K. N. Naik On Cogen India

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India is sure to be a major market for DE in the following years given its large population and the urgent need for investment in the power sector in order to meet growing demand for power. Good progress has been made in renewable energy: India leads the developing world in wind capacity. Policy with a focus on DE, however, has been more limited but major progress has been made in recent years in developing onsite domestic biogas electricity, PV, and industrial biomass cogeneration. Strong policy signals will be required to ensure nascent gas supplies are used optimally in DE applications (Table 2.21).

DE in general

Technical

Any system up to 150 kWe can be connected to the distribution level grid (< 1 kV) and simplified interconnection rules exist. Technical requirements consist mainly in the compliance with short-circuit current/power of the connection installation, maximum and minimum values for frequency and voltage, and maximum time for disconnection from the grid in case of abnormal operation. Utility workers must be able to disconnect the unit using an outside switch for safety reasons. Regional authorities grant licenses for low voltage interconnection as applications are received. Even more simplified rules are being developed to include systems up to 10 kW capacity. Procedures for connecting systems up to 150 kW capacity are much more complicated and require an engineering study of how the DE resource will affect grid operation. Such applications must be approved by the Direccao Geral de Geologia e Energia (DGE), and proposals can only be put forward upon invitation from the DGE

Large-scale cogeneration Domestic cogeneration

Wind

Hydro

DE in general

Large-scale cogeneration

Domestic cogeneration

A European standard for micro-cogeneration is currently being drafted under the auspices of Cenelec technical committee TC8X WG2, and coordinated by the Dutch National Standards Body, NEN. It will be based on the CEN Workshop Agreement CWA 14642

Financial

Many costs incurred by investors in renewable energy investments and a wide array of efficiency measures, including cogeneration, are eligible for up to 50% refund under Portugal's PRIME program." Eligible costs include materials, feasibility studies/research, field trials, land, and transport of materials, among others. Individuals are ineligible for the PRIME program but are eligible for tax breaks for solar and biomass projects Renewables and cogeneration of any scale are eligible for generous feed-in tariffs. Both technologies fall into the "special regime" category of the national electricity system (established under decree-law No. 339-C/2001) Under the scope of the National Plan for Climate Change, the government is considering a new tax regime that may favor DE applications Decree 168/99 of May 1999 guaranteed attractive tariffs for cogeneration investors. Tariff rates were further refined in decrees 30/2000 and 31/2000 for units smaller than or greater than 10 MWe. For units larger than 10 MWe, payment is guaranteed for 120 months, whereas units smaller than 10 MWe are offered a more generous rate: in such cases, the feed-in price is multiplied by a "loss factor" of 1.04 for units between 5 and 10 MWe and 1.02 for units less than 5 MWe. Decree law 525/2001 further improved the situation for cogenerators that annually used more than 50% renewable fuels in a 2001 decree.0 In addition, Decree Law 188/88 states that cogeneration plants receive assistance between 15 and 25% of the capital investment in the form of grant incentives Portugal is bound by the EU cogeneration Directive 2004/8/EC which states that member states are obliged to address key market barriers, such as ensuring grid access for cogeneration. The directive also states that in order for cogeneration to be considered high efficiency, it must provide an energy saving of at least 10% compared to separate production of heat and power. Harmonized efficiency reference values are to be released no later than February 2006. The directive further states that member states must establish guarantee of origin standards no less than 6 months after the harmonized reference values are released EU emissions trading scheme will have an uncertain effect on cogeneration investment Until 2003, micro-cogeneration investors received a public grant for their system corresponding to up to 20% of total purchase and installation. This has now been phased out

TABLE 2.18 (Continued)

Onsite PV

Onsite wind Small hydro

DE in general

Large-scale cogeneration

Current buyback rates for PV in IPP applications are guaranteed for the lifetime of the system ~ 0.30 €/kWh (systems more than 5 kWe) and 0.51 €/kWh (systems less than 5 kWe).b For non-IPP systems (household or businesses) up to 5 kWe, the buyback rate is 0.25 € /kWh. Ministerial resolution no. 63/2003 set a target of 150 MW PV capacity by 2010

Other

Decree-Law DL 68/2002 defined the legal foundation for onsite generation in Portugal and established a definition of "microgeneration" (< 150 kW). Onsite microgenerators are not permitted to export more than 50% of the total power their system generates in a year. The law also defines the tariff regime for microgeneration. Different premiums are paid depending on technology and they are reviewed on an annual basisd

