A Critical Review of Sustainable Energy Policies for the Promotion of Renewable Energy Sources
Abstract
:1. Introduction
2. Framework of Sustainable Energy Policy
2.1. United States of America Energy Policy Context
2.2. Germany Energy Policy Context
2.3. United Kingdom Energy Policy Context
2.4. Denmark Energy Policy Context
2.5. China Energy Policy Context
3. Modelling Sustainable Energy Policy
- Effectiveness (Extent to which the objectives are met);
- Efficiency (Innovation with decrease in costs);
- Equity (Fair distribution of the rents between RE developer and government);
- Institutional feasibility (Extent political support is provided to the policy);
- Replicability (Extent to which the policy can be adopted in other countries).
4. Effective Policies for Promotion of Sustainable Energy
- Delivering adequate and affordable energy supplies
- Encouraging energy efficiency
- Accelerating the use of new renewables
- Widening the diffusion and use of other advanced energy technologies
4.1. Energy Efficiency Standard (EES)
4.2. Feed-in-Tariff (FiT)
4.3. Building Energy Performance Certification (BEPC) Schemes
5. Concluding Remarks
- (1)
- Establish a trustworthy and reliable database system for policy analysisA new energy policy is usually proposed based on the current technology and related database system. To avoid incorrect input data, it is also important to ensure that quality and accuracy of the data in the database is not compromised. Information transfer can be tracked using technologies such as Blockchain Technology. Only a highly reliable database can benefit from effective design of future energy policy and the development of corresponding building renovation strategies. Based on the database system, when and where the policy implementation requires adjustment (e.g., the adjustment of energy-efficiency standards for building materials) can be identified by national and local authorities.
- (2)
- Increase information transparency and provide recommendations for building energy saving measuresThe database should contain at least the basic information, e.g., building type, year of construction, floor area, heated floor area, energy consumption per year, energy label, carbon emission, energy-saving recommendations, as well as the information about the energy assessor. The information updated after renovation should be recorded in the documents over the lifetime of a building. Some aspects of the databases should be accessible to the public to create a user-friendly data-sharing platform for authorities, research entities, homeowners and prospective owners or renters. This can assist them to compare with the assessment from another representative dwelling in the same block and reinforce public awareness of energy efficiency. Recommendations for energy-saving measures significantly influence homeowners’ decisions. Optimised and cost-effective upgradation of the building performance with estimates of energy saving should encourage the homeowners to consider upgradation. Personalised instructions on renovation options to quantify energy savings and related costs can be included in a related energy label certificate such as green building certificate or EPCs.
- (3)
- Provide financial support for building renovationIt is a priority to retrofit the existing building stock for energy saving. However, two major reasons hinder the building-owners from implementing refurbishment: additional costs for energy-saving measures, and a lack of knowledge of the financial benefits after renovation. The refurbishment entails the improvement of building envelope thermal performance as well as the replacement of the old heating systems. Buildings that meet a certain energy level after renovation can be rewarded by subsidies to reduce the perceived risks of investing in energy-efficiency measures.
- (4)
- Develop reward-penalty mechanism for promoting net-zero energy buildingsIt is still a challenge to achieve the target of net-zero energy buildings for all new buildings by the end of 2020 if no financial support is provided. It is therefore necessary to design the reward-penalty mechanism for further promoting net-zero energy buildings. The parameters affecting reward-penalty function should be firstly identified, and different types of reward-penalty function can be further designed and validated. The reward-penalty mechanism can be developed based on annual assessment, monthly assessment or daily assessment. The daily reward-penalty mechanism is supposed to be more effective and efficient to provide incentives for building-owners to actively manage their energy usages.
- (5)
- Encourage the application of smart devices to achieve future smart buildings/citiesThe use of electronic devices and HVAC system contribute significantly to the building energy performance, which is difficult to quantify as the occupants’ behaviors and preference (e.g., internal temperature, hours of operation) are difficult to forecast. The adoption of smart devices can increase energy efficiency and facilitate building energy monitoring, and it is important to ensure the inclusion of these systems in policy development. Indicators like smart readiness indicator can be developed to stimulate investors for technological innovation and promote smart devices in buildings. A great uptake of smart capabilities, such as building automation and control system, smart meters and self-regulation devices will pave the way for future smart buildings and smart cities.
