This Summary for Policymakers provides an overview of the SRREN, summarizing the essential findings. The SRREN consists of 11 chapters. Chapter 1 sets the context for RE and climate change; Chapters 2 through 7 provide information on six RE technologies, and Chapters 8 through 11 address integrative issues.
Renewable energy and climate change
Demand for energy and associated services, to meet social and economic development and improve human welfare and health, is increasing. All societies require energy services to meet basic human needs (e.g., lighting, cooking, space comfort, mobility and communication) and to serve productive processes. Since approximately 1850, global use of fossil fuels (coal, oil and gas) has increased to dominate energy supply, leading to a rapid growth in carbon dioxide (CO2) emissions.
GHG emissions resulting from the provision of energy services have contributed significantly to the historic increase in atmospheric GHG concentrations. The IPCC Fourth Assessment Report (AR4) concluded that “Most of the observed increase in global average temperature since the mid-20th century is very likely2 due to the observed increase in anthropogenic greenhouse gas (GHG) concentrations.”
Recent data confirms that consumption of fossil fuels accounts for the majority of global anthropogenic GHG emissions3. Emissions continue to grow and CO2 concentrations had increased to over 390 ppm, or 39% above preindustrial levels, by the end of 2010.
There are multiple options for lowering GHG emissions from the energy system while still satisfying the global demand for energy services. Some of these possible options, such as energy conservation and efficiency, fossil fuel switch, RE, nuclear and CCS were assessed in the AR4. A comprehensive evaluation of any portfolio of mitigation options would involve an evaluation of their respective mitigation potential as well as all associated risks, costs and their contribution to sustainable development.
This report will concentrate on the role that the deployment of RE technologies can play within such a portfolio of mitigation options As well as having a large potential to mitigate climate change, RE can provide wider benefits. RE may, if implemented properly, contribute to social and economic development, energy access, a secure energy supply, and reducing negative impacts on the environment and health.
Under most conditions increasing the share of RE in the energy mix will require policies to stimulate changes in the energy system. Deployment of RE technologies has increased rapidly in recent years, and their share is projected to increase substantially under most ambitious mitigation scenarios. Additional policies would be required to attract the necessary increases in investment in technologies and infrastructure.
Renewable energy technologies and markets
RE comprises a heterogeneous class of technologies. Various types of RE can supply electricity, thermal energy and mechanical energy, as well as produce fuels that are able to satisfy multiple energy service needs. Some RE technologies can be deployed at the point of use (decentralized) in rural and urban environments, whereas others are primarily deployed within large (centralized) energy networks.
Though a growing number of RE technologies are technically mature and are being deployed at significant scale, others are in an earlier phase of technical maturity and commercial deployment or fill specialized niche markets [1.2]. The energy output of RE technologies can be (i) variable and – to some degree – unpredictable over differing time scales (from minutes to years), (ii) variable but predictable, (iii) constant, or (iv) controllable.
Renewable energy sources and technologies considered in this report
Bioenergy can be produced from a variety of biomass feedstocks, including forest, agricultural and livestock residues; short-rotation forest plantations; energy crops; the organic component of municipal solid waste; and other organic waste streams. Through a variety of processes, these feedstocks can be directly used to produce electricity or heat, or can be used to create gaseous, liquid, or solid fuels. The range of bioenergy technologies is broad and the technical maturity varies substantially. Some examples of commercially available technologies include small- and large-scale boilers, domestic pellet-based heating systems, and ethanol production from sugar and starch.
Advanced biomass integrated gasification combined-cycle power plants and lignocellulose-based transport fuels are examples of technologies that are at a pre-commercial stage, while liquid biofuel production from algae and some other biological conversion approaches are at the research and development (R&D) phase. Bioenergy technologies have applications in centralized and decentralized settings, with the traditional use of biomass in developing countries being the most widespread current application.
Bioenergy typically offers constant or controllable output. Bioenergy projects usually depend on local and regional fuel supply availability, but recent developments show that solid biomass and liquid biofuels are increasingly traded internationally.
