67 solar PV panels. forecasting data, helping to increase plant revenue and minimise 56 balancing costs for plant and transmission system operators. Also important for renewable energy integration, particularly for high shares of VRE, are recent developments in software controls and power electronics that are enabling wind plants to supply the inertia currently provided by large spinning turbines (found in thermal and hydropower plants) to help stabilise grid electricity. This ability to provide “synthetic inertia” – responding to rapid changes in frequency by delivering a power boost, generally after a large power plant has gone offline – is helping to overcome 57 some of the integration challenges facing VRE. Wind turbine manufacturers have continued to improve their synthetic inertia technology and are testing second-generation 58 Hydro-Québec TransÉnergie was the first grid operator systems. to mandate (in 2005) that new wind farms had synthetic inertia 59 Grid capability, and such requirements appear to be spreading. operators in Brazil, in the Canadian province of Ontario and in the US state of Texas have adopted mandates, and Europe’s i “Ride-through” is the capability of electric generators to continue operating during short periods when there is a drop in voltage, and thereby to “ride through” the dip. 153

154 RENEWABLES 2018 GLOBAL STATUS REPORT The EU is providing funding to help build four major transmission lines MAKING ENERGY SYSTEMS MORE SUITABLE FOR VARIABLE across Europe that will support the integration of VRE, particularly RENEWABLE ENERGY wind power. These include projects in Germany and Romania, as To ease the integration of VRE into power systems, governments well as the Biscay Gulf France-Spain interconnection and the Viking around the world are undertaking planning studies and enacting 75 Link interconnector between Denmark and the United Kingdom. policies that address system needs with increased VRE. So far, most In 2017, Denmark approved the Viking Link, which reportedly will be policy developments related to integration appear to have occurred the world’s longest electricity cable, and the country is engaged in in Australia, China, Europe, India and North America. Policies include two other projects to link its electricity grid with its neighbours to sell electricity regulations to improve the speed of system response surplus wind power into a larger market and have access to a larger (e.g., day-ahead scheduling, faster ramping of thermal power plants, 76 The United Kingdom saw supply when VRE output is not sufficient. shorter time scales for dispatch) as well as policies to advance the first power flow through the Western Link between Scotland and the development and deployment of energy storage technologies Wales, which aims to ease transmission bottlenecks and reduce 68 and to enable sector coupling and general grid modernisation. 77 constraints on generation from wind farms in Scotland. In addition, studies have been See Policy Landscape chapter.) p ( Increasingly, electric utilities and systems operators are adjusting undertaken in several countries – including Australia, Canada, China their operations, adding energy storage and digitising systems to and the United States – and in Europe (particularly in Germany) to 69 help integrate VRE, some in response to government initiatives assess the needs of systems that have high VRE penetration. 78 but others of their own accord. In addition to policies and regulations, major transmission In Europe and the western United States, grid operators are infrastructure projects to improve VRE integration were under way expanding their balancing areas. By linking markets (physically during 2017 in a number of countries, including China, India and 70 through transmission infrastructure, and operationally through China, for example, had plans to build 16 new ultra-high- Jordan. trade, for example), VRE production can be spread more widely, voltage direct current lines, in addition to 8 already completed, in increasing its value and enabling surpluses in one area to be used part to connect its high wind and solar power regions to demand 71 in another area or be stored (e.g., Denmark’s wind energy stored in China also has planned significant expansion of its centres. 79 In 2017, power exchanges and Norway’s hydropower reservoirs). pumped storage capability to complement variable solar and wind transmission system operators from 12 European countries were power generation – much of which is located far from load centres building a single intra-day market solution based on a common – and to thereby manage the load on the transmission system and 72 communication and control system, with the first of three phases reduce the investment needed in new transmission capacity. expected to begin operation in early 2018. Experience in Europe In 2017, Chile completed work on a 600-kilometre-long has shown that expanding the balancing area enables system transmission line to connect the country’s two largest power operators to hold less balancing power in reserve, such that grids. Although the project originally was conceived to move fossil 80 balancing costs are declining even as the shares of VRE increase. electricity to the primary load in central Chile, interconnection of In the United States, to maximise the use of renewable output and the systems enables solar PV plants in the sunny north, which to avoid curtailment, California’s Independent System Operator have faced high levels of grid congestion and low prices in has partnered with other utilities in the region to pool resources to the spot market, to export their generation and increase their 73 balance demand every five minutes, maximising the use of the least- Also in 2017, the US state of Missouri saw final approval margins. expensive energy available (which often is VRE); in 2017, the regional of a new transmission line to help integrate more wind power to 74 market used an estimated 161 gigawatt-hours (GWh) of renewable meet state renewable energy goals and reduce electricity rates. 81 Despite the energy that otherwise would have been curtailed. potential benefits of expanding balancing areas, regulatory and other barriers to implementation remain in Europe, the United States 82 and elsewhere. 154

155 06 Demand-side management resources (inverters, solar panels, batteries); and in Illinois, utilities Enabling technologies – the modification of are exploring the potential for smart inverters to strengthen grid 93 can help to accommodate consumer demand through reliability and integrate more VRE. higher shares of VRE by energy efficiency measures, In 2017, European utility TenneT (Netherlands/Germany), contributing to education and financial renewable project developer Vandebron (Netherlands), and the incentives – has been in companies sonnen (Germany) and IBM (United States) launched more flexible use for decades to reduce two utility-scale pilot projects that aim to more cost-effectively energy consumption during and integrated and efficiently integrate VRE into the grid. The pilot projects peak times. Increasingly, i technology to create a network of distributed use blockchain systems utilities and grid operators residential solar PV-linked battery systems in Germany to reduce are using this tool to bottlenecks in the grid and reduce wind curtailment, and to increase demand-side use EV batteries in the Netherlands to balance grid supply and flexibility to help balance variable generation from wind and solar demand. With these projects, TenneT reportedly became the first 83 The Australian Energy Regulator introduced a Demand power. transmission system operator to use a blockchain database to 84 p See ( Management Incentive Scheme in December 2017. manage the networking of battery storage systems and electricity In the United States, the Michigan Policy Landscape chapter.) grids. The blockchain framework is said to ensure transparency Public Service Commission issued a report calling for a new 94 and verifiability of transactions among market participants. 85 Arizona Public Service regulatory framework to do the same. Market, regulatory and technical change are all part of the energy proposed adopting reverse demand response (load shifting) – sector transformation that is under way. The rest of this chapter ramping up dispatchable load from large customers (greater than discusses some of the technologies that aid in the integration of 86 ENERGY SYSTEMS INTEGRATION AND ENABLING TECHNOLOGIES 30 kilowatts) – to manage surplus electricity supply from VRE. renewable energy. Utilities in Australia, Europe, North America and elsewhere deployed large battery storage systems in 2017 to support 87 ( p See Energy Storage electric grids and help integrate VRE. section in this chapter.) Some utilities also are connecting distributed storage-plus-solar using digital systems. For example, in early 2017 Melbourne-based utility AGL Energy launched the first phase of what it called the world’s largest residential virtual power plant. The project aggregates residential battery and solar PV systems through a cloud-connected intelligent control system that enables the utility to discharge the batteries at a time of greatest benefit for customers and the community, and to enable high penetration of VRE in the South Australian grid, while 88 Several utilities in Europe and the United ensuring grid stability. States have partnered with storage, solar and other technology 89 companies to pilot similar concepts. Continuing advances in “smart” technologies – the digitalisation of grid and ultra-high-speed telecommunications networks (along with improvements in cybersecurity) – enable remotely controlled devices, battery systems and other components 90 p See Sidebar 3.) An ( to better manage supply and demand. increasing number of utilities rely on wireless communication with smart appliances, such as thermostats, to reduce consumer 91 In 2017, Enel (Italy) announced plans to demand when needed. invest EUR 4.7 billion (USD 5.6 billion) over a three-year period to digitise its operations, processes and asset base and to improve connectivity in order to aid the integration of VRE and the 92 transition to low-carbon energy. In several US states, utilities are focusing attention on smart inverters to determine how they can help enhance grid reliability. In Hawaii, utilities are working with inverter manufacturers to improve grid stability; in Arizona, pilot projects are using smart inverters to operate a “fleet” of rooftop solar PV systems as a traditional power plant; in California, utilities are focusing on communication standards to develop a common language between smart inverters and the grid to optimise what the utility asks of distributed energy i Blockchain remains at an early stage of development with most projects in the pilot stage. Significant technological, regulatory, and other challenges and uncertain - ties remain, including the potential for blockchain to be very energy-intensive, from World Energy Council, The Developing Role of Blockchain – White Paper, Executive Summary (London: November 2017), pp. 2, 7, https://www.worldenergy.org/wp-content/uploads/2017/11/WP_Blockchain_Exec-Summary_final.pdf. 155

156 RENEWABLES 2018 GLOBAL STATUS REPORT Digitalisation of Energy Systems SIDEBAR 3. The use of information and communication technologies projects focus on customer markets and enabling micro- trading among solar power prosumers. Peer-to-peer trading (ICT) across sectors has been boosted by the declining or virtual marketplaces are already being tested in several costs of sensors and data storage, by faster and cheaper pilot projects at varying scales in Australia, Denmark, France, data transmission and by advances in artificial intelligence. Japan, the Republic of Korea and the United States. In the Digital technologies have been used in the energy sector for United States, for example, New York’s LO3 Energy is using decades, but in recent years their application has expanded blockchain and a micro grid to enable a Brooklyn community rapidly. The ongoing digital transformation of energy has the to buy and sell locally generated renewable electricity peer- potential to bring more efficiency, flexibility and co-ordination to-peer within a small neighbourhood. to the management of energy end-use sectors and across the entire system, with the added benefit of advancing the As energy systems become increasingly digitalised, a series of integration and further deployment of renewable energy. risks come to the forefront, including the security, privacy and ownership of the vast volume of data generated. Numerous Digitalisation is rapidly and fundamentally changing the questions remain to be addressed, including: Which data way in which energy is produced and consumed. On the will be critical and prioritised, and for which stakeholders or supply side, the use of sensors and analytics is helping to sectors? Who should own data from meters and sensors, and reduce operation and maintenance costs and plant outages, who should have access to these data? How best to reconcile and is improving power plant and network efficiencies. On such risks and concerns against the presumed benefits of the demand side, vehicles are becoming smarter and more facilitating new business models and solutions that require connected, energy efficiency in buildings is increasing, and the development of these new data sources? process controls, smart sensors and data analytics are A smarter, digitalised energy system is emerging; however, contributing to cost-effective energy savings in industry. maximising its potential, accelerating the transition and Digitalisation has further potential to transform energy mitigating the risks of the transition require increased systems by integrating energy sectors across supply and awareness and action across a range of sectors and demand (sector coupling) and by improving overall system stakeholders. Smarter energy systems depend on the flexibility. The electricity sector is expected to be central to this deployment of new infrastructure across end-use sectors, transformation, by facilitating: the integration of VRE; efficient across distribution grids (electric, gas and thermal) and on the demand response for energy balancing and security; time- centralised supply side. In parallel, smarter energy systems managed charging of EVs; and the efficient deployment of require interconnection via high-speed communications distributed energy resources such as rooftop solar PV systems. networks that use standardised protocols to effectively With more than 50 million kilometres of power lines deployed integrate ICT with the world’s energy systems. worldwide (enough to cover the distance to Mars), the Finally, some cultural and institutional challenges to the electricity grid is one of the most complex infrastructures in transition may arise as traditional utilities, regulators and existence. Traditionally, electricity flows in the grid have been consumers strive to stay abreast of new ICT. Policies will play managed in a unidirectional manner, with electricity generated a key role in steering developments towards a more secure, in large-scale production plants and with limited participation sustainable and smarter energy future. from the demand side. Digitalisation is helping to change this Source: IEA. See endnote 90 for this chapter. paradigm. In 2016, investment in smart and digital technologies grew to reach over 10% of the estimated USD 300 billion spent in retrofitting, upgrading and expanding grids. New digitally enabled business models are set to reshape the experience of energy consumers as digitalisation redefines their interaction with energy suppliers. Some of these models enable peer-to-peer trading, and others are based on aggregation platforms that allow for higher degrees of customer participation in ancillary services. Traditional utilities, network operators and third parties are developing joint platforms for decentralised energy that include installing rooftop solar PV and batteries behind the meter and operating them as “virtual power plants”. The i in the energy number of projects that are testing blockchain sector has increased rapidly since 2015. Many of these i Blockchain is a decentralised data structure in which a digital record of events (such as a transaction, or the generation of a unit of solar electricity) is collected and linked by cryptography into a time-stamped “block” together with other events. This block is then stored collectively as a “chain” on distri - buted computers. Any participant in a blockchain can read it or add new data. 156

157 06 and can allow (surplus) renewable electricity to serve thermal TECHNOLOGIES FOR 96 loads. Power-to-gas (P2G) technologies enable temporal (seasonal), spatial and sectoral shifts, with the potential use of SYSTEMS INTEGRATION hydrogen fuel (and derived ammonia) in transport and industry, So-called enabling technologies help to integrate VRE into including fertiliser production, and regional trade in renewable the electricity sector and facilitate the coupling of renewable energy. Pumped storage (hydropower) is well established and power with the thermal and transport sectors. They include is the most significant source of electricity storage globally, but energy storage (both electrical and thermal) as well as digital other storage technologies are becoming cost-effective in some communication and control technologies for optimising applications. distributed renewable energy for least-cost resource allocation, Heat pumps. Heat pumps use energy from an external source load balancing and ancillary services. (generally grid electricity) to efficiently provide heating or cooling Such technologies have been advancing in parallel with i services . When used with appropriate control measures and renewables, in part to increase the efficiency and reliability of thermal storage (e.g., thermal mass, hot water tanks, chilled water), energy systems. But they also can help to accommodate higher heat pumps can help to balance the electrical system by shifting shares of renewable energy by contributing to more flexible load away from peak periods, and also to reduce curtailment of and integrated energy systems, provided that the policy and VRE by using (surplus) solar and wind power to meet heating regulatory environment enables this to occur and provides and cooling demand. Heat pumps that are connected to district incentives where needed. This section discusses three types of heating systems also can increase flexibility by using thermal enabling technologies that can aid in integration: energy storage, 97 storage capacities. heat pumps and electric vehicles. EVs can be a source of both demand- and Electric vehicles. ENERGY SYSTEMS INTEGRATION AND ENABLING TECHNOLOGIES 98 Utility-scale electricity storage can advance Energy storage. supply-side flexibility. On the demand side, EVs enable the integration in several ways: it smooths fluctuating output from use of renewable electricity in the transport sector. EVs draw wind and solar power, and it enables the shifting of supply to significant amounts of power, but, as with heat pumps, battery better align with demand, thereby reducing the incidence of charging or hydrogen production can be interrupted when it is 99 curtailment. Customer (behind-the-meter) electricity storage, not a priority. While uncontrolled EV charging could exacerbate installed alongside VRE systems, helps to integrate distributed load peaks, charging that is managed to coincide with renewable resources by storing electricity that is produced when it is not power generation could help integrate larger shares of VRE. ii needed and releasing it when demand is higher; this storage also Through vehicle-to-grid (V2G) technology and infrastructure, can provide ancillary services (as does utility-scale storage) if EVs also have the potential to support grid stability by serving as 95 markets and controls are set up properly. electricity storage capacity. Thermal energy storage allows a temporal shift of renewable These enabling technologies are advancing where there are electricity or thermal energy supply to meet demand for heating supportive policies and market structures, including effective and cooling (or for conversion back to electricity) when needed, ( price signals. See Policy Landscape chapter.) p Digitalisation is rapidly and fundamentally changing the way in which energy is produced and consumed When used in heating mode, some of the output of heat pumps (or all, if operated with 100% renewable electricity) can be renewable energy. i V2G is a system in which EVs – whether battery electric or plug-in hybrid – communicate with the grid in order to sell response services by returning electricity from ii the vehicles to the electric grid or by altering their rate of charging. 157

158 RENEWABLES 153 GLOBAL STATUS REPORT While pumped storage is the most mature and widely deployed ENERGY STORAGE electricity storage technology, other storage technologies have 105 For many decades, energy storage has been used for a variety Other seen significant developmental gains in recent years. of purposes, including to support the overall reliability of the electricity storage technologies include batteries (electro- electricity grid, to help defer or avoid investments in other chemical) as well as flywheels and compressed air (both infrastructure, to provide back-up energy during power outages electro-mechanical). Thermal energy storage (e.g., molten salt, or at times of system stress, to allow energy infrastructure to be ice storage) holds heating or cooling for later use (hours, days or more resilient, to support off-grid systems and facilitate energy months) and can serve both thermal applications and electricity 106 access for underserved populations, and to store thermal energy Electricity also can be by conversion, such as in CSP plants. for later use. Increasingly, energy storage is being used in converted, using an electrolyser, into gaseous energy carriers 100 conjunction with renewable energy technologies. (P2G) that can be stored for later use in the power, heat and transport sectors, or for industrial processes. Different storage i Pumped storage has provided the majority of electric storage technologies can complement each other. For example, battery capacity to date. It can be deployed at a large scale, and it is the storage can provide instantaneous power close to load centres, oldest and generally least costly energy storage technology per but typically only for an hour or two, while pumped storage, where 101 Hydropower unit of electricity (although limited by geography). available, provides greater power output and long discharge facilities that incorporate reservoirs (without pumping capability) 107 times (up to eight hours). have always provided significant flexibility to the power grid by modulating output in line with fluctuations in demand and other generation. When output is reduced to accommodate surplus ENERGY STORAGE MARKETS VRE, a hydropower reservoir functions as virtual storage, as The markets for energy storage continued to expand in 2017. natural water flows into the reservoir raise its energy potential in Data are limited for energy storage in all sectors and particularly 102 proportion to reduced output. for the transport and thermal sectors. Global stationary and Operations of some pumped storage facilities are changing grid-connected energy storage capacity totalled an estimated 108 dramatically to accommodate growing shares of VRE generation, 159 GW, with pumped storage accounting for the vast majority. as is the case in Scotland, where pumped storage plants have Pumped storage is followed distantly by thermal storage (about gone from 4 cycles to over 60 cycles per day to complement 82% of which is molten salt storage at CSP plants), then by 103 109 A growing number of variability in wind power generation. battery (electro-chemical) and electro-mechanical storage. pumped storage facilities are incorporating variable speed See Figure 52.) ( p turbine technology to improve their ability to modulate operation During 2017, more than 3 GW of pumped storage capacity was for greater flexibility and VRE integration, including one project 110 commissioned, for a year-end total of approximately 153 GW. 104 ( p See Hydropower that came online in 2017 in Portugal. ( p See Hydropower section in Market and Industry chapter.) section in Market and Industry chapter.) Pumped storage involves pumping water to a higher elevation to store its potential kinetic energy until the i energy is needed. Pumped hydropower can be implemented in a stand-alone (closed-loop) application or as More than 75% of part of a conventional reservoir hydropower facility (open loop). Without pumping capability, a conventional stationary grid-connected reservoir hydropower facility can serve as storage only in the context of deferred generation, meaning that generation can be held off to accommodate other generation (such as solar PV and wind power), but excess storage capacity was grid electricity cannot be captured for storage. operating in Global Utility-Scale Energy Storage Capacity, by Technology, 2017 FIGURE 52. only 10 countries as of 2017 Pumped Storage GW 153 Electro-mechanical 1.3 GW Electro-chemical GW 2.3 Others 5.9 GW Thermal 2.3 GW Note: Numbers should not be compared with prior versions of this figure to obtain year-by-year increases, as some adjustments are Source: See endnote 109 for this chapter. due to improved or revised source data. 158

159 06 Residential and commercial (behind-the-meter) electricity About 0.5 GW of non-pumped utility-scale energy storage storage capacity also grew rapidly in 2017, primarily in places capacity became operational, for year-end capacity of an 111 Large-scale battery installations amounted estimated 5.9 GW. with supporting regulatory structures or with excellent 112 This to less than 0.4 GW in 2017, for a total of around 2.3 GW. solar resources, high grid electricity prices and relatively 125 In includes mostly large grid-connected installations (utility-scale low remuneration for solar generation fed into the grid. Germany, driven by the desire to increase self-consumption of and utility-owned installations) but excludes most small behind- solar generation, about half of the residential solar PV systems the-meter installations. By one account, a combined 1.2 GW of installed in 2017 were combined with storage capacity; a utility-scale and behind-the-meter battery storage was added significant share of residential storage systems in Germany in 2017, with another 3.3 GW of utility-scale projects announced 126 113 By Lithium-ion batteries continued to comprise provided frequency regulation services to the grid in 2017. during the year. the majority of new battery capacity installed. the end of 2017, Germany had nearly 80,000 behind-the-meter 127 installations, mainly in the residential sector. More than 75% of stationary grid-connected storage capacity Australia installed an estimated 20,800 battery storage systems in (including pumped storage) was operating in only 10 countries 128 Most of these 2017, tripling the number of systems added in 2016. as of 2017, and nearly 50% was in just 3 countries (China, Japan 114 The countries adding pumped storage were sold in combination with rooftop solar PV, driven by rising retail and the United States). 129 115 In terms of in 2017 were China, Portugal and Switzerland. rates and by the desire to maximise solar power self-consumption. non-pumped energy storage capacity, the US market led In Japan, an estimated 25,000 battery systems were installed, with 130 And installations in 2017, with an estimated 431 megawatt-hours the market for solar PV-plus-storage continuing to expand. in the US state of California, 90% of residential storage systems (MWh), but Australia took the lead in power capacity, with an 116 and 60% of commercial systems installed under the state’s estimated 246 MW added during the year. ENERGY SYSTEMS INTEGRATION AND ENABLING TECHNOLOGIES 131 Self-Generation Incentive Program were paired with renewables. Electric utilities are increasingly deploying energy storage Also in 2017, the newly established Energy Alliance Italia announced systems, and particularly batteries, to defer transmission an agreement to install 20,000 battery systems over two years to upgrades, shift loads, mitigate local reliability issues, achieve 132 create Italy’s largest virtual power plant powered by solar PV. greater operational flexibility and improve their ability to handle 117 Other markets include large corporations with high targets for Battery storage can provide many grid rising shares of VRE. services, including balancing short-term fluctuations in load renewable power and resource extraction industries that are replacing diesel generators in remote regions with solar-plus- or supply (such as when clouds temporarily shade a solar PV 133 Electricity storage also is being used increasingly plant), fast frequency response and voltage regulation. Utilities storage systems. in mini-/micro grids and off-grid to provide energy access with have begun moving beyond pilot and research and development renewable energy, particularly solar power, as well as for islands (R&D) battery storage projects, and the scale and speed of 134 See ( p and other isolated grids that rely on diesel generators. installation picked up significantly in 2017, with several large 118 Distributed Renewables chapter.) facilities coming online or announced. To date, most utility-scale battery capacity has been installed Thermal energy storage is playing an increasingly important role i capture heat – generated with as well. Thermal storage systems in developed economies and in energy markets with favourable 119 Germany and the United States remain electricity or from thermal energy sources (such as biomass, solar regulatory frameworks. 135 Depending two of the leading markets for utility-scale battery storage, driven by thermal and geothermal resources) – for later use. on the storage technology used, stored thermal energy can be regulations, falling costs and innovative technologies and business 120 In the United States, large utilities and regulators have converted into electricity or used directly for heating and cooling. models. begun to include energy storage in their long-term planning Likewise, surplus solar PV and wind power can be stored as, for 136 Solar heat systems generally processes to support grid flexibility to accommodate rising shares example, hot or chilled water (or ice). 137 include thermal storage to deal with variability of the solar resource. of VRE, and some utilities acquired solar power combined with 121 Australia’s Hornsdale Although thermal energy storage has been used successfully for electricity storage through PPAs in 2017. Power Reserve, which is located alongside a wind farm and was decades, and issues of technological effectiveness are largely 138 installed in record time, eclipsed California’s Escondido system settled, the market for thermal storage applications remains small. (30 MW/120 MWh) during the year to become the world’s largest Emerging technologies, such as those that convert surplus electricity 122 battery storage plant (100 MW/129 MWh). to hydrogen or other gases, are in early stages of commercialisation Stationary electrical storage capacity is growing rapidly in China and have not yet seen large deployment. However, progress as well, where it is seen as an important tool for reducing solar continued in 2017 in P2G applications. Hydrogen offers the potential and wind power curtailment, and new markets are emerging for short- and long-term energy storage and can be fed into existing in Europe, particularly in Italy and the United Kingdom, where natural gas grids. P2G applications can allow for load balancing over 139 Interest is growing in energy storage is seen as a means to improve grid stability as VRE the course of a day, week or even season. 123 Large-scale renewable energy projects are the use of renewable hydrogen in micro-grids as well as in vehicles, penetrations rise. 140 See Electric Vehicles ( p increasingly being installed in combination with battery systems including forklifts and long-haul trucks. 124 section in this chapter.) in order to increase the value of the electricity generated. i The most common type of system relies on a liquid or solid medium (sensible heat storage) – including water, sand, rocks and molten salt, from IRENA, Electricity Storage and Renewables: Costs and Market to 2030 (Abu Dhabi: October 2017), p. 31, http://www.irena.org/DocumentDownloads/Publications/ IRENA_Electricity_Storage_Costs_2017.pdf. Other forms of thermal storage include latent heat storage, which relies on a medium changing states (e.g., from solid to liquid), and thermo-chemical storage, which uses chemical reactions to store energy. Latent and thermo-chemical storage options offer higher energy densities, but they are more costly than sensible heat storage, from Abby L. Harvey, “The latest in thermal energy storage”, Power Magazine , 1 July 2017, http:// www.powermag.com/the-latest-in-thermal-energy-storage/?printmode=1. 159

160 RENEWABLES 2018 GLOBAL STATUS REPORT using hydrogen produced ENERGY STORAGE INDUSTRY 2017 saw continued from wind power to supply The year 2017 was characterised by continued technology 155 Nel fuel cell forklifts. advances and falling costs, the diversification of renewable advances and ASA (Norway) entered energy and other companies into the storage industry to capture into an agreement with falling costs 141 rapidly growing markets, and increasing linkages with VRE. H2V PRODUCT (France) for energy storage Battery storage prices continued to decline, particularly for to supply renewable technologies 142 Despite rapid growth in lithium-ion lithium-ion batteries. hydrogen for injection batteries, there is no clear prevailing storage technology due to into France’s natural the diverse range of storage needs (electric versus thermal, as gas pipelines, and was well as response time, discharge time, output capacity, scale, awarded a contract 143 Numerous options are under development to efficiency, etc.). to produce renewable 156 meet this variety of needs and to reduce unit costs and address And in December, auto manufacturer Toyota hydrogen in Iceland. 144 concerns about the sustainability of materials use. (Japan) announced plans to build the world’s first megawatt-scale 100% renewable power and hydrogen generation station at the Global battery manufacturing capacity surpassed 100 gigawatt- 157 145 Port of Long Beach, California. hours (GWh) in 2016 and continued to expand in 2017. Battery manufacturing occurs largely in Asia, and the region’s Hydrogen-related R&D also continued, with wind turbine lead is expected to continue with several new facilities under manufacturer Lagerwey and hydrogen supplier HYGRO (both construction during 2017 in China, India and elsewhere to Netherlands) partnering to develop a 4.8 MW wind turbine that manufacture batteries for EVs and for stationary systems to help incorporates electrolysis technology, enabling it to produce 146 integrate VRE. hydrogen directly and feed it into a gas network. The initial turbine, to be installed by early 2019, will be used to provide Also in 2017, several renewable technology companies formed 158 hydrogen for fuel cell-powered trucks. partnerships (as did several electric utilities) with storage firms to advance storage technologies, gain a foothold in the industry or 147 develop hybrid renewable energy storage products. HE AT PUMPS A few companies are engaged in producing and installing Heat pumps are used primarily for space heating and cooling systems that “store” electricity in the form of thermal energy. of buildings (with individual units and district systems), as well US-based Axiom Exergy, CALMAC and Ice Energy all use a as for industrial heat applications. They provide efficient heating, similar technology to create ice, which is used when needed to 148 cooling, humidity control and hot water for residential, commercial In 2017, Ice cool building spaces or to preserve food supplies. 149 and industrial applications. Energy expanded its offerings for residential applications. Depending on its inherent efficiency and operating conditions, a In addition, R&D continued on new materials and technologies 150 heat pump has the potential to deliver significantly more energy from Siemens Gamesa for thermal storage of solar and wind power. the air, ground, water bodies and sources of waste heat than is used (Spain) announced plans to construct its first full-scale wind- to drive it. The most efficient electrically driven heat pumps available heat storage project that will convert electricity to heat for in early 2018, operating under optimal conditions (a modest “lift” in storage of surplus wind generation in rock fill, for later conversion 151 temperature from source to sink), can deliver three to five units of Wind turbine manufacturer to electricity via a steam turbine. 159 That incremental energy for every one unit of energy consumed. Goldwind (China) partnered with SaltX Technology (Sweden) to energy delivered is considered the renewable portion of the heat develop and commercialise a large-scale power-to-heat solution i . When the input energy is pump output (on a final energy basis) (storing thermal energy in salt), starting with a demonstration 152 100% renewable, so is the output of the heat pump. plant in Beijing. Most P2G projects to date have been pilot systems, but a shift towards commercial projects is occurring along with increasing interest among a wide range of actors, including renewable energy developers, electric utilities and other companies traditionally focused on the oil and gas industry that see opportunities to make additional revenue by providing grid balancing services 153 In 2017, Shell (Netherlands) and and helping to integrate VRE. ITM Power (United Kingdom) announced plans for a 10 MW proton exchange membrane electrolyser at a crude oil refinery in Germany; Shell noted that, in addition to producing hydrogen, the 154 technology could help integrate VRE into Germany’s energy mix. Also in 2017, a Japanese partnership involving several corporations, municipal governments and one prefectural government was i - The total share of renewable energy delivered by a heat pump on a primary energy basis depends on the efficiency of the heat pump and on its operating con ditions, as well as on the composition of the energy used to drive the heat pump. A heat pump operating at a performance factor of four, driven by electricity from a thermal plant at 40% efficiency, provides about 1.6 units of final energy for every 1 unit of primary energy consumed (4/(1/0.4) = 1.6). 160

161 06 HEAT PUMP MARKETS HEAT PUMP INDUSTRY The heat pump industry is characterised by a large number of Markets for heat pumps expanded around the world during relatively small entities, although consolidation continued in 2017. 2017. Primary policy drivers for increased deployment of heat pumps include air pollution mitigation (particularly in China) and, Manufacturers have pursued acquisitions mainly to gain access in Europe, the opportunities to increase the use of renewable to markets and to increase market share, as well as to access electricity (specifically VRE) for heating and cooling and to know-how and to complement existing product portfolios. 160 expand capacity for demand response. In recent years, the global industry has grown in scale and scope The scale of the global heat pump market is difficult to assess as major manufacturers from Europe, China and the United i and to inconsistencies among existing due to the lack of data States have extended their areas of activity both geographically datasets. It is estimated that air-source heat pumps make up the and sectorally (integrating heating, cooling and ventilation as largest share of the global market, followed by ground-source well as, increasingly, dehumidification). A typical example is the heat pumps. As of 2014 (latest data available), the global stock of acquisition of air conditioning and ventilation companies by ground-source heat pumps represented 50.3 gigawatts-thermal boiler manufacturers, and vice versa. ) of capacity, producing approximately 327 petajoules (GW th US and Chinese companies have acquired companies in Europe, 161 Based on historical growth rates, global (91 TWh) of output. and European companies have invested in the United States and ground-source heat pump capacity may have reached 65 GW th 176 Among the notable developments in 2017, Swedish heat Asia. 162 in 2017. pump maker NIBE completed several acquisitions of companies 177 The largest markets for heat pumps are China, the United States from around the world. and Europe as a whole, where (in order of scale) France, Italy, Other notable trends in the industry include the integration of ENERGY SYSTEMS INTEGRATION AND ENABLING TECHNOLOGIES Spain, Sweden and Germany were the most significant national heat pump technologies and solar PV to increase on-site or local 163 Japan and the Republic of Korea also have markets in 2017. 178 In addition, consumption of distributed renewable generation. 164 In 2016 (latest data available), significant heat pump markets. in some instances heat pumps are being configured to provide heat pumps for water heating achieved a 10% share of Japan’s demand-response services to “smart” electric grids to take 165 household water heater market. 179 advantage of their inherent operational flexibility. China’s market for air-source heat pumps in 2016 was dominated by cooling applications (50 million units), with about 1.5 million 166 units primarily serving space heating and hot water needs. ELECTRIC VEHICLES China’s national heat pump market has expanded steadily in Electric vehicles encompass any road-, rail-, sea- and air-based recent years, with sales increasing at an annual average rate transport vehicles that use electric drive and can take an electric exceeding 16% between 2013 and 2016, and continuing to grow charge from an external source, or from hydrogen in the case of 167 Counting only air-source heat pump systems used in 2017. fuel cell EVs. Some EV technologies are hybridised with fossil specifically for low-temperature space heating, the number of fuel engines (for example, plug-in hybrid EVs, or PHEVs), while 168 units sold increased more than 30-fold from 2014 to 2016. others use only electric power via a battery (battery EVs). A third Europe’s combined heat pump market (air- and ground-source) variant uses fuel cells to convert hydrogen into electricity. In 2017, grew by an estimated 10% in 2017, a slightly slower growth than an estimated 26% of the electricity consumed by EVs came 169 An estimated 1.1 million units were added, was seen in 2016. from renewable sources, roughly in proportion to the renewable 180 accounting for nearly 20% of the overall boiler market, for a total A growing number of national share of electricity generation. 170 The European of 10.6 million units in use by the end of 2017. and sub-national governments have established targets for EVs market is rather concentrated, with the top seven countries or announced plans to phase out sales of vehicles with internal 171 accounting for more than 75% of the region’s sales in 2017. See Policy Landscape chapter.) p ( combustion engines. On a per household basis, as of 2016, Norway was in the lead, 172 ELECTRIC VEHICLE MARKETS Finland, a country followed by Estonia, Finland and Sweden. with about 5.5 million people, is home to an estimated 0.8 million Electrification of the transport sector expanded significantly 173 Around 75% of single-family home builders heat pumps. during 2017, enabling greater integration of renewable energy in in Finland choose heat pumps; in addition, heat pumps are the form of electricity for trains, light rail and trams as well as for being used increasingly in district heat systems combined with two-, three- and four-wheeled EVs and heavy-duty vehicles. In 174 bioenergy and with solar thermal technologies. 2017, global sales of electric passenger cars (including PHEVs) reached an estimated 1.2 million units, up about 58% over 2016, In the United States, heat pump sales dropped off considerably and more than 3 million of the vehicles were traveling the world’s following the housing market collapse (which began in 2006), 181 ( See Figure 53.) p roads by year’s end. but the heat pump market has since recovered, with heat pumps accounting for a growing share of US shipments for space heating and cooling (to 24% in 2016), and sales reaching an estimated 175 2.4 million units in 2016 (latest data available). i Part of the reason for limited and fragmented data on heat pumps may be variation in how systems are classified. In moderate climates, heat pumps generally are counted as air conditioning equipment, with a side benefit of dehumidification or provision of hot water. In cold climates, the heating service is much more important, and thus heat pumps are counted as heating equipment, with cooling and dehumidification considered welcome byproducts, from European Heat Pump Association, personal communications with REN21, November 2016-March 2017. 161

162 RENEWABLES 2018 GLOBAL STATUS REPORT FIGURE 53. Global Passenger Electric Vehicle Market (including PHEVs), 2012-2017 Vehicles sold in thousands Market growth (%) 75 1,800 1,600 Over 1,400 million 3 1,226 electric 50 1,200 passenger vehicles are R now on the 1,000 world's roads. 775 800 25 600 549 Rest of World 400 319 Japan 231 United States 200 135 Europe China 0 0 2015 2012 2014 2013 2016 2017 Source: See endnote 181 for this chapter. Despite rapid growth, the EV passenger car market (including railway network, which carries about 600,000 passengers daily, 192 PHEVs) remains small, reaching only a 1.3% share of global began relying entirely on wind power at the beginning of 2017. 182 By year’s end, EVs accounted passenger vehicle sales in 2017. The use of electricity for marine transport also advanced in for only a tiny portion of the total global passenger light-duty 2017. China saw the launch of the world’s first all-electric cargo 183 China, vehicle fleet. The market also is highly concentrated. ship; ironically, the ship will be used primarily to carry coal up Europe and the United States together accounted for 94% of the the Pearl River for electricity generation, but the technology also 184 China alone accounted for about 49% of total global market. 193 is expected to be used in passenger or engineering ships. 185 global unit sales. In Sweden, two large ferries that carry more than 7.3 million Norway remained well ahead of all other countries in market passengers and 1.8 million vehicles annually were converted from 194 penetration, with EVs representing 32% of annual vehicle sales diesel to electricity. 186 Both Norway and Iceland (which also has through most of 2017. In late 2017, a coalition of global corporations from China, Europe a growing share of EVs) derive virtually 100% of their electricity and the United States launched EV100, a campaign to accelerate see Reference Table R ( , from renewable sources ) POLR1 the uptake of EVs and associated infrastructure; membership and EV charging has become a strong driver for new solar PV 195 Members aim to use reached 16 corporations by year’s end. systems in Norway (although hydropower accounts for the vast their buying power and influence on employees and customers 187 majority of electricity generation and EV charging). to increase demand and make EVs more affordable around the 196 Electric passenger car numbers are eclipsed by two- and three- Although the target is not directly linked to charging with world. renewable electricity, several members also have committed to wheeled EVs. More than 200 million were on the world’s roads in 197 188 The majority of going “100% renewable” through the RE100 campaign. 2016, and over 30 million are added each year. these are in China, although the market in India is also large, and In the United States, the governors of seven western states agreed sales are increasing elsewhere in Asia as well as in Europe and in 2017 to develop a unified regional EV plan for a network of 189 the United States. charging stations along 5,000 miles (more than 8,000 kilometres) EVs also come in the form of trains, trams, buses and other of highways throughout the region. They agreed to advance vehicles, including some marine vessels. By the end of 2017, opportunities to incorporate charging stations into planning around 386,000 electric buses were on the world’s roads, with processes, including building codes, metering policies and 190 198 However, interest in electric The state of Nevada’s participation about 99% of these in China. renewable energy projects. in such initiatives has been driven in part by a desire to replace buses is on the rise in other countries, with new orders from 199 several cities in Australia, Europe, the US state of California fuel imports with local renewable electricity. 191 Electric trains on the Dutch and elsewhere around the world. 162

163 06 Rising numbers of EVs ELECTRIC VEHICLE INDUSTRY present both opportunities Automakers are spending billions of dollars on EVs in response and challenges. The to government policies and the realisation that prices of EVs are EVs impacts of charging 212 Research, development and dropping faster than expected. depend on when it occurs, can provide grid services demonstration and increased production together have helped the number of vehicles through demand response 213 In turn, drive down battery costs and improve energy density. charging at a given time and smart charging the falling costs and rising density of batteries are helping to and where those vehicles 214 increase vehicle range and reduce vehicle costs. are located on the grid. China leads in the potential production volume of EVs, followed Without smart energy distantly by the United States, and is also the leading manufacturer management, a large 215 In 2017, of battery cells for EVs in terms of production volume. number of EVs all charging several major auto manufacturers around the world made new concurrently could cause spikes in electricity demand, affecting 200 pledges or announced plans to produce and sell a large variety To address these grid stability, efficiency and operating costs. 216 of battery EVs, PHEVs and some hydrogen fuel cell vehicles. concerns, several countries, municipalities, EV manufacturers and In addition, companies in Asia, Europe and North America electric utilities continued to experiment with “smart” charging 201 continued to develop electric buses, forklifts and long-distance Smart charging enables EV power demand to during 2017. electric trucks, as well as electric two- and three-wheel vehicles follow wind and solar power output, which can help to smooth load 217 and marine transport vessels. profiles; it also provides a market for VRE electricity, thus avoiding 202 A number of pilots have demonstrated that EVs can curtailment. The private sector and governments, often in partnership, 203 218 ENERGY SYSTEMS INTEGRATION AND ENABLING TECHNOLOGIES support the grid through demand response and smart charging. As of mid-2017, continued to expand EV charging infrastructure. an estimated 400,000 public charge points were in operation Several parties also are experimenting with vehicle-to-grid 219 The global number of public charging stations worldwide. technologies, which could enable utilities to manage EV 220 In some instances, such doubled from late 2015 to late 2017. charging while allowing vehicle batteries to store grid electricity 204 as in Vancouver, Canada, publicly supported expansion is linked A one-year trial in Denmark, which for re-injection as needed. 221 directly to advancing renewable energy goals. concluded in 2017, demonstrated that utilities can use the batteries of parked EVs to help balance supply and demand on Electric utilities are playing a significant role in expanding EV 222 the grid, by storing electricity and delivering it back to the grid In Germany, for example, power companies charging points. when needed, while also providing vehicle owners with a new account for about 35% of public charging stations, and in China, 205 V2G technologies remain in their infancy, but revenue source. two utilities together have opened more than 27,000 charging 206 223 evidence suggests that they are moving beyond the pilot stage. In 2017, the largest investor-owned electric utilities stations. Challenges remain, including that the battery is the most costly in California proposed investing over USD 1 billion to accelerate part of an EV, and owners might not be willing to relinquish control electrification of the state’s transport sector. Proposed projects of this resource, at least not without appropriate electricity rate focus on developing charging infrastructure and on advancing 207 structures and other incentives. V2G integration through dynamic pricing, the use of storage in 224 Although they are not necessarily EV batteries and VRE power. Hydrogen vehicles offer the benefits of long range and rapid driven by VRE integration, utilities in many countries are increasingly fuelling relative to battery EVs, but their commercial success 225 208 interested in the potential linkages between VRE and EVs. Challenges for successful so far has been more limited. competition of hydrogen vehicles include needed improvements Vehicle manufacturers and others are working to advance the in the durability and efficiency of fuel cells as well as innovative synergies between VRE and EVs by, for example: testing the 209 By the end of 2016, nearly 3,000 commercial service models. potential of V2G for demand response; offering V2G services fuel cell EVs had been sold or leased, and more than 14,000 or free solar PV installations to their customers; manufacturing 210 More hydrogen fuel cell forklifts were in operation worldwide. and co-marketing EVs, solar panels and storage systems; and 226 than 90 hydrogen fuelling stations opened during 2016, with In developing networks of solar-powered charging stations. 211 most of these in Japan (45) and California (20). addition, an increasing number of companies have worked to integrate renewable technology directly into a range of vehicles. In 2017, for example, German start-up Sono Motors unveiled a battery EV that is powered partly by onboard solar cells; Dutch start-up Lightyear launched a solar-powered family car; Panasonic (Japan) started producing solar PV modules for use atop Toyota’s latest Prius; and a Nigerian company started selling 227 solar-powered tricycles. 163

164 07 ENERGY EFFICIENCY Solar thermal plant Already a leading brewery in terms of energy and water efficiency, HEINEKEN‘s Göss brewery became (bottom left) and a the world’s first large-scale brewery to operate entirely on renewable energy and waste heat in 2016. - spent grain fermen All of the facility’s electricity demand is met by hydropower, and its heat requirement is met by various sources 2 tation tank for biogas to produce 1.4 million bottles of beer daily. An on-site solar thermal plant occupies about 1,500 m , contributing (centre) at Göss 3-5% of the brewery’s heat demand. Another 50% of heat demand is met with waste heat from the facility itself brewery of HEINEKEN and from a neighbouring sawmill, and the rest is provided by biogas from an anaerobic digestion plant. The in Leoben, Austria. company emphasised the importance of risk mitigation, efficiency and commercial opportunity in the investment, in addition to helping HEINEKEN achieve its commitment to a 70% renewable energy share in production by 2030.

