IEA, Renewable Policy Updated, Issue 13, 13 February 2017

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Renewable Policy Update

Based on the following sources: ADB, Biofuels Digest, Bloomberg, BMUB, BNA.com, BNAmericas, BNEF, CENACE, China’s National Energy Administration, Cleantechnica

Climate Action Programme, CMS Law, Daily News Egypt, DONG Energy, Ebtke.esdm.go.id, EDIE.net, egyptoil-gas.com, ENDS, ENERDATA, Europa.eu, Greentech Media, Gulf News, IEA China Desk, IEA Press Intelligence, International Business Times, International Law Office

(ILO), Lexology, MINEM.gob.ar, MINETAD.gob.es, MOENR.gov.ae, Photon, PV Magazine, Recharge News, Renewable Energy World, RenewablesNow, Reuters, Review Journal, Trade Arabia, The Jakarta Post, The Standard, UNFCCC, URE.gov.pl, Utilities-me.com Wind

Power Monthly, Wind Power Offshore, Wysokie Napiecie

Contents

Renewable energy auctions ....................................................................................................... 3

Concluded auctions ................................................................................................................ 3

Technical difficulties during first renewable power auction in Poland .......................................................... 3

El Salvador awards 120 MW of solar PV at prices from USD 50/MWh in its 2nd

renewable energy auction round .............................................................................................................................................................. 3

750 MW solar project in Madhya Pradesh (India) receives 20 bids ............................................................... 4

Opened auctions ..................................................................................................................... 4

Tamil Nadu tenders 500 MW solar to fill RPO shortfall .................................................................................. 4

Bolivia opens second public tender for 50 MW PV project ............................................................................ 5

Dubai opens tenders for waste-to-energy plant ............................................................................................ 5

Scheduled/future auctions ..................................................................................................... 5

Germany announced guidelines for its first offshore wind auction to take place on 1st

of April 2017 .......... 5

France plans to add 3 GW of onshore wind capacity via auctions within next three years ........................... 6

Saudi Arabia announces 400 MW tender and opens a pre-qualification stage ............................................. 6

Round I of Saudi Arabia's renewables programme coming in weeks ............................................................. 7

Thailand will launch 1 GW renewable tender in the second half of 2017 ...................................................... 7

Spain announces 3 GW renewables auction to take place in 2017 ................................................................ 7

Brazil is working on revision of its renewable energy tender model due to the 2nd

year of economic recession and falling electricity demand ........................................................................................................ 8

Feed-in/premium tariffs ............................................................................................................ 8

Indonesia introduces new FIT policy .............................................................................................................. 8

Introduction of a major feed-in tariff cut for large scale solar PV in Ukraine ................................................ 9

Good interest in Egypt’s 2nd

FIT round despite previous tariff cuts and previous withdrawals ..................... 9

Recent policy changes ................................................................................................................ 9

OECD ....................................................................................................................................... 9

Europe on track to reach its 20% target by 2020 ........................................................................................... 9

Sweden works on energy roadmap to achieve its 100% renewable energy production target ................... 10

Scotland sets ambitious goal of 66% emissions cut within 15 years ............................................................ 10

New York targets 2.4 GW of offshore wind capacity by 2030 ...................................................................... 10

Denmark sets 0.9% advanced biofuels blending mandate for 2020 ............................................................ 11

Queensland’s E3 mandate begun as of 1 January 2017 ............................................................................... 11

Non-OECD ............................................................................................................................. 11

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China to launch green certificates for renewable power on 1st

July 2017 ................................................... 11

China released its 13th Ocean Energy Development Five Year Plan (2016-2020) ....................................... 12

The United Arab Emirates approve UAE Energy Plan 2050 aiming to cover 44% of electricity consumption with renewables ........................................................................................................................................... 12

UAE and Germany eye boosting co-operation on energy policy .................................................................. 12

Uganda’s president wants E10 blending mandate to become law within six months ................................. 12

Climate/renewable financing................................................................................................... 12

German TSOs plan EUR 34-36 bn investment in power grids by 2030 ......................................................... 12

Offshore wind costs fall 32% since 2011 ...................................................................................................... 13

Deutsche Bank stops to provide any further loans for coal mining and new coal-fired power plant constructions ................................................................................................................................................ 13

Ireland voted to fully divest from fossil fuels over next five years ............................................................... 13

Obama pays USD 500 million to UN climate fund that Trump vows to cut off ............................................ 14

EU allocates EUR 4m for renewables in Colombia........................................................................................ 14

The Asian Development Bank (ADB) approved a new USD 390 million financing package for Indian independent power producer ReNew Power to develop renewable energy projects in India .................... 14

Climate change/environmental news ...................................................................................... 15

China demands emission cuts as year’s worst smog chokes Beijing ............................................................ 15

China halts over 100 coal power projects .................................................................................................... 15

China top coal province sets out consolidation plan .................................................................................... 15

UK to leave Euratom as a part of Brexit which might further delay construction of new nuclear power plants ............................................................................................................................................................ 15

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Renewable energy auctions

Concluded auctions Technical difficulties during first renewable power auction in Poland Source: wysokienapiecie.pl Date: 30 December 2016 Further materials on auction:

