IEA, Renewable Policy Updated, Issue 17, 11 January 2018

1

Renewable Policy Update

Based on the following sources: ADB, AfDB, Alberta.ca, All Africa, asahi.com, Biodiesel Magazine, Biofuels Digest, Bloomberg, BNAmericas,

BNEF, Cangea.ca, Cleantechnica, cpuc.ca.gov, EBRD, EDF, En.trend.az, Enerdata, ESI Africa, Europea.eu, Gov.scot, Iberdrola, IEA Press Intelligence, levemint.com, Lexology, PowerPhilippines.com, PV Magazine, PV

Tech, RenewablesNow, Reuters, SECI, Thehindubusinessline.com, ThinkGeoenergy, Timesofindia.indiatimes.com, Utilities-me.com, Utility Dive, Wind Power Monthly, Wind Power Offshore,

WindEurope, World Bank Contents

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

Brazil awards 674.5 MW of renewable capacity in its A-4 auction ................................................................ 3

Canada’s province (Alberta) REP Round 1 awards 600 MW of renewable capacity (Canada) ....................... 3

Malaysia awards 563 MW of solar PV in second such auction ....................................................................... 3

Germany awards further 1 GW of onshore wind capacity ............................................................................. 3

Chile power auction produces all-time low prices with strong renewable energy presence ......................... 4

Japan’s METI awards 140 MW in first PV auction (unofficial) ........................................................................ 4

Opened auctions ..................................................................................................................... 5

India launches three parallel solar PV auctions for 1.2 GW capacity ............................................................. 5

India's CEL releases tender for 120 MW of solar projects .............................................................................. 5

Oman launches tender for 500 MW solar plant ............................................................................................. 5

Singapore housing authority issues 50 MW rooftop solar tender .................................................................. 6

Scheduled/future auctions ..................................................................................................... 6

Brazil schedules an A-4 energy auction to take place in April 2018 ............................................................... 6

India to auction 5 GW offshore wind projects in 2018 ................................................................................... 6

France plans 200 MW joint wind and solar auction ....................................................................................... 6

New York to seek proposals for 800 MW offshore proposals in 2018 and 2019 ........................................... 7

Egypt to auction 500 MW of solar PV in the Q1 of 2018 ................................................................................ 7

Gujarat 500 MW wind auction put off again .................................................................................................. 7

Kazakhstan to hold renewable energy auction in 2018 .................................................................................. 7

Kosovo to open tenders for solar park projects soon - minister .................................................................... 7

Feed-in tariffs (FITs) ................................................................................................................... 8

China sets lower solar FIT rates for 2018........................................................................................................ 8

Philippines might extend biomass and run-of-river FIT for another three years for new projects ................ 8

Taiwan narrows solar FIT cut for H1 2018 and increases tariff for geothermal ............................................. 8

Wind FIT in Germany falls to EUR 73/MW in Q2 2018 ................................................................................... 8

Other renewable energy news .................................................................................................. 9

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

The European Commission approved Greek renewable energy auction ....................................................... 9

The European Commission approved Polish renewable energy support scheme ......................................... 9

The European Commission approved Spanish support scheme for renewable electricity ............................ 9

IEA, Renewable Policy Updated, Issue 17, 11 January 2018

2

Scotland unveils energy strategy with 50% of renewables by 2030............................................................... 9

Belgium agrees on a EUR 79/MWh LCOE for three offshore wind parks ..................................................... 10

France scraps 2025 target to cut nuclear share to 50% of its power mix..................................................... 10

France reduces grid fees for residential and commercial PV ....................................................................... 10

French EDF launches 30 GW by 2035 solar PV plan ..................................................................................... 11

Hungary grants one year grace period for PV projects under FIT scheme ................................................... 11

Norway achieves 20% blending mandate early ............................................................................................ 11

Norway to go ahead with demonstration floating offshore wind plants ..................................................... 11

Geothermal receives tax and financial support in new budget legislation in Canada .................................. 11

California reached its 2020 renewable targets and is on a path to reach its 2030 target ahead of time via the RPS .......................................................................................................................................................... 12

Switzerland to replace FITs with solar rebates in 2018 ................................................................................ 12

Slovakia’s Green Houses Program has EUR 13 million budget in 2018 ........................................................ 12

South Korea finalizes energy plan to boost renewable power generation .................................................. 12

Non-OECD ............................................................................................................................. 13

China unveils 5-Year Plan to clean up heating with geothermal energy in the north of the country .......... 13

India to launch second tender to 10 000 EVs in March 2018 for the governmental fleet ........................... 13

India plans “rent a roof” policy in solar push ............................................................................................... 13

Indonesia to extend biodiesel subsidy to mining sector in 2018 .................................................................. 13

Brazil signs national biofuels policy into law ................................................................................................ 14

Kuwait aims for 15% renewable energy target by 2030 ............................................................................... 14

Romania to introduce net metering for solar up to 100 kW ........................................................................ 14

Pakistan updated its net metering scheme and unveiled clean energy investment program ..................... 15

Uganda issues tender to bring off-grid solar to schools in seven regions .................................................... 15

Renewable energy finance ....................................................................................................... 15

First EBRD loan under new EUR 350 million green facility for Poland .......................................................... 15

EBRD supports Turkish renewable projects with USD 85 million loan to TSKB ............................................ 15

International Solar Alliance to offer USD 1 billion guarantee for solar projects .......................................... 16

German Development Bank sets up EUR 33 million credit facility to support renewables in Africa ........... 16

Climate change/environmental news ...................................................................................... 16

India advances launch of Euro-VI fuels for smog-hit Delhi ........................................................................... 16

Iberdrola announces the complete closure of its coal-fired power capacity ............................................... 16

Norway's USD 1 trillion wealth fund proposes to drop oil, gas stocks from index ....................................... 16

IEA, Renewable Policy Updated, Issue 17, 11 January 2018

3

Concluded auctions Brazil awards 674.5 MW of renewable capacity in its A-4 auction Source: ccee.org.br Date: 18 December 2017 On 18 December the Brazilian Electric Energy Trading Board (CCEE) announced results of its 25

th new energy

auction procuring projects scheduled to come online by 2021. Twenty five renewable energy projects, representing cumulatively 674.5 MW of capacity, were awarded 20-year long contracts. Almost 50% of the awarded capacity went to solar PV projects with wind securing only 64 MW.

