IEA, Renewable Policy Updated, Issue 14, 6 June 2017

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Renewable Policy Update

Based on the following sources: ADB, AfDB, All Africa, Bakermckenzie, BifouelsDigest, Bloomberg, BNA.com, BNEF, Business Standard, Cleantechnica, Dentos, ENDS, ENERDATA, ESI-Africa, GDLFAC.com, IEA Press Intelligence, India Times Energy Economy, International Law Office (ILO), IPPJournal, Lexology, OffshoreWind, Photon, PV Magazine, PV tech, Rawi.ru, RenewablesNow, Reneweconomy.com.au, Reuters, senate.ca.gov,

ThinkGeoenergy, The Hindu, URE.gov.pl, Utilities-me.com, Wind Power Monthly, WindEurope

Contents

Renewable energy auctions ....................................................................................................... 3

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

Germany's 1st offshore wind tender delivers average prices at subsidy free EUR 0.44/kWh ....................... 3

Germany's 1st onshore wind tender awards 807 MW ................................................................................... 3

The latest 500 MW tender by the Solar Corporation of India (SECI) drove the tariffs under USD 0.038/kWh ........................................................................................................................................................................ 4

Spain closed its renewable energy auction round with record low prices for wind projects ......................... 4

Namibia’s first renewable auction concluded with awarding contract to 45.5 MW solar PV project ........... 5

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

Turkey tenders 1 GW of onshore wind in new auction system ...................................................................... 5

Russia opens its 5th

renewable tender for 2.8 GW capacity ........................................................................... 5

France pre-selected 10 Dunkerque offshore wind bidders ............................................................................ 6

South Australia seeks battery storage proposals from short-list ................................................................... 6

Tunisia tenders 210 MW of wind and solar power ......................................................................................... 6

Botswana calls for expression of interest for 100 MW solar PV project ........................................................ 7

Sri Lanka to tender 100 MW floating solar plant ............................................................................................ 7

Scheduled/future auctions ..................................................................................................... 7

Mexico to hold third renewable energy auction in November 2017 ............................................................. 7

Chile to contract 2 GWh of power in upcoming electricity auction to take place in December 2017 ........... 8

Tamil Nadu (TANGEDCO) plans to procure 1.5 GW of solar PV capacity ....................................................... 8

Saudi Arabia to offer 1 GW of renewable contracts in 2017 .......................................................................... 8

Poland will hold renewable electricity auctions in June 2017 ........................................................................ 9

Spain to launch another 3 GW renewable energy auction before the summer............................................. 9

Feed-in/premium tariffs ............................................................................................................ 9

Queensland may change solar tariffs to match peak demand ....................................................................... 9

Vietnam launched FIT support system for grid connected solar PV and opened a net metering program . 10

Other renewable energy news ................................................................................................ 11

OECD ..................................................................................................................................... 11

Switzerland backs Energy Strategy 2050 and votes for nuclear exit in lieu of renewables .......................... 11

Poland publishes financial parameters for renewable energy auctions to take place in 2017 .................... 11

European Parliament votes nearly unanimously to phase out use of palm oil in biofuels by 2020 ............. 12

Trump administration drafts budget slashes DOE and EPA funding in favour of nuclear ............................ 12

California Senate passes 100% Clean Energy and Environmental Protection Bills ....................................... 12

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Nevada passes bill to increase state RPS to 80% by 2040 ............................................................................ 12

Atlanta commits to 100% renewable energy by 2035 .................................................................................. 13

Lego goes 100% renewable .......................................................................................................................... 13

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

Russia considers extension of its renewable energy auction system beyond 2024 ..................................... 13

Indonesia is working on five programs to achieve geothermal targets........................................................ 13

India confirms that all solar components will be subjected to 5% tax, not 18% as planned ........................ 14

Indian state of Haryana exempts solar components from VAT .................................................................... 14

Maharashtra (India) government approves off-grid energy policy .............................................................. 14

Bihar (India) announces new renewable power policy with an aim to add 3,400 MW in five years ........... 14

Jordan adopted a National RE Action Plan aiming to source 12% of its power demand from renewables by 2020 .............................................................................................................................................................. 15

Jordan’s thriving net metering PV sector welcomes new 16.5 MW system................................................. 15

Zimbabwe returns to E10 as ethanol supplies increase ............................................................................... 15

Tanzania to open renewable energy technology training centre ................................................................. 15

City of Windhoek (Namibia) to start implementing net metering rules as of 1 July 2017 ........................... 15

Climate/renewable financing................................................................................................... 15

ADB commits USD 100 million in loan to Punjab National Bank to Finance Solar Rooftop Projects ............ 15

AfDB backs off-grid solar project in Zimbabwe ............................................................................................ 16

UAE-Caribbean Renewable Energy Fund in talks to fund projects ............................................................... 16

KfW Development Bank and EU launched Latin America Geothermal Power Fund (GDF) .......................... 16

Climate change/environmental news ...................................................................................... 17

Climate-threatened Bangladesh to impose carbon tax in June .................................................................... 17

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Renewable energy auctions

Concluded auctions Germany's 1st offshore wind tender delivers average prices at subsidy free EUR 0.44/kWh Source: bloomberg.com Date: 13 April 2017 Additional reading:

Reporting by Cleantechnica;

