ministry of economy, labour and entrepreneurship stories project workshop res and energy storage in...

Ministry of Economy, Labour and Entrepreneurship


STORIES project workshop

RES and Energy Storage in Current and new Croatian Energy Legislation

Igor Raguzin, HeadRenewable Energy & Energy Efficiency Department

SDEWES, Dubrovnik, 2 October 2009

1


Total primary energy supply in Croatia

2

Primary energy production in 2006 were 208,76 PJ, while total primary energy supply were 410,56 PJ import! Obnovljivi izvori - Renewables

0,06%

Tekuća goriva - Liquid fuels45,1%

Ogrjevno drvo - Fuel wood3,7%

Ugljen i koks - Coal and coke7,7% Električna energija - Electricity

4,9%

Vodne snage - Hydro power14,2%

Prirodni plin - Natural gas24,3%


Energy sector change: an overview

3

1994 - Energy Sector Development and Organisation Program

1997 - National Energy Programs-NEP (7 energy efficiency

programs + 5 renewable energy programs)

1998 – Draft Strategy of Energy Sector Development

2000 - Concept of Energy Sector Reform

2001 - Energy Laws (Energy Law, Law on Regulating Energy

Activities, Electricity Energy Market Law, Oil and Oil Derivates

Market Law, Gas Market Law)

2002 - New Energy Strategy-Croatia in 21 Century

2003 - Fund for Environmental Protection and Energy Efficiency

2004/7 - Amendments to Energy Legislation

2007 - New secondary legislation for Renewable Energy Sources


Croatian RES policy

4

Programs, measures projects

1. Governmental2. Regional/local self-

government 3. National energy

programmes

Economic

instruments

1. Fund for

Environmental

Protection and

Energy Efficiency

2. State aids

3. Special EU&inerntl.

projects: CARDS,

IPA, CIP/IEE, GEF-

UNDP-WB, CBRD

Regulatory

framework 1. Directive 2001/77/EC

on the promotion of

electricity produced

of electricity

produced from RES

in the internal

electricity market

2. Directive 2003/30/EC

on the promotion of

the use of biofuels

or other renewable

fuels for transport

3. Directive 2009/28/EC

2020 RES target 20%

RENEWABLE ENERGY SOURCES

Ministry of Economy, Labour and Entrepreneurship5


www.mingorp.hr monitors implementation and compliance with set targets

for RES and CHP

Environmental Protection and Energy Efficiency Fund

www.fzoeu.hr financing preparation, implementation and development of

programs, projects and similar undertakings in the field of RES and EE

Croatian Energy Regulatory Agency www.hera.hr responsible for granting energy permits and granting the status of eligible producers

Croatian Energy Market Operator www.hrote.hr responsible for the collection and distribution of incentives and concluding contracts

on buy-out of electricity with eligible producers that realised the right to incentives

The System Operator www.hep.hr/ops, www.hep.hr/ods responsible for connecting and taking deliveries of electricity from RES and CHP

Competent authority RES


Director

Energy DepartmentRenewable Energy & Energy

Efficiency DepartmentStrategic Planning and Energy Balance

Department

Energy System

EU and restructu

ring RES EE

Energy Balance,

Review and Market

Common Activities and International Cooperation

BIOFUELS

6

Directorate for Energy and Mining


The The Energy Energy

ActAct

The Regulation on the Minimum

Share of Electricity

Produced from RES and CHP

whose Production is Incentivized

The Tariff System for

the Production

of Electricity from RES and CHP

Pravilnik za stjecanje

statusa PP-a električne energije

The Electricity The Electricity Market ActMarket Act

The Act on The Act on the the

Regulation of Regulation of District District HeatingHeating

Ordinance on the Use of RES and

CHP

The Ordinance

on Privileged Status - H

PSTE

The Regulatio

n on Minimum

Share PSTE

The Regulation on Fees for

Promoting Electricity

Production from RES and CHP

OG 33/07 i OG 67/07

1 July 2007 came in force

The Ordinance on measures to encourage use of biofuels

The Regulation of encouraging biofuel

production

The decision on the amount of

compensation to encourage biofuel

production

RES: Legislative framework

The Act on The Act on Biofuels for Biofuels for TransportTransport


Tariff system for the production of electricity from RES and cogeneration

determine the producer's right to an incentive price payable by the market operator (feed-in tariffs)

