Renewable Energy Policy in EU-27

Renewable Energy Policy in EU-27

An overview on the status 2008, the

implementations, development barriers and the

future

Cologne, 26th of May 2009

Frank Schillig

Director International Business Development Bio- & Solar Energy

RES-E policies in EU-27

Renewable Energy – a never ending story

What will you learn today? - content

- Who is Ecofys?

- What is RES-E/-H/-T?

- RES-Targets, -Status, -to-do (Outlook)

…and maybe some more ☺


Who is Ecofys?

• Founded in 1984

• > 1400 employees

• 20 countries

• turnover 2008: > 800 Mio. €


• Invoegen kaart Ecofys met vestigingen

• Aangeven waar wind expertise zit

• Globaal aangeven hoeveel mensen

Office network

Renewable Energy Policy in EU-27

An overview on the status 2008, the

implementations, development barriers and the

future

Cologne, 26th of May 2009

Frank Schillig

Director International Business Development Bio- & Solar Energy


Source: Ecofys based on data IPCC Fourth Assessment Report, Working Group III Report "Mitigation of Climate Change“ 07

Motivation I –

GHG abatement potential and costs

Potential GHG emissions avoided by 2030 for selected electricity

generation mitigation with estimated mitigation potential shares spread

across each cost range (2006 US$/tCO2-eq)

0,0

0,2

0,4

0,6

0,8

1,0

1,2

1,4

1,6

1,8

2,0

OE

CD

EIT

non-O

EC

D

OE

CD

EIT

non-O

EC

D

OE

CD

EIT

non-O

EC

D

OE

CD

EIT

non-O

EC

D

OE

CD

EIT

non-O

EC

D

OE

CD

EIT

non-O

EC

D

OE

CD

EIT

non-O

EC

D

OE

CD

EIT

non-O

EC

D

OE

CD

EIT

non-O

EC

D

Fuelswitch

and plant

efficiency

Nuclear Hydro Wind Bioenergy Geothermal Solar PV

and CSP

CCS +

coal

CCS +

gas

Mit

iga

tio

n p

ote

nti

al;

to

tal

em

iss

ion

s s

ave

d i

n 2

03

0 (

GtC

O2

-

eq

)

World potential

50-100 $/tCO2-eq

20-50 $/tCO2-eq

0-20 $/tCO2-eq

<0 $/tCO2-eq


MotivationII –

RES-E targets & required increase

RES targets and increase required

34.0

%

13.0

%

16.0

%

13.0

%

13.0

%

30.0

%

25.0

%

38.0

%

23.0

%

18.0

%

18.0

%

13.0

%

16.0

%

17.0

%

42.0

%

23.0

%

11.0

%

10.0

%

14.0

%

15.0

%

31.0

%

24.0

%

14.0

%

25.0

%

20.0

%

49.0

%

15.0

%

12.2

%

10.6

%

6.6

% 11.2

%

15.0

%

12.6

%

15.2

%

16.7

%

11.3

%

11.6

%

8.1

% 13.1

%

10.2

%

7.7

% 13.4

%

8.4

%

9.8

%

11.7

%

10.2

%

14.5

%

6.2

%

9.3

% 14.5

%

13.4

%

13.0

%

19.0

%

8.9

%

0%

10%

20%

30%

40%

50%

60%

Austri

aBel

gium

Bulga

riaC

ypru

sC

zech

Rep

.D

enm

ark

Eston

iaFi

nlan

dFr

ance

Ger

man

yG

reec

eH

unga

ryIre

land Ita

lyLa

tvia

Lith

uani

aLu

xem

bour

g

Mal

taN

ethe

rland

sPol

and

Portu

gal

Rom

ania

Slova

k R

ep.

Slove

nia

Spain

Swed

en UK

RES target 2020

RES increase required


Most relevant EU-framework

1. Directive 2003/87/EC (EU-ETS)

• EU-wide trade scheme for GHG (green house gas) emission allowances

• With increasing certificate prices, use of biomass might become economical feasible even without support schemes (e.g. co-firing)

2. RES Roadmap and proposed RES Directive

• Binding 20% RES target for EU in 2020 (10% biofuels) � large increase still needed!

