As I discussed in a previous blog, renewable energy trade disputes are becoming a particularly contentious issue between many nations. The United States and China are facing off in one of the most publicized of these disagreements. Further action was taken last week as the U.S. Department of Commerce made its second ruling of the year on this issue, placing tariffs on solar photovoltaic (PV) imports from China.

A Suntech Power Holdings employee at a Chinese solar PV manufacturing facility. The Commerce Department ruling placed a 31.22% tariff on Suntech products. (source: China Daily)

The previous Department of Commerce ruling from March 2012 placed countervailing duties on solar PV imports in order to balance what the department determined to be illegal subsidies to solar PV manufacturers from the Chinese government. The initial tariff rates, which were set between 2.9 and 4.73 percent, came in much lower than what was expected by most experts.

The new preliminary ruling comes in response to the second set of claims by the Coalition for American Solar Manufacturing (CASM) that Chinese solar companies have been dumping their products in the U.S. market at below market value. The coalition, led by SolarWorld USA, looks to level the playing field for U.S. solar manufacturers against what they see as artificially cheap imports coming from China.

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Last Sunday marked the first anniversary of an unprecedented catastrophe that struck northern Japan. On March 11, 2011, a tsunami—triggered by a major earthquake—swept into the area surrounding the Fukushima Daiichi nuclear power station, disabling the cooling capabilities of three of the plant’s oldest reactors. In the days and weeks that followed, as workers struggled to cool and dismantle the plant, reactors 1, 2, and 3 went into meltdown. A series of explosions and fires led to the release of radioactive gas, and fears of contamination ultimately prompted the evacuation of approximately 100,000 people from the immediate area; some 30,000 may never be able to return to their homes.

The Fukushima Daichi Nuclear Power Plant, 25 March 2011 (Source: econews)

The first anniversary of this horrific event—the worst nuclear disaster since the Chernobyl accident in 1986—is a time to commemorate the more than 20,000 people who died in the initial earthquake and tsunami, as well as the courage of those who risked radioactive exposure to regain control of the plant and prevent further calamity. But it is also a time to look forward—to examine what we have learned from Fukushima and what it means for the future of energy in Japan and around the world.

A “moment of opportunity” for Japan

In the aftermath of the meltdown, the Japanese public turned decidedly against nuclear power, marking a pronounced change in a nation that was once one of the world’s most committed proponents and producers of civilian atomic energy. Japan has been using nuclear power since the 1960s, and in 2010 it generated 30 percent of its electricity from nuclear plants. In the past year, however, the vast majority of nuclear facilities in Japan have been shut down for routine maintenance or “stress tests” and have not yet been reopened. Today, all but two of Japan’s commercial reactors have been shut down, with the last one scheduled to go offline as early as April. The country has also abandoned any existing plans to build new reactors.

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The Haitian government has identified energy as a key priority for the country’s future, providing direction for the Secretary of State for Energy to weigh various energy options. Previous posts have examined Haiti’s strong solar and wind generation potential. However, considering that only 5 percent of Haiti’s total primary energy is currently used for electricity production, it is extremely important to consider other energy uses.

An aerial view of the border between Haiti (left) and the Dominican Republic (right). Only 3 percent of Haiti's forest remains. The charcoal and fuelwood industries have contributed significantly to deforestation. (Photo source: NASA)

Haiti depends heavily on charcoal and fuelwood for cooking services. About 95 percent of Haiti’s 10 million people use these fuels for their daily cooking needs, and charcoal (39 percent) and fuelwood (32 percent) account for 71 percent of the country’s total energy consumption.

Unfortunately, Haiti remains one of the most deforested nations in the world, with only 3 percent of its original forest cover remaining. Since fuelwood and charcoal – simply the product of wood heated in an oxygen-free environment – are derived from the remaining forest cover, the current energy industry is clearly unsustainable and Haiti needs to find suitable replacements for these fuels in the near future. There are many alternative energy sources, but a robust analysis of the economic, environmental, and social consequences of each is necessary for making informed decisions regarding future energy development.

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On October 13^th and 14^th, I represented the Worldwatch Institute at the 4^th Annual International Conference on Energy, Logistics and the Environment.  The conference was held in Denver, Colorado, and it was well attended by stakeholders, government officials, natural gas industry experts, innovators and entrepreneurs, academics and other interested parties.  The conference was organized by the Global Commerce Forum and was given the theme, A Sustainable Energy Future for Emerging Economies: Focus on Africa.  Discussion focused on the imperatives for clean energy development in emerging economies.  Traditionally, industrialized nations developed via fossil-fuel energy.  Industrialization fostered economic growth and prosperity in the developed world.  Many industrialized nations have prospered largely because heavily subsidized fossil-fuels have provided for affordable and reliable energy.  However, environmental concerns are driving industrialized nations to seek new energy sources and infrastructure to develop clean environments.

