anthi charalambous dg tren, d2 technology and innovation in energy bioenergy: policy and status...
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Anthi CHARALAMBOUSDG TREN, D2 Technology and Innovation in Energy
Bioenergy: Policy and Status
AgEng2008 conference, Crete 23-25 June 2008
EUROPEANCOMMISSION
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Contents
1. Background (energy in figures)
2. The Energy & Climate Package January 2008
3. The SET Plan (November 2007)
4. Food Prices (May 2008)
5. Financial Instruments/support (2007-2013)
6. Conclusions
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Bioenergy in the Global scene already plays a major role supplying ~10% of world primary energy supplies
Fuel Shares in World Total Primary Energy Supply 2005
20%
26%10%2%0%0%6%
36%
Natural Gas
Coal
Bioenergy
Hydro
Other Renewables
Non renewable waste
Nuclear
Oil
IEA Renewables Information 2007
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Breakdown of renewable electricity in 2005 (normalised) for the EU-27
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RES-Heating Cooling expected growth
Heating and cooling projections by 2020
0
20
40
60
80
100
120
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200
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0
RE
S-H
- e
ner
gy
ou
tpu
t [M
toe/
year
]
Solar thermalheat
Geothermal -heat pumps
Geothermal -non heat pumps
Biomass heat
Historical development Future development
Source: Renewable Energy Roadmap COM(2006) 848 final
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| 8Source: EurObserv’ER 2007
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Current status: Bioethanol
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Contents
1. Background (energy in figures)
2. The Energy & Climate Package January 2008
3. The SET Plan (November 2007)
4. Food Prices (May 2008)
5. Financial Instruments/support (2007-2013)
6. Conclusions
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Package of energy and climate measures (January 2008)
•Reform of emissions trading scheme (ETS)
•National targets for greenhouse gas emissions in non-ETS sectors (buildings, transport, agriculture)
•Directive on Carbon Capture and Storage (CCS)
•Renewable Energy Directive
•Reform of environmental state aid guidelines
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Renewable Energy Directive
• Sets targets for 2020:» National targets for the overall share of renewable energy (adding
up to 20%)» Targets for renewable energy in transport (10%)
• Flexibility in meeting targets:» Electricity and large-scale heat consumed in one Member State
can count towards the target of another
• Removes obstacles to the use of renewable energy:» Improving administrative procedures, information provision and grid
access» Higher blends of biofuel in diesel
• Improves the performance of renewable energy:» Efficient forms of renewable energy in buildings» Biofuel sustainability and national reporting» Incentive for second-generation biofuels
Climate Action: Biofuels in the renewable energy directive 12
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The RES Directive (1)1. Sets mandatory national targets for RES shares,
including 10% biofuels share, in 2020 (Art.3 and 5)
2. Requires national action plans (Art. 4)
3. Standardises “guarantees of origin” (certifying the RES origin of electricity or heat) (Art. 6, 7, 8 & 10)
4. Enables the transfer of guarantees of origin to give Member States flexibility to meet their targets by developing cheaper non domestic renewable energy (Art. 9)
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5. Reforms, or requires reforms of administrative and regulatory barriers to the growth of RES (Art. 12)
6. Requires improvements in provision of information and training regarding renewable energy (Art. 13)
7. Improves renewables’ access to the electricity grid (Art. 14)
8. Creates a sustainability regime for biofuels (Art. 15- 18)
The RES Directive (2)
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National Renewables Targets
0
5
10
15
20
25
30
35
40
45
50
2020
2005
Sets mandatory national targets for renewable energy shares,
including 10% biofuels share, in 2020: from 8.5% to 20% for the
EU overall.