Energy Regulatory Office (ERO) website on auctions (announcement, guidelines and results) [PL] On 30

th of December 2016, Poland launched its first renewable power auction round. Four out of eight

possible auction “baskets” were opened in parallel, each for different technology specifications. The long-awaited launch of the new support system was referred to by the Energy Regulatory Office (ERO) as a “pilot auction”. This explains why only half of the possible “baskets” were opened, with relevantly small amount of electricity to be contracted. Auction was opened for a period of one day and technical difficulties with the online auction platform were noted for three out of four “baskets” opened. Despite the technical difficulties ERO did not render auction process to be invalid. As the result, 76 PV projects (equivalent of ca. 70 MW of capacity) received support contracts with winning bids prices ranging from USD 62/MWh to USD 100/MWh. Only small onshore wind projects (< 1 MW) participated in the auction. Eight bids were submitted of cumulative capacity of 8 MW and competed with solar PV projects. It is unclear how many of those projects received contracts. All 49 existing small hydropower projects received contracts as the result of the auctions allowing them to move away from broken certificate system. ERO did not provide any information per timeline of future auctions. El Salvador awards 120 MW of solar PV at prices from USD 50/MWh in its 2

nd renewable energy auction

round Source: pv-magazine.com Date: 12 January 2017 Four PV projects with a combined capacity of 120 MW were awarded in El Salvador’s second renewable energy auction, as reported by El Salvador’s National Energy Council (CNE). The prices for these PV projects oscillated between USD 49.55 and USD 67.24/MWh, much lower than the ceiling price of USD 113.24 set for this technology in the auction. Two solar projects at 50 MW each were awarded to Capella Solar at USD 49.55 and USD 49.56/MWh. Additionally, a 10 MW plant was awarded to Sonsonate Energía at a price of USD 67.24/MWh. The fourth project awarded is a 9.9 MW project by Asocio Ecosolar which is registered at a price of USD 54.98/MWh. With these projects, more PV capacity was awarded than was originally envisioned, as the auction had a cap of 100 MW for solar PV and 70 MW for wind. In addition to these PV projects, one wind project was also awarded. This is a 50 MW project by Tracia Network at a price of USD 98.78/MWh. The ceiling price for wind had been set at USD 105.30/MWh. In total, 169.9 MW of projects were awarded in this auction, which for practical purposes represents the total of 170 MW which was available. It is estimated that the five projects awarded represent an investment of USD 340 million. It is expected that the nation’s General Superintendent of Electricity and Telecommunications (SIGET) will review and approve these results by January 24 and sign the associated electricity contracts by 27

th of March

2017. These will be long-term supply contracts. The beginning of generation for the PV projects is set for 1

st of April 2019, and the start date for the wind

projects falls in the following year.

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750 MW solar project in Madhya Pradesh (India) receives 20 bids Source: enerdata.net Date: 27 January 2017 Rewa Ultra Mega Solar Limited (RUMSL), a joint venture of Solar Energy Corporation of India (SECI) and Madhya Pradesh Urja Vikas Nigam (MPUVN), has received 20 bids for the development of the 750 MW Rewa solar project in Madhya Pradesh. The project, which will be the largest in the country overtaking the 648 MW Kamathi solar park in Tamil Nadu, will be developed in three segments of 250 MW over 1,500 hectares of land. The final auction is expected on 30 January 2017 and the project could be commissioned as soon as late 2018. Power generation will be sold to the Delhi Metro Rail Corporation and to the Madhya Pradesh Power Management Company.

Opened auctions Tamil Nadu tenders 500 MW solar to fill RPO shortfall Source: pv-tech.org Date: 9 January 2017 The Indian state of Tamil Nadu has issued a request for submission (RfS) for 500 MW of solar energy, continuing attempts to reach its Renewable Purchase Obligations (RPO), after a previous tender of the same size was undersubscribed. The new tender document said that projects can be between 1 MW and max 500 MW in size, with PPAs to be signed with the Tamil Nadu Generation and Distribution Corporation (TANGEDCO) for a period of 25-years. TANGEDCO has set the benchmark tariff at INR 4.50/kWh (USD 0.066). The deadline for submissions is 10 February 2017. A different request for submission (RfS) was issued in October last year for 500 MW with the maximum tariff set at INR5.10/kWh (USD 0.076), and with projects of only 1 MW to 50 MW eligible, but this was significantly undersubscribed. At the time, Mercom Captial Group reported that the tender received bids aggregating just 117 MW. The original tender plans were approved by Tamil Nadu Electricity Regulatory Commission (TNERC) because the state sought to achieve its RPO's, which are set at 2.5% for the year 2016-17 and 5% for the year 2017/18. Roughly 3.2 GW of solar power is required for the year 2017-18. The state was the first in India to report solar curtailment and has seen delayed payments for both wind and solar projects, which are deterrents for developers. However, significant module price drops of late will make most tenders in India more attractive. Today, Tamil Nadu also signed up to the UDAY scheme, which could help its distribution company's (discom) finances in the long-term.

