retd annual report september 2005 – december 2006 international energy...

RETD Annual Report September 2005 – December 2006

INTERNATIONAL ENERGY AGENCY IMPLEMENTING AGREEMENT ON RENEWABLE ENERGY TECHNOLOGY DEPLOYMENT

Prepared by the RETD Operating Agent

Ea Energy Analyses a/s and ZSW Baden-Württemberg, May 2007

ANNUAL REPORT SEPTEMBER 2005 – DECEMBER 2006

RENEWABLE ENERGY TECHNOLOGY DEPLOYMENT

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The International Energy Agency (IEA) is an autonomous body which was established in November 1974 within the framework of the Organisation for Economic Cooperation and Development (OECD) to implement an international energy programme.

The IEA carries out a comprehensive programme of energy cooperation on energy issues across 26 of the OECD’s 30 member countries. The basic aims of the IEA are:

To maintain and improve systems for coping with oil supply disruptions;

To promote rational energy policies in a global context through cooperative relations with non-member countries, industry and international organisations;

To operate a permanent information system on the international oil market;

To improve the world’s energy supply and demand structure by developing alternative energy sources and increasing the efficiency of energy use; and

To assist in the integration of environmental and energy policies.

The IEA member countries are: Australia, Austria, Belgium, Canada, the Czech Republic, Denmark, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Japan, the Republic of Korea, Luxembourg, the Netherlands, New Zealand, Norway, Portugal, Spain, Sweden, Switzerland, Turkey, the United Kingdom and the United States. The European Commission takes part in the work of the IEA.

Activities of the IEA’s International Energy Technology Cooperation Programme are set up under Implementing Agreements, independent bodies operating in a framework provided by the IEA. These agreements bring together national experts from research, government and industry to address common challenges in specific technologies and to share the fruit of their combined efforts. Within the field of renewable energy resources there are currently nine technology-specific Implementing Agreements.

Bioenergy – www.ieabioenergy.com

Geothermal Energy Research Technology – www.iea.org/tech/gia/index.htm

Hydropower Technologies and Programmes – www.ieahydro.org

Ocean Energy Systems – www.iea-oceans.org

Photovoltaic Power Systems – www.iea-pvps.org

Production and Utilisation of Hydrogen – www.eere.energy.gov/hydrogenandfuelcells/hydrogen/iea

Solar Heating and Cooling Systems – www.iea-shc.org

Solar Power and Chemical Energy Systems – www.SolarPACES.org

Wind Turbine Systems – www.ieawind.org

This report is published by

the Executive Committee of the RETD Implementing Agreement.

Layout: Dynamo, Ireland, www.dynamo.ie

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The period is characterised by growth and consolidation and at present the RETD has evolved from the original five to the current nine members Canada, Denmark, France, Germany, Ireland, Italy, the Netherlands, Norway, and the United Kingdom with Japan and New Zealand participating as observers.

The first initiative, launched by the RETD was an investigation of the barriers, challenges and opportunities for renewable energy. The study was followed by a stakeholder workshop in March, 2006 where the current situation for renewable energy and possible strategies for deployment were discussed with key stakeholders. One of the outcomes was the identification of priority areas for the RETD and the Strategic Plan of Work.

In June 2006, a consortium consisting of EA Energy Analysis and ZSW Baden-Württemberg was contracted as Operating Agent and in October the first RETD project activities were launched. The reports and deliverables from these projects will be available in autumn 2007.

The RETD functions within the framework of the IEA and adheres to the principles of energy security, environmental protection and economic efficiency. The acceleration of deployment of renewables within this framework

requires three key elements: Political readiness to increase deployment, the technical capability and enabling regulatory and market conditions. Increasingly ambitious targets for the deployment of renewables have been set whilst the IEA Implementing Agreements have expanded the technical capability to harness renewable resources. The role of the RETD is to provide information on the third key element, enabling regulatory and market measures that assist renewables overcome the “valley of death” between research and development on the one side and market deployment on the other. The RETD will contribute by providing information on the most cost effective ways of deploying renewables as well as preparing and adapting energy markets for increased levels of renewable energy in order to provide an enabling environment for the accelerated deployment of renewables that will result in a more sustainable energy future for all.

It is with excitement and anticipation that the RETD moves into 2007 with the clear aim of being an important contributor to an enabling environment for the accelerated deployment of renewable energy technologies.

Kaare Sandholt and Ole Langniß Operating Agent of the RETD Implementing Agreement Copenhagen, Denmark, April 2007

The IEA Implementing Agreement on Renewable Energy Technology Deployment (RETD) was formally established in September 2005 with five contracting parties, namely Denmark, France, Germany, the Netherlands, and Norway. This first annual report of the RETD thus covers the period September 2005 to end December 2006.

FOREWORD

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1 THE RETD IMPLEMENTING AGREEMENT 4

1.1 VISION, MISSION AND OBJECTIVES 4

1.2 IMPLEMENTING PLAN AND ANNUAL WORK PROGRAMMES 5

2 THE INTERIM PERIOD 6

3 ACCOMPLISHMENTS 2005/6 8

3.1 AIM 8

3.2 CONSOLIDATION OF INSTITUTIONAL SET-UP 8

3.3 ACHIEVEMENTS IN BRIEF 10

3.4 EXECUTIVE COMMITTEE MEETINGS 13

4 PROJECT FACT SHEETS 14

5 EXECUTIVE COMMITTEE MEMBERS 21

6 DESK OFFICER, OPERATING AGENT AND COMMON FUND MANAGER 23

LIST OF COnTEnT

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BCO Barriers, Challenges and Opportunities

ESTIF European Solar Thermal Industry Federation

EU European Union

ExCo Executive Committee

G8 Eight most industrialised nations in the world, comprising Canada, France, Germany, Italy, Japan, Russia, the United Kingdom, and the United States.

