SAARC ENERGY CENTRE Knowledge Sharing Workshop “Modern Techniques including Renewable Energy Auctions for Economizing Renewable Energy Tariff” Renewable Energy policies in European Union Learning experience Tommaso Morbiato a a Windcity srl, Rovereto, Italy 1 SAARC Knowledge Sharing Workshop on “Modern Techniques including Renewable Energy Auctions for Economizing Renewable Energy Tariff” 9th-10th May, 2018 | Galadari Hotel, Colombo, Sri Lanka
Transcript
SAARC ENERGY CENTREKnowledge Sharing Workshop “Modern Techniques including Renewable Energy Auctions for Economizing Renewable Energy Tariff”
Renewable Energy policies in European Union Learning experience
Tommaso Morbiatoa
a Windcity srl, Rovereto, Italy
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SAARC Knowledge Sharing Workshop on “Modern Techniques including Renewable Energy Auctions for Economizing Renewable Energy Tariff”
9th-10th May, 2018 | Galadari Hotel, Colombo, Sri Lanka
SAARC ENERGY CENTREKnowledge Sharing Workshop “Modern Techniques including Renewable Energy Auctions for Economizing Renewable Energy Tariff”
Today’s presentation contents:
Evaluation of FIT, quotas, tax incentives, Reverse auctions Optimisation of Financial support schemes Overcoming non-financial barriers Implementing long term strategies Increased focus on RD&D Flexible and robust energy systems Tracking progress towards EU's climate & energytargets: “20-20-20” GHG, RE, EE REmap at 2030
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SAARC ENERGY CENTREKnowledge Sharing Workshop “Modern Techniques including Renewable Energy Auctions for Economizing Renewable Energy Tariff”
EU RE policy instruments
Feed-in tariff (FIT): guaranteed prices for fixedperiods of time for electricity produced from RE sources 87% of solar, 64% of wind capacities installed
Quota, i.e. Renewable Portfolio Standard (RPS), i.e.Renewable Electricity Standard (RES), i.e. RenewableObligation/Certificates (ROC): require electricity retailersto supply min % of demand from RE sources
Tender, i.e. Reverse Auctions: fixed capacity to beinstalled is auctioned to the lower cost
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SAARC ENERGY CENTREKnowledge Sharing Workshop “Modern Techniques including Renewable Energy Auctions for Economizing Renewable Energy Tariff”
EU RE policy instruments classifications
Price driven
Quantitydriven
Investmentenabler
Taxincentive
Reverse Auction
Generation enabler FIT Quota
General aim at: demand creation for REs in themarketplace through internalizing negativeexternalities or reducing market barriers
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SAARC ENERGY CENTREKnowledge Sharing Workshop “Modern Techniques including Renewable Energy Auctions for Economizing Renewable Energy Tariff”
EU RE policy evaluation
Estimation regression model (Kilkinc-Ata, 2016)
Target variable REC: measure of RE capacity (non-hydro) in country i at year t Independent variables: Policy use (0;1) in country i at year t, xcoefficients Explanatory Variables in country i at year t, xcoefficients
Dataset: i= 27 EU countries; t=1990-2008
[ ], , ,,; ; ;i t i t i ti t
REC FIT Q RA TAX err= + +a b EV
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SAARC ENERGY CENTREKnowledge Sharing Workshop “Modern Techniques including Renewable Energy Auctions for Economizing Renewable Energy Tariff”
EU RE policy evaluation
Explanatory variables
Grid & Transmission variables not considered6
SAARC ENERGY CENTREKnowledge Sharing Workshop “Modern Techniques including Renewable Energy Auctions for Economizing Renewable Energy Tariff”
EU RE policy evaluation: Predictive power ofExplanatory Variables REC is statistically affected by Nuclear energysubstitution, not by Thermal (coal, natural gas,petroleum) Electricity consumption has a negative effect onREC Energy security variables effect on REC is unclear:natural gas price not significant,coal price significant
GDP growth not significant on REC (more demand/more production/ more consumption) Greater CO2 emissions not significant to promoteREC - opposite results in literature: NO Kilkinc-Ata, 2016 – EU-27 extensive; YES Smith & Urpelainen, 2014 - regional
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SAARC ENERGY CENTREKnowledge Sharing Workshop “Modern Techniques including Renewable Energy Auctions for Economizing Renewable Energy Tariff”
EU RE policy evaluation
RE policy use
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SAARC ENERGY CENTREKnowledge Sharing Workshop “Modern Techniques including Renewable Energy Auctions for Economizing Renewable Energy Tariff”
EU RE policy evaluation: Policy Variables
REC is statistically affected by the presence of FIT,Reverse Auction and Tax incentive Quota has an insignificant effect on REC (Marques,2010: e.g. effects of simultaneous energy efficiencypolicies on fossil energy source base) RE policies overlapping and interacting (De Jonghe,Grace, Philibert 2011): REC grows faster with policy complementarities REC decreases with policy conflicts
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SAARC ENERGY CENTREKnowledge Sharing Workshop “Modern Techniques including Renewable Energy Auctions for Economizing Renewable Energy Tariff”
Optimisation of the financial support schemes
Financial barriers to the deployment of RE persistonly in less developed RE sources electricity EU markets Due to technological development, economies ofscale & supply-chain efficiencies, more mature RE yetcompete in the market: Statoil (Norway) wind projects yet exited supportschemes in 2018 Denmark phases-out onshore wind since 2014 Sharp cost decline of PV in 2011 in Czech,France, Germany, Italy, Spain, UK soareddeployment rates & profits, causing immediate needfor support adjustment
