the renewables eu directive

May 08

Fernando Nuño

European Copper Institute

[email protected]

Analysis of EU Directive proposal on the promotion of the use of energy from renewable sourcesI - Focus on RE use

www.leonardo-energy.org

OBJECTIVES of the Directive

Economic growth, competitiveness, regional and rural development

▼ CO2▼ CO2

▲ Sustainable Development

▲ Sustainable Development

▲ Security Of Supply

▲ Security Of Supply

▲ Knowledge based Industry

▲ Knowledge based Industry

Climate change mitigation, compliance with international commitments (Kyoto and upcoming)

Energy imports threatens SoS, implies higher prices. Energy efficiency and renewable energy have wide benefits

RE sources: indigenous, do not rely on the future availability of conventional sources of energy, decentralised, less vulnerable to volatile energy supply


TARGETS and APPLICATION FIELDS

20% share of RE sources in final energy consumption*

20% share of RE sources in final energy consumption*

10% share of biofuels10% share of biofuels

ELECTRICITY*

HEATING & COOLING*

TRANSPORT

* Final energy consumption is calculated as the sum of electricity, heating & cooling and transport (beyond 10% biofuels share)


0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

SwedenLatvia

FinlandAustria

PortugalDenmark

EstoniaSloveniaRomania

FranceLithuania

SpainGermany

GreeceItaly

BulgariaIrelandPoland

United KingdomNetherlands

Slovak RepublicBelgium

Czech RepublicCyprus

HungaryLuxembourg

Malta

2005

2020

Target SHARE among Member States

Equal increase in each Member State's share weighted by their Gross Domestic Product

Equal increase in each Member State's share weighted by their Gross Domestic Product

Starting point : 2005Starting point : 2005

20%

10% share of BIOFUELS : same

level for each Member State

10% share of BIOFUELS : same

level for each Member State

RENEWABLE ENERGYRENEWABLE ENERGY

8.5%


Consistency with previous and current REGULATIONS

Need to bring the next generation of RE technologies to market competitiveness

Directive 2001/77/ECDirective 2001/77/EC

Directive 2003/30/ECDirective 2003/30/EC

Greenhouse gas regulations

Greenhouse gas regulations

European Strategic Energy Technology

Plan

European Strategic Energy Technology

Plan

Target : 21% of electricity produced from RE sources by 2010 (expected 19% achievement)

Update of national greenhouse gas emissions targets Directive to improve EU emissions trading system

Target : 5.75% share of biofuels in transport by end 2010 (expected 4.2 achievement)

Directive 2002/91/ECDirective 2002/91/EC Energy performance of buildings

Targets and reporting should remain into force until end of 2011.

Provisions that overlap with the new Directive should be deleted


NATIONAL ACTION PLANS

Each Member State shall adopt a

NATIONAL ACTION PLAN

Each Member State shall adopt a

NATIONAL ACTION PLAN

31 March 2010Member States notify

their NAP to the Commission

31 March 2010Member States notify

their NAP to the Commission

Indicative TrajectoryIf fallen below, shall submit a new NAP

Indicative TrajectoryIf fallen below, shall submit a new NAP

25% 25%

35% 35%

45% 45%

65% 65%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Indicative Trajectory

2020 Target


ACCOUNTING for RE share in final consumption

No Pumped Storage Multi-fuel plants : only the part produced from RE Hydropower : [average productivity over the last 15 years] x

[installed capacity on the accounting year]

No passive energy systems Heat pumps using energy:

– From ground / water– Air : compliant with Eco-labelling

If produced in 3rd countries:– Consumed in the Community– Installation operational after entry into force of Directive

– Electricity issued with EU compliant Guarantee of Origin


Each Member State designates aSingle Competent Body

Each Member State designates aSingle Competent Body

NATIONALREGISTER

NATIONALREGISTER

GUARANTEES OF ORIGIN

Heating & Cooling : Plant capacity > 5 MWth Heating & Cooling : Plant capacity > 5 MWth

