the role of institutional structure for disseminating ee and res: a comparative analysis between...

The role of institutional structure The role of institutional structure for disseminating EE and RES: a for disseminating EE and RES: a comparative analysis between comparative analysis between Brazil and GermanyBrazil and Germany

Dr. Conrado A. Melo

15/10/2013

Presentation contentPresentation content

1. Introduction

2. Energy contexts

3. RES/EE governance1. Legal framework

2. Policy instruments2. Policy instruments

3. Strategies and action plans

4. Institutions

4. Interviews

5. Conclusions

BackgroundBackground

� Criticism to the Brazilian EE/RES governance

◦ Weak institutional support and capacity to manage EE and NC RES activities

� Empirical studies have shown that there is a high � Empirical studies have shown that there is a high correlation between institutional quality and environmental quality

◦ spillover effects of institutions are determinants for a more sustainable development

Why to study the German case?Why to study the German case?

� RES: 12% (32 GW) of global wind energy installed capacity and 26% (33GW) of global PV installed capacity

� EE: one of the most energy efficient � EE: one of the most energy efficient industrialized countries

� Strong institutional structure devoted to the development of EE and RES activities

ObjectiveObjective

� Evaluate the German institutional structure related to the promotion of EE and RES with focus on the identification of necessary elements for improving the of necessary elements for improving the EE and RES governance in Brazil


1. Introduction

2. Energy contexts




4. Institutions

4. Interviews

5. Conclusions

EnergyEnergy indicatorsindicators......

Figure 1 - Brazil and Germany: annual historical

series (1971-2010) of population and primary

energy per capitaSource: own elaboration based

on IEA, 2012

Figure 2 - Brazil and Germany: annual historical series (1971-

2010) of primary energy supply and energy intensity

Source: own elaboration based on IEA, 2012

Table 1 - Energy reserves and consumption Brazil and Germany: 2002 x 2012

CarbonCarbon dioxidedioxide emissionsemissions

ElectricityElectricity productionproduction andandconsumptionconsumption byby sectorsector

Figure 3 - Source of power electricity supply in the year 2011

Figure 4 - Brazil and Germany: % sectorial energy consumption in the year 2012

Global horizontal solar radiationGlobal horizontal solar radiationBrazil

Area 8.514.877 km²

(23 times larger)

1640 – 2380 (KWh/m2/year)

Germany

Area 357.021 km²

1100 -1350(KWh/m2/year)


1. Introduction

2. Energy contexts




4. Institutions

4. Interviews

5. Conclusions

6. Recommendations

GermanyGermany: : Legal frameworks Legal frameworks -- RESRES

� 1991 - Electricity Feed-in Act (StrEG)

� 2000 - Renewbles energy source Act (EEG) -Revisions (2004, 2009 and 2012)

� 2008 - Act on the Promotion of Combined Heat & Power& Power

� 2009 - Act on the Promotion of RES in the Heating Sector

� 2011 - Grid Expansion Acceleration Act for Transmission Networks (NABEG)

BrazilBrazil: : Legal frameworks Legal frameworks -- RESRES

� 2002: Law 10.438 -PROINFA (Program for Alternative Electric Generation Sources (wind, small-scale hydro (PCHs) and biomass energy)

� 2007: Law 11.488 – discount in transmissions anddistribution tariffs for solar, wind, biomass andcogeneration (heat and power)distribution tariffs for solar, wind, biomass andcogeneration (heat and power)

� 2012: Normative resolution 482/ANEEL Establishes the conditions for access to distribution systems by distributed microgeneration and minigeneration and the compensation rules (it is a kind of net metering model)

GermanyGermany: : Legal frameworks Legal frameworks -- EEEE

� 1976: Energy Saving Act (EnEG) –Followed by many ordinances, examples:

◦ 1981: Heating Costs Ordinance (Amendments: 1984, 1989 and 2008)(Amendments: 1984, 1989 and 2008)