Author Contributions
Funding
Conflicts of Interest
References
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Regulation | Description |
---|---|
EPAct 711,712,754 | Authorises Department of Energy (DOE) to accelerate efforts to develop hybrid electric and advanced diesel vehicles. |
EPAct 751 | Authorises DOE research partnership with Department of Transportation (DOT) and Environment Protection Agency (EPA) to improve railroad efficiency. |
EPAct 753, 758 | Authorises DOE, DOT, and NASA activities to improve the energy efficiency of aircraft. |
EPAct 771, 774 | Authorises activities to fund implementation and enforcement of existing fuel economy standards and updating of testing procedures. |
EPAct 1701-1704 | Authorises load guarantee program for innovative energy technologies including those for transportation energy efficiency. |
EISA 102, 104 | Establishes new average fuel economy standards for automobiles and certain other vehicles and a trading program to allow manufacturers to earn credits when vehicles exceed standards. |
EISA 131, 135 | Authorises DOE research and grant program for electric and hybrid electric vehicles and loan guarantees for the manufacture of advanced vehicle batteries and battery systems. |
Regulation | Description |
---|---|
EPAct 102, 103, 109 | Establishes new energy reduction goals for federal buildings, including authorisation of metering for measurement and verification, and updated building energy performance standards. |
EPAct 121–128 | Authorises new funding for state and local programs including weatherisation assistance, appliance rebates, grants to low income communities, and incentives for states to implement energy-efficient building codes. |
EPAct 135 | Authorises development of energy conservation standards for additional products including, for example, fluorescent lamps, dehumidifiers, battery chargers, illuminated exit signs, vending machines, ceiling fans, and small package commercial air conditioning and heating systems. |
EPAct 912, 913, 921 | Authorises new DOE programs in solid state lighting, building energy performance, and micro-cogeneration technologies. |
EISA 301–316 | Authorises expanded set of standards for home appliances and building equipment including external power supplies, residential boilers, walk-in coolers and freezers, and procedures for expedited rulemakings, updated test procedures and regional approaches. |
EISA 411–413 | Activities for residential buildings including reauthorisation of funding for weatherisation and energy code improvements for manufactured housing. |
EISA 431–441 and 511–548 | Activities for federal and other government buildings including higher energy reduction goals, and authorisation for high-performance ‘‘green’’ federal buildings, new provisions for energy-saving performance contracting, streamlined procurement provisions, and block grants for state and local governments and Native American tribes. |
Regulation | Description |
---|---|
EPAct 106 | Authorises DOE to establish a voluntary program in collaboration with industrial sector companies to make commitments to reduce industrial energy intensity. |
EPAct 922 | Authorises DOE to establish a program to improve the efficiency of high-power density facilities including data centers, server farms, and telecommunications facilities. |
EPAct 1701–1704 | Authorises load guarantee program for innovative energy technologies including those for industrial energy efficiency. |
EISA 451 | Authorises DOE program to expand activities in waste energy recovery, district energy systems, and combined heat and power through funding for research and development, grants to the states, and outreach to decision makers using regional clean energy application centers. |
EISA 452 | Authorises DOE programs to support energy-efficiency improvements in the energy-intensive industries through research, development, demonstration, technology transfer, and grants for innovative technologies. |
EISA 453 | Expands authorities for activities to reduce energy consumption in energy-intensive data centers. |
EISA 1002 | Authorises workforce training programs for ‘‘green jobs’’ including manufacturing of energy efficiency and renewable energy products through research and state programs. |
Regulation | Description |
---|---|
EPA 139 | Authorises a study of energy-efficient electric and natural gas utilities. |
EPA 921, 925, 925 | Authorises DOE programs for distributed energy and electric transmission and distribution through research, development, demonstration, analysis, and technology transfer. |
