Tracking Clean Energy Progress 2014

Key Findings

Emerging Economies Step Up Clean Energy Ambition, but Policy Uncertainty Stalls Momentum in OECD Countries

• Renewable Power Deployment:

  • Asia and Emerging Economies: Accelerating deployment of renewable power.
  • China: Became the first market globally for both wind and solar photovoltaics (PV), accounting for a significant portion of new installations.
  • Asia: Deployed more than half of global solar PV additions in 2013.

• Policy Importance:

  • Competitiveness: Clean energy technologies, especially renewable power, are increasingly competitive with new-built conventional power plants.
  • Europe: Decreasing wholesale prices due to sluggish power demand, overcapacity, low CO2 prices, and increasing renewable penetration make new investments challenging.
  • Policy Incentives: Still needed to drive progress in clean energy technologies, but uncertainty in policy agreements hinders momentum.

Detailed Analysis

Chapter 1: Tracking Clean Energy Progress

• Renewable Power:

  • Wind and Solar PV: China led the world in new installations.
  • Global Trends: Asia dominated solar PV deployment.

• Nuclear Power:

  • Progress: Not specified in detail.

• Natural Gas-Fired Power:

  • Role: Dual role of replacing coal and supporting integration of variable renewable energy (VRE).

• Coal-Fired Power:

  • Concern: Unrelenting rise incompatible with climate change objectives.

• Carbon Capture and Storage:

  • Status: Growing but not yet a game-changer for the future energy system.

• Industry:

  • Chemicals and Petrochemicals:
    • Iron and Steel:
      • Status: Growing but with policy challenges.

• Transport:

  • Electric and Hybrid Electric Vehicles: Growing but still nascent.
  • Biofuels: Growing and competitive in certain regions.

• Buildings Energy Efficiency:

  • Building Envelope and Appliances and Equipment:
    • Status: Growing emphasis on energy efficiency.

Chapter 2: Getting “Smart” about Staying on Line

• Digital Economy:

  • Energy Cost: Rapidly expanding digital economy carries an energy cost.
  • Opportunities: Energy efficiency opportunities and market creation.

• Market Creation:

  • Emerging Technologies: Need for active management of variable renewable energy (VRE).

• Way Forward:

  • Policy Actions: Strong policy action required to manage coal resources and address administrative hurdles.

Conclusion

• Timescale: 40-year outlook.
• Energy Challenges: Persistent issues despite progress.
• Policy Focus: Urgent need for transformative actions to achieve a low-carbon, integrated future.
• India Case Study: Highlighting the challenge of expanding electricity capacity and generation to meet future demand.

This publication underscores the critical need for robust policy frameworks to accelerate the transition to clean, secure, and economically viable energy systems.