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Chiltern Magazine Services Ltd.

Published 22nd. May 2009. Copyright 2009

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Table of Contents

1. Introduction – Renewable energies forge ahead – but from a low base

2. History of renewable energy


- Wind energy
- Solar energy
- Hydroelectric energy
- Biomass energy
- Tidal energy
- Combined heat and power energy
- Geothermal energy

3. EU imposes green energy targets on its member governments

4. EU framework research programme offers millions of euros to


renewable energy companies

5. Renewable energy means transport too

6. Market Studies & Reports

© Chiltern Magazine Services Ltd. 2009 www.energy-market-research.info


1. Introduction – Renewable energies forge ahead – but from a low base

MAYBE the best sign that renewable energies have hit the mainstream is that
they now have their very own international organisation: the International
Renewable Energy Agency (IRENA). Launched in Bonn, Germany, this January,
with the support of 76 countries, including its host nation, Spain, Italy, France and
Sweden, the roster of signatory nations has since been swollen by India and
Belarus. Britain and the United States have yet to become signatories, but they
my sign up eventually. IRENA will promote green energy, providing, said a
communiqué: “…practical advice and support for both industrialised and
developing countries.” (See http://www.irena.org/ for its website).

At its birth, Germany’s federal environment minister Sigmar Gabriel was succinct
in his praise for an initiative that really is a German baby: “Many countries have
recognised the opportunities which renewable energies offer for climate
protection, security of supply, economic growth and employment. IRENA gives
renewables an international voice and political impetus. The agency will be the
global platform for renewable energies.”

And maybe, given that IRENA is renewable energy’s new global guardian, it is
this organisation that should be consulted over what renewable energy actually is
– given the rich diversity of its production methods. According to article III of
IRENA’s founding statute, renewable energy means all forms of energy produced
from renewable sources in a sustainable manner, which include: bioenergy;
geothermal energy; hydropower; ocean energy, including tidal, wave and ocean
thermal energy; solar energy; and wind energy.

So there we have it: green energy in a nutshell. There’s also a lot of it about –
and a lot more than before. Question is, how much?

IRENA has not been around long enough to answer this question. Although not
doubt it will in due course. So the best source for this information is ironically the
International Energy Agency (IEA), of the Organisation for Economic Cooperation
and Development (OECD), whose expertise and supposed focus on conventional
energy production was one reason behind the launch of IRENA. The IEA has
been around for years and releases regular and reliable energy statistics and it
shows that although growth in green energy has been marked, it still has a huge
amount of ground to cover until it really becomes a serious alternative to using
conventional fuels.

Its latest worldwide statistics issued in 2008 showed that looking at the global
total primary energy supply - so not just electricity generation, also transport,
heating, cooling, everything – renewable energy is very small beer indeed. In
2006 geothermal, solar, tidal, wind and combined heat-and-power produced just
0.6% of all energy (up from 0.1% in 1973); hydro power produced 2.2%, up from

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1.8% in 1973; and the proportion of energy created by combustible renewables
and waste actually fell from 10.6% in 1973 to 10.1% in 2006.

Meanwhile, although the proportion of energy coming from oil fell from 46.1% to
34.4%, natural gas’ slice of the energy pie rose from 16% to 20.5%. And that
filthiest of fossil fuel sources coal and peat was actually used proportionally more
in 2006 than 1973 (26% compared 24.5% and that is before we factor in the
huge increase in actual power generated in these years), while another
environmental bugbear, nuclear energy production, rose from 0.9% to 6.2%.

So what price renewable energy? There has been so much talk, so many policy
papers, so many debates, but the actual increase in its use actually seems so
slight. Coal – that Victorian-age fuel – is still way more important.

It is against this backdrop that the European Union (EU) ahead of Christmas
gave itself a 2020 deadline to increase to 20% the proportion of renewable
energy generated for its citizens regarding gross energy production. Is this a
Quixotic goal, quoting the famous Spanish knight who tilted at windmills? Well,
given the sluggish growth of renewable energy worldwide, it is not surprising
there are skeptics.

Yet, renewable energy is still flavour of the month amongst public policy makers
worldwide. We all know that harnessing nature’s forces to produce energy
without releasing the pollution involved in burning fossil fuels just has to be good
idea. The USA’s President Barack Obama is backing investment into green
energy publicly and in his American Recovery and Reinvestment Act of 2009
where – US$16.8 billion – yes that much – has been earmarked for promoting
renewable energy and energy efficiency.

And the truth is that renewable energy has been growing, albeit from a tiny base,
and also very unevenly: rich countries have been doing much more than poor
countries – photovoltaic solar cells just are not a priority in Burkina Faso and
Afghanistan.

The IEA knows this and last year released the results of a first comparative
analysis of the performance of the various renewables promotion policies around
the world. This looked at 35 countries, including all (wealthy country) OECD
members and the so-called BRICS key emerging market countries - Brazil,
Russia, India, China and South Africa. It noted that in 2005, “these 35 countries
accounted for 80% of total global commercial renewable electricity generation,
77% of commercial renewable heating/cooling (excluding the use of traditional
biomass) and 98% of renewable transport fuel production.” So, for a lot of the
world, renewables are barely a blip on the energy radar.

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But we have to start somewhere. Enter the optimists of the Renewable Energy
Network for the 21st Century (REN21) which issues annual reports on the
progress of the green energy sector in collaboration with the Worldwatch
Institute. Its latest study, the Renewables 2007 Global Status Report (issued in
2008) painted an encouraging picture at least as far as the electricity generating
sector is concerned (so excluding transport, heating and other key energy
issues). It claimed the renewable energy sector has doubled electricity
generating capacity since 2004, to 240 gigawatts, now accounting for 2.4 million
jobs globally in the process.

This report said renewable energy in 2007 represented 5% of global power


capacity and 3.4% of global power generation. New renewable energy (not
counting large hydropower) generated as much electric power worldwide in 2006
as one-quarter of the world’s nuclear power plants, it said. Large hydropower
itself accounted for 15% of global power generation, it noted.

It hailed “rapidly expanding renewable energy markets, policies, industries, and


rural applications around the world,” noting that in 2007, global wind generating
capacity is estimated to have increased 28% while grid-connected solar
photovoltaic (PV) capacity rose 52%. “So much has happened in the renewable
energy sector during the past five years that the perceptions of some politicians
and energy-sector analysts lag far behind the reality of where the renewables
industry is today,” said Mohamed El-Ashry, chair of REN21.

Looking at the details, it said the largest aspect of this renewable power capacity
growth was wind power, which grew by more than 25% worldwide in 2007, to an
estimated 95GW. However, the fastest growing energy technology in the world
(from a much lower base) was grid-connected solar photovoltaics, with a 50%
annual increase in cumulative installed capacity in both 2006 and 2007, to an
estimated 7.7GW. “This translates into 1.5 million homes with rooftop solar PV
feeding into the grid worldwide,” noted the report, with another estimated 2.7GW
of stand-alone systems bringing global photovoltaic capacity to more than 10GW.
Meanwhile rooftop solar heat collectors now provide hot water to nearly 50
million households worldwide, said the report, with existing solar hot
water/heating capacity increasing by 19% in 2006 to reach 105 gigawatts-thermal
globally.

As for biomass and geothermal energy systems, more than 2 million ground-
source heat pumps were used in 30 countries for heating and cooling of buildings
in 2007, said this survey. And the production of biofuels (ethanol and biodiesel)
exceeded an estimated 53 billion litres in 2007, up 43% from 2005 (with 2008
figures expected to much higher still). Ethanol production in 2007 represented
about 4% of the 1,300 billion litres of petrol consumed globally; with annual
biodiesel production increasing by more than 50% in 2006.

© Chiltern Magazine Services Ltd. 2009 www.energy-market-research.info


All this growth is also born out by the IEA. Its December 2008 electricity
production bulletin showed that from January to December of that year,
renewable energy production rose in the OECD counties by 21.1% (hydro by
4%).

So these are impressive growth rates. If they are sustained over time, renewable
energies really could save our bacon in a world facing seemingly inevitable
global warming cased by carbon dioxide and other greenhouse gas production.

Given that it will be these rich countries that will lead the way with green energy
growth these IEA figures are important. They will create the economies of scale
that will enable the renewable energy industry to finally spread around the world.
As a result, the IEA has tried to identify what has been holding up the growth of
green energy.