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Bolivia opens second public tender for 50 MW PV project Source: renewablesnow.com Date: 3 February 2016 Additional materials:

Notice on auction published by Bolivia's National Electricity Company (ENDE) [ES];

Guidelines of the auction published by ENDE [ES]; Bolivia's National Electricity Company (ENDE) published this week the second public call for bids for a 50-MW photovoltaic (PV) plant construction contract. Named Planta Solar Fotovoltaica Oruro, the PV project will receive funds from the French Development Agency (AFD) under a contract the Bolivian government signed with the foreign institution. The opening of offers in the public tender has been set for 30

th of March 2017. This call is for the design,

supply and construction, operation and maintenance of the solar power plant in the department of Oruro. Currently, Spanish-Bolivian consortium Emias-Elecnor is building a 5.2 MW solar plant in Tarija department while an additional 65 MW of solar projects are under way. Dubai opens tenders for waste-to-energy plant Source: tradearabia.com Date: 22 December 2016 Dubai Municipality has opened tenders for the Middle East’s largest solid waste-to-energy plant, a report said. The facility is in line with Dubai Vision 2021 and the UAE Vision 2021 National Agenda that will affect 75% reduction in the emirate’s landfills by 2021, in addition to protecting the environment from methane gas emitted by landfills. The plant, to be operational by the first quarter of 2020, will receive 2,000 tonnes of solid waste a day and produce 60 MW.

Scheduled/future auctions Germany announced guidelines for its first offshore wind auction to take place on 1

st of April 2017

Source: windpoweroffshore.com Date: 30 January 2017 The framework conditions for Germany's first auctions for grid connection and support payments for offshore wind projects in the North Sea and Baltic Sea have been published by federal energy regulator Bundesnetzagentur (BNA). The first auction for a total of 1.55 GW is scheduled for 1 April, with bids to be lodged by 3 April. The second auction, also for 1.55 GW, will take place on 1 April 2018. Of the total volume of 3.1 GW covered by the two auctions, at least 500 MW is reserved for projects in the Baltic Sea, the BNA said. The lowest bids for support will be successful, the maximum bid allowed being EUR 0.12/kWh, noted the BNA. All offshore wind sites that were permitted or had reached an advanced stage in the permitting process before August 2016 are eligible. The auctions apply to offshore turbines to be commissioned after 30 December 2020. Support rates are to be fixed by market auctions and no longer by state decree. The new system ensures a steady and cost-efficient expansion of offshore wind, according to BNA president Jochen Homann.

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France plans to add 3 GW of onshore wind capacity via auctions within next three years Source: windpowermonthly.com Date: 6 February 2017 The government will launch a tender in the coming weeks for 3 GW of onshore wind power to be allocated in a rolling programme over the next three years. The tender, announced by energy minister Ségolène Royal, applies to arrays of more than six turbines and will comprise six bidding windows of 500 MW apiece. The first will be conducted in 2017, with two each in 2018 and 2019, and another single window in 2020. The terms are still being finalised but the tender will probably be launched in late February or early March, said Marion Lettry, assistant executive commissioner of trade body SER. Competitive tenders are being introduced as part of the transition to a market mechanism in place of the guaranteed premium purchase price, as required under EU guidelines on state aid. The new system came into effect on 1 January 2017, following a transition period in 2016. Under the new system, projects of fewer than six turbines will not go to tender but will be eligible for a top-up mechanism, similar to contracts for difference. The details are still being ironed out, but the government has proposed a reference price of EUR 72/MWh for turbines with rotor diameters over 100 metres, and EUR 74/MW for those with under 80 metres, with a sliding scale, and over a period of 20 years, instead of 15 years previously. After a certain number of production hours, depending on the rotor size and wind resource, the rate will fall to EUR 40/MWh for the remainder of the contract period. This is to allow for development of less windy sites and those where the air force imposes height restrictions, Lettry explained. In addition, producers will receive a "management premium" of EUR 2.8/MWh to compensate for the additional market-access costs. Saudi Arabia announces 400 MW tender and opens a pre-qualification stage Source: windpowermonthly.com Date: 3 February 2017 Saudi Arabia will launch a tender for 400 MW of wind power projects and 300 MW of solar, kicking off with a pre-qualification round on 20

th of February.

The early round will be followed by the main tender call in April, energy minister Khalid Al-Falih said. Aimed at private-sector investors, the wind power projects will be located in Tabuk province, in the northwest of the country. Successful candidates will sign power purchase agreements with the Saudi Electricity Company (SEC). While the tender terms have not yet been announced, the government expects it to attract some of the lowest prices in the world. The contract terms will be "motivating" and the projects will be of "a significant size", Al-Falih said. The announcement marks the start of Saudi's ambitious renewable energy programme, which is targeting 9.5GW installed capacity by 2023 as the country seeks to reduce its dependency on oil.