Relate to the RE generated in a given calendar year.GoO are issued, at the latest, three months after the end of that year

Relate to the RE generated in a given calendar year.GoO are issued, at the latest, three months after the end of that year

Issued on response to a request from a producer of RE

Issued on response to a request from a producer of RE

Issues, records transfers and cancels GoO

Issues, records transfers and cancels GoO

Electricity Heating & Cooling

Energy Source Hydro

Identity Arlanza MHPLocation E-09346Type Mini-hydroCapacity 600 kWOperational from 10/10/2009

Issued on: 01/02/2011Issued in: SpainUnique Id Number E-2010-MH-54213

Investment aid :

TypeIDAE(national)

Junta CyL(regional)

Amount 10 k€ 5 k€

1 MWh1 MWh

Issu

ed, t

rans

ferre

d an

d ca

ncel

led

elec

troni

cally

Issu

ed, t

rans

ferre

d an

d ca

ncel

led

elec

troni

cally


SCHEMES for national PROMOTION of RE

SUPPORTprogram

SUPPORTprogram

OBLIGATIONto Power Producers and H&C Producers

OBLIGATIONto Power Producers and H&C Producers

OBLIGATIONto Energy Suppliers or to Energy Consumers

OBLIGATIONto Energy Suppliers or to Energy Consumers

Feed-in Tariffs (guaranteed xx €/MWh produced during yy years)

Power and H&C Producers have to justify xx% generation from RE sources

Either they build their own RE plants, or they buy the required amount of Guarantees of Origin

Calls for tenders

Premium payments (additional payment to market price, guaranteed during yy years)

Tax Reductions

Energy Suppliers or Energy consumers have to prove xx% of RE origin in its final energy consumption (through Guarantees of Origin)


Single Competent BodySingle Competent Body

NATIONALREGISTER

NATIONALREGISTER

Mechanics of Guarantees Of Origin : 1 - ISSUING

GoGGoG

RE installation having produced 1 MWh in a given calendar year

RE installation having produced 1 MWh in a given calendar year

RE Producer requests his GoO

RE Producer requests his GoO

GoO is issued and registered in National Register for further use (either cancellation or transfer)

GoO is issued and registered in National Register for further use (either cancellation or transfer)



NATIONALREGISTER

NATIONALREGISTER

Mechanics of Guarantees Of Origin : 2 – a CANCELLING under a SUPPORT PROGRAM

RE Producer submits his issued GoO

RE Producer submits his issued GoO

GoO issued and registered in National Register related to a

single producer


single producer

Competent Body in charge of registering RE

production related to SUPPORT PROGRAM

Competent Body in charge of registering RE

production related to SUPPORT PROGRAM

RE Producer gets the support aid (feed-in tariff, premium payment…)

RE Producer gets the support aid (feed-in tariff, premium payment…)

GoO is cancelled from National Register where initially issued and submitted to the Support Program

Competent Body

GoO is cancelled from National Register where initially issued and submitted to the Support Program

Competent Body

The number of cancelled GoO will be used for accounting the RE share of the Member State

GoGGoGGoG



NATIONALREGISTER

NATIONALREGISTER

Mechanics of Guarantees Of Origin : 2 – b CANCELLING under an OBLIGATION SCHEME

RE Producer sells his issued GoO

RE Producer sells his issued GoO


single producer


single producer

Competent Body in charge of registering production to comply with OBLIGATION

SCHEME

Competent Body in charge of registering production to comply with OBLIGATION

SCHEME

Producer 2 complies with his obligation

Producer 2 complies with his obligation

GoO is cancelled from National Register where initially issued and

submitted to the Obligation Scheme Competent Body

GoO is cancelled from National Register where initially issued and

submitted to the Obligation Scheme Competent Body

Producer 2 having to comply with xx% of RE share, buys the

GoO to RE producer

Producer 2 having to comply with xx% of RE share, buys the

GoO to RE producer

€€€

Mechanism would be similar for Energy Suppliers or Energy

Consumers subject to OBLIGATION

GoGGoGGoG


Mechanics of Guarantees Of Origin : 3 – TRANSFERING between Member States

25% 25%

35% 35%

45% 45%

65% 65%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Indicative Trajectory