Its comparative analysis report has claimed there are still significant barriers
which hamper a swift expansion and increase the costs of accelerating
renewables’ transition into the mainstream. If these were removed, it “could allow
the great potential of renewables to be exploited much more rapidly and to a
much larger extent”, said IEA executive director Nobuo Tanaka, when releasing
the study.

He continued: “Governments need to do more. Setting a carbon price is not


enough. To foster a smooth and efficient transition of renewables towards mass
market integration, renewable energy policies should be designed around a set
of fundamental principles, inserted into predictable, transparent and stable policy
frameworks and implemented in an integrated approach.”

According to the IEA renewable energy promotion policies should include five
key principles if they are to be effective:
*Removing non-economic barriers, such as administrative hurdles, obstacles to
grid access, poor electricity market design, lack of information and training, and
the tackling of social acceptance issues (such as opposing ugly windmills in a
pretty environment);
*The need for predictable and transparent administrative and legal support
systems to attract investments from the private sector;
*Introducing transitional targeted subsidies and tax breaks, decreasing over time,
to foster and monitor technological innovation and move renewable energy
technologies quickly towards market competitiveness; and
*Consideration of the impact of large-scale penetration of renewable energy
technologies on the overall energy system, especially in liberalised energy
markets, with regard to overall cost efficiency and system reliability.
“Governments need to take urgent action”, Mr Tanaka concluded. “We
encourage them to develop carefully designed policy frameworks, customised to
support technologies at differing stages of maturity, and eventually to apply

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appropriate incentives such as a carbon price for more mature renewables.
Moving a strong portfolio of renewable energy technologies towards full market
integration is one of the main elements needed to make the energy technology
revolution happen.”

This is all very ambitious stuff, and maybe this is where IRENA will help. The IEA
does indeed have a wide brief, and is charged with helping all energy sectors
thrive, albeit in a sustainable way. IRENA will work exclusively on renewables
though. In its founding statute, the agency is charged with being “a centre of
excellence for renewable energy technology…acting as a facilitator and catalyst,
providing experience for practical applications and policies, offering support on all
matters relating to renewable energy and helping countries to benefit from the
efficient development and transfer of knowledge and technology.”

As such its experts will:


*Analyse, monitor and…systematise current renewable energy practices,
including policy instruments, incentives, investment mechanisms, best practices,
available technologies, integrated systems and equipment, and success-failure
factors;
*Initiate discussion and ensure interaction with other governmental and
nongovernmental organisations and networks;
*Provide relevant policy advice and assistance to its members…and stimulate
international discussions on renewable energy policy;
*Improve pertinent knowledge and technology transfer and promote the
development of local capacity and competence…including [the] necessary
interconnections;
*Offer capacity building including training and education to its members;
*Provide advice and assistance on sourcing finance for renewable energy;
*Stimulate and encourage research;
*Provide information about the development and deployment of national and
international technical standards in relation to renewable energy; and.
*Disseminate information and increase public awareness on the benefits and
potential offered by renewable energy.

This will be valuable work, and given the uneven development of renewable
energy thus far around the world, it may well be that its greatest impact will be in
the poorest countries who have yet to avail themselves of these key
technologies. For if they become affordable and widely available, they could
make a huge difference. Take these words from Kenneth Konga, Zambia’s
energy and water development ministers, spoken at IRENA’s launch.

“Renewable energy is one of the key solutions to the current challenges facing
the global energy situation. Increasing population, high energy prices, depleted
energy resources, and global warming demand that renewable sources of energy
are rapidly developed…” And stressing that green energy really matters to the

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poor, he concluded: “The task of providing energy in my country is so huge that
renewable energy is the most sustainable way through which this basic need can
be provided to our people.”

2. History of renewable energy

THROUGHOUT history, ancient civilisations have channelled the power of


renewable energy to complete daily tasks and help to further their economic and
social development. From grinding grains to pumping water, a variety of
renewable energy sources, such as wind, solar and biomass, have played
significant roles in the pre-industrialised world. However, following the Industrial
Revolution, traditional renewable energy practices were unable to be met the
enormous demand for energy by industries. As a result, certain green
technologies became obsolete and the world became dependent on fossil fuels
to power industries, warm their homes and drive their cars. However, following
an understanding that the pollution caused by fossil fuels could have significant
environmental implications, and of course that their supply is finite, countries
worldwide are now looking for more environmentally friendly ways to provide their
societies with energy.

Wind energy

Wind power was harnessed by many early civilisations, from the Babylonians to
Chinese farmers, to complete daily tasks. The first windmills were thought to
have originated in Iran (then Persia) between 500-900AD and were used
primarily to grind wheat and other grains and also to pump water. The concept
caught on and depending on region where they were located, the design of
windmills would vary. The vertical-axis design used in these eastern civilizations
was different from the horizontal-axis design recognised in the Western world.
Possibly the most famous traditional use of windmills are the iconic figures in
Holland, where the basic design of these renewable energy systems was
developed to incorporate propeller–styled blades made with sails. In the United
States, early colonists used windmills to grind wheat into flour, pump water and
cut wood at sawmills.

However, what is believed to be the first a windmill being used to generate


electricity was developed in 1888. Charles F Bush built ‘The Bush Machine’ with
a multi-bladed rotor 17 meters in diameter, in Cleveland, Ohio, which powered
batteries in his cellar. This system was developed and windmills were designed
to provide rural communities with electricity, then to power lines that carried
electricity from the urban centers in the 1930s. The design of a high-energy
producing windmill was refined and sophisticated by various countries, including
Russia, Germany and Denmark. Now, a sprawling sea of windmills can be seen
just outside of Palm Springs, California, and banks of windturbines are being built
offshore, for instance off Denmark. These technologies have been given an

© Chiltern Magazine Services Ltd. 2009 www.energy-market-research.info


additional boost by concerns about global warming, but they were also made
popular in the 1970s following oil shortages. In the USA, California’s wind
turbines produce double the wind energy than any other US state.

Leading Countries in Global Wind Energy Industry


Published by Aruvian Research in March 2009
In many parts of the world, wind energy has already grown to be a mainstream
energy source. This growth has long been driven by concerns about global
climate change, mainly in the developed world and especially in Europe.Wind
energy has emerged as the most attractive so...(more)

Solar energy

Ancient Greece and Rome were the first civilisations to realise the true power of
the sun as a source of energy. By designing their homes to face the winter sun,
they were able to use this passive solar design as a means to light and heat
indoor spaces and cut down on the amount of wood burned for energy. Since
then, the sun’s rays have been channelled by various inventors including
France’s Auguste Mouchout, who designed the first active solar motor. In 1861,
Mouchout invented a steam engine powered entirely by the sun, which although
groundbreaking, proved to be too expensive to power during a time where the
price of coal was rapidly falling. As the 20th century came and went, little
progress was made in developing solar energy until 1953.

Then, three US-based scientists Gerald Pearson, Daryl Chapin and Clavin Fuller
developed the first silicon solar cell, which was capable of generating a measurable
electric current. The New York Times proclaimed that the discovery meant the
“beginning of a new era, leading eventually to the realisation of harnessing the almost
limitless energy of the sun for the uses of civilisation.” But it was only until the 1970s
and the Arab oil embargo, that a global push for solar energy was accepted as a reliable
source of electricity. Then, the US government made massive investments into Pearson,
Chapin and Fuller’s energy cell in the hope of decreasing the global dependence on oil.
As the technology has developed the price of solar photovoltaic cells has dropped and the
market for PV energy sources is quickly developing at a rate of 30% per year.
Governments across the world now offer financial assistance for those interesting in
installing solar cells.

Global Solar Power Industry


Published by Aruvian Research in March 2009
The harnessing of solar energy is not new in fact, development of solar energy
dates back more than 100 years, to the middle of the industrial revolution. Solar
energy is pollution-free, an important benefit when the cost of removing
pollutants from the environment is c...(more)

© Chiltern Magazine Services Ltd. 2009 www.energy-market-research.info


Hydroelectric energy

Water is surprisingly powerful. The sheer force of water flowing downstream from
a moderately-sized river can exceed several million horsepower and slice
through mountain ranges or haul billions of tonnes of soil into the ocean. Energy
is created when the power produced through the gravitational force of falling or
flowing water is channelled. Water in motion, such as ocean waves, tides and
currents have played a key role in the development of renewable energy
sources. As with wind energy, the oldest generators of hydropower were
traditionally used to grind flour and grains for mills. And waterwheels have
provided electricity for small rural farming communities by channelling the power
of large rivers since the late 1800s.

