DSD Special Event on “Energy Transformation for Asia: Responding to Energy Security and Climate Challenges” - Dr. Marianne Osterkorn, REEEP

1. DSD Special Event on
“Energy Transformation for Asia:
Responding to Energy Security and Climate
Challenges”
Role of Renewables in Modern Energy Systems
- Opportunities and Challenges
February 6th 2009
Dr. Marianne Osterkorn
Director General REEEP

2. Content
Impact of Asia in the Global Energy Market
Role of Renewables in the Asian Energy Market
Special Schemes in India and China
REEEP support on renewables and energy efficiency
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3. The major share of the estimated 45% increase in world
energy demand by 2030 will take place in Asia
Source: World Energy Outlook 2008, IEA
3

4. Due to the size of the energy market, CO2 emissions
will be highest in Asia
Source: World Energy Outlook 2008, IEA
4

5. Per capita emissions in Asia will continue to be below
US and Europe
Source: Climate Group
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6. The estimated €6 trillion investment in Asian energy
infrastructure will go primarily into fossil fuels based projects
TWh
Geothermal, tide and wave
4 000
Solar
3 500 Biomass
Wind
3 000
Hydro
Nuclear
2 500
Fossil fuels
2 000
1 500
1 000
500
0
2006-2015 2015-2030
Source: World Energy Outlook 2008, IEA
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7. Asia is already one of the biggest renewable markets in
the world and will remain so through 2030
Source: World Energy Outlook 2008, IEA
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8. Hydropower is making a comeback …
… with some 170 GW of capacity now under construction,
mostly in non-OECD Asian countries
Total: 167 GW
Source: World Energy Outlook 2008, IEA
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9. In Asia wind could contribute up to 24% of electricity
production by 2030
Source:Global Wind Energy Outlook 2008, GWEC
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10. China has become a global leader in renewable energy
both in terms of investment and manufactoring
11th five-year plan enlisted
reducing GDP energy intensity
20% and increase the share of
RES to 10% by 2010 and 30% by
2050
Bidding system - Wind
Concession Program and
provincial initiatives
MLTPRE calls for $ 300billion
investment by 2020 –
300GWhydropower,30GW
wind,30GW bio-mass, 1.8 solar
power
5th largest installed capacity of
wind ( 5900 MW )- largest turbine
72% Hydro manufacturing industry
China is the 3rd largest global
4% Wind producer of solar PV
China is the global leader in solar
8% Biomass water heating – 40 million
systems covering 10 million
households
16% Solar
10

11. India has one of the world largest programmes
deploying renewable energy products and systems
Action Plan for Climate Change,
strong environmental policies and
legislative framework and
institutional support
Preferential tariffs, RES purchase
obligations for utilities (up to 10%
of power ), tax incentives
Market has been estimated to be
worth around$1billion with future
investment up to $3billion
Hugh estimated potential 15KMW
small hydro, 45KMW wind,17KMW
biomass all grid connected
75% Hydro World 3rd largest wind producer
with 7845 MW capacity ( 2000 MW
18% Wind annual increase )and the world 2nd
largest biogas producer
7% Other RE
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12. Opportunities for renewables are substantial
Sustained energy demand growth ensures the long term
market potential
Favorable legal frameworks in most countries – feed in
tariffs, easy grid access, financial and tax incentives
Favorable business climate – strong local industry,
supportive financial services
Strong manufacturing capabilities
Huge renewable energy resources and potentials
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13. Challenges and barriers have to be overcome
Initial cost for renewable investments still not competitive
Limitation with the existing grid infrastructure
Financial crises could slow down infrastructure investments
Energy planning doesn’t fully recognize all the potential of
renewables
Need for more R&D and demonstration to build confidence
in new technologies
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14. REEEP - a market facilitator for renewable energy and
energy efficiency
REEEP accelerates market development through a focus
on :
policy/regulation development and improvement
Implementation of innovative finance mechanisms
REEEP is driven by a bottom-up approach to meet the real
needs on the ground – 100 projects in 40 countries
REEEP is strongly committed to the MDGs and aims to
improve access to sustainable clean energy for the poor
REEEP is a truly global partnership with 270 partner ( 42
governments ) and more than 3000 friends of REEEP
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15. Development of a National Wind Energy Roadmap for
China
Provision of a comprehensive
Road Map that enables China to
achieve its policy 4000 MW by
2010 and 20,000 MW by 2020 –
2010 target already exceeded
Plan for quality assurance, testing
and indigenization
Plan for Establishment of an
industrial basis for manufacturing
large-scale wind turbines and of a
domestic capacity for commercial
wind farm project development
Project Partner: CRED/ERI
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16. Rural Biomass Renewable Energy Action Plan in China
Development of a National Action
Plan and its implementation for
rural biomass energy in China
Providing detailed measures to
achieve the biomass development
target and reduce GHG emissions
Removal of Barriers to rural
biomass development
Promotion of public awareness
and acceptance of the national
strategy for rural biomass energy
Project Partner: EED Consulting
working with Ministry of
Agriculture
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17. Financing for Bundled Small-Scale Rural Renewable
Energy Enterprises in India
Establishment of a new credit
practice for small-scale renewable
enterprises in rural India in
cooperation with in Yes Bank Ltd.
(YBL)
Development of pipeline of
interested small-scale rural
renewable ventures
Securing conventional and carbon
financing for three projects
Scaling up of this efforts to other
Indian banks
Project Partner: e³V
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18. Removal of Barriers for Biomass Gasification in India
Creation of a separate line of
credit for Large-scale penetration
of the BG technology in India
Creation of a revolving fund for
manufacturers, users and Local
Service Providers
Implementation of 30 BG systems
of various capacities (10 kg/hour
to 300 kg/hour)
Development of a minimum of
five local service providers
Project Partner: TERI
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19. REEEP International Secretariat
Vienna International Centre
Room D1732
Vienna, Austria
info@reeep.org
+43 1 26026 3677
www.reeep.org
www.reegle.info

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21. Capacity building support for the implementation of the
Renewable Energy Law in China
Support the Government of China
to implement the Renewable
Energy Law, which came into
force in January 2006
Organization of training
workshops for government
officials and enterprises
Monitor the implementation of the
law and assist policy makers
Enhanced understanding by up to
300 officials and enterprise
leaders of the law and how to
implement it
Project Partners: CREIA
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