German’s electricity grid regulator approved bids to build what will be the first offshore wind farms that depend entirely on market prices instead of government support and subsidy. The decision by Bundesnetzagentur, or BNetzA, grants power purchase agreements for 1,490 megawatts of wind farms to be built in the North Sea. Developers promised to supply power from the facilities at a record-low weighted average of EUR 4.40 (USD 4.67)/MWh, less than a tenth of the previous offshore wind deal, the regulator said Thursday. The bids were “far below any expectations,” said BNetzA President Jochen Homann. They’re well beneath the market price for power in Germany, which has fallen 3.8% this year to EUR 30.10/MWh, according to broker data compiled by Bloomberg. Developers led by Energie Baden-Wuerttemberg AG and Dong Energy A/S are betting they can sell the electricity they produce from the wind farms at a profit even before considering government support. At least one bidder, EnBW, confirmed offering electricity at zero additional cost to the grid, suggesting it’s either confident about the strength of wholesale prices or that it’s already lined up a buyer for the power. “This is a big warning shot across the bow for other renewables and really great news for German rate payers,” said David Hostert, a wind-energy analyst at Bloomberg New Energy Finance in London. “Three of the four winning bids are practically merchant-risk projects that will mostly rely on the wholesale power market." The auction is a new feature of Germany’s renewable energy market, which started booming more than a decade ago when the government offered feed-in tariffs granting a fixed power price for all developers that qualified. That led to runaway installations of wind and solar farms. The government since restructured its support mechanisms as an auction where developers bid for power purchase agreements, making them compete against each other to supply at the cheapest rate possible. Developers must bid through the auction to get grid access for their projects. Hostert said that encourages bids of practically nothing from those confident they can supply near or below the expected the market price, a move necessary to ensure they secure authority to execute on their plan. Bids to supply for zero also protect developers from negative power prices that have cropped up recently at times when Germany’s wind and solar farms are all operating at capacity. The biggest wining project is EnBW’s 900 MW He Dreiht facility with a bid of zero euros a megawatt-hour, the Karlsruhe, Germany-based utility said in a statement. That could put pressure on bidders in subsequent rounds to keep offering lower prices. “Subsidy-free offshore wind!” Hostert said. “This is a moon-landing moment.” Next offshore wind auction is planned for April 2018. Germany's 1st onshore wind tender awards 807 MW Source: renewablesnow.com Date: 19 May 2017 Projects with a combined capacity of 807 MW won Germany’s first onshore wind auction, with the average successful bid being of EUR 57.1 (USD 63.7)/MWh. The Federal Network Agency (Bundesnetzagetur) said today that 65 of the 70 winning bids have been made by citizens' co-operatives developing community wind projects. The other five winning projects included three by a unit of Innogy SE.

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As previously announced, Germany is taking measures to limit the expansion of wind power in areas where the grid requires upgrades, especially in the north where the wind resource is better. In the tender there was a limit of 258 MW for contract awards in the network expansion area, which includes Schleswig-Holstein, Mecklenburg-Western Pomerania, Bremen and Hamburg, and the northern part of Lower Saxony. For community projects in that area the subsidy award in the auction arrived at EUR 55.8/MWh, while the other community projects got EUR 57.8/MWh. The tender received 256 proposals for a total capacity of 2.137 MW. Further calls for onshore wind are planned for August and November. The latest 500 MW tender by the Solar Corporation of India (SECI) drove the tariffs under USD 0.038/kWh Source: pv-magazine.com Date: 15 May 2017 In the 500 MW Bhadla Phase-III Solar Park auction, Acme Solar lodged the winning bid of INR 2.44 (USD 0.037)/kWh to develop 200 MW, while SBG Cleantech quoted INR 2.45 (USD 0.038)/kWh to bag an order for 300 MW. The new lowest tariff shows a 7% decrease on the previous cheapest price offered in the 250 MW Bhadla Phase-IV Solar Park INR 2.62 (USD 0.0405)/kWh just a week ago. Overall, 10 developers quoted tariffs below INR 3 (USD 0.046)/kWh, out of which six quoted a tariff lower than the previous low tariff of INR 2.62 (USD 0.0405)/kWh. The project will have a 12-month completion timeframe from the date at which the PPA is signed, and developers will enter 25-year PPAs with Solar Energy Corporation of India (SECI), the off-taker. Spain closed its renewable energy auction round with record low prices for wind projects Source: windeurope.org Date: 17 May 2017 Wind energy was awarded nearly all of the 3 GW available in the Spanish renewable energy auction whose results were announced on 17 May. The auction resulted in contracts for EUR 43/MWh, the maximum discount rate allowed under the Spanish tendering system. This is the lowest level ever awarded in an onshore wind tender in Europe. Only single PV project of 1.5 MW size was selected in the auction. The competitiveness of wind energy is a key factor. So is the fact, that the Spanish market has been paralysed for 3 years and has a large number of mature projects that need the promise of stable revenues to complete their financing. Giles Dickson, CEO WindEurope said: “The tender results show how onshore wind is today the cheapest option for new power generation. Some may think wind energy no longer needs subsidies. But it was the fact the auction offered a guaranteed minimum income that attracted investors and ensured there were enough bids to deliver the low price. And this is the point – it’s not subsidies but revenue stabilisation mechanisms, addressing the risk of wholesale price volatility that will be critical to the deployment of onshore wind across Europe at competitive costs. By offering revenue stability, auctions play a crucial role in enabling investors to finance a project – they’re key to making projects happen.”

