• Instructions on calculating Vector for Indicator 4

• General Discussion

• Examples

Where to get data:

The required data is typically published by national governments, natural resource agencies, energy ministries, petroleum and power sector trade associations, electric boards, or government-owned electric utilities. The United Nations Statistical Office, United Nations Development Programme, International Energy Agency, or the World Bank may also publish data for each country. Include international financing assistance from the World Bank, regional development banks, and other multilateral assistance. The objective is to calculate clean energy investment as a fraction of total energy investment.

Calculating the vector value:

This indicator's vector is defined as follows: 

• the 1990 investment in clean energy as a fraction of total energy-related investment is the standard or "1" value. 
• The sustainability objective-the "0" at the center of the Star-is defined as clean energy investment reaching 95% of total energy-related investment. 
• The vector value is more complicated, since the difference between the base year 1990 and the sustainability objective is different for each country. 
• The vector's value is not simply the fractional improvement but is divided over the 1990 value and the 95% objective. 
• See the example below for clarification and instruction. 

Enter the following data:
 

• Country's total investment in clean energy in 1990:

=                               

• Country's total investment in clean energy in                      :

=                               

• Country's total energy-related investment in 1990:

=                               

• Country's total energy-related investment in                     :

=                               

• Clean energy investment in                      /  total energy investment in                     

= X =                               

• Clean energy investment in 1990  /  total energy investment in 1990

= Y =                               

Actual calculation of the vector: 
 

• Formula: (0.950 - X) / (0.950 - Y)

• country's vector in                   .

= (0.950 - X ) / (0.950 - Y)

=                               

• Optional vector calculation for 1990:

• country's vector in 1990.

= (0.950 -                    ) / (0.950 -                  )

=                               

Vector:

• 1 : 1990 investment in clean energy as a fraction of total energy investment 
• 0 : 95% of total energy investment is in clean energy 

Certainly, energy investment should be guided by least-cost planning criteria, hopefully including social and environmental costs, which typically suggests much greater investment in end-use efficiency first, then many renewable options (including off-grid, grid-connected, and micro-grid generation systems). SEW decided not to include pollution-prevention and similar "clean-technology" programs in its definition of clean energy even though such investments help protect the health and welfare of workers, affected people "downstream," and the environment.

Drawing a clear line between "clean" and "dirty" energy technologies is not easy. Some would argue that natural gas is a plentiful and clean-burning low-carbon fuel and must be used as a practical bridge to even cleaner fuels in the future. Displacing wood and charcoal cooking with gas or solar cookers, or replacing kerosene lighting with coal-fired electric lighting greatly reduces indoor human health impacts. Investing in "clean coal" technologies, improving the conversion efficiency of thermal powerplants, and reducing the losses in electric transmission and distribution systems are all ways to improve overall system efficiency and should be considered progress toward sustainability. Manufacturing of renewable energy systems have environmental costs, too, and large hydropower facilities can devastate local ecosystems and cultures. The nuclear industry argues that zero-carbon nuclear powerplants are the only safe, environmentally responsible way to satisfy ever-expanding demand for electricity. 

All of these arguments have some merit. But SEW decided to not include energy technologies that are partially sustainable or a bit more sustainable than other options. SEW carefully weighed all sides of the issue and decided to measure investment in renewable energy and all cost-effective end-use and supply efficiency. For the sake of clarity, SEW adopted the classification of the International Energy Agency and excluded investment in large hydro, since deep concern for its unsustainability characteristics is prevalent. Observer-Reporters will therefore exclude any hydroelectric dams over 100 MW. 

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Examples:

Take a hypothetical country called Elbonia. With assumed total energy sector investment of $10 billion in 1990 and $13 billion in 1998 and investment in clean energy (renewables, energy efficiency) of $560 million in 1990 and $820 million in 1998. The fraction in 1990 = 0.056 (5.6%) and 0.063 in 1998. Since the 1990 fraction is defined as the "1" vector value and a 95% (0.950) investment fraction as the "0" value, the length of the unit vector is 0.950 minus 0.056 = 0.894. Hence the improvement to 0.063 clean energy investment in 1998 represents a vector position of (0.894 minus (1998 minus 1990))/0.894, which equals (0.894 - (0.063 - 0.056))/0.894 = (0.894 - (0.007))/0.894 = 0.887/0.894 = 0.992.