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Page 1The University of Sydney
‘Lessons from renewable
energy laws - how do countries
legislate to support renewables
to m...
Page 2The University of Sydney
What we will cover:
NEW ORIGINAL
RESEARCH
CURRENT STATE
OF PLAY
A LOOK TO THE
FUTURE
Page 3The University of Sydney
Page 4The University of Sydney
As different techniques for generating renewable energy become
commercialised and the manuf...
Page 5The University of Sydney
Current state of renewable energy globally
In 2018, renewable energy accounted for 63% of n...
Page 6The University of Sydney
The current status of national renewable energy laws
By 1 August 2018:
146
countries had
re...
Page 7The University of Sydney
What has happened in the past 5 years?
– 18 countries enacted renewable energy laws for the...
The University of Sydney
Motivations for national renewable energy laws
Page 9The University of Sydney
1. Highly energy self-sufficient and competing financial interests
in fossil fuels: e.g. OP...
Page 10The University of Sydney
Legislative objectives as a proxy for national
motivations
– Berry: ‘a purpose section is ...
Page 11The University of Sydney
Some of the existing literature
‘…the motivations for and
objectives of RE policy are
stri...
Page 12The University of Sydney
Some of the existing literature
– Aguirre and Ibijunle (2014): ‘over the past
couple of de...
Page 13The University of Sydney
Renewable energy and The Paris Agreement
145 Parties included domestic
action to support r...
Page 14The University of Sydney
Results of the global study (2018)
– 28 categories of legislative objectives were identifi...
Page 15The University of Sydney
– Energy law and policy are not primarily driven by international
or even regional concern...
The University of SydneyThe University of Sydney
Priority of
legislative
objective
The Gambia Germany Ghana Greece Guatema...
Page 17The University of Sydney
Theme Category of legislative objectives Number of countries citing the
legislative object...
Page 18The University of Sydney
– Energy security (Denmark)
– Diversify supply (Finland, Czech Republic, Kyrgyzstan, Peru,...
Page 19The University of Sydney
– Support the development of new industry and infrastructure
(China, South Korea, Taiwan, ...
Page 20The University of Sydney
The definition of renewable energy sources
Page 21The University of Sydney
0 20 40 60 80 100 120
Peat
Nuclear
Osmotic/ salt gradient
Hydrogen fuel cells
Hydrothermal...
Page 22The University of Sydney
– Hydropower: Large-scale, small-scale?
– Large-scale is excluded by 27 countries from the...
Page 23The University of Sydney
– Biomass: Modern, traditional and woody biomass?
– Example: Kenya – charcoal
– Examples: ...
Page 24The University of Sydney
Example: Sweden
Law (2011: 1200) on electricity
certificates
Section 2 In this Act,
1. ren...
Page 25The University of Sydney
https://commons.wikimedia.org/wiki/File:Malawi_in_Africa.svg
What happens when domestic ne...
Page 26The University of Sydney
Regulatory support mechanisms
Page 27The University of Sydney
Some examples from China
– Explicit vs tacit local content
clauses
– Differential feed-in ...
Page 28The University of Sydney
Case Study: Chinese Wind Subsidy WTO Dispute
– In 2005, the market share of foreign turbin...
Page 29The University of Sydney
Agreement on Subsidies and Countervailing Measures
– Article 3: The relevant clauses of th...
Page 30The University of Sydney
风力发电设备产业化专项资金管理暂行办法
– The qualifying criteria for this subsidy included:
–to be eligible c...
Page 31The University of Sydney
Future developments in renewable energy laws
1. As renewable energy sources
become increas...
Page 32The University of Sydney
Conclusions
1. The primary motivations of most countries in adopting
renewable energy laws...
Page 33The University of Sydney
1. There are significant risks in not diversifying the manufacture of
renewable energy tec...
Page 34The University of Sydney
Dr Penelope Crossley
Sydney Law School
THE UNIVERSITY OF SYDNEY
Room 416, New Law Building...
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Lessons from renewable energy laws - how do countries legislate to support renewables to meet the needs of domestic consumers and renewables producers?