tariff elements for cost calculation of electricity from RES and cogeneration plants the type of resource power and other elements of supplied energy means and conditions for application of these elements

based on justified operation costs, maintenance costs, replacement, construction or reconstruction of RES as well as other costs

energy prices for each RES and cogeneration technology set by application of tariff systems

application of tariff systems supervised by CERA

8


Feed-in tarrifs for RES-E

PV <10kW

PV 10kW-30kW

PV >30kW

HPP < 5000 MWh/g

HPP 5000-15000 MWh/g

HPP >15000 MWh/g

WIND POWER

BIOMAS FOREST/AGRO

BIOMAS WOOD PR. IND.

GEOEN

BIOGAS

BIOFUEL

LANDFILL GAS

OTHER RES

0,0 5,0 10,0 15,0 20,0 25,0 30,0 35,0 40,0 45,0

<1MW >1MW PPC

c€/kWh

0,01 kn/kWh charge forLSGU

Limitation PV 1 MW


MARKET MARKET OPERATOROPERATOR

Payment for

energy supplied

from RES

Mechanism for collection Mechanism for collection and and

distribution of incentivesdistribution of incentives

Payment (cash flow))

Privileged producer which

uses RES within the incentive

RES privilegedRES privileged

producers withinproducers within

the incentivethe incentive

systemsystem

CustomeCustomerrss

Retail

Supplier

Payment ofadditional amount for incentive

Possible other other

sources of sources of incentivesincentives

BillingBilling

Payment for energy

supplied RES increased

by incentive

Billing for energy suppliedfrom RES

Billing

energy

supplied

from RES

CERA - Croatian Energy Regulatory

Agency

MONITORING

RES-E: Institutional framework


Ordinance on the use of RES and cogeneration

RES to be used for energy productionconditions and possibilities for their use (type, technology)

includingauthorisation, planning, design and construction of

plantsregistry of RES and cogeneration projectsother issues of importance

Classification of plants/technologies using RES, particular rights and commitments of privileged producer stipulated

REGISTRY of projects and plants for use RES and high efficiency cogeneration and of privileged producers

benefits of RES11


Actual status according to RES

SOLAR POWER PLANTS; 46; 12%

HYDRO POWER PLANTS; 97; 26%

BIOGAS POWER PLANT; 22; 6%

BIOMASS POWER PLANT; 19; 5%

COGENERATION; 12; 3%

WIND POWER PLANT; 180; 47%

GEOTHERMAL POWER

PLANTelektrane; 1; 0%

POWER PLANTS ON LANDFILL GAS AND GAS FROM PLANT FOR WASTE

WATER TREATMENT PLANT; 2; 1%

379 request

http://www.mingorp.hr/UserDocsImages/Tablica_OIEK.xls


Administrative procedure - case

13

Overlap:

4. Project holders,

8. Projects,

12. Request overlaps


14

Registry RES: locations of wind plants (dvelopment)


Registry of projects and plants for use of RES and CHP as excellent tool for sustainable energy

consumer community

consumer community

monitoring reporting

for EU

monitoring reporting

for EU

national authoritiescompaniesinstitucion(scientific,

educational ect.)

national authoritiescompaniesinstitucion(scientific,

educational ect.)

development agencies

spatial planing

development agencies

spatial planing

mediapublic

mediapublic

regional and localself-government

regional and localself-government

business community

business community

REGISTRY OF

RES&CHPE/T/Bfocal point for policy for RES&CHP

REGISTRY OF

RES&CHPE/T/Bfocal point for policy for RES&CHP

15


RESElectricity

EPEE FundGEF/WB HBOR

Local com.other

Subs

idy

- Fin

anci

al S

uppo

rt

Tariff Systemfeed-in tariffs

(guaranteed 10 -12 years )

ECONOMIC INSTRUMENTS FOR RESDEVELOPMENT & INVESTMENT & OPERATING PHASE

Subsidy

Tariff support

RESHeating

Projects

Subsidy

grants, loans, deduction of interest and

payback

State AidSubsidies Direct grants

Manufacturing Companies

equipment: turbines, boilers, solar collectors, power energy wings,...