Shares of renewable energy, 2005 and 2020
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How do we get there? Green X balanced scenario projection of renewable energy growth (GWh, EU25)
0
500
1,000
1,500
2,000
2,500
3,000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Biofuels
Solar thermal heating
Wind offshore
Wind onshore
Tide & wave
Solar thermal electricity
Photovoltaics
Geothermal heat & heatpumps
Geothermal electricity
Biomass, biogas,biowaste - H
Biomass, biogas,biowaste - E
Hydro
BioPower is estimated to triple by 2020in relation to 2005
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Purpose: achieve 12% RES target by 2010, diversify energy mix, reduce greenhouse gas emissions, job creation and stabilisation of rural regions
Main features:• supplemantary to EU legislation• holistic approach: from biomass mobilisation to end use,
from awareness rising to research• comprising all energy sectors: electricity, heating/
cooling, transport fuels
The EU Biomass Action Plan Communication COM(2005)628 final
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National Biomass Action Plans (nBAPs)
Climate Action: Biofuels in the renewable energy directive
6 ms currently have developed a nBAP (Denmark, Esthonia, Ireland, Netherlands, Slovenia and UK)
7 ms can be considered in preparation phase (AT, BG, CZ, FR, DE, LV, SK)
14 ms have no nBAPs
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Biofuels sustainability – Criteria
• Greenhouse gas impact
• Land use/ carbon stock
• Biodiversity
• Environmental requirements for agriculture
Climate Action: Biofuels in the renewable energy directive
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Biofuels sustainability – Scope
• The sustainability criteria apply to:
» Biofuels (liquid and gaseous fuels used in transport)» Other bioliquids (liquid fuels used in heating and
electricity)
• By 2010, the Commission will report on criteria for other energy uses of biomass
Climate Action: Biofuels in the renewable energy directive
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Promotion of Biofuels (1)
GHG savings – minimum of 35%
No raw material from undisturbed forests, biodiverse grassland, nature protection areas (unless taken harmlessly)
No conversion of wetlands and continuously forested
areas for biofuel production (to protect carbon stocks)
All EU biofuels must meet “cross compliance”
environmental rules
Sustainability criteria for biofuels
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• Consequences of not meeting the criteria:- Biofuels do not count towards targets
- Not eligible for national biofuel obligations
- Not eligible for tax exemptions and similar financial support
• Verification of compliance:- Responsibility of Member States
- To reduce the administrative burden, Commission can decide that “certification schemes” give reliable proof of compliance
- If so, all Member States have to accept these certificates as proof
Promotion of Biofuels (2)
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What‘s next on the overall package?
» Policy proposal of the Commission, January 2007
» Endorsed by the European Council, March 2007
» Endorsed by Parliament, September 2007» Legislative proposal of the Commission,
January 2008» Discussion by Council of Ministers, European
Council and Parliament through to 2009» Adoption May 2009???
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Contents
1. Background (energy in figures)
2. The Energy & Climate Package January 2008
3. The SET Plan (November 2007)
4. Food Prices (May 2008)
5. Financial Instruments/support (2007-2013)
6. Conclusions
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22 November ‘package’
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.COM(2007)723 – SET-Plan CommunicationSupporting documents:
.SEC(2007)1510 – Technology Map.SEC(2007)1511 – Capacities MapImpact assessment:
.SEC(2007)1508 & SEC(2007)1509
. http://ec.europa.eu/energy/res/setplan/communication_2007_en.htmEUROPEAN
COMMISSION
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The SET-Plan
Some key technological challenges
First and foremost, energy efficient buildings, appliances, equipment,
industrial processes and transport
Developing 2nd generation biofuels
Getting large scale offshore wind competitive within the short term
Getting photovoltaic electricity competitive to harness solar energy
Creating a European smart, bi-directional, RES friendly grid
Fuel cell and hydrogen technologies
Sustainable coal and gas technologies
Fourth generation fission nuclear reactors and future fusion technology
…
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The SET-Plan
Proposals
. Joint strategic planning – Steering group + Information System
. Effective implementation:
» European Industrial Initiatives: strategic technology alliances.
» European Energy Research Alliance
» Trans-European Energy Networks and Systems of the Future – Transition planning
. Increase in resources, both financial and human.