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Round I of Saudi Arabia's renewables programme coming in weeks Source: renewables.seenews.com Date: 16 January 2017 Saudi Arabia is preparing to release in the coming weeks its first tender for renewables as part of a programme targeting 9.5 GW of capacity, mainly wind and solar, energy minister Khalid Al-Falih said at an event today. Between USD 30 billion (EUR 28bn) and USD 50 billion will be invested in renewable energy and waste-to-energy projects in the country by 2023, the minister said at the World Future Energy Summit in Abu Dhabi, as cited by local media. He invited the global industry to come and participate in the first round of the renewables programme. As part of the renewables effort, Saudi Arabia intends to make it obligatory for developers to invest in the local supply chain, the National reported, quoting Khalid Al-Falih. The country is exploring options to trade green power in the future, with plans to interconnect with Jordan, Yemen and Egypt, and eventually Europe. Saudi Arabia is also proceeding with plans for two nuclear reactors of 2.8 GW in total. Thailand will launch 1 GW renewable tender in the second half of 2017 Source: enerdata.net Date: 26 December 2016 The Energy Regulatory Commission (ERC) of Thailand plans to open bidding for the development and operation of 1 GW of renewable power capacities in 2017. Solar, biomass-fired, biogas-fired and waste-to-power projects will be offered feed-in tariffs in the bidding round, with the first one for 519 MW of solar projects expected in the second half of 2017. Solar feed-in tariffs are expected to start at Baht 4.19/kWh (USD cents 11.6/kWh), slightly lower than the 2016 average of Baht 5.6/kWh (15.5v/kWh) thanks to declining construction costs. The ERC will also open bids for 400 MW of biomass-fired projects and for 63 MW of waste-to-power projects. According to the ERC, total renewable capacity in Thailand stood at 9,263 MW at the end of November 2016 (from 8,363 MW at the end of 2015, hydropower included), or 55% of the 16,778 MW renewable target set for 2036. Spain announces 3 GW renewables auction to take place in 2017 Source: climateactionprogramme.org Date: 6 January 2017 The Spanish government has announced plans to hold a new auction for renewable energy projects with a capacity of up to 3 GW, in 2017. The announcement came from Energy Minister Alvaro Nadal on 14

th if

December as he addressed the nation’s parliament. Nadal said that the 3 GW auction is required to guarantee Spain meeting its binding European Union target for 2020, requiring that 20% of final energy consumption be sourced from renewable sources. The Energy Ministry sent the proposal for the competitive tender to the nation’s regulator, which held a public consultation until 20 January. Detailed rules and start dates will be outlined in a later resolution, the Ministry said. Spain’s second clean energy tender – the country’s first auction took place last January – will see technologies compete with each other to secure as much as EUR 176 million in annual support. The successful projects will be required to start generating power by the end of 2019 as their output will be needed to meet Spain's target for 20% renewable energy in final energy consumption by 2020. The share of renewable energy sources in mainland Spain’s power mix was 40.8% in 2016, up from 36.9% a year ago, recent figures show.

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Brazil is working on revision of its renewable energy tender model due to the 2

nd year of economic recession

and falling electricity demand Source: renewables.seenews.com Date: 11 January 2017 Government representatives from Brazil's north-eastern states have met on Tuesday with the Minister of Mines and Energy to ask for new rounds of renewable energy auctions this year. During the meeting, minister Fernando Coelho Filho confirmed that the federal government is working on the revision of the current renewable energy tender model due to the second year of recession that the country is going through. The old model was based on a scenario in which the Brazilian economy would grow at a rate of 4.5% per year, which is no longer the case. According to the government of Pernambuco, one of the five that attended the meeting, the new auction plan should be completed by March, since the studies are already underway, with the possibility of a tender in the first half of the year. Last month, the Ministry of Mines and Energy officially cancelled the December 19 wind and solar reserve energy auction. Abeeolica president Elbia Gannoum warned at the time that this was an "almost a deadly blow" for the wind energy supply chain in the country. The tender had 1260 wind and solar energy projects registered to compete, with a combined capacity of 35,147 MW.

Feed-in/premium tariffs Indonesia introduces new FIT policy Source: thejakartapost.com Date: 13 February 2016 Additional materials:

The Energy and Mineral Resources Ministry Regulation No. 12/2007 [IN]; The Energy and Mineral Resources Ministry has recently issued the latest feed-in tariff (FIT) for renewable energy (RE). As one man’s disaster is another man’s delight, the new FIT makes some people happy, while others have worries. Unlike previously when each RE’s FIT was outlined in different regulations, the latest regulation covers all FITs for all types of RE into one regulation, the Energy and Mineral Resources Minister Decree (MD) No. 12 of 2017. MD No.12/2017 sets the FIT based on business-to-business (B2B) negotiation between independent power producers (IPPs) and state-owned electricity company PLN. The government stipulates the maximum FIT reference ranges from 85 percent up to equal to the regional PLN’s production cost (BPP). Currently the Java-Madura-Bali interconnection grid has the lowest BPP of around Rp 800 (six US cents) per kWh and Papua has the highest at around Rp 2,500, as compared to the national average BPP of Rp 1,400. As stipulated in MD No.12/2017, if the BPP in the project location is lower than the national average, the maximum price follows the regional BPP. On the contrary, if it is higher, the maximum price follows 85 percent of the regional BPP. As a result, eastern Indonesian regions (e.g. Papua, Maluku) will have higher FITs since their current BPPs are relatively higher compared to other areas in Indonesia. Given that the previous FITs were generally higher than the BPPs, the decree probably makes IPPs unhappy since it might threaten their business profitability. It should also be highlighted that naturally with IPPs having a lower bargaining position than PLN, the result of price negotiations will most likely favor PLN’s interest — as happened during 2006 to 2009.

