Mandatory renewable energy target explained

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

See also: Renewable energy commercialization. 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

Australia

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. 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

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 36e9USgal of biofuel produced annually by 2022. Of that, 21e9USgal shall be advanced biofuels (derived from feedstock other than corn starch). Of the 21e9USgal, 16 billion shall come from cellulosic ethanol. The remaining 5e9USgal 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

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

Overview

RegionCurrent shareTargetYearMandatoryNotes
World33.3% global capacity[18] 26% global power generation[19] N/A, varies by country
EU-2514%21%2020
20% in 2020 17.5% in 201735%[20] 2030

European countries

CountryCurrent share %TargetTarget yearMandatoryNotes
34.9%38%2030Targets are for primary energy consumption. 95% of electrical energy is produced from renewables (mainly hydropower).[21]
33.5%[22] 78%
16%[23] Belgian energy and climate plan proposes renewables target of 18.3% by 2030[24]
18.7%27%[25] 2030
14.8%
27.3%
9.9%
35%[26] 100%[27] 2035
30%[28] The share of renewable energy will account for 50% of final consumption of domestic electricity and 80% of the heat generated2030
41%[29] Finland will go carbon neutral[30] 2035
23%40% by 2030[31] 33% of its energy from renewable sources by 2030[32] 2030Renewables can regularly cover 25% of France's summer electricity needs, grid operator RTE said on Wednesday.[33]
47%[34] 40-45% of total electricity consumption2025
16.3%35%2030
13.3%
10.7%70%[35] 2030
18.3%25%
39%Latvia is proposed to set a 45% RES target for 20302030
27.9%[36] 38% by 2025[37] 45% by 2030 and around 80% by 2050
100%
100%
6.4%
7.2%
6.6%
14%[38]
58%80%2026[39]
24.5%
11.5%31%
21.5%
17.5%100%[40] 2050
54.5%100%[41] 2040
60%[42] 100%2050
40%[43] 100%[44] 2050

Other countries

CountryCurrent shareTargetTarget yearMandatoryNotes
2%[45] 20%2025
23.5%[46] 23.5% by 2020 predicted to produce 35% by 2021[47] projected to produce 50% renewable energy by 2030[48] 2030
50%
67%[49] Carbon neutral by 2050[50] 2050Canada 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.
17.6% (2019)20%2025[52]
70%2030
12%[53] 201535%[54] 2030
10%20%2020
70%2030[55]
70%[56]
21.4%[57] 40% by 2030 and 500GW by 20302030
4%15% (inc. nuclear)2025
0%5%2016
0.4%1.63%2014
3%2020Targets refer to electrical energy generation. Kazakhstan has a 2060 carbon neutrality target.[58] [59]
30%2030
50%2050
35% (electrical)2025[60]
25% (primary energy supply)
26%35% by 2024 and 50% by 2050[61] 2024
10%20%2012
80%100%[62] 2035
7%2025
16%2025[63]
30%2030
10%2015
100% increase from 20052015
2.5%2024
26%[64] 2030
6.08%2020
6%12%2020
7%20%2022
50%2050[65]
23%[66] 100%2035Proposed and promised by US president Joe Biden.
5%2020