165 07 ENERGY EFFICIENCY OVERVIEW Reducing overall energy nergy efficiency is the measure of energy services consumption through delivered relative to energy input. Energy efficiency is Synergies exist between E energy efficiency and efficiency improvements gained when more energy services are delivered for the renewable energy; means that any given same energy input, or the same amount of services are delivered 1 amount of renewables for less energy input. This can be achieved by reducing energy energy can meet a larger share losses that occur during the conversion of primary source fuels, of overall energy use. For during energy transmission and distribution, and in final energy efficiency i can support increased example, efficient building use , as well as by implementing other measures that reduce renewable energy envelopes (i.e., improving energy demand without diminishing the energy services delivered. deployment, and vice versa the air-tightness of The advantages of energy efficiency are well reported, with buildings) reduce energy positive impacts on society, the environment, health and demand for heating or 2 well-being, and the economy. Energy-efficient technologies cooling, making it easier and less costly to meet the remaining and solutions can offer one of the most cost-effective ways of demand with renewable energy. Also, technologies that improve reducing energy costs, improving energy security, reducing local final energy efficiency in end-use sectors, such as electric vehicles 3 air pollution and mitigating climate change. (EVs) and heat pumps, may aid in the effective integration of Improvements and investments in energy efficiency can occur variable renewable energy sources. ( p See Integration chapter.) anywhere along the chain of energy production and use. Policy Furthermore, in areas with low energy access, energy-efficient and regulatory drivers are instrumental to energy efficiency appliances combined with renewable energy are improving 4 improvements, including building codes and energy performance access to electricity for off-grid households. ( p See Distributed p ( standards. See Buildings section in Policy Landscape chapter.) Energy chapter, and Sidebar 3 in GSR 2017.) Although most energy efficiency measures are not directly Renewable energy deployment can increase energy efficiency connected with the renewable energy sector, technical and in energy production and distribution. For example, non-thermal economic synergies exist between efficiency improvements renewable energy production reduces primary energy use and and renewable energy. Energy efficiency can support increased conversion losses when displacing thermal generation and may renewable energy deployment, and vice versa. lessen transmission and distribution losses in some instances. See Glossary. i 165

166 RENEWABLES Mtoe GLOBAL STATUS REPORT Despite these synergies, renewable energy and energy efficiency Because of the lack of precise indicators of energy efficiency, i 5 often is used to identify and monitor generally have been considered to be two distinct policy areas. primary energy intensity As the deployment scales of efficiency measures and renewable trends in energy efficiency across economies. Globally, the average decrease in primary energy intensity between 2011 and 2016 was energy technologies grow, policies designed in isolation are 12 6 Examples include more likely to result in inefficient outcomes. appreciably greater than during the three preceding decades. 7 As such, much global duplication or gaps in policy formulation. Between 2011 and 2016, potential remains for more integrated policy and planning that primary energy intensity 8 considers demand and supply together. The global economy decreased by about 10%, grew nearly Dialogue at the international level has begun to recognise the - an average annual con 13 This importance of integrating energy efficiency and renewable traction of 2.1%. 3 times faster greatly moderated the energy, with international organisations, global campaigns growth in primary energy and a host of other actors increasingly raising awareness and than global energy demand 9 consumption, which grew encouraging policy makers to consider the two in concert. during 2011-2016, in Some policies have emerged in recent years that attempt to link by 5.7% over the same part because of energy renewables and energy efficiency. For example, an agreement period (average annual efficiency improvements 14 See p ( was reached in late 2017 on updates to the European Union’s growth of 1.1%). Figure 54.) In 2016, global (EU’s) Energy Performance of Buildings Directive, designed to gross domestic product quicken the rate at which cost-effective renovations of existing 15 (GDP) grew 3%, whereas energy demand increased only 1.1%. buildings occur and to unlock public and private sector capital 10 However, countries outside of the Organisation for Economic for energy efficiency and renewable energy in buildings. Meanwhile, India has incorporated joint consideration of on-site Co-operation and Development (OECD) continue to see growing 11 renewable energy and energy efficiency in its building code. energy use with growing GDP, while OECD countries, as a whole, 16 ( p See Buildings section in Policy Landscape chapter, and Energy do not. Efficiency chapter in GSR 2017.) i Defined as the ratio of gross inland consumption of energy per unit of GDP. Due to limits on data availability, primary energy intensities are used for overall energy intensity comparisons, while final energy intensities are used for sectoral comparisons. FIGURE 54. Global Primary Energy Intensity and Total Primary Energy Supply, 2011-2016 kgoe/USD Mtoe Compound average 2015ppp annual change, 0.16 16,000 2011-2016 0.14 14,000 + 1.1% global primary 0.12 12,000 energy supply 0.10 10,000 – 2.1% 0.08 8,000 global primary energy 6,000 0.06 intensity 4,000 0.04 2,000 0.02 0 0.00 2014 2013 2012 2011 2016 2015 Global primary energy intensity Global primary energy supply Note: Dollars are at constant purchasing power parities. Mtoe = megatonnes of oil equivalent; kgoe = kilograms of oil equivalent. Source: See endnote 14 for this chapter. 166

167 05 At the regional level, annual changes in energy intensities vary The decline in energy demand per unit of economic output has widely. Asia and Oceania experienced the largest reductions been made possible by a combination of supply- and demand-side in energy intensity between 2011 and 2016, with average annual focused policies and mechanisms as well as structural changes. 18 Latin America’s energy declines of 3.3% and 2.5%, respectively. These include: intensity remained flat over this period, while the Middle East was the expansion, strengthening and long-lasting impact of energy n the only region that saw an overall increase, albeit ending the efficiency standards for appliances, buildings and industries; 19 ENERGY EFFICIENCY ( p See Figure 55.) period with a decline of 3.1% in 2016. n improved fuel efficiency standards and, more recently, the i At least 25 countries appear to have reached their peak energy growing deployment of EVs – especially when supplied by demand and have since maintained lower demand, despite renewable energy sources; 20 Germany’s primary energy demand continued economic growth. fuel switching to less carbon-intensive alternatives, including n 21 Total was more than 10% lower in 2016 than at its peak in 1979. renewables (for example, China’s 13th Five-Year Plan aims to 22 energy demand across all OECD countries peaked in 2007. lower the share of coal in the primary energy supply from 62% Most energy efficiency advances occur in the context of various to 58% by 2020); end-uses of energy, as well as in the generation of electricity for structural changes in industry, including a transition towards n various (final) energy applications. In 2016, an estimated 38% of 17 23 less energy-intensive and more service-oriented industries. primary energy supply was allocated to electricity generation. ii includes electricity, final Total final consumption of energy (TFC) Countries that have achieved peak energy demand, in chronological order from 1979 to 2016, are: Germany, the Czech Republic, Hungary, Poland, i Denmark, the United Kingdom, Japan, Finland, France, Sweden, Italy, Portugal, Luxembourg, Switzerland, Greece, Spain, Slovenia, Ireland, the United States, the Netherlands, Belgium, Norway, Austria, Israel and Chile. ii Total final consumption includes energy demand in all end-use sectors, which include industry, transport, buildings (including residential and services) and agriculture, as well as non-energy uses, such as the use of fossil fuel in production of fertiliser. It excludes international marine and aviation bunker fuels, except at the global level, where both are included in the transport sector. IEA, Energy Efficiency Market Report 2016 (Paris: 2016), p. 18, https://www.iea.org/eemr16/files/medium-term-energy-efficiency-2016_WEB.PDF. FIGURE 55. Primary Energy Intensity of Gross Domestic Product, Selected Regions and World, 2011 and 2016 kgoe/USD 2015ppp 0.25 2011 2016 0.20 0.15 0.10 0.05 0.00 Middle North Latin Oceania World Europe Africa Asia CIS America America East Compound average - + - - - - -2.0% -1.9% 0.0% 0.7% 3.3% 2.1% 1.2% 2.0% 2.5% annual change, 2011-2016 Note: Dollars are at constant purchasing power parities. CIS = Commonwealth of Independent States. Source: See endnote 19 for this chapter. 167

168 RENEWABLES 2018 GLOBAL STATUS REPORT uses of fuels and other sources of heat, and various non-energy BUILDINGS uses. The buildings sector consumed 32% of TFC, industry The buildings sector accounts for nearly one-third of global final 30% (excluding non-energy uses) and transport 29%, with 29 energy consumption, including the use of traditional biomass. the remainder consumed in other sectors and for non-energy Residential buildings consume about three-quarters of this energy, applications, which comprise mainly industrial uses such as 30 24 In 2016, while the rest is used in commercial facilities (services). petrochemical manufacturing. electricity comprised an estimated 31% of building energy use, the Electricity makes up a portion of final energy use in all end-use 31 Efficiency of energy use rest being mostly various heat demands. sectors, and energy efficiency in power generation must be in buildings is affected by building envelopes, design and orientation, gauged in terms of its primary energy use. By contrast, the as well as by the efficiency of energy-consuming devices, including efficiency of end-use sectors is better measured in the context of climate-control systems, lighting, appliances and office equipment. final energy use. The following sections examine primary energy The overall energy intensity of the buildings sector (measured as efficiency in electricity generation, followed by the efficiency of final energy use per unit of floor area) declined at an average final energy use in the buildings, industry and transport sectors. annual rate of 1.3% from 2010 to 2014, due primarily to the continued adoption and enforcement of building energy codes 32 ELECTRICITY GENERATION However, declining energy use per and efficiency standards. unit area has not been enough to offset the growth in floor area Improvements in the efficiency of electricity generation, as well as (average annual growth of 3%) and the rising demand for various the adoption of non-thermal renewable energy sources, have helped 33 energy services in buildings. to greatly reduce primary energy intensity. Between 2011 and 2016, the overall average efficiency of power generation increased from Globally, energy demand from lighting, appliances and other 25 41% to 43.1%, an annual rate of improvement of 1%. electrical equipment within buildings grew at an average annual 34 In non-OECD countries, the rate of 1% between 2010 and 2016. Primary energy efficiency in electricity generation can be 35 rate of demand growth has been double the global average. improved through upgrades to more efficient technology The faster demand growth in developing countries is explained (e.g., replacing open-cycle gas turbines with combined-cycle by improved access to electricity, increasing household wealth, generators); through fuel switching (e.g., substituting non- and greater demand for energy services and thermal comfort thermal renewables for fossil fuel generation); through the use within buildings. Overall, despite efficiency gains for appliances, of co-generation, which maximises the utilisation of energy global energy demand from major appliances grew by 50% input; and by reducing transmission and distribution grid losses 36 between 1990 and 2016. through improved grid infrastructure and management. Space heating and hot water demand grew at a slower pace Between 2011 and 2016, the efficiency of electricity generation (average annual growth of 0.5% since 2010), due in part to a shift improved in all regions except Africa and Latin America, where away from the use of traditional biomass in developing countries 26 However, changes it fell by 2.7% and 3.7%, respectively. and to the expanded use of condensing boilers and heat pumps in efficiency can be driven by complex and sometimes 37 in many developed economies. unpredictable factors, such as Brazil’s loss of hydropower output in recent years due to persistent droughts in parts of Energy efficiency gains between 2000 and 2016 were strongest 27 In other regions of the world, the efficiency of the country. in the residential end-use sector, especially for International electricity generation improved, which may have been helped Energy Agency (IEA) member countries, which saw efficiency 38 by rising shares of non-thermal renewable electricity, such as improvements of 22% overall in the sector during this period. 28 solar photovoltaics and wind power. For these countries, population growth had an incremental effect on energy use of 10%, and structural effects (such as increased floor area and higher levels of appliance ownership) 168

169 05 Energy efficiency in the service (commercial) sector can be provided a marginal 39 Buildings consume about indicated by the ratio of electricity consumption to value-added in However, boost of 9%. commercial activity (in constant purchasing power parity, PPP). efficiency enhancements offset those increments, Between 2011 and 2016, the electricity intensity of the service half resulting in a 7% net sector declined in every region except the Middle East (average of all electricity; about reduction in final energy 46 Overall, the annual growth of 3.1%) and Latin America (2.1%). 27% serves residential ENERGY EFFICIENCY use in the residential energy intensity of the service sector globally declined at an 40 buildings and over 22% sector. 47 average annual rate of 0.8%. serves commercial and An important factor in As with other sectors, the energy intensity of services is the public buildings this net reduction was product of several factors. These include structural changes improved space heating, both within the sector (e.g., between more energy-intensive notably in Europe. Between 2000 and 2016, energy use per sub-sectors, such as hospitals, and less energy-intensive ones, square metre of floor space decreased by 45% in Germany and such as warehouses) and across the economy; the growth of 41 Conversely, in some emerging economies, 36% in France. building size relative to sector GDP; and the uptake of more energy efficiency gains have not been large enough to offset the 48 efficient technologies. incremental rise in energy demand from population growth and 42 structural effects. The buildings sector accounts for around half of world electricity consumption, with the residential sector consuming 27% of all 43 While global average electricity consumption per electricity. household grew nearly 1% annually between 2011 and 2016, the fastest growth was observed in Asia (average annual growth of 44 Oceania showed the 4.1%), followed by the Middle East (3.4%). greatest rate of decline (average annual contraction of 2.6%), followed by North America, with an average annual decline of 45 See Figure 56.) p ( 1%. FIGURE 56. Average Electricity Consumption per Electrified Household, Selected Regions and World, 2011 and 2016 Kilowatt-hours per household 14 000 , 2011 2016 12 000 , 10 000 , 8 , 000 6 000 , 4 000 , 2 , 000 0 Middle North Latin Oceania Europe Africa Asia CIS World America America East Compound average - + + + + - + +1.6% -0.9% 1.0% 4.1% 2.6% 1.1% 1.1% 1.0% 3.4% annual change, 2011-2016 Note: CIS = Commonwealth of Independent States Source: See endnote 45 for this chapter. 169

170 RENEWABLES 2018 GLOBAL STATUS REPORT across major emerging INDUSTRY The global average economies, value-added The industrial sector accounts for nearly 30% (excluding non- energy intensity of industry in industry grew faster 49 Including non-energy uses in industry, energy uses) of TFC. contracted between than energy consumption, 50 Key factors determining the total share of TFC is about 37%. 2011 and 2016, at an resulting in a decline in industry energy intensity have included higher equipment average annual rate of the energy intensity of 54 utilisation rates (driven by periods of stronger economic activity), Nonetheless, industry. structural change (such as growth in less energy-intensive between 2010 and 2016, sub-sectors or a shift away from energy-intensive industries) and % 2.6 global energy use in 51 the deployment of more efficient manufacturing equipment. industry grew at an average 55 annual rate of 1.5%. The ratio of industry TFC to industry value-added (in PPP) is an indicator of the overall energy intensity of the sector. To The global average energy intensity of industry contracted compare overall industry energy intensity in different countries, 56 between 2011 and 2016, at an average annual rate of 2.6%. the average energy intensity across all industry sectors is used. The regions with the most marked decreases in energy However, intensities vary widely across industry sectors. For intensity were Asia (average annual decline of 4%) and the example, across IEA member countries, the energy requirements 57 Only the Middle Commonwealth of Independent States (3.6%). for basic metals manufacturing are an order of magnitude East did not show notable improvement in energy intensity for larger than the requirements of the service industry, per unit of 58 ( p See Figure 57.) the period. economic output. The manufacture of basic metals (among the At a global level, industrial efficiency drivers have varied among most energy-intensive industries) requires around 25 megajoules the different industry sectors. However, rising energy costs , whereas the service industry requires less than (MJ) per USD PPP 52 can trigger the implementation of energy efficiency measures . 2 MJ per USD PPP (predominantly technical and logistical improvements) in the Between 2000 and 2016, reductions in the energy intensity of 59 Higher energy overheads put pressure on sector as a whole. industries worldwide ranged from 20% in the non-metallic companies to optimise their processes and also can be a driver minerals industry (mainly cement manufacturing), to 14% in for structural changes. the pulp and paper industry, to 8% in the food, beverage 53 In both IEA member countries and and tobacco sector. FIGURE 5 7. Average Energy Intensity of Industry, Selected Regions and World, 2011 and 2016 kgoe/USD 2015ppp 0.20 2011 2016 0.15 0.10 0.05 0.00 Latin North Middle Oceania CISEurope Africa Asia World America East America Compound average - +0.2 -1.2 - - - -1.7% -3.6% -2.6% % % 1.5% 1.8% 4.0% 1.2% annual change, 2011-2016 Note: Dollars are at constant purchasing power parities. CIS = Commonwealth of Independent States. Source: See endnote 58 for this chapter. 170

171 05 Policies have played an important role in driving energy improved by 7% in IEA member countries, driven by both efficiency improvements in the industrial sector. Industrial Energy technology advancement and transport policies (this does not 64 Performance Standards, for example, set minimum allowable However, include conversion losses in the fuel supply chain). energy efficiency values for existing and newly constructed a reduction in the number of passengers per vehicle and other plants, taking into account different types of raw materials, fuels incremental effects resulted in a net 4% increase in transport 65 and capacities. Such standards set mandatory benchmarks for energy use. ENERGY EFFICIENCY companies and have been developed for a variety of industry By contrast, major emerging economies saw net passenger 60 processes and materials. transport energy use triple between 2000 and 2016 due to demand growth, lower vehicle occupancy rates and a shift 66 This was despite a 15% efficiency between transport modes. TRANSPORT improvement in passenger transport, linked to policy and 67 The transport sector was responsible for an estimated 29% of Constantly improving fuel efficiency standards technology. 61 Renewable energy, in the form global final energy use in 2016. represented a significant contribution to energy efficiency of biofuels, supplied only 2.9% of the energy used in transport, improvements in passenger transport between 2000 and 2016 68 and electricity provided another 1.4% (however, only about for IEA countries. 62 Road 26% of the electricity consumed by EVs is renewable). The story is similar for freight transport, but here the relative transport accounted for 75% of global transport energy use in impact of energy efficiency was even smaller than for passenger 2015, followed by aviation (11%), marine transport (just over 9%), transport. In IEA member countries, efficiency gains of 5% were 63 rail transport (2%) and pipeline and other transport. insufficient to overcome growth in the sector, resulting in a net i 69 is affected by The energy intensity of the transport sector In major emerging economies, increase in energy use of 9%. efficiency improvements within transport modes (rail, road, demand growth and a shift towards the use of heavy-duty trucks 70 aviation and shipping) and by shifts between transport modes , with raised energy demand in the sector by more than 250% (for example, from private car use to public transport, or from road no improvement in energy efficiency. freight to rail). Increasing numbers of EVs and plug-in hybrid vehicles will contribute to improvements in fuel economy on a final energy Between 2000 and 2016, the fuel efficiency of passenger basis. ( p See Electric Vehicles section in Integration chapter.) vehicles (fuel use per vehicle kilometre, excluding aviation) 29 % of global final energy use in 2016 was used for transport, with road transport accounting for a full 75% of global transport energy use This is defined as energy use in transport per unit of GDP. A more direct indicator of transport efficiency might be defined in terms of energy use per i passenger-kilometre and energy per cargo-tonne-kilometre, but aggregated global data across all transport segments are not available. 171

172 08 CORPORATE SOURCING OF RENEWABLE ENERGY Apple's new headquarters, opened in 2017, relies on a mini-grid with a 17 MW rooftop solar array and a 4 MW biogas-powered fuel cell system with battery storage. The on-site generation system is estimated to provide 75% of power requirements during working hours Solar arrays on for 12,000 Apple employees. The remaining electricity supply comes from a 130 MW solar project built by the roof of Apple Monterey County and First Solar. Since April 2018, Apple’s global facilities across 43 countries have been headquarters, powered with 100% renewable energy. Twenty-three of Apple’s suppliers also have committed to using Cupertino, Califor - 100% renewable energy for manufacturing the company’s products. nia, United States

173 08 FE ATURE: CORPORATE SOURCING OF RENEWABLE ENERGY corporations committed caling up renewable energy is crucial for limiting Corporate entities to using 100% renewable the rise in global average temperature to well below S 5 account for around energy. 2 degrees Celsius above pre-industrial levels, in line with the Paris Agreement. To increase renewables on such a Although US and European two- scale, annual investment in the renewable energy sector through markets continue to 1 2050 would need to be roughly triple that of 2017. The bulk of the account for the bulk of 2 needed investment is expected to come from private finance. thirds corporate renewable energy i of the world’s final sourcing, this practice is Corporate entities account for around two-thirds of the world’s energy consumption now spreading to regions final energy consumption and will continue to account for more than half by 2050, as estimated by the International Renewable around the world; countries Energy Agencyʼs REmade Index under the Clean Energy Ministerial’s such as Burkina Faso, ii Corporate Sourcing of Renewables campaign Chile, China, Egypt, Ghana, India, Japan, Mexico, Namibia, Thailand . As companiesʼ 6 and others have experienced growth in corporate sourcing. demand for renewable energy increases, they have the potential to play an important role in driving investment in renewables and Initially, many companies considered the adoption of renewable 3 in helping to meet the global climate target. energy solutions to be mainly an act of corporate social responsibility. Meeting internal environmental and social Since the mid-2000s, more and more companies in a variety of objectives such as greenhouse gas emission reduction targets, industries across different sectors have committed to ambitious and addressing the growing demand for corporate sustainability renewable energy targets and have begun to source renewables to from investors and consumers, continue to be key drivers run their operations. As of early 2017, 48% of the US-based Fortune 7 for corporate sourcing. 500 companies and 63% of the Fortune 100 companies had at least In recent years, however, significant one climate or clean energy target, and 10% of the Fortune 500 reductions in renewable energy costs, as well as maturing 4 companies had set a specific renewable energy target. market and policy environments, have made renewables cost- By early 8 competitive and attractive sources of energy in their own right. 2018, more than 130 leading global corporations with operations across 122 countries had joined the RE100 initiative, a network of For corporations, the economic benefits of sourcing renewables i Corporate entities in this chapter refers to companies, both publicly and privately owned. This chapter is based in part on International Renewable Energy Agency (IRENA), "Corporate Sourcing of Renewables: Market and Industry Trends (REmade ii Index 2018)" (Abu Dhabi: May 2018), http://www.irena.org/publications. The REmade Index was developed under the Clean Energy Ministerial’s Corporate Sourcing of Renewables campaign, for which IRENA is the operating agent, with support from an international network of non-state renewable energy actors including industry associations, private sector entities, and civil society and research organisations. See endnote 3 for this chapter. 173

174 RENEWABLES Corp GLOBAL STATUS REPORT and is not a given. Yet renewables projects with corporate off- may also include long-term price stability, security of supply, reduction of energy-related expenses and the possibility of new takers or direct investors generally begin to generate renewable 9 12 business opportunities. energy more rapidly than otherwise would be the case. From a developer’s perspective, having in place a long-term power purchase agreement (PPA) with a large, creditworthy corporate i risk and end-user has become a way to address off-taker HOW COMPANIES SOURCE 10 Other drivers for developers decrease overall financing costs. RENEWABLE ELECTRICITY to sell directly to corporations may relate to the advantages of diversifying customer portfolios and revenue streams. As of 2017, corporations As of end-2017, corporate For governments, some of the drivers to encourage and facilitate - sourced renewable elec entities worldwide had corporate sourcing of renewable energy include compliance tricity in 75 countries actively sourced with national and international climate targets, job creation and through corporate PPAs, economic growth through new investment, as well as other - utility green procure socio-economic benefits. ment programmes and TWh 465 iii Although many companies are sourcing renewables to meet un renewable bundled of renewable electricity their thermal and transport energy needs, comprehensive global electricity certificates/ tracking of sourcing activity in these areas is still lacking or guarantees of origin 13 incomplete, and more efforts will need to be undertaken globally (RECs/GOs). The majority to assess this trend. This chapter focuses primarily on corporate of such activities took 14 sourcing of renewable electricity. place in the United States, followed by Europe. - In addition, cor porations in a large number of countries worldwide have invested As of end-2017, corporate entities worldwide had actively sourced ii 11 directly in on-site and off-site renewable energy systems for their own The additionality of some 465 TWh of renewable electricity. 15 consumption. ( p See Figure 58.) corporate sourcing options and initiatives is difficult to measure i Off-taker refers to the purchaser of the energy from a renewable energy project or installation (e.g., a utility company) following an off-take agreement. Off-taker risk is the risk of non-payment or delayed payment of the agreed tariff by the off-taker. (See Glossary.) ii Additionality here refers to the net incremental capacity deployed or renewable energy generated as a direct result of corporate sourcing, beyond what would occur in its absence. An “unbundled” electricity certificate is one that is traded separately from the electricity itself. iii Countries Where Corporations Have Sourced Renewable Electricity, up to End-2017 FIGURE 58 . Corporate sourcing No corporate in 2017 or prior sourcing or no data Note: Figure shows countries where corporate sourcing has taken place either through PPAs, utility green procurement programmes and/or the purchase of unbundled renewable electricity certificates. Direct investment in production for self-consumption is not included. Please see disclaimer on page 7 of this report for details on designations and presentation of material in this map. Source: IRENA. See endnote 15 for this chapter. 174

175 08 was produced from renewable energy sources. Elsewhere, many CORPORATE PPAS utilities have similarly expanded their product portfolios to meet When sourcing renewable energy through a PPA, the corporation the growing corporate demand for renewable energy. To certify enters into a long-term contract with an independent power and communicate various sustainability aspects of their green producer (IPP) or a utility and commits to purchasing a specific premium products, some utilities use consumer labels – such as amount of renewable electricity, or the output from a specific EKOenergy, Green-e and Gold Power – in addition to electricity asset, at an agreed price. The typical duration of a PPA for a attribute certificate schemes. newly built project is 10 years or longer, although the period varies i across industry sectors and jurisdictions. “Virtual” PPAs have So-called green tariff programmes are utility options that allow become the norm in most larger PPA markets because they are for savings on electricity bills, developed in response to the more flexible in their structure and do not require the developer growing demand for renewable energy from large-scale corporate 16 and the off-taker to be connected to the same network provider. customers. Green tariff programmes, where available, enable consumers to purchase renewable electricity from a specific asset Corporate PPAs started to become popular in the mid-2000s and through a longer-term utility contract. In the United States, utilities CORPORATE SOURCING OF RENEWABLES have since emerged as an attractive option for companies to source in 13 states and the District of Columbia were offering green tariff renewable electricity while locking in a long-term, cost-competitive 23 Through these programmes, deals programmes as of late 2017. price. In 2017, a record level of corporate PPAs was reached with 17 totalling more than 950 MW were contracted over the 2013-2017 5.4 GW of new capacity contracted, up 27% from the 2016 level. FEATURE: period; the information technology (IT) sector alone contracted The global cumulative renewable PPA capacity reached an 24 An additional 465 MW of 560 MW of these deals in 2017. estimated 19 GW in 2017, with about 60% of this capacity signed 25 18 contracted capacity was under negotiation as of end-2017. solely in the United States. Around 20% of the cumulative corporate PPA capacity has been signed in Europe, with the Netherlands, In Europe, green tariffs have been used in various ways. 19 Norway, Sweden and the United Kingdom dominating this market. For example, the Dutch national rail company Nederlandse The remaining capacity is spread out, with India and Mexico leading Spoorwegen (NS) issued a tender in 2015 for a long-term 20 the corporate PPA markets in their respective regions. green tariff contract, accepting bids for electricity only from new renewable energy installations. The utility that won the bid The bulk of the global contracted PPA capacity has been wind agreed to supply NS with renewable electricity from new wind energy and solar photovoltaics (PV), with some examples of 26 21 farms under a 10-year contract. hydropower and bioenergy plants. Data disclosed by more than 2,400 companies show Given the complex contractual arrangements associated with that corporations voluntarily sourced an estimated corporate PPAs – and the desire by developers to seek credit- 275 terawatt-hours (TWh) of renewable electricity through worthy off-takers – most of the deals have been contracted by large 27 various types of utility programmes in 2016. multinational corporations. Typically, the PPAs have been signed directly between a corporation and an IPP. However, another option for multiple corporate actors (including municipalities, DIRECT INVESTMENT FOR SELF-CONSUMPTION local governments and universities, among others) is to form a In the case of direct investment for self-consumption (also known consortium to aggregate their electricity demand under a single as auto-consumption), the corporation invests in and owns a PPA deal. One of the most well-known consortium PPAs was renewable energy asset (on-site or off-site) primarily to generate signed in 2016 when three Dutch companies (AkzoNobel, DSM electricity to power its own operations. and Philips), along with Google (United States), jointly negotiated a PPA that enabled the construction of the 102 megawatt (MW) The market for direct investment for self-consumption is driven 22 Krammer Wind Park in the Netherlands. predominantly by companies that install relatively small-scale, on-site rooftop solar PV systems and by large industrial players with biomass waste streams that are used to produce energy. UTILITY GREEN PROCUREMENT The latter may include breweries or pulp and paper industries In the case of utility green procurement, the corporation investing in biomass-based combined heat and power plants to purchases renewable energy either through green premium run their operations. products or through a tailored renewable energy contract, such In addition, a few large companies have made direct investments as a green tariff, offered by a utility. Green premium products, in large-scale solar and wind power assets for their own use. For which typically target residential or small-scale commercial utility example, in early 2018, Argentinian aluminium producer Aluar customers, enable buyers to conveniently purchase renewable placed a 50 MW order for the second phase of its wind park, energy directly from the utility without a long-term commitment, doubling the company’s wind power capacity for its own use. but also without the prospect for price savings. ( p see page 46 in this report) As of early 2018, most large utilities in Europe offered some ii of In total, corporations actively consumed an estimated 465 TWh sort of green premium product supported by the European 28 Guarantee of Origin scheme, which certifies that the electricity renewable electricity by the end of 2017. A “virtual” PPA is a contract under which the developer sells its electricity in the spot market. The developer and the corporate off-taker then settle the diffe - i rence between the variable market price and the strike price, and the off-taker receives the electricity certificates that are generated. This is in contrast to more traditional PPAs, under which the developer sells electricity to the off-taker directly. ii Given the different characteristics and geographical spread of direct investments, tracking the development of corporate renewable energy investment for self-consumption remains difficult, and these figures should be considered indicative. 175

176 RENEWABLES 2018 GLOBAL STATUS REPORT Heavy industry, which has a tradition of either owning energy- UNBUNDLED RENEWABLE ELECTRICITY CERTIFICATES/ generating assets or holding bilateral contracts with generators, GUARANTEES OF ORIGIN also has experienced significant growth in its sourcing of Unbundled RECs or GOs remain the most popular approach renewables in recent years. Several major companies involved to corporate sourcing. They are purchased separately from the in energy-intensive manufacturing have signed long-term actual electricity sourcing as a mechanism to offset conventional renewable energy PPAs; in 2017, among the largest industry electricity consumption. Each certificate purchased and off-takers were aluminium manufacturer Norsk Hydro (Norway), cancelled or retired (meaning that the certificate is taken out of cement maker and building company Cemex (Mexico) and the market) is equivalent to the use of 1 megawatt-hour (MWh) of automobile manufacturer General Motors (United States). Norsk renewable electricity. Whether or not a corporation can purchase Hydro contracted 483 MW of wind energy PPAs in 2017, out of a certificates directly varies from market to market. Currently, total of 744 MW of such PPAs signed by the company since early 35 unbundled certificates can be purchased in the European Union Cemex, which had contracted more than 500 MW of PPAs 2016. (EU) as well as in China, India, Singapore and the United States, to power its operations in 2009, has since become a renewable 29 among other countries. energy project developer supporting other corporations in their 36 General Motors contracted 200 MW of sourcing of renewables. Although certificates provide a convenient way to source 37 wind energy PPAs in 2017 to power its manufacturing facilities. renewables, questions have arisen with regard to their additionality. In some cases, there are concerns about the effectiveness and Signing a long-term renewable energy PPA not only reduces the transparency of certificate tracking. As other cost-competitive energy supply risks and price volatility associated with fossil fuels, options for purchasing renewable energy have become available but can help corporations comply with environmental regulations, in markets around the world, many large corporations that initially such as carbon pricing, that are relevant for heavy industry in a growing number of markets. Furthermore, renewable energy has reached their renewables targets by buying RECs/GOs are now been shown to be a cost-competitive way to meet the energy considering sourcing options that allow them to play a more 30 needs of mining companies, where on-site renewable power active role in adding new renewable energy capacity to the grid. and heat installations provide reliable energy in remote, off-grid Data collected from RE100 38 locations. Corporations sourced member companies show renewable electricity in that, traditionally, one of the more popular approaches to sourcing renewables POLICY FRAMEWORKS 75 countries has been via certificate TO ENABLE CORPORATE SOURCING in 2017 purchasing. However, the share of renewable OF RENEWABLES electricity consumed by The options available for corporations to source renewable RE100 members through energy depend greatly on the markets and policy frameworks in certificate purchasing which they operate, as well as on the nature of their operations 31 declined from 60% in 2015 to only 40% percent in 2016. and internal capacity. As with any form of renewable energy deployment, corporate sourcing of renewables can reach its full potential when it has government backing through the establishment of long-term, stable and predictable policy MAIN INDUSTRIES SOURCING frameworks. Although some corporate sourcing options, such RENEWABLE ELECTRICITY as corporate PPAs, thrive in less-regulated markets, an enabling policy framework can advance most corporate sourcing options, The IT sector continues to purchase by far the largest amounts of whether in vertically integrated or liberalised energy markets. renewable energy, mainly through wind energy PPAs. The three largest corporate buyers in all sectors at the end of 2017 were Barriers to corporate sourcing of renewable energy include a US-based Google, Amazon Web Services and Microsoft, all of lack of clarity around, or absence of: a credible renewable energy 32 which source renewables around the world. Google announced attribute and certificate tracking scheme; grid access rules; third- in late 2017 that it had signed a corporate PPA for 536 MW of wind party sales/access; renewable energy procurement options; power, bringing its total contracted capacity of wind and solar and/or net metering possibilities. Several policy measures have 39 power to more than 3.1 GW, equivalent to the total renewable ( See Table 4.) p addressed these barriers successfully. 33 energy capacity installed in Ireland. Regardless of the corporate sourcing option used, a transparent and credible attribute mechanism (for example, GOs in Europe Amazon Web Services reached a total of 1.2 GW contracted by and RECs in Australia, China, India, Mexico and the United States) year’s end, followed by Microsoft (759 MW) and US-based Apple 34 can guarantee that a specific amount of energy originates from a (749 MW) and Facebook (736 MW). The cost of energy to run certain source. More importantly, an attribute certificate scheme data centres and cloud computing services represents a large supported by a transparent tracking mechanism can ensure that share of expenses for companies in the IT sector, so the ability to certificates are being cancelled or retired properly and that there lock in a long-term electricity price through a renewable energy is only one final claim of usage. PPA provides a clear business case for companies seeking to hedge against electricity price volatility while also meeting their Renewable energy attribute certificate tracking schemes can greenhouse gas emission reduction targets. support the direct trade of unbundled certificates by corporations, 176

177 08 Overview of Policy Measures That Support Various Corporate Sourcing Options TABLE 4. Policy Measures Examples of Countries Corporate Sourcing Option Using These Policies Nationally or Sub-nationally Argentina, Brazil, Chile, ■ Allow third-party sales (bilateral trade/sales) directly between Corporate PPAs Mexico, Netherlands, Norway, corporate buyers and IPPs Sweden, United Kingdom, ■ Provide clear and transparent grid-access rules and “wheeling” United States arrangements that permit both on-site and off-site PPAs ■ Provide transparent and credible tracking of renewable energy attribute certificates Utility green ■ Support market-based renewable energy pricing Netherlands, United States procurement CORPORATE SOURCING OF RENEWABLES ■ Support tailored long-term renewable energy contracts for large-scale corporations (e.g., the creation of green tariff programmes) ■ Provide transparent and credible tracking of renewable energy attribute certificates FEATURE: China, India, Japan, United ■ Provide clear and stable mechanism for on-site and off-site systems Direct investment for Kingdom self-consumption to feed excess electricity to the grid (e.g., net metering scheme) – preferably with priority dispatch for renewable energy ■ Provide a wheeling mechanism that allows for the transport of electricity from off-site generation to the place of consumption ■ Provide transparent and credible tracking of renewable energy attribute certificates GOs in Europe; ■ Provide transparent and credible tracking of renewable energy Unbundled renewable attribute certificates RECs in Australia, China, India, electricity certificates Mexico, United States (RECs/GOs) ■ Allow for corporations to buy electricity certificates directly Note: "Wheeling" refers to the transfer of electric energy through transmission and distribution lines from one utility's service area to another's. Source: IRENA. See endnote 39 for this chapter. and further support the development and pursuit of ambitious as well as the corporate PPA market, utility green procurement and direct investment for self-consumption. For corporations to renewable energy goals through various sourcing options. make a renewable energy claim, they need clear ownership of the The RE100 campaign, under The Climate Group and CDP, renewable energy attribute certificates that are generated under gathers some of the world’s most influential businesses that each contract arrangement or under particular policy incentive are committed to sourcing 100% renewable electricity. Through 40 programmes, such as feed-in tariffs. events and webinars, the initiative seeks to support members in An independent issuing body – ranging from a government reaching their targets and going beyond them by also engaging 43 agency to a private actor, depending on the market – generally their supply chains. is responsible for issuing, tracking and verifying credible attribute Another successful initiative is the Renewable Energy Buyers certificates. As of end-2017, certificate markets were in place Alliance, which brings together buyers, suppliers and policy mainly in North America and Europe; however, some countries makers to identify and remove barriers related to purchasing in Asia and Latin America have established or are considering renewable energy. First established in the United States by 41 establishing electricity certificate schemes. For example, China Business for Social Responsibility, the Rocky Mountain Institute, launched a national REC market in July 2017, following policy the World Resources Institute and the World Wildlife Fund, the reforms in its power sector, and Clean Energy Certificates are to network is now active in Australia, China, India, Mexico and 42 be traded in Mexico from 2018 onwards. 44 Vietnam. A similar network, the RE-Source Platform, focuses on the European market (at both the EU and national levels) and was launched in 2017 by SolarPower Europe, WindEurope, RE100 CAPACIT Y BUILDING THROUGH 45 and the World Business Council for Sustainable Development. KNOWLEDGE SHARING To scale up corporate sourcing efforts globally, the Corporate Sourcing of Renewables campaign was launched in May 2016 For most corporations, electricity generation and/or complex 46 at the Seventh Clean Energy Ministerial (CEM). The campaign power sourcing options are not part of their core business. is a collaborative effort among CEM countries and several global Signing a long-term PPA or investing directly in a renewable organisations and initiatives to enable knowledge exchange and energy system requires expertise that many companies do not to incentivise new corporate renewable energy commitments have. In response to rising corporate interest in renewable energy 47 sourcing, several initiatives have been established to recognise and implementation. 177

178 RENEWABLES 2018 GLOBAL STATUS REPORT Global Renewable Energy Capacity and Biofuel Production, 2017 TABLE R1. Existing at End-2017 Added During 2017 Power Capacity (GW) 8.1 122 Bio-power 12.8 0.7 Geothermal power 19 1,114 Hydropower 0.5 ~0 Ocean power 402 98 Solar PV 0.1 4.9 Concentrating solar thermal power (CSP) 539 52 Wind power ) (GW Thermal Capacity th 3 314 Modern bio-heat 1 25 1.4 Geothermal direct use 2 472 35 Solar collectors for water heating (billion litres per year) Transport Fuels Production 106 2.9 Ethanol 0.1 31 FAME Biodiesel 0.6 6.5 HVO 1 Data do not include heat pumps. 2 Data do not include air collectors. Note: Annual additions are net, except for the additions pertaining to solar collectors for water heating, which are gross. Numbers are rounded to the nearest th /billion litres, with the exceptions of numbers <15, which are rounded to first decimal point; where totals do not add up, the difference is due to GW/GW rounding. Rounding is to account for uncertainties and inconsistencies in available data. Data reflect adjustments to year-end 2016 capacity data (particularly for bio-power and hydropower). Solar PV data are provided in direct current (DC); for hydropower, the GSR strives to exclude pure pumped storage capacity from hydropower capacity data. For more precise data, see Reference Tables R15-R21, Market and Industry chapter and related endnotes. FAME = fatty acid methyl esters; HVO = hydrotreated vegetable oil Source: See endnote 1 for this section. 178

179 RT 1 Renewable Power Capacity, World and Top Regions/Countries TABLE R2. , 2017 United World United 2 Technology EU-28 China BRICS India Germany Japan States Total Kingdom GW GW REFERENCE TABLES 122 9.5 40 3.6 40 14.9 16.7 8 6 Bio-power 0.8 0.1 0.5 12.8 0 ~0 2.5 ~0 0 Geothermal power 1.9 23 45 1,114 80 313 124 507 5.6 Hydropower ~0 0 0 0 ~0 ~0 0.2 ~0 0.5 Ocean power 3 108 18.3 402 152 12.7 131 51 42 49 Solar PV Concentrating solar 2.3 0 0 0.2 ~0 1.7 0.5 ~0 4.9 thermal power (CSP) 169 188 89 539 33 3.4 18.9 236 56 Wind power Total renewable 443 39 2,195 936 power capacity 647 241 112 106 79 (including hydropower) Total renewable 38 1,081 320 334 161 107 61 57 power capacity 429 (not including hydropower) Per capita capacity 1.3 0.5 0.2 0.6 0.1 0.6 0.4 0.1 (kilowatts per inhabitant, 0.05 not including hydropower) 1 Table shows the top six countries by total renewable power capacity not including hydropower; if hydropower were included, countries and rankings would differ somewhat (the top six would be China, the United States, Brazil, Germany, India and Canada). 2 The five BRICS countries are Brazil, the Russian Federation, India, China and South Africa. 3 Solar PV data are in direct current (DC). See Methodological Notes for more information. Note: Global total reflects additional countries not shown. Numbers are based on the best data available at the time of production. To account for uncertainties and inconsistencies in available data, numbers are rounded to the nearest 1 GW, with the exception of the following: capacity totals below 20 GW and per capita totals are rounded to the nearest decimal point (except for India, which is rounded to the nearest 0.01 kW). Where totals do not add up, the difference is due to rounding. Capacity amounts of <50 MW (including pilot projects) are designated by “~0.” For more precise capacity data, see Market and Industry chapter and related endnotes. Numbers should not be compared with prior versions of this table to obtain year-by-year increases, as some adjustments are due to improved or adjusted data rather than to actual capacity changes. Hydropower totals, and therefore the total world renewable capacity (and totals for some countries), reflect an effort to omit pure pumped storage capacity. For more information on hydropower and pumped storage, see Methodological Notes. Source: See endnote 2 for this section. 179

180 RENEWABLES 2018 GLOBAL STATUS REPORT TABLE R3. Renewable Energy Targets, Share of Primary or Final Energy and Progress, End-2015 Note: Text in bold indicates new/revised in 2017, brackets '[]' indicate previous target where new targets were enacted, and text in italics indicates policies adopted at the state/provincial level. Some targets shown may be non-binding. Country Primary Energy Final Energy Target Share Target Share 20% by 2020 13.3% k 17% EU-28 Afghanistan 18% k 10% (no date given) 1 Albania 34.4% k 38% by 2020 k 39% 18% by 2020 k Algeria 0.1 % 37% by 2030 [40% by 2030] 12.4% k Armenia 15.8% 21% by 2020 k 26% by 2025 2 Austria 30.1% (2016) k 34% 45% by 2020 2.3% Azerbaijan 1.8% 1 Bangladesh 24.8% k 34.8% 10% by 2020 5.5% Belarus 32% by 2020 k 6.8% k Belgium 6.7% (2016) 9.7% by 2020 9% k 13% by 2020 k Wallonia 20% by 2020 1 Benin 50.9% k 59.6% 25% by 2025 40% by 2020 24.9% k Bosnia and 40.8% Herzegovina k 43.8% 40.3% Brazil 45% by 2030 k Bulgaria 10.7% 1 7. 7 % 16% by 2020 1 Burundi k 96% 2.1% by 2020 3 k 12.4% China 15% by 2020 8.4% k 20% by 2030 3% (2016) k Côte d’Ivoire 15% by 2020 64.5% 20% by 2030 k Croatia 23.3% 33% k 20% by 2020 k Cyprus 7.3% 9.9% 13% by 2020 2 Czech Republic k 15% 10.5% (2016) 13.5% by 2020 Denmark 30% (2016) 33% k 35% by 2020 k 100% by 2050 k Djibouti 15.4% 17% by 2035 k 3.8% Egypt 5.7% 14% by 2020 2 7. 5 % 17.6% (2016) Estonia k 25% by 2020 31.3% Fiji k 23% by 2030 1 43.2% k Finland 31.2% (2016) 38% by 2020 1 k 40% by 2025 9.6% (2016) France 23% by 2020 k 14% 32% by 2030 k Gabon 76.7% 82% k 80% by 2020 2 Germany 12.7% (2016) k 14% 18% by 2020 k 30% by 2030 45% by 2040 k k 60% by 2050 Ghana 42.5% 41.4% k Increase by 10% by 2030 (base year 2010) 2 Greece 12.1% (2016) k 20% by 2020 17% k Grenada 20% by 2020 10.9% k 63.7% 63% Guatemala 80% by 2026 180

181 RT TABLE R3. Renewable Energy Targets, Share of Primary or Final Energy and Progress, End-2015 (continued) Note: Text in bold indicates new/revised in 2017, brackets '[]' indicate previous target where new targets were enacted, and text in italics indicates policies adopted at the state/provincial level. Some targets shown may be non-binding. Country Primary Energy Final Energy Target Share Target Share REFERENCE TABLES 30% by 2030 76.3% Guinea k 20% by 2025 25.3% Guyana k 2 Hungary 11.5% (2016) 16% k 14.65% by 2020 64% by 2020 Iceland 89.5% (2016) 77% k k Indonesia 6% (2016) 36.9% 23% by 2025 31% by 2050 k k 7.9% (2016) Ireland 9.1 % 16% by 2020 2.4% (2016) Israel k 13% by 2025 3.7% k 17% by 2030 [10% by 2020] Italy 17.4% (2016) 17% k 17% by 2020 k 16.8% 18.6% Jamaica 20% by 2030 Japan 4.8% (2016) 6.3% 14% by 2030 k k Jordan 2 .1 % 10% by 2020 2.8% k 11% by 2025 1.7% (2016) Korea, Republic of k 6.1% by 2020 2.7% k 11% by 2030 4 Kosovo 25% by 2020 k 20.5% 1 30% by 2025 Lao PDR 59.3% k 38% k Latvia 39.1% (2016) 40% by 2020 15% by 2030 k 3.7% Lebanon [12% by 2020] 5% (2016) Liberia k 10% by 2030 30% by 2030 k Libya k 10% by 2020 2% 19.6% k Lithuania 20% by 2025 29% k 23% by 2020 5.6% (2016) 9% k 11% by 2020 Luxembourg Macedonia, FYR 28% by 2020 k 24% 15.7% 1 54% by 2020 k 70.2% Madagascar k 83.7% Malawi 7% by 2020 Mali k 61.5% 15% by 2020 3.2% Malta k 5% 10% by 2020 20% by 2020 32.2% Mauritania k 10.3% k Moldova 20% by 2020 14.3% k 17% by 2020 Mongolia 3.2% k 20–25% by 2020 3.4% 1 k Montenegro 30.6% 43% 33% by 2020 1 k Nepal 84.1% 85.3% 10% by 2030 2 Netherlands 14% by 2020 4.9% (2016) 6% k 1 Niger 74. 7 % k 78.9% 10% by 2020 Norway 49.2% (2016) 58% k 67.5% by 2020 Palau k 20% by 2020 0% Palestine, State of k 25% by 2020 Panama 2 1.1 % k 21.2% 30% by 2050 8.5% (2016) k Poland 15.5% by 2020 k 12% by 2020 12% 24.3% (2016) 27% k Portugal 40% by 2030 31% by 2020 k k 24% 18.7% Romania 24% by 2020 181

182 RENEWABLES 2018 GLOBAL STATUS REPORT TABLE R3. Renewable Energy Targets, Share of Primary or Final Energy and Progress, End-2015 (continued) Note: Text in bold indicates new/revised in 2017, brackets '[]' indicate previous target where new targets were enacted, and text in italics indicates policies adopted at the state/provincial level. Some targets shown may be non-binding. Country Primary Energy Final Energy Target Share Target Share 34.3% 20% by 2030 k Samoa 13.1% Serbia 21.2% k 27% by 2020 9.7% (2016) 13% k 14% by 2020 Slovak Republic Slovenia 16.8% (2016) 21% 25% by 2020 k 2 Spain 14.6% (2016) k 20.8% by 2020 16% k St. Lucia 2 .1 % 20% by 2020 2 Sweden k 50% by 2020 37% (2016) k 100% by 2040 53% k 22.3% (2016) 24% by 2020 25.3% Switzerland Syria 0.4% k 4.3% by 2030 0.5% k 19.2% 22.9% Thailand 30% by 2036 25% by 2021 k 1 To g o 78.9% 71.3% k 4% (no date) k 18% by 2030 4.1% k 11% by 2020 Ukraine 3% 25% by 2035 k United Arab 0.2% 0.1 % k 24% by 2021 Emirates 8.2% 15% by 2020 8.7% United Kingdom k 16% by 2030 k 3% 2.4% Uzbekistan k 19% by 2050 k 65% by 2020 36.1% Vanuatu Vietnam 27.6% k 35% 5% by 2020 k 8% by 2025 11% by 2050 k 1 Targets may exclude large-scale hydropower and/or traditional biomass. The definition of large-scale hydropower varies by country. 2 Final energy targets by 2020 for all EU-28 countries are set under EU Directive 2009/28/EC. The governments of Austria, the Czech Republic, Germany, Greece, Hungary, Spain and Sweden have set higher targets, which are shown here. The government of the Netherlands has reduced its more ambitious target to the level set in the EU Directive. 3 The Chinese target is for share of “non-fossil” energy. All targets include nuclear power. 4 Kosovo is not a member of the United Nations. Note: Historical targets have been added as they are identified by REN21. A number of nations have already exceeded their renewable energy targets. In many of these cases, targets serve as a floor setting the minimum share of renewable energy for the country. Some countries shown have other types of targets (see Reference Tables R4-R10). Source: See endnote 3 for this section. 182

183 RT TABLE R4. Renewable Energy Targets, Technology-Specific Share of Primary or Final Energy Target Technology Country 1.4% share in primary energy (combined) by 2025 Hydropower, solar PV, wind power Indonesia Biofuels 10.2% biofuel share of primary energy by 2025 REFERENCE TABLES 1 5.8% of final energy by 2020 Bioenergy from solid biomass, biogas and organic MSW 2.7% of final energy by 2020 Liquid biofuels Spain 2.9% of final energy by 2020 Hydropower 1 It is not always possible to determine whether data for municipal solid waste (MSW) include non-organic waste (plastics, metal, etc.) or only the organic biomass share. Source: See endnote 4 for this section. 183

184 RENEWABLES 2018 GLOBAL STATUS REPORT TABLE R5. Renewable Heating and Cooling Targets and Progress, End-2016 Progress 2016 Country Target 32.6% by 2020 33% Austria 11.9% by 2020 Belgium 8.1 % Bhutan Solar thermal: 3 MW equivalent by 2025 24% renewables in total heating and cooling by 2020 30% Bulgaria 2 2 462.9 million m China Solar thermal: 800 million m by 2020 19.6% by 2020 38% Croatia 23.5% by 2020 Cyprus 23% Czech Republic 20% 14.1% by 2020 39.8% by 2020 Denmark 42% 38% by 2020 Estonia 51% 54% 47% by 2020 Finland 38% by 2030 21% France 14% by 2020 Germany 13% 25% Greece 20% by 2020 18.9% by 2020 Hungary 21% 2 6.7 GW India (8 million m Solar water heating: 5.6 GW ) of new th th capacity to be added 2012-2017; achieve 14 GW th 2 (20 million m ) by 2022 15% by 2020 Ireland 6.8% 17.1% by 2020 Italy 19% (2015) 6,320 ktoe (2015) Bioenergy: 5,670 ktoe for heating and cooling by 2020 Geothermal: 300 ktoe for heating and cooling by 2020 207 ktoe Solar water and space heating: 1,586 ktoe by 2020 231.3 ktoe Jordan 0.882 GW Solar water heating: systems for 30% of households by 2020 (2015) th Solar water heating: 60% of annual demand for buildings Kenya that use over 100 litres of hot water per day (no date) 1 Kosovo 45.65% by 2020 53.4% by 2020 52% Latvia 15% renewables in gross final consumption in power and Lebanon heating by 2030 Libya Solar water heating: 80 MW by 2020 by 2015; 250 MW th th 47% 39% by 2020 Lithuania 7.3% Luxembourg 8.5% renewables in gross final consumption in heating and cooling by 2020 11% by 2020 Macedonia, FYR 32% Malawi Solar water heating: produce 2,000 solar water heaters; increase total installed to 20,000 by 2030 Malta 6.2% by 2020 15% 2 2 3.4 million m Mexico of collectors by 2027 Solar water heating: install 18.2 million m Moldova 27% by 2020 38.2% by 2020 69% Montenegro 2 0.316 GW Morocco ) by 2020 (2015) (1.7 million m Solar water heating: 1.2 GW th th 0.001 GW Mozambique (2015) Solar water and space heating: 100,000 systems installed th in rural areas (no date) 5.5% 8.7% by 2020 Netherlands 17% by 2020 15% Poland 35% 30.6% by 2020 Portugal Romania 27% 22% by 2020 184

185 RT TABLE R5. Renewable Heating and Cooling Targets and Progress, End-2016 (continued) Country Progress 2016 Target 30% by 2020 24% Serbia Sierra Leone Solar water heating: 2% penetration in hotels, guest houses and restaurants by 2020; 5% by 2030 REFERENCE TABLES Solar water heating: 1% penetration in the residential sector by 2030 Slovak Republic 9.9% 14.6% by 2020 Slovenia 34% 30.8% by 2020 18.9% by 2020 Spain 17% (2015) Bioenergy: 4,653 ktoe by 2020 8.2 ktoe Geothermal: 9.5 ktoe by 2020 352.9 ktoe (2015) Heat pumps: 50.8 ktoe by 2020 224 ktoe Solar water and space heating: 644 ktoe by 2020 62.1% by 2020 Sweden 69% Thailand Bioenergy: 8,200 ktoe by 2022 6,573 ktoe for heating (2015) Biogas: 1,000 ktoe by 2022 495 ktoe for heating (2015) 2 88 ktoe for heating (2015) Organic MSW : 35 ktoe by 2022 11.3 ktoe Solar water heating: 300,000 systems in operation and 100 ktoe by 2022 2 Solar water heating: 21 MW Uganda ) by 2017 (30,000 m th 12.4% by 2020 Ukraine 12% by 2020 United Kingdom 7% 1 Kosovo is not a member of the United Nations. 2 It is not always possible to determine whether municipal solid waste (MSW) data include non-organic waste (plastics, metal, etc.) or only the organic biomass share. Note: Targets refer to share of renewable heating and cooling in total energy supply unless otherwise noted. Historical targets have been added as they are identified by REN21. A number of nations have already exceeded their renewable energy targets. In many of these cases, targets serve as a floor setting the minimum share of renewable heat for the country. Table R5 includes targets established under EU National Renewable Energy Action Plans. As calculation of heating and cooling shares is not standardised across countries, the table presents a variety of targets for the purpose of general comparison. Source: See endnote 5 for this section. 185

186 RENEWABLES 2018 GLOBAL STATUS REPORT TABLE R6. Renewable Transport Targets and Progress, End-2016 indicates new/revised in 2017, brackets '[]' indicate previous targets where new targets were enacted, and text in bold Text in Note: italics indicates policies adopted at the state/provincial level. Country Share Target Country Share Target k 17% Norway EU-28 7.1% 10% of EU-wide transport final 20% by 2020 energy demand by 2020 k 20% by 2020 3.9% Poland Portugal 10% by 2020 7. 5% k k 0% Albania 10% by 2020 10% by 2020 k Qatar k Austria 11% 11.4% by 2020 Romania k 6.2% 10% by 2020 Belgium 5.9% k 10% by 2020 Serbia 1.2% 10% by 2020 k Wallonia k 10.14% by 2020 10% by 2020 k 7. 5 % Slovak Republic k 7.3% Bulgaria 11% by 2020 Slovenia 1.6% k 10.5% by 2020 Croatia 1.3% k 10% by 2020 Spain k 5.3% 11.3% from biodiesel k 2.7% Cyprus 10% by 2020 by 2020 k 6.4% Czech Republic 10.8% by 2020 k 2,313 ktoe ethanol/ k 6.8% Denmark 10% by 2020 1 by 2020 bio-ETBE k 0.4% Estonia 10% by 2020 k 4.7 GWh per year electricity 8% Finland k 30% biofuel blending and in transport by 2020 40% renewable transport (501 ktoe from renewable fuel use by 2030 sources by 2020) 15% by 2020 k 8.9% France 20% from biofuels by 2020 Sri Lanka k 5.2% Germany k 10% by 2020 k 30% Sweden Vehicle fleet independent 1.4% k Greece 10.1% by 2020 from fossil fuels by 2030 Hungary k 7. 4 % 10% by 2020 Thailand k 9 million litres per day ethanol consumption 7. 2 % Iceland k 10% by 2020 by 2022 Ireland 5.0% k 10% by 2020 k 6 million litres per day k Italy 7. 2 % 10.1% (2,899 ktoe) by 2020 biodiesel consumption by 2022 k 2.8% Latvia 10% by 2020 k 25 million litres per Liberia k 5% palm oil blends in transport fuel by 2030 day advanced biofuels production by 2022 Lithuania k 3.6% 10% by 2020 Uganda k 2,200 million litres per k Luxembourg 5.9% 10% by 2020 year biofuels consumption 5.4% Malta k 10.7% by 2020 by 2017 k Macedonia, FYR 0.1 % 2% by 2020 10% by 2020 k Ukraine k Moldova 20% by 2020 4.9% United Kingdom 10.3% by 2020 k k 1.1 % Montenegro 10.2% by 2020 k 5% of transport petroleum Vietnam energy demand by 2025 k Netherlands 4.6% 10% by 2020 1 ETBE is a form of biofuel produced from ethanol and isobutylene. Note: Targets refer to share of renewable transport in total energy supply unless otherwise noted. Historical targets have been added as they are identified by REN21. Only bolded targets are new/revised in 2017. A number of nations have already exceeded their renewable energy targets. In many of these cases, targets serve as a floor setting the minimum share of renewable energy for the country. Source: See endnote 6 for this section. 186

