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 85. The need for a steady transition to a broader and more sustainable mix of energy sources is beginning to become accepted. Renewable energy sources could contribute substantially to this, particularly with new and improved technologies. but their development will depend in the short run on the reduction or removal of certain economic and institutional constraints to their use. These are formidable in many countries. The high level of hidden subsidies for conventional fuels built into the legislative and energy programmes of most countries distorts choices against renewables in research and development, depletion allowances, tax write-offs, and direct support of consumer prices. Countries should undertake a full examination of all subsidies and other forms of support to various sources of energy and remove those that are not clearly justified.

86. Although the situation is changing rapidly in some jurisdictions, electrical utilities in most have a supply monopoly on generation that allows them to arrange pricing policies that discriminate against other, usually small, suppliers. In some countries a relaxation of this control, requiring utilities to accept power generated by industry, small systems, and individuals, has created opportunities for the development of renewables. Beyond that, requiring utilities to adopt an end-use approach in planning, financing, developing, and marketing energy can open the door to a wide range of energy-saving measures as well as renewables.

87. Renewable energy sources require a much higher priority in national energy programmes. Research, development, and demonstration proects should command funding necessary to ensure their rapid development and demonstration. With a potential of 10 TW or so, even if 3-4 TW were realized, it would make a crucial difference to future primary supply, especially in developing countries, where the background conditions exist for the success of renewables. The technological challenges of renewables are minor compared with the challenge of creating the social and institutional frameworks that will ease these sources into energy supply systems.

88. The Commission believes that every effort should be made to develop the potential for renewable energy, which should form the foundation of the global energy structure during the 21st Century. A much more concerted effort must be mounted if this potential is to be realized. But a major programme of renewable energy development will involve large costs and high risks, particularly massive-scale solar and biomass industries. Developing countries lack the resources to finance all but a small fraction of this cost although they will be important users and possibly even exporters. Large-scale financial and technical assistance will therefore be required.

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&#x2165;. ENERGY EFFICIENCY: MAINTAINING THE MOMENTUM
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89. Given the above analysis, the Commission believes that energy efficiency should be the cutting edge of national energy /…