◦ 2002: Energy Saving Ordinance (Revisions 2007 and 2009)

� 2010 - Law on energy services and other energy efficiency measures (EDL-G)

BrazilBrazil: : Legal frameworks Legal frameworks -- EEEE

� 2000: Law 9,991 - Established that the electricity utilities must apply a minimum percentage of revenues in R&D and energy efficiencyenergy efficiency

� 2001: Law 10,295 - Energy Efficiency Act Mandatory Standards for Appliances


1. Introduction

2. Energy contexts




4. Institutions

4. Interviews

5. Conclusions

PolicyPolicy instrumentsinstruments Germany

Brazil

PolicyPolicy instrumentsinstruments

Brazil

Germany

PolicyPolicy instrumentsinstrumentsGermany

Brazil


1. Introduction

2. Energy contexts




4. Institutions

4. Interviews

5. Conclusions

Germany: strategies and action plansGermany: strategies and action plans

� 2007 and 2011: National Energy Efficiency Action Plan (NEEAP)

� 2009: National Biomass Action Plan

� 2010: National Action Plan for Renewable EnergyEnergy

� 2010: Energy Concept 2050

� 2011: Adaptation Action Plan of the German Strategy for Adaptation to Climate Change

Germany: targetsGermany: targets

Table 3 - Targets according to the German Energy Concept

Year Renewable Energies

Target Energy efficiency Target

Transportation

sector

Climate

target

Share

electricity

Share

total

Primary

energy

(versus

Electricity

consumption Energy

productivity

Energy

consumption

reduction

GHG

(versus

Ambitious targets: RES, EE, transportation sector and GHG emissions reduction

electricity total (versus

2008)

consumption

(versus 2008) productivity reduction

(versus

1990)

2020 35% 18% -20% -10%

Increase by

2.1% per year

10% -40%

2030 50% 30% 6 million electric

vehicles -55%

2040 65% 45% -70%

2050 80% 60% -50% -25% 40% -80-95%

Source: OECD, 2012 based on BMU, 2011

NEEAP 2011: SummaryNEEAP 2011: Summary

Provide a statutory basis for strategy development

Identify actions and assign responsibility

Provide for results monitoring, updating and revisions

Brazil: strategies and action plansBrazil: strategies and action plans

� 2008: National Climate Change Plan (PNMC)

� 2011: National Energy Efficiency Plan (PNEE)

� 2012: National Transportation and Logistics Plan (PNLT)Plan (PNLT)

� 2012: Decennial Energy Expansion Plan -2021

Brazil: Brazil: Plans shortcomingsPlans shortcomings

� Identify actions and assign responsibility

� Link EE/RES strategies to the broader policy context

� Reinforce strategy through action and � Reinforce strategy through action and economic planning

� Establish accountability and evaluation


1. Introduction

2. Energy contexts




4. Institutions

4. Interviews

5. Conclusions

GermanyGermany: RES/EE : RES/EE InstitutionsInstitutionsNationalNational levellevel

• One directorate specific to deal with “Energiewende”

• Policy implementation monitoring

• Energy technologies

• EE

denadena –– German Energy AgencyGerman Energy Agency

� dena’s aims◦ Improvement in the rational use of energy◦ Development of renewable energy sources◦ Increase in innovative technologies for the

rational conversion of energy◦ Creation EE/RES markets◦ Creation EE/RES markets◦ Optimization of energy systems

� dena’s customers◦ Specialists (e.g. commerce, industry and trade)◦ Politicians◦ The end consumer

denadena –– German Energy AgencyGerman Energy Agency

GermanyGermany: : EnergyEnergy andand ClimateClimate ProtectionProtectionAgencies Agencies

