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Mandatory renewable energy target

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Mandatory renewable energy targets are part of government legislated schemes which require electricity merchandisers to source-specific amounts of aggregate electricity sales from renewable energy sources according to a fixed time frame. The objective of these schemes is to promote renewable energy and decrease dependency on fossil fuels. If this results in an additional expenditure of electricity, the additional cost is distributed across most customers by increases in other tariffs. The cost of this measure is therefore not funded by the government budgets, except for costs of establishing and monitoring the scheme and any audit and enforcement actions. As the cost of renewable energy has become cheaper than other sources, meeting and exceeding a renewable energy target will also reduce the expenditure of electricity to consumers.

At least 67 countries have renewable energy policy targets of some kind. In Europe, 28 European Union members states and 8 Energy Community Contracting Parties have legally binding renewable energy targets. The EU baseline target is 20% by 2020, while the United States also has a national RET of 20%. Similarly, Canada has 9 provincial RETs but no national target for renewable energy (although it does have a 2030 non-emitting target and coal phase-out by 2030). Targets are typically for shares of electricity production, but some are defined as by primary energy supply, installed capacity, or otherwise. While some targets are based on 2010-2012 data, many are now for 2020, which bonds in with the IPCC suggested greenhouse gas emission cuts of 25 to 40% by Annex I countries by 2020, although some are for 2025.[1]

Overview

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See also: Renewable energy commercialization
The wind, sunlight, and biomass are three renewable energy sources

Renewable energy technologies are essential contributors to the energy supply portfolio, as they contribute to world energy security, reduce dependency on fossil fuels, and provide opportunities for mitigating greenhouse gases.[2] The International Energy Agency has defined three generations of renewable energy technologies, reaching back over 100 years:

First-generation technologies are well established. However, second-generation technologies and third-generation technologies depend on further promotion by the public sector.[2] The introduction of mandatory renewable energy targets is one important way in which governments can encourage the wider use of renewables.

Renewable energy targets exist in at least 66 countries around the world, including the 27 European Union countries, 29 U.S. states, and 9 Canadian provinces. Most targets are for shares of electricity production, primary energy, and/or final energy for a future year. Most targets aim for the 2010–2012 timeframe, although an increasing number of targets aim for 2020, and there is now an EU-wide target of 20% of final energy by 2020, and a Chinese target of 15% of primary energy by 2020.[3]

Targets by country

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Australia

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See also: Energy policy of Australia § Renewable energy targets

In 2001, the federal government introduced a Mandatory Renewable Energy Target (MRET) of 9,500 GWh of new generation, with the scheme running until at least 2020.[4] This represents an increase of new renewable electricity generation of about 4% of Australia's total electricity generation and a doubling of renewable generation from 1997 levels. Australia's renewable energy target does not cover heating or transport energy like Europe's or China's, Australia's target is therefore equivalent of approximately 5% of all energy from renewable sources.

An Expanded Renewable Energy Target was passed on 20 August 2009, to ensure that renewable energy obtains a 20% share of electricity supply in Australia by 2020. To ensure this, the Labor government committed that the MRET will increase from 9,500 gigawatt-hours to 45,000 gigawatt-hours by 2020. The scheme was to continue until 2030.[5] After 2020, the proposed Emissions Trading Scheme and improved efficiencies from innovation and manufacture was expected to allow the MRET to be phased out by 2030.[citation needed] The target was criticised as unambitious and ineffective in reducing Australia's fossil fuel dependency, as it only applied to generated electricity, but not to the 77% of energy production exported, nor to energy sources which are not used for electricity generation, such as the oil used in transportation. Thus 20% renewable energy in electricity generation would represent less than 2% of total energy production in Australia.[6]

In 2011 the 'expanded MRET' was split into two schemes: a Large-scale Renewable Energy Target (LRET) of 41,000 GWh for utility-scale renewable generators, and an uncapped Small-scale Renewable Energy Scheme for small household and commercial-scale generators. Following the 2014 Warburton Review initiated by the Abbott government, and subsequent negotiations with the Labor Opposition, in June 2015 the LRET target was reduced to 33,000 GWh.[7][8]

United States

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See also: Renewable portfolio standards in the United States

As of July 2010, 30 US states and DC have established mandatory renewable energy targets, and a further three have voluntary targets.[9] The Energy Independence and Security Act of 2007 has set a target for 36 billion US gallons (140,000,000 m3) of biofuel produced annually by 2022. Of that, 21 billion US gallons (79,000,000 m3) shall be advanced biofuels (derived from feedstock other than corn starch). Of the 21 billion US gallons (79,000,000 m3), 16 billion shall come from cellulosic ethanol. The remaining 5 billion US gallons (19,000,000 m3) shall come from biomass-based diesel and other advanced biofuels.[10] For sources other than biofuels, The United States carries no mandatory renewable energy targets although they do support the growth of renewable energy industries with subsidies, feed-in tariffs, tax exemptions, and other financial support measures.[11]