Technology Capacity (MW) Average price achieved (BRL/MWh)

Solar PV 574 145.92

Bioenergy 25 234.92

Hydropower 11.5 181.63

Onshore wind 64 108

Canada’s province (Alberta) REP Round 1 awards 600 MW of renewable capacity (Canada) Source: alberta.ca Date: 13 December 2017 Further reading:

Announcement by Alberta Electric System Operator (AESO) available here and here; On 13 of December 2017, the Government of Alberta announced the results of its first round of the Renewable Electricity Program (REP). The auction successfully delivered nearly 600 MW of wind generation at a weighted average bid price of CAD 37/MWh – setting a new record in Canada for the lowest renewable electricity pricing. The range of winning bid prices was wide, from CAD 30.90/MWh to CAD 43.30/MWh. Capacity was awarded to six companies including Enel Green Power. Winning proposals will be awarded with long-term contract of 20 years. Overall, the REP program will support the development of 5 GW of renewable electricity capacity to reach a target of 30% renewable energy by 2030 by Alberta. Malaysia awards 563 MW of solar PV in second such auction Source: pv-tech.org Date: 8 December 2017 Additional information:

List of shortlisted projects available here;

PV-Magazine; The Energy Commission of Malaysia (EC) has released the list of winning developers in its second Large-Scale Solar (LSS) tender round, offering roughly 563 MW of capacity. The tender was originally only for 460 MW, but it was heavily oversubscribed and therefore capacity offered was increased. The selection of the bidders was based on the most competitive prices offered, which also met all the RfP requirements. Bids ranged from 0.33 to 0.53 ringgit (USD 0.08-0.12)/kWh, with participants competing for 460 MW of capacity. Listed winning projects must be operational between 2019 and 2020. Germany awards further 1 GW of onshore wind capacity Source: reuters.com Date: 22 November 2017 Further reading:

Press release by The Federal Network Agency available here [DE]; Germany has awarded 1 GW of onshore wind capacity in its third auction this year. Auction was heavily oversubscribed with 210 bid submissions received representing 2.6 GW. Almost entirety of the auctioned capacity was awarded to the community projects. The competitive pressure led to falling bid values; the average quantity-weighted bid value in this round stood at EUR cents 4.02/kWh, below prices reached in the second round EUR cents 4.29/kWh. Selected projects must be commissioned by 2021.

IEA, Renewable Policy Updated, Issue 17, 11 January 2018

4

Chile power auction produces all-time low prices with strong renewable energy presence Source: bnamericas.com Date: 2 November 2017 Chile's electric power auction saw prices pushed down to a record low of USD 32.5/MWh on Thursday. The price is 75% lower compared with 2013 levels, according to the national energy commission (CNE). A total of 24 bidders participated in the auction, which put 2 200 GWh/y of power supply out to tender. Enel Generación Chile was awarded 1 180 Wh/y, which represents 54% of the total power auctioned, while Energía Renovable Verano Tres won 540 Wh/y (25%) and Atacama Solar 220 Wh/y (10%). Cox Energía secured 140 Wh/y (6%) and Atacama Energy Holdings 120 Wh/y (5%). Japan’s METI awards 140 MW in first PV auction (unofficial) Source: pv-magazine.com Date: 22 November 2017 Japan’s Ministry of Economy, Trade and Industry (METI) has awarded 140 MW of solar capacity to eight companies across nine locations, with the lowest bid coming in at JPY 17.2 (USD 0.15)/kWh, according to a local media report. Given that METI has yet to issue a press release the news must be approached with a degree of caution. METI plans to hold two bidding rounds per year from fiscal 2018. The government approved plans to move forward with solar auctions in early 2016, as part of efforts to phase out the FIT scheme it launched in July 2012 at an initial rate of JPY 40/kWh.

IEA, Renewable Policy Updated, Issue 17, 11 January 2018

5

Opened auctions India launches three parallel solar PV auctions for 1.2 GW capacity Source: seci.co.in Date: 4 and 5 January 2018 Additional resources:

Launched on 5th

January - Request for Selection (RfS) proposals for 200 MW solar PV projects in Pavagada Solar Park, Karnataka (NSM PH-II, Batch-IV) available here;

Launched on 5th

January - Request for Selection (RfS) proposals for 750 MW solar PV projects in Kadapa Solar Park, Andhra Pradesh (NSM PH-II, Batch-IV) available here;

Launched on 4th

January Request for Selection (RfS) proposals for 275 MW grid connected solar PV projects in Uttar Pradesh Solar Park (NSM PH-II, Batch-IV) available here;

