5.2 Expert Interviews for Providing Additional Inputs …
63
cases. However, interviewees have recognized that policy makers are considering
with interest how Germany and the Netherlands are developing their own policies.
Further changes towards less subsidized policy instruments shall be expected in
the mid-term.
Significant grid infrastructure upgrade and development will be required to
accommodate large intermittent renewable electricity into the grid. Building flexibility in the system will be required but appear to be challenging. Japanese,
Korean and Taiwanese grids have been designed to accommodate large amount
of baseload electricity (i.e. coal, nuclear…). Unbundling of the electricity sector
has just begun, and it will take years before it materializes (i.e. Korea and Japan).
This may hinder easy access to the grid. Interconnections between grids is poor to
inexistent (i.e. Japan, Australia…). Finally, models used for the calculation of the
grid capacity are underestimating the actual grid capacity. In this context, renewable hydrogen could play a role in providing flexibility to the grid and enable
the development of the large renewable energy projects.
There are no decarbonization targets for the industry. Whether in Japan,
Korea or Australia, governments are still choosing industrial development over
environmental protection, despite having signed the COP21 Paris agreement.
Some industrial actors are considering hydrogen as an alternative energy vector.
However, renewable hydrogen is not yet considered as an economically viable
option.
When the targeted APAC countries signed the COP21 Paris agreement, they
committed to act for limiting their impact on the climate change. One action is the
development of the renewable energy sector. However, the level of development of
large renewable energy projects is contrasted depending on the APAC countries.
Onshore renewable energy development in Korea is limited because of the lack
of space (i.e. large flat areas for solar PV). In Japan, electricity is expensive in
general and offshore wind is estimated to be produced at 250 euros per megawatt.
Other carbon neutral technologies such as nuclear are still on the agenda of Korea
and Japan, directly competing with renewable energy. Australia still has a strong
coal industry. Though renewable energy is developing, Korea and Japan will have
difficulties to reach their targets. Taiwan seems more committed while the Federal
Australian government has recently transferred its “Climate change function” to
the Department of Industry, Science, Energy and Resources. Targets which were
defined until 2020 are currently under review.
All the targeted APAC countries see an opportunity in developing a so-called
hydrogen economy. Whereas the Netherlands see the development of the renewable hydrogen as an opportunity to address the climate change challenges, the
APAC markets have taken an interest on hydrogen for different reasons. Korea and
63
cases. However, interviewees have recognized that policy makers are considering
with interest how Germany and the Netherlands are developing their own policies.
Further changes towards less subsidized policy instruments shall be expected in
the mid-term.
Significant grid infrastructure upgrade and development will be required to
accommodate large intermittent renewable electricity into the grid. Building flexibility in the system will be required but appear to be challenging. Japanese,
Korean and Taiwanese grids have been designed to accommodate large amount
of baseload electricity (i.e. coal, nuclear…). Unbundling of the electricity sector
has just begun, and it will take years before it materializes (i.e. Korea and Japan).
This may hinder easy access to the grid. Interconnections between grids is poor to
inexistent (i.e. Japan, Australia…). Finally, models used for the calculation of the
grid capacity are underestimating the actual grid capacity. In this context, renewable hydrogen could play a role in providing flexibility to the grid and enable
the development of the large renewable energy projects.
There are no decarbonization targets for the industry. Whether in Japan,
Korea or Australia, governments are still choosing industrial development over
environmental protection, despite having signed the COP21 Paris agreement.
Some industrial actors are considering hydrogen as an alternative energy vector.
However, renewable hydrogen is not yet considered as an economically viable
option.
When the targeted APAC countries signed the COP21 Paris agreement, they
committed to act for limiting their impact on the climate change. One action is the
development of the renewable energy sector. However, the level of development of
large renewable energy projects is contrasted depending on the APAC countries.
Onshore renewable energy development in Korea is limited because of the lack
of space (i.e. large flat areas for solar PV). In Japan, electricity is expensive in
general and offshore wind is estimated to be produced at 250 euros per megawatt.
Other carbon neutral technologies such as nuclear are still on the agenda of Korea
and Japan, directly competing with renewable energy. Australia still has a strong
coal industry. Though renewable energy is developing, Korea and Japan will have
difficulties to reach their targets. Taiwan seems more committed while the Federal
Australian government has recently transferred its “Climate change function” to
the Department of Industry, Science, Energy and Resources. Targets which were
defined until 2020 are currently under review.
All the targeted APAC countries see an opportunity in developing a so-called
hydrogen economy. Whereas the Netherlands see the development of the renewable hydrogen as an opportunity to address the climate change challenges, the
APAC markets have taken an interest on hydrogen for different reasons. Korea and