While nearly every country in the world saw advancements in sustainable energy policy between 2017 and 2019, the most rapid improvements were in sub-Saharan Africa, according to RISE 2020, a new World Bank report charting global progress on energy policies. But globally policy progress overall is slower than in the past, particularly around renewable energy and energy efficiency.
RISE – Regulatory Indicators for Sustainable Energy – 2020 measures policy progress in 138 countries on renewable energy, energy efficiency, electricity access, and access to clean cooking – the four target areas of Sustainable Development Goal 7 (SDG7), which calls for achieving access to affordable, reliable, sustainable and modern energy for all by 2030.
“We must continue to push forward on the progress made before the pandemic hit. The prospect of a post-pandemic recovery and low carbon growth presents policy makers with opportunities to accelerate adoption of sustainable energy policies, and to quicken the pace toward achieving universal access to energy,” said Makhtar Diop, World Bank Vice President for Infrastructure. “Recovery plans are also opportunities to set longer-term strategies and to align energy policies with SDG7 targets over the next decade.”
According to the report, policy progress from 2017 to 2019 accelerated for access to electricity and clean cooking. Among countries with the highest electricity access deficits, Bangladesh, Ethiopia, Nigeria and Tanzania made the most progress in adopting policies. Policies for mini grids and stand-alone power systems showed the most increase in adoption, reflecting the growing role of distributed energy for electricity access relative to the grid. Ethiopia, Nigeria and Tanzania also advanced in policy on consumer affordability and utility transparency.
When it comes to clean cooking, 2017-2019 saw large gains in Sub-Saharan African countries, notably Benin, Kenya, Nigeria, and Tanzania, although from a low base. That follows notable progress since 2010 in upper- and lower-middle-income countries in Asia (Bangladesh, Cambodia, China, India, Indonesia, Mongolia, and Nepal) and Latin America (Guatemala). While only 15 percent of the clean cooking access-deficit countries have achieved advanced policy frameworks, of these countries China, Ethiopia, India, Indonesia and Kenya represent more than half of the unserved population globally.
Renewable energy policies are converging among higher-, middle-, and lower-income countries, after a decade of rapid advancement across the board. Among the countries covered by RISE, only 37 percent had a national renewable energy target in 2010. By 2019, 99 percent of the world’s countries had either established a comprehensive legal framework for renewable energy or begun to do so. One third of countries worldwide had advanced policy frameworks for renewable energy, putting them in the report’s “green zone”, while 44 percent remained in the “yellow zone”, suggesting room for improvement. While 2017-2019 saw the overall renewable energy gap close between lower-income and higher-income countries, another gap widened: while almost every country adopted policies for renewable energy for electricity, only a third of countries have a clear target or plan for the use of renewable energy in heating and cooling, and only half for renewables in the transport sector.
By 2019, nearly 70 percent of RISE countries had enacted energy efficiency plans. While OECD countries have the most advanced energy efficiency policy frameworks, the fastest improving regions were sub-Saharan Africa and Latin America and the Caribbean, led by Chad and Ecuador, respectively. The heating and cooling sector saw the highest energy efficiency policy scores globally, with approximately 75 percent of surveyed countries having adopted minimum HVAC energy performance standards and labeling measures. Yet improvement is still needed across the income spectrum; for example, some Persian Gulf countries have high income levels but lag in their uptake of efficiency measures.
The COVID-19 pandemic underscores the need for policies and regulations that mitigate the risk of global shocks while also boosting investments in resilient energy systems and encouraging behavioral changes. At the same time, improving sustainable energy policy supports higher employment, particularly around energy efficiency and distributed electrification.
RISE 2020: Sustaining the Momentum is the third edition of the report. The report is published by the World Bank with funding from the Energy Sector Management Assistance Program (ESMAP). The full report, along with detailed country profiles, is available at https://rise.esmap.org/
Renewable electricity growth is accelerating faster than ever worldwide
The growth of the world’s capacity to generate electricity from solar panels, wind turbines and other renewable technologies is on course to accelerate over the coming years, with 2021 expected to set a fresh all-time record for new installations, the IEA says in a new report.
Despite rising costs for key materials used to make solar panels and wind turbines, additions of new renewable power capacity this year are forecast to rise to 290 gigawatts (GW) in 2021, surpassing the previous all-time high set last year, according to the latest edition of the IEA’s annual Renewables Market Report.