• GoO (Guaranties of origin) trading scheme � harmonization of EU support schemes, but unlikely to be implemented fully

Legal framework


Overall rating legal framework EU 27 and Russia

Results of rating - legal framework

Legend

Positive

Average

Negative

Source: Ecofys

Policy


Policy Mechanisms

• Political

• Legislative

• Fiscal

• Financial

• Administrative

• Technology development

• Information and education


Overview of primary support for RES-E

Tenders

Certificate systems

Quota obligation

SI

Fiscalincentives

Feed-in tariffs

SK PL

CY(LA)

CZ

LT

MT

HU

EE BG

SIRO

BE

UK

ITSE

IEFI

UK

AT

DK FR

DE

ES

PTLU

GR

NL

FR

DK

IT


Best practice in RES-E policy

• Design of support mechanisms crucial to their success.

Important to implement best practice in policy design:

1. Removal of non-financial barriers (administrative, technical);

2. New support schemes should target just new RES-E capacity;

3. Guarantee, but strictly limit the duration of financial support;

4. Include full basket of available RES-E options;

5. Make support technology-specific; and

6. Set incentives to take account of and accelerate future cost reductions.

• The worlds of the feed-in and quota system are showing

signs of converging on these basic principles.

…where has this led to?

(Market overview & insights)


Example: Effectiveness and efficiency

of support for onshore wind

Source: OPTRES, 2007, European Commission (COM(2008)19 final)

• Effectiveness

and

efficiency

witnessed to

be highest in

FIT countries

But

• Less

experience

with Quota

obligations

• Design of

support

mechanism

crucial


Global wind energy capacity, new installation 2008

Canada

1.9 %

Spain

5.9 %

Germany

6.2 %

India

6.7 %

Rest of world

12.2 %

China

23.3 %

USA

30.9 %

Portugal

2.6 %

Italy

3.7 %France

3.5 % Vereinigtes

Königreich

3.1 %

Quelle: Global Wind Energy Council (GWEC):"GLOBAL WIND 2008 REPORT", Stand Frühjahr 2009

Development ofrenewable energy sources in Germany 2008


Worldmarkt photovoltaic, 2008

Spain; 2,511 MW

USA; 342 MW

Italy; 258 MW

Southk Korea;

274 MW

Germany;

1,100 MW

Czech Republic;

51 MW

Portugal; 50 MW

Japan; 230 MW

Belgium; 48 MW

France; 46 MW

New installed photovoltaic

2007: 2,400 MWp

2008: 5,500 MWp

Quelle: European Photovoltaic Industry Association, 24.3.2009


Some country examples…


Attractive RES-E tariffs solid biomass in

EU-27

RES-E tariffs for solid biomass plants in EU-27

0 50 100 150 200 250 300 350

IT

DE

LV

CZ

AT

ES

HU

IE

SK

CY

NL

PL

BG

RES-E tariff [€/MWh]

MIN

MAX

Legal framework


Level of support vs generation cost for

onshore wind

Source: OPTRES, 2007, European Commission (COM(2008)19 final)



3.4 3.4

6.4 6.6

3.74.2

7.0 7.3 7.36.1

0.6

0.5

0.30.3

0.2 0.2

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

2007 (14.0 %) 2008 (14.8 %) 2007 (7.5 %) 2008 (7.7 %) 2007 (7.3 %) 2008 (6.1 %)

electricity * heat ** biogenic fuels

[%

]

Hydropower Wind energy

Biomass Photovoltaics

Solar thermal energy Geothermal energy

*biomass: solid, liquid, gaseous biomass, biogenic share of w aste, landfill and sew age gas; **biomass: solid, liquid; gaseous biomass, biogenic share of w aste;

Deviations in the totals are due to rounding

Source: BMU-KI III 1 according to Working Group on Renew able Energies / Statistics (AGEE-Stat); Version: April 2009; all f igures provisional