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Namibia’s first renewable auction concluded with awarding contract to 45.5 MW solar PV project Source: allafrica.com Date: 23 May 2017 ALTEN Energías Renovables has won the tender put out by NamPower, Namibia's state electricity company, to develop, execute and operate what will be, as of today, the biggest photovoltaic solar power plant in Namibia and Sub-Saharan Africa (apart from South Africa), with installed capacity of 45.5 MW, an investment forecast at USD 45 million and a useful life of 25 years. The power produced by the new plant will meet 3% of the country's energy needs. In addition to commissioning the project, NamPower is also an investor, with a 19% stake. The new plant is being developed by Nampower, the country's state-owned electricity company, which also holds a stake, and will be one of the biggest in Sub-Saharan Africa with capacity of 45.5 MWp. The project has started the financial closure and implementation planning phases, with commissioning scheduled for early 2018.

Opened auctions Turkey tenders 1 GW of onshore wind in new auction system Source: windpowermonthly.com Date: 21 April 2017 In a notice in Turkey's Official Gazette, the ministry set a 27 July deadline for interested parties to present applications to participate in the first wind tender. It involves a reverse auction and gives successful bidders the possibility of building projects in seven separate areas. A ceiling price of USD 0.070/kWh has been set, just below the current ten-year feed-in-tariff base price of USD 0.073/kWh. Local content requirements — including the establishment of a local wind turbine factory — are key for participants in the new "renewable energy designated area" auction system, known by its Turkish acronym Yeka. Most of the workforce employed must also be local. The tender follows the allocation in March of 1 GW in solar capacity to a consortium made up of Turkish energy firm Kalyon Enerji and South Korea's Hanwha Q Cells through the first Yeka renewable energy auction. Turkey's cumulative wind capacity stood at 6.1 GW at end 2016, far below the 20 GW target for 2023. Russia opens its 5

th renewable tender for 2.8 GW capacity

Source: renewablesnow.com Date: 29 May 2017 On 29

th of May 2017 Russia opened its 5

th auction round for 2.8 GW of renewable generation capacity to be

commissioned between 2018 and 2022. Russian Association of Wind Power Industry (RAWI) reports that on the first day of the tender applications for 450 MW of wind projects were submitted. The planned volumes of required capacity in MW are as follows:

Renewables 2018 2019 2020 2021 2022

Wind 250 300 350 500 500

Photovoltaic (PV) 30.002 - 270 162.6 162.6

Hydroelectric stations below 25 MW - - 109.2 35.6 138.96

The selection process will take place in two phases, with the first to run till June 2. The second phase will be held between June 5 and June 9 and will be open only to updates to applications accepted in the first phase.

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France pre-selected 10 Dunkerque offshore wind bidders Source: offshorewind.biz Date: 16 May 2017 France’s energy regulatory Commission de régulation de l’énergie (CRE) has pre-selected ten bidders for the development of an offshore wind farm project with a capacity of up to 750 MW off Dunkerque. The companies selected, either alone or in a consortium, include Vattenfall, Statoil, Iberdrola in consortium with RES, Elicio, a consortium of Engie and EDPR, InControl France, a consortium of Belgium’s Parkwind and France’s Valeco, Deme Concessions Wind, a consortium of EDF EN with Innogy and Enbridge, and the Canadian Boralex with CMI5i Pastor. The winner of the tender is expected to be announced in early 2018, and the selected wind farm project with a capacity between 250 MW and 750 MW is expected to be commissioned in 2022. This is the third call for tenders launched by France for the development of offshore wind projects. South Australia seeks battery storage proposals from short-list Source: reneweconomy.com.au Date: 1 June 2017 South Australia says it is seeking final proposals for its battery storage tender from candidates short-listed from the more than 90 expressions of interest received last month. The state earlier this year announced its intention of putting in up to 100MW/MWh of battery storage onto its grid by the start of next summer to help ensure there were no repeats of the blackouts or load-shedding that occurred over the last 9 months. A final decision on the successful bidder will be made as soon as possible after responses are received, with the project expected to be completed by 1 December. Tunisia tenders 210 MW of wind and solar power Source: ippjournal.com Date: 26 May 2017 Additional readings:

Official tender call by the Ministry of Energy, Mines and Renewable Energies available here [FR]; The Tunisian government has launched a 210 MW wind and solar tender. The government, through the Department of Energy published an invitation to tender on May 11 with a budget of around TND 400 million (USD 164.2 million). Specifically, the tender seeks 70 MW of solar PV capacity and 140 MW of wind projects. Selected projects will sell electricity to the Tunisia’s state-owned utility Tunisian Company of Electricity and Gas (Société Tunisienne de l’électricité et du gaz - STEG) under a long-term power purchase agreement (PPA). For the 70 MW of new solar facilities, 10 MW will be assigned to PV projects up to 1 MW, and the remaining 60 MW will be allocated to solar power plants not exceeding 10 MW. The deadline to submit bids is 15 November 2017. For the wind tender, 120 MW of wind capacity will be assigned for wind projects up to 30 MW, while the remaining 20 MW will be allocated to projects up to 5 MW. The deadline to submit bids for 70 MW of the wind capacity is 15 November 2017, while the deadline for the remaining 70 MW of wind power is 15 August 2018. The country has plans to balance its electrical mix by increasing the renewable energy share from 1% now to 30% in 2030. This is expected to be achieved with the installation of 1 GW green capacity in 2017-2020 and 1.25 GW in 2021-2030.