Direct solar energy technologies harness the energy of solar irradiance to produce electricity using photovoltaics (PV) and concentrating solar power (CSP), to produce thermal energy (heating or cooling, either through passive or active means), to meet direct lighting needs and, potentially, to produce fuels that might be used for transport and other purposes. The technology maturity of solar applications ranges from R&D (e.g., fuels produced from solar energy), to relatively mature (e.g., concentrated solar energy), to mature (e.g. passive and active solar heating, and wafer-based silicon PV).
Many but not all of the technologies are modular in nature, allowing their use in both centralized and decentralized energy systems. Solar energy is variable and, to some degree, unpredictable, though the temporal profile of solar energy output in some circumstances correlates relatively well with energy demands. Thermal energy storage offers the option to improve output control for some technologies such as CSP and direct solar heating.
Geothermal energy utilizes the accessible thermal energy from the Earth’s interior. Heat is extracted from geothermal reservoirs using wells or other means. Reservoirs that are naturally sufficiently hot and permeable are called hydrothermal reservoirs, whereas reservoirs that are sufficiently hot but that are improved with hydraulic stimulation are called enhanced geothermal systems (EGS). Once at the surface, fluids of various temperatures can be used to generate electricity or can be used more directly for applications that require thermal energy, including district heating or the use of lower-temperature heat from shallow wells for geothermal heat pumps used in heating or cooling applications. Hydrothermal power plants and thermal applications of geothermal energy are mature technologies, whereas EGS projects are in the demonstration and pilot phase while also undergoing R&D. When used to generate electricity, geothermal power plants typically offer constant output.
Hydropower harnesses the energy of water moving from higher to lower elevations, primarily to generate electricity. Hydropower projects encompass dam projects with reservoirs, run-of-river and in-stream projects and cover a continuum in project scale. This variety gives hydropower the ability to meet large centralized urban needs as well as decentralized rural needs. Hydropower technologies are mature. Hydropower projects exploit a resource that varies temporally. However, the controllable output provided by hydropower facilities that have reservoirs can be used to meet peak electricity demands and help to balance electricity systems that have large amounts of variable RE drinking water, irrigation, flood and drought control, and navigation, as well as energy supply.
Ocean energy derives from the potential, kinetic, thermal and chemical energy of seawater, which can be transformed to provide electricity, thermal energy, or potable water. A wide range of technologies are possible, such as barrages for tidal range, submarine turbines for tidal and ocean currents, heat exchangers for ocean thermal energy conversion, and a variety of devices to harness the energy of waves and salinity gradients. Ocean technologies, with the exception of tidal barrages, are at the demonstration and pilot project phases and many require additional R&D. Some of the technologies have variable energy output profiles with differing levels of predictability (e.g., wave, tidal range and current), while others may be capable of near-constant or even controllable operation (e.g., ocean thermal and salinity gradient).
Wind energy harnesses the kinetic energy of moving air. The primary application of relevance to climate change mitigation is to produce electricity from large wind turbines located on land (onshore) or in sea- or freshwater (offshore). Onshore wind energy technologies are already being manufactured and deployed on a large scale. Offshore wind power technologies have greater potential for continued technical advancement. Wind electricity is both variable and, to some degree, unpredictable, but experience and detailed studies from many regions have shown that the integration of wind energy generally poses no insurmountable technical barriers.
Accounting for primary energy in the SRREN
There is no single, unambiguous accounting method for calculating primary energy from noncombustible energy sources such as non-combustible RE sources and nuclear energy. The SRREN adopts the ‘direct equivalent’ method for accounting for primary energy supply. In this method, fossil fuels and bioenergy are accounted for based on their heating value while non-combustible energy sources, including nuclear energy and all non-combustible RE, are accounted for based on the secondary energy that they produce. This may lead to an understatement of the contribution of non-combustible RE and nuclear compared to bioenergy and fossil fuels by a factor of roughly 1.2 up to 3.
The selection of the accounting method also impacts the relative shares of different individual energy sources. Comparisons in the data and figures presented in the SRREN between fossil fuels and bioenergy on the one hand, and non-combustible RE and nuclear energy on the other, reflect this accounting method.