EPA 1701–1704 | Authorises load guarantee program for innovative energy technologies including those for energy efficiency in electric power. |
EISA 1301–1309 | Authorises programs for “smart grid” technologies, tools, and techniques through research, development, demonstration, technology transfer, cost-shared grants, and interoperability standards to enhance flexibility and functionality of grid operations and enable grid integration of demand response, conservation, energy efficiency, and renewable energy systems. |
National Policy | Description |
---|---|
CERT—Carbon Emissions Reduction Target | Larger energy company supplier targets for energy-efficiency improvements via loft insulation and low energy light bulb distribution. Ended 2012 [35,36]. |
CESP—Community Energy Saving Programme | Energy companies required to target low income households with improved energy-efficiency standards and lower bills. Additional credit for ‘whole house’ and community approaches. Ended in 2012 [35,36]. |
Warm Home Discount | Financial support from electricity and gas suppliers for fuel poor households [37]. |
CRC—Carbon Reduction Commitment | From 2012 large commercial organisations with consumption of more than 6000 MWh of electricity must pay CO2 tax initially set at £12/ton [38]. |
Green Deal | Owner occupiers can borrow against future household energy bills to pay for home energy-efficiency improvements [35,36,37,38,39,40]. |
ECO—Energy Company Obligation | From 2013, CERT and CESP replaced by three schemes. Carbon Emissions Obligation requires major suppliers to target ‘hard to treat’ households. Carbon Saving Community Obligation requires suppliers to support community energy-efficiency schemes such as District Heating. Home Heating Cost Reduction Obligations requires targeting of heat energy-efficiency measures (e.g., boiler replacement) on low income and vulnerable customers [38]. |
FiT—Feed-in-Tariff | This is the renewable electricity generation support scheme for generators with capacity of less than 5 MW. This offers a fixed payment per kWh depending on size and type of technology [41]. |
CfD—Contract for Difference | The renewable obligation (RO) scheme is due to be replaced by CfDs. This offers insurance payments equal to the difference between the average wholesale market price and a fixed strike price in the CfD for eligible large-scale renewable generation [42]. |
RHI—Renewable Heat Incentive | From 2011 Renewable Heat Premium Payments were available to both non-domestic and domestic producers of renewable heat, providing partial support for those who install renewable heating systems. The domestic RHI budget was only £15 m in 2011/12 but the total RHI budget was £251 m in 2013/14 [43,44]. |
The Renewable Obligation scheme | Suppliers meet their obligations by presenting Renewable Obligation Certificates (ROCs) to Ofgem. Where suppliers do not have sufficient ROCs to cover their obligation, a payment is made into the buy-out fund. The extension of the scheme from 2027 to 2037 was declared on 1 April 2010 and is detailed in the National Renewable Energy Action Plan [45]. |
Shares and Targets | |
---|---|
In 1997 | 9% |
Target for 2010 | 29% |
Share in 2012 | 39% |
National targets for renewable electricity | 50% by 2020; 100% by 2050 |
Wind energy | Cumulative installed capacity: 4.7 GW; Target for 2020: 3.9 GW |
Photovoltaic | Cumulative installed capacity: 0.548 GW Target for 2020: 0.006 GW |
Building Energy Efficiency Standard | Key Points | |
---|---|---|
Design standard | Design Standards for Energy Efficiency of Residential Buildings in cold and frigid Zone (1986, 1995, 2010, 2018) | Provide specific requirement on energy saving from the aspects of building envelope, heating ventilation and air conditioning system (HVAC) for residential buildings in the heating area |
Design Standard for Energy Efficiency of Residential Building in Hot Summer and Cold Winter Zone (2001, 2010) | Provide specific requirement on the thermal insulation performance of residential building envelope and energy savings in HVAC system | |
Design Standard for Energy Efficiency of Residential Building in Hot Hummer and Warm Winter Zone (2003, 2012) | Provide specific requirement on the thermal performance of the wall and roof, the shading and heat insulation performance, and energy savings in HVAC system | |