187 RT TABL E R 7. Renewable Transport Mandates at the National/State/Provincial Levels, End-2017 Note: Text in bold indicates new/revised in 2017, brackets '[]' indicate previous targets where new targets were enacted, and text in italics indicates policies adopted at the state/provincial level. Country Biofuel Blend Mandates Other Transport Mandates Existing Ethanol Existing Biodiesel Biofuel Mandate by REFERENCE TABLES Blend Mandate Blend Mandate Future Year (% Ethanol) (% Biodiesel) Angola 10% 10% 12% Argentina [10%] Australia New South Wales 2% 7% 0.5% 3% E4 by July 2018 and B0.5 Queensland Belgium 4% 4% Brazil B9 by 2018 and B10 by 2019 27% 8% (updated to B10 by early 2018) Canada 5% 2% 5% 2% Alberta 5% British Columbia 4% 2% 8.5% Manitoba 5% Ontario 4% Saskatchewan 2% 7. 5 % 1 China 10% 1% Taipei 10% 8% Colombia 7% 20% Costa Rica 0.9% advanced biofuels from Denmark waste materials by 2020 5% 10% Ecuador Ethiopia 10% France Sales of all diesel and petrol cars and vans banned by 2040 Guatemala 5% 22.5% India 15% 3% 20% Indonesia Italy 0.6% advanced biofuels blend by 2018; 1% by 2022 Jamaica 10% 2.5% Korea, Republic of B3 by 2018 Malawi 10% Malaysia 10% 10% 2 Mexico [5.8%] 10% Mozambique 15% E20 from 2021 New Zealand 7% Maximum methanol blend of 3% Norway 3.5% E20 by 2020 10% 30% of new vehicle purchases Panama for public fleets to be flex-fuel (no date) 25% 1% Paraguay 7. 8 % 2% Peru 10% 2% Philippines 187

188 RENEWABLES 2018 GLOBAL STATUS REPORT TABL E R 7. Renewable Transport Mandates at the National/State/Provincial Levels, End-2017 (continued) Note: Text in bold indicates new/revised in 2017, brackets '[]' indicate previous targets where new targets were enacted, and text in italics indicates policies adopted at the state/provincial level. Country Biofuel Blend Mandates Other Transport Mandates Existing Ethanol Existing Biodiesel Biofuel Mandate by Blend Mandate Blend Mandate Future Year (% Ethanol) (% Biodiesel) Romania 8% [4.5] Slovenia 100% of heavy-duty trucks to run on biodiesel and 12% of vans and trucks to be electric by 2030 2% 5% South Africa 5% Sudan 5% 7% Thailand Turkey 2% Ukraine 7% Sales of all diesel and petrol United Kingdom cars and vans banned by 2040 Scotland Sales of all diesel and petrol cars and vans banned by 2040 United States Renewable Fuel Standard (RFS) 2018 standards: 68.6 billion litres total renewable fuels, including 1.1 million litres cellulosic biofuel, 7.9 billion litres biomass-based diesel, 16.2 billion litres advanced 3 biofuel 10% Hawaii, Missouri and Montana 2% 2% Louisiana 5% Massachusetts Minnesota 10% 10% B20 as of May 2019 5% New Mexico Oregon 5% 10% Pennsylvania E10 one year after 1.3 billion litres (350 million gallons) produced; B5 one year after 379 million litres (100 million gallons) produced, B10 one year after 757 million litres (200 millon gallons) produced, and B20 one year after 1.5 billion litres (400 million 3 gallons) produced 2% B5 180 days after in-state Washington 2% feedstock, and oil-seed crushing capacity can meet 3% requirement 5% Uruguay 5% 5% Vietnam [5%] 10% Zimbabwe 1 E10 mandates exist in nine Chinese provinces, including Anhui, Heilongjian, Henan, Jilin and Liaoning. 2 Mexico's E10 maximum blend was subsequently halted in response to several court cases challenging the increase. 3 Original target(s) set in gallons and converted to litres for consistency. Note: ‘E’ refers to ethanol and ‘B’ refers to biodiesel. Chile has targets of E5 and B5 but has no current blending mandate. The Dominican Republic has targets of B2 and E15 for 2015 but has no current blending mandate. Fiji approved voluntary B5 and E10 blending in 2011 with a mandate expected. The Kenyan city of Kisumu has an E10 mandate. Table R7 lists only transport mandates; transport and biofuel targets can be found in Table R6. Source: See endnote 7 for this section. 188

189 RT Renewable Power Targets, Share of Electricity Generation and Progress, End-2016 TABLE R8. Text in Note: bold indicates italics indicates new/revised in 2017, brackets '[]' indicate previous targets where new targets were enacted, and text in policies adopted at the state/provincial level. Some targets shown may be non-binding. Current Current Target Country Target Country Share Share REFERENCE TABLES Congo, Democratic k 100% by 2050 EU-28 29.6% 1 Republic of 1 Afghanistan k 100% by 2050 k Congo, Republic of 85% by 2025 Algeria 27% by 2030 k 100% by 2030 k 98% Costa Rica 5% by 2015 k Antigua and Barbuda 42% by 2020 Côte d’Ivoire k k 10% by 2020 39% by 2020 Croatia 47% k 15% by 2030 k 24% by 2030 k Cuba 4% 8% by 2018 k Argentina 16% by 2020 Cyprus k 8.6% k 9% by 2019 14.3% by 2020 k 13.6% Czech Republic k 16% by 2021 4 k 18% by 2023 50% by 2020 k 54% Denmark 20% by 2025 k k 100% by 2050 40% by 2025 Armenia k 12% 35% by 2035 k Djibouti 100% by 2020 k Aruba 100% (no date) Dominica k 1 23% by 2020 Australia k k 12% 25% by 2025 Dominican Republic South Australia k 50% by 2020 k 100% by 2050 100% by 2020 k Tasmania 90% by 2017 k Ecuador k [85% by 2017] 20% by 2020 k Victoria k 40% by 2025 20% by 2022 k Egypt k [20% by 2020] 70.6% by 2020 Austria 73% k 70% by 2030 k Eritrea 20% by 2020 k Azerbaijan k [50% (no date)] 15% by 2020 Bahamas, The k k 30% by 2030 17.6% by 2020 16% k Estonia 1 5% by 2030 Bahrain k k 100% by 2050 Ethiopia 1 10% by 2020 k Bangladesh 100% by 2030 k Fiji k 100% by 2050 33% by 2020 k 33% Finland 1 k 65% by 2030 Barbados 40% by 2030 France 19% k k 100% by 2050 k 27% by 2020 20.9% by 2020 16% k Belgium 80% by 2025 Gabon k 85% by 2017 Belize 91% k k 70% by 2020 1 1 k 100% by 2050 Bhutan 35% by 2020 k Gambia 79% by 2030 Bolivia k k 100% by 2050 2 k 23% by 2030 Brazil 40–45% by 2025 32% Germany k k 55–60% by 2035 10% by 2035 Brunei Darussalam k k 80% by 2050 20.6% by 2020 k Bulgaria 19% 1 1 k 10% by 2020 Ghana k 50% by 2025 Burkina Faso k 100% by 2050 k 100% by 2050 40% by 2020 24% k Greece 100% by 2025 k Cabo Verde 1 k [100% by 2035] k 100% by 2050 Grenada 1 k [50% by 2020] 59% 80% by 2030 k Guatemala 1 k 25% by 2035 Cambodia k 100% by 2050 k 100% by 2050 2% by 2015 Guinea-Bissau k 25% by 2035 Cameroon k 90% (no date) Guyana k 3 No national target k Canada 1 47% by 2030 k Haiti 30% by 2030 Alberta k k 100% by 2050 1 93% (no date given) k British Columbia 60% by 2022 50% k Honduras k 80% by 2038 40% by 2020 k New Brunswick k 100% by 2050 25% by 2015 Nova Scotia k k 40% by 2020 10.9% by 2020 Hungary 7. 2 % k 5 50% by 2030 Saskatchewan k k 40% by 2030 India 20% by 2025 k 16.0% Chile 26% by 2025 k Indonesia 27% by 2020 k China 10% by 2030 Iraq k 9% by 2020 k 4.5% Taipei 42.5% by 2020 Ireland 27% k k 20% by 2025 17% by 2030 Israel k 1 10% by 2020 k Colombia 100% by 2050 k 1 26% by 2020 Italy 34% k k 43% by 2030 Comoros k 100% by 2050 20% by 2030 k Jamaica 189

190 RENEWABLES 2018 GLOBAL STATUS REPORT TABLE R8. Renewable Power Targets, Share of Electricity Generation and Progress, End-2016 (continued) Note: bold indicates new/revised in 2017, brackets '[]' indicate previous targets where new targets were enacted, and text in italics indicates Text in policies adopted at the state/provincial level. Some targets shown may be non-binding. Current Current Target Country Target Country Share Share Japan k 22–24% by 2030 90% by 2027 k 50% Nicaragua 1 15% by 2015 Jordan k Niger k 100% by 2050 7 3% by 2020 Kazakhstan k Nigeria k 10% by 2020 1 50% by 2030 k Palau k 100% by 2050 1 1 100% by 2050 k Kenya Palestine, State of 10% by 2020 k 1 k 3% by 2020 Kiribati k 100% by 2050 k 100% by 2050 Papua New Guinea k 100% by 2030 5% by 2018 Korea, Republic of k Paraguay k 60% increase k 6% by 2019 from 2014 to 2030 k 7% by 2020 k Peru 60% by 2025 k 20% by 2030 1 Philippines k 40% by 2020 10% (no date) k Kuwait k 100% by 2050 60% by 2020 k 51% Latvia k 13% Poland 19.3% by 2020 1 k 12% by 2020 Lebanon Portugal 54% k 60% by 2020 k 100% by 2050 Qatar k 2% by 2020 30% by 2021 Liberia k k 20% by 2030 7% by 2020 Libya k 43% Romania k 43% by 2020 10% by 2025 k 8 Russian Federation 4.5% by 2020 k 21% by 2020 k 17% Lithuania Altai Republic k 80% by 2020 11.8% by 2020 Luxembourg 6.7% k 1 Rwanda k 100% by 2050 24.7% by 2020 Macedonia, FYR 24% k Samoa k 100% by 2030 1 79% (no date) k Madagascar k São Tomé and Príncipe 47% (no date) k 100% by 2050 1 1 Senegal k 20% by 2017 k 100% by 2050 Malawi 100% by 2050 k 9% by 2020 k Malaysia 29% k Serbia 37% by 2020 k 11% by 2030 k 15% by 2050 k Seychelles 5% by 2020 1 k 15% by 2030 16% by 2017 k Maldives k 100% by 2050 Sierra Leone k 33% by 2020 6 k 36% by 2030 10% by 2015 k Mali k 25% by 2033 k Singapore 8% (no date) 3.8% by 2020 Malta 5.6% k k Slovak Republic 23% 24% by 2020 1 20% by 2020 k Marshall Islands 32% k Slovenia 39.3% by 2020 k 100% by 2050 Solomon Islands k 100% by 2030 35% by 2025 k Mauritius South Africa k 9% by 2030 35% by 2024 k Mexico 1 South Sudan k 100% by 2050 k 37.7% by 2030 Spain 37% k 38.1% by 2020 k 50% by 2050 1 Sri Lanka 20% by 2020 k 10% by 2020 k Moldova k 100% by 2050 51.4% by 2020 Montenegro k 51% 1 St. Lucia k 35% by 2020 1 20% by 2020 k Mongolia 100% by 2050 k k 30% by 2030 St. Vincent and the k 60% by 2020 k 100% by 2050 Grenadines 1 k 52% by 2030 Morocco 1 Sudan 20% by 2030 k k [52% by 2039] 100% by 2050 k k 100% by 2050 k 65% Sweden 62.9% by 2020 70% by 2030 Namibia k 1 k Tajikistan 10% (no date) k 100% by 2050 Nepal 1 Tanzania k 100% by 2050 37% by 2020 Netherlands 13% k 9 Thailand 20% by 2036 k 90% by 2025 k New Zealand 1 Timor-Leste 50% by 2020 k 100% by 2020 Cook Islands k 100% by 2050 k 100% by 2020 k Niue k To g o 15% by 2020 100% (no date) Tokelau k Tonga k 50% by 2020 1 Tunisia k 30% by 2030 k 100% by 2050 190

191 RT Renewable Power Targets, Share of Electricity Generation and Progress, End-2016 (continued) TABLE R8. italics indicates Note: indicates new/revised in 2017, brackets '[]' indicate previous targets where new targets were enacted, and text in Text in bold policies adopted at the state/provincial level. Some targets shown may be non-binding. Current Current Target Country Target Country Share Share REFERENCE TABLES k Turkey 30% by 2023 24.8% by 2025 k New Hampshire 100% by 2020 Tuvalu k k New Jersey 20.38% by 2020 and 4.1% solar by 2027 61% by 2017 Uganda k 1 1 New Mexico k 20% by 2020 (IOUs) 11% by 2020 k Ukraine 12 10% by 2020 (co-ops) k 20% by 2030 k 25% by 2035 k New York 50% by 2030 k No national target United Arab Emirates k North Carolina k 12.5% by 2021 (IOUs) 12 7% by 2020 Abu Dhabi k 10% by 2018 (co-ops) k 7% by 2020 Dubai k 12.5% by 2026 k Ohio 15% by 2030 k [25% by 2024] No national target United Kingdom 25% k Oregon k 50% by 2040 100% by 2020 k Scotland [25% by 2025 (utilities 10 with 3% or more of No national target k United States state’s load); 10% by 15% by 2025 k Arizona 2025 (utilities with 33% by 2020 California k 1.5-3% of state’s load); k 50% by 2030 5% by 2025 (utilities 30% by 2020 (IOUs) k Colorado with less than 1.5% 27% by 2020 k Connecticut of state’s load)] 25% by 2026 Delaware k k Pennsylvania 18% by 2021 100% by 2045 k Hawaii k Rhode Island 38.5% by 2035 k 25% by 2020 [16% by 2019] k 40% by 2030 Vermont k - 55% by 2017, increa 25% by 2026 Illinois k sing by 4% every 40% by 2017 Maine k - three years until rea 40% by 2017 k Maine ching 75% by 2032 25% by 2020 k Maryland Washington k 15% by 2020 [20% by 2020] District of Columbia k 50% by 2032 15% by 2020 and an k Massachusetts Puerto Rico k 20% by 2035 additional 1% each k U.S. Virgin Islands 30% by 2025 year thereafter k Uzbekistan 12.6% 19.7% by 2025 15% by 2021 Michigan k Vanuatu k 100% by 2030 [10% by 2015] 11 1 26.5% by 2025 (IOUs) Minnesota k Vietnam k 7% by 2020 k 31.5% by 2020 (Xcel) 10% by 2030 k [25% by 2025 (other k 100% by 2050 utilities)] 1 Yemen 15% by 2025 k 15% by 2021 Missouri k k 100% by 2050 25% by 2025 Nevada k 1 100% by 2050 target established by the Climate Vulnerable Forum. 2 Brazil’s target excludes all hydropower. 3 Canada's share excludes all hydropower. 4 In March 2012, Denmark set a target of 50% electricity consumption supplied by wind power by 2020. 5 India does not classify hydropower installations larger than 25 MW as renewable energy sources, so hydro >25 MW is excluded from national shares and targets. De facto sub-national targets have been set through existing RPS policies. 6 Mali’s target excludes large-scale hydropower. 7 Nigeria’s target excludes hydropower plants >30 MW. 8 The Russian Federation’s targets exclude hydropower plants >25 MW. 9 Thailand does not classify hydropower installations larger than 6 MW as renewable energy sources, so hydro >6 MW is excluded from national shares and targets. 10 The United States does not have a renewable electricity target at the national level. De facto state-level targets have been set through existing RPS policies. 11 RPS mandate is for investor-owned utilities (IOUs), which are utilities operating under private control rather than government or co-operative operation. 12 RPS mandate is for co-operative utilities. Note: Unless otherwise noted, all targets and corresponding shares represent all renewables including hydropower. A number of state/provincial and local jurisdictions have additional targets not listed here. Historical targets have been added as they are identified by REN21. Only bolded targets are new/revised in 2017. A number of nations have already exceeded their renewable energy targets. In many of these cases, targets serve as a floor setting the minimum share of renewable electricity for the country. Some countries shown have other types of targets (see Tables R3, R4, R5, R6, R9, R10, R14). See Policy Landscape chapter for more information about sub-national targets. Existing shares are indicative and may need adjusting if more accurate national statistics are published. Sources for reported data often do not specify the accounting method used; therefore, shares of electricity are likely to include a mixture of different accounting methods and thus are not directly comparable or consistent across countries. Where shares sourced from EUROSTAT differed from those provided to REN21 by country contributors, the former was given preference. Source: See endnote 8 for this section. 191

192 RENEWABLES 2018 GLOBAL STATUS REPORT TABLE R9. Renewable Power Targets, Technology-Specific Share of Electricity Generation Note: Text in bold indicates new/revised in 2017 and brackets '[]' indicate previous targets where new targets were enacted. Country Technology Target 50% by 2025 Electricity (off-grid and rural) Benin 50% by 2020 Wind power Denmark 30% by 2017 Solar PV (off-grid and rural) Djibouti Distributed power 20% by 2016 Dominican Republic Wind power 12% and 7.2 GW by 2020 Egypt Eritrea Wind power 50% (no date) 6% of generation by 2025 Guinea Solar power 2% of generation by 2025 Wind power Haiti Bio-power 5.6% by 2030 24.5% by 2030 Hydropower Solar power 7.55% by 2030 Wind power 9.4% by 2030 1 India Andhra Pradesh Solar power 0.25% by 2016–17 Solar power 1.25% by 2016–17; 1.5% by 2017–18; 1.75% by 2018–19; 2% by 2019–20; Bihar 2.5% by 2020–21; 3% by 2012–22 Delhi 0.35% by 2016–17 Solar power 0.25% by 2016–17; 0.5% by 2017–18; 0.75% by 2018–19; 1% by 2019–20; Solar power Himachal Pradesh 2% by 2020–21; 3% by 2021–22 Kerala Solar power 0.25% through 2021–22 West Bengal Solar power 0.5% by 2016–17; 0.6% by 2017–18 3.7–4.6% by 2030 Japan Bio-power Geothermal power 1–1.1% by 2030 8.8–9.2% by 2030 Hydropower 7% by 2030 Solar PV Wind power 1.7% by 2030 Latvia Bio-power from solid biomass 8% by 2016 Electricity Lesotho 35% of off-grid and rural electrification by 2020 10% in urban centres and 50% in rural areas by 2020 Electricity Micronesia Electricity Trinidad and Tobago 5% of peak demand (or 60 MW) by 2020 1 India has established state-specific solar power purchase obligations. Note: Unless otherwise noted, all targets and corresponding shares represent all renewables including hydropower. A number of state/provincial and . See Policy Tables R3, R4, R5, R6, R8, R10) R ( local jurisdictions have additional targets not listed here. Some countries shown have other types of targets Landscape chapter and Table R14 for more information about sub-national and municipal-level targets, and see Tables R22 and R24 for information on electricity access. Existing shares are indicative and may need adjusting if more accurate national statistical data are published. Source: See endnote 9 for this section. 192

193 RT TABLE R10. Renewable Power Targets for Specific Amount of Installed Capacity or Generation Note: Text in bold indicates new/revised in 2017, brackets '[]' indicate previous targets where new targets were enacted, and text in italics indicates policies adopted at the state/provincial level. Some targets shown may be non-binding. Country Technology Target Algeria Electricity 22 GW by 2030 REFERENCE TABLES 1 GW by 2030 Bio-power from waste-to-energy Geothermal power 15 MW by 2030 Solar PV 13.5 GW by 2030 CSP 2 GW by 2030 Wind power 5 GW by 2030 Electricity Antigua and Barbuda 5 MW by 2030 377 MW by 2020; 397 MW by 2025 Hydropower (small-scale) Armenia Geothermal power 50 MW by 2020; 100 MW by 2025 Solar PV 40 MW by 2020; 80 MW by 2025 50 MW by 2020; 100 MW by 2025 Wind power Bio-power from solid biomass 200 MW added 2010-2020 Austria and biogas 1 GW added 2010–2020 Hydropower Solar PV 1.2 GW added 2010–2020 2 GW added 2010–2020 Wind power 1 GW by 2020 Azerbaijan Electricity Hydropower 4 MW by 2021 Bangladesh 7 MW by 2021 Biomass power 7 MW by 2021 Biogas power Waste-to-energy 40 MW by 2021 Solar power 1,676 MW by 2021 1,370 MW by 2021 Wind power 2.6 billion kWh renewable production through 2035 Electricity generation Belarus No national target Belgium Solar PV Flanders Increase production 30% by 2020 Electricity Wallonia 8 TWh per year by 2020 Electricity 20 MW by 2025 Bhutan Bio-power from solid biomass 5 MW by 2025 Solar PV 5 MW by 2025 5 MW by 2025 Wind power Bolivia 160 MW renewable energy capacity added 2015-2025 Electricity 120 MW by 2030 Hydropower Bosnia and Herzegovina Solar PV 4 MW by 2030 Wind power 175 MW by 2030 Brazil Bio-power 19.3 GW by 2021 Hydropower (small-scale) 7.8 GW by 2021 19.5 GW by 2021 Wind power Hydropower Bulgaria Three 174 MW plants commissioned by 2017-2018 Bio-power from solid biomass Burundi 4 MW (no date) Hydropower 212 MW (no date) Solar PV 40 MW (no date) 10 MW (no date) Wind power No national target Canada Electricity 20 GW by 2025 supplied by a mix of renewable technologies, including: Ontario 9.3 GW by 2025 Hydropower 40 MW by 2025 Solar PV 5 GW by 2025 Wind power 30 MW increase by 2030 (base year 2011) Wind power Prince Edward Island 193

194 RENEWABLES 2018 GLOBAL STATUS REPORT TABLE R10. Renewable Power Targets for Specific Amount of Installed Capacity or Generation (continued) Note: Text in bold indicates new/revised in 2017, brackets '[]' indicate previous targets where new targets were enacted, and text in italics indicates policies adopted at the state/provincial level. Some targets shown may be non-binding. Country Technology Target China Electricity 680 GW non-fossil fuel generation capacity by 2020 Hydropower 340 GW by 2020 110 GW by 2020 Solar power Wind power 210 GW by 2020 Electricity Taipei 10.9 GW by 2020; 27.4 GW by 2025 150 MW by 2020; 200 MW by 2025 Geothermal power 6.5 GW by 2020; 20 GW by 2025 Solar PV Wind power (onshore) 814 MW by 2020; 1.2 GW by 2025 520 MW by 2020; 3-5.5 GW by 2025 Wind power (offshore) Cuba Electricity 2.1 GW biomass, wind, solar and hydropower capacity by 2030 Egypt 2.8 GW by 2020 Hydropower Solar PV 300 MW small-scale (<500 kW) solar PV systems installed 2015- 2017; 2 GW medium and large-size solar PV (max. 50 MW) installed 2015-2017 [220 MW by 2020; 700 MW by 2027] 1.1 GW by 2020; 2.8 GW by 2030 CSP 2 GW installed 2015-2017 Wind power 7.2 GW by 2020 Ethiopia Bio-power from bagasse 103.5 MW (no date) 450 MW by 2018; 1 GW by 2030 Geothermal power Hydropower 22 GW by 2030 7 GW by 2030 Wind power Finland Bio-power 13.2 GW by 2020 14.6 GW by 2020 Hydropower 884 MW by 2020 Wind power 380 MW by 2020 Ocean power France Hydropower 25.8-26.05 GW by 2030 Solar 10.2 GW by 2018 18.2-20.2 GW by 2023 Wind power (onshore) 15 GW by 2018; 21.8-26 GW by 2023 0.5 GW by 2018; 3 GW by 2023 Wind power (offshore) Germany Biomass 100 MW added per year 2.5 GW added per year Solar PV Wind power (onshore) 2.5 GW added per year Wind power (offshore) 6.5 GW added by 2020 Greece Solar PV 2.2 GW by 2030 Grenada Geothermal power 15 MW (no date) Solar power 10 MW (no date) Wind power 2 MW (no date) India 175 GW by 2022 Electricity Bio-power 10 GW by 2022 1 Hydropower (small-scale) 5 GW by 2022 Solar PV 20 million solar lighting systems added 2010-2022 100 GW by 2022 Solar PV and CSP 60 GW by 2022 Wind power Andhra Pradesh 5,000 MW added 2015-2020 Solar PV Jharkhand Solar PV 2,650 MW installed by 2019-2020 194

195 RT TABLE R10. Renewable Power Targets for Specific Amount of Installed Capacity or Generation (continued) Note: Text in bold indicates new/revised in 2017, brackets '[]' indicate previous targets where new targets were enacted, and text in italics indicates policies adopted at the state/provincial level. Some targets shown may be non-binding. Country Technology Target Indonesia Geothermal power 12.6 GW by 2025 REFERENCE TABLES Hydropower 2 GW by 2025, including 0.43 GW micro-hydropower 2 Pumped storage 3 GW by 2025 Solar power 5 GW by 2020 Wind power 100 MW by 2025 5 GW by 2020 Solar power and wind power Iran Iraq 240 MW by 2016 Solar PV CSP 80 MW by 2016 Wind power 80 MW by 2016 Italy 19,780 GWh per year generation from 2.8 GW capacity by 2020 Bio-power 6,759 GWh per year generation from 920 MW capacity by 2020 Geothermal power 42,000 GWh per year generation from 17.8 GW capacity by 2020 Hydropower 23 GW by 2017 Solar PV 18,000 GWh per year generation and 12 GW capacity by 2020 Wind power (onshore) Wind power (offshore) 2,000 GWh per year generation and 680 MW capacity by 2020 Japan Ocean power (wave and tidal) 1.5 GW by 2030 Jordan Electricity 1.8 GW by 2020 1 GW by 2020 Solar power Wind power 1.2 GW by 2020 Bio-power Kazakhstan 15.05 MW at 3 bioelectric stations by 2020 Hydropower 539 MW at 41 hydroelectric power stations by 2020 Solar power 713.5 MW at 28 solar electric plants by 2020 1,787 MW at 34 wind power stations by 2020 Wind power 5 GW by 2030 Geothermal power Kenya Electricity 13,016 GWh per year (2.9% of total generation) by 2015; Korea, Republic of 21,977 GWh per year (4.7%) by 2020; 39,517 GWh per year (7.7%) by 2030 supplied by a mix of renewable technologies, including: Bio-power from solid biomass 2,628 GWh per year by 2030 161 GWh per year by 2030 Bio-power from biogas Bio-power from landfill gas 1,340 GWh per year by 2030 Geothermal power 2,046 GWh per year by 2030 3,860 GWh per year by 2030 Hydropower (large-scale) Hydropower (small-scale) 1,926 GWh per year by 2030 6,159 GWh per year by 2030 Ocean power 2,046 GWh per year by 2030 Solar PV CSP 1,971 GWh per year by 2030 Wind power 900 MW by 2016; 1.5 GW by 2019; 16,619 GWh per year by 2030 2.5 GW by 2019 Wind power (offshore) Kuwait Solar PV 3.5 GW by 2030 CSP 1.1 GW by 2030 Wind power 3.1 GW by 2030 400-500 MW by 2020 Wind power Lebanon Electricity 260 MW by 2030 Lesotho 344 MW by 2020; 844 MW by 2025 Solar PV Libya 125 MW by 2020; 375 MW by 2025 CSP 600 MW by 2020; 1 GW by 2025 Wind power 195

196 RENEWABLES 2018 GLOBAL STATUS REPORT TABLE R10. Renewable Power Targets for Specific Amount of Installed Capacity or Generation (continued) Note: Text in bold indicates new/revised in 2017, brackets '[]' indicate previous targets where new targets were enacted, and text in italics indicates policies adopted at the state/provincial level. Some targets shown may be non-binding. Country Technology Target Macedonia, FYR Bio-power from solid biomass 50 GWh by 2020 Bio-power from biogas 20 GWh by 2020 216 GWh by 2020 Hydropower (small-scale) Solar PV 14 GWh by 2020 300 GWh by 2020 Wind power 2.1 GW (excluding large-scale hydropower), Malaysia Electricity 11.2 TWh per year, or 10% of national supply (no date given) 11% by 2020; 14% by 2030; 36% by 2050 1 GW capacity added by 2020 Solar power Morocco Hydropower 2 GW by 2020 2 GW by 2020 Solar PV and CSP 2 GW by 2020 Wind power Mozambique Bio-digesters for biogas 1,000 systems installed (no date) Hydropower, solar PV, wind power 2 GW each (no date) 82,000 solar home systems installed (no date) Solar PV 3,000 stations installed (no date) Wind turbines for water pumping Renewable energy-based 5,000 installed (no date) productive systems Nigeria Bio-power 400 MW by 2025 3 Hydropower (small-scale) 2 GW by 2025 500 MW by 2025 Solar PV (large-scale, >1 MW) CSP 5 MW by 2025 40 MW by 2025 Wind power 26.4 TWh common electricity certificate market with Sweden by 2020 Electricity Norway 21 MW by 2020 Bio-power Palestine, State of Solar PV 45 MW by 2020 CSP 20 MW by 2020 Wind power 44 MW by 2020 Triple the 2010 capacity by 2030 Electricity Philippines Bio-power 277 MW added 2010-2030 1.5 GW added 2010-2030 Geothermal power Hydropower 5,398 MW added 2010-2030 Ocean power 75 MW added 2010-2030 284 MW added 2010-2030 Solar PV Wind power 2.3 GW added 2010-2030 Wind power (offshore) 1 GW by 2020 Poland Portugal 15.8 GW by 2020 Electricity Bio-power from solid biomass 769 MW by 2020 Bio-power from biogas 59 MW by 2020 29 MW by 2020 Geothermal power 400 MW by 2020 Hydropower (small-scale) Ocean power (wave) 6 MW by 2020 670 MW by 2020 Solar PV 50 MW by 2020 Concentrated solar photovoltaics (CPV) 5.3 GW by 2020 Wind power (onshore) 27 MW by 2020 Wind power (offshore) 196

197 RT TABLE R10. Renewable Power Targets for Specific Amount of Installed Capacity or Generation (continued) Note: Text in bold indicates new/revised in 2017, brackets '[]' indicate previous targets where new targets were enacted, and text in italics indicates policies adopted at the state/provincial level. Some targets shown may be non-binding. Country Technology Target 4 Electricity 5.5 GW by 2024, of which: Russian Federation REFERENCE TABLES Hydropower (small-scale) 425.4 MW by 2024 Solar PV 1.8 GW by 2024 3.4 GW by 2024 Wind power Altai Republic Solar PV 150 MW by 2021 Electricity (off-grid) Rwanda 5 MW by 2017 300 MW by 2017 Biogas power Geothermal power 310 MW by 2017 Hydropower 340 MW by 2017 Saudi Arabia 9.5 GW by 2023; 54 GW by 2040 Electricity 13 GW combined by 2040 Geothermal, bio-power 5 , wind power (waste-to-energy) 41 GW by 2040 (25 GW CSP, 16 GW PV) Solar PV and CSP 150 MW by 2017 Solar PV Serbia Wind power 1.4 GW (no date) Sierra Leone Electricity 1 GW (no date) Singapore Solar PV 350 MW by 2020 Solomon Islands Geothermal power 20-40 MW (no date) 3.77 MW (no date) Hydropower 3.2 MW (no date) Solar power 17.8 GW by 2030; 42% of new generation capacity installed 2010-2030 South Africa Electricity 1.4 GW by 2020 Bio-power from solid biomass Spain 5 200 MW by 2020 Bio-power from organic MSW 400 MW by 2020 Bio-power from biogas Geothermal power 50 MW by 2020 Hydropower 13.9 GW by 2020 2 8.8 GW by 2020 Pumped storage Ocean power 100 MW by 2020 7.3 GW by 2020 Solar PV 4.8 GW by 2020 CSP Wind power (onshore) 35 GW by 2020 Wind power (offshore) 750 MW by 2020 Sudan Bio-power from solid biomass 54 MW by 2031 Bio-power from biogas 68 MW by 2031 Hydropower 63 MW by 2031 Solar PV 667 MW by 2031 Sweden 25 TWh more renewable electricity annually by 2020 (base year 2002) Electricity 26.4 TWh common electricity certificate market with Norway by 2020 Electricity 12 TWh per year by 2035; 24.2 TWh per year by 2050 Switzerland Electricity 43 TWh per year by 2035 Hydropower Bio-power 140 MW by 2020; 260 MW by 2025; 400 MW by 2030 Syria 380 MW by 2020; 1.1 GW by 2025; 1.8 GW by 2030 Solar PV 50 MW by 2025 CSP 1 GW by 2020; 1.5 GW by 2025; 2 GW by 2030 Wind power 100 MW by 2020 Hydropower (small-scale) Tajikistan 197

198 RENEWABLES 2018 GLOBAL STATUS REPORT TABLE R10. Renewable Power Targets for Specific Amount of Installed Capacity or Generation (continued) Note: Text in bold indicates new/revised in 2017, brackets '[]' indicate previous targets where new targets were enacted, and text in italics indicates policies adopted at the state/provincial level. Some targets shown may be non-binding. Country Technology Target Thailand Bio-power from solid biomass 4.8 GW by 2021 Bio-power from biogas 600 MW by 2021 5 400 MW by 2021 Bio-power from organic MSW Geothermal power 1 MW by 2021 Hydropower 6.1 GW by 2021 2 MW by 2021 Ocean power (wave and tidal) Solar PV 1.7 GW by 2016; 3 GW by 2021; 6 GW by 2036 1.8 GW by 2021 Wind power Trinidad and Tobago Wind power 100 MW (no date given) 1 GW (16% of capacity) by 2016; 4.6 GW (40% of capacity) by 2030 Electricity Tunisia 40 MW by 2016; 300 MW by 2030 Bio-power from solid biomass 10 GW by 2030 Solar power 16 GW by 2030 Wind power 1 GW by 2023 Turkey Bio-power from solid biomass 1 GW by 2023 Geothermal power 34 GW by 2023 Hydropower 5 GW by 2023 Solar PV Wind power 20 GW by 2023 5 30 MW by 2017 Bio-power from organic MSW Uganda Geothermal power 45 MW by 2017 Hydropower (large-scale) 1.2 GW by 2017 85 MW by 2017 Hydropower (mini- and micro-scale) Solar PV (solar home systems) 700 kW by 2017 39 GW by 2030 Wind power (offshore) United Kingdom No national target United States 6 Electricity Iowa 105 MW generating capacity for IOUs Massachusetts Wind power (offshore) 1.6 GW by 2027 Electricity 5,880 MW Te x a s 60.7 MW installed by 2018; 157.7 by 2019; Solar PV Uzbekistan 382.5 by 2020; 601.9 by 2021; 1.24 GW by 2025 Wind power 102 MW installed by 2021; 302 MW installed by 2025 Venezuela Electricity 613 MW new capacity installed 2013-2019, including: Wind power 500 MW new capacity installed 2013-2019 21.6 GW by 2020; 24.6 GW by 2025; 27.8 GW by 2030 Vietnam Hydropower 850 MW by 2020; 4 GW by 2025; 12 GW by 2030 Solar power 800 MW by 2020; 2 GW by 2025; 6 GW by 2030 Wind power 6 MW by 2025 Bio-power Yemen Geothermal power 160 MW by 2025 5.5 MW off-grid by 2025 Solar PV 100 MW by 2025 CSP 400 MW by 2025 Wind power 1 India does not classify hydropower installations larger than 25 MW as renewable energy sources. Therefore, national targets and data for India do not include hydropower facilities >25 MW. 2 Pumped storage plants are not energy sources but a means of energy storage. As such, they involve conversion losses and are powered by renewable or non- renewable electricity. Pumped storage is included here because it can play an important role as balancing power, in particular for variable renewable resources. 3 Nigeria’s target excludes hydropower plants >30 MW. 4 The Russian Federation’s targets exclude hydropower plants >25 MW. 5 It is not always possible to determine whether municipal solid waste (MSW) data include non-organic waste (plastics, metal, etc.) or only the organic biomass share. Uganda utilises predominantly organic waste. 6 Investor-owned utilities (IOUs) are those operating under private control rather than government or co-operative operation. Note: All capacity targets are for cumulative capacity unless otherwise noted. Targets are rounded to the nearest tenth decimal. Renewable energy targets are not standardised across countries; therefore, the table presents a variety of targets for the purpose of general comparison. Countries on this list may also have primary/final energy, electricity, heating/cooling or transport targets (see Tables R3, R4, R5, R6, R8, R9, R14). Source: See endnote 10 for this section. 198

199 RT TABLE R11. Renewable Heating and Cooling Policies, 2017 Investment Rebates Loans/Grants Tax credits Feed-in tariff Country subsidy 1 R/C Armenia REFERENCE TABLES C R Austria Bulgaria R Chile R P Croatia R Czech Republic I Denmark R/I/C/P R France 1 Georgia R/C Germany R/C/P Hungary R R/I/C/P India I R/C/P Italy Korea, Republic of R Lebanon R R Macedonia, FYR Malta R Mauritius R C/I Netherlands R/I/C/P R Norway C/P 2 Poland P R R/I/C/P Romania R Slovak Republic Slovenia C/P R C R/P Spain R/C R/C Tunisia R/C/P United Kingdom Ukraine R United States (California) R/I/C/P Uruguay R R Residential R I Industrial C Commercial Public facilities P 1 Incentives provided by the European Bank for Reconstruction and Development under the Caucusus Energy Efficiency Program II. 2 Subsidies applicable to municipalites with over 10,000 inhabitants. Source: See endnote 11 for this section. 199

200 RENEWABLES 2018 GLOBAL STATUS REPORT Feed-in Electricity Policies, Cumulative Number of Countries/States/Provinces and 2017 Revisions TABLE R12. Text in Note: bold indicates discontinuation. indicates new/revised in 2017, and text with a strikethrough 1 Cumulative # Year Countries/States/Provinces added that year 2 1 United States 1978 2 Portugal 1988 3 Germany 1990 1991 4 Switzerland 5 Italy 1992 7 Denmark; India 1993 ; Greece 10 Luxembourg; Spain 1994 1997 Sri Lanka 11 1998 12 Sweden 14 Norway ; Slovenia 1999 14 [None identified] 2000 2001 17 Armenia; France; Latvia ; Czech Republic; Indonesia; Lithuania 23 Algeria; Austria; Brazil 2002 ; Maharashtra (India) 2003 Cyprus; Estonia; Hungary; Slovak Republic; Republic of Korea 29 2004 34 Israel; Nicaragua; Prince Edward Island (Canada); Andhra Pradesh and Madhya Pradesh (India) 2005 41 China ; Ecuador; Ireland; Turkey; Karnataka , Uttar Pradesh and Uttarakhand (India) Ontario (Canada) Argentina; Pakistan; Thailand; 46 ; Kerala (India) 2006 2007 55 Albania; Bulgaria; Croatia; Dominican Republic; Finland; Macedonia FYR; Moldova; Mongolia; South Australia (Australia) 2008 70 Iran; Kenya; Liechtenstein; Philippines; San Marino; Tanzania; Queensland (Australia); Chhattisgarh, Gujarat, Haryana, Punjab, Rajasthan, Tamil Nadu and West Bengal (India); California (United States) ; Ukraine; Australian Capital Territory, New South Wales and Victoria 2009 81 Japan; Serbia; South Africa (Australia); Taipei (China); Hawaii, Oregon and Vermont (United States) 2010 87 Belarus; Bosnia and Herzegovina; Malaysia; Malta; Mauritius ; United Kingdom 2011 94 Ghana; Montenegro; Netherlands; Syria; Vietnam; Nova Scotia (Canada); Rhode Island (United States) 2012 99 Jordan; Nigeria; State of Palestine; Rwanda; Uganda 2013 101 Kazakhstan; Pakistan 2014 104 Egypt; Vanuatu; Virgin Islands (United States) 2015 104 [None identified] 104 Czech Republic (reinstated) 2016 2017 Zambia, Vietnam, Massachusetts (United States) 107 Total 113 3 Existing 2017 FIT Policy Adjustments Canada – Ontario Awarded FIT support to solar PV (totalling 147.9 MW), biogas (1.6 MW) and landfill gas projects (0.5 MW) China Regional reductions of 12–15% for solar PV FIT; Class 1 resources reduced to CNY 0.55 per kWh; Class 2 reduced to CNY 0.65 per kWh; Class 3 reduced to CNY 0.75 per kWh; solar distributed generation FIT reduced CNY 0.05 per kWh to CNY 0.37 per kWh Solar PV rates reduced 12.8-13.5%; wind FIT reduced 0.7-4.6%; geothermal FIT increased 5% China – Taipei Germany FIT eligibility expanded to include landlord and tenant electricity supply; onshore wind FIT reduced 2.4% to EUR 74.93 per MWh India – Karnataka Reduced from INR 4.5 per kWh to INR 3.74 per kWh Luxembourg FIT eligibility expanded to offer 15-year solar PV FIT to projects greater than 30 kW United States – Massachusetts Launched SMART programme Launched solar PV FIT providing guaranteed 20-year tariffs of USD 0.091 per kWh Vietnam Launched REFIT programme Zambia 1 “Cumulative number” refers to number of jurisdictions that had enacted feed-in policies as of the given year. 2 The US PURPA policy (1978) is an early version of the FIT, which has since evolved. There is no national level FIT within the United States. 3 “Total existing” excludes nine countries that are known to have subsequently discontinued policies either for all projects or new projects (Brazil, Republic of Korea, Mauritius, Norway, South Africa, Spain, Sweden, Uruguay and the United States) and adds nine countries (Andorra, Honduras, Maldives, Panama, Peru, Poland, Russian Federation, Senegal and Tajikistan) and five Indian states (Bihar, Himachal Pradesh, Jammu and Kashmir, Jharkhand and Orissa) that are believed to have FITs but with an unknown year of enactment. Source: See endnote 12 for this section. 200

201 RT TABLE R13. Renewable Power Tenders at the National/State/Provincial Levels, 2017 Country Technology Description 940.8 MW awarded Wind power Argentina Bio-power 143.2 MW awarded 1 Bio-power (MSW) 13.1 MW awarded REFERENCE TABLES 76.5 MW awarded Bio-power (biogas) 20.8 MW awarded Small-scale hydropower 781.8 MW awarded Solar power Armenia Geothermal power 30 MW offered 55 MW offered Solar PV 50 MW offered Solar PV Bolivia 100 MW offered Botswana Solar PV Renewable energy 12 TWh offered Chile 120 MW awarded El Salvador Solar PV 2 100 MW awarded; 250 MW launched Solar PV Ethiopia France Solar power Annual target increased from 1.45 GW to 2.45 GW; 500 MW awarded Wind power (offshore) 3 GW through June 2020 Wind and solar power 200 MW awarded Self-consumption 51 MW awarded 2,800 MW yearly (2017-2019); 2,900 MW yearly after 2019 Germany Wind power 241 MW offered for development across states of Gujarat, Solar PV India Uttar Pradesh and Rajasthan 2 GW awarded Wind power (onshore) Israel Expected 100-250 MW awarded in 2017; 1 GW through 2018 Solar PV 140 MW awarded Solar PV Japan Solar PV Madagascar 25 MW offered Malaysia Solar PV 563 MW awarded 1,323 MW awarded Mexico Solar power 689 MW awarded Wind power Wind power (offshore) 700 MW offered Netherlands 500 MW offered Oman Solar PV 4.725 TWh awarded Renewable energy Poland 49.8 MW awarded Russian Federation Hydropower (small scale) Solar PV 520 MW awarded 1.7 GW awarded Wind power 400 MW request for qualification Wind power Saudi Arabia 300 MW offered Solar PV 100 MW offered Solar PV Senegal 3.9 GW awarded Solar PV Spain 4.1 GW awarded Wind power (onshore) Sri Lanka Solar PV 10 MW offered Wind power (onshore) Turkey 1 GW awarded 100 MW offered Zambia Solar PV State/Provincial Renewable Energy Auctions Held in 2017 Country Description Technology State/Province Victoria Renewable energy 650 MW offered Australia Queensland Renewable energy 400 MW offered 3 100 MW offered Energy storage Alberta Renewable energy 600 MW awarded Canada Tamil Nadu 200 MW offered Wind power India 400 MW offered Massachusetts United States Wind power (offshore) 1 It is not always possible to determine whether municipal solid waste (MSW) data include non-organic waste (plastics, metal, etc.) or only the organic biomass share. 2 100 MW of capacity was awarded under a tender launched in May 2016. 3 Energy storage is not an energy source but is included here because it can play an important role as balancing power, in particular for variable renewable resources. Note: Table R13 provides an overview of identified renewable energy tenders in 2017 and likely does not constitute a comprehensive picture of all capacity offered through tenders during the year. Source: See endnote 13 for this section. 201

202 RENEWABLES 2018 GLOBAL STATUS REPORT Renewable Energy Targets, Selected City and Local Examples TABLE R14. Text in bold indicates new/revised in 2017, and brackets '[]' indicate previous targets where new targets were enacted. Note: Targets for 100% of Total Energy or Electricity from Renewables Target date for 100% electricity Target date for 100% total energy 2030 Abita Springs, Louisiana, United States 2020 Australian Capital Territory, Australia Breckenridge, Colorado, United States 2035 Burlington, Vermont, United States Achieved in 2014 2025 Byron Shire County, Australia Coffs Harbour, Australia 2030 2050 Copenhagen, Denmark 2050 Fayetteville, Arkansas, United States Frankfurt, Germany 2050 2030 Frederikshavn, Denmark Fukushima Prefecture, Japan 2040 Greensburg, Kansas, United States Achieved in 2015 Groningen, The Netherlands 2035 2050 Hamburg, Germany Inje County, Republic of Korea 2045 Jeju Self Governing Province, Republic of Korea 2030 Lancaster, California, United States 2020 Madison, Wisconsin, United States [no date given] Malmö, Sweden 2030 2030 Minneapolis, Minnesota, United States 2025 Munich, Germany 2025 Nederland, Colorado, United States 2050 Orlando, Florida, United States 2030 Osnabrück, Germany Oxford County, Australia 2050 Palo Alto, California, United States [no date given] 2032 Park City, Utah, United States Pittsburgh, Pennsylania, United States 2035 Rochester, Minnesota, United States 2031 2032 Salt Lake City, Utah, United States San Diego, California, United States 2035 2030 San Francisco, California, United States 2022 San Jose, California, United States Seattle, Washington, United States [no date given] 2020 Skellefteå, Sweden 2029 Sønderborg, Denmark St. Louis, Missouri, United States 2035 St. Petersburg, Florida, United States [no date given] The Hague, The Netherlands 2040 [no date given] Uralla, Australia City of Vancouver, Canada 2050 2030 Växjö, Sweden 202

203 RT TABLE R14. Renewable Energy Targets, Selected City and Local Examples (continued) Text in bold indicates new/revised in 2017, and brackets '[]' indicate previous targets where new targets were enacted. Note: Targets for Renewable Share of Total Energy, All Consumers k A Coruna, Spain 20% by 2020 REFERENCE TABLES Amurrio, Spain k 20% by 2020 k Ancona, Italy 20% by 2020 k Antwerp, Belgium 13% by 2020 k Areatza, Spain 20% by 2020 k Austin, Texas, United States 65% by 2027 Balmaseda, Spain k 29% by 2020 k Baltimore, Maryland, United States 15% of city-wide energy demand with renewable sources by 2020 through the development of solar, wind, and combined heat and power generation sites k Barcelona, Spain 10% by 2024 Belo Horizonte, Brazil k 79.3% by 2030 Berlin, Germany k 17.8% by 2020 k Bucaramanga, Colombia 30% by 2025 k Buffalo City, South Africa 10% by 2018 Calgary, Alberta, Canada k 30% by 2030 k Cape Town, South Africa 10% by 2020 through large- and small-scale wind and solar generation projects, solar water heaters, and biogas power generation at landfill and wastewater facilities Howrah, India k 10% by 2018 k Nagano Prefecture, Japan 70% by 2050 k Oaxaca, Mexico 5% by 2017 k Paris, France 25% by 2020 Skellefteå, Sweden k Net exporter of biomass, hydro or wind energy by 2020 k City of Sydney, Australia 50% of electricity, heating and cooling by 2030 (does not include transport) Targets for Renewable Share of Electricity, All Consumers Adelaide, Australia k 50% by 2025 k Amsterdam, The Netherlands 25% by 2025; 50% by 2040 k Arlington, Virginia, United States 15% by 2050 Atlanta, Georgia, United States k 5% by 2020 Austin, Texas, United States k 55% by 2025 Boulder, Colorado, United States k 20% by 2020 k Canberra, Australian Capital Territory, 90% by 2020 Australia k Cape Town, South Africa 20% by 2020 k Nagano Prefecture, Japan 10% by 2020; 20% by 2030; 30% by 2050 Nelson Mandela Bay Metropolitan k 10% by 2020 Municipality, South Africa Taipei City, Chinese Taipei k 12% by 2020 k Tokyo, Japan 30% by 2030 k Wellington, New Zealand 78-90% by 2020 203