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Botswana calls for expression of interest for 100 MW solar PV project Source: pv-magazine.com Date: 30 May 2017 Additional readings:

Call for expression of interested by BPC available here; The Botswana Power Corporation (BPC) is seeking a partner for a 100 MW solar power plant project with energy storage capacity in the country. The company will be accepting expressions of interest (EoIs) by June 14. Power generation companies, independent power producers (IPPs), project developers and captive power producers can participate. After the shortlisting of potential bidders, BPC plans to issue a Request for Proposal (RfP). The power company will be a partner in the joint venture that will develop, install, and operate the solar project. It will also be the entity buying the power by the future solar farm under a power purchase agreement (PPA). Botswana’s current peak demand stands at some 600 MW, but it is expected to at least double by 2035, according to the national electricity demand forecast for 2015-2035. The most likely scenario is for demand of about 1,360 MW at the end of the period, while the low and high scenarios see that at 1,184 MW and 1,523 MW, respectively. The 100 MW solar power project is in line with the country’s power strategy. BPC said the plant will improve the security and reliability of energy supply, increase the use of renewable energy, and reduce Botswana’s carbon footprint. Sri Lanka to tender 100 MW floating solar plant Source: pv-tech.org Date: 3 March 2017 Sri Lanka will go ahead with an international tender to set up a 100 MW floating solar plant on the Maduru Oya Reservoir in the eastern part on the island. The Cabinet of Ministers approved the programme for solar to cover around 4% of the reservoir, the equivalent of 202 hectares. This is the first step in a previously approved wider plan to set up floating PV plants on various dams and reservoirs, which are governed by the Mahaweli Authority, across Sri Lanka.

Scheduled/future auctions Mexico to hold third renewable energy auction in November 2017 Source: pv-magazine.com Date: 2 May 2017 Mexico’s energy ministry has announced that the next renewable energy auction will be held in November. In this auction, which is the third of this kind to be conducted in Mexico, selected projects will be entitled to sell power to more entities, and not only to the local utility Comisión Federal de la Electricidad (CFE), as in the first two auctions.

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Chile to contract 2 GWh of power in upcoming electricity auction to take place in December 2017 Source: pv-magazine.com Date: 29 May 2017 Chile’s upcoming power auction will be held in December and not, as previously announced, in October, and through it the Chilean government intends to contract 2 GWh of power. The auction Licitación de Suministro 2017/01, as the auction held last year, will include time of day-specific supply blocks for solar power projects. Power plants selected in the auction must begin delivering power to the local electricity suppliers in January 2024. Projects that encounter problems with environmental permits, however, could be granted a two-year delay. Rodrigo Castillo explained, that it is not important that the bids for solar projects will be lower than last year’s lowest bid, which was USD 29/MWh, but that these will be lower than the average price registered for solar projects in the 2016 auction, which were around USD 40/MWh. Tamil Nadu (TANGEDCO) plans to procure 1.5 GW of solar PV capacity Source: thehindu.com Date: 22 April 2017 The Tamil Nadu Generation and Distribution Corporation (Tangedco) plans to procure 1500 MW of solar power through reverse bidding process at an upper limit of ₹4 per unit. Recently, the Tamil Nadu Energy Regulatory Commission (TNERC) had fixed a solar tariff of ₹4.50 per unit excluding accelerated depreciation benefits for the period starting April 1, 2017. Tangedco has cut the upper limit for the bidding to ₹4 from ₹ 4.50 per unit in the preceding tender — a 11% decrease. It has filed a petition with the TNERC for approval, said a Tangedco official. Tangedco’s previous two tenders for procuring 500 MW of solar power each have received tepid response. In its last tender for procuring 500 MW of solar power, Tangedco received bids from 16 bidders for setting up capacity of 224 MW at a tariff of ₹4.40 per unit. The benchmark tariff fixed for the tender was ₹4.50 per unit. In an earlier tender for 500 MW, it only finalised bids for 20 MW. The TNERC has set a renewable energy purchase obligation of 2.5% for the financial year 2016-17 and 5% for 2017-18. To meet this target, 1500 MW of solar power is required for FY 2016-17 and 3200 MW for FY 2017-18. Saudi Arabia to offer 1 GW of renewable contracts in 2017 Source: bloomberg.com Date: 24 April 2017 Saudi Arabia will offer as much as 1 gigawatt of contracts to buy renewable electricity by the fourth quarter of this year, a government official said, putting more detail on a program designed to stimulate the kingdom’s wind and solar industry. The government will auction power-purchase agreements covering 620 megawatts of photovoltaic installations and 400 megawatts for wind farms in its second round of tenders for the technologies, said Turki al-Shehri, head of renewable energy project development at the Ministry of Energy, Industry and Mineral Resources. Saudi Arabia launched opened at the beginning of the year auction round to procure 300 MW of solar PV and 400 MW of onshore wind projects. In early April country cleared 51 companies to participate in the bid.

