Project no: EIE/06/170/SI2.442662 RES2020 Monitoring and Evaluation of the RES directives implementation in EU27 and policy recommendations for 2020 Reference Document on Renewable Energy Sources Policy and Potential Deliverables D.2.2 and D.2.3 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Table of Contents 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. INTRODUCTION ----------------------------------------------------------------------------------------------------------------- 3 AUSTRIA --------------------------------------------------------------------------------------------------------------------------- 6 BELGIUM------------------------------------------------------------------------------------------------------------------------- 22 BULGARIA ----------------------------------------------------------------------------------------------------------------------- 34 CYPRUS-------------------------------------------------------------------------------------------------------------------------- 42 CZECH REPUBLIC ------------------------------------------------------------------------------------------------------------ 52 GERMANY ----------------------------------------------------------------------------------------------------------------------- 63 DENMARK ----------------------------------------------------------------------------------------------------------------------- 73 ESTONIA ------------------------------------------------------------------------------------------------------------------------- 83 SPAIN ----------------------------------------------------------------------------------------------------------------------------- 92 FINLAND ------------------------------------------------------------------------------------------------------------------------112 FRANCE-------------------------------------------------------------------------------------------------------------------------120 GREECE ------------------------------------------------------------------------------------------------------------------------129 HUNGARY ----------------------------------------------------------------------------------------------------------------------141 IRELAND ------------------------------------------------------------------------------------------------------------------------150 ITALY-----------------------------------------------------------------------------------------------------------------------------161 LITHUANIA ---------------------------------------------------------------------------------------------------------------------174 LUXEMBOURG----------------------------------------------------------------------------------------------------------------183 LATVIA---------------------------------------------------------------------------------------------------------------------------191 MALTA ---------------------------------------------------------------------------------------------------------------------------201 NETHERLANDS---------------------------------------------------------------------------------------------------------------208 NORWAY------------------------------------------------------------------------------------------------------------------------216 POLAND-------------------------------------------------------------------------------------------------------------------------220 PORTUGAL---------------------------------------------------------------------------------------------------------------------230 ROMANIA -----------------------------------------------------------------------------------------------------------------------242 SWEDEN ------------------------------------------------------------------------------------------------------------------------249 SLOVENIA ----------------------------------------------------------------------------------------------------------------------258 SLOVAKIA ----------------------------------------------------------------------------------------------------------------------268 UNITED KINGDOM -----------------------------------------------------------------------------------------------------------280 REFERENCES-----------------------------------------------------------------------------------------------------------------291 2 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential 1. INTRODUCTION 3 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential The project RES2020 aims at analysing the present situation in the RES implementation, defining future options for policies and measures, calculating concrete targets for the RES contribution that can be achieved by the implementation of these options and finally examining the implications of the achievement of these targets to the European Economy.. A number of future options for policies and measures will be defined and they will be studied with the use of the TIMES energy systems analysis model, in order to analyze the quantitative effects on the RES development. The results will be combined to provide recommendations of optimal mix scenarios for policy measures, in order to ensure the achievement of the targets. In this context the present document is the analysis of the present situation, and an attempt to approach the technological potential of Renewable Energy Sources in the EU27. The renewable energy sector is changing rapidly, especially in the sector of policies and measures in the European countries. Therefore this document will be updated continuously during the project and a new version is expected to be published at the end of the project in the spring of 2009. The data are presented per country in the following pages. A small introduction is given for each country together with key figures on the existing situation. A description of policies and targets follows. Finally a critique on the progress towards the targets is presented and the set of support instruments that exist in the country. The Annexes present the potential data for electricity production and the data for bioenergy potentials that have been collected in the framework of RES2020 for each country. The electricity potential table presents the data that have been collected • Through EREC and its Members • Through a revision of previous EU funded projects and reports (GreenX, OPTRES) • Through the partners of the project The data have been discussed in the framework of the REWG of the EnR with the country experts. The table present an estimation of the technical potential that could be utilized as an upper bound by 2010, 2015, 2020 and 2030. As technical potential we are considering: • the future installed capacity of wind turbines without taking in mind financial issues at a "reasonable" wind speed as a possible upper limit in the development of the installed capacity over time. • the future installed capacity of hydro considering technical issues only and a possible upper limit in the development of the installed capacity over time. For some technologies potential may be unlimited (e.g. photovoltaics), so we are using upper bound limits within the relevant time frames. The data on bioenergy potentials and costs originate from the European IEE project REFUEL. In the REFUEL project three scenarios are considered. A reference scenario (‘baseline’) that describes ‘most likely’ developments under current policy settings. Baseline essentially reflects effects of ongoing trends in food consumption patterns on the one hand and technological progress in food production on the other hand, and it assumes a continuation of current self-reliance levels in Europe’s aggregate food and feed commodities. An extended description of the assumptions driving the Baseline scenario can be fined in (Refuel D6, IIASA). In the other two scenarios, the focus is more on difference in land area becoming available in the future for bio-fuel feedstock production (scenario ‘high’ and scenario ‘low’). Agricultural production intensity, depends on agricultural and environmental policies as well as technological progress, and may vary significantly in different scenarios. In first instance the potentials from the Baseline scenario will be used. Potentials of the high and low scenario can be used for the scenario analysis in workpackage4 of the RES2020 project. 4 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Land availability Competing land use requirements for Europe’s food and livestock sector as well as land use conversion from agriculture to other uses, in particular built-up and associated land areas, will determine future availability of land for energy crop production. Future food and feed area requirements are the result of developments in food demand combined with changes in production intensity and trade of agricultural products. (Refuel D6, IIASA) Moreover, areas of high nature conservation value are excluded from the potential biofuel crop area. Potentials When for a region the land available for energy production is known, the potential for each crop type can be determined. The total potential per region however, is much smaller than the sum of the potentials since there competition of available land. This one obviously wants to take into when taking up bio-energy crops in the energy system. When modeling potentials, one should adopt a constraint to avoid double use of land. Assuming the potentials of the crops are homogenously distributed over the region the following constraint should be satisfied: U1/P1 + U2/P2 + Ui/Pi + …. ≤ 1. Where Pi is the potential of the i-th crop and Ui is the real utilization of the i-th crop. For example, if 30% of the woody crop potential is actually used, the homogenous distribution of the potential implies that 30% of the land is used for woody crops and 70% is still available for the cultivation of other energy-crop types. However, in general potentials of crops will not be distributed homogenously within a region. Some sub-regions will be more suitable for the growing of specific energy crops than for others, but also the yield of a crop type will be better (and thus have a higher potential) in one sub-region than it will be in another sub-region. So in general, the constraint (equation..) can not avoid that there will be double use of land within a region. The impact of double counting is higher when the potential is less homogenously distributed, which is more likely for a large region. When the region is small enough, the error becomes acceptable. However, splitting a region (for example a country) in very small sub-regions like 1 by 1 km will make your database much too detailed for the scope of the RES2020 project. Therefore regions have to be defined that give an acceptable balance between the level of detail of the model and possible unwanted double use of land. For the REFUEL project, potentials are considered on NUTS2 level. Some (smaller) countries have just one region (Denmark), other (large) countries are split up in a lot of NUTS2 regions (41 regions). For each NUTS2 region, the potential of a crop and average cost are given. Costs and energy use As written above, the costs of a crop include costs for growing, harvesting and cost for truck transport of the energy crops to either a conversion plant or an export unit. In REFUEL, it is assumed that the costs of crop growing and harvesting decline between 0,5% and 2,5% per year depending on crop and year in each NUTS2 region. However, due to the aggregation of the regions done for RES2020 it is possible that the costs on country level increase in time. This is due to the fact that we are using weighted average costs. When the potential in a NUTS 2 region with higher costs increases faster in time than the potential in a region with lower costs, the weighted average cost can increase. This, will however be minimal. Costs for transport are based on transport by truck over a average distance of 100 km. The costs for transport are lower for Eastern European countries but will increase till the more or less stable cost level of Western European countries. Energy use for growing, harvesting or transportation are not taken into account. We assume these are included in demand agriculture or transport sector. Same holds for energy use for production fertilizer, it is assumed that this is included in the chemical industry. Same holds also for the CO2 related to the energy use for growing, harvesting, transportation and fertilizer production. 5 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential 2. AUSTRIA 6 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Austrian energy policy has focused for decades on securing a sustainable and socially-balanced supply of energy. The permanent promotion of renewable energy sources (RES), accompanied by the enhancement of a rational utilisation of energy, is a key strategic aspect of this policy. This long-term energy policy has resulted in a mix of energy sources characterised by a significant importance of RES. With 66% of electricity consumed by RES, Austria is the European leader on RES contribution to gross electricity consumption. The most significant source of renewable energy is hydropower, followed by biomass. With 46% of the Austrian territory being covered by forests, the share of woodland is one of the highest in Europe. Consequently, the use of biomass has been extensive in Austria. Logwood and industrial timber are used in district heating plants, while pellets are increasingly being used primarily in household heating systems. At the same time Austria is one the European leader in Solar Thermal per capita together with Cyprus and Greece. On November the 5th, 1978 the Austrian voted with 50.47% against the use of nuclear power for electricity production in Austria. The use of nuclear power is therefore prohibited by law. KEY FIGURES • • • • • The share of RES in total primary energy consumption was of 22.4 % in 2006. With a share of 42.2%, oil remains the most important energy source, followed by RES, natural gas with a share of 21.9% and coal (11.8%). The share of RES in the gross final energy consumption was 23.3 % in 2005. The share of RES in the gross electricity production was 57% in 2006. Most of the renewable electricity (RES-E) is produced by hydropower plants (2/3), followed by solid biomass and wind power. The share of biofuels in the transport in 2006 was 3.54%. Austria energy dependence on imports amounts to 54.5% in 2005 Source: http://www.statistik.at Austrian Energy Agency 7 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential RES POLICY The Austrian Green Electricity Act of 2002 was amended in 2006, leading to revised subsidy conditions for new RES power plants. Whereas pre-established statutory provisions still apply to the existing plants, the new law applies to the following power plants: • Small scale hydro power plants (maximum capacity up to 10 MW): Generated (fed-in) electricity with purchase obligation. • “Other green power plants” such as wind-, solar-, geothermal-, biomass-, and high bio share of waste-, landfill gas-, sewage gas- and biogas-: Generated (fed-in) electricity with purchase obligation. • Heat tariff (combined support of electricity and heat) for solid biomass power plants that receive tariffs according to the feed-in tariff of 2002. • Existing or refurbished combined heat and power plants for public district heating supply: support tariff (when refurbishment investment amounts to 50% of the value of a new plant of the total capacity after refurbishment). • Subsidies for investments in “medium scale hydro power plants” (maximum capacity over 10 up to including 20 MW). • Subsidies for investments in new fossil combined heat and power plants. RES TARGETS Mandatory targets set by the newly proposed RES Framework Directive from 20081 • 34 % share of RES on the final consumption of energy in 2020. • At least 10% share of biofuels of final consumption of energy in transport in that Member State in 2020. Indicative Target set by the RES- electricity European Directive from 20012 • 78.1 % Share of RES on gross electricity consumption by 2010. Indicative Target set by the European Biofuels Directive from 20033 • Biofuels consumption of 5.75% of petrol and diesel use for transport in 2010. National commitments • At least 25 % of RES in primary energy consumption by 2010. • 80 % in 2010 and 85 % in 2020 of RES-E in gross electricity consumption. • According to the Ökostromgesetz from 2002, and from 2006, 4% and 10% of all electricity delivered to end-consumers by the public distribution network in the year 2008, 2010 respectively, should be produced from indigenous biomass combustion and digestion, liquid biomass (i.e. plant oils, except black liquor and sewage), wind, solar and geothermal sources. Besides this target, there is an indicative minimum quota for small hydro (< 10 MWel) of 9% in the Ökostromgesetz 2002. 1 Proposal for a Directive of the European Parliament and the Council on the promotion of the use of energy from renewable sources from January 2008(the targets agreed but the directive is on legislative process) 2 Directive 2007/71/EC on the promotion of electricity produced from renewable energy sources in the internal electricity market. Currently in force, sets targets up to 2010. 3 Directive 2003/30/EC on the promotion of the use of biofuels or other renewable fuels for transport currently in force, sets targets up to 2010, with indicative targets by 2005. 8 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential • • At national level, indicative targets for biofuels have been set at 2.5% in 2005, 4.3% in 2007 and 5.75% in 2008. (The goverment program goes even further: 10 % “alternative fuels” in 2010 and 20 % in 2020). There is no national target/commitment for heating and cooling. Technology roadmap • Targets per Technology are planned for the upcoming Ökostromgesetz 2008, but still in negotiation: In the electricity sector, it foresees +700 MW of wind, +700 MW for small hydro, +100 MW for biomass by 2015. • According to government program (2007-2010) a target of 5% cars with alternative powertrains (e85, methane, and hybrid) for the yearly new licenced cars (from around 300,000 p.a.) by 2010 has been announced. Progress towards the Targets In 2006, the share of renewable energy in gross electricity consumption decreased to 57% compared to 70% in 1997, mainly due to the increase in total electricity consumption. According to the Austrian Energy Agency, 8% of RES electricity (not taking into account small and large hydro) will be reached in 2008). The 10% 2010 target from Ökostromgesetz 2006 probably won’t be reached any more because of stop and go policy (Ökostromgesetz 2006 was no success compared to 2002) The new target discussed for 2015 is therefore 15% including small hydro (the 9% target for small hydro theoretically is reached already - but many small hydro plants opted for market conditions as tariffs became lower than market prices and went out of the Ökostromgesetz framework). A 17% share of RES in national electricity would be achieved in 2015 if the electricity consumption would stay constant from 2008-2015 - but in Austria electricity consumption is rising sharply i.e. about 2-3 % per year. (RES-e share would shrink if no new capacity would be built). Large scale blending of all (nearly 95%) fossil diesel started in October 2005 . 3.2% of all gasoline and diesel was substituted - the EU target was 2% by the end of 2005. In 2006 large scale biodiesel blending (4.7% of the volume-) went on (288,500 to biodiesel for blend and 32,500 to for fleets), further 10,000 plant oil were used by fleets and tractors - 3,54 biogenic energy % contributed to all gasoline and diesel in transport. From October 2007 onwards 4.7 vol.-% bioethanol were blended to gasoline – however no official data available yet. Support for RES Electricity Feed in tariff with purchase obligation for electricity Small scale hydro power plants (maximum capacity up to 10 MW), wind-, solar-, geothermal-, biomass-, high biogenous share of waste-, landfill gas-, sewage gas- and bio gas generated (feedin) electricity with purchase obligation. Support level [€cents/ kWh] 3,8-6,3 7,8 Feed-in tariff or premium? feed-in tariff feed-in tariff 4.05- 16.95 feed-in tariff PV 32-49 feed-in tariff Geothermal 7,30 €c/kWh Resource hydro wind biomass Technology small onshore gasification (biogas) Duration [years that an investor is entitled to support] 13 13 10 years +2 years with a reduced tariff (in the 11th year: 75%, in the 12th year 50% of the fixed tariff.) 12 10 years +2 years with a reduced tariff (in the 11th year: 75%, in the 12th year 50% of the fixed tariff.) See annex for more detailed info. Tariffs valid from 2007-onwards 9 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential The Austrian Green Electricity Act of 2002 was amended in 2006, leading to revised subsidy conditions for new RES power plants. Key amendments to the old law: • The duration of the guaranteed feed-in tariff depends on the type of installation, but does not exceed 13 years from the start of the installation’s operation. Almost all types of installation will benefit from a purchase obligation at market price minus balancing costs for a further period of 12 years. • Change in the funding system: From 1 January 2007, the former fee on consumption is replaced by a metering fee expressed as a lump sum per metering point, which consumers have to pay per metering point (“Zählpunktpauschale”). The amount of the fee depends on the grid level to which the consumer is connected but is independent of his actual consumption. The fee is fixed by law and amounts to 15 000€ per annum for connection to the high voltage net levels 1 to 4, 3300€ to level 5, 300€ to level 6 and 15€ to level 7. • Change in the organisational structure of the support mechanism: The purchase and selling of green electricity will be carried out in accordance with a licence to be granted by the Ministry for economic affairs and labour. The now single Centre (www.oem-ag.at, formerly there were 3 bodies engaged) will be subject to the control of the national court of auditors. • The new law maintains the current level of the feed-in tariffs for different types of installations installed/substantially modernised or for installations for which administrative approval was granted at the latest by certain cut-off dates (administrative approval by 31.12.2004 for all technologies (except small hydro) and which went online by 30.06.2006 i.e. wind, PV. (except for plants with liquid, gaseous and solid biomass, for which deadline was set for 31.12.2007). • The law newly introduces that prices must be oriented on installations of best available technique and must have in mind the support of installations at the most efficient locations (this was valid for Ökostromgesetz 2002 too). The prices will be fixed for 2006, and reduced subsequently on an annual basis. Investments Subsidies • For “medium scale hydro power plants” (maximum capacity over 10 up to including 20 MW). For newly erected fossil combined heat and power plants. Support for Heating and Cooling Feed in tariff for Heat • Heat tariff (combined support of electric energy and heat) for solid biomass power plants that receive tariffs according to the feed-in tariff legal regulations of 2002. • Support tariff for existing or refurbished combined heat and power plants for public district heating supply. Investment subsidies: Federal/regional/local schemes on RES-H/C (for private houses mainly by the provincial housing subsidy systems, for private companies mainly by the federal “Umweltförderung im Inland” which is handled by kommunalkredit public consulting (Kpc) http://www.public-consulting.at/en/portal/ • • Geothermal: 20 – 40 % of the total costs of investment for private investors Solar Thermal grants up to 30% of the investment costs. Federal level support for companies. Support is given to private households at province level. 10 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Resource Support level [%/total investment] Comments Geothermal Solar Thermal 20 – 40 % of the total costs of investment For private investors Federal level support for companies. Support is given to private households at province level. Grants up to 30% of the investment costs. Private households benefit from grants between € 600 and € 1700 for systems used for domestic hot water needs (dependent on the province). Installations aiming at space heating benefit from grants between € 1100 and € 3325. The federal government supports buildings in the private sector (eg. Hotels) with grants up to 30% of the investment costs. The KlimActive programme managed by the Federal Ministry of Environment counts with partnerships in the regions, the industry and the Austrian Energy Agency. The objectives of the programme are to promote RES technologies and Energy Efficiency. It has an important RES-H component to cover also information campaigns, education and training for installers, certification measures. Support to specific projects is implemented at regional level with the support of the Austrian Energy Agency. Support for Biofuels Tax exemption • Biodiesel are exempted from the tax on petroleum products (mineral oil tax “Mineralölsteuer”), if used pure there is no VAT reduction. • Biodiesel with a minimum blend of 4.4 Vol.% mineral oil tax reduction by 2.8 ct/l fuel-mix compare to pure fossil fuel (part of this exemption is for desulphurization) - no VAT reduction (stays at 20%). • Bioethanol with a minimum blend of 4.4 Vol.% mineral oil tax reduction by 3.3 ct/l fuel-mix compare to pure fossil fuel (part of this exemption is for desulphurization) - no VAT reduction (stays at 20%). Resource Total support level (= tax exemption incl. reduction of VAT to be paid) [€cents/litre] start year Biodiesel Exempted from the tax on petroleum products if used pure 80ies Biodiesel with a minimum blend of 4.4 Vol.% mineral oil tax reduction by 2.8 ct/l fuelmix compared to pure fossil fuel 7/1/2007 Bioethanol with a minimum blend of 4.4 Vol.% mineral oil tax reduction by 3.3 ct/l fuelmix compared to pure fossil fuel 10/1/2007 Quota Obligations The European Biofuels Directive was transposed into Austrian law by an amendment to the Fuel Order (Kraftstoffverordnung) in November 2004. Since 1 October 2005, in accordance with Austrian legislation, those subject to the substitution requirement have had to ensure that biofuels replace 2.5% (calculated on the basis of energy content) of all petrol and diesel fuels placed on the market. This will increase to 4.3% on 1 October 2007 and to 5.75% on 1 October 2008. 11 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Resource Technology free choice free choice Quota in % (per year) 4.3% in October 2007 5.75% in October 2008 Comments mineral oil companies and distributors are obliged to fullfill the targets Annex I Key Aspects of the Green Electricity Act Amended in 2006 Annex II. Overview of Feed in Tariffs for electricity Annex III. Austrian Electricity Potentials Annex IV. Austrian Bioenergy Potentials Sources: European Commission Factsheets by Country http://ec.europa.eu/energy/energy_policy/facts_en.htm Member States Reports in the framework of the Directive 2001/77/EC on renewable electricity http://ec.europa.eu/energy/res/legislation/electricity_member_states_en.htm Member States Reports in the framework of the Directive 2003/30/EC on biofuels http://ec.europa.eu/energy/res/legislation/biofuels_members_states_en.htm Austrian Energy agency http://www.energyagency.at/ In the framework of the EU co –funded project: RES 2020: Monitoring and Evaluation of the RES Directives implementation in EU27 and policy recommendations to 2020 The sole responsibility for the content of this Publication lies with the authors. It does not represent the opinion of the Community. The European Commission is not responsible for any use that may be made of the information contained therein. Drafted in March 2008. 12 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Annex I Key Aspects of the Green Electricity Act Amended in 2006 The amended Green Electricity Act of 2006 contains several new aspects. The most important ones are summarised below: The amendment constitutes new basic conditions from 2006 to 2011. For small scale hydro power plants the subsidizing system stays basically unmodified, also the 9 %-target for 2008 stays upright. For existing plants, which have been approved before 1.1.2003 and have not been refurbished since then, the feed-in tariffs expire at the end of 2008. However, for the plant segment up to 1 MW the purchase obligation at the market tariff (minus compensation of expenses for control energy) will persist for further 12 years. Also for “other green power plants” the subsidy mechanism, with a purchase obligation according to guaranteed feed-in tariffs for a particular duration, still remains upright. However, the subsidy volume to be allocated every year, is limited: In the years 2007 until 2011 an additional support volume of 17 Mio. EUR will be available, the budget for 2006 is 8,5 Mio. EUR. For this reason green power plants with a yearly support demand in the mentioned amounts can receive a new purchase contract. The support volume is distributed in the following way: • 30% for solid biomass (that means 5,1 Mio. EUR yearly, 2006: 2,55 Mio. EUR) • 30% for biogas (that means 5,1 Mio. EUR yearly, 2006: 2,55 Mio. EUR) • 30% for wind power (that means 5,1 Mio. EUR yearly, 2006: 2,55 Mio. EUR) • 10% for photovoltaics and others such as liquid biomass, hybrid firing and cofiring plants, and others (that means 1,7 Mio. EUR yearly, 2006: 0,85 Mio. EUR) With this budget the share of „other green power“, related to the power consumption of end-users connected to the public grid, should be increased up to 10 % in the year 2010 (according to the legal target). The purchase agreements are being allocated according to a “first-come-first-served” mechanism through the newly created green power settlement center (OeMAG, www.oem-ag.at), in charge since 1.10.2006: It replaces the three “green power balance group representatives”. For each plant segment purchase agreements will be assigned until the additional yearly feed-in tariff volume is exploited. Further the OeMAG has to publicize the still remaining feed-in tariff volume each day. The available feed-in tariff volume will therefore be derived from the support volume: annual support volume + Market value of the contractive green electricity – Expenses of the green electricity settlement center (aliquot share) – Expenses for balance energy (unscheduled elc. flows) (aliquot share) – Technology subsidies of the federal states (aliquot share of 7 Mio. EUR yearly) = available feed-in tariff volume If the feed-in tariff volume, to be allocated in a particular category, is exploited, the application is postponed to the following calendar year. However if the available funds in a particular category can not be allocated in a specific year, the remaining funds are carried forward into the following year and distributed to the single technology categories according to the key above. After conclusion of the contract, the green power plant has to be put into operation within 24 months, after this time limit feed-in tariffs can be claimed – namely tariffs valid at the date on which the contract with the green power electricity settlement center was concluded: from the beginning of operation for the duration of 10 years; in the 11th year 75% respectively in the 12th year 50% of these tariffs will be compensated, at least the market price according to § 20 of the Green Electricity Act 13th till 24th year: Purchase guarantee to the market tariff according to § 20 of the Green Electricity Act minus expenses for control energy (separate depending on wind energy or other energy sources). 13 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential The feed-in tariffs themselves were re-defined for the year 2006 and 2007 by ordinance and are consequently to be configured degressively. Hereby a total fuel efficiency of at least 60 % is necessary for combined heat and power processes (solid, liquid, biomass, waste with a high biogenous share, biogas, cofiring plants). For photovoltaic plants 50 % of the expenses, which are necessary for the purchase of the energy (i.e. the subsidy volume p.a.), have to be paid by the federal state in which the plant will be erected. For green power plants based on solid biomass, which receive tariffs according to the Green Electricity Act of 2002, the amendment enables a combined support of electric energy and heat. The subsidy mechanism of the amended Green Electricity Act 2006 came into effect on 1. October 2006. The feed-in tariffs themselves are set by ordinance. Currently the following tariffs are in force: • Ordinance on feed-in tariffs 2002 + amendment 2005 (these was an extension of the time by which plants had to be online to get the 2002 tariffs, was done because plant engineering and construction market was overheated because of approval flood by the end of 2004) (valid for plants approved in 2003 and 2004) • Ordinance on feed-in tariffs 2006 (valid for plants contracted in 2006 and 2007) Because of the amendment of the law and the new ordinance, there are currently different schemes in place. The following tables provide an overview of which conditions apply to which plant segment within the small hydro power plants- and other green power plants sector. 14 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Annex II. Overview of Feed in Tariffs General Conditions for Small Scale Hydro Power Plants Type of Plant Existing (approved 1.1.2003) Period of Tariff Validity plants until 31.12.2008 before For plants up to 1 MW: 12 years from 1.1.2009 onwards Tariff Amount Tariffs according to BGBl. II Nr. 508/2002, amended BGBl. II Nr. 254/2005 (ordinance of the feed-in tariffs 2002 + amendment 2005) Market price according to sect. 20 of the Green Electricity Act minus expenses for control energy (separate for wind energy and other energy sources) in the last calendar year Recent erection or 15 years after (Restart-)or initial Tariffs according to BGBl. II Nr. 508/2002, refurbishment before operation of newly erected plants amended BGBl. II Nr. 254/2005 (ordinance of the 1.1.2008 or for +50% RAV, 13 years for feed-in tariff 2002 + amendment 2005) +15% RAV 12 years after expiry of the above Market price according to sect. 20 of the Green mentioned tariffs (only plants up Electricity Act minus expenses for control energy to 1 MW EPL) (separate for wind energy and other energy sources) in the last calendar year Recent erection or Guarantee period according to Tariffs according to ordinance that have to be refurbishment after the new legal regulations (min. enacted before 2008 1.1.2008 10 years) For plants up to 1 MW: Market price according to sect. 20 of the Green 12 years after expiry of the above Electricity Act minus expenses for control energy (separate for wind energy and other energy mentioned tariffs sources) in the last calendar year 15 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential General Conditions for Other RES Power Plants Type of Plant Period of Tariff Validity Tariff Amount Old plants (approved before 1.1.2003) 10 years after start of Tariffs according to the legal operation, respectively regulations of the respective federal period of validity according state) to the legal regulations of the respective federal state 12 years after expiry of the Market price according to sect. 20 above mentioned tariffs of the Green Electricity Act minus expenses for control energy (separate for wind energy and other energy sources) in the last calendar year Power plants, which have been 13 years approved by to 2003 or 2004 at first operation instance and have gone on line (started operation) by 30.06.2006 (except solid-, liquid biomass, biogas: Operation by 31.12.2007) after start of Tariffs according to BGBl. II Nr. 508/2002, amended BGBl. II Nr. 254/2005 (ordinance of the feed-in tariff 2002 + amendment 2005) Solid biomass: Combined support for electric energy and heat possible 12 years after expiry of the Market price according to sect. 20 above mentioned tariffs of the Green Electricity Act minus expenses for control energy (separate for wind energy and other energy sources) in the last calendar year Plants, that have been approved after the 31.12.2004 at first instance, or respectively that will go on line by the dates mentioned above and that have concluded an agreement by 31.12.2011 10 years after start of operation. In the 11th years 75%, in the 12th year 50% of the feed-in tariff Tariffs according to BGBl. II Nr. 401/2006 (ordinance of the feed-in tariff 2006). In the 11. and 12. year at least market price according to the Green Electricity Act sect. 20 12 years after expiry of the Market price according to sect. 20 above mentioned tariffs of the Green Electricity Act minus expenses for control energy (separate for wind energy and other energy sources) in the last calendar year 16 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Feed-In Tariffs for RES Power Plants Energy Cource technology / Conditions Contracting Guarantee period Wind Energy Solid Biomass (such as wood chips from the forrest, straw) Waste with a high biogenous proportion Hybrid Plants up to 2 MW 2 to 5 MW 5 to 10 MW above 10 MW Materials according to SN 17… in table 2 of the annex, e.g. bark, saw dust Materials according to SN 17…, in table 1 of the annex, e.g. chip board waste Materials according to other 5-digit SN in table 1 and 2 of the annex Firing Cofiring in caloric plants Solid biomass (wood chips from the forrest, straw) Materials according to SN 17… in table 2 of the annex, e.g. bark, saw dust Materials according to SN 17…, in table 1 of the annex, e.g. chip board waste Materials according to other 5-digit SN in table 1 and 2 of the annex Hybrid firing plants Liquid biomass Biogas from agricultural production (such as sweete corn, liquid manure) vegetable oils, cold-pressed biogenous oils, biodiesel; up to 300 kW Vegetable oils, cold-pressed biogenous oils, biodiesel; above 300 kW other liquid biogenous fuels up to 100 kW 100 to 250 kW 250 to 500 kW 500 to 1000 kW above 1000 kW Biogas from cofermentation of waste material SewageLandfill Gas and Tariffs in Cent/kWh according to ordinance BGBl II Nr. 401/2008 2006 (2007) 10 + 2 years 7,65 (7,55) 15,70 (15,85) 15,00 (14,95) 13,40 (13,30) 11,30 (11,10) Tariffs in Cent/kWh according to ordinance BGBl II Nr. 508/2002 2003, 2004 13 years 7,80 16,00 15,00 13,00 10,20 minus 25 % of tariff above minus 20 % of tariff above minus 40 % of tariff above minus 35 % of tariff above 5,00 (4,90) 2,70 proportional proportional 6,40 (6,30) 6,50 minus 25 % 5,00 minus 40 % 4,00 minus 50 % 3,00 proportional proportional 13,00 (12,50) 13,00 (up 200kW) 10,00 (9,50) 10,00 200kW) to (above 6,50 (6,00) 17,00 (16,95) 15,20 (15,15) 14,10 (14,00) 12,60 (12,40) 11,50 (11,30) 16,50 14,50 14,50 12,50 10,30 minus 30 % of tariff above minus 25 % of tariff above sewage gas 6,00 (5,95) landfill gas 4,10 (4,05) 3,00 (up to MW) 6,00 (above MW) 1 1 17 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential 7,40 (7,30) Geothermal Energy Photovoltaics up to 5 kWp 49,00 (48,00) 5 kWp to 10 kWp 42,00 (40,00) 7,00 60 (up to 20 kWp ) 47 (above 20 kWp ) 32,00 (30,00) above 10 kWp Small Scale Hydro Power Plants Tariffs in cent/kWh accoring toordinance BGBl II Nr. 508/2002 (erection/refurbishment until 31.12.2007) a) existing old plants (tariff valid until 31.12.2008, phases out without subsitution) b) after refurbishment with at least 15 % electric power a) b) c) output progression c) new buildings, respectively refurbishment with at least 50 % electric power output progression first 1.000.000 kWh 5,68 5,96 6,25 following 4.000.000 kWh 4,36 4,58 5,01 following 10.000.000 kWh 3,63 3,81 4,17 following 10.000.000 kWh 3,28 3,44 3,94 surmounting 25.000.000 kWh 3,15 3,31 3,78 Combined heat and power funding of old biomass plants (approved 2003-2004) thermal support tariff (WT) possible WT=ET/4,4-WP whereas ET = Feed-in tariff accoring to BGBl Nr. 508/2002; WP = 2,6 Cent/kWh (th) for plants up to 10 MW (el); WP = 1,8 Cent/kWh (th) for plants greater than 10 MW (el) 18 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Annex III. Austrian Electricity Potentials Description Unit 2005 2010 2015 2020 2025 2030 Total Wind Maximum Wind onshore Maximum Wind offshore Maximum solar PV Maximum solar thermal Total Hydro Maximum conventional hydro of which Maximum run of river Maximum Pumped Storage and mixed hydro Maximum Wave power plants Maximum tide power plants Maximum geothermal Total Maximum geothermal dry steam & flash power plants (>180°C) Maximum geothermal binary power plants (180°C<x<85°C) Maximum geothermal EGS power plants Maximum biomass power plants (conventional+CHP) Maximum biogas power plants (conventional+CHP) Maximum bio waste power plants (CHP) MW MW MW TWh MW MW MW MW 819 819 0 0.01 0.00 11868 8300 5337 2778 2778 0 1.55 0.00 13280 9116 6153 3396 3396 0 4.01 0.00 14095 9245 6282 4015 4015 0 6.48 0.00 4458 4458 0 10.94 0.00 4902 4902 0 15.41 0.00 10060 7097 10073 7110 10085 7122 MW TWh TWh Twh 3568 0.00 0.00 0.00 4163 0.00 0.00 0.01 4850 0.00 0.00 0.01 0.00 0.00 0.01 0.00 0.00 0.01 0.00 0.00 0.01 MW 0.00 1.34 1.34 1.34 1.34 1.34 TWh 1.92 5.57 7.85 10.12 11.19 12.26 TWh 0.32 1.67 1.77 1.88 3.37 4.86 TWh 0.32 0.67 0.79 0.91 0.91 0.91 MW MW The previous table present the data that have been gathered in the framework of the RES2020 project in order to be used in the modelling. The data have been collected • Through EREC and its Members • Through a revision of previous EU funded projects and reports (GreenX, OPTRES) • Through the partners of the project The data have been discussed in the framework of the REWG of the EnR with the country experts. The tables present an estimation of the technical potential that could be utilized as an upper bound by 2010, 2015, 2020 and 2030. As technical potential we are considering: • the future installed capacity of wind turbines without taking in mind financial issues at a "reasonable" wind speed as a possible upper limit in the development of the installed capacity over time. • the future installed capacity of hydro considering technical issues only and a possible upper limit in the development of the installed capacity over time. For some technologies potential may be unlimited (e.g. photovoltaics), so we are using upper bound limits within the relevant time frames. 19 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Annex IV. Austrian Bioenergy Potentials TABLE 1 Potentials agricultural bioenergy Description Sugar crops: sugar beet Step 1 Unit LimType 2000 2001 2005 2010 2015 2020 2025 2030 Potential Cost Potential Cost Potential Cost Potential Cost [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] UP 13,0 9,1 13,0 9,1 13,0 9,1 19,0 8,8 24,0 8,54 29,0 8,32 33,0 8,12 38,0 7,95 Potential Cost Step 2 Potential Cost Step 3 Potential Cost Step 4 Potential Cost Grassy crops: switchgrass, miscanthus, sweet sorghum, etc Step 1 Potential Cost Step 2 Potential Cost Step 3 Potential Cost Step 4 Potential Cost Woody crops: willow, poplar Step 1 Potential Cost Step 2 Potential Cost Step 3 Potential Cost Step 4 Potential Cost Oil crops: sunflower, rapeseed Step 1 Potential Cost Step 2 Potential Cost Step 3 Potential Cost Step 4 Potential Cost [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] UP 10,0 8,7 10,0 8,7 10,0 8,7 15,0 8,19 19,0 7,79 23,0 7,45 26,0 7,16 30,0 6,91 [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] UP 32,0 6,0 32,0 6,0 32,0 6,0 50 6,0 63 5,8 76 5,6 90 5,5 103 5,3 [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] UP 29,0 4,5 29,0 4,5 29,0 4,5 44,0 4,44 56,0 4,29 68,0 4,14 80,0 4,03 92,0 3,92 [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] UP 8,0 9,8 8,0 9,8 8,0 9,8 12,0 9,5 15,0 9,3 18,0 9,0 21,0 8,8 24,0 8,6 Step 2 Step 3 Step 4 Starch crops: rye, oats, maize, wheat, barley, etc Step 1 Source UP UP UP UP UP UP UP UP UP UP UP UP UP UP UP 20 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential TABLE 2 Potentials bioenergy from wastes Description Agricultural waste Unit LimType 2000 2001 Potential [PJ/a] UP 1 Cost [€/GJ] Potential [PJ/a] UP 115 Cost [€/GJ] Potential [PJ/a] Cost [€/GJ] Potential [PJ/a] Cost [€/GJ] Potential [PJ/a] Cost [€/GJ] Potential [PJ/a] Cost [€/GJ] Potential [PJ/a] Cost [€/GJ] Potential Cost Potential Cost Potential [PJ/a] [€/GJ] [PJ/a] [€/GJ] [PJ/a] Cost [€/GJ] Potential Cost [PJ/a] [€/GJ] 2005 2010 17 2015 2020 18 2025 2030 19 Source EEA Report 7 2006 9 according to Wörgetter, M., et al. (2003): Bioenergy in Austria: Potential, Strategies, Success Stories. BLT Wieselburg, Austrian Biomass Association and Austrian Energy Agency, Vienna, Austria, 2003. Forestry residues Wood processing residues UP 48 51 54 7 8 8 15 16 17 22 24 25 4 4 4 6 6 6 Municipal solid waste UP 6 Wet manures UP Black liquor UP 19 Sewage sludge Other waste wood households packageing demolition UP 151 according to Wörgetter, M., et al. (2003): Bioenergy in Austria: Potential, Strategies, Success Stories. BLT Wieselburg, Austrian Biomass Association and Austrian Energy Agency, Vienna, Austria, 2003. EEA Report 7 2006 5 according to Wörgetter, M., et al. (2003): Bioenergy in Austria: Potential, Strategies, Success Stories. BLT Wieselburg, Austrian Biomass Association and Austrian Energy Agency, Vienna, Austria, 2003. EEA Report 7 2006 8 according to Wörgetter, M., et al. (2003): Bioenergy in Austria: Potential, Strategies, Success Stories. BLT Wieselburg, Austrian Biomass Association and Austrian Energy Agency, Vienna, Austria, 2003. EEA Report 7 2006 1 according to Wörgetter, M., et al. (2003): Bioenergy in Austria: Potential, Strategies, Success Stories. BLT Wieselburg, Austrian Biomass Association and Austrian Energy Agency, Vienna, Austria, 2003. EEA Report 7 2006 19 according to Wörgetter, M., et al. (2003): Bioenergy in Austria: Potential, Strategies, Success Stories. BLT Wieselburg, Austrian Biomass Association and Austrian Energy Agency, Vienna, Austria, 2003. EEA Report 7 2006 1 according to Wörgetter, M., et al. (2003): Bioenergy in Austria: Potential, Strategies, Success Stories. BLT Wieselburg, Austrian Biomass Association and Austrian Energy Agency, Vienna, Austria, 2003. UP UP UP 1 EEA Report 7 2006 EEA Report 7 2006 1 according to Wörgetter, M., et al. (2003): Bioenergy in Austria: Potential, Strategies, Success Stories. BLT Wieselburg, Austrian Biomass Association and Austrian Energy Agency, Vienna, Austria, 2003. Dry manures UP 21 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential 3. BELGIUM 22 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential In Belgium, 77% of the primary energy comes from fossil fuels (petroleum, natural gas and coal), 21% from nuclear. The main renewable energy sources (RES) are hydropower and biomass, nevertheless the hydropower potential is relatively limited. Belgium green certificate system aims at giving enough incentives for a further development of renewable energy, however due to the low penalty rates; currently it is more favorable to pay penalties, than to use the certificates. Little trading has taken place so far and Belgium is still far form it RES targets. However, onshore wind generation has grown in recent years: the building of the largest onshore wind farm in Belgium has been recently announced, and the turbines will enter in operation gradually from 2010. Once the wind farm is complete it will produce 100-140 GWh annually. KEY FIGURES • The share of RES in total primary energy consumption was of 2.11 % in 2006. • The share of RES in the gross final energy consumption was 2.2 % in 2005. • The share of RES in the gross electricity production was 2.98% in 2006. • The share of biofuels in the transport sector in 2006 was 0.01%. • Belgium energy dependence on imports amounts to 80% in 2005. Technology Specific Figures • For the Walloon region, present biomass resources are estimated at about 700 000 toe. The current utilisation reaches 300 000 toe, principally by incineration of waste, utilisation of by-products in wood industries and space heating with wood logs in domestic stoves. • Wind energy represents only 0.3% national electricity production, but the Belgium Government plans to supply 3% of national electricity needs by wind energy by 2012. RES POLICY Targets differ between the three regions of the country (Flanders, Wallonia, and Brussels) and national energy policies are implemented separately, leading to differing supporting conditions and separate regional markets for green certificates. RES TARGETS Mandatory targets set by the newly proposed RES Framework Directive from 20084 4 Proposal for a Directive of the European Parliament and the Council on the promotion of the use of energy from renewable sources from January 2008(the targets agreed but the directive is on legislative process) 23 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential • • 13% share of RES on the final consumption of energy in 2020. At least 10% share of biofuels of final consumption of energy in transport in that Member State in 2020. Indicative Target set by the RES- electricity European Directive from 20015 • 6 % Share of RES on gross electricity consumption by 2010 Indicative Target set by the European Biofuels Directive from 20036 • Biofuels consumption of 5.75% of petrol and diesel use for transport in 2010. National commitments • The target for renewable electricity is 7% by 2007 in the Walloon region, 6% by 2010 in Flanders and 2.5% by 2006 in Brussels. • There is no national target/commitment for heating and cooling. Technology Roadmap • The Walloon Region aims at reaching a production of 5.550 GWh heat from wood by 2010. Regarding bio-methanization, the Walloon region aims at an energy production of 100 GWh to 225 GWh of heat production by the year 2010. • The Walloon region aims at reaching a production of electricity from wind of 370 GWh (approximately 150 windmills) by 2010 (of windmills installed on the Walloon territory). • Flanders region aims at a production capacity of electricity from wind of about 1,000 GWh by 2010. A memorandum of the Flemish government has been published in May 2006 aiming to reach this objective through accelerating measures. Progress towards the targets • With an RES-e share of 2.98% in 2006 the national target of 6% is still far away. MAIN POLICY INSTRUMENTS Support to RES Electricity 3 sets of measures are key to the Belgian approach to RES-e: Quota obligations Quotas have been set (obligation for all electricity suppliers to supply a specific proportion of RESe) and guaranteed minimum prices or ‘fall back prices’ have been foreseen. In all three regions, a separate market for green certificates has been created. Due to the low penalty rates which will increase over time, currently it is more favorable to pay penalties, than to use the certificates. Little trading has taken place so far. 5 Directive 2007/71/EC on the promotion of electricity produced from renewable energy sources in the internal electricity market. Currently in force, sets targets up to 2010. 