204 RENEWABLES 2018 GLOBAL STATUS REPORT Renewable Energy Targets, Selected City and Local Examples (continued) TABLE R14. Text in bold indicates new/revised in 2017, and brackets '[]' indicate previous targets where new targets were enacted. Note: Targets for Renewable Electric Capacity or Generation k Adelaide, Australia 2 MW solar PV on residential and commercial buildings by 2020 k Amsterdam, The Netherlands 75,000 MW renewable energy capacity by 2020 k Atlanta, Georgia, United States Triple renewable energy capacity by 2020 by leasing city land for large-scale solar energy development projects k Bologna, Italy 20 MW renewable electricity capacity by 2020; 10 MW solar PV electricity capacity by 2020 k Boston, Massachusetts, United States 25 MW solar electricity capacity by 2020 Esklistuna, Sweden k 48 GWh wind power and 9.5 GWh solar PV by 2020 k Gothenburg, Sweden 500 GWh renewable electricity by 2030 k Los Angeles, California, United States 1.3 GW solar PV by 2020 New York, New York, United States k 1 GW solar power and 100 MWh energy storage by 2020 San Francisco, California, United States k 100% of peak demand (950 MW) by 2020 Targets for Renewable Share of City/Local Government Operations k Amurrio, Spain 20% by 2020 k Ancona, Italy 20% by 2020 k Antwerp, Belgium 13% by 2020 k Areatza, Spain 20% by 2020 Balmaseda, Spain k 29% by 2020 Beaverton, Oregon, United States k 75% by 2020 Belo Horizonte, Brazil k 30% of electricity from solar PV by 2030 k Besancon, France 23% by 2020 k Boulder, Colorado, United States 60% by 2050 Breckenridge, Colorado, United States k 100% by 2025 k Bucaramanga, Colombia 30% by 2025 Calgary, Alberta, Canada k 100% of government operations by 2025 k Cockburn, Australia 20% of final energy in city buildings by 2020 k Fayetteville, Arkansas, United States All government operations with 100% clean energy by 2030 Geneva, Switzerland k 100% renewable energy for public buildings by 2050 k Ghent, Belgium 50% of final energy by 2020 k Hepburn Shire, Australia 100% of final energy in public buildings; 8% of electricity for public lighting k Kristianstad, Sweden 100% of final energy by 2020 k Malmö, Sweden 100% of final energy by 2020 k Minneapolis, Minnesota, 100% renewable energy for municipal facilities and operations by 2022 United States k Orlando, Florida, United States 100% of municipal operations powered by renewable energy by 2030 Portland, Oregon, United States k 100% of final energy by 2030 k Salt Lake City, Utah, United States 50% renewable electricity for municipal operations by 2020 k City of Sydney, Australia 100% of electricity in buildings; 20% for street lamps 204

205 RT TABLE R14. Renewable Energy Targets, Selected City and Local Examples (continued) indicates new/revised in 2017, and brackets '[]' indicate previous targets where new targets were enacted. bold Text in Note: Heat-Related Mandates and Targets k Amsterdam, The Netherlands District heating for at least 200,000 houses by 2040 (using biogas, woody biomass REFERENCE TABLES and waste heat) k Chandigarh, India Mandatory use of solar water heating in industry, hotels, hospitals, prisons, canteens, housing complexes, and government and residential buildings (as of 2013) Helsingborg, Sweden k 100% renewable energy district heating (community-scale) by 2035 k Loures, Portugal Solar thermal systems mandated as of 2013 in all sports facilities and schools that have good sun exposure k Munich, Germany 100% district heating from renewable sources by 2040; 80% reduction of heat demand by 2058 (base 2009) through passive solar design (includes heat, process heat and water heating) k Nantes, France Extend district heating system to source heat from biomass boilers for half of city inhabitants by 2017 k New York, New York, United States Biofuel blend in heating oil equivalent to 2% by 2016, 5% by 2017, 10% by 2025 and 20% by 2034 Oslo, Norway k Phase out fossil fuels and transition to electric heating in homes and offices by 2020 k Osnabrück, Germany 100% renewable heat by 2050 Täby, Sweden k 100% renewable heat in local government operations by 2020 k Vienna, Austria 50% of total heat demand with solar thermal energy by 2050 Transport-Related Mandates and Targets k Athens, Greece Ban petrol and diesel powered cars and vans by 2025 k Madrid, Spain Ban petrol and diesel powered cars and vans by 2025 Mexico City, Mexico k Ban petrol and diesel powered cars and vans by 2025 k Paris, France Ban petrol and diesel powered cars and vans by 2030 k San Francisco, California, 50% renewable power by 2025 and 100% renewable power by 2045 United States for Bay Area Rapid Transit rail system Shenzhen, China k 100% electric public bus fleet (achieved in 2017) Note: Table R14 provides a sample of local renewable energy commitments worldwide. It does not aim to present a comprehensive picture of all municipal renewable energy goals. For example, in Germany more than 150 municipalities have a target to achieve 100% renewables in the energy system. Source: See endnote 14 for this section. 205

206 RENEWABLES 2018 GLOBAL STATUS REPORT Biofuels Global Production, Top 15 Countries and EU-28, 2017 TABLE R15. Biodiesel Biodiesel Change relative Ethanol Country (HVO) (FAME) to 2016 Billion litres United States 60.0 6.0 1.7 1.7 28.5 4.3 0.3 Brazil 0.9 Germany 0.0 3.5 1.1 0.5 Argentina 3.3 3.3 1.0 0.2 China France 2.3 -0.3 1.0 Thailand 1.5 1.4 0.5 -0.3 Indonesia 0.1 2.5 Canada 1.7 0.1 0.5 0.3 1.3 0.1 Netherlands 0.4 0.5 Spain -0.2 1.3 Poland 0.2 1.0 0.0 Singapore 0.1 0.0 1.3 0.1 India 0.2 -0.2 0.8 Colombia 0.3 0.6 0.0 EU-28 4.1 11.8 3.5 -0.3 World Total 105.5 30.7 6.5 3.5 Source: See endnote 15 for this section. 206

207 RT TABLE R16. Geothermal Power Global Capacity and Additions, Top 10 Countries, 2017 -2017 Country Total End Added 2017 GW MW Top Countries by Additions REFERENCE TABLES 1.8 Indonesia 275 243 1.1 Turkey 0.05 48 Chile 0.7 45 Iceland 0.04 35 Honduras Mexico 25 0.9 United States 24 2.5 Japan 5 0.5 0.03 Portugal 4 ~0 3 Hungary Top Countries by Total Capacity 2.5 United States 24 1.9 Philippines – 1.8 275 Indonesia 1.1 243 Turkey – 1.0 New Zealand Mexico 0.9 25 Italy 0.8 – Iceland 45 0.7 0.7 Kenya – 0.5 Japan 5 World Total 12.8 707 Note: Capacity additions are rounded to the nearest 1 MW, and totals are rounded to the nearest 0.1 GW, with the exceptions of Chile, Honduras, Hungary and Portugal, which are rounded to the nearest 0.01 GW. Rounding is to account for uncertainties and inconsistencies in available data. Capacity amounts of < 5 MW are designated by “~0”. For more information and statistics, see Geothermal Power and Heat section in Market and Industry chapter and related endnotes. Source: See endnote 16 for this section. 207

208 RENEWABLES 2018 GLOBAL STATUS REPORT TABL E R 17. Hydropower Global Capacity and Additions, Top 10 Countries, 2017 Country Added 2017 Total E nd -2017 GW Top Countries by Additions China 7. 3 313 100 Brazil 3.4 45 1.9 India Angola 1.4 3 0.6 28 Turkey Iran 0.5 11 Vietnam 0.4 17 48 Russian Federation 0.4 0.3 Sudan 3 Côte d’Ivoire 1 0.3 Top Countries by Total Capacity China 7. 3 313 Brazil 3.4 100 Canada 0.1 81 United States 0.1 80 Russian Federation 0.4 48 India 45 1.9 Norway 0.0 30 Turkey 0.6 28 Japan – 23 France 0.1 19 1,114 World Total 19 Note: Capacity additions are rounded to the nearest 0.1 GW, and totals are rounded to the nearest 1 GW. Rounding is to account for uncertainties and inconsistencies in available data. The GSR strives to exclude pure pumped storage capacity from hydropower capacity data; see Methodological Notes for details. For more information and statistics, see Hydropower section in Market and Industry chapter and related endnotes. Source: See endnote 17 for this section. 208

209 RT TABLE R18. Solar PV Global Capacity and Additions, Top 10 Countries, 2007-2017 Total End -2017 Total Added 2017 End -2016 GW Top Countries by Additions REFERENCE TABLES 131.1 China 78.1 53.1 40.4 10.6 51.0 United States 18.3 9.1 9.2 India 1 Japan 7 49 42.0 3.4 0.8 Turkey 2.6 1.7 42.4 Germany 40.7 1.3 Australia 6.0 7. 2 1.2 Republic of Korea 4.4 5.6 United Kingdom 11.8 0.9 12.7 0.9 0.2 1.1 Brazil Top Countries by Total Capacity 53.1 78.1 China 131.1 40.4 10.6 51.0 United States 1 Japan 49 7 42.0 Germany 42.4 40.7 1.7 Italy 19.3 0.4 19.7 9.1 9.2 18.3 India 0.9 12.7 United Kingdom 11.8 8.0 0.9 7. 2 France 1.3 7. 2 6.0 Australia 5.5 0.1 5.6 Spain 402 World Total 303 98 1 For Japan, estimates for 2017 additions and year-end capacity are available only to the nearest GW. Note: Country data are rounded to the nearest 0.1 GW; world totals are rounded to the nearest 1 GW. Rounding is to account for uncertainties and inconsistencies in available data; where totals do not add up, the difference is due to rounding. Data are provided in direct current (DC); data for Canada, Chile, Japan and Spain were converted from official data reported in alternating current (AC) into DC by the sources listed for this table. Data are from a variety of sources, some of which differ significantly because of variations in accounting or methodology. For more information, see Solar PV section in Market and Industry chapter and related endnotes. Source: See endnote 18 for this section. 209

210 RENEWABLES 2018 GLOBAL STATUS REPORT Concentrating Solar Thermal Power (CSP) Global Capacity and Additions, 2017 TABLE R19. Total End-2017 Added 2017 Total End-2016 Country MW 2,304 Spain 0 2,304 0 United States 1,738 1,738 200 300 100 South Africa 0 225 India 225 Morocco 166 0 166 United Arab Emirates 100 0 100 20 0 20 Algeria 20 Egypt 20 0 Iran 17 0 17 20 20 0 China World Total 4,910 100 4,810 Note: Table includes all countries with operating commercial CSP capacity at end-2017. Pilot and demonstration facilities and facilities with capacities of 5 MW or less are excluded from the table. Additional countries that had small (5 MW or less), pilot or demonstration plants in operation by year’s end include Australia (4.1 MW), Canada (1.1 MW), France (0.25 MW), Germany (1.5 MW), Italy (6 MW), Oman (7 MW), Thailand (5 MW) and Turkey (5 MW). National data are rounded to the nearest MW, and world totals are rounded to the nearest 5 MW. Rounding is to account for uncertainties and inconsistencies in available data; where totals do not add up, the difference is due to rounding. Capacity data reflect net capacity; where it is not possible to verify if reported capacity reflects net or gross capacity, capacity is assumed to be net. For more information, see CSP section in Market and Industry chapter and related endnotes. Source: See endnote 19 for this section. 210

211 RT TABLE R20. Solar Water Heating Collectors and Total Capacity End-2016 and Newly Installed Capacity 2017, Top 20 Countries Total E nd -2016 Gross Additions 2017 GW MW th th Total Glazed Glazed Unglazed Unglazed Country Total REFERENCE TABLES 0 324.5 26,082 0 324.5 China 26,082 14.9 1,348 0 1,348 Turkey 14.9 0 India 6.7 0 6.7 1,063 0 1,063 884 9.6 Brazil 6.2 3.3 442 443 2.1 658 536 122 17.6 15.5 United States 437 13.2 0.4 Germany 437 0 13.6 266 Australia 2.5 3.7 6.2 104 370 1 299 3.2 0 3.2 Israel 298 274 1.6 Mexico 80 193 2.4 0.7 Greece 3.1 0 3.1 221 0 221 3 141 138 2.7 0.1 2.6 Spain 0 136 Italy 3.1 0 3.1 136 42 50 1.3 0.8 0.6 South Africa 92 78 0 78 1.5 0 1.5 Poland 68 1.2 Taipei, China 0 68 1.2 0 3.4 0.3 Austria 71 0 71 3.6 Switzerland 1.0 0.1 1.1 42 4 45 Tunisia 0 0.6 0 0.6 44 44 43 43 2.5 0 2.5 Japan 0 0 34 France 1.5 0.1 1.6 34 1,375 25.1 395.9 32,388 Total 20 Top Countries 421.0 31,014 34,927 33,398 World Total 428.2 27. 8 1,529 455.9 Note: Countries are ordered according to newly installed glazed collector capacity in 2017. Data are for glazed and unglazed water collectors excluding air 2 2 additional aperture area in to the year-end world total for 2016, and excluding concentrating collectors with 183,052 m collectors, which added 1,742,942 m th ; additions for individual countries, Total 2016. End-2016 data for individual countries, Total 20 Top Countries and World Total are rounded to nearest 0.1 GW th . Where totals do not add up, the difference is due to rounding. By accepted convention, 20 Top Countries and World Total are rounded to nearest 1 MW th . The year 2016 is the most recent one for which firm global data on total capacity in operation are available. It is estimated, 1 million square metres = 0.7 GW th of solar thermal capacity (water and non-concentrating collectors only) was in operation worldwide by end-2017. For 2016 details and however, that 472 GW source information, see Solar Thermal Heating and Cooling section in Market and Industry chapter and related endnotes. Source: See endnote 20 for this section. 211

212 RENEWABLES 2018 GLOBAL STATUS REPORT TABLE R21. Wind Power Global Capacity and Additions, Top 10 Countries, 2017 Total E nd Country 2017 Added -2016 Total End-2017 GW Top Countries by Additions 1 China 164/188.4 15/19.7 149/168.7 United States 89.0 7.0 82.0 2 Germany 50.0 6.1 56.1 18.9 United Kingdom 14.6 4.3 4.1 32.8 India 28.7 12.8 2.0 10.7 Brazil 13.8 1.7 12.1 France 6.1 Turkey 6.9 0.8 0.6 South Africa 1.5 2.1 0.5 1.5 Finland 2.1 Top Countries by Total Capacity 1 China 15/19.7 149/168.7 164/188.4 United States 82.0 89.0 7.0 2 Germany 56.1 50.0 6.1 32.8 India 28.7 4.1 Spain 23.1 23.2 0.1 18.9 United Kingdom 14.6 4.3 13.8 France 12.1 1.7 2.0 10.7 Brazil 12.8 11.9 12.2 0.3 Canada 0.3 9.2 Italy 9.5 487 World Total 539 52 1 For China, data to the left of the “/” are the amounts officially classified as connected to the grid and operational (receiving FIT premium) by year’s end; data to the right are total installed capacity, most, if not all, of which was connected to substations by year’s end. The world totals include the higher figures for China. (See Wind Power section in Market and Industry chapter and related endnotes for more details.) 2 For Germany, some onshore capacity was decommissioned in 2017; number in table reflects net additions. (See Wind Power section in Market and Industry chapter and related endnotes for more details.) Note: Country data are rounded to the nearest 0.1 GW; world data are rounded to the nearest GW. Rounding is to account for uncertainties and inconsistencies in available data; where totals do not add up, the difference is due to rounding or decommissioning of existing projects. Data reflect a variety of sources, some of which differ quite significantly, reflecting variations in accounting or methodology. For more information, see Wind Power section in Market and Industry chapter and related endnotes. Source: See endnote 21 for this section. 212

213 RT Electricity Access by Region and Country, 2016 and Targets TABLE R22. People Without Access to Electrification Targets World/Region/Country Rate in 2016 Electricity in 2016 Share of population Share of population Millions with access with access 1 REFERENCE TABLES World 86% 1,060 1,060 All Developing Countries 82% Africa 588 52% North Africa 100% < 1 Sub-Saharan Africa 43% 588 439 Developing Asia 89% 17 97% Central and South America 17 Middle East 93% Africa 0 Algeria 100% 17 k 35% Angola 100% by 2030 32% k Benin 8 5% by 2025 (urban) k 65% by 2025 (rural) 55% 1 Botswana k 100% by 2030 Burkina Faso 15 k 20% 100 by 2025 10 k 10% Burundi 25% by 2025 97% k Cabo Verde 0.2 100% by 2020 63% Cameroon 9 3% 5 k Central African Republic 50% by 2030 9% 13 Chad Comoros 71% 0.2 Congo 43% 3 Côte d'Ivoire 63% k 9 100% by 2025 68 k Congo, Democratic Republic of 15% 60% by 2025 Djibouti 0.5 k 42% 100% by 2035 100% Egypt 0 Equatorial Guinea 68% 0.3 33% Eritrea 4 Ethiopia 61 k 40% 100% by 2030 90% 0.2 Gabon 48% 1 Gambia k 100% by 2030 Ghana 84% 5 k 100% by 2020 Guinea 20% k 10 100% by 2030 13% 2 k Guinea-Bissau 80% by 2030 65% 17 Kenya k 100% by 2022 Lesotho 34% 1 k 40% by 2020 Liberia 12% 4 k 100% by 2030 Libya 100% 0 Madagascar 23% 19 Malawi 11% 16 k 30% by 2020 Mali 41% 11 k 87% by 2030 213

214 RENEWABLES 2018 GLOBAL STATUS REPORT Electricity Access by Region and Country, 2016 and Targets (continued) TABLE R22. People Without Access to Electrification Targets World/Region/Country Rate in 2016 Electricity in 2016 Share of population Share of population Millions with access with access (continued) Africa 31% Mauritania 3 Mauritius 100% 0 0.4 Morocco 99% 29% 21 Mozambique k 100% by 2025 Namibia 1 56% 18 k Niger 11% 65% by 2030 Nigeria 61% 74 k 75% by 2020 k 90% by 2030 k 100 by 2025 8 Rwanda k 30% 100% by 2030 São Tomé and Príncipe 59% 0.1 Senegal k 64% 6 100% by 2025 Seychelles 99% <1 Sierra Leone 6 k 9% 100% by 2025 16% Somalia 9 South Africa 86% 8 k 100% by 2019 1% 13 South Sudan Sudan 46% 22 Swaziland 84% <1 k 75% by 2018 k 85% by 2020 k 100% by 2025 30% 36 k Tanzania 75% by 2030 To g o k 35% 5 82% by 2030 Tunisia 100% 0 19% Uganda k 33 98% by 2030 34% k Zambia 11 66% by 2030 34% 11 k Zimbabwe 66% by 2030 k 90% by 2030 (urban) k 51% by 2030 (rural) Developing Asia Bangladesh 75% 41 k 100% by 2021 100% Brunei 0 Cambodia 60% 6 k 70% by 2030 (rural) China 0 100% India 82% 239 k 100% by 2019 Indonesia 91% 23 Lao PDR <1 91% Korea DPR 27% 19 k 90% by 2017 Malaysia 99% <1 Mongolia 0.3 91% Myanmar 59% 22 k 87% by 2030 214

215 RT Electricity Access by Region and Country, 2016 and Targets (continued) TABLE R22. People Without Access to Electrification Targets World/Region/Country Rate in 2016 Electricity in 2016 Share of population Share of population Millions with access with access REFERENCE TABLES (continued) Developing Asia 7 Nepal 77% 51 74% Pakistan 11 Philippines 90% 100% Singapore 0 Sri Lanka 100% 0 100% 0 Thailand 98% Vietnam 2 Central and South America 99.6% <1 Argentina 100% Barbados 0 Bolivia 92% < 1 k 100% by 2025 (rural) 99.6% Brazil < 1 100% Chile 0 98% Colombia 1 Costa Rica 99.2% < 1 Cuba 100% 0 Dominican Republic 97% 0.3 98% 0.5 Ecuador k 98.9% by 2022 (urban) k 96.3% by 2022 (rural) El Salvador 96% 0.4 94% 1 Guatemala Haiti 7 k 33% 50% by 2020 Honduras 2 76% Jamaica 99.5% 0.2 Mexico 100% 0 Nicaragua 89% <1 96% Panama 0.3 99% 0.1 Paraguay Peru 95% 2 Suriname 87% 0.1 Trinidad and Tobago <1 99% Uruguay 99.9% <1 Venezuela 99.5% <1 215

216 RENEWABLES 2018 GLOBAL STATUS REPORT Electricity Access by Region and Country, 2016 and Targets (continued) TABLE R22. People Without Access to Electrification Targets World/Region/Country Rate in 2016 Electricity in 2016 Share of population Share of population Millions with access with access Middle East 100% 0 Bahrain 99% Iran <1 Iraq <1 99% 0 100% Jordan 0 100% Kuwait 0 100% Lebanon <1 Oman 99.6% 2 State of Palestine 100% 0 99% <1 Qatar 0.2 99% Saudi Arabia <1 96% Syria 0 100% United Arab Emirates 48% 14 Yemen Oceania 3 k <1 75% Federated States of Micronesia 90% by 2020 (rural) 1 Includes countries in the OECD and economies in transition. 2 The area of the State of Palestine is included in the World Bank country classification as “West Bank and Gaza”. 3 For the Federated States of Micronesia, rural electrification rate is defined by electrification of all islands outside of the four that host the state capital (which is considered urban). Disclaimer: The tracking of data related to energy access and DREA systems is a challenging process. Discrepancies or inconsistencies with past reporting may be due to improvements in data collection. Source: See endnote 22 for this section. 216

217 RT Population Without Access to Clean Cooking, by Region and Country,, 2015 TABLE R23. Population Without Access Population Without Access World/Region/Country Targets to Clean Cooking in 2015 to Clean Cooking in 2015 Share of population with Millions Share of population access to clean cooking 1 REFERENCE TABLES 38% 2,792 World 49% 2,792 All Developing Countries 848 71% Africa Sub-Saharan Africa 84% 846 North Africa 1% 2.1 1,874 Developing Asia 49% 12% Central and South America 59 12 5% Middle East Africa Algeria 0% 0 61% 15 k Angola 100% by 2030 90% 10 Benin 43% <1 Botswana 87% 16 Burkina Faso k 100% by 2030 (urban) k 65% by 2030 (rural) Burundi 98% 11 25% 0.2 k Cabo Verde 100% by 2020 77% Cameroon 18 Central African Republic 97% 5 Chad 13 95% Comoros 93% <1 Congo 84% 4 Côte d'Ivoire 77% 17 95% 75 Congo, Democratic Republic of <1 94% Djibouti Egypt 1% <1 Equatorial Guinea 77% <1 90% 5 Eritrea 95% Ethiopia k 94 100% by 2025 15% Gabon <1 90% 2 k Gambia 100% by 2030 Ghana 71% 20 k 100% by 2030 Guinea 98% 12 k 50% by 2025 Guinea-Bissau 98% k 75% by 2030 2 86% 100% by 2022 k Kenya 40 63% Lesotho 1 Liberia 98% 5 k 100% by 2030 Libya 0 0% Madagascar 98% 24 Malawi 97% 17 Mali 50% 9 k 100% by 2030 217

218 RENEWABLES 2018 GLOBAL STATUS REPORT Population Without Access to Clean Cooking, by Region and Country, 2015 (continued) TABLE R23. Population Without Access Population Without Access World/Region/Country Targets to Clean Cooking in 2015 to Clean Cooking in 2015 Share of population with Millions Share of population access to clean cooking (continued) Africa Mauritania 66% 3 <1 2% Mauritius 1.2 Morocco 3% 95% Mozambique 27 1 Namibia 55% 100% by 2030 (urban) k 97% Niger 19 k 60% by 2030 (rural) 94% Nigeria 171 Rwanda 12 k 98% 100% by 2030 <1 São Tomé and Príncipe 40% 11 71% Senegal <1 Seychelles 2% 6 98% Sierra Leone 95% 11 Somalia South Africa 10 18% 98% South Sudan 12 65% 26 Sudan 50% <1 k Swaziland 100% by 2030 Tanzania 96% 51 k 75% by 2030 To g o 91% k 7 80% by 2030 <1 Tunisia 2% 38 98% k Uganda 99% by 2030 14 Zambia 87% 71% 11 Zimbabwe Developing Asia Bangladesh 133 83% 83% Cambodia 13 33% 457 China India 834 64% Indonesia 32% 83 Lao PDR >95% 7 Korea DPR 46% 12 0% Malaysia 0 67% 2 Mongolia Myanmar 51 94% Nepal 70% 20 Pakistan 50% 95 Philippines 62 62% Singapore 0% 0 Sri Lanka 83% 17 Thailand 26% 18 Vietnam 41% 37 218

219 RT Population Without Access to Clean Cooking, by Region and Country, 2015 (continued) TABLE R23. Population Without Access Population Without Access World/Region/Country Targets to Clean Cooking in 2015 to Clean Cooking in 2015 Share of population with Share of population Millions access to clean cooking REFERENCE TABLES Central and South America Argentina 0 0% Bolivia 17% 2 Brazil 10 5% 7% 1.3 Chile Colombia 13% 6.4 Costa Rica 6% <1 Cuba 6% <1 Dominican Republic 12% 1 Ecuador 6% 0.4 El Salvador 20% 1.2 30% 5 Guatemala Haiti 9.9 93% Honduras 53% 4.2 13% 0.3 Jamaica Mexico 1 9.1 15% Nicaragua 52% 3.2 Panama 14% 0.6 Paraguay 41% 2.2 Peru 32% 1 0.1 Venezuela 2% <1 Middle East Bahrain <1 1% Iran 1% <1 Iraq 1% 0.2 Jordan 0% 0 Kuwait 0% 0 Lebanon 1% <1 Oman 2% <1 11 39% Yemen 1 Includes countries in the OECD and economies in transition. Disclaimer: The tracking of data related to energy access and DREA systems is a challenging process. Discrepancies or inconsistencies with past reporting may be due to improvements in data collection. Source: See endnote 23 for this section. 219

220 RENEWABLES 2018 GLOBAL STATUS REPORT Programmes Furthering Energy Access, Selected Examples TABLE R24. Web Address Name Brief Description https://ec.europa.eu/europeaid/regions/ ACP-EU Energy Facility A co-financing instrument that works to increase african-caribbean-and-pacific-acp-region/ access to sustainable and affordable energy services acp-multi-country-cooperation/energy_en in impoverished rural and peri-urban areas of African, Caribbean and Pacific (ACP) countries by involving http://energyfacilitymonitoring.eu/ local authorities and communities. http://www.euei-pdf.org/africa-eu-renewable- Africa-EU Renewable A programme that contributes to the African EU Energy energy-cooperation-programme-recp Partnership’s political targets of increasing renewable Energy Cooperation Programme (RECP) energy use and bringing modern access to at least an additional 100 million people by 2020. It provides policy advice, private sector co-operation, project preparation support activities and capacity development. https://www.energyforall.asia/eforall_initiative/ Asian Development An initiative that strengthens the ADB’s investments in about_the_initiative Bank (ADB) – Energy energy access. Energy for All offers a suite of services to for All Initiative sustainable energy companies, depending on their level of maturity. Its intention is to build a dynamic ecosystem where technology innovation and application flow seamlessly across borders in Asia. https://www.esmap.org/node/4006 Central America Clean An initiative that aims to help scale up clean cooking Cooking Initiative solutions in countries such as Guatemala, Honduras, Nicaragua and possibly El Salvador. Activities to (CACCI) be financed by the grant include development of a roadmap to achieve universal clean cooking access by 2030. The roadmap will build on the regional Sustainable Energy Strategy 2020. http://www.uncdf.org/en/cleanstart Developed by the UN Capital Development Fund and CleanStart United Nations Development Programme to help poor households and micro-entrepreneurs access micro- financing for low-cost clean energy. By 2020, it aims to invest USD 26 million in six countries in Asia and Africa to set 500,000 people on a clean energy pathway, thereby affecting the lives of more than 2.5 million people. Electrification Financing A flexible financial facility funded by the European http://electrifi.eu/ Commission and managed by the Association of Initiative (ElectriFI) European Development Finance Institutions. http://endev.info/ A multilateral initiative supported by the governments of Energising Development the Netherlands, Germany, Norway, Sweden, Switzerland (EnDev) and the United Kingdom. It operates in 25 countries in Asia, Africa and Latin America with the aim of facilitating sustainable access to modern energy services. By December 2016, EnDev had facilitated 17.3 million people, 19,400 social institutions and 38,600 small enterprises to gain sustainable access to modern energy services. http://eepafrica.org/ A challenge fund that promotes renewable energy, Energy & Environment energy efficiency and clean technology investments in Partnership (EEP) Southern and East Africa. EEP supports projects that Southern and East aim to provide sustainable energy services to the poor Africa and to combat climate change. The EEP Programme is jointly funded by the Ministry of Foreign Affairs of Finland, the Austrian Development Agency and the UK Department for International Development. http://eepmekong.org/ Energy & Environment A programme that focuses on increasing and improving Partnership (EEP) access of rural populations to sustainable and affordable Mekong energy services and products in five countries – Cambodia, Lao PDR, Myanmar, Thailand and Vietnam – in collaboration with government partners. 220

221 RT TABLE R24. Programmes Furthering Energy Access, Selected Examples (continued) Name Brief Description Web Address http://www.eavafrica.com Energy Access Ventures A private equity fund that invests in small and medium- sized enterprises active in electricity generation Fund and distribution and electricity-related services in REFERENCE TABLES sub-Saharan Africa. The fund focuses on off-grid rural electrification, in particular solar home systems, micro-grid infrastructure and other small/micro-scale renewable energy and hybrid technologies. http://www.eu-africa-infrastructure-tf.net/ EU-Africa Infrastructure A fund that combines grants and loans from the EU about/index.htm Trust Fund (ITF) and its Member States and banks to support local infrastructure projects, notably in electricity generation. Since 2007, more than EUR 50 million has been allocated to projects focusing on energy access. http://www.cleancookstoves.org/the-alliance/ A public-private partnership created with the goal Global Alliance for Clean Cookstoves of enabling the adoption of 100 million clean and efficient cook stoves and fuels by 2020. GACC uses (GACC) a market-based approach to bring together diverse groups of actors across government, development, non-governmental organisations (NGOs), academia and the private sector to save lives, improve livelihoods, empower women and protect the environment through initiatives designed to catalyse and champion the sector, mobilise resources, promote standards and testing, and co-ordinate sector knowledge and research. http://globalleap.org/ An initiative of the Clean Energy Ministerial that Global Lighting includes more than 10 governments and development and Energy Access partners. It provides support for quality assurance Partnership (Global frameworks and programmes that encourage market LEAP) transformation towards super-efficient technologies for off-grid use, including the Global LEAP Awards for Outstanding Off-Grid Products. http://news.gcfund.org/https://www. Green Climate Fund A fund established by 194 countries party to the UN greenclimate.fund/home Framework Convention on Climate Change in 2010 that (GCF) aims to mobilise funding at scale to invest in low- emission and climate-resilient development in developing countries. The fund is to mobilise USD 100 billion per year by 2020. http://greenminigrid.se4all-africa.org/ Green Mini-grids A platform supported by the African Development Bank Helpdesk (AfDB) providing a complete information service for developers of green mini-grids in Africa. The resource was developed by Energy 4 Impact and Inensus. http://www.iadb.org/en/topics/energy/ideas/ IDEAS – Energy A contest launched in 2009 that supports the ideas,3808.html implementation of innovative projects in the areas of Innovation Contest renewable energy, energy efficiency and energy access in Latin America and the Caribbean by promoting innovative energy solutions that can be replicated and scaled up in the region. http://adfd.irena.org/ IRENA – Abu Dhabi A partnership between IRENA and the ADFD to Fund for Development provide and facilitate finance for renewable energy projects in developing countries. ADFD provides (ADFD) Facility concessional loans of USD 5 million to USD 15 million to renewable energy projects in developing countries over seven funding rounds of approximately USD 50 million each. The Facility is running its fifth round and since 2012 has allocated USD 189 million to 19 renewable energy projects. 221

222 RENEWABLES 2018 GLOBAL STATUS REPORT TABLE R24. Programmes Furthering Energy Access, Selected Examples (continued) Web Address Brief Description Name http://labl.teriin.org/ A global initiative launched in 2008, steered by The Lighting a Billion Lives Energy and Resources Institute (TERI), to facilitate access to clean lighting and cooking solutions for energy- starved communities. The programme operates on an entrepreneurial model of energy service delivery to provide innovative, affordable and reliable off-grid solar solutions. As of March 2016, it had facilitated access to clean lighting and cooking solutions for more than 4.5 million people in India, sub-Saharan Africa and South Asia. http://www.lightingafrica.org/ Lighting Africa An IFC and World Bank programme to accelerate the development of sustainable markets for affordable, modern off-grid lighting solutions for low-income households and micro-enterprises across Africa. http://www.lightingasia.org/ Lighting Asia An IFC market transformation programme aimed at increasing access to clean, affordable energy in Asia by promoting modern off-grid lighting products, systems and mini-grid connections. The programme works with the private sector to remove market entry barriers, provide market intelligence, foster business-to-business linkages and raise consumer awareness of modern lighting options. http://www.ofid.org/ A development aid institution with a 40-year standing OPEC Fund for International and a presence in over 130 countries. It works in Development (OFID) co-operation with developing country partners and the international donor community to stimulate economic growth and alleviate poverty. Since 2008, the year that OFID launched its Energy for the Poor Initiative (EPI), energy poverty alleviation has been the primary strategic focus. In June 2012, the OFID Ministerial Council committed a minimum of USD 1 billion to bolster activities under the EPI, and in 2013 it turned this commitment from a one-time obligation to a revolving pledge. https://www.usaid.gov/powerafrica/ An initiative launched in 2014 focused on unlocking Power Africa’s Beyond beyondthegrid the Grid Initiative investment and growth for off-grid and small-scale energy solutions on the African continent. Beyond the Grid has partnered with over 40 investors and practitioners that have committed to invest over USD 1 billion in off-grid and small-scale energy. The goal is to provide energy access to 1 million people. http://rise.worldbank.org/ A World Bank Group project providing indicators that Readiness for compare the investment climate of countries across Investment in the three focus areas of the SEforALL initiative: energy Sustainable Energy access, energy efficiency and renewable energy. (RISE) Renewable Energy A partnership that invests in clean energy markets in http://www.reeep.org/ and Energy Efficiency developing countries to reduce CO emissions and build 2 Partnership (REEEP) prosperity. Based on a strategic portfolio of high-impact projects, it works to generate energy access, improve lives and economic opportunities, build sustainable markets and combat climate change. REEEP has formed partnerships with more than 120 governments, banks, businesses, NGOs and inter-governmental organisations and has invested about USD 20 million (EUR 16.4 million) in more than 145 projects. 222

223 RT Programmes Furthering Energy Access, Selected Examples (continued) TABLE R24. Name Brief Description Web Address https://www.climateinvestmentfunds.org/cif/ Scaling Up Renewable A Strategic Climate Fund programme that was node/67 established to expand renewable energy markets Energy in Low Income and scale up renewable energy deployment in the Countries (SREP) REFERENCE TABLES world’s poorest countries. To date, USD 264 million has been approved for 23 projects and programmes. An additional USD 1.9 billion in co-financing is expected from other sources. http://s3idf.org/ Small-Scale Sustainable A fund that promotes a Social Merchant Bank approach Infrastructure to help local entrepreneurs create micro-enterprises that Development Fund provide infrastructure services to the poor. As of early (S3IDF) 2015, it had a portfolio of almost 200 small investments and associated enterprises in India, and an additional 100 projects in the pipeline. http://www.snv.org/sector/energy/topic/ A multi-actor sector development approach that SNV Netherlands biogas supports the preparation and implementation of Development national biogas programmes throughout the world. In Organisation – Biogas co-operation with its partners, by end-2015 SNV had Practice installed over 700,000 bio-digesters in Asia, Africa and Latin America, impacting 3.5 million people. http://www.se4all.org Sustainable Energy for A global initiative of former UN Secretary-General Ban Ki-moon with three objectives for 2030: achieving All Initiative (SEforALL) universal access to electricity and clean cooking solutions; doubling the share of the world’s energy supplied by renewable sources; and doubling the rate of improvement in energy efficiency. http://www.afdb.org/en/topics-and- Sustainable Energy A fund administered by the AfDB and anchored by a sectors/initiatives-partnerships/ Fund for Africa (SEFA) Danish government commitment of USD 57 million sustainable-energy-fund-for-africa/ to support small and medium-scale clean energy and energy efficiency projects in Africa through grants for technical assistance and capacity building, investment capital and guidance. https://www.usaid.gov/div A USAID open competition supporting breakthrough US Agency for solutions to the world's most intractable development International challenges—interventions that could change millions of Development (USAID) lives at a fraction of the usual cost. Development Innovation Ventures (DIV) Source: See endnote 24 for this section. 223

224 RENEWABLES 2018 GLOBAL STATUS REPORT TABLE R25. International Networks Furthering Energy Access, Selected Examples Brief Description Name Web Address http://africamda.org/ Africa Mini-grid An association representing efforts by the mini-grid Developers Association development industry to alleviate the problem of energy (AMDA) access with sustainable and environmentally friendly renewable energy mini-grids. AMDA is active in Kenya and Tanzania through advocacy, promotion and co-ordination. http://www.area-net.org/ A global multi-stakeholder platform to exchange African Renewable information and consult about policies, technologies Energy Alliance (AREA) http://area-network.ning.com/ and financial mechanisms for the accelerated uptake of renewable energy in Africa. http://akonlightingafrica.com/ AKON Lighting Africa An initiative launched in February 2014 that seeks to provide a concrete response at the grassroots level to Africa’s energy crisis and to lay the foundations for future development. It aims to develop an innovative solar- powered solution that will provide African villages with access to a clean and affordable source of electricity. http://www.ruralelec.org/ Alliance for Rural An international business association that represents the decentralised energy sector and works towards Electrification (ARE) the integration of renewables into rural electrification markets in developing and emerging countries. It has more than 90 members along the whole value chain of off-grid technologies. https://access-coalition.org/ Alliance of CSOs for A coalition consisting of a range of civil society Clean Energy Access organisations (CSOs), both international and national. ACCESS aims to strengthen the visibility and presence (ACCESS) of CSOs working to deliver universal energy access, particularly within SEforALL, Sustainable Development Goal 7 implementation and other global energy initiatives. ACCESS is co-ordinated by the Catholic Agency for Overseas Development, ENERGIA, Greenpeace, HIVOS, the International Institute for Environment and Development, Practical Action, TERI, the World Resources Institute and WWF. https://www.ctc-n.org/ The operational arm of the UN Climate Change Climate Technology Technology Mechanism, hosted by UN Environment Centre and Network (CTCN) and the UN Industrial Development Organization. CTCN promotes the accelerated transfer of environmentally sound technologies for low-carbon and climate-resilient development at the request of developing countries. It provides technology solutions, capacity building and advice on policy, legal and regulatory frameworks tailored to the needs of individual countries. http://www.cti-pfan.net/ A multilateral, public-private partnership initiated by the Climate Technology Climate Technology Initiative (CTI) in co-operation with Initiative Private the UN Climate Expert Group on Technology Transfer. Financing Advisory PFAN operates to bridge the gap between investments Network (CTI PFAN) and clean energy businesses. It is designed to be an “open source” network to fit seamlessly with existing global and regional initiatives and to be inclusive of all stakeholders with an interest in clean energy financing. http://www.cgap.org/ Consultative Group to A global partnership of 34 leading organisations, housed at the World Bank, that seeks to advance Assist the Poor (CGAP) financial inclusion. It develops innovative solutions through practical research and active engagement with financial service providers, policy makers and funders to enable approaches at scale. 224

225 RT International Networks Furthering Energy Access, Selected Examples (continued) TABLE R25. Name Brief Description Web Address ENERGIA International An international network of more than 22 organisations http://www.energia.org/ working in Africa and Asia that are focused on gender issues, women’s empowerment and sustainable energy. REFERENCE TABLES http://www.energyaccess.org A global network of more than 2,500 members Energy Access operating in over 170 countries representing small, Practitioner Network medium-sized and large clean energy enterprises, civil society, government and academia. The network was established in 2011 to catalyse the delivery of modern energy services, particularly decentralised solutions for rural electrification. https://energyforall.asia/ A regional platform for co-operation, knowledge, Energy for All energy_for_all_partnership technical exchange and key project development. It Partnership brings together key stakeholders from the private sector, financial institutions, governments, bilateral, multilateral and non-governmental development partners. The Partnership, led by the ADB, aims to provide access to safe, clean and affordable modern energy to 200 million households in the Asia-Pacific region by 2020. https://www.gogla.org Global Off-Grid Lighting An independent, not-for-profit industry association that represents over 125 members as the voice of the off- Association (GOGLA) grid solar energy industry and promotes the solutions they offer. GOGLA was founded in 2012, borne out of the IFC/World Bank’s Lighting Global programme. http://grein.irena.org/ Global Renewable A network created to help islands accelerate their Energy Islands Network renewable energy uptake. It serves as a platform for pooling knowledge, sharing best practices and seeking (GREIN) innovative solutions for the accelerated update of clean and cost-effective renewable energy technologies in island states and territories. http://www.hedon.info/tiki-index.php A network aimed at empowering practitioners to unlock HEDON Household Energy Network barriers to household energy access by addressing knowledge gaps, facilitating partnerships and fostering information sharing. http://www.hpnet.org/ A diverse set of international, national and local actors Hydro Power Empowerment Network committed to collectively promoting and advancing pico (<5 kW), micro (<100 kW) and mini (<1,000 kW) (HPNET) hydropower in South and Southeast Asia. HPNET ’s aim is to catalyse micro-hydro practitioners for the advancement and advocacy of resilient micro- hydropower, towards equitable and sustainable development of rural communities in South and Southeast Asia. http://www.inforse.org/ International Network A network of 140 NGOs operating in 60 countries for Sustainable Energy that was established as part of the Rio Convention. (INFORSE) It is dedicated to promoting sustainable energy and social development and is funded by a mix of national governments, multilateral institutions and CSOs. INFORSE focuses on four areas: raising awareness about sustainable energy use; promoting institutional reform among national governments; building local and national capacity on energy-related issues; and supporting R&D. 225

226 RENEWABLES 2018 GLOBAL STATUS REPORT TABLE R25. International Networks Furthering Energy Access, Selected Examples (continued) Name Brief Description Web Address http://www.isolaralliance.org International Solar A coalition of solar resource-rich countries that was Alliance (ISA) conceived to address their special energy needs and to provide a platform to collaborate on addressing the identified gaps through a common, agreed approach. The common goal of the Alliance is to increase the use of solar energy in meeting energy needs of prospective ISA member countries in a safe, convenient, affordable, equitable and sustainable manner. http://viacampesina.org/ La Via Campesina (LVC) Informally known as the “international peasants’ movement”, LVC is a group of about 150 organisational members that co-ordinate migrant workers, farmers, rural women and indigenous communities on rural development issues. The “sustainable agriculture”, “water” and “women and human rights” programmes deal with various aspects of rural energy use, especially the connections between food security and biofuels. https://energyforall.asia/ Power for All A regional platform for co-operation, knowledge, energy_for_all_partnership technical exchange and key project development. It brings together key stakeholders from the private sector, financial institutions, governments, bilateral, multilateral and non-governmental development partners. The Partnership, led by the ADB, aims to provide access to safe, clean and affordable modern energy to 200 million households in the Asia-Pacific region by 2020. http://www.wisions.net/pages/redbiolac A multinational network of institutions involved in RedBioLAC research and dissemination of anaerobic bio-digestion and the treatment and management of organic waste in Latin America and the Caribbean. https://www.scalingoffgrid.org/ Scaling Off-grid Energy A platform for leading donors and investors to develop Africa’s off-grid energy sector and co-ordinate investments to connect more households and businesses to electricity. It aims to incentivise technological innovation, fund early stage companies and support critical elements of the off-grid ecosystem. Founding partners are USAID, the UK Department for International Development and the Shell Foundation. Wind Empowerment A global association for the development of locally http://windempowerment.org/ built small-scale wind turbines for sustainable rural electrification. Source: See endnote 25 for this section. 226

227 RT TABLE R26. Global Trends in Renewable Energy Investment, 2007-2017 2012 2013 2014 2015 2016 2017 2007 2010 2011 2008 2009 Billion USD New Investment by Stage REFERENCE TABLES Technology Research 2.8 4.5 4.4 5.1 5.1 Government R&D 4.8 4.7 5.2 5.4 2.7 4.9 Corporate R&D 4.0 4.2 4.8 3.9 3.8 4.2 4.2 3.9 3.2 3.6 4.5 Development / Commercialisation 1.1 1.1 1.5 1.0 1.0 Venture capital 2.1 3.3 1.6 2.7 2.7 2.6 Manufacturing 1.4 1.7 1.8 1.7 0.8 1.7 3.2 6.9 3.5 Private equity expansion capital 2.4 5.5 4.0 10.2 15.1 12.0 6.1 5.7 Public markets 20.8 10.8 12.7 10.8 9.9 Projects 169.4 159.3 201.3 252.4 215.6 216.1 155.2 Asset finance 115.1 135.6 120.4 190.1 (re-invested equity) 2.6 6.1 2.9 3.1 1.8 3.3 2.6 3.6 1.0 1.9 1.5 71.6 54.4 60.0 53.2 43.1 49.4 Small-scale distributed capacity 14.0 22.1 33.0 62.2 75.2 287. 8 234.4 284.3 323.4 274.0 279.8 181.4 Total New Investment 255.5 158.9 178.3 243.6 Merger & Acquisition Transactions 61.3 59.1 88.1 98.4 115.5 114.0 65.1 60.0 74 .0 66.9 68.1 303.6 302.5 372.3 421.8 389.5 393.8 242.7 218.0 361.8 Total Transactions 243.3 322.4 New Investment by Technology 160.8 119.9 145.3 179.3 136.5 158.1 64.0 140.5 61.5 103.3 38.7 Solar power 87. 2 83.6 86.4 110.7 124.7 60.9 107. 2 74 . 8 79.5 101.5 121.6 Wind power 20.2 15.8 14.0 12.7 9.4 15.1 4.7 22.9 17. 5 16.9 7. 3 Biomass and waste-to-energy 8.2 7.6 6.5 5.8 7.0 3.6 3.9 3.4 6.5 7.6 6.2 Hydropower <50 MW 18.2 7. 2 5.2 5.2 3.5 2.1 2.0 10.2 27.4 10.6 10.6 Biofuels 2.5 1.6 2.8 2.9 2.5 1.7 1.6 1.7 2.8 3.9 2.9 Geothermal 0.2 0.2 0.3 0.2 0.3 0.2 0.2 0.2 0.8 0.2 0.3 Ocean energy 274.0 255.5 234.4 284.3 323.4 178.3 279.8 158.9 Total New Investment 181.4 243.6 287. 8 Source: See endnote 26 for this section. 227

228 RENEWABLES 2018 GLOBAL STATUS REPORT proportion of output by technology. This is problematic because METHODOLOGICAL NOTES logic dictates that industry’s own-use cannot be proportionally Renewables Global This 2018 report is the 13th edition of the the same for every generating technology. Further, industry’s (GSR), which has been produced annually since Status Report own-use must be somewhat lower for some renewable 2005 (with the exception of 2008). Readers are directed to the generating technologies (particularly non-thermal renewables previous GSR editions for historical details. such as hydropower, solar PV and wind power) than is the case for fossil fuel and nuclear power technologies. Such thermal i Most 2017 data for national and global capacity, output, growth power plants consume significant amounts of electricity to meet and investment portrayed in this report are preliminary. Where their own internal energy requirements (see above). necessary, information and data that are conflicting, partial or older are reconciled by using reasoned expert judgment. Therefore, the GSR has opted to apply differentiated “industry Endnotes provide additional details, including references, own-use” by generating technology. This differentiation is based supporting information and assumptions where relevant. on explicit technology-specific own-use (such as pumping at hydropower facilities) as well as on the apportioning of various Each edition draws from thousands of published and unpublished categories of own-use by technology as deemed appropriate. references, including: official government sources; reports from For example, industry own-use of electricity at coal mines and oil international organisations and industry associations; input from refineries is attributed to fossil fuel generation. the GSR community via hundreds of questionnaires submitted by country, regional and technology contributors as well as feedback Differentiated own-use by technology, combined with global from several rounds of formal and informal reviews; additional average losses, are as follows: solar PV, ocean energy and wind personal communications with scores of international experts; and power (8.5%); hydropower (9.6%); CSP (14.5%); and bio-power a variety of electronic newsletters, news media and other sources. (15.5%). For comparison, the undifferentiated (universal) combined losses and industry own-use would be 16.7% of gross generation. Much of the data found in the GSR is built from the ground up by Estimated technology-specific industry own-use of electricity the authors with the aid of these resources. This often involves World from renewable sources is based on data for 2015 from IEA, extrapolation of older data, based on recent changes in key countries , 2017 edition (Paris: 2017). Energy Statistics and Balances within a sector or based on recent growth rates and global trends. Other data, often very specific and narrow in scope, come more-or- Such losses may differ Transmission and distribution losses. less prepared from third parties. The GSR attempts to synthesise (on average) by generating technology. For example, hydropower these data points into a collective whole for the focus year. plants often are located far from load centres, incurring higher than average transmission losses, whereas some solar PV The GSR endeavours to provide the best data available in each generation may occur near to (or at) the point of consumption, successive edition; as such, data should not be compared with incurring little (or zero) transmission losses. However, specific previous versions of this report to ascertain year-by-year changes. information by technology on a global scale is not available. NOTES ON ESTABLISHING RENEWABLE ENERGY SHARES OF Therefore, the GSR has opted to apply a global average for TOTAL FINAL ENERGY CONSUMPTION (TFEC) transmission and distribution losses. Global average electricity World Energy losses are based on data for 2016, from IEA, 1. Assumptions Related to Renewable Electricity Shares Statistics and Balances , 2017 edition (Paris: 2017). of TFEC When estimating electricity consumption from renewable 2. Significant Downward Revisions in Data for Traditional sources, the GSR must make certain assumptions about how Use of Biomass in China much of the estimated gross output from renewable electricity The renewable energy share of total final energy consumption generating resources actually reaches energy consumers, as part provided in this edition of the GSR has changed significantly relative of total final energy consumption. to previous years due mainly to a downward revision of data for traditional uses of biomass in China (data from IEA, World Energy The IEA World Energy Statistics and Balances reports electricity ). As a result, the renewable energy share Statistics and Balances 2017 output by individual technology. However, it does not report of TFEC is lower than it was in GSR 2017, as seen in Figure 1. electricity consumption by technology – only total consumption of electricity. NOTES ON RENEWABLE ENERGY CAPACITIES AND ENERGY OUTPUT The difference between gross output and final consumption is determined by: 1. Capacity versus Energy Data The GSR aims to give accurate estimates of capacity additions n The energy industry’s own-use, including electricity used for and totals, as well as of electricity, heat and transport fuel internal operations at power plants. This includes the power production in the focus year. These measures are subject to some consumption of various internal loads, such as fans, pumps uncertainty, which varies by technology. The chapter on Market and pollution controls at thermal plants, and other uses such and Industry Trends includes estimates for energy produced as electricity use in coal mining and fossil fuel refining. where possible, but it focuses mainly on power or heat capacity n Transmission and distribution losses that occur as electricity data. This is because capacity data generally can be estimated finds its way to consumers. with a greater degree of confidence than generation data. Official heat and electricity generation data often are not available within The common method is to assume that Industry’s own-use. the production time frame of the GSR. the proportion of consumption by technology is equal to the i For information on renewable energy data and related challenges, see Sidebar 4 in GSR 2015 and Sidebar 1 in GSR 2014. 228