As a whole, European policy calls for 12% of energy and 21% of electricity supply from renewables by 2010 including 1,000,000 PV systems, 10,000 MW wind, and 10,000 MW biomasse

Decree law 313/2002 states that cogeneration investors must be guaranteed fair access to the grid and that they need not shoulder any grid upgrades. EU has a goal to double cogeneration use by 2010f a http://www.prime.min-economia.pt/

http://www.oja-services.nl/iea-pvps/countries/portugal/index.htm c http://www.lexportugal.com/LexPortugal/ d Personal communication with Joao Montez, April 2005.

e Directive 2001/77/EC of the European Parliament and of the Council of 27 September 2001 on the promotion of electricity produced from renewable energy sources in the internal electricity market. Energy for the Future: Renewable Sources of Energy White Paper for a Community Strategy and Action Plan COM(97)599 final (26/11/1997).

f A community strategy to promote combined heat and power (CHP) and to dismantle barriers to its development. European Commission Communiqué COM (97) 514 final.

TABLE 2.19 British Distributed Generation Policy by Technology and Type

DE in general

Large-scale cogeneration Small-scale

Domestic cogeneration

Technical

Only licensed electricity suppliers can register metering systems for microgeneration The requirements for developers looking to connect small scale embedded generation (SSEG) rated at up to and including 16 A per phase are defined in Engineering Recommendation G83/1.a The Distributed Generation Coordinating Group is charged with studying and making recommendations to overcome technical barriers to micropower

Amendment P81 of the electricity trading rules allows small generators (16 A per phase on the low voltage 230 V single phase or multiphase 400 V supply) to use existing meters rather than having to use otherwise mandated half hour interval meters A European standard for micro-cogeneration is currently being drafted under the auspices of Cenelec technical committee TC8X WG2, and coordinated by the Dutch National Standards Body, NEN. It will be based on the CEN Workshop Agreement CWA 14642. The UK has also developed changes in legislation, and published Engineering Recommendations in this areab Grid interconnection of PV systems rated above 5 kW is governed by G.59/1 last amended in 1995

TABLE 2.19 (Continued)

Wind Hydro

Financial

DE in general The climate change levy is a tax on energy introduced in 2001. All businesses have to pay

0.0043 GBP/kWh unless their supply comes from certified renewables or certified cogeneration facilities There are grant programs for renewable electricity0 Large-scale cogeneration EU emissions trading scheme will have an uncertain effect on cogeneration investment.

Cogeneration schemes that have been certified as "good quality" (see below) are exempt from the climate change levy, basically a carbon tax Domestic cogeneration In the 2005 budget, sales tax on domestic cogeneration units was reduced from 17.5 to

5%, in other words, it will get the same favorable tax treatment as other renewable technologies

Exempt from climate change levy. Each megawatt-hour generated via renewable energy also creates a tradable "renewable obligation credit" which can be sold on the market to generators who have not reached their legal obligation to generate 10% of their output from renewable. VAT on PV installations systems has been set at the reduced rate of 5% since April 2000 Exempt from climate change levy. Each megawatt-hour generated via renewable energy also creates a tradable "renewable obligation credit" which can be sold on the market to generators who have not reached their legal obligation to generate 10% of their output from renewable Exempt from climate change levy. Each megawatt-hour generated via renewable energy also creates a tradable "renewable obligation credit" which can be sold on the market to generators who have not reached their legal obligation to generate 10% of their output from renewable

Other

Utilities Act 2000 gives DE investors the right to participate in the market using cogeneration and/or renewable energy, including private wire networks. Energy Service Companies (ESCOs) are authorized to generate, distribute, and supply electricity under The Electricity (Class Exemptions from the Requirement for a License)

Order 2001.e As a whole, European policy calls for 12% of energy and 21% of electricity supply from renewables by 2010 including 1,000,000 PV systems, 10,000 MW wind, and 10,000 MW biomassf