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Poland will hold renewable electricity auctions in June 2017 Source: ure.gov.pl Date: 29 May 2017 Further materials on auction:

Auction details available at bip.ure.gov.pl; On 29

th of May 2017, the Polish energy regulator (URE) announced the first two renewable power auctions to

be held on 29 and 30 June 2017. New renewable installations that will start generation after auction closure and which are no larger than 1 MW are invited to participate in the auction on 29

th of June 2017. The maximum electricity volume to be sold in

that auction is 4,725 GWh and will be offered for a maximum total price of PLN 2.2bn (EUR 523m). Existing renewable facilities meeting some criteria (up to 1 MW, utilisation of more than 3,504 MWh/MW/year and emitting up to 100 kg/MWh) may participate in the 30 June auction, where 1.485 GWh will be offered for a maximum price of PLN 631m (EUR 152m). Only projects that have received a certificate of admission can participate in the auction. Each auction will last one day. Operators may place their bids through an on-line platform. Bidders with the lowest electricity price will be selected, until the entire quantity of the electricity sold in the auction is reached. On 3

rd of April Poland adopted two regulations setting financial parameters for renewable energy auctions to

take place in 2017. Further details in a separate entry in this newsletter titled: “Poland publishes financial parameters for renewable energy auctions to take place in 2017”. Spain to launch another 3 GW renewable energy auction before the summer Source: pv-magazine.com Date: 26 May 2017 Spain’s Ministry of Industry has announced that it will hold another 3 GW renewable energy auction on an unspecified date “before the summer”. The Spanish government said that a significant amount of wind and PV power projects did not qualify for the 3 GW auction it held two weeks ago, and in which only a 1.5 MW solar project was ultimately selected, that will likely compete in the upcoming auction. The ministry stressed that project proposals submitted in the latest auction were three times higher than the allocated capacity, which was granted almost exclusively to wind power plants. The Ministry added that the latest auction also showed that wind and solar are now competitive at market prices. The government also said that PV and wind will “compete on a competitive basis, in order to enable the selection of projects that are more cost efficient.” The government, however, has failed to specify how it will proceed in the event of a tie between solar and wind. In the latest auction, in fact, wind power was given priority in case of such an event.

Feed-in/premium tariffs Queensland may change solar tariffs to match peak demand Source: reneweconomy.com.au Date: 30 May 2017 The Queensland government has asked the state’s Competition Authority to report on the potential benefits of introducing of time-of-use solar tariffs in the state over the next year, marking the latest move by the nation’s state governments to offer consumers a fairer price for their rooftop solar generation. The move by the Palaszczuk government follows recent tariff changes in Victoria, where a premium for solar – because it produces during the day – was added to the existing feed-in tariff, along with avoided loss factors on transmission lines, and avoided costs of carbon, taking the tariff to a minimum USD cents 11.3kWh, up from a previous USD cents 5/kWh. Queensland currently has a feed in tariff of USD cents 6-8/kWh – which is voluntary in south east Queensland but mandatory USD cents 6-8/kWh in regional areas where Ergon operates.

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Vietnam launched FIT support system for grid connected solar PV and opened a net metering program Source: bakermckenzie.com Date: April 2017 Further materials:

Link to national legislation available here; The Government of Vietnam has released Decision No. 11 as the new official policy for the development of solar power projects in Vietnam. Decision No. 11 is aimed at enabling the private sector to invest in clean energy sources that can help meet the country’s surging demand for electricity. Among other things, it provides for a Feed-in-Tariff (FiT) of USD cents 9.35/kWh for grid-connected projects, as well as a net-metering scheme for rooftop projects.

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Other renewable energy news

OECD Switzerland backs Energy Strategy 2050 and votes for nuclear exit in lieu of renewables Source: enerdata.net Date: 22 May 2017 Swiss voters have approved the Energy Strategy 2050, which targets a nuclear exit, an increase in the share of renewable energies and the improvement of the energy efficiency. The law was adopted by the National Council in late September 2016 and had to be approved through a referendum. Under the proposed Energy Strategy 2050, Switzerland maintains the interdiction of new nuclear power plants and plans a gradual phase out of the five existing, ageing reactors. The country aims to reach 4.4 TWh of renewable power generation by 2020 (excluding hydropower) and 11.4 TWh by 2035. Hydropower generation should reach at least 37.4 TWh in 2035. The strategy details injection obligations and retribution conditions for renewable power generation, the investment contribution for solar PV, hydropower and biomass-fired power plants and other support measures. In addition, the strategy aims to reduce the average energy consumption per inhabitant and per year, by 16% by 2020 and by 43% by 2035, compared to 2000 levels. The average electricity consumption (per inhabitant and per year) should be reduced by 3% by 2020 and by 13% by 2035, still compared to 2000 levels. Poland publishes financial parameters for renewable energy auctions to take place in 2017 Source: dentons.com Date: 24 April 2017 On 3 April 2017 two regulations were published in the Journal of Laws which set out the financial parameters of auctions for renewable energy sources ("RES") that will be held in 2017. The government is planning to spend more than PLN 27 billion (approximately EUR 6.5 billion) on support for producers in auctions, which will generate over 55 TWh of electricity over 15 years. The parameters of the auctions are set as follow:

In 2017, fourteen auctions (i.e.: fourteen baskets of certain specifications) will be organized, each of them dedicated to different groups of installations. Nearly 75% of the funds (PLN 20 billion) will be allocated to the new Installations. Nearly 63% of all funds (PLN 17 billion) will be allocated to large Installations (above 1 MW).

So-called stable installations will be the most favoured group of installations. The largest part of the funds is allocated to a basket of high-efficiency installations (37% of funds in 4 auctions). Biomass installations are expected to be a dominant group in this basket. Significant funds (35% in 4 auctions) will be allocated to agricultural biogas installations.

