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Trends, Challenges and Opportunities At the international level, the creation of the International Renewable Energy Agency (IRENA) in 2009 indicates a willingness of governments to work collaboratively on expanding the role of renewable energy. Continued international climate negotiations provide a further driver for greening the energy sector. For example, several developing countries have submitted Nationally Appropriate Mitigation Actions (NAMAs) under the United Nations Framework Convention on Climate Change (UNFCCC). NAMAs are voluntary country engagement proposals aimed at reducing or limiting GHG emissions and to facilitate the transition to low-carbon growth for different sectors of the economy. The submissions of NAMAs by developing countries include significant plans for wind, geothermal, biomass and solar projects.2 There are also specific requirements for renewable energy in subsections of the economy, for example transport. The EU RED, for instance, requires a ten per cent share of renewable energy in the transport sector by 2020 and the EU’s Fuel Quality Directive sets a target to reduce GHG emissions from fuels used in the transport sector by 6 per cent until 2020. The contribution from biofuels to these targets is expected to be significant. To avoid possible negative side effects, such as those discussed in section 6.2.2, both Directives impose sustainability criteria that biofuels and bio liquids need to meet in order to be counted towards the targets and receive support. These sustainability criteria aim to prevent the direct conversion of forests and wetlands and areas with a high biodiversity value for biofuel production. The sustainability criteria also require minimum GHG reductions for biofuels compared to the fossil fuels they replace (up to 50 per cent in 2017, and up to 60 per cent in 2018 for installations that started operating in 2017 or later).3 The EU and Japan have furthermore implemented legislation to govern the manufacture of hydrogen vehicles in the transport sector. On hydrogen/fuel-fuel cell vehicles, the United Nations Economic Commission for Europe (UNECE) also has an informal working group that is currently developing proposals for a Global Technical Regulation on hydrogen fuel cell vehicles (UNECE 2012). In addition, there are several voluntary codes and standards developed by international standards-setting organisations, including the International Standards Organization (ISO) (OICA 2012). 6.3.4 Infrastructure for renewable energy trade A key stumbling block to trade in renewable energy are the technical difficulties of electricity storage and transmission. In view of the mostly intermittent nature of renewable energy supplies and a lack of significant transmission capacities, the location of renewable energy infrastructure is crucial. Being situated near a large consumer base is vital to the success of building up a domestic power generating industry, which could then also serve as the basis for electricity exports. In respect of storability and transmission, trade in renewable-energy-based electricity is different from trade in tangible goods. Storage technologies are a critical solution for the national integration and trade in energy from variable renewable energy sources, especially wind, solar PV, and some marine-energy technologies. Electricity trade also often requires investment in new transmission lines (interconnectors), particularly if expensive high voltage direct current (HVDC) transmission links are required. Other potential measures to increase renewable energy trade include grid interconnection, demand side management, the diversification of energy portfolios and the availability of back-up capacities. Despite current issues, the technology to store and transfer electricity is developing. Technological improvements can act as a key driver to exports of renewable energy. For example, so-called “supergrids”, which can reach up to 500 km or further, have been proposed by analysts to update and extend transmission grid capacities. Hydrogen, which can be in two forms – stationary (e.g. in an electric grid connection to provide supplemental power) or portable (e.g. hydrogen fuel cells for the transportation sector) – presents particular infrastructure issues. Hydrogen could become a major component of clean sustainable energy systems in the longer term, particularly as it can provide storage options for intermittent renewable technologies such as solar and wind. Nevertheless, the hydrogen economy remains in its nascent stages and its market is limited to very few countries across the world. So far, only a few developing countries are participating in the hydrogen technology development (Mytelka and Boyle 2008). Building the infrastructure required to make hydrogen 2. See list of NAMAs at http://unfccc.int/meetings/cop_15/copenhagen_accord/items/5265.php. 3. In addition, following a review on the impact of indirect land use change on GHG emissions, in October 2012, the European Commis- sion proposed further legislation to minimise the climate impact of biofuels (EC 2012a). 229 Renewable EnergyPDF Image | Renewable Energy
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