IA Implementing Agreement

IEA International Energy Agency

OECD Organisation for Economic Cooperation and Development

RE Renewable energy

REn21 Renewable Energy Policy Network for the 21st century

REU IEA Renewable Energy Unit

RETD Renewable Energy Technology Deployment

REWP IEA Renewable Energy Working Party

TSO Transmission system operator

Un United Nations

Un CSD UN Commission for Sustainable Development

ABBREvIATIOnS

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1.1 VISION, MISSION AND OBJECTIVES

The vision, mission and objectives of the Renewable Energy Technology Deployment (RETD) Implementing Agreement under the IEA are as follows:

1 ThE RETD IMPLEMENTING AGREEMENT

Active contributions to the formulation of public policy are key to the RETD Implementing Agreement, a feature unique to the RETD. The projects launched are intended to provide the necessary facts and comparisons to make such active contributions possible. The first considerations of the RETD within this context are decisions as to which topics of debate and events it is most important for the RETD to contribute in order to cost-effectively promote renewable energy deployment on a global scale.

By emphasizing crosscutting and policy-focused deployment measures, the RETD Implementing Agreement supplements the more technology-focused work of the other Implementing Agreements, with the aim to strengthen and unify the voice for renewable energy in the international energy policy debate.

Unlike the other nine IEA Implementing Agreements on renewable energy, the RETD member countries pool together financial resources into a common fund with the requisite budgetary regulations. The common fund is then used for financing relevant projects and international events at which to showcase best practises and information on renewable energy. An extensive network of key stakeholders including the renewable energy Implementing Agreements, the REWP and the IEA Secretariat

RETD vISIOn

A significantly higher utilisation of renewable energy technologies will result from international cooperation, thereby encouraging more rapid and efficient deployment.

RETD MISSIOn

To measurably improve cooperation between participating governments in identifying cross-cutting barriers to deployment and providing “best practice” solutions, thus strengthening international collaboration for technology deployment.

To provide guidance to the private sector and policy makers on innovative business strategies and projects that encourage technology deployment by fostering public-private partnership projects.

To inform and facilitate ongoing international dialogue and public awareness of renewable energy deployment by contributing concrete examples on deployment solutions.

RETD OBjECTIvES

1. To elaborate and present options for “best practice” policy measures and mechanisms for cost reduction, thereby enabling an increased use of renewable energy in competitive energy markets through strengthened international collaboration.

2. To elaborate and present options for innovative business strategies and projects that will encourage renewable technology deployment to public and private sector stakeholders.

3. Building on the unique framework of the IEA, to disseminate information and enhance knowledge about renewable technology deployment, complementing other information programs in supporting improved public and private sector decision making.

The first mandate period of the RETD Implementing Agreement spans from 2005/6-2010.

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is consulted in this process, as they are also invited to suggest relevant projects. External consultants are then employed to carry out the activities that have been defined and designed by the RETD.

It is expected that more countries will join the RETD in the near future and membership and participation from all countries interested in a cost efficient deployment of renewables is welcomed. It is the belief of the RETD that broader international corroboration in deploying renewables will lead to more meaningful results from RETD activities. In addition, the number of projects implemented by the RETD promoting the cost effective deployment of renewable energy internationally is likely to increase with a broadened membership base.

The RETD Implementing Plan 2005/6 -2010 outlines the overall strategies for the work of the RETD as well as the procedural and organisational framework for the first mandate period (2005/6-2010). It functions as a guide for the work to be undertaken and is supplemented with annual Work Programmes. The Work Programme describes project activities undertaken within the RETD, their anticipated outcomes and deliverables, their budgetary and financial provisions and provides an indication of their continuation and development into subsequent years. The Work Programme is developed by the Operating Agent in consultation with the Executive Committee (ExCo) of the RETD and provides a reference for stakeholders to follow the progress of the RETD in developing project activities over the course of the year in order to achieve the objectives of the Implementing Agreement.

The Work Programme is a living document in that it reflects the path of development of RETD activities throughout the year. This flexibility allows the ExCo to react quickly to policy trends and changes and thereby maintain the relevance and contemporary nature of project activities in particular and the RETD in general. At the end of each year the completed Work Programme forms the basis for the Annual Report.

1.2 IMPLEMENTING PLAN AND ANNUAL WORK PROGRAMMES

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2 THE InTERIM PERIOD

At the 45th REWP meeting in March 2004 the idea was introduced to create a vehicle, within the framework of the IEA, which could address internationally crosscutting deployment measures and the efficient handling of renewable energy technology. A decision was made at the International Conference for Renewable Energies in Germany, June 24, 2004, to form an Implementing Agreement on deployment of renewable energy technologies.

Prior to the formal establishment of the Implementing Agreement a series of interim meetings took place. In this interim period the visions for the RETD’s work were discussed among a group of interested IEA countries and clarification was sought on the exact aim and required set-up of the new Implementing Agreement.

Mr. Norbert Gorissen, Germany and Mr. Christophe Jurczak, France functioned as co-chairs for the interim period and the IEA Secretariat provided expert support to the interim ExCo. The discussions held in the interim period were iterative by nature and views refined as discussions progressed. A few of the highlights of the interim meetings are listed below.

1ST InTERIM ExCO MEETInG, OCTOBER 4, 2004, ROME, ITALy

Present were Denmark, France, Germany, Ireland, Italy, Japan, Korea, Netherlands, New Zealand, and Norway as were representatives of the European Commission and the IEA Secretariat.

A proposed draft work programme for the new Implementing Agreement, developed on the basis of the meeting in Paris, was used as catalyst for a discussion on the general objectives of the IA and which areas to centre the work on. It was generally agreed that the key novelty would be to truly reach the politicians and to complement ongoing initiatives for example through cooperation with other Implementing Agreements. A high visibility of the RETD will be important to create the required leverage for renewable energy technologies.