Number Energy agency

1 Baltic Energy Forum eV

2 Energieagentur Regio Freiburg GmbH

3 Energieagentur Oberfranken

4 Energieagentur im Landkreis Kassel

5 hessenENERGIE - Gesellschaft für rationelle Energienutzung mbH

6 Klimaschutz- und Energieagentur Baden-Württemberg GmbH

7 Klimaschutz- und Energie-Beratungsagentur Heidelberg-Nachbargemeinden gGmbH

8 ZukunftsAgentur Brandenburg GmbH

9 Berliner Energieagentur GmbH

10 EnergieAgentur Nordrhein-Westfalen

11 Klimaschutzagentur Wiesbaden e.V.

12 Windenergie-Agentur Bremerhaven/Bremen e.V.

13 Energie- & Umweltzentrum Allgäu

Number Energy agency

1 Energieagentur Zollernalb gGmbH

2 Energieagentur Ravensburg gGmbH

3 Umwelt- und Energieagentur Kreis Karlsruhe

4 Energieagentur Main-Tauber-Kreis GmbH

5 Energieagentur des Neckar-Odenwald-Kreises GmbH

6 Energieagentur Landkreis Tuttlingen gGmbH

7 Leipzig Energy Agency - Stadtwerke Leipzig GmbH

8 Stadtwerke Greifswald GmbH

9 Energie-Beratungs-Zentrum Stuttgart e.V.

10 Energiemanagement-Agentur Elbtalaue-Prignitz-Wendland

11 Klimaschutzagentur Mannheim gGmbH

12 Energieagentur Kreis Böblingen gGmbH

13 Energieagentur Rems-Murr gGmbH

Regional level Local level

13 Energie- & Umweltzentrum Allgäu

14 Klimaschutz- und Energieagentur Mittelhessen

15 Klimaschutzagentur Region Hannover gGmbH

16 Energieagentur Sachsen-Anhalt GmbH

17 Transferstelle für Rationelle und Regenerative Energienutzung Bingen

18 Thüringer EnergieAgentur e.V.

19 Energieagentur Unterfranken e.V.

20 Sächsische Energieagentur GmbH

21 Ortenauer Energieagentur GmbH

22 Regionale Energieagentur Ulm gGmbH

23 REAR - Energieagentur Regensburg

24 Bremer Energie-Konsens GmbH

25 EnergieEffizienzAgentur Rhein-Neckar gGmbH

26 Energieagentur Rheinland-Pfalz GmbH

27 Energieagentur Bergstraße

28 Kompetenzzentrum Erneuerbare Energien Rheingau-Taunus e. V.

29 Energieagentur Hohenlohekreis GmbH

30 Gemeinschaft der Energieberater im Landkreis Calw e.V.

31 Energieagentur Kreis Konstanz GmbH

32 Energieagentur in Horb

33 Energieagentur Schwarzwald-Hochrhein

34 Energieagentur Mittelbaden gGmbH

13 Energieagentur Rems-Murr gGmbH

14 Ludwigsburger Energieagentur e.V.

15 Agentur für Klimaschutz Kreis Tübingen gGmbH

16 Energieagentur Sigmaringen – Niederlassung der EA Ravensburg gGmbH

17 Energieagentur Landkreis Esslingen gGmbH

18 KlimaschutzAgentur Reutlingen gGmbH

19 Energieagentur Landkreis Göppingen gGmbH

20 Energiekompetenz Ostalb e.V.

21 Energieagentur Landkreis Schwäbisch Hall

22 Energie- und Bauberatungszentrum Pforzheim / Enzkreis gemeinnützige GmbH

23 Karlsruher Energie- und Klimaschutzagentur gGmbH

24 Energieagentur Schwarzwald-Baar-Kreis GbR – Niederlassung der EA Tuttlingen

25 Energieagentur Landkreis Rottweil GbR

26 Energieagentur Bodenseekreis - Niederlassung der EA Ravensburg gGmbH

27 Energieagentur Biberach - Niederlassung der EA Ravensburg gGmbH

28 Energieagentur Region Trier

29 Energiereferat Stadt Frankfurt am Main

30 Stadtwerke Unna GmbH

31 Agentur für Klimaschutz Kreis Tübingen gemeinnützige GmbH

32 Beratungs- und Service-Gesellschaft Umwelt mbH

33 Forseo GmbH

34 Stadtwerke Leipzig GmbH

35 Bonner Energie Agentur e.V.

GermanyGermany: : EAsEAs typestypes andand activitiesactivities

� Information oriented agencies(IEAs) ◦ Information and motivation services for municipalities,