In the first week of January 2018, the Solar Energy Corporation of India (SECI) launched three parallel auctions for a cumulative size of 1225 MW solar PV capacity. The three auctions are to procure projects in Karnataka, Andhra Pradesh and Uttar Pradesh states of India. Selected projects will receive 25-year long contracts to sell electricity to SECI. Winners will receive the “Build-Own-Operate” (BOO) contracts. Auctions are organised under The National Solar Mission programme – a governmental plan to speed up uptake of the solar PV in India through a suitable policy frameworks. One of the principal goals of the Mission is to install 100 GW of grid-connected solar PV projects by 2022 under its umbrella. The maximum tariff payable to the project developer is fixed at Rs. 2.93/ kWh for projects selected in Pavagada Solar Park and in Kadapa Solar Park. The tariff for the projects in Uttar Pradesh Solar Park is capped at Rs.3.43/ kWh. In the 750 MW auction for Kadapa Solar Park SECI looks to contract three projects, each of 250 MW size. In the 275 MW auction for Uttar Pradesh Solar Park projects SECI aims to contract six projects between 20 MW and 75 MW size each in Kanpur Dehat and Jalaun districts. Projects already commissioned are not allowed to participate in the auctions. All selected projects must be commissioned within 13 months of the effective day of signed power purchase agreement (PPA) between selected developers and the SECI. In estimation, projects awarded through these auctions should come online between end of 2019 and early 2020 depending on the administrative procedures around the auction and timing of the PPA signing. In case of delays in commissioning developers will be subjected to the financial penalties. SECI previewed different severity of penalties corresponding to 1 month delay, delay between 2 and 3 months, delay over 3 months and delay between 3 and 24 months. India's CEL releases tender for 120 MW of solar projects Source: renewablesnow.com Date: 2 January 2018 Central Electronics Ltd (CEL), a government of India enterprise, has launched a tender for 120 MW of grid-connected solar capacity. According to the tender document, published at the end of December, the company is inviting bids for the construction of solar power plants ranging from 500 kW to 3 MW in size to be located across the states of Gujarat, Telengana and Maharashtra. Bids from eligible participants are due by January 17. CEL will supply photovoltaic (PV) of at least 300 W and inverters. The tender covers the design, engineering, procurement and supply of equipment and materials, excluding the solar modules, construction, testing and commissioning of the solar plants, as well as 25 years of operation and maintenance (O&M). The installations should be completed in 180 days from the issuance of the purchase order. Oman launches tender for 500 MW solar plant Source: pv-magazine.com Date: 2 January 2018 The Oman Power and Water Procurement company (OPWP) has issued a request for qualification (RFQ) to select developers interested in building a 500 MW solar PV project in Oman. The project, which will be the country’s first large utility-scale PV independent power project (IPP), will be

IEA, Renewable Policy Updated, Issue 17, 11 January 2018

6

located in Ibri, around 300 km west from Muscat, and will be built at an estimated cost of around USD 500 million. OPWP said the RFQ is formally available for purchase until January 18, and that interested developers will have to submit their requests for qualification by February 22. Additionally, the OPWP is planning to tender and build further solar plants up to 2024. All of these projects are part of the Oman’s government plan to add around 4 GW of renewable generation capacity by 2030. Singapore housing authority issues 50 MW rooftop solar tender Source: pv-tech.org Date: 2 October 2017 Singapore’s Housing and Development Board (HBD) has issued its largest rooftop solar tender to date for 50 MW of capacity across its own and other government sites. The tender is HDB’s largest to date and it comes under the SolarNova programme, led jointly by HDB and the Singapore Economic Development Board (EDB). Systems are to be installed across 848 HDB blocks and 27 government sites. Previous SolarNova tenders were 40 MW each with just four government agencies are involved, but the latest brings another four under its scope. The full eight are: HDB, the Ministry of Home Affairs (MHA), Ministry of Education (MOE) and National Environment Agency (NEA), Building & Construction Authority (BCA), Institute of Technical Education (ITE), National Heritage Board (NHB) and Sport Singapore (SportSG). The tender closes on 31 January 2018, and is due to be awarded in Q2 next year. The systems are expected to be installed by Q2 in 2020.

Scheduled/future auctions Brazil schedules an A-4 energy auction to take place in April 2018 Source: bnamericas.com Date: 4 December 2017 Brazil's government has scheduled the new A-4 energy auction for April 4, 2018, with supply to start as of January 2022, the mining and energy ministry said. The tender will trade electric power commercialization contracts with a 30-year supply term for hydroelectric undertakings and a 20-year term for biomass, wind and solar power projects. According to the ministry, the wind power projects will be allowed to import wind generators with a nominal potency of at least 2.5 MW. The new energy auctions are designed to contract electric power supply from plants in the project phase or already under construction. India to auction 5 GW offshore wind projects in 2018 Source: timesofindia.indiatimes.com Date: 14 December 2017 The Ministry of Power and New & Renewable Energy announced that the government plans to auction 5 GW offshore wind power capacities in 2018. The proposed bidding would be the first in the offshore wind power category in India. France plans 200 MW joint wind and solar auction Source: pv-magazine.com Date: 17 November 2017 The French government, which has so far held separate auctions for the two leading renewable energy technologies, said joint tenders will help further reduce costs. The first auction will be open to projects not larger than 18 MW.

IEA, Renewable Policy Updated, Issue 17, 11 January 2018

7

New York to seek proposals for 800 MW offshore proposals in 2018 and 2019 Source: windpoweroffshore.com Date: 3 January 2017 New York State will hold two requests for proposals (RFPs) in 2018 and 2019 to procure at least 800 MW of offshore wind, governor Andrew Cuomo announced. The solicitations will be the first in a set schedule to reach the state’s target of up to 2.4 GW of offshore wind capacity by 2030, set by Cuomo last year. It is as-yet unclear how much capacity will be tendered in each RFP. New York State Energy Research and Development Authority (NYSERDA) will also be directed to invest USD 15 million in training workers for jobs in clean energy, including offshore wind construction, installation, operation, maintenance, design and associated infrastructure. It was also announced that NYSERDA would work with other state agencies to research public and private offshore wind port infrastructure investments. Egypt to auction 500 MW of solar PV in the Q1 of 2018 Source: esi-africa.com Date: 7 December 2017 Egypt’s ministry of power will offer tenders in the first quarter of 2018 for the development of solar power plants with a cumulative capacity of 500 MW. Local and international companies presented their offers to the New and Renewable Energy Authority (NREA) and the Egyptian Electricity Transmission Company (EETC) to establish 100-200 MW solar power plants. However, investors were told to submit their bids as competitive tenders. Gujarat 500 MW wind auction put off again Source: economictimes.indiatimes.com Date: 16 November 2017 Gujarat’s first wind auction scheduled for 15