A preliminary budget estimate was discussed as was the appropriate strategy for expanding the circle of participants and ensuring involvement of the private sector.

2nD InTERIM ExCO MEETInG, jAnUARy 11, 2005, BERLIn, GERMAny

Present were Australia, Canada, Denmark, France, Germany, Italy, Netherlands, and Norway as were representatives of the IEA Secretariat.

Requirements regarding formal approval of the RETD IA including letters of commitment and the exact contents of the legal text were discussed and a launch schedule for the RETD IA agreed.

A three-tier funding approach was debated and initial contributions of potentially contracted parties determined. Prospective contracting parties were Canada, Denmark, France, Germany, Ireland, Italy, Netherlands, and Norway while Australia, the European Commission, Japan, Korea, New Zealand, and Spain remained interested parties. Once the RETD is more firmly established a suitable strategy for involving the private sector will be elaborated including the type and timing of involvement.

Pros and cons of various Operating Agent options were discussed.

A draft strategic plan (implementing plan) and a revised draft work programme were discussed. The methodology outlined in the strategic plan will form the basis for project identification. However, already at this stage it was clear that there was a need for an up-dated analysis of barriers of deployment and strategies and solutions to overcome these.

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3RD InTERIM ExCO MEETInG, APRIL 5-6, 2005, SOPhIA AnTIPOLIS, FRAnCE

Present were Denmark, France, Germany, Italy, Netherlands, and Norway as were representatives of the IEA Secretariat. A teleconference was used to obtain the views of Canada, Ireland and Netherlands.

At the time of the meeting, Letters of Commitment were signed and the legal text approved by Denmark, France, Germany, Ireland, Italy, and Norway.

It was agreed to start preparing an operational document for the RETD with all modalities of operation (why/what/when/how). Proposals for Operating Agent options were discussed and it was decided to hire a consultant as interim Operating Agent for the period until the RETD Implementing Agreement was formally

established allowing for time to develop Terms of Reference and a suitable selection procedure for an Operating Agent for the first RETD period.

A brain storming session of action options resulted in a list of criteria for identification and rating of potential projects under the RETD IA and events to be considered in the action plan for the RETD in the next two years. Three programme groups were agreed and a preliminary list of priority projects developed for each.

4Th InTERIM ExCO MEETInG, jUnE 23, 2005, PARIS, FRAnCE

Present were Canada, Denmark, France, Germany, Ireland, Italy, Netherlands, and Norway as were representatives of the IEA Secretariat and the Chairman of the REWP.

Mr. Rick Sellers of the IEA Secretariat was before the meeting appointed Operating Agent for the pre-RETD phase, starting August 1, 2005. It was commonly agreed that it is important to closely link the ExCo with the future Operating Agent and that the entity selected Operating Agent should already have an established reputation in the world of energy.

The outline of an Implementing Plan intended to give a structure for the work to be carried out by the RETD was again discussed. The Implementing Plan will be instrumental for monitoring progress and achievements. The RETD name was discussed and logo development debated.

The REWP Chairman recommended that the RETD be ambitious.

The barriers study should be launched as soon as possible and a workshop held to select project

priorities, possibly in conjunction with the next REWP meeting.

It was decided to have three ExCo meetings in 2006 due to additional challenges and opportunities arising from various events such as the UN CSD-14 and the G8. The importance of further outreach and recruitment of participants was stressed. A flyer and website could be important tools in this process. Outreach activities since last meeting were primarily targeted at Australia, United Kingdom and USA. A value proposition for followers different from 1st generation participants should be developed for promotion of the RETD.

It was agreed to keep the time window for signing the Implementing Agreement open until end September, 2005 so that as many potential contracting countries as possible could sign on before the first ExCo meeting October 19, 2005.

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3 ACCOMPLIShMEnTS 2005/6

3.1 AIM

The chief goals for 2005/6 were to continue the work already done in the interim period.

ChIEF GOALS FOR 2005/6

Consolidation of institutional set-up:

– Common Fund Manager;

– Operating Agent for the first mandate period; and

– Broadening the membership.

To clarify the specific areas on which to focus early RETD endeavours;

To initiate the first projects of the RETD, laying the foundation for a more open-ended discussion of possibilities for exploiting renewable energy on a large scale; and

To bring the new RETD Implementing Agreement to the attention of key stakeholders, introducing the important contribution of RETD to the debate on renewable deployment in the years to come. The UN CSD-14 conference (USA) and the Renewable Energy 2006 Conference (Japan) were judged very suitable for “flagging” the RETD Implementing Agreement.

3.2 CONSOLIDATION OF INSTITUTIONAL SET-UP

Important steps for the RETD Implementing Agreement were achieved in 2005/6 including laying down the organisational and procedural foundation for sound operation.

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At the first ExCo meeting, October 19, 2005, Paris, France, the five contracting countries elected Mr. Norbert Gorissen (Ministry for the Environment, Germany) Chairman of the RETD and Mr. Daniel Argyropoulos (Ministry for the Environment, Germany) Secretary. The election of Vice Chairs was postponed until the second ExCo meeting to allow countries, already in the process of becoming participants, to vote. By the time of the second ExCo meeting (March 23, 2006, Brussels, Belgium) additional three countries (Canada, Italy, and United Kingdom) had formally become participants and Ms. Annette Schou (Danish Energy Authority, Denmark) was elected Vice Chairperson. The signing of Ireland was underway and Japan was invited as observer.

In mid 2006, Mr. Norbert Gorissen had to withdraw from the post as Chair due to a change in work obligations and as a result Mr. Hans Jørgen Koch (Danish Energy Authority, Denmark) was elected Chairman at the third ExCo meeting (June 29-30, 2006) and Mr. Daniel Argyropoulos, Ministry for the Environment, Germany was elected Vice Chairperson while Ms. Annette Schou (Danish Energy Authority, Denmark) stepped down.