governments and enterprises on EE/RES◦ Public awareness and image campaigns◦ Initial and branch consultations by way of rough and

detailed analyses,detailed analyses,◦ Networking and support for promoting energy

technologies and promotion of innovative technologies

◦ Conception and processing of subsidy and support programmes

◦ Consulting and support for regional or federal energy governments,

◦ Evaluation of energy policy measures

GermanyGermany: : EAsEAs typestypes andand activitiesactivities

� Entrepreneurial oriented agencies (EEAs)

◦ sell consulting services

◦ ESCO activities, including development, planning, realization, financing and operation of decentralized heating and power units for planning, realization, financing and operation of decentralized heating and power units for building supply

◦ development of energy service products

GermanyGermany: : otherother relatedrelated institutionsinstitutions

Additionally, Germany has:

- about 500 ESCOs

- more than 800 energy retail companies (multinational

and their subsidiaries, regional and cooperative energy

companies) that offer different kinds EE services

- about 3,200 energy consultant offices organized in- about 3,200 energy consultant offices organized in

associations

- several manufacturers of EE and RES technologies

- close to 1,000,000 installers of different crafts offering

different kinds of EE and RES services

- architects and planners who deliver partial services

connected to EE and RES

(Wuppertal Institute, 2006)

BrazilBrazil: : InstitutionsInstitutions

•Strong influence of energy companies in the process of decision making• EE programs performed by energy companies that not necessarily have interest in EE• Positive appraisals of many projects evaporate after completion due the lack of continuity and changes in energy policies• Lack institutional capacity to deal with EE and NC RES issues


1. Introduction

2. Energy contexts




4. Institutions

4. Interviews

5. Conclusions

InterviewsInterviews

� Energy Distribution Utilitiy - AVU network GMbH◦ Thorsten Coß, CEO

� Energy Agency - EnergieAgentur - NRW ◦ Ignacio Bedoya, Energy Engineers GmbH

� University◦ Prof. Dr.-Ing. H.-J. Wagner - Energy Systems and Energy Industry

Ruhr Bochum UniversityRuhr Bochum University

◦ Prof. Dr.-Ing. Sourkounis Constantinos - Power Systems Technology And Power Mechatronics - Ruhr Bochum University

� Regulatory Agency - Federal Network Agency (BNetzA) ◦ Dr. Annegret Groebel - Head of Department International

Relations / Postal Regulation

◦ Daniel Muether - International Coordination Energy Regulation

Interviews: Interviews: highlightshighlights

� Reasons for German EE/RES success:◦ “Feed-in tariff”

◦ “Local banks - focus on promoting local business including EE and RES projects”

◦ “High investments in R,D&I – public research ◦ “High investments in R,D&I – public research money and the creation of energy institutes”

◦ Utilities - “legal requirement topromote EE/RES”

◦ “the profit of energy sales gets smaller and it induces the development of new business models -energy consultancy, contracting etc– utilities are acting as ESCOs”


� EE -challenges

◦ Industry - “forget energy, lets save materials - other investments are more attractive than EE due the low electricity costs”

◦ Buildings - “cost to retrofit old buildings is too high ◦ Buildings - “cost to retrofit old buildings is too high with the payback is around 20 years” - “energy and gas are too cheap”

◦ Human behavior “German people prefer to invest in a new big car than in insulation, house retrofits, etc.”