These water turbines, however, were unable to function properly in fast-moving


creeks and waterfalls. The father of hydroelectricity, Lester Allan Pelton designed
the free-jet water turbine, the Pelton Wheel, patenting his design in 1880, which
took the traditionally used waterwheel and modified it to a technology that could
produce energy for the machinery and mills used during the north American gold
rushes of the time.

Now hydroenergy seems to be almost old fashioned. Some of the most famous
examples of hydroelectricity in north America, Niagara Falls, Grand Coulee and
Boulder Dam, have become more than just a producer of renewable energy but
tourist attractions. The Egypt’s Aswan dam on the Nile, and the Three Gorges
dam in China are justly famous (and controversial). But critics of hydroelectricity
are quick to point out the flaws and potential dangers of such feats of
engineering.

In 1975, the Banqiao hydroelectric dam in China collapsed during Typhoon Nina
– 26,000 people were killed as a result of the collapse and another 145,000
deaths were caused because of disease and famine created by the disaster.
Looking into the future, hydro power could become increasingly controversial
because of their hydrological impact and the fact that greenhouse gases that are
produced as a result of the decaying trees and other organic matter submerged
under water during the creation of reservoirs.

Analyzing Hydropower Energy


Published by Aruvian Research in March 2009
The role of water as a multi-faceted necessity for humans cannot be more
stressed upon since as many adaptive uses that were demanded of it by
civilizations; water has met most of them or in some cases - all. Nature’s most
wonderful resource never ceases to amaze imagin...(more)

© Chiltern Magazine Services Ltd. 2009 www.energy-market-research.info


Biomass energy

Biomass, primarily wood, was once the major source of power prior to the
Industrial Revolution of the 1800s. The term, which refers to any form of plant or
animal tissue that can be transformed into a source of energy, includes materials
like straw and manure. Various innovators and industries have used different
forms of biomass to power a range of electricity generating designs.

In the 1880s, Henry Ford fueled one of his first automobiles, the quadricycle with
ethanol, while the German inventor, Rudolf Diesel designed a diesel engine to
run on peanut oil. Biomass fuels, particularly ethanol, were expected to be the
main source of fuel for motor vehicles in the United States. And during the 1920s
and 1930s, more than 2,000 service stations sold ‘gasohol’, an ethanol fuel
derived from maize. But following World War II, the ethanol fuel industry closed
down because of the import of low-cost petroleum fuels following the massive
development of oil production, especially in the Middle East.

Biomass as a source of energy continued to become more and more obsolete


with the adoption of electricity and natural gas as a way of heating homes and
commercial buildings. However, as the 20th century drew to a close and countries
became more concerned with the impact fossil fuels have on their environment,
bio-based alternatives s began to be a point of energy policy reform for many
western countries. Brazil had long used ethanol as a fuel for its automobile
industry.

And the United States mandated the 1990 Clean Air Act, which promoted the
sale of oxygenated fuels, such as ethanol-blended gasoline, in parts of the
country with exceptionally high levels of carbon monoxide. The law influenced
the growth of ethanol production in the USA. The European Union has also been
increasingly promoting the use of biomass both for liquid fuels and also for
electricity. This has long been used, for instance in Ireland, with its peat-fired
power plants. Also, scientists are increasingly focusing on designs for converting
bio-mass waste, such as wood and food production waste, into useable
feedstocks for electricity and heat generators.

Understanding Biofuels
Published by Aruvian Research in March 2009
The topic of biofuels has drawn increased interest worldwide in the wake of
steeply-climbing fossil fuel prices in 2005-2006. In late 2006/early 2007 prices
began to subside, but are unlikely to return to their former levels. The painful
experience of national economies...(more)

© Chiltern Magazine Services Ltd. 2009 www.energy-market-research.info


Tidal energy

Tidal energy is a largely untapped source of renewable energy that depends


solely on the moon’s gravitational pull on our seas, oceans and estuaries. The
use of tidal power dates back to 900 AD according to some historians, when the
first tidal energy plants were designed with a dam built across a tidal basin. Once
this was filled with water from the rising tide, the water would be released through
an energy-conversion device, such as a waterwheel or a paddlewheel. The
energy was then used to grind grains into flour and would last for about two to
three hours, twice a day.

As with most renewable energy sources, the industrialised world required much
more energy then early tidal barrages were capable of producing and so the
industries looked to fossil fuels as a power source. In 1965, however, the first
modern-era tidal power plant was built outside St Malo, in northern France,
where it has since operated a bulb-type hydroelectric turbine.

Another commercial plant in Nova Scotia, eastern Canada operates a 16-watt


turbine, and there are other, smaller barrages around the world, for instance near
Swansea, in South Wales, UK. Proposals for tidal barrages have often proved
controversial because as well as being expensive, they require massive
structures, which are difficult to build in saltwater environments. There are other
objections too: because of their sheer size, barrages can impede fish migration,
block navigation, while changing intertidal zones and downstream tidal systems.
These factors have slowed the innovation of tidal energy technologies and have
forced many environmentally conscious energy producers, to look at alternative
methods to produce power from renewable sources.

The World Wave and Tidal Market Report 2009-2013


Published by Douglas-Westwood in December 2008
A new renewable energy sector reportThe World Wave & Tidal Market Report is
a new report focusing on the current and future prospects, technologies and
markets for the wave and tidal current stream sectors.An emerging industryThe
wave and tidal sectors ar...(more)

Combined heat and power energy

Combined heat and power (CHP) utilises a fuel source - renewable or fossil - to
provide electric and thermal energy to a facility at a more efficient rate than if
electricity and thermal energy were being provided separately. Benefits of this
system include lower levels of emission than conventional heating systems.
Initially this system of heating was introduced in the 1880’s – a key time for
renewable energy innovation - when reciprocating steam engines powered the
first electric generators.

© Chiltern Magazine Services Ltd. 2009 www.energy-market-research.info


The waste steam produced by these inefficient machines was sent through pipes
for space heating. CHP was widely popular during the later Industrial Revolution
for specific industries, such as the production of pottery and sugar. While a
steam reciprocating engine was used to power wheels and crushing mills, the
excess steam could be used to dry and heat the finished product. However, as
with other green energy systems, during the 20th century, coal became readily
available for the power sector and relatively cheap making it the choice for
electricity generation.

Following the ‘energy crisis’ of the 1970s, the United States found that by
building larger plants capable of joint thermal and electric output, they could
reduce the demand for energy. However, it was still not until the 1980’s that the
USA saw a rapid growth for CHP capacity in large industries, such as pulp and
paper, petroleum and petrochemical plants. Today, most European Union
countries, as well as the United States, receive about 9% of their power from
CHP generators.

Geothermal energy

Geothermal energy really does go way back. The first use of geothermal energy
is an estimated 10,000 years ago by the American Paleo-Indians, who used hot
springs for bathing, healing and as a source of heat. In Europe, the Romans
created bathhouses that relied solely on geothermal waters to fill their pools while
at the same time heat their homes. And in the early 1800s, the development of
electricity production and geothermal heat pumps helped boost spa and resort
markets in Europe and the United States. However, it was not until 1892 that
geothermal energy was developed to heat an actual district: in Boise, Idaho, in
the American mountain west, where a system provided energy to 200 homes and
40 downtown businesses.

The early 1900s saw the first geothermal electric power plant being invented in
Italy by scientist Piero Ginori Conti who set up this groundbreaking equipment at
the Larderello dry steam field. Geothermal power development has generally
thus far only been popular where geological conditions make it cheaper and
easier to use. Today, Reykjavik, the capital of Iceland, is powered by geothermal
energy from the volcanic and seismic activity below this geological stripling of a
country. In the United States, the 1960s saw the development of geothermal
electricity plants at The Geysers in Sonoma County, California. Presently, there
are 69 generating geothermal plants in 18 different sites across the USA and
other parts of the world are increasingly developing geothermal energy
technology to cut their greenhouse gas emissions.

Analyzing Geothermal Energy


Published by Aruvian Research in March 2009

© Chiltern Magazine Services Ltd. 2009 www.energy-market-research.info


3. EU imposes green energy targets on its member governments

AS 2009 dawned, the European Union’s (EU) renewable energy sector knew that
it had truly entered the mainstream of EU electricity markets, with its growth
being sanctioned by ambitious legislation approved before Christmas.
After more than a year of debates, the European Parliament and EU ministers
approved a new EU directive imposing mandatory national targets for the 27
member states regarding the portion of their gross final consumption of energy in
2020 coming from renewable sources. Across the EU, this is supposed to be an
average of 20%, taking into account electricity; heating and cooling; and
transport energy consumption.