On a global basis, it is estimated that RE accounted for 12.9% of the total 492 Exajoules (EJ) of primary energy supply in 2008. The largest RE contributor was biomass (10.2%), with the majority (roughly 60%) being traditional biomass used in cooking and heating applications in developing countries but with rapidly increasing use of modern biomass as well.6 Hydropower represented 2.3%, whereas other RE sources accounted for 0.4%.
In 2008, RE contributed approximately 19% of global electricity supply (16% hydropower, 3% other RE) and biofuels contributed 2% of global road transport fuel supply. Traditional biomass (17%), modern biomass (8%), solar thermal and geothermal energy (2%) together fuelled 27% of the total global demand for heat. The contribution of RE to primary energy supply varies substantially by country and region.
Deployment of RE has been increasing rapidly in recent years. Various types of government policies, the declining cost of many RE technologies, changes in the prices of fossil fuels, an increase of energy demand and other factors have encouraged the continuing increase in the use of RE. Despite global financial challenges, RE capacity continued to grow rapidly in 2009 compared to the cumulative installed capacity from the previous year, including: wind power (32% increase, 38 Gigawatts (GW) added), hydropower (3%, 31 GW added), grid-connected photovoltaics (53%, 7.5 GW added), geothermal power (4%, 0.4 GW added), and solar hot water/heating (21%, 31 GWth added). Biofuels accounted for 2% of global road transport fuel demand in 2008 and nearly 3% in 2009. The annual production of ethanol increased to 1.6 EJ (76 billion litres) by the end of 2009 and biodiesel to 0.6 EJ (17 billion litres).
Of the approximate 300 GW of new electricity generating capacity added globally over the twoyear period from 2008 to 2009, 140 GW came from RE additions. Collectively, developing countries host 53% of global RE electricity generation capacity. At the end of 2009, the use of RE in hot water/heating markets included modern biomass (270 GWthermal), solar (180 GWthermal), and geothermal (60 GWthermal). The use of decentralized RE (excluding traditional biomass) in meeting rural energy needs at the household or village level has also increased, including hydropower stations, various modern biomass options, PV, wind or hybrid systems that combine multiple technologies.
The global technical potential7 of RE sources will not limit continued growth in the use of RE. A wide range of estimates are provided in the literature, but studies have consistently found that the total global technical potential for RE is substantially higher than global energy demand.
The technical potential for solar energy is the highest among the RE sources, but substantial technical potential exists for all six RE sources. Even in regions with relatively low levels of technical potential for any individual RE source, there are typically significant opportunities for increased deployment compared to current levels. In the longer term and at higher deployment levels, however, technical potentials indicate a limit to the contribution of some individual RE technologies. Factors such as sustainability concerns, public acceptance, system integration and infrastructure constraints, or economic factors may also limit deployment of renewable energy technologies.
Climate change will have impacts on the size and geographic distribution of the technical potential for RE sources, but research into the magnitude of these possible effects is nascent. Because RE sources are, in many cases, dependent on the climate, global climate change will affect the RE resource base, though the precise nature and magnitude of these impacts is uncertain. The future technical potential for bioenergy could be influenced by climate change through impacts on biomass production such as altered soil conditions, precipitation, crop productivity and other factors.
The overall impact of a global mean temperature change of below 2°C on the technical potential of bioenergy is expected to be relatively small on a global basis. However, considerable regional differences could be expected and uncertainties are larger and more difficult to assess For solar energy, though climate change is expected to influence the distribution and variability of cloud cover, the impact of these changes on overall technical potential is expected to be small.
For hydropower the overall impacts on the global potential is expected to be slightly positive. However, results also indicate the possibility of substantial variations across regions and even within countries. Research to date suggests that climate change is not expected to greatly impact the global technical potential for wind energy development but changes in the regional distribution of the wind energy resource may be expected. Climate change is not anticipated to have significant impacts on the size or geographic distribution of geothermal or ocean energy resources.
