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Helping Clean Energy Entrepreneurs Turn on the Lights in Poor Countries

A social entrepreneur invests the little working capital she has to bring solar electricity to a community that –like 1.2 billion people worldwide– lacks access to electricity. The community used to use dirty, expensive and choking kerosene for light to cook by and for children to learn by. The entrepreneur knows she can recoup her costs, because people are willing to pay for reliable, high-quality, clean energy – and it will be even less than what they used to pay for kerosene. Sounds like a good news story, right?

Three months later, the government utility extends the electrical grid to this same community, despite official plans showing it would take at least another four years. While this could be good news for the community, one unintended consequence is that this undermines the entrepreneur’s investment, wiping out their working capital, and deterring investors from supporting decentralized clean energy projects in other communities that lack access to electricity.

4 Reasons Renewable Energy Is Ready for the President’s Climate Action Plan

The White House’s climate action plan aims to transform the U.S. electricity system in the coming decades. The President directed the Environmental Protection Agency (EPA) to develop and implement standards to reduce carbon dioxide pollution from power plants, double renewable energy in the United States by 2020, and open public lands to an additional 10 gigawatts of renewable energy development, enough to power more than 6 million homes.

The big question is: Are renewable energy sources up to the task of taking on a significant portion of the country’s electricity? Recent trends and data show that the answer to this question is a definitive “yes.”

Four big signs that renewable energy is ready for the limelight include:

First Take: Looking at President Obama’s Climate Action Plan

Michael Obeiter, a Senior Associate at WRI, also contributed to this post.

With today’s announcement of a national climate action plan, President Obama is pushing forward to tackle the urgent challenge of climate change. This is the most comprehensive climate plan by a U.S. president to date. If fully and swiftly implemented, the Obama Administration can truly reset the climate agenda for this country.

The plan looks to reduce harmful greenhouse gas emissions in a comprehensive way and takes on the question of how to protect the country from the devastating climate-related impacts we are already seeing today. With a clear, national strategy in place – and concrete steps to implement it – the administration can protect people at home and encourage greater ambition internationally.

Importantly, the president is recommitting the United States to meet its target of reducing greenhouse gas emissions by 17 percent below 2005 levels by 2020. WRI’s recent analysis demonstrates that meeting this target is achievable, but requires ambitious action across many sectors of the economy. WRI identifies four areas with the greatest opportunity for emissions reductions – power plants, energy efficiency, hydrofluorocarbons (HFCs), and methane – which are all specifically included in the plan.

The plan is also notable for addressing climate impacts and encouraging increased international engagement. Together, these steps can help the United States reclaim lost ground on climate change. While there are many details to be worked out, this plan is a welcome step to putting the United States on a pathway to a safer future.

Now, let’s look at some of the specific elements in the plan:

4 Lessons in Renewable Energy Planning: The Philippine Experience

Rabayah Akhter, an intern with WRI's Electricity Governance Initiative, also contributed to this post.

When it comes to renewable energy, the Philippines is one of the world’s more ambitious countries. The country set out to triple its share of renewable energy by 2030 based on 2010 levels. The Philippines has one of Asia’s highest electricity rates, in part due to high costs of importing fossil fuels. Enhancing the country’s energy security and keeping power costs down have been the main drivers for setting renewable energy goals.

While the Philippines has demonstrated commitment to renewable energy, the process of achieving its goals has proven to be challenging. The World Wildlife Fund (WWF) in collaboration with WRI released a new report today, Meeting Renewable Energy Targets: Global Lessons From The Road To Implementation. The report documents the challenges and solutions to scaling up renewable energy in the Philippines and six other countries - China, India, Germany, Morocco, South Africa and Spain.

Successes and Delays

The Philippines’ experience--the strides and the delays--exemplifies the importance of good governance, including transparency, accountability, and participation. Without it, policies are unlikely to receive public acceptance or support. While it’s important to choose which policies to initiate in the energy sector, equally as important is fortifying the regulatory and institutional structures that back them.

Getting Every Ton of Emissions Right

An Analysis of Emission Factors for Purchased Electricity in China

This working paper identifies common errors when accounting for greenhouse gas emissions from purchased electricity in China. It provides solutions and recommendations for policy makers and corporate users.

How Civil Society Groups Improved Electricity in Thailand

Worldwide, one out of every five people lacks access to modern electricity. Affordability, quality of service, and social and environmental impacts pose great challenges in providing people with the power they need for lighting, cooking, and other activities. Good governance involving open and inclusive practices is essential to overcoming these pressing obstacles.

This is part three of a four-part blog series, “Improving Electricity Governance,” which explores the key components involved in effective electricity governance. The series draws on the experiences of WRI’s Electricity Governance Initiative, documented in a new report, “Shining a Light on Electricity Governance.” Read more posts in this series.

Until recently, the Electricity Generating Authority of Thailand (EGAT) held a monopoly on Thailand’s power generation and transmission since the 1970s. While EGAT provided a relatively stable supply of electricity to consumers, it was unregulated, leading to inefficiencies in the sector, such as wrongly estimated fuel supply. Consumers experienced high prices, while new power projects moved forward with little public consultation, sparking social conflict and concerns over environmental impacts.