But this is not really the number that matters. It is the national targets that have
teeth, and which will be policed by the European Commission. If governments
falter or waver in their determination to increase the amount of renewable energy
consumed in their national territories, expect an aggressive response from
Brussels – politically and legally, through the European Court of Justice (ECJ).

So the devil really is in this detail, in the crunchy numbers of the national targets.
Environmentalists were disappointed that some notorious renewables laggards
with comparatively strong economies (even as they sink into recession) - such as
Britain and Ireland - have been granted targets below the pan-EU 20% goal. For
the UK, this is just 15%; and for Ireland 16%. But energy players have pointed
out these targets are set against the existing small size of renewable energy
consumption in both countries, which the EU assessed as being a miniscule
1.3% for Britain in 2005, and a barely more respectable 3.1% in Ireland. And
given that these countries are starting from low base, growth might be that much
more difficult than in those countries that already have decent-sized renewable
energy sectors, and hence the expertise, the capital and the infrastructure in
place that they can build upon.

Other countries that will face similarly tough tasks will include the densely
populated Low Countries: Belgium (told to increase its 2.2% 2005 renewable
consumption to 13% in 2020); tiny Luxembourg from 0.9% to 11%; and the
Netherlands from 2.4% to 14%.

Sun-drenched (but water parched) Malta (from zero to 14%); and Cyprus (2.9%
to 13%) will face similar issues, but can at least expect to exploit improving solar
power technology.

At the other end of the scale that traditional European paragon of virtue, Sweden,
topped the commitment list – promising to increase its renewable energy
consumption to 49%, from an already high 39.8% thanks to significant hydro and
biomass usage. Hydropower rich Latvia is committed to a 40% target – up from
32.6%. And Finland is planning to expand its hydro and bio-mass power

© Chiltern Magazine Services Ltd. 2009 www.energy-market-research.info


production base to reach a 38% target, up from 28.5%. Austria will be another
major contributor to the EU’s 20% goal, with a 34% target – probably expanding
its use of hydro sources which accounted for much of its 23.3% renewables
energy consumption share in 2005 – it also has significant potential biomass
feedstocks. And wind power specialist Denmark has a 30% target, up from 17%
in 2005.

Looking at the EU’s larger countries, Germany has set itself an ambitious goal of
deriving 18% of energy from renewable sources (up from 5.8%), although it may
still need to extend the life of its threatened nuclear plants to guarantee energy
security of supply. France is similarly ambitious – a goal of 23% - up from 10.3%.
And Italy has a slightly less imposing target of 17% - up from 5.2% in 2005.
Regardless of the debates, if these numbers are achieved, they will change the
face of EU energy production, which will henceforth be far more sustainable than
in the past, and involve much lower production of greenhouse gas.

Speaking to the European Parliament ahead of its final vote on the law on
December 17, EU energy Commissioner Andris Piebalgs said: “The binding
nature of the target will mean measures and support schemes for member states
using renewable energy will be predictable and long term. That will allow new
technologies to penetrate the market and not be marginal. We are proposing a
profound change.”

But of course how these translate into actual increases in green electricity,
heating and cooling services provided by utilities will depend on the share which
national governments allocate to these sub-sectors in their expansion of
renewable energy. Complex statistical work will be required and although there
will inevitably be flexibility involved in the way that governments respond, the
directive includes a wide range of detailed clauses that say what can be plugged
into the necessary statistical equations and what cannot. Maybe the most
important of these is the survival of the pledge in the legislation that “the share of
energy from renewable sources in all forms of transport in 2020 is at least 10% of
final consumption of energy in transport in that member state”. It is a key issue
and it will inevitably stop governments focusing entirely on boosting renewable
energy production by utilities, but its impact on green electricity, heat and cooling
growth will of depend on existing biofuel consumption.

How other considerations will shape member states’ achievement of their final
target is spelt out in the legislation. These include energy efficiency initiatives; the
impact of cooperation between local, regional and national authorities; joint
projects with other member states; policies to develop existing (or mobilise new)
biomass resources, and others.

So these calculations will be complex and the next step will be the development
of detailed national renewable energy action plans by national governments,

© Chiltern Magazine Services Ltd. 2009 www.energy-market-research.info


which must be submitted to the European Commission by June 2010. This will be
based upon a template released by Brussels by June 2009. These plans will
include the detail that utilities will want to know, namely the “national targets for
the shares of energy from renewable sources in transport, electricity and heating
and cooling in 2020”.

And given the diversity of starting points in Europe regarding the climatic,
geographical and industrial status quo, these plans will contrast widely,
especially as regards the share of different technologies within increases in
green electricity, heating and cooling. For this reason, a directive was chosen as
the form of EU legislation used – these laws always give member states effective
leeway over implementation). But in his speech to MEPs, Mr Piebalgs said such
diversity was no bad thing, especially given the technical immaturity of many
relevant systems. He declared: “We need to invest in a number of technologies
at this stage. The worst thing that could happen is that we hamper development
of some particular technology, for example, solar energy, that today is more
costly compared with wind technology.” Piebalgs added that cross-border
cooperation in attempts to achieve these targets was especially important: “I
should mention one investment by a Czech company in wind energy in Romania.
This is what we are looking for. We are looking for massive investments where it
is cheaper, but it does not necessarily mean that any technology should be
excluded.”

One area where the Commission will most certainly be looking for innovation will
be ensuring renewable electricity producers have adequate connections to the
grid. As a result, the legislation includes a binding commitment that insists
governments ensure their grid systems “accommodate the further development
of electricity production from renewable energy sources, including
interconnection between member states, as well as third countries.” Indeed there
is a pledge that transmission system operators “give priority” to renewable power
generators “insofar as the secure operation of the national electricity system
permits…”

British north east England Liberal Democrat MEP Fiona Hall welcomed this,
telling the parliament: “For the renewable energy industry, the directive offers
legal certainty and the sweeping away of barriers to progress such as connection
to the grid.”

There are other more detailed commitments that will inform how member states
respond, for instance on building codes, where governments must “by
2015…where appropriate, require the use, of minimum levels of energy from
renewable sources in new buildings and (renovated) buildings.”

And another clause says certification schemes (or equivalents) must be available
by December 2012 for installers of small-scale biomass boilers and stoves, solar

© Chiltern Magazine Services Ltd. 2009 www.energy-market-research.info


photovoltaic and solar thermal systems, shallow geothermal systems and heat
pumps.

And finally, of course, a key point about this legislation is that it deals with
minimum targets. It aims to create a sustainably growing green energy sector
that will carry the EU’s renewables consumption far beyond its 20% goal,
especially through promoting technical innovation and economies of scale. As
Luxembourg green MEP Claude Termes, the coordinator of the parliament’s
work (its rapporteur) on the directive, said to his colleagues: “For me 20% is a
minimum. I am sure that by 20% we will have more green energy than 20%:
because the costs of the technology are going to shrink; and because all the
economy will become built around renewable energy.” And he added: “regarding
electricity, we have more than 15% green energy already and will have 35% in
2020. What could prevent us reaching 50% between 2025 and 2030?”
This target has been exercising minds in the sector. For instance, an alliance of
European renewable energy organisations last November launched a plan
stating how the European Union could meet 20% of its energy needs with
renewable energy sources by 2020. This 'Renewable Energy Technology
Roadmap' was produced by the EU-funded RESTMAC project. It includes
detailed action plans covering renewable energy technologies, such as
bioenergy, solar thermal, photovoltaic energy, small hydropower, ocean power,
wind electricity and others. See http://www.erec.org/projects/ongoing-
projects/restmac.html for full details.

Another innovative idea came last year from the green group of the European
Parliament, which has been pushing for the establishment of a separate
European Union treaty that would commit EU institutions to promoting the
development of renewable energies.

The MEPs have been inspired by the success of another separate EU treaty –
albeit one they are not fond of – the Euratom treaty, which guarantees separate
budgets to assist the operation of nuclear power plants. It was set up in 1957,
when the original European Economic Community was established, as a special
collaborative initiative, working alongside the now defunct European Coal and
Steel Community. The green group study suggests the creation of a European
Community for Renewable Energies (ERENE). This would use dedicated
branches of existing institutions such as the European Commission to assist the
development and operation of green energy production and transmission.

