Activities of the Working Party on Renewable Energy Technologies Martin Schöpe, REWP Chair Lisbon 10 Oct 2017
Contents The rapidly changing RE market landscape Highlights from the IEA Renewables 2017 Report REWP Activity Scope Incl. highlights of TCP activities Collaboration with IRENA / REN21 1
Competition driving costs down Announced wind and solar PV average auction prices by commissioning date USD/MWh 180 160 140 120 Onshore wind average auction price 100 80 60 40 Solar PV average auction price 20 0 2012 2013 2014 2015 2016 2017 2018 2019 2020 Price discovery through competitive auctions effectively reduces costs along the entire value chain; Auctions with long-term contracts will drive almost half of new capacity growth over 2017-22
Cost competitiveness in many countries With competitive costs for wind and solar compared to traditional power generation, modern renewables are being deployed in developed and developing countries
Renewables growth more and more dependent on wind and solar Capacity growth (GW) Renewable electricity capacity growth by technology 1 200 1 000 90% 80% 70% Additional - accelearated case Other renewables 800 60% Hydropower 600 50% 40% Solar PV 400 200 0 1999-2004 2005-10 2011-16 2017-22 30% 20% 10% 0% Wind % from wind and solar PV (right axis) Solar PV enters a new era, becoming the undisputed leader in renewable power capacity growth; PV also accounts for 60% of the upside potential in the accelerated case
Wind and solar transforming power sector system integration becomes key Denmark Ireland Spain Germany United Kingdom Portugal Italy Australia United States China India Brazil Japan VRE share in annual electricity generation 2016-22 0% 10% 20% 30% 40% 50% 60% 70% 80% % of total generation PV share in 2016 Wind share in 2016 Additional PV share in 2022 Additional wind share in 2022 More flexible power systems, adapted market design and policies will have to play a key role in integrating larger shares of wind and solar in a secure and cost-effective way
Surging EVs to complement biofuels in renewable transport Biofuels and electric vehicles contribution to renewable energy consumption in road transport 2016 2022 4% Biofuels 7% EV 2/3 wheelers Electrc cars and buses Share of renewables in road transport increases from 4% in 2016 to almost 5% in 2022, with biofuels representing 80% of the growth led by Asia & Brazil; EV electricity consumption doubles by 2022, with renewables providing 30% of demand
Progress in renewable heat depends on strong policies Share of renewables in heat consumption by selected countries % of renewables 25% 20% European Union 15% USA 10% India 5% China 0% 2010 2012 2014 2016 2018 2020 2022 Renewables share in heat consumption rises from 9% in 2016 to 11% in 2022. China leads absolute growth with new targets; EU remains the largest renewable heat consumer while total heat demand outpaces renewables growth in India
Aligning RE & EE Policies Germany s Green Paper on Energy Efficiency & Power Markets include 3 pillars: Reducing demand in all sectors Energy Efficiency First Better understanding and reducing demand to reduce the overall cost of supplying clean energy. Increasing the direct use of renewable energy, Such as solar thermal, geothermal, waste heat and bioenergy for heating, building air-conditioning and hot water Then optimal use of renewables in electricity, heat and transport, through electrification and sector coupling Electrification of the whole energy system will ensure excess power generation is captured through sector coupling Power to X (liquids, gas, )
REWP Overview/Guidance Functions Renewable Energy Working Party Technology Collaboration Programmes IEA Renewable Energy Division Renewable Industry Advisory Board REWP overviews and provides guidance to RED, TCPs and RIAB TCPs and RIAB inform and support both REWP and RED
IEA/IRENA Joint Policies and Measures Database for Renewable Energy Constantly growing global source of information on renewable energy policies This map is without prejudice to the status of or sovereignty over any territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area. Global scope: 141 countries reported Almost 2000 policy records Historical and current policies Electricity, transport, heating & cooling sectors Searchable by policy type and technology Country member reviews: Biannual IEA country review calls Annual IRENA country review call 10
Concluding Remarks Focus Areas Further Drivers for Energy Transition Decarbonisation/Paris Agreement Digitalisation Electricity, transport and heat sector coupling including stronger electrification scenarios Holistic approach on renewables System integration Aligning renewable energy and energy efficiency Deeper International cooperation Association and Accession Countries (e.g. India, Mexico) 11
RIAB (Renewable Industry Advisory Board) Yearly meetings including: One Annual meeting in Paris One-two special events during global conferences (e.g. IREC, WFES) Input and review to IEA Renewable Energy Market Report Active participation in IEA events (e.g. annual REWP workshops) Contributions to various IEA outreach initiatives Support to market data acquisition (e.g. respond to IEA s questionnaire on RE technology cost data) 12
Chair of IEA PVPS TCP honoured in Amsterdam Dr. Stefan Nowak was awarded the European Becquerel Prize for Outstanding Merits in Photovoltaics on Monday, 25 September at the EU PV Conference in Amsterdam. Dr. Nowak is well recognized for his longstanding commitment to the promotion of European and global cooperation on PV research, market assessment and deployment. In particular, the prize also rewards Dr. Nowak s long-lasting activities as Chair of PVPS TCP since 2001. 13