th of November has been put off once again. Reason for

postponing the auction was not officially released but can be attributed to the strong opposition to the auction from the Indian Wind Energy Association (IWEA) moving their case to the Supreme Court. If the Court will admit IWEA’s petition, than the auction will be suspended indefinitely. Originally, auction was scheduled to take place on 1

st of November but had to be postponed after IWEA filed a

petition against it in the Gujarat High Court and the court responded by issuing an interim stay on the auction proceedings. Kazakhstan to hold renewable energy auction in 2018 Source: en.trend.az Date: 31 October 2017 Kazakhstan plans to hold the first green energy auction in 2018 to purchase energy generated from Renewable Energy Sources (RES), said Kazakh Energy Minister Kanat Bozumbayev. The minister mentioned that Kazakhstan has agreements with international financial institutions on allocating funds for development of renewable energy sector in the country. In particular the European Bank for Reconstruction and Development will allocate EUR 200 million to renewable energy projects in Kazakhstan. No further details were revealed. Kosovo to open tenders for solar park projects soon - minister Source: renewablesnow.com Date: 3 November 2017 Kosovo will soon start calling tenders for construction of photovoltaic (PV) parks, the ministry of economic development has said. The approximate total value of investment in solar power plant projects expected to be submitted in those tenders is EUR 100 million (USD 116 million), Kosovo minister of economic development Valdrin Lluka said in a statement on 2 November.

IEA, Renewable Policy Updated, Issue 17, 11 January 2018

8

Feed-in tariffs (FITs) China sets lower solar FIT rates for 2018 Source: pv-magazine.com Date: 22 December 2017 The Chinese government has revealed its new feed-in tariffs (FIT) for different types of PV projects, with rates set to fall by as much as 15% from the start of January. Utility-scale PV projects that are located in China’s Class 1 solar resource region will qualify for a new FIT rate of CNY 0.55/kWh, said the National Development and Reform Commission (NDRC) this week. Installations in the country’s Class 2 and 3 regions will be eligible for revised FIT rates of CNY 0.65/kWh and CNY 0.75/kWh, respectively. The NDRC said that the new rate for distributed-generation (DG) solar projects will be CNY 0.37/kWh, which is about CNY 0.05/kWh lower than the current rate. However, the FIT rate will remain the same for all solar projects built under the Chinese government’s program to alleviate poverty in rural areas, at CNY 0.42/kWh. Philippines might extend biomass and run-of-river FIT for another three years for new projects Source: powerphilippines.com Date: 5 January 2018 OE undersecretary Felix Fuentebella said that a draft for the FIT allocation extension was submitted for signing by Secretary Alfonso Cusi. “We’re looking at three years or until the capacity for run-of-river hydro or biomass is filled up, whichever comes first,” he said. Should the extension be approved, developers can fill the remaining allocation for biomass and run-of-river plants until 2020. Taiwan narrows solar FIT cut for H1 2018 and increases tariff for geothermal Source: pv-magazine.com Date: 18 December 2017 Solar PV: Taiwan’s Ministry of Economic Affairs will limit the nation’s solar FIT cut to NT$ 5.8744 (USD 0.20 cents/kWh) in the first half (H1) of 2018 as the government seeks to speed up the pace of solar PV deployment on the island. This rate is some 9% higher than that initially proposed in September, when the ministry first announced that the FIT would decline from its current rate of NT$ 6.1033 (USD 0.21/kWh) to NT$ 5.3848/kWh. This reduced cut is for solar installations below 20 MW, and so cover Taiwan’s entire rooftop portfolio. For other installations such as ground-mount and floating solar, the FIT will be between NT$ 4.2429 and NT$ 4.6901/kWh as of next year, representing cuts in the range of 3.79% and 5.8% from current levels, the ministry confirmed. System owners that participate in Taiwan’s government-backed green rooftop program will receive NT$ 6.4/kWh if they install or adopt high efficiency solar panels. Geothermal: In order to accelerate geothermal development, the Ministry of Economic Affairs has increased the feed-in tariff to NT$ 6.1710 ($0.206/ kWh) from the proposed NT$ 5.6447 (USD 0.188/ kWh) for the first 10 years of the installations’ subsidiary period, it said, adding that the new tariff aims to help operators reduce their initial risk. The tariff will drop to NT$ 3.5685 (USD 0.119/ kWh) per unit for the remaining 10 years of the 20 year subsidiary period according to reporting by ThinkGeoenergy. Wind FIT in Germany falls to EUR 73/MW in Q2 2018 Source: renewablesnow.com Date: 5 December 2017 The fixed preferential tariff for new onshore wind capacity built outside tenders in Germany will be EUR 73.1 (USD 86.7) per MWh for wind farms coming online between April 1 and June 30, 2018. This is a decrease of 2.4% from the rate for the first quarter of 2018 as installations over the 12 months to October 2017 were significantly above the government-set corridor. The Federal Network Agency (Bundesnetzagetur) said Friday onshore wind deployment topped 5.5 GW in these 12 months, triggering the steepest level of feed-in tariff (FIT) degression. The tariffs for wind power outside tenders are adjusted quarterly and apply for projects that have secured approval before the end of 2016. These can be realised in 2017 and 2018.

IEA, Renewable Policy Updated, Issue 17, 11 January 2018

9

Other renewable energy news

OECD The European Commission approved Greek renewable energy auction Source: europa.eu Date: 4 January 2018 The European Commission has found a Greek auction scheme for the production of electricity from renewable sources and high efficiency cogeneration to be in line with EU State aid rules. The scheme will further EU energy and climate goals whilst preserving competition. Under the scheme Greece will organise regular, competitive auctions to grant support to renewable energy sources:

In 2018, Greece will organise separate auctions for wind and solar installations in order to determine their market potential.