The consultant firm Projektträger Jülich, Germany was at the second ExCo meeting selected as Common Fund Manager for the first mandate period.

The task of the Operating Agent for the RETD is to provide secretariat services, to proactively identify opportunities for promotion of renewable energy technologies and propose project ideas for the RETD Work Programme. At the third ExCo meeting (June 29, 2006) a consortium consisting of EA Energy Analysis, Denmark and ZSW Baden-Württemberg, Germany was appointed as Operating Agent. An evaluation of the Operating Agent will take place after one year of operation.

During 2006, the number of contracting parties reached a total of nine – Canada, Denmark, France, Germany, Ireland, Italy, the Netherlands, Norway, and the United Kingdom with Japan and New Zealand participating as observers.

DURInG 2006, ThE nUMBER OF COnTRACTInG PARTIES REAChED A TOTAL OF nInE.

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3.3 ACHIEVEMENTS IN BRIEF

The RETD continued to build on the work already done by the interim ExCo with regard to creating an overview of the relevant areas on which to focus the first projects.

TABLE 1: ThE SELECTED FOCUS AREAS FOR EACh OF ThE ThREE RETD OBjECTIvES

OBjECTIvE FOCUS AREA

To elaborate and present options for “best practice” policy measures and mechanisms for cost reduction, enabling increased use of renewable energy in competitive energy markets through strengthened international collaboration.

Levelling the playing field for renewable energy, compared with conventional energy technologies

Facilitating policy strategies for accelerating the deployment of renewable energy

To elaborate and present options for innovative business strategies and projects that will encourage renewable technology deployment to public and private sector stakeholders.

Financing of renewable energy projects

Cooperation between private and public stakeholders

To disseminate information and enhance knowledge about renewable technology deployment, complementing other information programs in supporting improved public and private sector decision making.

Dissemination of information

The first initiative launched by the RETD was an investigation of the barriers, challenges and opportunities for renewable energy. The objective was to compile relevant studies published in recent years. March 22, 2006, the RETD organised a stakeholder workshop presenting the preliminary findings of the investigation to approx. 40 representatives of key market players and authorities. During two group sessions the current situation for renewable energy technologies was discussed and possible strategies for deployment were debated.

In April, a Round Table Discussion was held in Paris back-to-back to a REWP meeting with the purpose to discuss the results and recommendations of the workshop hold in March 2006, especially regarding activities that the RETD should take on, and to establish a co-operation between the IA’s on deployment issues.

The outcomes of these initial RETD activities and the second ExCo meeting were:

A synthesis report on relevant studies which included the

comments made at the stakeholder workshop – “Renewable Energy Technology Deployment – Barriers, challenges and opportunities” (also referred to as “the BCO report”);

A folder presenting five poor excuses for not using renewable energy and four good reasons for action – “Renewable energy for dummies”; and

Elaboration of a list of suggestions for areas on which to focus the RETD efforts during the first programme period 2005/6-2010.


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The focus areas for RETD projects developed and carried out during the first programme period 2005/6-2010 are shown in Table 1. In addition to these focus areas there is a fourth portfolio of projects that includes outreach activities and performance evaluations of the RETD Implementing Agreement and the Operating Agent.

At the fourth ExCo meeting (October 9-10, 2006) it was decided to launch three project activities:

Costs and benefits of renewable energy to society;

Renewable energy technologies in heating and cooling markets; and

Policy instrument design to reduce financing costs in renewable energy technology projects.

These projects are intended to provide important inputs in the international energy policy debate and the results will be used as a basis for RETD events in 2007 and for promoting RETD at international events.

It was also decided to arrange a workshop together with the REWP and the REU on deployment issues.

The project “Costs and benefits of renewable energy to society” aims to develop a cost-benefit calculator that will enable any

and all stakeholders to make cost-benefit analyses based on generally accepted values of calculation parameters from respected sources like ExternE, IEA reports, RETScreen and CERI. The project will provide a basis for developing recommendations for international policies that could contribute to levelling the playing field for renewable energy. It is targeted at policy makers in charge of shaping energy markets and in charge of designing policies for the promotion of renewable energy. Because security of supply, technological development (the learning curve effect) and environmental externalities are issues which require international solutions, policy designers on the international level are a particular target group of this project. The project was launched in November 2006 and will be concluded in October 2007. The project is carried out by Ea Energy Analyses, Denmark.

The market for low temperature RE for heating and cooling has been largely unexploited. The project, “Renewable Energy Technologies in heating and Cooling Markets” was launched in November 2006 to examine this issue. The project is expected to conclude in October 2007 and is carried out by ZSW Baden-Württemberg, Germany. Political instruments and experiences to promote RE technologies will be compiled, evaluated, and reported

for Canada, Denmark, France, Germany, Ireland, Italy, Japan, Norway, the Netherlands, Spain, Sweden and the United Kingdom. The results of individual policies within these 12 OECD countries and the respective growth rates of specific renewable heating and cooling technologies are examined to provide background information for best policy practices. In this context, an evaluation of the policy tools will be performed, including an analysis of the political framework in each nation and an assessment of the success of individual policies. Stand-alone systems as well as district heating technologies are included. A toolbox will then be created based on best policy practices and innovative instruments to assist decision makers in the design of support mechanisms for RE technologies for heating and cooling.

ThE RETD PROjECTS ARE InTEnDED TO PROvIDE IMPORTAnT InPUTS TO ThE InTERnATIOnAL EnERGy POLICy.

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The project “Policy instrument design to reduce financing costs in RE technology projects“ will assess the perception of risk from investors in renewable energy technologies, and how that perception is influenced by means of political instrument. This assessment, across several countries, will also address how this perception of risk translates into higher or lower financing costs. The costs of renewable energies can be reduced by means of technological development, but also by means of more effectively designed policy instruments. The project represents the first comprehensive, international comparison of the costs of finance for RE technologies. Recommendations for best practice policy design, targeted primarily towards policy makers, are expected as a final outcome. The project was launched in January 2006 and is scheduled to conclude in November 2007. The project is carried out by ECOFYS, Netherlands.

