Chapter 2. Current Status of Energy in Cameroon
2.4 Legal and Institutional Structure for RE
2.4.2 Case Studies of Key Developed Countries and LDCs
2.4.1.2.2 Law on the Organization of the Ministry of Water Resources and Energy No. 2012/501
As there are no separate regulations on RE, it follows that there are no separate regulations on institutions responsible for the promotion, development, and extension of RE. Cameroon has introduced the RE and energy administration department responsible in the MINEE under article 7 of the Law on the Organization of the Ministry of Water Resources and Energy No.2012/501. Article 64 defines the responsibilities and authorities of this department. These include the proposal, construction, and execution of strategies and policies related to RE and energy administration; research and studies on RE sources; application and substitution of technologies in the RE sector; energy conservation; and the development of alternative energy. Sub-level organizations include the national energy information system department, RE department, and the energy administration department. The RE department handles the development and promotion of RE, and is therefore responsible for the research and management of applicable resources, technology transfers and application studies, pilot project development, drafting, status monitoring, and supplying the best technologies for utilizing RE resources. This department comprises the research standardization office and the RE development office. Article 85 defines the tasks and authorities of the regional energy administration offices, which are mandated to manage, execute, oversee, and promote RE, and issue regional datasets for energy administration.
Korea Energy Economics Institute (KEEI)
KEEI, a government-sponsored research agency, collects, researches, and studies key trends and information on domestic and foreign energy and resources and makes these available. In this way, it contributes to policy formation for energy and resources and contributes to the improvement of the national economy. It was initially set up as the Korea Institute of Energy and Resources, engaging both in policy and technology studies in the energy sector. However, with the increase in policy-related demand from the government such as policy formulation, support, and analysis, and the forecasting of policy effects, the policy research function was divided and strengthened by the establishment of KEEI. It was initially set up as a research institute subordinate to the Ministry of Energy and Resources (now, reorganized and renamed to the Ministry of Trade, Industry and Energy, MOTIE). However, to ensure the independence of its research, it was reorganized as a research institute subordinate to the Office for Government Policy Coordination of the Prime Minister’s Office.
KEEI provides national statistics for the energy sector, and plays a key role in formulating the National Energy Basic Plan, the Basic Plan for New and Renewable Energy, and the Basic Plan for Power Supply, and their subordinate plans, in this way, contributing to the formation of the energy policies of Korea. In addition to the Basic Plan for New and Renewable Energy, KEEI engages in formulating the Regional Energy Plan in Korea, as well as in research for formulating the Renewable Energy Master Plans of Developing Nations, and other studies related to the government’s plan to deploy RE technologies at national and regional levels. Furthermore, it engages in policy and academic research for improving RE policies and market expansion, such as analyzing the market resource potential for RE, methods for improving the social acceptance of RE, and methods for improving the RPS framework.
Korea Institute of Energy Research (KIER)
KIER is subordinate to MSIP and was created under the Act on the Establishment, Operation and Fostering of Government-Funded Science and Technology Research Institutes, and others. The purpose is to provide for research and development in the energy sector and to disseminate the research results in order to create new growth engines and promote economic growth. KIER also used to be subordinate to the Ministry of Energy and Resources and specializes in technological research in the energy sector, like KEEI that specializes in policy research in the energy sector.
The research areas include all energy-related fields, such as energy efficiency, RE, climate change, and energy materials and processes. The RE section handles researching solar PV, solar thermal, fuel cells,
Korea Energy Agency (KEA) – Korea New & Renewable Energy Center (KNREC)
KEA, subordinate to MOTIE, engages in affordable energy utilization projects, reducing GHG emissions, and contributing to the sustainable development of the economy. In the beginning, tasks related to energy conservation and efficiency improvements were the main duties of this agency.
However, the Act on the Promotion of the Development, Use and Diffusion of New and Renewable Energy supports the establishment of KNREC, which now oversees the execution of polices related RE.
The key tasks of KNREC include (1) promoting new and renewable energy through financial support, statistics, and technology standardization and certification, (2) supplying of new and renewable energy through housing support, housing and building support, and solar panel rentals, and (3) renewable portfolio standards (RPS).
