eu policy for renewable energy: t he european context
DESCRIPTION
EU policy for renewable energy: T he European context . Daniel Becker Ecofys, Berlin Office 28 April 2006, Ankara. Outline of the presentation. Principles of EU RES Directive Current situation Perspectives for reaching the targets. RES-E share in EU25 – current situation. - PowerPoint PPT PresentationTRANSCRIPT
EU policy for renewable energy: The European context
Daniel BeckerEcofys, Berlin Office28 April 2006, Ankara
Outline of the presentation
• Principles of EU RES Directive• Current situation• Perspectives for reaching the targets
RES-E share in EU25 – current situation
0
10
20
30
40
50
60
70
80
90
EU25EU15 BE CZ DK DE EE EL ES FR IE IT CY LV LT LU HU MT NL AT PL PT SI
SK FI SE UK
RES
-E s
hare
in %
of g
ross
ele
ctric
ity
cons
umpt
ion
1997/1999 2002 Total Share 2010 TARGET
Sources: - Data 2002: Energy and Transport in figures, European Commission in cooperation with Eurostat, 2004- Annex to the Directive 2001/77/EC
Principles of the Directive 2001/77/EC•Quantified national targets for consumption of electricity from renewable sources of energy
•National support schemes plus, if necessary, a harmonised support system
•Simplification of national administrative procedures for authorisation
•Guaranteed access to transmission and distribution of electricity from renewable energy sources
Adoption of national targets in the EU •All EU-15 Member States have adopted national targets, in line
with the reference values listed in Annex I of Directive 2001/77/EC.
•The 10 New Member States of the EU have set up national targets published in the Accession Treaty in April 2003.
•2010 Targets have been agreed with Bulgaria and Romania.
If EU-15 Member States meet these national targets, the 2010 target of about 20% (21% at EU25) will be achieved.
The Commission assessment report May 2004•Commission has approved the communication COM(2004)
366 final: “The share of renewable energy in the EU”.
•Commission Staff Working Document SEC(2004) 547: EU-25 country reports
Main conclusion: An important first step has been done, but extra efforts are still needed
Will the EU achieve its 2010 RES-E target?•Extrapolation scenarios set out in the Commission Staff Working
Document show that Europe is in its half way related to the 2010 target under current policies and measures.
•This is even true if reductions in total electricity demand as a result of new energy efficiency measures is taken into account.
Currently implemented policies will probably result in a share of between 18% and 19%
Will the EU achieve its 2010 RES-E target?
EU-15 Policy Scenario - Electricity 2010Biogas
Solid biomass
Biowaste
Geothermal electricity
Hydro large-scale
Hydro small-scale
Photovoltaics
Solar thermal electricity
Tide & wave
Wind onshore
Wind offshore
22,1%
EU-15 national policies - Electricity 2010
Biogas
Solid biomass
Biowaste
Geothermal electricity
Hydro large-scale
Hydro small-scale
Photovoltaics
Solar thermal electricity
Tide & wave
Wind onshore
Wind offshore
18,3%
Source: Communication from the Commission to the Council and the European Parliament – The share of renewable energy in the EU (SEC(2004) 547), p 13
RES-E share in 2010 – practicable scenario vs. current national policies
Explanations
•Progress in achieving the national targets differ strongly between the Member States.
•Not all Member States have adopted complementary proactive measures geared to national conditions.
•Success of wind energy is not outweighing the slow growth of biomass electricity.
•Biomass is lagging behind.
Wind – the success story• Installed wind energy capacity in EU15 grew 20% in the last 6
years. 34 GW total installed capacity at the end of 2004.• In an average wind year this capacity can produce 74 TWh (=
around 2.4% of EU electricity consumption)•Germany, Spain and Denmark contribute 80% of total EU15
wind power capacity:
0
5000
10000
15000
20000
25000
30000
1997 1998 1999 2000 2001 2002 2003
LuxembourgBelgiumFinlandIrelandPortugalAustriaFranceGreeceSwedenUnited KingdomItalyThe NetherlandsDenmarkSpainGermany
Source: Communication from the Commission to the Council and the European Parliament – The share of renewable energy in the EU (SEC(2004) 547), p 13
Biomass electricity•2010 target will only be achieved if
biomass contributes 40% to it.•Biomass electricity will need to grow
by 18%/year compared to 7% during the past 7 years.
•Additional need of around 32 Mtoe – indicative figure on the biomass availability for energy purposes at EU15 level is 150 Mtoe (additional 32 Mtoe for EU10).
