renewable energy Tag

Last month The World Bank has released a report titled “China 2030: Building a Modern, Harmonious, and Creative High Income Society.” Within are policy recommendations for the sustained economic growth of one of the world’s most dynamic nations. According to the World Bank—an international financial institution focused on developing countries—green development is key to China’s continued success with a greater role for the utilization of renewable energy.

One of the greatest challenges faced by developing countries is access to energy. An estimated 1.3 billion people lack access to electricity, and the lack of a reliable power source is often cited as the greatest burden on entrepreneurs in emerging markets. The United Nations, recognizing the importance of energy for wealth creation, has released the Poor People’s Energy Outlook 2012. According to the international governmental body, the key to progress in developing world energy will be to implement sustainable, decentralized systems with an emphasis on renewable energy, including biomass.

Ernst & Young, an international professional services company, showed striking gains made by developing countries in its most recent “Renewable energy country attractiveness indices.” According to the report, “Western Europe and the US markets have been hit by a perfect storm of reduced government incentives, restricted access to capital in increased competition from abroad.” Specifically singled out as “[sharing] an acute need for more renewable power” were Argentina, Hungary, Israel, Tunisia and Ukraine.

Shale gas has the potential to revolutionize the world energy market. The United States has lead the way in the extraction of this fossil fuel with the increased utilization of a controversial technique called hydraulic fracturing, or fracking. As a result, in the last decade the country’s production of shale gas has jumped twelve-fold to 4.9 trillion cubic feet. Previously an importer of liquefied natural gas, the United States may soon become an exporter. Due to the viability of exploiting shale gas, the nation’s conventional and unconventional natural gas reserves have risen to 2,552 trillion cubic feet—equivalent to Kuwait and Iran’s combined proven oil reserves.

The Renewable Energy Policy Network for the 21st Century (REN 21) recently released its Global Status Report for 2011. It shows a growing developing world presence in renewable power generation, particularly biomass. Although developing countries account for only 30 percent of the world’s renewable energy capacity, they are responsible for around 44 percent of the power generated through biomass fuel sources.

Good news for the prospect of increased renewable energy development in Indonesia. In mid July the nation’s Ministry of Energy and Mineral Resources announced its desire for IDR 134.6 trillion (USD 15.7 billion) to fund renewable energy projects through 2025. Most, 64 percent, will go to the heavily populated region of Java. Specifically, its distribution will be IDR 25.06 trillion to Sumatra, IDR 86.3 trillion to Java, IDR 15.77 trillion to Sulawesi, IDR 2.64 trillion to Bali-Nusa Tenggara and IDR 4.83 trillion to Papua-Maluku (see map). Indonesia plans on raising the proportion of its energy generated through renewable sources from its current level of 5 percent to 17 percent—up from the previously set 15 percent—over the next 15 years.