As of 2019, joint auctions for both wind and solar installations will be held to increase competition and reduce the cost for consumers of renewable energy in Greece.

The European Commission approved Polish renewable energy support scheme Source: europa.eu Date: 13 December 2017 The European Commission approved under EU State aid rules a Polish renewable energy scheme and a reduced levy to finance the scheme for energy-intensive users. This will further EU energy and climate goals and ensure the global competitiveness of energy-intensive users whilst preserving competition. The scheme, with a total budget of PLN 40 billion (around EUR 9.4 billion), will grant State support to producers of electricity from renewable sources. Beneficiaries will be selected by means of competitive auctions. The first two rounds took place in December 2016 and June 2017 and additional auctions will be organised until 30 June 2021. Under the scheme:

Small installations with a capacity of up to 500 kW can benefit from a feed-in tariff.

Installations with a capacity of more than 500 kW will receive a premium on top of the market price of electricity, so that they have to respond to market signals. Beneficiaries will only receive the premium if, in the coming years, the market price of electricity is below the bidding price submitted in the auction. This premium is meant to help these facilities to compensate for costs that cannot be recovered from selling electricity in the market, and so obtain a reasonable return on investment.

The European Commission approved Spanish support scheme for renewable electricity Source: europa.eu Date: 10 November 2017 The European Commission has found the Spanish scheme supporting electricity generation from renewable energy sources, high efficiency cogeneration of heat and power and waste to be in line with EU State aid rules. Under the scheme, beneficiaries receive support through a premium on top of the market price of electricity, so that they have to respond to market signals. This premium is meant to help these facilities compensate for costs that cannot be recovered from selling electricity in the market, and obtain a reasonable return on investment. The scheme has been in place since 2014 and applies to new beneficiaries as well as to facilities that were benefitting from previous support. In total, the scheme has around 40 000 beneficiaries. In 2016, the annual payments under the scheme amounted to EUR 6.4 billion. Since 2016, support to new facilities is granted through competitive auctions. Different technologies have competed with each other in the latest auctions of May 2017 and July 2017. In total, support for capacity of slightly more than 8 GW was awarded, essentially to wind and solar panel plants. As a result of these auctions, beneficiaries will receive compensation only if, in the coming years, the market price drops to a level significantly below today's market prices. Scotland unveils energy strategy with 50% of renewables by 2030 Source: gov.scot Date: 21 December 2017 The Scottish government published its first energy strategy brining country to 2050. The strategy is based on six strategic priorities including developing renewable energies, improving energy efficiency and supporting

IEA, Renewable Policy Updated, Issue 17, 11 January 2018

10

investment and innovation across the oil and gas sector. Scotland aims to cover 50% of its electricity, transport and heat consumption with renewables by 2030 exploiting its onshore and offshore wind potential. Belgium agrees on a EUR 79/MWh LCOE for three offshore wind parks Source: enerdata.net Date: 31 October 2017 The Belgian authorities have agreed on a new applicable support scheme (green certificate) for the 224 MW Northwester-2, 246 MW Mermaid and 246 MW Seastar offshore wind projects with their respective project developers. An updated levelised cost of electricity (LCOE) of EUR 79/MWh has been negotiated for the three projects, which represents a significant subsidy reduction compared with the 2016 LCOE of EUR 138/MWh for the C-Power, Belwind, Northwind and Nobelwind offshore wind projects. This figure is also higher than the previous benchmark of EUR 66-76/MWh announced a few months ago. From now on, the government will support the projects over 16 years with an option to extend it for one year in case of poor wind conditions. The projects were threatened of cancellations because the subsidies were labelled as too high by the Belgian government. With the new EUR 79/MWh scheme, the total savings are estimated at EUR 3.9bn, which is approximately EUR 11/year on the average consumer electricity bill. Belgium intends to decrease the amount of subsidies for the offshore wind industry, a trend similar to other European countries such as Germany and the United Kingdom. Back in 2016, the Belgian authorities decreased the amount of support for the 296 MW Rentel and 350 Norther offshore wind parks by EUR 1.1bn. The offshore wind project developer Parkwind expects the 224 MW Northwester-2 offshore wind park (Belgium) to reach financial close in 2018 and construction by 2020. Parkwind will run the Northwester-2 facility with a 46% interest, while Colruyt owns 30%, Incontrol 14% and TTR 10%. France scraps 2025 target to cut nuclear share to 50% of its power mix Source: enerdata.com Date: 8 November 2017 The French government (through the Ministère de la Transition écologique et solidaire) has backed down its commitments to sharply reduce nuclear power production and has abandoned the target of reducing the share of nuclear in the power mix to 50% by 2025 from the current 75%, estimating that this objective was no longer realistic. According to new scenarios by French electricity transmission system operator RTE released just before this announcement, reducing the share of nuclear to 50% of the power mix in 2025 would mean shutting down 22 GW of nuclear capacity. France would then have to postpone the closure of coal-fired power plants and would have to build 11 GW of new gas-fired capacity, boosting CO2 emissions. Under one of the four scenarios, France may cut nuclear capacity by 14.5 GW and reach 50% of nuclear in the power mix by 2030, i.e. five years later than planned. The government has reaffirmed it remains committed to reducing nuclear energy but no new deadline has been set so far. France reduces grid fees for residential and commercial PV Source: pv-magazine.com Date: 6 December 2017 France’s Ministry Of Ecological and Solidary Transition (MTES) has issued a new decree that introduces a significant reduction of the grid fees for renewable energy power generators with a capacity of up to 5 MW. According to the new provisions, which came into effect on December 4, the grid fee for PV installations not exceeding 100 kVa will be lowered by 40%, while those for solar power generators ranging in size from 100 kVa to 5 MW will be lowered between zero to 40% depending on the project size. The fee reduction will be applied to all PV projects, including installations under self-consumption and projects selected in the government’s tenders.