Large-scale cogeneration The UK is bound by the EU cogeneration Directive 2004/8/EC which states that member states are obliged to address key market barriers such as ensuring grid access for cogeneration. The directive also states that in order for cogeneration to be considered high efficiency, it must provide an energy saving of at least 10% compared to separate production of heat and power. Harmonized efficiency reference values are to be released no later than February 2006. The directive further states that member states must establish guarantee of origin standards no less than 6 months after the harmonized reference values are released. Nevertheless, the UK's own model for defining cogeneration deserves mention. The UK has established a cogeneration Quality Assurance scheme;® a voluntary methodology for determining which arrangements or projects can be defined as cogeneration and which are therefore eligible for cogeneration incentives and financial support. The scheme assesses cogeneration projects using two thresholds. The power efficiency threshold states that when a project's power efficiency is greater than 20%, then all fuel used in the project is "good quality." The second threshold, the quality index threshold, considers both power and heat efficiency which encourages good environmental practice. Though complex, the cogeneration QA scheme is robust in its consideration of technologies and fuels. The UK government has a target to obtain 10 GWe of its power by cogeneration by 2010. Currently, cogeneration developers are under obligation to obtain 10% of power from renewables under the renewable obligation standards, as are any generators. This requirement is currently under review and the affect of the renewable obligation on cogeneration may soon change The EU has a goal to double cogeneration use by 2010'

Onsite PV

Onsite wind

Small hydro

DE in general

TABLE 2.19 (Continued)

Energy Efficiency Action Plan, Renewables Obligations extended from 2010/11 to

2015/16, Renewable Obligation certificates introduced' The UK has launched a micropower consultation to get public and stakeholder input into strategies for increasing the use of micropower in the country

Domestic cogeneration

Wind

Hydro a Technical Guide to the Connection of Generation to the Distribution Network. Distributed Generation Co-ordinating Group Technical Steering Group. February 2004.

Micro-cogeneration needs specific treatment in the European Directive on Cogeneration, Cogen Europe. c WADE Survey of Decentralized Energy 2005, p. 26. d http://www.micropower.co.uk/content1.cfMpageid = 142 e www.woking.gov.uk/council/planning/publications/climateneutral2/energy.pdf Directive 2001/77/EC of the European Parliament and of the Council of 27 September 2001 on the promotion of electricity produced from renewable energy sources in the internal electricity market. Energy for the Future: Renewable Sources of Energy White Paper for a Community Strategy and Action Plan COM(97)599 final (26/11/1997). s http://www.cogenerationqa.com

UK White paper Our energy future—creating a low carbon economy. 1 A community strategy to promote combined heat and power (CHP) and to dismantle barriers to its development. European Commission Communique COM (97) 514 final.

' Renewables 2004. International Conference for Renewable Energies, 1-4 June 2004, Bonn. Conference Report: Outcomes and Documentation—Political Declaration/International Action Programme/Policy Recommendations for Renewable Energies.

TABLE 2.20 Chinese Distributed Generation Policy by Technology and Type

Technical

DE in general

Large-scale cogeneration

Domestic cogeneration

Wind

Hydro

Financial

DE in general The Chinese Renewable Energy Law sets a feed-in tariff from registered renewable energy producers. The price is to be established and periodically adjusted by the National Development and Reform Commission. The law also established a national fund to promote renewable energy projects, and created favorable lending and tax schemes for renewable energy projects. Further policies are expected, including further tax breaks and incentives The Chinese Municipal Development and Reform Commission has increased the price of power at peak periods in an effort to reduce transmission congestion and encourage conservation though it is unclear which customers will be effected.®* Such an action could potentially drive DE investment A separate local law, the Regenerating Power Law, introduced in the Northwest autonomous regions of Xinjiang and Inner Mongolia is also designed to promote renewable energyb

Large-scale cogeneration Throughout the 1990s, the government provides capital grants and tax benefits for cogeneration but the program has since been withdrawn"

TABLE 2.20 (Continued)

Domestic cogeneration Onsite PV Onsite wind Small hydro

DE in general

Large-scale cogeneration

Domestic cogeneration

Wind

Hydro

Wind projects currently receive a 50% in sales tax as well as corporate and income tax

Other

According to the recent Renewable Energy Law, the Chinese National Development and Reform Commission must publish renewable energy target by January 2006. The draft Energy development plan contains various targets for renewable energy including a 12.5% target for total electric power capacity by 2020 (about 125 GW out of 1000 GW)C

