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Government Policy On Renewable Energy

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What Is The Role For Community Led Renewable Energy Initiatives

‘Height of hypocrisy’ for government to take credit for renewable energy schemes

Community initiatives are likely to play an increasingly important role and should be encouraged as a way of providing positive local benefit from renewable energy development. Further information for communities interested in developing their own initiatives is provided by the Department of Energy and Climate Change. Local planning authorities may wish to establish policies which give positive weight to renewable and low carbon energy initiatives which have clear evidence of local community involvement and leadership.

Neighbourhood plans are an opportunity for communities to plan for community led renewable energy developments. Neighbourhood Development Orders and Community Right to Build Orders can be used to grant planning permission for renewable energy development. To support community based initiatives a local planning authority should set out clearly any strategic policies that those producing neighbourhood plans or Orders will need to consider when developing proposals that address renewable energy development. Local planning authorities should also share relevant evidence that may assist those producing a neighbourhood plan or Order, as part of their duty to advise or assist. As part of a neighbourhood plan, communities can also look at developing a community energy plan to underpin the neighbourhood plan.

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Why Would The Government Invest In Renewable Energy

There are a few common reasons used to justify a government role in renewable energy investment, including energy security and affordability, the potential for job creation, future economic strategic positioning, and addressing environmental and other externalities. But these problems and their related policy approaches need clarification. Yes, renewable energy could contribute to all of the goals above, but does that make it the best policy to achieve these goals?

The energy security argument asserts that the ticket to achieving greater security and affordability is to invest in renewable energy that can be produced at home and doesnt rely on the whims of fossil fuel markets abroad. But in general for energy production in the US, domestic fossil fuels win out over renewables in terms of cost-effectiveness . Domestic coal is abundant and cheap, and the availability of natural gas has skyrocketed in recent years, driving down prices that are likely to render this option affordable in the medium term . Its true that renewable technologies have increased in cost effectiveness over time, but parallel improvements in fossil fuel technologies make it harder for the economics of renewables to stack up by themselves.

Estimated Renewable Energy Potential In India

The estimated potential of wind power in the country during 1995 was found to be 20,000 MW , solar energy was 5 × 1015 kWh/pa, bioenergy was 17,000 MW, bagasse cogeneration was 8000 MW, and small hydropower was 10,000 MW. For 2006, the renewable potential was estimated as 85,000 MW with wind 4500 MW, solar 35 MW, biomass/bioenergy 25,000 MW, and small hydropower of 15,000 MW . According to the annual report of the Ministry of New and Renewable Energy for 20172018, the estimated potential of wind power was 302.251 GW , of small hydropower 19.749 GW, biomass power 17.536 GW, bagasse cogeneration 5 GW, waste to energy 2.554 GW, and solar 748.990 GW. The estimated total renewable potential amounted to 1096.080 GW assuming 3% wasteland, which is shown in Table . India is a tropical country and receives significant radiation, and hence the solar potential is very high .

Table 7 The estimated renewable potential in India

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Gross Electricity Generation From Renewable Energy In India

The overall generation in the country has grown exponentially. Between 20142015 and 20152016, it achieved 1110.458 BU and 1173.603 BU, respectively. The same was recorded with 1241.689 BU and 1306.614 BU during 20152016 and 1306.614 BU from 20162017 and 20172018, respectively. Figure indicates that the annual renewable power production increased faster than the conventional power production. The rise accounted for 6.47% in 20152016 and 24.88% in 20172018, respectively. Table compares the energy generation from traditional sources with that from renewable sources. Remarkably, the energy generation from conventional sources reached 811.143 BU and from renewable sources 9.860 BU in 2010 compared to 1.206.306 BU and 88.945 BU in 2017, respectively . It is observed that the price of electricity production using renewable technologies is higher than that for conventional generation technologies, but is likely to fall with increasing experience in the techniques involved .

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What Are The Planning Considerations That Relate To Specific Renewable Energy Technologies

Wind generation surpasses hydroelectric power as top ...

Renewable energy developments should be acceptable for their proposed location. In addition to the factors that should be considered regarding the acceptability of a location for any form of renewable energy development there are particular considerations for the following technologies: hydropower, active solar technology , solar farms and wind turbines. Also, local planning authorities may wish to consider how planning conditions or planning obligations can mitigate the impacts described.

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Association For Renewable Energy And Clean Technologyrea Welcomes 20m Investment Into Britain’s Tidal Power


  • REA welcomes Government’s announcement that it will provide £20 million per year in ring-fenced contracts for tidal stream projects as part of the upcoming Contract for Difference round
  • REA has long campaigned for greater investment in tidal energy
  • Says the Government should also consider similar ring-fenced support to drive forward other less established renewable technologies.

The Association for Renewable Energy and Clean Technology has welcomed the Government s announcement that it will provide £20 million per year in ring-fenced tidal stream project support as part of the upcoming Contract for Difference round, after years of campaigning by the REA for greater investment in tidal energy.

Tidal energy has the potential to be a very reliable source of generation, given the clockwork predictability of the tides. Including this in the UK’s low-carbon energy mix will make it easier to match supply with demand.