It is planned to allocate funds to waste-to-energy projects, which should assure the construction of installations with nearly 150 MW of total capacity (1 auction dedicated for new, large Installations). Part of the funds is also allocated to a basket dedicated to hydro-electric plants, both existing and new ones (3 auctions).

Another part of the budget is allocated to a basket for new Installations covering "other installations" (15% of funds in 2 auctions). In this basket, two auctions are planned: (i) for small installations that, according to the government's intention, will result in the construction of 300 MW new photovoltaic projects, and (ii) for large Installations, where support could be obtained by nearly 150 MW new wind projects. Significant competition is expected in these two auctions.

Installations participating in an auction cannot apply for higher support than the "reference price", which is determined for each year. The reference price is set separately for 21 categories of installations. In 2017, for example this price will be PLN 350 per MWh for large installations using wind and PLN 450 per MWh for small installations using solar energy.

The Auction System is dedicated mainly to new installations, but existing installations can also transfer to this system (in such case they lose a right to participate in system of certificates). This system is intended to assure the future development of RES, but in a controlled and predictable manner – this may be pursued through the allocation of budgets to auctions where installations favoured by the government start and through the reduction of budgets for auctions for unwanted installations.

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European Parliament votes nearly unanimously to phase out use of palm oil in biofuels by 2020 Source: biofuelsdigest.com Date: 4 April 2017 Further reading:

EP resolution on palm oil and deforestation of rainforests available here; In Belgium, to counter the impact of unsustainable palm oil production, such as deforestation and habitat degradation, particularly in South-East Asia, the EU should introduce a single certification scheme for palm oil entering the EU market and phase out the use of vegetable oils that drive deforestation by 2020, say MEPs in a resolution voted on Tuesday. “We want an open debate with all players so we can make palm oil production sustainable, without cutting down forests and in compliance with dignified human rights conditions”, said Kateřina Konečná (GUE/NGL, CZ) who drafted the resolution, which was approved by 640 votes to 18, with 28 abstentions. MEPs note that various voluntary certification schemes promote the sustainable cultivation of palm oil. However, their standards are open to criticism and are confusing for consumers, they say. They advocate a single certification scheme to guarantee that only sustainably produced palm oil enters the EU market. They also call on the EU to introduce sustainability criteria for palm oil and products containing palm oil entering the EU market. The Commission should improve the traceability of palm oil imported into the EU and should consider applying different customs duty schemes that reflect real costs more accurately until the single certification scheme takes effect. Trump administration drafts budget slashes DOE and EPA funding in favour of nuclear Source: pv-tech.org Date: 23 May 2017 The latest draft of the Trump administration’s 2018 federal budget calls for cuts to clean energy and environmental-related departments, while providing a boost to nuclear power. From the campaign trail, Trump had pledged to get rid of “burdensome regulations” and the draft budget reflects that in light of the president’s views on clean energy and climate action. The leaked Department of Energy budget cuts aptly foreshadowed what the administration had in store for the nation’s clean energy, and science-focused departments. The budget features an overall cut to the Department of Energy (DOE), but an 11.4% financial boost to its nuclear weapons budget. All other DOE energy programmes such as the SunShot Initiative will get an 18% budget cut. This would reduce funding for the Department’s science and research limb – affecting pioneering clean energy research labs such as the National Renewable Energy Laboratory (NREL). California Senate passes 100% Clean Energy and Environmental Protection Bills Source: d24.senate.ca.gov Date: 26 May 2017 On 31

st of May 2017 the California State Senate passed Senate Bill 100 (SB 100) which set California on a path

to 100% clean renewable energy by the year 2045. The measure was approved on a 25-13 vote. The bill is passed among reports that President Trump plans to pull the United States out of the landmark Paris Climate Accord. "We woke up this morning to extremely upsetting news - that the President intends to withdraw from the Paris agreement." Senator de León said. "That's why California's leadership is critical. We're showing the way forward, and we're sending a clear message to the rest of the world that no president, no matter how desperately the try to ignore reality, can halt our progress." Nevada passes bill to increase state RPS to 80% by 2040 Source: pv-tech.org Date: 31 May 2017 The Nevada Assembly passed a bill that ramps up the state’s renewable portfolio standard (RPS). Regulation AB 206 was passed in the House and will accelerate the state’s current mandate to 80% renewable energy sources by 2040, with an interim goal of 50% by 2030. The current RPS sits at 25% by 2025.

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Atlanta commits to 100% renewable energy by 2035 Source: www.pv-tech.or Date: 4 May 2017 On 1 May, lawmakers committed the city to run on entirely clean energy sources, including wind and solar. The city council unanimously approved the measure, which will first transition all city buildings by 2025, and include the rest of the city by 2035. Lego goes 100% renewable Source: ecowatch.com Date: 20 May 2017 Danish plastic building blocks manufacturer Lego has achieved its goal of being 100% renewable three years early thanks to concerted efforts to rely on solar and wind power at its facilities worldwide. Having embarked in 2012 on a mission to install, own or operate more than 160 MW of renewable energy, the Lego Group last week reached its target following its acquisition of a 25% stake in the 258 MW Burbo Bank Extension offshore wind farm off the coast of Liverpool, U.K.