German former EU budget Commissioner and green politician Michaele Schreyer


co-authored the report. She said: “Creating a European renewables community
in the mould of Euratom would provide vital support to research, pilot projects
and the grid.” Another co-author, Lutz Mez, head of the environmental policy
research centre at the Free University of Berlin, said: “Europe had a coal and
steel community for 50 years and its nuclear agency Euratom has existed for

© Chiltern Magazine Services Ltd. 2009 www.energy-market-research.info


over half a century. It is high time for renewables to be given the same status,
with a treaty or system of enhanced cooperation between member states.”
Within EU-related development institutions financing will be made available for
renewable energy projects. This includes the European Bank for Reconstruction
& Development (EBRD), which recently lent the Bulgarian government Euro 198
million to develop a 156-megawatt wind farm. This money will be augmented by
assistance from the International Finance Corporation (IFC), of the World Bank.

An EBRD note said the loan would “help the country promote clean and
sustainable energy and reduce its dependency on fossil fuels”.
The other key financing institution here is the European Investment Bank (EIB).
This is operationally independent of other EU bodies and raises money on
international markets, while also being bankrolled by member states and the EU.
Because of its size and stability it not only has huge financial clout. There is also
an annual lending sub-target of Euro 600 million-800 million for renewable
energy projects and a relative target that 50% of EIB lending to electricity
generation projects be associated with renewable energy technologies. More
money is being made available by the bank during the current economic crisis to
help kickstart the European economy, and green energy infrastructure projects
have been highlighted as priority financing items for this Luxembourg-based
institution.

The initiative could find support amongst the supports of another new green
energy initiative, by global interdependence discussion group the Tällberg
Forum. Taking its name from the Swedish village where it holds annual
discussions, the forum is backing NASA Chief Scientist James Hansen’s call to
limit the concentration of carbon dioxide in the atmosphere to 350 ppm (parts per
million). This is tighter than Intergovernmental Panel on Climate Change (IPCC)
targets that would reduce CO2 concentrations to 400 ppm to limit the increase in
global temperature to a maximum of 2 degrees centigrade over pre-industrial
levels. This proposal is being publicised by the European Environment Agency
(EEA) and so could increase pressure on EU institutions and member states to
further reduce climate change emissions.

And an International Energy Agency (IEA) report released in October 2008


claimed that the world must generate half its electricity supplies from renewable
energy sources by 2050 to avoid the most serious climate change. It praised
renewable programmes in Spain, Germany, Denmark and Portugal (wind-power)
and China (solar heating). *See http://www.iea.org/w/bookshop/add.aspx?id=337
for full details.

Analyzing the European Renewable Energy Industry


Published by Aruvian Research in January 2009
Renewable energy technologies range from solar power, wind power,
hydroelectricity/micro hydro, biomass and biofuels for transpo...(more)

© Chiltern Magazine Services Ltd. 2009 www.energy-market-research.info


4. EU framework research programme offers millions of euros to
renewable energy companies

IN today's highly competitive power sector, electricity companies and their


suppliers are always looking for an edge over rivals, especially in technology. So
it can only be good news that the European Union (EU) will from this year until
2013 be spending Euro 2.3 billion on energy studies (much earmarked for green
energy) through its 'seventh framework programme', its largest ever research
spending scheme, commanding budgets worth Euro 53.2 billion in total. Another
Euro 1.8 billion will be spent on environmental research, including new
technology that reduces greenhouse gas emissions. Private companies and
state-owned organisations can apply for money from these pots and given the
amounts set aside for these topics, it is inevitable that innovative projects
developing new alternative power generating and transmission technology will
land major grants. Green power sector players - like other applicants - have to
raise 50% of the funding of their projects from other sources, and if they can
demonstrate they will use the research to create jobs and wealth with the EU,
they can enjoy control over the use of the findings, as far as commercial
exploitation is concerned.

In the two years of debates involving EU institutions that forged the framework
programme (FP7), MEPs and EU ministers laid down priority policy areas for
energy research funding and many of these will be able to be exploited by
ambitious renewable and alternative electricity sector organisations seeking
public money. They include:
*Renewable electricity generation - technologies to increase overall conversion
efficiency, cost efficiency and reliability, driving down the cost of electricity
production;
*Hydrogen and fuel cells - supporting EU fuel cell and hydrogen industries, for
stationary as well as portable applications;
*CO2 capture and storage technologies for zero emission power generation -
technologies reducing the environmental impact of fossil fuel use by capturing
CO2;
*Clean Coal Technologies - substantially improving power plant efficiency,
reliability and reducing costs through research, development and demonstration
of cleaner coal and other solid fuel conversion technologies, producing also
secondary energy carriers (including hydrogen) and liquid or gaseous fuels; and
*Smart energy networks - increasing the efficiency, safety, reliability and quality
of European electricity systems and networks.

A Commission report on FP7 energy research explained the thinking behind


these priorities: "Europe's energy economy, and that of the world, is currently on
a path that is not sustainable and urgent action is needed. The focus of the
research and demonstration actions in FP7 will be on accelerating the

© Chiltern Magazine Services Ltd. 2009 www.energy-market-research.info


development of cost-effective technologies for a more sustainable energy
economy for Europe (and the rest of the world) and ensuring that European
industry can compete successfully on the global stage."

So, without doubt, there is money to be tapped. The question: how to get it?
For research teams in the renewable power sector, there are four considerations:
first to have a relevant idea to develop; second to be aware of when money is
being released; third to have potential project partners; and fourth to get the
application right.

To fulfill the demands of the first two demands, researchers should keep tabs on
'calls for proposals' made by the European Commission, issued regularly over
the next seven years; they include detailed instructions on how to apply for
money. So watch the relevant Brussels websites -
http://ec.europa.eu/dgs/research/tenders/index_en.html;
http://cordis.europa.eu/fp7/dc/index.cfm; and
http://cordis.europa.eu/news/calls_en.html.

The Commission showed its intent for backing the green energy sector in its first
call for proposals under FP7, two weeks before the programme was formally
launched on January 1, 2007.

This was a large clump of requests, to be followed by a series of smaller calls,


which will not follow any specific timetable. This initial tranche included one call
worth Euro 128 million. Topics requested included:
*Developing secure, reliable and affordable feedstocks for photovoltaic electricity
production, plus innovative manufacturing processes;
*Creating novel solid biofuels for power generation and equipment for high
efficiency medium-to-large scale biomass electricity generation;
*Demonstration projects for large-scale wind farms and integrating wind power
into the European power system;
*Building low cost, high efficiency solar power daily storage systems; and
innovative concentrated solar power heat transfer concepts; and
*Investigating poly-generation concepts for coal-fired power plants.
Another call issued at the same time had Euro 109.3 million to spend on
innovative energy research projects, its requested topics included:
*Basic research for materials and processes regarding polymer electrolyte
membrane fuel cells;
*Developing dye-sensitised photovoltaic solar cells; binary thin-film photovoltaics;
and crystalline silicon photovoltaics;
*Testing, standards and certification for wind energy systems; and
*A feasibility study and development of a large scale zero emission fossil fuel
power plant.

© Chiltern Magazine Services Ltd. 2009 www.energy-market-research.info


The Commission followed this up with another call in 2008 for renewable energy
researchers to apply for Euro 147 million of energy research grants under the
FP7. Studies developing technology and good practice in renewable energy;
clean coal technologies; smart energy networks; energy efficiency and savings;
and high efficiency poly-generation, were requested for submission in grants
applications.

This trend has continued, with energy projects attracting serious framework
programme funding. Another major Euro 100 million call for proposals for energy
research projects was issued last year, with an April 29 deadline for applications.
The Commission is planning to spend a lot of this money on biofuel research,
notably the development of biorefineries. Here, a detailed guidance document
says funded research would support the “development of advanced biorefineries
for sustainable processing of biomass into building blocks for the production of
bio-based chemicals, materials, second generation biofuels, power and heat.”
The money would fund demonstration project showing how such biorefineries
work, with part of a pilot biorefinery being “demonstrated at industrial pilot plant
scale”. There is also a May 5, 2009, deadline for applying for Euro 4 million for
joint projects with Brazil to develop second generation biofuels.