By 2026, global renewable electricity capacity is forecast to rise more than 60% from 2020 levels to over 4 800 GW – equivalent to the current total global power capacity of fossil fuels and nuclear combined. Renewables are set to account for almost 95% of the increase in global power capacity through 2026, with solar PV alone providing more than half. The amount of renewable capacity added over the period of 2021 to 2026 is expected to be 50% higher than from 2015 to 2020. This is driven by stronger support from government policies and more ambitious clean energy goals announced before and during the COP26 Climate Change Conference.
“This year’s record renewable electricity additions of 290 gigawatts are yet another sign that a new global energy economy is emerging,” said IEA Executive Director Fatih Birol. “The high commodity and energy prices we are seeing today pose new challenges for the renewable industry, but elevated fossil fuel prices also make renewables even more competitive.”
The growth of renewables is forecast to increase in all regions compared with the 2015-2020 period. China remains the global leader in the volume of capacity additions: it is expected to reach 1200 GW of total wind and solar capacity in 2026 – four years earlier than its current target of 2030. India is set to come top in terms of the rate of growth, doubling new installations compared with 2015-2020. Deployments in Europe and the United States are also on track to speed up significantly from the previous five years. These four markets together account for 80% of renewable capacity expansion worldwide.
“The growth of renewables in India is outstanding, supporting the government’s newly announced goal of reaching 500 GW of renewable power capacity by 2030 and highlighting India’s broader potential to accelerate its clean energy transition,” said Dr Birol. “China continues to demonstrate its clean energy strengths, with the expansion of renewables suggesting the country could well achieve a peak in its CO2 emissions well before 2030.”
Solar PV remains the powerhouse of growth in renewable electricity, with its capacity additions forecast to increase by 17% in 2021 to a new record of almost 160 GW. In the same time frame, onshore wind additions are set to be almost one-quarter higher on average than during the 2015-20 period. Total offshore wind capacity is forecast to more than triple by 2026.
The IEA report expects this record growth for renewables to take place despite today’s high commodity and transport prices. However, should commodity prices remain high through the end of next year, the cost of wind investments would go back up to levels last seen in 2015 and three years of cost reductions for solar PV would be erased.
Despite rising prices limiting growth, global biofuel demand in 2021 is forecast to surpass 2019 levels, rebounding from last year’s huge decline caused by the pandemic. Demand for biofuels is set to grow strongly to 2026, with Asia accounting for almost 30% of new production. India is expected to rise to become the third largest market for ethanol worldwide, behind the United States and Brazil.
Governments can further accelerate the growth of renewables by addressing key barriers, such as permitting and grid integration challenges, social acceptance issues, inconsistent policy approaches, and insufficient remuneration. High financing costs in the developing world are also a major obstacle. In the report’s accelerated case, which assumes some of these hurdles are overcome, average annual renewable capacity additions are one-quarter higher in the period to 2026 than is forecast in the main case.
However, even this faster deployment would still fall well short of what would be needed in a global pathway to net zero emissions by mid-century. That would require renewable power capacity additions over the period 2021-26 to average almost double the rate of the report’s main case. It would also mean growth in biofuels demand averaging four times higher than in the main case, and renewable heat demand almost three times higher.
Energy Efficiency Hub launched to boost cooperation on world’s ‘first fuel’
The Energy Efficiency Hub – a global platform for collaboration aimed at delivering the social, economic and environmental benefits of more efficient use of energy – was launched on 1 December at an event hosted at the International Energy Agency in Paris.
The Hub’s initial 16 members are Argentina, Australia, Brazil, Canada, China, Denmark, the European Commission, France, Germany, Japan, Korea, Luxembourg, Russia, Saudi Arabia, the United Kingdom and the United States.
The Hub aims to facilitate government-to-government exchanges on efficiency policy, regulation and implementation, focusing on topics relevant to real-world challenges faced by its members. The launch event showcased digitalisation, efficient equipment and appliance deployment, best energy efficiency technologies, and energy management best practices as areas of collaboration.
