Shifting the current paradigm of energy world is underlying theme of the International Conference for Renewable Energies Bonn 2004. Presently the world spends more than 1 trillion Euro per year in energy bills and invests between Euro 290 and 430 billion annually in new energy infrastructure. Redirecting a fraction of these funds would help increase share of new renewables dramatically. New renewable energy sources offer more than enough potential to meet human energy needs and are inherently decentralized and thus unlikely to spark wars and conflicts that are so familiar in oil rich countries.
Present energy system is out and out biased against renewable energies. Fossil fuels receive Euros 200 to 250 billion subsidies every year from taxpayers, making them artificially competitive. Administrative and regulatory obstacles often shut new renewables out of energy market. But even under such conditions, thermal solar energy, wind and modern biomass are reaching cost competitiveness in many places.
The current energy scenarios for the 21st century are not sustainable. Environmental disaster will hit the poor hardest and perpetuate the widening gap between rich and poor between and within countries. Access to basic, clean and affordable energy services is essential for sustainable development and poverty eradication (within energy poverty there is a gender bias) and can provide major benefits in the areas of health literacy, job creation, income generation, economic empowerment and equity. Many poorer communities in rural areas have either limited or no access to clean energy.
The over arching aim of International Conference for Renewable Energies 2004 is to prepare the ground for global expansion of renewable energies integrated into broad strategy to create a highly efficient and sustainable energy future. The conference will identify key obstacles to wider use of renewable energies and focus on practical solutions to overcome these barriers. In bringing together the key decision-makers from the fields of energy, environment, development and planning the conference will address key challenges in sustainable development such as access to energy for the poor and the protection of the global climate.
Renewable energy flows are very large in comparison with mankind's use of energy. Therefore, in principle all our energy needs both now and into the future can be met by energy from renewable sources. A technology exists that converts renewable energy carriers directly into desired energy services. Renewable energy now provides 14 percent of the world's primary energy, mostly traditional biomass, and 20 percent of electricity, mostly hydropower. Technological development during the last decade has resulted in modern renewable supply becoming competitive in many situations. Further technological development and industrial learning will continue to bring down costs. When environmental costs and security of supply considerations are included, renewable energy has even wider markets. With decisive efforts to speed up this dissemination, all human energy needs could be met by rerouting a small fraction of naturally occurring renewable energy flows within a century.
Renewable energy is inexhaustible and abundant. Ultimately it was the origin of fuels on the basis of which the Industrial Revolution was built. These sources of energy however will not last forever and have proven to be one of the main sources of our environmental problems. It is clear therefore that in due time renewable energies will dominate the world's energy system due to their inherent advantages such as mitigation of climate change, generation of employment and reduction of poverty, as well as increased energy security and supply.
All energy used by man originates in one of the following sources:

(a) Radiant energy emitted by sun (solar energy).
b) Geothermal energy from interior of the earth.
c) Tidal energy originating in the gravitational pull from the moon.
(d) Nuclear Energy.

Solar energy is thousands time larger than all others and inexhaustible as long as the sun shines. Table: 1 compares the energy available on earth with present energy consumption and fossil fuel reserve.