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Introduction of a major feed-in tariff cut for large scale solar PV in Ukraine Source: lexology.com Date: 27 December 2016 On 22 December 2016 the Parliament adopted Draft Law No. 5129 “On Amendments to the Law of Ukraine “On Electricity”, registered on 15 September 2016 (the “Law”). The Law was duly approved by the Parliament and is now subject to the President’s signature. It is expected to come into force on 1 January 2017. The Law amends Ukraine’s renewable energy feed-in tariff by introducing a green tariff index (i.e. a coefficient applied to tariff levels, variable per technology and capacity of the plants affecting final remuneration levels for produced electricity). Introduction of the index effectively has reduced feed-in tariff levels for large scale solar PV plants (larger than 10 MW plant size), both for future and already existing plants and therefore the Law has a retroactive effect. Good interest in Egypt’s 2

nd FIT round despite previous tariff cuts and previous withdrawals

Source: dailynewsegypt.com Date: 12 January 2017 Thirty-one companies operating in the field of renewable energy are participating in the second phase of feed-in tariff (FIT) projects to establish solar and wind projects with a capacity of 1.8 GW and investments worth USD 3 billion. Sources in the Ministry of Electricity said that 23 companies will establish solar plants with a capacity of 1,295 megawatts: 970 MW in Banban, 180 MW in El-Zafarana, and 145 MW in West Nile. Also, eight companies are participating to establish wind farms with a total capacity of 550 MW in the Gulf of Suez.

Recent policy changes

OECD Europe on track to reach its 20% target by 2020 Source: europa.eu Date: 1 February 2017 According to a new report released by the European Commission, the European Union is on track to reach its 20% renewable target by 2020. Having achieved a share of 16% renewables in its final energy consumption in 2014 and an estimated share of close to 16.4% in 2015, the EU as a whole is well on track to reach its 20% target by 2020. However, Member States will have to keep up their efforts in order to reach their national goals. In 2014 all EU countries - except the Netherlands - had a renewable energy share which was equal to or higher than their indicative pathway. In 2015, 25 Member States exceeded their indicative pathways, with some even surpassing their 2020 targets. The EU as a whole has already achieved its 2020 final energy consumption target, along with its greenhouse gas (GHG) emission target: in 2015, EU GHG emissions were 22% below the 1990 level. Another important trend is that the EU continues to successfully decouple its economic growth from its GHG emissions: over the 1990-2015 period, the EU's combined Gross Domestic Product (GDP) grew by 50%, while total emissions decreased by 22%. By 2030, the European Union has set a target of at least 27% of renewables in energy consumption. Reaching this target would help reduce GHG emissions to meet the EU target of at least 40% GHG reduction by 2030.

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Sweden works on energy roadmap to achieve its 100% renewable energy production target Source: windpowermonthly.com Date: 16 January 2017 A roadmap to help Sweden achieve "100% renewable energy production by 2040" has been laid out by the country's parliamentary energy commission. Under the proposals, the scope of Sweden’s market-based support scheme of renewable electricity certificates will be extended to help increase income for energy producers in Sweden and Norway. Proposals also include reducing the tax burden on installation costs for offshore wind. These proposals are part of a raft of transformation plans for Sweden’s energy sector. The aim is to cut energy intensity by 50% by 2030, compared with 2005 levels. According to the parliamentary commission, this will put the country in line to achieve the proposed EU energy efficiency target of 30% in 2030. Scotland sets ambitious goal of 66% emissions cut within 15 years Source: theguardian.com Date: 19 January 2017 Scotland revealed a draft of its ambitious climate change plan. Scotland is seeking to dramatically cut its reliance on fossil fuels for cars, energy and homes after setting a radical target to cut total climate emissions by 66% within 15 years. In one of the world’s most ambitious climate strategies, ministers in Edinburgh have unveiled far tougher targets to increase the use of ultra-low-carbon cars, green electricity and green home heating by 2032. The Scottish government has set the far higher target after its original goal of cutting Scotland’s emissions by 42% by 2020 was met six years early – partly because climate change has seen winters which are warmer than normal, cutting emissions for home heating. The new strategy, which is expected to cost up to GBP 3bn a year to implement and is closely linked to a new renewable energy programme due to be published this month, will call for:

• 40% of all new cars and vans sold in Scotland to be ultra-low-emission by 2032, with 50% of Scotland’s buses to be low-carbon.

• A totally carbon-free electricity sector based entirely on renewable energy sources by 2032, when Scotland’s last nuclear power station will close.

• Four out of five of Scotland’s 2m homes to be heated using low-carbon technologies. • The repairing of 250,000 hectares of degraded peatlands, which store a total of 1.7 gigatonnes of CO2 in

Scotland. • At least 30% of Scotland’s vital publicly owned ferry fleet to be low-carbon, powered by hybrid engines.