As part of the preparation for the REWP/REU/RETD workshop the project “Scenario review workshop presentation“ was initiated. It aims to compare relevant energy scenarios, identify assumptions that are crucial for the role of renewable energy sources in energy scenarios, and explain why certain scenarios project larger shares of renewable energy technologies than others. In recent years, many different

energy scenarios have been published. Each scenario aims to describe the World’s energy future as a consequence of different assumptions about policy strategy, the use of various policy instruments and assumptions about the costs and the technological development of new and existing energy technologies. The scenarios are often used as guidelines for political discussions and decisions on new policy strategies.

ThIS APPLICATIOn IS ESPECIALLy IMPORTAnT AS IT COnCERnS REnEWABLE EnERGy AnD ThE DEMOnSTRATIOn OF ITS POTEnTIAL WIThIn ThE EnERGy FUTURE.

It was therefore decided by the RETD ExCo to initiate an assessment of these scenarios. The underlying assumption of the study is that a cross-cutting overview could highlight the differences in the various assumptions and contribute to a more clear understanding of the relationship between assumptions and the results of scenarios. The presentation will be prepared by Dr. Jan Hamrin from the Center for Resource Solutions, San Francisco, USA for use in spring 2007.

3.3 ACHIEVEMENTS IN BRIEF CONTINUED


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ExCo meetings are held twice a year (spring and autumn). If needs be, for example in the form of a relevant international event, additional meetings are held. The meetings held in 2005/6 were:

ExCo meeting 1 – October 19, 2005, Paris, France;

ExCo meeting 2 – March 23, 2006, Brussels, Belgium;

ExCo meeting 3 – June 29, 2006, Berlin, Germany;

ExCo meeting 4 – October 9, 2006, Rome, Italy.

Planned ExCo meetings for 2007 are:

ExCo meeting 5 – February 19-20, 2007, Amsterdam, the Netherlands;

ExCo meeting 6 – October 15-16, 2007, Ottawa, Canada.

3.4 EXECUTIVE COMMITTEE MEETINGS

The Chairman of the RETD ExCo gave a presentation on the RETD at the IEA Roundtable meeting in connection to the REWP meeting in Paris, France in April 2006 on establishing cooperation between the RETD and existing Implementing Agreements. It was agreed to establish regular communication between the RETD and the other RE Implementing Agreements. Furthermore, at its meeting in October 2006, the REWP encouraged the RETD to organise a workshop on the deployment of renewable energy in the spring of 2007. The RETD ExCo agreed and preparations were initiated.

Other outreach and collaborative efforts of 2006 include:

A presentation of the RETD by the Operating Agent at the BASREC seminar on renewable energy and energy efficiency in vilnius, Lithuania in April 2006.

The RETD web site www.iea-retd.org, launched in May 2006.

The folder titled “Renewable Energy for Dummies” distributed at the Un CSD-14 conference in new york in May 1-14, 2006.

Distribution of the BCO report and folder at the “Renewable Energy 2006” conference in Chiba, japan, October 9-13, 2006.

In the following tables the facts of the launched projects are presented.

4 PROjECT FACT SHEETS

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1-1-1 COSTS AnD BEnEFITS OF REnEWABLE EnERGy TO SOCIETy

InTEnDED APPLICATIOn Permanent display of web tool on RETD website. The fist beta version will be launched in relation to the REWP/

RETD/REU workshop March 15, 2007. The will also be promoted at the UN CSD-15.

OvERALL OBjECTIvE Provide the basis for developing recommendations for international policies that will contribute to levelling the

playing field for renewable energy.

PURPOSE Estimate the costs and benefits of renewable energy compared to traditional energy sources; and

Identify improvement possibilities for renewable energy technologies through the learning processes.

RESULTS Web-based cost-benefit calculator;

Report presenting improvement possibilities for renewable energy technologies through the learning process.

MAIn STAKEhOLDERS Policy makers in charge of shaping energy markets and policies for the promotion of renewable energy in

general, including IEA policy analysts;

Student and scholars.

BACKGROUnD AnD APPROACh

It is often highlighted that the benefits of renewable energy and the costs of conventional technologies are not

sufficiently represented in energy markets, nor in energy planning and policy making. Many of the benefits of

renewables are difficult to monetize and are therefore omitted when investors make decisions on commissioning

new energy plants. In addition, the external costs associated with conventional energy production are often

excluded, further discriminating against renewable energy. Subsidies provided for conventional energy

production, such as for domestic coal, further distort the playing field for renewable energy technologies and

make renewable energy comparatively more expensive. In addition, the so-called learning curve effect – an

increased deployment of renewable energy coupled with a decrease in generation costs over time – is often

ignored or underestimated. This, in combination with the often overlooked potential for local job creation,

further hinders the deployment of renewables.

The project steps are:

Preparation of a template for comparing energy supply costs;

Literature survey and consultation with the IEA, relevant IEA implementing agreements and utilities/TSOs,

national authorities and relevant research institutes;

Development of a web-based cost-benefit calculator based on generally accepted values from sources

such as ExternE, IEA, RETScreen, and CERI;

Reporting and dissemination.

ADDED vALUE Provide access to more transparent cost-benefit analyses. This will contribute to a common understanding and a

broader consensus on how to adequately price the benefits of renewable energy technologies.

STEERInG GROUP ExCo member Michael Paunescu, Canada;

ExCo member Aldo Iacomelli, Italy;

Wolfram Krewitt, DLR, Germany (awaiting confirmation);

Jan Hamrin, Center for Resource Solutions, USA (awaiting confirmation)

BUDGET E120,000

TIME FRAME November 2006 – October 2007

IMPLEMEnTInG BODy Ea Energy Analysis, Denmark

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1-2-1 SCEnARIO WORKShOP PRESEnTATIOn

InTEnDED APPLICATIOn REWP/RETD/REU workshop on deployment of RE, March 15, 2007.