Non-OECD Russia considers extension of its renewable energy auction system beyond 2024 Source: rawi.ru Date: 29 May 2017 Russian Minister of Energy stated during a meeting with representatives of the renewable energy sector in Russia that the country’s renewable energy auction system could be updated to include additional renewable technologies and extended beyond 2024. Indonesia is working on five programs to achieve geothermal targets Source: thinkgeoenergy.com Date: 30 May 2017 The Indonesian Energy and Mineral Resources Ministry is focusing their efforts to boost the development of geothermal power plants to 7.2 GW by 2025 from their current 1,698.5 MW capacity. Director for Geothermal at the Directorate for New, Renewable and Energy Conservation of the energy ministry (EBTKE) Yunus Saefulhak states that Indonesia will need to develop 5.5 GW of geothermal power capacity in order to reach this goal. To achieve their goal the Indonesian Energy and Mineral Resources Ministry is focusing their efforts on the following five goals:

Auction of five geothermal WKs in 2017 in eastern Indonesia, which are commercially viable and attractive to investors

Commission public agencies (Badan Layanan Umum/BLU) and state owned companies to conduct exploration and production of geothermal energy in areas that are less economically viable

Simplify the permitting process for investors planning to develop geothermal energy through a “one-door” investment permit policy at BKPM (National Investment Coordinating Board);

Mandate that certain companies or parties have the capability or interest in geothermal energy development to conduct preliminary survey and exploration (PSPE) in eastern Indonesia.

Establish a “Geothermal Fund” to incentivize investors planning to develop geothermal energy in Geothermal WKs in Eastern Indonesia.

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India confirms that all solar components will be subjected to 5% tax, not 18% as planned Source: pv-magazine.com Date: 29 May 2017 India’s revenue secretary Hasmukh Adhia has confirmed that solar components will only be subject to a 5% Goods and Services Tax (GST) when the new rates are implemented on July 1, allaying fears within the solar industry that solar cells and modules were set to be slapped with a GST of 18%. Week before it was widely reported that the GST Council would be placing solar cells and modules into the highest GST slab of 18% – a move that had served to all-but halt solar project development in India, Mercom Capital Group reported. However, over the weekend reports emerged that the government was reconsidering this proposal given the negative response from industry. The minister’s tweet appears to allay most of the industry’s fears that hiked module and cell taxes could add up to 16% on a typical solar project’s costs. This lower tax band, while still higher than the current 0% GST levied on solar cells and modules, will likely be welcomed as a sensible compromise, putting solar on par with wind and coal components. Indian state of Haryana exempts solar components from VAT Source: pv-magazine.com Date: 19 May 2017 Officials in the Indian state of Haryana have exempted solar devices, equipment, and all related installation components from Value Added Tax (VAT) in order to help support solar’s growth in the state, reports the Hindu Business Standard. Those components listed as VAT exempt by the state government include solar lanterns, solar home systems, standalone street lighting systems, solar water systems and all types of solar chargers and PV inverters. Haryana government’s principal secretary for the New and Renewable Energy Department Ankur Gupta confirmed the announcement on May 8, and said that government subsidy would be offered at a rate of 30% of the benchmark cost – up to INR 20,000 kWh – for certain buildings that set up grid-connected rooftop PV. There will also be net metering available for solar owners, while five acres of land have been acquired for the creation of a 1 MW solar project. Maharashtra (India) government approves off-grid energy policy Source: business-standard.com Date: 25 January 2017 Maharashtra Cabinet on Monday approved integrated solar off-grid energy policy to encourage use of new and renewable energy. The policy aims to enhance use of green energy to preserve environment and curb the burgeoning issue of waste disposal. The policy envisages use of more solar products, bio gas and bio fertiliser plants in housing societies, government and private offices and other establishments. Decentralised micro grid projects will be initially set up in two non-electrified villages on pilot basis in two years on 100% government subsidy. Bihar (India) announces new renewable power policy with an aim to add 3,400 MW in five years Source: energy.economictimes.indiatimes.com Date: 29 May 2017 Under the policy, the state government is mulling setting up 2,984 MW capacity based on solar energy, 282 MW on biogas and 200 MW small hydropower plants. Of the total solar capacity, the state plans to set up 1,000 MW rooftop solar projects and 1,00 MW as mini grid projects

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Jordan adopted a National RE Action Plan aiming to source 12% of its power demand from renewables by 2020 Additional sources:

Jordan’s The National RE Action Plan 2016-2020 available here; Under the plan approved on Tuesday, dubbed “The National Renewable Energy Action Plan for the Repub lic of Lebanon 2016-2020”, the Middle Eastern country aims at covering 12% of its electricity demand with renewable energies by 2020, with solar PV and CSP expected to cover 4.2% of demand. Currently, renewables account for around 4% of Lebanon’s electricity mix. As for the PV technology, the plan envisages the development of both large-scale projects (150 MW) through a tender mechanism and distributed generation solar projects (30 MW) through a net-metering scheme. Jordan’s thriving net metering PV sector welcomes new 16.5 MW system Source: pv-magazine.com Date: 9 May 2017 A few days after reporting on Jordan’s largest net metering PV system of 17 MW capacity, it appears that a new system of just 500 KW less capacity is also under way. Jordan’s commercial net metering PV sector appears to be on an encouraging upward trajectory. Cheap PV technology, an excellent solar resource and Jordan’s energy market dynamics make the country’s net metering PV sector highly attractive, with current installations exceeding 100 MW of capacity. Zimbabwe returns to E10 as ethanol supplies increase Source: biofuelsdigest.com Date: 29 May 2017 In Zimbabwe, the government has returned the ethanol-blending mandate to 10% following the restart of the sugarcane crush in May after lack of supply availability forced it to cut blending down to 5%. Both Green Fuel and Triangle are allowed to supply ethanol to the domestic market. E10 is retailing for between USD 1.35 and USD 1.39 per liter amidst complaints that other countries in the region are selling E0 fuel for between USD 1 and USD 1.29 per liter, including other landlocked countries. Tanzania to open renewable energy technology training centre Source: esi-africa.com Date: 29 May 2017 Following a study revealing that renewable energy, particularly solar, is dominating rural Tanzania, there are now plans to open a training centre. According to local media, Tanzania Standard, Dr Rhee said the renewable energy technology centre will open doors in August this year, and will have the capacity to train 1,000 students per year. Development testifying to a strong drive within Tanzania to develop renewables. City of Windhoek (Namibia) to start implementing net metering rules as of 1 July 2017 Source: esi-africa.com Date: 22 May 2017 The City of Windhoek has announced it will commence implementing net metering rules with effect from 1 July 2017. According to local media the New ERA, this development follows after the gazetting of the net metering rules in November 2016.

