On November 23rd, 2011, the International Energy Agency (IEA, Paris, France) announced the release of new report which states that a number of renewable energy technologies are increasingly becoming cost competitive with conventional solutions without subsidies across a range of circumstances.

The IEA’s "Deploying Renewables 2011: Best and Future Policy Practice" states that renewables are the fastest-growing sector of the global energy mix, reaching 19% of total power generation globally. The report estimates that the sector has grown 18% annually over the last five years, with global solar photovoltaic (PV) markets growing 50% annually.

"As the IEA’s analysis has shown, without an urgent and radical change of policy direction, the world will lock itself into an insecure, inefficient and high-carbon energy system," stated IEA Executive Director Maria Van der Hoeven.

"Renewables already play a central role in fostering sustainability and energy security, and their significance will only grow in the coming decades. Against this backdrop, Deploying Renewables 2011 provides a major review of renewable energy markets and policies at this critical juncture."

Photovoltaics (PV) are the fastest-growing renewable energy source

In the report, the IEA notes that growth in renewable energy markets has been limited to a few of the available technologies, and that rapid deployment is occurring in a relatively small number of nations. The report also notes that subsidies are currently still critical for continued deployment of renewables in many circumstances.

Among the circumstances where renewables have become cost-effective without subsidies, the IEA mentions the deployment of solar water heating in China, which holds more than half the world’s installed solar water heating capacity.

Feed-in tariffs are the most efficient renewable energy support policy

The IEA also states that in the more advanced markets, managing the costs of subsidizing integration of larger shares of renewables during the economic downturn and budget crises has been politically contentious.

The report builds upon and extends a 2008 IEA publication, providing a comprehensive review and analysis of renewable energy policy and market trends, as well as analyzing in detail the dynamics of deploying renewables.

Among the many findings of the report, the IEA notes that effectiveness of implementing similar policies can vary widely from nation to nation. However, the report finds that feed-in tariffs have on the average resulted in the deployment of more renewables for their cost than certificate systems.

Courtesy: International Energy Agency

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