Energy Available on Earth



Lasting for a long time is not the only criterion to judge an energy source. The way it is converted into form that meets our needs, the environment and health issues at the local, regional and global level, the problem of the guaranteeing energy security, the overriding social issues such as connection between energy and poverty, employment generation and gender, have also to be addressed.
Solar energy manifests itself as low temperature solar heat, high temperature solar heat, wind electricity and photo voltaic. Low temperature solar heat is produced by the absorption of sunlight by darkened surfaces that convert heat that can be used for warming water and other fluids. High temperature solar heat can be obtained by focusing sunlight by darkened and heating fluids to high temperature that can be used to generate electricity. Wind electricity is produced by winds created by turbulence caused by the warming of the atmosphere by solar heating.
Photovoltaic is the direct conversion of the ultraviolet component of sunlight into electricity in appropriate surface. These forms of energy are all renewable by definition. Geothermal is directly linked to sunlight, which evaporates water of the oceans, which precipitates in the form of rain in the continents forming rivers. Dams are built on rivers forming reservoirs, which guarantee a steady supply of water for electricity generation. Small hydropower projects usually produce less than 10MW. However large projects flood vast areas causing displacement of people and creating other undesirable ecological and social impacts.
A small part of the solar energy reaching earth in converted by photosynthesis into biomass (organic matter) part of such matter was buried in the distant past (hundreds of millions of years) by sediments and earthquakes and transformed by bacterial action in coal, oil and gas which constitute present fossil fuel resources (which are not renewable). Biomass is usually used as a renewable energy excepts when leading to deforestation.
Biomass energy is an important source of energy for majority of the world's population. The use of biomass energy is expected to increase in the near future, with growth in population. In many developing countries (particularly sub Saharan Africa) traditional biomass energy dominates national energy statistics, leading to significant negative impacts on human health and environment. There are however opportunities for developing improved and modern biomass energy technologies which offer substantial benefits in terms of enhanced quality of energy services and reduction in negative health and environmental impacts. In addition, the sustainable harvesting of biomass resource is essential for ensuring the continued availability of this important energy source particularly for the worlds poor. Biomass can be categorized into three clusters namely traditional, improved and modern biomass. With special emphasis on developing regions policy options are to be evolved targeting at increasing the further development and wider dissemination of improved and modern biomass energy.
Capacity development including education & training is crucial for increased contribution of Renewable Energy Technologies (RETs) to sustainable energy development. The rapid development of individual RETs along with basic changes in the institutional and market structures governing the energy sectors in most countries present new challenges for any development effort. It is evident that integrated action is the key to success. Important areas for action include policy planning and legislation -- a well designed and sustained policy framework is the key to market development and scale up for RETs. Resource and technology data is an area for continuous development mainly for developing countries. Lack of appropriate data on resources and technology performance are barriers to increase RET implementation. Entrepreneur and business development are crucial components in strong private sector investment and RETs offer good opportunities especially for small and medium scale enterprises in both developing and industrialized countries.
For renewable energy to achieve its market potential, enabling policy frameworks and financial instruments are necessary that give financiers the necessary assurance and incentives to shift investment away from carbon emitting conventional technology to large scale investment in clean energy systems. National policy instruments such as feed-in laws targets, and trade able RE certificates create a framework that provide a guaranteed market and reward those who invest in renewables. A level playing field that makes RE more competitive results from polices that remove subsidies and internalize the environmental and social cost of burning fossil fuels to help eliminate market price distortions. The Kyoto instruments CDM and JI provide a new source of finance for RE projects. Capacity Development is needed to help the mainstream financial community understand renewable energy project opportunities and risks.
The project-based Kyoto Mechanisms CDM and JI can improve financing of renewable energy projects but will not provide a panacea for large-scale renewables promotion as long as the market price for greenhouse gas reduction credits will remain at its current level of 3 eb/t CO2.
The incentive per Kwh currently is below the feed in subsidies in Europe ie. in the order of magnitude of 0.3-0.8 ct/Kwh depending on the baseline and CER prices. This may however change if USA ratifies the Kyoto Protocol and a tendency emerges to make future emission targets more stringent. Thus, CDM and JI currently promote renewable energy technologies whose costs are not much above those of fossil fuel technologies. The Kyoto Protocol mechanism will definitely not be a vehicle to promote photovoltaic. For renewable energy to make a significant contribution to economic development, job creation, reduced oil dependence and lower greenhouse gas emissions, it will be essential to improve the efficiency of technologies, reduce their costs, and develop mature, self-sustaining industries to manufacture renewable systems. The goal must not be simply to install capacity, but to provide the conditions for creation of sustained and profitable industry, which will result in increased renewable energy capacity and generation, and will drive down costs. To achieve it, a viable, clear and long-term government commitment is critical. Also essential are policies that create markets and ensure a fair rate of return for investors.
Most of the renewable energy development experiences have been driven by countries with feed in or pricing systems. At the same time, a combination of policies is required, including standards, education, stakeholders' involvement, and incentives to bring down the initial costs of investment and reduce risk, whether real or perceived. Ultimately, the effectiveness of polices in promoting renewable energy will depend or their design and enforcement. The widespread employment of renewable energy is a vital prerequisite for the transformation of the global energy system towards sustainability. The evolutionary process can only be successful if intensified research and development (R&D) efforts provide suitable foundations. The current global trend of declining energy R&D expenditure does not meet the challenges of sustainability. So significant technological and non-technological R&D efforts must for undertaken.