. Reinforce international cooperation
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Contents
1. Background (energy in figures)
2. The Energy & Climate Package January 2008
3. The SET Plan (November 2007)
4. Food Prices (May 2008)
5. Financial Instruments/support (2007-2013)
6. Conclusions
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Food vs Fuels
•Commission Communication COM(2008)321 final (adopted 20.5.2008) – “Tackling the challenge of rising food prices Directions for EU action”
Climate Action: Biofuels in the renewable energy directive
» Policy responses to mitigate the effects of rising global prices
» This document was discussed in the European Council 19-20 June 2008
» Short term measures in the context of the Health Check of the Common Agricultural Policy
» Biofuels production is not the only cause of the increase in the global food prices
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Food vs Fuels
•Commission Communication COM(2008)321 final (adopted 20.5.2008) – “Tackling the challenge of rising food prices Directions for EU action”
Climate Action: Biofuels in the renewable energy directive
» The current EU biofuel production has little impact on current global food prices
» The 10% target for the use of biofuels for transport can be achieved by the new generation biofuels
» The sustainability criteria (under discussion) shall ensure the production of biofuels in a sustainable way without damaging site effects
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Contents
1. Background (energy in figures)
2. The Energy & Climate Package January 2008
3. The SET Plan (November 2007)
4. Food Prices (May 2008)
5. Financial Instruments/support (2007-2013)
6. Conclusions
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Financing Renewables
.Community Level.National/Regional Level.Private /Other sources
GeothermalBioenergy WindSolar Wave/Tidal
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Community Level
.EU funds (2007-2013)» European Regional Development Fund (9 bln €)» Cohesion Fund ( X? bln €)» European Agricultural Fund for Rural Development
( X? bln €).EU Programmes (2007-2013)» 7th Framework Programme (2.3 bln €)» Competitiveness and Innovation Programme (CIP)
( 730 mln €)
Funding Instruments
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. CIP - Intelligent Energy for Europe (SAVE, STEER, ALTENER) and Integrated Initiatives: e.g. bio-businesses, co-generation, energy services. Call for proposals (TREN call opened April 2008): http://ec.europa.eu/energy/intelligent/call_for_proposals/index_en.htm
. FP7 (TREN call opened April 2008): http://cordis.europa.eu/fp7/home_en.html
FP7: Dissemination of knowledge and innovation-
related activities
CIP: Innovation support networks and take-up of
proven technologies
€2.3 billion on energy theme2007-2013
€730m on IEE2007-2013
FP7 & Competitiveness and Innovation Programme (CIP)
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COOPERATION 2007 – 2013 (€32,4 Billion)
2.350
6.100
1.935
9.050
3.475
1.890
4.160
0.623
1.430
1.400
0 2 4 6 8 10
1. Health
2. Food, Agriculture, Fisheries,Biotechnology
3. Information & CommunicationTechnologies
4. Nano-sciences, Nano-technologies,Materials & New Production Technologies
5. Energy
6. Environment
7. Transport
8. Socio-economic Sciences & Humanities
9. Space
10. Security
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Is it DG RTD or DG TREN ?
Open in call : FP7-ENERGY-2008-TREN-1
Open in call: FP7-ENERGY-2008-1
DG TREN (call open)
DG RTD (call closed)
References in the 2008 call
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What is demonstration?
.Basic research and pilot phases are finished
.Industrial led projects with significant potential impact on new binding targets before 2020
.Research only if industrial partners determine the need for research during demonstration (typically less than 20%)
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Predominant demonstration: Typical budget repartition for eligible costs
Demonstration about 70%
Research and Development including monitoring / Dissemination /promotion activities
up to about 25%
Management up to about 7%
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Timing of TREN Call 2008
.Call launched 29 April 2008
. Info Days in Brussels
CONCERTO 3 - 4 April 2008
General 20 June 2008
.Deadline for submission 8 Oct 2008!