229 MN i 5. Solar PV Capacity Data 2. Retirements and Replacements The capacity of a solar PV panel is rated according to direct current Data on capacity retirements and replacements (re-powering) (DC) output, which is most cases must be converted by inverters to are incomplete for many technologies, although data on several alternating current (AC) to be compatible with end-use electricity technologies do attempt to account for these directly. It is not supply. No single equation is possible for calculating solar PV data uncommon for reported new capacity installations to exceed the in AC because conversion depends on many factors, including the implied net increase in cumulative capacity; in some instances, this inverters used, shading, dust build-up, line losses and temperature is explained by revisions to data on installed capacity, while in others effects on conversion efficiency. The difference between DC and it is due to capacity retirements and replacements. Where data are METHODOLOGICAL NOTES AC power can range from as little as 5% to as much as 50%. Most available, they are provided in the text or relevant endnotes. ii utility-scale plants built in 2017 have ratios in the range of 1.1 to 1.5 . 3. Bioenergy Data This report attempts to report all solar PV capacity data on p ( see Figure 6 in Given existing complexities and constraints the basis of DC output (where data are provided in AC, this is , the GSR strives to provide GSR 2015, and Sidebar 2 in GSR 2012) specified) for consistency across countries. Some countries the best and latest data available regarding biomass energy (e.g., Canada, Chile, Japan since 2012 and Spain) report official developments. The reporting of biomass-fired combined heat capacity data on the basis of output in AC; these capacity data and power (CHP) systems varies among countries; this adds were converted to DC output by data providers (see relevant to the challenges experienced when assessing total heat and endnotes) for the sake of consistency. Global renewable power electricity capacities and total bioenergy outputs. capacity totals in this report include solar PV data in DC; as with Wherever possible, the bio-power data presented include capacity all statistics in this report, they should be considered as indicative and generation from both electricity-only and CHP systems using of global capacity and trends rather than as exact statistics. solid biomass, landfill gas, biogas and liquid biofuels. Electricity 6. Concentrating Solar Thermal Power (CSP) Data generation and capacity numbers are based on national data for Global CSP data are based on commercial facilities only. the focus year in the major producing countries and on forecast Demonstration or pilot facilities and facilities of 5 MW or less are data for remaining countries for the focus year from the IEA. excluded. Discrepancies between REN21 data and other reference The methodology is similar for biofuels production data, with data sources are due primarily to differences in categorisation and for most countries (not major producers) from the IEA; however, thresholds for inclusion of specific CSP facilities in overall global HVO data are estimated based on production statistics for the totals. The GSR aims to report net CSP capacities for specific (relatively few) major producers. CSP plants that are included. In certain cases, it may not be possible to verify if the reported capacity of a given CSP plant Bio-heat data are based on an extrapolation of the latest data is net or gross capacity. In these cases net capacity is assumed. See available from the IEA based on recent growth trends. p ( Bioenergy section in Market and Industry chapter for specific sources.) 7. Solar Thermal Heat Data Starting with GSR 2014, the GSR includes all solar thermal collectors 4. Hydropower Data and Treatment of Pumped Storage that use water as the heat transfer medium (or heat carrier) in Starting with the 2012 edition, the GSR has made an effort to global capacity data and the ranking of top countries. Previous report hydropower generating capacity without including pure GSRs focused primarily on glazed water collectors (both flat plate pumped storage capacity (the capacity used solely for shifting and evacuated tube); the GSR now also includes unglazed water water between reservoirs for storage purposes). The distinction is collectors, which are used predominantly for swimming pool heating. made because pumped storage is not an energy source but rather For the first time in this year ́s GSR, data for concentrating collectors a means of energy storage. It involves conversion losses and can are available. These include new installations overall as well as in key be fed by all forms of electricity, renewable and non-renewable. markets. Data for solar air collectors (solar thermal collectors that use Some conventional hydropower facilities do have pumping air as the heat carrier) are far more uncertain, and these collectors capability that is not separate from, or additional to, their normal play a minor role in the market overall. Both collector types – air and generating capability. These facilities are referred to as “mixed” concentrating collectors – are included where specified. plants and are included, to the extent possible, with conventional hydropower data. It is the aim of the GSR to distinguish and separate OTHER NOTES only the pure (or incremental) pumped storage component. Editorial content of this report closed by 15 May 2018 for Where the GSR presents data for renewable power capacity technology data, and by 1 May 2018 or earlier for other content. not including hydropower, the distinction is made because Growth rates in the GSR are calculated as compound annual growth hydropower remains the largest single component by far of rates (CAGR) rather than as an average of annual growth rates. renewable power capacity, and thus can mask developments in other renewable energy technologies if included. Investments All exchange rates in this report are as of 31 December 2017 and jobs data separate out large-scale hydropower where original and are calculated using the OANDA currency converter sources use different methodologies for tracking or estimating (http:// www.oanda.com/currency/converter/). values. Footnotes and endnotes provide additional details. Corporate domicile, where noted, is determined by the location of headquarters. i Based largely on information drawn from the following: International Energy Agency Photovoltaic Systems Programme (IEA PVPS), Snapshot of Global Photovoltaic Markets 2018 (Paris: April 2018), p. 11, http://www.iea-pvps.org/fileadmin/dam/public/report/statistics/IEA_PVPS-A_Snapshot_of_Global_PV-1992-2017.pdf; IEA PVPS, Trends in Photovoltaic Applications, 2016 : Survey Report of Selected IEA Countries Between 1992 and 2015 (Paris: 2016), p. 7; Gaëtan Masson, Becquerel Institute and IEA PVPS, personal communication with REN21, May 2017; Dave Renné, International Solar Energy Society, personal communication with REN21, March 2017. ii IEA PVPS, Snapshot of Global Photovoltaic Markets 2018 , p. 11. 229

230 RENEWABLES 2018 GLOBAL STATUS REPORT digestion of organic matter (broken down by microorganisms in the GLOSSARY absence of oxygen). Organic material and/or waste is converted Chillers that use heat energy from any Absorption chillers. into biogas in a digester. Suitable feedstocks include agricultural source (solar, biomass, waste heat, etc.) to drive air conditioning or residues, animal wastes, food industry wastes, sewage sludge, refrigeration systems. The heat source replaces the electric power purpose-grown green crops and the organic components of consumption of a mechanical compressor. Absorption chillers municipal solid wastes. Raw biogas can be combusted to produce differ from conventional (vapour compression) cooling systems in heat and/or power; it also can be transformed into biomethane two ways: 1) the absorption process is thermochemical in nature through a process known as scrubbing that removes impurities rather than mechanical, and 2) the substance that is circulated as including carbon dioxide, siloxanes and hydrogen sulphides, a refrigerant is water rather than chlorofluorocarbons (CFCs) or followed by compression. Biomethane can be injected directly into hydrochlorofluorocarbons (HCFCs), also called Freon. The chillers natural gas networks and used as a substitute for natural gas in generally are supplied with district heat, waste heat or heat from internal combustion engines without fear of corrosion. co-generation, and they can operate with heat from geothermal, Any material of biological origin, excluding fossil fuels or Biomass. solar or biomass resources. peat, that contains a chemical store of energy (originally received Chillers that use heat energy from any Adsorption chillers. from the sun) and that is available for conversion to a wide range of source to drive air conditioning or refrigeration systems. They differ convenient energy carriers. from absorption chillers in that the adsorption process is based Biomass, traditional (use of.) Solid biomass (including fuel on the interaction between gases and solids. A solid material in wood, charcoal, agricultural and forest residues, and animal dung), the chiller’s adsorption chamber releases refrigerant vapour when that typically is used in rural areas of developing countries with heated; subsequently, the vapour is cooled and liquefied, providing traditional technologies such as open fires and ovens for cooking a cooling effect at the evaporator by absorbing external heat and and residential heating. Often the traditional use of biomass leads turning back into a vapour, which is then re-adsorbed into the solid. to high pollution levels, forest degradation and deforestation. See Tendering. Auction. Biomass energy, modern. Energy derived from combustion Bagasse. The fibrous matter that remains after extraction of sugar of solid, liquid and gaseous biomass fuels in high-efficiency from sugar cane. conversion systems, which range from small domestic appliances to large-scale industrial conversion plants. Modern applications Behind-the-meter system. Any generation capacity, storage or include heat and electricity generation, combined heat and power demand management device on the customer side of the interface (CHP) and transport. with the distribution grid (i.e., the meter). Solid biomass fuel produced by compressing Biomass pellets. A fuel produced from oilseed crops such as soy, Biodiesel. pulverised dry biomass, such as waste wood and agricultural rapeseed (canola) and palm oil, and from other oil sources such residues. Pellets typically are cylindrical in shape with a diameter of as waste cooking oil and animal fats. Biodiesel is used in diesel around 10 millimetres and a length of 30-50 millimetres. Pellets are engines installed in cars, trucks, buses and other vehicles, as well easy to handle, store, and transport and are used as fuel for heating as in stationary heat and power applications. Most biodiesel is and cooking applications, as well as for electricity generation and made by chemically treating vegetable oils and fats (such as palm, CHP. (Also see Torrefied wood.) soy and canola oils, and some animal fats) to produce fatty acid methyl esters (FAME). (Also see Hydrotreated vegetable oil (HVO) A decentralised ledger in which digital transactions Blockchain. and hydrotreated esters and fatty acids (HEFA).) (such as the generation and sale of a unit of solar electricity) are recorded and confirmed anonymously. Each transaction is Bioeconomy (or bio-based economy). Economic activity collected and linked in a secure format (by cryptography) into a related to the invention, development, production and use of time-stamped “block”; this block is then stored collectively as a biomass resources for the production of food, fuel, energy, “chain” on distributed computers. Blockchain may be used in chemicals and materials. energy markets, including for micro-trading among solar power Bioenergy. Energy derived from any form of biomass (solid, liquid prosumers. or gaseous) for heat, power and transport. (Also see Biofuel.) Rules specifying the minimum Building codes and standards. A liquid or gaseous fuel derived from biomass, primarily Biofuel. standards for buildings. These can include standards for renewable ethanol, biodiesel and biogas. Biofuels can be combusted in energy and energy efficiency that are applicable to new and/or vehicle engines as transport fuels and in stationary engines for renovated and refurbished buildings. heat and electricity generation. They also can be used for domestic Capacity. The rated power of a heat or electricity generating heating and cooking (for example, as ethanol gels). Conventional plant, which refers to the potential instantaneous heat or electricity biofuels are principally ethanol produced by fermentation of sugar output, or the aggregate potential output of a collection of such or starch crops (such as wheat and corn), and FAME biodiesel units (such as a wind farm or set of solar panels). Installed capacity produced oil crops such as palm oil and canola and from waste describes equipment that has been constructed, although it may oils and fats. Advanced biofuels are made from feedstocks derived or may not be operational (e.g., delivering electricity to the grid, from the lignocellulosic fractions of biomass sources or from algae. providing useful heat or producing biofuels). They are made using biochemical and thermochemical conversion processes, some of which are still under development. Capacity factor. The ratio of the actual output of a unit of electricity or heat generation over a period of time (typically one Biogas is a gaseous mixture consisting Biogas/Biomethane. year) to the theoretical output that would be produced if the unit mainly of methane and carbon dioxide produced by the anaerobic 230

231 GL the resources available. Curtailment of electricity generation has were operating without interruption at its rated capacity during the long been a normal occurrence in the electric power industry and same period of time. can occur for a variety of reasons, including a lack of transmission A subsidy that covers a share of the upfront Capital subsidy. GLOSSARY access or transmission congestion. capital cost of an asset (such as a solar water heater). These include, for example, consumer grants, rebates or one-time payments by a Degression. A mechanism built into policy design establishing utility, government agency or government-owned bank. automatic rate revisions, which can occur after specific thresholds are crossed (e.g., after a certain amount of capacity is contracted, Combined heat and power (CHP) (also called co-generation). or a certain amount of time passes). CHP facilities produce both heat and power from the combustion of fossil and/or biomass fuels, as well as from geothermal and solar The application of economic Demand-side management thermal resources. The term also is applied to plants that recover incentives and technology in the pursuit of cost-effective energy “waste heat” from thermal power generation processes. efficiency measures and load-shifting on the customer side, to achieve least-cost overall energy system optimisation. An approach to renewable energy Community energy. development that involves a community initiating, developing, Distributed generation. Generation of electricity from dispersed, operating, owning, investing and/or benefiting from a project. generally small-scale systems that are close to the point of Communities vary in size and shape (e g., schools, neighbourhoods, consumption. partnering city governments, etc.); similarly, projects vary in Energy systems are considered Distributed renewable energy. technology, size, structure, governance, funding and motivation. to be distributed if 1) the systems are connected to the distribution Competitive bidding. See Tendering. network rather than the transmission network, which implies that they are relatively small and dispersed (such as small-scale solar Concentrating photovoltaics (CPV). Technology that uses PV on rooftops) rather than relatively large and centralised; or 2) mirrors or lenses to focus and concentrate sunlight onto a relatively generation and distribution occur independently from a centralised small area of photovoltaic cells that generate electricity (see Solar network. Specifically for the purpose of the chapter on Distributed photovoltaics). Low-, medium- and high-concentration CPV Renewables for Energy Access, “distributed renewable energy” meets systems (depending on the design of reflectors or lenses used) both conditions. It includes energy services for electrification, cooking, operate most efficiently in concentrated, direct sunlight. heating and cooling that are generated and distributed independent of Technologies Concentrating solar collector technologies. any centralised system, in urban and rural areas of the developing world. that use mirrors to focus sunlight on a receiver (see Concentrating The portion of the electrical network that takes Distribution grid. solar thermal power). These are usually smaller-sized modules that power off the high-voltage transmission network via substations (at are used for the production of heat and steam below 400 °C for varying stepped-down voltages) and feeds electricity to customers. industrial applications, laundries and commercial cooking. The application of digital technologies across the Digitalisation. Concentrating solar thermal power (CSP) (also called economy, including energy. concentrating solar power or solar thermal electricity, Technology that uses mirrors to focus sunlight into an STE). Digitisation. The conversion of something (e.g., data or an image) intense solar beam that heats a working fluid in a solar receiver, from analogue to digital. which then drives a turbine or heat engine/generator to produce Liquid biofuels that are functionally equivalent Drop-in biofuels. electricity. The mirrors can be arranged in a variety of ways, but to liquid fossil fuels and are fully compatible with existing fossil they all deliver the solar beam to the receiver. There are four types fuel infrastructure. of commercial CSP systems: parabolic troughs, linear Fresnel, A Electric vehicle (EV) (also called electric drive vehicle). power towers and dish/engines. The first two technologies are vehicle that uses one or more electric motors for propulsion. A line-focus systems, capable of concentrating the sun’s energy to battery electric vehicle is a type of EV that uses chemical energy produce temperatures of 400 °C, while the latter two are point- stored in rechargeable battery packs. A plug-in hybrid EV can be focus systems that can produce temperatures of 800 °C or higher . recharged by an external source of electric power. Fuel cell vehicles Conversion efficiency. The ratio between the useful energy are EVs that use pure hydrogen (or gaseous hydrocarbons before output from an energy conversion device and the energy input into reformation) as the energy storage medium. it. For example, the conversion efficiency of a PV module is the German term that means “transformation of Energiewende. ratio between the electricity generated and the total solar energy the energy system”. It refers to the move away from nuclear and received by the PV module. If 100 kWh of solar radiation is received fossil fuels towards an energy system based primarily on energy and 10 kWh electricity is generated, the conversion efficiency is 10%. efficiency improvements and renewable energy. The practice of funding a project or venture by Crowdfunding. The ability to do work, which comes in a number of forms Energy. raising money – often relatively small individual amounts – from including thermal, radiant, kinetic, chemical, potential and electrical. a relatively large number of people (“crowd”), generally using the Primary energy is the energy embodied in (energy potential of) Internet and social media. The money raised through crowdfunding natural resources, such as coal, natural gas and renewable sources. does not necessarily buy the lender a share in the venture, and Final energy is the energy delivered for end-use (such as electricity there is no guarantee that money will be repaid if the venture is at an electrical outlet). Conversion losses occur whenever primary successful. However, some types of crowdfunding reward backers with an equity stake, structured payments and/ or other products. energy needs to be transformed for final energy use, such as combustion of fossil fuels for electricity generation. Curtailment. A reduction in the output of a generator, typically on an involuntary basis, from what it could produce otherwise given Analysis of energy flows in a building, process or Energy audit. 231

232 RENEWABLES 2018 GLOBAL STATUS REPORT system, conducted with the goal of reducing energy inputs into the The process of converting energy into electricity Generation. and/or useful heat from a primary energy source such as wind, system without negatively affecting outputs. solar radiation, natural gas, biomass, etc. The measure that accounts for delivering more Energy efficiency. Geothermal energy. Heat energy emitted from within the earth’s services for the same energy input, or the same amount of services crust, usually in the form of hot water and steam. It can be used for less energy input. Conceptually, this is the reduction of losses to generate electricity in a thermal power plant or to provide heat from the conversion of primary source fuels through final energy directly at various temperatures. use, as well as other active or passive measures to reduce energy demand without diminishing the quality of energy services delivered. A bond issued by a bank or company, the proceeds Green bond. of which will go entirely into renewable energy and other Primary energy consumption per unit of economic Energy intensity. environmentally friendly projects. The issuer will normally label it output. Energy intensity typically is used as a proxy for energy as a green bond. There is no internationally recognised standard efficiency in macro-level analyses due to the lack of an internationally for what constitutes a green bond. agreed-upon high-level indicator for measuring energy efficiency. Green energy purchasing. Voluntary purchase of renewable A company that provides a Energy service company (ESCO). energy – usually electricity, but also heat and transport fuels – by range of energy solutions including selling the energy services from residential, commercial, government or industrial consumers, either a (renewable) energy system on a long-term basis while retaining directly from an energy trader or utility company, from a third-party ownership of the system, collecting regular payments from customers renewable energy generator or indirectly via trading of renewable and providing necessary maintenance service. An ESCO can be an energy certificates (such as renewable energy credits, green tags electric utility, co-operative, non-governmental organisation or private and guarantees of origin). It can create additional demand for company, and typically installs energy systems on or near customer renewable capacity and/or generation, often going beyond that sites. An ESCO also can advise on improving the energy efficiency of resulting from government support policies or obligations. systems (such as a building or an industry) as well as on methods for energy conservation and energy management. A device that transfers heat from a heat source to a Heat pump. heat sink using a refrigeration cycle that is driven by external electric Ethanol (fuel). A liquid fuel made from biomass (typically corn, or thermal energy. It can use the ground (geothermal/ ground- sugar cane or small cereals/grains) that can replace petrol in source), the surrounding air (aerothermal/air-source) or a body of modest percentages for use in ordinary spark-ignition engines water (hydrothermal/water-source) as a heat source in heating (stationary or in vehicles), or that can be used at higher blend levels mode, and as a heat sink in cooling mode. A heat pump’s final energy (usually up to 85% ethanol, or 100% in Brazil) in slightly modified output can be several multiples of the energy input, depending on engines, such as those provided in “flex-fuel” vehicles. Ethanol also its inherent efficiency and operating condition. The output of a heat is used in the chemical and beverage industries. pump is at least partially renewable on a final energy basis. However, See Biodiesel. Fatty acid methyl esters (FAME). the renewable component can be much lower on a primary energy basis, depending on the composition and derivation of the input Feed-in policy (feed-in tariff or feed-in premium). A energy; in the case of electricity, this includes the efficiency of the policy that typically guarantees renewable generators specified power generation process. The output of a heat pump can be fully payments per unit (e.g., USD per kWh) over a fixed period. renewable energy if the input energy is also fully renewable. Feed-in tariff (FIT) policies also may establish regulations by which generators can interconnect and sell power to the grid. Hydropower. Electricity derived from the potential energy of Numerous options exist for defining the level of incentive, such water captured when moving from higher to lower elevations. as whether the payment is structured as a guaranteed minimum Categories of hydropower projects include run-of-river, reservoir- price (e.g., a FIT), or whether the payment floats on top of the based capacity and low-head in-stream technology (the least wholesale electricity price (e.g., a feed-in premium). developed). Hydropower covers a continuum in project scale from large (usually defined as more than 10 MW of installed capacity, The part of primary energy, after deduction of losses Final energy. but the definition varies by country) to small, mini, micro and pico. from conversion, transmission and distribution, that reaches the Hydrotreated vegetable oil (HVO) and hydrotreated esters consumer and is available to provide heating, hot water, lighting and and fatty acids (HEFA). Biofuels produced by using hydrogen other services. Final energy forms include electricity, district heating, to remove oxygen from waste cooking oils, fats and vegetable mechanical energy, liquid hydrocarbons such as kerosene or fuel oil, oils. The result is a hydrocarbon that can be refined to produce and various gaseous fuels such as natural gas, biogas and hydrogen. fuels with specifications that are closer to those of diesel and jet Energy that is supplied to the Final energy consumption. fuel than is biodiesel produced from triglycerides such as fatty consumer for all final energy services such as cooling and acid methyl esters (FAME). lighting, building or industrial heating or mechanical work, Inverter (and micro-inverter), solar. Inverters convert the including transport. direct current (DC) generated by solar PV modules into alternating An incentive that provides individuals, Fiscal incentive. current (AC), which can be fed into the electric grid or used by households or companies with a reduction in their contribution to a local, off-grid network. Conventional string and central solar the public treasury via income or other taxes. inverters are connected to multiple modules to create an array Flywheel energy storage. Energy storage that works by applying that effectively is a single large panel. By contrast, micro-inverters available energy to accelerate a high-mass rotor (flywheel) to convert generation from individual solar PV modules; the output of a very high speed and thereby storing energy in the system as several micro-inverters is combined and often fed into the electric rotational energy. grid. A primary advantage of micro-inverters is that they isolate 232

233 GL the highest production costs from the market (assuming demand and tune the output of individual panels, reducing the effects that is unchanged) and admits lower-priced electricity into the market. shading or failure of any one (or more) module(s) has on the output of an entire array. They eliminate some design issues inherent to For distributed renewable energy systems Mini-grid/Micro-grid. GLOSSARY larger systems and allow for new modules to be added as needed. for energy access, a mini-grid/micro-grid typically refers to an independent grid network operating on a scale of less than 10 MW Investment. Purchase of an item of value with an expectation (with most at very small scale) that distributes electricity to a limited of favourable future returns. In this report, new investment in number of customers. Mini-/micro-grids also can refer to much larger renewable energy refers to investment in: technology research and networks (e.g., for corporate or university campuses) that can operate development, commercialisation, construction of manufacturing independently of, or in conjunction with, the main power grid. However, facilities and project development (including the construction of wind there is no universal definition differentiating mini- and micro-grids. farms and the purchase and installation of solar PV systems). Total investment refers to new investment plus merger and acquisition An energy storage medium used predominantly to Molten salt. (M&A) activity (the refinancing and sale of companies and projects). retain the thermal energy collected by a solar tower or solar trough of a concentrating solar power plant, so that this energy can be A fiscal incentive that allows investments Investment tax credit. used at a later time to generate electricity. in renewable energy to be fully or partially credited against the tax obligations or income of a project developer, industry, building Monitoring. Energy use is monitored to establish a basis for owner, etc. energy management and to provide information on deviations from established patterns. Joule. A joule (J) is a unit of work or energy equal to the work done by a force equal to one newton acting over a distance of A regulated arrangement in which utility Net metering/Net billing. one metre. One joule is equal to one watt-second (the power of customers with on-site electricity generators can receive credits for one watt exerted over the period of one second). The potential excess generation, which can be applied to offset consumption chemical energy stored in one barrel of oil and released when in other billing periods. Under net metering, customers typically combusted is approximately 6 gigajoules (GJ); a tonne of oven-dry receive credit at the level of the retail electricity price. Under net wood contains around 20 GJ of energy. billing, customers typically receive credit for excess power at a rate that is lower than the retail electricity price. Different jurisdictions Levelised cost of energy/electricity (LCOE). The cost per may apply these terms in different ways, however. unit of energy from an energy generating asset that is based on the present value of its total construction and lifetime operating Ocean energy. Energy captured from ocean waves, tides, currents, costs, divided by total energy output expected from that asset salinity gradients and ocean temperature differences. Wave energy over its lifetime. converters capture the energy of surface waves to generate electricity; tidal stream generators use kinetic energy of moving Strategy to achieve energy savings Long-term strategic plan. water to power turbines; and tidal barrages are essentially dams that over a specified period of time (i.e., several years), including specific cross tidal estuaries and capture energy as tides ebb and flow. goals and actions to improve energy efficiency, typically spanning all major sectors. An agreement between a producer of energy Off-take agreement. and a buyer of energy to purchase/sell portions of the producer’s A measure that requires designated parties Mandate/Obligation. future production. An off-take agreement normally is negotiated (consumers, suppliers, generators) to meet a minimum – and often prior to the construction of a renewable energy project or installation gradually increasing – standard for renewable energy (or energy of renewable energy equipment in order to secure a market for efficiency), such as a percentage of total supply, a stated amount of the future output (e.g., electricity, heat). Examples of this type of capacity, or the required use of a specified renewable technology. agreement include power purchase agreements and feed-in tariffs. Costs generally are borne by consumers. Mandates can include renewable portfolio standards (RPS); building codes or obligations Off-taker. The purchaser of the energy from a renewable energy that require the installation of renewable heat or power technologies project or installation (e.g., a utility company) following an off-take (often in combination with energy efficiency investments); renewable agreement. (See Off-take agreement.) heat purchase requirements; and requirements for blending Pay-as-you-go (PAYG). A business model that gives customers specified shares of biofuels (biodiesel or ethanol) into transport fuel. (mainly in areas without access to the electricity grid) the possibility Market concession model. A model in which a private company to purchase small-scale energy-producing products, such as solar or non-governmental organisation is selected through a competitive home systems, by paying in small instalments over time. process and given the exclusive obligation to provide energy Power plants that run predominantly Peaker generation plant. services to customers in its service territory, upon customer request. during peak demand periods for electricity. Such plants exhibit the The concession approach allows concessionaires to select the most optimum balance – for peaking duty – of relatively high variable appropriate and cost-effective technology for a given situation. cost (fuel and maintenance cost per unit of generation) relative to A way of ranking available sources of energy Merit order. fixed cost per unit of energy produced (low capital cost per unit of (particularly electricity generation) in ascending order based on generating capacity). short-run marginal costs of production, such that those with the Pico solar. See Solar pico system. lowest marginal costs are the first ones brought online to meet demand, and those with the highest are brought on last. The Pico solar devices. Small solar systems such as solar lanterns merit-order effect is a shift of market prices along the merit-order that are designed to provide only a limited amount of electricity or supply curve due to market entry of power stations with lower service, usually lighting and in some cases mobile phone variable costs (marginal costs). This displaces power stations with charging. Such systems are deployed mainly in areas that have 233

234 RENEWABLES 2018 GLOBAL STATUS REPORT no or poor access to electricity. Reverse auction. See Tendering. The rate at which energy is converted into work, expressed Power. Sector coupling. The integration of energy supply and demand in watts (joules/second). across electricity, thermal and transport applications, which may occur via co-production, combined use, conversion and Power purchase agreement (PPA). A contract between two substitution. parties, one that generates electricity (the seller) and one that is looking to purchase electricity (the buyer). Smart energy system. An energy system that aims to optimise the overall efficiency and balance of a range of interconnected energy Power-to-gas (P2G). The conversion of electricity, either from technologies and processes, both electrical and non-electrical renewable or conventional sources, to a gaseous fuel (for example, (including heat, gas and fuels). This is achieved through dynamic hydrogen or methane). demand- and supply-side management; enhanced monitoring Primary energy. The theoretically available energy content of a of electrical, thermal and fuel-based system assets; control and naturally occurring energy source (such as coal, oil, natural gas, optimisation of consumer equipment, appliances and services; better uranium ore, geothermal and biomass energy, etc.) before it undergoes integration of distributed energy (on both the macro and micro scales); conversion to useful final energy delivered to the end-user. Conversion as well as cost minimisation for both suppliers and consumers. of primary energy into other forms of useful final energy (such as Smart grid. Electrical grid that uses information and electricity and fuels) entails losses. Some primary energy is consumed communications technology to co-ordinate the needs and at the end-user level as final energy without any prior conversion. capabilities of the generators, grid operators, end-users and Primary energy consumption. The direct use of energy at the electricity market stakeholders in a system, with the aim of source, or supplying users with unprocessed fuel. operating all parts as efficiently as possible, minimising costs Product and sectoral standards. Rules specifying the minimum and environmental impacts and maximising system reliability, standards for certain products (e.g., appliances) or sectors resilience and stability. (industry, transport, etc.) for increasing energy efficiency. Advanced information and control Smart grid technology. Production tax credit. A tax incentive that provides the investor technology that is required for improved systems integration and or owner of a qualifying property or facility with a tax credit based resource optimisation on the grid. on the amount of renewable energy (electricity, heat or biofuel) An inverter with robust software that is capable Smart inverter. generated by that facility. of rapid, bidirectional communications, which utilities can control Prosumer. An individual, household or small business that not remotely to help with issues such as voltage and frequency only consumes energy but also produces it. Prosumers may play fluctuations in order to stabilise the grid during disruptive events. an active role in energy storage and demand-side management. A device used for converting solar energy to Solar collector. Public financing. A type of financial support mechanism whereby thermal energy (heat), typically used for domestic water heating but governments provide assistance, often in the form of grants or also used for space heating, for industrial process heat or to drive loans, to support the development or deployment of renewable thermal cooling machines. Evacuated tube and flat plate collectors energy technologies. that operate with water or a water/glycol mixture as the heat-transfer medium are the most common solar thermal collectors used Plants that pump water from a lower reservoir Pumped storage. worldwide. These are referred to as glazed water collectors because to a higher storage basin using surplus electricity, and that reverse irradiation from the sun first hits a glazing (for thermal insulation) the flow to generate electricity when needed. They are not energy before the energy is converted to heat and transported away by the sources but means of energy storage and can have overall system heat transfer medium. Unglazed water collectors, often referred to efficiencies of around 80-90%. as swimming pool absorbers, are simple collectors made of plastics Regulatory policy. A rule to guide or control the conduct of those and used for lower-temperature applications. Unglazed and glazed to whom it applies. In the renewable energy context, examples air collectors use air rather than water as the heat-transfer medium include mandates or quotas such as renewable portfolio standards, to heat indoor spaces or to pre-heat drying air or combustion air for feed-in tariffs and technology/fuel specific obligations. agriculture and industry purposes. A certificate awarded to Renewable energy certificate (REC). Solar cooker. A cooking device for household and institutional certify the generation of one unit of renewable energy (typically applications, that converts sunlight to heat energy that is retained 1 MWh of electricity but also less commonly of heat). In systems for cooking. There are five types of solar cookers: box cookers, based on RECs, certificates can be accumulated to meet panel cookers, parabolic cookers, evacuated tube cookers and renewable energy obligations and also provide a tool for trading trough cookers. among consumers and/or producers. They also are a means of Solar home system (SHS). A stand-alone system composed enabling purchases of voluntary green energy. of a relatively low-power photovoltaic module, a battery and An obligation placed Renewable portfolio standard (RPS). sometimes a charge controller that can power small electric by a government on a utility company, group of companies devices and provide modest amounts of electricity to homes for or consumers to provide or use a predetermined minimum lighting, communication and appliances, usually in rural or remote targeted renewable share of installed capacity, or of electricity regions that are not connected to the electricity grid. or heat generated or sold. A penalty may or may not exist for Solar photovoltaics (PV). A technology used for converting light non-compliance. These policies also are known as “renewable into electricity. Solar PV cells are constructed from semiconducting electricity standards”, “renewable obligations” and “mandated materials that use sunlight to separate electrons from atoms to market shares”, depending on the jurisdiction. 234

235 GL create an electric current. Modules are formed by interconnecting useful characteristics for a solid fuel including relatively high energy density, good grindability into pulverised fuel and water repellency. individual cells. Monocrystalline modules typically are slightly more efficient but relatively more expensive than multi-crystalline silicon Transmission grid. The portion of the electrical supply GLOSSARY modules, although these differences have narrowed with advances distribution network that carries bulk electricity from power in manufacturing and technology. Thin film solar PV materials can plants to substations, where voltage is stepped down for further be applied as flexible films laid over existing surfaces or integrated distribution. High-voltage transmission lines can carry electricity with building components such as roof tiles. Building-integrated PV between regional grids in order to balance supply and demand. (BIPV) generates electricity and replaces conventional materials in A renewable energy source Variable renewable energy (VRE). parts of a building envelope, such as the roof or facade. that fluctuates within a relatively short time frame, such as wind A solar PV-thermal hybrid Solar photovoltaic-thermal (PV-T). and solar power, which vary within daily, hourly and even sub- system that includes solar thermal collectors mounted beneath hourly time frames. By contrast, resources and technologies that PV modules to convert solar radiation into electrical and thermal are variable on an annual or seasonal basis due to environmental changes, such as hydropower (due to changes in rainfall) and energy. The solar thermal collector removes waste heat from the thermal power plants (due to changes in temperature of ambient PV module, enabling it to operate more efficiently. air and cooling water), do not fall into this category. Solar pico system. A very small solar PV system – such as a Vehicle fuel standard. Rule specifying the minimum fuel solar lamp or an information and communication technology (ICT) economy of automobiles. appliance – with a power output of 1-10 watts that typically has a voltage of up to 12 volts. Vehicle-to-grid (V2G). A system in which electric vehicles – whether battery electric or plug-in hybrid – communicate with the A hybrid technology of solar PV with Solar-plus-storage. grid in order to sell response services by returning electricity from battery storage. Other types of renewable energy-plus-storage the vehicles to the electric grid or by altering the rate of charging. plants also exist. Virtual power plant (VPP). A network of decentralised, An entire system consisting of a Solar water heater (SWH). independently owned and operated power generating units solar collector, storage tank, water pipes and other components. combined with flexible demand units and possibly also with storage There are two types of solar water heaters: pumped solar water facilities. A central control station monitors operation, forecasts heaters use mechanical pumps to circulate a heat transfer demand and supply, and dispatches the networked units as if they fluid through the collector loop (active systems), whereas were a single power plant. The aim is to smoothly integrate a high thermosyphon solar water heaters make use of buoyancy forces number of renewable energy units into existing energy systems; VPPs caused by natural convection (passive systems). also enable the trading or selling of power into wholesale markets. A type of battery that can be given a new charge Storage battery. A contract under Virtual power purchase agreement (PPA). by passing an electric current through it. A lithium-ion battery uses which the developer sells its electricity in the spot market. The a liquid lithium-based material for one of its electrodes. A lead- developer and the corporate off-taker then settle the difference acid battery uses plates made of pure lead or lead oxide for the between the variable market price and the strike price, and the electrodes and sulphuric acid for the electrolyte, and remains off-taker receives the electricity certificates that are generated. common for off-grid installations. A flow battery uses two chemical This is in contrast to more traditional PPAs, under which the components dissolved in liquids contained within the system and developer sells electricity to the off-taker directly. most commonly separated by a membrane. Flow batteries can be Voltage and frequency control. The process of maintaining recharged almost instantly by replacing the electrolyte liquid, while grid voltage and frequency stable within a narrow band through simultaneously recovering the spent material for re-energisation. management of system resources. A government measure that artificially reduces the price Subsidy. A unit of power that measures the rate of energy conversion Watt. that consumers pay for energy or that reduces the production cost. or transfer. A kilowatt is equal to 1 thousand watts; a megawatt An official commitment, plan or goal set by a government Target . to 1 million watts; and so on. A megawatt-electrical (MW) is used (at the local, state, national or regional level) to achieve a certain to refer to electric power, whereas a megawatt-thermal (MWth) amount of renewable energy or energy efficiency by a future date. refers to thermal/heat energy produced. Power is the rate at which Targets may be backed by specific compliance mechanisms or energy is consumed or generated. A kilowatt-hour is the amount of policy support measures. Some targets are legislated, while others energy equivalent to steady power of 1 kW operating for one hour. are set by regulatory agencies, ministries or public officials. Yield company (yieldco). Renewable energy yieldcos are publicly traded financial vehicles created when power companies spin off Tendering (also called auction/reverse auction or tender). their renewable power assets into separate, high-yielding entities. A procurement mechanism by which renewable energy supply or They are formed to reduce risk and volatility, and to increase capital capacity is competitively solicited from sellers, who offer bids at and dividends. Shares are backed by completed renewable energy the lowest price that they would be willing to accept. Bids may be projects with long-term power purchase agreements in place to evaluated on both price and non-price factors. deliver dividends to investors. They attract new types of investors Technology that allows the transfer Thermal energy storage. who prefer low-risk and dividend-like yields, and those who wish to and storage of thermal energy. (See Molten salt.) invest specifically in renewable energy projects. The capital raised Torrefied wood. Solid fuel, often in the form of pellets, produced is used to pay off debt or to finance new projects at lower rates than those available through tax equity finance. by heating wood to 200-300 °C in restricted air conditions. It has 235

236 RENEWABLES 2018 GLOBAL STATUS REPORT LIST OF ABBREVIATIONS nating current lised cost of energy (or electricity) Leve LCOE AC Alter velopment Agency AFD French De -emitting diode LED Light AfDB ican Development Bank Afr Liquef LPG ied petroleum gas tralian dollar Aus AUD M&A Merger s and acquisitions 2 BECCU y with carbon capture and use Bioenerg Square metre m 3 BNEF g New Energy Finance Bloomber m Cubic metre ussian Federation, India, China and South Africa BRICS Brazil, R MENA t and North Africa Middle Eas CDM lopment Mechanism Clean Deve inance institution MFI Microf CEM Clean Ener gy Ministerial megajoules MJ d heat and power CHP Combine MSW Municipal solid w aste uan CNY Chinese y Meg Mtoe atonne of oil equivalent Carbon dioxide CO 2 Megawatt/megawatt-hour MW/MWh Conferenc COP23 e of the Parties, 23rd meeting MW Megawatt-thermal th CSP trating solar thermal power Concen ally Appropriate Mitigation Action NAMA Nation Dire ct current DC ally Determined Contribution NDC Nation ct-use DDU Deep dire Opera O&M tions and maintenance t finance institution Developmen DFI sation for Economic Co-operation OECD Organi and Development Dis DHC trict heating and cooling und for International Development OFID OPEC F Demand Man DMIS agement Incentive Scheme Power-to-gas P2G DOE US Depart ment of Energy PAYG Pay-as-you-go DREA Dis tributed renewables for energy access PERC sivated Emitter Rear Cell Pas EC Europ ean Commission PHEV Plug-in hy brid electric vehicle ECOWAS Economic C ommunity of West African States PJ Petajoule Enhanc EGS ed (or engineered) geothermal systems Palm ker PKS nel shells Exajoule EJ Pow PPA er purchase agreement EMEC Europ ean Marine Energy Centre Pari PPMC s Process on Mobility and Climate sing Development Energi EnDev Purch asing power parity PPP vironmental Protection Agency US En EPA Pow PTO er take-off device sions Trading Scheme ETS Emis PUC s Commission Public Utilitie ean Union (specifically the EU-28) Europ EU PV Photovoltaic EV Elec tric vehicle R&D ch and development Resear FAME Fat ty acid methyl ester Res RBF ults-based financing FIT Fee d-in tariff REC Renew able electricity certificate f Twenty G20 Group o wable Energy Directive EU Rene RED en Climate Fund Gre GCF RFS Renew able Fuel Standard Gro GDP ss domestic product RPS Renew able portfolio standard ee of origin Guarant GO SDG tainable Development Goal Sus GSR Global Sta tus Report SEforALL tainable Energy for All Sus Gigawatt/gigawatt-hour GW/GWh t for industrial processes Solar hea SHIP GW Gigawatt-thermal th SHS Solar home s ystem S Hydr ogen sulphide H 2 tainability Mobility for All SUM4ALL Sus otreated esters and fatty acids Hydr HEFA Tran sport Decarbonisation Alliance TDA otreated vegetable oil HVO Hydr TES Therm al energy storage ICT Inform ation and communication technologies TFC Total fin al consumption of energy IEA Int ernational Energy Agency TFEC Total fin al energy consumption hotovoltaic Power Systems Programme IEA PVPS IEA P Toe Tonne of o il equivalent olar Heating and Cooling Programme IEA S IEA SHC Terawatt/terawatt-hour TW/TWh IFC ernational Finance Corporation Int ed Arab Emirates Unit UAE IHA Int ernational Hydropower Association ed Nations Unit UN INDC ended Nationally Determined Contribution Int ed Nations Environment UNEP Unit upee INR Indian r ed Nations Refugee Agency Unit UNHCR Inve IOU stor-owned utility USD ed States dollar Unit al public offering IPO Initi V2G Vehicle-to-grid t power producer Independen IPP d tax VAT Value-adde ernational Renewable Energy Agency IRENA Int Vent ure capital and private equity VC/PE Inform ation technology IT Vari able renewable energy VRE kilotonne o f oil equivalent ktoe W/Wh Watt/watt-hour Kilowatt/kilowatt-hour kW/kWh kilowatt-thermal kW y Yieldco Yield compan th 236

237 N ENERGY UNITS AND CONVERSION FACTORS NOTES VOLUME METRIC PREFIXES 3 3 (k) = 10 kilo 00 litres (l) 1,0 = 1 m 6 85412 l 3.7 = 1 US gallon 10 (M) = mega 9 = 10 giga 46090 l 4.5 = 1 Imperial gallon (G) 12 tera (T) 10 = 15 peta 10 = (P) 18 exa 10 = (E) Example: 1 TJ = 1,000 GJ = 1,000,000 MJ = 1,000,000,000 kJ = 1,000,000,000,000 J ENERGY UNIT CONVERSION = ton nes (metric) of oil equivalent Toe : Multiply by tu To e GJ MWh MB 1 Mtoe 9 PJ 41. = 0.278 1 0.024 0.948 GJ 39.683 11.630 1 41.868 To e 0.293 0.025 1.055 1 MB tu 1 MWh x 3.600 = 3.6 GJ Example: 3.600 1 3.412 0.086 MWh SOLAR THERMAL HEAT SYSTEMS BIOFUELS CONVERSION 2 th 21. 4 MJ/l 1 million m Ethanol: = 0.7 GW 7 MJ/l 32. Biodiesel: Used where solar thermal heat data have been converted HVO: 4 MJ/l 34. 2 th from square metres (m ), ) into gigawatts-thermal (GW Petrol: 36 MJ /l by accepted convention. 41 MJ Diesel: /l Note on biofuels: 1) These values can vary with fuel and temperature. 2) Around 1.7 litres of ethanol is energy equivalent to 1 litre of petrol, and around 1.3 litres of biodiesel is energy equivalent to 1 litre of diesel. Energy values from http://ec.europa.eu/eurostat/statistics-explained/index.php/Glossary:Tonnes_of_oil_equivalent_(toe) 3) https://www.neste.com/sites/default/files/attachments/ , p. 15, Neste Renewable Diesel Handbook except HVO, which is from . neste_renewable_diesel_handbook.pdf 237

238 RENEWABLES 2018 GLOBAL STATUS REPORT PHOTO CREDITS ls on UPS facility in Parsippany, New Jersey, Solar pane page 68 page 16 Bouwdokk en Windpark, Zeeland, The Netherlands © Windpark Bouwdokken United States © UPS page 17 Aut onomous and electric bus demonstration, Oil palm fr page 75 uits awaiting to be processed in palm oil mill near Paris © Sebastien Durand © Chanyanuch Wannasinlapin page 18 Woo d chips © Imantsu aphics page 76 © genesisgr Sarv antara, Bahraich district, Uttar Pradesh, India page 18 page 78 s © Jan-Otto Bioga © Oorja Development Solution India Private Limited page 79 Icel and's geothermal power plant © Michael Zysman page 20 Wes tern Cape, South Africa © Miles Astray esma river, Segovia Dam over Er page 83 S.O. L.I.D., Austria, solar thermal cooling installation page 20 © Juan Enrique del Barrio under construction at IKEA, Singapore Hydr page 85 o electric Electricity power plant © Samo Trebizan Elec tric car charging station © Matej Kastelic page 21 wen Dam in the Elan Valley of Wales, UK page 86 Claer ind energy, Germany © kamisoka Solar and w page 21 © D K Grove page 87 Cons truction of Hidroituango hydroelectric power plant, yg with blue sky © Goldhafen Solar ener page 23 Colombia, 2018 © Juanillo1970 page 24 Solar p ower plants in South Sudan page 90 ower plant in construction © Peter Zurek Solar p © Sebastian Noethlichs page 92 sian engineers are checking outdoor solar PV area Two A ing © Pethal page 26 3D-Render © xieyuliang Energ page 27 y Efficiency Levels © Jiri Hera ative solar roof, Hamburg, Germany © mh-fotos page 93 Innov page 28 Elec tric vehicle of Deutsche Post DHL gy plant © Vastram page 94 Solar ener © Expo Fortschrittsmotor Klimaschutz GmbH (KlimaExpo.NRW - Landesgesellschaft der Pro page 97 duction of solar panels © asharkyu Landesregierung NRW) l installation in Indian village © greenaperture page 98 Solar pane page 29 oofs on company building © iinspiration Solar r Solar p ower station from drone view © Peteri page 99 page 30 Solar p ower plant under construction in Germany Solar T page 102 hermal Power Station © Mlenny © anyaivanova us, Netherlands, PV-thermal system at a dairy, © Solar page 103 page 33 oman with electric bike at Xi'an, China Chinese w Netherlands © Aizuddin Saad © Wagner, G ermany, façade-integrated collectors in page 103 page 35 Bio pow er plant with storage of wooden fuel © nostal6ie single-family house, Germany page 36 Solar w ater heater on the roof of a house © salajean page 105 L.I.D., Austria, solar thermal cooling installation © S.O. under construction at IKEA, Singapore page 36 trict heating pipes in a lake in Sweden © stilrentfoto Dis ines © Anupong Sonprom Wind turb page 109 page 37 thanol plant in Rotterdam, Netherlands © Fransen Bio-e Wind po wer plant in Xinjiang, China © Rick Wang page 111 page 38 hongqing elevated light rail © QinJin China C page 112 Off-s hore wind turbines © silkwayrain page 39 ant container ship © Federico Rostagno Merch page 115 Red tipp ed massive windmill blades on storage © pwrmc Photo voltaic power station supplying electricity to small page 40 town in countryside © Peteri y under construction © vinzo page 117 Wind energ Dam, Miaoli coun ty in northwest Taiwan page 42 Two o page 118 f five floating wind turbines being prepared to sail © Chen Hsi Fu off to Peterhead, Scotland, to establish the world's first floating wind farm, Hywind Scotland Pilot Park Wind turb page 43 ines at a C.N.F.L. facility near the Costa Rican © Terje Aase capital © Stefan Scherer-Emunds ind pillar © Sam Green Inside a w page 118 und skyline landmark © ArtisticPhoto page 44 Shanghai B page 124 o Solar power plant, Atacama, Chile El Romer page 45 Solar P anels on City Building in Business District in © ACCIONA, S.A. Barbados, Caribbean © Milan Portfolio page 125 Solar pane ls in the Atacama desert, Chile indfarm © peacefoo page 45 New Zealand w © Helene Munson page 48 El Ll ano Wind Park, Chubut, Argentina Sarv antara, Bahraich district, Uttar Pradesh, India © page 125 © Aluar Aluminio Argentino S.A.I.C. Oorja Development Solution India Private Limited Wind energ y, Entlebuch, Switzerland page 50 page 127 New solar l amp and a group of kids watching, Luweero © Felix Broennimann Diastrict, Uganda, Africa © Drevs page 52 Global war ming © Piyaset page 129 l blue Lay on wooden frame © Anatta_Tan Solar pane ls on a building © Felea Adina Solar pane page 55 opower station in Rwanda © Roel Slootweg Minihydr page 131 Solar pane ls on a apartment, Korea © Kim Jihyun page 55 page 131 ing for sale at market, Yangon, Burma © Anirut Cook page 57 Rasp f ield © Wila_Image Thailand 0 fuel © Tobias Arhelger page 57 Super E1 page 133 antara, Bahraich district, Uttar Pradesh, India © Sarv Pow page 58 er supply for electric car charging © Matej Kastelic Oorja Development Solution India Private Limited Solar pane ls on the houses of ethnic Hmong page 59 page 133 Solar P V, Revi ji Dhani, Tharparkar, Pakistan © Khamkhlai Thanet © Hassaan Idrees voltaic solar panel © 9wooddy page 60 Photo page 135 Solar P anel © World Bank Cont rol room at a power station © Alessia Pierdomenico page 60 page 135 htt ps://futurepump.com/ insight-the-rise-of-solar-powered-irrigation/ tation for self-sufficient, Spain page 62 Car charging s page 136 Eog s Solar Container, Komolo © Rafiki Power © Juan Enrique del Barrio 238

239 RENEWABLES 2018 GLOBAL STATUS REPORT PHOTO CREDITS Solar r page 138 ooftop system at Jurong Port facility, Singapore © Jurong Port Pte Ltd Wind energ y under construction © Teka77 page 140 page 139 Windmill assambly yard to build windfarms at sea © Rudmer Zwerver sian engineers are checking outdoor solar PV area page 141 Two A © xieyuliang s installing solar panels © Lisa F. Young page 146 Worker ts a tree © Yadaris page 147 Child plan ine under construction © P. Heitmann page 147 Wind turb page 148 Spe icherfarm auf dem Gelände des BMW Werkes in Leipzig, 10/2017 © christophbusse.de, BMW AG Pow er to gas concept © petrmalinak page 149 t a charging station for electric vehicles page 150 Car charging a © Scharfsinn pecting a large wind turbine installation, Thailand page 151 Ins © Moteelec Windmills for e lectric power production, Aragon, Spain page 152 © pedrosala page 153 ine, Germany © Joerg Steber Wind Turb © Rainbow r page 154 ays page 155 Pylon c onstruction workers © QiuJu Song UPS bat tery © minemero page 155 page 156 Smar t home automation app © NicoElNino Batt page 157 ery room © Nutthapat Matphongtavorn ocall 111-S © Viessmann page 160 Vit page 163 Elec tric vehicle charging station for home © Chesky HEIN EKEN‘s Göss brewery © Brau Union Österreich page 164 Wind turb page 168 ines farm in winter © Brian A Jackson Residen tial building in Hong Kong © ESB Professional page 168 Smar t house with energy performance rating © Chesky page 169 Indus trial container cargo freight ship © Travel mania page 171 Pow page 171 er supply for electric car charging © Matej Kastelic Tra ffic in India's largest city, Mumbai © sladkozaponi page 171 page 172 Solar ar rays on the roof of Apple headquarters, Cupertino © Apple, Images-of-Renewable-Energy-at-Apple COPYRIGHT & IMPRINT Renewable Energy Policy Network REN21 Secretariat c/o UN Environment for the 21st Century 1 rue M iollis, Building VII 750 15 Paris France