The G8 Gleneagles Programme of the IEA.

OvERALL OBjECTIvE Provide a basis for developing recommendations for international policies that will contribute to levelling the

playing field for renewable energy.

PURPOSE Disclose why certain scenarios expect larger shares of renewable energy than others;

Identify key assumptions;

Recommend appropriate settings for assumptions crucial to role of RE.

RESULTS Report comparing the critical assumptions in existing scenario practise;

Workshop presentation materials;

Paper on preliminary findings. Structure for conference paper.

MAIn STAKEhOLDERS Policy makers in charge of shaping energy markets and policies for the promotion of renewable energy

in general, including IEA policy analysts;

Student and scholars.


Global energy scenarios are often used to predict the impact of policy measures. However, in calculating

overall system costs and benefits of future energy systems the data for investment and environmental costs

are often based on incorrect assumptions about renewable energy technologies. Accurate modelling of e.g.

fluctuating energy sources and constrains on the availability of resources is crucial for accurately determining

the role renewable energy can play in energy scenarios.

The project focuses on the critical assumptions for renewable energy technologies in existing scenarios and

attempts to determine a methodology that reflects the opportunities and limitations of renewable energy in

future energy systems.

Keywords are:

Renewable energy technology;

Global energy scenarios;

Future energy systems;

Opportunities and limitations of renewable energy.

ADDED vALUE Reflections are made on what type of global energy scenario analyses is required in order to identify robust

energy strategies for climate mitigation purposes. In addition, the circumstances under which renewable energy

could provide the most value without limiting the solutions to the existing energy system will be identified.

STEERInG GROUP ExCo member Annette Schou, Denmark;

ExCo member Daniel Argyropoulos, Germany;


ExCo member Ruud de Bruijne, Netherlands.

BUDGET E25,000 (lump sum)

TIME FRAME January 2007 – March 2007

IMPLEMEnTInG BODy Dr. Jan Hamrin, Centre for Resource Solutions, USA

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1-2-2 REnEWABLE EnERGy TEChnOLOGIES In hEATInG AnD COOLInG MARKETS

InTEnDED APPLICATIOn Information exchange with the European Solar Thermal Energy Platform

(kick-off meeting December 6, 2006 in Brussels)

OvERALL OBjECTIvE Improved a basis for decisions to promote heating and cooling services based on renewable energy.

PURPOSE To identify actions which governments and local authorities could undertake to promote renewable

energy for heating and cooling purposes.

RESULTS Report on Innovative Instruments, including policy recommendations. A report giving recommendations

for innovative instruments to promote renewable energy technologies for heating and cooling generation.

Presentation of report in an own workshop;

Background report on Technology Status;

Background report on Policy Status;

“Toolbox” sent to national decision makers giving 10 recommendations on how to promote renewable

energy technologies for heating and cooling. Later on these “toolboxes” may also be translated into

languages other than English;

Press release, including one page executive summary of the project’s major findings;

Articles in relevant journals will be published;

Brochure titled “Public Bodies as RE Technology Applicators” on best practise cases.

MAIn STAKEhOLDERS Policy makers in charge of designing laws and regulations to promote renewable energy technologies for heat

generation and cooling purposes. Although the scope of this definition includes international policy makers

(e.g. European Union), national legislators and governments, as well as regional and local decision-makers,

the focus of the project is to be put on the level of international/national decision makers (primarily due to

local language barriers).


Space heating and cooling and domestic water heating constitute a significant portion of the energy

demand in buildings, and therefore the final energy supply. Renewable energy technologies offer an

important alternative to fulfil energy demands for heating and cooling.

Instruments will be explored for different relevant markets: stand-alone systems for households and industry

as well as district heating technologies, including facilities for combined heat and power generation.

Political instruments and experiences to promote renewable energy technologies in the following nations

will be compiled, evaluated, and reported: Canada, Denmark, France, Germany, Ireland, Italy, Japan,

Norway, the Netherlands, Spain, Sweden, the United Kingdom, and the United States. A toolbox will then be

created based on best policy practices and innovative instruments to assist decision makers in the design of

support mechanisms for renewable energy technologies for heating and cooling.

ADDED vALUE The full potential of existing renewable energy technologies for space heating and cooling and water

heating is not fulfilled due to information barriers. Compilation of best policy practises and the provision of

easy access to the main findings of the report are expected to mitigate this problem to the benefit of a large

number of countries.

STEERInG GROUP ExCo member Sonia Xavier, United Kingdom;

Dimitra Teza, Bestec;

Uwe Brechlin / Raffeale Piria, ESTIF.

BUDGET E99,284.50


IMPLEMEnTInG BODy Implementing Body Centre for Solar Energy and Hydrogen Research Baden-Württemberg (ZSW), Germany

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2-1-1 POLICy InSTRUMEnT DESIGn TO REDUCE FInAnCInG COSTS OF REnEWABLE EnERGy TEChnOLOGy PROjECTS

InTEnDED APPLICATIOn Presentation of the preliminary results at the RETD workshop (March 15, 2007), including an illustration of

the semi-quantitative analysis;

Presentation of the study results at an international conference or workshop (to be decided).

OvERALL OBjECTIvE Better insight in the key elements of best practise policy design for renewable energy technologies which

altogether will result in lower financing costs.

PURPOSE Identify design elements in policy instruments that reduce perceived risks of renewable energy

technology projects;

Give best practice examples of implemented international, national or regional policy designs

that reduce these perceived risks;

Make concrete recommendations for policy design.

RESULTS Report with policy recommendations for policy designs that reduce the financing costs for renewable

energy technologies.