Climate/renewable financing ADB commits USD 100 million in loan to Punjab National Bank to Finance Solar Rooftop Projects Source: adb.org Date: 30 May 2017 The Asian Development Bank (ADB) and the Punjab National Bank (PNB) signed a USD 100 million loan — to be guaranteed by the Government of India — that will finance large solar rooftop systems on industrial and commercial buildings throughout India. The PNB will use the ADB funds to make further loans to various developers and end users to install rooftop solar systems.

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This is the first tranche loan of the USD 500 million multitranche finance facility Solar Rooftop Investment Program (SRIP) approved by ADB in 2016. The financing includes USD 330 million from ADB’s ordinary capital resources and USD 170 million from the multidonor Clean Technology Fund (CTF) administered by ADB. The first tranche loan of USD 100 million would be financed entirely from the CTF. AfDB backs off-grid solar project in Zimbabwe Source: esi-africa.com Date: 10 May 2017 The Sustainable Energy Fund for Africa (SEFA), an arm of the African Development Bank (AfDB), has approved a USD 965,000 grant for a 20 MW off-grid solar project in Zimbabwe. The project installations will occur on several Old Mutual Property Group Zimbabwe-owned buildings. The generated power will offset any power interruptions caused to the small and medium sized businesses within these buildings. SEFA said the project will lead to displacement of more than 12 million liters of diesel per year. UAE-Caribbean Renewable Energy Fund in talks to fund projects Source: gulfnews.com Date: 23 May 2017 The UAE-Caribbean Renewable Energy Fund is in talks with six Caribbean countries to fund renewable energy projects, it was announced on Tuesday. The USD 50 million (Dh 183 million) grant fund, which was launched earlier this year operates under the management of Ministry of Foreign Affairs and International Cooperation (MOFAIC), whereas Abu Dhabi Fund For Development (ADFD) provides the grant funding, and Masdar leads in implementation. “The UAE-Caribbean Renewable Energy Fund, is expected to sign about four to six project agreements in its first cycle, and the second cycle talks with additional countries are anticipated by the fall of this year,” Adel Al Hosani, Director of Operations at ADFD. The Fund was launched in January 2017.

KfW Development Bank and EU launched Latin America Geothermal Power Fund (GDF) Source: gdflac.com Date: 25 April 2017 Additional reading:

13 finalists chosen in run up for funding under GDF program for Latin America by ThinkGeoenergy; On 25

th of April 2017 KfW Development Bank in conjunction with the European Union has launched a EUR 55

million geothermal power fund for Latin America to focus on early stage development of geothermal technology in the region. The goal is to be a catalyst to 350 MW of installed geothermal power capacity in Latin America over the next ten years. GDF will achieve this by providing feasibility study funding of as much as EUR 600,000 and exploratory drilling funding for up to €5.8 million per project to qualified applicants in Chile, Bolivia, Peru, Ecuador, Colombia, Costa Rica, Nicaragua, Honduras and Guatemala. Since its launch, GDF opened its first call for expression of interests for geothermal projects in Latin America and on 24 May 2017 thirteen chosen projects were announced from 25 parties that submitted their proposals. Final grant approvals are expected to be finalised in Q4 of 2017. The second call is expected to be opened by the GDF by the end of 2017.

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Climate change/environmental news

Climate-threatened Bangladesh to impose carbon tax in June Source: reuters.com Date: 23 May 2017 Bangladesh is set to impose its own carbon tax on fuel next month – despite the hugely climate-vulnerable country producing relatively tiny per capita emissions. The tax is expected to be put in place on June 1 as part of the country’s annual budget and will be part of a larger bundle of “green” measures, Nojibur Rahman, chair of the National Board of Revenue, told the Thomson Reuters Foundation in a telephone interview. Many businesses and environmental groups have welcomed the plan, saying that Bangladesh – one of the countries considered most threatened by climate change impacts – needs to make a strong statement as governments like that in the United States pull back from action on climate change. The new tax may not make any significant contribution to achieving the Paris Agreement’s goal of keeping average global temperature increases below 2 degrees Celsius above pre-industrial levels, they said. But “when a country pollutes, the other countries are also affected. So, we need to reduce carbon emission as much as possible and imposing a tax is only way to do it,” said Abdul Matlub Ahmad, outgoing president of the Federation of Bangladesh Chambers of Commerce and Industry. He said the tax would not only raise the price of using fossil fuels but the added income could help push more use of renewable energy.

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