240 GLOBAL OVERVIEW ENDNOTES · 01 01 8 Peter Vanham, “A convenient truth – fighting climate change 1 Government of Canada, “Coal phase-out: the Powering Past Coal Alliance”, https://www.canada.ca/en/services/environment/ turned into a profitable business”, World Economic Forum, press weather/climatechange/canada-international-action/coal-phase- release (Geneva: 22 December 2016), https://www.weforum. out.html , viewed 24 May 2018. New pledges were from Angola, org/press/2016/12/a-convenient-truth-fighting-climate-change- Denmark, Italy, Mexico, New Zealand and the United Kingdom, ; World Economic Forum, turned-into-a-profitable-business/ from Damian Carrington, “’Political watershed’ as 19 countries Renewable Infrastructure Investment Handbook: A Guide for pledge to phase out coal”, (UK), 16 November The Guardian h t t p : // (Geneva: December 2016), p. 4, Institutional Investors https://www.theguardian.com/environment/2017/nov/16/ 2017, www3.weforum.org/docs/WEF_Renewable_Infrastructure_ GLOBAL OVERVIEW political-watershed-as-19-countries-pledge-to-phase-out-coal ; Investment_Handbook.pdf ; Andrew Griffin, “Solar and wind power The Beam, “Italy to phase out coal by 2025”, CleanTechnica, The Independent (UK), cheaper than fossil fuels for the first time”, https://cleantechnica.com/2017/10/30/italy- 30 October 2017, 4 January 2017, https://www.independent.co.uk/environment/ phase-coal-2025/ ; Harry Cockburn, “UK vows to close all coal solar-and-wind-power-cheaper-than-fossil-fuels-for-the-first- The Independent (UK), 12 October 2017, power plants by 2025”, time-a7509251.html ; Reed Landberg, “Clean energy is approaching https://www.independent.co.uk/environment/coal-power-plants- a tipping point”, Bloomberg , 19 September 2017, https://www. REFERENCES I uk-close-2025-renewable-energy-amber-rudd-nuclear-gas- bloomberg.com/news/articles/2017-09-19/tipping-point-seen- . policy-a7997241.html ; “Renewables now for-clean-energy-as-monster-turbines-arrive , 26 September at tipping point says Liebreich”, Smartest Energy C40 Cities, “25 cities commit to become emissions 9 http://www.smartestenergy.com/info-hub/the-informer/ 2017, neutral by 2050 to deliver on their share of the Paris renewables-now-at-tipping-point-says-liebreich/ Lazard’s ; Lazard, http://www.c40.org/ Agreement”, 12 November 2017, Levelized Cost of Energy Analysis – Version 11.0. Executive Summary . press_releases/25-cities-emissions-neutral-by-2050 https://www.lazard.com/perspective/ (New York: 2017), p. 1, 10 R20–Regions of Climate Action, “European Commission, Global levelized-cost-of-energy-2017/ ; Bruce Douglas, Global Solar Covenant of Mayors and R20 announce cooperation on innovative Council, personal communication with REN21, 2 March 2018; sustainable investment at sub-national level in developing Naureen S. Malik, “Renewables are starting to crush aging U.S. https://regions20.org/2017/12/13/ countries”, 13 December 2017, Bloomberg , 2 November 2017, nukes, coal plants”, https://www. r20-aer-take-big-steps-froward-one-planet-summit/ . bloomberg.com/news/articles/2017-11-02/renewables-are- 11 United Nations, “New Transport Decarbonisation ; Christoph Kost starting-to-crush-aging-u-s-nukes-coal-plants Alliance for faster climate action”, 11 November et al., Levelized Cost of Electricity Renewable Energy Technologies https://cop23.unfccc.int/news/ 2017, (Freiburg: Fraunhhofer Institute for Solar Energy Systems (ISE), . new-transport-decarbonisation-alliance-for-faster-climate-action March 2018), p. 3, https://www.ise.fraunhofer.de/content/dam/ ise/en/documents/publications/studies/EN2018_Fraunhofer- International Energy Agency (IEA), “Electric vehicles: Tracking 12 ; Adam ISE_LCOE_Renewable_Energy_Technologies.pdf clean energy progress”, 23 May 2018, https://www.iea.org/tcep/ Vaughan, “New nuclear power cannot rival windfarms on price, transport/evs/ . h t t p s : // (UK), 22 November 2017, The Guardian energy boss says”, 13 Enerdata, energy statistics database, https://yearbook.enerdata. www.theguardian.com/environment/2017/nov/22/new-nuclear- net , viewed 14 March 2018. ; power-cannot-rival-windfarms-price-energy-boss-innogy Global Energy & CO2 Status Report 2017 (Paris: 2018), p. 1, IEA, 14 Julie M. Rodriguez “European wind energy is now cheaper than https://www.iea.org/publications/freepublications/publication/ https://inhabitat.com/ nuclear power”, inhabitat, 26 July 2016, . GECO2017.pdf european-wind-energy-is-now-cheaper-than-nuclear-power/ . h t t p s : // IEA, “Tracking progress: natural gas-fired power”, 15 2 Leila Mead, “Subnational governments and corporations take www.iea.org/etp/tracking2017/naturalgas-firedpower/ , viewed charge of the renewable energy transition”, International Institute 28 May 2018; Steven Lee Myers, “In China’s coal country, for Sustainable Development, 21 September 2017, h t t p : //s d g . New York Times , a ban brings blue skies and cold homes”, iisd.org/news/subnational-governments-and-corporations- https://www.nytimes.com/2018/02/10/ 10 February 2018, take-charge-of-the-renewable-energy-transition/ ; Georgetown ; Jeremy Bowden, world/asia/china-coal-smog-pollution.html Climate Center, “New subnational coalitions demonstrate “Coal-to-gas switching gains pace in power sector”, 5 June 2017, leadership after Paris withdrawal”, http://www. KNect365 Energy, 30 August 2017, https://knect365.com/ georgetownclimate.org/articles/new-subnational-coalitions- energy/article/e8ac137f-5439-49e1-ad99-37f49046d768/ demonstrate-leadership-after-paris-withdrawal.html . coal-to-gas-switching-gains-pace-in-power-sector . Amy Lieberman, “China, developing countries, lead in renewable 3 16 See endnotes 10 and 12 in Distributed Renewables chapter. https://www. and solar energy investment”, Devex, 6 April 2018, devex.com/news/china-developing-countries-lead-in-renewable- 17 Based on IEA, World Energy Balances and Statistics (Paris: 2017). and-solar-energy-investment-92474 . 18 Estimated shares based on the following sources: total final Countries considered in Top 5 Countries 2017 table include only 4 energy consumption in 2016 (estimated at 362.3 EJ) based on those covered by Bloomberg New Energy Finance (BNEF); GDP 357.9 EJ for 2015, from IEA, op. cit. note 17, and escalated by (at purchasers’ prices) data for 2016 from World Bank. BNEF data the 1.24% increase in estimated global total final consumption include the following: all biomass, geothermal and wind power (including non-energy use) from 2015 to 2016, derived from IEA, projects of more than 1 MW; all hydropower projects of between (Paris: 2017), 2017 https://www.iea.org/ World Energy Outlook 1 and 50 MW; all solar power projects with those less than 1 MW weo2017/ . Estimate of traditional biomass from idem. Modern bioenergy for heat based on 2015 values from IEA, op. cit. note (small-scale capacity) estimated separately; all ocean energy 17, and escalated to 2016 based on growth rates from IEA, projects; and all biofuel projects with an annual production (Paris: 2017), p. 124. Biofuels used in transport Renewables 2017 capacity of 1 million litres or more. Small-scale capacity data used in 2016 from note 54 in Bioenergy section in Market and Industry to help calculate investment per unit of GDP cover only those chapter. Solar thermal heating/cooling from Monika Spörk-Dür, countries investing USD 200 million or more. AEE-Institute for Sustainable Technologies (AEE INTEC), Austria, Sustainable Mobility for All (SUM4ALL) website, 5 https://sum4all. personal communications with REN21, March and April 2018, and , viewed 22 May 2018. org/sustainable-mobility-all from Werner Weiss and Monika Spörk-Dür, Solar Heat Worldwide. 6 SEforALL, “Press release: New initiative announced to Global Market Development and Trends in 2017, Detailed Market address growing challenge of providing cooling solutions (Gleisdorf, Austria: IEA Solar Heating and Cooling Figures 2016 for all”, 19 July 2017, https://www.seforall.org/content/ http://www.iea-shc.org/solar-heat- Programme (SHC), 2018), . cooling-for-all-initiative-announced worldwide . Geothermal heat in 2016 (excluding heat pumps) is Carbon Pricing Leadership Coalition, “Leaders commit to regional 7 an extrapolation from five-year growth rates calculated from cooperation on carbon pricing in the Americas”, 14 December generation and capacity data for 2009 and 2014, from John W. https://www.carbonpricingleadership.org/news/2017/12/14/ 2017, Lund and Tonya L. Boyd, “Direct utilization of geothermal energy leaders-commit-to-regional-cooperation-on-carbon-pricing-in- 2015 worldwide review”, Geothermics , vol. 60 (March 2016), the-americas ; Muyu Xu and Josephine Mason, “China aims for pp. 66-93, http://dx.doi.org/10.1016/j.geothermics.2015.11.004 . Reuters emission trading scheme in big step vs. global warming”, , Nuclear power final consumption based on generation of 2,617 19 December 2017, https://www.reuters.com/article/us-china- TW, from BP, Statistical Review of World Energy 2017 (London: carbon/china-aims-for-emission-trading-scheme-in-big-step-vs- 2017) (converted by source from primary energy on the basis of global-warming-idUSKBN1ED0R6 . thermal equivalence, assuming 38% conversion efficiency), and 240

241 ENDNOTES GLOBAL OVERVIEW · 01 01 global average electricity losses and estimated industry own-use http://fs-unep-centre.org/sites/default/files/publications/ p. 34, of nuclear power in 2016 based on IEA, op. cit. note 17. Electricity . gtr2018v2.pdf consumption from renewable sources based on estimates of Cornie Huizenga, Partnership on Sustainable, Low Carbon 32 Renewables 2017 Databook, online 2016 generation from IEA, Transport (SLoCAT), personal communication with REN21, database, viewed May 2018, and global average electricity losses 23 February 2018; Neil Veilleux, Meister Consultants Group, and estimated technology-specific industry own-use of electricity personal communication with REN21, 19 March 2018; Eurelectric, from renewable sources in 2016, based on IEA, op. cit. note 17. (Brussels: 2018), pp. 5, 8, Eurelectric Annual Report 2017 h t t p s : // Estimates of industry own-use of electricity are differentiated by cdn.eurelectric.org/media/2520/eurelectric_annual_report_2017- GLOBAL OVERVIEW technology based on explicit technology-specific own-use (such h-CE1D7409.pdf . as pumping at hydropower facilities) as well as apportioning 33 See for example: German Federal Ministry for Economic Affairs of various categories of own-use by technology as deemed and Energy (BMWi), “Green light for the energy transition in the appropriate. For example, industry own-use of electricity at coal transport sector funding initiative”, 27 February 2017, https://www. mines and oil refineries are attributed to fossil fuel generation. bmwi.de/Redaktion/EN/Pressemitteilungen/2017/20170227- Industry own-use includes the difference between gross and ; startschuss-fuer-foerderinitiative-energiewende-im-verkehr.html REFERENCES I net generation at thermal power plants (the difference lies in the NREL, op. cit. note 25; Northeast Energy Efficiency Partnerships, power consumption of various internal loads, such as fans, pumps op. cit. note 25. and pollution controls at thermal plants), and other uses such as electricity use in coal mining and fossil fuel refining. Differentiated National Development and Reform Commission (NDRC), China 34 own-use by technology, combined with global average losses, National Energy Administration (NEA), “Notice on publication are as follows: solar PV, ocean energy and wind power (8.5%); of the measures for resolving curtailment of hydro, wind and Figure 1 hydropower (9.6%); CSP (14.5%); and bio-power (15.5%). h t t p s : // PV power generation”, No. 1942 (8 November 2017), based on all sources in this endnote. chinaenergyportal.org/en/measures-resolving-curtailment- hydro-wind-pv-power-generation/ . 19 Ibid., all sources. Northeast Energy Efficiency Partnerships, op. cit. note 25; NDRC, 35 20 Ibid., all sources. NEA, op. cit. note 34. 21 Ibid., all sources. FS-UNEP and BNEF, op. cit. note 31, p. 12. 36 Ibid., all sources. 22 Ibid., pp. 15, 34. 37 23 All values and Figure 2 derived from IEA, op. cit. note 17. 38 Investment in wind and solar power combined was down 2% Consumption of traditional biomass based on the combined from 2016, while capacity installations were up 16%; investment values for solid biomass and charcoal consumption in the change calculated from Ibid., pp. 15, 34. See Market and Industry residential sector of non-OECD countries. Consumption of chapter for more on solar PV and wind power capacity additions renewable electricity based on the share of renewables in global and references. gross electricity generation, adjusted by technology-specific estimates of industry own-use, analogous to the methodology 39 Ibid., pp. 12, 15, 34. applied for Figure 1. Industry own-use includes the difference 40 Ibid., pp. 14, 15, 26, 34. between gross and net generation at thermal power plants (the WWF et al., 41 Power Forward 3.0. How the Largest U.S. Companies difference lies in the power consumption of various internal loads, Are Capturing Business Value While Addressing Climate Change such as fans, pumps and pollution controls at thermal plants), (Washington, DC: 2017), pp. 12, 14, https://www.worldwildlife.org/ and other uses such as electricity use in coal mining and fossil publications/power-forward-3-0-how-the-largest-us-companies- fuel refining. Consumption of produced heat from renewable are-capturing-business-value-while-addressing-climate-change . sources (from heat plants) based on the renewable share of heat production in heat plants. BNEF, “Corporations purchased record amounts of clean power 42 https://about.bnef.com/blog/corporations- in 2017”, 22 January 2018, https://www. 24 IEA, Energy Efficiency 2017 (Paris: 2017), p. 16, . purchased-record-amounts-of-clean-power-in-2017/ iea.org/publications/freepublications/publication/Energy_ . Efficiency_2017.pdf 43 Ibid.; International Renewable Energy Agency (IRENA), Corporate Sourcing of Renewables: Market and Industry 25 The increase from 2016 to 2017 in renewable power (excluding (Paris: 2018), http://irena.org/publications/2018/May/ Trends hydropower) is 17%, in renewable power (including hydropower) Corporate-Sourcing-of-Renewable-Energy . is some 9%, in biofuels is about 3%, and in solar hot water capacity is approximately 4%, calculated from the table WWF et al., op. cit. note 41, pp. 12, 14, 27. 44 “Renewable Energy Indicators 2017”. US National Renewable Jeremy Berke, “The world’s largest oil and gas companies are 45 Electrification Futures Study: A Energy Laboratory (NREL), getting greener after fighting with shareholders for months”, Technical Evaluation of the Impacts of an Electrified U.S. Energy Business Insider, 17 December 2017, http://uk.businessinsider. System https://www.nrel.gov/analysis/ (Golden, CO: 2017), com/exxon-shell-bp-announce-renewable-energy-and-climate- ; Northeast Energy Efficiency electrification-futures.html . initiatives-2017-12?r=US&IR=T Partnerships, Northeastern Regional Assessment of Strategic Investments in clean energy companies (including carbon 46 h t t p : // Electrification: Summary Report (Lexington, MA: 2017), capture and storage (5% of deals), energy storage (3% of www.neep.org/reports/strategic-electrification-assessment . deals) and digital energy and intelligent mobility (3% of deals) IEA, 26 Renewables for Heating and Cooling: Untapped Potential totalled USD 6.2 billion over that period, from Anna Hirtenstein, (Paris: 2007), p. 15, https://www.iea.org/publications/ “Big oil is investing billions to gain a foothold in clean energy”, freepublications/publication/Renewable_Heating_Cooling_ , 25 October 2017, Bloomberg https://www.bloomberg.com/ Final_WEB.pdf ; Ute Collier, “Commentary: More policy attention news/articles/2017-10-24/big-oil-is-investing-billions-to-gain- http://www. is needed for renewable heat”, IEA, 25 January 2018, a-foothold-in-clean-energy , and from Angus McCrone, BNEF, iea.org/newsroom/news/2018/january/commentary-more-policy- London, personal communication with REN21, 2 May 2018. . attention-is-needed-for-renewable-heat.html 47 Ernest Scheyder and Ron Bousso, “Peak oil? Majors aren’t buying 27 Ute Collier, Renewable Heat Policies. Delivering Clean Heat into the threat from renewables”, , 8 November 2017, Reuters Solutions for the Energy Transition (Paris: 2018), p. 7, https://www. https://uk.reuters.com/article/us-oil-majors-strategy-insight/ iea.org/publications/insights/insightpublications/Renewable_ peak-oil-majors-arent-buying-into-the-threat-from-renewables- . Heat_Policies.pdf idUKKBN1D80GA . 28 IEA, op. cit. note 17. 48 BNEF, “5 distributed energy trends in emerging markets”, 22 Based on Ibid. 29 November 2017, https://about.bnef.com/blog/distributed-energy- ; Liam Stoker, “Shell invests in Sonnen trends-emerging-markets/ based on Ibid. Figure 3 30 h t t p s : // to drive distributed energy aims forward”, 23 May 2018, 31 See Market and Industry chapter, Reference Table R1 and related www.energy-storage.news/news/shell-invests-in-sonnen-to- endnotes for details of renewable capacity additions; coal, gas . drive-distributed-energy-aims-forward and nuclear capacity additions from Frankfurt School-UNEP Energy Access Outlook 2017 (Paris: 2017), p. 12, h t t p : // 49 IEA, Collaborating Centre for Climate & Sustainable Energy Finance www.iea.org/publications/freepublications/publication/ Global (FS-UNEP) and Bloomberg New Energy Finance (BNEF), WEO2017SpecialReport_EnergyAccessOutlook.pdf . Trends in Renewable Energy Investment 2018 (Frankfurt: 2018), 241

242 · 01 ENDNOTES GLOBAL OVERVIEW 01 The approximate proportion of clean cook stoves by energy 50 carbon market, COM(2017) 693 final” (Brussels: 23 November source in 2016 was 71% LPG/gas, 23% wood/charcoal, 3.5% 2017), p. 23, https://ec.europa.eu/commission/sites/beta- biogas/alcohol, 1.9% pellets or gasifier, 0.4% solar energy ; political/files/report-functioning-carbon-market_en.pdf and 0.1% renewable electricity. See endnote 73 in Distributed see Table 8 for an overview of all verified emissions (in million 2 equivalent). Renewables chapter. tonnes of CO 51 61 Yasemin Erboy, CLASP, Washington, DC, personal The European Power Sector Agora Energiewende and Sandbag, communication with REN21, 31 January 2018. in 2017. State of Affairs and Review of Current Developments (London: 2018), p. 37, https://sandbag.org.uk/project/ GLOBAL OVERVIEW REN21 Policy Database. 52 european-energy-transition-power-sector-2017/ . 53 Carbon Disclosure Project, “The world’s renewable energy cities”, 62 Carbon Pricing Leadership Coalition, “Leaders commit to regional , https://www.cdp.net/en/cities/world-renewable-energy-cities cooperation on carbon pricing in the Americas”, 14 December viewed 23 March 2018. https://www.carbonpricingleadership.org/news/2017/12/14/ 2017, NDCs submitted under the United Nations Framework 54 leaders-commit-to-regional-cooperation-on-carbon-pricing-in- Convention on Climate Change; data from IRENA, Untapped the-americas . REFERENCES I Potential for Climate Action: Renewable Energy in Nationally 63 (Paris: Medium-Term Renewable Energy Market Report 2016 IEA, Determined Contributions (Abu Dhabi: 2017), pp. 11, 13, h t t p s : // 2016), p. 214, https://www.iea.org/newsroom/news/2016/october/ irena.org/-/media/Files/IRENA/Agency/Publication/2017/ medium-term-renewable-energy-market-report-2016.html . . (Note that Nov/IRENA_Untapped_potential_NDCs_2017.pdf 64 Statista, “Average annual Brent crude oil price from 1976 to IRENA provides several different figures for the total submitted 2018 (in U.S. dollars per barrel)”, https://www.statista.com/ NDCs – 194 (pp. 7, 13), 168 (p. 11) and 166 (p. 13) from the figure statistics/262860/uk-brent-crude-oil-price-changes-since-1976/ , (subtracting seven from the SIDS category). NDC Registry viewed 21 March 2018; Statista, “Average annual OPEC crude oil http://www4.unfccc.int/ndcregistry/Pages/Home.aspx website, , https://www. price from 1960 to 2018 (in U.S. dollars per barrel)”, viewed 20 May 2018. The NDC Registry recorded 170 on 20 May statista.com/statistics/262858/change-in-opec-crude-oil-prices- 2018, so the lower figure of 168 is used in this report. since-1960/ , viewed 21 March 2018. 55 Jocelyn Timperley, “COP23: key outcomes agreed 65 The prices for natural gas at US Henry Hub and Canada, and the at the UN climate talks in Bonn”, CarbonBrief, 19 Japanese liquefied natural gas average price, increased slightly https://www.carbonbrief.org/ November 2017, in 2014 and have since fallen to below the 2013 averages. Prices cop23-key-outcomes-agreed-un-climate-talks-bonn . to 2016 from BP Statistical Review of World Energy, “Natural Gas Some uncertainty exists as to whether these mechanisms are 56 https://www. – 2016 in Review”, presentation, June 2017, p. 33, sufficient to drive deployment of renewable energy, particularly bp.com/content/dam/bp/en/corporate/pdf/energy-economics/ in the power sector, as many other factors are at play, including statistical-review-2017/bp-statistical-review-of-world-energy- the structure of power markets and regulations governing market 2017-natural-gas.pdf . Average cost data for 2017 were not access. Intergovernmental Panel on Climate Change, Renewable available at time of writing (March 2018), but gas prices fell Energy Sources and Climate Change Mitigation: Special Report 14% between 2 January 2017 and 1 January 2018, from Trading of the Intergovernmental Panel on Climate Change (Cambridge, https://tradingeconomics. Economics, “Natural gas, 1990-2018”, https://www.ipcc.ch/ UK: Cambridge University Press, 2012), com/commodity/natural-gas , viewed 21 March 2018. . The current pdf/special-reports/srren/SRREN_Full_Report.pdf 2 Status Report 2017 Global Energy & CO IEA, 66 (Paris: 2018), p. 1, low-carbon price under the European Emissions Trading Scheme https://www.iea.org/publications/freepublications/publication/ has led many industry and government officials to suggest that . GECO2017.pdf the scheme has done little to incentivise the deployment of renewable technologies, from Robert Hodgson, “The price is 67 Ibid., p. 8. right? Crunch time for EU carbon market reform”, EurActiv, 13 68 Within the EU, 9 GW is under active development in Poland, plus February 2017, http://www.euractiv.com/section/energy/news/ capacity in Germany (3.1 GW), Greece (1.1 GW), Romania (0.6 GW) the-price-is-right-its-crunch-time-for-eu-carbon-market-reform/ . and Hungary (0.5 GW); the remaining capacity under development At the same time, markets for some renewable heating and is dominated by China (211 GW) and India (131 GW), Vietnam cooling technologies have grown following the implementation (47 GW), Turkey (43 GW), Indonesia (38 GW), Bangladesh (22 of well-designed carbon pricing mechanisms; for example, GW), Japan (19 GW), Egypt (15 GW), Pakistan (12 GW) and South bioenergy heat grew substantially in Sweden after significantly Boom and Bust 2018. Africa (12 GW), from Christine Shearer et al., high taxes were introduced, first on fossil fuels in the 1970s and (Coalswarm, Sierra Club Tracking the Global Coal Plant Pipeline then on carbon in the early 1990s, from Bengt Johansson et al., https://endcoal.org/ and Greenpeace, 2018), Table 3, pp. 12-14, The Use of Biomass for Energy in Sweden – Critical Factors and global-coal-plant-tracker/reports/boom-bust-2018/ . (Lund, Sweden: Lund University Department of Lessons Learned 69 The total comes from consumption subsidies of USD 262 Technology and Society, August 2002), https://www.researchgate. billion in 2016, down from USD 309 billion in 2015, from IEA, net/publication/237704953_The_Use_of_Biomass_for_Energy_ “Energy subsidies”, https://www.iea.org/statistics/resources/ in_Sweden_-_Critical_Factors_and_Lessons_Learned . energysubsidies/ , viewed 12 March 2018, with additional 57 Date for 2016 from World Bank, State and Trends of estimated production subsidies of USD 100 billion per year Carbon Pricing (Washington, DC: October 2016), p. from IEA et al., “Analysis of the scope of energy subsidies and https://openknowledge.worldbank.org/bitstream/ 12, suggestions for the G-20 initiative, prepared for submission to the ; European handle/10986/25160/9781464810015.pdf?sequence=7 G-20 Summit Meeting Toronto (Canada), 26-27 June 2010” (Paris: The EU Emissions Trading System (EU Commission (EC), 16 June 2010), p. 4, https://www.iea.org/media/weowebsite/ ETS) (Brussels: 2016), p. 1, https://ec.europa.eu/clima/sites/ . According energysubsidies/G20_Subsidy_Joint_Report.pdf clima/files/factsheet_ets_en.pdf ; International Carbon Action to the IEA, the decrease in the value largely reflects lower Partnership, Emissions Trading Worldwide: ICAP Status Report international energy prices of subsidised fuels since mid-2014, as (Berlin: 2016), pp. 22-23, https://icapcarbonaction.com/en/ 2016 the gap between international benchmark and end-user prices ; Government of Canada, “Guidance on the status-report-2016 is closed by decreased international prices of energy, but it also pan-Canadian carbon pollution pricing benchmark”, 3 October incorporates the impact of pricing reform. IEA, “Commentary: https://www.canada.ca/en/services/environment/weather/ 2016, Fossil-fuel consumption subsidies are down, but not out”, 20 climatechange/pan-canadian-framework/guidance-carbon- December 2017, https://www.iea.org/newsroom/news/2017/ pollution-pricing-benchmark.html ; Colombia from Juan Camilo december/commentary-fossil-fuel-consumption-subsidies-are- Gomez Trillos, University of Oldenberg, personal communication . down-but-not-out.html with REN21, 3 May 2017; 2017 data and based on idem, Figure 4 70 G20 Hamburg Climate and Energy Action Plan for G20, all sources. Growth: Annex to G20 Leaders’ Declaration (Hamburg, Clément Métivier et al., Global Carbon Account 2018 (Paris: 58 Germany: 2017), p. 11, https://www.g20germany.de/Content/ https://www.i4ce.org/wp-core/wp-content/ 2018), p. 1, DE/_Anlagen/G7_G20/2017-g20-climate-and-energy-en.pdf?__ uploads/2018/04/Global-Carbon-Account-2018_5p.pdf . blob=publicationFile&v=6 ; transparency and ambition should be Xu and Mason, op. cit. note 7. 59 increased from H. B. Asmelash, Phasing Out Fossil Fuel Subsidies 60 EC, “Report from the Commission to the European Parliament in the G20: Progress, Challenges, and Ways Forward (Geneva: and the Council – Report on the functioning of the European International Centre for Trade and Sustainable Development, 242

243 ENDNOTES · 01 GLOBAL OVERVIEW 01 https://www.ictsd.org/sites/default/files/research/ 2017), p. viii, Another 29 countries had some type of renewable heat policy. 89 See Figure 10 and associated endnotes. phasing_out_fossil_fuel_subsidies_in_the_g20-henok_birhanu_ asmelash.pdf ; United Nations Climate Change, “G20 must phase The True Cost of Fossil Fuels: Saving on the Externalities of IRENA, 90 out fossil fuel subsidies by 2020. Call by investors with more than (Abu Dhabi: May 2016), h t t p s : // Air Pollution and Climate Change https://unfccc.int/news/ $2.8 trillion in assets”, 15 February 2017, www.irena.org/-/media/Files/IRENA/Agency/Publication/2016/ . g20-must-phase-out-fossil-fuel-subsidies-by-2020 IRENA_REmap_externality_brief_2016.pdf . Asmelash, op. cit. note 70, pp. vii, viii 71 . 91 IRENA, Renewable Energy in District Heating and Cooling: A GLOBAL OVERVIEW (Abu Dhabi: 2017), p. 3, 17, Table 2, Sector Roadmap for REmap 72 Christine Shearer, “Coal phase-out: first global survey of http://www.irena.org/-/media/Files/IRENA/Agency/Publication/ companies and political entities exiting coal”, Endcoal, 18 October . District heat 2017/Mar/IRENA_REmap_DHC_Report_2017.pdf https://endcoal.org/2017/10/coal-phase-out-first-global- 2017, supplied about 11% of global heating needs in 2013, from Collier, . survey-of-companies-and-political-entities-exiting-coal/ op. cit. note 27. pp. 7, 13. Global Electricity Utilities in 73 Tim Buckley and Simon NIcholas, 92 IRENA, op. cit. note 91, pp. 3, 4, 19-20. (Cleveland, OH: 2017), http://ieefa.org/wp-content/ Transition REFERENCES I uploads/2017/10/IEEFA-Global-Utilities-in-Transition-11-Case- 93 Paul Brown, “District heating warms cities without fossil fuels“, Studies-October-2017.pdf . Ecowatch, 15 January 2018, https://www.ecowatch.com/district- heating-energy-efficiency-2525685749.html . 74 Michael Schack, ENGIE, Paris, personal communication with REN21, 1 March 2018. 94 See endnote 49 in Geothermal Power and Heat section in Market and Industry chapter. Seeding Energies Sustainability Report 2016 Enel, (Rome: 2017), p. 75 115, https://www.enel.com/content/dam/enel-com/investors/2017/ 95 Jan-Olof Dalenback, Chalmers University of Technology, Environmental Report ; Enel, ENG_BDS2016_20170502_4WEB.pdf Goteborg, Sweden, personal communications with REN21, (Rome: 2011), p. 13, 2010 https://www.enel.com/content/dam/ February and March 2018. enel-com/governance_pdf/reports/annual-financial-report/2010/ , op. cit. note 18, Percentage is for 2015, from IEA, Renewables 2017 96 United Nations, “European Enel_Environmental_Report_2010.pdf ; p. 123. energy producers commit to no new coal plants after 2020”, 6 97 Paris operates the largest district cooling network in Europe, April 2017, https://unfccc.int/news/european-energy-producers- using water from the Seine to pre-cool water before it enters commit-to-no-new-coal-plants-after-2020 . electric chillers, enabling a reduction in electricity consumption, 76 Port of Amsterdam, “Port of Amsterdam accelerates energy and meeting 75% of the network’s cooling demand over the h t t p s : // transition”, press release (Amsterdam: 15 March 2017), year. In 2017, Helsinki expanded its district heating and cooling www.portofamsterdam.com/en/press-release/port-amsterdam- plant, already the third largest district cooling system in Europe; . The Port of Amsterdam’s strategic accelerates-energy-transition this is alongside a target for 20% of all heating and cooling to plan includes phasing out trans-shipments of coal by 2030. be renewable by 2020. See City of Helsinki, “Renewable energy IEA, Renewables 2017 , op. cit. note 18, p. 121. 77 https://www.hel.fi/helsinki/en/housing/construction/ sources”, , viewed 10 May 2018, construction-urban/efficiency/renewable/ IRENA, IEA and REN21, 78 Renewable Energy https://www. and HELEN, “Large heat pumps arrive in Helsinki”, Policies in a Time of Transition (Paris: 2018), p. , helen.fi/en/news/2017/large-heat-pumps-arrive-in-helsinki/ http://www.irena.org/publications/2018/Apr/ 34, viewed 10 May 2018. Renewable-energy-policies-in-a-time-of-transition . 98 Collier, op. cit. note 27, pp. 7, 10. 79 Based on IEA, op. cit. note 17. Because the supply of biomass for “Global demand for air conditioning to triple by 2050: Report”, 99 traditional use is informal, obtaining accurate data on its use is https://www.channelnewsasia. Channel NewsAsia, 15 May 2018, difficult. com/news/world/global-demand-for-air-conditioning-to-triple- Based on Ibid. 80 by-2050-report-10236920 ”, https://www.channelnewsasia.com/ 81 , op. cit. note 18. Based on Ibid.; IEA, World Energy Outlook news/world/global-demand-for-air-conditioning-to-triple-by- . 2050-report-10236920 See, for example: NREL, op. cit. note 25; Northeast Energy Efficiency 82 Partnerships, op. cit. note 25; NDRC, NEA, op. cit. note 34. 100 Kigali Cooling Efficiency Program (K-CEP), “Windows to the Future: Window 04 – Access to Cooling”, https://www.k-cep.org/ 83 See, for example: Carlo Roselli et al., “Integration between , viewed 10 May 2018. year-one-report/ electric heat pump and PV system to increase self-consumption Renewable Energy and Environmental of an office application”, 101 The Kigali Amendment to the Montreal Protocol for a global Sustainability https://www.rees-journal. , vol. 2, no. 28 (2017), phase-down of hydrofluorocarbons came into force in November org/articles/rees/full_html/2017/01/rees170038s/rees170038s. 2017. The Kigali Cooling Efficiency Program (K-CEP) is a html ; 4-noks, “Thermal storage: the greenest way to boost PV philanthropic organisation set up to support implementation and self-consumption”, press release (Mossa, Italy: 15 June 2017), promote cooling efficiency and cooling access for all, from “About https://www.pv-magazine.com/press-releases/thermal-storage- K-CEP”, https://www.k-cep.org/year-one-report/ , viewed 10 May . the-greenest-way-to-boost-pv-self-consumption/ h t t p s : // 2018; SEforALL, “Cooling For All”, viewed 28 May 2018, . www.seforall.org/CoolingForAll IEA, 84 Renewables 2017 , op. cit. note 18, p. 12. , op. cit. note 18, p. 660. 102 Calculated from IEA, Renewables 2017 85 Helge Averfalk et al., Transformation Roadmap from High to Bioenergy and other modern renewables contribute 48 Mtoe to , Annex XI (Paris: Low Temperature District Heating Systems industrial and buildings final energy consumption, from a total IEA Technology Collaboration on District Heating and Cooling of 277 Mtoe including 86 Mtoe of electricity (electricity is not https://archive- including Combined Heat and Power, 2017), p. 5, included in the calculation). ouverte.unige.ch/unige:96252 ; US Environmental Protection Agency (EPA), “Renewable heating and cooling: renewable 103 (Abu Renewable Energy Market Analysis: Latin America IRENA, https://www.epa.gov/rhc/renewable- industrial process heat”, http://www.irena.org/DocumentDownloads/ Dhabi: 2016), p. 56, industrial-process-heat , updated 26 October 2017. ; Publications/IRENA_Market_Analysis_Latin_America_2016.pdf Brazil data for 2016 from Ministério de Minas e Energia and Empresa Collier, op. cit. note 27, p. 20. 86 (Brasilia: 2017), Brazilian Energy Balance , de Pesquisa Energética 87 See endnote 3 for Figure 16 in Bioenergy section in Market and . https://ben.epe.gov.br/downloads/relatorio_final_BEN_2017.pdf Industry chapter. 104 , op. cit. note 2017 World Energy Outlook Calculated from IEA, Non-economic barriers to the entry of renewable heat include: 88 18, p. 664. Bioenergy contributes 33 Mtoe to industrial final the technical variety of heat requirements, which limit economies energy consumption, from a total of 77 Mtoe including 17 Mtoe of scale; the complexity of supply chains; the lack of knowledge of electricity (electricity is not included in the calculation). Most about the potential for renewable heating systems; and the lack of bioenergy is from bagasse and is used in the food and drink renewable heat options for consumers. Economic barriers include Renewables 2017 industry, from IEA, , op. cit. note 18, p. 126. the lack of economies of scale leading to higher cost, the higher See Figure 31 in Market and Industry chapter and associated 105 capital cost of renewable heating systems and, in the building endnotes. sector and the “split incentive” between building owners and tenants. IRENA, IEA and REN21, op. cit. note 78, p. 21; Collier, op. Excludes traditional biomass. IEA, 106 Renewables 2017 , op. cit. note 18 , cit. note 27, p. 15. p. 123. 243

244 ENDNOTES GLOBAL OVERVIEW · 01 01 107 Ibid., p. 123. org/content/first-cooling-installation-indian-government- building , 10 April 2018; Barbel Epp, “IKEA stores begin to EC, “The revised renewable energy directive, 2017”, h t t p s : // 108 switch over to solar heating and cooling”, solarthermalworld, ec.europa.eu/energy/sites/ener/files/documents/technical_ http://www.solarthermalworld.org/content/ 13 February 2018, viewed 16 March 2018. memo_renewables.pdf , ikea-stores-begin-switch-over-solar-heating-and-cooling . EUROSTAT, “Renewable energy statistics”, 109 http://ec.europa.eu/ 121 See endnote 77 in Distributed Renewables chapter. eurostat/statistics-explained/index.php/Renewable_energy_ 122 Two-thirds of energy use in sub-Saharan Africa is residential, statistics#Share_of_energy_from_renewable_sources_-_ GLOBAL OVERVIEW with most of that for cooking, and traditional biomass, mostly heating_and_cooling , updated 2 February 2018. cooking, accounted for 70% of final energy use in 2014, from See endnote 5 in Solar Thermal Heating and Cooling section 110 Africa Energy Outlook. World Energy Outlook Special Report IEA, in Market and Industry chapter. The countries were Germany, http://www.iea.org/publications/ (Paris: 2014), pp. 45, 121, Greece, Spain, Italy, Poland, Austria and France. freepublications/publication/WEO2014_AfricaEnergyOutlook.pdf . See endnote 52 in Solar Thermal Heating and Cooling section and 111 More than 58,000 biogas cook stoves were installed by the end endnote 49 in Geothermal Power and Heat section in Market and of 2016, from Africa Biogas Partnership Programme, “Progress REFERENCES I Industry chapter. tracker”, http://www.africabiogas.org/ , updated 20 September Excludes traditional biomass. Data based on IEA, Renewables 112 2016. , op. cit. note 18, p. 123. 2017 123 See Figure 31 in Market and Industry chapter and associated endnotes. 113 Bioenergy use in industry experienced a decline of 14% from 2007 to 2009, with no growth since, from Ibid., pp. 123, 126. See endnote 77 in Distributed Renewables chapter. 124 114 See endnote 5 in Solar Thermal Heating and Cooling section in Barbel Epp, “SHC 2017: Largest experts’ meeting on integrated 125 Market and Industry chapter. solar heating and cooling”, solarthermalworld, 8 November 2017, http://www.solarthermalworld.org/content/shc-2017-largest- See, for example: New York State Energy Research and 115 . experts-meeting-integrated-solar-heating-and-cooling Development Authority, “Clean heating and cooling”, h t t p s : // www.nyserda.ny.gov/Researchers-and-Policymakers/Clean- The German chiller manufacturer Fahrenheit installed a 10 kW 126 Massachusetts Department of Energy Heating-and-Cooling; sorption chiller in 2017 at a waste heat recovery company in Dubai Resources, Commonwealth Accelerated Renewable Thermal and announced the construction of a second demonstration (Boston: January 2014), Strategy ht tp://www.mass.gov/eea/docs/ plant at a Saudi Arabian research institute for 2018, from Bashir Meister Consultants, ; doer/renewables/thermal/carts-report.pdf Kanawati, Fahrenheit, Halle, Germany, personal communication Rhode Island Renewable Thermal Market Development Strategy with REN21, March 2018; TVP Solar, a Swiss manufacturer of http://www.synapse-energy.com/sites/ (Boston: January 2017), evacuated flat plate collectors, commissioned a solar thermal default/files/RI-Renewable-Thermal-15-119.pdf ; Yale Center for cooling system at the headquarters of a logistic company in 2 Business and the Environment, “Research: feasibility of renewable collector field and a 34 refrigeration ton Kuwait with a 234 m https://cbey.yale.edu/ thermal technologies in Connecticut”, chiller in 2017, from Jonathan Koifman, TVP Solar, Satigny, programs-research/feasibility-of-renewable-thermal-technologies- Switzerland, personal communication with REN21, March 2018. in-connecticut NREL, op. cit. note 25; Northeast Energy Efficiency ; 127 The 100 MW steam plant for enhanced oil recovery was Northeastern Regional Assessment of Strategic Partnerships, commissioned by US-based GlassPoint in late 2017. The plant’s http://www.neep.org/ Electrification (Lexington, MA: July 2017), current capacity was derived from four steam-producing blocks . reports/strategic-electrification-assessment – one-tenth of the final system size requested by state-owned Natural Resources Canada, “Canada bioheat survey results 116 Petroleum Development Oman, from “Petroleum Development https://www.nrcan.gc.ca/energy/renewable-electricity/ 2016”, Oman and GlassPoint announce commencement of steam , viewed 22 March 2018; Wood bioenergy-systems/7311 delivery from Miraah Solar Plant”, Businesswire, 1 November 2017, Global Pellet Outlook 2017 Pellet Association of Canada, https://www.businesswire.com/news/home/20171101005644/ https://www.pellet.org/wpac-news/ (Revelstoke, BC: 2017), en/Petroleum-Development-Oman-GlassPoint-Announce- global-pellet-market-outlook-in-2017 . Commencement-Steam . 117 Oiwan Lam, “In fight against smog, China bans coal in 28 cities”, Based on IEA, op. cit. note 17. 128 , 14 October 2017, Hong Kong Free Press https://www.hongkongfp. Based on total final consumption for transport, from IEA, 129 com/2017/10/14/fight-smog-china-bans-coal-28-cities/ . The World Energy Outlook 2017 , op. cit. note 18, pp. 648, 664; hard winter and a shortage of gas led to the ban being reversed, IEA, Renewables 2017 , op. cit. note 18, p. 25. but the commitment remains, albeit over a four-year time span 130 Global Law Initiatives for Sustainable Development, “COP23 and with greater emphasis on wood pellets rather than gas. introduced new transport alliances supporting climate action”, See Arthur Wyns and Katharina Wecker, “China’s U-turn on http://www.glawcal.org.uk/news/cop23-introduced-new-transport- rapid end to coal heating”, DW-Online, 15 December 2017, alliances-supporting-climate-action , viewed 22 May 2018. http://www.dw.com/en/chinas-u-turn-on-rapid-end-to-coal- ; Chi Dehua, “China targets clean winter heating/a-41816867 Laszlo Varro, IEA, “Energy technology and oil in the transport 131 heating by 2021”, GBTimes, 18 December 2017, https://gbtimes. h t t p s : // sector”, presentation, Brussels, 2 February 2017, p. 2, com/china-targets-clean-winter-heating-by-2021 ; Lauri Myllyvirta ec.europa.eu/energy/sites/ener/files/documents/rf_20170202_ and Xinyi Shen, “China plans to cut coal heating again, but can iea.pdf . h t t p s : // it avoid another crisis?” Unearthed, 10 January 2018, International Civil Aviation Organisation (ICAO), “ICAO Council 132 unearthed.greenpeace.org/2018/01/10/china-coal-heating- 2 emissions standard for aircraft”, 6 March 2017, adopts new CO . China’s Clean Winter Heating Plan also winter-crisis-pollution/ https://www.icao.int/Newsroom/Pages/ICAO-Council-adopts- was published, which set targets to approximately double the new-CO2-emissions-standard-for-aircraft.aspx ; International floor areas heated by biomass, geothermal and natural gas, all Maritime Organization, “UN body adopts climate change strategy at the expense of coal heating, from China Energy Portal, “Clean for shipping”, 13 April 2018, http://www.imo.org/en/MediaCentre/ winter heating plan for Northern China (2017-2021)”, 5 December PressBriefings/Pages/06GHGinitialstrategy.aspx . 2017, https://chinaenergyportal.org/en/clean-winter-heating- 133 “Dieselgate forces VW to embrace green mobility”, Clean Energy . China’s 13th Five-Year Plan plan-for-northern-china-2017-2021/ Wire, 15 September 2017, https://www.cleanenergywire.org/ calls for solar thermal energy to cover 2% of the cooling load in factsheets/dieselgate-forces-vw-embrace-green-mobility . buildings by 2020, and initial market impacts were seen in late Jackie Wattles, “India to sell only electric cars by 2030”, 134 CNN , 2017, with the announcement of plans for two large installations. 3 June 2017, http://money.cnn.com/2017/06/03/technology/ 118 Bärbel Epp, “Solar industrial heat market – a 2017 survey”, future/india-electric-cars/index.html; Janene Pieters, “New http://www.solarthermalworld. solarthermalworld, 26 April 2018, Netherlands Dutch Government’s plans for the coming years”, . org/content/solar-industrial-heat-market-2017-survey , 10 October 2017, https://nltimes.nl/2017/10/10/new- Times Bärbel Epp, “India: Flat plates up, concentrating 119 dutch-governments-plans-coming-years ; STA, “Slovenia to ban technologies down”, solarthermalworld, 1 March 2018, sale of new petrol and diesel cars from 2030”, 12 October 2017, http://www.solarthermalworld.org/taxonomy/term/45581 . https://english.sta.si/2438514/slovenia-to-ban-sale-of-new- Jaideep Malaviya, “First cooling installation on Indian government 120 petrol-and-diesel-cars-from-2030 ; Angelique Chrisafis and http://www.solarthermalworld. building”, solarthermalworld, Adam Vaughan, “France to ban sale of petrol and diesel cars by 244

245 GLOBAL OVERVIEW ENDNOTES · 01 01 (UK), 6 July 2017, The Guardian 2040”, https://www.theguardian. 2017; Bundesministerium für Verkehr und digitale Infrastruktur, com/business/2017/jul/06/france-ban-petrol-diesel-cars-2040- Förderrichtlinie Ladeinfrastruktur für Elektrofahrzeuge in emmanuel-macron-volvo ; Anushka Asthana and Matthew Taylor, https://www.bav.bund.de/ (Berlin: 2017), Deutschland “Britain to ban sale of all diesel and petrol cars and vans from SharedDocs/Downloads/DE/Foerderung_Ladeinfrastruktur/ 2040”, https://www.theguardian. (UK), 25 July 2017, The Guardian Foerderrichtlinie.pdf?__blob=publicationFile&v=6 . com/politics/2017/jul/25/britain-to-ban-sale-of-all-diesel-and- 148 Shares calculated from US Energy Information Administration petrol-cars-and-vans-from-2040 . (EIA), (Washington, DC: International Energy Outlook 2017 135 The Climate Group, "Multinationals launch global program to GLOBAL OVERVIEW 2017), “Transportation sector passenger transport and energy speed up switch to electric vehicles", press release (New York: https://www.eia.gov/ consumption by region and mode”, 19 September 2017), https://www.theclimategroup.org/news/ outlooks/aeo/data/browser/#/?id=50-IEO2017®ion=0-0&cas multinationals-launch-global-program-speed-switch-electric-vehicles . es=Reference&start=2010&end=2020&f=A&linechart=Refere Huizenga, op. cit. note 32; Adam Vaughan, “All Volvo cars to 136 and “Transportation nce-d082317.2-50-IEO2017&sourcekey=0 (UK), 5 July be electric or hybrid from 2019”, The Guardian sector freight transport energy consumption by region and mode”, 2017, https://www.theguardian.com/business/2017/jul/05/ https://www.eia.gov/outlooks/aeo/data/browser/#/?id=51-IEO20 REFERENCES I volvo-cars-electric-hybrid-2019 . , both viewed 28 March 2018. 17&cases=Reference&sourcekey=0 137 IRENA, IEA and REN21, op. cit. note 78, p. 23. 149 Olaf Merk, “Climate change: what about shipping”, Medium, op. cit. note 17. 138 Based on IEA, https://medium.com/@OECD/climate-change-what-about- shipping-471a13444fdd , viewed 22 May 2018. Based on Ibid. 139 Qiu Quanlin, “Fully electric cargo ship launched in Guangzhou”, 150 140 (Paris: 2018), pp. Oil 2018 – Analysis and Forecasts to 2023 IEA, , 14 November 2017, http://www.chinadaily.com.cn/ China Daily http://www.oecd.org/publications/market-report-series- 77, 134, ; ABB, “HH Ferries business/2017-11/14/content_34511312.htm oil-25202707.htm . electrified by ABB win prestigious Baltic Sea Clean Maritime The BioFuture Platform is an international initiative launched 141 Award 2017”, press release (Zurich: 14 June 2017), http://new. by the Government of Brazil in 2016 now involving 20 countries: abb.com/news/detail/1688/HH-ferries-electrified-by-ABB-win- Argentina, Brazil, Canada, China, Denmark, Egypt, Finland, ; Fred Lambert, prestigious-baltic-sea-clean-maritime-award-2017 France, India, Indonesia, Italy, Morocco, Mozambique, the “Two massive ferries are about to become the biggest all-electric Netherlands, Paraguay, the Philippines, Sweden, the United https://electrek. ships in the world”, Electrek, 24 August 2017, Kingdom, the United States and Uruguay. The initiative is a . co/2017/08/24/all-electric-ferries-abb/ country-led, multi-stakeholder mechanism for policy dialogue and collaboration among leading countries, organisations, 151 “Marine biofuels pilot project to be launched in academia and the private sector; see www.biofutureplatform. Singapore”, World Maritime News , 22 September 2017, . Mission Innovation is a global initiative involving 22 countries org https://worldmaritimenews.com/archives/230547/ and the EU that aims to dramatically accelerate global clean . marine-biofuels-pilot-project-to-be-launched-in-singapore/ energy innovation, and includes a commitment by participating 152 Shares calculated from EIA, op. cit. note 148, both sources. countries to double government spending on clean energy R&D investments over five years, while encouraging greater levels ICAO, “Climate Change: State Action Plans and Assistance”, 153 of private sector investment in transformative clean energy https://www.icao.int/environmental-protection/Pages/ technologies. Within this initiative, seven specific technology , viewed 2 June 2018. ClimateChange_ActionPlan.aspx challenges have been identified, including a Sustainable Biofuels h t t p s : // 154 ICAO “Global Framework for Aviation Alternative Fuels”, Innovation Challenge to develop ways to produce at scale widely www.icao.int/environmental-protection/GFAAF/Pages/default. affordable advanced biofuels for transportation and industrial , viewed 16 March 2018. aspx applications. This Challenge is co-led by Brazil, Canada, China 155 “Norway aims for all short-haul flights to be 100% electric by and India, with Australia, the EC, Finland, France, Indonesia, Italy, Mexico, the Netherlands, Norway, Sweden, the United Kingdom https://www. (UK), 18 January 2018, The Guardian 2040, AFP”, and the United States, from Mission Innovation, “Sustainable theguardian.com/world/2018/jan/18/norway-aims-for-all-short- Biofuels Innovation Challenge”, http://mission-innovation.net/ ; Norway’s electricity haul-flights-to-be-100-electric-by-2040 . our-work/innovation-challenges/sustainable-biofuels-challenge/ supply (2016 data) from IEA, “Norway – Energy System Overview. https://www.iea.org/media/countries/Norway.pdf . 2017 ”, IRENA, IEA and REN21, op. cit. note 78; “Japan is 142 betting future cars will use hydrogen fuel cells”, IEA and International Union of Railways, 156 Railway Handbook 2017, , 24 October 2017, Financial Times https://www.ft.com/ , (Paris: 2017), p. 26, Energy Consumption and CO2 Emissions . content/98080634-a1d6-11e7-8d56-98a09be71849 https://uic.org/uic-iea-railway-handbook . 143 IEA, op. cit. note 17. Ibid., p. 26. 157 Huizenga, op. cit. note 32; Andrew Hawkins, “This 144 158 Ibid., p. 26. electric truck startup thinks it can beat Tesla to market”, 159 Caughill, op. cit. note 146. The Verge, 15 December 2017, https://www.theverge. ; com/2017/12/15/16773226/thor-trucks-electric-truck-etone-tesla 160 “18 new biodiesel fuelled trains coming to the Netherlands”, CNN Miquel Ros, “7 electric aircraft you could be flying in soon”, https://biofuels-news.com/ , 13 July 2017, Biofuels International , 21 November 2017, Travel https://edition.cnn.com/travel/article/ display_news/12601/18_new_biodiesel_fuelled_trains_coming_ electric-aircraft/index.html . . to_the_netherlands/ Adam Vaughan, “Electric and plug-in hybrid cars whiz past 145 Road transport includes light-duty vehicles (44% of overall energy 161 The Guardian (UK), 25 December 2017, 3m mark worldwide”, use), trucks (23%); buses (4%) and two- and three-wheelers (2%), https://www.theguardian.com/environment/2017/dec/25/ from EIA, op. cit. note 148, both sources. . electric-and-plug-in-hybrid-cars-3m-worldwide IEA, op. cit. note 140, pp. 133, 134. Ethanol and biodiesel converted 162 Patrick Caughill, “All Dutch trains now run on 100% wind power”, 146 to barrels of oil equivalent for overall biofuel percentages, using http://uk.businessinsider.com/ Business Insider, 3 June 2017, a conversion rate of 1 barrel ethanol = 0.58 barrels of oil, 1 barrel wind-power-trains-in-netherlands-2017-6?r=US&IR=T ; TNN, biodiesel = 0.86 barrel oil, from BP, “Approximate conversion , Times of India “Solar energy to power Delhi Metro’s Phase Iii”, factors: Statistical Review of World Energy”, https://www.bp.com/ https://timesofindia.indiatimes.com/city/delhi/ 24 April 2017, content/dam/bp/en/corporate/pdf/energy-economics/statistical- ; solar-energy-to-power-metro-ph-iii/articleshow/58332740.cms review-2017/bp-statistical-review-of%20world%20energy-2017- Saurabh Mahapatra, “Chile’s Santiago Metro will meet 60% of . approximate-conversion-factors.pdf its energy demand from renewables”, CleanTechnica, 8 July 2017, https://cleantechnica.com/2017/07/08/chiles-santiago-metro- 163 Numbers of gas vehicles in 2018 from NGV Global, “Current . will-meet-60-energy-demand-renewables/ natural gas vehicle statistics”, http://www.iangv.org/current- ngv-stats/ , viewed 25 May 2018, viewed 28 March 2017; IANS, 147 Osterreichischer Automobil-, Motorradund Touringclub (OAMTC), “ Biogas bus launched In Kolkata”, Financial Express , “E-Autos werden mit 4.000 Euro pro Pkw gefordert”, h t t p s : // 31 March 2017, http://www.financialexpress.com/india-news/ www.oeamtc.at/thema/elektromobilitaet/e-autos-werdenmit- biogas-bus-launched-in-kolkata/609690/ . 4-000-euro-pro-pkwgefoerdert-17579318 , viewed 27 April 245