New York targets 2.4 GW of offshore wind capacity by 2030 Source: governor.ny.gov Date: 10 January 2017 The governor of the state of New York (United States) has proposed to develop up to 2,400 MW of offshore wind capacity by 2030, to replace the 2,069 MW Indian Point nuclear power plant, whose closure by 2021 was announced earlier this month. The State of New York aims to harness its tremendous offshore wind potential to supply 50% of the state’s electricity from renewable energy resources by 2030. Final plans for offshore wind development will be completed by the end of 2017. The 2.4 GW capacity would be enough to supply 1.25 million households. It would include a first 90 MW project, to be built south-east of Montauk; this area could ultimately host up to 1 GW of capacity. Another project could add 800 MW off the Rockaway Peninsula in Queens. Other projects would be developed out of view from the coast. In December 2016, Norwegian energy group Statoil won a wind lease sale of 321 km² in offshore New York. The lease comprises an area that could potentially accommodate more than 1 GW of offshore wind, with a phased development expected to start with 400-600 MW.

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Denmark sets 0.9% advanced biofuels blending mandate for 2020 Source: biofuelsdigest.com Date: 18 December 2016 In Denmark, the national government has just decided on a 0,9% blending mandate for the use of advanced biofuels made from waste materials, i.e. straw. The mandate is to be effective by 2020 and will be applied to the transportation sector. “This is an ambitious and progressive decision taken today by the Danish government,” said Novozymes’ VP Biorefining Thomas Schrøder. “Together with conventional biofuels, advanced biofuels used in Danish vehicles are the most obvious way to reduce immediately C02 emissions from a sector, which accounts for 1/3 of all of the country’s emissions. By this agreement, Denmark has become a frontrunner – also with an advantage when the EU agrees on a longer-term mandate for advanced biofuels by 2030. The agreement sends a clear signal to the market and to investors; the technology for production of advanced biofuels is available today and the political framework now supports investments. It’s a good – green – day right before the holidays”. Queensland’s E3 mandate begun as of 1 January 2017 Source: biofuelsdigest.com Date: 29 December 2017 In Australia, the introduction of the Queensland Biofuel Mandate, on Jan. 1, is not only set to give consumers cleaner fuel choices at the pump but allow them to choose fuel made in Queensland, Australia. The mandate means liable fuel retailers will be required by law to ensure up to 3% of their total regular unleaded and ethanol-blended fuel sales each quarter are bio-based (ethanol) all of which are produced in Queensland’s towns of Sarina and Dalby.

Non-OECD China to launch green certificates for renewable power on 1

st July 2017

Source: reuters.com Date: 2 February 2017 China will launch the trading of green certificates for solar and wind power on 1

st of July in a bid to help reduce

government subsidies to the renewables sector, the National Development and Reform Commission (NDRC) said on Friday. In a pilot program, the NDRC said solar and wind producers would be issued tradeable certificates, proving that electricity has been generated through renewable energy sources. Renewable energy users such as private and state businesses would be encouraged to buy the certificates, which would then entitle them to an unspecified payment. Each certificate would represent 1 megawatt hour of power, the NDRC said. Solar and wind power producers who had sold their certificates would no longer receive a direct subsidy for electricity production, it said, without giving further details. The NDRC said it would monitor the pilot program and could launch a mandatory green certificate scheme in 2018. Renewable energy makes up about 11% of China's energy consumption, with producers granted heavy subsidies. China said last month it would cut the guaranteed subsidized prices (FIT) paid for electricity supplied to its national grid by newly built large-scale solar power plants and onshore wind turbines starting 1

st of

January. The NDRC said the change reflected the decreasing cost of renewable energy production and would reduce the burden of state investment in the sector.

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China released its 13th Ocean Energy Development Five Year Plan (2016-2020) Source: IEA/IRENA Policies and Measures Database for Renewable Energy Date: 31 January 2017 On 31

st of December State Oceanic Administration People’s Republic of China announced its China 13th Ocean

Energy Development Five Year Plan. China’s goal is to significantly improve development and utilisation of ocean energy by 2020. Deployment will be achieved through research and development (R&D), technological innovation, development and production of reliable and efficient equipment products and a gradual development of the ocean industry in China. China’s target is to reach 50 MW of cumulative ocean capacity by 2020. The United Arab Emirates approve UAE Energy Plan 2050 aiming to cover 44% of electricity consumption with renewables Source: moenr.gov.ae Date: 10 January 2017 The government of the United Arab Emirates (UAE) has approved the UAE Energy Plan 2050, aimed at cutting CO2 emissions by 70%, increasing the use of clean energies by 50% (renewables and nuclear) and improving energy efficiency by 40% by 2050. By 2050, the UAE aims to cover 44% of its energy consumption with renewables, with gas accounting for 38%, "clean fossil fuels" for 12% and nuclear for 6%. Currently, gas covers more than 90% of the country's energy mix. The UAE plans to invest Dh600bn (USD 163.3 bn) by 2050 to boost the integration of renewable, nuclear and clean fossil energy. The first reactor at the Barakah nuclear power plant is expected to be commissioned in 2017 and the plant, when fully operational, should cover 25% of the country's electricity consumption. The plan is based on an expected annual growth of 6%. In a previous long-term plan, the UAE planned to generate 30% of their electricity with clean sources. However, Dubai has posted more ambitious targets: the Emirate aims to cover 7% of its energy consumption with clean energy sources by 2020 and to raise this target to 25% by 2030 and 75% by 2050. UAE and Germany eye boosting co-operation on energy policy Source: moenr.gov.ae Date: 16 January 2017 Germany and the UAE signed a joint Declaration of Intent on cooperation in the fields of energy between the two countries. The declaration covers scientific exchange, governmental and expert workshops, industry meetings and mutual delegation visits. To strengthen cooperation in the energy sector between the two countries, Germany and the UAE will cooperate on issues such as frameworks for renewable energy technologies, energy efficiency, the development of the electricity market and research and development. Uganda’s president wants E10 blending mandate to become law within six months Source: biofuelsdigest.com Date: 24 January 2017 In Uganda, the president has directed the minister of industry to bring a proposal for a 10% ethanol blending law to Parliament for passage within six months in an effort to support domestic production. Kakira Sugar just inaugurated its USD 36.6 million ethanol production facility producing 60,000 liters per day. If the ethanol is sold at USD 1/liter, the country will save USD 20 million liters per year in foreign exchange from displaced imports. The president highlighted ethanol’s other uses beyond blending including as a cooking fuel that would help limit the 90,000ha of trees cut down for firewood and charcoal.