Charge

Economic instruments for RES EE


Fund’s investments in the EE and RES projects (2004 – February 2009)

No. of projects milion EUR

Improvement of energy efficiency 218 17.63

Utilisation of renewable energy sources 69 10.26

Sustainable building 42 3.39

Cleaner transport 6 0.29

Energy audits and demonstration activities 118 0.50

Educational, research and development studies 68 1.19

Other programs and projects 5 2.94

TOTAL EE and RES PROJECTS 526 36.20


In November 2007, the Government of Croatia adopted: LPG Utilisation Strategy and Program on Croatian Islands (2008-2012)

This supports utilisation of environmentally and energy preferable fuel replacement of fuel oil on Croatian islands

The programme budget of 4.8 million EURFund is partly co-financing project documentation, civil works (UNP

storage connection) and LPG or LPG-Solar energy instalation in the house:

500 households (100 households per year 2008-2012) Grant of 3.800 EUR per project

Promotion of LPG and solar energy utilisation on Croatian islands


Structure of RES targets in 2020

• Directive on the promotion of the use RES 2009/28/EC 23 April 2009

• RES in Croatia was 12.58% in 2005

• 7.27% from hydropower - 5.28% from biomass and 0.03%

Calculation of the share of energy from RES, overall target for Croatia

equals 20.02% of RES in gross final energy consumption in 2020

• This presents 1.9329 mtoe


0

10

20

30

40

50

60

Aus

tria

Bel

giu

m

Bul

gar

ia

Cyp

rus

Cze

ch R

ep.

Den

mar

k

Est

on

ia

Fin

lan

d

Fra

nce

Ger

man

y

Gre

ece

Hun

gar

y

Irel

and

Italy

Latv

ia

Lith

uan

ia

Luxe

mb.

Mal

ta

Net

her

l.

Po

lan

d

Po

rtug

al

Ro

man

ia

Slo

vaki

a

Slo

ven

ia

Sp

ain

Sw

eden

UK

EU

-27

Cro

atia

%

Residual "effort per citizen"

Flat increase 5,5%

2005 share

Structure of RES targets in 2020


Further activities

• Removal of the remaining key barriers within RES autorisation procedures and “repair” the related RES-E sub-laws

• Development and enactment of the secondary legislation and incentives for RES to heating/cooling systems: solar thermal, biomass/pellet boiler, heat pumps

• Analysis and consideration of incorporation into Croatian legal system of the Tariffs for energy storage (within technical assistance from GEF/WB project) as well as special subsidy scheme by EEEP Fund

• Enhancing administrative and institutional capacity in field of EE and RES, in particular in the Ministry

• Development of guarantee of origin and green certificates scheme • Promotion and education, increase of public awareness

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Further activities

• Consideration and application results of the STORIES project especially in the context of the socio economic aspects to the specific location (islands, remote regions)

• support the development of demonstration projects of storage technologies for increasing the penetration of intermittent energy sources (RES) according to case studies:

1. the Island of Mljet – desalination STORIES project 2. The island of Vis – sustainable Solar Hydroelectric Power

Plant (model PV power plant 40.5MW, reservoir 20 hm3, 100 ha, depths 20 m)

3. The Dalmatia region – wind-pumped storage hybrid ystem in power grid

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Further information

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Tel: +385 1 6106713

Fax:+385 1 6109113

E-mail: [email protected]

www.mingorp.hr

Thank you for your attention !

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