Korea Institute of Energy Technology Evaluation and Planning (KETEP)
KETEP is subordinate to MOTIE and was set up to create the foundations for innovations in energy technology development and energy technology, thereby contributing to the achievement of a stable, efficient, and environmentally friendly national energy supply structure. Tasks relating to RE are managed by the New & Renewable Energy Division under the Office of Energy Technology Development.The key tasks of KETEP include (1) the planning, evaluation, and management of energy-technology development projects, (2) management and operations of energy research and development funding, (3) supporting the development of expert human resources in the energy technology sector, (4) international cooperation and international joint research and development in the energy technology sector, and (5) green certification in energy technology. Whereas KIER is a research agency focusing on energy technology, KETEP issues research work orders, supports research on energy technologies, and evaluates the performance of research institutes as part of project management activities.
2.4.2.1.2 Regulatory Structure Relating to RE
Framework Act on Low Carbon and Green Growth
The Framework Act on Low Carbon and Green Growth (hereafter the Framework Act) provides the basis for low-carbon green growth. The purpose of this act is to facilitate the harmonious growth of the economy and the environment, utilize green technology and industry as new engines for economic growth and development, enable a high quality of life by achieving the vision of the low-carbon society, and attain the status of a mature, advanced, first-class nation that contributes its dues to the global
community.
This act proposes, among others, increased development, production, utilization, and distribution of new and renewable energy as a main principle of energy policies, as well as the diversification of energy supply sources. This act mandates formulating the Basic Plan for Energy, planning 20 years ahead, which is compiled and executed every 5 years, and is directed to include plans for environmentally friendly energy supply and utilization, as well as the RE deployment targets by phase.
ENERGY ACT
The Energy Act of Korea provides the basic regulatory foundation to achieve a stable, efficient, and environmentally friendly energy supply structure. This is achieved by constructing and executing relevant energy policies and energy-related plans, thereby contributing to the sustainable development of the economy and the welfare of citizens. This act was originally set up as the basic law on energy but the status of the act changed when the Framework Act was enacted.
Following the Framework Act, the Energy Act has mandated the establishment of regional energy plans for the effective achievement of the Basic Plan on Energy. These plans include strategies on energy use that are environmentally friendly such as RE. The Energy Act also mandates the government set up five-year energy technology development plans to expedite the development and distribution of energy- related technology, as well as annual action plans. These plans include technology development related to environmentally friendly energies such as RE. The Energy Act lists designated institutions that should engage in energy technology development, with KETEP being set up to provide effective support for planning, evaluating, and managing projects related to energy technology.
Act on the Promotion of the Development, Use and Diffusion of New and Renewable Energy
Korea prepared a separate legal foundation that solely devoted to promotion of RE by enacting so called the Act on the Promotion of the Development, Use and Diffusion of New and Renewable Energy (hereafter the RE Act). The act provides definition and scope of RE, which are legally eligible for various government supports. Like the Basic Plan on Energy, mandated by the Framework Act, the RE Act mandates the formulation of basic plans every five years for research and development of new and renewable energy, as well as their use and deployment, and the setting of annual action plans to achieve the goals.
The RE Act includes various articles covering policy measures, such as the mandatory RE
from suppliers with a certain prescribed level of generation capacity (500 MW). This mandatory supply is set to increase to 10% in phases by 2024. The mandatory RE utilization program mandates the central government, local governments, and public institutions to utilize RE at a certain portion of their expected energy use in their building.
Moreover, the RE Act includes contents on R&D, commercialization and diffusion of technology, and fostering professional personnel. For professional and efficient utilization and deployment of RE sources, this RE Act also provides legal foundation for creation of the KNREC and mandates it to support various RE projects by providing relevant statistics and information, technical expertise and various financial support programs.