IEA, Renewable Policy Updated, Issue 17, 11 January 2018

11

French EDF launches 30 GW by 2035 solar PV plan Source: edf.fr Date: 11 December 2017 Over the period of 2020 to 2035, the EDF Group – through its subsidiary EDF Energies Nouvelles – intends to develop and build solar plants in France totalling 30 GW of installed capacity, in addition to its other renewables development initiatives in France and worldwide. This volume is four times greater than France’s current solar energy capacity. This ambition is aligned with the government’s goal of rebalancing France’s energy mix through the massive expansion of renewable energy capacity across the country. EDF’s Solar Power Plan is also expected to create tens of thousands of jobs in France during the construction period. Hungary grants one year grace period for PV projects under FIT scheme Source: pv-magazine.com Date: 20 November 2017 The Hungarian government has updated the Decree 389/2007, which regulates the support for renewable energies, to allow around 2 GW of projects approved under the FIT program to see completion by the end of 2018, although the incentive scheme was closed in mid-2016. All approved projects have a new deadline to complete projects, end of 2018, in order to still benefit the FIT at an average rate of HUF 31 (USD 0.10)/kWh for a 12-15 year period by local utility Mavir. The projects that will be connected to the grid in 2018 with delay (beyond 2017), however, will see the length of the support period reduced by 10%. Norway achieves 20% blending mandate early Source: biofuelsdigest.com Date: 26 December 2017 In Norway, the government’s 20% biofuel by 2020 policy was already reached in 2017, well ahead of the 8% planned for 2017 and 10% for 2018. As of the end of September, 21% of fuel sold was biofuel. Last year also saw the target far beyond the expected levels, reaching 14% against the 5.5% mandated. Increased biofuel blending is helping to reduce the carbon intensity of transportation, with 2016 carbon emissions falling 3.6% from the year prior. Norway to go ahead with demonstration floating offshore wind plants Source: enerdata.net Date: 14 December 2017 The Norwegian Ministry of Petroleum and Energy plans to open one or two areas for marine renewable energy production in order to facilitate floating wind power demonstration projects. Enova, an entity owned by the Ministry and in charge of the development of new energy solutions, is currently providing support for such projects and the Norwegian Water Resources and Energy Directorate (NVE) has identified five potential areas suitable for their development. Besides, the Ministry believes that the country's oil and gas-related expertise can play a role in the development of floating wind power. Geothermal receives tax and financial support in new budget legislation in Canada Source: cangea.ca Date: 19 December 2017 Additional resources:

Bill C-63 is accessible here; Bill C-63, A second Act to implement certain provisions of the budget tabled in Parliament on March 22, 2017 and other measures has received royal assent and is now law. CanGEA's Federal government outreach efforts proved fruitful in that:

Accelerated capital cost allowance has been extended to a broader range of geothermal projects and expenses (including eligibility for transmission equipment expenses).

The range of geothermal energy project expenses that are eligible as Canadian renewable and conservation expenses, which can be fully deducted in the year incurred.

Geothermal projects can claim exploration wells and flow-through shares for all project types as well as other heat transfer equipment.

The changes above represent major policy victories for CanGEA in 2017, as they are a direct result of CanGEA's federal government outreach efforts.

IEA, Renewable Policy Updated, Issue 17, 11 January 2018

12

California reached its 2020 renewable targets and is on a path to reach its 2030 target ahead of time via the RPS Source: cpuc.ca.gov Date: 13 November 2017 The California Public Utilities Commission (CPUC) released its annual Renewables Portfolio Standard (RPS) report showing that the program, which is one of the most ambitious in the country, is ahead of the target. The state’s RPS requires investor-owned utilities, electric service providers, and community choice aggregators to procure 33 % of retail sales per year from eligible renewable sources by 2020 and 50% by 2030. As of 2017, the large investor-owned utilities surpassed the interim targets and have sufficient resources under development to exceed the 33% by 2020 RPS. Switzerland to replace FITs with solar rebates in 2018 Source: .pv-magazine.com Date: 6 December 2017 Switzerland’s regulatory framework for the promotion of PV will change starting in 2018. According to the Swiss Photovoltaic Association Swissolar, the current FIT scheme (KEV) for residential and commercial PV will be replaced with a rebate scheme (EIV). From 2018, FITs will be paid only to projects that were registered for a FIT contract before mid-2012. All other PV systems will be funded through the EIV, which will guarantee a maximum of 30% of the investment costs, according to Swissolar. With these new provisions, the number of supported projects could considerably increase. So far, the investment subsidy has been paid only for PV systems not exceeding 30 kW in size. Slovakia’s Green Houses Program has EUR 13 million budget in 2018 Source: pv-magazine.com Date: 6 December 2017 The Slovak government has allocated EUR 13 million in funds for the incentive scheme for residential renewable energy systems. According to the Slovak Association of Photovoltaic Industry (SAPI), two separate windows for project applications will be opened in 2018, with the first round being called somewhere between January and February. The official dates of the rounds will be published by the end of this year. The scheme grants incentives for the installation of solar water heaters, PV systems up to 10 kW, heat pumps and small windmills. South Korea finalizes energy plan to boost renewable power generation Source: reuters.com Date: 29 December 2017 The plan is largely unchanged from a draft released earlier this month that outlined the gradual reduction in use of coal and nuclear fuel as the usage of gas and renewables for power generation increased over 2017-2031. South Korea plans to meet 20% of its total electricity consumption with renewables by 2030.To achieve that goal, Asia’s fourth-largest economy aims to increase its installed capacity of renewable power to 58.5 GW by 2030, from 11.3 GW this year. At the end of December 2017, the Korean energy ministry said the plan called for adding 30.8 GW of solar power generating capacity and 16.5 GW of wind power capacity. South Korea now generates more than 70% of its power from coal and nuclear, while renewables account for 6%. Under the plan, coal’s share of power generation will fall to 36.1% in 2030 and nuclear to 23.9%, but the sectors will still make up more than half of the country’s total power generation at the end of the next decade.