With its focus on Africa, the conference sought to answer one of the contentious questions in international discourse on energy development: ‘should emerging and developing nations develop their energy infrastructure from these same traditional energy sources, or are there now other, better options available to them?’  In his opening remarks, Don McClure, Vice President of Government & Stakeholder Relations & Legal of EnCana Oil & Gas (USA) Inc, indicated that Africa is in a unique position to invest in critical thinking that produces a “leap frog” in innovation.  He also indicated that Africa is in an enviable position to avoid the pitfalls associated with fossil fuel development through lessons learned from developed countries.  In a keynote address presented by former Governor of Colorado and Director of the Center for the New Energy Economy, Colorado State University, Bill Ritter, the intersection between access to energy services and education was highlighted. Governor Ritter also indicated that access to modern energy services is important in that it facilitates educational opportunities for children in developing countries. He stressed the need for an economy powered by clean fuels and public health in Africa.  He concluded by stating that there can be ‘no economic development without reliable power.’

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This September, the US Army established the Energy Initiatives Office Task Force in conjunction with announcing the ambitious goal of meeting over 25 percent of its energy demand through renewable sources by 2025.

The US Army is promoting renewable energy as a practical solution to pressing security, economic, and environmental challenges. Source: US Army

This initiative is part of a larger agenda within the Department of Defense to promote renewable energy as a cost-effective security measure. Over the last decade, rising energy costs have increasingly strained military budgets and concerns over fuel convoy and supply security have risen to the fore. As an organization, the US Army currently spends over US $4 billion per year on energy to power bases, installations, transport vehicles, and equipment around the world. The projected costs of the status quo, that is, maintaining a fossil fuel-based energy mix, have proven unsustainable to top military leaders. For example, with every US $1 increase in global oil prices, the US Army’s energy budget can fluctuate by over US $30 million. The Army has indicated that in addition to its environmental benefits, ramping up renewable energy makes sense from both an economic and national security perspective. Secretary of the US Army John M. McHugh recently stated that “The Energy Initiatives Office Task Force will help the Army build resilience through renewable energy while streamlining our business practices so developers can invest in and build an economically viable, large-scale renewable energy infrastructure”.

As one of the largest energy consumers in the world, the US Army’s adoption of such aggressive renewable energy policies will be a major boon to the US and global renewable energy industries. The Energy Initiatives Office (EIO) Task Force estimates that the US Army will need an additional 2.5 million megawatt-hours (MWh) per year of additional renewable energy supply over the next 10 years to meet its 25 percent goal.  A recent Pike Research report on US military energy initiatives finds that the renewable energy investments from the Army and other branches of the military will top US $10 billion annually by 2030 and continue to grow. Some analysts estimate that the US Army alone may attract over US $7 billion in private financing for renewable energy and energy efficiency projects over the next five years. This increase in demand can provide manufacturers and generators the long-term financial security they need to make significant structural investments in renewable energy production and innovation.

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While U.S. policymakers remain hesitant to contemplate the transition to a low-carbon economy, Germany’s energy transition is already under way. At two Washington, D.C. events on Monday, October 3 (Germany’s Unity Day holiday), Franz Untersteller, Environment Minister for the German State of Baden-Württemberg, discussed his country’s efforts to phase out nuclear power and heavily promote renewable energy in the coming decades. Germany’s decision this spring to phase out nuclear energy by 2020 has been regarded as a controversial path to reducing greenhouse gas emissions and tackling climate change. At a panel titled Leading the Way or Lights Out? Germany’s Nuclear Exit and U.S. Energy Perspectives held at the Johns Hopkins School of International Studies (SAIS), Minister Untersteller described how Germany plans to achieve both the nuclear phase-out and the reduction of carbon dioxide (CO₂) emissions.

Minister Untersteller has been Environment Minister of the State of Baden-Württemberg in the Green-Social Democratic government since the March 2011 regional elections. Baden-Württemberg is a highly industrialized German state that is home to global industrial players such as Mercedes, Porsche, and Bosch. The region could serve as a model for other very industrialized areas in showing how high energy intensity can be combined with CO₂ emissions reductions. Untersteller described the German government’s nuclear exit strategy as “irreversible,” not just because the amendments to the Nuclear Energy Act were supported by an agreement of all parties in the German Bundestag, but also because the strategy is based on broad popular consensus. The nuclear phase-out by 2020 is accompanied by several other elements:

• A substantial rise in the share of renewable energy in the country’s energy mix, projected to reach 38 percent of the national electricity supply by 2020, compared to 20 percent today and 6 percent in 2000;
• The construction and use of flexible natural gas power plants;
• Infrastructure adaptation, especially high investment in the electric power grid; and
• Increase in energy efficiency, including a further decoupling of energy use from economic growth.

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This week, Xing Fu-Bertaux and Matthew Lucky of Worldwatch’s Climate and Energy team are meeting with senior policymakers and educators in Port-au-Prince at a high-level workshop on Haiti’s energy future. They will be writing an in-depth post about the conference for ReVolt next week. As part of our ongoing work in the Caribbean, Worldwatch is currently focusing on the electricity sector in Haiti and the development of a low-carbon growth strategy.