6 Directive 2003/30/EC on the promotion of the use of biofuels or other renewable fuels for transport currently in force, sets targets up to 2010, with indicative targets by 2005. 24 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Resource All RES-E technologies Penalty level [€cents/ kWh] WALLONIA and BRUSSEL: 100 euros for each missing GC FLANDERS : 125 € for each missing GC Quota in % (in year) WALLONIA : 3% 2003 - increase of 1 % a year till 2012 BRUSSEL : 2 % in 2004 2,25 % in 2005 2,5 % in 2006, 2007 and 2008 increase of 0,25 % after 2008 FLANDERS : ... Comments WALLONIA : electricity suppliers must pay to Wallonia’s energy authority for each GC missing at the end of each accounting period BRUSSEL : electricity suppliers must pay to Brussels’s energy authority for each GC missing at the end of each accounting period FLANDERS : ... Green certificates Price Currently (updated as of 4th February 2008) 1,615 green certificates without GoOs are being traded with an average price of 108.58 Euros/MWh, and 9,194 green certificates with GoOs were traded at the average price of 110.81 Euros/MWh. The statistics show that in January 2007 an overall volume of 45,743 green certificates without GoOs were traded with an average price of 108.99 Euros/MWh. The total number of green certificates with GoOs in this period reached 45,383 with an average price of 108.24 Euros/MWh. CWAPE (Commission Wallonne pour l’Energie), energy regulator in the Walloon region of Belgium, has recently published the green certificates market prices and volumes for the fourth quarter of 2007 - covering the months from October to December. The volume of green certificates traded was 154,087. The third quarter of 2007 ended with the highest volume traded since 2004, reaching 227,009. The average price for the fourth quarter was 88.16 Euros/MWh. The price of certificates traded in the previous quarter, from July to September, was 91.46 Euros/MWh Resource Support kWh] level [€cents/ biomass WALLONIA : Market price : 90 €/GC Maximum price : price of penalty = 100 €/GC Minimum price : 65 €/GC during a period calculated on the rentability of the investment (maximum 15 years) OR 20€/MWh in any case BRUSSEL : Market price : ??? (no transaction yet) Maximum price : price of penalty = 100 €/GC Minimum price : 20€/MWh Duration [years that investor is entitled support] WALLONIA : 15 years BRUSSEL : 10 years an to Comments WALLONIA : 1 GC = 456 kg CO2 avoided maximum 2 GC / MWh BUT reduction of the amount of green certificates during the last 5 years calculated on the rentability of the investment in order to insure a 12% VAT 65 €/GC = regional minimum price on basis of a convention with the grid operator BRUSSEL : 1 GC = 217 kg CO2 avoided maximum 2 GC/MWh for installations > 1 MWe (no maximum under) - 5 GC/MWh for biomethanisation ALL THREE : 20 €/MWh = TSO undertake to buy any green certificate for biomass electricity at this price 25 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Resource Support kWh] wind WALLONIA : Market price : 90 €/GC Maximum price : price of penalty = 100 €/GC Minimum price : 65 €/GC during a period calculated on the rentability of the investment (maximum 15 years - usually 10 years) OR 50 €/MWh BRUSSEL : No market price : ??? (no transaction yet) Maximum price : price of penalty = 100 €/GC Minimum price : 50€/MWh Hydro wind solar level [€cents/ Duration [years that investor is entitled support] WALLONIA : 15 years BRUSSEL : 10 years an to Comments WALLONIA : 1 GC / MWh BUT reduction of the amount of green certificates during the last 5 years calculated on the rentability of the investment iun order to insure a 12% VAT 65 €/GC = regional minimum price on basis of a convention with the grid operator - 50 €/MWh = TSO undertake to buy any green certificate for onshore wind electricity at this price BRUSSEL : 1 GC / MWh ALL THREE : 50 €/MWh = TSO undertake to buy any green certificate for wind electricity at this price WALLONIA : Market price : 90 €/GC Maximum price : price of penalty = 100 €/GC Minimum price : 65 €/GC during a period calculated on the rentability of the investment (maximum 15 years) OR 50 €/MWh BRUSSEL : No hydro Minimum price : 50€/MWh WALLONIA : 15 years No market price (no market), only a minimum price of 107 €/MWh during 10 years for the first 256 MW installed 90 €/MWh during 20 years for the rest of the installation and for all the power during the last 10 years WALLONIA : Market price : 90 €/GC Maximum price : price of penalty = 100 €/GC Minimum price : 65 €/GC during 15 years OR 150 €/MWh BRUSSEL : No market price : ??? (no transaction yet) Maximum price : price of penalty = 100 €/GC Minimum price : 150€/MWh 20 years 1 GC = 1 MWh Federal minimum price on basis of a convention with the TSO WALLONIA : 15 years BRUSSEL : 10 years WALLONIA : 7 GC / MWh from 0 to 5 kWp - 5 GC/MWh >5 kWp till 7 kWp - 1 GC/kW > 7 kWp 65 €/GC = regional minimum price on basis of a convention with the grid operator BRUSSEL : 7,28 GC/MWh from 0 to 20 m² - 5,46 GC/MWh > 20 m² till 60 m² - 3,64 GC/MWh > 60 m² WALLONIA : 1 GC / MWh BUT reduction of the amount of green certificates during the last 5 years calculated on the rentability of the investment iun order to insure a 12% VAT 65 €/GC = regional minimum price on basis of a convention with the grid operator - 50 €/MWh = TSO undertake to buy any green certificate for onshore wind electricity at this price BRUSSEL : 1 GC / MWh ALL THREE : 50 €/MWh = TSO undertake to buy any green certificate for hydro electricity at this price ALL THREE : 150 €/MWh = TSO undertake to buy any green certificate for PV electricity at this price Source:EDORA Investment support schemes for RES-e 26 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Investment subsides for all RES-e technologies and additional support for solar PV. Resource All RES-E technologies Support level [%/total investment] WALLONIA : 40 % of eligible investment (see the rules of the Community guidelines on state aid for environmental protection OJEC, 2001/C27/03, 3.2.2001) BRUSSEL : investment state aid for energy economy : 20 % of total investment + specific aid concerning RE for the need of the building : 40% of total investment (maximum 200.000 €/building and per year + European rule "de minimis") Additional investment support for solar WALLONIA : for private person : 20% of total investment with a maximum of 3500 € / PV system BRUSSEL : for private person 50 % of total investment with a maximum of 3000 € / PV system Comments WALLONIA : e.g. 13 % on average for wind energy till around 37 % for P.V. (indicative figures) Fiscal Incentives RES-e technologies benefit from a tax deduction Resource Support level [% deduction from taxable profits] All RES-E technologies tax deduction of 13,5 % for all investment on equipment in order to reduce energy consumption All RES-E technologies tax reduction of 40% with a maximum of 1280 € for investment in 2006 (exercise 2007) and 3.380 EUR in 2007 (2008) Comments Additional primes by the different regions are cumulative Private person : for PV Companies : for all RES and CHP installation Others Resource Technology Wind Biomass onshore digestion Support level [Unit or %] WALLONIA : 50% of the study for pre-feasibility (wind measurement) with a maximum of 5.000 € / site WALLONIA : 50 % of the study for pre-feasibility with a maximum of 2500 € 27 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Support for RES Heating and Cooling Renewables for heating and cooling are mainly support by investment subsidies and fiscal incentives in Belgium. As of 2006, the Walloon government awarded grants for the installation of micro-cogeneration systems and high-efficiency wood-burning furnaces and heating boilers. Investment Subsidies Resource Technology Support level [%/total investment] WALLONIA : 40 % of eligible investment (see the rules of the Community guidelines on state aid for environmental protection OJEC, 2001/C27/03, 3.2.2001) BRUSSEL : investment state aid for energy economy : 20 % of total investment + specific aid concerning RE for the need of the building : 40% of total investment (maximum 200.000 €/building and per year + european rule "de minimis") Biomass Combustion small scale furnace Geothermal Heat pump WALLONIA : from 250 € to 3500 € depending on the power of the boiler, the system for loading (manual or automatic), the nature of biomass used (wood or crops) and the nature of the investor (private or public) WALLONIA : 75 % of the invoice BRUSSEL : 50% of the invoice Solar Thermal All RES-HC technologies WALLONIA : 1.500 € for all installation from 2 m² to 4 m² + 100 € / m² for additional surface BRUSSEL : 50% of the invoice maximum 50 % of total investment - maximum investment of 25.000 € WALLONIA : maximum 1500 € for the heating of a new building and 750 € for water heating of any building BRUSSEL : maximum 5000 € for the heating of a building and 2500 € for water heating WALLONIA : maximum 6.000 € + possibility t be combined with other incentive if total amount of the aid is maximum 75% of total investment BRUSSEL : maximum 6000 € for the heating of a building and 300 € for water heating Fiscal Incentives 28 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential RES H&C technologies benefit from a tax deduction from taxable profits. Resource All RES-HC technologies All RES-HC technologies Support level [% deduction from taxable profits] Tax deduction of 13,5 % for all investment on equipment in order to reduce energy consumption Tax reduction of 40 % of total investment (invoice during the fiscal exercise) Comments maximum 3.380 EUR in 2007 (exercise 2008) Private person : for the following investment : - replacement for a old boiler and maintenance of a boiler - solar water heating system - geothermal Companies : for all RES and CHP installation Support for Biofuels Quota Obligations For the production of bio ethanol, a yearly quota of 250 million litres has been allocated on October 2006 and until 2013, to 3 companies. For the production of bio diesel, the Belgian Government decided to allocate production quotas with reduced excise duties to three Flemish and one Walloon companies. These four producers must be ready to deliver adequate bio diesel supply to the Belgian market from September 1 st , 2007 Resource Biofuels Quota in % (per year) 2% 2005 5.75% in 2010 Tax exemption The Act of 10 June 2006 concerning biofuels reduces the excise duties on diesel oil containing at least 3.37 % biodiesel and on gasoline containing at least 7 % ethanol of non-chemical nature. Furthermore, this Act allows the regional public transport companies to use a higher exempted percentage of biofuels. The Royal Decree of 10 March 2006) fixes the general conditions for the exemption of excise duties for pure rapeseed . Resource Total support level (= tax exemption reduction of VAT to be paid) [€cents/litre] incl. biodiesel About 35c€/l (in fact tax on fossil diesel has been increased and biodiesel exempted, but only for blend lower than 5%) ethanol About 62 c€/l (same principle as for biodiesel. Increased tax on gasoline and no tax on ethanol if blended at 7%) pure plant oil about 35 c€/l (full tax exemption upon certain strict conditions) Maximum amount per year eligible (in case of tender system) 380 000 m3 start year End year Duration [years of support entitled] Nov. 2006 2013 almost 7 250 000 m3 Oct, 2007 2013 6 April 2006 unlimited (until law is changed) 29 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Call for Tenders A federal call for tenders will be used to market: • Biodiesel: 286.000 m3 from 1 November 2006 until 30 September 2007 • Biodiesel: 2.279.000 m3 from 1 October 2007 until 30 September 2013 • Ethanol: 1.485.000 m3 from 1 October 2007 until 30 September 2013 Annex I. RES Electricity Potentials Annex II RES Bioenergy Potentials Sources European Commission Factsheets by Country http://ec.europa.eu/energy/energy_policy/facts_en.htm Member States Reports in the framework of the Directive 2001/77/EC on renewable electricity http://ec.europa.eu/energy/res/legislation/electricity_member_states_en.htm Member States Reports in the framework of the Directive 2003/30/EC on biofuels http://ec.europa.eu/energy/res/legislation/biofuels_members_states_en.htm EDORA http://www.edora.be/ ODE Vlaanderen http://www.ode.be/ Valbiom, Belgium http://www.valbiom.be/ EurObserv’er Barometer http://www.energies-renouvelables.org/observ-er/sig/eufores/sig.asp In the framework of the EU co –funded project: RES 2020: Monitoring and Evaluation of the RES Directives implementation in EU27 and policy recommendations to 2020 The sole responsibility for the content of this publication lies with the authors. It does not represent the opinion of the Community. The European Commission is not responsible for any use that may be made of the information contained therein. Drafted in March 2008. 30 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Annex I RES Electricity Potentials Description Unit 2005 2010 2015 2020 Total Wind Maximum Wind onshore Maximum Wind offshore Maximun Solar PV Maximum solar thermal Total Hydro Maximum conventional hydro of which Maximum run of river Maximum Pumped Storage and mixed hydro Maximum Wave & Tide power plants Maximum geothermal conventional power plants Maximum geothermal hot dry rock power plants Maximum biomass power plants (conventional+CHP) Maximum biogas power plants (conventional+CHP) Maximum Bio waste power plants (CHP) MW MW MW TWh MW MW MW MW 167 167 0.0 1119 782 337.0 1952 1158 794 6086 2286 3800 1497 109 109 3034 1534 1500 0.58 0 1500 112 122 1388 1388 1388 MW TWh 0.15 MW 0 MW 0 TWh 6.23 TWh 3.18 TWh 7.25 2025 2030 1500 112 122 The previous table present the data that have been gathered in the framework of the RES2020 project in order to be used in the modelling. The data have been collected • Through EREC and its Members • Through a revision of previous EU funded projects and reports (GreenX, OPTRES) • Through the partners of the project The data have been discussed in the framework of the REWG of the EnR with the country experts. The tables present an estimation of the technical potential that could be utilized as an upper bound by 2010, 2015, 2020 and 2030. As technical potential we are considering: • the future installed capacity of wind turbines without taking in mind financial issues at a "reasonable" wind speed as a possible upper limit in the development of the installed capacity over time. • the future installed capacity of hydro considering technical issues only and a possible upper limit in the development of the installed capacity over time. For some technologies potential may be unlimited (e.g. photovoltaics), so we are using upper bound limits within the relevant time frames. 31 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Annex II RES Bioenergy Potentials TABLE 1 Potentials agricultural bioenergy Description Sugar crops: sugar beet Step 1 Step 2 Step 3 Step 4 Starch crops: rye, oats, maize, wheat, barley, etc Step 1 Step 2 Step 3 Step 4 Grassy crops: switchgrass, miscanthus, sweet sorghum, etc Step 1 Step 2 Step 3 Step 4 Woody crops: willow, poplar Step 1 Step 2 Step 3 Step 4 Oil crops: sunflower, rapeseed Step 1 Step 2 Step 3 Step 4 Unit LimType Potential Cost Potential Cost Potential Cost Potential Cost [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] UP Potential Cost Potential Cost Potential Cost Potential Cost [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] UP Potential Cost Potential Cost Potential Cost Potential Cost [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] UP Potential Cost Potential Cost Potential Cost Potential Cost [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] UP Potential Cost Potential Cost Potential Cost Potential Cost [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] UP 2000 2001 2005 2010 2015 2020 2025 2030 6,0 8,2 6,0 8,2 6,0 8,2 10,0 7,95 12,0 7,7 15,0 7,48 18,0 7,28 21,0 7,1 3,0 8,5 3,0 8,5 3,0 8,5 5,0 8 6,0 7,6 7,0 7,26 9,0 6,98 10,0 6,73 8,0 5,8 8,0 5,8 8,0 5,8 13 5,4 17 5,1 22 4,8 28 4,6 34 4,4 8,0 3,7 8,0 3,7 8,0 3,7 13,0 3,46 17,0 3,25 21,0 3,08 26,0 2,95 32,0 2,83 2,0 8,4 2,0 8,4 2,0 8,4 4,0 8,1 5,0 7,9 6,0 7,7 7,0 7,5 8,0 7,3 Source UP UP UP UP UP UP UP UP UP UP UP UP UP UP UP 32 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential TABLE 2 Potentials bioenergy from wastes Description Agricultural waste Unit LimType Potential Cost [PJ/a] [€/GJ] UP Potential Cost [PJ/a] [€/GJ] UP Potential Cost [PJ/a] [€/GJ] Potential [PJ/a] Cost [€/GJ] Potential Cost 2000 2001 2005 2010 2015 2020 2025 2030 Source 9 according to Perez, P.S., et al. (2006): The role of renewable energy technologies in securing electrical supply in Belgium. K.U. Leuven ESAT/ELECTA, March 2006. BIONET 2 (2007): Biomass fuel trade in Europe. Summary Report VTT-R-03508-07, VTT, Finland, March 2007, p. 11. 4 according to Perez, P.S., et al. (2006): The role of renewable energy technologies in securing electrical supply in Belgium. K.U. Leuven ESAT/ELECTA, March 2006. BIONET 2 (2007): Biomass fuel trade in Europe. Summary Report VTT-R-03508-07, VTT, Finland, March 2007, p. 11. 11 12 13 UP 9 10 10 UP 17 18 19 [PJ/a] [€/GJ] UP 22 24 25 EEA Report 7 2006 Potential Cost [PJ/a] [€/GJ] UP 6 6 6 EEA Report 7 2006 Potential Cost [PJ/a] [€/GJ] UP 4 4 4 EEA Report 7 2006 Potential Cost Potential Cost Potential Cost [PJ/a] [€/GJ] [PJ/a] [€/GJ] [PJ/a] [€/GJ] UP UP 4 4 4 EEA Report 7 2006 UP 4 4 4 EEA Report 7 2006 Potential Cost [PJ/a] [€/GJ] UP Forestry residues Wood processing residues Municipal solid waste EEA Report 7 2006 EEA Report 7 2006 1 according to Perez, P.S., et al. (2006): The role of renewable energy technologies in securing electrical supply in Belgium. K.U. Leuven ESAT/ELECTA, March 2006. Wet manures Black liquor Sewage sludge Other waste wood households packageing demolition Dry manures 33 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential 4. BULGARIA 34 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Due to the lack of support mechanisms, in the last years, renewable energy sources (RES) in Bulgaria are not broadly developed. However, good potential exist for biomass, wind and geothermal energy. Solar potential exists in the East and South of Bulgaria. Bulgaria has recently adopted a new feed-in tariff, its effective implementation with measures to non-discriminatory access to the power grid and simplified licensing procedures will be the basis for a market uptake of RES in the country. Currently, the legal framework to allow non-discriminatory access to the power grid for independent renewable energy producers remains too vague to increase investor confidence. However, various wind farms however are at planning stage. KEY FIGURES • The share of RES in total primary energy consumption was of 4.5% in 2006. The share of RES in the gross final energy consumption was 9.4 % in 2005. • The share of RES in the gross electricity production was 11.8% in 2005 (thanks to the contribution of hydropower, currently, almost the only source of RES-e in Bulgaria). • The share of biofuels in the transport sector in 2006 was 0 %. • Bulgaria energy dependence on imports amounts to 70 % in 2005. RES POLICY A new Renewable and Alternative Energy Sources and Biofuels Act were adopted in June 2007. Mandatory targets set by the newly proposed RES Framework Directive from 20087 • 16 % share of RES on the final consumption of energy in 2020. • At least 10% share of biofuels of final consumption of energy in transport in that Member State in 2020. Indicative Target set by the RES- electricity European Directive from 20018 • 11 % Share of RES on gross electricity consumption by 2010 Indicative Target set by the European Biofuels Directive from 20039 • Biofuels consumption of 5.75% of petrol and diesel use for transport in 2010. National Commitments • The goal of Bulgaria’s National Programme on Renewable Energy Sources is to significantly increase the share of non-hydropower RES in the energy mix. The National long-term programme for support of RES utilization 2005-2015 aims at achieving a 6% RES share in 2015. • There is no national target/commitment for heating and cooling. Progress towards the Targets Bulgaria’s RES-e share in gross electricity consumption increased from 7% in 1997 to 11.8 in 2005. Large-scale hydro power is currently the main source of RES-e. 7 Proposal for a Directive of the European Parliament and the Council on the promotion of the use of energy from renewable sources from January 2008(the targets agreed but the directive is on legislative process) 8 Directive 2007/71/EC on the promotion of electricity produced from renewable energy sources in the internal electricity market. Currently in force, sets targets up to 2010. 9 Directive 2003/30/EC on the promotion of the use of biofuels or other renewable fuels for transport currently in force, sets targets up to 2010, with indicative targets by 2005. 35 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Support for RES Electricity Feed in tariff In 2007 Bulgaria introduced new feed in tariff for Renewable Electricity. The State Energy and Water Regulatory Commission has assumed the commitment to purchase alternative energy at a higher tariff and for the duration of 12 years. Suppliers refusing to accept renewably-produced electricity would be fined up to 500 000 (euros) in response to renewable power producers' reports of difficulty in grid connection. Resource Technology Support level [€cents/ kWh] Wind onshore 120 лв./ МWh. Wind Wind New wind plants in operation after 01.01.2006 without capacity limitations:• With working hours per year up to 2250 New wind plants in operation after 01.01.2006 without capacity limitations:• With working hours per year over to 2250 Feed-in tariff or premiu m? Start year Duration [years that an investor is entitled to support] feed- in 2006 12 years depending on the type of installation and capacity. feed in 2006 12 years Depends on the installed capacity feed in 2006 12 years feed in 2006 12 years 175 лв./ МWh. 156 лв./ МWh. Solar PV installed capacity up to 5kW Solar PV With installed capacity over 5kW 718 лв./ МWh. Small Hydropower plant up to 10 MW up to 10 MW 80.00 лв./МWh. 782 лв./ МWh. Biomass for producing electricity Heat power produced by CHP installation Comments between 162 and 215 лв./ МWh., depending on the art of used biomass. 67 – 149лв./MWh, depending on the producer. The RES Act establishes a period of 12 years. The exchange rate is following - 1 Euro - 1,9583 Bg leva. VAT is excluded from the above prices. Source: Ministry of Economy The New Energy Act stipulates that producers of energy from RES will be able to conclude contracts with the public supplier of energy i.e. the National Electricity Company for a period of 12 years. This is valid until 2010. After this period the Ministry of Economy and Energy is obliged (within one year period - end of 2011) to elaborate and submit for approval a new market mechanism for price-settings. 36 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Support for RES heating and cooling Investment subsidies Bulgarian Energy Efficiency and Renewable Energy Credit Line established investment subsidies for RES H&C technologies. Resource Support level [%/total investment] RES Heating technologies 20 per cent grant Support for Biofuels The national long-term programme for the use of biofuels in transport 2007-2020 has been recently drafted. Quota Obligations Resource Biofuels Quota in % (per year) 2% in 2008 3.5% in 2009 5.75% in 2010 8% in 2015 10 % in 2020 Tax exemption for biofuels Biofuels, if not blended with other fuels, have been exempt from excise tax since 2005. (note: not all types of bioethanol are included). There are also plans for the compulsory mixing of biofuels with liquid fuels of petroleum origin to be carried out at tax warehouses licensed under the Excise Duties and Tax Warehouses Act. Support for all RES In order to promote RES, Bulgaria is currently implementing the Bulgarian Energy Efficiency and Renewable Energy Credit Line (BEERECL). RES projects are eligible for a 20% grant. Loans worth more than EUR 12.8 million have already been granted. Annex I. RES electricity Potentials Annex II RES Bioenergy Potentials 37 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Sources European Commission Factsheets by Country http://ec.europa.eu/energy/energy_policy/facts_en.htm Member States Reports in the framework of the Directive 2001/77/EC on renewable electricity http://ec.europa.eu/energy/res/legislation/electricity_member_states_en.htm Member States Reports in the framework of the Directive 2003/30/EC on biofuels http://ec.europa.eu/energy/res/legislation/biofuels_members_states_en.htm Energy Efficiency Agency. Ministry of Economy and Energy http://www.seea.government.bg Black Sea Regional energt Centre http://www.bsrec.bg/ In the framework of the EU con –funded project: RES 2020: Monitoring and Evaluation of the RES Directives implementation in EU27 and policy recommendations to 2020 The sole responsibility for the content of this publication lies with the authors. It does not represent the opinion of the Community. The European Commission is not responsible for any use that may be made of the information contained therein. Drafted in March 2008 38 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Annex I. RES electricity Potentials Description Unit 2005 2010 2015 2020 WindTotal Maximum Wind onshore Maximum Wind offshore Maximum solar PV Maximum solar thermal Total Hydro Maximum conventional hydro of which Maximum run of river Maximum Pumped Storage hydro Maximum Wave power plants Maximum tide power plants Maximum geothermal conventional power plants Maximum geothermal hot dry rock power plants Maximum biomass power plants (conventional+CHP) Maximum biogas power plants (conventional+CHP) Maximum municipal waste power plants (CHP) Maximum industrial waste power plants (CHP) MW MW MW MW MW MW MW MW MW TWh TWh 10 245 650 1150 0.0 0 0 0 1950 1380 40 570 2040 1470 50 570 2470 1690 60 780 2025 2030 3450 0 0 2710 1720 90 990 MW MW TWh TWh TWh TWh The previous tables present the data that have been gathered in the framework of the RES2020 project in order to be used in the modelling. The data have been collected • Through EREC and its Members • Through a revision of previous EU funded projects and reports (GreenX, OPTRES) • Through the partners of the project The data have been discussed in the framework of the REWG of the EnR with the country experts. The tables present an estimation of the technical potential that could be utilized as an upper bound by 2010, 2015, 2020 and 2030. As technical potential we are considering: • the future installed capacity of wind turbines without taking in mind financial issues at a "reasonable" wind speed as a possible upper limit in the development of the installed capacity over time. • the future installed capacity of hydro considering technical issues only and a possible upper limit in the development of the installed capacity over time. For some technologies potential may be unlimited (e.g. photovoltaics), so we are using upper bound limits within the relevant time frames. 39 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential TABLE 1 Potentials agricultural bioenergy Description Sugar crops: sugar beet Step 1 Step 2 Step 3 Step 4 Starch crops: rye, oats, maize, wheat, barley, etc Step 1 Step 2 Step 3 Step 4 Grassy crops: switchgrass, miscanthus, sweet sorghum, etc Step 1 Step 2 Step 3 Step 4 Woody crops: willow, poplar Step 1 Step 2 Step 3 Step 4 Oil crops: sunflower, rapeseed Step 1 Step 2 Step 3 Step 4 Unit LimType 2000 2001 2005 2010 2015 2020 2025 2030 Potential Cost Potential Cost Potential Cost Potential Cost [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] UP 15,0 6,3 15,0 6,3 15,0 6,3 28,0 6,36 35,0 6,46 43,0 6,65 48,0 6,96 53,0 7,42 Potential Cost Potential Cost Potential Cost Potential Cost [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] UP 59,0 7,2 59,0 7,2 59,0 7,2 113,0 6,91 144,0 6,69 175,0 6,52 194,0 6,4 214,0 6,34 Potential Cost Potential Cost Potential Cost Potential Cost [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] UP 140,0 3,2 140,0 3,2 140,0 3,2 272 3,0 352 2,9 431 2,8 485 2,8 538 2,8 Potential Cost Potential Cost Potential Cost Potential Cost [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] UP 116,0 2,0 116,0 2,0 116,0 2,0 225,0 1,89 291,0 1,83 357,0 1,81 401,0 1,84 445,0 1,92 Potential Cost Potential Cost Potential Cost Potential Cost [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] UP 59,0 5,4 59,0 5,4 59,0 5,4 112,0 5,3 143,0 5,1 174,0 5,0 193,0 5,0 213,0 4,9 Source UP UP UP UP UP UP UP UP UP UP UP UP UP UP UP 40 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential TABLE 2 Potentials bioenergy from wastes Description Agricultural waste Unit LimType Potential [PJ/a] UP Cost [€/GJ] Potential Cost [PJ/a] [€/GJ] UP Potential Cost [PJ/a] [€/GJ] UP Potential Cost [PJ/a] [€/GJ] UP Potential Cost [PJ/a] [€/GJ] UP Potential Cost [PJ/a] [€/GJ] UP Potential Cost [PJ/a] [€/GJ] UP Potential Cost Potential Cost Potential Cost [PJ/a] [€/GJ] [PJ/a] [€/GJ] [PJ/a] [€/GJ] UP Potential Cost [PJ/a] [€/GJ] UP 2000 2001 2005 2010 2015 2020 2025 2030 Source 5 12 24 36 48 23 28 33 38 44 1 2 3 4 4 ACCESS (2006): Accelerated Penetration of Small-Scale Biomass and Solar Technologies - Maps and databases on the biomass potential. Intelligent Energy Europe, EC, 2006. 1 2 2 2 Georgiva, V. (2007): Biomass energy potential in Bulgaria. Ministry of economy and energy Bulgaria, JI and biomass cooperation, Leipzig, Germany, 6 March 2007. 1 2 3 Georgiva, V. (2007): Biomass energy potential in Bulgaria. Ministry of economy and energy Bulgaria, JI and biomass cooperation, Leipzig, Germany, 6 March 2007. 0,4 0,4 Georgiva, V. (2007): Biomass energy potential in Bulgaria. Ministry of economy and energy Bulgaria, JI and biomass cooperation, Leipzig, Germany, 6 March 2007. http://bioenergy-in-motion.com/index.php?id=3&sId=15 ACCESS (2006): Accelerated Penetration of Small-Scale Biomass and Solar Technologies - Maps and databases on the biomass potential. Intelligent Energy Europe, EC, 2006. Forestry residues 13 18 ACCESS (2006): Accelerated Penetration of Small-Scale Biomass and Solar Technologies - Maps and databases on the biomass potential. Intelligent Energy Europe, EC, 2006. http://bioenergy-in-motion.com/index.php?id=3&sId=15 Wood processing residues Municipal solid waste Wet manures Black liquor Sewage sludge Other waste wood households packageing demolition UP UP Dry manures 41 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential 5. CYPRUS 42 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Cyprus has no indigenous sources of energy and at the moment, it is almost entirely dependent on imported energy. In year 2006, imports of oil products, coal and pet coke for home consumption, amounted to 580 million Euros, representing approximately 18% of the country’s domestic imports. Energy is therefore, of vital importance to the island’s economy. The energy consumption in Cyprus is predominantly oil-based and amounts to 92.6% of the total energy consumption. Other forms of commercial energy used are Solid Fuels (coal and pet coke) for the production of cement, amounting to 5.9 % of the total energy consumption. The remaining 1.5% is mainly solar energy and at the moment is the only substantial contribution of renewable energy sources, in the country’s final energy consumption. The high costs of imported energy are a burden on the economy of the country. Renewable energy sources (RES) constitute the only indigenous source of energy in Cyprus capable of making a significant contribution to the island’s energy balance. However, until 2005, measures that supported renewable energy production, such as the New Grant Scheme, were not very ambitious and targets are not being met. In 2006, a New Enhanced Grant Scheme was agreed upon and in 2007 feed in tariffs for RES-e were set. Cyprus is one of the leading countries in the use and construction of solar water heating systems. 90% of households are equipped with solar water heaters and 53% of hotels have installed large solar water heating systems. According to ESTIF (European Solar Industry Federation), Cyprus has the larger number of solar collector installations per capita. KEY FIGURES • The share of RES in total primary energy consumption was of 1.76% in 2006 (with important contribution of solar thermal). • The share of RES in the gross final energy consumption was 2.9 % in 2005. • The share of RES electricity generation is minimal 0.03 % in 2006 (all from PV). • The share of biofuels in the transport sector in 2006 was 0. • Cyprus energy dependence on imports amounts to 96 % in 2005. RES POLICY In order to promote the uptake of RES, the Cyprus government adopted a framework for support measures: Action Plan for the Promotion of Renewable Energy Sources, 2002-2010, which is currently is considered to be revised The Action Plan provides the creation of a special financing mechanism to increase the exploitation of renewable energy sources. The Action Plan sets targets for the increase of the utilisation/contribution of the country’s main renewable energy sources, to the total electricity consumption and overall to the total energy balance. It includes a financial mechanism to encourage renewable energy sources and proposes strategies to eliminate administrative obstacles. The Action Plan covers the period 2002 – 2010. RES TARGETS Mandatory targets set by the newly proposed RES Framework Directive from 200810 • 13% share of RES on the final consumption of energy in 2020. • At least 10% share of biofuels of final consumption of energy in transport in that Member State in 2020. Indicative Target set by the RES- electricity European Directive from 200111 • 6 % Share of RES on gross electricity consumption by 2010 10 Proposal for a Directive of the European Parliament and the Council on the promotion of the use of energy from renewable sources from January 2008(the targets agreed but the directive is on legislative process) 11 Directive 2007/71/EC on the promotion of electricity produced from renewable energy sources in the internal electricity market. Currently in force, sets targets up to 2010. 43 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Indicative Target set by the European Biofuels Directive from 200312 • Biofuels consumption of 5.75% of petrol and diesel use for transport in 2010. National commitments • The Action Plan for the Promotion of RES determines that the contribution of RES to the total energy consumption of Cyprus should rise from 4.5% in 1995 to 9% in 2010. • As an indicative target, 1% biofuel by energy content in 2005 has been set. • There is no national target/commitment for heating and cooling. Progress towards the Targets At present, there is a 6% target for RES electricity contribution, by the year 2010, which is considered to be attainable. It is envisaged that by proper implementation of the relevant legislation that will reduce the administrative obstacles, the target will be achieved. The target for biofuels of 1% by the end of 2005 was not met. The use of biofuels in Cyprus was still at 0% in 2006. Support for RES electricity In January 2006, Cyprus introduced a new scheme13, which allows investors to benefit from subsidies on running investments and no longer on initial investments. This leads therefore on higher tariffs (for the duration of 15 years): Feed in tariff Resource hydro Technology small wind small (up to 30kW) Feed-in tariff or premium? feed in Start year 2007 feed-in 2007 Years* 0.0632 €/ kWh feed-in 2006 15 years 0.148-0.319 €/ kWh ** feed-in 2007 15 years Support level [€/ kWh] 0.0632 €/ kWh 0.0632 €/ kWh Biomass and biogas PV Capacity up to 20 kW connected to the network Duration [years that an investor is entitled to support] - Source: Ministry of Industry, Commerce and Tourism * This situation applies for 5 years from the wind turbine’s commissioning. For the next 5 year period, the feed-in price payable to the owner depends on the turbine’s average performance over the first five years of its operation **(PV) Small photovoltaic systems. Maximum capacity 20 KW, connected to the grid. Option A: • for households and other entities and enterprises not engaged in economic activities the grant is set to 55% of eligible costs. The maximum amount of grant €64,926.85. • For enterprises the grant is 40% of eligible costs. The maximum amount of grant is €47,840.84. Subsidy 20.5 euro cents /KWh - 6.32 euro cents= 14.18 euro cents/KWh. 12 Directive 2003/30/EC on the promotion of the use of biofuels or other renewable fuels for transport Currently in force, sets targets up to 2010, with indicative targets by 2005. 13 http://www.cie.org.cy/sxediaxorigioneng.htm 44 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Option B: • for households and other entities and enterprises not engaged in economic activities 0% grant and increased subsidy: 38.27 euro cents/KWh- 6.32 euro cents= 31.95 euro cents /KWh • For enterprises 0% grant and increased subsidy: 33.49 euro cents/KWh - 6.32 euro cents = 27.17 euro cents /KWh Investment Subsidies Investment subsides for all RES-e technologies: Resource PV Hydro wind Wind Biomass and Biogass Technology Small up to 20 KW small Support level [%/total investment] 55% of eligible costs for households and 40% for companies 40% of eligible costs for companies Comments For Small and Medium Size (SMS) enterprises, the grant will be 30% in the form of regional aid plus de minimis aid. In any case the total amount from both forms of aid should not exceed 40% of eligible costs. The maximum amount of grant is set to €102,516. Price for generated KWh is 6.32-euro cents. No running support is offered. Wind turbines of rated power <30kW or windmills for water pumping 40% (for companies) to 55 % (for households) of the eligible costs for the purchase and installation For enterprises 40%, Maximum amount of grant €41,006.43 per unit. For natural persons 55%, Maximum amount of grant €51,258.00 per unit. The produced electricity is sold at 6.32 euro cents/KWh to the Electricity Authority of Cyprus . No operating support offered. Windmills Windmills. For enterprises 40%, Maximum amount of grant €17,086.00 per unit. For natural persons 55%, maximum amount of grant €25,629.00 per unit. Electricity production from Biomass and Biogas from Spaces Sanitary Burial of Litter From Biomass: Systems up to 5MW. Subsidy 9.48 up to 12.3 euro cents / KWh according to thetype and size of the installation From Biogas: Systems up to 600ΚW. Subsidy 6.83 up to 9.1 euro cents / KWh according to the type and size of the installation Small hybrid/stand alone PV systems (not connected to the grid), of up to 20KWp capacity. • for households and other entities and enterprises not engaged in economic activities the grant is set to 55% of eligible costs. The maximum amount of grant €64,926.85. • for enterprises the grant is 40% of eligible costs. The maximum amount of grant is €47,840.84 45 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Desalination using RES • For Small and Medium Size (SMS) enterprises, the grant will be 30% in the form of regional aid plus de minimis aid. In any case the total amount from both forms of aid should not exceed 40% of eligible costs. The maximum amount of grant is €170,860 Co-generation of heat and electricity. • For enterprises 30%, Maximum amount of grant €170,860. Day Rate: 2.92 euro cents Night Rate: 2.56 euro cent [Day=07:00-23:00 Night=23:00-07:00] • For households and other entities and enterprises not engaged in economic activities 45%, Maximum amount of grant €85,430 Day Rate: 6.53 – 2.92 euro cent = 3.61 euro cents/KWh Night Rate: 5.72 – 2,56 euro cent = 3.16 euro cents/KWh [Day=07:00-23:00 Night=23:00-07:00] Biomass, landfill and sewage waste utilization • 10 to 40% according to the area of installation and the size of the enterprise. The maximum amount of grant is €683,441. 6.32 cent per KWh. No operating support is offered Support for RES Heating and Cooling Investment Subsidies Investment subsides for all RES-H&C technologies: Resource Support level [%/total investment] Comments Solar Thermal 30-45% of investment in solar systems for central water heating systems Depends on status:companies or households- Solar Thermal 40-55% of investment in space heating and cooling Depends on status:companies or households Biomass 10 to 30% of the eligible costs depending on the size of the company Precondition: investement is materialised in a transition selectable for regional funding zone for 2007-2008. Maximum eligible costs: 683 4405 euros Solar Thermal Solar Thermal Biomass Geothermal heat-pumps for space heating/cooling. 20% of eligible cost for domestic solar system - replacement 30% to 45% of the eligible costsHeating system for swimming pools Central systems for heating and cooling - 55% of the eligible cost for households For enterprises 30%, Maximum amount of grant €170,860 For Households and nonprofit organizations 30%, Maximum amount of grant €15,377 Maximum grant: 17086 euros to 25 629 euros Maximum amount grant €18,795 46 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Solar Thermal Systems Installation or/and replacement of central water heating systems. • For enterprises 30% of eligible costs. Maximum amount of grant €17,086.00 per unit. For natural persons 45%, Maximum amount grant €25,629.00 per unit. Installation or/and replacement of space heating and cooling. • For enterprises 40% of the eligible costs. Maximum amount of grant €85,430.00 per unit. For natural persons 55%, Maximum amount grant €117,466.00 per unit. Domestic solar systems new and / or replacement • €341.73 for each forced circulation system and €170.86 for thermosyphonic systems. Installation and / or replacement of swimming pool water, Solar heating systems. • For enterprises 30% of eligible costs. Maximum amount of grant €17,086.00 per unit. • For natural persons 45%, Maximum amount grant €25,629.00 per unit. Support for biofuels An exemption of excise duty for Biofuels exits. Investment Subsidies Resource Support level [%/total investment] biofuels 15 to 35 % of the eligible costs depending on the size of the enterprise Comments Precondition: investment is materialised in a selectable for regional funding zone for 20072008. Maximum eligible costs: 6834405 euros Support for all RES A levy of 0,13 Cy Cent/KWh 0,13 KWh (0.22 Euro cents/KWh) is imposed on all electricity consumed. The income is used, to finance activities aimed to promote the use of RES and RUE. (It is estimated that more than £42 million Cy pounds will be collected by year 2010 to support and promote investments on RES and energy efficiency ). Annex I . RES electricity Potentials Annex II RES Bioenergy Potentials 47 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Sources: European Commission Factsheets by Country http://ec.europa.eu/energy/energy_policy/facts_en.htm Member States Reports in the framework of the Directive 2001/77/EC on renewable electricity http://ec.europa.eu/energy/res/legislation/electricity_member_states_en.htm Member States Reports in the framework of the Directive 2003/30/EC on biofuels http://ec.europa.eu/energy/res/legislation/biofuels_members_states_en.htm Cyprus Institute of energy http://www.cie.org.cy/ Ministry of Energy Commerce and Tourism http://www.mcit.gov.cy/mcit/mcit.nsf/dmlenergyservice_en/dmlenergyservice_en?OpenDocument EurObserv’er Barometer http://www.energies-renouvelables.org/observ-er/sig/eufores/sig.asp In the framework of the EU co –funded project: RES 2020: Monitoring and Evaluation of the RES Directives implementation in EU27 and policy recommendations to 2020 The sole responsibility for the content of this publication lies with the authors. It does not represent the opinion of the Community. The European Commission is not responsible for any use that may be made of the information contained therein. Drafted in March 2008 48 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Annex I . RES electricity Potentials Description Unit 2005 2010 2015 2020 Total Wind Maximum Wind onshore Maximum Wind offshore Maximun PV Maximum solar thermal Total Hydro Maximum conventional hydro of which Maximum run of river Maximum Pumped Storage hydro Maximum Tide & Wave power plants Maximum geothermal conventional power plants Maximum geothermal hot dry rock power plants Maximum biomass power plants (conventional+CHP) Maximum biogas power plants (conventional+CHP) Maximum municipal waste power plants (CHP) MW MW MW TWh MW MW MW MW MW 0 110 200 250 350 0.0 0.0 0 0 0.0 0 0 0 0.02 0 0 TWh 0.24 MW 0 MW 0 TWh 0.19 TWh 0.14 TWh 0.06 2025 0 2030 0 The previous tables present the data that have been gathered in the framework of the RES2020 project in order to be used in the modelling. The data have been collected • Through EREC and its Members • Through a revision of previous EU funded projects and reports (GreenX, OPTRES) • Through the partners of the project The data have been discussed in the framework of the REWG of the EnR with the country experts. The tables present an estimation of the technical potential that could be utilized as an upper bound by 2010, 2015, 2020 and 2030. As technical potential we are considering: • the future installed capacity of wind turbines without taking in mind financial issues at a "reasonable" wind speed as a possible upper limit in the development of the installed capacity over time. • the future installed capacity of hydro considering technical issues only and a possible upper limit in the development of the installed capacity over time. For some technologies potential may be unlimited (e.g. photovoltaics), so we are using upper bound limits within the relevant time frames. 