2020 Target

If RE share exceeds the indicative trajectory, GoO can

be transferred to another Member State

If RE share exceeds the indicative trajectory, GoO can

be transferred to another Member State

EX-POSTMechanism

EX-POSTMechanism

EX-ANTEMechanism

EX-ANTEMechanism

Member States may provide for a system of PRIOR

AUTHORISATION for the transfer of GoO to or from persons in other Member

States

Member States may provide for a system of PRIOR

AUTHORISATION for the transfer of GoO to or from persons in other Member

States

Has to be justifiedHas to be justified

Energy Installations have to be operational after the date

of entry of Directive

GoO transfers can be accompanied by physical

energy transfer or not

The Commission will carry out an assessment of the implementation,

costs and benefits by Dec 2014

Any intention has to be notified to the Commission, which will

publish that information

Any intention has to be notified to the Commission, which will

publish that information


Administrative Procedures, Regulations and Codes (I)

PROCEDURES Authorisation, Certification

and Licensing

PROCEDURES Authorisation, Certification

and LicensingTECHNICAL

SPECIFICATIONS

TECHNICAL SPECIFICATIONS

BUILDINGregulations

BUILDINGregulations

Guidelines for National, Regional and Local coordination

Responsibilities clearly defined

Rules objective, transparent and non-discriminatory

Lighter process for smaller projects

Precise deadlines for planning approval

Administrative charges transparent and cost-related

Shall require the use of minimum levels of RE

Exemptions : low energy buildings and local limitations

Promotion of equipment that achieve significant reduction of energy consumption

Regulated conversion efficiencies : 70% to 85% for biomass, 35% for solar energy, eco-labelling 2007/742/EC

To benefit from support schemes, equipments and systems have to comply with.

Related as much as possible to existing European Standards (eco-label, energy label…)


Administrative Procedures, Regulations and Codes (II)

Commission Suggestion

Commission Suggestion

Member States will carry out detailed reporting to the Commission Commission asks to Member States whether they intend to :

– Establish a single administrative body responsible for processing authorisation, certification and licensing– Provide for automatic approval of planning and permit application where the authorising body has not responded within the time limits– Indicate geographical location suitable for exploitation from RE and for the establishment of district heating and cooling


ACCESS to Electricity Grid

Infrastructure Development

Infrastructure Development

Member States shall take the necessary steps to develop grid infrastructure

Including interconnections between Member States

Priority Access to the Grid

Priority Access to the Grid

Provide physical access Priority in dispatching generation

Assuming Grid development costs

Assuming Grid development costs

TSO and DSO will publish standard rules relating to the bearing and sharing the costs of grid connections and reinforcements Rules objective, transparent and non-discriminatory :

– Taking into account initial and subsequent benefits derived from new connections– Taking into account producers located in peripheral regions– May provide for different types of connection

Consistency with T&D fees

Consistency with T&D fees

RE should not be discriminated when charged for T&D (especially in peripheral regions)

Fees are to be cost and benefit reflective


REPORTING by Member States

RE ASSESSMENTSRE ASSESSMENTS

Sectoral and overall shares in view to comply with indicative trajectory

Assessment on Support schemes functioning

Promoted RE applications with higher costs (such as biofuels made from wastes)

Assessment on Guarantees of Origin functioning

Assessment on Administrative Procedures Efficiency in removing regulatory and non-regulatory barriers

Assessment on Ensuring T&D

Improvement of rules for bearing and sharing costs

BIOFUELBIOFUEL

Various statistical reports and assessments on share, impact on land use, biodiversity, water resources…*

REPORTSREPORTS

Estimated net greenhouse gas savings due to the use of RE

30 J

une

2011

2013

, 201

5, 2

017,

201

930

Jun

e 20

1120

13, 2

015,

201

7, 2

019

* Will be further developed in a dedicated presentation


INFORMATION and TRAINING

Information on SUPPORT MEASURES

Information on SUPPORT MEASURES

Made available by Member States to the broad public (consumers, builders, installers, architects…)