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SAARC ENERGY CENTREKnowledge Sharing Workshop “Modern Techniques including Renewable Energy Auctions for Economizing Renewable Energy Tariff”
Overcoming non-financial barriers
According to Bellona (Norway), these are the mostimportant challenge for REC Administrative issues, as Extensive applicationprocedures Securing grid access Supply-chain bottlenecks Scarcity of optimal sites & Competition for e.g. Denmark, Germany are financing“repowering” of onshore wind farms Resource quality demands for R&D
Social acceptance
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SAARC ENERGY CENTREKnowledge Sharing Workshop “Modern Techniques including Renewable Energy Auctions for Economizing Renewable Energy Tariff”
Implementing long-term strategies
EU Energy Roadmap 2050 sets 2020, 2030, 2040targets many EU member states have to accelerate thepace for 2020 targets EU countries with greater attainment of 2020targets (Denmark, Germany, UK) have all presentedconcrete strategies stretching until 2050 Clear connection between lack of long-termstrategies and failure to attain shorter term targets
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SAARC ENERGY CENTREKnowledge Sharing Workshop “Modern Techniques including Renewable Energy Auctions for Economizing Renewable Energy Tariff”
Increased focus on Research, Development & Demonstration (RD&D)
on average, in the 1975-2009 period only a 9,6%of the RD&D budget of IEA member countries hasbeen dedicated to RE, compared to nuclear and fossilfuels public funding mainly supports implementationschemes of mature technologies (solar, wind, bio) strong need remain for development of non-mature RE technologies (wave, tidal, i.e.hydrokinetic), invaluable in the long run towards adecarbonized energy
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SAARC ENERGY CENTREKnowledge Sharing Workshop “Modern Techniques including Renewable Energy Auctions for Economizing Renewable Energy Tariff”
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SAARC ENERGY CENTREKnowledge Sharing Workshop “Modern Techniques including Renewable Energy Auctions for Economizing Renewable Energy Tariff” 15
SAARC ENERGY CENTREKnowledge Sharing Workshop “Modern Techniques including Renewable Energy Auctions for Economizing Renewable Energy Tariff”
Flexible and robust energy systems
according to national RE Action Plans of the EU-27countries, >50% of the electricity generation will havefluctuating production by 2020 in parallel, electricity networks shall undergotechnological innovation, increased integration, andlarge-scale development new systemic services become necessary: Demand/response schemes: peak shaving, loadcontrolling, inter-grid schemes (LV-MV) are 2018open innovation cases in companies such as ABB Energy storage: reservoir/pumped hydro,synthetic natural gas (SNG), hydrogen systems,battery technologies, compressed-air (CAES)
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SAARC ENERGY CENTREKnowledge Sharing Workshop “Modern Techniques including Renewable Energy Auctions for Economizing Renewable Energy Tariff”
EU progress towards 2020 climate and energy targets: “20-20-20”
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SAARC ENERGY CENTREKnowledge Sharing Workshop “Modern Techniques including Renewable Energy Auctions for Economizing Renewable Energy Tariff”
Progress in EU towards renewable energy targets
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SAARC ENERGY CENTREKnowledge Sharing Workshop “Modern Techniques including Renewable Energy Auctions for Economizing Renewable Energy Tariff”
Primary production of energy from renewablesources in EU
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SAARC ENERGY CENTREKnowledge Sharing Workshop “Modern Techniques including Renewable Energy Auctions for Economizing Renewable Energy Tariff”
Primary energy consumption from all sources in EU
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Shares of energy use from RE by sector in the EU
SAARC ENERGY CENTREKnowledge Sharing Workshop “Modern Techniques including Renewable Energy Auctions for Economizing Renewable Energy Tariff”
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Trends and Projections in countries sharingenvironmental committments with EU
total GHG emissions trends and projections
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EU Energy Roadmap to 2050
SAARC ENERGY CENTREKnowledge Sharing Workshop “Modern Techniques including Renewable Energy Auctions for Economizing Renewable Energy Tariff”
Projections at 2030 (Remap Analysis 2018)
• The EU could double the renewable share in its energymix, cost effectively, from 17% in 2015 to 34% in 2030.• All EU countries have cost-effective potential to use morerenewables.• Renewables are vital for long-term decarbonisation of theEU energy system.• The European electricity sector can accommodate largeshares of solar PV and wind power generation.• Heating and cooling solutions account for more than onethird of the EU’s untapped renewable energy potential.• All renewable transport options are needed to realiselong-term EU decarbonisation objectives.• Provided sustainability concerns are addressed, Biomass will remain a key renewable energy source in 2030 and beyond.
