aiming zhou - recs and adbs clean energy program

8/6/2019 Aiming Zhou - RECs and ADBs Clean Energy Program

1/18

Aiming ZhouEnergy Specialist

Asian Development Bank

6th Asia Clean Energy Forum20-24 June 2011

Manila


2/18

Outline

o Understanding Renewable Energy Certificates

o How do they fit into ADB's Clean Energy

Program?

o What is ADB's RECs initiative?

o Other Clean Energy Program initiatives


3/18

Understanding RECs

o One megawatt hour of electricitygenerated and delivered to the grid from a

qualified renewable energy source

o Sold separately from commodity electricity

o Also known as tradable renewable

certificates (TRCs), green tickets, green

certificates, green tags, renewable energy

credits


4/18

RECs Conceptual Framework

BiomassWind

Solar

Geothermal

Hydro

ElectricityGeneration

Environmental

benefits

Physicalelectricity

RECs

Market

PowerMarket


5/18

Tender Scheme

RenewableEnergy Portfolio

RECs

Feed-in-Tariff

Renewable Energy Policy Framework


6/18

-

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

MW

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Asia Pacific 1,119 1,261 1,426 1,798 2,349 2,916 3,790 5,438 7,889 11,591 17,193 26,446 42,037

Africa 6 10 64 137 137 148 211 234 278 386 469 696 1,014

Middle East 18 18 18 18 18 33 72 101 101 101 101 101 101

Europe & Eurasia 4,812 6,572 9,756 13,650 17,833 23,854 29,325 34,749 41,068 48,651 56,851 65,998 76,581

S. & Cent. America 42 66 95 96 131 140 190 194 195 397 581 977 1,418

North America 1,639 2,226 2,573 2,752 4,462 4,947 6,715 7,197 9,867 13,180 18,810 27,940 38,933

Installed Wind Power Capacity by Region


7/18

-

5,000

10,000

15,000

20,000

25,000

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

MW

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Asia Pacific 115 164 247 383 523 730 972 1,267 1,582 1,930 2,240 2,850 3,763

Rest of World 292 369 487 682 724 787 851 886 924 963 1,043 1,097 1,329

Europe 95 116 143 200 301 421 624 1,283 2,246 3,218 5,012 10,429 16,066North America 103 117 136 160 192 238 304 408 514 664 877 1,223 1,771

Installed Solar PV Power Capacity by Region


8/18

-

2,000

4,000

6,000

8,000

10,000

12,000

1990 1995 2000 2003 20042005

20062007

20082009

MW

1990 1995 2000 2003 2004 2005 2006 2007 2008 2009

Rest of World 1,193 1,532 1,932 2,051 2,047 2,049 2,095 2,131 2,176 2,180

Asia Pacific 1,347 1,774 2,980 3,171 3,169 3,255 3,443 3,490 3,673 3,810

Europe 629 722 1,021 1,107 1,123 1,123 1,260 1,453 1,554 1,634

North America 2,775 2,817 2,228 2,020 2,534 2,653 2,687 2,850 2,911 3,087

Installed Geothermal Power by Region


9/18

Australia4%

People's

Republic

of China

62%

India

26%

Japan

5%

New

Zealand1%

Other

Asia

Pacific2%

Wind

Australia

5%

People's

Republic ofChina

8%India

3%

Japan70%

South

Korea

14%

Malaysia0%

Solar

People's

Republic

China

1%

Indonesia

32%

Japan

14%

Papua

New

Guinea

2%

Philippines

51%

Geothermal

Uneven Deployment of RE Technology


10/18

RECs Around the World


11/18

Why RECs

o Flexibility Domestic and international tradable .

No transmission constrains within physical

electricity transfer

Mandatory Compliance and VoluntaryCommitment

Support small/distributed projects

o Complementary to other RE incentives FITs

Investment tax credit


12/18

Drivers of REC Market Prices

o Mandatory Marketso Supply and demand (RPS target, availability of cost-

effective resources, ability to site new projects, etc.)

o RPS Rules (geographic eligibility, banking, penalties)

o Voluntary Marketso Supply and demand (competition from RPS markets,

consumer demand for local resources)

o Type and location of resourceo New vs. existing

o Volume purchased


13/18

o ADBs First Energy Policy (1981): response tothe oil crisis

o Second Energy Policy (1995): infrastructureinvestment and developing financially robust andefficient sector operations

o Energy Policy Review (2000): reducing poverty,increasing private sector involvement, addressing

environment impacts, promoting regionalcooperation

o Energy Policy 2009: Three Pillars (EE/RE; EfA,Reform/Capacity Bldg/Governance)

RECs in the Context of

ADBs Energy Experience


14/18

ADB Clean Energy Financing

(Target = $2 Billion by 2013)

226 306

757657

668

1,750

1,313

1,756

$ 1 Billion

1,200

1,400

1,600

1,800

$ 2 Billion

-

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

($millions)


15/18

ADBs Composition of CE Financing

(Cumulative 2008-2010, in US$ million)

RenewableEnergy :

3,074

EnergyEfficiency:

1,234

Cleaner Fuel:318

Clean EnergyFunds:

192

Hydro Wind Solar Others

1,674 638 206 556

54.4% 20.8% 6.7% 18.1%

Total Energy-related Investment (2008-2010): $ 9.1 Billion ;Total Clean Energy Investment (2008-2010): $ 4.8 Billion.

Note: Others in the breakdown of RE projects pertains to biomass/biogas, waste to energy


16/18

Green Certificates Initiative in Asian Pacific

o Uneven distribution, development and investment by RE

sources, countries

o In order to increase the flexibility to meet renewable

energy development targets in selected DMCs

o Market assessment

o Legal and regulatory framework

o National and regional trading platform

16


17/18

Pilot Study for a RECs Program in Sri Lanka

o Evaluate policy and technology options -is REC scheme compatible with

financial/fiscal incentive measures

already in place?

o Analyze institutional framework

o Design conceptual framework

o Propose legal & regulatory framework


18/18

Thank You !

Contact

Aiming Zhou, email: [email protected]

More information: www.adb.org/clean-energy
http://www.adb.org/clean-energyhttp://www.adb.org/clean-energyhttp://www.adb.org/clean-energyhttp://www.adb.org/clean-energy

aiming zhou - recs and adbs clean energy program

Documents