This fourth allocation round’ of the Contracts for Difference Scheme will open on 13 December 2021. The Government will launch this auction process with the ambition of supporting up to 12GW low-carbon electricity capacity – more than the last 3 rounds combined.

However, while welcoming the new support for tidal, the REA says that the Government should also consider similar ring-fenced support to drive forward other less established renewable power technologies.

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Expanding The Investment Tax Credit For Offshore Wind

In addition to the three key policies described above, there is a fourth way that the tax code could be improved to boost renewable energy. For many years the technologies eligible for the PTC and ITC have remained unchanged. But theres no reason that new developments in renewable energy technology shouldnt be accounted for with modifications to the tax code. Most importantly Congress should place technologies within the PTC or ITC depending on the unique characteristics of each technology and their specific capital investment needs.

The offshore wind industry is poised to take off in the waters off of Americas East Coast. Unfortunately, as Michael Conathan and I wrote in Clean Energy from Americas Oceans,More than 40,000 megawatts of offshore wind energy capacity have been permitted around the globe, yet the United States accounts for barely 1 percent of that, and we have yet to generate our first watt of electricity from this abundant, carbon-free source of power.

Theres no shortage of interest in building offshore wind farms and several projects are moving forward with permitting and siting. The right government investment can provide critical support for leveraging private capital investment in these projects to accelerate the growth of this new American industry.

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What Technical Considerations Relating To Renewable Energy Technologies Affect Their Siting

Examples of the considerations for particular renewable energy technologies that can affect their siting include proximity of grid connection infrastructure and site size, and:

  • for biomass, appropriate transport links,
  • for hydro-electric power, sources of water,
  • for wind turbines, predicted wind resource, considerations relating to air safeguarding, electromagnetic interference and access for large vehicles.

Discussions with industry experts can help to identify the siting requirements and likely impacts of technologies. The National Policy Statements on the Department of Energy and Climate Changes website give generic and technology specific advice relevant to siting particular technologies. The Environment Agency has published advice showing which areas may be suitable for open loop ground source heat pumps as well as advice on the technologies it regulates.

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Good Government Investments In Renewable Energy

Government broadens remit on renewable energy rules

Fair, Effective, and Efficient Tax Policy Is Key for Driving Renewable Energy Growth

Richard W. Caperton looks at how the government currently invests in renewable energy and ways to make that spending more efficient and effective for a more competitive, healthy, and secure United States.

Budget deficits drove the conversation in Washington in 2011 with the daily news dominated by government shutdown threats, the super committee, continuing resolutions, and arcane budgeting practices. Unfortunately, this left Americans convinced that government investments in the future are off the table because of large federal budget deficits that need to be reduced.

Americans were misled. As the Center for American Progress points out, the United States can balance our budget, reduce our long-term debt, and make key investments in our future all at the same time. CAPs plan works toward a more vibrant economy where all Americans are better off and clean energy is an integral part of this future. Best of all, the investments that government needs to make are relatively modest and can be paid for by ending wasteful spending in the same energy sector.

There is no doubt that Americans need clean energy because its vital to our nations economic competitiveness, security, and health.

There is also no doubt that government will play an important role in making the transition to clean energy.

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Projection Of Global Primary Energy Consumption

An energy source is a necessary element of socio-economic development. The increasing economic growth of developing nations in the last decades has caused an accelerated increase in energy consumption. This trend is anticipated to grow . A prediction of future power consumption is essential for the investigation of adequate environmental and economic policies . Likewise, an outlook to future power consumption helps to determine future investments in renewable energy. Energy supply and security have not only increased the essential issues for the development of human society but also for their global political and economic patterns . Hence, international comparisons are helpful to identify past, present, and future power consumption.

Table shows the primary energy consumption of the world, based on the BP Energy Outlook 2018 reports. In 2016, Indias overall energy consumption was 724 million tons of oil equivalent and is expected to rise to 1921 Mtoe by 2040 with an average growth rate of 4.2% per annum. Energy consumption of various major countries comprises commercially traded fuels and modern renewables used to produce power. In 2016, India was the fourth largest energy consumer in the world after China, the USA, and the Organization for economic co-operation and development in Europe .

Table 1 Projected primary energy consumption of the world between 1990 and 2040

Beyond The Debate: The Role Of Government In Renewable Energy Finance

Last year, the world invested more money in renewable energy than ever before, at over $257 billion . There is no question that renewable energy projects need finance to develop and commercialize. According to the International Energy Agency , $37 trillion of investment will be needed in the worlds energy supply system over 2012-2035, of which a growing component will be in renewable energy . But where should this money come from? And what is the governments role in this?

This years US presidential debate highlighted the divide in political opinion on energy policy, as the candidates took sides in a determined discussion over whether or not the government should be in the business of financing renewable energy. This article takes a look at the topic of renewable energy financing specifically, under what conditions government intervention would be warranted, and what form such intervention might take.