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With the increasing globalisation of the market for renewable energy technologies, it might be expected that this would also lead to national renewable energy laws becoming more similar. Yet, outside of the European Union this has not happened. Drawing from her study of every country in the world’s renewable energy laws, Associate Professor Crossley will explore how countries compete to attract investment via their legislation to support renewables to meet the needs of their domestic consumers and indigenous renewable energy sources. From the support of peat in Sweden, to local content clauses in China, and the impact of the bushfires in Australia, this webinar will examine the competing market drivers impacting the energy transition around the world.

Published in: Government & Nonprofit
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Lessons from renewable energy laws - how do countries legislate to support renewables to meet the needs of domestic consumers and renewables producers?

  1. 1. Page 1The University of Sydney ‘Lessons from renewable energy laws - how do countries legislate to support renewables to meet the needs of domestic consumers and renewables producers?’ Associate Professor Penelope Crossley, Sydney Law School
  2. 2. Page 2The University of Sydney What we will cover: NEW ORIGINAL RESEARCH CURRENT STATE OF PLAY A LOOK TO THE FUTURE
  3. 3. Page 3The University of Sydney
  4. 4. Page 4The University of Sydney As different techniques for generating renewable energy become commercialised and the manufacturing of renewable technologies became more concentrated in particular countries, renewable energy laws would also come under pressure to harmonise to facilitate trade, improve information sharing and ease administration. Spoiler Alert: Except in the EU, there are stark differences emerging in many areas of renewable energy law and this divergence acts as a source of competition for investment. New original research - hypothesis
  5. 5. Page 5The University of Sydney Current state of renewable energy globally In 2018, renewable energy accounted for 63% of net additions to global power generation. $US 289 billion invested in new renewable generation capacity (including hydropower).
  6. 6. Page 6The University of Sydney The current status of national renewable energy laws By 1 August 2018: 146 countries had renewable energy targets 138 countries had support policies 113 countries had national renewable energy laws
  7. 7. Page 7The University of Sydney What has happened in the past 5 years? – 18 countries enacted renewable energy laws for the first time (significant growth among Caribbean countries and African countries) – Over 50% of countries with existing laws amended their laws – This has prompted a spate of Investor-State Disputes involving the sector (currently sitting at 102 different disputes)
  8. 8. The University of Sydney Motivations for national renewable energy laws
  9. 9. Page 9The University of Sydney 1. Highly energy self-sufficient and competing financial interests in fossil fuels: e.g. OPEC Member States 2. Lack the skills, capacity or resources to develop legislation: e.g. countries with low GDP and poor access to electricity 3. Countries with the constitutional inability to enact a national law: e.g. Canada Countries without a national renewable energy law
  10. 10. Page 10The University of Sydney Legislative objectives as a proxy for national motivations – Berry: ‘a purpose section is a provision that explicitly states the social, economic or political objective or goal that is sought to be achieved, assuming that the provisions of the statute are implemented by those who are required or authorised to perform that function.’ – The primary role is to act as a guide for the statutory interpretation of ambiguous legislative provisions.
  11. 11. Page 11The University of Sydney Some of the existing literature ‘…the motivations for and objectives of RE policy are strikingly similar across most countries.’ Lipp
  12. 12. Page 12The University of Sydney Some of the existing literature – Aguirre and Ibijunle (2014): ‘over the past couple of decades, environmental concerns have been more critical drivers of countries’ decisions to increase renewables investment than energy security.’ – Charnovitz and Fischer (2015): ‘renewable energy policies enjoy broad public and governmental support around the world…the foremost rationale for them is to reduce the threat of climate change.’
  13. 13. Page 13The University of Sydney Renewable energy and The Paris Agreement 145 Parties included domestic action to support renewable energy to help mitigate and adapt to climate change in their NDCs. 109 Parties provided quantifiable targets for renewables.
  14. 14. Page 14The University of Sydney Results of the global study (2018) – 28 categories of legislative objectives were identified. – 8 key themes identified in the legislative objectives: security, the environment, industrial policy, the economy, society, international and regional, sectoral and education and training.