As can be seen from the detail of these calls, it helps applicants to have some
idea of the likely topics of proposals, and the Commission will set out its plans for
these calls in annual work programmes, providing details about the topics,
timings and implementation. Prior knowledge will allow power research groups to
approach research teams from other EU countries to forge international alliances
of research teams for applications, usually a key consideration for grant awards,
which are deigned to promote work that is harder to undertake in one country
only. Importantly, a series of advisory groups are being established to help the
Commission draw up its plans - see
http://ec.europa.eu/research/fp7/advisory_en.html.

In reality, however, the power sector is in the right place, with the Commission
saying in a report that the FP7 places "greater emphasis" than its predecessors
"on research that is relevant to the needs of European industry, to help it
compete internationally, and develop its role as a world leader in certain sectors."
Indeed, imaginative power researchers could seek to tap EU funds from other
FP7 budgets, all with millions of Euros to spend. Biomass power and biofuel
development projects could handily delve into the 'food, agriculture and
biotechnology' section's calls for proposals, for instance. Projects using high tech
IT to develop intelligent energy systems, especially those improving energy
efficiency, could get money from the FP7 'information and communication
technologies' budget. And there is a special budget for nanotechnology: "new
materials to improve energy conversion efficiency and more energy-efficient
industrial processes", could score grants here, said a Commission note.

© Chiltern Magazine Services Ltd. 2009 www.energy-market-research.info


Meanwhile, researchers developing innovative renewable energy technology and
solutions to deal with climate change should also benefit from another new EU
research institution – the European Institute of Technology (EIT). Inspired by the
success of the Massachusetts Institute of Technology (MIT) in the USA, the
European version will be virtual, based on formal networks of expert researchers
- ‘knowledge and innovation communities’. Its goal will be developing
technologies with real potential for commercialisation. Academics have criticised
the EIT for diverting potential resources from other EU research initiatives, such
as the European Research Council, which focuses on basic studies. The EU
Council of Ministers backed giving the EIT a Euro 308.7 million budget over six
years from January 2008, and supported initially creating two or three EIT
‘communities’, to focus on “priority EU policies, such as renewable energy and
climate change.” It also has a draft future spending pot of Euro 2.4 billion until
2013.

Crucially, its projects will involve innovative industrial players and businesses
from across the EU: renewable energy companies most certainly should apply.
Welcoming the approval of the law, European Commission president José
Manuel Barroso said: “The EIT is set to become an important feature of Europe's
innovation landscape. It will facilitate and enhance partnerships and cooperation
between the worlds of business, research and higher education…helping to
boost jobs and growth.”

Barroso has been especially keen on the EIT. And his enthusiasm has overcome
some doubters amongst academics concerned the new institution could just
mean more bureaucracy, wasting EU research cash that could otherwise fund
useful studies. They also feared the EIT could become a competitor to existing
universities.

In bricks and mortar terms, the EIT will manifest itself as a secretariat in
Budapest, Hungary, administering key work managed by groups called
‘knowledge and information communities’ or ‘KICs’. These autonomous groups of
higher education institutions and companies are at the heart of the EIT, having
control over budgets: they will generate and allot research spending on priority
topics as they see fit. Under the EIT law, each KIC must have at least three
partner organisations established in at least two EU member states, one of which
must be a higher education institution and another a private company. Innovative
energy companies will be able to participate in these KICs and furthermore they
will be able to create consortia with academics to secure funding for joint
research projects managed by these KICs, under detailed rules that will be
released later.

In this regard, renewable energy companies will be happy that the EU Council of
Ministers and the European Parliament agreed that the first KICs were likely to
include communities dedicated to funding research into renewable energy or

© Chiltern Magazine Services Ltd. 2009 www.energy-market-research.info


climate change-related technologies. “The EIT governing board should select
KICs in areas that help the EU to face today's and tomorrow's challenges, such
as climate change, sustainable mobility, energy efficiency or the next generation
of information and communication technologies (ICT),” said a parliamentary
amendment to the EIT’s founding regulation.

This followed a European Commission policy paper (Communication) on the


initiative saying the KICs’ strategic interdisciplinary subjects should “represent
key technological challenges in a long term perspective, where there is the
potential to generate innovative solutions and commercial advantages with a
major impact on Europe’s competitiveness. They should be areas with ‘business
relevance’ and an agenda between fundamental research and downstream
applied research, particularly in new areas of enquiry which require a multi-
disciplinary approach, such as…green energy.”

So, without doubt the EIT will spend a lot of money on energy research,
especially alternative energy and climate change innovation.

The EIT has elected Prof. Dr. Martin Schuurmans as chairman of its governing
board. He is a physics professor at and a former executive vice president of
Philips Research. A Dutchman, he is currently chairman of the international
advisory board to the Sino-Dutch Biomedical School of Information Engineering
(BMIE) in Shenyang, China, which he co-founded and was its dean from 2006-7.

As ever with EU funding initiatives, it pays to monitor formal announcements –


see http://ec.europa.eu/eit
*More seventh framework programme information:
*http://ec.europa.eu/research/fp7/home_en.html
*http://cordis.europa.eu/fp7/
*http://ec.europa.eu/research/consultations/list_en.html
*http://cordis.europa.eu/technology-platforms/home_en.html
*http://erc.europa.eu/pdf/erc-draftwp-2007_en.pdf
*http://ec.europa.eu/erc/index_en.cfm
* http://cordis.europa.eu/fp7/understand_en.html
* http://ec.europa.eu/research/fp7/understanding/index.html

Keynote's European Renewable Energy Industry Market Research Report


Published by Keynote in March 2008
In this Key Note Market Assessment report, the EU renewable energy industry is
described and analysed in terms of statistics, industry structure and corporate
developments. Renewable energy is a vital part of the EU's energy, for two main
reasons. The principal reason i...(more)

© Chiltern Magazine Services Ltd. 2009 www.energy-market-research.info


5. Renewable energy means transport too

PROGRESS in renewable energy is often considered to be an issue of green


electricity generation, but of course transport is a key potential consumer of
renewable energy. Given the preoccupation of the auto industry these trying days
to merely survive past the next quarter, it is refreshing to learn of an international
project dealing with the environmental effects of a road transport sector actually
projected to grow and grow in the long term, as the developing world gets richer
and more mobile. Such is the concern of a '50 by 50' Global Fuel Economy
Initiative launched in March by the UN Environment Programme (UNEP), the
International Energy Agency (IEA), the International Transport Forum (ITF) and
the FIA [Fédération Internationale de l'Automobile] Foundation.

Far from predicting the gloomy collapse of car makers, this initiative looks
beyond the current downturn and has released a report claiming: “The world’s
car fleet is expected to triple by 2050, with 80% of the growth in rapidly
developing economies.” Should this come to pass, the climate change risk posed
by auto-based carbon emissions will be immense, says the report, which while
accepting “the car manufacturing industry is facing huge difficulties in the
economic recession”, stresses the need to “find ways to reconcile legitimate
aspirations for mobility, an ambitious reduction in CO2 from cars worldwide, and
global economic recovery.”

Worthy goals indeed: and the four partners have drafted detailed blueprints on
how this should be achieved. Its goal is a global car fleet that runs on 50% less
fuel by 2050, stabilising its greenhouse gas emissions, with intermediate goals
for 2020 and 2030. These are far from being tough to achieve. For the 2020 aim
of a 20% improvement in emissions for all cars on the road, the initiative thinks
this can be achieved via improvements in new car fuel economy and additional
measures such as eco-driving, improved aftermarket service and better vehicle
maintenance.

For a 30% average improvement in emissions from new cars by 2030, the report
suggests “incremental improvements and full hybridisation of most models of
vehicles”. Indeed, it stresses a wholesale move to plug-in hybrids, electric and
fuel cell vehicles would not be required, although it would be beneficial, naturally.
If this 2030 goal is met, the natural replacement of old vehicles should fulfill the
2050 target - effectively front loading necessary change in the first two decades
of this plan. David Ward, FIA Foundation director general said the partners would
push for tax incentives and conduct information campaigns to “help encourage
consumer demand for more fuel efficient cars.” An early step planned for 2009 by
the four partners will be developing a fuel economy information database for
fleets and private motorists. UNEP executive director Achim Steiner said: “We
would urge the world's car and component makers to get on board to prove that
they too are part of the solution.” See

© Chiltern Magazine Services Ltd. 2009 www.energy-market-research.info


http://www.fiafoundation.org/50by50/documents/50BY50_report.pdf for full
details.