The levelized cost of energy for many RE technologies is currently higher than existing energy prices, though in various settings RE is already economically competitive. Ranges of recent levelized costs of energy for selected commercially available RE technologies are wide, depending on a number of factors including, but not limited to, technology characteristics, regional variations in cost and performance, and differing discount rates.
Some RE technologies are broadly competitive with existing market energy prices. Many of the other RE technologies can provide competitive energy services in certain circumstances, for example, in regions with favourable resource conditions or that lack the infrastructure for other low-cost energy supplies. In most regions of the world, policy measures are still required to ensure rapid deployment of many RE sources.
Monetizing the external costs of energy supply would improve the relative competitiveness of RE. The same applies if market prices increase due to other reasons. The levelized cost of energy for a technology is not the sole determinant of its value or economic competitiveness. The attractiveness of a specific energy supply option depends also on broader economic as well as environmental and social aspects, and the contribution that the technology provides to meeting specific energy services (e.g., peak electricity demands) or imposes in the form of ancillary costs on the energy system (e.g., the costs of integration).
The cost of most RE technologies has declined and additional expected technical advances would result in further cost reductions. Significant advances in RE technologies and associated long-term cost reductions have been demonstrated over the last decades, though periods of rising prices have sometimes been experienced (due to, for example, increasing demand for RE in excess of available supply).
The contribution of different drivers (e.g., R&D, economies of scale, deployment-oriented learning, and increased market competition among RE suppliers) is not always understood in detail. Further cost reductions are expected, resulting in greater potential deployment and consequent climate change mitigation. Examples of important areas of potential technological advancement include: new and improved feedstock production and supply systems, biofuels produced via new processes (also called next-generation or advanced biofuels, e.g., lignocellulosic) and advanced biorefining; advanced PV and Concentrating Solar Power technologies and manufacturing processes; enhanced geothermal systems (EGS); multiple emerging ocean technologies; and foundation and turbine designs for offshore wind energy. Further cost reductions for hydropower are expected to be less significant than some of the other RE technologies, but R&D opportunities exist to make hydropower projects technically feasible in a wider range of locations and improve the technical performance of new and existing projects.
A variety of technology-specific challenges (in addition to cost) may need to be addressed to enable RE to significantly upscale its contribution to reducing GHG emissions. For the increased and sustainable use of bioenergy, proper design, implementation and monitoring of sustainability frameworks can minimize negative impacts and maximize benefits with regard to social, economic and environmental issues.
For solar energy, regulatory and institutional barriers can impede deployment, as can integration and transmission issues. For geothermal energy, an important challenge would be to prove that enhanced geothermal systems (EGS) can be deployed economically, sustainably and widely.
New hydropower projects can have ecological and social impacts that are very site specific, and increased deployment may require improved sustainability assessment tools, and regional and multi-party collaborations to address energy and water needs [5.6, 5.9, 5.10]. The deployment of ocean energy could benefit from testing centres for demonstration projects, and from dedicated policies and regulations that encourage early deployment. For wind energy, technical and institutional solutions to transmission constraints and operational integration concerns may be especially important, as might public acceptance issues relating primarily to landscape impacts.
Integration into present and future energy systems
The characteristics of different RE sources can influence the scale of the integration challenge. Some RE resources are widely distributed geographically. Others, such as large scale hydropower, can be more centralized but have integration options constrained by geographic location. Some RE resources are variable with limited predictability. Some have lower physical energy densities and integration and invoke additional system costs particularly when reaching higher shares of RE.
Integrating RE into most existing energy supply systems and end-use sectors at an accelerated rate — leading to higher shares of RE — is technologically feasible, though will result in a number of additional challenges. Increased shares of RE are expected within an overall portfolio of low GHG emission technologies. Whether for electricity, heating, cooling, gaseous fuels or liquid fuels, including integration directly into end-use sectors, the RE integration challenges are contextual and site specific and include the adjustment of existing energy supply systems.