Estimation of the Biomass electricity trend and comparison with the 22% objective (TWh)
162
91
4342
0
20
40
60
80
100
120
140
160
180
1997 1998 1999 2000 2001 2002 2010
22% objectivefulfilled
Current trend
New initiatives – action at European level•Strengthening of the future Community Programme
“Intelligent Energy Europe”•A Community action plan for biomass•Developing renewable energy actions in heating & cooling•Offshore wind policy•Research and technological development•Future Financial Perspectives•Using major Community financing instruments
Structural and cohesion funds, second pillar of the CAP•Placing biofuels on the marketSource: Communication from the Commission to the Council and the
European Parliament – The share of renewable energy in the EU (SEC(2004) 547)
Next steps by the European Commission
•The Commission acknowledges the importance of providing a longer term perspective.
•The Commission will carry out regular reviews of progress in the development of renewable energy sources.
• In 2007 the Commission will set targets for the period after 2010.
•Studying the national measures taken to implement the RES-E Directive in the 25 countries of the EU and to take, if necessary, legal actions.
A closer look at the EU Member States – EU 15•Assessment of progress at the national level by the
European Commission:
On track:
DK, DE, ES, FI
About to be on track:
NL, UK, SE, AUT, BE, IE, FR
Not on track:
GR, PT
Source: Communication from the Commission to the Council and the European Parliament – The share of renewable energy in the EU (SEC(2004) 547)
No information available: LU, IT
On track•DK:
– likely to achieve 2010 target in 2005•DE:
– increased the share of RES-E from 4.5% in 1997 to >9% in 2004•ES:
– second largest European country for wind power•FI:
– impressive evolution of the biomass sector
Driving force: attractive support system in a stable and long-term framework
About to be on track•UK, NL:
– activity in a new policy; full results still have to materialize• IE:
– support system through tendering; difficulties of grid connection of wind farms
•BE:– Green certificate system since 2002; no visible results yet
•FR:– attractive tariff system in place; too soon for a review
•SWE:– green certificate system since May 2003; RES-E production rose hardly
• AU: – good perspective for growth
Not on track
•GR:– High administrative barriers prevent considerable
exploitation of RES•PT:
– High administrative and grid barriers
Feed-in systems and Green Certificates
Daniel BeckerEcofys, Berlin Office28 April 2006, Ankara
Inhibitory forces ti increase RES-E share
Inhibitory forces
Weak supportinstruments
Structural barriers
Financialrestrictions
Technical
Administrative
Grants
Amountof tariffs
Weak domestic financial power
Access to capital
Socio-economic
Design of instruments
Elements to launch RE-S successfully
political support
support schemes
administrative structures
public supporttake-off barrier
EEG: Legal Foundations
Sou
rce:
Ker
nene
rgie
.net
(a n
ucle
ar-p
ower
web
site
)P
rof.
Alt,
Ver
sorg
ungs
iche
rhei
t im
Eur
opäi
sche
n V
erbu
ndne
tz 2
004
(Sup
ply
Sec
urity
in th
e E
urop
ean
Inte
grat
ed G
rid S
yste
m, 2
004)
Of which EEG levy 1.88%
• Federal law (further development of the Power Feed-In Law of 1991)
• Priority for feed-in of RE• Extensive regulation for grid access • legally regulated payment rates
– Long-term perspective and investment security (15–30 years)
– Incentive for the opening up new potentials and technologies (esp. biomass and geothermal energy)
– Strong incentive for efficiency boost, by degression of payment rates
Cost of electric power for households
Features of EEG and its incentives for success
Sales at fixed rate are guaranteed for 20 years
Produced electricity must be purchased
Balances competitive advantage of conventional energy sources
Legal certainty (20 years amortisation period)
Attractive rate of return for investors
Does not put a burden on public funds
Renewable Energy Sources Act (EEG)
Grid operator
Transmission grid operatorTransmission grid operator
Grid operator
Supply company
Supply company
€EEG – how does it work?
Feed-in tariffs
Implications of EEGRE power supply increased from 4.7% (1998) to 10% (2004)
more than 8 million Germans are supplied solely with RE power
Additional costs for private households are low (0.4 cent/kWh) i.e. € 14 per household / year = 2% of annual electricity budget
Some 120,000 people now working in RE sector – twice as many as in 1998
Renewable Energy Sources Act (EEG)
Feed-in and Green Certificates
• Feed-in Systems should have an integrated GoO-component
• What happens with gererated RE-kWh:1. With remuneration by feed-in tarriff, GoO is generated
and used at once2. If not remunerated (e.g. biomass-cofiring, bilateral
agreements, amortised hydropower), GoO can be traded
• Advantages: – avoids abuse (double selling of green electricity)– Transparency for customers („Greenness“ is
purchased)
Green Certificates and ETS•Green Certificates can not be integrated into ETS and, because no additionality is given (as RES-target exists)
•CDM can not be counted as GoO•Qualitative distinction: CDM is counting CO2-Reduction, while GoO certifies produced kWh