Fossil fuel independence: Renewables rising around the globe
October 7, 2015 | By
Barbara Vergetis Lundin
From Denmark to Japan, renewables are on the rise across the globe, according to research and consulting firm GlobalData.
In Denmark, for example, more than half the total power generation will come from renewables like wind and solar by 2020, GlobalData predicts, as Denmark aims for renewables to become its main source of power by 2030. The government's target is 35 percent of the total supply from renewables by 2020. "GlobalData's analysis indicates that Denmark is expected to achieve its target, with renewables contributing 66 percent of the country's annual power generation in 2020 and more than 75 percent in 2025," said Chiradeep Chatterjee, GlobalData senior power analyst. "Wind power will continue to account for the majority of the country's power generation, with 44.8 percent of the overall share forecast for 2020." Further, GlobalData expects offshore wind will register even higher growth than onshore wind, reaching an 18 percent share of generation by the end of 2025, driven by an increasing government focus on offshore wind. "The Danish government's objective is to increase the share of green sources in its energy mix, and gradually become independent from fossil fuels, by increasing the share of renewable energy to 100 percent by 2050, as stated in the Energy Policy Report of 2012," Chatterjee said. "In the same year, the government announced a new ambitious target for the achievement of a 50 percent share of power consumption from wind power by 2020." However, Denmark's increasing reliance on wind means the country must ensure adequate backup resources in the event that wind is unable to provide baseload capacity. "Without backup in the form of interconnections with the Nordic power pool, Denmark could face widespread blackouts," Chatterjee explained. "For this reason, large-scale interconnectivity to neighboring countries, such as Germany and Norway, will have to be established." Japan is predicted to have an even higher share of renewable resources. According to GlobalData, while thermal sources will contribute the majority of installed capacity with an expected overall share of 54.7 percent, other renewable sources will more than double by the end of the forecast period -- increasing from 37.8 GW in 2015 to 83.3 GW by 2025 and representing the largest growth in Japan's energy sector. "Despite the new Japanese government's rethink on the decision to phase out nuclear power after the Fukushima disaster, there is still a focus on promoting renewable power, not only to reduce reliance on the nuclear sector but also to tackle the huge cost of importing natural gas and oil," Chatterjee said. "A new feed-in tariff system introduced in July 2012 will drive renewable installed capacity growth, as utility companies must purchase power from renewable energy sources, including solar, wind, small hydro, geothermal and biomass, at pre-set premiums for up to 20 years." Consequently, higher rates for renewable power are being passed on in the form of inflated power bills, which adds extra burden to the consumer. For more: © 2015 FierceMarkets, a division of Questex, LLC. All rights reserved. http://www.smartgridnews.com/story/fossil-fuel-independence-renewables-rising-around-globe/2015-10-07 |