Climate/renewable financing German TSOs plan EUR 34-36 bn investment in power grids by 2030 Source: www.enerdata.net Date: 3 February 2017

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The four German power transmission system operators (TSOs) have published draft development plans through 2030 and 2035, estimating total investment costs at EUR 34-36bn by 2030, assuming that the DC-1, DC-3 and DC-5 HVDC transmission lines, with a cumulated capacity of 8 GW, are built as underground cables and including EUR 6bn for the start-up of the network. German TSOs plans to reinforce between 7,600 km and 8,500 km of existing cables and to build 3,800 km of new lines, including approximately 2,600 km of HVDC lines and around 1,200 km of AC lines. Around 330 km of direct current connections to Belgium, Denmark, Norway and Sweden should be built, with a total transmission capacity of 8 GW. Where offshore grid is concerned, nearly 2,800 km of offshore lines could be developed by 2030 (3,700 km by 2035), with a planned network capacity ranging from 7.4 GW in 2030 to 11.4 GW in 2035. Total investments would then near EUR 16 bn by 2030 and EUR 22 bn by 2035. Offshore wind costs fall 32% since 2011 Source: windpoweroffshore.com Date: 24 January 2017 The Cost Reduction Monitoring Framework 2016 report shows projects reaching a final investment decision in 2015-16 are achieving a levelised cost of energy of GBP 97/MWh (EUR 112/MWh). This compares to projects, which completed financing in 2010/11 with a LCOE of GBP 142/MWh (EUR 164/MWh) at 2011 prices. Offshore production costs have then met ahead of schedule the government's target of less than GBP 100/MWh by 2020 and are now closer to the GBP 92.5/MWh "strike price" awarded to EDF for its Hinkley Point C nuclear project. Since 2010, the United Kingdom has invested more than GBP 9.5 bn (EUR 11 bn) in offshore wind and another GBP 18 bn (EUR 20.8 bn) should be invested by 2021. Offshore wind is expected to be an important part of the British government's industrial strategy, as the country aims to cut its greenhouse gas (GHG) emissions from thermal power plants by 80% by 2050, compared to 1990 levels.

Deutsche Bank stops to provide any further loans for coal mining and new coal-fired power plant constructions Source: db.com Date: 31 January 2017 The bank has revised its approach to coal financing and amended its guidelines governing coal power and mining. Deutsche Bank and its subsidiaries will not grant new financing for greenfield thermal coal mining and new coal-fired power plant construction. Moreover, the bank will gradually reduce its existing exposure to the thermal coal mining sector. By signing the Paris Pledge for Action alongside over 400 private and public organizations, the bank has welcomed the universal climate agreement made at the 2015 Climate Summit in Paris. This emphasizes the bank’s commitment to protect the climate and to contribute to the overall targets set by the Paris Agreement to limit global warming to 2 degrees above pre-industrial levels.

Ireland voted to fully divest from fossil fuels over next five years Source: bignewsnetwork.com Date: 31 January 2017 Following a vote in the Parliament (Dail Eireann), Ireland is set to become the world’s first country to fully divest money from fossil fuels. The historic legislation was passed by members in a 90 to 53 vote in favour of the move. This will result in dropping investments in coal, oil and gas from the 8 billion euro Ireland Strategic Investment Fund. Thomas Pringle, Donegal Independent TD, proposed the bill which is set to become a law in months to follow. The law would compel the Ireland Strategic Investment Fund to sell its investments in fossil fuel industries.

