[The Vector] Progress Report on Renewable Energy Released from the IEA

The International Energy Agency (IEA) has recently released its “Clean Energy Progress Report.”  The IEA is an autonomous agency established in November 1974 with the mandate to promote energy security amongst its member countries through collective response to physical disruptions in oil supply, and provide authoritative research and analysis for reliable and affordable clean energy.

The report is both optimistic and pessimistic — as well as cautionary in tone. The past decade has seen the dramatic rise in renewable energy worldwide, led by wind and solar. Major car companies are adding electric and hybrid vehicles to their lines and promoting them. Public investment in research and development is strong. Energy efficiency is improving in many western countries, says the report, after recent modest gains. A growth in renewables producing electricity is clear in many areas.  Unfortunately, says the report, not all is good.

The growth of fossil fuels, including coal, has matched or outpaced the growth of renewable energy. The report is extensive but main points include:

• Fossil fuel subsidies that are worth more than $312 billion should be realigned with renewable energy to ensure its needed growth. Coal has been the fastest growing global energy source worldwide, meeting 47% of new electricity demand. Coal is dirty and undermines efforts in the clean arena.
• In the case of solar energy, at least ten countries now have sizeable domestic markets thanks to market‐creating policies that led to an extraordinary decline in the cost of PV modules.
• Wind power also experienced dramatic growth over the last decade; global installed capacity at the end of 2010 was around 194 GW, up from 17 GW at the end of the year 2000.
• Though solar PV and wind power have been achieving strong growth, to meet the goals for 2020, a doubling of efforts is needed. There are worrying signs that some governments may eliminate successful policies just at a time when they are needed most.
• Biofuels are growing but only represent about 3% of global road transport fuel. The report says sound policies are needed to dramatically increase biofuel production and meet targets.
• Electric vehicles are on the verge exploding. The report reveals that major economies have announced targets that together could reach about 7 million vehicle sales per year by 2020. If achieved, this will result in over 20 million electric vehicles on the road by that year.
• Nuclear capacity has remained nearly flat for the past decade, but some countries are currently constructing 66 nuclear reactors that could add 60 Gigawatts by 2015. However, the recent earthquake in Japan and resulting catastrophe have led countries to review nuclear safety and investments, and it may slowdown.

“A number of countries have shown that achieving rapid transition to cleaner technologies is possible and can be done from the bottom up,” said IEA deputy executive director Richard Jones in a press releae.

… to be contuned…