One key potential technology and one that has the year of the European
Commission is the development of hydrogen fuel cells as a pollution-free
renewable energy system for powering cars, lorries, vans and buses. These fuel
cells combines hydrogen and oxygen to produce electricity, heat, and water
(which is its only real emission).The fuel cell will produce electricity as long as
fuel (hydrogen) is supplied, so the key issue here – as well as producing
hydrogen fuelled automobiles, is ensuring the construction of hydrogen refuelling
networks that are as comprehensive as those for petrol and diesel. In pure
environmental terms this technology is greener than biofuels, especially those
first generation fuels that are made from food commodities, which not only
require a lot of energy to produce, they consume important food sources and
their combustion creates greenhouse gas emissions.

The European Union (EU) is particularly keen on hydrogen fuel-cell technology


and has launched a long-planned ‘Euro 1 billion’ budget joint technology initiative
on fuel cells and hydrogen. This project is designed to coordinate Europe’s auto
makers, parts manufacturers, energy firms, EU institutions and governments in
commercialising hydrogen fuel cell technologies between 2010 and 2020. And
the whole process is supposed to be lubricated with liberal amounts of cash:
witness the headline grabbing Euro 1 billion budget.

EU research Commissioner Janez Potočnik was enthusiastic at the project’s


formal launch at its ‘Stakeholders General Assembly’, staged in Brussels last
October. He said: “This brings together the most significant players to put Europe
ahead of the game in new energy technologies.” He said it “provides us with the
unique opportunity to implement our plans on a large European scale”, adding:
“To prepare the market for these strategic technologies… it is not only needed for
the relevant industrial sectors to develop the supply chain but to ensure
cooperation between research, industry and government, at regional, national
and European level.”

Looking at the organisational nitty gritty, the project will be led by a governing
board, with daily management and operations the responsibility of an executive
director supported by a programme office in Brussels. A scientific committee will
advise the board, as will a national government ‘states representatives group’
and the annual general assembly. Its European Union money will be drawn from
the EU’s seventh framework programs which funds the bulk of Commission
research initiatives.

And this money is starting to be squeezed into the project. The Commission has
already released its first call for research proposals aimed at developing
hydrogen fuel cell technology, with Euro 28.1 million being made available in the

© Chiltern Magazine Services Ltd. 2009 www.energy-market-research.info


first tranche of funding announced earlier this month. Of this, Euro 8.9 million is
earmarked for transport and refuelling infrastructure research, including
demonstration projects of vehicles, fuel cell stacks and compressed hydrogen
onboard storage. The deadline for submitting proposals for this cash is January
15, 2009, and auto industry companies may most certainly apply. See
http://cordis.europa.eu/fp7/dc/index.cfm?fuseaction=UserSite.FP7DetailsCallPag
e&call_id=172#infopack for details.

There has been criticism of the scheme, however. According to the European
fuel cell and hydrogen association FuelCellEurope, this Fuel Cells and Hydrogen
Joint Technology Initiative (JTI) – to give its ponderous full name – is actually
less than generous. Its president Marcus Nurdin said the EU would actually only
provide Euro 470 million of the budget, with the rest being levered in from outside
sources. And also, crucially – Euro 1 billion is far from what is needed to make
Europe the world leader in hydrogen fuel cell technologies. In fact “Euro 7.4
billion of public and private resources” are actually needed for this job, claimed
Nurdin. He added: “From an industry perspective we welcome this initiative,
however as we have explained regularly over the past two years, we don’t think
European Commission’s commitment is matching the expectations and the
magnitude of the opportunity offered by fuel cell and hydrogen technologies to
address energy security and climate change issues.”

And as well as the money not being good enough, FuelCellEurope - which
represents fuel cell equipment manufacturers, users, energy companies and auto
manufacturers - is also unhappy with how the initiative will be run.
The initial aim, it claims, was that it would be an industry-run program with
minimal red tape. “None of this is being achieved with the current European
Commission proposal and attitude, and industry is being asked to take a
substantial financial burden to run the program office and administrative costs,
without getting anything concrete in return,” fumed a very critical note from the
association.

Whatever happens with the technology initiative and its budget, to ease the
introduction of this technology across Europe and make sure it is not hampered
by conflicting national standards, the European Union (EU) has developed an
EU-wide technical standard for hydrogen vehicles. It secured widespread support
at the European Parliament, whose spokesman on the issue (called its
‘rapporteur’ in parliamentary jargon) Arlene McCarthy, a British Labour MEP,
said: “At a time when petrol prices in Europe have doubled and with ever growing
concern about the effects of climate change it is clear we need new hopes for
future fuels.”

Noting that the sale of alternative fuelled vehicles in Britain had grown from just a
few hundred in 2000 to over 16,000 last year, she noted that “hydrogen cars are

© Chiltern Magazine Services Ltd. 2009 www.energy-market-research.info


only on the cusp of large scale production”, adding: “This new law will boost the
development of these vehicles while ensuring they are reliable and safe”.
The parliament and European Commission had been concerned that because
hydrogen vehicles are not current included within the EU type-approval system
for vehicle standards, national governments may start approving vehicle designs
on a piecemeal basis.

A parliamentary statement warned that each 27 EU member government might


then draw up potentially contrasting standards: “This would lead to high costs for
manufacturers, create safety risks and also considerably impede the spread of
hydrogen technology in the EU.” A European standard could also influence
American and Asian regulators, who are considering their own hydrogen vehicle
standards, helping make these compatible, the statement added.

MEPs passed some amendments to the proposal, including a commitment for


member states and the European Commission to subsidise the development of
hydrogen filling station networks. Also, the parliament wanted the standard
expanded to include motor-cycles and also to ensure that emergency rescue
services are warned automatically through intelligent vehicle systems about the
hydrogen power source of a vehicle involved in an accident.

And it is not just road transport that could benefit from hydrogen-fuel cell
technology. EU-funded researchers are developing what will be the first
hydrogen fuel-cell operated airplane. Financed by Euro 2.9 million from the EU,
the Environmentally Friendly Inter City Aircraft will be created at Italy’s
Polytechnic of Turin, and should take two more years to develop.
The goal of the project is to build an intercity shuttle aircraft that uses fuel cell
technology for the propulsion system, and hydrogen storage.
These technologies would also be developed to replace on-board electrical
systems.

Romeo Giulio, Project coordinator and Professor of Airplane Design and


Aerospace Structures from the Turin Polytechnic University said: “Hydrogen and
fuel cell power technologies have now reached the point where they can be
exploited to initiate a new era of propulsion systems for light aircraft and small
commuter aircraft.”

Mr Giulio said the advantages of using fuel cell engines and power systems
would be low noise and low emissions, features vital for commuter aeroplanes
that usually take off and land in urban areas. He stressed that the ability to take
off and land without breaking noise regulations in towns and cities would allow
the use of airfields late at night.

The fuel cell system will be installed in selected aircraft and then flight and
performance tested.

© Chiltern Magazine Services Ltd. 2009 www.energy-market-research.info


6. Market Studies & Reports

Water Utilities: Extended Global Industry Guide : Datamonitor


Published by Datamonitor in May 2009
Datamonitor's Water Utilities: Extended Global Industry Guide is an essential
resource for top-level data and analysis covering the Water Utilities industry. It
includes detailed data on market size and segmentation, textual analysis of the
key trends and competitive la...(more)

Indian Solar Energy Market Outlook 2012


Published by RNCOS in May 2009
Solar energy offers enormous potential for a tropical country like India where
around 45% of households, mainly rural ones, do not have access to electricity,
says a new research report �Indian Solar Energy Market Outlook 2012� from a
leading research company RNCOS. Ind...(more)

The impact of the economic downturn on the renewables sector : Datamonitor


Published by Datamonitor in April 2009
IntroductionIn a period of economic decline and environmental regulation to
source green energy by the EU Commission utilities are exposed to increasing
pressure to mitigate costs as well as make the correct environmental choices
either through M&A or through organi...(more)

Analyzing the Asian Wind Power Industry


Published by Aruvian Research in April 2009
Global demand for energy is increasing at a breathtaking pace, and this is
particularly true in China, India and other rapidly developing economies.
However, as demand on finite petroleum reserves and the price of the fuels
derived from them continues to rise, renewable...(more)