49 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential TABLE 1 Potentials agricultural bioenergy Description Sugar crops: sugar beet Step 1 Step 2 Step 3 Step 4 Starch crops: rye, oats, maize, wheat, barley, etc Step 1 Step 2 Step 3 Step 4 Grassy crops: switchgrass, miscanthus, sweet sorghum, etc Step 1 Step 2 Step 3 Step 4 Woody crops: willow, poplar Step 1 Step 2 Step 3 Step 4 Oil crops: sunflower, rapeseed Step 1 Step 2 Step 3 Step 4 Unit LimType Potential Cost Potential Cost Potential Cost Potential Cost [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] UP Potential Cost Potential Cost Potential Cost Potential Cost [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] UP Potential Cost Potential Cost Potential Cost Potential Cost [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] UP Potential Cost Potential Cost Potential Cost Potential Cost [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] UP Potential Cost Potential Cost Potential Cost Potential Cost [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] UP 2000 2001 2005 2010 2015 2020 2025 2030 1,0 8,8 1,0 8,8 1,0 8,8 2,0 8,68 3,0 8,53 3,0 8,39 4,0 8,26 4,0 8,14 1,0 8,3 1,0 8,3 1,0 8,3 1,0 7,92 1,0 7,62 1,0 7,35 1,0 7,12 1,0 6,91 6,0 4,4 6,0 4,4 6,0 4,4 9 4,1 12 3,9 14 3,7 16 3,5 18 3,4 7,0 3,6 7,0 3,6 7,0 3,6 11,0 3,29 13,0 3,09 16,0 2,94 18,0 2,82 21,0 2,71 1,0 8,8 1,0 8,8 1,0 8,8 1,0 8,5 1,0 8,2 2,0 8,0 2,0 7,7 2,0 7,5 Source UP UP UP UP UP UP UP UP UP UP UP UP UP UP UP 50 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential TABLE 2 Potentials bioenergy from wastes Description Agricultural waste Unit LimType Potential Cost [PJ/a] [€/GJ] UP Potential Cost [PJ/a] [€/GJ] UP Potential Cost [PJ/a] [€/GJ] UP 2000 2001 2005 2010 2015 2020 2025 2030 Source Forestry residues Wood processing residues Municipal solid waste Potential Cost [PJ/a] [€/GJ] UP 2 2 2 EEA Report 7 2006 Koroneos, C., et al. (2005): Cyprus energy system and the use of renewable energy sources. Energy 30 (2005), pp. 1889–1901. Potential Cost [PJ/a] [€/GJ] UP 2 2 2 EEA Report 7 2006 Potential Cost [PJ/a] [€/GJ] UP 7 8 8 EEA Report 7 2006 Potential Cost [PJ/a] [€/GJ] UP Potential Cost Potential Cost Potential Cost [PJ/a] [€/GJ] [PJ/a] [€/GJ] [PJ/a] [€/GJ] UP Potential Cost [PJ/a] [€/GJ] UP Wet manures Black liquor Sewage sludge Other waste wood households packageing demolition UP UP Dry manures 51 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential 6. CZECH REPUBLIC 52 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential The Czech Republic is an important producer of hard coal. The Czech Republic has one of the lowest energy import dependencies in the European Union, mainly due its domestically produced solid fuels. Imports are limited to natural gas and oil from Russia. The share of renewable energy sources has also been increasing, although still below EU average. Coal is the main energy source for electricity production. The second most important source is nuclear power. KEY FIGURES • The share of RES in total primary energy consumption was 4.10 % in 200614. • The share of RES in the gross final energy consumption in 2005 amounted to 6.1% • In 2006, renewable electricity accounted for 4.91% of gross inland electricity consumption, and 4.17% in gross inland electricity production15. • Biofuels represented in 2006 approximately 0.5% of the transport fuels16. • Dependence on external energy supplies is of about 37.6% in 2005 Technology Specific Figures: The highest share of renewable electricity production in 2006 came from hydropower followed by biomass: • Gross electricity production from hydro amounted to 2 550,7 GWh while the total installed capacity amounted to 1 028,5 MW. • Gross electricity production from biomass amounted to 731 GWh in 2006. (annual increment 171 GWh). • The exploitation of biogas (176 GWh) can also be viewed as a significant source of renewable electricity. • Wind plants produced 49.4 GWh in 2006. By the end of 2006, 43.5 MW of wind power had been installed in the Czech Republic. Between 2005 and 2006, the total installed capacity almost doubled. In 2006, 45 projects with a total capacity of 18.5 MW were put into operation. • Gross electricity production from photovoltaics was 0,2 GWh. Total installed capacity in October 2007 amounted to 2,9 MWp (only systems with licence). • Energy production from solar thermal was circa 127 TJ. Total area of glazed collectors in. 2006 was 105 000 m². • Heat production from biomass amounted to 16 370 TJ (without households). • Heat production from biogas amounted to 918 511 GJ. (including municipal and industrial waste treatments plants, biogas stations, landfill gas) • In 2006, approximately six million tonnes of fuels for transport was placed on the market in the Czech Republic, of which 29 600 tonnes was made up of biofuels – i.e. 0.5%. EurObserv’er 14 15 16 Ministry of Industry and Trade Ministry of Industry and Trade 53 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential RES POLICY RES TARGETS Mandatory targets set by the newly proposed RES Framework Directive from 200817 • 13 % share of RES on the final consumption of energy in 2020. 17 Proposal for a Directive of the European Parliament and the Council on the promotion of the use of energy from renewable sources from January 2008(the targets agreed but the directive is on legislative process) 54 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential • At least 10% share of biofuels of final consumption of energy in transport in that Member State in 2020. Indicative Target set by the RES- electricity European Directive from 200118 • 8 % share of RES on gross electricity consumption by 2010 Indicative Target set by the European Biofuels Directive from 200319 • Biofuels consumption of 5.75% of petrol and diesel use for transport in 2010. National Commitments In 2004, the parliament of Czech Republic approved the national energy strategy setting targets for 2030: • RES share in electricity production should be 16-17%in 2030 • RES share in the primary energy sources 6 % in 2010 and 15 – 16 % in 2030 RES POLICY INSTRUMENTS Support for RES electricity The Act No 180/2005 on the promotion of electricity produced from renewable energy sources which implemented the EU Directive 2001/77/EC in Czech legislation, entered into effect on 1 August 2005. Its key features are: • Preferential connection to the grid. There is an obligation for operators of the regional grid systems and the transmission system operator to purchase all electricity from renewable sources • the guarantee of revenue per unit of electricity produced over a 15-year period as of the date a plant is put into operation the possibility of choosing between two support systems - minimum feed-in tariffs – all the electricity produced can be sold to the relevant distribution system operator green bonuses (premium on the market price of electricity) – electricity produced from renewable sources can be placed on the single electricity market • the support of electricity used for internal consumption (not supplied to the grid) Feed in tariff and Green Bonuses A feed-in system for RES-E and cogeneration came into force in 2002. This scheme only led to a few new renewables installations. The RES Act adopted in 2005, extended this system by offering a choice between a feed-in tariff (a guaranteed price) or a “green bonus” (an amount paid on top of the market price). • Feed-in tariffs apply to electricity supplied and metered at the delivery point between the generating plant and the respective distribution system operators • Green bonuses apply to electricity supplied and metered at the delivery point between the generating plant and the regional system operators and supplied by the generator to an electricity trader or eligible customer. 18 Directive 2007/71/EC on the promotion of electricity produced from renewable energy sources in the internal electricity market. Currently in force, sets targets up to 2010. 19 Directive 2003/30/EC on the promotion of the use of biofuels or other renewable fuels for transport Currently in force, sets targets up to 2010, with indicative targets by 2005. 55 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Producers can choose if they sell electricity for purchase prices or offer it to trader for „marketprice“ and simultaneously get extra green bonuses – paid by the operator of Transmission System) The “Energy Regulatory Office” determines the feed-in tariffs and the green boni each year in advance. The prices may not be lower than 95% of the value of the year before. Prices are set on the following assumptions: o Return on investment of 15 years o Prices are differentiated according to the renewable energy source o Prices are differentiated by the year of commissioning Resource installed after 1.1.2007 wind Technology Support level [€cents/ kWh] Feed in tariff Feed-in tariff or premium? Start year Duration [years that an investor is entitled to support] onshore Feed-in tariff 2007 15 years Hydro small Equivalent of 9€cents/ kWh for plants commissioned after January 1st, 2007 9€cents/ kWh Feed-in tariff 2007 15 years biomass solid 9 to 13 €cents/ kWh Feed-in tariff 2007 15 years biogas 8 to 11 Feed-in tariff 2007 15 years PV 50 Feed-in tariff 2007 15 years Feed-in tariff Green Bonus Green Bonus Green Bonus Green Bonus Green Bonus Green Bonus 2007 2007 2007 2007 2007 2007 2007 15 years 15 years 15 years 15 years 15 years 15 years 15 years geothermal 17 wind onshore 7 Hydro small 5 biomass solid 1 to 8 biogas 4 to 7 PV 47 geothermal 13 1 EUR = 23.986 CZK in March 2008 State programme for energy saving and the use of renewable energy sources Investors in renewable electricity can receive aid from the State programme for energy saving and the use of renewable energy sources. Subsidies from Part A of the programme (coordinated by the Ministry of Industry and Trade) may be a maximum of 30% of capital costs, but no more than CZK 2.8 million. Subsidies from Part B of the programme (coordinated by the Ministry of the Environment) may be a maximum of 90% of the basis for the calculation of the aid in the case of local government units (municipalities) and non-profit organizations. In 2006, subsidies for the support of renewable electricity production totalling CZK 31.3 million were granted from Ministry of Industry and Trade and Ministry of Environment resources. Subsidies under Part B of the State Programme may, in the case of businesses, amount to 40% of the capital costs. 56 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Resource Support level [%/total investment] Comments RES-E 30% of investment costs, subject to a maximum of CZK 3 million. Subsidies under Part A of the State Programme for the Promotion of Renewable Energy Sources (administered by the Ministry of Industry and Trade) RES-E 90% Subsidies under Part B of the State Programme for the Promotion of Renewable Energy Sources (administered by the Ministry of the Environment) for MUNICIPALITIES AND NOT FOR PROFIT SECTOR RES-E 40% Subsidies under Part B of the State Programme for the Promotion of Renewable Energy Sources (administered by the Ministry of the Environment) for BUSINESSES 1 EUR = 23.986 CZK in March 2008 Tax exemption There is no income tax in the year of putting in operation renewable electricity plants and for the following 5 years. Reduced interest rates Resource Support level [% reduction on interest rates] Comments RES-E Credits equivalent to 35% of costs (interest-free) To non business entities RES-E Credits equivalent to 90% of costs generally at an 19 interest rate of 4% per annum over a 12 year period. businesses 1 EUR = 23.986 CZK in March 2008 EU Structural Funds From 2004, investors in renewable electricity production had the opportunity to obtain aid from the EU’s Structural Funds via the Operational Programmes. The Operational Programme for 20042006 focused – amongst other things- on the construction and restoration of plants using RES. Subsidies may be a maximum of 46 % of capital costs, but no more than CZK 30 million. In 2006, aid for 55 projects with total capital costs of CZK 1.817 billion, projected capacity of 32.25 MW and envisaged electricity production of 140.1 GWh was approved. 57 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Support for Heat European Regional Development Fund- State Environmental Fund (SFŽP) The Operational Programme for 2004-2006 includes the subsidy scheme “Exploitation of Renewable Energy Sources”, intended for legal persons (non-business). The scheme focuses on the construction of plants using biomass, on transforming current systems into systems using RES, on the use of RES-heat from municipal boiler houses. Subsidies from the ERDF (the European Regional Development Fund) may be a maximum of 75% of the basis for the calculation of aid (eligible costs), but no more than the equivalent of EUR 10 million. In addition, a project can be co-financed from the State Environmental Fund (SFŽP) up to a total amount of 90%. SFŽP resources may be used to obtain a subsidy for project documentation of up to 50% of eligible costs; this may be a maximum of 3% of the basis for the calculation of investment aid, but no more than CZK 3 million. For 2004-2006, total ERDF resources for Measure 3.3 (RES fall under Measure 3.3) amounts to EUR 44.1 million (ERDF EUR 30.9 million + municipal budgets EUR 7.9 million + SFŽP EUR 5.3 million). Support for Biofuels Addition of biomaterial is obligatory for producers, distributors, importers. Government Resolution No 1080 of 20 September 2006 provides for a minimum quantity of biofuels in the range of motor-vehicle fuels without any subsidies or support from the state. On the basis of this resolution, amendments were made to the following legislation: Act No 86/2002 Coll. on clean air protection. The amendment to this act concerns the setting of a minimum amount of biofuels. Any person bringing motor-vehicle petrol or diesel fuels into free tax circulation in the Czech Republic must ensure that they contain at least a minimum proportion of biofuels. The amendment introduces the following minimum values of biofuels blended with fuel: • • • as of 1 January 2008, 2% of the total amount of motor-vehicle petrol fuel; as of 1 January 2009, 3.5% of the total amount of motor-vehicle petrol fuel; as of 1 January 2009, 4% of the total amount of motor-vehicle diesel fuel. Support for all RES Promoting energy crops in agriculture Programme “ Promoting the cultivation of crops for energy use in 2007“ was incorporated into the national support programme specifying the conditions for granting subsidies in 2007. The objective is to promote the establishment and maintenance of standing crops for energy use with aid of CZK 3,000 per hectare. In this programme, stated energy crops must be grown specifically for energy use. In 2007, 1,771 hectares were sown with energy crops and approximately CZK 5,314,000 was disbursed. Aid for the cultivation of energy crops is provided in all EU countries at EUR 45 per hectare for any crop to be used for energy purposes. The conditions are governed by Governmental Order No 80 of 11 April 2007 laying down certain conditions for the provision of a payment for the cultivation of 58 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential energy crops. An uninterrupted plot of arable land with an area of at least 1 hectare must be used for the cultivation of energy crops. Energy crops must be grown on the land as the main crop in the year concerned. As at August 2007, applications for aid for the cultivation of energy crops on approximately 59,920 ha had been registered. - Support for cultivation of plants for energy purposes: In 2006, a total of CZK 2 000/ha was paid out to support the planting of plant crops for use in energy generation (combustion). Support totalling CZK 1 066 000 was granted for 1 033 ha. - Support for the planting of production and reproduction crops of fast-growing wood species for use in energy generation This support was granted under the Horizontal Rural Development Plan of the Czech Republic 2004-2006. The granting of support was regulated by the conditions laid down in Government Decree No 308/2004 Coll. In 2006, a total of 22 ha of crops were planted and CZK 1 551 366 in support paid out. Annex I RES electricity Potentials Annex II RES Bioenergy Potentials Sources: European Commission Factsheets by Country http://ec.europa.eu/energy/energy_policy/facts_en.htm Member States Reports in the framework of the Directive 2001/77/EC on renewable electricity http://ec.europa.eu/energy/res/legislation/electricity_member_states_en.htm Member States Reports in the framework of the Directive 2003/30/EC on biofuels http://ec.europa.eu/energy/res/legislation/biofuels_members_states_en.htm Czech Energy Agency www.czrea.org Ministry of Industry and Trade http://www.mpo.cz/default_en.html EurObserv’er Barometer http://www.energies-renouvelables.org/observ-er/sig/eufores/sig.asp In the framework of the EU co –funded project: RES 2020: Monitoring and Evaluation of the RES Directives implementation in EU27 and policy recommendations to 2020 The sole responsibility for the content of this publication lies with the authors. It does not represent the opinion of the Community. The European Commission is not responsible for any use that may be made of the information contained therein. Drafted in March 2008. 59 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Annex I RES electricity Potentials Description Unit 2005 2010 2015 2020 2025 2030 Total Wind Maximum Wind onshore Maximum Wind offshore Maximum solar PV Maximum solar thermal Total Hydro Maximum conventional hydro of which Maximum run of river Maximum Pumped Storage hydro Maximum Wave power plants Maximum tide power plants Maximum geothermal conventional power plants Maximum geothermal hot dry rock power plants Maximum biomass power plants (conventional+CHP) Maximum biogas power plants (conventional+CHP) Maximum municipal waste power plants (CHP) MW MW MW TWh MW MW MW MW MW TWh TWh 26 26 0 0.4 0.0 2115 970 149 1145 0.0 0.0 584 584 0 0.5 0 2116 971 150 1145 0 0 1150 1150 0 0.6 0 2137 992 171 1145 0 0 1717 1717 0 0.6 0 2282 2282 0 0.7 0 2849 2849 0 0.8 0 1017 196 1033 212 1049 228 0 0 0 0 0 0 TWh 0.0 1.4 1.9 3.1 4.7 6.7 MW 0 187 261 410 634 895 TWh 0.6 2.2 3.7 5.2 6.8 8.3 TWh 0.2 0.2 1.2 2.2 2.5 2.8 TWh 0.0 0.5 0.5 0.5 0.5 0.5 The previous table present the data that have been gathered in the framework of the RES2020 project in order to be used in the modelling. The data have been collected • Through EREC and its Members • Through a revision of previous EU funded projects and reports (GreenX, OPTRES) • Through the partners of the project The data have been discussed in the framework of the REWG of the EnR with the country experts. The tables present an estimation of the technical potential that could be utilized as an upper bound by 2010, 2015, 2020 and 2030. As technical potential we are considering: • the future installed capacity of wind turbines without taking in mind financial issues at a "reasonable" wind speed as a possible upper limit in the development of the installed capacity over time. • the future installed capacity of hydro considering technical issues only and a possible upper limit in the development of the installed capacity over time. For some technologies potential may be unlimited (e.g. photovoltaics), so we are using upper bound limits within the relevant time frames. 60 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Annex II RES Bioenergy Potentials TABLE 1 Potentials agricultural bioenergy Description Sugar crops: sugar beet Step 1 Step 2 Step 3 Step 4 Starch crops: rye, oats, maize, wheat, barley, etc Step 1 Step 2 Step 3 Step 4 Grassy crops: switchgrass, miscanthus, sweet sorghum, etc Step 1 Step 2 Step 3 Step 4 Woody crops: willow, poplar Step 1 Step 2 Step 3 Step 4 Oil crops: sunflower, rapeseed Step 1 Step 2 Step 3 Step 4 Unit LimType 2000 2001 2005 2010 2015 2020 2025 2030 Potential Cost Potential Cost Potential Cost Potential Cost [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] UP 37,0 6,5 37,0 6,5 37,0 6,5 81,0 6,53 108,0 6,63 135,0 6,79 153,0 7,05 172,0 7,41 Potential Cost Potential Cost Potential Cost Potential Cost [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] UP 24,0 6,9 24,0 6,9 24,0 6,9 52,0 6,64 70,0 6,43 87,0 6,27 100,0 6,15 112,0 6,07 Potential Cost Potential Cost Potential Cost Potential Cost [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] UP 78,0 9,2 78,0 9,2 78,0 9,2 174 8,4 236 7,9 298 7,5 343 7,2 388 7,0 Potential Cost Potential Cost Potential Cost Potential Cost [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] UP 51,0 2,8 51,0 2,8 51,0 2,8 117,0 2,85 160,0 2,82 203,0 2,79 236,0 2,81 268,0 2,85 Potential Cost Potential Cost Potential Cost Potential Cost [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] UP 19,0 6,2 19,0 6,2 19,0 6,2 41,0 6,1 54,0 5,9 68,0 5,8 77,0 5,7 86,0 5,6 Source UP UP UP UP UP UP UP UP UP UP UP UP UP UP UP 61 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential TABLE 2 Potentials bioenergy from wastes Description Agricultural waste Unit LimType 2000 2001 2005 2010 Potential Cost [PJ/a] [€/GJ] UP Potential [PJ/a] UP Cost [€/GJ] Potential Cost [PJ/a] [€/GJ] UP 9 Potential Cost [PJ/a] [€/GJ] UP Potential [PJ/a] UP Cost [€/GJ] Potential Cost [PJ/a] [€/GJ] Potential Cost 26 2015 2020 28 2025 2030 Source 29 EEA Report 7 2006 10 10 44.8 according to Jakubes, J. (2006): Development of support system for RES-E in the Czech Republic. New Europe, New Energy International Conference, Milton Keynes, UK, 26 September 2006. Ust'ak, S., and M. Ust'aková (2004): Potential for Agricultural Biomass to Produce Bioenergy in the Czech Republic. Biomass and Agriculture: Sustainability, Markets and Policy. OECD, Paris, September 2004. EEA Report 7 2006 18 20 21 EEA Report 7 2006 18 20 21 16 according to Jakubes, J. (2006): Development of support system for RES-E in the Czech Republic. New Europe, New Energy International Conference, Milton Keynes, UK, 26 September 2006. UP 15 16 17 EEA Report 7 2006 [PJ/a] [€/GJ] UP 4 4 4 EEA Report 7 2006 Potential Cost Potential Cost Potential [PJ/a] [€/GJ] [PJ/a] [€/GJ] [PJ/a] UP Cost [€/GJ] Potential Cost [PJ/a] [€/GJ] Forestry residues 34 Wood processing residues Municipal solid waste Wet manures 8 Black liquor Sewage sludge Other waste wood households packageing demolition UP UP 12.2 according to Ust'ak, S., and M. Ust'aková (2004): Potential for Agricultural Biomass to Produce Bioenergy in the Czech Republic. Biomass and Agriculture: Sustainability, Markets and Policy. OECD, Paris, September 2004. Dry manures UP 62 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential 7. GERMANY 63 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential The share of oil dominates the German primary energy supply and solid fuels (coal) prevail in domestic production. Imports concern primarily oil, and to a less significant degree gas and solid fuels, Russia being a significant source for all fuels. Electricity generation is based primarily on coal and nuclear energy, with growing shares of natural gas and renewable sources. In 2002, Germany adopted a law phasing out nuclear energy. Under this law, each reactor is assigned a fixed amount of electricity it is allowed to generate. Once the electricity is produced the respective unit has to be switched off. Germany is an EU leader in the wind energy, the photovoltaics, the solar thermal and the biofuel sectors. A stable and predictable policy framework has created favourable conditions to RES penetration. Germany has the highest installed wind power capacity in the world. Feed-in tariffs for renewable electricity (RES-E), market incentives for renewable heat (RES-H), and tax exemptions for biofuels have proven a successful policy mix leading to a very dynamic market for renewable energy sources (RES). KEY FIGURES: • The share of RES in total primary energy consumption was 5.8 % in 2006. • The share of RES in the final energy consumption was 8.4% in 2007 compared to 7.8% in 200620. • The share of RES in the gross electricity consumption was 14% in 2007. Compared to 11.5% in 2006 (in 2005: around 10.4%21). • The share of RES in total heat supply amounted to 6.5% was achieved in 2007, compared to 6% in 2006 and 5.3% in 2005. • The share of biofuels in the transport fuels in 7% in 2007 compared to 4.7% in 2006 (and 3.8% 2005). • Germany’s dependence on imported energy amounts to 65.1%. Contribution of renewable energy sources to energy supply in Germany 2000 - 2006 14 12.0 12 10 2000 2001 2002 2004* 2005* 2006* 8.0 [%] 8 5.8 6.3 6.6 6.0** 6 4 2003 3.9 3.8 2.6 2 0.4 0 Share of RE in total PEC Share of RE in total gross electricity consum ption Share of RE in total FEC for heat Share of RE in fuel consum ption for road traffic Share of RE in total FEC (electricity, heat, fuels) RE - renewable energies, PEC - primary energy consumption, FEC - final energy consumption * All figures provisional ** From 2003, new data from the Energy Statistics ACT (EnStatG) incorporated Source: BMU-Brochure " Renewable energy sources in figures – national and international development-" Version: June 2007 20 21 German Environment Ministry figures German Environment Ministry figures 64 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Contribution of renewable energy sources to electricity generation in Germany 1990 - 2006 80,000 70,000 60,000 [GWh] 50,000 Hydropower Wind energy Biomass* Photovoltaics new EEG 1. August 2004 EEG 1. April 2000 40,000 30,000 20,000 10,000 0 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 * so lid, liquid, gaseo us bio mass, bio genic share o f waste, landfill and sewage gas; Electricity fro m geo thermal energy is no t presented due to the lo w vo lumes o f electricity So urces: B M U-B ro chure " Renewable energy so urces in figures – natio nal and internatio nal develo pment-"; Versio n: June 2007 P ro visio nal figures Technology specific figures: • Wind energy is the largest contributor to electricity production from renewable energies in 2006 with 30.5 billion kWh (2005: 27.2 billion kWh). This equals a share in total electricity consumption in Germany of 5%. With a new installed capacity of 2,233 MW in 2006, the construction of wind energy plants increased by 23% compared with 2005. In total, at the end of 2006, 18,685 wind energy plants were in operation with an installed capacity of 20,622 MW. Germany thus remains world leader. • Electricity production from hydropower remained stable in 2006 with 21.6 billion kWh (2005: 21.5 billion kWh). • Electricity production from biomass (without gas from landfills and sewage treatment plants, biogenic wastes) amounts to approximately 13.1 billion kWh in 2006 (2004: approx. 8.6 billion kWh). This equals a share of around 2.2% in total gross electricity consumption. • Electricity production from biogas almost doubled from 2.8 billion kWh in 2005 to around 5.4 billion kWh in 2006. • The electricity production from photovoltaics increased from 1.3 billion kWh in 2005 to around 2 billion kWh in 2006. • The annual increase in solar thermal exceeded the limit of 1 million square metres of solar panel area for the first time in 2006. At the end of 2006, over 8 million square metres were installed. • Demand for biomass in the heating sector (especially wood) increased by an estimated 10% in 2006. In total around 84 billion kWh were supplied from biomass. This equals around 94% of heating supply from renewable energies. • Biofuels sales increased from around 2.3 million tonnes in 2005 to at least 2.8 million tonnes in 2006. In addition to the dominant sale of biodiesel (2005: 1.8 million tonnes), significant volumes of bioethanol (0.5 million tonnes) and vegetable oil (0.3 million tonnes) were recorded. RES POLICY 65 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential RES TARGETS Mandatory targets set by the newly proposed RES Framework Directive from 200822 • 18 % share of RES on the final consumption of energy in 2020. At least 10% share of biofuels of final consumption of energy in transport in that Member State in 2020. Indicative Target set under the RES- electricity European Directive from 200323 • 12.5% share of RES on gross electricity consumption by 2010 Indicative Target set by the European Biofuels Directive from 200324 • Biofuels consumption of 5.75% of petrol and diesel use for transport in 2010. National commitments • As part of the national integrated climate and energy package, the government intends to increase the share of renewable energies in the electricity sector from the current level of around 13 percent to 25-30 percent by 2020. • The government also committed to increase the share of renewable energies in the heat sector from the current 6 percent to 14 percent in 2020. • The “Biokraftstoffquotengesetz” set a target for biofuels of 8% of the transport fuels by 2015. Progress towards the target: The target set by the renewable electricity Directive was reached already in 2007: the share of electricity produced from renewable energy sources has almost doubled from 6.3 % in 2000 to 12.0 % in 2006. The "Biokraftstoffquotengesetz" was adopted in 2006 – to transpose into national law the 2003 Directive on biofuels- and set a target of 5.75 % by 2010 of the transport fuels. Interim targets has been set as well. Germany was the only country in the EU to exceed its 2005 target. RES POLICY INSTRUMENTS Support for RES electricity Feed-in tariffs The feed-in tariffs have been introduced in Germany in 1990. The Electricity Feed Act (StrEG) entered into force on 1 January 1991. In April 2000, it was replaced by the Renewable Energy Sources Act, which was amended in July 2004. The Renewable Energy Act (EEG) is based on the following core principles: • Priority access for renewable energy to the grid • Priority transmission and distribution • Obligation of grid operators to purchase the electricity produced from renewable energy • Fixed price (“tariff”) for every kilowatt-hour produced from renewable energy for 20 years. • Tariffs are differentiated by source and size of the plant 22 Proposal for a Directive of the European Parliament and the Council on the promotion of the use of energy from renewable sources from January 2008(the targets agreed but the directive is on legislative process) 23 Directive 2007/71/EC on the promotion of electricity produced from renewable energy sources in the internal electricity market. Currently in force, sets targets up to 2010. 24 Directive 2003/30/EC on the promotion of the use of biofuels or other renewable fuels for transport currently in force, sets targets up to 2010, with indicative targets by 2005. 66 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential • • Annual decrease (-1,5% - -6,5%) are in place to take account of technical development (degression) Equalisation of additional costs between all grid operators and electricity suppliers Resource Technology Support level [€cents/ kWh] Feed-in tariff or premium? Duration hydro small 6.7-9.7 Feed-in tariff wind onshore 8.7 during the first 5 years, then between 8,7 and 5,5. Feed-in tariff 30 years 20 years wind offshore 9.1 Feed-in tariff biomass solid 3.8-21.2 Feed-in tariff biomass gasification (biogas) 6.35-16.99 Feed-in tariff Solar PV 51.8 and 48.74 in 2006; 49,21 and 46,30 in 2007 Feed-in tariff 20 years With a 5% yearly degression. A 5 c€/kWh bonus is added for building façade integrated systems. 7.16 to15 Feed-in tariff 20 years Depends on the installed capacity Geothermal 20 years 20 years 20 years Comments The wind turbine will receive a minimum of 5,5 over its lifetime. Special tariffs are planned for repowering. Depends on the technology and the installed capacity In August 2007, the German government elaborated an Integrated Energy and Climate Programme. On 5 December 2007, the government adopted a package of legislative measures to implement the programme. Another, smaller package will follow on 21 May 2008. In 2008 the German government committed to make a €3.3 billion available for climate protection measures an increase of 200% compared to 2005. The Renewable Energy Sources Act (EEG) will be amended. The government will expand offshore wind energy use. The government committed to ensure that biogas is fed into the natural gas grid to a greater extent. A share of 10 percent is possible by 2030. The government intends to improve the legal conditions for the expansion of the grid. Support for RES Heating A new Renewable Energies Heat Act has been released in December 2007. It consists of: • Market Incentives: (A previous Market Incentive Programme provided subsidies for RES-H for solar thermal and small scale biomass heat generation for instance. In 2006 alone, almost 140,000 plants were supported through the German government’s market incentive programme, thus triggering investment of 1.5 billion euro). • the German government committed to make available 350 million euro in 2008, and 500 million euro from 2009, to support renewable energies in existing buildings. • Obligation: Homeowners will be obliged to use renewables in new buildings. 67 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Investment Subsidies Resource Technology Solar Thermal solar collectors < 40 m2 Solar Thermal large solar collectors > 40 m2 Geothermal RESCommunity heating systems Financial Incentives (reduction on interest rate) Resource solid biomass Solar Thermal Support level [%/total investment] Start year investment subsidies (primary private households and SMEs) repayment bonuses of up to 30% of the investment cost max. 1 Mio. € per drilling, max. 550 000 € per community heating system 2007 2007 max. 550 000 € per community heating system Support level [% reduction on interest rates] low-interest loans with partial debt waiver (commercial and public sector applicants), Start year Reduced interest KWf loans 2007 Support to biofuels Tax exemptions Biodiesel benefits from a partial tax exemption (B100). The tax will gradually increase from 9 c€ per litre in 2007 up to 45 c€ per litre beginning in 2012". Crude vegetable oils benefit from partial tax exemptions. The tax will increase from 10 c€ per litre in 2008 to 45 c€ per litre beginning in 2012. 2nd generation biofuels/ E85 are exempted from tax until 2015. The German Federal Government has passed a (draft) biofuel sustainability ordinance. Under this ordinance, biofuel producers will in future enjoy fiscal and administrative support only if certain sustainability criteria are adhered to. Resource Biodiesel Crude vegetable oil 2nd generation biofuels/ E85 Total support level (= tax exemption incl. reduction of VAT to be paid) [€cents/litre] Partial Tax exemption on B100. The tax will gradually increase from 9 c€ per litre in 2007 up to 45 c€ per litre beginning in 2012 Partial tax exemption. The tax will increase from 10 c€ per litre in 2008 to 45 c€ per litre beginning in 2012 Exempted from tax until 2015 start year 2006 2006 Quota obligation Quota obligation for biofuels (biodiesel and bioethanol) amount to 6.75% in 2010 and 8% in 2015. In the first term 2008, the German parliament will discuss the laws. The final vote could take place before the summer. 68 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Resource Biodiesel Bioethanol Total (biodiesel and bioethanol) Quota in % (per year) 2007: 4.4%, 2% in 2008, 2.8% in 2009 ,3.6% in 2010. 8% in 2015, 6.75% in 2010. Annex I RES electricity Potentials Annex II RES Bioenergy Potentials Sources: Federal Ministry for Environment, Nature Conservation and Nuclear Safety: http://www.bmu.de/english/renewable_energy/current/aktuell/3860.php German Renewable Energy Federation (BEE) http://www.bee-ev.de/ European Commission Factsheets by Country http://ec.europa.eu/energy/energy_policy/facts_en.htm Member States Reports in the framework of the Directive 2001/77/EC on renewable electricity http://ec.europa.eu/energy/res/legislation/electricity_member_states_en.htm Member States Reports in the framework of the Directive 2003/30/EC on biofuels http://ec.europa.eu/energy/res/legislation/biofuels_members_states_en.htm In the framework of the EU co –funded project: RES 2020: Monitoring and Evaluation of the RES Directives implementation in EU27 and policy recommendations to 2020 The sole responsibility for the content of this publication lies with the authors. It does not represent the opinion of the Community. The European Commission is not responsible for any use that may be made of the information contained therein. Drafted in March 2008. 69 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Annex I RES electricity Potentials Description Unit 2005 2010 2015 2020 2025 2030 Total Wind MW 18428 25455 30307 39915 42199 46374 Maximum Wind onshore MW 18428 19083 23343 25105 26373 27554 Maximum Wind offshore MW 0 6372 6964 14810 15826 18820 Maximum solar PV TWh 1.3 4.1 5.4 6.7 7.9 9.2 Maximum solar thermal MW 0.0 0.0 0.0 0.0 0.0 0.0 Total Hydro MW 9804 9825 Maximum conventional hydro MW 4090 4111 4226 4446 4499 4552 of which Maximum run of river MW 2939 2960 3075 3295 3348 3401 Maximum Pumped Storage hydro MW 5714 5714 Maximum Tide & Wave power plants TWh 0.0 0.0 0.0 0.0 0.0 0.0 Maximum geothermal Total Maximum geothermal dry steam & flash power plants (>180°C) Maximum geothermal binary power plants (180°C<x<85°C) Maximum geothermal EGS power plants Maximum biomass power plants (conventional+CHP) Maximum biogas power plants (conventional+CHP) Maximum Bio waste power plants (CHP) TWh 0.1 1.2 1.9 3.0 4.3 5.7 MW 13 159 260 407 577 766 TWh 4.5 28.6 53.6 78.4 81.2 84.1 TWh 2.5 10.4 11.6 12.8 14.0 15.2 TWh 8.5 9.1 10.6 12.2 12.7 13.3 MW MW The previous table present the data that have been gathered in the framework of the RES2020 project in order to be used in the modelling. The data have been collected • Through EREC and its Members • Through a revision of previous EU funded projects and reports (GreenX, OPTRES) • Through the partners of the project The data have been discussed in the framework of the REWG of the EnR with the country experts. The tables present an estimation of the technical potential that could be utilized as an upper bound by 2010, 2015, 2020 and 2030. As technical potential we are considering: • the future installed capacity of wind turbines without taking in mind financial issues at a "reasonable" wind speed as a possible upper limit in the development of the installed capacity over time. • the future installed capacity of hydro considering technical issues only and a possible upper limit in the development of the installed capacity over time. For some technologies potential may be unlimited (e.g. photovoltaics), so we are using upper bound limits within the relevant time frames. 70 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Annex II RES Bioenergy Potentials TABLE 1 Potentials agricultural bioenergy Description Sugar crops: sugar beet Step 1 Step 2 Step 3 Step 4 Starch crops: rye, oats, maize, wheat, barley, etc Step 1 Step 2 Step 3 Step 4 Grassy crops: switchgrass, miscanthus, sweet sorghum, etc Step 1 Step 2 Step 3 Step 4 Woody crops: willow, poplar Step 1 Step 2 Step 3 Step 4 Oil crops: sunflower, rapeseed Step 1 Step 2 Step 3 Step 4 Unit LimType 2000 2001 2005 2010 2015 2020 2025 2030 Potential Cost Potential Cost Potential Cost Potential Cost [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] UP 201,0 9,0 201,0 9,0 201,0 9,0 295,0 8,72 368,0 8,45 440,0 8,21 518,0 8 595,0 7,81 Potential Cost Potential Cost Potential Cost Potential Cost [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] UP 107,0 8,9 107,0 8,9 107,0 8,9 158,0 8,37 196,0 7,96 235,0 7,61 277,0 7,31 318,0 7,05 Potential Cost Potential Cost Potential Cost Potential Cost [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] UP 323,0 6,0 323,0 6,0 323,0 6,0 536 5,6 711 5,3 887 5,0 1071 4,8 1255 4,6 Potential Cost Potential Cost Potential Cost Potential Cost [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] UP 258,0 4,8 258,0 4,8 258,0 4,8 436,0 4,47 583,0 4,21 730,0 4 885,0 3,83 1039,0 3,68 Potential Cost Potential Cost Potential Cost Potential Cost [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] UP 83,0 9,5 83,0 9,5 83,0 9,5 122,0 9,3 152,0 9,0 182,0 8,8 215,0 8,5 247,0 8,3 Source UP UP UP UP UP UP UP UP UP UP UP UP UP UP UP 71 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential TABLE 2 Potentials bioenergy from wastes Description Agricultural waste Unit LimType Potential Cost [PJ/a] [€/GJ] UP Potential Cost [PJ/a] [€/GJ] UP Potential Cost [PJ/a] [€/GJ] Potential Cost 2000 2001 2005 2010 2015 2020 2025 2030 158 169 180 UP 88 94 100 Source 1,550 according to RISE (2007): Biofuels – Developments in Germany and in the EU. Research Institute for Sustainable Energy (RISE), Australia, 2007. http://www.rise.org.au/pubs/Detlev_Biofuels_April_27-2007.pdf 700 according to Stephan, B. (2007): Biomass to energy in Germany. University of Applied Science Bremerhaven, Germany, 2007. http://www.jgsee.kmutt.ac.th/new/announcement/30/1-biomass%20germany%2006-4-1.ppt €14.7/GJ for wood pellets, according to: EEA Report 7 2006 [PJ/a] [€/GJ] UP 88 94 100 EEA Report 7 2006 Potential Cost [PJ/a] [€/GJ] UP 110 118 126 EEA Report 7 2006 76 billion kWh (electric) = 273.6 PJe, according to: Potential Cost [PJ/a] [€/GJ] UP 26 28 29 EEA Report 7 2006 Potential Cost [PJ/a] [€/GJ] UP 15 16 17 EEA Report 7 2006 Potential Cost Potential Cost Potential Cost [PJ/a] [€/GJ] [PJ/a] [€/GJ] [PJ/a] [€/GJ] UP 13 14 15 EEA Report 7 2006 UP 44 47 50 EEA Report 7 2006 UP 15 16 17 EEA Report 7 2006 Potential Cost [PJ/a] [€/GJ] UP Forestry residues 14,7 Wood processing residues Municipal solid waste Wet manures Black liquor Sewage sludge Other waste wood households packageing demolition Dry manures 72 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential 8. DENMARK 73 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Denmark has been self reliant on energy since 1999, with significant oil and gas production in the North Sea, and is a net exporter of energy. Denmark is the second largest producer of oil in the EU and oil plays an important role in the energy mix. Natural gas and renewable sources (RES) have been gradually replacing solid fuels and oil in primary energy supply. However, imported coal is still the most important fuel in electricity generation. Renewable energy has experienced a significant growth and shares in RES in primary energy and RES electricity in the electricity mix are above EU averages, specially in the case of wind energy, Denmark has become a global leader of installed wind power per capita and the Danish wind turbine industry exports serves about 1/3 of the world market. Denmark has the lowest energy consumption per unit of GDP in EU and highest contribution to electricity from new renewable in the EU. Denmark has achieved a de-coupling of economic growth and energy consumption since 1980 GDP has grown 56 %, but the primary energy consumption is only 2 % higher in 2004 than in 1980 and CO2 emissions have been reduced substantially: 35 % lower in 2004 compared to 1980. The de-coupling has been driven by the policies to promote district heating and energy savings as well as renewable energy. Indeed, in Denmark biomass is largely used at power stations and for development of smaller biomass-based cogeneration of heat and electricity. District heating accounts for approximately 50% of Denmark's heat demand. The average connection rate in district heating areas is 82% and is still increasing. Twelve of the 14 largest power stations in Denmark deliver all or part of their surplus heat to a district heating network. Nearly all large-scale power plants are located close to major cities. KEY FIGURES • • • • • • The share of RES in total primary energy consumption was of 15.01% in 200625. The share of RES in the gross final energy consumption was 17% in 2005. The share of RES in the gross electricity production was 26.59% in 2006. The share of RES heating and cooling was XXX of % in 2006. The share of all biofuels in the transport sector in 2006 was XXX Dependence on external energy supplies is of about -58.8% (Denmark is a net exporter of energy) Technology specific figures • In 2006, the wind energy in Denmark produced 6.108 GWh. This corresponded to 16.8% percentage of the electricity consumption in Denmark or to the consumption in about 1.73 million Danish households. In the first half of 2007 the turbines produced 3.934 GWh which corresponds to 21.7% of the electricity consumption in Denmark. By the end of January 2007 there was 5.267 turbines installed in Denmark with a total power of 3.135 MW. 877 MW offshore farms were installed by the end of 2006 In 2006 the offshore farms produced 22 % of the total electricity production from turbines • Biomass supplied some 12% of the energy consumed in 2006. • Hydropower only provides less than 1 % of the electricity production. 25 EurObserv’er 74 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Source: Danish Energy Authority RES POLICY RES TARGETS Mandatory targets set by the newly proposed RES Framework Directive from 200826 • 30% share of RES on the final consumption of energy in 2020. • At least 10% share of biofuels of final consumption of energy in transport in that Member State in 2020. Indicative Target set by the RES- electricity European Directive from 200127 • 29 % share of RES in gross electricity consumption by 2010. Indicative Target set by the European Biofuels Directive from 200328 • Biofuels consumption of 5.75% of petrol and diesel use for transport in 2010 on energy content. 26 Proposal for a Directive of the European Parliament and the Council on the promotion of the use of energy from renewable sources from January 2008(the targets agreed but the directive is on legislative process) 27 Directive 2007/71/EC on the promotion of electricity produced from renewable energy sources in the internal electricity market. Currently in force, sets targets up to 2010. 28 Directive 2003/30/EC on the promotion of the use of biofuels or other renewable fuels for transport Currently in force, sets targets up to 2010, with indicative targets by 2005. 75 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential National Commitments • On 19 January 2007 the Danish Government presented a comprehensive national energy proposal, "A visionary Danish energy policy", in view of negotiations with political parties. This proposal contains the objective that Denmark reduce its use of fossil fuels by at least 15% by 2025 compared to today, and that total energy consumption be maintained at its current level. The use of renewable energy is to be increased to account for at least 30% of energy consumption by 2025, and the proportion of biofuel for transport is to be increased to 10% by 2020. • In February 2008, the Danish parliament has agreed on plans for how to boost renewable energy production in the country. The aim is for renewables to cover 20 per cent of Denmark’s energy consumption by 2011. The agreement was made by all the parliamentary parties except the far-left Red-Green Alliance. Progress towards the target Biofuels for transport represented 0.15% of total sales of petrol and diesel for transport by 31 December 2006 and consequently exceeded Denmark's indicative target of 0.1%. Denmark is at present close to reaching its RES-E target for 2010. Support for RES electricity Fixed feed-in tariffs and premium The support is given in the form of premium and or as a fixed feed in tariff, so that the combination of market price and supplement ensures a fixed tariff for the producer. All subsidies are passed on to the consumers as an equal Public Service Obligation (PSO) tariff on their total consumptions. Feed-in Tariff Resource Technology Support level [€cents/ kWh] Feed-in tariff or premiu m? biomass solid 8 €cents/ kWh feed in Start year Duration [years that an investor is entitled to support] 20 years 8 €cents/kWh(8€cents/ kWh for 10 years and 5€cents/ kWh for the following 10 years.) feed in 5€cents/ kWh feed in PV 8 €cents/ kWh feed in 20 years Geothermal 6,9 €cents/ kWh feed in 20 years 1.3 €cents/ kWh premiu m biomass biomass biogas electricity generated by central power stations wind Comments 20 years 199 3 200 5 Biogas plants connected to the grid between 22 April 2004 – 31 December 2008 10 years 20 years For wind turbines connected after January 2005 Source: RISOE For RE plants connected to the grid before 21 April 2004: • The transmission system operator sells the production on the spot market and the subsidy together with the market price ensures a tariff of 60 øre/kWh (8 €cents/ kWh) for 20 years from the date of grid connection and for at least 15 years as from 1 January 2004. 