� Photovoltaic energy challenges◦ “small is beautiful, sometimes big is better” – large solar

power plants produce cheaper electricity than solar panels in roofs

◦ “PV still a expensive source of energy” – “most part of charges in tariffs to support RES is driven to PV” – “poor people can’t afford these tariff increases”people can’t afford these tariff increases”

◦ “energy storage is too expensive”

� Wind energy challenges◦ Cheaper production of equipments, reduce costs of

maintenance, improve the quality of components ◦ Large-scale grid reinforcement and expansion necessary to

transport electricity to load centers in the South◦ “not in my backyard” and “environmental issues, etc.”


� Institutions◦ How is the interplay between EAs and utilities/industries?

“Wonderful – they are supported by government, then they provide low cost consulting services, technical solutions and indicates the better way to get subsidies and money for investments”

◦ Bring people together (industry, energy experts and researchers)

◦ “Advantages: Neutrality, independence from market influences, ◦ “Advantages: Neutrality, independence from market influences, no need to generate own income.

◦ “Disadvantages: Dependence on political decision. Government changes every 5 years and order of the priorities can also change.”

◦ “The aim is to accelerate the innovation processes and optimize the introduction of innovative products and services into the market.”


1. Introduction

2. Energy contexts




4. Institutions

4. Interviews

5. Conclusions

Conclusions: GermanyConclusions: Germany

� Decentralization of energy production with application of RES is one of keys elements of the German “Energiewende”.

� A combination of a strong legal framework, funding mechanisms and other policy instruments, which have included the people in the “energy game”, has have included the people in the “energy game”, has shown a successful strategy for the development of RES markets and for the creation of “green jobs”

� However, the “power from the people” means new challenges: mainly issues related to the design of a new market model for a highly distributed power generation and capacity markets

Conclusions: GermanyConclusions: Germany

� Germany has a dynamic system of governance and seems to be prepared to answer and give solutions for the new environmental, economic and energy issues.

� Devoted EE/RES institutions have certainly had a fundamental role in the German success:

� Devoted EE/RES institutions have certainly had a fundamental role in the German success:◦ They increase the awareness of the potential benefits

of EE and RES solutions

◦ They accelerate the diffusion of EE/RES solutions and the creation of new markets

◦ They have contributed to the development of German policies and its evaluation,

Conclusions: BrazilConclusions: Brazil

� Brazil has a passive policy related to development of NC RES. In the case of wind energy, due the reduction of the technology prices, the market is increasing, despite the lack of planning. For instance, at this moment Brazil has 19 wind power plants not operating due the lack of grid

� In the case of photovoltaic energy, due the natural advantage of solar radiation the country certainly will see an increase of PV power generation. However, probably it will happen just in the case of large power PV plants. The absence of additional support (funding, information, training, consulting services) make it difficult for the development of the “power from the people in Brazil”


� Brazil certainly need to improve its capacity of governance related to EE and NC RES. Its old governance structure has not been enough to learn, to adapt and to provide solutions for capturing benefits related to EE and NC RES developments. related to EE and NC RES developments.

� Additionally, Brazil need to create more Know how around these new energy markets and increase the transparence in the process of taking decisions.


� An devoted institution, for instance, an EE/RES Energy Agency in Brazil would be fundamental for:

◦ Create a database about Brazilian stakeholders and EE and RES projects and stakeholders and EE and RES projects and other information.

◦ Bring people together (researches, industry, ESCOs, customers, utilities) and accelerate the dissemination of EE and NC RES

◦ Support the design, the implementation and evaluation EE and NC RES policy instruments


◦ Increase the awareness about distributed solar photovoltaic energy, once the country has adopted just a kind of compensation system without any other mechanism to support a more distributed energy supplysupport a more distributed energy supply

◦ Manage government programs such as PROCEL and CONPET

◦ Provide information, education and training about EE and RES solutions for Industry, buildings, etc..

AcknowledgmentsAcknowledgments

� First I would like to thank professor Pieolow and mention that was a veryintersting

Thank you for yourattention….

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