Analyzing Renewable Portfolio Standards in the US


Published by Aruvian Research in April 2009
A renewable portfolio standard (RPS) is a regulatory policy that requires the
increased production of energy from renewable resources, such as wind, solar,
biomass, and geothermal.The RPS mechanism generally places an obligation on
electricity supply companies to produc...(more)

Best practice in harnessing large scale renewable technologies


Published by Datamonitor in March 2009
IntroductionWith ever tightening environmental legislation and growing consumer
interest in renewable energy, increasing numbers of utilities are adopting large
scale renewable power technologies as core parts of their long-term generation
strategies. Yet, not all marke...(more)

© Chiltern Magazine Services Ltd. 2009 www.energy-market-research.info


Analyzing the Wind Power Industry in Mexico
Published by Aruvian Research in March 2009
By the end of the year 2008, 120 gigawatts of wind power capacity were installed
worldwide, after 94 gigawatts by the end of 2007. Already today wind provides
more than 1.5% of the global electricity consumption and the wind industry
employs half a million people. Curre...(more)

Analyzing the Wind Power Industry in Austria


Published by Aruvian Research in March 2009
As demand on finite petroleum reserves and the price of the fuels derived from
them continues to rise, renewable forms of energy are becoming more cost-
effective and profitable. In the forefront of this renewable revolution is harnessing
the sustainable power of wind.To...(more)

Leading Countries in Global Wind Energy Industry


Published by Aruvian Research in March 2009
In many parts of the world, wind energy has already grown to be a mainstream
energy source. This growth has long been driven by concerns about global
climate change, mainly in the developed world and especially in Europe.Wind
energy has emerged as the most attractive so...(more)

Analyzing the Landfill Gas Industry


Published by Aruvian Research in March 2009
With the increasing global focus of energy conservation and stress on clean
generation, Landfill Gas has emerged as a source which is available backdoor, is
proven to be economical in cost perspective and is a growing energy resource in
the modern world. The mounting ad...(more)

Looking at the Potential of Carbon Sequestration


Published by Aruvian Research in March 2009
Zooming levels of CO2 from rapid industrialization have started to emerge now
as more than just statistics on the environmental radar. Atmospheric levels of
CO2 have risen from pre-industrial levels of 280 parts per million (ppm) to
present levels of 375 ppm. The heavy ...(more)

Understanding Biofuels
Published by Aruvian Research in March 2009
The topic of biofuels has drawn increased interest worldwide in the wake of
steeply-climbing fossil fuel prices in 2005-2006. In late 2006/early 2007 prices
began to subside, but are unlikely to return to their former levels. The painful
experience of national economies...(more)

Biofuel Industry in the United States


Published by Aruvian Research in March 2009
Biofuels are liquid, solid, or gaseous fuels derived from renewable biological

© Chiltern Magazine Services Ltd. 2009 www.energy-market-research.info


sources. Biomass can be burned directly for thermal energy or converted to other
high-value energy sources including ethanol, biodiesel, methanol, hydrogen, or
methane. Currently, ethanol fro...(more)

Analyzing Geothermal Energy


Published by Aruvian Research in March 2009
The race for alternative energy sources has begun in the right earnest as
communities and governments realize the unsustainable nature of present day
energy production and consumption practices; an important event in this race
has been the recognition and harnessing of ...(more)

Analyzing Hydropower Energy


Published by Aruvian Research in March 2009
The role of water as a multi-faceted necessity for humans cannot be more
stressed upon since as many adaptive uses that were demanded of it by
civilizations; water has met most of them or in some cases - all. Nature�s most
wonderful resource never ceases to amaze imagin...(more)

Looking at Small Hydropower in Europe


Published by Aruvian Research in March 2009
The role of water as a multi-faceted necessity for humans cannot be more
stressed upon since as many adaptive uses that were demanded of it by
civilizations; water has met most of them or in some cases - all. Nature�s most
wonderful resource never ceases to amaze imagin...(more)

Global Biofuels Industry


Published by Aruvian Research in March 2009
Although biofuels are mainly used to replace or supplement the traditional
petroleum-based transportation fuels, they can also be deployed to generate
heat and electricity. Being an alternative to fossils, biofuels can be applied to
existing vehicles with little or no e...(more)

Analyzing the Global Wind Energy Industry


Published by Aruvian Research in March 2009
In many parts of the world, wind energy has already grown to be a mainstream
energy source. This growth has long been driven by concerns about global
climate change, mainly in the developed world and especially in Europe.Wind
energy has emerged as the most attractive so...(more)

Global Solar Power Industry


Published by Aruvian Research in March 2009
The harnessing of solar energy is not new in fact, development of solar energy
dates back more than 100 years, to the middle of the industrial revolution. Solar
energy is pollution-free, an important benefit when the cost of removing

© Chiltern Magazine Services Ltd. 2009 www.energy-market-research.info


pollutants from the environment is c...(more)

Investment in Renewable Technologies Worldwide


Published by Aruvian Research in March 2009
Renewable energy is energy derived from resources that are regenerative or for
all practical purposes can not be depleted. Renewable energy sources contribute
approximately 29.3% of human energy use worldwide. Mankind's traditional uses
of wind, water, and solar power a...(more)

Analyzing the Wind Power Industry in Finland


Published by Aruvian Research in March 2009
Wind power in Finland was 143 MW with 118 turbines in December 2008. Wind
power is the most popular energy resource among Finnish public: 90 % of Finns
would want further investments in wind energy in September 2007. In April 2005
the value was 88 %. In the Pori area of...(more)

Analyzing the Wind Power Industry in Belgium


Published by Aruvian Research in March 2009
As demand on finite petroleum reserves and the price of the fuels derived from
them continues to rise, renewable forms of energy are becoming more cost-
effective and profitable. In the forefront of this renewable revolution is harnessing
the sustainable power of wind.To...(more)

Analyzing the US Wind Power Industry


Published by Aruvian Research in March 2009
The rise of wind energy is no longer being looked upon as an alternate source of
energy. By the end of the year 2008, 120 gigawatts of wind power capacity were
installed worldwide, after 94 gigawatts by the end of 2007. Already today wind
provides more than 1.5% of the ...(more)

Analyzing the Wind Power Industry in Canada


Published by Aruvian Research in March 2009
In the foreseeable future wind energy is expected to cover a large share of the
electricity needs worldwide: Wind energy is practically inexhaustible as well as
available almost everywhere and wind energy investment is a low-risk
investment. The cost of electricity gene...(more)

Analyzing the European Wind Power Industry


Published by Aruvian Research in March 2009
As demand on finite petroleum reserves and the price of the fuels derived from
them continues to rise, renewable forms of energy are becoming more cost-
effective and profitable. In the forefront of this renewable revolution is harnessing
the sustainable power of wind.To...(more)

Renewable Electricity Capacity Forecasts

© Chiltern Magazine Services Ltd. 2009 www.energy-market-research.info


Published by ABS Energy Research in March 2009
This database contains tables of electricity generating capacity by renewable
sources, shown individually by resource and consolidated into the global total of
1,310 GW in 2009. The database refers to electricity generating capacity, not
primary energy, so it does not i...(more)

Analyzing the North American Wind Power Industry


Published by Aruvian Research in February 2009
The rise of wind energy is no longer being looked upon as an alternate source of
energy. By the end of the year 2008, 120 gigawatts of wind power capacity were
installed worldwide, after 94 gigawatts by the end of 2007. Already today wind
provides more than 1.5% of the ...(more)

The Hydropower Report Ed 2 2009


Published by ABS Energy Research in February 2009
Hydropower is the largest renewable source of electricity. It accounts for 2.2% of
primary energy supply and 16% of electrical generation. The HydroPower report
contains a wealth of the latest available statistics of hydro power and hydro
power plants.This electricity m...(more)

Global Solar Photovoltaics Industry � PEST Framework Analysis


Published by Aruvian Research in January 2009
The solar PV market has been booming over the last years and is forecasted to
confirm this trend in the coming years. By the end of 2007 the global cumulative
capacity exceeded 9 GWp.The harnessing of solar energy is not new in fact,
development of solar energy dates ba...(more)

Analyzing the European Renewable Energy Industry


Published by Aruvian Research in January 2009
Renewable energy effectively uses natural resources such as sunlight, wind,
rain, tides and geothermal heat, which are naturally replenished. Renewable
energy technologies range from solar power, wind power, hydroelectricity/micro
hydro, biomass and biofuels for transpo...(more)

© Chiltern Magazine Services Ltd. 2009 www.energy-market-research.info

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