Renewable Energy Industrial Policy - Essay Example

Renewable Energy Industrial Policy Your name Course name Instructor’s name Date of submission Definition The ability of country to compete in the world market and its living standards depend on its productivity growth. Its ability to catch up with the more advanced countries largely depends on what it produces and offers to be sold in the trade markets. Economies that are dominated by dynamism in technology are a fast growth. An industrial policy is structured guidelines that aim at improving the infrastructure, adequate allocation of resources between production firms and lay guidelines on the market structure of individual industries. Industrial policy does not only involve the policies that are aimed at protecting individual industries but those that are aimed at preserving and strengthening the basis of the market economy and competition policies. Despite its extensive use, industrial policies continue to be controversial. Some better forbearance of strategies that endeavor only to produce a constructive milieu for industrialization in macroeconomic constancy, public stipulation of education, definite chattels rights, and lawful enforcement of agreements. However, there is extensive opposition to policies premeditated to endorse specific manufacturers. The collapse of industrialization in most emergent nations is one motive why this perspective triumphs. The main rationale is that strategies intended to support particular production industries go against the fundamental canon of the customary economic convention. Intercessions are held to warp market pointers, governments are perceived as incompetent of productively selecting winners and the sheltered infants are believed by no means to develop. Sweden’s renewable energy industrial policy Alliance for Sweden party leaders signed an accord on a lasting, sustainable power and weather/climate policy. The accord is founded on Scientific Council on Climate Issues contribution, the all-party Climate board and the Government’s discourse with communal public and the trade sector on power and climate matters. The recently approved European Union provides a basis for the Swedish policy drafting and implementation (Lars J et al, 2004. The policy creates conditions for lasting regulations foe players in the power market. In addition, it elucidates the Government’s determined targets in the area of climate. Sweden’s energy strategy is built on three pillars which include; ecological sustainability, safety of supply and aggressiveness. The government is on the verge of presenting strategies that would see them out of the dependence on fossil energy. The countries supply security and competitiveness will highly depend on its efficient energy use. This will ensure the country’s research and private enterprise attain a leading role in the transition of universal low carbon market (Gustavsson, L., et al, 1995). The country for aspirations for 2020 is to attain a 50% renewable energy and be able to renew the transport sector energy by 10%. Secondly, Sweden strategizes to scale up its efficiency in the use energy by 20% and reduce the green house gas emissions by 40%.The government proposes to introduce sophisticated economic policy mechanisms which will include levies on higher carbon dioxide emissions and revoked or fewer exemptions. Petroleum levy additional energy levies could be amplified (Meyer,2007). The advanced marketing policy mechanisms will go a long way in the reduction of green house gas effluence by 2 million tones. The country’s long term priorities include the phasing out of the use of fossil energy for heating by 2020. Regional heat up and cogeneration facilitate the utilization of power that would or else be misplaced and as resourceful use as probable of society’s power resources. Further, the country’s energy renewal policy also aims at increasing energy proficiency in the transport organism, breaking the dependence on fossil fuels and reducing the impact on the climate. This will be made possible by the manufacturing of hybrid vehicles, bio fuels, electric cars including other innovations that will depend less on the fossil energy by 2030. The production of energy in Sweden is based on Hydropower and nuclear power. Due to the climatic changes, nuclear energy will still be a necessity but focus will shift to lessen the dependency on nuclear and experience the invention of wind energy and other sources of renewable energy. An efficient source of renewable energy is to be attained by 2050. The country plans to develop a certificate system of renewable electricity production at a target level of 25 TWh by 2020. The implementation will be overseen by the Swedish Energy Agency. 1 Sweden will utilize the prospects under the Promotion of Electricity directive formed from Recyclable Energy Sources and allow other nations to finance renewable electricity production investments. Realistic forms to facilitate such collaboration projects will be swiftly developed. A novel planning wind power structure of 30 TWh is to be realized by 2020 will be instituted in harmony with the Swedish Energy Agency’s schemes disseminated for remarks. 20 TWh of the suggested amount would be on land whereas10 TWh will be offshore. Wind power Authorization procedures are to be simplified through the abolishment of double regulation. The metropolis will be permissible co-determination by necessitate the approval of metropolitan councils for assignments for which certifications are sought under the Environmental (Potocink, 2007). The country will pursue the protection of the large rivers and the other water ways specified by the Swedish law. The circumstances for the improvement of wind farms that are off-shore are to be studied. This will comprise looking at network link regulations, the rival support systems of diverse coastal states and the conditions for shared projects. The country is to look into the increasing the nuclear power capacity which is to involve the construction of new sites on the already existing projects with a limit of ten reactors (Haas, R et al. 2011). New Zealand renewable energy industrial policy 1 2 The energy policy in New Zealand aims at the utilization of the most of its copious power prospective for the advantage of all New Zealanders while maintaining the environmental friendliness. The goals of the strategies are to attain the growth of the economy while ensuring a secure supply of power at competitive price and increased energy exports. This strategy keeps the four main concerns and twelve parts as center of attention projected in the policy. These are anticipated to sustain New Zealand to create the greater use of its power prospective. The areas of focus include the development of resources, securing of reasonably priced energy, efficient use of energy and at the same time maintaining environmental responsibility (Ringel, 2006). To attain this, the strategy aims at the development of petroleum and other fossil energy resources. In addition, the strategy is aimed at reducing green house gas emissions that are a bane to most developed nations. The country is to employ new technologies in the development of new and affordable energy resources. 