The costs and challenges of integrating increasing shares of RE into an existing energy supply system depend on the current share of RE, the availability and characteristics of RE resources, the system characteristics, and how the system evolves and develops in the future. RE can be integrated into all types of electricity systems from large inter-connected continental-scale grids down to small stand-alone systems and individual buildings. Relevant system characteristics include the generation mix and its flexibility, network infrastructure, energy market designs and institutional rules, demand location, demand profiles, and control and communication capability. Wind, solar PV energy and CSP without storage can be more difficult to integrate than dispatchable hydropower, bioenergy, CSP with storage and geothermal energy.
As the penetration of variable RE sources increases, maintaining system reliability may become more challenging and costly. Having a portfolio of RE technologies is one solution to reduce the risks and costs of RE integration. Other solutions include the development ofcomplementary flexible generation and the more flexible operation of existing schemes; improved short term forecasting, system operation and planning tools; electricity demand that can respond in relation to supply availability; energy storage technologies (including storage-based hydropower); and modified institutional arrangements.
Additional electricity network transmission (including inter-connections between systems) and/or distribution infrastructure may need to be strengthened and extended, partly because of the geographical distribution and fixed remote locations of many RE resources.
District heating systems can use low-temperature thermal RE inputs such as solar and geothermal heat, or biomass, including sources with few competing uses such as refusederived fuels. District cooling can make use of cold natural waterways. Thermal storage capability and flexible cogeneration can overcome supply and demand variability challenges as well as provide demand response for electricity systems.
In gas distribution grids, injecting biomethane, or in the future, RE-derived hydrogen and synthetic natural gas, can be achieved for a range of applications but successful integration requires that appropriate gas quality standards are met and pipelines upgraded where necessary.
Liquid fuel systems can integrate biofuels for transport applications or for cooking and heating applications. Pure (100%) biofuels, or more usually those blended with petroleumbased fuels usually need to meet technical standards consistent with vehicle engine fuel
There are multiple pathways for increasing the shares of RE across all end-use sectors. The ease of integration varies depending on region, characteristics specific to the sector and the technology.
For transport, liquid and gaseous biofuels are already and are expected to continue to be integrated into the fuel supply systems of a growing number of countries. Integration options may include decentralized on-site or centralized production of RE hydrogen for fuel cell vehicles and RE electricity for rail and electric vehicles depending on infrastructure and vehicle technology developments.
Future demand for electric vehicles could also enhance flexible electricity generation systems.
In the building sector, RE technologies can be integrated into both new and existing structures to produce electricity, heating and cooling. Supply of surplus energy may be possible, particularly for energy efficient building designs. In developing countries, the integration of RE supply systems is feasible for even modest dwellings.
Agriculture as well as food and fibre process industries often use biomass to meet direct heat and power demands on-site. They can also be net exporters of surplus fuels, heat, and electricity to adjacent supply systems. Increasing the integration of RE for use by industries is an option in several sub-sectors, for example through electro-thermal technologies or, in the longer term, by using RE hydrogen.
The costs associated with RE integration, whether for electricity, heating, cooling, gaseous or liquid fuels, are contextual, site-specific and generally difficult to determine. They may include additional costs for network infrastructure investment, system operation and losses, and other adjustments to the existing energy supply systems as needed. The available literature on integration costs is sparse and estimates are often lacking or vary widely.
In order to accommodate high RE shares, energy systems will need to evolve and be adapted. Long-term integration efforts could include investment in enabling infrastructure; modification of institutional and governance frameworks; attention to social aspects, markets and planning; and capacity building in anticipation of RE growth. Furthermore, integration of less mature technologies, including biofuels produced through new processes (also called advanced biofuels or next-generation biofuels), fuels generated from solar energy, solar cooling, ocean energy technologies, fuel cells and electric vehicles, will require continuing investments in research, development and demonstration (RD&D), capacity building and other supporting measures.
RE could shape future energy supply and end-use systems, in particular for electricity which is expected to attain higher shares of RE earlier than either the heat or transport fuel sectors at the global level. Parallel developments in electric vehicles, increased heating and cooling using electricity (including heat pumps), flexible demand response services (including the use of smart meters), energy storage and other technologies could be associated with this trend.