  15. 15. Page 15The University of Sydney – Energy law and policy are not primarily driven by international or even regional concerns (other than in the EU) – Renewable energy laws reflect domestic concerns and thus show national differences – This promotes greater public acceptance at home but fuels international competition Domestic consumer and producer needs are not converging internationally
  16. 16. The University of SydneyThe University of Sydney Priority of legislative objective The Gambia Germany Ghana Greece Guatemala 1 Energy security Sustainable development More efficient use of natural resources and energy conservation Meet international treaty obligations and international agreements Promote private investment and FDI 2 Reduce use of fossil fuels or nuclear imports Reduce GHGs and address climate change Environmental protection Diversify supply 3 Diversify supply Environmental protection Sustainable development Energy security 4 Affordable energy Affordable energy Promote private investment and FDI Strengthen the economy 5 Reduce GHGs and address climate change Reduce use of fossil fuels or nuclear imports Diversify supply National development 6 Strengthen the economy More efficient use of natural resources and energy conservation Energy security Promote the development of the internal energy market and regional integration 7 Environmental protection Encourage technological innovations Improved access to electricity Reduce GHGs and address climate change 8 Create jobs or improve skills and domestic capabilities Create jobs or improve skills and domestic capabilities 9 More efficient use of natural resources and energy conservation
  17. 17. Page 17The University of Sydney Theme Category of legislative objectives Number of countries citing the legislative objective Weighted rank Security objectives Energy security 49 3.41 Diversify supply 41 3.73 Reduce use of fossil fuels imports or nuclear imports 35 3.69 Encourage greater use of indigenous energy sources 10 3.20 Subtotal citations/Average weighted rank 135 3.56 Environmental objectives Environmental protection 55 5.09 Reduce greenhouse gas emissions and address climate change 28 5.89 Reduce risk of natural and nuclear disasters 2 6.50 Subtotal citations/Average weighted rank 85 5.38
  18. 18. Page 18The University of Sydney – Energy security (Denmark) – Diversify supply (Finland, Czech Republic, Kyrgyzstan, Peru, Romania, Taiwan and South Africa) – Promote the development of the internal energy market and regional integration (selected EU Member States + four EU candidate countries + Kosovo, Morocco and Paraguay) – Reduce the risk of natural and nuclear disasters (Bangladesh, France) Selected examples
  19. 19. Page 19The University of Sydney – Support the development of new industry and infrastructure (China, South Korea, Taiwan, Indonesia and the Philippines) – Local manufacturing (Turkey) – Public health, improve living standards or social development (DRC) – Access to energy (Pakistan, Suriname) v energy affordability (Germany, Switzerland) Selected examples (cotd.)
  20. 20. Page 20The University of Sydney The definition of renewable energy sources
  21. 21. Page 21The University of Sydney 0 20 40 60 80 100 120 Peat Nuclear Osmotic/ salt gradient Hydrogen fuel cells Hydrothermal (maremotermica) Wave Tidal Hydropower - large scale Geothermal Biomass Landfill gas, sewage treatment gas, biogas Hydropower - small scale Concentrated Solar Thermal Solar - Photovoltaic Wind Number of countries with the renewable energy source in their law Which energy sources are legally defined as ‘renewable’?