Renewable energy targets by region

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The European Union (EU) has a renewable energy target of 20% renewables target by 2020.[12] This is followed by a more ambitious target of 35% renewable energy by 2030.[13]

NAFTA (US, Canada and Mexico) has a 50% renewable energy sources target by 2025 in North America.[14]

Latin America pledged 70% renewable energy by 2030.[15]

The West African States (ECOWAS) aim for 38% renewable energy by 2030 achieved through the creation of 20GW of solar.[16] The African Union also aims for a minimum of 10GW of renewable energy on the continent by 2030.[17]

Table of renewable energy and targets

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Overview

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Region Current share Target Year Mandatory Notes
World 33.3% global capacity[18] 26% global power generation[19] N/A, varies by country
EU-25 14% 21% 2020
 EU 20% in 2020[12] 17.5% in 2017[20] 35%[21] 2030[13]

European countries

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Country Current share % Target Target year Mandatory Notes Ref
 Albania 34.9% 38% 2030 Targets are for primary energy consumption. 95% of electrical energy is produced from renewables (mainly hydropower). [22]
 Austria 33.5%[23] 78%
 Belgium 16%[24] Belgian energy and climate plan proposes renewables target of 18.3% by 2030[25]
 Bulgaria 18.7%[citation needed] 27%[26] 2030
 Czech Republic 14.8%[citation needed]
 Croatia 27.3%[citation needed]
 Cyprus 9.9%[citation needed]
 Denmark 35%[27] 100%[28] 2035
 Estonia 30%[29] The share of renewable energy will account for 50% of final consumption of domestic electricity and 80% of the heat generated[29] 2030
 Finland 41%[20] Finland will go carbon neutral[30] 2035
 France 23% 40% by 2030[31] 33% of its energy from renewable sources by 2030[32] 2030 Renewables can regularly cover 25% of France's summer electricity needs, grid operator RTE said on Wednesday.[33]
 Germany 47%[34] 40-45% of total electricity consumption[34] 2025
 Greece 16.3%[citation needed] 35%[32] 2030
 Hungary 13.3%[citation needed]
 Ireland 10.7%[citation needed] 70%[35] 2030
 Italy 18.3%[citation needed] 25%
 Latvia 39%[20] Latvia is proposed to set a 45% RES target for 2030[29] 2030
 Lithuania 27.9%[36] 38% by 2025[37] 45% by 2030 and around 80% by 2050[29]
 Norway 100%
 Iceland 100%
 Luxembourg 6.4%[20]
 Malta 7.2%[20]
 Netherlands 6.6%[20]
 Poland 14%[38]
 Portugal 58% 80% 2026 [39]
 Romania 24.5%[citation needed]
 Slovakia 11.5%[citation needed] 31%
 Slovenia 21.5%[citation needed]
 Spain 17.5%[citation needed] 100%[40] 2050
 Sweden 54.5%[20] 100%[41] 2040
  Switzerland 60%[42] 100%[42] 2050
 United Kingdom 40%[43] 100%[44] 2050

Other countries

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Country Current share Target Target year Mandatory Notes Ref
 Argentina 2%[45] 20%[45] 2025
 Australia 23.5%[46] 23.5% by 2020[46] predicted to produce 35% by 2021[47] projected to produce 50% renewable energy by 2030[48] 2030
 Brazil 50%
 Canada 67%[49] Carbon neutral by 2050[50] 2050 Canada aims to generate 90% of its electrical energy from non-emitting sources by 2030.[51] Already, it generates 82% from non-emitting sources with 67% of electrical energy production being from renewables.[49]
 Chile 17.6% (2019) 20% 2025 [52]
70% 2030
 China 12%[53] 2015 35%[54] 2030
 Egypt 10% 20% 2020
 Eritrea 70% 2030 [55]
 Greenland 70%[56]
 India 21.4%[57] 40% by 2030 and 500GW by 2030[57] 2030
 Indonesia 4% 15% (inc. nuclear) 2025
 Israel 0% 5% 2016
 Japan 0.4% 1.63% 2014
 Kazakhstan 3% 2020 Targets refer to electrical energy generation. Kazakhstan has a 2060 carbon neutrality target. [58][59]
30% 2030
50% 2050
 Malaysia 35% (electrical) 2025 [60]
25% (primary energy supply)
 Mexico 26%[14] 35% by 2024 and 50% by 2050[61] 2024
 Morocco 10% 20% 2012
 New Zealand 80% 100%[62] 2035
 Nigeria 7% 2025
 Oman 16% 2025 [63]
30% 2030
 Pakistan 10% 2015
 Philippines 100% increase from 2005 2015
 Russia 2.5% 2024
 South Africa 26%[64] 2030
 South Korea 6.08% 2020
 Taiwan 6% 12% 2020
 Thailand 7% 20% 2022
 UAE 50% 2050 [65]
 United States 23%[66] 100% 2035 Proposed and promised by US president Joe Biden.
 Vietnam 5% 2020

See also

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References

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