76 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Special RE plants of major importance and connected to the grid after 21 April 2004: • Special plants using energy sources or technologies of major importance to future exploitation of RE electricity include wave power, solar energy, fuel cells using renewable energy sources, biomass gasifiers and stiring motors with biomass. Other types of plant can be approved apart from water turbines in rivers and production technologies already in use for biomass incineration. • The transmission system operator sells the production on the spot market and subsidy together with the market price, ensuring a tariff of 60 øre/kWh for 10 years (8 €cents/ kWh) and 40 øre/kWh (5€cents/ kWh) for the following 10 years. Other RE plants connected to the grid after 21 April 2004: • The transmission system operator sells the production on the spot market, and the owner receives the market price and for 20 years a premium of 10 øre/kWh (1.3 €cents/ kWh). Tenders Tendering procedure for two new large offshore installations. Operators will receive a spot price and initially a settling price as well. Subsequent offshore wind farms are to be developed on market conditions. A spot price, an environmental premium (EUR 13/MWh) and an additional compensation for balancing costs (EUR 3/MWh) for 20 years is available for new onshore wind farms. Fiscal incentives Small solar cell systems connected via consumption installation: Solar cell systems with an effect of less than 6 kW connected via consumption installations in households and that are exempt from electricity levies are not eligible for a subsidy. Next steps Resource Support level [Unit or %] Solar heating Biomass Exemption from CO2 and energy tax Exempt from CO2 tax Support for biofuels Biofuel quota obligations Resource Biofuels Quota in % (per year) 5.75% (energy) Year 2010 Comments Compulsory Tax exemption Since January 2005, the Danish Government exempts biofuels from the CO2 tax imposed on the use of ordinary petrol and diesel for transport. Investments in Second- generation biofuels The government decided in 2006 to significantly boost efforts to promote the use of secondgeneration biofuel technologies by allocating an additional DKK 200 million for the co-financing of large-scale private development programmes. Altogether, these additional private and public 77 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential development interventions are expected to total significantly more than DKK 200 million. The government intends to further enhance this effort by allocating more government funds. This will ensure that, before 2010, work can go ahead on the full-scale establishment of test facilities in Denmark. Annex I Danish Key energy data Annex II RES Electricity Potentials Annex III RES Bioenergy Potentials Sources: European Commission Factsheets by Country http://ec.europa.eu/energy/energy_policy/facts_en.htm Member States Reports in the framework of the Directive 2001/77/EC on renewable electricity http://ec.europa.eu/energy/res/legislation/electricity_member_states_en.htm Member States Reports in the framework of the Directive 2003/30/EC on biofuels http://ec.europa.eu/energy/res/legislation/biofuels_members_states_en.htm Danish Energy Authority http://www.ens.dk/ RISOE http://www.risoe.dk/ EurObserv’er Barometer http://www.energies-renouvelables.org/observ-er/sig/eufores/sig.asp In the framework of the EU co –funded project: RES 2020: Monitoring and Evaluation of the RES Directives implementation in EU27 and policy recommendations to 2020. The sole responsibility for the content of this publication lies with the authors. It does not represent the opinion of the Community. The European Commission is not responsible for any use that may be made of the information contained therein. Drafted in March 2008. 78 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Annex I Danish Key energy data 1980 1990 2006 Gross Energy Consumption per Capita [GJ] 159 160 159 Final Energy Consumption per Capita [GJ] 119 118 125 Energy Intensity, Gross Energy Consumption [TJ per Million GDP] 0.997 0.818 0.603 Energy Intensity, Final Energy Consumption [TJ per Million GDP] 0.747 0.603 0.474 Degree of Self-sufficiency [%] 5 52 144 Dependency of Oil [%] 67 43 40 Renewable Energy - Share of Gross Energy Consumption [%] 3.0 6.2 15.6 Gross Energy Consumption by Fuel Adjusted [PJ] 1980 1990 2000 2006 Total Gross Consumption 814 819 837 863 Oil 546 355 374 347 Natural Gas 0 82 192 191 Coal and Coke 241 327 176 182 Waste, Non-renewable 3 5 7 9 Renewable Energy Energy Production [PJ] 1980 1990 2000 2005 2006 Total Production 40 425 1 165 1 317 1 243 Crude Oil 13 256 765 796 724 Natural Gas 0 116 310 393 390 Waste, Non-renewable 3 4 7 9 9 Renewable Energy 24 48 83 119 79 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Annex II RES Electricity Potentials Description Unit 2005 2010 2015 2020 Total Wind Maximum Wind onshore Maximum Wind offshore Maximun PV Maximum solar thermal Total Hydro Maximum conventional hydro of which Maximum run of river Maximum Pumped Storage hydro Maximum Wave & Tide power plants Maximum geothermal conventional power plants Maximum geothermal hot dry rock power plants Maximum biomass power plants (conventional+CHP) Maximum biogas power plants (conventional+CHP) Maximum bio waste power plants (CHP) MW MW MW TWh MW MW MW MW MW TWh 3125 4229 4750 5840 8020 0.5 0 11 11 11 11 11.0 11.0 11 11 2025 2030 2.58 MW 0 MW 0 TWh 1.3 5.3 TWh 0.2 1.89 TWh 0.7 1.03 The previous tables present the data that have been gathered in the framework of the RES2020 project in order to be used in the modelling. The data have been collected • Through EREC and its Members • Through a revision of previous EU funded projects and reports (GreenX, OPTRES) • Through the partners of the project The data have been discussed in the framework of the REWG of the EnR with the country experts. The tables present an estimation of the technical potential that could be utilized as an upper bound by 2010, 2015, 2020 and 2030. As technical potential we are considering: • the future installed capacity of wind turbines without taking in mind financial issues at a "reasonable" wind speed as a possible upper limit in the development of the installed capacity over time. • the future installed capacity of hydro considering technical issues only and a possible upper limit in the development of the installed capacity over time. For some technologies potential may be unlimited (e.g. photovoltaics), so we are using upper bound limits within the relevant time frames. 80 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Annex III RES Bioenergy Potentials TABLE 1 Potentials agricultural bioenergy Description Sugar crops: sugar beet Step 1 Step 2 Step 3 Step 4 Starch crops: rye, oats, maize, wheat, barley, etc Step 1 Step 2 Step 3 Step 4 Grassy crops: switchgrass, miscanthus, sweet sorghum, etc Step 1 Step 2 Step 3 Step 4 Woody crops: willow, poplar Step 1 Step 2 Step 3 Step 4 Oil crops: sunflower, rapeseed Step 1 Step 2 Step 3 Step 4 Unit LimType 2000 2001 2005 2010 2015 2020 2025 2030 Potential Cost Potential Cost Potential Cost Potential Cost [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] UP 40,0 10,9 40,0 10,9 40,0 10,9 59,0 10,59 74,0 10,33 89,0 10,13 102,0 9,97 115,0 9,84 Potential Cost Potential Cost Potential Cost Potential Cost [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] UP 23,0 11,0 23,0 11,0 23,0 11,0 34,0 10,37 43,0 9,87 52,0 9,45 59,0 9,1 67,0 8,8 Potential Cost Potential Cost Potential Cost Potential Cost [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] UP 56,0 8,0 56,0 8,0 56,0 8,0 85 7,4 106 6,9 127 6,5 146 6,3 165 6,0 Potential Cost Potential Cost Potential Cost Potential Cost [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] UP 26,0 5,8 26,0 5,8 26,0 5,8 40,0 5,31 50,0 4,98 60,0 4,73 69,0 4,54 77,0 4,39 Potential Cost Potential Cost Potential Cost Potential Cost [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] UP 19,0 15,1 19,0 15,1 19,0 15,1 28,0 14,7 35,0 14,3 41,0 13,9 48,0 13,6 54,0 13,3 Source UP UP UP UP UP UP UP UP UP UP UP UP UP UP UP 81 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential TABLE 2 Potentials bioenergy from wastes Description Agricultural waste Unit LimType Potential [PJ/a] UP Cost [€/GJ] Potential Cost [PJ/a] [€/GJ] UP Potential Cost [PJ/a] [€/GJ] UP Potential Cost [PJ/a] [€/GJ] Potential Cost 2000 2001 2005 2010 2015 2020 2025 2030 Source 22 24 25 EEA Report 7 2006 Tafdrup, S. (2006): Danish policies and strategies on the implementation of biomass and biofuel technologies in the energy sector. Danish Energy Authority, Denmark, 2006. http://www.um.dk/NR/rdonlyres/17670257-E714-4285-ACDA-571BE0DAA914/0/Biomass1.pdf UP 9 10 10 EEA Report 7 2006 [PJ/a] [€/GJ] UP 33 35 38 EEA Report 7 2006 Potential Cost [PJ/a] [€/GJ] UP Potential Cost [PJ/a] [€/GJ] UP 4 4 4 EEA Report 7 2006 Potential Cost Potential Cost Potential Cost [PJ/a] [€/GJ] [PJ/a] [€/GJ] [PJ/a] [€/GJ] UP UP 4 4 4 EEA Report 7 2006 UP 9 10 10 EEA Report 7 2006 Potential Cost [PJ/a] [€/GJ] UP Forestry residues Wood processing residues Municipal solid waste Wet manures Black liquor Sewage sludge Other waste wood households packageing demolition Dry manures 82 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential 9. ESTONIA 83 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Estonian economy is highly dependent on fossil fuels. Approximately 90% of Estonia’s energy is produced through the combustion of fossil fuels. The remaining 10% comes from renewables, such as biomass, hydropower and wind. The main domestic energy source is the combustion of oil shale, which puts high pressure on the environment -approximately 70% of atmospheric pollution, 80% of effluents and 80% of generation of solid waste are connected with the oil shale power industry. Estonia is less dependent on energy imports than most EU Member States. Imports are mainly oil and gas (the latter exclusively from Russia). Security of energy supply is seen as an important issue and increased energy links with other Baltic and EU states are seen as key to enhancing security of supply. Estonia’s largest RES potential is to be found in the biomass sector, but possibilities also exist in the areas of wind power, biogas electricity and small hydro power. KEY FIGURES • The share of RES in total primary energy production was 12.46 % in 2006. • The share of RES in the gross final energy consumption was 1.91% in 2006. • The share of RES in the gross electricity production was 1.6% in 2006 • The share of all biofuels in the transport sector in 2006 was 0.12%. • Dependence on external energy supplies is of about 33.9% in 2005. Technology specific figures • In 2005, electricity production from RES amounted to 81.8 GWh: with wind accounting for 55,1 GWh(and 76.3 GWh in 2006), hydro for 21,5 GWh(13.5 GWh in 2006), black liquor for 4,1 GWh and landfill gas for 1,1 GWh. This represents 1,9% of total electricity. • Biofuel production in Estonia amounts to 6 ktoe in 2005. No bioethanol is currently being produced so this refers to biodiesel only. District heating covers ca 70% of total heat need in buildings. RES POLICY RES TARGETS Mandatory targets set by the newly proposed RES Framework Directive from 200829 • 25% share of RES on the final consumption of energy in 2020. • At least 10% share of biofuels of final consumption of energy in transport in that Member State in 2020. Indicative Target set by the RES- electricity European Directive from 200130 • 5.1 % share of RES on gross electricity consumption by 2010. Indicative Target set by the European Biofuels Directive from 200331 29 Proposal for a Directive of the European Parliament and the Council on the promotion of the use of energy from renewable sources from January 2008(the targets agreed but the directive is on legislative process) 30 Directive 2007/71/EC on the promotion of electricity produced from renewable energy sources in the internal electricity market. Currently in force, sets targets up to 2010. 31 Directive 2003/30/EC on the promotion of the use of biofuels or other renewable fuels for transport Currently in force, sets targets up to 2010, with indicative targets by 2005. 84 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential • Biofuels consumption of 5.75% of petrol and diesel use for transport in 2010. National Commitments The "Long-term national development plan for the fuel and energy sector until 2015" adopted through a decision of the Parliament on 15 December 2004 set a target for biofuel of 2% by 2006 and 5.75% by 2011, calculated on the basis of energy value. o 12 % of gross national energy consumption by 2010 The target is already achieved due to high share of wood and wood waste for heat production o 5,1% of gross national electricity consumption by 2010 and 8 % by 2015 Progress towards the target The production of electricity from renewable sources increased in the period 2005 -2006. At the same time consumption also increased (6 022 GWh in 2005 and 7 904 GWh in 2006), and therefore the share of renewable energy sources in total consumption even fell, from 1.8% in 2005 to 1.6% in 2006. Support for RES Electricity Feed-in tariff The Feed-In Tariffs are regulated by the Electricity Market Act which entered into force on July 1st, 2003. The Electricity Market Act was last amended in 2007. The version of the Act applying until 30 April 2007, required network operators to purchase in a trading period (at a price of EEK 0.81/kWh) all the electricity generated by a producer of renewable energy to the extent of the operator’s network losses. The main problem with this scheme was that a network operator who did not have a licence to sell electricity could not buy more electricity than the amount equivalent to his network losses in the trading period. This support scheme was above all a source of uncertainty for wind farms connected to the grid, since at times of low electricity consumption (for example summer nights) network losses are small and so the purchase obligation was also small. For this reason, in 2005 amendments were made to the Energy Market Act to introduce a new aid scheme, and this process was concluded on 15 February 2007, when Parliament passed the Act that came into force on 1 May 2007. • The new aid scheme for producers of renewable energy allows them to use the purchase obligation as before, but adds the possibility for a producer to sell the electricity produced itself and be given aid for the electricity sent to the grid and sold. • The mandatory purchase price for electricity produced from renewable energy sources has been raised by 42% (to EEK 1.15/kWh), and the possibility of using the purchase obligation is no longer restricted to the network losses. • In addition to making use of the purchase obligation, producers of renewable energy can now receive aid of EEK 0.84/kWh for electricity sent to the grid and sold, which offers the possibility if sales are good of earning considerably more than from the purchase obligation. • The duration of the aid scheme has also been extended: 12 years from the start of production (the previous Act allowed the aid scheme to be used for between 7 and 12 years, but no longer than until the end of 2015). • The general aid scheme also includes one restriction on producers using wind as a source of energy from 2009, in that aid will be paid to them or they will be able to use the purchase obligation until such time as the production in Estonia in a calendar year reaches limits of 400 GWh and 200 GWh respectively (producers must sell electricity produced above these 85 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential limits at market price without using the purchase obligation or aid). Separate records will be kept for each calendar year. The linking of the obligation to purchase electricity generated from wind power or the payment of aid to the annual production quantit y is a result of the technical particularities of the Estonian grid — there are no power stations in the grid that can be rapidly regulated. Most of the generating capacity in the electricity grid (more than 90 %) has been developed in the Narva area (North-Eastern Estonia), but the centres of consumption have evolved in other parts of the country (the main load centres are in Tallinn, Tartu and Pärnu and the surrounding areas). In order to cover peak loads and extend the use of wind power, it will be necessary to construct reserve capacity that can be rapidly regulated (mainly gas turbines) and modernise the grid along the west coast of Estonia and in the islands. The investment requirement for new power generation units up to 2015 is estimated at a total of EEK 10–15 billion, of which EEK 2–3 billion for generation from renewable energy sources. Resource Support level [€cents/ kWh] Start year Wind 74.2 €/MWh 2007 other renewables 74.2 €/MWh 2007 Wind 54.2 €/MWh 2010 other renwables. 54.2 €/MWh 2010 All RES 5.2-7.34 Duration [years that an investor is entitled to support] End year [of the scheme] Comments up to the annual total production of all wind farms 200 GWh From beginning operation 12 years up to the up to the annual total production of all wind farms 400 GWH 12 years 12 years of 2015 From beginning of operation Purchase obligation of wind energy from 2009 up to 200 GWh; from 2013 - up to 400 GWh. From 2009 balance responsibility for wind energy producers 1EURO: 15.64 EEK Support for RES Heat Biomass used for heating is the main source of Renewable energy: 90% of the production of firewood is used in households. Woodchips are also widely used in households. 86 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Resource Technology wood CHP any other CHP wood CHP any other CHP Support level (feed-in tariff) [EUR/MWh_th] feed-in 54.0 €/MWh feed-in 54.0 €/MWh support 33.3 €/MWh support 33.3 €/MWh Start year Duration [years that an investor is entitled to support] 2007 12 years 2007 12 years 2010 12 years if replacing a boiler-hous from the beginning of operation 2010 12 years if replacing a boiler-hous Comments from the beginning of operation Support for biofuels Biofuel is exempt from excise duty without any conditions since July 2005. If biofuel is added to fossil fuels, the portion of biofuel contained in such fuel is exempt from excise duty until the permit expires. A biofuel permit granted for six years by the Tax and Customs Board gives the right to produce biofuel, import it into Estonia and release it for consumption free of excise duty. It obliges the beneficiary together with the application to present specifications and a yearly report. Resource biodiesel Total support level (= tax exemption incl. reduction of VAT to be paid) [€cents/litre] no excise tax start year 2006 Duration [years of support entitled] 6 Under the Alcohol, Tobacco and Fuel Excise Duty Act, biofuel is exempt from excise duty once the European Commission has authorised it and until that authorisation expires. Biofuel, for which the first four digits of the CN code are 4401 or 4402, is unconditionally exempt from excise duty. Authorisation to exempt biofuel from excise duty was received from the European Commission in a letter dated 27 July 2005. Support for all RES Tax relief To promote the utilization and development of RES, some tax relieves from the usual 18% VAT have been stated. Project funding Some funding is available at the Estonian Fund for Nature (ELF), which grants subsidies to several environmental projects, among others, projects concerning sustainable development. Development plan to promote Bioenergy (2007-2013) The government of the Republic drew up the Development plan to promote the use of biomass and bio energy 2007-2013. The main objective of this plan is to create suitable conditions for the development of domestic biofuel and bio energy production, reduce Estonia's dependence on imported resources and fossil fuel. The intention is to implement the development plan in two phases: 87 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Phase I (2007-2008) will begin with studies to analyse the market, resources, technologies. In phase II (2009-2013) all the sound, well-justified market organisation measures to promote the use of biomass (subsidies, taxes, standards, knowledge acquisition, etc.) will be applied on the basis of the analyses and studies carried out in phase I. On 8 February 2007 the Government approved the Estonian Rural Development Plan 2007-2013 which provides support to: ‐ investments aimed at the production of biomass and biofuels in agricultural holdings. ‐ micro-companies producing forestry products to invest in tangible and intangible assets in order to procure and introduce new products, production methods and technologies, ‐ the production of biofuels from non-wood agricultural products and from the production waste from the manufacture of agricultural and non-wood forestry products. ‐ to applied research and product innovation with regard to bio energy crops and biofuels. In 2007 around EEK 700/ha will be paid in subsidies for energy crops, EEK 863.9/ha for growing agricultural crops and EEK 945/ha in standard agricultural subsidies. In 2006 applications for energy crop subsidies totalled 11 565.49 ha. Annex I RES Electricity Potentials Annex II RES Bioenergy Potentials Sources European Commission Factsheets by Country http://ec.europa.eu/energy/energy_policy/facts_en.htm Member States Reports in the framework of the Directive 2001/77/EC on renewable electricity http://ec.europa.eu/energy/res/legislation/electricity_member_states_en.htm Member States Reports in the framework of the Directive 2003/30/EC on biofuels http://ec.europa.eu/energy/res/legislation/biofuels_members_states_en.htm Ministry of Economics Affairs www.mkm.ee Tallin University of Technology www.ttu.ee EurObserv’er Barometer http://www.energies-renouvelables.org/observ-er/sig/eufores/sig.asp In the framework of the EU co –funded project: RES 2020: Monitoring and Evaluation of the RES Directives implementation in EU27 and policy recommendations to 2020 The sole responsibility for the content of this publication lies with the authors. It does not represent the opinion of the Community. The European Commission is not responsible for any use that may be made of the information contained therein. Drafted in March 2008. 88 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Annex I RES Electricity Potentials Description Unit 2005 2010 2015 2020 Total Wind Maximum Wind onshore Maximum Wind offshore Maximum solar PV Maximum solar thermal Total Hydro Maximum conventional hydro of which Maximum run of river Maximum Pumped Storage hydro Maximum Wave& Tide power plants Maximum geothermal conventional power plants Maximum geothermal hot dry rock power plants Maximum biomass power plants (conventional+CHP) Maximum biogas power plants (conventional+CHP) Maximum bio waste power plants (CHP) MW MW MW TWh MW MW MW MW MW TWh 32.05 307 935 505 430 1445 915 530 0.0 0 20 20 0.0 0.0 2025 2030 1805 905 900 0 MW 0 MW 0 TWh 0.94 TWh TWh 0.041 0.07 The previous table present the data that have been gathered in the framework of the RES2020 project in order to be used in the modelling. The data have been collected • Through EREC and its Members • Through a revision of previous EU funded projects and reports (GreenX, OPTRES) • Through the partners of the project The data have been discussed in the framework of the REWG of the EnR with the country experts. The tables present an estimation of the technical potential that could be utilized as an upper bound by 2010, 2015, 2020 and 2030. As technical potential we are considering: • the future installed capacity of wind turbines without taking in mind financial issues at a "reasonable" wind speed as a possible upper limit in the development of the installed capacity over time. • the future installed capacity of hydro considering technical issues only and a possible upper limit in the development of the installed capacity over time. For some technologies potential may be unlimited (e.g. photovoltaics), so we are using upper bound limits within the relevant time frames. 89 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Annex II RES Bionergy Potentials TABLE 1 Potentials agricultural bioenergy Description Sugar crops: sugar beet Step 1 Step 2 Step 3 Step 4 Starch crops: rye, oats, maize, wheat, barley, etc Step 1 Step 2 Step 3 Step 4 Grassy crops: switchgrass, miscanthus, sweet sorghum, etc Step 1 Step 2 Step 3 Step 4 Woody crops: willow, poplar Step 1 Step 2 Step 3 Step 4 Oil crops: sunflower, rapeseed Step 1 Step 2 Step 3 Step 4 Unit LimType Potential Cost Potential Cost Potential Cost Potential Cost [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] UP Potential Cost Potential Cost Potential Cost Potential Cost [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] UP Potential Cost Potential Cost Potential Cost Potential Cost [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] UP Potential Cost Potential Cost Potential Cost Potential Cost [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] UP Potential Cost Potential Cost Potential Cost Potential Cost [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] UP 2000 2001 2005 2010 2015 2020 2025 2030 8,0 8,2 8,0 8,2 8,0 8,2 16,0 8,18 21,0 8,24 25,0 8,39 28,0 8,67 30,0 9,13 10,0 8,2 10,0 8,2 10,0 8,2 20,0 7,91 25,0 7,64 30,0 7,44 33,0 7,29 36,0 7,21 19,0 16,9 19,0 16,9 19,0 16,9 38 15,5 49 14,5 60 13,7 67 13,1 74 12,7 25,0 2,6 25,0 2,6 25,0 2,6 52,0 2,43 67,0 2,32 82,0 2,27 92,0 2,28 101,0 2,35 8,0 6,3 8,0 6,3 8,0 6,3 17,0 6,1 22,0 5,9 26,0 5,8 29,0 5,7 31,0 5,7 Source UP UP UP UP UP UP UP UP UP UP UP UP UP UP UP 90 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential TABLE 2 Potentials bioenergy from wastes Description Agricultural waste Unit LimType 2000 2001 2005 2010 Potential [PJ/a] UP Cost [€/GJ] Potential [PJ/a] Cost [€/GJ] Potential Cost [PJ/a] [€/GJ] UP 31 33 36 Potential Cost [PJ/a] [€/GJ] UP 2 2 2 EEA Report 7 2006 Potential Cost [PJ/a] [€/GJ] UP 2 2 2 EEA Report 7 2006 1.8 according to (Roos and Soosaar, 2004) and (Kask, 2005) Potential Cost [PJ/a] [€/GJ] UP Potential Cost [PJ/a] [€/GJ] UP Potential Cost Potential Cost Potential Cost [PJ/a] [€/GJ] [PJ/a] [€/GJ] [PJ/a] [€/GJ] UP Potential Cost [PJ/a] [€/GJ] UP 2 2015 2020 2 2025 2030 2 Source EEA Report 7 2006 3.2 according to Koppel, A., and K. Heinsoo (2005): Renewable energy from biomass in Estonia: current status and outlook. Contribution of Agriculture to Energy Production, Tallin, Estonia, October 7, 2005. Forestry residues UP Wood processing residues 12 according to Roos, I., and S. Soosaar (2004): Status of Renewable Energy Development and Review of Existing Framework and Review of Existing Framework. ALTENER, May 2004. Kask, Ü. (2005): Biomass resources and utilization in Estonia. Tallinn University of Technology, 12-09-2005. EEA Report 7 2006 9 according to (Roos and Soosaar, 2004) and (Kask, 2005) Municipal solid waste Wet manures Black liquor 0.7 according to (Roos and Soosaar, 2004) and (Kask, 2005) Sewage sludge Other waste wood households packageing demolition UP UP Dry manures 91 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential 10. SPAIN 92 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential The Spanish economy is characterized by a relatively higher energy intensity than the rest of Europe, by a high dependence on energy imports, but also by rapid changes of the energy system in the last few years. Indeed, security & diversity of energy sources remain the major driving forces for the growth of Spain renewable energy industry. A stable legal framework based on feed-in tariffs with premium price recognising the environmental benefits promotes the development of renewable. Spain has become the world’s second largest producer of wind energy, behind Germany, and ahead of the United States. The success in the development of wind power in Spain has been accompanied by the creation of competitive companies now active in the international technology markets. The photovoltaic energy is characterized by a similar industrial development. Emerging technologies like concentrated solar power have ambitious targets for 2010. There is already one 10 MW solar tower power plant in operation, another one of 20 MW in construction and up to five 50 MW solar trough power plants also in construction. However, biomass has not developed as fast as expected (nor for electricity neither for heating purposes). Spain has very low district heat supply, and despite the fact that Spain has been the first European country to enforce the obligatory implementation of solar thermal energy in new and refurbished buildings, remaining administrative barriers restrain the further development of RES for heating and cooling market. Regarding biofuels, Spain is the second producer of bioethanol in Europe (behind Germany) and remains behind the big European biodiesel producers such as Germany, France, although its installed capacity is increasing. The recent increase of imports of subsidized biodiesel from the United States, given its lower price, slowed down the domestic production, so that Spain is a net exporter of biofuels. Finally, despite its increasing biofuel installed capacity, Spain is not a leader in biofuel consumption due to the existing barriers to blending biofuels with gasoline and diesel (technical and logistic barriers, especially regarding the blending of gasoline and bioethanol given the characteristics of bioethanol, as well as some preoccupations related to the consequences of the target on the gasoline and diesel markets given the current overproduction of gasoline in Spain where more than 70% of the fleet is based on diesel cars). KEY FIGURES Remark: The annual statistics must be considered with precaution given the rapid changes occurring in the Spanish energy system. For example, the production of hydroelectricity varied due to very dry past years; the wind electricity is rapidly increasing; the installed capacity of gas combined cycle has increased a lot in the very recent years (+35% in 2006-2007) reaching 22097 MW in 2007. • • • • • • The share of RES in Total Primary Energy Consumption was of 6.8% in 2006. This contribution is higher than in 2005 thanks to higher hydropower (2005 was a very dry year) and biofuels consumption. The consumption of Renewable Energy has grown in 2006 in 1.1 millions toe (12% growth with respect to 2005). The share of RES in the gross final energy consumption was 8.7% in 200532. The share of RES in the gross electricity production was 18.8% in 2006 (including hydroelectricity) with 57167 GWh (Coal: 69988 GWh, Nuclear: 60021 GWh). The share of RES heating and cooling was of 3.6% in 2006. The share of biofuels in the transport sector in 2006 was 0.53%; with a capacity production of biofuels was 107% higher than the capacity in 2005. Spain energy dependence on imports amounts to 78% in 2006. Technology specific figures • Wind power represents 7.5% of total electricity production with an increase in the installed capacity of 17% as regards 2005. More than 13 GW of wind are currently (2007) installed in Spain. 32 Please see EC definition of "final consumption of energy from renewable sources 93 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential • • • • Hydropower production has increased 35% as regards the production in 2005, the latter being a very dry year. It reached more than 36530 GWh in 2006, what remains below the historical levels. In 2006, PV reached 118 MW of capacity installed; Biogas 160 MW, and Biomass 409 MW Solar Thermal installed capacity reached 930 MW in 2006. 315 ktoe of biofuels were produced in 2006 (204 ktoe of bioethanol and 111 ktoe of biodiesel, equivalent to 321 kt bioethanol and 125 kt biodiesel) while the domestic consumption was 170 ktoe (114 ktoe of bioethanol and 56 ktoe of biodiesel). The difference was exported. Primary Energy in Spain (2006) Source: IDAE 94 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Electricity production in Spain (2006) Source: IDAE RES POLICY The Spanish Renewable Energy Plan (Plan de Energías Renovables en España, PER) for 20052010 represents a revision of the Spanish Promotion Plan for Renewable Energy (Plan de Fomento de las Energías Renovables en España) 2000-2010 in force up until 2005. The plan expects a contribution from RES (hydroelectricity included) of 12.1% of primary energy consumption in 2010, electricity generation from RES of 30.3% of gross electricity consumption, biofuels consumption of 5.83% of gasoline and diesel use for transport in 2010, and RES contribution of 4445 ktoe for heating and cooling. The volume of emissions avoided in 2010 as a result of the Plan is estimated to 27.3 million tonnes of CO2. RES TARGETS Mandatory targets set by the newly proposed RES Framework Directive from 200833 • 20% share of RES on the final consumption of energy in 2020. • At least 10% share of biofuels of final consumption of energy in transport in each Member State in 2020. 33 Proposal for a Directive of the European Parliament and the Council on the promotion of the use of energy from renewable sources from January 2008(the targets agreed but the directive is on legislative process) 95 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Indicative Target set by the RES- electricity European Directive from 200134 • 30.3 % Share of RES on gross electricity consumption by 2010 Indicative Target set by the European Biofuels Directive from 200335 • Biofuels consumption of 5.75% of petrol and diesel use for transport in 2010. National commitments • 12.1% of RES in Primary Energy Consumption by 2010. • 30.3% of gross electricity consumption generated by RES • Biofuels consumption of 5.83% of gasoline and diesel use for transport in 2010. • Indicative biofuels consumption target of 1.9% in 2008, mandatory targets of 3.4% in 2009 and 5.83% in 2010 (Disposición Adicional Decimosexta de la Ley 34/1998 del Sector de Hidrocarburos). This law is not yet fully approved but should be soon. RES Technology Roadmap • Please see annex II for the Spanish technology Roadmap up to 2010. Emerging technologies, such as concentrated solar power, have ambitious targets for 2010. Progress towards the Targets Spain is currently far from its RES-e target. The RES-e share of gross electricity consumption was 18.8% in 2006, compared to 19.9% in 1997. Despite the fast growth of some RES in Spain (i.e Wind), it remains too small to reach the 2010 target given the increase in electricity consumption. Electricity Installed capacity increase 20052006 (MW) New installed capacity target 2005-2010 (MW) Hydro (<50 112 810 MW) Biomass 65 973 Cofiring 0 722 Wind 3451 12000 Solar PV 81 363 Biogas 19 94 CSP 0 500 TOTAL 3728 15462 * 10 MW in 2007 and 270 MW in construction phase Rate of fulfillment * (observed increase 20052006 / targeted increase 20052010) 13.8% Capacity in 2006 (MW) Total capacity target 2010 (MW) 4757 5456 6.7% 0.0% 28.8% 22.3% 20.3% 0.0% 24.1% 409 0 11606 118 160 0* 17050 1317 722 20155 400 235 500 28785 34 Directive 2007/71/EC on the promotion of electricity produced from renewable energy sources in the internal electricity market. Currently in force, sets targets up to 2010. 35 Directive 2003/30/EC on the promotion of the use of biofuels or other renewable fuels for transport currently in force, sets targets up to 2010, with indicative targets by 2005. 96 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Heating and Cooling Biomass Solar Thermal TOTAL Installed capacity increase 20052006 (ktoe) 29 19 48 New installed capacity target 2005-2010 (ktoe) Rate of fulfillment Capacity in 2006 (ktoe) Target 2010 (Ktoe) 583 325 908 5.0% 5.8% 5.3% 3617 0.072 3689 4070 0.376 4446 According to recent statements of Spanish Ministry of Energy, in order to achieve the 2020 target of 20% share of RES in final energy consumption set in the proposal of the European Commission on a Renewable Energy Framework Directive from January 2008, Spain should achieve: • 42% of electricity coming from RES in 2020 (currently the share is 18%) • 6% share of RES in heating and cooling (currently is 3.6%) • 10% of biofuels (currently in 0.6%) MAIN POLICY INSTRUMENTS Support to RES Electricity Feed in Tariff for electricity generation Electricity generation in Spain has two different regimes, the ordinary regime (R.O.) to which all the conventional generation belong to, and the special regimen (R.E) to which the renewable energy generation and the CHP plants belong to. In this last regime a feed-in tariff promotion mechanism is implemented. Spain’s feed-in tariff incorporates both fixed total prices and price premiums added to the electricity market Price. Project developers should choose one of the following options: • Transfer electricity to the system through the transport or distribution grid, therefore being paid a feed-in tariff for it, unique for all the programming periods. • Sell the electricity on the wholesale electricity market. In this case, the electricity sale price will be the hour price resulting in the wholesale market supplemented if any, with a premium. In this last case, a new feature is introduced for some technologies, a higher and a lower limit (cap and floor). Tariffs have been updated in May 2007: Spanish ministers approved new rules curbing profits for wind generators and setting incentives for other types of renewable energy. The new rules guarantee an internal rate of return of 7 percent to wind and hydroelectric plants that opt to sell power to distributors direct and a return of between 5 and 9 percent if they participate in the electricity pool market. Tariffs will be revised every four years taking into account whether objectives have been achieved for different types of energy and the evolution of costs. These revisions will not affect plants that are already in operation. The Feed in System in Spain provides a stable framework for investments. Together with Regional support for planning, simple administrative procedures, specially in the case of wind energy, are the key elements for the rapid growth of RES-e in Spain. However issues such as updating and improvement of the regulatory procedures regarding grid access and operating conditions and establishment of a single operation centre for the Special Regime plants should be taken into account in the future policy developments. See annex III for a detailed description of the tariff system in Spain Support to RES Heating and Cooling 97 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Solar Thermal Obligation In March 2006: Spain has become one of the countries with the most advanced solar legislation in the world. On 17th March 2006, the Spanish government approved the new Technical Buildings Code (CTE, Codigo Tecnico de la Edificacion), the most significant reform of the Spanish building sector for decades. The new CTE built on the success of the previous municipal solar ordinances. The CET includes the following main areas: security of the buildings structure, fire safety, other safety and health issues, sustainability and energy efficiency of the buildings. The latter part ("Documento Basico HE - Ahorro de Energia") goes far beyond the minimal level of implementation of the EC Directive on the Energy Performance of Buildings and includes an obligation to cover 3070% of the Domestic Hot Water (DHW) demand with solar thermal energy. The solar thermal part applies to all new buildings and to those undergoing a renovation. It applies to any kind of buildings, independent of their use. Some exceptions are defined in the law; mainly in the case of buildings that either satisfy their DHW demand by other renewables or by cogeneration or for shaded buildings. Investment subsidies For RES heating and cooling technologies covering 36.4% of the total cost of the installation. Support to Biofuels Excise duty reductions for Biofuels To reduce the final price of biofuels and make them similar to the prices of the conventional petroleum-based fuels, fiscal incentives for biofuels commercialization were established in Law 22/2005, which incorporates several European directives about energetic products: until the end of year 2012, the Hydrocarbons Tax for biofuels will be of zero (instead of 0.278 €/liter for diesel and 0.371 €/liter for gasoline). It must be noted that biofuels are not exempted from two other existing taxes: • The “tax on the retail sales of certain hydrocarbons” (IVMH), including a national component of 0.024 €/liter as well as a regional component of approximatively also 0.024 €/liter; • The “value-added tax” (IVA) of 16%. Biofuel quota obligations In June 2007, the Spanish government has passed a new law (Disposición Adicional Decimosexta de la Ley 34/1998 del Sector de Hidrocarburos) making the blending of biofuels into petroleum fuel obligatory. It has set an interim target for 1.9% of biofuels to be blended into regular fuels in 2008 (not mandatory), which will become mandatory proportions of 3.4% in 2009 and 5.83% in 2010. Sanction could reach 30 millions €. This law has not yet been fully approved but should be soon. Resource Biofuels Biofuels Biofuels Quota in % (per year) 1.9% (energy) 3.4% (energy) 5.83% (energy) Year 2008 2009 2010 Comments Guideline only Compulsory Compulsory Fiscal incentives for Biofuels production a) Tax benefit for investment in biofuel production Law 36/2003 created special fiscal deduction in the Company Income Tax. It can be deducted 10% in the down payment for investments made in equipments and installations to convert agricultural products in biofuels. 98 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Investment subsidies for biofuels a) Subsidy to biofuel R&D projects The Spanish government has granted a subsidy of 22 millions € to a biodiesel R&D project involving several Spanish companies, including Repsol. The objective of the project is to reduce production costs, select and test new biomass feedstocks, including seaweed, waste cooking oils, and animal fats. b) Subsidy to bioethanol R&D projects The Spanish government has also granted a subsidy of 13.9 millions € to a bioethanol R&D project leaded by Abengoa. The objectives of the project are to promote the energy crops development, to make progress in the bioethanol thermochemical production, to develop the bioethanol market by introducing bioethanol-diesel mixtures, and to support the public research centers and universities to improve their knowledge and research capacities. Other measures stimulating the biofuels a) Support for farmers Farmers can receive, depending on the crop, a grant of 45 €/ha for growing energy crops, until the total surface in the EU devoted to energy crops do not exceed 1.5 Mha. While in the first year of introduction in 2004 in Spain, 6705 ha received the aid, the area increased to 27321 ha in 200536 and in 2006, 223500 ha received the energy crop support. The use of set-aside land to grow energy crops in Spain has not been very successful. Indeed, since productivity is around one-third less than in Germany or France, Spain did not benefit so much from the compensatory program37 (based on yield) of the European Common Agricultural Policy. b) Promotion of second generation biofuels Spain does not have any particular promotion plan or target for the utilisation of second generation biofuels. According to CIEMAT few R&D project have been funded by the Spanish research policy (1 in 2004, 2 in 2005 and 3 in year 2006). They are mostly concentrated in the conversion of lignocellulosic biomass into ethanol and only one has received funds to research in biohydrogen production. 36 In 2005, an estimated 0.5 MHa received the energy crop payment. The goal of this set-aside program is to prevent over-production and preserve farm income by providing a financial incentive for removing marginally productive or environmentally sensitive land from cultivation. 37 99 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Annexes Annex I. RES Installed capacity and electricity production in 2006 Annex II. Technology Roadmap until 2010 Annex III. Feed in Tariffs Annex IV RES electricity Potential Annex V RES Bioenergy Potentials Sources: European Commission Factsheets by Country http://ec.europa.eu/energy/energy_policy/facts_en.htm Member States Reports in the framework of the Directive 2001/77/EC on renewable electricity http://ec.europa.eu/energy/res/legislation/electricity_member_states_en.htm Member States Reports in the framework of the Directive 2003/30/EC on biofuels http://ec.europa.eu/energy/res/legislation/biofuels_members_states_en.htm Asociación de Productores de Energías Renovables (APPA) www.appa.es Cabal H., Y. Lechón, L. Izquierdo, N. Caldés, R. Sáez, 2007. El sistema electrico en la península ibérica. Aspectos medioambientales y costes sociales. Collección Documentos Ciemat, Madrid, Spain. 91 p. CIEMAT, 2007. Enhancement of the NEEDS-TIMES model on Biomass and RES electricity. Data for SPAIN. Project RES-2020, Update, December 2007. CIEMAT/ASE/E0215/RES2020/1. CIEMAT, Madrid, pain, 19 p. Neeft J., van Thuijil E., Wismeijer R. And Mabee WE., 2007. Biofuel implementation agendas. IEA Task 39, Report T39-P5, 52p. MITYC, IDAE, 2005. Plan de Energías Renovables en España 2005-2010. 345 p. Available at: http://www.idae.es/uploads/documentos/documentos_Plan_de_Energias_Renovables_en_Espana _completo_49e2ac7d.pdf Red Eléctrica de España (REE), 2007. El sistema electrico español. 116 p. www.ree.es Red Eléctrica de España (REE), 2008. El sistema electrico español, Avance del informe 2007. 26 p. www.ree.es In the framework of the EU co –funded project: RES 2020: Monitoring and Evaluation of the RES Directives implementation in EU27 and policy recommendations to 2020. The sole responsibility for the content of this publication lies with the authors. It does not represent the opinion of the Community. The European Commission is not responsible for any use that may be made of the information contained therein. Drafted March 2008. CIEMAT has widely contributed in the elaboration of this review. 100 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Annex I. RES Installed capacity and electricity production in 2006 Producción con energías renovables en 2006 Potencia (MW) Producción (GWh) Producción en términos de Energía Primaria (1) (Año Medio) (ktep) Producción en términos de Energía Primaria (Avance 2006) (ktep) Generación de electricidad Hidráulica (> 50 MW) (2) Hidráulica (Entre 10 y 50 MW) Hidráulica (< 10 MW) Biomasa R.S.U. Eólica Solar fotovoltaica Biogás Solar termoeléctrica 13.521,0 2.938,5 1.818,9 409 189 11.606 118 160 - TOTAL ÁREAS ELÉCTRICAS Usos térmicos 25.013,9 5.876,9 5.638,7 2.606 1.222,9 27.855 177 935 - 30.760 1.550 364 360,3 761 404,6 1.958 12 314,5 - 69.326 - 5.724 2 m Solar t. baja temp. Biomasa Biogás Solar térmica de baja temperatura Geotermia 2.151,2 505,4 484,9 808,2 395,1 2.395,5 15,2 302,4 7.058 (ktep) 3.457 31 72 8 3.457 31 72 8 3.568 3.568 549 549 9.842 11.175,6 CONSUMO DE ENERGÍA PRIMARIA (ktep) 145.086 145.086 Energías Renovables/Energía Primaria (%) 6,8% 7,7% 930.235 TOTAL ÁREAS TÉRMICAS Biocarburantes (Transporte) TOTAL BIOCARBURANTES TOTAL ENERGÍAS RENOVABLES (1): Datos de 2006, provisionales. Para energía hidráulica, eólica, solar fotovoltaica y solar térmica, se incluye la producción correspondiente a un año medio, a partir de las potencias y superficie en servicio a 31 de diciembre, de acuerdo con las características de las instalaciones puestas en marcha hasta la fecha, y no el dato real de avance de 2006. (2): Incluye producción con bombeo puro Source: IDAE 101 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Annex II Technology Roadmap until 2010 The Spanish Renewable Energy Plan (Plan de Energías Renovables en España, PER) for 20052010 represents a revision of the Spanish Promotion Plan for Renewable Energy (Plan de Fomento de las Energías Renovables en España) 2000-2010 in force up until now. These targets imply, in accordance with the data of the selected PER Scenario, a contribution from renewable energy sources (RES) of: - 12.1% of primary energy consumption in 2010, electricity generation from RES. 30.3% of gross electricity consumption, biofuels consumption of 5.83% of petrol and diesel use for transport in 2010, RES heating and cooling contribution with 4445 ktoe to primary energy consumption. ELECTRICITY As regards the targets for electricity generation from renewable sources, the table below shows the anticipated generation from renewable sources in 2010 and the forecast gross consumption of electricity in 2010. According to the Plan’s targets, renewable energy sources will provide the system with more than 100,000 GWh a year by 2010, equivalent to 30.3% of gross electricity consumption, thus fulfilling Spain’s target (RES-e Directive) of 29.4% in 2010. Source: PER 2005-2010 Wind Power The new target for the wind energy sector is an increase in output of 12000 MW over the period 2005-2010.This implies ending the decade with a total installed potential of 20155 MW. It must be noted that Spain does not yet have any off-shore wind farms. There are a number of ambitious plans for off-shore wind farm but it is considered unlikely that these projects will be developed during the period 2005-2010. If the current barriers to their implementation are overcome, which is an issue currently being addressed the installed capacity of offshore wind farms could reach 1000 MW around 2010. Hydropower The target for the hydroelectric generating potential to be developed over the period 2005-2010 has been set based on the hydroelectric schemes currently being constructed or for which permits have been applied for or plans submitted to the relevant authorities. The overall target for the increase of small hydro (up to 10 MW) is 450 MW over the period 2005-2010. This will enable an overall generating capacity of 2199MW from small hydro facilities in 2010. The overall target for large hydro (10-50 MW) is an increase in generating capacity of 360MW over the period 20052010, bringing the total up to 3257 MW. The more than 50 MW hydro plants are considered without change. Concentrated Solar Power The available solar resources, the technology experience gained in Spain from past research and development projects, the support in the form of a premium, and the presence of companies interested in the technological development of the sector make the concentrated solar power a promising technology for Spain.. There is one 10 MW solar tower power plant in operation, another 102 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential one of 20 MW in construction and up to five 50 MW solar trough power plants also in construction. However, more than 80 CSP projects are registered in the “Special Regime for Electricity Producers”, a pre-requisite for the construction, and 40 plants have already got the access point to be connected to the national electricity network. Therefore, the current outlook and existing initiatives are sufficient for 500 MW of generating capacity to be installed (production of 1298 GWh in 2010), as targeted in the PER. Solar Photovoltaic The Plan identifies a new target for an increase in photovoltaic capacity of 363 MWp over the period 2005-2010, reaching an installed capacity of 400 MW in 2010. Biomass for electricity In the case of electricity generation from biomass, the growth target over the period 2005-2010 is 1695 MW., reaching an installed capacity of 2039MW in 2010. Achieving this target relies mainly on three factors: - Implementation of a co-combustion plan for the combined combustion of biomass and coal at nineteen existing coal-fired power stations. - A proposed significant increase in the price paid for electricity generated by biomass facilities. - The existing Interministerial Biomass Commission, which it is hoped will add dynamism to the market. Biogas The target set for the biogas implies an increase of the installed capacity of 94 MW during the period, reaching an installed capacity of 235 MW in 2010. TRANSPORT Biofuels The table below shows the contribution of biofuels to targeted transport fuels consumption (gasoline and diesel). Under the PER, biofuels must account for 5.83% in 2010, thus also fulfilling the indicative target of 5.75% established for the target year. Source: PER 2005-2010 103 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential HEATING AND COOLING Solar Thermal Energy A target of an increase in installed collector area of 4200000 m2 over the period 2005-2010 has been set. The solar thermal energy applications could develop considerably in Spain with the approval of the Technical Building Code. Biomass for thermal uses In the case of thermal biomass, the target is an increase of 582.5 ktoe between present and 2010. To this end, a range of actions are envisaged to improve the waste supply logistics and the proposed creation of a new line of grant aid for investments. 