As infrastructure and energy systems develop, in spite of the complexities, there are few, if any, fundamental technological limits to integrating a portfolio of RE technologies to meet a majority share of total energy demand in locations where suitable RE resources exist or can be supplied. However, the actual rate of integration and the resulting shares of RE will be influenced by factors, such as costs, policies, environmental issues and social aspects.
Renewable energy and sustainable development
Historically, economic development has been strongly correlated with increasing energy use and growth of GHG emissions and RE can help decouple that correlation, contributing to sustainable development (SD). Though the exact contribution of RE to SD has to be evaluated in a country specific context, RE offers the opportunity to contribute to social and economic development, energy access, secure energy supply, climate change mitigation, and the reduction of negative environmental and health impacts.
Providing access to modern energy services would support the achievement of the Millennium Development Goals. RE can contribute to social and economic development. Under favorable conditions, cost savings in comparison to non-RE use exist, in particular in remote and in poor rural areas lacking centralized energy access.
Costs associated with energy imports can often be reduced through the deployment of domestic RE technologies that are already competitive. [9.3.3] RE can have a positive impact on job creation although the studies available differ with respect to the magnitude of net employment.
RE can help accelerate access to energy, particularly for the 1.4 billion people without access to electricity and the additional 1.3 billion using traditional biomass. Basic levels of access to modern energy services can provide significant benefits to a community or household. In many developing countries, decentralized grids based on RE and the inclusion of RE in centralized energy grids have expanded and improved energy access. In addition, non-electrical RE technologies also offer opportunities for modernization of energy services, for example using solar energy for water heating and crop drying, biofuels for transportation, biogas and modern biomass for heating, cooling, cooking and lighting, and wind for water pumping.
The number of people without access to modern energy services is expected to remain unchanged unless relevant domestic policies are implemented, which may be supported or complemented by international assistance as appropriate.
RE options can contribute to a more secure energy supply, although specific challenges to integration must be considered. RE deployment might reduce vulnerability to supply disruption and market volatility if competition is increased and energy sources are diversified.
Scenario studies indicate that concerns regarding secure energy supply, could continue in the future without technological improvements within the transport sector.
The variable output profiles of some RE technologies often necessitate technical and institutional measures appropriate to local conditions to assure energy supply reliability.
In addition to reduced GHG emissions, RE technologies can provide other important environmental benefits. Maximizing these benefits depends on the specific technology, management, and site characteristics associated with each RE project.
Lifecycle assessments (LCA) for electricity generation indicate that GHG emissions from RE technologies are, in general, significantly lower than those associated with fossil fuel options, and in a range of conditions, less than fossil fuels employing CCS. The median values for all RE are ranging from 4 to 46 g CO2 eq/kWh while those for fossil fuels range from 469 to 1001g CO2-eq/kWh (excluding land use change emissions).
Most current bioenergy systems, including liquid biofuels, result in GHG emission reductions, and most biofuels produced through new processes (also called advanced biofuels or next generation biofuels) could provide higher GHG mitigation. The GHG balance may be affected by land use changes and corresponding emissions and removals. Bioenergy can lead to avoided GHG emissions from residues and wastes in landfill disposals and co-products; the combination of bioenergy with CCS may provide for further reductions.
The GHG implications related to land management and land use changes in carbon stocks have considerable uncertainties. The sustainability of bioenergy, in particular in terms of life cycle GHG emissions, is influenced by land and biomass resource management practices. Changes in land and forest use or management that, according to a considerable number of studies, could be brought about directly or indirectly by biomass production for use as fuels, power or heat, can decrease or increase terrestrial carbon stocks. The same studies also show that indirect changes in terrestrial carbon stocks have considerable uncertainties, are not directly observable, are complex to model and difficult to attribute to a single cause. Proper governance of land use, zoning, and choice of biomass production systems are key considerations for policy makers.
Policies are in place that aim to ensure that the benefits from bioenergy, such as rural development, overall improvement of agricultural management and the contribution to climate change mitigation, are realized; their effectiveness has not been assessed.