China has used feed-in tariffs and renewable portfolio standards.d The Chinese Renewable Energy Law was launched in March 2005 and is due to take effect on January 1, 2006. It aims to ensure 10% of energy to come from renewables by 2010." This builds on the goal to have 5% of annual new generation being added to the system by 2010.e Specific guideline targets will be set by the National Development and Reform Commission and provincial planning agencies will then develop the specific strategies for each jurisdiction. The law sets penalties for jurisdictions that do not comply. Incentives for DE so far have tended to be financial and have not sufficiently focused on grid access issues China committed at Bonn in 2004 to introduce a National Renewable Law (which has been done) and also to formulate a National Renewable Energy Development Strategy, which is in the process of doingf 1998 "Energy Conservation Law of PRC" promotes energy conservation including cogeneration.b In 2000, the government released the "Principle on Developing cogeneration" document which emphasized that plants should be sized according to heat load rather than electrical capacity, recommended guidelines for project approval and established targets for efficiency in heat/power ratios." In 2002 Policy paper number 1268 again emphasized the benefits of cogeneration but included small-scale cogeneration for the first time In June 2002, the National People's Congress approved the Cleaner Production

Promotion Law. Coming into effect on January 1, 2003 the law is expected to be a driver for cogeneration in industrial applications The latest 5-year plan aims to develop local cogeneration capacity in order to meet targets of 40% of heat supplied by cogeneration systems by 2010 and to install an additional 40 GWe of cogeneration plants by the same year

20 GW of wind by 2020

a WADE Market Analysis China 2005.

b ChinElec China Power Monitor, Issue 02, 26th April 2005 Week 2002, NewsBase, UK. c Renewables 2005. Global Status Report, World Watch Institute. d http://www.renewables2004.de/pdf/policy_recommendations_final.pdf e Eric Martinot 2002.

f Renewables 2004. International Conference for Renewable Energies, 1-4 June 2004, Bonn. Conference Report: Outcomes and Documentation—Political Declaration/International Action Programme/Policy Recommendations for Renewable Energies.

Technical

DE in general Grid interconnection of onsite power is "facilitated" in section 30 of the 2003 Electricity

The onsite power section of the law was meant to help secure reliable, quality and cost effective power, and create employment opportunities. The act provided also aimed to guarantee access to the grid for onsite generators"

Large-scale cogeneration

Domestic cogeneration PV

Wind

Hydro

Financial

DE in general The Regulatory Commission oversees commercial arrangements between onsite generators and grid operators and determines tariffs for onsite plants. "captive power plants" are guaranteed access to the grid under Indian legislation (section 30) Energy Conservation Act states that energy intensive industries must undergo compulsory Periodic energy audits" According to the Electricity Act 2003, each State Electricity Regulatory Commission must set a target for a percentage of power to be purchased from nonconventional sources by each distribution company. The percentage must increase progressively as prescribed by State Electricity Regulatory Commissions. A competitive bidding process is to be employed. Differential tariffs may also be set to encourage investment in nonconventional energy (renewables and cogeneration) India has a target that 10% of new electric capacity added between 2003 and 2012 be renewable

Large-scale cogeneration New rules introduced in Maharashtra state in 2002 have created incentive for cogeneration plant investors using biomass fuel, to upgrade and improve the efficiency of their cogeneration plants. The key change is the introduction of attractive buyback rates for any surplus electricity produced by the mill. The feed-in tariff for all biomass-based cogeneration is Rs. 3.05/kWh for the first year of operation of the cogeneration project and it will rise at the rate of 2% per annum on compounded basis. The tariff should provide a stable investment climate until at least March 2007 where it will be reviewed. The Order also clearly defines what fuels and technologies qualify, and lays down clear expectations as to cost sharing of T&D infrastructure and clarifies contractual obligations in terms of power supply, power quality, and payments0 Similar laws have also been adopted in Andhra Pradesh and Madhya Pradeshb The Indian government provides low interest (4%) loans to sugar industry players to develop cogeneration facilities'1

Domestic cogeneration

Onsite PV

Onsite wind Favorable investment tax credits have proven successful in encouraging a vibrant wind industry6

Small hydro

Other

DE in general Electricity Act of 2003 includes favorable provisions for DEf and guarantees access to all generators regardless of size.® The Act has moved India toward an electricity market with separate generation, transmission and distribution of power, with increasing potential for competition. A milestone in this progress is the introduction of the "Availability Based Tariff," which is an intermediate step in the effort to develop a true spot market for electricity. An ABT has been introduced at all five electrical regions of the country at the interstate level Section 30 of the 2003 Electricity Act is designed to facilitate onsite generation. The Bill Section 38, 2(d) of the 2003 Electricity Act makes it obligatory to provide "nondiscriminatory open access." There is a similar obligation on the State Transmission Utility, Section 39-2(d) to provide nondiscriminatory open access®

TABLE 2.21 (Continued)