104 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Source: PER 2005-2010 (http://www.idae.es/uploads/documentos/documentos_Plan_de_Energias_Renovables_en_Espana_completo_49e2ac7d.pdf) 105 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Annex III Feed in and Feed in Premium Tariffs Project developers should choose one of the following options: • Transfer electricity to the system through the transport or distribution grid, therefore being paid a feed-in tariff for it, unique for all the programming periods. • Sell the electricity on the wholesale electricity market. In this case, the electricity sale price will be the hour price resulting in the wholesale market supplemented if any, with a premium. In this last case, a new feature is introduced for some technologies, a higher and a lower limit (cap and floor). The titleholders of the facilities may choose the most suitable sale options for periods no shorter than a year. Nevertheless, the participation in the market is encouraged as it is deemed that in this way. Capacity (MW) Energy crops ≤2 >2 Agricultural residues ≤2 >2 Forest residues ≤2 >2 Landfill biogas Biogas from digesters ≤ 0.5 > 0.5 Manure Agricultural industry residues Forest industry residues ≤2 >2 ≤2 >2 Black liquor ≤2 >2 Life (y) 0-15 >15 0-15 >15 0-15 >15 0-15 >15 0-15 >15 0-15 >15 0-15 >15 0-15 >15 0-15 >15 0-15 >15 0-15 >15 0-15 >15 0-15 >15 0-15 >15 0-15 >15 0-15 >15 MSW Energy crops ≤2 0-15 >15 Feed in tariff Feed in tariff (c€/kWh) Biomass 15.889 11.7931 14.659 12.347 12.571 8.4752 10.754 8.066 12.571 8.4752 11.8294 8.066 7.992 6.51 13.069 6.51 9.68 6.51 5.36 5.36 12.571 8.4752 10.754 8.066 9.28 6.51 6.508 6.508 9.28 6.51 8 6.5080 5.36 Biomass CHP 16.0113 11.8839 Feed-in premium Reference Upper Lower feed-in limit limit premium (c€/kWh) (c€/kWh) (c€/kWh) 11.5294 0 10.0964 0 8.2114 0 6.1914 0 8.2114 0 7.2674 0 3.7784 0 9.7696 0 5.7774 0 3.0844 0 8.2114 0 6.1914 0 4.9214 0 1.9454 0 5.1696 0 3.2199 0 2.3 16.6300 15.4100 15.09 14.27 13.31 12.09 11.19 10.379 13.31 12.09 12.26 11.44 8.96 7.44 15.33 12.35 11.03 9.55 8.33 5.1 13.31 12.09 11.19 10.379 10.02 8.79 6.94 6.12 10.02 8.79 9 7.5 11.6608 0 106 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential >2 Agricultural residues ≤2 >2 Forest residues ≤2 >2 Landfill biogas Biogas from digesters ≤ 0.5 > 0.5 Manure Agricultural industry residues Forest industry residues ≤2 >2 ≤2 >2 Black liquor ≤2 >2 Solar PV < 0.1 0.1-10 > 10 Solar thermal Wind Onshore Geothermal, tide, ocean Hydro < 10 10 - 50 0-15 >15 0-15 >15 0-15 >15 0-15 >15 0-15 >15 0-15 >15 0-15 >15 0-15 >15 0-15 >15 0-15 >15 0-15 >15 0-15 >15 0-15 >15 0-15 >15 0-15 >15 0-25 > 25 0-25 > 25 0-25 > 25 0-25 > 25 0-20 > 20 0-20 > 20 0-25 > 25 0-25 > 25 14.659 12.347 12.7998 8.6294 10.754 8.066 12.7998 8.6294 11.8294 8.066 8.2302 6.704 13.3474 6.6487 9.9598 6.6981 5.36 5.36 12.7998 8.6294 10.9497 8.2128 9.4804 6.6506 7.1347 7.1347 9.4804 6.6506 9.3 7.5656 Other renewable 44.0381 35.2305 41.7500 33.4000 22.9764 18.3811 26.9375 21.5498 7.3228 6.1200 6.9800 6.5100 7.8000 7.0200 6.60+1.20*[(50capacity)/40] 5.94+1.08*[(50capacity)/40] 10.0964 0 8.4643 0 6.1914 0 8.4643 0 7.2674 0 4.0788 0 10.0842 0 6.1009 0 3.0844 0 8.4643 0 6.3821 0 5.1591 0 2.9959 0 5.4193 0 4.9586 0 25.4000 20.3200 2.9291 0.0000 3.8444 3.0600 2.5044 1.3444 2.1044 34.3976 25.4038 8.4944 7.1275 8.5200 6.5200 8.000 6.1200 1.3444 The premium to be paid every hour is calculated as follows: a) For values of the reference market price plus the reference premium lower or equal to the lower limit, the premium value to be paid shall be the difference between the lower limit and the daily market hourly price at that hour. b) For the reference market price values plus the reference premium included between the higher 107 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential and the lower limits, established for a given group or subgroup, the value to be paid shall be the reference premium for this group or subgroup, at that hour. c) For the reference market price values included between the higher limit and minus the reference premium and the higher limit, the value of the premium to be paid shall be the difference between the higher limit and the reference market price at that hour. d) For the reference market price values higher or equal to the higher limit, the price of the premium to be paid shall be zero at that time. The amounts of tariffs, premiums, supplements and cap & floor limits will be annually updated having the consumer price index (CPI) as a reference minus 0.25 until the 31st of December 2012 and minus 0.5 since then. During 2010, in view of the result of the follow-up reports on the extent of fulfilment of the Renewable Energies Plan (PER) 2005-2010 and of the Spanish Energy Saving and Efficiency Strategy, as well as the new objectives that may be included in the following Renewable Energies Plan for the 2011-2020 period, the review of tariffs, premiums, supplements and cap & floor limits will take place, bearing in mind the costs associated with each of these technologies, the extent of participation in the special scheme in the meeting of the demand and its effect on the technical and economical system, always guaranteeing reasonable profitability rates with reference to the price of money on the capital market. Every four years and from then on, a new revision will be done maintaining the criteria above. The new feed-in Law includes a premium for Biomass and/or biogas co-combustion in thermal power plants under the ordinary scheme. The agreement, reached in Cabinet Meeting with a prior consultation to the Autonomous Communities, may determine the right to receive a premium, specific for each installation, all along the first fifteen years since its commissioning. The calculation of the premium for each installation will be established case by case. Ministry of Industry, Tourism and Commerce is authorised specifically to issue the technical instructions that are necessary to establish a biomass and biogas certification system, which includes their traceability. Facilities using biomass and/or biogas shall send the information to be determined in the corresponding certification procedure. 108 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Annex IV RES electricity potential Description Unit 2005 2010 Total Wind Maximum Wind onshore Maximum Wind offshore Maximum solar PV Maximum solar thermal Total Hydro Maximum conventional hydro of which Maximum run of river Maximum Pumped Storage hydro Maximum Wave& Tide power plants Maximum geothermal Total Maximum geothermal conventional power plants Maximum geothermal hot dry rock power plants Maximum biomass power plants (conventional+CHP) Maximum biogas power plants (conventional+CHP) Maximum municipal waste power plants (CHP) MW MW MW TWh MW MW MW MW MW TWh TWh 9911 9911 0 0.1 0.0 18445 15718 1788 2727 22717 22171 0 MW 19105 14205 1160 4900 2015 2020 2025 2030 40186 33186 7000 5.13 5597 20807 14907 1935 5900 13.23 5.79 54202 44202 10000 800 1400 21622 15722 2033 5900 9.66 MW TWh 2.79 54.30 TWh 1.20 13.19 TWh 2.06 5.65 The following tables present the data that have been gathered in the framework of the RES2020 project in order to be used in the modelling. The data have been collected • Through EREC and its Members • Through a revision of previous EU funded projects and reports (GreenX, OPTRES) • Through the partners of the project The data have been discussed in the framework of the REWG of the EnR with the country experts. The tables present an estimation of the technical potential that could be utilized as an upper bound by 2010, 2015, 2020 and 2030. As technical potential we are considering: • the future installed capacity of wind turbines without taking in mind financial issues at a "reasonable" wind speed as a possible upper limit in the development of the installed capacity over time. • the future installed capacity of hydro considering technical issues only and a possible upper limit in the development of the installed capacity over time. For some technologies potential may be unlimited (e.g. photovoltaics), so we are using upper bound limits within the relevant time frames. 109 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential TABLE 1 Potentials agricultural bioenergy Description Sugar crops: sugar beet Step 1 Step 2 Step 3 Step 4 Starch crops: rye, oats, maize, wheat, barley, etc Step 1 Step 2 Step 3 Step 4 Grassy crops: switchgrass, miscanthus, sweet sorghum, etc Step 1 Step 2 Step 3 Step 4 Woody crops: willow, poplar Step 1 Step 2 Step 3 Step 4 Oil crops: sunflower, rapeseed Step 1 Step 2 Step 3 Step 4 Annex V RES Bionergy Potentials Unit LimType 2000 2001 2005 2010 2015 2020 2025 2030 Potential Cost Potential Cost Potential Cost Potential Cost [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] UP 45,0 9,4 45,0 9,4 45,0 9,4 89,0 9,01 141,0 8,69 192,0 8,4 246,0 8,15 300,0 7,92 Potential Cost Potential Cost Potential Cost Potential Cost [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] UP 32,0 14,0 32,0 14,0 32,0 14,0 64,0 13,15 101,0 12,48 138,0 11,91 176,0 11,42 215,0 10,99 Potential Cost Potential Cost Potential Cost Potential Cost [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] UP 80,0 5,9 80,0 5,9 80,0 5,9 160 5,4 259 5,1 358 4,8 463 4,6 569 4,4 Potential Cost Potential Cost Potential Cost Potential Cost [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] UP 38,0 3,0 38,0 3,0 38,0 3,0 76,0 2,76 124,0 2,62 172,0 2,5 224,0 2,4 275,0 2,31 Potential Cost Potential Cost Potential Cost Potential Cost [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] UP 26,0 10,9 26,0 10,9 26,0 10,9 51,0 10,6 81,0 10,3 111,0 10,0 142,0 9,8 174,0 9,5 Source UP UP UP UP UP UP UP UP UP UP UP UP UP UP UP 110 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential TABLE 2 Potentials bioenergy from wastes Description Agricultural waste Unit LimType Potential Cost [PJ/a] [€/GJ] UP Potential Cost [PJ/a] [€/GJ] UP Potential Cost [PJ/a] [€/GJ] UP Potential [PJ/a] UP Cost [€/GJ] Potential Cost [PJ/a] [€/GJ] Potential Cost 2000 2001 2005 2010 74 2015 2020 79 2025 2030 Source 83,7 EEA Report 7 2006 Forestry residues 6,7 €120/t ≈ €6.7/GJ: Wood processing residues 7 8 8,4 EEA Report 7 2006 55 59 62,8 EEA Report 7 2006 Korz, D.J. (2005): Status and trends of the residual waste treatment options (landfilling, mechanical-biological treatment, incineration) in selected EU member states: Spain. The future of residual waste management in Europe, 2005. UP 44 47 50,2 EEA Report 7 2006 [PJ/a] [€/GJ] UP 52 55 58,6 EEA Report 7 2006 Potential Cost [PJ/a] [€/GJ] UP Potential Cost Potential Cost Potential Cost [PJ/a] [€/GJ] [PJ/a] [€/GJ] [PJ/a] [€/GJ] UP UP 15 16 16,7 EEA Report 7 2006 UP 15 16 16,7 EEA Report 7 2006 Potential Cost [PJ/a] [€/GJ] UP 11 12 12,6 EEA Report 7 2006 Municipal solid waste 5,1 Wet manures Black liquor Sewage sludge Other waste wood households packageing demolition Dry manures 111 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential 11. FINLAND 112 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Bioenergy plays an important role in the decentralised and diversified Finnish energy system. Finland is one of the world leaders in utilising bioenergy. Almost 20 % of total primary energy consumption in Finland is met by bioenergy. The National Action Plan for Renewable Energy Sources (RES) aims at a further increase the use of biomass: by 2010, the use of bioenergy energy sources should be 30 per cent higher than in 2001. The RES National commitments for the year 2015 and 2025 aim to increase bioenergy utilisation in electricity and heat production. Currently in Finland CHP with biomass and biofuels are wider used, a main policy objective is to expand their RES-CHP-District heating schemes, but also biofuels in the transport sector. Finland policy framework for bioenergy has been very effective; however other RES with still potential in Finland are less developed. Additional support in the form of feed-in tariffs based on purchase obligations or green certificates is being considered for onshore wind power. A very important role in the Finish biomass sector plays peat. 30% of the total land area of Finland of 30.5 million hectares is classified as peatland. Peat is very often used in CHP plants, however Peat it is not a RES and it should not count for fulfillment of the RES targets of Finland. In May 2006, the Helsinki City Council voted to switch half of the city's public bus fleet to run on biodiesel made from biomass, animal fat and waste cooking oil. The three-year programme was slated to affect 700 vehicles and cut overall bus particle emissions by half. In May 2002 Finland's parliament approved the building a fifth nuclear power plant, to be in operation about 2009. The construction of the power plant is delayed. KEY FIGURES • The share of RES in total primary energy consumption was of 24% in 2006. ( 20% from Bio-energy). • The share of RES in the gross final energy consumption was 28.5 % in 2005. • The share of RES in the gross electricity production was 25.54% in 2006. 28.4% in 2005. In 2006 was lower due to the decrease in Hydropower production. • The share of all biofuels in the transport sector in 2006 was 0.02%. • Finland energy dependence on imports amounts to 69 % in 2005. 113 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Source: Statistics Finland, Energy Statistics RES POLICY Through subsidies and energy tax exemptions, Finland encourages investment in RES-e and REH&C. RES TARGETS Mandatory targets set by the newly proposed RES Framework Directive from 200838 • 38% share of RES on the final consumption of energy in 2020. • At least 10% share of biofuels of final consumption of energy in transport in that Member State in 2020. Indicative Target set by the RES- electricity European Directive from 200139 • 31.5 % Share of RES on gross electricity consumption by 2010 Indicative Target set by the European Biofuels Directive from 200340 • Biofuels consumption of 5.75% of petrol and diesel use for transport in 2010. National commitments • Increasing the use of renewable energy by at least 25% by 2015 and 40% by 2025 is a key objective of Finland’s energy policy. • The National Action Plan for Renewable Energy Sources was launched in 1999 and updated in 2002. By 2010, the use of bioenergy energy sources should be 30 per cent higher than in 2001. The RES National commitments for the year 2015 and 2025 aim to increase of bioenergy in electricity and heat production. • There is no national target/commitment for heating and cooling. Progress towards the targets Finland is nearing its RES-e target for 2010. 38 Proposal for a Directive of the European Parliament and the Council on the promotion of the use of energy from renewable sources from January 2008(the targets agreed but the directive is on legislative process) 39 Directive 2007/71/EC on the promotion of electricity produced from renewable energy sources in the internal electricity market. Currently in force, sets targets up to 2010. 40 Directive 2003/30/EC on the promotion of the use of biofuels or other renewable fuels for transport Currently in force, sets targets up to 2010, with indicative targets by 2005. 114 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Support for Electricity Finland’s energy market is fully liberalised, right down to the level of the individual private consumer. Market support for renewable electricity consists of two instruments. Investment Subsidies First, the construction costs of renewable energy plant are co-financed by the government with grants of up to 40% in the case of wind. This applies to companies. In the recent year’s wood plants for energy and fuel production have been the ones mostly benefiting from this scheme (60% of the total grants in 2006). Biogas plants received 7% of the total budget that year (2,5 M€)41. Tax refunds for suppliers of renewable electricity The government imposes a per kWh tax on all Finnish electricity suppliers, which they pass on to their end consumers. The government refunds this tax to suppliers of renewable electricity, however, at 0.69 c€/kWh (wind). Guaranteed access to the grid For all electricity users and electricity-producing plants, including RES-e generators (Electricity Market Act – 386/1995) Feed in Tariff or Green Certificates Additional support in the form of feed-in tariffs based on purchase obligations or green certificates is being considered for onshore wind power Support for Heating and Cooling Investment Subsidies The construction costs of renewable energy plant are co-financed by the government with grants of up to 30%. This applies to companies. Direct investment support for individual biomass heating installations. Fiscal Incentives Taxes imposed on heat, are calculated on the basis of the net carbon emissions of the input fuels and are zero for renewable energy sources. Support for Biofuels Quota Obligations On the basis of an expert group's proposals, on 19 October 2006 the Government submitted a legislative proposal to the Finnish Parliament concerning the promotion of biofuels in transport. The proposal aims to create demand for biofuels by placing an obligation in respect of the marketing of biofuels on the distributors of transport fuels. The proposed law has been submitted to the Finnish Parliament, and is due to enter into force on 1st January 2008. The proposal sets out a minimum percentage of biofuels to be supplied for consumption annually by the distributors of transport fuels. This minimum percentage would increase annually from, in 2008, at least 2% of the total energy content of the petrol, diesel oil and biofuels supplied by a distributor of transport fuels. In 2009, the share would be at least 4%, and in 2010 and afterwards annually at least 5.75%. A separate Government decree would, however, provide for the entry into force of the 2010 obligation. The obligation would be enforced if the quality standards of fuels, in 2010, allow the mixing of the required percentages of biofuels with petrol and diesel oil. The obligation would only apply to the total amount of biofuels, allowing the distributors to fulfill the obligation by using biofuels to replace petrol or diesel oil in a ratio they choose within the limits of the quality standards. Neither would the law regulate the origin of the biofuel. The distributors could subcontract their obligation wholly or partially to another company. 41 Figures from the Finish report connected to the biofuels directive 115 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Irrespective of contracts, each distributor would be accountable to the Government for fulfilling his obligation either personally or through a contractor. If the distributor failed to fulfill his obligation, the customs authorities would impose a penalty fee. Resource Biofuels Quota in % (per year) 2% in 2008 4% in 2009 5.75% in 2010 Annex I Finland RES Electricity Potentials Annex II RES Bioenergy Potentials Sources: European Commission Factsheets by Country http://ec.europa.eu/energy/energy_policy/facts_en.htm Member States Reports in the framework of the Directive 2001/77/EC on renewable electricity http://ec.europa.eu/energy/res/legislation/electricity_member_states_en.htm Member States Reports in the framework of the Directive 2003/30/EC on biofuels http://ec.europa.eu/energy/res/legislation/biofuels_members_states_en.htm Motiva http://www.motiva.fi/en/ VTT http://www.vtt.fi/ EurObserv’er Barometer http://www.energies-renouvelables.org/observ-er/sig/eufores/sig.asp In the framework of the EU co –funded project: RES 2020: Monitoring and Evaluation of the RES Directives implementation in EU27 and policy recommendations to 2020 The sole responsibility for the content of this publication lies with the authors. It does not represent the opinion of the Community. The European Commission is not responsible for any use that may be made of the information contained therein. Drafted March 2008 116 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Annex I Finland RES Electricity Potentials Description Unit 2005 2010 2015 2020 Total wind Maximum Wind onshore Maximum Wind offshore Maximum solar PV Maximum solar thermal Total Hydro Maximum conventional hydro of which Maximum run of river Maximum Pumped Storage hydro Maximum Tide & Wave power plants Maximum geothermal conventional power plants Maximum geothermal hot dry rock power plants Maximum biomass power plants (conventional+CHP) Maximum biogas power plants (conventional+CHP) Maximumbiowaste power plants (CHP) MW MW MW TWh MW MW MW MW MW 82 82.0 500 280.0 220 1600 500.0 1100 6000 2100.0 3900 2999 2999 3141 3141 3000 900.0 2100 0.6 0 3437 3437 0 0 0 0 TWh 1.54 TWh 0 MW 0 TWh 9.8 20.51 TWh 0.1 1.25 TWh 0.2 0.71 2025 2030 3437 3437 The previous table present the data that have been gathered in the framework of the RES2020 project in order to be used in the modelling. The data have been collected • Through EREC and its Members • Through a revision of previous EU funded projects and reports (GreenX, OPTRES) • Through the partners of the project The data have been discussed in the framework of the REWG of the EnR with the country experts. The tables present an estimation of the technical potential that could be utilized as an upper bound by 2010, 2015, 2020 and 2030. As technical potential we are considering: • the future installed capacity of wind turbines without taking in mind financial issues at a "reasonable" wind speed as a possible upper limit in the development of the installed capacity over time. • the future installed capacity of hydro considering technical issues only and a possible upper limit in the development of the installed capacity over time. For some technologies potential may be unlimited (e.g. photovoltaics), so we are using upper bound limits within the relevant time frames. 117 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential TABLE 1 Potentials agricultural bioenergy Description Sugar crops: sugar beet Step 1 Step 2 Step 3 Step 4 Starch crops: rye, oats, maize, wheat, barley, etc Step 1 Step 2 Step 3 Step 4 Grassy crops: switchgrass, miscanthus, sweet sorghum, etc Step 1 Step 2 Step 3 Step 4 Woody crops: willow, poplar Step 1 Step 2 Step 3 Step 4 Oil crops: sunflower, rapeseed Step 1 Step 2 Step 3 Step 4 Annex II RES Bionergy Potentials Unit LimType 2000 2001 2005 2010 2015 2020 2025 2030 Potential Cost Potential Cost Potential Cost Potential Cost [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] UP 5,0 12,4 5,0 12,4 5,0 12,4 8,0 11,93 10,0 11,54 12,0 11,2 13,0 10,9 15,0 10,63 Potential Cost Potential Cost Potential Cost Potential Cost [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] UP 14,0 13,5 14,0 13,5 14,0 13,5 23,0 12,75 28,0 12,11 34,0 11,57 38,0 11,1 42,0 10,7 Potential Cost Potential Cost Potential Cost Potential Cost [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] UP 27,0 18,6 27,0 18,6 27,0 18,6 45 17,1 55 15,9 65 14,9 74 14,2 82 13,5 Potential Cost Potential Cost Potential Cost Potential Cost [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] UP 19,0 4,1 19,0 4,1 19,0 4,1 30,0 3,79 37,0 3,56 44,0 3,37 50,0 3,23 55,0 3,11 Potential Cost Potential Cost Potential Cost Potential Cost [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] UP 6,0 9,6 6,0 9,6 6,0 9,6 10,0 9,3 13,0 9,1 15,0 8,8 17,0 8,6 19,0 8,4 Source UP UP UP UP UP UP UP UP UP UP UP UP UP UP UP 118 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential TABLE 2 Potentials bioenergy from wastes Description Agricultural waste Unit LimType 2000 2001 2005 2010 Potential Cost [PJ/a] [€/GJ] UP Potential Cost [PJ/a] [€/GJ] UP Potential Cost [PJ/a] [€/GJ] UP 40 43 46 EEA Report 7 2006 Potential Cost [PJ/a] [€/GJ] UP 9 10 10 EEA Report 7 2006 Potential Cost [PJ/a] [€/GJ] UP 7 8 8 EEA Report 7 2006 Potential Cost [PJ/a] [€/GJ] UP 147 157 167 EEA Report 7 2006 Potential Cost [PJ/a] [€/GJ] UP 4 4 4 EEA Report 7 2006 Potential Cost Potential Cost Potential Cost [PJ/a] [€/GJ] [PJ/a] [€/GJ] [PJ/a] [€/GJ] UP 4 4 4 EEA Report 7 2006 7 8 8 EEA Report 7 2006 Potential Cost [PJ/a] [€/GJ] UP 15 2015 2020 16 2025 2030 17 Source EEA Report 7 2006 Forestry residues Sipilä, K., et al. (2005): Raw materials availability to synfuels production and remarks on RTD goals. Synbios, Stockholm, Sweden, 18-19 May 2005. http://www.ecotraffic.se/synbios/konferans/presentationer/18_maj/synbios_sipila_kai.pdf Wood processing residues Municipal solid waste Wet manures Black liquor Sewage sludge Other waste wood households packageing demolition UP UP Dry manures 119 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential 12. FRANCE 120 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential France faces an energy import dependency close to average EU levels, with the majority of imports being oil. The share of gas, also imported, has been steadily increasing in recent years. Electricity production in France is dominated by nuclear energy which amounts approximately to 78% and hydropower. Renewable sources such as biomass and hydro, participate to a significant extent to the energy mix. However, France is developing policies aimed at a more diversified mix increasing wind and photovoltaic electricity, solar energy for heat and biofuels. France has the second biggest potential in the EU in terms of wind energy and a very good potential in terms of solar and geothermal energy. All Renewable energy sectors have features in 2006 significant growth rates. Despite these growth rates, the share of renewable energy in the energy mix does not increase as energy demand has been growing steadily. KEY FIGURES • The share of RES in total primary energy consumption was of 12.2% in 2006. • The share of RES in the final energy consumption was 10.3% in 2006. • The share of RES in the gross inland electricity production was 12.1% in 2006. • The share of all biofuels in the transport sector in 2006 was 1.77% en 2006. • France’s energy dependence on imports amounts to 54.5%in 2005. Technology Specific figures • Wood represents almost 9 millions toe and is the main source of renewable energy in France. • Hydroelectricity increased by 7,8% in 2006 reaching 56.4 TWh. However, its production remains weak compared to the average of the last 20 years. Hydropower provides 14 % of the French electricity production and 95 % of renewable electricity. • Wind energy production reached 2150 GWh in 2006. Production increased by 123% compared to 2005. • Photovoltaics features significant growth rates as well. Production in 2006 increased by 50% to reach 54 GWh. RES POLICY RES TARGETS Mandatory targets set by the newly proposed RES Framework Directive from 200842 • 23% share of RES on the final consumption of energy in 2020. • At least 10% share of biofuels of final consumption of energy in transport in that Member State in 2020. 42 Proposal for a Directive of the European Parliament and the Council on the promotion of the use of energy from renewable sources from January 2008(the targets agreed but the directive is on legislative process) 121 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Indicative Target set by the RES- electricity European Directive from 200343 • 21 % share of RES on gross electricity consumption by 2010 Indicative Target set by the European Biofuels Directive from 200144 • Biofuels consumption of 5.75% of petrol and diesel use for transport in 2010. And 2% in 2005. National Commitments The 2005 French Energy law laid down the basis of French energy policy: • 10 % of the energy consumption should come from renewable energy sources by 2010 • 50 % increase of renewable heat (which in the end should amount to 10 Mtoe in 2005) • 5.75% by the end of 2008, 7 % biofuels incorporated in 2010 and 10% in 2015. In September 2005, the Prime Minister presented measures to encourage the production of biofuels. The objective to incorporate biofuels at 5.57% initially anticipated for 2010 is now expected to be attained in 2008. Progress towards the targets The objective set for 2005 by the biofuels 2003/30/EC Directive hasn’t been reached yet in France (2%).However, French government estimates that the objectives set for 2010 will be reached. RES POLICY INSTRUMENTS Support for RES electricity Feed-in Tariffs Feed-in tariffs were introduced in 2001 and modified in 2005 for photovoltaic, hydro, biomass, biogas, geothermal, offshore wind, onshore wind, and Combined Heat and Power. Tariffs are guaranteed on 15 to 20 years. Tariffs were revised in 2006 and 2007 to take account of the investment and managing costs together with a premium taking into consideration improvements of air quality and reduction of greenhouse gases. Resource Technology hydro small wind onshore wind offshore biomass solid Support level [€cents/ kWh] 6,07 c€/kWh + premium between 0,5 and 2,5 for small installations + premium between 0 and 1,68 c€/kWh in winter according to the production's regularity 8,2 c€/kWh during 10 years, then between 2,8 et 8,2 c€/kWh during 5 years depending on the location's productivity. 13 c€/kWh during 10 years, then between 3 and 13 c€/kWh during 10 years depending on the location's productivity. 4,9 c€/kWh (32,1 cF/kWh) + premium for energy efficiency between 0 and 1,2 c€/kWh (7,8 cF/kWh) Feed-in tariff or premium? Start year Duration [years that an investor is entitled to support] feed-in tariff 2007 20 years feed-in tariff 2006 15 years feed-in tariff 2006 20 years feed-in tariff 2002 15 years 43 Directive 2007/71/EC on the promotion of electricity produced from renewable energy sources in the internal electricity market. Currently in force, sets targets up to 2010. 44 Directive 2003/30/EC on the promotion of the use of biofuels or other renewable fuels for transport Currently in force, sets targets up to 2010, with indicative targets by 2005. 122 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Resource Technology biomass gasification (biogas) PV Geothermal Ocean energy Support level [€cents/ kWh] Between 7,5 and 9 c€/kWh according to capacity + premium for energy efficiency between 0 and 3 c€/kWh , + premium for méthanisation of 2c€/kWh Métropole : 30 c€/kWh , + premium for building integration of 25 c€/kWh - Corsica, Overseas departments, Mayotte : 40 c€/kWh , + premium for building integration of 15 c€/kWh . Métropole : 12 c€/kWh , + premium of energy efficiency between 0 and 3 c€/kWh - overseas departments : 10 c€/kWh , + primum for energy efficiency between 0 and 3 c€/kWh Feed-in tariff or premium? Start year Duration [years that an investor is entitled to support] feed-in tariff 2006 15 years feed-in tariff 2006 20 years feed-in tariff 2006 15 years 15c/kWh 20 years A tender system exists for large renewable projects. Producers winning the tenders have a contract with the price they proposed in the tenders. In 2005, the French government made public its selection of tenders: ‐ 14 biomass projects (216MW) and one biogas project (16 MW). ‐ An offshore wind project (105 MW) ‐ 7 onshore wind farms (278MW). A new tender has been launched in 2006 (in total 300MW). Tax credit: In 2005, tax credits were set up (50% since 2006) for equipments using renewable energy source. Resource Technology Solar PV biomass Wind hydro Support level [% deduction from taxable profits] 50% of the equipment costs 50% of the equipment costs 50% of the equipment costs 50% of the equipment costs Start year End year Comments 2009 For households 2009 For households 2009 For households 2009 For households 2006 2006 2006 2006 Reduction in VAT- Tax 5,5% reduction in VAT for residential energy equipment using RES Support for Heat France has developed an extensive programme to encourage the use of wood fuel for heating in collective housing: the Wood Energy Plan which leads in 2005, to an increase of 23% of the wood energy equipment sales for households Tax credit: 123 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential In 2005, tax credits were set up (50% since 2006) for equipments using renewable energy source (efficient wood fired boilers, for household of the cost of equipment) Resource Solar Technology solar thermal Support level [%/total investment] 50% of the equipment costs Start year End year Comments 2006 2009 For households Biomass combustion 50% of the equipment costs 2006 2009 For households concerning the purchase of efficient wood fired boilers Biomass plants Combustion subsidies up to 40% of investment costs 2006 2009 For businesses VAT-reduced rates Resource Technology Support level [% reduction of VAT] For residential equipment using RES (purchase and installation)- biomass boiler 5,5% reduction in VAT Support for Biofuels Quota Obligation Law 2005-781 of July, 13 2005 setting the orientation of the French Energy Policy sets the following objectives for the incorporation of biofuels. Resource Biofuels Quota in % (per year) 5.75% 6.25% 7% 10% Year 2008 2009 2010 2015 Tax exemption There is a fiscal system of partial exoneration from the Interior Consumption Tax, which allows compensation for thecost of fabrication of biofuels compared to that of fossil fuels. This tax exemption is granted for biofuels produced by factories which have been selected in accordance with an invitation to tender published in the Official Journal of the EU. The amount of tax reduction is adjusted each year. For the year 2006, the total amount of fiscal exoneration for biofuels is in the order of 260M Euro. (for FAME-25 euros/hl, Biodiesel synthetised-25 euros/hl, for FAEE-30 euros/hl, for ethanol -33 euros/hl and ETBE-33 euros/hl). France also decided to accelerate E85 development in one hand and to increase the upper limit for the incorporation of FAME from 5% to 7% from January 2008. 124 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential E85:An agreement has been signed between professionals with the Prime Minster to allow the use of E85 in France in January 2007. Fame: according to the Law of January2006, farmers are allowed to use pure vegetable oils to run agricultural equipment for an experimental one-year period. Reduced Excise Tax on consumption Resource Ethanol / ETBE (éthyl tertio butyl éther) EMHV (biodiesel- ester méthylique d'huiles végétales) EEHV(Biodieselester éthylique d'huiles végétales) Exemption of motor-fuel taxes for agreed biofuel plants Total support level (= tax exemption incl. reduction of VAT to be paid) start year 33 euros per hectoliter in 2007 2003 25 euros per hectoliter in 2007 2003 These amounts are adjusted every year 30 euros per hectoliter in 2007 2006 These amounts are adjusted every year Comments These amounts are adjusted every year General Tax on Polluting Activities Operators (refiners, supermarkets and independents) who incorporate levels of biofuels inferior to the anticipated national objectives must acquit, according to the 2005 Financial Law a supplementary payment of General Tax on polluting activities. The rate of the tax decreases according to the amount of biofuels put on the market. Annex I. RES Electricity Potentials Annex II RES Bioenergy Potentials Sources: European Commission Factsheets by Country http://ec.europa.eu/energy/energy_policy/facts_en.htm Member States Reports in the framework of the Directive 2001/77/EC on renewable electricity http://ec.europa.eu/energy/res/legislation/electricity_member_states_en.htm Member States Reports in the framework of the Directive 2003/30/EC on biofuels http://ec.europa.eu/energy/res/legislation/biofuels_members_states_en.htm In the framework of the EU co –funded project: RES 2020: Monitoring and Evaluation of the RES Directives implementation in EU27 and policy recommendations to 2020 The sole responsibility for the content of this Publication lies with the authors. It does not represent the opinion of the Community. The European Commission is not responsible for any use that may be made of the information contained therein. Drafted: March 2008 125 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Annex I. RES Electricity Potentials Description Unit 2005 2010 2015 2020 2025 Total Wind Maximum Wind onshore Maximum Wind offshore Maximum solar PV Maximum solar thermal Total Hydro Maximum conventional hydro of which Maximum run of river Maximum Pumped Storage hydro Maximum tide &Wave Power Maximum geothermal Total Maximum geothermal dry steam & flash power plants (>180°C) Maximum geothermal binary power plants (180°C<x<85°C) Maximum geothermal EGS power plants Maximum biomass power plants (conventional+CHP) Maximum biogas power plants (conventional+CHP) MaximumBiowaste power plants (CHP) MW 700 9680 23000 37000 MW MW TWh 0.01 5.91 TWh MW 25181 24200 24200 MW 20881 20200 20200 MW MW 4300 4000 4000 TWh 0 13 TWh 0.18 2030 49950 12.00 24400 20200 4000 MW MW MW 15 15 1500 TWh 68.44 TWh TWh 22.84 6 The previous table present the data that have been gathered in the framework of the RES2020 project in order to be used in the modelling. The data have been collected • Through EREC and its Members • Through a revision of previous EU funded projects and reports (GreenX, OPTRES) • Through the partners of the project The data have been discussed in the framework of the REWG of the EnR with the country experts. The tables present an estimation of the technical potential that could be utilized as an upper bound by 2010, 2015, 2020 and 2030. As technical potential we are considering: • the future installed capacity of wind turbines without taking in mind financial issues at a "reasonable" wind speed as a possible upper limit in the development of the installed capacity over time. • the future installed capacity of hydro considering technical issues only and a possible upper limit in the development of the installed capacity over time. For some technologies potential may be unlimited (e.g. photovoltaics), so we are using upper bound limits within the relevant time frames. 126 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential TABLE 1 Potentials agricultural bioenergy Description Sugar crops: sugar beet Step 1 Step 2 Step 3 Step 4 Starch crops: rye, oats, maize, wheat, barley, etc Step 1 Step 2 Step 3 Step 4 Grassy crops: switchgrass, miscanthus, sweet sorghum, etc Step 1 Step 2 Step 3 Step 4 Woody crops: willow, poplar Step 1 Step 2 Step 3 Step 4 Oil crops: sunflower, rapeseed Step 1 Step 2 Step 3 Step 4 Annex II RES Bionergy Potentials Unit LimType 2000 2001 2005 2010 2015 2020 2025 2030 Potential Cost Potential Cost Potential Cost Potential Cost [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] UP 159,0 8,8 159,0 8,8 159,0 8,8 237,0 8,43 295,0 8,13 354,0 7,87 414,0 7,64 473,0 7,42 Potential Cost Potential Cost Potential Cost Potential Cost [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] UP 98,0 8,7 98,0 8,7 98,0 8,7 146,0 8,22 182,0 7,81 218,0 7,45 255,0 7,15 292,0 6,89 Potential Cost Potential Cost Potential Cost Potential Cost [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] UP 264,0 5,3 264,0 5,3 264,0 5,3 481 5,0 666 4,7 850 4,5 1040 4,3 1231 4,1 Potential Cost Potential Cost Potential Cost Potential Cost [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] UP 319,0 3,4 319,0 3,4 319,0 3,4 571,0 3,23 783,0 3,06 994,0 2,91 1214,0 2,79 1433,0 2,69 Potential Cost Potential Cost Potential Cost Potential Cost [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] UP 61,0 8,1 61,0 8,1 61,0 8,1 91,0 7,9 114,0 7,7 136,0 7,5 159,0 7,3 182,0 7,1 Source UP UP UP UP UP UP UP UP UP UP UP UP UP UP UP 127 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential TABLE 2 Potentials bioenergy from wastes Description Agricultural waste Unit LimType 2000 Potential Cost [PJ/a] [€/GJ] UP Potential Cost [PJ/a] [€/GJ] UP 158,0 Potential Cost [PJ/a] [€/GJ] UP 17,0 Potential Cost [PJ/a] [€/GJ] Potential Cost 2001 2005 2010 221 2015 2020 236 2025 2030 251 Source EEA Report 7 2006 Forestry residues VTT (2005): AFB-net V - Export & import possibilities and fuel prices, country report of France. VTT, Finland, 2005. http://www.afbnet.vtt.fi/france.pdf Wood processing residues 99 106 113 EEA Report 7 2006 UP 81 87 92 EEA Report 7 2006 [PJ/a] [€/GJ] UP 77 83 88 EEA Report 7 2006 Potential Cost [PJ/a] [€/GJ] UP 37 39 42 EEA Report 7 2006 Potential Cost [PJ/a] [€/GJ] UP 7 8 8 EEA Report 7 2006 Potential Cost Potential Cost Potential Cost [PJ/a] [€/GJ] [PJ/a] [€/GJ] [PJ/a] [€/GJ] UP 7 8 8 EEA Report 7 2006 UP 33 35 38 EEA Report 7 2006 UP 9 10 10 EEA Report 7 2006 Potential Cost [PJ/a] [€/GJ] UP 26 28 29 EEA Report 7 2006 Municipal solid waste Wet manures Black liquor Sewage sludge Other waste wood households packageing demolition Dry manures 128 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential 13. GREECE 129 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Hydropower has traditionally been important in Greece, and the markets for wind energy and active solar thermal systems have grown in recent years. Solar heat is also a popular source of energy. Greece has set up a wider rage of support mechanism however the market uptake of Renewable Energy Sources (RES) in Greece is lower than expected, mainly due to long licensing and administrative procedures and grid- related issues. The Greek parliament has recently revised the RES policy framework partly to reduce administrative burdens. A new feed in tariff has been set, giving support for 20 years. There is also, a particular mention of hybrid systems for the storage of RES produced electricity in the law, mainly in the non-interconnected islands. The solar thermal systems (mainly domestic hot water systems) have been a success story since the 1980s (Greece is one of the EU leaders) but the market is not increasing so rapidly in the recent years. Greek abundant solar energy is very suitable for island, rural, and tourist application, either as stand-alone solutions or as PV hybrid systems. KEY FIGURES • The share of RES in total primary energy consumption was of 6.37% in 2006. • The share of RES in the gross final energy consumption was 6.9% in 2005. • The share of RES in the gross electricity production was 12.4% in 2006. • The share of biofuels in the transport sector in 2006 was 0.7%. • Greece energy dependence on imports amounts to 70.8 % in 2005. Technology specific figures • More than 853 MW of wind power are installed in Greece by 2007. • Hydropower installed capacity reached 3.164 GW in 2006. • Biomass represents 38.72 MW of installed capacity in 2007. • PV accounts for more than 1.3 MW in 2007. RES production in 2006 130 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Source: CRES RES POLICY The Greek parliament has recently revised the RES policy framework partly to reduce administrative burdens on the renewable energy sector. The new Law 3468/2006 deals with the RES-e and apart from the feed-in tariffs that are described below, reduces the bureaucratic licensing procedures. There is a particular mention of hybrid systems for the storage of RES produced electricity in the law, mainly in the non-interconnected islands. This type on installation receives a power availability tariff on top of the energy tariff. RES TARGETS Mandatory targets set by the newly proposed RES Framework Directive from 200845 • 18 % share of RES on the final consumption of energy in 2020. • At least 10% share of biofuels of final consumption of energy in transport in that Member State in 2020. Indicative Target set by the RES- electricity European Directive from 200146 • 21.1 % Share of RES on gross electricity consumption by 2010 Indicative Target set by the European Biofuels Directive from 200347 • Biofuels consumption of 5.75% of petrol and diesel use for transport in 2010. National commitments • The RES-e National target to be achieved is 29 % of gross electricity consumption by 2020. • For biofuels, the following national targets have been set: 0.7% by 2005, 3% by 2007, 4% by 2008, 5% by 2009 and 5.75% by 2010. • There is no national target/commitment for RES heating and cooling (RES-H&C). • Intended goal for the expansion of photovoltaic is up to 700MWp by 2020. 45 Proposal for a Directive of the European Parliament and the Council on the promotion of the use of energy from renewable sources from January 2008(the targets agreed but the directive is on legislative process) 46 Directive 2007/71/EC on the promotion of electricity produced from renewable energy sources in the internal electricity market. Currently in force, sets targets up to 2010. 47 Directive 2003/30/EC on the promotion of the use of biofuels or other renewable fuels for transport Currently in force, sets targets up to 2010, with indicative targets by 2005. 