IEA, Renewable Policy Updated, Issue 17, 11 January 2018

13

Non-OECD China unveils 5-Year Plan to clean up heating with geothermal energy in the north of the country Source: asahi.com Date: 17 December 2017 China announced on Sunday a five-year plan to convert northern Chinese cities to clean heating during the winter through to 2021, state media reported, amid a deepening heating crisis. The plan was jointly announced by 10 government agencies, including the state planning National Development and Reform Commission (NDRC) and the National Energy Administration. Half of northern China would have converted to clean heating by 2019, reducing bulk coal burning by 74 million tonnes. Conversion towards geothermal heating is in parallel to increased usage of natural gas for heating purposes in order to limit coal usage in very polluted region. The shift already caused gas supply shortages. India to launch second tender to 10 000 EVs in March 2018 for the governmental fleet Source: thehindubusinessline.com Date: 15 November 2017 The next round of electric vehicle tender by Energy Efficiency Services Limited (EESL) is likely to be held in the first half of the 2018. The e-vehicles will be used by government institutions. The first batch of these vehicles is likely to be delivered in June 2018. India plans “rent a roof” policy in solar push Source: livemint.com/Industry Date: 16 November 2017 The Union government is working on a “rent a roof” policy to support its ambitious plan to generate 40 GW of power from solar rooftop projects by 2022, said Anand Kumar, secretary in the ministry of new and renewable energy. Of India’s ambitious target of 175 GW of clean energy capacity by 2022, 100 GW is to come from solar projects. Of these, while 60 GW is targeted from ground-mounted, grid-connected projects, 40 GW is to come from solar rooftop projects. Wind power projects are to contribute 60 GW. Such a policy comes in the backdrop of India’s nascent net-metering market. In a net-metering system, a consumer is only billed for the electricity consumed after deducting the power generated from one’s solar rooftop panels that is supplied to the grid. Indonesia to extend biodiesel subsidy to mining sector in 2018 Source: energy.economictimes.indiatimes.com Date: 4 January 2018 Indonesia's government plans to expand biodiesel subsidies to cover consumption of palm oil-blended fuels by the mining sector this year as part of ambitious plans to develop the energy source, the ministry of energy revealed. The subsidy for a programme known as B20 - referring to a blended fuel with 20% biodiesel content - has previously only been available to the power sector and to fuels sold to the public by PT Pertamina and PT AKR Corporindo. The subsidy to the mining sector may be capped at 4000 rupiah (USD 0.2978) per liter, Mulyana said. Subsidies approved for the existing sectors are set periodically based on the price of crude palm oil and crude oil. Further details on the subsidy implementation and structure will be announced later in 2018.

IEA, Renewable Policy Updated, Issue 17, 11 January 2018

14

Brazil signs national biofuels policy into law Source: biodieselmagazine.com Date: 3 January 2018 Brazilian President Michel Temer has approved legislation creating RenovaBio, a new national biofuels policy. The law was published in the official federal gazette of Brazil on Dec. 26. The Brazilian Senate approved the bill on 12th of December. RenovaBio aims to increase the use of all biofuels in Brazil, including ethanol, biodiesel and biomethane, with the aim of increasing energy security and reducing greenhouse gas emissions. The RenovaBio law provides for the establishment of national emissions reduction targets for the nation’s fuel supply. Targets will to be met annually by fuel distributors. The ministry said that the targets are fundamental to bring predictability to the national fuel supply and will provide better conditions and less uncertainty for private parties to carry out investment planning and analysis. In addition, the ministry indicated RenovaBio will allow the Brazilian fuel sector to comply with the Paris Agreement. RenovaBio creates a system that allow for the certification of biofuels. The Ministry of Mines and Energy said the objective of the certification is to measure the exact contribution of each biofuel producer to greenhouse gas emissions reductions, in relation to their fossil substitute. The law also creates a decarbonization credit (CBIO) that combines the emissions reduction targets and the live cycle assessment of each biofuel producer. The credits are described as a financial asset that can be traded on a stock exchange. The credits are issued by the biofuel producer following the sale of product. Fuel distributors will meet required targets by acquiring these credits. Kuwait aims for 15% renewable energy target by 2030 Source: utilities-me.com Date: 23 December 2017 The Kuwaiti new electricity minister has said Kuwait is determined to produce 15% of power from renewable energy by 2030. "The Electricity Ministry commits itself to generating 15% of power out of renewable energy by 2030," said Bakheet Shibeeb Al-Rasheedi, Minister of Electricity and Water. Renewable energy production will start at Dibdibah solar-power plant by generating approximately 1.5 GW in the initial stage and then the required output by 2030, the minister noted. Romania to introduce net metering for solar up to 100 kW Source: pv-magazine.com Date: 2 January 2018 The Romanian energy regulator ANRE has published a draft order setting the rules for net metering for solar and renewable energy installations with a capacity of up to 100 kW. The owners of power generators installed under the scheme will be entitled to sell electricty surplus to the country’s four power distributors, which are Enel, CEZ, E. On and Electrica, at a rate that will be set by ANRE, depending on the distributors. Local newspaper Unirea, which cites unidentified sources from the industry, reveals that the rate would be in the range of LEI 200 (USD 51.6)/MWh, and that the new rules will come into force after their publication in the country’s official journal. Moreover, the order establishes that power distributors, for which a maximum capacity to be installed under the scheme of 100 MW has been set, will be responsible for paying imbalance charges. The introduction of such a scheme would be undoubtedly good news for the Romanian solar sector, which has so far mainly developed through the construction of solar parks. Most of the 1.3 GW of solar power installed in the country, in fact, is represented by MW-sized PV plants built under the green certificate scheme, which was launched in 2011.