India's 5-year plan contains proposals for 10,000 MWe of new renewables by 2012.f The government goal has also stated that renewables should account 10% new generation being added to the system by 2012.e A percentage of power to be generated from DE in each distribution license area must be declared by the State Commission in accordance with section 86 (1) (e) of Electricity Act 2003s The National Electricity Policy requires large generation utilities to set aside a small percentage of revenue to be used for research and development related to modernization of the power sector. Whether these funds would be earmarked for DE or more centralized technology remains to be seen"

Large-scale cogeneration Domestic cogeneration PV

Wind Wind power producers may transfer the electricity generated over the transmission system to use in their own facilities or to a third party for sale6

Hydro a Resolution No. 23/40/2004-R&R (Vol. II) http://powermin.nic.in/indian_electricity_scenario/national_electricity_po-licy.htm b Renewables 2005. Global Status Report, Wordwatch Insitute, p. 25.

c The Maharashtra Electricity Regulatory Commission 2001. Order for Non-Fossil Fuel based Co-generation Projects 2002. http://www.mercindia.com/pdf/16082002.zip

Balrampur Chini Mills Limited, Sugar Scenarios 2005. www.chini.com/bcml.ppt e Grid-Based Renewable Energy in Developing Countries: Policies, Strategies, and Lessons from the GEF World Renewable Energy Policy And Strategy Forum June 13-15, 2002, Berlin, Germany Eric Martinot Global Environment Facility, Washington, DC.

f WADE World Survey for Decentralized Energy 2005, p. 19.

g Electricity Act 2003 http://powermin.nic.in/acts_notification/pdf/The%20Electricity%20Act_2003.pdf h Distributed Generation—A Strategy for Optimal Future Power Generation in India. Ajit Kapadia and K.N. Naik Centre for Fuel Studies and Research, Pune India.

TABLE 2.22 Japanese Distributed Generation Policy by Technology and Type

Technical

DE in general Technical guidelines for grid-interconnection of small DE applications have been established"

Large-scale cogeneration

Domestic cogeneration

Wind

Hydro

Financial

DE in general Japan has been traditionally used a different approach to renewable energy and energy efficiency policy tying more closely energy use to economic production Purchasers of cogeneration and renewable energy equipment are eligible for low interest loans and are eligible for: either a deduction from its corporate or income tax equal to 7% of all costs, up to 20% of corporate or income tax to be paid in the same period—or a 30% depreciation rate equal to the cost in addition to normal depreciation The "Project for Promoting the Local Introduction of New Energy" provides subsidies to local governments who invest in the whole range of DE projects, including renewables, fuel cells, and gas-fired CHP.C The "Project for Supporting New Energy Operators" aims to support entrepreneurs who become involved in DE. Upstart firms are eligible for guaranteed debt or subsidization. Up to a third of installation costs for projects is subsidized and 90% of the debts are guaranteed0

TABLE 2.22 (Continued)

Large-scale cogeneration Domestic cogeneration

Onsite PV The 1992 net-metering policy required utilities to purchase excess power from PV systems at the retail rate the same year ambitious targets for PV were set. In 1994, the "70,000 Roofs" program was launched. Incentives included low interest loans, a comprehensive education and outreach program, and declining rebates for interconnected residential systems. Rebates were initially 50% of the installed cost for end users but declined annually and were phased out completely in 2002. In 1997 the program was altered to also extend rebates to landlords and housing developers. The government promoted PV with print and television advertising campaigns. By the end of the program in 2002, it had exceeded its goals.c The feed-in tariff originally introduced in 1997 is still in existence but has been reduced to 45,000 JPY/kW in 2004 from 90,000 JPY/kW in 2003

Onsite wind Small hydro

Other

DE in general Japan's Law Concerning the Rational Use of Energy (Amended in 1993) states (Chapter 2,

Article 4) that large energy users consuming more than 3000 kl crude oil equivalents per year or more than 12 million kWh electricity per year, are deemed "energy manager designated factories." The ministry has the power to designate certain industries as triggers to be examined closely for their performance in the above criteria (Article 6). Examples of industries that have been designated include pulp and paper, automotive factories, etc. Each designated factory must appoint an energy manager trained in energy conservation and the manager is responsible for optimizing the factory performance according to seven criteria The manager must consider seven efficiency factors in the operation of designated plants

