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GLOSSARY 210 FISCAL INCENTIVE. An economic incentive that provides individuals, households, or companies with a reduction in their contribution to the public treasury via income or other taxes, or with direct payments from the public treasury in the form of rebates or grants. GENERATION. The process of converting energy into electricity and/or useful heat from a primary energy source such as wind, solar radiation, natural gas, biomass, etc. GEOTHERMAL ENERGY. Heat energy emitted from within the Earth’s crust, usually in the form of hot water or steam. It can be used to generate electricity in a thermal power plant or to provide heat directly at various temperatures for buildings, industry, and agriculture. GREEN ENERGY PURCHASING. Voluntary purchase of renewable energy—usually electricity, but also heat and transport fuels—by residential, commercial, government, or industrial consumers, either directly from an energy trader or utility company, from a third-party renewable energy generator, or indirectly via trading of renewable energy certificates (RECs, also called green tags or guarantees of origin). It can create additional demand for renewable capacity and/or generation, often going beyond that resulting from government support policies or obligations. HEAT PUMP. A device that transfers heat from a heat source to a heat sink using a refrigeration cycle that is driven by external electric or thermal energy. It can use the ground (geothermal), the surrounding air (aerothermal), or a body of water (hydrothermal) as a heat source in heating mode, and as a heat sink in cooling mode. A heat pump’s final energy output can be several multiples of the energy input, depending on its inherent efficiency and operating condition. The output of a heat pump is at least partially renewable on a final energy basis. However, the renewable component can be much lower on a primary energy basis, depending on the composition and derivation of the input energy; in the case of electricity, this includes the efficiency of the power generation process. The output of a heat pump can be fully renewable energy if the input energy is also fully renewable. HYDROPOWER. Electricity derived from the potential energy of water captured when moving from higher to lower elevations. Categories of hydropower projects include run-of-river, reservoir-based capacity, and low-head in-stream technology (the least developed). Hydropower covers a continuum in project scale from large (usually defined as more than 10 MW of installed capacity, but the definition varies by country) to small, mini, micro, and pico. HYDROTREATED VEGETABLE OIL (HVO). A “drop-in” biofuel produced by using hydrogen to remove oxygen from waste cooking oils, fats, and vegetable oils. The result is a hydrocarbon fuel that blends more easily with diesel and jet fuel than does biodiesel produced from triglycerides as fatty acid methyl esters (FAME). INVESTMENT. Purchase of an item of value with an expectation of favourable future returns. In this report, new investment in renewable energy refers to investment in: technology research and development, commercialisation, construction of manufacturing facilities, and project development (including construction of wind farms, purchase and installation of solar PV systems). Total investment refers to new investment plus merger and acquisition (M&A) activity (the refinancing and sale of companies and projects). INVESTMENT TAX CREDIT. A taxation measure that allows investments in renewable energy to be fully or partially deducted from the tax obligations or income of a project developer, industry, building owner, etc. JOULE / KILOJOULE / MEGAJOULE / GIGAJOULE / TERAJOULE PETAJOULE / EXAJOULE. A Joule (J) is a unit of work or energy equal to the energy expended to produce one Watt of power for one second. For example, one Joule is equal to the energy required to lift an apple straight up by one metre. The energy released as heat by a person at rest is about 60 J per second. A kilojoule (kJ) is a unit of energy equal to one thousand (103) Joules; a megajoule (MJ) is one million (106) Joules; and so on. The potential chemical energy stored in one barrel of oil and released when combusted is approximately 6 GJ; a tonne of oven dry wood contains around 20 GJ of energy. LEASING OR LEASE-TO-OWN. A fee-for-service arrangement in which a leasing company (generally an intermediary company, co-operative, or NGO) buys stand-alone renewable energy systems and installs them at customer sites, retaining ownership until the customer has made all payments over the lease period. Because the leasing periods are longer than most consumer finance terms, the monthly fees can be lower and the systems affordable to a larger segment of the population. LEVELISED COST OF ENERGY (LCOE). The unique cost price of energy outputs (e.g., USD/kWh or USD/GJ) of a project that makes the present value of the revenues equal to the present value of the costs over the lifetime of the project. MANDATE/OBLIGATION. A measure that requires designated parties (consumers, suppliers, generators) to meet a minimum, and often gradually increasing, target for renewable energy, such as a percentage of total supply or a stated amount of capacity. Costs are generally borne by consumers. Mandates can include renewable portfolio standards (RPS); building codes or obligations that require the installation of renewable heat or power technologies (often in combination with energy efficiency investments); renewable heat purchase requirements; and requirements for blending biofuels into transport fuel. MARKET CONCESSION MODEL. A model in which a private company or NGO is selected through a competitive process and given the exclusive obligation to provide energy services to customers in its service territory, upon customer request. The concession approach allows concessionaires to select the most appropriate and cost-effective technology for a given situation.PDF Image | About ElectraTherm
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