131 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential RES Technology Roadmap The RES installation requirements in order to meet the 2010 target for renewable electricity are shown in the following table. Technologies Requirements in installed capacity by 2010, in MW Wind farms Small hydro Largehydro Biomass Geothermal Photovoltaics Total Energy generated in 2010 in TWh 3,648 364 3,325 103 12 200 7,652 Percentage share of every renewable energy source in 2010 7.67 1.09 4.58 0.81 0.10 0.20 14.45 10.67 1.52 6.37 1.13 0.14 0.28 20.10 Source: ‘Fourth National Communication for the penetration of RES-E by 2010 according to the directive 77/2001’ Progress towards the Targets The Share of RES-e in the total electricity consumption was of about 13.92 % in 2006; in 1997 it was 8.6%. An increase of RES- e is expected in the following years due to: • The completion of projects that were delayed over the 2001-04 period due to the restructuring of the electricity sector. • The implementation of regulations which simplified the licensing procedures and set the duration of power purchase agreements for RES-e to 20 years (Law 3468/2006). So far the growth in RES-e installation has been slower than expected in Greece. Despite a favourable feed in tariff the long an costly administrative process required to get all the licences needed to develop a RES-e plant and other grid related issues have hindered a further development of RES –e in Greece. The new Law 3468/2006 aims at reducing the bureaucratic licensing procedures. MAIN POLICY INSTRUMENTS Support for RES electricity Feed in tariff The New Renewable Energy Source Act, effective since 27 June 2006 stipulates feed-in rates for renewable and CHP. Resource hydro wind wind biomass biomass Solar Solar geothermal Source: CRES Technology small onshore offshore solid gasification (biogas) PV CSP all Support level [€cents/ kWh] 7.3-8.5 7.3-8.5 9 7.3-8.5 Feed-in tariff or premium? feed-in tariff feed-in tariff feed in feed in Start year 2006 2006 2006 2006 Duration [years that an investor is entitled to support] 20years 20years 20years 20years 7.3-8.5 40-50 23-25 7.3-8.5 feed-in tariff feed-in tariff feed-in tariff feed-in tariff 2006 2006 2006 2006 20years 20years 20years 20years 132 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential A photovoltaic development programme has been setup with a Ministerial decision, on 18/7/2007, in conjunction with the high feed-in tariffs that are foreseen for electricity produced by PVs. According to this plan a total of 540 MWp will be installed in the interconnected system of the Mainland, 200 MWp in the islands and 50 MWp for of-grid applications, over the period 2007-2010. A specific geographical distribution of these installations has been decided (setting upper limits per region) taking in mind the solar radiation distribution over the country and the technical limits set by the now interconnected electricity systems of the islands. About 40% of the target will be covered by small systems (up to 150kWp), in order to have the minimum environmental impact, to reduce the network losses and create local jobs and sources of income. Simplification of procedures The main scope of this new law is to simplify the licensing system for the RES investments in Greece (i.e. licensing procedures). According to this new law one point of strong interest is the new electricity feed-in-tariffs system, applicable for the sales of RES produced electricity to the grid. The operators of the electricity grids will be required to connect renewable energy plants to the grid and purchase all of their electricity at legally-fixed minimum prices. Grid development Grid availability is an important issue in Greece, since the areas of high wind potential are usually isolated and far from the existing grid infrastructure. Therefore there are regions in mainland Greece where the installation of wind turbine is limited by the existing grids, and also in the islands there are upper technical limits due to the isolated networks. So an important part of achieving the RES target is connected with the grid development projects. Investment incentives National Development Law (Law3299/2004) set subsidies that vary from 40- 55% according to region and the type of the enterprise (in case of SMEs and specific regions they can reach up to 55%) Investment subsidies Resource hydro wind wind biomass biomass PV geothermal Technology small onshore offshore solid gasification (biogas) Support level [%/total investment] 35% 35% 35% 35% 35% 30%-45% 35% Start year 2007 2007 2007 2007 2007 2007 2007 End year 2013 2013 2013 2013 2013 2013 2013 Comments Not all installations are eligible for this subsidy. There is a procedure for applications and assessment Support for RES Heating and Cooling The use of geothermal energy for heating purposes (mainly in greenhouses) has increased considerably over the recent years, mainly due to the introduction of a new law which simplified the procedures for the exploitation of geothermal fields. Solar water heating systems are used to a large extend in the domestic sector. Investment incentives Investment Subsidies 133 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Resource Biomass Geothermal Technology Biomass combustion large heat plant Biomass combustion large CHP plant Geothermal Conventional Support level [%/total investment] 35% 35% 35% Comments Not all installations are eligible for this subsidy. There is a procedure for applications and assessment Fiscal Incentives There is a tax relief system for the installation of domestic hot water solar systems, according to which 20% of the cost of these systems can be deducted from the taxable income. Support for Biofuels The obligation of the Biofuels directive has been adopted in the national law. So there is an annual procurement for the supply of the quantity of biofuels that is foreseen by the law which is exempt from fossil fuel tax. Fiscal Incentives Biofuels are exempt from the fossil fuel tax which is 24.5€cents/litre Quota Obligations There is the commitment of the government for 5.75% biofuels in road transport, but there are no penalties in case of not reaching this share. Resource Biofuels Technology free choice Quota in % (per year) 0.7% by 2005 3% by 2007 4% by 2008, 5% by 2009 5.57% by 2010. Annex I. RES installed capacity in 2007 Annex II. Evolution of RES Sources in Greece 1995-2006 Annex III. RES electricity Potentials Annex IV RES Bioenergy Potentials 134 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Sources: European Commission Factsheets by Country http://ec.europa.eu/energy/energy_policy/facts_en.htm Member States Reports in the framework of the Directive 2001/77/EC on renewable electricity http://ec.europa.eu/energy/res/legislation/electricity_member_states_en.htm Member States Reports in the framework of the Directive 2003/30/EC on biofuels http://ec.europa.eu/energy/res/legislation/biofuels_members_states_en.htm CRES www.cres.gr EurObserv’er Barometer http://www.energies-renouvelables.org/observ-er/sig/eufores/sig.asp In the framework of the EU co –funded project: RES 2020: Monitoring and Evaluation of the RES Directives implementation in EU27 and policy recommendations to 2020 The sole responsibility for the content of this Publication lies with the authors. It does not represent the opinion of the Community. The European Commission is not responsible for any use that may be made of the information contained therein. Drafted in March 2008. 135 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Annex I. RES installed capacity in 2007 196,67 3,11 2,97 0,99 0,00 0,10 Northern Aegean Western Greece Western Macedonia Central Macedonia Epirus Ionian Islands Thessaly Crete Southern Aegean Peloponnesus Central Greece TOTAL 0,00 907,20 375,00 492,00 543,60 0,00 130,00 0,00 0,00 70,00 0,00 3.017,8 0 29,90 58,15 0,00 17,00 0,00 40,20 17,00 129,50 37,56 119,80 204,30 853,19 0,00 24,31 0,00 34,00 45,75 0,00 11,43 1,00 0,00 2,00 24,62 147,07 0,00 0,00 0,00 0,40 0,00 0,00 0,00 0,80 0,00 0,00 0,00 1,30* 0,00 29,6 3 0,00 0,00 0,00 8,38 0,00 0,00 0,35 0,36 0,00 0,00 0,00 38,7 2 TOTAL (MW) 500,00 0,00 Biomass (MW) Wind (MW) Eastern Macedonia & Thrace Attica Region Photovoltaics (MW) Large Hydropwer (MW) Small Hydropower (MW) The following table shows the installed capacity of RES electricity in January 2008, including the large hydropower stations, per region in Greece. On top of what is shown in the above table, there are installation licenses for RETs for electricity production, totaling 873MW, of which 670 MW are wind parks, 110 MW small hydropower plants, 1 MW photovoltaics and 32 MW biomass power plants. These are projects that are ready to be implemented, without any licensing or grid avaialability problems and are expected to be in operation by 2010. Grid availability is an important issue in Greece, since the areas of high wind potential are usually isolated and far from the existing grid infrastructure. Therefore there are region in Mainland Greece where the installation of wind turbine is limited by the existing grids, and also in the islands there are upper technical limits due to the isolated networks. So an important part of achieving the RES target is connected with the grid development projects. At the moment there are in progress three large projects for the upgrade of the electricity grid in Southern Evia, Southeastern Peloponnesus and Eastern Macedonia-Thrace, which are the areas with the highest wind potential in Greece. 699,64 33,83 29,90 989,66 375,00 551,78 589,35 40,20 158,78 131,66 37,56 191,80 228,92 4.058,0 8 *Regarding PVs this is the licensed installed capacity. However there are a lot of small PV system that do not require a license. Based on sales the total installed capacity of PVs was around 5MWp at the beginning of 2008. 136 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Annex II. Evolution of RES Sources in Greece 1995-2006 The use of renewable energy sources, over the last years is presented in the following table. Technology HydroPower Plants Of which Pump storage Hydro <1 MW* Hydro 1-10 MW* Hydro >10MW* Biomass Wind turbines PVs Solar Heat Biogas Geothermal Total Total without pumping Percentage of RES in the Primary Energy Supply 1995 325 22 1 8 295 897 3 0 82 1 3 1311 1290 2000 354 36 2 12 304 945 39 0 99 1 2 1439 1403 2001 235 54 3 8 169 938 65 0 100 33 2 1373 1319 ktoe 2002 298 57 5 8 228 948 56 0 102 48 1 1453 1396 2003 459 49 7 15 389 910 88 0 105 36 1 1598 1550 2004 402 46 8 18 376 917 96,5 0 107 36 9 1560 1514 2005 432 50 9 19 404 957 113 0 101 33 10 1646 1596 2006 530 52 10 22 499 931 145 0,5 109 33 11 1760 1708 5.6% 5.2% 4.8% 5.0% 5.3% 5.2% 5.4% 6.37% The electricity production from RES in particular is presented in the following table. Evolution of Electricity Production from RES (GWh) Technololgy 1990 1995 2000 2001 2002 2003 2004 2005 2006 Hydro 1997. 0 3783. 0 4111. 0 2725. 0 3463. 0 5332. 0 5205. 0 5610. 2 6773. 8 228.0 253.0 418.0 628.0 663.0 566.0 533.0 593.0 610.0 6.0 7.0 26.0 40.0 58.0 76.0 91.0 105.8 118.0 54.0 1709. 0 89.0 3434. 0 140.0 3527. 0 95.0 1962. 0 92.0 2650. 0 Wind 2.0 34.0 451.0 756.0 651.0 Biogas 0.0 0.0 0.0 72.0 91.0 169.0 4521. 0 1021. 0 78.0 212.0 4369. 0 1121. 0 93.4 218.4 4693. 0 1266. 4 93.8 250.0 5795. 8 1691. 5 92.0 PVs Share of RES-E (except energy used for pumping) in the Gross Inland Consumption of Electricity 0.1 0.2 0.2 0.2 0.5 0.6 0.8 0.9 1.4 5,0% 8,4% 7.7% 5.2% 6.2% 9.7% 9.6% 10.0% 12.4% 1999. 1 3817. 2 4562. 2 3553. 2 4205. 5 6431. 6 6420. 2 6971. 3 8558. 7 Of which pump storage Hydro <1 MW Hydro 1-10 MW Hydro >10MW Total 137 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Annex III. RES electricity Potentials Description Unit 2005 2010 2015 2020 Total Wind Maximum Wind onshore Maximum Wind offshore Maximum solar PV Maximum solar thermal Total Hydro Maximum conventional hydro of which Maximum run of river Maximum Pumped Storage hydro Maximum Tide & Wave power plants Maximum geothermal Total Maximum geothermal conventional power plants Maximum geothermal dry steam & flash power plants (>180°C) Maximum geothermal binary power plants (180°C<x<85°C) Maximum geothermal EGS power plants Maximum biomass power plants (conventional+CHP) Maximum biogas power plants (conventional+CHP) Maximum Biowastewaste power plants (CHP) MW MW MW TWh MW MW MW MW MW 573 573 2000 2000 3500 3500 5500 5500 8130 8130 1.040 900 3849 2800 350 699 3849 2800 350 699 0.0 3101 2402 0 699 3539 2690 150 699 TWh MW 4.01 MW 120 2025 2030 200 MW MW MW TWh 0.0 6.22 TWh 0.2 1.6 TWh 0.0 0.44 The previous tables present the data that have been gathered in the framework of the RES2020 project in order to be used in the modelling. The data have been collected • Through EREC and its Members • Through a revision of previous EU funded projects and reports (GreenX, OPTRES) • Through the partners of the project The data have been discussed in the framework of the REWG of the EnR with the country experts. The tables present an estimation of the technical potential that could be utilized as an upper bound by 2010, 2015, 2020 and 2030. As technical potential we are considering: • the future installed capacity of wind turbines without taking in mind financial issues at a "reasonable" wind speed as a possible upper limit in the development of the installed capacity over time. • the future installed capacity of hydro considering technical issues only and a possible upper limit in the development of the installed capacity over time. For some technologies potential may be unlimited (e.g. photovoltaics), so we are using upper bound limits within the relevant time frames. 138 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential TABLE 1 Potentials agricultural bioenergy Description Sugar crops: sugar beet Step 1 Annex IV. RES Bionergy Potentials Step 2 Step 3 Step 4 Starch crops: rye, oats, maize, wheat, barley, etc Step 1 Step 2 Step 3 Step 4 Grassy crops: switchgrass, miscanthus, sweet sorghum, etc Step 1 Step 2 Step 3 Step 4 Woody crops: willow, poplar Step 1 Step 2 Step 3 Step 4 Oil crops: sunflower, rapeseed Step 1 Step 2 Step 3 Step 4 Unit LimType 2000 2001 2005 2010 2015 2020 2025 2030 Potential Cost Potential Cost Potential Cost Potential Cost [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] UP 5,0 11,1 5,0 11,1 5,0 11,1 13,0 10,66 21,0 10,31 28,0 10,01 38,0 9,74 47,0 9,51 Potential Cost Potential Cost Potential Cost Potential Cost [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] UP 5,0 14,9 5,0 14,9 5,0 14,9 10,0 14,76 16,0 14 22,0 13,36 28,0 12,89 35,0 12,46 Potential Cost Potential Cost Potential Cost Potential Cost [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] UP 9,0 5,5 9,0 5,5 9,0 5,5 24 5,1 38 4,8 52 4,5 69 4,3 87 4,2 Potential Cost Potential Cost Potential Cost Potential Cost [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] UP 9,0 4,5 9,0 4,5 9,0 4,5 23,0 4,2 37,0 3,96 50,0 3,76 67,0 3,59 84,0 3,46 Potential Cost Potential Cost Potential Cost Potential Cost [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] UP 3,0 13,3 3,0 13,3 3,0 13,3 8,0 12,9 13,0 12,5 18,0 12,2 23,0 11,9 29,0 11,6 Source UP UP UP UP UP UP UP UP UP UP UP UP UP UP UP 139 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential TABLE 2 Potentials bioenergy from wastes Description Agricultural waste Unit LimType Potential Cost [PJ/a] [€/GJ] UP Potential Cost [PJ/a] [€/GJ] UP Potential Cost [PJ/a] [€/GJ] UP Potential Cost [PJ/a] [€/GJ] Potential Cost 2000 2001 2005 2010 2015 2020 2025 2030 Source 17 18 19 EEA Report 7 2006 UP 15 16 17 EEA Report 7 2006 [PJ/a] [€/GJ] UP 18 20 21 EEA Report 7 2006 Potential Cost [PJ/a] [€/GJ] UP Potential Cost [PJ/a] [€/GJ] UP 7 8 8 EEA Report 7 2006 Potential Cost Potential Cost Potential Cost [PJ/a] [€/GJ] [PJ/a] [€/GJ] [PJ/a] [€/GJ] UP 4 4 4 EEA Report 7 2006 Potential Cost [PJ/a] [€/GJ] UP Forestry residues Wood processing residues Municipal solid waste Wet manures Black liquor Sewage sludge Other waste wood households packageing demolition UP UP Dry manures 140 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential 14. HUNGARY 141 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Hungarian Renewable Energy (RES) electricity target for 2010 has been already achieved in 2007 especially due to the biomass contribution. However other RES such as solar, geothermal and wind energy are hampered by administrative constraints (i.e the permit process) and a noneffective, neither stable policy framework. As regards the policy framework, promotional schemes are being used and refined, and subsidies are available under certain conditions for the development of RES. Until 2020, Hungary aims at covering 11% to 15% of its energy demand from renewables. Most of the excess capacity will be provided for by new biomass power plants. KEY FIGURES • The share of RES in total primary energy consumption was of 4.87% in 2006. Biomass in the main RES source representing more than 89% of RES primary consumption, follow by geothermal (8.2%) and Hydropower (1.7%) • The share of RES in the gross final energy consumption was 4.3% in 2005. • The share of RES in the gross electricity production was 3.7 % in 2006 in 2007 4.3%. • The share of biofuels in the transport sector in 2006 was 0.28%. • Hungary energy dependence on imports amounts to 63 % in 2005 Share of RES –e in the Hungarian electricity consumption RES-H fuel fix in 2006 ( 37.5 PJ) 142 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Source: Hungarian Energy office RES POLICY RES TARGETS Mandatory targets set by the newly proposed RES Framework Directive from 200848 • 13% share of RES on the final consumption of energy in 2020. • At least 10% share of biofuels of final consumption of energy in transport in that Member State in 2020. Indicative Target set by the RES- electricity European Directive from 200149 • 3.6 % Share of RES on gross electricity consumption by 2010 Indicative Target set by the European Biofuels Directive from 200350 • Biofuels consumption of 5.75 % of petrol and diesel use for transport in 2010. National commitments • The Hungarian Energy Saving and Energy Efficiency Improvement Action Programme expresses the country’s determination to reach a share of renewable energy consumption of at least 6% by 2010. • There is no national target/commitment for RES heating and cooling (RES-H&C). Progress towards the Targets • The 3.6% RES-E target has already been meet. Hungary’s RES-e share amounted 2.24% in 2004, 4.6 in 2005, 3.7% in 2006, 4.3% in 2007. 48 Proposal for a Directive of the European Parliament and the Council on the promotion of the use of energy from renewable sources from January 2008(the targets agreed but the directive is on legislative process) 49 Directive 2007/71/EC on the promotion of electricity produced from renewable energy sources in the internal electricity market. Currently in force, sets targets up to 2010. 50 Directive 2003/30/EC on the promotion of the use of biofuels or other renewable fuels for transport currently in force, sets targets up to 2010, with indicative targets by 2005. 143 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential RES POLICY INSTRUMENTS Support for RES Electricity Feed in tariff The Hungarian RES-e Support mechanism is based on investment subsidy and on a feed-in-tariff. The feed-in-tariff was adopted by the Electricity Act in 2001 and by the ministerial decree (GKM 56/2002). The law does not define a time limit for the feed in tariff, the tariff are in principle guarantee for the life time of the installation. However, the electricity Act gives the Government the right to define a start date for a green certificate system. At that time the feed in tariff will cease to exist. Feed-in Tariff for 2001-2007 Resource hydro wind wind biomass biomass Technology Small onshore offshore Solid gasification (biogas) PV geothermal Support level [€cents/ kWh] 9.4 0 9.4 9.4 Feed-in tariff or premium? feed-in tariff feed-in tariff feed in feed in 9.4 feed-in tariff 9.4 9.4 feed-in tariff feed-in tariff Feed-in-tariff is set by the Act : average tariff 12 UScent/kWh*k (k= last year inflation rate) Feed-in-Tariff for (2008-onwards ) A new legal framework is under preparation. Some of the issues that the new legal framework may contain are: • Feed-in-tariffs for Renewables and Waste (only for the licensed period and amount). • Certificates of origin for RES-e. • Hungarian Energy Office sets the amount of RES-e that can be sold with a feed in tariff. Period and amount depend on the return period of the investment. • Possibility of introducing green certificates in the future. The electricity Act gives the Government the right to define a start date for a green certificate system. At that time the feed in tariff will cease to exist. Support for RES Heating and Cooling Investment Subsidies The Environment Protection and Infrastructure Operative Programme (EPIO) of Hungary's National Development Plan specified measures to promote renewable energy sources. In 2006, the EPIO provided 280 million HUF in subsidies to three types of energy efficiency project: the modernisation of buildings and institutions, the development of district heating systems, and the promotion of cogeneration. Since its beginning the program focused on: • Installation of systems producing wood chips and pellets, baling equipment, and vegetable oil presses • Promotion of investments in renewable energy (biomass, geothermal energy, solar collector, PV, wind power, hydro power) 144 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential • District heating systems using biomass or geothermal energy or waste deposit gases modernisation of buildings, district heating systems, application of cogeneration. Support for Biofuels Tax exemption for Biofuels From July 1, 2007, there has been a tax allowance of 8.3 HUF/l for 4.4% biofuel blended into petrol. From January 1, 2008, the same allowance will apply to diesel oil. From July 1, 2007, and January 1, 2008, respectively, fuels sold by MOL Rt51, will contain 4.4% bio-ethanol and biodiesel. • Excise tax: 103.5 HUF/l for petrol, 85 HUF/l for diesel. • Sales of biofuels in Hungary receive a tax benefit. To avoid a tax gap, sales of petroleum fuel that doesn’t contain biofuel will carry a tax penalty. • For producers: the quantity produced is free from excise tax until 2010 if the whole quantity is blended in Hungary, transported from a Hungarian tax depot to a foreign tax depot, or sold to a registered distributor. • For distributors: excise tax can be reclaimed if biodiesel is blended up to 5% Quota Obligations Resource Biofuels Quota in % (per year) 5.75% (energy) Year 2010 Support to all RES Investments Subsidies The Operative Programme for Environment and Energy (KEOP) for the period: 2007-2013, and financed by EU Funds., will promote incentives to RES technologies: 2 main fields for Energy: Energy savings and Renewables • For Renewable Energies (RES-E and heat generation): 305 million USD: Supported projects: biomass, biogas, geothermal, small scale wind turbines • For Biofuels: 53 million USD : Supported projects: biofuel factories middle- and large scale capacities Annex I . RES electricity Potentials Annex II RES Bioenergy Potentials 51 MOL Hungarian Oil and Gas company 145 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Sources: European Commission Factsheets by Country http://ec.europa.eu/energy/energy_policy/facts_en.htm Member States Reports in the framework of the Directive 2001/77/EC on renewable electricity http://ec.europa.eu/energy/res/legislation/electricity_member_states_en.htm Member States Reports in the framework of the Directive 2003/30/EC on biofuels http://ec.europa.eu/energy/res/legislation/biofuels_members_states_en.htm Energy Centre Hungary http://www.energycentre.hu/ Hungarian Energy office. Ministry Energy and Transport http://www.eh.gov.hu EurObserv’er Barometer http://www.energies-renouvelables.org/observ-er/sig/eufores/sig.asp In the framework of the EU co –funded project: RES 2020: Monitoring and Evaluation of the RES Directives implementation in EU27 and policy recommendations to 2020 The sole responsibility for the content of this publication lies with the authors. It does not represent the opinion of the Community. The European Commission is not responsible for any use that may be made of the information contained therein. Drafted in March 2008 146 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Annex I . RES electricity Potentials Description Unit 2005 2010 2015 2020 2025 2030 Total Wind Maximum Wind onshore Maximum Wind offshore Maximum solar PV Maximum solar thermal Total Hydro Maximum conventional hydro of which Maximum run of river Maximum Pumped Storage hydro Maximum Tide & Wave power plants Maximum geothermal conventional power plants Maximum geothermal hot dry rock power plants Maximum biomass power plants (conventional+CHP) Maximum biogas power plants (conventional+CHP) Maximum Bio waste power plants (CHP) MW MW MW TWh MW MW 17 17 0 0.000 0.000 49 773 773 0 0.240 0.000 78 851 851 0 0.480 0.000 90 930 930 0 0.720 0.000 103 1041 1041 0 0.960 0.000 115 1151 1151 0 1.200 0.000 127 MW 49 78 90 103 115 127 MW 49 78 90 103 115 127 MW 0 0 0 0 0 0 TWh 0.0 0 0 0 0 0 MW 0.0 0.6 0.6 0.6 0.6 0.6 MW 0.0 74.6 74.6 74.6 74.6 74.6 TWh 1.6 2.4 4.6 6.9 9.2 11.5 TWh 0.0 0.0 1.1 2.2 2.5 2.8 TWh 0.1 0.6 0.6 0.6 0.6 0.6 The previous tables present the data that have been gathered in the framework of the RES2020 project in order to be used in the modelling. The data have been collected • Through EREC and its Members • Through a revision of previous EU funded projects and reports (GreenX, OPTRES) • Through the partners of the project The data have been discussed in the framework of the REWG of the EnR with the country experts. The tables present an estimation of the technical potential that could be utilized as an upper bound by 2010, 2015, 2020 and 2030. As technical potential we are considering: • the future installed capacity of wind turbines without taking in mind financial issues at a "reasonable" wind speed as a possible upper limit in the development of the installed capacity over time. • the future installed capacity of hydro considering technical issues only and a possible upper limit in the development of the installed capacity over time. For some technologies potential may be unlimited (e.g. photovoltaics), so we are using upper bound limits within the relevant time frames. 147 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential TABLE 1 Potentials agricultural bioenergy Description Sugar crops: sugar beet Step 1 Step 2 Step 3 Step 4 Starch crops: rye, oats, maize, wheat, barley, etc Step 1 Step 2 Step 3 Step 4 Grassy crops: switchgrass, miscanthus, sweet sorghum, etc Step 1 Step 2 Step 3 Step 4 Woody crops: willow, poplar Step 1 Step 2 Step 3 Step 4 Oil crops: sunflower, rapeseed Step 1 Step 2 Step 3 Step 4 Annex II RES Bionergy Potentials Unit LimType 2000 2001 2005 2010 2015 2020 2025 2030 Potential Cost Potential Cost Potential Cost Potential Cost [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] UP 24,0 5,0 24,0 5,0 24,0 5,0 51,0 5,03 67,0 5,16 84,0 5,38 96,0 5,72 107,0 6,21 Potential Cost Potential Cost Potential Cost Potential Cost [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] UP 38,0 6,4 38,0 6,4 38,0 6,4 81,0 6,11 108,0 5,92 135,0 5,78 153,0 5,68 171,0 5,65 Potential Cost Potential Cost Potential Cost Potential Cost [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] UP 112,0 3,1 112,0 3,1 112,0 3,1 252 2,9 344 2,8 436 2,7 503 2,7 569 2,8 Potential Cost Potential Cost Potential Cost Potential Cost [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] UP 85,0 2,0 85,0 2,0 85,0 2,0 192,0 1,89 263,0 1,83 334,0 1,81 386,0 1,84 438,0 1,92 Potential Cost Potential Cost Potential Cost Potential Cost [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] UP 29,0 6,2 29,0 6,2 29,0 6,2 61,0 6,0 82,0 5,8 102,0 5,7 116,0 5,6 130,0 5,5 Source UP UP UP UP UP UP UP UP UP UP UP UP UP UP UP 148 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential TABLE 2 Potentials bioenergy from wastes Description Agricultural waste Unit LimType Potential Cost [PJ/a] [€/GJ] UP Potential Cost [PJ/a] [€/GJ] UP Potential Cost [PJ/a] [€/GJ] Potential Cost 2000 2001 2005 2010 2015 2020 2025 2030 Source EEA Report 7 2006 37.9 according to http://www.biomatnet.org/secure/Other/S1082.htm EEA Report 7 2006 53.1 according to http://www.biomatnet.org/secure/Other/S1082.htm 37 39 42 UP 4 4 4 [PJ/a] [€/GJ] UP 15 16 17 Potential Cost [PJ/a] [€/GJ] UP 11 12 13 Potential Cost [PJ/a] [€/GJ] UP Potential Cost [PJ/a] [€/GJ] UP Potential Cost Potential Cost Potential Cost [PJ/a] [€/GJ] [PJ/a] [€/GJ] [PJ/a] [€/GJ] UP UP 4 4 4 EEA Report 7 2006 UP 4 4 4 EEA Report 7 2006 Potential Cost [PJ/a] [€/GJ] UP Forestry residues Wood processing residues Municipal solid waste Wet manures EEA Report 7 2006 EEA Report 7 2006 0.6 according to http://www.biomatnet.org/secure/Other/S1082.htm EEA Report 7 2006 3.2 according to http://www.biomatnet.org/secure/Other/S1082.htm Black liquor Sewage sludge Other waste wood households packageing demolition Dry manures 149 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential 15. IRELAND 150 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential The rapidly increasing consumption of energy in Ireland, combined with the decreasing domestic production, has resulted in a significant increase in energy imports in recent years. Ireland experiences high levels of energy demand growth (an average of 3.3% per year from 1990 to 2006) in line with buoyant economic growth. Between 1990 and 2006 Ireland’s total annual energy requirement grew in absolute terms by 67%. Oil accounted for 56% of total primary energy requirements in 2006. Ireland exhibits a significant dependence on oil. The UK is the major source of oil and natural gas for Ireland. Gas has become the most important fuel for electricity generation in Ireland (46% of the total in 2006), gradually replacing coal (24%) and oil (13%). “Ireland has one of the finest renewable energy resource potentials in the world. Today we are making important steps to ensure that it is tapped,” said Irish Energy Minister Eamon Ryan. A significant amount of wind power capacity has been installed recently for a total of 803.4 MWe at the end of 2007. KEY FIGURES: • The share of renewable energy sources (RES) in total primary energy requirement was 2.7% in 2006 compared to 1.8% in 1990. In Primary Energy Equivalent terms the share in 2006 was 5.0%. • The share of RES in the gross final energy consumption was 3.09% in 2006(measured according to the methodology in the new Renewables Directive). • The share of RES in the gross electricity consumption was 8.6% in 2006 (compared with 4.9% in 1990) • The share of all biofuels in the transport sector in 2006 was 0.14%. • Ireland’s dependence on external energy supplies was 91% in 2006. • Domestic production accounted for 32% of Ireland’s energy requirements in 1990. However, since the mid-1990s import dependency has grown significantly, due to the increase in energy use together with the decline in indigenous natural gas production at Kinsale since 1995 and decreasing peat production. Imported oil and gas accounted for 82% of TPER in 2006, compared with 54% in 1990. Technology specific figures • This 2.7% share RES in total primary energy requirement comprises wind (0.9%) hydro (0.4%) and biomass heating, as well as smaller quantities of landfill gas, biogas and biomass Combined Heat & Power. • Wind and hydro energy in 2006, respectively, accounted for 5.6% (4.0% in 2005) and 2.5% (2.3% in 2005) of Ireland’s gross electrical consumption while landfill gas was responsible for 0.38% (0.38% in 2005). • Total electrical output from wind in 2006 was 1,616 GWh representing an increase of 46% on 2005. The total installed capacity of wind farms in Ireland (December 2007) was 803.4 MWe an increase of 7.9% (59 MWe) on the end of 2006. • Hydroelectricity is the second most important source of renewable electricity. In 2006 electrical output from hydro was 721 GWh an increase of 3.9% on 1990. Hydro was responsible for 2.3% of gross electrical consumption in 2006. • In Ireland there are currently 12 landfill gas electricity generating units operating with a combined installed capacity of 29.5 MWe. The first landfill gas sites were installed in 1995. The electrical output from landfill gas in 2006 was 108 GWh, an increase of 2% on 2005. • Biofuels market penetration has doubled since 2005 and is increasing since the launch of the second biofuels Mineral Oil Tax relief scheme in November 2006. Market penetration of 2.2% is expected by 2008. 151 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Primary Fuel Mix for Electricity Generation: 6 5 Mtoe 4 3 2 1 0 1990 1991 1992 Coal 1993 Peat 1994 1995 Fuel Oil 1996 1997 Gasoil 1998 1999 2000 Natural Gas 2001 2002 Renewables 2003 2004 2005 2006 Electricity (net imports) Renewable Energy Contribution to gross electricity consumption 9% 8% 7% 6% 5% 4% 3% 2% 1% 0% 1990 1991 1992 Hydro 1993 1994 1995 Wind 1996 1997 1998 1999 Landfill Gas 2000 2001 2002 Biogas 2003 2004 2005 2006 Biomass Wind and hydropower make up most of Ireland’s RES-E production. RES POLICY RES TARGETS Mandatory targets set by the newly proposed RES Framework Directive from 200852 • For Ireland 16% share of RES on the final consumption of energy in 2020. • At least 10% share of biofuels of final consumption of energy in transport in each Member State in 2020. 52 Proposal for a Directive of the European Parliament and the Council on the promotion of the use of energy from renewable sources from January 2008(the targets agreed but the directive is on legislative process) 152 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Indicative Target set by the RES- electricity European Directive from 200153 • For Ireland 13.2% share of RES on gross electricity consumption by 2010. Indicative Target set by the European Biofuels Directive from 200354 • Biofuels consumption of 5.75% of petrol and diesel use for transport in each Member State in 2010. National Commitments A White Paper released in March 2007 sets out the Government’s Energy Policy for 2007-2020: The Government is committed to have 15% of electricity to be generated from renewable sources by 2010 and 33% by 2020 (taking into account the target of 30% co-firing in the peat power stations by 2015). The government also set a target of 5% renewable share in the heating sector for 2010 and a target of 12% renewable share in the heating sector for 2020. Progress towards the target: Ireland is making progress in relation to its RES-E target: from 4.1% in 1997 to 8.6% in 2006. Progress is mainly due to wind energy. Ireland’s biofuel share was 0.05%, in 2005 compared to the National target of 0.06%. Support for RES-Electricity A tender scheme - the “Alternative Energy Requirement” (AER)- had been introduced in 1996. It was originally modelled on the UK Non Fossil Fuel Obligation (NFFO). Under the scheme, applications were invited from prospective generators to build, own and operate new wind, hydro, biomass and waste-to-energy facilities. All applications were ranked on the basis of bid price per kilowatt-hour supplied. Successful applicants were awarded Power Purchase agreements (PPA) of up to 15 years from the national Electricity Supply Board (ESB). There were in total 6 AER rounds. But all AER failed (except AER I) to reach the targets set. The Tendering scheme has therefore been abandoned. Since early 2006, feed in tariff has become the main tool for promoting RES-E technologies. Most of the new capacity is expected to come from onshore wind projects but there is also support for off-shore wind, biomass, landfill gas, anaerobic digestion plants, ocean energy and hydro projects. Feed-in tariffs are guaranteed for up to 15 years, but may not extend beyond 2024. During its first year, 98% of the feed in tariff support has been allocated to wind farms. Under the new feed in tariffs, both grid connection agreement and planning permission are preconditions for securing a contract. The government intends to expand the feed-in tariff scheme to facilitate delivery of cofiring in peat stations of 30% by 2015 and to encourage waste to energy projects by supporting hybrid projects. In February 2008, the Irish Energy Minister Eamon Ryan announced an amendment of the renewable energy feed-in tariff scheme (REFIT) to grant support for offshore wind of €140 per MWh. Resource hydro wind wind Technology small onshore offshore Support level [€cents/ kWh] 7.2 5.7-5.9 14 Feed-in tariff or premium? feed-in tariff feed-in tariff feed in tariff Start year 2006 2006 2006 Duration [years that an investor is entitled to support] 15 years 15 years 15 years 53 Directive 2007/71/EC on the promotion of electricity produced from renewable energy sources in the internal electricity market. Currently in force, sets targets up to 2010. 54 Directive 2003/30/EC on the promotion of the use of biofuels or other renewable fuels for transport Currently in force, sets targets up to 2010, with indicative targets by 2005. 153 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential biomass biomass biomass Landfill gas solid Anaerobic digestion (biogas) 7.0 7.2 feed-in tariff feed-in tariff 2006 2006 15 years 15 years 7.2 feed-in tariff 2006 15 years On January 15th, 2008, the Irish Government announced a feed in tariff of 22 €cents/kWh for ocean energy. Other Support measures for RES-Electricity A White Paper released in March 2007 sets out the Government’s Energy Policy for 2007-2020. It sets out measures such as: • Strategic planning and investment in electricity infrastructure: The Grid Development Strategy 2007-2025 will have as a priority the integration of renewable energy growth. This strategy will be informed by the All Island Grid Study which was published in January 2007. • Government representatives from Ireland, Scotland, Wales and Northern Ireland are also working on a proposal to study the feasibility of building sub-sea transmission links under the Irish Sea. According to Minister Ryan this could be a part of a new extended European off-shore grid connection linking wind farms and therefore providing stable energy supplies. • The government has amended planning guidelines to facilitate development of micro renewable technologies at domestic level: allowing households to install solar panels or erect small wind turbines without having to apply for planning permission. • The Government intends to make Ireland a world leader for Ocean Energy technologies, through the National Ocean Energy Strategy with the aim of utilisation within a decade. The government will set an initial ambition of at least 500MW of installed ocean energy capacity by 2020. • The government will support development of offshore wind through a review of cost benefits and R & D. Support for RES-heating ReHeat Programme Launched in March 2007, the Renewable Heat (ReHeat) Deployment Programme managed by Sustainable Energy Ireland (www.sei.ie/reheat) provides assistance for the deployment of renewable heating systems in industrial, commercial, public and community premises in Ireland. In Budget 2006 a further €4m was added to the ReHeat Programme bringing the total funding available for the programme to €26m to 2010. The programme has now been expanded to include solar thermal and heat pump technologies, and to allow community and voluntary groups to benefit from the grants. The scheme will support the installation of an estimated 600 wood fired boilers, 12,000 m2 of solar heating collectors and 1.5 MW of heat pumps. It is anticipated that when the programme is fully rolled out approximately 600,000 MWh of wood fuel will be used annually. Together with the solar panels and heat pumps, this will displace approximately 61 million litres of heating oil per annum, which is 9% of the heating oil consumed in the commercial sector in 2006 (674m litres). It will result in a reduction in CO2 emissions of about 160,000 tonnes per annum. Resource Commercial and services sector users Solar Thermal Geothermal heat pumps Biomass boilers Support level [%/total investment] Start year End year up to 30% up to 30% up to 30% 2007 2007 2007 2010 2010 2010 For all three technologies a total grant budget of €26 million to the end of 2010. 154 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Greener Homes Scheme In March 2006, as part of this package of measures, the Department of Communications, Marine and Natural Resources launched a “Greener Homes” scheme managed by Sustainable Energy Ireland (www.sei.ie/greenerhomes), which is aimed at providing grant aid to individual domestic householders towards the installation of renewable energy heat technologies. Funding of €27m was originally provided for the Greener Homes Scheme but this was increased to €47m in Budget 2006. There have been over 18,000 applications received since the scheme was launched in March 2006 with approximately 28% of the applications for grant aid relating to grants for biomass technologies. Resource Domestic users Biomass Boiler Biomass Stove Biomass Stove with Back-boiler Heat Pump - Horizontal ground collector Heat Pump - Vertical ground collector Heat Pump - Water Source Heat Pump - Air Source Solar Thermal HW Plate Solar Thermal HW Tube Support level [%/total investment] Start year End year €3,000 [~28%] €1,100 [~39%] €1,800 [~34%] 2006 2006 2006 2010 2010 2010 €2,500 [~17%] 2006 2010 €3,500 [~21%] €2,500 [~21%] €2,000 [~17%] €250/m2 [~21%] €300/m2 [~20%] 2006 2006 2006 2006 2006 2010 2010 2010 2010 2010 For all three technologies a total grant budget of €47 million to the end of 2010. Support for Biofuels Fiscal Measures The Pilot Biofuels Mineral Oil Tax Relief Scheme which was launched in August 2005 for a two year period has already achieved the introduction of over 5.5m litres of biofuel to the Irish market. Following the success of the pilot scheme a second Biofuels Relief Scheme was launched: • Biofuels Mineral Oil Tax Relief Scheme II In November 2006 a new excise relief programme for biofuels (Biofuels Scheme II), valued at over €200m, was launched with sixteen (16) companies being granted excise relief for defined quantities of biofuels to be placed on the Irish market. The scheme is being rolled out over a fiveyear period to 2010 and is providing excise relief on selected biofuel projects in four specific biofuel categories as follows: • Biofuels blended with diesel and complying with diesel standard EN590, which can be sold at regular diesel pumps. Biofuels can be produced from oil crops such as oil seed rape, as well as from tallow or recovered vegetable oil. Biodiesel blended at 5% can be used in all diesel engines and is covered by engine warranties. • Bio-ethanol in a 5% blend with petrol, which can be sold at regular petrol pumps, and bioethanol in blends of up to 85% with petrol, for separate sale and use in flexible fuel vehicles (these vehicles have been granted 50% VRT relief under the Finance Act 2006). Bio-ethanol can be made from sugarbeet, wheat or other feedstocks and one project under the 2005 excise relief scheme is producing bioethanol from whey. • Pure Plant oil, which is made from crops such as oil seed rape and used in modified diesel engines as a pure 100% biofuel. • Biofuels for use in captive fleets. This is an innovative category in which developers can propose a range of biofuels, including high blend biodiesel, for use in dedicated vehicle fleets where it is 155 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential established that the engines of the vehicles are capable of running on the biofuel or biofuel blend proposed. When at full capacity in 2008, the scheme is intended to result in 163m litres of biofuels being placed on the Irish transport market, representing 2.2% of the entire fuel market. The biofuels excise relief schemes are already resulting in the mainstreaming of biofuels in the regular petrol and diesel fuel chain. Already many filling stations are providing petrol and diesel which contain a 5% blend of biofuels. Other producers are developing niche markets for higher blend biofuels. Biofuels Obligation In February 2007 Ireland announced a move to a biofuels obligation from 2009. Under this scheme, fuel suppliers to the Irish market will be required to ensure that biofuels represent a certain percentage of their annual fuels. With targets as high as 5.75% by 2010 and 10% by 2020, the obligation will provide enhanced opportunities for farmers to contribute to this emerging market. Transport Measures The Department of Transport and Marine and the German-Irish Chamber of Commerce has introduced a pilot project “Biofuels for Transport” to incentivise the use of Pure Plant Oil biofuel among transport operators, in particular those with fleets of vehicles. The scheme, was launched early in 2007 and over 40 vehicles have been selected to receive a 75% grant to modify their engines. Ireland’s Bioenergy Action Plan, published in March 2007, commits to public bus companies moving as soon as possible towards a 5% blend in all their existing diesel fleet and to ensure that all of their new fleet purchases are capable of using biofuels at blends of at least 30%. Support for all RES Wood Biomass Harvesting Machinery Scheme The Department of Agriculture and Food has introduced a special scheme of supports to grant aid biomass harvesting machinery, such as harvesters and chippers for processing of forest biomass. The funding being provided is €1.2m, and the scheme has attracted significant attention to date. Energy Crops Premium Scheme The Department of Agriculture and Food has also introduced a new Bioenergy Scheme providing establishment grants to farmers for up to 50% of the costs associated with establishing miscanthus and willow. In addition, the Government is providing a top-up payment of €80 per hectare to the EU Premium of €45 per hectare for energy crops. €8m is being allocated over the period 2007 to 2009 for the grant scheme to encourage the planting of willow and miscanthus for the production of biomass suitable for use as a renewable source of energy. The scheme is being piloted in 2007 and will allow up to 1,400 hectares of willow and miscanthus to be grant aided in the first year. Biomass crops such as willow and miscanthus have considerable potential for heat and electricity generation. The scheme has already reached its targets in terms of applications for 2007. Miscanthus has proved the most popular crop accounting for up to 90% of applications. Bioenergy Action Plan for Ireland In March 2007, the Bioenergy Action Plan for Ireland was published. The Action Plan followed the work of a Ministerial Task Force in which seven Government Departments were represented. The Plan contains 50 action items across seven Government Departments, many of which are already being implemented (including the biofuels and renewable heat programmes). Actions include: • Bioenergy heating systems to become the standard norm in new public buildings; • Convert within 12 months, 20 of the State’s large existing buildings to bioenergy heating systems; • Use of biomass CHP in future major public site developments; •More favourable consideration to buildings which use bioenergy or other renewable technologies when considering buildings for lease by the public sector; • Expansion of existing programme of biomass heating in schools; • Target of 30% biomass co-firing in Ireland’s three peat generating stations by 2015; • Expansion of renewable energy installer training; • Development of industry and product standards for wood pellets and wood chip; • Encouragement of afforestation, • Introduction of a Forest Environmental Protection Scheme (FEPS) to facilitate increased levels of afforestation. 156 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Annex I RES electricity Potentials Annex II RES Bioenergy Potentials Sources European Commission Factsheets by Country http://ec.europa.eu/energy/energy_policy/facts_en.htm Member States Reports in the framework of the Directive 2001/77/EC on renewable electricity http://ec.europa.eu/energy/res/legislation/electricity_member_states_en.htm Member States Reports in the framework of the Directive 2003/30/EC on biofuels http://ec.europa.eu/energy/res/legislation/biofuels_members_states_en.htm Sustainable Energy Ireland- website and publications on renewable energy. http://www.sei.ie/index.asp Irish Government White Paper http://www.dcmnr.gov.ie/NR/rdonlyres/54C78A1E-4E96-4E28-A77A3226220DF2FC/27356/EnergyWhitePaper12March2007.pdf Website of the Irish Department of Communication, Energy, Natural Resources http://www.dcenr.gov.ie/Energy/ EurObserv’er Barometer http://www.energies-renouvelables.org/observ-er/sig/eufores/sig.asp In the framework of the EU co –funded project: RES 2020: Monitoring and Evaluation of the RES Directives implementation in EU27 and policy recommendations to 2020 The sole responsibility for the content of this Publication lies with the authors. It does not represent the opinion of the Community. The European Commission is not responsible for any use that may be made of the information contained therein. Drafted in March 2008. 157 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Annex I RES electricity Potentials Description Unit 2005 2010 2015 2020 Total Wind Maximum Wind onshore Maximum Wind offshore Maximum solar PV Maximum solar thermal Total Hydro Maximum conventional hydro of which Maximum run of river Maximum Pumped Storage hydro Maximum Tide & Wave power plants Maximum geothermal conventional power plants Maximum geothermal hot dry rock power plants Maximum biomass power plants (conventional+CHP) Maximum biogas power plants (conventional+CHP) Maximum bio waste power plants (CHP) MW MW MW TWh TWh MW MW MW MW TWh 583 583 0 2883 2858 25 5094 4444 650 6094 5344 750 0.310 0.000 549 257 42.0 292 3.4 532 539 247 32.0 292 TWh 0 TWh 0 TWh 3.76 TWh 3.4 TWh 0.54 2025 2030 6891 5891 1000 549 257 42.0 292 The previous table present the data that have been gathered in the framework of the RES2020 project in order to be used in the modelling. The data have been collected • Through EREC and its Members • Through a revision of previous EU funded projects and reports (GreenX, OPTRES) • Through the partners of the project The data have been discussed in the framework of the REWG of the EnR with the country experts. The tables present an estimation of the technical potential that could be utilized as an upper bound by 2010, 2015, 2020 and 2030. As technical potential we are considering: • the future installed capacity of wind turbines without taking in mind financial issues at a "reasonable" wind speed as a possible upper limit in the development of the installed capacity over time. • the future installed capacity of hydro considering technical issues only and a possible upper limit in the development of the installed capacity over time. For some technologies potential may be unlimited (e.g. photovoltaics), so we are using upper bound limits within the relevant time frames. 