See also

Notes and References

  1. http://www.worldwatch.org/files/pdf/renewables2007.pdf at page 22 retrieved 150508
  2. [International Energy Agency]
  3. [REN21]
  4. http://orer.gov.au/publications/mret-overview.html Office of the Renewable Energy Regulator: "Mandatory Renewable Energy Target"
  5. http://www.orer.gov.au/legislation/index.html Australian Government: Office of the Renewable Energy Regulator
  6. http://www.themonthly.com.au/renewable-energy-comment-guy-pearse-2988 Guy Pearse: Renewable Energy
  7. Renewable Energy (Electricity) Amendment Bill 2015
  8. Web site: Renewable Energy Target - History of the scheme . www.cleanenergyregulator.gov.au. 30 November 2016. 2016-07-26.
  9. Web site: State Renewable Portfolio Standards and Goals. 2021-11-22. www.ncsl.org.
  10. Energy Independence and Security Act of 2007, P.L. 110-140
  11. Renewables 2007 Global Status Report, http://www.worldwatch.org/files/pdf/renewables2007.pdf
  12. Web site: Renewable energy Energy. ec.europa.eu. en. 2019-09-01.
  13. News: EU raises renewable energy targets to 32% by 2030. Vaughan. Adam. 2018-06-14. The Guardian. 2019-09-01. en-GB. 0261-3077.
  14. Web site: NAFTA leaders target 50% renewable energy sources by 2025 DW 29.06.2016. DW.COM. en-GB. 2020-01-08.
  15. News: Latin America pledges 70% renewable energy, surpassing EU: Colombia minister. 2019-09-25. Reuters. 2020-01-08. en.
  16. Web site: ECOWAS Centre for Renewable Energy and Energy Efficiency(ECREEE) Economic Community of West African States(ECOWAS). en-US. 2020-01-08. 2022-11-18. https://web.archive.org/web/20221118080332/http://www.ecowas.int/specialized-agencies/ecowas-centre-for-renewable-energy-and-energy-efficiencyecreee/. dead.
  17. Web site: African Union Introduces $20 Billion Renewable Energy Plan – Inspired Evolution. en-US. 2020-01-08.
  18. Web site: Renewable energy now accounts for a third of global power capacity. 2019-04-03. RenewEconomy. en-AU. 2019-09-01.
  19. Web site: Renewable capacity set for 50% growth over next few years, IEA says. Frangoul. Anmar. 2019-10-21. CNBC. en. 2020-01-08.
  20. Web site: European Parliament approves 35% renewables target. Richard. Craig. www.windpowermonthly.com. 2020-01-08.
  21. Web site: 7–8 October 2019. Renewable Energy Deployment 10th International Forum on Energy for Sustainable Development (IFESD), 7-8 October 2019, UN Conference Centre, Bangkok, Thailand. 2021-03-27. United Nations Economic Commission for Europe.
  22. Web site: Scotland produced a record amount of renewable energy last year. World Economic Forum. 2019-09-01.
  23. Web site: Belgian clean power output grows 17%. Ltd. Renews. 2020-01-08. reNEWS - Renewable Energy News. en-US. 2020-01-08.
  24. Web site: Belgian energy and climate plan proposes renewables target of 18.3% by 2030. - Google Search. www.google.com. 2020-01-09.
  25. Web site: Simon. Frédéric. 2019-09-24. Three EU countries bump up renewable energy goal for 2030. 2020-01-08. www.euractiv.com. en-GB.
  26. Web site: Denmark Will Invest in Ukraine's Renewable Energy Sector – IB Centre Insights. en-GB. 2019-09-01.
  27. Web site: Denmark, The Little Country With Big Renewable Energy Goals. 2016-03-09. CleanTechnica. en-US. 2019-09-01.
  28. Web site: OVERVIEW - Baltics clear 2020 renewable energy targets, upbeat on 2030 green commitments. Renewablesnow.com. en. 2019-09-01.
  29. Web site: Shedding light on energy on the EU: What is the share of renewable energy in the EU?. Shedding light on energy on the EU. en. 2019-09-01.
  30. Web site: Finland to be carbon neutral by 2035. One of the fastest targets ever set. 2019-06-03. Climate Home News. en. 2019-09-01.
  31. Web site: France to boost wind, solar to 40% of 2030 energy mix, cut nuclear Eco News. Twomey. David. en-US. 2020-01-08.
  32. Web site: Three EU countries bump up renewable energy goal for 2030. Simon. Frédéric. 2019-09-24. www.euractiv.com. en-GB. 2020-01-08.
  33. News: France among members putting EU 2020 renewables target at risk. 2019-06-06. Reuters. 2019-09-02. en.
  34. Web site: Germany renewable energy share jumps to record 47% for first five months of year. Parkinson. Giles. 2019-06-03. RenewEconomy. en-AU. 2019-09-01.
  35. Web site: Ireland unveils plan for 70 per cent renewable energy by 2030. 2019-12-03. RenewEconomy. en-AU. 2020-01-08.