Design Standard for Energy Efficiency of Public Buildings (2005, 2015) | Applicable to all climate zones in China, provide specific requirement on energy-saving measures and requirements for different climate zones from the thermal insulation performance of building envelope and HVAC system | |
Acceptance standard | Acceptance Specification for Construction Quality of Building Energy Conservation Projects (2007, 2014) | Provide specific requirement on related energy conservation projects (wall, curtain wall, door, window, roof, ground heating, ventilation, air conditioning, air conditioning and heating system, cold and heat sources, pipe network distribution and lighting monitoring and control), on-site inspection of building energy conservation project, and quality acceptance for part of the building energy conservation project, etc. |
Commercial Building | Residential Building | |||
---|---|---|---|---|
Public Building (2015) [53] | Cold and Frigid Zone (2018) [54] | Hot Summer and Cold Winter Zone (2010) [55] | Hot Summer and Warm Winter Zone (2012) [56] | |
Building Envelope | √ | √ | √ | √ |
HAVC System | √ | √ | √ | √ |
Hot water and Pump | √ | √ | × | × |
Lighting | √ | √ | × | √ |
Electricity | √ | √ | × | × |
Tradeoffs and Building Performance Calculations | √ | √ | √ | √ |
New Energy | √ | √ | √ | × |
Modelling Methodology | Major Themes | Source |
---|---|---|
Linear programming and dynamic programing | Capacity expansion and energy-economy analysis | WASP model [64], and MARKAL model [65] |
A mixed-integer linear program | Distributed energy resource system | MILP model [66] |
Econometric methods | Annual energy outlook and the role of carbon capture and storage | NEMS model [67] and SGM model [68] |
Partial equilibrium model | Develop the US Climate Action Plan | IDEAS model [69] |
Optimisation | Energy-economy interactions and the options for SO2 control | Meier and Mubayi’s model [70] and Islas and Grande’ s model [71] |
Scenario analysis | Energy policies | Munasinghe and Meier’s model [72] |
Agent-based | Quantitative support for climate policy formulation and evaluation | ENGAGE model [73] |
Country | Energy Regulation Name | Regulation Type | Stringency | Incentives | Energy-Efficiency Measures | |||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Heating and Cooling | Design Guidelines | Construction Details Methodology | Wall and Ceiling Insulation | Air Sealing and Ventilation | Lighting Efficiency | Windows U-Value and SHGC | Other Installations | |||||
Australia | BCA 2010-6 Star NatHERS Rating for Buildings [96] | SC | M | Y | Y | Y | N | Y | Y | N | N | Y |
Brazil | Brazilian Energy Labelling Schemes for Residential Buildings (RTQ-2010) [97] | PU | V | N | N | N | N | N | N | N | N | N |
Canada | National Energy Code of Canada for Buildings 2017 [98] | SC | Mi | Y | Y | Y | Y | Y | Y | Y | Y | Y |
China | National Building Energy Standards [99] | PC | M | Y | Y | Y | Y | Y | Y | Y | Y | Y |
France | RT2012 [100] | CC | M | Y | Y | Y | Y | Y | Y | Y | Y | N |
Germany | EnEV 2014 [101] | PC | M | Y | Y | Y | Y | Y | Y | Y | Y | Y |
Italy | EU Energy Performance of Buildings Directive (EPBD) 2018/844 [102] | PC | M | Y | Y | Y | Y | Y | Y | Y | Y | Y |
India | State/city regulation in few states [103] | PU | Mi | N | Y | Y | N | N | N | N | Y | N |
Japan | Energy Conservation Policy for Housing 2011 [104] | PU | Mi | Y | Y | Y | Y | Y | Y | N | Y | N |
Mexico | 2009 New Mexico Energy Conservation Code [105] | SC | M | Y | Y | N | N | Y | N | Y | Y | N |
New Zealand | New Zealand Building Code (NZBC)-Clause H1 [106] | CC | M | Y | Y | Y | N | Y | N | Y | Y | N |
Russia | Presidental Decree 2012, State Programme on Energy Savings 2010 [107] | PU | M | Y | Y | Y | Y | Y | Y | Y | Y | N |
South Africa | South Africa National Standard SANS 0204: Energy Efficiency in Buildings 2011 [108] | PC | M | Y | Y | Y | Y | Y | Y | Y | Y | Y |
South Korea | Building Design Criteria for Energy Saving (BDCES) 2008 [109] | PU | M | Y | Y | Y | Y | Y | Y | Y | Y | Y |
Spain | Technical Building Code 2007 [110] | PC | M | Y | Y | Y | Y | Y | Y | Y | Y | Y |
UK | Building Code on Conservation of Fuel and Power 2018-Part L [111] | SC | M | Y | Y | Y | Y | Y | Y | Y | Y | Y |
US | 2018 International Residential Code (IRC) [112] | SC | Mi | Y | Y | Y | Y | Y | Y | Y | Y | Y |
Authors | Country/Region | Research Purposes |
---|---|---|
Lan et al. (2020) [120] | Australia | Apply a rigorous spatial econometric analysis model for the first time to evaluate the effectiveness of Australia’s household solar energy FiT policies. |
