RENEWABLE ENERGY SOURCES RENEWABLE ENERGY SOURCES

AND CLIMATE CHANGEAND CLIMATE CHANGE

Environmental Governance ProgrammeEnvironmental Governance ProgrammeUNDP CroatiaUNDP Croatia

InIn shortshort lineslines

Renewables: Renewables: a)a) costly fashion that EU forces us to implementcostly fashion that EU forces us to implement??b)b) best solution for climate change mitigation?best solution for climate change mitigation?

Is emission reduction unnecessary cost that Is emission reduction unnecessary cost that stops development and economy?stops development and economy?

Can it be a chance for development?Can it be a chance for development? What can be learned from success stories?What can be learned from success stories? Can renewables and energy efficiency help to Can renewables and energy efficiency help to

get us out of economical crises?get us out of economical crises?

FactsFacts::If current growth rates for RES continue, 45If current growth rates for RES continue, 45--50% of electricity in EU 50% of electricity in EU

would be renewablewould be renewable in 2020 (EC: Renewable energy snapshots, in 2020 (EC: Renewable energy snapshots, 20102010

))

True or false? True or false?

WeWe are are spendingspending moremore andand moremore money money oon n R&D (research and development) of energy R&D (research and development) of energy sectorsector??

We are spending We are spending mostlymostly on renewables and on renewables and We are spending We are spending mostlymostly on renewables and on renewables and energy efficiency R&Denergy efficiency R&D??

WhereWhere is money is money investedinvested??

Since 1882, alternative energy sources were subsidized against conventional by a ratio of more than 1:8End-use energy efficiency had ratio 1:35 against conventional supply

Installed capacities and costsInstalled capacities and costs

Doubling installed capacity brings 10% lower electricity priceSix times doubled CSP capacity (to 32 GW) would have electricity price competitive with fossil, while PV needs huge new investments for this

IIASA, PWC: 100% renewable electricity until 2050, 2010

CSP CSP concentratedconcentrated solarsolar

powerpower

Can be combined with gas turbine (if no sun available)Can store heat for 15-18 hours in melted salt

Green jobs in renewablesGreen jobs in renewables

Green jobs classificationGreen jobs classification

direct jobs direct jobs (design, construction,(design, construction,operations, maintenance) operations, maintenance)

indirect jobs indirect jobs (in supplier industries)(in supplier industries) indirect jobs indirect jobs (in supplier industries)(in supplier industries) induced jobs induced jobs -- that are supported by the that are supported by the

everydayeveryday consumer spending of those in consumer spending of those in direct and indirect jobs.direct and indirect jobs.

FocusFocus

Where to focus?Where to focus? Can we produce wind generators in Croatia?Can we produce wind generators in Croatia? Are biofuels sustainable?Are biofuels sustainable? Are photovoltaics too expensive?Are photovoltaics too expensive?

Special attention given to Special attention given to technologies that can be technologies that can be Special attention given to Special attention given to technologies that can be technologies that can be produced domesticallyproduced domestically and so foster local employment, and so foster local employment, security of energy supply, environmental impact and security of energy supply, environmental impact and lower import of fossil fuelslower import of fossil fuels

Focus on small scale investmentsFocus on small scale investments,, not big power plantsnot big power plants Focus on technologies for which period of investment Focus on technologies for which period of investment

return is less than 10 years even without incentivesreturn is less than 10 years even without incentives

Selection of priorities Selection of priorities Technology Needs Assessment ReportTechnology Needs Assessment Report (UNDP(UNDP--EkonergEkonerg) )

analysisanalysis performedperformed byby expertsexperts on on thethe cheapestcheapest waysways to to reducereduceGHG GHG (39 (39 measuresmeasures analyzedanalyzed inin total total againstagainst 11 11 criteriacriteria))

I Development benefitsI Development benefits 1. job creation1. job creation 2. capacity building (production, know2. capacity building (production, know--how)how) 3. economic structure change according to Croatia export orientation3. economic structure change according to Croatia export orientation 3. economic structure change according to Croatia export orientation3. economic structure change according to Croatia export orientation 4. agriculture security4. agriculture securityII Implementation potentialII Implementation potential 1. marginal cost1. marginal cost 2. commercial readiness2. commercial readiness 3. technology availability3. technology availability 4. measure applicability4. measure applicabilityIII Contribution to climate change response goalsIII Contribution to climate change response goals 1. GHG emission reduction potential / enhancement of CO2 sinks1. GHG emission reduction potential / enhancement of CO2 sinks 2. indirect effect on the other air pollutants emission reduction2. indirect effect on the other air pollutants emission reduction 3. conservation of energy3. conservation of energy