MAIn STAKEhOLDERS Policy makers, and to a lesser extent project developers and financial institutes.


Relevant policies and measures will be described. A reporting template will be designed that incorporates

renewable energy technology deployment statistics, pros and cons of the implementation of renewable

energy technology policies et cetera. The policies will be ranked according to their impact on the lifecycle

phase of a renewable energy technology project, and qualifiers will be used to indicate the type of instrument.

The overview will also address the uncertainties and risks that are relevant to financing costs of renewable

energy technologies. Special attention will be given to the development stage of the renewable energy

technologies. The report will present the key success factors that reduce these costs as well as the generic

lessons that can be learned from these policies.

Based on this compilation of national/state policy instruments, criteria for selection will be proposed and

assessed. Proposed selection criteria include the availability of sufficient information and the circumstances

unique to different countries. Several selected country policy instruments will be tested on ‘risk-sensitivity’ for a

limited set of reference technologies from an investor’s perspective in a semi-quantitative manner. This enables

a clear comparison of quantitative, semi-quantitative and qualitative aspects related to the financing of

renewable energy technologies.

A simple cash-flow model will be used to make the comparison between various policy instruments for selected

technologies. Real-life approaches often result in much more complex and project specific financial structures

that can not be assessed on a generic level.

ADDED vALUE No comprehensive international comparison of the costs of finance for renewable energy technologies

is yet available.

STEERInG GROUP ExCo member Ruud de Bruijne, Netherlands;

ExCo member Håvar Risnes, Norway;

Michael Liebreich, New Energy Finance, UK (awaiting confirmation);

Christof Stein, KfW, Germany.

BUDGET E100,320

TIME FRAME January 2007 – November 2007

IMPLEMEnTInG BODy ECOFYS, Netherlands

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3-1-3 RETD WEB PORTAL AnD nEWSLETTER

InTEnDED APPLICATIOn The web portal and the newsletter will be promoted at all relevant events;

Efforts will be made to ensure a high Google ranking;

Links to the RETD web site on other renewable energy websites and from the IEA website.

OvERALL OBjECTIvE An increase in awareness and an improved understanding among policy makers and relevant

international stakeholders of the benefits of renewable energy technologies leading to a higher

deployment of renewable energy.

PURPOSE Lend visibility and credibility to renewable energy deployment topics and progress made in the field (showcase);

Facilitate network cooperation;

Assist in the outreach efforts of the RETD Implementing Agreement;

Function as billboard for open requests for bids on the implementation of RETD projects.

RESULTS RETD web portal and electronic newsletter for dissemination of results from RETD activities and from other

Implementing Agreements Renewable Energy on within the IEA.

MAIn STAKEhOLDERS Other Implementing Agreements on Renewable Energy;

Public sector and private sector decision makers working with energy


The RETD web portal is established in steps. First a standard web site is launched which is then later expanded to

become a web portal.

The main contents of the web portal are expected to be:

Implementation Plan 2006-2010;

Library with project publications;

RETD Newsletter – individual issues are published in relation to major events that have an impact on

improving the conditions for deployment of renewable energy;

Events calendar;

Active requests for bids will be visible on the web site but also communicated directly to a list of relevant

consultants;

RETD Annual reports;

Contact details;

Possibly a RETD members sections;

Links.

The development of the RETD newsletter will follow a step-wise approach. The first newsletter will be a hard copy

to be distributed at the 2007 European Renewable Energy Conference in Brussels, Belgium

ADDED vALUE The RETD web portal and the newsletter will make it easy to disseminate the results from the RETD activities and

from the other Implementing Agreements on Renewable Energy. Compared to other renewable energy web

portals, the RETD portal will be crosscutting regarding technologies and topics.



ExCo member Aldo Iacomelli, Italy.

BUDGET E80,000 including costs for operation of the web portal


IMPLEMEnTInG BODy RETD Operating Agent

�0


3-1-4 REWP/RETD/REU WORKShOP On DEPLOyMEnT OF REnEWABLE EnERGy, MARCh 15, 2007

InTEnDED APPLICATIOn Display on the RETD web site.

OvERALL OBjECTIvE Inspiration to the RETD Executive Committee for the further development of the Implementing Agreement.

Showcase preliminary findings of the ongoing RETD projects.

PURPOSE Stimulate dialogue on renewable energies between representatives from the various IEA Implementing

Agreements. An increase in such dialogue will strengthen the IEA efforts on the development of renewable

energy technologies.

RESULTS One-day workshop;

Workshop presentation materials;

Press release on workshop conclusion;

Report on workshop findings and their consequences for ongoing and future renewable energy initiatives.

MAIn STAKEhOLDERS Implementing Agreements on Renewable Energy, private sector stakeholders, policy makers and NGOs.


The workshop programme will include four consecutive sessions with speakers and panels, where exciting

preliminary results from the RETD projects will be presented and discussed. The on-line calculator of the study

on costs and benefits of renewable energy to society will be ready for a first trial at the time of the workshop.

The workshop conclusions will be disseminated in a press release, in an RETD newsletter and at the

RETD web site.

Experts will seek to provide answers to the following questions at the RETD workshop:

How can we strengthen the role of renewable energy in the global energy scenarios?

How could the full range of benefits of renewables be recognised?

How do we create synergy between public policy instruments and the private sector’s commitment to

deploy renewable energy?

How can we join forces in strengthening the position of renewables within the international community

and within the IEA framework?

ADDED vALUE Bringing together representatives from the various IEA I Implementing Agreements on Renewable Energy, private

sector stakeholders, policy makers and NGOs in a discussion on deployment issues.




ExCo member Ruud de Bruijne, Netherlands.

