IEA director says cuts to incentives show renewable energy is coming of age
23.03.2012: In an article published in the European Energy Review, the executive director of the International Energy Agency (IEA), Maria van der Hoeven, says the fact that various European governments are cutting incentives for renewable energies should not to be considered negative because it means “renewable energy is swiftly coming of age, reducing the need for public support.” However, Van der Hoeven warns that changes to incentive policies must be made in a transparent and predictable way and should never be retroactive. She also notes that changes to support policies should be carried out in close coordination with industry and other relevant stakeholders to ensure that the health of the market is maintained. Van der Hoeven goes on to say that renewables account for almost a fifth of all electricity produced worldwide despite the fact that they receive far less government support than fossil fuels: “Some $66 billion in economic incentives were spent worldwide on renewable energy in 2010, less than a fifth of the $409 billion in fossil-fuel subsidies the same year.” Speaking specifically about solar feed-in tariffs (FITs), Van der Hoeven said: “The incentives worked well. But in the case of the solar panels…they worked too well. After implementing feed-in tariffs, deployment of solar PV boomed in some countries at an unsustainable rate.” Van der Hoeven points out that since PV is rapidly approaching competitiveness with retail electricity prices, it’s only to be expected that governments have begun reducing public support. Also of interest, the IEA estimates that at least 32 percent of electricity produced worldwide will come from renewable sources by 2035. … Source: International Energy Agency (IEA); Summary: PHOTON
http://www.iea.org
http://www.iea.org/journalists/articles/mvdh_renewable_subsidies.pdf
The complete press release can be viewed in PHOTON's archive using the following link:
http://www.photon-international.com/newsletter/document/62779.pdf
Monty Bannerman
ArcStar Energy
646.402.5076
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