Top Top priorities priorities for Croatia:for Croatia:

Wind Power PlantsWind Power Plants Biomass in Heating PlantsBiomass in Heating Plants Energy Efficiency in Buildings and ConstructionEnergy Efficiency in Buildings and Construction Biomass in Cogeneration PlantsBiomass in Cogeneration Plants Biomass in Cogeneration PlantsBiomass in Cogeneration Plants Increase in Biodiesel Use (only partly analyzed Increase in Biodiesel Use (only partly analyzed

further due to sustainability concern and further due to sustainability concern and competition with food production)competition with food production)

Solar Thermal EnergySolar Thermal Energy

Solar thermal systemsSolar thermal systems

Need for subidies:-Several counties in continental Croatia have recently started to subsidize 25-40% of equipment subsidize 25-40% of equipment costs-Recently: Zadar, Dubrovako-Neretvanska county-Others should follow!

System that satifies 70% of energy for hot waterSystem that satifies 70% of energy for hot water

Equipment for a familly of four:Equipment for a familly of four: 2 collectors 2 collectors total total 4 4 mm22 Boiler Boiler 200 l200 l

Example Example -- householdshouseholds

Boiler Boiler 200 l200 l PumpsPumps Control and automatisationControl and automatisation OtherOther

Total investment costs Total investment costs ccacca USD USD 5,000 5,000 (( USD USD 4,000 equipment + USD 1,000 work)4,000 equipment + USD 1,000 work)

Investment payback periodInvestment payback period

Saved energy Saved energy 400400--600 USD/year 600 USD/year Investment payback period betweenInvestment payback period between 55--1100 yearsyears, ,

depending on location and usagedepending on location and usage With With 2525--40% subsidizes40% subsidizes, payback period between , payback period between 33--77 With With 2525--40% subsidizes40% subsidizes, payback period between , payback period between 33--77

years years With additional With additional 30% higher electricity price30% higher electricity price, payback , payback

between between 22--55 yearsyears!!

From 2008 level (From 2008 level (14 m14 m22/1000 /1000 citizens) to goal set in citizens) to goal set in Energy Strategy for 2030 (Energy Strategy for 2030 (563 m563 m22/1000 /1000 citizens)citizens)

Total collectors` surface Total collectors` surface 2.5 million m2.5 million m22 (from 15,000)(from 15,000)

Potential for investment until Potential for investment until

20202020

Emission reduction at the end Emission reduction at the end 1.6 million tCO1.6 million tCO22 annuallyannually Creation of Creation of 1,300 new direct jobs and 2,000 indirect 1,300 new direct jobs and 2,000 indirect

jobs jobs and annual turnover and annual turnover USD 120 millionUSD 120 million

EE in buildingsEE in buildings

Physical Planning and Physical Planning and Construction Act (Construction Act (OG OG 76/07) 76/07) transposes Directive transposes Directive 2002/91/EC on the Energy 2002/91/EC on the Energy Performance of Buildings. Performance of Buildings. Performance of Buildings. Performance of Buildings. AllAll new new buildingbuildingss and and thosethosefor sale or lease for sale or lease needneed to have to have a certificate on energy a certificate on energy performanceperformance

Improvments on typical house for familly of four (150 m2)Improvments on typical house for familly of four (150 m2)

Thermal insulation Thermal insulation 10 cm 10 cm Investment Investment USD 10,000.00 USD 10,000.00 ((cca. 50 USD/m2)cca. 50 USD/m2)

Additional thermal roof insulation Additional thermal roof insulation 15 cm15 cm (total 20 cm)(total 20 cm)

EE in buildings EE in buildings -- exampleexample

1818

Additional thermal roof insulation Additional thermal roof insulation 15 cm15 cm (total 20 cm)(total 20 cm)Investment Investment USD 2,500.00 USD 2,500.00 (cca. 30 USD/m2)(cca. 30 USD/m2)