2008 (14.8 %) 2008 (6.1 %)2008 (7.7 %)

RES-share in Germany 2007/2008


0

20,000

40,000

60,000

80,000

100,000

120,000

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Ele

ctr

icit

y g

en

era

tio

n [

GW

h]

Hydropower Wind energy Biomass* Photovoltaics

*Solid, liquid, gaseous biomass, biogenic share of w aste, landfill and sew age gas;

StrEG: Act on the Sale of Electricity to the Grid; BauGB: Constuction Code; EEG:Renew able Energy Sources Act;

Electricity from geothermal energy is not presented due to the negligible quantities of electricity produced;


EEG

1 April 2000

EEG

1 August 2004

StrEG

1 January 1991

Amendment to BauGB

November 1997

EEG 2009

ex 1 January 2009

FEC

share

14.8 %


Electricity generation from

renewable energy in Germany I


from renewable energy sources in Germany, 2008

Hydropower

22.9 %

Photovoltaics

4.4 %

Biogenic solid fuels

11.4 %

Biogenic liquid fuels

1.6 %Biogas

7.7 %

Wind energy

44.3 %

Sewage gas

1.2 %Biogenic share

of waste

5.4 % Landfill gas

1.1 %

*Solid, liquid, gaseous biomass, biogenic share of w aste, landfill and sew age gas


Total: 91.4 TWh

Total biomass*: Approx. 29 %


Strcture of electricity supply in DE II


RES-E in Czech Republic 2008

• Preferred grid access; el. distributor obliged to buy

• Feed-in tariffs or green premium + selling on grey market

• Wind

– FIT: 2460 Kc/MWh (~93 €/MWh) for 20 years– premium: 1870 Kc/MWh (~70 €/MWh)

• Solar PV

– FIT: 13460 Kc/MWh (~506 €/MWh) for 20 years– premium: 12650 Kc/MWh (~476 €/MWh)

• biomass combusion plants

– FIT : 2430-4210 Kc/MWh (91-158 €/MWh) and is guaranteed for 20 years.– premium: 1150-2930 Kc/MWh (43-110 €/MWh)

• Biomass co-firing or parallel-firing: only premium

– Green premiums for co-firing: 240 - 1390 Kc/MWh (9-52 €/MWh)– Green premiums for parallel firing: 500 - 1650 Kc/Mh (19-62 €/MWh)


News I - Turkey

• Feed-in law in preparation; implementation

expected for this summer

• Green field PV

– 280 €/MWh for 10 years; 220 €/MWh for following 10 years

• PV on buildings

– Monthly electricity generation up to 3000 kWh: 450 €/MWh

– Up to 6000 kWh: 350 €/MWh


News II – Canada-Ontario

• New feed-in law expected

for this summer

Technology Proposed size tranches €/MWhe

Biomass* Any size 72

Biogas* <5 MW 87

> 5 MW 62

Hydropower* <50 MW 77

Community Based <2 MW 80

Landfill gas* <5MW 66

> 5 MW 61

Solar PV Rooftop <10 kW 476

10 - 100 kW 424

100 - 500 kW 377

> 500 kW 320

Ground Mounted . <10 MW 263

Wind Onshore Any size 80

Offshore Any size 113

Community Based . <10 MW 86

The future


International development:

EU RE-Road Map

• binding targets for 2020:

– 20% RE share (primary energy)

– 20% energy efficiency increase

– 20-30% CO2 reduction• How to reach 20% RE target? Sectoral projections (EREC):

– 35 – 40% RE electricity share

– min 25% RE heat share (!!!)

– min 12% RE fuels share (!)• Energy efficiency complementary (!)


RES-E Projection ...2020

Source: EU DG TREN


The future of policy?

•Harmonisation across EU long-term goal, but premature

today

•Full harmonisation could be based on either feed-in or quota

•Important to first implement best practice in RES-E policy

design and remove barriers

•Optimisation and coordination of policy between Member

States desirable

Thank you for your attention!

More information…

Frank Schillig, [email protected]

Director International Business Development

Solar & Bioenergy


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