Haiti has a population of nearly 10 million with a significantly underdeveloped energy infrastructure. Over 70 percent of Haiti’s people have gone without access to the electricity grid for years. The 2010 earthquake further exacerbated Haiti’s infrastructure challenges, leaving over 80 percent of the population without access to electricity and the many vital services that require power. For those Haitians that do have electricity access, service is often intermittent and unreliable.

Presidential Advisor on Energy, Dr. René Jean-Jumeau addresses energy leaders in Port-au-Prince.

Haiti’s current predicament has received ample media exposure since the earthquake. Although international aid and emergency relief programs are providing invaluable support, they are only part of the answer. Haitian leaders are searching for long-term solutions that promote sustainability, growth, and access to electricity. The Haitian Parliament’s recent approval of Garry Conille, President Martelly’s appointment for Prime Minister, has provided a measure of direction for the public sector in pursuit of its development and reconstruction goals. In anticipation of this new government, energy professionals are eager to set Haiti on a sustainable growth trajectory. Earlier this week, Worldwatch researchers Xing Fu-Bertaux and Matthew Lucky joined decision makers from all over the country for a special two-day workshop in Port-au-Prince organized by Dr. René Jean-Jumeau, Presidential Advisor for Energy, to discuss ways in which they can work together to promote the Haitian energy sector. Energy policy, procurement, rural electrification, and sustainability received particular emphasis at the workshop.

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Photo: Coyote Springs Generating Station by Portland General Electric

On August 25, my colleagues at the Deutsche Bank Climate Change Advisors and I released a new greenhouse gas (GHG) life-cycle analysis of U.S. coal and natural gas-fired electricity. If you have been following my posts on ReVolt over the last year, you’ll know we began studying this issue after the Environmental Protection Agency (EPA) announced revisions to its methodology for estimating emissions from natural gas systems (basically from the production, processing, transmission, and distribution of natural gas) that resulted in a more than doubling of its estimate for methane emissions from those sources. Methane, in addition to being the primary component of natural gas, is a GHG some 25 times more potent than carbon dioxide over a hundred-year period. Consequently, some analysts have raised concerns that when the actual amount of methane emitted during the entire life cycle of natural gas (an amount which the EPA’s previous methodology apparently underestimated) is taken into account, natural gas might lose its GHG advantage over coal.

Over the past year, a number of new life-cycle analyses have come out that all ask different versions of the question, “How clean is natural gas really, on a life-cycle basis?” Some focus on GHG emissions from shale versus conventional natural gas, while others focus on all natural gas produced in the United States. The life-cycle analyses use different underlying assumptions, methodologies, and sources of data, and nearly all comment on the implications of their findings for the GHG comparison between coal and gas. After all, if the Obama administration is (or at least was) considering a clean energy standard that gave natural gas-fired electricity a half-credit on the basis of its GHG savings over coal, this should be reflected by actual GHG savings.

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Source: Caribbean 360

Worldwatch researchers recently completed their initial visit to Jamaica for the Caribbean Low-Carbon Energy Roadmaps project. The team discussed a range of issues related to Jamaica’s energy infrastructure and needs with policymakers and stakeholders, and one issue that stood out was the potential for more cogeneration at sugar mills.

As of 2010, the agricultural sector accounted for 6 percent of Jamaica’s gross domestic product (GDP) and 20 percent of the nation’s employment. The largest of the industries within the agricultural sector – the sugarcane industry – accounted for 35,000 direct jobs and 100,000 indirect jobs. About 46,000 hectares, or nearly 5 percent of Jamaica’s land, is dedicated to growing sugarcane.

But what does this industry have to do with Worldwatch’s Low-Carbon Energy Roadmap in Jamaica? The simple answer is that waste from sugar mills is already contributing to Jamaica’s energy portfolio, and has the potential to play an even more substantial role.

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Metros with clusters across the United States

There are 2.7 million clean economy jobs in the United States, according to a recently released report by the Brookings Institution entitled “Sizing the Clean Economy: A National and Regional Green Jobs Assessment.” Brookings hosted an event to announce the release, at which one panel explored the fascinating and increasingly important role that Regional Innovation Clusters (RICs) play in fostering the clean economy.

The report shows that the majority of green jobs (defined as jobs with a direct or indirect environmental benefit) are in conventional sectors like manufacturing, waste management, and mass transit. But the fastest growing sector is clean technology, which includes renewable energy, smart grid, and energy efficiency. While 64 percent of green jobs in the U.S. reside within the 100 largest metropolitan areas (which hold 66 percent of the U.S. population), the same metros hold an outsized 74 percent of the clean tech jobs created from 2003 to 2010. The Brookings report takes this as evidence that metros have strong industry clusters that boost clean economy growth.

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