Despite a potentially thriving renewable sector, Israel’s government selects a relatively modest and unenforced goal
The Israeli cabinet has just approved the 10% renewable energy target by 2020 initially proposed by Finance Minister Roni Bar-On three years ago. This is lower than some had expected. In May, Israel’s Director of Industry had touted a higher level: 20% by 2020. The lower 10% target would be reached in two stages. The cabinet set an interim target of 1,550 MW of renewables to be met by 2014, by setting quotas “allowing for” their development.
The goal would theoretically be reached by setting quotas allowing 800 MW of wind, 460 MW from large solar systems, 210 MW from biogas and waste, and up to 110 MW from rooftop solar. However the policy mechanism is unclear. There are no mandates or fees to be paid by utilities for failing to meet the targets. Feed in tariffs have been set too low to drive investment in renewable energy. There are no carbon taxes to be paid.
Setting a target is not enough. In no nation has setting a goal alone led to achieving it. That is too bad. It’s not as if the Israeli government doesn’t have good reasons to really enforce a switch away from dirty fossil fuels, even aside from the climate issue.
As of 2009, when the target was first proposed by Finance Minister Roni Bar-On, 69% of Israel’s electricity was produced with coal, 23% with natural gas and 7% using diesel fuel or fuel oil, according a report in YNet News. Little has changed. All of these are imported, some from neighbors that are not too friendly. Recently, Israel’s gas supplies, almost half of which comes from Egypt, were disrupted when there were attacks on the pipeline.
And, aside from the disadvantages of maintaining the status quo, there would be real economic advantages to designing robust policy to drive the adoption of more renewable energy. The nation boasts some of the most innovative renewable energy companies in the world, that we cover here at Green Prophet, with news like Pythagoras Solar Wins a GE Ecomagination Challenge Award, and Leviathan Gets EUREKA Grant to Tap Municipal Hydro Power.
Perhaps, with the recent discovery of oil (and therefor, gas) off its coast, Israel’s government is just not worried enough about energy security to make tough policy. It will soon have all the fossil fuels any nation could want. Can Israeli Oil Shale Outsize Saudi Arabia?
The presence of fossil fuels do tend to warp a nation’s renewable energy policies.
Image: SolarOr
I disagree with you on the last point “Israel’s government is just not worried enough about energy security to make tough policy. It will soon have all the fossil fuels any nation could want.”
Israeli(government included) wants to be in clean energy. They just do not want yo overpay for it. Wind(big and medium), biogas and tide energy are competitive with coal and gas now. Solar, on other hand, about three times more expensive as competitive energy sources. Only competitive solar are solar roof installations when energy does not have to be transmitted miles and miles to consumer.
There is zero incentive for Israel to invest in large solar field. Israel ordered 4 or 5 large gas burning plants to be completed in 2013-1014. Untill large solar will come down to price (expected in next 10 years), Israel should not though money on none-competitive technologies.