IEA, Renewable Policy Updated, Issue 17, 11 January 2018

15

Pakistan updated its net metering scheme and unveiled clean energy investment program Source: pv-magazine.com Date: 5 January 2018 The net metering scheme was have been simplified and new connections can now be gained in less than one month. The Government of Punjab, meanwhile, has unveiled a new Access to Clean Energy Investment Program, aimed at installing over 20,000 solar PV rooftop systems. Among the conditions required for project developers, are the criteria that they have completed at least two similar projects within the last 10 years, and have an annual turnover of Rs. 30.00 Million (around USD 270,800) or higher. To fund the program, the government has asked the Asian Development Bank for support to the tune of USD 87.69 million, which was already approved in November 2016. Overall, two phases have been envisaged for implementing the plan:

solar PV rooftop systems on 10,861 schools in South Punjab; and

systems on another around 9,700 schools in Northern and Central Punjab. In addition, a 2.5 MW PV system will be installed at the Islamia University Bahawalpur in Punjab by Punjab Energy Efficiency and Conservation Agency (PEECA). And 2,400 basic healthcare units will receive solar PV rooftop installations. Uganda issues tender to bring off-grid solar to schools in seven regions Source: pv-magazine.com Date: 6 December 2017 Further reading:

Invitation for bids available here; Uganda’s Ministry of Education and Sports has issued a tender, which was published by local portal New Vision, for the supply of off-grid PV solutions to 89 post primary education institutions. According to the document, 44 solar packages will have to be provided for schools located in the Eastern, North Eastern, Northern and West Nile Region, while another 45 packages will have to be delivered to schools located in the Western, South Western and Central Region. The bid closing date is December 29, 2017 and the bids will be individually evaluated within 20 days after the bid closing deadline. The winning bidder will be informed within five working days of the Contracts Committee Approval. The contracts will include supply, installation and maintenance of the PV systems. Results of the tender will be announced in late January or early February 2018.

Renewable energy finance First EBRD loan under new EUR 350 million green facility for Poland Source: ebrd.com Date: 3 January 2018 The EBRD is launching its new Polish Green Economy Financing Facility for Leasing (Poland GEFF Leasing) with a UER 50 million loan to BZ WBK Leasing S.A. to finance investments in energy and resource efficiency, renewable energy, water and waste management for local private businesses. The new EUR 350 million framework will be used to support projects in Poland that fulfil the criteria of the EBRD Green Economy Transition (GET) approach. The EBRD supports investments in renewable sources of energy, energy efficiency and energy savings and is well on track to reach its target of dedicating 40% of its annual investments to green energy by 2020. EBRD supports Turkish renewable projects with USD 85 million loan to TSKB Source: ebrd.com Date: 27 December 2017 In response to growing demand for green energy the EBRD is providing a US$ 85 million loan to Türkiye Sınai Kalkınma Bankası (TSKB) to finance private mid-cap companies investing in renewable energy and resource efficiency projects in Turkey.

IEA, Renewable Policy Updated, Issue 17, 11 January 2018

16

The financing will contribute towards a green economy by supporting solar, hydropower, wind, geothermal, waste-to-energy and energy efficiency projects as well as water-saving and waste minimisation. International Solar Alliance to offer USD 1 billion guarantee for solar projects Source: cleantechnica.com Date: 21 November 2017 The International Solar Alliance is planning to launch a pilot program to promote the implementation of solar power projects across the world. It plans to provide financial guarantees to project developers in order to promote investments. German Development Bank sets up EUR 33 million credit facility to support renewables in Africa Source: pv-magazine.com Date: 17 November 2017 The German Development Bank (KfW) and the multinational African Trade Insurance Agency (ATI) have set up a EUR 33 million credit facility to support renewable energy projects across Africa. The facility will enable investors in projects with a capacity of up to 50 MW to receive a liquidity guarantee for a six-month period. This guarantee is expected to help developers in the case of payments delay on the part of mostly state-owned electricity customers, due to financial or political issues.

Climate change/environmental news

India advances launch of Euro-VI fuels for smog-hit Delhi Source: reuters.com Date: 15 November 2017 India advanced the rollout of cleaner Euro-VI compliant fuels in Delhi by two years to reduce high pollution levels in the capital city after a record high pollution levels halted the city for a week recently. The oil ministry said all vehicles plying in the capital will have to move to the new fuel from April 2018 to reduce emissions. India uses Euro-IV compliant fuels but last year decided to migrate to the Euro-VI level from April 2020, leapfrogging over Euro V norms.

Iberdrola announces the complete closure of its coal-fired power capacity Source: iberdrola.com Date: 10 November 2017 Iberdrola’s move firmly advances the company's clean energy plan and its target of reducing its CO2 emissions intensity by 50% in 2030 (from 2007 levels). Company's emissions are now 70% below its European peers, representing an improvement of 75% since the year 2000. The decision ratifies company’s commitment to reduce its CO2 emissions intensity by 50% in 2030 and become carbon neutral in 2050. Iberdrola group operates 28.8 GW clean capacity through renewable energy generation sources, mainly onshore and offshore wind (15.9 GW) and hydroelectric power (13 GW). The company has requested consent from Spain's Ministry of Energy to decommission the thermal power plants of Lada and Velilla which have a combined capacity of 874 MW.

Norway's USD 1 trillion wealth fund proposes to drop oil, gas stocks from index Source: reuters.com Date: 16 November 2017 Norway’s trillion-dollar sovereign wealth fund is proposing to drop oil and gas companies from its benchmark index, which would mean cutting its investments in those companies, the deputy central bank chief supervising the fund told Reuters, sending energy stocks lower. The aim is to make the Norwegian government’s wealth less vulnerable to a permanent drop in oil prices, at a time when the fund is increasing its exposure to equities to 70% of the fund’s value from 60% earlier.

For more information on renewable energy legislation please go to:

IEA, Renewable Policy Updated, Issue 17, 11 January 2018

17