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Data Collection And Analysis

In this study, we ask how do stakeholders participate in decision-making related to renewable energy policy implementation, and what incentives or disincentives affect stakeholders participation in this context. To answer these questions, we use a qualitative analysis of key-informant interviews conducted in Colorado and Nevada in June 2016. These two states were selected because, although both states have RPS policies that have been in place for many years, they have different histories of RPS adoption, modification, and implementation. The RPS is salient to voters in both states, and yet each state uses different approaches to stakeholders engagement, which allows us to see a range of approaches. However, we acknowledge that participatory mechanisms and incentives may vary in states with less or different renewable energy capacity, or with different histories of cooperation and conflict between electric utilities, regulators, and other stakeholder groups.

Unless otherwise specified, all information in the state context and results sections were provided by interviewees. To comport with institutional review protocols, we avoid revealing identifying information.

Renewable Energy Industry In India

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Indian Renewable Energy Industry Report


Indian renewable energy sector is the fourth most attractive renewable energy market in the world1. India was ranked fourth in wind power, fifth in solar power and fourth in renewable power installed capacity, as of 2020.

Installed renewable power generation capacity has gained pace over the past few years, posting a CAGR of 17.33% between FY16-20. With the increased support of Government and improved economics, the sector has become attractive from investors perspective. As India looks to meet its energy demand on its own, which is expected to reach 15,820 TWh by 2040, renewable energy is set to play an important role. The government is aiming to achieve 227 GW of renewable energy capacity by 2022, more than its 175 GW target as per the Paris Agreement. The government plans to establish renewable energy capacity of 523 GW by 2030.

With a potential capacity of 363 GW and with policies focused on the renewable energy sector, Northern India is expected to become the hub for renewable energy in India.3

Investments/ Developments

Some major investments and developments in the Indian renewable energy sector are as follows:

Government initiatives

Some initiatives by Government of India to boost Indias renewable energy sector are as follows:

Road Ahead

References: Central Electricity Authority, Ministry of New and Renewable Energy, Media Reports, Press Releases

Note: Conversion rate used in September 2021, Rs. 1 = US$ 0.014

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What Role Does Renewable Energy Play In The United States

Until the mid-1800s, wood was the source of nearly all of the nation’s energy needs for heating, cooking, and lighting. From the late 1800s until today, fossil fuelscoal, petroleum, and natural gashave been the major sources of energy. Hydropower and wood were the most used renewable energy resources until the 1990s. Since then, the amounts of U.S. energy consumption from biofuels, geothermal energy, solar energy, and wind energy have increased. Total U.S. renewable energy production and consumption reached record highs in 2020.

In 2020, renewable energy provided about 11.59 quadrillion British thermal units 1 quadrillion is the number 1 followed by 15 zerosequal to 12% of total U.S. energy consumption. The electric power sector accounted for about 60% of total U.S. renewable energy consumption in 2020, and about 20% of total U.S. was from renewable energy sources.

Renewable energy can play an important role in U.S. energy security and in reducing greenhouse gas emissions. Using renewable energy can help to reduce energy imports and reduce fossil fuel use, which is the largest source of U.S. . In the , EIA projects that U.S. will continue to increase through 2050. The Reference case generally assumes that current laws and regulations that affect the energy sector, including laws that have end dates, remain unchanged throughout the projection period. The potential effects of proposed legislation, regulations, or standards are not included in the AEO2021.

Hybrid Utilization Of Renewables

  • The country should focus on hybrid power projects for an effective use of transmission infrastructure and land.

  • India should consider battery storage in hybrid projects, which support optimizing the production and the power at competitive prices as well as a decrease of variability.

  • Formulate mandatory standards and regulations for hybrid systems, which are lagging in the newly announced policies .

  • The hybridization of two or more renewable systems along with the conventional power source battery storage can increase the performance of renewable technologies.

  • Issues related to sizing and storage capacity should be considered because they are key to the economic viability of the system.

  • Fiscal and financial incentives available for hybrid projects should be increased.

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Renewable Energy Policy In China

The Role of Government

Chinas energy policy is developed through a two-step approach. The central government first develops broad policy goals and communicates them every five years in its Five Year Plans. Ministries, agencies, and the National Peoples Congress then use the plans to design targeted, specific policies. Chinas 10th and 11th Five Year Plans were the first to include goals for renewable energy development.

Chinas increased focus on renewable energy requires coordinated action from many entities and groups outside the central government and government agencies. In January 2010, the government announced the creation of the National Energy Commission to streamline Chinas energy operations and coordinate activities by the National Energy Bureau and the National Energy Administration , which tend to overlap with the mandates of other ministries. The NEC will also assume many of the energy-focused activities of the National Development and Reform Commission and the Ministry of Finance. The goals of the NEC are to devise Chinas energy strategy, ensure the countrys energy security, and coordinate cooperative programs.

General and Targeted Policies

Suggested Citation:The Power of Renewables: Opportunities and Challenges for China and the United StatesSuggested Citation:The Power of Renewables: Opportunities and Challenges for China and the United States

Impact and Challenges

Suggested Citation:

Grid Integration

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