1. Rationalization of fuel combustion

2. Rationalization of heating, cooling, and heat transfer

3. Prevention of heat loss by radiation, conduction, etc.

4. Recovery of waste heat

5. Rationalization of heat conversion into power, etc.

6. Prevention of electricity loss by resistance, etc.

7. Rationalization of conversion of electricity into power, heat, etc.

The owners of designated factories are legally bound to comply with any recommendations the energy specialists may make. If it is deemed that the designated factories have not met their obligations under the law the ministry may intervene. Japan's 2003 "Energy Master plan" sees DE and centralized generation technologies coexisting in the future." It described the importance of investing in DE fuel cells, cogeneration, PV, wind, biomass, and waste 2200 MWe of fuel cells target by 2010" 4170 MWe waste by 2010" 330 MWe biomass by 2010"

The government has also funded an agency to research new energy technologies, Japan Committed in Bonn to introducing a Renewable Portfolio Standard Law.d The current target is that 1.35% of total electricity should be from renewables by 2010 (not including geothermal or large hydro)6 The "Law on Promotion of Green Purchasing" was passed in 2001 which requires Large-scale cogeneration Target of 10 GWe of reciprocating engine cogeneration by 2010"

Domestic cogeneration

PV 4820 MWe PV by 2010"

Wind

Hydro

" Shinichi Nakane, Japan Cogeneration Center.

b Energy Policy Instruments—Description of Selected Countries Trine Pipi Krœmer and Morten Grauballe, AKF Forlaget http://www.akf.dk/eng/udland8.htm c IEA PVPS Annual report 2004.

d Renewables 2004. International Conference for Renewable Energies, 1-4 June 2004, Bonn. Conference Report: Outcomes and Documentation—Political Declaration/International Action Programme/Policy Recommendations for Renewable Energies.

e Renewables 2005. Global Status Report, Worldwatch Institute, p. 25.

DE in general Large-scale cogeneration Domestic cogeneration PV

Wind Hydro

DE in general

Large-scale cogeneration

Domestic cogeneration Onsite PV

Onsite wind

Small hydro

DE in general

Large-scale cogeneration Domestic cogeneration PV

Wind Hydro

Technical

No specific standards or technical regulations available for grid-interconnection of small onsite systems but KEMCO among others are currently working on this

Financial

Companies that employ renewable energy technologies, processes, and equipment are eligible for government backed low-interest loans as well as a 10% investment tax credit if the project is a research and development project. Also there are plans to strengthen mandatory feed-in tariff for renewable electricity®* to include biomass. A favorable loan program is in place including a 10-year payback at 3.5% with up to a 5-year grace period

The Integrated Energy Policy requires energy audits to be undertaken on all major energy users and then provides third party loans to ESCOs to cover 50% of project finance to implement efficiency upgrades including cogeneration.0 Plans are being considered to introduce a feed-in tarifffor IGCC, but it is unclear if heat recovery will be a requisite for eligible schemes

Up to a 70% grant for the capital/installation costs of PV is in place.b 746.4 won/kWh feed-in tariff

Plans are being discussed which would provide up to a 25% grant for the capital cost of wind." 107.66 won/kWh feed-in tariff

Plans for a program similar to the PV installation grant program are being developed. 73.69 won/kWh feed-in tariff

Other

The national utility KEPCO divided up its vertically integrated systems into T&D and generation in 2001." The 1987 Promotion Act for New and Renewable Energy Development established the legal foundation for R&D into DE. The Act was amended in 1997 to try to promote wider use and dissemination. In 2002, the Act was further amended this time introducing a public obligation and certification scheme. In 2003, the 10-year "National Basic Plan for New and Renewable Energy Technology" was adopted calling for a 3% of all electricity from renewables by 2006 and 5% by 2011.b All new public buildings must allocate at least 5% of their construction cost to new and renewable energy. There is a large-scale T&D program in place with 9.1 trillion won budgeted between now and 2011

Korea has introduced a new R&D program in 2002 called "Solar Land 2010 Program" also there is a government goal of establishing 30,000 3 kW residential systems 40,000 10 kW systems for public buildings, and 30,000 20 kW systems for commercial buildings

" http://www.oja-services.nl/iea-pvps/countries/korea/index.htm Electricity Industry Policy Research Group Korea Electrotechnology Research Institute, Sung-chul Yang presentation, January 2005.

c IEA policies and measures database: http://www.iea.org/textbase/pamsdb/search.aspx?mode = re

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Renewable energy is energy that is generated from sunlight, rain, tides, geothermal heat and wind. These sources are naturally and constantly replenished, which is why they are deemed as renewable.

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