2.4.2.2 United States
2.4.2.2.1 Organizations Related to RE
Department of Energy (DOE)
The United States regards energy self-sufficiency and GHG reduction as important policy goals, and the DOE, a department of the US Federal Government, oversees such energy-related matters. Under the Minister of Energy and Sciences, the Office of Energy Efficiency and Renewable Energy oversees the RE sector, with its three key tasks being power generation through RE, energy-efficient homes, buildings, and factories, and sustainable transport. The renewable energy department is divided into geothermal, solar, wind, and hydro, with the department responsible for sustainable transport overseeing bioenergy, hydrogen, and fuel cells. The department responsible for strategic programs oversees policy-setting, including program evaluation, analysis of policies, and technology-market transfers.
Energy Information Administration (EIA)
The US Energy Information Administration (EIA) collects, analyzes, and disseminates independent and impartial information to promote sound policy-making, efficient markets, public understanding of energy, and interaction between the economy and the environment. EIA functions with a pre-set budget from the US Congress, as well as operating capital, and is governed by the US Senate Committee on Energy and Natural Resources.
The EIA provides data, analysis, and forecasts on the consumption and efficiency of oil, natural gas, power, coal, nuclear, with RE being the main power source on which data are provided. This body also produces analyses and forecasts data related to markets and finance.
National Renewable Energy Laboratory (NREL)
NREL was set up to develop science and engineering related to clean energy, energy efficiency technologies, and empirical data, and to provide knowledge and innovation to set up energy systems of all sizes. It is the only federal laboratory founded for the research, development, commercialization, and distribution of RE and energy efficiency technologies, and it functions with a budget from the DOE after approval from the US Senate.
NREL focuses its research on the four areas of sustainable transportation, energy productivity, RE power, and system integration. Studies in the field of sustainable transport include hydrogen and biofuels, and those on RE power include solar, wind, hydro, and geothermal energy. It retains partnership with private industries, federal organizations, federal and regional governments, and international organizations.
National Energy Technology Laboratory (NETL)
NETL is a research institute under the umbrella of the DOE and was set up to support the DOE mission of increasing the energy security of the United States. It conducts a wide spectrum of research on energy and the environment, and retains expertise on fossil fuel technologies, such as coal, natural gas, and oil. The Office of Energy Project Management under NETL undertakes projects from the Office of Energy Efficiency and Renewable Energy, as well as the Office of Electricity Delivery and Energy Reliability.
2.4.2.2.2 Regulatory Structure for RE
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National Energy Act of 1978
In response to the energy crisis of 1973, the US enacted the National Energy Act in 1978. The act comprises five acts, including the Public Utility Regulatory Policies Act, Energy Tax Act, National Energy Conservation Act, Natural Gas Policy Act, and Power Plant Industrial Fuel Use Act.
The Public Utility Regulatory Policies Act aims to increase the use of RE by promoting the development of hydropower. The Energy Tax Act supports tax exemptions for individuals utilizing solar, wind, and geothermal energy, as well as incentives for utilizing RE. In addition, this act supports benefits for business owners purchasing and installing RE generators.
Energy Security Act of 1980
Resources Act, Solar Energy and Energy Conservation Act, Geothermal Energy Act, Biomass Energy and Alcohol Fuels Act, and the US Synthetic Fuels Corporation Act. These regulations facilitate policies to switch to RE sources, such as solar, biomass, alcohol, wind, and geothermal energy.
Energy Policy Act of 1992
The US government passed the Energy Policy Act into law in 1992 to reduce dependence on oil imports and increase the use of clean energy, strengthening energy security and improving energy efficiency. Revisions to the Public Utility Holding Act removed the obstacles in the wholesale power markets, speeding new entrants and allowing non-utility generators into the grid.
A partial tax exemption was introduced for the electricity produced from several RE sources, including wind power. Measures were introduced to support permanent tax credits to companies investing in or purchasing solar or geothermal energy facilities.
In addition, the newly introduced Renewable Energy Production Incentive (REPI) program provides incentives at a rate of 1.5 cent per 1 kW of electricity generated and sold from renewables such as solar, wind, geothermal, and biomass. This act provides for RE technology transfer programs to reduce trade deficits, increase employment in related industries, and support environmentally friendly RE through exports of RE technologies.