Buckman et al. (2019) [121] | Australia | Compare the processes and outcomes of all 4 FiT reverse auctions conducted by the Australian Capital Territory Government between 2012 and 2016. |
Schmidt et al. (2013) [122] | Austria | Analyze the effects of two different schemes (i.e., the fixed-price FiT and the premium based FiT) in a policy experiment for Austria. |
Pacudan (2018) [123] | Brunei Darussalam | Assess policy options for the proposed 5-year rooftop solar PV deployment program in Brunei Darussalam targeting around 1000 households per year or installing a total of 50 MWp1(500,010 kWp) capacity in 5 years. |
Moore et al. (2013) [119] | Canada | Use On-site data collection, interviews and financial models to determine the FiT rate required to encourage investment in the generation of electricity from currently unused biomass. |
Zhang et al. (2019) [124] | China | Examine the effectiveness of the current wind FiT policy at a national-level. |
Du et al. (2020) [125] | China | Investigate the effectiveness of regionally differentiated feed-in tariffs (FiT) for the development of renewable energy in China. |
Kitzing (2014) [126] | Denmark | Identifies the risk implications of FiT. |
Grover and Daniels (2017) [127] | England and Wales | Observe which socioeconomic groups are benefitting most and least under the policy. |
Kwon et al. (2020) [128] | South Korea | Examine the effects of policy mix supporting electricity from renewable energy sources (RES-E) in South Korea. |
Javier Ramírez et al. (2017) [129] | European countries | Provide a comparative cost effectiveness assessment using feed-in tariffs (FiT) and net-metering (NM) schemes in some representative EU countries. |
Hitaj and Löschel (2019) [77] | Germany | Estimate the impact of a FiT on wind power investment and emission reductions in Germany from 1996–.2010. |
Winter and Schlesewsky (2019) [130] | Germany | Investigate how the benefits (and burdens) of this subsidisation scheme are distributed by using micro-data from SOEP for private households during the period of 2010–17. |
Caralis et al. (2016) [131] | Greece | Investigate the profitability range of offshore wind energy investments in Greece considering the uncertainties faced. |
Tomar and Tiwari (2017) [132] | India | Discuss the feasibility of grid connected Rooftop/Building integrated photovoltaic (BIPV) system with incorporating feed-in-tariffs/net-metering process along with Tariff of day (ToD) tariff regulation. |
Bakhshi and Sadeh (2018) [133] | Iran | Investigates the viability of Grid-connected photovoltaic (GCPV) technology under a new dynamic FiT strategy. |
Lau et al. (2016) [134] | Malaysian | Analyze the effects of component costs, FiTs and carbon taxes on grid-connected PV systems in residential sector. |
Marques et al. (2019) [135] | Spain | Analyze the impact of feed-in tariffs, feed-in premiums, and capacity payments on electricity generation by source. |
Li et al. (2018) [136] | Taiwan | Illustrate the structure characteristics of the system dynamics (SD) model and offer suggestions to perfect the historical test proposed in the discussed paper. |
Tantisattayakul and Kanchanapiya (2017) [137] | Thailand | Perform a feasibility analysis of grid-connected solar PV rooftops for households under the present feed-in-tariff. |
Castaneda et al. (2020) [138] | United Kingdom | Investigate the long-term effects of cautious feed-in tariff reductions on household’s PV adoption, utilities and solar companies by considering a systems approach. |
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Lu, Y.; Khan, Z.A.; Alvarez-Alvarado, M.S.; Zhang, Y.; Huang, Z.; Imran, M. A Critical Review of Sustainable Energy Policies for the Promotion of Renewable Energy Sources. Sustainability 2020, 12, 5078. https://doi.org/10.3390/su12125078
Lu Y, Khan ZA, Alvarez-Alvarado MS, Zhang Y, Huang Z, Imran M. A Critical Review of Sustainable Energy Policies for the Promotion of Renewable Energy Sources. Sustainability. 2020; 12(12):5078. https://doi.org/10.3390/su12125078
Chicago/Turabian StyleLu, Yuehong, Zafar A. Khan, Manuel S. Alvarez-Alvarado, Yang Zhang, Zhijia Huang, and Muhammad Imran. 2020. "A Critical Review of Sustainable Energy Policies for the Promotion of Renewable Energy Sources" Sustainability 12, no. 12: 5078. https://doi.org/10.3390/su12125078
APA StyleLu, Y., Khan, Z. A., Alvarez-Alvarado, M. S., Zhang, Y., Huang, Z., & Imran, M. (2020). A Critical Review of Sustainable Energy Policies for the Promotion of Renewable Energy Sources. Sustainability, 12(12), 5078. https://doi.org/10.3390/su12125078