  22. 22. Page 22The University of Sydney – Hydropower: Large-scale, small-scale? – Large-scale is excluded by 27 countries from their law – Note the definition of small-scale varies considerably: • 3MW in Panama to 30MW in Malaysia and Tajikistan Definitions to watch for consumer/producer preferences
  23. 23. Page 23The University of Sydney – Biomass: Modern, traditional and woody biomass? – Example: Kenya – charcoal – Examples: Bangladesh, Belarus Finland and Thailand - wood – Example: Australia – wood waste from old growth forests – Cf: China’s Renewable Energy Law: • This law shall not apply to the utilization of straw or stalks, firewood or dung in the form of direct burning through an inefficient cooking range. Definitions to watch for consumer/producer preferences
  24. 24. Page 24The University of Sydney Example: Sweden Law (2011: 1200) on electricity certificates Section 2 In this Act, 1. renewable electricity means electricity produced from renewable energy sources or peat; 2. renewable energy source: biofuel, geothermal energy, solar energy, hydropower, wind power and wave energy,
  25. 25. Page 25The University of Sydney https://commons.wikimedia.org/wiki/File:Malawi_in_Africa.svg What happens when domestic needs are not accounted for? Energy Regulation Act (2004) Malawi ‘Renewable Energy’ means those sources of energy available to mankind arising from natural processes in the interaction between the sun and the earth’s surface and regularly replenished and these include the sun as the primary renewable energy resource and the secondary renewable energy resources that derive from the sun including wind energy, hydro, ocean thermal, ocean wave, ocean tidal and electricity from photovoltaic effects, biomass, geothermal, etc;
  26. 26. Page 26The University of Sydney Regulatory support mechanisms
  27. 27. Page 27The University of Sydney Some examples from China – Explicit vs tacit local content clauses – Differential feed-in tariffs depending on resource quality – Differential quotas for different provinces/States – Payment terms to coincide with harvest/lambing season
  28. 28. Page 28The University of Sydney Case Study: Chinese Wind Subsidy WTO Dispute – In 2005, the market share of foreign turbine firms in China was 75%. – The NDRC introduced a cap that required Chinese wind farms to source at least 70 % of turbine parts from domestic producers. – Over a three-year period, the market share of foreign turbine firms declined by 55 percentage points to a 20% market share. – China went from having only 6 domestic wind turbine manufacturers to being the number one producer of in the world.
  29. 29. Page 29The University of Sydney Agreement on Subsidies and Countervailing Measures – Article 3: The relevant clauses of this Article state: 3.1 ‘ … the following subsidies, within the meaning of Article 1, shall be prohibited: (b) subsidies contingent, whether solely or as one of several other conditions, upon the use of domestic over imported goods. 3.2 A Member shall neither grant nor maintain subsidies referred to in paragraph 1.’
  30. 30. Page 30The University of Sydney 风力发电设备产业化专项资金管理暂行办法 – The qualifying criteria for this subsidy included: –to be eligible companies had to be state-owned or Chinese- controlled wind power equipment manufacturers; –the developed equipment had to have Chinese Intellectual Property Right, i.e. the company must own the critical technology or techniques; and –the wind turbine systems had to be manufactured, installed and tested in China and must be operated without fault for more than 240 hours.
  31. 31. Page 31The University of Sydney Future developments in renewable energy laws 1. As renewable energy sources become increasingly cost competitive, we will see a shift from accelerating deployment to managing high levels of grid integration. 2. Resilience to new threats: bushfires à DER and microgrids, climate change and droughts à impacting on the production of hydropower
  32. 32. Page 32The University of Sydney Conclusions 1. The primary motivations of most countries in adopting renewable energy laws is not addressing climate change. 2. National priorities are clearly evident as motivations and market drivers in renewable energy laws. This creates competition in the market. 3. End user needs are critical to the ultimate success of the laws.
  33. 33. Page 33The University of Sydney 1. There are significant risks in not diversifying the manufacture of renewable energy technologies and market concentration. 2. Energy storage laws are about ten years behind renewable energy laws. Lessons for emerging energy technologies
  34. 34. Page 34The University of Sydney Dr Penelope Crossley Sydney Law School THE UNIVERSITY OF SYDNEY Room 416, New Law Building The University of Sydney | NSW | 2006 T +61 2 9351 0388 E penelope.crossley@sydney.edu.au Renewable Energy Law An International Assessment Penelope Crossley Longbottom Interrogating the concepts of allegiance and identity in a globalised world involves renewing our understanding of membership and participation within and beyond the nation-state. Allegiance can be used to define a singular national identity and common connection to a nation-state. In a global context, however, we need more dynamic conceptions to understand the importance of maintaining diversity and building allegiance with others outside borders. Understanding how allegiance and identity are being reconfigured today provides valuable insights into important contemporary debates around citizenship. “This book reveals how public and international law understand allegiance and identity. Each involves viewing the nation-state as fundamental to concepts of allegiance and identity, but they also see the world slightly differently. With contributions from philosophers, political scientists and social psychologists, the result is a thorough appraisal of allegiance and identity in a range of socio-legal contexts.” James T. Smith, New York Literary Review ThomasPaineandtheIdeaofHumanRights Crossley.9781107185760.PPC.CMYK Cover image: unknown artist’s photograph of a distressed cliff face.

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