The situation worsened in 2003, when Prime Minister Thaksin Shinawatra set forth a plan to restructure Thailand’s electricity sector and privatize EGAT. Rather than improving Thailand’s electricity sector in the public interest, the plan for privatization was designed to increase capital for powerful stakeholders and upper management employees. It called to maintain EGAT’s unregulated monopoly in order to maximize profits, even at the expense of public needs and environmental vulnerabilities.

Thailand’s electricity sector seemed poised to worsen--until civil society groups stepped in.

More Transparency Needed to End Kyrgyzstan Energy Crisis

Worldwide, one out of every five people lacks access to modern electricity. Affordability, quality of service, and social and environmental impacts pose great challenges in providing people with the power they need for lighting, cooking, and other activities. Good governance involving open and inclusive practices is essential to overcoming these pressing obstacles.

This is part two of a four-part blog series, “Improving Electricity Governance,” which explores the key components involved in effective electricity governance. The series draws on the experiences of WRI’s Electricity Governance Initiative, documented in a new report, “Shining a Light on Electricity Governance.” Read more posts in this series.

Three years after a political uprising overthrew the president of Kyrgyzstan, challenges still exist in the country’s energy sector. Before the revolution, the central Asian country suffered rolling blackouts, poor service, and skyrocketing prices, ultimately leading to nationwide revolts and the ouster of President Kurmanbek Bakiyev. Again this past winter, half of the people in the nation’s capital experienced a major blackout, leaving them without access to electricity during the coldest months of the year. The city still faces 900 outages per week.

High energy demand, outdated transmission equipment, and power theft all put increasing stress on energy supplies, but issues of corruption and basic transparency exacerbate the crisis. Civil society groups are turning their attention to these issues to help improve Kyrgyzstan’s energy situation.

These groups are working with a government initiative to open up the decision-making processes in a sector that has traditionally hidden behind closed doors. Their efforts to increase transparency are essential to creating meaningful reform in the Kyrgyz energy sector.

Bring in Smart Policies, Clear the Air on Clean Energy

This post was co-authored with Jamshyd Godrej, chairman of Godrej & Boyce Mfg. Co. Ltd and a WRI Board Member. It originally appeared in The Economic Times.

Ministers are gathering in New Delhi today to address an urgent challenge: how to unlock the full potential of clean energy to drive economic growth, expand energy access, and protect the climate. The 4th Clean Energy Ministerial — which brings together energy ministers and other delegates from more than 20 leading economies — is a critical opportunity to inject new life into the global clean energy transition.

While we've seen progress on renewable energy, the sector still faces barriers to increase financial support and create strong national policies that will enable it to flourish. First, some good news: The renewable energy market has blossomed in recent years. In just the last decade, global clean energy investment has increased five-fold, from $50 billion a year to more than $250 billion. And more than 100 countries have renewable energy targets in place.

India has set itself on a remarkable journey by ushering in renewable energy growth. The National Action Plan on Climate Change, launched in 2008, aims to have 15 percent of India's electricity consumption from renewable energy by 2020. Currently, the country produces slightly more than 12 percent of its energy from renewables, putting it on track for that goal. India has been using various policy levers to advance renewable energy, including tax and generation-based incentives, capital subsidies, and feed-in tariffs. The Renewable Portfolio Obligations is also providing support for renewable energy developers. Even so, the country is not yet achieving its full potential — which is critical for the 400 million people who lack access to basic electricity.

Civil Society Groups Help Make Electricity Affordable and Sustainable

Worldwide, one out of every five people lacks access to modern electricity. Affordability, quality of service, and social and environmental impacts pose great challenges in providing people with the power they need for lighting, cooking, and other activities. Good governance involving open and inclusive practices is essential to overcoming these pressing obstacles.

This is part one of a four-part blog series, “Improving Electricity Governance,” which explores the key components involved in making electricity decision-making more open, inclusive, and fair. The series draws on the experiences of WRI’s Electricity Governance Initiative, which are documented in a new report, “Shining a Light on Electricity Governance.”

Access to electricity poses major challenges in India. Service varies considerably across the country. In some regions, fewer than 40 percent of people have access to electricity, while half of all rural households lack access to power. These issues will become more challenging as demand for energy is expected to double by 2020. The country will need to figure out how to provide affordable, reliable power in ways that benefit both people and the planet.

But India has a powerful ally in overcoming these electricity challenges: civil society organizations (CSOs).

People’s Monitoring Group on Electricity Regulation Steps In

In the state of Andhra Pradesh, the People’s Monitoring Group on Electricity Regulation (PMGER), a partner with WRI’s Electricity Governance Initiative (EGI), acts as an advocate for affordable, reliable power. The organization is a consortium of NGOs whose constituencies include farmers’ organizations, environmental and development advocacy groups, electricity advocacy groups, workers’ unions, and research organizations. PMGER ensures that Andhra Pradesh’s electricity decisions are fair, effective, and made with citizens’ best interests in mind.

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