246 GLOBAL OVERVIEW ENDNOTES · 01 01 IEA, op. cit. note 140, pp. 77, 133, 134. China: EV sales in China increased 69% in 2017, to 0.6 million 176 164 vehicles, and accounted for just under half of the global total, Cecilia Demartini, “Electric vehicles: Latin America joins the 177 from EV-Volumes, “China Plug-in Sales for 2017-Q4 and Full http://via.news/ December 2017, global trend”, VIA news, 27 Year – Update”, http://www.ev-volumes.com/country/china/ , . south-america/electric-vehicles-latin-america-joins-global-trend/ viewed 28 March 2018. India announced in 2017 that it is India: 178 Inés Acosta, “Uruguay’s public transport goes electric”, Inter targeting 100% electric public transport. Electrification of public Press Service, 24 March 2014, http://www.ipsnews.net/2014/03/ transport is a priority in the second phase of the Faster Adoption ; Veronica Firme, uruguays-public-transport-goes-electric/ and Manufacturing of Hybrid and Electric vehicles in India (FAME GLOBAL OVERVIEW “Uruguay puts high priority on renewable energies”, Inter Press India) scheme, starting end-March 2018, and 11 cities including http://www.ipsnews.net/2015/11/ Service, 17 November 2015, Delhi, Ahmedabad, Bengaluru, Jaipur, Mumbai, Lucknow, uruguay-puts-high-priority-on-renewable-energies/ . Hyderabad, Indore, Kolkata, Jammu and Guwahati have been 179 IEA, “Bioenergy workshop: Political and regulatory selected for funding as a pilot phase, from “Government eyes issues related to Bio-CC(U)S”, 16 January 2018, , Economic Times 100% electric public transport through FAME II”, http://task41project5.ieabioenergy.com/ieaevent/ 28 December 2017, https://economictimes.indiatimes.com/news/ REFERENCES I market-regulatory-issues-related-bio-ccus/ . economy/policy/government-eyes-100-electric-public-transport- Thailand’s Thailand: . through-fame-ii/articleshow/62272108.cms Nigeria: 180 “Nigeria invests In new bioethanol plant as it diversifies Board of Investment approved promotional privileges for hybrid, away from oil”, Biofuels International , 24 November 2017 h t t p s : // PHEV, and EV manufacturers, from Danny Tan, “Thai incentives biofuels-news.com/display_news/13186/nigeria_invests_in_ for hybrids, PHEVs, EVs include tax holidays – excise tax for new_bioethanol_plant_as_it_diversifies_away_from_oil/ ; imported green cars slashed”, Paultan.org, 4 April 2017, h t t p s : // Nigerian National Petroleum Company, “NNPC, Kebbi State paultan.org/2017/04/04/thai-incentives-for-hybrids-phevs- h t t p : // partner on 84 million litres of fuel-ethanol project”, evs-include-tax-holidays-excise-tax-for-imported-green-cars- nnpcgroup.com/PublicRelations/NNPCinthenews/tabid/92/ . slashed/ Malaysia: Following Malaysia’s 2016 announcement articleType/ArticleView/articleId/892/NNPC-Kebbi-State- of a target of 100,000 electric passenger cars and 2,000 , Partner-on-84million-Litres-of-Fuel-Ethanol-Project.aspx electric buses by 2020, the country’s Minister of Energy, Green “Sunbird Bioenergy Africa updated 23 November 2017. Zambia: Technology and Water announced in 2017 a goal to become a launches cassava outgrower programme for bio ethanol project”, “marketing hub” for EVs, from Mark Kane, “Malaysia sets target Biofuels International , 3 August 2017, https://biofuels-news. of 100,000 EV by 2020”, Inside EVs, 8 August 2016, h t t p s : // com/display_news/12705/sunbird_bioenergy_africa_launches_ cassava_outgrower_programme_for_bioethanol_project/ ; insideevs.com/malaysia-sets-target-of-100000-ev-by-2020/ , and http://www. Sunbird Bioenergy, “Zambia, Kawambwa”, from Bernama, “Malaysia to become marketing hub for electric , viewed sunbirdbioenergy.com/projects/zambia-kawambwa/ vehicles – Ongkili”, 11 April 2017, http://www.bernama.com/en/ 30 May 2018. general/news.php?id=1346565 . 181 Wheels 24, “Electric vehicles in SA: uptake of EVs slow but See Reference Table R8. 165 steady”, 16 January 2018, http://www.wheels24.co.za/News/ Based on biofuels data in IEA, op. cit. note 140, supplemented by 166 Gear_and_Tech/electric-vehicles-in-sa-uptake-of-evs-slow- national data as referenced below. Ethanol data based on idem, but-steady-20180116 ; Tyler Leigh Vivier, “MyCiti has launched pp. 133-134. their first electric bus, a milestone for the City of Cape Town”, Biogas for Road Vehicles. Home to largest producers from IRENA, 167 goodthingsguy.com, 29 September 2017, https://www. http://www.irena. (Abu Dhabi: 2017), p. 2, 8, Technology Brief . goodthingsguy.com/environment/first-electric-bus/ org/-/media/Files/IRENA/Agency/Publication/2017/Mar/IRENA_ See Market and Industry chapter, Reference Table R1 and related 182 ; increase in production from Biogas_for_Road_Vehicles_2017.pdf endnotes for details. http://ec.europa.eu/eurostat/ Eurostat, “SHARES (Renewables)”, 183 Nearly 55% based on solar PV additions of about 98 GW, and web/energy/data/shares , viewed 4 April 2018; IEA, Bioenergy total renewable energy additions of about 178 GW, from Market Task 37 (Biogas) Country Reports 2017 (Paris: 2017), h t t p : // t a s k 3 7. and Industry chapter, Reference Table R1 and related endnotes. . ieabioenergy.com/country-reports.html 184 Solar PV based on data from IEA Photovoltaic Power Systems 168 EV-Volumes, “Europe Plug-in Vehicle Sales for Q4 and 2017 Full Snapshot of Global Photovoltaic Markets Programme (PVPS), http://www.ev-volumes.com/country/total-euefta-plug-in- Year ”, 2018 (Paris: April 2018), p. 4, http://www.iea-pvps.org/fileadmin/ vehicle-volumes-2/ , viewed 28 March 2018. dam/public/report/statistics/IEA-PVPS_-_A_Snapshot_of_ Ibid. 169 Global_PV_-_1992-2017.pdf ; fossil fuels from FS-UNEP and BNEF, Elisa Asmelash and Remi Cerdan, “Electric vehicles enabling 170 op. cit. note 31, p. 34; nuclear power from International Atomic renewable energy”, Revolve , viewed 28 May 2018, http://revolve. Energy Agency (IAEA), “Nuclear power capacity trend”, Power ; Agora media/electric-vehicles-enabling-renewable-energy/ Reactor Information System database, https://www.iaea.org/PRIS/ Energiewende and Sandbag, op. cit. note 61, p. 37. WorldStatistics/WorldTrendNuclearPowerCapacity.aspx , updated 7 May 2018. IEA, op. cit. note 140, pp. 77, 133, 134. Also see endnote 56 in 171 Bioenergy section in Market and Industry chapter. See Market and Industry chapter, Reference Table R1 and related 185 endnotes for details. 172 Based on data in US EPA, “RIN generation and renewable fuel https://www. volume production by fuel type from January 2017”, 186 Based on data in this GSR and from the following sources: CSP epa.gov/fuels-registration-reporting-and-compliance-help/ data compiled from New Energy Update, “CSP today global , updated spreadsheet-rin-generation-and-renewable-fuel-0 tracker”, , http://tracker.newenergyupdate.com/tracker/projects February 2018. Also see endnote 83 in Bioenergy section in viewed on numerous dates leading up to 27 April 2018; NREL, Market and Industry chapter. https://www.nrel.gov/csp/ “Concentrating solar power projects”, solarpaces/ , with the page and its subpages viewed on numerous 173 Anna Hirtenstein, “Global electric car sales jump 63 percent”, dates leading up to 27 April 2018; REN21, Renewables 2017 https://www.bloomberg.com/ Bloomberg , 21 November 2017, Global Status Report (Paris: 2017), pp. 72-74, 171, h t t p : // news/articles/2017-11-21/global-electric-car-sales-jump-63- www.ren21.net/wp-content/uploads/2017/06/17-8399_ ; Eric Schmidt, “Electric vehicle percent-as-china-demand-surges GSR_2017_Full_Report_0621_Opt.pdf ; CSP World, “CSP world sales In Canada, 2017”, h t t p s : // Fleet Carma, 8 February 2018, , with the page and http://cspworld.org/cspworldmap map”, ; www.fleetcarma.com/electric-vehicle-sales-canada-2017/ its subpages viewed on numerous dates leading up to 3 April EV-Volumes, “Global Plug-in Vehicle Sales for 2017 – Final (Abu Dhabi: Renewable Capacity Statistics 2018 2018; IRENA, Results”, http://www.ev-volumes.com/country/total-world-plug- http://www.irena.org/publications/2018/Mar/Renewable- 2018), in-vehicle-volumes/ , viewed 28 March 2018. Capacity-Statistics-2018 ; Luis Crespo, European Solar Thermal Bioenergy Task 37 Country Reports: Mercosur Region 2016 174 IEA, Electricity Association, Brussels, personal communication with (Paris: 2016), http://task37.ieabioenergy.com/country-reports.html Trends in REN21, 20 April 2018. Solar PV data from IEA PVPS, 175 IEA, op. cit. note 140, pp. 77, 133, 134. Ethanol and biodiesel Photovoltaic Applications, 2016: Survey Report of Selected IEA converted to barrels of oil equivalent for overall biofuel Countries Between 1992 and 2016 (Paris: 2017), pp. 74-75, percentages, using a conversion rate of 1 barrel ethanol = 0.58 http://iea-pvps.org/fileadmin/dam/public/report/statistics/ barrels of oil, 1 barrel biodiesel = 0.86 barrel oil from BP Statistical IEA-PVPS_Trends_2017_in_Photovoltaic_Applications.pdf , . Review of World Energy, op. cit. note 162 and from IEA PVPS, op. cit. note 184, p. 4. Wind power capacity 246

247 ENDNOTES · 01 GLOBAL OVERVIEW 01 generation of 87.7 TWh from IEA, Renewables 2017 , op. cit. power Global Wind from Global Wind Energy Council (GWEC), generation of 1.1 TWh from idem. Bio- Ocean energy note 18. (Brussels: April 2018), Report – Annual Market Update 2017 generation of 555 TWh from note 35 in Bioenergy section power http://files.gwec.net/files/GWR2017.pdf p. 17, . Remaining technologies from IRENA, “Renewable Electricity Capacity and Figure 6 in Market and Industry chapter. based on all sources in http://resourceirena.irena.org/gateway/ Generation Statistics”, this note. , viewed 7 May 2018. For more dashboard/?topic=4&subTopic=54 Renewable Power Generation Costs in 2017 IRENA, 189 (Abu Dhabi: on renewable power capacity in 2017, see Reference Table R1, 2018), https://www.irena.org/-/media/Files/IRENA/Agency/ technology sections in Market and Industry chapter and related . Publication/2018/Jan/IRENA_2017_Power_Costs_2018.pdf GLOBAL OVERVIEW endnotes. based on idem, all sources. Figure 5 190 Ibid., pp. 16, 23. Share of net additions in 2017 is based on estimated net total 187 Ibid., p. 17. 191 of 178 GW of renewable capacity added and on assumed net Wind power from Steve Sawyer, GWEC, personal communication 192 additions of 74.23 GW of fossil fuel and nuclear power capacity, with REN21, 8 February 2018, and from GWEC, op. cit. note 186, p. for a total of 252 GW of global net additions, of which renewables 17. See also: Gillian Steward, “Alberta leads the pack with cheap account for 70.6%. Estimate for nuclear and fossil fuels is based REFERENCES I wind power; more to come”, Renewable Energy World, 21 February on the following: net capacity additions of 35 GW of coal and 2018, https://www.renewableenergyworld.com/articles/2018/02/ 38 GW of natural gas, from FS-UNEP Centre and BNEF, op. alberta-leads-the-pack-with-cheap-wind-power-more-to-come. cit. note 31, p. 34 (calculation does not include net reductions html ; “Wind joins pricing race with solar”, Bridge to India, 9 October in oil-fired generating capacity, totalling 3 GW, from idem). Net ; 2017, http://www.bridgetoindia.com/wind-joins-pricing-race-solar/ nuclear capacity increase of 1.23 GW based on year-end 2016 FS-UNEP and BNEF, op. cit. note 31, pp. 11, 34, 40; FTI Consulting, and year-end 2017 cumulative operational capacity, from IAEA, “Vestas Holds the Top Spot in Global Wind Turbine Supplier op. cit. note 184. For more detail on renewable power capacity Ranking in 2017”, 26 February 2018, http://www.fticonsulting.com/ in 2017, see Reference Table R1, technology sections in Market about/newsroom/press-releases/vestas-holds-the-top-spot-in- and Industry chapter and related endnotes. Renewable power global-wind-turbine-supplier-ranking-in-2017 . Solar PV from, for capacity share of net additions in 2016 based on data for total FS-UNEP and BNEF, op. cit. note 31, pp. 11, 34; Emiliano example: global power capacity at end-2015 and end-2016, from IEA, World Bellini, “Lowest solar bid in Argentina’s latest RE auction reaches , op. cit. note 18, p. 650, and on data for total 2017 Energy Outlook PV Magazine , 24 November 2017, https://www. $40.4/MWh”, global renewable power capacity at end-2015 and end-2016, from pv-magazine.com/2017/11/24/lowest-solar-bid-in-argentinas- sources provided in endnote 186. latest-re-auction-reaches-40-4mwh/ ; Anindya Upadhyay and 188 Total capacity based on data provided throughout this report. Rajesh Kumar Singh, “Cheaper solar in India prompts rethink for See Market and Industry chapter, Reference Table R1 and related , 1 June 2017, coal projects”, Bloomberg https://www.bloomberg. endnotes for details and sources. Share of generation based com/news/articles/2017-06-01/cheaper-solar-in-india-prompts- on the following: total global electricity generation in 2017 is rethink-for-more-coal-projects ; Tom Kenning, “Yet another India estimated at 25,518 TWh, based on 24,765 TWh in 2016 from solar tariff record of 2.44 rupees in Rajasthan”, PV-Tech, 12 May 2017 , op. cit. note 18, and on estimated IEA, World Energy Outlook 2017, https://www.pv-tech.org/news/yet-another-india-solar-tariff- 3.04% growth in global electricity generation in 2017. Growth record-of-2.44-rupees-in-rajasthan ; Anu Bhambhani, “World’s rate is based on the weighted average actual change in total lowest solar price offer in technical bid of 300 MW Sakaka PV generation for the following countries/regions (which together Taiyang project in Saudi Arabia offered at 1.79 US cents/kWh”, account for nearly two-thirds of global generation in 2016): United , 5 October 2017, http://taiyangnews.info/markets/record- News States (-1.52% net generation), EU (+2.88%), Russian Federation low-solar-bid/ . See Solar PV and Wind Power sections of Market (+0.52%), India (+7.67%), China (+5.9%) and Brazil (+1.02%). and Industry chapter for more information and sources. Generation data for 2016 and 2017 by country or region from the following: EIA, Electric Power Monthly with Data for December 193 See, for example, David Weston, “UK offshore falls to £57. 50 in 2017 (Washington, DC: February 2018), Table 1.1; EC, Eurostat , 11 September 2017, h t t p : // latest CfD round”, Windpower Offshore http://ec.europa.eu/eurostat database, , viewed May 2018; System www.windpoweroffshore.com/article/1444146/uk-offshore-falls- Report on the Operator of the Unified Energy System of Russia, 5750-latest-cfd-round ; FTI Consulting, op. cit. note 192; BMWi, (Moscow: 31 January 2018), Unified Energy System in 2017 h t t p : // https://www.bundesnetzagentur.de/ “Windenergieanlagen auf See”, www.so-ups.ru/fileadmin/files/company/reports/disclosure/2018/ DE/Sachgebiete/ElektrizitaetundGas/Unternehmen_Institutionen/ ; Government of India, Ministry of Power, ups_rep2017.pdf Ausschreibungen/Offshore/offshore-node.html , viewed 17 April Central Electricity Authority (CEA), “Monthly generation report”, 2018; Tino Andresen, “Offshore wind farms offer subsidy-free power http://www.cea.nic.in/monthlyarchive.html , viewed April 2018; for first time”, , 13 April 2017, https://www.bloomberg.com/ Bloomberg National Bureau of Statistics of China, “Statistical communiqué news/articles/2017-04-13/germany-gets-bids-for-first-subsidy-free- of the People’s Republic of China on the 2017 national economic ; David Weston, “Vattenfall bids in no-subsidy offshore-wind-farms and social development”, press release (Beijing: 28 February Windpower Offshore Dutch tender”, , 15 December 2017, h t t p s : // 2018), http://www.stats.gov.cn/english/PressRelease/201802/ www.windpoweroffshore.com/article/1452992/vattenfall-bids-no- t20180228_1585666.html (using Google Translate); National For more information, see Wind Power section . subsidy-duch-tender http://www.ons.org.br/ Electrical System Operator of Brazil (ONS), in Market and Industry chapter. Paginas/resultados-da-operacao/historico-da-operacao/geracao_ 194 Solar or wind plus batteries is now competitive with gas peaking generation in 2017 energia.aspx Hydropower , viewed April 2018. plants in Australia, India and the United States, from Giles of 4,184 TWh from International Hydropower Association (IHA) Parkinson, “Solar, wind and batteries are killing market for new personal communications with REN21, March-April 2018. CSP gas plants”, RenewEconomy, 9 April 2018, https://reneweconomy. estimated at 11.9 TWh, based on preliminary data for Spain (5,375 com.au/solar-wind-batteries-killing-market-new-gas- The Spanish Electricity GWh) from Red Eléctrica de España (REE), plants-57621/ ; Australia also from Reputex, “The Energy Trilemma System – Preliminary Report 2017 (Madrid: 5 February 2018), with – a cost curve for abatement & energy storage in Australia”, 8 estimated data as of 13 December 2017, p. 4, http://www.ree.es/ March 2018, http://www.reputex.com/research-insights/update- en/statistical-data-of-spanish-electrical-system/annual-report/ the-energy-trilemma-a-cost-curve-for-abatement-energy- spanish-electricity-system-preliminary-report-2017 ; US generation . See also Colorado, from Martin Rosenberg, storage-in-australia/ (3,269 GWh) from EIA, op. cit. this note, Table 1.18.B, and projected , Energy Times “Batteries out-distance gas-burning generators”, global generation in 2017 for rest of world (3,251 GWh) from IEA, 14 February 2018, http://www.theenergytimes.com/solar/ worldwide production Renewables 2017 , op. cit. note 18. Solar PV . batteries-out-distance-gas-burning-generators potential of 494 TWh, from Gaëtan Masson, Becquerel Institute Craig Morris, “Share of German citizen renewable energy shrinking”, 195 and IEA PVPS, personal communication with REN21, 29 March Energy Transition, 7 February 2018, https://energytransition. 2018; and potential close to 500 TWh, from IEA PVPS, op. cit. note org/2018/02/share-of-german-citizen-renewable-energy-shrinking/ . 184, pp. 4, 12-15. Estimates for electricity generation from Masson Citizens (households and farms) accounted for 42.5% of and IEA PVPS are theoretical calculations based on average yield investments in renewable energy through 2016, down from 27% and installed solar PV capacity as of 31 December 2017. Wind through the end of 2012, from Trend Research, cited in idem. generation estimated at 1,430 TWh based on capacity power 196 European Wind Energy Association, Design Options for Wind at end-2017 from GWEC, op. cit. note 186, p. 17, and on weighted average capacity factors by region, and for both onshore and Energy Tenders (Brussels: December 2015), p. 8, http://www. offshore wind power, from IRENA, personal communications with ewea.org/fileadmin/files/library/publications/position-papers/ Geothermal REN21, March-April 2018. (See Table 3 in this report.) EWEA-Design-options-for-wind-energy-tenders.pdf . 247

248 ENDNOTES GLOBAL OVERVIEW · 01 01 197 Shota Furuya, Institute for Sustainable Energy Policies (ISEP), (Berlin: March 2018), p. 7, https://www.erneuerbare-energien.de/ “The community power movement is on the rise in Japan”, The EE/Navigation/DE/Service/Erneuerbare_Energien_in_Zahlen/ Zeitreihen/zeitreihen.html ; wind power also from WindEurope, Beam , 13 February 2017, https://medium.com/thebeammagazine/ Wind in Power 2017: Annual Combined Onshore and Offshore community-power-gears-up-global-renewable- h t t p s : // Wind Statistics (Brussels: February 2018), pp. 7, 9, energymovement-dccbc184fea6 . windeurope.org/wp-content/uploads/files/about-wind/statistics/ The first two Australian projects were wind farms, and, in contrast 198 India: WindEurope-Annual-Statistics-2017.pdf . hydropower from to other regions, all the subsequent Australian community Government of India, Ministry of Power, CEA, “Hydro reports”, projects are solar PV based on behind-the-meter installation, with GLOBAL OVERVIEW , and December 2017, http://www.cea.nic.in/monthlyarchive.html the return of investment coming through PPAs, loans and leases from Government of India, Ministry of Power, CEA, “Executive with a host site so that the project in effect is selling into the http://www.cea.nic. summary of the power sector (monthly)”, retail market. This reflects the market and support arrangements, , viewed April 2018; wind power from in/monthlyarchive.html as larger projects in Australia were never eligible for FITs, from All India Installed Government of India, Ministry of Power, CEA, Tom Nockolds, Community Power Agency, Sydney, personal (New Delhi: 2018), table Capacity, Monthly Report January 2018 communication with REN21, 18 May 2018. REFERENCES I on “All India Installed Capacity (in MW) of Power Stations (as on Furuya, op. cit. note 197; Hironao Matsubara, ISEP, Tokyo, 199 http://www.cea.nic.in/reports/monthly/ 31.01.2018) (Utilities)”, personal communication with REN21, 1 May 2018. Capacity of installedcapacity/2018/installed_capacity-01.pdf ; solar PV from community solar PV projects increased from 45 MW in 2016 to 86 IEA PVPS, op. cit. note 184, pp. 4, 10; bio-power from Government MW in 2017, from idem. of India, Ministry of New and Renewable Energy, “Physical https://mnre.gov.in/physical-progress- progress (achievements)”, 200 Rankings determined from data for over 70 countries based on achievements , viewed 30 January 2018; CSP from NREL, the world’s top countries for cumulative capacity of hydro, wind, “Concentrating solar power projects in India”, https://www.nrel. solar PV, biomass, CSP, geothermal and ocean power. See Market , viewed gov/csp/solarpaces/by_country_detail.cfm/country=IN and Industry chapter and related endnotes for more details. 5 May 2018. China Country data from the following sources: : hydropower based on data from IHA and IRENA, personal communications China share and capacity data based on statistics and references 201 with REN21, March-April 2018; wind power from China Wind provided elsewhere in this section. See also Market and Industry Energy Association, “2017 China wind power lifting capacity chapter and Reference Table R2. statistics presentation”, 3 April 2018 (using Google Translate), Rankings for top countries for non-hydropower capacity based 202 provided by Liming Qiao, GWEC, personal communication with on sources provided for China, the United States, Germany and REN21, 2 May 2018, and from GWEC, op. cit. note 186, p. 17; solar India in endnote 200, and from the following: Japan: hydropower PV from IEA PVPS, op. cit. note 184, pp. 4, 5, 10, 15, from NEA, based on data from Japan Agency for Natural Resource and h t t p : // “National power industry statistics list”, 22 January 2018, Energy, Ministry of Trade and Energy, provided by Hironao www.nea.gov.cn/2018-01/22/c_136914154.htm (using Google Matsubara, ISEP, personal communication with REN21, 8 May Translate), and from NEA, “National Energy Administration press 2018; wind power from GWEC, op. cit. note 186, p. 17; solar PV conference introduces related energy situation, etc”, 24 January from Becquerel Institute, personal communication with REN21, (using 2018, http://www.nea.gov.cn/2018-01/24/c_136921015.htm 29 March 2018, and from IEA PVPS, op. cit. note 184, pp. 4, 10; Google Translate); bio-power from NEA, idem; geothermal power , op. cit. note 18, Table 5, Renewables 2017 bio-power from IEA, from IRENA, personal communication with REN21, April 2018; viewed 4 May 2018; geothermal based on data for end-2016 CSP based on 10 MW Supcon project (operational as of 2013) and (522 MW, running capacity) from IEA Geothermal, 2016 Annual 10 MW SunCan project (operational as of 2016), both from NREL, http://iea-gia. Report (Taupo, New Zealand: October 2017), p. 66, http://www. “Concentrating solar power projects in China”, org/publications-2/annual-reports/ , and addition of 5 MW in nrel.gov/csp/solarpaces/by_country_detail.cfm/country=CN , 2017, from Alexander Richter, “Idemitsu Kosan starts operation updated 17 April 2017 (see CSP section in Market and Industry of 5 MW Takigami geothermal plant, Japan”, ThinkGeoEnergy, 7 chapter for more details); ocean power from IRENA, “Renewable http://www.thinkgeoenergy.com/idemitsu-kosan- March 2017, Electricity Capacity and Generation Statistics”, op. cit. note 186. . starts-operation-of-5-mw-takigami-geothermal-plant-japan : hydropower and geothermal from EIA, op. cit. United States United Kingdom : hydropower, bio-power and ocean power note 188, Tables 6.2.B and 6.3; US Federal Energy Regulatory from UK Department for Business, Energy & Industrial Strategy, Commission (FERC), “Energy Infrastructure Update for December https://www.gov. “Energy Trends: renewables, Section 6”, p. 69, 2017” (Washington, DC: December 2017), https://www.ferc.gov/ , uk/government/statistics/energy-trends-section-6-renewables ; wind legal/staff-reports/2017/dec-energy-infrastructure.pdf updated 29 March 2018; wind power from WindEurope, op. cit. power from American Wind Energy Association, AWEA U.S. Wind note 200, pp. 7, 9; solar PV from UK Department for Business, (Washington, DC: Industry Annual Market Report Year Ending 2017 Energy & Industrial Strategy, “Solar Photovoltaics Deployment April 2018); solar PV from IEA PVPS, op. cit. note 184, pp. 4, 15, in the UK February 2018”, updated 29 March 2018, Table 1, and from GTM Research and Solar Energy Industries Association, https://www.gov.uk/government/statistics/solar-photovoltaics- U.S. Solar Market Insight: 2017 Year in Review, Executive Summary deployment , and from IEA PVPS, op. cit. note 184, pp. 4, 15. https://www.greentechmedia.com/ (Boston: March 2018), p. 9, based on sources in this note, on sources in endnote Figure 7 ; bio-power from research/subscription/u-s-solar-market-insight 200, and on global data available throughout this report, FERC, op. cit. this note; CSP from NREL, “Concentrating solar including Reference Tables R1 (and associated endnote) and R2, https://www.nrel.gov/ power projects in the United States”, hydropower from EU-28: as well as on data for the following: csp/solarpaces/by_country_detail.cfm/country=US , viewed the following: IRENA, personal communication with REN21, April 2018; ocean power from IRENA, “Renewable Electricity April 2018; IHA, personal communication with REN21, April Brazil : Capacity and Generation Statistics”, op. cit. note 186. 2018; IRENA, “Renewable Electricity Capacity and Generation hydropower based on data from National Agency for Electrical Statistics”, op. cit. note 186; BMWi, op. cit. note 200, p. 7; UK Energy (ANEEL), “Resumo geral dos novos empreendimentos Department for Business, Energy & Industrial Strategy, “Energy de geração”, http://www.aneel.gov.br/acompanhamento-da- Trends: renewables, Section 6”, op. cit. this note, p. 69; and from expansao-da-oferta-de-geracao-de-energia-eletrica , updated 2018 Hydropower Status Report – Sector Trends and Insights IHA, April 2018, and from ANEEL, “Informações gerenciais”, h t t p : // (London: May 2018), https://www.hydropower.org/sites/default/ ; wind power from www.aneel.gov.br/informacoes-gerenciais files/publications-docs/2018_hydropower_status_report_0. GWEC, op. cit. note 186, p. 17, and from Associação Brasileira pdf . Wind power from WindEurope, op. cit. note 200, pp. 7, 9; de Energia Eólica, “Brasil sobe mais uma posição no Ranking solar PV from Becquerel Institute, personal communication mundial de capacidade instalada de energia eólica”, 15 February with REN21, April 2018; bio-power based on data from BMWi, 2018, http://www.abeeolica.org.br/noticias/brasil-sobe-mais- op. cit. note 200, p. 7, and from UK Department for Business, uma-posicao-no-ranking-mundial-de-capacidade-instalada-de- Energy & Industrial Strategy, op. cit this note, p. 69; bio-power (using Google Translate); solar PV from Becquerel energia-eolica/ data for other countries is based on forecast 2017 capacity Institute, personal communication with REN21, 29 March 2018; figures from IEA, Renewables 2017 , op. cit. note 18, Table 5. bio-power from IRENA, “Renewable Electricity Capacity and Geothermal based on data for Germany from BMWi, op. cit. note all from Generation Statistics”, op. cit. note 186, p. 29. Germany: 200, p. 7. Italy from from IEA Geothermal, op. cit. this note, pp. 55, 66; Austria, France and Portugal from IRENA, “Renewable BMWi, Zeitreihen zur Entwicklung der erneuerbaren Energien in Electricity Capacity and Generation Statistics”, op. cit. note Deutschland unter Verwendung von Daten der Arbeitsgruppe 186. CSP based on REE, op. cit. note 200, p. 4, (beyond Spain, Erneuerbare Energien-Statistik (AGEE-Stat) (Stand: Februar 2018) 248

249 ENDNOTES · 01 GLOBAL OVERVIEW 01 projects are small-scale and/or pilots). Ocean power from IRENA, on total system generation and total wind power generation “Renewable Electricity Capacity and Generation Statistics”, op. in Ireland from “System data and fuel mix summary report”, : hydropower from System Russian Federation cit. note 186. provided by EIRGRID, personal communication with REN21, 20 Operator of the Unified Energy System of Russia, op. cit. note Portugal April 2018. Ireland has little solar PV capacity, per idem. 187; wind power from WindEurope, op. cit. note 200, pp. 7, 9; solar h t t p : // based on data from REN Portugal, “Estatistica mensal”, PV from Anton Usachev, Russian Solar Industry Association, www.centrodeinformacao.ren.pt/PT/InformacaoExploracao/ personal communication with REN21, April 2018; bio-power Paginas/EstatisticaMensal.aspx , from Empresa de Electricidade , op. cit. note 18, Table 5; geothermal from IEA, Renewables 2017 da Madeira (EEM), “Mix de produção mensal, por origen (GWh)”, GLOBAL OVERVIEW and ocean power from IRENA, “Renewable Electricity Capacity , https://www.eem.pt/media/339475/evol_ram_03_2018.pdf : South Africa and Generation Statistics”, op. cit. note 186. Procura e Oferta de Energia and from Electricidade dos Açores, hydropower from idem; wind power from GWEC, op. cit. note Elétrica (December 2017), http://www.eda.pt/Mediateca/ 186, p. 17; solar PV from IEA PVPS, op. cit. note 184, pp. 4, 15; Publicacoes/Producao/ProducaoConsumo/POEE%20 , op. cit. note 18, Table 5; Renewables 2017 bio-power from IEA, , all provided by João Graça Gomes, dezembro%202017.pdf CSP from NREL, “Concentrating solar power projects in South Associação Portuguesa de Energias Renováveis (APREN), REFERENCES I Africa”, https://www.nrel.gov/csp/solarpaces/by_country_detail. Portugal, personal communication with REN21, April 2018. Spain , viewed 5 May 2018. cfm/country=ZA United based on provisional data from REE, op. cit. note 200, p. 4. 203 Based on population data for 2016 from World Bank, “Population, based on data from UK Department for Business, Kingdom http://data.worldbank. total”, World Development Indicators 2018, Energy & Industrial Strategy, “Energy Trends: renewables, , updated 1 March 2018, on data org/indicator/SP.POP.TOTL Greece Section 6”, op. cit. note 202, p. 69, Table 6.1. from the gathered from various sources for more than 70 countries, and following: data for interconnected systems from Greek Operator on data and references provided elsewhere in this chapter, of Electricity Market (LAGIE), “DAS Monthly Reports”, h t t p : // in Market and Industry chapter and from the following: ; www.lagie.gr/en/market/market-analysis/das-monthly-reports/ wind power from WindEurope, op. cit. note 200, pp. Iceland: data for non-interconnected islands from Hellenic Electricity 7, 9; geothermal power from Orkustofnun, Energy Statistics in https://www.deddie.gr/en/ Distribution Network Operator S.A., http://os.is/gogn/os-onnur-rit/ (Reykjavik: 2016), Iceland 2016 themata-tou-diaxeiristi-mi-diasundedemenwn-nisiwn/stoixeia- , and from National Power Company Orkutolur-2016-enska.pdf ekkathariseon-kai-minaion-deltion-mdn/miniaia-deltia-ape-kai- of Iceland (Landsvirkjun), “Landsvirkjun’s 17th power station thermikis-paragwgis-sta-miMar22201831802323PM/minaia- begins operations at Þeistareykir”, 21 November 2017, h t t p s : // pliroforiaka-deltia-paragogis-2017 , viewed April 2018, all in Greek www.landsvirkjun.com/company/mediacentre/news/news- and provided by Ioannis Tsipouridis, R.E.D. Pro Consultants, read/landsvirkjuns-17th-power-station-begins-operations-at- Athens, personal communication with REN21, 14 April 2018. . wind power from WindEurope, op. cit. Denmark: theistareykir from Empresa Nacional de Energía Eléctrica (ENEE), Honduras note 200, pp. 7, 9; solar PV from IEA PVPS, op. cit. note 184, pp. 4, Boletín de Datos Estadistíco Diciembre 2017 (Tegucigalpa: 15; bio-power from IEA, Renewables 2017 , op. cit. note 18, Table 5. undated), p. 10, https://gastosmios.000webhostapp.com/pdf/ : wind power from WindEurope, op. cit. note 200, pp. 7, Sweden Nicaragua from Instituto Boletin-Estadistico-Diciembre-2017.pdf . 9; solar PV from IEA PVPS, op. cit. note 184, pp. 4, 15; bio-power Nicaragüense de Energía, Ente Regulador, “Generación neta from IEA, , op. cit. note 18, Table 5; ocean power Renewables 2017 http://www.ine.gob.ni/DGE/ sistema eléctrico nacional año 2017”, from IRENA, “Renewable Electricity Capacity and Generation , viewed estadisticas/2017/generacion_neta_2017_actmar18.pdf Statistics”, op. cit. note 186. 12 April 2018. 204 EIA, “Total electricity net generation”, International Energy 207 Giles Parkinson, “Wind output hits record in July, wind and Statistics, https://www.eia.gov/beta/international/data/browser/ h t t p : // solar 59% In S.A.”, RenewEconomy, 31 August 2017, #/?pa=000000000000000000000000000009lm&c=ruvvvvvfv reneweconomy.com.au/wind-output-hits-record-in-july-wind- tvnvv1urvvvvfvvvvvvfvvvou20evvvvvvvvvnvvuvs&ct=0&ug=8& ; Giles Parkinson, “Rooftop solar and-solar-59-in-s-a-45242/ tl_id=2-A&vs=INTL.2-12-AFG-BKWH.A&vo=0&v=H&start= provides 48% of South Australia power, pushing grid demand 2014&end=2015 , viewed 31 March 2018. to record low”, RenewEconomy, 18 September 2017, h t t p : // 205 Uruguay gets 26.3% from wind power, Costa Rica 11.5% and reneweconomy.com.au/rooftop-solar-provides-48-of-south- Ethiopia 7%. Data for Uruguay are for 2017, from Uruguay ; australia-power-pushing-grid-demand-to-record-low-47695/ Ministerio de Industria, Energía y Minería (MIEM), “Balance Weixin Zha, Brian Parkin and Jesper Starn, “German renewables preliminar 2017”, provided by MIEM, personal communication , 8 June Bloomberg record probably won’t last long in green push”, with REN21, 20 April 2018; data for Costa Rica are for 2017, https://www.bloomberg.com/news/articles/2017-06-08/ 2017, from Instituto Costarricense de Electricidad, Generación german-renewables-record-probably-won-t-last-long-in-green- y Demanda Informe Annual Centro Nacional de Control de push ; penetration record of 54% of Texas load on 27 October Energía, 2017 (San José: March 2018), p. 2, https://appcenter. 2017, from ERCOT, “Quick Facts”, www.ercot.com/content/ grupoice.com/CenceWeb/CenceDescargaArchivos. wcm/lists/144926/ERCOT_Quick_Facts_11218.pdf ; Gordon jsf?init=true&categoria=3&codigoTipoArchivo=3008 ; data for Hunt, “The record for wind electricity generated in Ireland now Ethiopia are for 2015, from EIA, op. cit. note 204. stands at 2,815MW, thanks to a blustery morning on 11 January”, Additional three countries are Ireland (25%), Portugal (23%) 206 Siliconerepublic, 11 January 2017, https://www.siliconrepublic. Figure 8 based on the following: Denmark and Spain (21%). com/innovation/irish-wind-energy-record . preliminary net generation data of 14,777 GWh from wind power, 208 Wang Zihao, “China’s clean power waste continues to drop”, 789 GWh from solar PV and total net production of 29,453 GWh, People Daily Online http://www.ecns.cn/2017/06- , 8 June 2017, from Danish Energy Agency, “Månedlig elstatistik. Hele landet”, . 08/260610.shtml in Annual Energy Statistics 2017 , https://ens.dk/en/our-services/ statistics-data-key-figures-and-energy-maps/annual-and- Data for 2017 from Asia Europe Clean Energy (Solar) Advisory 209 , viewed 17 April 2018. monthly-statistics Uruguay from MIEM, op. AECEA), “China 2017 – what a year with 53 GW of ( Co. Ltd Germany based on net generation from wind power cit. note 205. added solar PV! What’s in for 2018!” Briefing Paper – China Solar of 103.65 TWh (19%), on net solar power generation of 38.39 TWh PV Development, January 2018 (provided by Frank Haugwitz, (7%), and on total net generation of 546.91 TWh, from Fraunhofer AECEA); data for 2016 from China National Energy Board, cited ISE, “Energy charts – annual electricity generation in Germany in in NEA, “Wind grid operation in 2017”, 1 February 2018, h t t p : // 2017 ”, https://www.energy-charts.de/energy.htm?source=all-sou www.nea.gov.cn/2018-02/01/c_136942234.htm (using Google rces&period=annual&year=2017 , updated 12 March 2018. Ireland Translate). wind power share based on total net generation of 28,710 GWh, For example, Denmark introduced a range of market measures to 210 from Ireland Central Statistics Office, “Electricity output by month increase flexibility and improve balancing, including a five-minute https://data.gov.ie/dataset/electricity-output- and statistic”, balancing market, and has close to zero curtailment, from Gerard by-month-and-statistic/resource/610fce9a-5e9c-4356-b1ea- Wynn, Power-Industry Transition, Here and Now: Wind and Solar , viewed 18 cf1e9368eb38?inner_span=True#&r=Month&c=State Won’t Break the Grid: Nine Case Studies (Cleveland, OH: Institute April 2017, and on wind generation of 7,229 GWh, from EIRGRID, for Energy Economics and Financial Analysis, 2018), pp. 29, 64, “Historical wind dispatch down (constraint and curtailment) http://ieefa.org/wp-content/uploads/2018/02/Power-Industry- percentages for Ireland (IE), Northern Ireland (NI) and All Island Transition-Here-and-Now_February-2018.pdf . http://www.eirgridgroup.com/site-files/library/EirGrid/ (AI)”, 211 IEA, op. cit. note 49, p. 12. , viewed 18 April 2018. Also based Wind20DD20Historical.jpg 249

250 · 01 ENDNOTES GLOBAL OVERVIEW 01 For example, about 13% of the population of Bangladesh gained 212 uruguay-shows-flexible-grid-can-propel-renewables-growth/ ; share for 2017 based on data from MIEM, op. cit. note 205. access to electricity through off-grid solar systems, while 51% of the off-grid population of Kenya is served by DREA systems. 235 Honduras from ENEE, op. cit. note 206, p. 10; Instituto Dalberg Advisors and Lighting Global, Off-Grid Solar Market Nicaragüense de Energía, Ente Regulador, op. cit. note 206. (Washington, DC: International Finance Trends Report 2018 See Reference Tables R18 and R21, and GWEC, op. cit. note 186, p. 17. 236 Corporation, 2018), p. 70, https://www.gogla.org/sites/default/ Brazil ended 2016 with 238 MW, added 910 MW for a total of 1.1 GW, files/resource_docs/2018_mtr_full_report_low-res_2018.01.15_ from Becquerel Institute, Brussels, personal communication with final.pdf . GLOBAL OVERVIEW REN21, 29 March and April 2018, and from IEA PVPS, op. cit. note Estimate of 300 million from IRENA, “2016 a record year for 213 184, pp. 3, 4, 6; 1,099.6 GW cumulative from Emiliano Bellini, “Brazil renewables, latest IRENA data reveals”, press release (Abu Dhabi: , 9 January 2018, hits 1 GW solar milestone”, PV Magazine h t t p s : // http://irena.org/newsroom/pressreleases/2017/ 30 March 2017), www.pv-magazine.com/2018/01/09/brazil-hits-1-gw-renewables- Mar/2016-a-Record-Year-for-Renewables-Latest-IRENA-Data- The vast majority of added capacity is in large-scale . milestone/ ; DREA systems account for 6%, from IEA, op. cit. note Reveals projects (more than 935 MW is in projects larger than 5 MW) 49, p. 12. resulting from government tenders in 2014 and 2015, from idem. REFERENCES I Based on geospatial analysis, from Ibid., pp. 12, 39. 214 237 See Figure 20 in Market and Industry chapter. Based on end-2016 capacity data and capacity additions in 2017 from sources in Solar PV data from Gaëtan Masson, Becquerel Institute and IEA 215 endnote 1 of Geothermal section in Market and Industry chapter, PVPS, personal communication with REN21, 29 March 2018, and and on sources noted elsewhere in this section. For the purpose based on data from IEA PVPS, op. cit. note 184, p. 4; wind data of this figure, end-2016 capacity is assumed to be equal to end- from GWEC, op. cit. note 186, p. 17. 2017 capacity less new capacity installed during 2017. Photon, “AECEA expects 40 to 45 GW of new installed PV 216 238 Ibid. h t t p s : // capacity in China at the end of 2018”, 15 February 2018, www.photon.info/en/news/aecea-expects-40-45-gw-new- Growth rate calculated from IRENA, “Renewable Electricity 239 ; Veselina Petrova, installed-pv-capacity-china-end-2018 Capacity and Generation Statistics”, op. cit. note 186, viewed 15 “Indian PV capacity additions surpass coal In 2017 – Mercom”, May 2018. https://renewablesnow. Renewables Now, 18 January 2018, Ibid., viewed 7 May 2018. 240 com/news/indian-pv-capacity-additions-surpass-coal-in-2017- SolarPACES, “Xina Solar One CSP plant completes first month 241 mercom-598653/ . http://www.solarpaces.org/ of operation”, 1 November 2017, See Market and Industry chapter, Reference Tables R1 and R18, 217 . xina-solar-one-csp-plant-completes-first-month-operation/ and related endnotes; 2016 percentage increase from REN21, 242 See, for example, Chijioke Mama, “On-grid solar in Nigeria: two Renewables 2017 Global Status Report (Paris: 2017), pp. 35, 72-74, h t t p s : // years after the PPAs”, Solar Future, 22 February 2018, http://www.ren21.net/wp-content/uploads/2017/06/17-8399_ 171, www.solarplaza.com/channels/markets/11772/-grid-solar- GSR_2017_Full_Report_0621_Opt.pdf . ; Emiliano Bellini, “Senegal’s first nigeria-two-years-after-ppas/ 218 See Market and Industry chapter, Reference Tables R18 and R21 h t t p s : // , 30 June 2017, solar park comes online”, PV Magazine and related endnotes. www.pv-magazine.com/2017/06/30/senegals-firstsolar-park- 219 For Indonesia, see Market and Industry chapter, Reference Tables comes-online/ ; Maina Waruru, “Kenya taps solar to power digital R16 and R18 and related endnotes; for Turkey, see Reference learning”, Renewable Energy World, 18 July 2016, http://www. Tables R16 to R19. renewableenergyworld.com/articles/2016/07/kenya-taps-solar- to-power-digital-learning.html ; Kizito Makoye, “Solar panels Agora Energiewende and Sandbag, op. cit. note 61, p. 3. 220 power business surge – not just lights – in Tanzania”, Reuters , 19 Ibid. 221 http://www.reuters.com/article/us-tanzania-solar- April 2016, WindEurope, op. cit. note 200, p. 7, 9, 11, 17. 222 energy-idUSKCN0XG1VX ; Chris Mfula, “Zambia to diversify Lusaka Times , generation mix as drought hits hydropower”, 223 Ibid. Wind power contributed 55% to the 2017 capacity increase, 10 May 2016, https://www.lusakatimes.com/2016/05/10/ solar PV 21%, hydropower 4.6% and bio-power 4.3%, with a small . zambia-diversify-generation-mix-drought-hits-hydropower/ contribution from CSP, from WindEurope, op. cit. note 200, p. 11. 243 Jeremy Wakeford, “When mobile meets modular: pay-as-you-go 224 Germany and the United Kingdom accounted for 42% of non- solar energy in rural Africa”, LSE – Centre for Africa, 29 January hydro renewables generation increase during 2011-2014, and 57% http://blogs.lse.ac.uk/africaatlse/2018/01/29/when-mobile- 2018, during 2014-2017, from Agora Energiewende and Sandbag, op. cit. meets-modular-pay-as-you-go-solar-energy-in-rural-africa/ . note 61, pp. 7, 13, 37. Clean Energy Australia, Report 2016 Clean Energy Council, 244 225 EC, “Renewable energy – moving towards a low carbon (Melbourne: 2017), p. 6, https://www.cleanenergycouncil.org.au/ economy”, https://ec.europa.eu/energy/en/topics/renewable- . policy-advocacy/reports/clean-energy-australia-report.html energy , viewed 14 March 2018; 35% Renewable Energy Target implies 50% renewable electricity, from Agora Energiewende and 245 Growth rate calculated from IRENA, “Renewable Electricity Sandbag, op. cit. note 61, p. 37. Capacity and Generation Statistics”, op. cit. note 186, viewed 15 May 2018. pp. 37, 38. Agora Energiewende and Sandbag, op. cit. note 61, 226 IEA PVPS, op. cit. note 184, pp. 4, 10, 12. 246 227 Based on EIA, op. cit. note 108, Table ES1.B, p. 12. 247 , Renewable shares of electricity from Ministry of Business 228 For example, Google, Apple Inc., IKEA, Walmart and Microsoft Innovation & Employment. Energy in New Zealand (Wellington: Corporation; see IRENA, op. cit. note 43. 2017), p. 42, http://www.mbie.govt.nz/info-services/sectors- 229 BNEF, “Global Corporate Database”, viewed 4 February 2018. industries/energy/energy-data-modelling/publications/energy- Growth rate calculated from IRENA, “Renewable Electricity 230 ; growth rate calculated from IRENA, “Renewable in-new-zealand Capacity and Generation Statistics”, op. cit. note 186, viewed 15 Electricity Capacity and Generation Statistics”, op. cit. note 186, May 2018; increase in solar PV from Reference Table R18. viewed 15 May 2018. Growth rate calculated from IRENA, “Renewable Electricity Capacity 231 Ibid. Also see, for example, Middle East Solar Industry Association 248 and Generation Statistics”, op. cit. note 186, viewed 15 May 2018. (MESIA), (Dubai: February 2018), p. 4, Solar Outlook Report 2018 232 IRENA, “Renewable capacity highlights” (Abu Dhabi: 31 March http://www.mesia.com/wp-content/uploads/2018/03/MESIA- https://www.irena.org/-/media/Files/IRENA/Agency/ 2018), p. 2, . OUTLOOK-2018-Report-7March2018.pdf Publication/2018/Mar/RE_capacity_highlights_2018.pdf?la=en& 249 BP, “BP Statistical Review of World Energy June 2017”, Excel ; hash=21795787DA9BB41A32D2FF3A9C0702C43857B39C https://www.bp.com/en/global/corporate/energy- spreadsheet, additional analysis from IRENA, “Renewable Electricity Capacity , economics/statistical-review-of-world-energy/downloads.html and Generation Statistics”, op. cit. note 186, viewed March 2018. viewed 20 May 2018. See also Market and Industry chapter. Emiliano Bellini, “Saudi Arabia’s 300 MW solar tender may 250 2017 , op. cit. note 18, p. 662. IEA, World Energy Outlook 233 , 4 October 2017, conclude with lowest bid ever”, PV Magazine Share for 2013 from Gerard Wynn, “Uruguay shows how 234 https://www.pv-magazine.com/2017/10/04/saudi-arabias- a flexible grid drives renewables growth”, Energy and 300-mw-solar-tender-may-conclude-with-lowest-bid-ever/ ; Carbon, 3 April 2018, http://energyandcarbon.com/ Tom Kenning, “Saudi solar bids debunked: what we know 250