American Jobs Creation Act of 2004
The American Jobs Creation Act (2004) expanded the subjects of production tax credit to power generated from wind, biomass, geothermal, solar, small hydro, and urban solid waste.
Energy Policy Act of 2005
The Energy Policy Act of 1992 was amended after 13 years (2005) and provides for improving of energy efficiency and conservation, increasing the utilization of alternative and renewable energies, reducing dependence on foreign energy and increasing domestic consumption, modernizing of old electrical facilities, managing energy demand and expanding nuclear energy for development in next- generation energy. The act supports tax exemption support and funding guarantees for various forms of energy, including RE, oil and gas, nuclear, and hydrogen.
Along with the tax benefits for using wind, solar and biomass, the act first introduced tax benefits for the household use of solar energy. As regards the transportation sector, the act supports increased research and development of hydrogen technologies and provides for standards on fuel that encourage the use of renewable fuel such as ethanol and biodiesel.
Energy Independence and Security Act of 2007
This act mainly relates to the energy independence and security of the US, increasing the production of RE, improving the energy performance of the Federal Government, and reducing GHG emission. It was initially proposed by the House of Representatives as the Clean Energy Act in 2007 and was amended, supplemented, and eventually passed by the US Senate as the Renewable Fuels, Consumer Protection, and Energy Efficiency Act (2007).
After major controversy over some items, the Corporate Average Fuel Efficiency, which mandates automobile manufacturers to increase the average fuel efficiency of passenger cars and light trucks from 22.5 miles per gallon to 35 miles per gallon by 2020, along with the stricter Renewable Fuel Standard, was incorporated into the act.
American Recovery and Reinvestment Act of 2009
The US introduced the Green New Deal in 2009, after the global financial crisis and passed the American Recovery and Reinvestment Act into law. This act supports the allocation of more than 800 billion US dollars to stimulate sustainable job creation in RE, improvement of energy efficiency, clean energy technologies (renewable power, carbon capture technology), improvements to auto and fuel technologies and the smart grid, support of investments into these sectors, and aid in the growth of the clean energy sector. Specifically, this act supports direct expenditures and tax exemptions for these sectors.
2.4.2.3 Japan
2.4.2.3.1 Organizations Related to RE
Agency for Natural Resources and Energy (ANRE)
In Japan, ANRE functions as an external agency of the Ministry of Economy, Trade and Industry to undertake work related to energy and resources. The main focus of ANRE includes policies related to energy conservation and new energy, policies related to petroleum, petroleum products, coal, and other minerals and their supplies, pricing of petroleum and petroleum products, support policies for domestic and foreign energy resource development, nuclear power and safety management policy, and mineral resources and energy-related international cooperation services. The department of energy conservation
New Energy and Industrial Technology Development Organization (NEDO)
NEDO is the largest public research and development management organization in Japan. The mission of this organization is to “address energy and environmental issues” and “strengthen industrial technology”.NEDO was created to enhance industrial technology and promote the commercialization thereof by promoting the research and development that has been carried out by using skills from the private sector, promoting research and development done by the private sector related to technology for non-fossil energies, combustible natural gas, and coal. In addition, NEDO promotes the technology required for the rational use of energy and technology in mining and industry, as well as utilizing such technology in cooperation with the international community. Thereby it contributes to ensuring a stable and efficient energy supply in accordance with the changes in the domestic and foreign economic and social environments. This also contributes to the development of the economy and industry.
NEDO provides distribution support by assisting in the development of energy and environmental technologies. This includes the development and deployment of new energy, such as biomass, geothermal power, fuel cells, and offshore, as well as to solar PV generation, and wind. Additionally, it supports energy conservation technologies in the industrial, housing, commercial, and transportation sectors and various recycling technologies, as well as strategies for combatting climate change. Lacking its own research and development facilities, academic-industry research institutes are commissioned for this function.27
[Figure 2-15] The role of NEDO in Japan
27 Wikipedia
Source: Japan NEDO website, http://www.nedo.go.jp/english/introducing_index.html