158 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential TABLE 1 Potentials agricultural bioenergy Description Sugar crops: sugar beet Step 1 Step 2 Step 3 Step 4 Starch crops: rye, oats, maize, wheat, barley, etc Step 1 Step 2 Step 3 Step 4 Grassy crops: switchgrass, miscanthus, sweet sorghum, etc Step 1 Step 2 Step 3 Step 4 Woody crops: willow, poplar Step 1 Step 2 Step 3 Step 4 Oil crops: sunflower, rapeseed Step 1 Step 2 Step 3 Step 4 Annex II RES Bionergy Potentials Unit LimType Potential Cost Potential Cost Potential Cost Potential Cost [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] UP Potential Cost Potential Cost Potential Cost Potential Cost [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] UP Potential Cost Potential Cost Potential Cost Potential Cost [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] UP Potential Cost Potential Cost Potential Cost Potential Cost [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] UP Potential Cost Potential Cost Potential Cost Potential Cost [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] UP 2000 2001 2005 2010 2015 2020 2025 2030 9,0 7,6 9,0 7,6 9,0 7,6 44,0 7,39 66,0 7,25 88,0 7,15 113,0 7,08 139,0 7,03 0,0 8,2 0,0 8,2 0,0 8,2 2,0 7,73 2,0 7,36 3,0 7,06 4,0 6,81 5,0 6,59 15,0 4,5 15,0 4,5 15,0 4,5 71 4,2 106 3,9 141 3,7 182 3,6 222 3,5 13,0 2,6 13,0 2,6 13,0 2,6 62,0 2,41 93,0 2,29 123,0 2,21 159,0 2,14 194,0 2,1 4,0 5,5 4,0 5,5 4,0 5,5 17,0 5,3 26,0 5,2 34,0 5,1 44,0 5,0 54,0 4,9 Source UP UP UP UP UP UP UP UP UP UP UP UP UP UP UP 159 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential TABLE 2 Potentials bioenergy from wastes Description Agricultural waste Unit LimType Potential [PJ/a] UP Cost [€/GJ] Potential Cost [PJ/a] [€/GJ] UP Potential Cost [PJ/a] [€/GJ] Potential Cost 2000 2001 2005 2010 2015 2020 2025 2030 Source EEA Report 7 2006 20 according to DCMNR (2007): Bioenergy Action Plan for Ireland - Report of the Ministerial Task Force on BioEnergy. Department for Communications Marine and Natural Resources, Ireland, 2007. Buckley, P. (2005): Ireland’s Bioenergy Potential. Sustainable Energy Ireland (SEI), Renewable Energy – Opportunities for Biofuels Crops, 11th July 2005. http://internal.ifaskillnet.ie/pdfs/PearseBuckley.pdf 16 according to (DCMNR, 2007) and (Buckley, 2005) 7 8 8 UP 2 2 2 EEA Report 7 2006 [PJ/a] [€/GJ] UP 7 8 8 Buckley, P. (2005): Ireland’s Bioenergy Potential. Sustainable Energy Ireland (SEI), Renewable Energy – Opportunities for Biofuels Crops, 11th July 2005. http://internal.ifaskillnet.ie/pdfs/PearseBuckley.pdf Potential Cost [PJ/a] [€/GJ] UP 13 14 15 Buckley, P. (2005): Ireland’s Bioenergy Potential. Sustainable Energy Ireland (SEI), Renewable Energy – Opportunities for Biofuels Crops, 11th July 2005. http://internal.ifaskillnet.ie/pdfs/PearseBuckley.pdf Potential Cost [PJ/a] [€/GJ] UP Potential Cost [PJ/a] [€/GJ] UP Potential Cost Potential Cost Potential Cost [PJ/a] [€/GJ] [PJ/a] [€/GJ] [PJ/a] [€/GJ] UP UP 2 2 2 EEA Report 7 2006 Potential Cost [PJ/a] [€/GJ] UP 2 2 2 EEA Report 7 2006 Forestry residues Wood processing residues Municipal solid waste Wet manures Black liquor Sewage sludge Other waste wood households packageing demolition UP Dry manures 160 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential 16. ITALY 161 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Most important Renewable Energy Source (RES) in Italy is hydropower, contributing to 16.6% of total gross electricity production of the country. Italy has also large geothermal resources, both high and low temperature: it is the most important producer of geothermal electricity in Europe. Despite strong growth in sectors such as onshore wind, biogas and biodiesel, Italy is far from the targets. Firstly, there is a large element of uncertainty due to political changes and ambiguities in current policy design. Secondly, there are administrative constraints such as complex authorization procedures at local level. Thirdly, there are financial barriers such as high grid connection costs. The Italian government is working out the details of more ambitious support mechanisms for the development and use of RES. Italy may be on the verge of moving towards a feed-in tariff-based renewable energy rebate scheme, similar to successful models implemented in Germany and Spain. Italian Government is developing a national building law that will ensure that solar thermal installations are installed in new and refurbished buildings and will assist in increasing the market penetration for RES-H&C technologies. The Italian nuclear power referendum of November 1987 rejected the expansion of the country's nuclear power industry by the construction of new nuclear power plants. Subsequently, the Italian government decided in 1988 to phase out existing plants. KEY FIGURES • The share of RES in total primary energy consumption was of 6.82% in 2006. • The share of RES in the gross final energy consumption was 5.2 % in 2005. • The share of RES in the gross electricity production was 16.6% in 2006 with 52.272 GW/h, conventional energy produced 261.851 GW/h. • The share of biofuels in the transport sector in 2006 was 0.52%. • Italy energy dependence on imports amounts to 86.8% in 2005. Technology specific figures • Hydropower represents one of the most important energy resources in the country. It represents 24% of the total installed capacity in Italy supplying 16% of gross electricity production. • Biomass energy accounts for 25% of all primary energy from RES (excluding plants fuelled also from waste), in 2006 they were 2.565 plants in operation producing 4.786 (GWh), with an installed capacity of 2.469, 881 MW. • Geothermal energy is also important in Italy, representing 2% of the total gross electricity production. • Wind energy reached 2.100 MW of installed capacity at the end of 2006. 162 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Source: GSE, 2007 RES POLICY At the end of 2007 the Italian government has introduced some new provisions for renewable power generators. Small generators (up to 1 MW) will have the choice between selling their green certificates on the market and receiving a feed-in tariff. The renewable energy obligation for Italian suppliers will increase annually by 0.75% to 2012 (instead of the former 0.35%), starting from the 2007 share of about 4%. After 2012, a new annual increase percentage will be established by the Italian government. RES TARGETS Mandatory targets set by the newly proposed RES Framework Directive from 200855 • 17% share of RES on the final consumption of energy in 2020. • At least 10% share of biofuels of final consumption of energy in transport in that Member State in 2020. Indicative Target set by the RES- electricity European Directive from 200156 • 25 % Share of RES on gross electricity consumption by 2010. Indicative Target set by the European Biofuels Directive from 200357 • Biofuels consumption of 5.75 % of petrol and diesel use for transport in 2010. Progress towards the Targets • The Share of RES-e in the total electricity consumption was of about 16.6.% in 2006, in 2005 13.93%, so smoothly Italy is moving towards it s 25% target by 2010 but still is far from reaching it. Italy aims for a RES-e share of 25% of gross electricity consumption by 2010. But then the Italian Government declared that a more probable a beliverable target would be 22%. • For biofuels, Italy’s Decree 128/2005 set a reference value of 1% by 2005, which is lower than the 2% reference value in the EU Directive. 55 Proposal for a Directive of the European Parliament and the Council on the promotion of the use of energy from renewable sources from January 2008(the targets agreed but the directive is on legislative process) 56 Directive 2007/71/EC on the promotion of electricity produced from renewable energy sources in the internal electricity market. Currently in force, sets targets up to 2010. 57 Directive 2003/30/EC on the promotion of the use of biofuels or other renewable fuels for transport Currently in force, sets targets up to 2010, with indicative targets by 2005. 163 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential RES POLICY INSTRUMENTS Support for RES electricity In order to promote RES-e, Italy has adopted the following schemes: Quota obligation An obligation for electricity generators to feed a given proportion of RES-e into the power system. In 2007, the target percentage was 3.05%. In case of non-compliance, sanctions are foreseen, but enforcement in practice is considered difficult because of ambiguities in the legislation. The renewable energy obligation for Italian suppliers will increase annually by 0.75% to 2012 (instead of the former 0.35%), starting from the 2007 share of about 4%. After 2012, a new annual increase percentage will be established by the Italian government. Tradable Green Certificates Tradable Green Certificates (which are tradable commodities proving that certain electricity is generated using RES) are used to fulfil the RES-e obligation. The cumulated average price of the green certificates for 2006, updated as of 03/01/2007, is of 13,91 EUR cent/kWh . The Financial law 2008 (LEGGE 24 dicembre 2007, n. 244.) has introdued new change in the Italian green certificate system: • Each green certificate corresponds to 1 MWh (before was 50 MWh). • Green certificates will be released for 15 years (before were 12 years and even before 8 years). • Green certificates will be differentiated for the renewables sources: the number of green certificates corresponding to the production will be multiplied for a different factor for each sources (before was the same for all renewables). • Small plants (P<1MW) can decide to sell energy and take the green certificates or a feed-in tariff (electricity price+incentivation). See Annex II for more details on the green certicates system in Italy. Feed-in tariff for PV The Italian Ministry for Industry passed a law for a new feed-in-tariff for small photovoltaic installations, effective from 24 February 2007. The new ‘Decreto’ guarantees a feed-in tariff for PV-installations larger than 1 kilowatt. The owner, being a person or a company, receives 0,44 Euros/kWh (and 0,49 Euros/kWh if the PV panels are architecturally integrated). For installations larger than 3 kW, the tariff is about 5% less. From 2009, the tariff annually decreases by 2%, and it will end by 2020. The maximum power to be installed is 3,000 MW by 2016. This is a fixed tariff, guaranteed for 20 years and adjusted annually for inflation. New Feed in Tariff System The Financial law 2008 (LEGGE 24 December 2007, n. 244.) changed the green certificate system in many parts and, and together with the green certificate system, it has established a new feed-in tariff system for small (P <1 MW) renewable plants (except PV- have their own feed in tariff explained before) but these feed in tariff only applies for plants that will start producing from the 1st January 2008. • Small plants (P<1MW) can decide to sell energy and take the green certificates or a feed-in tariff (electricity price+incentivation). 164 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential • • • These feed-in tariffs are different for each renewable source. These tariffs differ from 18 ct/kWh for gas from landfill to 34 ct/kWh for tidal and wave energy. Feed-in tariffs will be released for 15 years. Priority access to the grid system is granted to electricity from RES and CHP plants. Plants (< 1 MWe) Wind Solar Geothermal Wave and tide energy Hydro Biodegradable waste, biomass different from the other in next point Biomass and biogas via agricultural farming and forestry activities from short chain Gas from landfill and gas from wastewater purification processings and biogas Feed-In Tariff (euro cent/kWh) 22 (according to decree 19 February 2007) 20 34 22 22 30 18 Support for RES Heating and Cooling Investment subsidies For micro, small scale and diffused cogeneration units. The overall amount of contributions is equal to 30.000.000 Euro, to be distributed to eligible and selected projects with the following criteria: • Up to 20% of capital cost (maximum limit of 200.000 Euro) for units fed by natural gas (increased to 30% in case of tri-generation). • Up to 30% of capital cost (maximum limit of 300.000 Euro) for units fed by biomass or for hybrid units fed by natural gas- biomass. (Increased to 40% in case of tri-generation). • For projects in areas not serviced by gas network the contribution at point 2 is increased to 40%. Tax incentives Italian citizens, when they make their tax declarations, may deduct 36% of the investment costs of their solar thermal systems from their tax bill, spread over ten years. Any refurbishment to a house incurs VAT at 10% instead of 20%. Eligible refurbishments include the installation of solar thermal systems. a) Investment incentives A regulation from January 2007 establishes among others investment incentives for the solar thermal installations of 50 to 500 sm. The scheme covers 30% of eligible investment costs of these systems based on the following calculation: • Glazed flat collectors: C (€/m2) = 1/3 (1600 + 25000/S). S is the surface in sm. • Unglazed flat collectors: C (€/m2) = 1/3 (550 + 25000/S). S is the surface in sm. • Evacuated tube collectors: C (€/m2) = 1/3 (1900 + 25000/S). S is the surface in sm. For citizens, grants are available through the Programme Comune Solarizzato, from the Ministry of Environment and Territory Management ("Ministero dell'Ambiente e della Tutela del Territorio") in combination with funds from Italy’s regional governments. Both parties contribute 50% to a scheme that refunds citizens who install domestic solar thermal systems. The programme includes as well raising-awareness campaigns at the level of the provinces, based on the agreements they have with the Ministry. 165 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential The Italian Government is developing a national building law, which regulates the use of solar thermal installations for hot water production in new buildings and for refurbishment projects. In addition, a tax reduction of 55 % for each purchase of a solar thermal installation is planned. Support for Biofuels Biofuel quota obligations Resource Biofuels Biofuels Quota in % (per year) 2.5% (energy) 5.75% (energy) Year 2008 2010 Comments Guideline only Compulsory Fiscal Incentives Fiscal measures have been targeted on biodiesel and vegetable-based ethanol. Biodiesel, provides for exemption from excise duty for an annual quota of 200 000 tonnes of biodiesel under a six-year programme running from 1 January 2005 to 31 December 2010. The size of the reduction may be amended, by means of a decree issued by the Minister for Economic Affairs and Finance, in order to prevent overcompensation of the additional costs involved in the production of biodiesel (compared with the cost of diesel oil). It is planned to monitor the average industrial production cost of biodiesel to provide a basis for assessing whether or not there is any overcompensation. Italian law (Article 21(6a) of the single text on excise duties) provides for reduced rates of excise duty on vegetable-based ethanol and products derived as fuel or fuel additives as part of an experimental programme to encourage the use of this biofuel. Support for all RES Fiscal incentives RES Investments benefit from a rebate on VAT (10% instead of 20%) and from a 10-year corporate tax reduction, if carried out in southern regions. Investment Subsidies Italy plans to offer incentives for investment in renewable energy production. Qualifying production units include: • grid connected photovoltaic plants from 20 kW to 50 kW ; • wind energy plants from 20 kW to 100 kW; • solar thermal collectors from 50 m2 to 500 m2; • biomass plants from 150 kW to 1000 kW; For wind energy plants, solar thermal collectors and biomass plants, the refunds to capital costs can be up to 30 % of initial costs. For investment in solar PV, the incentives can reach 60% of the plant's capital costs. In the case of photovoltaic plants, it is hoped that this incentive scheme will help to boost Italy's installed photovoltaic capacity to 3,000 MW by 2016. Annex I. Evolution of RES production in Italy (1994-2006) Annex II Green certificate system in Italy. Annex III RES electricity Potentials Annex IV RES Bioenergy Potentials 166 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Sources: European Commission Factsheets by Country http://ec.europa.eu/energy/energy_policy/facts_en.htm Member States Reports in the framework of the Directive 2001/77/EC on renewable electricity http://ec.europa.eu/energy/res/legislation/electricity_member_states_en.htm Member States Reports in the framework of the Directive 2003/30/EC on biofuels http://ec.europa.eu/energy/res/legislation/biofuels_members_states_en.htm APER www.aper.it IMAA, CNR http://www.imaa.cnr.it/ EurObserv’er Barometer http://www.energies-renouvelables.org/observ-er/sig/eufores/sig.asp In the framework of the EU co –funded project: RES 2020: Monitoring and Evaluation of the RES Directives implementation in EU27 and policy recommendations to 2020 The sole responsibility for the content of this publication lies with the authors. It does not represent the opinion of the Community. The European Commission is not responsible for any use that may be made of the information contained therein. Drafted in March 2008 167 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Annex I. Evolution of RES production in Italy (1994-2006) RES Production (GWh) (1994-2006) Total Production Hydropower Geothermal Biomass Wind Solar Total production Vs RES production (GWh) (1994-2006) Total Production RES Production 168 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Annex II Green certificatesystem in Italy. The Financial law 2008 (LEGGE 24 dicembre 2007, n. 244.) has introdued new change in the Italian green certificate system: • Small generators (up to 1 MW) will have the choice between selling their green certificates on the market and receiving a feed-in tariff. • The renewable energy obligation for Italian suppliers will increase annually by 0.75% to 2012 (instead of the former 0.35%), starting from the 2007 share of about 4%. After 2012, a new annual increase percentage will be established by the Italian government. • New installations that can qualify as Renewable Energy Sources, will be granted green certificates (Certificati) for the duration of fifteen years (previously twelve years). • The default energy value of certificates changed from 50 MWh to 1 MWh, which is more convenient for small producers. • Moreover, the Italian government introduced 'banding' into the certificate system, similar to the UK modifications to its ROCs system. The quantity of green certificates granted to renewable power producers with installations larger than 1MW is derived from the multiplication of the real power production expressed in MWh and a coefficient, varying with the technology considered. This coefficient varies from the minimum unitary coefficient for the wind onshore energy to a maximum value of 1.8 for wave and tide energy, biomass and biogas energy. • If an excess of certificates is offered on the market, the 2008 financial plan says that the GSE (the Italian Power Services Administrator) is committed to purchase green certificates on the market at the yearly averaged price of the year before. In 2007 the green certificates price was around 130 euro/MWh. Plant size Source Green Certificates Coefficient Wind onshore 1.00 Wind offshore 1.10 Solar (according to decree 19 February 2007) Geothermal 0.90 Wave and tide energy 1.80 Hydro source different from those from previous point 1.00 Biodegradable waste, biomass different from the other in next point 1.1 Biomass and biogas via agricultural farming and forestry activities 1.8 > 1 MWe Biomass and biogas of previous point used in high yield CHP reusing the heat power produced in agricultural sector Gas from landfill and gas from wastewater purification processings and biogas from activities not included in the previous point 1.8 0.80 169 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Biomass Plant size Source Power > 1 MWe Biodegradable waste, biomass different from those described in next points Biomass and biogas deriving from "short chain" agricultural, farming and forestry activities Biomass and biogas from previous feeding high efficiency CHP plants reusing produced heat in agricultural sector Gas from landfill and gas from wastewater purification processes and biogas different from previous point GC Coefficient 1.1 1.8 1.8 0.80 170 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Annex III RES electricity potentials Description Unit 2005 2010 2015 2020 Total Wind Maximum Wind onshore Maximum Wind offshore Maximum solar PV Maximum solar thermal Total Hydro Maximum conventional hydro of which Maximum run of river Maximum Pumped Storage hydro Maximum Tide & Wave power plants Maximum geothermal Total Maximum geothermal dry steam & flash power plants (>180°C) Maximum geothermal binary power plants (180°C<x<85°C) Maximum geothermal EGS power plants Maximum biomass power plants (conventional+CHP) Maximum biogas power plants (conventional+CHP) Maximum bio waste power plants (CHP) MW MW MW TWh MW MW MW MW MW TWh TWh 1715 10000 15500 19000 23000 21310 14323 4345 6987 3.7 2642.0 21904 14747 4650 7157 3.22 7.27 21998 14791 4726 7207 791 810 MW 0.0 20744 13789 4020 6955 5.50 785 2025 2030 MW MW TWh 0.5 26.6 TWh TWh 1.2 1.7 10.4 4.9 The previous tables present the data that have been gathered in the framework of the RES2020 project in order to be used in the modelling. The data have been collected • Through EREC and its Members • Through a revision of previous EU funded projects and reports (GreenX, OPTRES) • Through the partners of the project The data have been discussed in the framework of the REWG of the EnR with the country experts. The tables present an estimation of the technical potential that could be utilized as an upper bound by 2010, 2015, 2020 and 2030. As technical potential we are considering: • the future installed capacity of wind turbines without taking in mind financial issues at a "reasonable" wind speed as a possible upper limit in the development of the installed capacity over time. • the future installed capacity of hydro considering technical issues only and a possible upper limit in the development of the installed capacity over time. For some technologies potential may be unlimited (e.g. photovoltaics), so we are using upper bound limits within the relevant time frames. 171 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential TABLE 1 Potentials agricultural bioenergy Description Sugar crops: sugar beet Step 1 Step 2 Step 3 Step 4 Starch crops: rye, oats, maize, wheat, barley, etc Step 1 Step 2 Step 3 Step 4 Grassy crops: switchgrass, miscanthus, sweet sorghum, etc Step 1 Step 2 Step 3 Step 4 Woody crops: willow, poplar Step 1 Step 2 Step 3 Step 4 Oil crops: sunflower, rapeseed Step 1 Step 2 Step 3 Step 4 Annex IV RES Bionergy Potentials Unit LimType 2000 2001 2005 2010 2015 2020 2025 2030 Potential Cost Potential Cost Potential Cost Potential Cost [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] UP 11,0 10,0 11,0 10,0 11,0 10,0 27,0 9,69 42,0 9,39 57,0 9,12 74,0 8,89 91,0 8,68 Potential Cost Potential Cost Potential Cost Potential Cost [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] UP 12,0 13,9 12,0 13,9 12,0 13,9 28,0 13,11 44,0 12,44 60,0 11,88 78,0 11,4 96,0 10,98 Potential Cost Potential Cost Potential Cost Potential Cost [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] UP 30,0 5,0 30,0 5,0 30,0 5,0 74 4,6 117 4,3 160 4,1 208 3,9 256 3,8 Potential Cost Potential Cost Potential Cost Potential Cost [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] UP 41,0 3,1 41,0 3,1 41,0 3,1 100,0 2,88 159,0 2,72 218,0 2,58 283,0 2,48 348,0 2,39 Potential Cost Potential Cost Potential Cost Potential Cost [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] UP 10,0 11,4 10,0 11,4 10,0 11,4 24,0 11,1 39,0 10,8 53,0 10,5 68,0 10,2 84,0 10,0 Source UP UP UP UP UP UP UP UP UP UP UP UP UP UP UP 172 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential TABLE 2 Potentials bioenergy from wastes Description Agricultural waste Unit LimType Potential Cost [PJ/a] [€/GJ] UP Potential Cost [PJ/a] [€/GJ] UP Potential Cost [PJ/a] [€/GJ] Potential Cost 2000 2001 2005 2010 2015 2020 2025 2030 Source 72 77 82 EEA Report 7 2006 UP 13 14 15 EEA Report 7 2006 [PJ/a] [€/GJ] UP 42 45 48 EEA Report 7 2006 Potential Cost [PJ/a] [€/GJ] UP 35 37 40 EEA Report 7 2006 Potential Cost [PJ/a] [€/GJ] UP 0 0 Potential Cost [PJ/a] [€/GJ] UP 4 4 4 EEA Report 7 2006 Potential Cost Potential Cost Potential Cost [PJ/a] [€/GJ] [PJ/a] [€/GJ] [PJ/a] [€/GJ] UP 4 4 4 EEA Report 7 2006 UP 55 59 63 EEA Report 7 2006 UP 4 4 4 EEA Report 7 2006 Potential Cost [PJ/a] [€/GJ] UP 13 14 15 EEA Report 7 2006 Forestry residues Wood processing residues Municipal solid waste Wet manures Black liquor Sewage sludge Other waste wood households packageing demolition Dry manures 173 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential 17. LITHUANIA 174 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential In 2005, the share of oil represented 30.8% of the national balance of primary energy resources natural gas – 28.4%, and nuclear energy 27.9%. In 2005, around 70% of the total domestic electricity production was generated by the Ignalina nuclear power plant (about 21% by thermal power plants).However, this situation will change as one of the two nuclear reactors has closed and the second will close in 2009. The following key factors influence the energy sector in Lithuania: prevalence of import of primary energy resources from Russia as well as absence of interconnections with Western European energy systems and the decommissioning of the Ignalina NPP in 2009. In Lithuania the main installations for heat production from renewable energy sources (RES) are biomass (wood, chips, wood waste, straw, biogas). Hydro is the main renewable energy source for power production. However, last year, the use of wind energy and biomass in CHP for power production increased. KEY FIGURES • The share of RES in total primary energy consumption was 9.62%.in 200658. • The share of RES in the gross final energy consumption 15% in 2005. • The share of RES in the gross electricity production is 2.83% in 2006.59 • The share of biofuels in the consumption of fuels for transport amounted in 2006 to 1.72%. • Dependence on external energy supplies amounted in 2005 to 63.1% Technology specific figures: o Installed capacity for solid biomass for heat production amounted to 440 MW; o Installed capacity for solid biomass electricity production amounted to16 MW o Small hydro power plants (N<10 MW) 27 MW; o Kauno hydro power plant amounts to 105 MW o Installed capacity for wind energy by the end 2006 was 54.3 MW • About 75% of residential buildings in Lithuania’s towns are supplied through district heating systems. • In 2006, Lithuania imported 2 600 tonnes bioethanol and 6 100 tonnes of biodiesel; produced 14 700 tonnes of bio-ETBE (containing 47% bioethanol). Lithuania consumed 1 531 200 tonnes of fuel, including 1 328 700 tonnes of fuel for land transport (as against 1 233 000 tonnes in 2005), including biofuels for transport and liquefied petroleum gas (211 100 tonnes)60. 58 EurObserv’er EurObserv’er 60 Lithuanian Department of Statistics 59 175 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Structure of gross inland energy consumption in Lithunia in 2006 2006 Renewable energy 9.1% Natural gas 28.5% Nuclear energy 26.2% Oil and oil products 31.3% Coal and other solid fuel 4.9% Total: 8.60 Mtoe RE Sources used for Energy- 2006 Firewood and wood waste 92.1% Agriculture Biogas waste 0.3% 0.2% Small HPP 0.6% Large HPP 3.7% Wind 0.2% Bioethanol 0.9% Geothermal 0.2% Biodiesel 1.8% RES POLICY RES TARGETS Mandatory targets set by the newly proposed RES Framework Directive from 200861 • 23% share of RES on the final consumption of energy in 2020. • At least 10% share of biofuels of final consumption of energy in transport in that Member State in 2020. 61 Proposal for a Directive of the European Parliament and the Council on the promotion of the use of energy from renewable sources from January 2008(the targets agreed but the directive is on legislative process) 176 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Indicative Target set by the RES- electricity European Directive from 200162 • 7% share of RES on gross electricity consumption by 2010 Indicative Target set by the European Biofuels Directive from 200363 • Biofuels consumption of 5.75% of petrol and diesel use for transport in 2010. National Commitments The National Energy Strategy adopted in January 2007 set the main targets: • RES must be 20% in the primary energy balance by 2025. • Increase the share of RES in primary energy balance by 1.5% each year until 2012. • To increase the share of biofuels (for transport) up to 20% by 2025. Technology specific targets In 2006, the National Energy Strategy (NES) was updated, setting out key provisions of the energy policy planning that in 2010, 7.7% of the electric power consumed will be generated using renewable energy resources: wind farms will generate about 320 GWh of electric power, with hydropower plants contributing 452 GWh, biomass power plants - 220 GWh and solar and geothermal power plants - 3.2 GWh. In 2007 the Seimas of the Republic of Lithuania approved the revised National Energy Strategy, which is the main strategic document of the energy sector. Support for Electricity Feed-in tariffs Lithuania has a feed-in tariff with a Purchase obligation. In 2002, the National Control Commission for Prices and Energy approved the average purchase prices of green electricity. The tariffs are guaranteed for a fixed period of 10 years. Resource hydro wind wind biomass biomass Technology small onshore offshore solid gasification (biogas) Support level [€cents/ kWh] 5.8 6.4 6.4 5.8 Feed-in tariff or premium? feed-in tariff feed-in tariff feed in feed in Duration [years that an investor is entitled to support] 10 years 10 years 10 years 10 years 5.8 feed-in tariff 10 years Exemption from Excise duty The Law of the Republic of Lithuania on Excise Duty provides that exemption from excise duty is applied to electricity produced from renewable energy sources. Grid issues The Law on Electricity sets forth that the National Price and Energy Regulation Commission must control that network connection conditions and tarrifs for new electricity producers are objective, transparent and non-discriminating taking into account all costs and benefit derived from renewable energy sources. Provisions of Resolution No 1474 intended to implement the Law on Electricity set that public and independent suppliers, market, transmission and distribution network operators holding activity licences and eligible customers importing electricity, shall provide services according to the list of public services obligation in the electricity sector. 62 Directive 2007/71/EC on the promotion of electricity produced from renewable energy sources in the internal electricity market. Currently in force, sets targets up to 2010. 63 Directive 2003/30/EC on the promotion of the use of biofuels or other renewable fuels for transport Currently in force, sets targets up to 2010, with indicative targets by 2005. 177 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Discount on the fee of connection of power plants to the network There is a 40% discount for power plants connection to the grid Support for heat There is no support measures for heat Support for Biofuels Exemptions from excise duty Pursuant to Council Directive 2003/96/EC of 27 October 2003 (restructuring the Community framework for the taxation of energy products and electricity), Lithuania began applying a reduced rate of excise duty to biofuels for transport. The relief is applicable to bioethanol, biodiesel, bioETBE and pure vegetable oil. Environment pollution tax reduction There is an exemption from the environment pollution tax from mobile pollution sources for natural and legal entities polluting through vehicles using biofuels. Natural and legal entities having produced documents of proof of biofuel consumption are exempted from the environment pollution tax from stationary sources of pollution. Compensatory payments To promote production of biofuels for transport, compensation is granted for raw materials sold for the production of biofuels for transport: for cereal grains - 114 LTL/tonne, for rapeseed (grains) 160 LTL/tonne. In 2006, LTL 13.66 million was allocated from the national budget for compensatory payments. Beneficiaries included producers of rapeseed oil used for the production of rapeseed methyl ester, producers of rapeseed methyl (ethyl) ester and producers of dehydrated ethanol. Annex I . RES electricity Potentials Annex II RES Bioenergy Potentials 178 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Sources European Commission Factsheets by Country http://ec.europa.eu/energy/energy_policy/facts_en.htm Member States Reports in the framework of the Directive 2001/77/EC on renewable electricity http://ec.europa.eu/energy/res/legislation/electricity_member_states_en.htm Member States Reports in the framework of the Directive 2003/30/EC on biofuels http://ec.europa.eu/energy/res/legislation/biofuels_members_states_en.htm Lithuanian Energy Institute www.lei.lt Lithuania Renewable Energy Agency http://www.avei.lt/ Ministry of Economy of the Republic of Lithuania http://www.ukmin.lt/en/energy/renew/ EurObserv’er Barometer http://www.energies-renouvelables.org/observ-er/sig/eufores/sig.asp In the framework of the EU co –funded project: RES 2020: Monitoring and Evaluation of the RES Directives implementation in EU27 and policy recommendations to 2020 The sole responsibility for the content of this publication lies with the authors. It does not represent the opinion of the Community. The European Commission is not responsible for any use that may be made of the information contained therein. Drafted in March 2008. 179 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Annex I . RES electricity Potentials Description Unit 2005 2010 2015 2020 Maximun wind Maximum Wind onshore Maximum Wind offshore Maximum solar PV Maximum solar thermal Total Hydro Maximum conventional hydro of which Maximum run of river Maximum Pumped Storage hydro Maximum Tide & Wave power plants Maximum geothermal conventional power plants Maximum geothermal hot dry rock power plants Maximum biomass power plants (conventional+CHP) Maximum biogas power plants (conventional+CHP) Maximum bio waste power plants (CHP) MW MW MW TWh MW MW MW MW MW TWh 1 1 250 250 500 420 80 1023 123 0 900 1031 131 0 900 800 700 100 0.03 0.00 1035 135 0 900 0.02 MW 0 MW 0 MW 4.21 MW MW 0.03 2025 2030 1570 1370 200 1040 140 0 900 7.5 0.11 The previous table present the data that have been gathered in the framework of the RES2020 project in order to be used in the modelling. The data have been collected • Through EREC and its Members • Through a revision of previous EU funded projects and reports (GreenX, OPTRES) • Through the partners of the project The data have been discussed in the framework of the REWG of the EnR with the country experts. The tables present an estimation of the technical potential that could be utilized as an upper bound by 2010, 2015, 2020 and 2030. As technical potential we are considering: • the future installed capacity of wind turbines without taking in mind financial issues at a "reasonable" wind speed as a possible upper limit in the development of the installed capacity over time. • the future installed capacity of hydro considering technical issues only and a possible upper limit in the development of the installed capacity over time. For some technologies potential may be unlimited (e.g. photovoltaics), so we are using upper bound limits within the relevant time frames. 180 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential TABLE 1 Potentials agricultural bioenergy Description Sugar crops: sugar beet Step 1 Step 2 Step 3 Step 4 Starch crops: rye, oats, maize, wheat, barley, etc Step 1 Step 2 Step 3 Step 4 Grassy crops: switchgrass, miscanthus, sweet sorghum, etc Step 1 Step 2 Step 3 Step 4 Woody crops: willow, poplar Step 1 Step 2 Step 3 Step 4 Oil crops: sunflower, rapeseed Step 1 Step 2 Step 3 Step 4 Annex II RES Bionergy Potentials Unit LimType 2000 2001 2005 2010 2015 2020 2025 2030 Potential Cost Potential Cost Potential Cost Potential Cost [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] UP 93,0 6,1 93,0 6,1 93,0 6,1 180,0 6,16 225,0 6,27 269,0 6,47 293,0 6,79 318,0 7,29 Potential Cost Potential Cost Potential Cost Potential Cost [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] UP 2,0 7,9 2,0 7,9 2,0 7,9 5,0 7,56 6,0 7,31 7,0 7,11 7,0 6,98 8,0 6,91 Potential Cost Potential Cost Potential Cost Potential Cost [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] UP 152,0 3,8 152,0 3,8 152,0 3,8 310 3,5 397 3,3 484 3,2 538 3,2 592 3,2 Potential Cost Potential Cost Potential Cost Potential Cost [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] UP 119,0 2,0 119,0 2,0 119,0 2,0 243,0 1,87 311,0 1,8 380,0 1,79 422,0 1,82 465,0 1,91 Potential Cost Potential Cost Potential Cost Potential Cost [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] UP 36,0 5,1 36,0 5,1 36,0 5,1 71,0 4,9 88,0 4,8 106,0 4,7 115,0 4,6 125,0 4,5 Source UP UP UP UP UP UP UP UP UP UP UP UP UP UP UP 181 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential TABLE 2 Potentials bioenergy from wastes Description Agricultural waste Unit LimType 2000 Potential [PJ/a] UP 0,2 Cost [€/GJ] Potential [PJ/a] UP 8,8 Cost [€/GJ] Potential [PJ/a] Cost [€/GJ] Potential Cost 2001 2005 2010 2015 2020 2025 2030 Source EEA Report 7 2006 7 according to Dravininkas, A. (2005): The use of plant biomass and its waste products for energy purpose in Lithuania. Institute of Agricultural Engineering, Lithuanian University of Agriculture, Lithuania, 2005. http://www.agri.ee/public/juurkataloog/BIOENERGEETIKA/Dravininkas.ppt 10.3 according to Dravininkas, A. (2005): The use of plant biomass and its waste products for energy purpose in Lithuania. Institute of Agricultural Engineering, Lithuanian University of Agriculture, Lithuania, 2005. EEA Report 7 2006 7 according to Dravininkas, A. (2005): The use of plant biomass and its waste products for energy purpose in Lithuania. Institute of Agricultural Engineering, Lithuanian University of Agriculture, Lithuania, 2005. 9 10 10 UP 33 35 38 [PJ/a] [€/GJ] UP 7 8 8 EEA Report 7 2006 Potential Cost [PJ/a] [€/GJ] UP 6 6 6 EEA Report 7 2006 Potential Cost [PJ/a] [€/GJ] UP Potential Cost [PJ/a] [€/GJ] UP Potential Cost Potential Cost Potential Cost [PJ/a] [€/GJ] [PJ/a] [€/GJ] [PJ/a] [€/GJ] UP 2 2 2 EEA Report 7 2006 Potential Cost [PJ/a] [€/GJ] UP Forestry residues Wood processing residues Municipal solid waste Wet manures Black liquor Sewage sludge Other waste wood households packageing demolition UP UP Dry manures 182 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential 18. LUXEMBOURG 183 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Luxembourg is almost totally dependent on energy imports. Oil dominates in terms of primary energy supply, while natural gas has been gradually replacing solid fuels. The majority of energy imports are of oil and natural gas, with the latter contributing substantially to the electricity generation since 2002. The share of transport in total final energy consumption is around double that of the EU-27 average. Energy consumption and CO2 emissions per capita are the highest in the EU-27. While the electricity production from small-scale hydro power has stabilised in recent years, the contributions from onshore wind, PV, and biogas have now started to increase. KEY FIGURES • The share of RES in total primary energy consumption was of 2.61% in 2006. • The share of RES in the gross final energy consumption was 0.9% in 2005. • The share of RES in the gross electricity production was 3.60% in 2006. • The share of all biofuels in the transport sector in 2006 was 0.026% based on the energy content. • Dependence on external energy supplies is of about 99% in 2005. Technology Specific figures: In 2005, electricity production from biogas amounted to 27 GWh, biowaste to 18GWh, small hydro 102 GWh, photovoltaic to 19 GWh and wind onshore to 53 GWh (the total amounts to 219 GWh). RES POLICY RES TARGETS Mandatory targets set by the newly proposed RES Framework Directive from 200864 • 11% share of RES on the final consumption of energy in 2020. • At least 10% share of biofuels of final consumption of energy in transport in that Member State in 2020. 64 Proposal for a Directive of the European Parliament and the Council on the promotion of the use of energy from renewable sources from January 2008(the targets agreed but the directive is on legislative process) 184 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Indicative Target set by the RES- electricity European Directive from 200165 • 5.7 % share of RES on gross electricity consumption by 2010. Indicative Target set by the European Biofuels Directive from 200366 • Biofuels consumption of 5.75% of petrol and diesel use for transport in 2010. RES POLICY INSTRUMENTS Support for RES electricity Feed in tariff The 1993 Framework Law defines the renewable electricity (RES-E) policy: Feed-in tariffs are given to different types of RES-E technologies. These tariffs have been amended in February 2008. The new tariffs are in force for installations starting after the first January 2008. Tariffs are guaranteed over 15 years with simpler administrative procedures. They are differentiated according to technology and capacity. Some tariffs are degressive. Tariffs for wind onshore since January 2008 are set at 82.7euros per MWh. For photovoltaic, this tariff is set for small PV panels (inferior or equal to 30 kW) at 420 euros per MWh (with an annual degression rate of 3%) and for bigger panels (31kW-1000kW) at 370 euros per MWh. Concerning small hydro, (up to 1 MW installed capacity), tariff is set at 105 euros per MWh. For bigger systems (1 to 6 MW) , tariffs are set 85 euros per MWh. Biogas feed-in tariffs amount to 150 euros per MWh for small systems (0 to 150 kW), to 140 euros (151-300kW), to 130 euros (301- 500kW) and 120 euros (501 kW-2500kW). For sewage treatment plants, 65 euros per MWh is the tariff. Concerning solid biomass, the tariff is set at 145 euros per MWh for small systems (0 to 1 MW), and at 125 euros ( 1 to 5 MW). Concerning waste wood, tariffs are set 130 euros for systems up to 1 MW, and to 110 euros for systems between 1 and 5 MW. Investments subsidies: Subsidies are available to private companies (Framework Law of Economy Ministry- Framework Law of the Ministry of Middle Classes), communes (Environment Protection Fund of the Environment Ministry), farmers (Law from the Agriculture Ministry supporting rural development) and households (regulation of the 21st December 2007 of the Environment Ministry) investing in RES-E technologies. In January 2008, new grants for households entered into force to promote RES-E: Concerning wind onshore, investment aid amounts to 20% to 25% of the investment depending on the site’s quality. Investment aid amounts to 30% of the investment for all PV panels. For small hydro, investment aid amounts to 20% of the investment costs. For sewage treatment plants, investment aid amounts to 90% of investment costs. Investment aid for biogas installation amounts to 50% and for solid biomass to and waste wood to 20 %. 65 Directive 2007/71/EC on the promotion of electricity produced from renewable energy sources in the internal electricity market. Currently in force, sets targets up to 2010. 66 Directive 2003/30/EC on the promotion of the use of biofuels or other renewable fuels for transport Currently in force, sets targets up to 2010, with indicative targets by 2005. 185 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Support for RES Heating Premium Since January 2008, a so-called “heat premium” (prime de chaleur) has been introduced. This premium differs according to technologies (solid biomass, biogas and waste wood) and is granted for each MWth commercialised. For biogas, waste wood and solid biomass, the producer gets 30 euros per MWh if certain conditions are fulfilled. The new tariffs can apply to existing biogas installation (existing before the 1st January 2008) in case of extension of capacity. Investment subsidies In January 2008, new grants for private households promoting RES-Heat entered into force (regulation from 21st December 2007). These investment subsidies promote the use of solar thermal panel (50% of investment costs), biomass boilers (25-30%), geothermal heat exchanger (50%), geothermal heat pumps (40%). Support for Biofuels The government foresees in its 2006 action plan to promote the use of biofuels in order to reduce greenhouse gases emissions in the transport sector. Tax exemptions are made available for biofuels for transport. The setting of maximum levels of tax exemption is foreseen (EUR 23 per 1000 litres of unleaded petrol and EUR 10 per 1000 litres of diesel). Reduced excise tax Budget Law 2006 introduced a new provision to reduce taxes on biofuels blended in petrol and diesel. The budget law stipulates that : « biofuels when blended to petrol or diesel can benefit from a reduced excise tax. This reduction can not go beyond 23 € par 1.000 litres for when blended with unleaded petrol and 10,00 € for 1000 litres. Concerning bioethanol, the blending must be at least 2.93% by volume and for biodiesel at least 2.17%. Pure vegetable oil will be tax-free from 2007 to encourage captive fleets to switch. Obligation The 2007 Budget law plans an obligation on fuel suppliers to incorporate in 2007 at least 2% biofuels in tranport fuels consumed in Luxemburg (calculate by energy content). This obligation equals to a consumption of around 52 millions litres of biofuels combined with consumption in road transport estimated at 2.6 bn liters in 2007. The budget law 2007 foresees a tax on oil suppliers which can not demonstrate that they’ve fulfilled their obligation ( 1.200 EUR/1.000 litres). Annex I RES Electricity Potentials Annex II RES Bionergy Potentials 186 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Sources: Energy Agency from Luxemburg- Website Powerpoint Presentation of the new feed in tariffs http://www.ael.lu/cms/upload/downloads/home/aktuelles/080320/presentation_rgd080208.pdf Regulation on new feed-in tariffs http://www.ael.lu/cms/upload/downloads/home/aktuelles/080320/RGD080208.pdf List of legislation affecting renewable energy sources in Luxemburg http://fr.ael.lu/cms/front_content.php?idcat=27 Brochure on subsidies to private households http://fr.ael.lu/cms/upload/downloads/home/dienstleistungen/privatpersonen/brochure_regimeaides .pdf Subsidies for companies, private households and communes in Luxemburg http://fr.ael.lu/cms/front_content.php?idcat=63 In the framework of the EU co –funded project: RES 2020: Monitoring and Evaluation of the RES Directives implementation in EU27 and policy recommendations to 2020 The sole responsibility for the content of this Publication lies with the authors. It does not represent the opinion of the Community. The European Commission is not responsible for any use that may be made of the information contained therein. Drafted: March 2008 187 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Annex I RES Electricity Potentials Description Unit 2005 2010 2015 2020 Wind Total Maximum Wind onshore Maximum Wind offshore Maximum solar PV Maximum solar thermal Total Hydro Maximum conventional hydro of which Maximum run of river Maximum Pumped Storage hydro Maximum Tide & Wave power plants Maximum geothermal conventional power plants Maximum geothermal hot dry rock power plants Maximum biomass power plants (conventional+CHP) Maximum biogas power plants (conventional+CHP) Maximum Bio waste power plants (CHP) MW MW MW TWh MW MW MW MW 35 66 98 132 206 1128 32 17 1128 32 17 0.030 0.000 1128 32 17 1128 32 17 MW 1096 1096 1096 1096 TWh 0 MW 0 2025 2030 MW TWh 0.35 TWh 0.02 0.16 TWh 0.02 0.03 The following tables present the data that have been gathered in the framework of the RES2020 project in order to be used in the modelling. The data have been collected • Through EREC and its Members • Through a revision of previous EU funded projects and reports (GreenX, OPTRES) • Through the partners of the project The data have been discussed in the framework of the REWG of the EnR with the country experts. The tables present an estimation of the technical potential that could be utilized as an upper bound by 2010, 2015, 2020 and 2030. As technical potential we are considering: • the future installed capacity of wind turbines without taking in mind financial issues at a "reasonable" wind speed as a possible upper limit in the development of the installed capacity over time. • the future installed capacity of hydro considering technical issues only and a possible upper limit in the development of the installed capacity over time. For some technologies potential may be unlimited (e.g. photovoltaics), so we are using upper bound limits within the relevant time frames. 