The government policy structure and promotional measures for renewables plays a vital role in North and South America renewable energy development. The growth of the renewable energy sector in the US has been led by the state level Renewable Portfolio Standard (RPS), combined with other tax incentives and subsidies. The RPS is a regulation that places an obligation on electricity producers to supply specific percentage of electricity from renewable energy sources. Some states in US have also come with feed in tariffs scheme. These support measures have been very successful in promoting the renewable energy industry in the US, making the country stand among the leaders in both solar and wind technologies.
In Canada, the government is using both ecoENERGY and feed in tariffs scheme to develop the renewable energy sector. Canada uses both ecoENERGY and feed in tariffs to promote renewables.
Mexico and Brazil have a capital subsidy and rebate schemes for further development of renewable energy and different states in these countries also offer feed in tariffs. The different policy measures such as renewable energy act and financial subsidies have given a boost to the renewable energy sectors and it is expected that these promotional measures will continue to drive the growth in the industry.
The US Emerges as the Top Producer of Renewable Energy in North and South America
The US is the market leader in renewable energy development in North and South America. The growth of the renewable energy industry in the US has been driven by the Renewable Portfolio Standard (RPS). Although there are no Federal RPS targets, the RPS set by the US state government is providing a big boost to the renewable energy industry in the country. Production Tax Credits (PTCs) are another important policy instrument that has helped in the development of the renewable energy sector in the US. Other incentives, such as business and residential tax credits, loans, grants and accelerated depreciation provisions, have also provided support to developing renewable energy in the country. In addition to these federal policies, different state governments also offer various state level policies and incentives for the promotion of renewable energy.
In the US, a state level RPS combined with other tax incentives and subsidies has increased the production of renewable energy considerably. Some states in the US have passed legislation to introduce feed in tariffs. These measures have been instrumental in promoting renewable energy in the US, which has emerged as one of the largest producers of solar and wind power.
Favorable Policies in the US Will Trigger Investments in the Renewable Energy Industry
The US government has been quite supportive of renewable energy, owing to their need for energy stability and energy independence. As a result, the federal and state governments have provided a supportive regulatory framework and financial backing, facilitating the growth and development of renewable energy.
The US state government has introduced a program called the Renewable Portfolio Standard, as a result of which utilities are supposed to buy a certain portion of their electricity, from renewable sources within the respective states. Related to the RPS program is the Renewable Energy Certificates (RECs) initiative for supporting renewable growth. According to this, utilities can support renewable energy generation and obtain certificates, which can be used to reach the mandate prescribed by the RPS.
The US renewable energy industry has hugely benefited from the recent policies and renewable energy regulations. Some US states plan to exceed the RPS targets to generate 10% of their total electricity from renewable energy by 2012 and 25% by 2025. The enactment of long-term production tax credits (wind) and investment tax credits (solar) drove investments in the US. To reach the specified targets, the US attracted huge investments in 2010. The required policy support came with the passage of the American Recovery and Reinvestment Act (ARRA), which awarded more than $80 billion for renewable energy and energy efficiency projects.
In recent years, the two basic premises of any energy policy were ensuring energy security or energy independence and addressing the global climate change issue by reducing carbon emissions. However, the central driving factor of the energy policy of individual countries or regions varies according to their consumption, demographics, political concerns and the availability of energy resources.
Canada, Energy Policies and Regulatory Instruments Have Promoted Growth of Renewable Energy
Canada is one of the leading renewable power consumers in the world. Renewables (including hydro) are the dominant source of power generation in Canada, accounting for nearly half of the country's power generating capacity. Renewable power generation capacity in the country has increased from 411,781 GW in 2001 to around 499,946 GW by the year 2010. This growth has been a result of government support policies aimed at promoting investments in the renewable energy industry. There are several programs run at federal and provincial level which facilitate the growth of the renewable sector in Canada. These programs are revised from time to time so as to ensure the smooth development of the renewable industry.
In Canada, the Renewable Portfolio Standard and feed in tariffs in the provinces, combined with federal incentives, grants and subsides, have attracted investment in renewable energy. As a result, Canada has significantly increased the production of hydropower, biomass and solid biomass in recent years. In addition to it, ecoENERGY is the umbrella program under which various federal incentives are being provided to promote renewable energy production. This has led to an increase in wind power in Canada at a CAGR of 40.2% during the period 2001-2010.
Strong Policy Framework Significantly Increasing Renewable Energy Industry Investments in Brazil, Argentina and Mexico
Strong policy measures are further boosting the renewable energy investments in Brazil, Argentina and Mexico. Brazil has made huge technological advancements in terms of renewable energy. The country uses feed-in tariffs as the main policy instrument to support renewables. The renewable energy sector in the country is strongly positioned for renewable growth and this growth will drastically increase if the government pursues stronger and more aggressive targets. In addition to this, various support schemes are provided by banks and financial institutions to promote renewable energy programs.
Argentina and Mexico also offers huge potential for the growth of the renewable energy industry. However, the countries still have not enacted any national RPS targets for renewables. The implementation of a national level RPS will lead to a larger scale deployment of renewables in the country.
Report overview
This report presents an in-depth analysis of the renewable energy policies across the major countries in North and South America namely the US, Canada, Mexico, Brazil and Argentina. It details the key policy instruments adopted by the US Federal and State governments that led to huge development in the renewable industry. The report also provides insights to major policy initiatives taken up by the US Administration for the market development of renewable energy sources such as wind, solar, geothermal, biopower and biofuels.
For Canada, in addition to the federal policies, the report details the policies of the provinces that are leading the renewable energy industry in the country. For other major countries, it provides the current and future renewable energy targets and plans along with the present policy framework, giving a fair idea of overall growth potential of their renewable energy industry. The report also provides major technology specific policies and incentives provided in each of these countries.
The report is built using data and information sourced from industry associations, government websites and statutory bodies. The information is also sourced through other secondary research sources such as industry and trade magazines.
Scope
- The report covers policy measures and incentives used by the major countries in North and South America to promote renewable energy.
- The report details promotional measures in different countries both for the overall renewable energy industry and for specific renewable energy technologies namely solar, wind, geothermal, hydro and bioenergy.
- The report also highlights the differences and focus of the renewable energy policy frameworks in different countries in North and South America.
- The report provides a platform for comparison of various renewable energy policies across countries.
The report will enhance your decision making capability in a more rapid and time sensitive manner. It will allow you to:
- Develop business strategies with the help of specific insights about policy decisions being taken on renewable energy by different markets.
- Identify opportunities and challenges in exploiting the renewable energy markets.
- Compare the level of support provided to different renewable energy technologies in different countries.
- Increase future revenue and profitability with the help of insights on the future opportunities and critical success factors in the renewable energy market.
- Be ahead of competition by keeping yourself abreast of all the latest policy changes.
