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Most renewable energy technologies saw ongoing expansion in manufacturing and global demand during 2012 although the effect of shaky policy environments and declining policy support affected investment climates in some established markets, thereby slowing momentum in Europe, China,


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and India.


As their shares of variable wind and solar power increase, several countries such as Denmark, Germany, and Spain have begun to enact policies and measures to successfully transform their energy systems to accommodate even larger shares.


POSITIVE CHANGE • In China, wind power generation increased more than generation from coal and passed nuclear power output for the first time in 2012.


• In the European Union, renewables accounted for almost 70% of additions to electric capacity in 2012, mostly from solar PV and wind power.


• In Germany, renewables accounted for 22.9% of electricity consumption (up from 20.5% in 2011), 10.4% of national heat use, and 12.6% of total final energy demand.


• The US added more capacity from wind power than any other technology, and all renewables made up about half of total electric capacity additions during the year.


• Wind and solar power are achieving high levels of penetration in countries like Denmark and Italy, which in 2012 generated 30% of electricity with wind and 5.6% with solar PV, respectively.


• In emerging markets, where there are rising power demand and attractive renewable energy resources; and falling technology costs for wind and solar PV. Europe and China accounted for 60% of global investment in 2012.


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While the rate of adoption of new policies and national targets has remained slow compared to development in the first five years of the new century, as the sector has matured, revisions to existing policies have become increasingly commonplace. Changes in market conditions for


renewable energies brought about by the lingering effects of the global economic crisis and including a tightening of national purse strings over the last couple of years has seen some countries extensively revise existing legislation, with some laws retroactively imposed.


Other countries have increased their support for renewables, with the adoption of ambitious new targets demonstrating long- term sector commitment. During 2012, feed-in tariff (FIT) policies


were enacted in five African and Middle Eastern countries, the majority of which


involved reduced support. New renewable portfolio standard (RPS) policies were also enacted in two countries with more and more governments looking at tendering for the deployment of renewable technologies. In the heating and cooling sector, enactment was at a steady but slower rate than in the power sector, with 20 countries listed as having specific renewable heating targets in place by early 2013, and 19 countries and states mandating the use of renewable heat technologies. These are also being supported through building codes and other measures.


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Targeting change To achieve high-profile national targets, local governments around the world have adopted a number of measures, including FITs or technology-specific capacity targets, fiscal incentives to support renewable energy deployment, and new building codes and >>


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