  36. Web site: Energetikos statistika 2016 m.. osp.stat.gov.lt. lt-LT. 2019-09-01.
  37. Web site: EU approves €385 million renewable energy scheme for Lithuania. www.hydroworld.com. 2019-09-01.
  38. Web site: Coal-Heavy Poland Moves to Renewables, Finally. Deign. Jason. 2018-07-06. www.greentechmedia.com. 2019-09-02.
  39. Web site: 2022-04-04 . Portugal targets 80% renewable power generation by 2026 . 2022-11-24 . www.enerdata.net . en.
  40. Web site: Spain sets out plan for 100% renewable electricity by 2050. 2018-11-13. The Independent. en. 2020-01-08.
  41. Web site: Sweden to reach its 2030 renewable energy target this year. World Economic Forum. 2019-09-01.
  42. Web site: Switzerland commits to 2050 climate target - World Nuclear News. 2020-01-08. world-nuclear-news.org.
  43. News: Renewable electricity overtakes fossil fuels in UK for first time. Ambrose. Jillian. 2019-10-13. The Guardian. 2020-01-08. en-GB. 0261-3077.
  44. Web site: UK becomes first major economy to pass net zero emissions law. GOV.UK. en. 2020-01-08.
  45. Web site: Argentina taps its renewable energy potential. World Bank. en. 2019-09-21. 2019-09-21. https://web.archive.org/web/20190921002020/https://projects-beta.worldbank.org/en/results/2018/02/15/argentina-taps-its-renewable-energy-potential. dead.
  46. Web site: Australia has met its renewable energy target. But don't pop the champagne. 2019-09-08. RenewEconomy. en-AU. 2019-09-09.
  47. News: Clean energy set to provide 35% of Australia's electricity within two years. Morton. Adam . 2019-07-30. The Guardian. 2020-01-08. en-GB. 0261-3077.
  48. News: Australia to achieve 50% renewables by 2030 without government intervention, analysis finds. Karp. Paul. 2019-05-28. The Guardian. 2020-01-08. en-GB. 0261-3077.
  49. Web site: electricity-facts. Canada. Natural Resources. 2017-10-06. www.nrcan.gc.ca. 2020-02-11. 2023-03-24. https://web.archive.org/web/20230324215907/https://www.nrcan.gc.ca/science-data/data-analysis/energy-data-analysis/energy-facts/electricity-facts/20068. dead.
  50. Web site: Justin Trudeau's narrow victory lays path for net zero carbon Canada. 2019-10-22. Climate Home News. en. 2020-01-08.
  51. Web site: Powering our future with clean electricity. Canada. Environment and Climate Change. 2016-11-24. aem. 2020-02-11.
  52. Web site: 2019-04-11. Chile aims to beat its own renewable energy targets. 2021-02-14. BNamericas.
  53. Web site: China's renewable energy surges after state backing. Nikkei Asian Review. en-GB. 2019-09-21.
  54. Web site: China Sets New Renewables Target of 35 Percent by 2030. 2018-09-26. Renewable Energy World. en-US. 2020-01-08.
  55. Web site: September 2015. Eritrea's Intended Nationally Determined Contributions (INDCs) Report. 2021-02-27. UNFCCC. 7.
  56. Web site: WWF. Clean, green energy for Greenland - Thin Ice Blog. 2020-01-09. Thin Ice Blog - WWF. en.
  57. Web site: India ups renewable energy target to 500GW by 2030. 2019-06-27. Institute for Energy Economics & Financial Analysis. en-US. 2020-01-08. 2022-08-28. https://web.archive.org/web/20220828214738/https://ieefa.org/india-ups-renewable-energy-target-to-500gw-by-2030/. dead.
  58. Web site: rek.pdf. 2021-02-14. European Bank for Reconstruction and Development.
  59. News: Satubaldina. Assel. 2020-12-15. Tokayev Announces Kazakhstan's Pledge to Reach Carbon Neutrality by 2060. The Astana Times. 2020-12-29.
  60. News: Jalil. Asila. 2020-11-20. Asean ministers set 35% target on renewable energy. The Malaysian Reserve.
  61. Web site: Mexico - Q. Renewable Energy export.gov. www.export.gov. en. 2019-09-01.
  62. Web site: New Zealand aims to transition to 100% renewables by 2035. 2020-01-08. Futurism. en.
  63. Web site: 2019-03-19. Oman targets 30% renewable energy share by 2030 REVE News of the wind sector in Spain and in the world. 2021-02-14. en-US.
  64. Web site: South Africa announces 2030 renewable energy goals. 2020-01-09. www.energydigital.com. en.
  65. Web site: UAE eyes 50% power generation from renewables by 2050 in new clean energy target. 2020-01-08. Utilities Middle East. en.
  66. Web site: For the first time ever renewables beat coal in the US. . 2020-01-09. en-US.

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