The International Resource Journal: Renewables 2009 Conference Renewables 2009 Conference ================================================================================ admin on 06 August, 2009 01:36:00 On July 8 and 9 The International Energy Agency (IEA) and Marketforce staged the Renewables 2009 Conference in London. The IEA represents the interests of 28 member countries including, but not limited to The United States, Japan, Canada, Australia, Spain, Denmark, Ireland, The United Kingdom and beyond. They also work in partnership with The European Commission. All of the participating countries are also members of the Organisation for Economic Co-operation and Development (OECD) to which the IEA is autonomously linked. Proceedings kicked off with a keynote opening address by Chris Barton, Acting Head of Renewable Energy from the Department of Energy and Climate Change. He identified the base reasons behind efforts to bring about heightened Renewable Energy Strategy in the UK governmental policy leading up to 2020. Barton split up the focuses - as following speakers would hone in on later - into Climate change, Security of supply, Business benefits and Legal obligation. Although his facts and figures focused on UK development, the international gathering watched closely as Barton paved the way for their regional-specific (and also global) viewpoints in the coming 48 hours. Barton identified a 67 per cent growth in UK offshore wind during 2008 and a 29 per cent growth in onshore wind, before moving swiftly on to how we might build upon this. Outlined in his Action Plan, he covered: * Finance Deployment * Enable Deployment – Planning – Supply chain – Grid - Bioenergy * Innovate * Engage In enforcing this he stressed we must “Maximise benefits, minimise risks.” Barton laid out a timeline of key points of development on the way towards 2020. These included the Renewable Energy Strategy of summer this year, the National Action Plan of spring 2010, the First interim target to achieve by 2011 – 2012 and lastly, to reach the UK 2020 target which, under the European Parliamentary 20 per cent for 2020 target, is set at 15 per cent for the UK. Barton’s consideration of financing renewable development proved a welcome introduction when later that day Martin Brough, Director of European Utilities Research at Unicredit, discussed “Financing UK renewable: The Investment Climate.” Brough tackled the critical issue of our global economic climate head on and discussed “The death of the market?” for renewables. He covered the difficulties of securing project finance during the credit crunch and highlighted the collapse of share prices as demonstrating a rise in the cost of equity. Brough also explained that “much lower capital costs would be needed to preserve the same return on investment (ROE)” as he discussed the matter of “Capital costs versus the cost of capital.” In conclusion Brough raised some “Key Questions for the Renewables Sector” in relation to incremental renewables projects under both “the business case” covering peer relative positions and absolute returns and risks, and “the financing case” including the ability (or not) to find nuclear and carbon capture storage (CCS) customer growth. The subject of CCS, covered by Bronwen Northmore, Head of the Cleaner Fossil Fuels Policy from the Department of Energy and Climate Change was sadly cut a little short as discussions ran against the clock. But despite the shorter slot Northmore presented a brief introduction to the CCS with a focus on appropriate geological storage options for CO2. Northmore also stressed that carbon capture is “essential for tackling climate change: as much an international issue as a UK domestic issue.” Amongst her goals for 2009 she expressed a need for new fossil fuel power stations to be built “CCS ready” and established “support for the development of CCS in developing countries.” Northmore also raised the issue of the “UK working bilaterally and with key multilateral institutions.” The final presentation of day one came from Paul Hickey, Cpmmercian Regulation and Strategy Manager for ESB Networks, the licensed operator of the electricity distribution system in the Republic of Ireland. Hickey concentrated on “Connection of Embedded Generation in Ireland.” and began by covering ESB’s “Strategic Framework to 2020 Targets.” These included: To half carbon emissions within 12 years, to be carbon net-zero by 2035,to have one third of ESB delivered electricity from renewable sources by 2020, to commit to spent €6.5 billion “in facilitating renewables including Smart metering and Smart Networks” and to include within this plan, 1,400 mega watts of wind power. Hickey explained how the application process for wind connections has developed in Ireland prior to 2003. He said that before 2003 wind connections applications were dealt with sequentially and on a first come – first served basis. Now using the Group Processing Approach (GPA) applications are processed in blocks known as “Gates” which range in structure. “Periodically, following consultation with the renewable industry, criterion for inclusion in a Gate are agreed” his presentation states. Hickey went on to discuss the developments of these Gates, and revealed that Gate 3 (4,100 mega watts) is now underway. He concluded by saying that “wind Penetration in Ireland in proportion to System load will become uniquely high.” The entire conference raised several poigniant questions. ow to make renewable investment viable in the current economic climate? How do we go about educating and differentiating between green innovation and renewable energy? How do we establish renewables as part of the answer, not a takeover solution to existing sources of energy? The matter of the 2020 targets was batted around the room at length. The news media picked up on the loopholes and intricacies of how countries may set their targets and eventually meet them long ago. The element of confusion and even distrust this has caused was addressed and tackled extremely well. Plans were debated, hashed out and analysed in terms of business viability, financial viability and strategic requirement facing the monolithic 2020 date. These are the brains lobbying, advising and moulding our legislative process. From the UK and beyond, the same concerns, interests and requirements – whatever the conditions, political structure or education – struck a chord with everyone. The IEA have done an incredible job in getting together these industry voices. Whatever happens next, it is bound to make the greatest possible positive change as we move towards our renewable targets and beyond.