251 ENDNOTES · 01 GLOBAL OVERVIEW 01 so far”, PV-Tech, 4 October 2017, https://www.pv-tech.org/ editors-blog/47545 ; LeAnne Graves, “World’s cheapest prices submitted for Saudi Arabia’s first solar project”, The National, https://www.thenational.ae/business/energy/ 4 October 2017, world-s-cheapest-prices-submitted-for-saudi-arabia-s-first- ; Saudi Arabia began process of holding solar-project-1.663842 wind tenders: “Saudi Arabia issues REQ for 400MW wind power project”, Technical Review Middle East, 17 July 2017, h t t p : // GLOBAL OVERVIEW technicalreviewmiddleeast.com/power-a-water/renewables/ saudi-arabia-issues-req-for-400mw-wind-power-project-in-al- jouf-region ; “Saudi Arabia pre-qualifies 25 bidders for 400 MW wind power project”, EV Wind, 29 August 2017, https://www. evwind.es/2017/08/29/saudi-arabia-pre-qualifies-25-bidders-for- 400-mw-wind-power-project/60843 . Several countries added targets from MESIA, op. cit. note 248, pp. 4, 5, 27-33. REFERENCES I 251 Pipeline data include announced, bid stage, prequalification and financial close projects, and include 10 GW solar PV, with 63% in Saudi Arabia, 15% in UAE, and 10% in Kuwait; and 50 MW of CSP in the Lebanon, from MESIA, op. cit. note 248, pp. 4, 11; PV projects in development or under construction from MESIA, Solar Outlook Report 2017 (Dubai: 2017), https://resources. solarbusinesshub.com/solar-industry-reports/item/mesia-solar- outlook-report-2017 ; Cat DiStasio, “Israel building world’s tallest solar tower to power 130,000 households”, inhabitat, 1 May 2017, https://inhabitat.com/israel-building-worlds-tallest-solar-tower- to-power-130000-households/ ; HelioCSP, “Kuwait Shagaya 50MW solar concentrated solar power project operates in 2018”, 27 June 2016, http://helioscsp.com/kuwait-shagaya-50mw-solar- concentrated-solar-powerproject-operates-in-2018/ . See also Solar PV and CSP sections in Market and Industry chapter. 251

252 ENDNOTES · 02 POLICY LANDSCAPE 02 ICLEI–Local Governments for Sustainability, “Japanese cities and 11 POLICY LANDSCAPE regions rally behind 100 percent renewable energy”, 9 October Ottmar Edenhofer et al., “Summary for Policymakers”, in 1 http://www.iclei.org/details/article/japanese-cities-and- 2017, Intergovernmental Panel on Climate Change Special Report regions-rally-behind-100-percent-renewable-energy.html ; Betsy on Renewable Energy Sources and Climate Change Mitigation Lillian, “St. Louis votes yes on 100% renewable energy”, North (Cambridge, UK: Cambridge University Press, 2011), http://www. American Wind Power, 27 October 2017, http://nawindpower. ipcc.ch/pdf/special-reports/srren/SRREN_FD_SPM_final.pdf ; com/st-louis-votes-yes-on-100-renewable-energy . International Renewable Energy Agency (IRENA), Renewable Abita Springs (Louisiana), Breckenridge and Nederland (Colorado) 12 (Abu Energy Benefits: Understanding the Socio-Economics POLICY LANDSCAPE and Nevada City (Nevada) from Betsy Lillian, “Yet another U.S. http://www.irena.org/-/media/Files/IRENA/ Dhabi: 2017), city commits to 100% renewable energy”, North American Wind Agency/Publication/2017/Nov/IRENA_Understanding_Socio_ https://nawindpower.com/yet-another- Power, 14 August 2017, ; International Energy Agency (IEA), Economics_2017.pdf u-s-city-commits-100-renewable-energy ; Madison (Wisconsin), Contributions of Renewables to Energy Security (Paris: 2007), Orlando (Florida) and Pittsburgh (Pennsylvania) from Joseph https://www.iea.org/publications/freepublications/publication/ Bebon, “Orlando votes yes on 100% renewable energy”, North so_contribution.pdf . REFERENCES I https://nawindpower.com/ American Wind Power, 9 August 2017, 2 This section is intended to be only indicative of the overall landscape orlando-votes-yes-100-renewable-energy ; St. Louis (Missouri) from of policy activity and is not a definitive reference. Policies listed are Sierra Club, “St. Louis commits to 100% clean, renewable energy”, generally those that have been enacted by legislative bodies. Some 27 October 2017, https://www.sierraclub.org/ready-for-100/ of the policies listed may not yet be implemented, or are awaiting . case-study-report-cities-are-ready-for-100-clean-energy detailed implementing regulations. It is difficult to capture every 13 United Nations Framework Convention on Climate Change policy change, so some policies may be unintentionally omitted or (UNFCCC), “More than 250 US mayors commit to 100% incorrectly listed. This report does not cover policies and activities renewable energy by 2035“, 28 June 2017, http://newsroom. related to technology transfer, capacity building, carbon finance and unfccc.int/climate-action/more-than-250-us-mayorsaim-at-100- Clean Development Mechanism projects, nor does it attempt to renewable-energy-by-2035/ . provide an comprehensive list of broader framework and strategic 14 100ee, “Welcome to the network of ‘100% Renewable Energy policies – all of which are still important to renewable energy . Regions”, viewed on 23 May 2018, http://www.100-ee.de/ progress. For the most part, this report also does not cover policies , viewed 15 http://www.c40.org/about C40 Cities, “About”, that are still under discussion or formulation, except to highlight 18 February 2018. overall trends. Information on policies comes from a wide variety of sources, including the IEA and IRENA Global Renewable Energy Austin, Accra, Barcelona, Boston, Buenos Aires, Cape Town, 16 Policies and Measures Database, the US Database of State Incentives Caracas, Copenhagen, Durban, London, Los Angeles, Melbourne, for Renewables & Efficiency (DSIRE), press reports, submissions Mexico City, Milan, New York City, Oslo, Paris, Philadelphia, from REN21 regional- and country-specific contributors and a wide Portland, Quito, Rio de Janeiro, Salvador, Santiago, Stockholm and are range of unpublished data. Table 2 and Figures 10 through 15 Vancouver, from C40 Cities, “25 cities commit to become emissions based on numerous sources cited throughout this section. neutral by 2050 to deliver on their share of the Paris Agreement”, press release (Bonn: 12 November 2017), http://www.c40.org/ 3 IEA, “Summary for Policy Makers”, in Status of Power System press_releases/25-cities-emissions-neutral-by-2050 . https://www.iea.org/ Transformation 2017 (Paris: 2017), p. 1, publications/freepublications/publication/StatusofPowerSystem 17 Karl Mathiesen, “Jacinda Ardern commits New Zealand to Transformation2017SummaryforPolicyMakers.pdf . zero carbon by 2050”, Climate Home News, 20 October http://www.climatechangenews.com/2017/10/20/ 2017, Sekretariat Kabinet Republik Indonesia, “President Jokowi signs 4 jacinda-ardern-commits-new-zealand-zero-carbon-2050/ ; presidential regulation on general planning for national energy”, Renewables Ready: States Leading Petra Stock et al., 3 April 2017, http://setkab.go.id/en/president-jokowi-signs- the Charge (Potts Point, Australia: Climate Council of ; presidential-regulation-on-general-planning-for-national-energy/ Australia, 2017), p. 15, https://www.climatecouncil.org.au/ New Paradigm of Indonesia Indonesia National Energy Council, uploads/9a3734e82574546679510bdc99d57847.pdf . https://www.doe. (Jakarta: 2017), Energy Policy and Planning gov.ph/sites/default/files/pdf/announcements/acd_14_new_ 18 Nathalie Hemeleers, Strategic Policy Priorities for Renewable paradigm_indonesia_energy_policy_and_planning.pdf . Heating and Cooling in Europe (Brussels: European Biomass http://www.aebiom.org/wp-content/ Association, 2016), p. 17, Box 1 based on the following sources: Swiss Federal Office of 5 ; uploads/2016/11/FROnT_Strategic-Policy-Paper_Nov2016-1.pdf Swiss Electricity Statistics 2016 Energy (SFOE), (Bern: 2017), Putting a Noah Kaufman, Michael Obeiter and Eleanor Krause, p. 3, https://www.bundespublikationen.admin.ch/cshop_ (Washington, DC: World Price on Carbon: Reducing Emissions mimes_bbl/8C/8CDCD4590EE41ED797FF3D9EAD3B79B3.pdf ; Resources Institute, 2016), pp. 18-25, https://www.wri.org/ Switzerland Federal Department of the Environment, Transport, sites/default/files/Putting_a_Price_on_Carbon_Emissions. Energy and Communications, “Energy Strategy 2050” (Bern: pdf ; Ute Collier, “Commentary: More policy attention is needed https://www.uvek.admin.ch/uvek/en/home/energie/ 2017), for renewable heat”, IEA, 25 January 2018, https://www.iea. ; SFOE, “Energy Strategy 2050” energy-strategy-2050.html org/newsroom/news/2018/january/commentary-more-policy- (Bern: 2017), http://www.bfe.admin.ch/energiestrategie2050/ . attention-is-needed-for-renewable-heat.html index.html?lang=en ; SFOE, “Energy Strategy 2050 after the UNFCCC, “China to launch world’s largest emissions 19 popular vote”, 21 December 2017, pp. 20, 24, http://www.lse. trading system”, 19 December 2017, https://unfccc.int/news/ ac.uk/GranthamInstitute/wp-content/uploads/2017/12/ES2050_ . china-to-launch-world-s-largest-emissions-trading-system Standardreferat_2017.08.16_E.pdf . “9 Northeast states agree to further power plant carbon cuts”, 20 6 REN21 Policy Database; Ukraine from Ukrainian Wind Energy , 23 August 2017, http://www.bostonherald.com/ Boston Herald Association, "The government approved a new energy strategy business/business_markets/2017/08/9_northeast_states_ of Ukraine", http://uwea.com.ua/en/news/entry/pravitelstvo- agree_to_further_power_plant_carbon_cuts . , viewed 21 odobrilo-novuyu-energeticheskuyu-strategiyu-ukrainy/ April 2018. See Reference Tables R3 and R4. 21 The BioFuture Platform was proposed by the Government of Brazil to help in the global fight against climate change by 7 REN21 Policy Database. nurturing solutions in low-carbon transport and the bio-economy 8 European Commission (EC), “Commission proposes new rules for that can aid countries to reach their Nationally Determined consumer centred clean energy transition”, 30 November 2016, Contribution targets (NDCs), as well as to contribute towards https://ec.europa.eu/energy/en/news/commission-proposes- the Sustainable Development Goals, from BioFuture Platform, new-rules-consumer-centred-clean-energy-transition . “About”, 2016, ; United http://biofutureplatform.org/about/ 9 EC, “Commission welcomes agreement on energy performance Nations, “UN conference closes with renewable urgency for of buildings”, press release (Brussels: 19 December 2017), h t t p : // greater ambition to tackle climate change”, 17 November 2017, . europa.eu/rapid/press-release_IP-17-5129_en.htm http://www.un.org/apps/news/story.asp?NewsID=58117#. Wiv0v0qnFPZ . 10 Joshua S. Hill, “European Union votes to increase 2030 renewable energy goal to 35%”, CleanTechnica, 19 January 2018, 22 Social cost of carbon is a measure that attempts to quantify the https://cleantechnica.com/2018/01/19/european-union-votes- economic impact of damage done by a specified quantity of carbon . increase-2030-renewable-energy-goal-35/ dioxide emissions in a year. Quantified damages may include 252

253 ENDNOTES · 02 POLICY LANDSCAPE 02 changes in human health, property damage, agricultural activities savings of 25%, from Jaideep Malaviya, “India: New energy building and other factors. The USD 43 per tonne of carbon total was regulations to boost solar heating market”, solarthermalworld, developed by President Obama’s Interagency Working Group on http://www.solarthermalworld.org/content/ 24 July 2017, Social Cost of Carbon. US Environmental Protection Agency, “EPA . india-new-energy-building-regulations-boost-solar-heating-market Fact Sheet: Social Cost of Carbon” (Washington, DC: December Government of India, Ministry of Power, Bureau of Energy 34 2016), https://www.epa.gov/sites/production/files/2016-12/ Efficiency, “Launch of Energy Conservation Building Code 2017”, ; Ted Gayer, documents/social_cost_of_carbon_fact_sheet.pdf press release (New Delhi: 19 June 2017), https://beeindia.gov. “The social costs of carbon”, Brookings Institution, 28 February in/press-releases/launch-energy-conservation-building-code- POLICY LANDSCAPE 2017, https://www.brookings.edu/testimonies/the-social-costs- ; Green Buildings Performance 2017-piyush-goyal-19th-june-2017 ; Peter Fairley, “States are using social cost of carbon in of-carbon/ Network, “India”, http://www.gbpn.org/databases-tools/ energy decisions, despite Trump’s opposition”, InsideClimate News, , viewed 17 February 2018. bc-detail-pages/india 14 August 2017, https://insideclimatenews.org/news/11082017/ 35 The Province of British Columbia defines net-zero-energy ready . states-climate-change-policy-calculate-social-cost-carbon buildings as buildings built to high energy efficiency standards 23 Fairley, op. cit. note 22. such that they could (with additional measures) generate enough REFERENCES I Erik Nordman, “A tiny African island nation will run on 100% 24 on-site energy to meet their own energy needs. British Columbia, renewable energy in less than a decade”, Quartz Africa, “How the BC energy step code works”, 28 March 2018, h t t p s : // 7 November 2017, https://qz.com/1122149/a-tiny-african- www2.gov.bc.ca/gov/content/industry/construction-industry/ islandnation-will-run-on-100-renewable-energyin-less-than-a- building-codes-standards/energy-efficiency/energy-step-code/ decade/ ; see Reference Table R8. . how-it-works 25 “South Korea finalizes energy plan to boost renewable Frank Stier, “Hungary: Government strengthens support for renewables 36 power generation”, h t t p s : // , 29 December 2017, Reuters and energy efficiency in residential market”, solarthermalworld, www.reuters.com/article/us-southkorea-energy-policy/ http://www.solarthermalworld.org/content/ 26 June 2017, south-korea-finalizes-energy-plan-to-boost-renewable-power- . serbia-eu-supports-903-m2-solar-district-heating-installation generation-idUSKBN1EN0KT ; the Republic of Korea set a target 37 Frank Stier, “Macedonia: National subsidy budget raise”, of 20% renewable power by 2030, from Rod Adams, “Moon http://www.solarthermalworld. solarthermalworld, 14 February 2017, , 12 July Forbes Jae-in making friends by importing more gas”, . org/content/macedonia-national-subsidy-budget-raise https://www.forbes.com/sites/rodadams/2017/07/12/ 2017, 2 38 Frank Stier, “Serbia: EU supports 903m solar district geopolitical-advantages-of-moon-jae-in-plan-to-increase-south- heating installation”, solarthermalworld, 23 September . koreas-natural-gas-consumption/#5a02eb6c14df 2017, http://www.solarthermalworld.org/content/ Altai Republic, “Alexander Berdnikov launched the 26 serbia-eu-supports-903-m2-solar-district-heating-installation . construction of a solar power plant with a capacity of 20 39 Bärbel Epp, “Germany: Renewable district heating grants”, http://altai-republic.ru/news_lent/news- MW”, 12 May 2017, solarthermalworld, 27 October 2017, http://www.solarthermalworld. (using Google Translate). archive/20200/?sphrase_id=2504771 org/content/germany-renewable-district-heating-grants . 27 IEA/IRENA Joint Policies and Measures Database, “China 13th 40 Csaba Vasko, independent consultant, Hungary, personal renewable energy development five year plan (2016-2020)”, 21 communication with REN21, 28 November 2017 February 2017, https://www.iea.org/policiesandmeasures/pams/ 41 Ricardo Battisti, “Slovenia: On the path to renewable district heating”, . china/name-161254-en.php http://www.solarthermalworld. solarthermalworld, 2 October 2017, 28 Emiliano Bellini, “Belgium’s Flanders region raises 2020 org/content/slovenia-path-renewable-district-heating . PV Magazine targets for solar and wind”, , 10 October 2017, https://www.pv-magazine.com/2017/10/10/belgiums- 42 Alejandro Diego Rosello, “Spain: Andalusia supports 38 renewable flanders-region-raises-2020-targets-for-solar-and-wind/ ; energy and energy efficiency measures”, solarthermalworld, 12 June Tom Kenning, “Karnataka tenders 860MW of dispersed solar”, http://www.solarthermalworld.org/content/spain-andalusia- 2017, PV-Tech, 7 December 2017, https://www.pv-tech.org/news/ . supports-38-renewable-energy-and-energy-efficiency-measures . karnataka-tenders-860mw-of-dispersed-solar Bärbel Epp, “USA: Concerted actions in California and New York”, 43 U.S. Renewables Portfolio Standards 2017 Annual Galen Barbose, 29 http://www.solarthermalworld. solarthermalworld, 23 June 2017, Status Report (Berkeley, CA: Lawrence Berkeley National ; org/content/usa-concerted-actions-california-and-new-york https://emp.lbl.gov/sites/default/ Laboratory, 2017), p. 10, Frank Andorka, “Oregon governor says new homes must be files/2017-annual-rps-summary-report.pdf . solar ready by 2020”, h t t p s : // , 15 November 2017, PV Magazine pv-magazine-usa.com/2017/11/15/oregon-governor-says-new- 30 California failed in an effort to increase its RPS of 50% by 2030 homes-must-be-solar-ready-by-2020/ . to 100% by 2045, and Nevada’s RPS increase to 40% by 2030 was vetoed by the governor, from James Rainey, “California 44 City of Chicago Mayor’s Press Office, “Mayor Emanuel announces lawmakers fail to approve 100 percent renewable energy goal”, city buildings to be powered by 100% renewable energy by 2025”, NBC News , 16 September 2017, https://www.nbcnews.com/ press release (Chicago: 9 April 2017), https://www.cityofchicago. science/environment/california-lawmakers-fail-approve-100- org/city/en/depts/mayor/press_room/press_releases/2017/april/ percent-renewableenergy-goal-n801991 ; Christian Roselund, RenewableEnergy2025.html . "Nevada Governor Sandoval vetoes RPS increase, community 45 Seoul Metropolitan Government, “One in three houses in Seoul to pv magazine solar bills", , 19 June 2017, https://pv-magazine-usa. have photovoltaic facility”, 24 November 2017, http://english.seoul. com/2017/06/19/nevada-governor-sandoval-vetoes-rps- . go.kr/one-three-houses-seoul-photovoltaic-facility/ . increase-community-solar-bills/ 46 Michael Taylor, “Indonesia unveils plan to roll out 1,000 eco-mosques 31 United Nations Environment and IEA, Towards a Zero-emission, Reuters by 2020”, , 16 November 2017, https://www.reuters.com/ Efficient, and Resilient Buildings and Construction Sector: Global article/us-indonesia-climatechange-religion/indonesia-unveils-plan- (Paris: 2017), p. 32, Status Report 2017 http://www.worldgbc.org/ to-roll-out-1000-eco-mosques-by-2020-idUSKBN1DG1J8 . . sites/default/files/UNEP%20188_GABC_en%20%28web%29.pdf 47 Bärbel Epp, “Grants for solar thermal in public buildings”, 32 Examples include New York City, from US Department of Energy solarthermalworld, 21 December 2017, http://www.solarthermalworld. (DOE), “New York City – Energy conservation requirements . org/content/grants-solar-thermal-public-buildings https://www.energy.gov/savings/ for existing buildings”, Ofgem, “About the non-domestic RHI”, 48 https://www.ofgem.gov. new-york-city-energy-conservation-requirements-existing- , viewed 23 uk/environmental-programmes/non-domestic-rhi , viewed 10 February 2018; Japan, from IEA/IRENA buildings March 2018. Joint Policies and Measures Database, “Comprehensive Review IEA Renewable Energy Technology Deployment Technology 49 of Japanese Energy Policy”, 30 October 2017, https://www. Collaboration Programme (IEA-RETD TCP), Fostering Renewable iea.org/policiesandmeasures/pams/japan/name-21408-en. : RE-INDUSTRY (Utrecht: Energy Integration in the Industry ; and Singapore, from Singapore Government Building php http://iea-retd.org/wp-content/uploads/2017/03/ 2017), p. 5, and Construction Authority, “Existing building legislation”, 7 RE-INDUSTRY-Final-report-1.pdf . https://www.bca.gov.sg/EnvSusLegislation/ November 2017, . Existing_Building_Legislation.html (Paris: IEA, 50 Cédric Philbert, Renewable Energy for Industry 2017), p. 55, https://www.iea.org/publications/insights/ For a building to be considered compliant with the Energy 33 Conservation Building Code it must demonstrate minimum energy insightpublications/Renewable_Energy_for_Industry.pdf . 253

254 ENDNOTES · 02 POLICY LANDSCAPE 02 51 IEA-RETD TCP, op. cit. note 49, p. 5, http://iea-retd.org/ agriculture/buenosaires/argentina-raises-ethanol-prices-for- . wp-content/uploads/2017/03/RE-INDUSTRY-Final-report-1.pdf ; Helena Tavares Kennedy, "Romania to oil-refiners-21072829 , Biofuels Digest double bioethanol blending mandate for 2018", Marisol Oropeza, “Mexico: New idea exchange on solar process heat”, 52 http://www.biofuelsdigest.com/bdigest/2017/07/22/ 22 July 2017, http://www.solarthermalworld. solarthermalworld, 18 September 2017, romania-to-double-bioethanol-blending-mandate-for-2018/ . . org/content/mexico-new-idea-exchange-solar-process-heat 63 Adriana Barrera, “Mexico court temporarily blocks higher Bärbel Epp, “Tunisia: National subsidy scheme 53 ethanol in gasoline – activist”, Reuters , 14 September 2017, Prosol extended to 2020”, solarthermalworld, 3 April https://www.reuters.com/article/us-mexico-ehtanol/mexico- 2017, http://www.solarthermalworld.org/content/ POLICY LANDSCAPE court-temporarily-blocks-higher-ethanol-ingasoline-activist- . tunisia-national-subsidy-scheme-prosol-extended-2020 . idUSKCN1BP0DI?rpc=401& 54 Global Wind Energy Council, “New market rules set to enable Meghan Sapp, “RACQ rejects concerns Queensland’s E3 64 US$ 6bn in investment in Argentina’s renewable power sector”, 1 mandate will boost pump prices”, Biofuels Digest, 2 January 2017, September 2017, http://gwec.net/new-market-rules-set-to-enable- http://www.biofuelsdigest.com/bdigest/2017/01/02/racq-rejects- . us-6bn-in-investment-in-argentinas-renewable-power-sector/ . concerns-queenslands-e3-mandate-will-boost-pump-prices/ 55 IEA-RETD TCP, op. cit. note 49, p. 53. 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Biofuels on Transport and the Environment, and Their Connection Ibid., p. 20; IEA, 72 Global EV Outlook 2017 (Paris: 2017), p. 23, h t t p : // (Brussels: 2015), with Agricultural Development in Europe https://www.iea.org/publications/freepublications/publication/ www.europarl.europa.eu/RegData/etudes/STUD/2015/513991/ GlobalEVOutlook2017.pdf ; in 2016, Poland set a goal of 1 million IPOL_STU%282015%29513991_EN.pdf ; Samuel White, “Biodiesel EVs on the road by 2025, from “Polish oil giant to build charging debate a political hot potato as EU renewable energy law nears stations for electric vehicles: report”, Radio Poland, 31 March 2017, home straight”, Euractiv, 2 October 2017, https://www.euractiv. http://www.thenews.pl/1/12/Artykul/300517,Polish-oil-giant-to- com/section/agriculture-food/news/biofuel-debate-a-political-hot- . buildcharging-stations-for-electric-vehicles-report potato-as-renewable-energy-debate-nears-the-home-straight/ ; IEA, op. cit. note 72, pp. 9-10; Clean Energy Ministerial, “[email protected] 73 Meghan Sapp, “Norway achieves 20% blending mandate more Campaign”, 8 June 2017, https://www.iea.org/media/topics/ http://www. than 2% early”, Biofuels Digest, 26 December 2017, . transport/3030CampaignDocumentFinal.pdf biofuelsdigest.com/bdigest/2017/12/26/norway-achieves-20- blending-mandate-more-than-2-early/ ; Norway Today, “Biofuel STA, “Slovenia to ban sale of new petrol and diesel cars 74 targets reached a few years before time”, 18 February 2018, h t t p : // from 2030”, 12 October 2017, https://english.sta.si/2438514/ ; norwaytoday.info/finance/biofuel-targets-reached-years-time/ slovenia-to-ban-sale-of-new-petrol-and-diesel-cars-from-2030 . Meghan Sapp, “Norway may nix E20 plans due to high cost and Anushka Asthana and Matthew Taylor, “Britain to ban sale of all 75 alleged increased GHG emissions”, Biofuels Digest, 9 March 2017, (UK), diesel and petrol cars and vans from 2040”, The Guardian http://www.biofuelsdigest.com/bdigest/2017/03/09/norway-may- 25 July 2017, https://www.theguardian.com/politics/2017/jul/25/ nix-e20-plans-due-to-high-cost-and-alleged-increased-ghg- britain-to-ban-sale-of-all-diesel-and-petrol-cars-and-vans- emissions/ ; “Biofuel may backfire as a budget bluff”, News in English ; Angelique Chrisafis and Adam Vaughan, “France to from-2040 Norway, 8 March 2017, http://www.newsinenglish.no/2017/03/08/ (UK), 6 ban sale of petrol and diesel cars by 2040”, The Guardian . The existing EU Renewable biofuel-may-backfire-as-a-budget-bluff https://www.theguardian.com/business/2017/jul/06/ July 2017, Energy Directive requires conventional biofuels counted towards the ; franceban-petrol-diesel-cars-2040-emmanuel-macron-volvo national targets or receiving government support to achieve a 50% Jack Ewing, “France plans to end sales of gas and diesel cars greenhouse emissions benefit compared to fossil fuels from 2017, by 2040”, New York Times , 6 July 2017, https://www.nytimes. and feedstocks may not to be grown in areas converted from land com/2017/07/06/business/energy-environment/france-cars-ban- with previously high carbon stock, such as wetlands or forests, from ; Stephen Castle, “Britain to ban new diesel and gas gas-diesel.html EC, “Sustainability criteria”, https://ec.europa.eu/energy/en/topics/ New York Times cars by 2040”, https://www.nytimes. , 26 July 2017, , viewed 12 April 2018; renewable-energy/biofuels/sustainability-criteria ; com/2017/07/26/world/europe/uk-diesel-petrol-emissions.html Roundtable on Sustainable Biomaterials, “Certification”, https://rsb. 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255 ENDNOTES · 02 POLICY LANDSCAPE 02 Suzuki and Nissan prepare to enter India’s EV market”, Mercom . irena_renewable_energy_auctions_in_developing_countries.pdf https://mercomindia.com/maruti- India, 31 October 2017, German Ministry for Economic Affairs and Energy, “The next 95 ; Raj Prabhu, suzuki-nissan-prepare-enter-indias-ev-market/ phase of the energy transition: The 2017 Renewable Energy “India plans to deploy seven million electric vehicles by 2020”, https://www.bmwi.de/Redaktion/EN/Artikel/ Sources Act”, Mercom India, 16 August 2017, https://mercomindia.com/ Energy/eeg-2017.html , viewed 23 March 2018. india-plans-deploy-seven-million-electric-vehicles-2020/ . 96 Bundesministerium für Wirtschaft und Energie, EEG-Novelle Charlie Sorrel, “Norway won’t ban gas cars yet, but it will 78 2017. Kernpunkte des Bundestagsbeschlusses vom 8.7.2016 make them harder and harder to use”, , 13 June Fast Company POLICY LANDSCAPE (Berlin: 2016), p.15, https://www.bmwi.de/Redaktion/DE/ 2016, https://www.fastcompany.com/3060722/norway-wont- Downloads/E/eeg-novelle-2017-eckpunkte-praesentation. ban-gas-cars-yet-but-it-will-make-themharder-and-harder- . pdf?__blob=publicationFile&v=11 ; “Norway has no plans to ban petrol and diesel cars”, to-use Car and Bike, 19 August 2016, https://auto.ndtv.com/news/ 97 Emiliano Bellini, “Moldova’s new renewable energy law comes norway-has-no-plans-to-ban-petrol-and-diesel-cars-1445921 . PV Magazine into force, solar expected to see first growth”, , 27 March 2017, ht tp s://w w w. pv-magazine . c om/20 17/03/2 7/ 79 David Roberts, “The world’s largest car market just announced an REFERENCES I moldovas-new-renewable-energy-law-comes-into-force-solar- imminent end to gas and diesel cars”, Vox, 13 September 2017, h t t p s : // www.vox.com/energy-and-environment/2017/9/13/16293258/ expected-to-see-first-growth/ . ; Bloomberg New Energy Finance (BNEF), ev-revolution Doaa Farid, “Electricity ministry will shift to auctions to 98 “China gives automakers more time in world’s biggest EV encourage investment”, Egypt Today, 17 October 2017, h t t p : // https://about.bnef.com/blog/ plan”, 28 September 2017, www.egypttoday.com/Article/3/28109/Electricity-Ministry- . china-to-start-new-energy-vehicle-production-quota-from-2019/ will-shift-to-auctions-to-encourage-investment ; Saurabh 80 Fred Lambert, “U.S. cities’ massive electric vehicle order Mahapatra, “Pakistan to finally embrace solar power auctions”, increases to 114,000 vehicles, ~40 companies competing”, CleanTechnica, 20 March 2017, https://cleantechnica. 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Energy for All, “Renewables win more than half of Chile’s power 82 Ibid., both references. https://www.seforall.org/content/ tender”, 23 August 2016, Daniel Cooper, “China’s Shenzhen city electrifies all 16,359 of 83 renewables-win-more-half-chile-power-tender Hugo Lucas, https://www. its public buses”, Engadget, 29 December 2017, Ferroukhi and Hawila, op. cit. note 94. . engadget.com/2017/12/29/china-shenzhen-public-electric-buses/ Jan Dodd, “France launches 3GW onshore tender”, Wind Power 100 (Paris: 2016), p. 18, 84 IEA, https://uic.org/ Railway Handbook 2016 , 9 May 2017, Monthly http://www.windpowermonthly.com/ . IMG/pdf/iea-uic_railway_handbook_2016.pdf article/1433001/france-launches-3gw-onshore-tender ; Tom Ibid. 85 Kenning, “France boosts PV tenders, pits solar against wind, announces self-consumption winners”, PV-Tech, 13 December Julian Spector, “Bay Area Rapid Transit will run trains 86 2017, https://www.pv-tech.org/news/france-boosts-pv-tenders- on 100% renewable energy”, Greentech Media, 5 May . pits-solar-against-wind-announces-self-consumption 2017, https://www.greentechmedia.com/articles/read/ bay-area-rapid-transit-will-run-on-100-renewable-energy . Future planned tenders were cancelled due to a need to further 101 87 Sammy El Takriti, Nikita Pavlenko and Stephanie Searle, adjust national policy to comply with EU state aid rules, from Mitigating International Aviation Emissions: Risks and Emiliano Bellini, “Poland cancels solar auction for projects Opportunities for Alternative Jet Fuels (Washington, DC: exceeding 1 MW”, h t t p s : // PV Magazine , 14 November 2017, International Council on Clean Transportation Fuels, 2017), p. 1, www.pv-magazine.com/2017/11/14/poland-cancels-solar- https://www.theicct.org/sites/default/files/publications/Aviation- auction-planned-fordecember/ ; Emiliano Bellini, “Russia ; International Alt-Jet-Fuels_ICCT_White-Paper_22032017_vF.pdf allocates 520 MW of PV capacity in 2017 renewable energy Air Transport Association (IATA), “Fact Sheet: Alternative auction”, PV Magazine , 15 June 2017, https://www.pv-magazine. https://www.iata.org/ Fuels” (Montreal: December 2017), p. 3, com/2017/06/15/russia-allocates-520-mw-of-pv-capacity- pressroom/facts_figures/fact_sheets/Documents/fact-sheet- ; Spain’s FIT remains for in-2017-renewable-energy-auction/ ; alternative-fuels.pdf projects under 500 kW, with premiums on top of the market 88 IATA, op. cit. note 87, p. 3; El Takriti, Pavlenko and Searle, op. cit. price for projects over 500 kW, from “Spain awards 5GW of note 87, p. 1. clean power”, reNEWS, 27 July 2017, http://renews.biz/107976/ 89 Sara Stefanini, “Biofuels options for aviation running low”, . spain-awards-5gw-of-clean-power/ https://www.politico.eu/article/ Politico, 19 June 2017, IEA/IRENA Joint Policies and Measures Database, “Israel solar 102 . biofuel-options-for-aviation-running-low-sustainable-aviation/ https://www.iea.org/policiesandmeasures/pams/ PV auction”, (Abu Dhabi: 2017), Biofuels for Aviation: Technology Brief IRENA, 90 , viewed 9 December 2017. israel/name-165123-en.php http://www.irena.org/documentdownloads/publications/ p. 7, IEA/IRENA Joint Policies and Measures Database, “India 103 irena_biofuels_for_aviation_2017.pdf . https://www.iea.org/ national onshore wind capacity auction”, 91 Certified blends include hydro-processed esters and fatty acids policiesandmeasures/pams/india/name-166493-en.php , viewed (50% maximum blend), Fischer-Tropsch kerosene without and 9 December 2017. with aromatics (both 50% blend), synthesised iso-paraffins from Celeste Wanner, “Massachusetts kicks off new ocean energy 104 hydro-processed fermented sugars (10% blend) and alcohol to jet development process”, American Wind Energy Association, 5 July kerosene (30% blend), from Ibid. http://www.aweablog.org/massachusetts-kicks-off-new- 2017, 92 IATA, op. cit. note 87, p. 1. ocean-energy-development-process-2/ . 93 Hilary Lamb, “Norway to begin electrifying its aircraft”, Engineering 105 IEA, Renewable Policy Update , No. 16, 30 October 2017, and Technology , 19 January 2018, https://eandt.theiet.org/content/ https://www.iea.org/media/pams/REDRenewablePolicyUpdate articles/2018/01/norway-to-begin-electrifying-its-aircraft/ . . No1620171030_web.pdf Gabriela Elizondo Azuela et al., Performance of Renewable 94 Ashley Theron, “Get FiT Zambia is official”, ESI Africa, 106 (Washington DC: World Bank, Energy Auctions 8 December 2017, https://www.esi-africa.com/get-fit- 2014), p. 2, http://documents.worldbank.org/curated/ zambia-is-official/ ; Emiliano Bellini, “Vietnam releases en/842071468020372456/pdf/WPS7062.pdf ; Hugo Lucas, PV Magazine FIT and net metering scheme for solar”, , 19 Renewable Energy Auctions Rabia Ferroukhi and Diala Hawila, April 2017, https://www.pv-magazine.com/2017/04/19/ in Developing Countries (Abu Dhabi: IRENA, 2013), p. 6, vietnam-releases-fit-and-net-metering-scheme-for-solar/ . https://www.irena.org/documentdownloads/publications/ 255

256 ENDNOTES · 02 POLICY LANDSCAPE 02 107 “Govt launches renewable energy feed-in tariff”, Lusaka Times , The-Electricity-Net-Metering-Rules-2017.pdf ; as of June 2017, https://www.lusakatimes.com/2017/10/20/ 20 October 2017, Namibian generators operating commercial or residential solar govt-launches-renewable-energy-feed-n-tariff/ ; GET FiT Zambia, PV systems of up to 500 kW were permitted to inject electricity “About GET FiT Zambia”, https://www.getfit-zambia.org/about/ , into the national grid for the first time, from IEA/IRENA Joint viewed 23 March 2018. Policies and Measures Database, “Namibia Net-Metering Rules 2015”, https://www.iea.org/policiesandmeasures/pams/namibia/ Box 3 based on the following sources: Vietnam’s regulation 108 , viewed 9 December 2017. name-165009-en.php currently lasts through June 2019, from Emiliano Bellini, “Vietnam releases FIT and net metering scheme for solar”, PV Magazine , 19 Georgios Maroulis, “Net-metering (for households, public administration 116 POLICY LANDSCAPE April 2017, https://www.pv-magazine.com/2017/04/19/vietnam- buildings and commercial industrial units)”, RES Legal, updated releases-fit-and-net-metering-scheme-for-solar/ ; projects are http://www.res-legal.eu/search-by-country/ 14 November 2017, in Binh Phuoc (100 MW), in Dak Lak (300-500 MW), at Thac cyprus/single/s/res-e/t/promotion/aid/net-metering-for-households- Ba Lake (500 MW) and in Binh Thuan (200 MW), from London local-administration-buildings-and-commercial-industrial-units/ School of Economics and Political Science, Grantham Research . lastp/115/ Institute on Climate Change and the Environment, “Decision No. Emiliano Bellini, “Lithuanian government improves net metering 117 REFERENCES I 11/2017/QD-TTg of the Prime Minister dated 11 April 2017 on the scheme for solar”, PV Magazine https://www. , 31 March 2017, mechanism for encouragement of the development of solar power pv-magazine.com/2017/03/31/lithuanian-government-improves- http://www.lse.ac.uk/GranthamInstitute/law/ projects in Vietnam”, net-metering-scheme-for-solar/ ; Emiliano Bellini, “Lithuania raises decision-no-112017qd-ttg-of-the-prime-minister-dated-11-april-2017- , PV Magazine net metering size limit for businesses and farmers”, on-the-mechanism-for-encouragement-of-thedevelopment-of-solar- https://www.pv-magazine.com/2017/12/05/ 5 December 2017, . power-projects-in-vietnam lithuania-raises-net-metering-size-limit-for-businesses-and-farmers/ . Hannah Brenton, “Luxembourg increases financial support for 109 Metering and Smart Energy International, “Mauritius CEB 118 solar energy”, h t t p s : // , 15 September 2017, Luxembourg Times launches phase two net metering scheme”, 24 July 2017, h t t p s : // www.wort.lu/en/luxembourg/renewables-luxembourg-increases- www.metering.com/news/mauritius-ceb-net-metering-scheme/ . . financial-support-for-solar-energy-59bb8bd456202b51b13c3464 119 Waqar Mustafa, “Pakistan’s solar homeowners get green light to sell German Federal Ministry for Economic Affairs and Energy, 110 power to national grid”, Thomson Reuters Foundation, 24 November “Minister Zypries announces green light from Brussels for http://news.trust.org/item/20171124082528-bs8p5/ . 2017, h t t p s : // landlord-to-tenant electricity supply”, 20 November 2017, 120 Mandatory net metering is in place in 38 states, the District www.bmwi.de/Redaktion/EN/Pressemitteilungen/2017/20171120- of Columbia and the territories of American Samoa, Puerto zypries-gruenes-licht-aus-bruessel-fuer-mieterstrom.html . Rico and the US Virgin Islands, from DSIRE, “Net Metering 111 Paul Spackman, “Feed-in tariffs changes do little to help farm http://www.dsireusa.org/resources/ Policies”, November 2017, , 6 March 2017, Farmers Weekly http://www.fwi.co.uk/ AD”, detailed-summary-maps/net-metering-policies-2/ . . business/feed-in-tarrifs-changes-do-little-to-help-farm-ad 121 Nevada Public Utilities Commission, “Order granting in part and The SMART programme targets solar PV that is linked with 112 denying in part joint application by NV Energy on Assembly Bill storage and/or installed on carports, brownfields, buildings and http://pucweb1.state.nv.us/PDF/ 405”, 1 September 2017, p. 2, landfills, as well as low-income, public and community solar . AxImages/DOCKETS_2015_THRU_PRESENT/2017-7/23611.pdf PV projects, from Jennifer Runyon, “Massachusetts opens RFP 122 Maxine Joselow, “In N.H., spirit of compromise prevails”, for the first 100 MW of ‘smart’ solar”, Renewable Energy World, https://www.eenews.net/energywire/ E&E News , 28 June 2017, http://www.renewableenergyworld.com/ 17 November 2017, . stories/1060056687 articles/2017/11/massachusetts-opens-rfp-for-the-first-100- ; capacity awarded in Ontario includes mw-of-smart-solar.html 123 Bob Christie, “Arizona regulators OK utility rate hike, solar solar PV (147.9 MW), biogas (1.6 MW) and landfill gas (0.5 https://www. Associated Press , 15 August 2017, payment cuts”, MW), from Independent Electricity System Operator, “Contract usnews.com/news/best-states/arizona/articles/2017-08-15/ http://www.ieso.ca/en/ offers for FIT 5”, 20 September 2017, arizona-regulators-to-ponder-rate-boost-for-aps sector-participants/feed-in-tariff-program/news-and-updates/ 124 Under the new regulations, rooftop systems are limited to contract-offers-for-fit-5---september-20-2017 . a maximum of 50% of the consumer’s sanctioned load/ Josefin Berg, “China confirms 2017 PV FiT rates – growing 113 contract demand, from Saumy Prateek, “GERC amends concerns over 2016 PV installations”, HIS Markit, 10 January 2017, rooftop solar net metering regulations in Gujarat”, Mercom https://technology.ihs.com/587319/china-confirms-2017-pv-fit- https://mercomindia.com/ India, 27 October 2017, rates-in-line-with-ihs-forecastassumptions . . gerc-rooftop-solar-net-metering-regulations-gujarat/ Karnataka’s FIT was reduced from INR 4.5 per kWh to INR 3.74 per 114 , 125 Ilias Tsagas, “Greece applies virtual net metering”, PV Magazine kWh (USD 0.07 to 0.06 USD per kWh), from Kaavya Chandrasekaran, 12 May 2017, https://www.pv-magazine.com/2017/05/12/ “Wind power developers upset over Karnataka tariff revision”, . greece-applies-virtual-net-metering/ Economic Times https://economictimes. , 11 September 2017, 126 25x’25, “State Roundup: Alliant seeks to double-down on wind in indiatimes.com/industry/energy/power/wind-power-developers- http://www.25x25.org/ , 11 August 2017, Iowa”, Weekly REsource upsetover-karnataka-tariff-revision/articleshow/60454295.cms ; . index.php?option=com_content&task=view&id=1468&Itemid=246 Taiwan’s FIT adjustments include: solar PV reduced by 12.8% to 13.5%, 127 Box 4 based on the following sources: Australian Energy Regulator, wind reduced by 0.7% to 4.6% and geothermal increased by 5%, “Demand management incentive scheme and innovation from Alexander Richter, “Taiwan sets tentative 2018 feed-in-tariff for allowance mechanism”, 14 December 2017, https://www.aer.gov. geothermal and other renewables”, ThinkGeoEnergy, 22 September au/networks-pipelines/guidelines-schemes-models-reviews/ http://www.thinkgeoenergy.com/taiwan-sets-tentative-2018- 2017, demand-management-incentive-scheme-and-innovation- feed-in-tariff-for-geothermal-and-other-renewables/ . allowance-mechanism ; Australian Energy Regulator, “AER incentive 115 Argentina approved its Distributed Renewable Generation law, scheme to drive potential $1bn in demand management action”, introducing net metering for small and mid-sized renewable https://www.aer. press release (Melbourne: 14 December 2017), power systems, from Emiliano Bellini, “Argentina grants final gov.au/news-release/aer-incentive-scheme-to-drive-potential-1bn- approval for new distributed generation law”, PV Magazine , 1 ; Herman K. Trabish, “Greening in-demand-management-action December 2017, https://www.pv-magazine.com/2017/12/01/ the ramp: California looks to carbon-free resources to combat the argentina-grants-finalapproval-for-new-distributed-generation- https://www.utilitydive. ‘duck curve’”, Utility Dive, 23 October 2017, law/ ; Moldova’s renewable energy law came into force in early com/news/greening-the-ramp-california-looks-to-carbon-free- 2017 providing net metering for systems up to 100 kW, from resources-to-combatthe/507831/ ; Massachusetts Department of Emiliano Bellini, “Moldova’s new renewable energy law comes Energy Resources, Executive Office of Energy and Environmental PV Magazine into force, solar expected to see first growth”, , Affairs, “Baker-Polito administration announces over $4.6 million in ht tp s://w w w. pvmagazine . c om/20 17/03/2 7/ 27 March 2017, grants for peak demand reduction projects”, press release (Boston: moldovas-new-renewable-energy-law-comes-into-force- http://www.mass.gov/eea/pr-2017/4-6-million- 14 June 2017), ; Tanzania’s net metering solar-expected-to-see-first-growth/ grants-for-peak-demand-reduction-projects.html . was enacted for renewable energy systems smaller than 1 128 Alan Finkel, Karen Moses, Chloe Munro, Terry Effeney and MW, from Energy and Water Utilities Regulatory Authority, Mary O’Kane, Independent Review into Future Security of the “The Electricity Net Metering Rules of 2017”, 27 October National Electricity Market: Blueprint for the Future (Canberra: 2017, http://www.ewura.go.tz/wp-content/uploads/2017/11/ 256

257 ENDNOTES · 02 POLICY LANDSCAPE 02 https://www.energy.gov. Commonwealth of Australia 2017), ; 25x’25, “State Roundup: MS Power launches released-today/ au/sites/g/files/net3411/f/independent-review-future-nem- state’s largest solar facility”, Weekly REsource, 14 July 2017, blueprint-for-the-future-2017.pdf ; Australian Energy Market http://www.25x25.org/application/index.php?option=com_ Commission, “System Security Market Frameworks Review”, 27 ; Solectenergy, content&task=view&id=1462&Itemid=246 http://www.aemc.gov.au/Markets-Reviews-Advice/ June 2017, “DOER announces new Massachusetts solar incentive program”, . System-Security-Market-Frameworks-Review https://solect.com/doer-solarmassachusetts-renewable-target- incentive-program/ , viewed 4 December 2017; Greentech Media, Australian Energy Market Operator (AEMO), 129 Electricity Rule “Navigate tomorrow’s power market at our Boston event”, e-mail (Melbourne: Change Proposal: Generator Technical Requirements POLICY LANDSCAPE dated 16 October 2017; Todd Olinsky-Paul, “Massachusetts https://www.aemo.com.au/-/media/Files/Electricity/NEM/ 2017), announces more energy storage grants”, Renewable Energy ; Security_and_Reliability/Reports/2017/AEMO-GTR-RCP-110817.pdf http://www.renewableenergyworld. World, 14 December 2017, Fast Frequency Response in the NEM AEMO, (Melbourne: 2017), com/ugc/articles/2017/12/13/massachusetts-announces-more- https://www.aemo.com.au/-/media/Files/Electricity/NEM/Security_ . energy-storage-grants.html and_Reliability/Reports/2017/FFR-Working-Paper---Final.pdf . 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258 ENDNOTES · 02 POLICY LANDSCAPE 02 147 Osterreichischer Automobil-, Motorradund Touringclub (OAMTC), “E-Autos werden mit 4.000 Euro pro Pkw gefordert”, h t t p s : // www.oeamtc.at/thema/elektromobilitaet/e-autos-werden- , viewed 27 April mit-4-000-euro-pro-pkwgefoerdert-17579318 2017; Bundesministerium für Verkehr und digitale Infrastruktur, Förderrichtlinie Ladeinfrastruktur für Elektrofahrzeuge in Deutschland (Berlin: 2017), https://www.bav.bund.de/ SharedDocs/Downloads/DE/Foerderung_Ladeinfrastruktur/ POLICY LANDSCAPE Foerderrichtlinie.pdf?__blob=publicationFile&v=6 . Kim Riley, “Smart partnerships pilot Pittsburgh’s renewable 148 energy plunge”, DailyEnergyInsider, 16 August 2017, h t t p s : // dailyenergyinsider.com/news/7233-smart-partnerships-pilot- pittsburghs-renewabl