3 In the development of new renewable resources, government will aim at continuing to improve and implement of policies that will encourage the investment in the renewable energy resources. The focus will be to eliminate the barriers to investment that exist in the area. In Addition, the government aims at encouraging the development of biogas to energy. The government will make deliberate attempts in working with the bio-energy commerce strategy to encourage the development and of viable and tested technologies in the globe (BRANZ, 2004). Thirdly, the strategy aims at investigating ways through which the new applications by the utilization of the geothermal energy. This will entail the improvement in accessing of information. To add to this, the strategy aims at looking into unnecessary impediments to innovativeness that exist (Kerr and Lloyd, 2006). 4 The government aims at attaining a 90% of power production from renewable resources by 2025 while maintaining a security of supply. This is almost being attained as the country’s electricity production is 70% supported by the renewable energy. This is a step ahead as it puts them a notch higher as an environmentally conscientious state. This resource support has the prospective to convey greater capacity of energy and the government desires to increase this amount to 90% of electricity production by 2025. Meeting this goal will take many profits but also harsh challenges which include sustaining a robust nationwide network. Energy security is attained only if there is adequate power or energy resources. This has to be delivered through a healthy system to meet the ever dynamic demands (Barry and Chapman, 2009). The energy systems should have the pliability to handle with the shocks and changes in demand. Every home in the nation should be able to heat and light their houses passably. The government agencies have the authority to monitor issues of housing and energy affordability. New Zealand’s sturdy dedication to liberalized power market has conveyed a fairly high echelon of energy safety and economic affluence for customers (Keenan, 2005). Since the preceding IEA appraisal in 2006, New Zealand has put up on the accomplishment of existing strategy mechanisms and executes far-reaching modifications in the electricity segment and ecological policy. 5 Lastly, the state makes clear guidelines and attempts in supporting the consumers in the transition through the renewable strategies. The state through the strategy provides clear guidelines in the promotion of early adoption of the environmentally sustainable power technologies. So far, the state has already had some initiatives underway. This include: the institution of the EC to advance energy security to a range of 1-in-60 dry annual standard, and electricity competence and maintenance. The country witnessed the 2004 modification to the RMA that ensured greater importance on the rewards of recyclable energy and energy effectiveness (Lloyd, 2007). The 2005 modification to the RMA enhanced the procedures for making decisions on matters of nationwide significance which include energy network. A more robust in the transmission grid was improved through the amendment of the Government Policy Statement to the EC. The energy research road map was implemented and vested with the authority undertaking research to offer technological solutions in sustainable and renewable energy for the future. The modern homes and commercial buildings are built and fitted with energy efficient technologies which include installation of solar water heating and lighting technology (Ministry of Economic Development 2007). 6 In comparison, the two countries have similar renewable energy policies as they borrow from the international guidelines on industrial policy on renewable energy. However, New Zealand implementation policy is better. The New Zealand policy unlike the Swedish policy has the component of preparation of the consumers to meet and embrace the new challenges that will accompany the energy renewable technologies. Both countries have involved the use of ocean waves in the production of hydro electricity. Both counties have employed the efficient use of wind energy which is highly available and effective than the hydro electricity due to the changes in climatic conditions. New Zealand has witnessed more achievements as it depends on the renewable energy by 70%. The countries have also made deliberate attempts in technological innovations as they seek to offer solutions and move away from use of fossil energy in the transport industry. References Ringel, M. (2006). Fostering the use of renewable energies in the European Union: The Race between feed-in tariffs and green certificates. Renewable Energy In press at 1st July 2005 1-17. Keenan, E., (2005). National Gridlock: New Zealanders urgently need new power sources, but everything on offer seems to be a turn-off, Time International, 21 March 2005 New Zealand Energy Strategy to 2050, Towards a sustainable low emissions energy system October 2007 Accessed 8th April 2011. Barry, M & Chapman, R (2009) Distributed small-scale wind in New Zealand: Advantages, barriers and policy support instruments Kerr, A., Lloyd, C.R., (2006). Experimental and simulated performance of commercially available solar and heat-pump water heaters in New Zealand. Paper presented at the Australian and New Zealand Solar Energy Society Annual Conference, Melbourne, Australia. Lloyd, B.,( 2007). The Commons revisited the tragedy continues. Energy Policy 35, 5806–5818 BRANZ, (2004). Building Research Association of New Zealand, Energy Use in NZ Households, Year 8 analysis of the household energy use project (HEEP). Lars J et al (2004) Seeing the wood for the trees: 25 years of renewable energy policy in Sweden. Department of Environmental and Energy Systems Studies, Lund University, Gerdagatan 13, 223 62 Lund, Sweden International Energy Initiative, Inc. Published by Elsevier Inc Gustavsson, L., et al (1995) Reducing CO2 emissions by substituting biomass for fossil fuels. Energy - the International Journal 20, 1097-1113. Meyer, N (2007)Learning from wind energy policy in the EU: lessons from Denmark, Sweden and Spain John Wiley & Sons, Ltd. and ERP Environment. Potocink, J (2007) Renewable Energy Sources and the Realities of Setting an Energy Agenda Science 9 February 2007: Vol. 315 no. 5813 pp. 810-811DOI: 10.1126/science.1139086. Haas, R et al. (2011) Renewable and Sustainable Energy Reviews 1003–1034 Elsevier Ltd. Read More