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China, the EU and Latin America : current issues and future cooperation
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60 China theEUandLatinAmerica:CurrentIssuesandFutureCooperation consensusonhow muchintermittentelectricitycanbesustainedbythegrid. Maximumpenetrationofintermittentrenewableenergytechnologywillprobably bedeterminedbyeconomicefficiencyandcostconsiderationsratherthanby technicalfeasibility. Thereareseveraloptionswithregardtodealing withintermittencein electricitysystems whichincludeinvestmentinmorereliableinfrastructureand better grid interconnection and balancing mix of renewable energy technologieswithdifferentnaturalcycles.Ingeneral itcanbearguedthat renewableswithhighershorttermvariabilityaremoreriskyforsupplysecurity unlesscombined withrenewables withdifferentnaturalcyclesorappropriate backupcapacity.Theneedforbackupcapacityforintermittentrenewablescan bereducediftheyareusedincombinationwithamixofotherrenewableenergy technologiesthatarelessintermittent.Forexample wind powercan be complementedbylargehydroinstallations orpossiblyeven withhydrogen powered plants. However largescaleintegration ofrenewablesinto the electricitygridwillalsorequireinvestmentinbackupcapacitiesandelectricity storagetocompensatetheremaininguncertaintiesofthegrid. Similarly appropriatedemandside managementstrategies willhelpto regulatedemand forexample bysettingpriceincentivesandincreasingprice transparencytoreducetheuseofelectricityduringpeakhours. Inanefforttoovercomesomeoftherisksassociatedwithrenewableenergy sourcesandtoimproveinternationalcooperationtofacilitatethetransition towardsthe widespreaduseofrenewablesinthe world theInternational RenewableEnergyAgency IRENA wasestablishedon26January2009.While itistooearlytoassesstheeffectivenessoftheorganisation itseemsthatit couldpotentiallymakeasubstantialcontributiontodecarbonisetheglobalenergy sectorbyimprovingtheknowledgebase providingpolicyadvice promoting technologytransferandstimulatingresearch.IncontrasttotheIEA IRENA Signatory Statesinclude bothindustrialised and developing economiesfrom Africa Asia EuropeandLatin America.However thetwolargestglobal greenhousegasemitters ChinaandtheUSA havenot yet joinedIRENA. Tohaveatrulyglobalreach theAgencywillneedtheseandothercountriesto participate forexample Australia Brazil Mexico Russia SouthAfricaand theUnitedKingdom aswellassomeofthemainoilproducingcountries .Only withbroad membership willIRENA beabletopursueaglobalstrategy providingafocalpointforallglobalrenewableenergyissues.Ontheotherhand someindustrialisedcountries may benefitfrom increased globalefforts with regardtorenewables hopingto reapcommercialgainsfromtheirtechnological