Information on BENEFITS, COSTS and ENERGY EFFICIENCY

Information on BENEFITS, COSTS and ENERGY EFFICIENCY

Of equipment and systems for the use of electricity, heating and cooling from renewable sources

CERTIFICATION schemes

CERTIFICATION schemes

For installers of small-scale RE:– Biomass boilers and stoves– Solar Photovoltaic and Thermal systems– Heat pumps

GUIDANCE for PLANNERS and ARCHITECTS

GUIDANCE for PLANNERS and ARCHITECTS

Objective : consider the use of RE and district heating & cooling when planning, designing, building and renovating industrial or residential areas


QUESTIONS & ANSWERS

http://ec.europa.eu/energy/climate_actions/doc/2008_res_directive_en.pdf


Cost of promotion of renewable energy

Wind – Suitable location

Wind – 2nd

range location

MW

Cost (€/MWh)

Biogas

Biomass

Solar

National Target

National Target

Available GoO to be offered to 3rd parties


Cost of promotion of renewable energy


Wind – 2nd

range location

MW

Cost (€/MWh)

Biogas

Biomass

Solar

National Target

National Target

Available GoO to be offered to 3rd parties


Wind – 2nd

range location

MW

Cost (€/MWh)

Biogas

Biomass

National Target

National Target

Required GoO to be acquired by tranferring

Member State 1 : rich in Renewable Sources

Member State 1 : rich in Renewable Sources

Member State 2 : poor in Renewable Sources

Member State 2 : poor in Renewable Sources


0

5

10

15

20

25

30

35

40

45

50

c€/

kW

hA

ño

s

Tarifa

Prima

Años subvención

Guiding technology mix (I) – Spanish model

Feed-in Tariffs+ Volume Targets


Different technologies need different subsidy level to reach market competitiveness


0371

20.155

2.000

2711803651.339

11

12.858

6.779

409 3502501.317

2.400

500

9.215

0

5.000

10.000

15.000

20.000

25.000

MW

Potencia Instalada

Potencia Objetivo

Guiding technology mix (II) – Spanish model



Volume objectives for a time period

Installed power on Nov 07Installed power on Nov 07

2010 Target2010 Target


Guiding technology mix (III) – Market based model

SOLAR PV GoOSale @ 26 c€/kWh

SOLAR PV GoOSale @ 26 c€/kWh

WIND GoOSale @ 3 c€/kWh

WIND GoOSale @ 3 c€/kWh

Producer having to comply with xx% of RE share, has to buy GoO

to RE producers…

Producer having to comply with xx% of RE share, has to buy GoO

to RE producers…

BIOGAS GoOSale @ 11 c€/kWh

BIOGAS GoOSale @ 11 c€/kWh


GRID ACCESS

GRID DEVELOPMENTGRID DEVELOPMENT

T&D structure evolves from centralized system to distributed generation system It needs investments in T&D network Need to be supported and organized by Member States

GoO transferGoO transfer In case of GoO transfer, the buying Member State will

participate to grid development? How to internalize the grid development cost in the GoO price transfer?

FEEDBACK FROM THE FIELD. THE BARRIERS– When the capacity of an evacuation line is

saturated, a revamp of the distribution system is required. The charge cannot be fully supported by the new entrant, but shared among all the future users of the line. The investment cost of revamping should be advanced by Member State (RE developer only pays proportionally to its use)


DISPATCHING PRIORITY



Some TSO start to ask to RE generators some storage capacity (i.e. CSP in Spain) as necessary condition to be dispatched

Guidelines should be homogeneous among Member States Guidelines should not create discrimination among technologies Dispatching capability should be encouraged but not imposed

Thermal Storage Tanks in Andasol CSP power plant (Spain)

the renewables eu directive

Technology

use of energy

energy suppliers

energy efficiency

member state renewable

volatile energy supply

upcoming energy imports

energy consumers feed

ec directive