Thermal floor insulation Thermal floor insulation 10 cm10 cmInvestment Investment USD 2,500.00 USD 2,500.00 (cca. 35 USD/m2) (cca. 35 USD/m2)

Change of existing windows with new, efficient Change of existing windows with new, efficient (LOW E)(LOW E)Investment Investment USD 9,000.00USD 9,000.00 for PVC (cca. 300 USD/m2)for PVC (cca. 300 USD/m2)

Total Total investmentinvestment USD USD 24,000.00 (16,300.00 24,000.00 (16,300.00 ) )

Heating Investment (USD) Annual savings

(USD)

Payback period

Gas 24,000.00 1,872.00 13 years

Simple investment payback periodSimple investment payback period

Heating oil 24,000.00 3,980.00 6,1 years

Electrical energy 24,000.00 5,100.00 4,8 years

Potentail for investmentPotentail for investment

1.4 million units 1.4 million units of the existing residences (apartments and of the existing residences (apartments and houses)houses)

With EE With EE measures applied to measures applied to 20% of existing residences 20% of existing residences (280(280,,000) in the next ten years, with average 000) in the next ten years, with average USD USD 1010,,000 000 investment per residenceinvestment per residence

Creation of Creation of 77,,000 new jobs 000 new jobs (3 (3 men/months of construction work men/months of construction work per residence)per residence)

TTotalotal investment cost investment cost of of USD USD 2.8 billion 2.8 billion in 10 years in 10 years would result in would result in same amount saved same amount saved over 10 years!over 10 years!

BiomassBiomass

Special feedSpecial feed--in tariffs for in tariffs for electricity produced from electricity produced from biomass (among highest in biomass (among highest in Europe, 12 years contract)Europe, 12 years contract)

Price of thermal energy is Price of thermal energy is still not definedstill not defined -- obstacle for obstacle for broader introduction of broader introduction of district heating and codistrict heating and co--generation using biomassgeneration using biomass

Biomass heatingBiomass heating

PricePrice

Fuel priceFuel price Wood Wood chipschips (80 USD/t, 35% vl.): 32 USD/MWh(80 USD/t, 35% vl.): 32 USD/MWh Fuel wood (50 USD/mFuel wood (50 USD/m33): ): 50 USD/MWh50 USD/MWh Oil (0.8 USD/l): Oil (0.8 USD/l): 100 USD/MWh100 USD/MWh Gas (5 USD/mGas (5 USD/m33):): 65 USD/MWh65 USD/MWh

Pellets and woodchips offer comfort for users like natural gas

Potential for investmentPotential for investment

Energy Strategy sets the goal for energy utilization of Energy Strategy sets the goal for energy utilization of 7272% of biomass potential until year 2030% of biomass potential until year 2030

EEmission reduction mission reduction in the in the endend 3.23.2 million COmillion CO22 tons tons annualyannualy

Analyses show that it could create Analyses show that it could create 55,,000 direct jobs 000 direct jobs Analyses show that it could create Analyses show that it could create 55,,000 direct jobs 000 direct jobs andand 5555,000 ,000 indirectindirect andand inducedinduced green green jobsjobs

WindWind energyenergy Install1.200 MW wind generators (foreseen by Energy Strategy until Install1.200 MW wind generators (foreseen by Energy Strategy until

2020)2020) Total interest of investors today is almost 6,000 MW (150% of today`s Total interest of investors today is almost 6,000 MW (150% of today`s

installed capacity) installed capacity) With domestic component 75% of the total product:With domestic component 75% of the total product: New 1New 1..200 direct green jobs200 direct green jobs New 1New 1..200 direct green jobs200 direct green jobs At least 1.000 indirect green jobsAt least 1.000 indirect green jobs Annual reduction Annual reduction 1.3 millions tons CO2 emissions1.3 millions tons CO2 emissions

TotalTotal

Thank you for your Thank you for your

attention!attention!

Contact:Contact:

robert.pasicko@undp.orgrobert.pasicko@undp.orgrobert.pasicko@undp.orgrobert.pasicko@undp.org

Report on:Report on:

www.undp.hrwww.undp.hr