9 May 2011

Abu Dhabi — Close to 80 per cent of the world's energy supply could be met by renewables by mid-century if backed by the right enabling public policies, a new report shows.

The findings, from over 120 researchers working with the Intergovernmental Panel on Climate Change (IPCC), also indicate that the rising penetration of renewable energies could lead to cumulative greenhouse gas savings equivalent to 220 to 560 gigatonnes of carbon dioxide (GtC0₂eq) between 2010 and 2050.

The upper end of the scenarios assessed, representing a cut of around a third in greenhouse gas emissions from business-as-usual projections, could assist in keeping concentrations of greenhouse gases at 450 parts per million.

This could contribute towards a goal of holding the increase in global temperature below 2 degrees Celsius—an aim recognized in the United Nations Climate Convention's Cancun Agreements.

Summary for Policymakers

The findings, launched today after being approved by member countries of the IPCC in Abu Dhabi, United Arab Emirates, are contained in a summary for policymakers of the Special Report on Renewable Energy Sources and Climate Change Mitigation (SRREN).

The summary is a short version of a roughly a thousand page comprehensive assessment compiled by over 120 leading experts from all over the world for the IPCC's Working Group III.

"With consistent climate and energy policy support, renewable energy sources can contribute substantially to human well-being by sustainably supplying energy and stabilizing the climate," said Professor Ottmar Edenhofer, Co-Chair of Working Group III at the report launch. "However, the substantial increase of renewables is technically and politically very challenging" he added.

Youba Sokona, Co-Chair of the Working Group III, said: "The potential role of renewable energy technologies in meeting the needs of the poor and in powering the sustainable growth of developing and developed economies can trigger sharply polarized views. This IPCC report has brought some much needed clarity to this debate in order to inform governments on the options and decisions that will needed if the world is to collectively realize a low carbon, far more resource efficient and equitable development path".

Ramon Pichs, Co-Chair of the Working Group III, added: "The report shows that it is not the availability of the resource, but the public policies that will either expand or constrain renewable energy development over the coming decades. Developing countries have an important stake in this future—this is where most of the 1.4 billion people without access to electricity live yet also where some of the best conditions exist for renewable energy deployment".

Also speaking at the launch, Rajendra Pachauri, Chairman of the IPCC, said: "The IPCC brought together the most relevant and best available information to provide the world with this scientific assessment of the potential of renewable energy sources to mitigate climate change. The Special Report can serve as a sound knowledge basis for policymakers to take on this major challenge of the 21^st century."

The report will feed into the broader work of the IPCC as it prepares its Fifth Assessment Report (AR5). The AR5 Synthesis Report is scheduled for finalization in September 2014.

Renewable Energy Technologies Reviewed

The SRREN, approved by government representatives from 194 nations, has reviewed the current penetration of six renewable energy technologies and their potential deployment over the coming decades:

• Bioenergy, including energy crops; forest, agricultural and livestock residues and so called second generation biofuels
• Direct solar energy, including photovoltaics and concentrating solar power
• Geothermal energy, based on heat extraction from the Earth's interior
• Hydropower, including run-of-river, in-stream or dam projects with reservoirs
• Ocean energy, ranging from barrages to ocean currents and ones which harness temperature differences in the marine realm
• Wind energy, including on- and offshore systems

More than 160 existing scientific scenarios on the possible penetration of renewables by 2050, alongside environmental and social implications, have been reviewed with four analyzed in-depth. These four were chosen in order to represent a full range of possible future worlds and alternative pathways of socio-economic development and technological change.

The researchers have also studied the challenges linked to how renewable energy can be integrated into existing and future energy systems including electricity grids and likely cost benefits from these developments.

While the scenarios arrive at a range of estimates, the overall conclusions are that renewables will take an increasing slice of the energy market.

The most optimistic of the four, in-depth scenarios projects renewable energy accounting for as much as 77 percent of the world's energy demand by 2050, amounting to about 314 of 407 Exajoules per year.

Public policies that recognize and reflect the wider economic, social and environmental benefits of renewable energies, including their potential to cut air pollution and improve public health, will be key for meeting the highest renewables deployment scenarios.

"What is unique about this assessment is that the IPCC allows us to draw on and bring together a broad spectrum of experts on each of the technologies reviewed in collaboration with scientists studying energy systems as a whole. It represents a systemic, broad, impartial and state of knowledge report on the present and future potential of a low carbon, more resource efficient energy path," says Professor Edenhofer.

Key Findings

• Of the around 300 Gigawatts (GW) of new electricity generating capacity added globally between 2008 and 2009, 140 GW came from renewable energy.
• Despite global financial challenges, renewable energy capacity grew in 2009—wind by more than 30 per cent; hydropower by three percent; grid-connected photovoltaics by more than 50 per cent; geothermal by 4 percent and solar water/heating by over 20 percent. The annual production of ethanol increased to 1.6 Exajoules (76 billion litres) and biodiesel by 0.6 Exajoules (17 billion litres) by the end of 2009. Meanwhile developing countries host more than 50 percent of current global renewable energy capacity.
• Most of the reviewed scenarios estimate that renewables will contribute more to a low carbon energy supply by 2050 than nuclear power or fossil fuels using carbon capture and storage (CCS).
• The technical potential of renewable energy technologies exceeds the current global energy demand by a considerable amount—globally and in respect of most regions of the world.
• Under the scenarios analyzed in-depth, less than 2.5 percent of the globally available technical potential for renewables is used—in other words over 97 percent is untapped underlining that availability of renewable source will not be a limiting factor.
• Accelerating the deployment of renewable energies will present new technological and institutional challenges, in particular integrating them into existing energy supply systems and end use sectors.
• According to the four scenarios analyzed in detail, the decadal global investments in the renewable power sector range from 1,360 to 5,100 billion US dollars to 2020 and 1,490 to 7,180 billion US dollars for the decade 2021 to 2030. For the lower values, the average yearly investments are smaller than the renewable power sector investments reported for 2009.
• A combination of targeted public policies allied to research and development investments could reduce fuel and financing costs leading to lower additional costs for renewable energy technologies.
• Public policymakers could draw on a range of existing experience in order to design and implement the most effective enabling policies—there is no one-size-fits-all policy for encouraging renewables.