“Hub Members span the globe, from East to West and from North to South, together accounting for over 60% of energy use and carbon dioxide emissions,” said Ulrich Benterbusch, Deputy Director General of the German Federal Ministry of Economic Affairs and Energy, who will serve as Chair of the Hub’s Steering Committee.
“In fact, each Member has significant accomplishments in energy efficiency and understands how urgent it is to work together on it,” he added. “Meeting global challenges requires all countries to do better, and – working in concert with other international organisations – the Hub will strive to share its work more broadly and to learn from others.”
The Hub’s launch follows the previous week’s release of Energy Efficiency 2021, the IEA’s annual market report on the subject, which showed that while global energy efficiency improvements are recovering to their pre-pandemic pace, they are still far short of what is needed to reach net zero emissions by 2050.
“I consider energy efficiency to be the very ‘first fuel’ because it is crucial to address climate change and make our energy supplies more secure while also leaving money in our pockets,” said Fatih Birol, the IEA Executive Director. “I am very pleased to see countries coming together as part of the Energy Efficiency Hub to accelerate efforts in this critical area.”
“Being based at the IEA will enable the Hub to cooperate effectively with IEA experts and the other key initiatives and activities we host, including the Clean Energy Ministerial,” said Dr Birol. “The launch of the Hub is a clear and encouraging signal that momentum is building behind greater energy efficiency action worldwide.”
Brian Motherway, Head of Energy Efficiency at the IEA, said: “Governments need to work much harder if they are to deliver the full potential of energy efficiency and get their energy systems onto a pathway towards net zero. The Hub is an important instrument for countries to learn from each other and work together to strengthen their efficiency policies.”
Colombia’s energy districts: an example for the region
An energy district is a local institution that leads, implements and accelerates a locally-owned, inclusive and clean energy transition. In the process, energy districts create local jobs and retain and grow wealth, while simultaneously reducing carbon emissions and air pollution.
Colombia is a pioneer South American country in the promotion of this approach. Beginning in 2013, the United Nations Industrial Development Organization (UNIDO), together with Switzerland’s State Secretariat for Economic Affairs (SECO), has been implementing an energy districts project in cooperation with the Ministry of Environment and Sustainable Development (Minambiente) and the public utility of the city of Medellín (Empresas Publicas de Medellín – EPM).
In its second phase, beginning in 2019, the project has been working closely with national and city-level authorities and stakeholders to improve and implement national and sub-national policy and regulatory frameworks to promote further development of energy districts; reinforce knowledge and capacities for energy districts of all market players; and provide technical assistance to some 10 selected cities so that they can include energy districts in their urban planning and support the realization of two-three near-future mature projects.
From the 17-19 November, the UNIDO project and partners, ACAIRE (Colombian Association for Refrigeration and Air Conditioning) and CIDARE, the Centre of Research and Development in Air Conditioning and Refrigeration hosted the Third International Conference for Energy Districts, a virtual event bringing together national and international experts from industry and academia, and representatives from the public sector and international organizations.
Carlos Eduardo Correa, Colombia’sMinister of Environment and Sustainable Development, stated that the conference was the ideal scenario to show the achievements of the country in the implementation of district energy as a contribution to the Sustainable Development Goals.
“All of our actions, plans, projects and regulations, are geared towards the achievements of the Nationally Determined Contributions, the reduction of greenhouse gas emissions, and, at the same time, the contribution of low-carbon development. Here, Colombia has an important experience and is an example for the region,” he stated.
The progress of district energy in Colombia and the region, the importance of their implementation in urban planning, energy maps and clean energy transition, the mechanisms to finance these projects and the use of renewable energies in their execution, were some of the main topics addressed by more than 30 national and international speakers during the three days of discussions.
“The implementation of the project has, as a main component, the sustainability of knowledge and capacities in Colombia. That is why the support and work with academia are fundamental to strengthen the capacities of all the actors in the value chain and promote the education of professionals in the areas of sustainability and energy efficiency, among others,” noted Alex Saer, Director of Climate Change and Risk Management at the Ministry of Environment and Sustainable Development.
The conference was also the opportunity to celebrate the awards of the Second Competition for Universities in District Energy, with the objective of designing a business model for the sale of thermal energy applied to residential users.
The contest, which had the participation of eight universities from Colombia, awarded the first-place winner team with fully funded attendance to the International District Energy Association Campus Energy in Boston in February 2022.
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