.Evaluation Nov 2008
. Info to proposers before end 2008
2009 call to be launched in July 2008
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Areas opened in 2008 (DG TREN)
.RES-electricity generation 42 M€*
.Renewable Fuel Production 35 M€*
.CCS/Clean Coal 20 M€*
.Smart energy networks 5 M€
.Polygeneration 5 M€*
.CONCERTO 40 M€*
Ideally 20 projects will be supported for about 147 M€
* Indicative amount; depending on the quality of the proposals
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ACTIVITY ENERGY 2: Renewable Electricity GenerationArea Energy 2.2: Biomass.Topic Energy 2008.2.2.1: Enhancing
strategic international cooperation with
Russia in the field of power generation
from biomass
.Topic Energy 2008.2.2.1: High efficiency
medium-to-large scale electricity
generation from biomass and waste
* Indicative amount; depending on the quality of the proposals
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ACTIVITY ENERGY 3: Renewable Fuel Production
.Topic Energy 2008.3.1.1:
Biomethane from high moisture biomass
(Area 3.1: first generation)
.Topic Energy 2008.3.2.2:
Bioethanol from lignocellulosics
(Area 3.2: second generation)* Indicative amount; depending on the quality of the proposals
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0
1000
2000
3000
4000
5000
6000
7000
8000
9000
Mil
lio
ns o
f €
as in 1980 as in 1985 as in 1990 as in 1995 as in 2000 in 2005
Energy RTD investment in the EU in 2005, if we were investing at the same rate as in ...
In 1980 we were investing 4 times morethan today
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More information
.Homepage DG Energy and Transporthttp://
ec.europa.eu/dgs/energy_transport/index_en.html
.FP7 Cordis homepage: www.cordis.europa.eu
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Financing bioenergy at National Level
.Support systems for RES-electricity.Tax credits, Tax exemptions.Investment grants, loans, interest free loans
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.Existing support systems for RES-electricity» Feed-in tariffs» Green certificates» Tendering procedure» Tax incentives
National LevelSupport for RES-e
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National LevelSupport for RES-e
Renewable energy promotion policies in Member States from 2006 and onwards
Feed-in Tariffs Austria, Cyprus, Czech Republic, Denmark, Esthonia, France, Germany, Greece, Hungary, Ireland, Italy (only for PV), Latvia, Lithuania, Luxembourg, Malta (only for PV), Netherlands, Portugal, Slovak republic, Slovenia, Spain
Quota/Tradable Green certificates
Belgium, Italy (wind, bioenergy), Latvia, Poland, Romania, Sweden, UK
Investment grants or other tax incentives
Finland
Sales tax, energy tax, or VAT reduction
Belgium, Czech republic, Denmark, Estonia, France, Germany, Hungary, Netherlands, Sweden, UK
Public Investment, loans or financing
Austria, Denmark, France, Ireland, Latvia, Poland
Sources: Renewables 2007 (Global Status Report), Commission Staff Working Document Annex to the Impact Assessment
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National LevelSupport RES Heating/Cooling
• Support measures at National level:
• Tax credits
• Investment grants, loans, interest free loans
• Regulatory measure:
• Obligations
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National LevelSupport Biofuels
• Support and regulatory measures at National Level:
•Tax exemptions
•Biofuels obligation
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Other Instruments
.European Investment Bank (EIB)» Financial products at reduced interest
rates» Direct loans for larger projects (> 25 Mill €
total cost)» Indirect loans for smaller projects.Other Banks
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Contents
1. Background (energy in figures)
2. The Energy & Climate Package January 2008
3. The SET Plan (November 2007)
4. Food Prices (May 2008)
5. Financial Instruments/support (2007-2013)
6. Conclusions
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The European Commission strongly supports Bioenergy & biofuels with legislative actions & various programmes for technological advances & market penetration
Conclusions
High oil prices = high profile for bioenergy
Bioenergy’s progress is solid but not fastenough to meet objectives
Plenty more work to be done at all levels
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Thank you for your attention!