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Obama pays USD 500 million to UN climate fund that Trump vows to cut off Source: bloomberg.com Date: 17 January 2017 Three days before leaving office, President Barack Obama made a USD 500 million contribution to a United Nations climate fund, part of a commitment under the Paris climate accord that Donald Trump has vowed to rescind. The U.S. has now contributed USD 1 billion to the Green Climate Fund to help poor nations develop clean energy and cope with the impact of global warming, according to a statement Tuesday from the U.S. State Department. The U.S. pledged to donate a total of USD 3 billion over four years to the fund when it helped broker the landmark Paris agreement in 2015. Trump has vowed to cancel future payments to the fund and redirect them toward projects in the U.S. The funding was approved last year through the 2016 Economic Support Fund appropriation. Trump’s transition team didn’t immediately respond to a request for comment. EU allocates EUR 4m for renewables in Colombia Source: renewables.seenews.com Date: 11 January 2017 The European Union (EU) will allocate up to EUR 4 million (USD 4.2 m) to support non-conventional renewable energy projects in Colombia, the local government said. The loan comes after the results of a study by the Development Bank of Latin America (CAF) on the use of new energy sources to mitigate the effects of climate change and how alternative energies can reduce the impact that the Colombian electric sector has on such matters. This initiative will allow CAF to create a financing mechanism to support clean technologies, which is expected to help offset 500,000 tons of carbon dioxide (CO2) by 2021, added CAF's Corporate Director of Environment and Climate Change, Ligia Castro. In addition to CAF, the German Development Bank (KfW) and the European Commission's Latin America Investment Facility (LAIF) worked together to develop this action for Colombia. The Asian Development Bank (ADB) approved a new USD 390 million financing package for Indian independent power producer ReNew Power to develop renewable energy projects in India Source: adb.org Date: 17 January 2017 As part of its efforts to scale up private sector-led infrastructure development in Asia and the Pacific and boost support for clean energy, the Asian Development Bank (ADB) approved a new USD 390 million financing package for ReNew Power to develop renewable energy projects in India. With the financing, ReNew Power will develop photovoltaic solar power projects with combined capacity of 398 MW in Jharkhand and Telangana, and wind power projects with combined capacity of 311 MW in Andhra Pradesh, Gujarat, Karnataka and Madhya Pradesh. Combined, the projects are expected to generate 1,400 GWh of electricity and help avoid nearly 1.2 million tons of carbon dioxide emissions per year. The plants will be commissioned by December 2017. The generated electricity will be supplied to respective state power distribution companies under long term power purchase agreements.

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Climate change/environmental news China demands emission cuts as year’s worst smog chokes Beijing Source: Bloomberg.com Date: 21 December 2016 China called for better coordination to cut emissions after a sixth day of heavy smog engulfed much of the northern part of the country and spurred the year’s highest alert. With the toxic haze shrouding the capital Beijing, coastal Tianjin, and surrounding Hebei province, the environmental protection ministry called for cities to coordinate anti-emission measures such as halting industrial production and banning vehicles from roads. Beijing’s red alert for air pollution was its first of this year, keeping schools closed. Better coordination is needed as "cities by themselves couldn’t control the smog,” the ministry said on its website. It said 27 northern municipalities have issued red pollution alerts, the highest on a four-tier scale, amid the second bout of serious smog this month. China halts over 100 coal power projects Source: reuters.com Date: 17 January 2017 China's energy regulator has ordered 11 provinces to stop more than 100 coal-fired power projects, with a combined installed capacity of more than 100 GW, its latest dramatic step to curb the use of fossil fuels in the world's top energy market. In a document issued on 14

th of January, financial media group Caixin reported, the National Energy

Administration (NEA) suspended the coal projects, some of which were already under construction. The projects worth some 430 billion yuan (USD 62 bn) were to have been spread across provinces and autonomous regions including Xinjiang, Inner Mongolia, Shanxi, Gansu, Ningxia, Qinghai, Shaanxi and other northwestern areas. Putting the power projects on hold is a major step towards the government's effort to produce power from renewable sources such as solar and wind, and wean the country off coal, which accounts for the majority of the nation's power supply.

China top coal province sets out consolidation plan Source: reuters.com Date: 8 January 2017 China's Shanxi province, the country's top coal producer, plans to cap output and consolidate the industry around big producers over the next four years in a bid to boost efficiency, according to a blueprint by the provincial government. The province's annual coal output would be capped by 2020 at 1 billion tonnes and capacity at 1.2 billion tonnes annually by 2020. Shanxi produced nearly 1 billion tonnes of coal in 2015.

UK to leave Euratom as a part of Brexit which might further delay construction of new nuclear power plants Source: theguardian.com Date: 27 January 2017 The British government has issued a white paper on its exit from the European Union and from the Euratom Treaty (1957), which provides the legal framework for civil nuclear power generation and radioactive waste management in the European Union. For the British nuclear sector, this withdrawal is the less favoured option and the Nuclear Industry Association (NIA) expects that the government will agree transitional arrangements, to give the United Kingdom time to negotiate and complete new agreements with EU member states and third countries including the US, Japan and Canada who have Nuclear Cooperation Agreements within the Euratom framework. Leaving Euratom might delay new nuclear projects developed by EDF Energy, Horizon Nuclear Power and NuGeneration.

DONG Energy to stop all use of coal by 2023 Source: dongenergy.com Date: 2 February 2017

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DONG Energy has decided that by 2023, coal will no longer be used as fuel at the company's power stations. The decision is a result of the company's vision to lead the way in the transformation to a sustainable energy system and to create a leading green energy company. Since 2006, DONG Energy has reduced its coal consumption by 73 per cent, and the company has now decided to entirely phase out the use of coal. By 2023, the use of coal as fuel at DONG Energy's power stations will have stopped completely. The power stations will be replacing coal with sustainable biomass.

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