BUDGET E60,000

TIME FRAME November 2006 – May 2007

IMPLEMEnTInG BODy RETD Operating Agent

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CanaDaMichael PaunescuRenewable and Electrical Energy DivisionNatural Resources Canada580 Booth Street, 17th floorOttawa ON K14 OE4Telephone: +1 613 996 8649E-mail: [email protected]

Denmark (Chairman)

Hans Jørgen KochDanish Energy AuthorityAmaliegade 44DK-1256 Copenhagen KTelephone: +45 33 92 67 08E-mail: [email protected]

FranCeAnne RegnierMinistère de l’Economie, des Finances et de l’IndustrieDGEMPBureau 5B – teledoc 16161 Boulevard Vincent Auriol75013 ParisTelephone : +33 1 4497 0918E-mail : [email protected]

Germany (ViCe Chairman)

Daniel ArgyropoulosMinistry for the EnvironmentAlexanderstraße 3D-10 178 Berlin Telephone: +49 30 28550 3647E-mail: [email protected]

irelanDMartin FinucaneDepartment of Communications, Marine and Natural Resources29-31 Adelaide RoadDublin 2Telephone: + 353 1 678 2000E-mail: [email protected]

5 ExEcuTivE commiTTEE MEMBERS

AlTERnATE mEmbER

Lisa JacksonRenewable and Electrical Energy DivisionNatural Resources Canada580 Booth Street, 17th floorOttawa ON K14 OE4Telephone: +1 613 996 3042E-mail: [email protected]

AlTERnATE mEmbER

Annette SchouDanish Energy AuthorityAmaliegade 44DK-1256 Copenhagen KTelephone: +45 33 92 66 81E-mail: [email protected]

AlTERnATE mEmbER

Eric PeiranoADEME500 Routes des Lucioles06560 ValbonneTelephone: +33 4 9395 7934E-mail: [email protected]

AlTERnATE mEmbER

Martin SchöpeMinistry for the EnvironmentAlexanderstraße 3D-10 178 Berlin Telephone: +49 1888 305 3641E-mail: [email protected]

AlTERnATE mEmbER

Morgan BazilianSustainable Energy IrelandGlasnevinDublin 9Telephone: + 353 1808 2075E-mail: [email protected]

22


italyCorrado CliniMinistry for Environment and TerritoryColombo, n. 4400147 RomeTelephone: +39 06 5722 8102E-mail: [email protected]

the netherlanDSRuud de BruijneSenterNovemP.O. Box 82423503 RE UtrechtTelephone: +31 30 239 3419E-mail: [email protected]

norwayHåvar RisnesInnovasjon NorgeP.O.Box 448 SentrumN-0104 OsloTelephone: +49 211 45 89 109E-mail: [email protected]

UniteD kinGDomSonia XavierDepartment of Trade and IndustryBay 2401 Victoria StreetLondon SW1H 0ETTelephone: +44 207 215 3349E-mail: [email protected]

new ZealanD (interim obSerVer)

Ralph E. H. SimmsRenewable Energy UnitInternational Energy Agency9 rue de la FederationParis 75739, FranceTelephone: +33 1 40 57 65 63E-mail: [email protected]

AlTERnATE mEmbER (vicE chAiRmAn)

Aldo IacomelliUniversità degli Studi di Roma “La Spaienza”Piazzale Aldo Moro 500185 Rome, ItalyTelephone: +39 346 54 07 016E-mail: [email protected]

AlTERnATE mEmbER

Neeltje MuselaersSenterNovemP.O. Box 82423503 RE UtrechtTelephone: +31 30 214 7912E-mail: [email protected]

AlTERnATE mEmbER

Kjell Olav SkjølsvikEnova SFAbelsgate 5N-7030 TrondheimTelephone: +47 4804 0479E-mail: [email protected]

AlTERnATE mEmbER

Japan (obSerVer)

Kaoru YamaguchiNew Energy and Coal GroupInstitute of Energy EconomicsInui-Building, 1-13-1 KachidokiChuo-kuTokyo 104-0054Telephone: +81 3 5547 0214E-mail: [email protected]

6 DEsk officER, opERATing AgEnT AND common funD mAnAgER

iea DeSk oFFiCerHara NobuyukiIEA Secretariat9 rue de la Fédération75015 Paris, FranceTelephone: +331 4057 6707E-mail: [email protected]

operatinG aGentKaare SandholtEa Energy AnalysisFrederiksholms Kanal 1, 1stDK-1220 Copenhagen K, DenmarkTelephone: +45 60 39 17 00E-mail: [email protected]

Common FUnD manaGerVolker MonserForschungszentrum Jülich GmbHProjektträger Jülich52425 JülichGermanyTelephone: +49 2461 61 2808E-mail: [email protected]

Ole LangnißZSW Baden-WürttembergIndustrie Strasse 670565 Stuttgart, GermanyTelephone: +49 711 7870 226E-mail: [email protected]


23


The Renewable Energy Technology Deployment (RETD) Implementing Agreement is one of ten Implementing Agreements on renewable energy under the framework of the International Energy Agency and is part of the International Action Programme from the International Conference for Renewable Energy 2004. The RETD Implementing Agreement aims at accelerating the deployment of renewable energy through bridging the gap between research and development on one side and market deployment on the other side and thus supplement the nine technology specific Implementing Agreements on renewable energy.

The target groups for the RETD activities are policy makers and private sector stakeholders operating in the energy field.

Current member countries of the Implementing Agreement on RETD are Canada, Denmark, France, Germany, Ireland, Italy, the Netherlands, Norway, and United Kingdom.

MORE INFORMATION ON THE RETD CAN BE FOUND AT: www.IEA-RETD.ORG

The RETD web site is one of the communication channels applied by the RETD to enable and inspire policy makers and other key stakeholders to take actions in favour of greater renewable energy deployment. Here interested parties may find:

The RETD Implementation Plan 2006-2010

Project publications and web-casts

RETD News

Events calendar

Active requests for bids

RETD annual reports

retd annual report september 2005 – december 2006 international energy...

Documents