188 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential TABLE 1 Potentials agricultural bioenergy Description Sugar crops: sugar beet Step 1 Annex II RES Bionergy Potentials Step 2 Step 3 Step 4 Starch crops: rye, oats, maize, wheat, barley, etc Step 1 Step 2 Step 3 Step 4 Grassy crops: switchgrass, miscanthus, sweet sorghum, etc Step 1 Step 2 Step 3 Step 4 Woody crops: willow, poplar Step 1 Step 2 Step 3 Step 4 Oil crops: sunflower, rapeseed Step 1 Step 2 Step 3 Step 4 Unit LimType Potential Cost Potential Cost Potential Cost Potential Cost [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] UP Potential Cost Potential Cost Potential Cost Potential Cost [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] UP Potential Cost Potential Cost Potential Cost Potential Cost [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] UP Potential Cost Potential Cost Potential Cost Potential Cost [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] UP Potential Cost Potential Cost Potential Cost Potential Cost [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] UP 2000 2001 2005 2010 2015 2020 2025 2030 0,0 9,2 0,0 9,2 0,0 9,2 0,0 8,85 1,0 8,56 1,0 8,31 1,0 8,08 1,0 7,88 0,0 10,3 0,0 10,3 0,0 10,3 0,0 9,72 0,0 9,24 0,0 8,82 1,0 8,47 1,0 8,16 0,0 5,9 0,0 5,9 0,0 5,9 1 5,5 1 5,1 1 4,8 2 4,6 2 4,4 0,0 3,6 0,0 3,6 0,0 3,6 1,0 3,32 1,0 3,11 1,0 2,95 2,0 2,82 2,0 2,71 0,0 8,8 0,0 8,8 0,0 8,8 0,0 8,5 0,0 8,3 0,0 8,1 0,0 7,9 1,0 7,7 Source UP UP UP UP UP UP UP UP UP UP UP UP UP UP UP 189 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential TABLE 2 Potentials bioenergy from wastes Description Agricultural waste Unit LimType Potential Cost [PJ/a] [€/GJ] UP Potential Cost [PJ/a] [€/GJ] UP Potential Cost [PJ/a] [€/GJ] UP Potential Cost [PJ/a] [€/GJ] UP Potential Cost [PJ/a] [€/GJ] UP Potential Cost [PJ/a] [€/GJ] UP Potential Cost [PJ/a] [€/GJ] UP Potential Cost Potential Cost Potential Cost [PJ/a] [€/GJ] [PJ/a] [€/GJ] [PJ/a] [€/GJ] UP Potential Cost [PJ/a] [€/GJ] UP 2000 2001 2005 2010 2015 2020 2025 2030 Source Forestry residues 2 2 2 EEA Report 7 2006 Wood processing residues Municipal solid waste Wet manures Black liquor Sewage sludge Other waste wood households packageing demolition UP UP Dry manures 190 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential 19. LATVIA 191 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential The supply system of primary energy resources in Latvia consists of 3 resources: natural gas, oil and biomass. The supply of natural gas has an increased risk level since it is possible to receive it only from one supplier. Latvia has the largest share within the EU of renewable energy in its energy mix. Renewable energy sources make up one third of the energy mix in Latvia. Wood and water are the most widely used renewable energy resources: Wood as fuel is used for district heating, both centralised and local, and for heating individual buildings. The share of renewable energy resources in electricity generation in Latvia is very significant: electricity generation is predominantly based on renewable sources (mainly hydro) and to a smaller degree on natural gas, resulting in low CO2 emissions . However, energy import dependency in Latvia is above the EU-27 average with oil and natural gas imported mainly from Russia. KEY FIGURES: • The share of RES in total primary energy consumption was 29.1% in 200667 • The share of RES in electricity consumption was about 46 % in 2006 compared to 48% in 2005 with large hydro power plants (3 plants) contributing 46,3 %, small hydro power plants (149): 0,9 % , wind: 0,7 % • Biofuels accounted for 0,22 % of the transport fuels in 2006 compared to 0,33 % in 200568 Consumption of fossil fuels in transport in 2006 was 7,2 % higher than in the previous reporting period. • Energy dependence rate amounted to 94% in Latvia in 2005. Technology-specific figures: • Hydro sources are mainly used in the big hydroelectric power plants of the public stock company Latvenergo. In 2004 the independent producers – the small hydroelectric power plants, wind and biogas electric power plants - provided only 2%1. • In 2006, 71 % of the biodiesel and 93 % of the (100 %) bioethanol produced in Latvia was exported to other EU Member States. 100 % biodiesel can currently be purchased at 14 filling stations69. • There are two bioethanol production plants, five biodiesel plants and seven rapeseed oil production plants operating in Latvia. Regarding the information given by Latvian Ministry of Agriculture over the next few years, at least six new biofuel production plants will be developed. The total annual capacity of biodiesel plants in Latvia in 2006 was around 11,000 t, while bioethanol production units had a capacity of10,000 t. 67 Central Statistical Bureau Latvia State Revenue Service's data 69 Ministry of Economic Affairs 68 192 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Share of RES in the Primary Energy in Latvia ( 2006) RES POLICY RES TARGETS Mandatory targets set by the newly proposed RES Framework Directive from 200870 • 23% share of RES on the final consumption of energy in 2020. • At least 10% share of biofuels of final consumption of energy in transport in that Member State in 2020. Indicative Target set by the RES- electricity European Directive from 200171 • 49.3% share of RES on gross electricity consumption by 2010 70 Proposal for a Directive of the European Parliament and the Council on the promotion of the use of energy from renewable sources from January 2008(the targets agreed but the directive is on legislative process) 71 Directive 2007/71/EC on the promotion of electricity produced from renewable energy sources in the internal electricity market. Currently in force, sets targets up to 2010. 193 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Indicative Target set by the European Biofuels Directive from 200372 • Biofuels consumption of 5.75% of petrol and diesel use for transport in 2010. National Commitments The Energy Development Guidelines for 2007-2016 have determined that the proportion of biofuel in transport must reach 10% in 2016 and 15% - in 2020, and the share of electricity produced in highly efficient CHP using biomass should reach 8 % by 2016. Guidelines for Energy Sector Development 2007-2016 developed by the Ministry of Economics are the main mid-term energy policy planning document. It is in particular the principal policy document driving increases in efficient use of RES. Progress towards the target Latvia is on track to meet its renewable electricity target. In 2006, the share of renewable energy resources in total electricity consumption was 46 %. This is 3,3 % less than the indicative target for the share of electricity produced from renewables in total electricity consumption set for 2010. Support to RES-Electricity Feed in tariffs Till January 1st, 2003 Latvia had a feed-in tariff which was double the average electricity price and which could be purchased for a period of 8 years after grid-connection. This tariff was very successful in promoting RES, especially in the small hydro power sector, where the production increased from 2.5 to 30 GWh in the period from 1996 till 2001. The feed in system has been amended through regulation Nr.503 on Electricity Production from RES (in force since August 2007). The new tariff-system differentiates between the specific RES and installed capacity. Itprovides particular regulations for electricity produced in CHP plants. There is a guaranteed purchase only for a fixed amount of RES-E. The purchase price is calculated as a natural gas price multiplied by factor. Electricity prices are regulated by the Public Utilities Commission (PUC) on a regular basis with multiple distinctions both for the specific generation source and also for the different steps of the electricity market chain: generation, transmission, distribution and sale. Resource Wind Wind Biomass Biomass Biogas Biogas Hydro Technology Power plants with capacity not over 0,25 MW Power plants with capacity not over 0,25 MW Power plants with electric capacity not over 4 MW Power plants with electric capacity not over 4 MW Power plants without any capacity limitations Power plants without any capacity limitations Power plants with capacity not over 5 MW Support level [€cents/ kWh] For the first 10 years from the beginning of PP operation After 10 years from the beginning of PP operation For the first 10 years from the beginning of PP operation After 10 years from the beginning of PP operation For the first 10 years from the beginning of PP operation After 10 years from the beginning of PP operation Start year 2007 Duration [years that an investor is entitled to support] 10 years 2007 10 years 2007 10 years 2007 10 years 72 Directive 2003/30/EC on the promotion of the use of biofuels or other renewable fuels for transport Currently in force, sets targets up to 2010, with indicative targets by 2005. 194 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Latvia has a tendering scheme for wind farms. However, there is a long way of procedures related to the different elements of the chain including cap in the generation power, finding the transmission and distribution grid. Support for RES heat Resource Technology Support level [Unit or %] Duration [years that an investor is entitled to support] Latvian Environmental Protection Fund Fuel switch - from coal to biomass Up to 40% Open call of proposals once a year Support to biofuels The Latvian Ministry of Economics has developed an action plan to enact the Law on biofuel (in force since 1 April 2005. Obligation Resource Quota in % (per year) Year Biodiesel Biodiesel Biodiesel Biodiesel Bioetanol Bioetanol Bioetanol Bioetanol 3.5 4.24 5 5.8 3.4 4.3 5.1 5.9 2007 2008 2009 2010 2007 2008 2009 2010 Reduction of excise duties 2006 saw the adoption of a number of amendments to existing legislation on the production of and trade in biofuels. Under the amendments to the Law on excise duties adopted in 2006, the basic rate of duty for unleaded petrol is LVL 209/1000 litres and for diesel LVL 178/1000 litres. As an incentive, provision was made for the following duty reliefs on biofuels and mineral oil/biofuel blends. 1. application of a reduced rate of excise duty depending on the biofuel content of the fuel/blend: · for unleaded petrol containing: – 5 % by volume of dehydrated ethanol obtained from agricultural raw materials: LVL 199/1000 litres; – as from 1 July 2007: 85 % by volume dehydrated ethanol obtained from agricultural raw materials: LVL 31,5/1000 litres; · for diesel fuel, blended with rapeseed oil or rapeseed biodiesel, provided that the rapeseed oil or rapeseed biodiesel represents: – from 5 up to (but not including) 30 % by volume of the total product volume: LVL 170/1000 litres; – at least 30 % by volume of the total product volume: LVL 125/1000 litres; 2. application of a zero rate of duty (LVL 0/1000 litres) to rapeseed oil sold or used for heating or fuel and to biodiesel completely derived from rapeseed oil. 195 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Fuel types with added biofuels enjoy a reduced rate of excise tax. Biofuel made entirely of rapeseed oil is exempted from excise tax) Resource Total support level (= tax exemption incl. reduction of VAT to be paid) [€cents/litre] start year Comments Biodiesel excise tax rate - 0 2004 Biodiesel is produced from rape oil Biodiesel (if biodiesel is from 5 30%) excise tax rate 220,5 €/1000 l 2004 Biodiesel is produced from rape oil Biodiesel (if biodiesel is at least 30%) excise tax rate 162,2 €/1000 l 2004 Biodiesel is produced from rape oil Excise tax rate for all types of above mentioned biodiesels is 0/1000 l if biodiesels are used as combustible fuel not as motor fuel. Direct State Aid to producers: In Latvia the support is given direct to biofuel producers and the annual supported quota (subsidy) is granted in proportion to production capacity. The financially supported quota will be granted to enterprises until 2011. Annual subsidies are allocated to producers of biofuels proportionally to capacity: Resource Support level [Unit or %] start year End year Comments Biodiesel 270€/1000 l 2007, first half a year 2007, first half a year State financial support for year 2007 ( quota 25000000 l) Biodiesel 370€/10000 l 2007, second half a year 2007, second half a year State financial support for year 2007 ( quota 25000000 l) Bioethanol 327€/1000 l 2007, first half a year 2007, first half a year State financial support for year 2007 (quota 21518987 l) Bioethanol 413€/1000 l 2007, second half a year 2007, second half a year State financial support for year 2007 (quota 21518987 l) Reduced state fee to obtain licence 196 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential As an incentive to the production and use of biofuels, the state fee for obtaining a special permit (licence) to carry out the activity of excisable goods warehouse keeper or approved trader is reduced if that person's business is with biofuels to the exclusion of petroleum products: Annex I. RES Electricity Potentials Annex II RES Bioenergy Potentials Sources European Commission Factsheets by Country http://ec.europa.eu/energy/energy_policy/facts_en.htm Member States Reports in the framework of the Directive 2001/77/EC on renewable electricity http://ec.europa.eu/energy/res/legislation/electricity_member_states_en.htm Member States Reports in the framework of the Directive 2003/30/EC on biofuels http://ec.europa.eu/energy/res/legislation/biofuels_members_states_en.htm EurObserv’er Barometer http://www.energies-renouvelables.org/observ-er/sig/eufores/sig.asp Ministry of Economy http://www.em.gov.lv/em/2nd/?lng=en&cat=3&lng=en Institute of Physical Energetic http://www.innovation.lv/fei EKODOMA www.ekodama.lv In the framework of the EU co –funded project: RES 2020: Monitoring and Evaluation of the RES Directives implementation in EU27 and policy recommendations to 2020 The sole responsibility for the content of this publication lies with the authors. It does not represent the opinion of the Community. The European Commission is not responsible for any use that may be made of the information contained therein. Drafted in March 2008. 197 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Annex I RES Electricity Potentials Description Unit 2005 2010 2015 2020 Total Wind Maximum Wind onshore Maximum Wind offshore Maximum solar PV Maximum solar thermal Total Hydro Maximum conventional hydro of which Maximum run of river Maximum Pumped Storage hydro Maximum Tide & Wave power plants Maximum geothermal conventional power plants Maximum geothermal hot dry rock power plants Maximum biomass power plants (conventional+CHP) Maximum biogas power plants (conventional+CHP) Maximum bio waste power plants (CHP) MW MW MW TWh MW MW MW MW MW TWh 27 142 400 320 80 1565 1565 1565 0 1580 1580 1580 550 430 120 0.020 0.000 1580 1580 1582 0 0 MW 0 MW 0 TWh 0.94 TWh TWh 0.51 0.03 2025 2030 800 650 150 1620 1620 1620 0 The previous table present the data that have been gathered in the framework of the RES2020 project in order to be used in the modelling. The data have been collected • Through EREC and its Members • Through a revision of previous EU funded projects and reports (GreenX, OPTRES) • Through the partners of the project The data have been discussed in the framework of the REWG of the EnR with the country experts. The tables present an estimation of the technical potential that could be utilized as an upper bound by 2010, 2015, 2020 and 2030. As technical potential we are considering: • the future installed capacity of wind turbines without taking in mind financial issues at a "reasonable" wind speed as a possible upper limit in the development of the installed capacity over time. • the future installed capacity of hydro considering technical issues only and a possible upper limit in the development of the installed capacity over time. For some technologies potential may be unlimited (e.g. photovoltaics), so we are using upper bound limits within the relevant time frames. 198 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential TABLE 1 Potentials agricultural bioenergy Description Sugar crops: sugar beet Step 1 Step 2 Step 3 Step 4 Starch crops: rye, oats, maize, wheat, barley, etc Step 1 Step 2 Step 3 Step 4 Grassy crops: switchgrass, miscanthus, sweet sorghum, etc Step 1 Step 2 Step 3 Step 4 Woody crops: willow, poplar Step 1 Step 2 Step 3 Step 4 Oil crops: sunflower, rapeseed Step 1 Step 2 Step 3 Step 4 Annex II RES Bionergy Potentials Unit LimType 2000 2001 2005 2010 2015 2020 2025 2030 Potential Cost Potential Cost Potential Cost Potential Cost [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] UP 29,0 6,7 29,0 6,7 29,0 6,7 57,0 6,72 72,0 6,81 87,0 7 96,0 7,31 106,0 7,8 Potential Cost Potential Cost Potential Cost Potential Cost [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] UP 2,0 7,9 2,0 7,9 2,0 7,9 4,0 7,56 5,0 7,31 6,0 7,11 7,0 6,98 7,0 6,91 Potential Cost Potential Cost Potential Cost Potential Cost [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] UP 44,0 5,3 44,0 5,3 44,0 5,3 103 4,9 141 4,6 180 4,4 209 4,3 239 4,3 Potential Cost Potential Cost Potential Cost Potential Cost [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] UP 51,0 2,8 51,0 2,8 51,0 2,8 120,0 2,6 166,0 2,48 213,0 2,42 248,0 2,42 284,0 2,48 Potential Cost Potential Cost Potential Cost Potential Cost [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] UP 11,0 5,8 11,0 5,8 11,0 5,8 21,0 5,6 27,0 5,5 33,0 5,4 36,0 5,3 39,0 5,2 Source UP UP UP UP UP UP UP UP UP UP UP UP UP UP UP 199 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential TABLE 2 Potentials bioenergy from wastes Description Agricultural waste Unit LimType Potential [PJ/a] UP Cost [€/GJ] Potential Cost [PJ/a] [€/GJ] UP Potential Cost [PJ/a] [€/GJ] UP Potential Cost [PJ/a] [€/GJ] UP Potential Cost [PJ/a] [€/GJ] UP Potential Cost [PJ/a] [€/GJ] UP Potential Cost [PJ/a] [€/GJ] UP Potential Cost Potential Cost Potential Cost [PJ/a] [€/GJ] [PJ/a] [€/GJ] [PJ/a] [€/GJ] UP Potential Cost [PJ/a] [€/GJ] UP 2000 2001 2005 2010 2015 2020 2025 2030 4 4 4 2 2 2 Source EEA Report 7 2006 5.2 according to Vigants, E. (2006): Experiences and Challenges of JI Biomass Projects in Latvia. CTI Capacity Building Seminar, Leipzig, Germany, 21-25 October 2006. http://www.ecologic-events.de/cti/documents/8_vigants.pdf EEA Report 7 2006 20.1 according to Vigants, E. (2006): Experiences and Challenges of JI Biomass Projects in Latvia. CTI Capacity Building Seminar, Leipzig, Germany, 21-25 October 2006. EEA Report 7 2006 2 2 2 EEA Report 7 2006 2 2 2 EEA Report 7 2006 Forestry residues Wood processing residues Municipal solid waste Wet manures Black liquor Sewage sludge Other waste wood households packageing demolition UP UP Dry manures 200 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential 20. MALTA 201 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Malta is totally dependent upon imported fossil fuels for its energy needs, currently over 63% of the primary energy is used for power generation. Renewable Energy Sources (RES) could play a key role for the Island economy. Due to the lack of support mechanisms little development of RES exists so far. However, the potential for solar and wind is substantial. The Maltese government is currently creating a framework for support measures. However it has set up in the meantime national indicative targets for RES-e lower than the ones agreed to in its Accession Treaty to the EU (between 0.31% and 1.31%, instead of 5%). Solar thermal applications (for hot water requirements) are RES with highest penetration rate in Malta. KEY FIGURES • The share of RES in total primary energy consumption was of 0.22% in 2006. • The share of RES in the gross final energy consumption was 0 % in 2005. • The share of RES in the gross electricity production was 0% in 2006. • The share of biofuels in the transport sector in 2006 was 0.52%. • Malta energy dependence on imports amounts to 100% in 2005. RES POLICY RES TARGETS Mandatory targets set by the newly proposed RES Framework Directive from 200873 • 10% share of RES on the final consumption of energy in 2020. • At least 10% share of biofuels of final consumption of energy in transport in that Member State in 2020. Indicative Target set by the RES- electricity European Directive from 200174 • 5 % Share of RES on gross electricity consumption by 2010. However, at the national level, it has been decided to aim for 0.31%, excluding large wind farms and waste combustion plants, or for 1.31% in the event that the plans are implemented. Indicative Target set by the European Biofuels Directive from 200375 • Biofuels consumption of 5.75% of petrol and diesel use for transport in 2010. Progress towards the Targets • The total RES-e production in 2006 was 0.01 GWh and, therefore, the RES-e share of gross electricity consumption was effectively zero percent. • Malta has exceeded the target for biofuel production it had set for 2005 (0.30%); the actual share of biofuel in 2006 was 0.58%. POLICY INSTRUMENTS Support for RES electricity In order to promote the uptake of RES, the Maltese government is currently creating a framework for support measures. However it has set has set in the meantime national indicative targets for RES-e lower than the ones agreed to in its Accession Treaty (between 0.31% and 1.31%, instead of 5%). 73 Proposal for a Directive of the European Parliament and the Council on the promotion of the use of energy from renewable sources from January 2008(the targets agreed but the directive is on legislative process) 74 Directive 2007/71/EC on the promotion of electricity produced from renewable energy sources in the internal electricity market. Currently in force, sets targets up to 2010. 75 Directive 2003/30/EC on the promotion of the use of biofuels or other renewable fuels for transport Currently in force, sets targets up to 2010, with indicative targets by 2005. 202 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Capital grants • • Capital grants on PVs and microwind for domestic use. Net metering with a spill tariff - € 0.07 / kWh. Others • Government leading by example (PV installations on public buildings and micro-wind installations). • Government has announced intention to allocate further funds to support RES-E from such installations. Support for RES Heating and Cooling Capital grants Capital grants on solar water heaters for domestic use (25% grant on cost & capped at €233). Support for biofuels Quota Resource Biofuels Biofuels Quota in % (per year) 0.3% 5.75% Year 2005 2010 Comments Guideline Compulsory There is Exemption of excise duty for biofuels . 203 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Annex I. RES electricity Potentials Annex II RES Bioenergy Potentials Sources: European Commission Factsheets by Country http://ec.europa.eu/energy/energy_policy/facts_en.htm Member States Reports in the framework of the Directive 2001/77/EC on renewable electricity http://ec.europa.eu/energy/res/legislation/electricity_member_states_en.htm Member States Reports in the framework of the Directive 2003/30/EC on biofuels http://ec.europa.eu/energy/res/legislation/biofuels_members_states_en.htm Malta Resources Authority http://www.mra.org.mt/ EurObserv’er Barometer http://www.energies-renouvelables.org/observ-er/sig/eufores/sig.asp In the framework of the EU co –funded project: RES 2020: Monitoring and Evaluation of the RES Directives implementation in EU27 and policy recommendations to 2020 The sole responsibility for the content of this publication lies with the authors. It does not represent the opinion of the Community. The European Commission is not responsible for any use that may be made of the information contained therein. Drafted in March 2008 204 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Annex I. RES electricity Potentials Description Unit 2010 2015 2020 Total Wind Maximum Wind onshore Maximum Wind offshore Maximum solar PV Maximum solar thermal Total Hydro Maximum conventional hydro of which Maximum run of river Maximum Pumped Storage hydro Maximum Tide & Wave power plants Maximum geothermal conventional power plants Maximum geothermal hot dry rock power plants Maximum biomass power plants (conventional+CHP) Maximum biogas power plants (conventional+CHP) Maximum biowaste power plants (CHP) MW MW MW TWh MW MW MW MW MW TWh 0 100 200 0 0.010 0.000 0 0 2025 2030 200 0 0 0.06 MW 0 MW 0 TWh 0.03 TWh 0.05 TWh 0.03 The previous table present the data that have been gathered in the framework of the RES2020 project in order to be used in the modelling. The data have been collected • Through EREC and its Members • Through a revision of previous EU funded projects and reports (GreenX, OPTRES) • Through the partners of the project The data have been discussed in the framework of the REWG of the EnR with the country experts. The tables present an estimation of the technical potential that could be utilized as an upper bound by 2010, 2015, 2020 and 2030. As technical potential we are considering: • the future installed capacity of wind turbines without taking in mind financial issues at a "reasonable" wind speed as a possible upper limit in the development of the installed capacity over time. • the future installed capacity of hydro considering technical issues only and a possible upper limit in the development of the installed capacity over time. For some technologies potential may be unlimited (e.g. photovoltaics), so we are using upper bound limits within the relevant time frames. 205 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential TABLE 1 Potentials agricultural bioenergy Description Sugar crops: sugar beet Step 1 Annex II RES Bionergy Potentials Step 2 Step 3 Step 4 Starch crops: rye, oats, maize, wheat, barley, etc Step 1 Step 2 Step 3 Step 4 Grassy crops: switchgrass, miscanthus, sweet sorghum, etc Step 1 Step 2 Step 3 Step 4 Woody crops: willow, poplar Step 1 Step 2 Step 3 Step 4 Oil crops: sunflower, rapeseed Step 1 Step 2 Step 3 Step 4 Unit LimType Potential Cost Potential Cost Potential Cost Potential Cost [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] UP Potential Cost Potential Cost Potential Cost Potential Cost [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] UP Potential Cost Potential Cost Potential Cost Potential Cost [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] UP Potential Cost Potential Cost Potential Cost Potential Cost [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] UP Potential Cost Potential Cost Potential Cost Potential Cost [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] UP 2000 2001 2005 2010 2015 2020 2025 2030 Source UP UP UP UP UP UP UP UP UP UP UP UP UP UP UP 206 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential TABLE 2 Potentials bioenergy from wastes Description Agricultural waste Unit LimType Potential Cost [PJ/a] [€/GJ] UP Potential Cost [PJ/a] [€/GJ] UP Potential Cost [PJ/a] [€/GJ] UP Potential Cost [PJ/a] [€/GJ] UP Potential Cost [PJ/a] [€/GJ] UP Potential Cost [PJ/a] [€/GJ] UP Potential Cost [PJ/a] [€/GJ] UP Potential Cost Potential Cost Potential Cost [PJ/a] [€/GJ] [PJ/a] [€/GJ] [PJ/a] [€/GJ] UP Potential Cost [PJ/a] [€/GJ] UP 2000 2001 2005 2010 2015 2020 2025 2030 Source Forestry residues Wood processing residues Municipal solid waste Wet manures Black liquor Sewage sludge Other waste wood households packageing demolition UP UP Dry manures 207 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential 21. NETHERLANDS 208 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential The Netherlands is a significant producer (and exporter) of natural gas and depends on energy imports for oil and hard coal. Electricity is generated mainly from gas and hard coal. The use of renewable energy sources for power generation has been increasing. The Netherlands have a significant installed wind power capacity. KEY FIGURES • • • • • The share of RES in total primary energy consumption was of 2.31% in 200676. The share of RES in the gross final energy consumption was 2.4% in 2005. The share of RES in the gross electricity consumption was 5.67% in 200677 The share of all biofuels in the transport sector in 2006 was 0.3% (calculated on the basis of the energy content of the total amount of petrol and diesel placed on the Dutch market in 2006) Dependence on external energy supplies is in 2005 about 38.9%. RES POLICY RES TARGETS Mandatory targets set by the newly proposed RES Framework Directive from 200878 • 14% share of RES on the final consumption of energy in 2020. • At least 10% share of biofuels of final consumption of energy in transport in that Member State in 2020. Indicative Target set by the RES- electricity European Directive from 200179 • 9 % share of RES on gross electricity consumption by 2010. Indicative Target set by the European Biofuels Directive from 200380 • Biofuels consumption of 5.75% of petrol and diesel use for transport in 2010. National commitments In September 2007, Dutch environment minister Cramer presented the working programme ‘New energy for the climate’. Energy efficiency should increase to a yearly improvement of 2 to 2.3 % after 2011, while the share of renewable energy in 2020 should grow to 20% in 2020. Support for electricity Feed-in tariffs: Subsidies Duurzame Energie (SDE) In July 2003, the a feed in premium has been introduced –the so called MEP premium- (premium on top of the market price for power- fixed for ten years). Under the MEP scheme, Dutch producers of renewable electricity feeding into the public grid receive a fixed fee per kWh for a guaranteed period of ten years. 76 EurObserv’er Data EurObserv’er Data 78 Proposal for a Directive of the European Parliament and the Council on the promotion of the use of energy from renewable sources from January 2008(the targets agreed but the directive is on legislative process) 77 79 Directive 2007/71/EC on the promotion of electricity produced from renewable energy sources in the internal electricity market. Currently in force, sets targets up to 2010. 80 Directive 2003/30/EC on the promotion of the use of biofuels or other renewable fuels for transport Currently in force, sets targets up to 2010, with indicative targets by 2005. 209 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential The ‘MEP-premium’ was abolished in August 2006 when the previous Minister for Economic Affairs judged that the EU-approved target for the Netherlands of 9% renewable power consumed by 2010 would be met. Since then, investments in new RE installations have fallen down to practically zero. In October 2007, the Dutch government published a new regulation for a feed-in premium for renewable energy. The new support mechanism, called SDE (‘Stimuleringsregeling duurzame energieproductie’) resembles the old MEP premium system. Producers will get a premium covering extra costs on top of the wholesale energy price for a number of years. The premium will be provided to the generator of green power for maximum ten years. The level of the premium and the duration of support will vary with each technology. However, the premiums will also vary with the wholesale price of electricity. For the new SDE regulation (Subsidies Duurzame Energie), a fund of €300 to €350 million per year will be available by 2011. In contrast to the old scheme, the new one comprises an upper limit. In the first year, the premiums will be distributed on a ‘first come, first go’ basis. Biomass and wind energy, that were already eligible for the old MEP regulation, will be eligible for SDE too, except for large co-firing of biomass in power plants. A new entry in the SDE is photovoltaics. Offshore wind has not yet been included, because no new permits have been issued. Because of sustainability concerns, liquid biomass fuels are excluded in the first year. Bioenergy producers will possibly be required to report on the sustainability of their biomass. The SDE will be evaluated in 2010. In January 2008, the Dutch government published the premiums for different kinds of renewable power and gas: Category Base Expected cooretion (base don power and gas price) Expected premium Capacity 2008 (MW) Indicative: capacity 2008-2011 (MW) 1 Wind onshore 2 Power from sewage sludge, landfill gas 3 Green gas from sewage sludge, landfill gas 4 High efficient waste incineration (>22%) € 0.088 per kWh € 0.058 per kWh €0.060 per kWh €0.067 per kWh €0.028 per kWh €0 per kWh 500 2070 Expected structural expenses per year for 2008 dispositions (x € 1 mln.) 31.2 8 30 0 € 0.277 per Nm3 gas €0.21 per Nm3 gas €0.07 per Nm3 gas 5 10 0.6 €0 per kWh 70 160 0 €0.053 per kWh 40 160 17.0 5 Solid biomass burning; digester of organic waste, (co) digesters of manure and Basisbedrag €0.067 per loopt per kWh procentpunt op naar rato van het energetisch rendement € 0.12 per €0.067 per kWh kWh 210 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Expected cooretion (base don power and gas price) Expected premium Capacity 2008 (MW) Indicative: capacity 2008-2011 (MW) 6 Small scale € 0.564 per € 0.234 per PV (0.6 kWp kWh kWh – 3.0 kWp) DURATION OF THE SUPPORT: 10 Years € 0.33 per kWh 10 80 Category Base Expected structural expenses per year for 2008 dispositions (x € 1 mln.) 2.8 Support for heat With a view to improving the basic economic conditions for the production of electricity and heat from biomass, resources are being deployed within the general body of instruments for sustainable (renewable) energy. These instruments consist of: => a tax bonus on investment in renewable energy and energy saving (EIA); => incentive programmes for research and development and the application of renewable energy and energy saving. Private house owners can receive a subsidy on the purchase of thermal heating systems or heat pumps.. Support for biofuels Obligation As from 2007 suppliers of petrol and diesel for road transport purposes are required to ensure that biofuels account for a certain percentage of their sales in the Netherlands. For 2007 the proportion is 2%, calculated on the basis of energy content. In 2008 and 2009, the percentage will be gradually increased to 3.25% and 4.5% respectively and for 2010 it is 5.75%, as laid down in the European Directive. Tax incentives In 2006 a start was made on biofuel policy by providing tax incentives, in the form of a reduction in excise duty, to encourage the blending of a 2% biofuel component (bio-ethanol, bio-ETBE or biodiesel). In the case of the displaced quantity of unleaded light oil (petrol) to which at least 2% of ethyl alcohol had been added, the reduction in excise duty amounted to €10.10 per 1000 litres. If less ethyl alcohol was added the reduction was lowered proportionately. In the case of the displaced quantity of gas oil (diesel) to which at least 2% of biodiesel had been added, the reduction in excise duty amounted to €6.10 per 1000 litres. If less biodiesel was added the reduction was lowered proportionately. Project subsidies At the end of 2006, the Dutch cabinet allocated a total of 60 million euros of subsidies for projects relating to innovative biofuels which can bring about a significant reduction in C02 emissions. This scheme will run until the end of 2010. Companies intending to invest in projects aimed at improving the production of innovative biofuels for transport purposes and which incur additional costs in order to reduce C02 emissions may be eligible for a subsidy. 211 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Support to all RES Tax incentive The Energy Investment Deduction scheme (EIA) is a scheme providing tax incentives for investment in renewable energy projects. CO2 Reduction Plan Under this scheme, incentives are provided for projects that may reduce CO2 emission. Renewable energy projects occupy a prominent place under this scheme. Annex I RES electricity Potentials Annex II RES Bioenergy Potentials Sources European Commission Factsheets by Country http://ec.europa.eu/energy/energy_policy/facts_en.htm Member States Reports in the framework of the Directive 2001/77/EC on renewable electricity http://ec.europa.eu/energy/res/legislation/electricity_member_states_en.htm Member States Reports in the framework of the Directive 2003/30/EC on biofuels http://ec.europa.eu/energy/res/legislation/biofuels_members_states_en.htm Ministry of Economic Affairs www.minez.nl ECN www.ecn.nl EurObserv’er Barometer http://www.energies-renouvelables.org/observ-er/sig/eufores/sig.asp In the framework of the EU co –funded project: RES 2020: Monitoring and Evaluation of the RES Directives implementation in EU27 and policy recommendations to 2020 The sole responsibility for the content of this publication lies with the authors. It does not represent the opinion of the Community. The European Commission is not responsible for any use that may be made of the information contained therein. Drafted in March 2008. 212 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Annex I RES Electricity Potentials Description Unit 2005 2010 2015 2020 Wind Total Maximum Wind onshore Maximum Wind offshore Maximum solar PV Maximum solar thermal Total Hydro Maximum conventional hydro of which Maximum run of river Maximum Pumped Storage hydro Maximum Tide & Wave power plants Maximum geothermal conventional power plants Maximum geothermal hot dry rock power plants Maximum biomass power plants (conventional+CHP) Maximum biogas power plants (conventional+CHP) Maximum biowaste power plants (CHP) MW MW MW TWh MW MW MW MW MW 1124 0 3400 2700 700 6700 3700 3000 37 37 37 37 37 37 10100 4100 6000 1.2 0 37 37 37 TWh 1.03 MW 0 MW 0 TWh 3.91 TWh 4.32 TWh 2.43 2025 2030 10200 4200 6000 37 37 37 The previous table present the data that have been gathered in the framework of the RES2020 project in order to be used in the modelling. The data have been collected • Through EREC and its Members • Through a revision of previous EU funded projects and reports (GreenX, OPTRES) • Through the partners of the project The data have been discussed in the framework of the REWG of the EnR with the country experts. The tables present an estimation of the technical potential that could be utilized as an upper bound by 2010, 2015, 2020 and 2030. As technical potential we are considering: • the future installed capacity of wind turbines without taking in mind financial issues at a "reasonable" wind speed as a possible upper limit in the development of the installed capacity over time. • the future installed capacity of hydro considering technical issues only and a possible upper limit in the development of the installed capacity over time. For some technologies potential may be unlimited (e.g. photovoltaics), so we are using upper bound limits within the relevant time frames. 213 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential TABLE 1 Potentials agricultural bioenergy Description Sugar crops: sugar beet Step 1 Annex II RES Bionergy Potentials Step 2 Step 3 Step 4 Starch crops: rye, oats, maize, wheat, barley, etc Step 1 Step 2 Step 3 Step 4 Grassy crops: switchgrass, miscanthus, sweet sorghum, etc Step 1 Step 2 Step 3 Step 4 Woody crops: willow, poplar Step 1 Step 2 Step 3 Step 4 Oil crops: sunflower, rapeseed Step 1 Step 2 Step 3 Step 4 Unit LimType 2000 2001 2005 2010 2015 2020 2025 2030 Potential Cost Potential Cost Potential Cost Potential Cost [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] UP 1,0 10,0 1,0 10,0 1,0 10,0 4,0 9,67 6,0 9,34 9,0 9,06 13,0 8,81 17,0 8,58 Potential Cost Potential Cost Potential Cost Potential Cost [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] UP 1,0 9,8 1,0 9,8 1,0 9,8 2,0 9,25 3,0 8,79 4,0 8,39 6,0 8,06 8,0 7,77 Potential Cost Potential Cost Potential Cost Potential Cost [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] UP 1,0 11,0 1,0 11,0 1,0 11,0 5 10,1 9 10,6 14 10,4 28 12,1 42 12,2 Potential Cost Potential Cost Potential Cost Potential Cost [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] UP 1,0 8,5 1,0 8,5 1,0 8,5 3,0 7,77 7,0 8,02 10,0 7,81 20,0 8,84 30,0 8,9 Potential Cost Potential Cost Potential Cost Potential Cost [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] UP 0,0 12,2 0,0 12,2 0,0 12,2 1,0 11,8 2,0 11,4 3,0 11,1 5,0 10,9 7,0 10,6 Source UP UP UP UP UP UP UP UP UP UP UP UP UP UP UP 214 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential TABLE 2 Potentials bioenergy from wastes Description Agricultural waste Unit LimType Potential Cost [PJ/a] [€/GJ] UP Potential Cost [PJ/a] [€/GJ] UP Potential Cost [PJ/a] [€/GJ] Potential Cost 2000 2001 2005 2010 2015 2020 2025 2030 Source 6 6 6 EEA Report 7 2006 UP 4 4 4 EEA Report 7 2006 [PJ/a] [€/GJ] UP 15 16 17 EEA Report 7 2006 Potential Cost [PJ/a] [€/GJ] UP 13 14 15 EEA Report 7 2006 Potential Cost [PJ/a] [€/GJ] UP Potential Cost [PJ/a] [€/GJ] UP 7 8 8 EEA Report 7 2006 Potential Cost Potential Cost Potential Cost [PJ/a] [€/GJ] [PJ/a] [€/GJ] [PJ/a] [€/GJ] UP UP 7 8 8 EEA Report 7 2006 UP 6 6 6 EEA Report 7 2006 Potential Cost [PJ/a] [€/GJ] UP 2 2 2 EEA Report 7 2006 Forestry residues 32,1 Wood processing residues Municipal solid waste Wet manures Black liquor Sewage sludge Other waste wood households packageing demolition Dry manures 215 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential 22. NORWAY 216 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Annex I RES Electricity Potentials Description Unit 2005 2010 2015 2020 Total Wind Maximum Wind onshore Maximum Wind offshore Maximum solar PV Maximum solar thermal Total Hydro Maximum conventional hydro of which Maximum run of river Maximum Pumped Storage hydro Maximum Wave power plants Maximum tide power plants Maximum geothermal conventional power plants Maximum geothermal hot dry rock power plants Maximum biomass power plants (conventional+CHP) Maximum biogas power plants (conventional+CHP) Maximum municipal waste power plants (CHP) Maximum industrial waste power plants (CHP) MW MW MW TWh MW MW MW MW MW TWh GW 274 1458 4070 6660 11970 650 1890 7300 2030 27701 26158 29075 27806 29471 28203 31651 29392 1269.0 1269 1269 21 2260 1 MW 0 MW 0 TWh 2025 0.5 9.0 TWh 2.1 TWh 0.5 TWh The previous table present the data that have been gathered in the framework of the RES2020 project in order to be used in the modelling. The data have been collected • Through EREC and its Members • Through a revision of previous EU funded projects and reports (GreenX, OPTRES) • Through the partners of the project The data have been discussed in the framework of the REWG of the EnR with the country experts. The tables present an estimation of the technical potential that could be utilized as an upper bound by 2010, 2015, 2020 and 2030. As technical potential we are considering: • the future installed capacity of wind turbines without taking in mind financial issues at a "reasonable" wind speed as a possible upper limit in the development of the installed capacity over time. • the future installed capacity of hydro considering technical issues only and a possible upper limit in the development of the installed capacity over time. For some technologies potential may be unlimited (e.g. photovoltaics), so we are using upper bound limits within the relevant time frames. 217 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential TABLE 1 Potentials agricultural bioenergy Description Sugar crops: sugar beet Step 1 Step 2 Step 3 Step 4 Starch crops: rye, oats, maize, wheat, barley, etc Step 1 Step 2 Step 3 Step 4 Grassy crops: switchgrass, miscanthus, sweet sorghum, etc Step 1 Step 2 Step 3 Step 4 Woody crops: willow, poplar Step 1 Step 2 Step 3 Step 4 Oil crops: sunflower, rapeseed Step 1 Step 2 Step 3 Step 4 Annex II RES Bionergy Potentials Unit LimType 2000 2001 2005 2010 2015 2020 2025 2030 Potential Cost Potential Cost Potential Cost Potential Cost [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] UP 0,0 10,5 0,0 10,5 0,0 10,5 1,0 10,07 1,0 9,75 1,0 9,46 1,0 9,2 1,0 8,97 Potential Cost Potential Cost Potential Cost Potential Cost [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] UP 0,0 42,7 0,0 42,7 0,0 42,7 1,0 39,2 1,0 37,1 2,0 35,35 2,0 33,77 2,0 32,43 Potential Cost Potential Cost Potential Cost Potential Cost [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] UP 1,0 9,4 1,0 9,4 1,0 9,4 3 8,7 4 8,1 5 7,6 6 7,2 6 6,9 Potential Cost Potential Cost Potential Cost Potential Cost [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] UP 1,0 3,7 1,0 3,7 1,0 3,7 2,0 3,41 3,0 3,21 4,0 3,04 5,0 2,91 5,0 2,8 Potential Cost Potential Cost Potential Cost Potential Cost [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] UP 0,0 11,4 0,0 11,4 0,0 11,4 1,0 11,0 1,0 10,7 1,0 10,4 1,0 10,2 2,0 9,9 Source UP UP UP UP UP UP UP UP UP UP UP UP UP UP UP 218 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential TABLE 2 Potentials bioenergy from wastes Description Agricultural waste Unit Potential Cost [PJ/a] [€/GJ] LimType 2000 2001 2005 UP 2010 95 2015 2020 101 2025 2030 108 Source PFI (2007): From Biomass to Biofuels - A Roadmap for Future Solutions in Norway. Paper and Fibre Research Institute (PFI), Norway, 2007. Forestry residues Potential [PJ/a] Cost [€/GJ] UP 58 63 68 72 PFI (2007): From Biomass to Biofuels - A Roadmap for Future Solutions in Norway. Paper and Fibre Research Institute (PFI), Norway, 2007. Øyaas, K. (2006): Renewable Liquid Biofuel from Scandinavian Wood Materials – a Vision or a Future Reality? E-World, Essen, Germany, 14-2-2006. Wood processing residues Potential Cost [PJ/a] [€/GJ] UP Potential Cost [PJ/a] [€/GJ] UP 54 PFI (2007): From Biomass to Biofuels - A Roadmap for Future Solutions in Norway. Paper and Fibre Research Institute (PFI), Norway, 2007. 7 PFI (2007): From Biomass to Biofuels - A Roadmap for Future Solutions in Norway. Paper and Fibre Research Institute (PFI), Norway, 2007. Municipal solid waste Wet manures Potential Cost [PJ/a] [€/GJ] UP Potential Cost [PJ/a] [€/GJ] UP Potential Cost [PJ/a] [€/GJ] UP Potential Cost Potential Cost Potential Cost [PJ/a] [€/GJ] [PJ/a] [€/GJ] [PJ/a] [€/GJ] UP Potential Cost [PJ/a] [€/GJ] UP 6 7 Black liquor Sewage sludge Other waste wood households packageing demolition UP UP Dry manures 219 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential 23. POLAND 220 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Being the largest hard coal producer in the EU, Poland’s energy import dependency is among the lowest in the EU. Hard coal plays a significant role in the Polish energy mix, with very large shares in electricity generation and also in primary energy supply, resulting in high emissions and CO2 intensity. Poland exports a significant share of its coal production. The use of other energy sources (oil, gas and renewable energy) has also been increasing. There are public concerns over security of supply, with Russia being by far the major supplier of gas and oil for Poland. Hydropower is the dominant renewable energy source in Poland. The installed capacity at hydropower plants is growing steadily, particularly at small-scale plants. Poland has a significant potential especially in term of biomass due to – among other things – its high share of good arable land per capita. KEY FIGURES • The share of RES in total primary energy consumption was of 4.86% in 2006. • The share of RES in the gross final energy consumption was 7.2% in 2005. • The share of RES in the gross electricity consumption was 2.99% in 2006 • The share of biofuels in transport fuels in 2006 was 0.92% (estimates) • Poland’s dependence on external energy supplies is of about 18.4% in 2005. Technology specific figures • • • • Installed capacity for RES-Electricity in 2006 amounted for biomass to 252,8 MW, for biogas to 36,8 MW, for wind to 176 MW and for hydro to 1082,8 MW, Electricity generation from RES amounted for biomass to 503 846 MWh, Biogas 116 692 MWh, Wind 256 345 MWh, Hydro 2 028 984 MWh. In 2006, approximately 106.8 million litres of bioethanol were placed on the market, while petrol consumption increased by over 170 million litres from the previous year’s levels. In 2006, ester production was approximately 103.4 million litres. Since a large part of the output was sold abroad, Poland consumed only 51.0 million litres, while diesel consumption rose by approximately 1 161 million litres from the previous year’s level. Structure of primary energy use in 2005 Oil 21% RES 5% Gas 13% Lignite 11% Hard coal 50% Primary energy use – 3932 PJ, within 187 PJ (4,76%) from RES 221 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Structure of renewable energy sources in 2005 Biomass - electricity 6,5% Biomass - district heating 2,9% Biomass - local heat 83,8% Others 6,8% Landfill biogas 0,3% Waste water treatment plant biogas 0,8% Animal origin biogas 0,1% Hydro 4,3% Wind 0,3% Ethanol 0,7% Biodiesel 0,3% Source: IEO EC BREC RES POLICY RES TARGETS Mandatory targets set by the newly proposed RES Framework Directive from 200881 • 15 % share of RES on the final consumption of energy in 2020. • At least 10% share of biofuels of final consumption of energy in transport in that Member State in 2020. Indicative Target set by the RES- electricity European Directive from 200182 (Accession Treaty) • 7.5% Share of RES on gross electricity consumption by 2010. Indicative Target set by the European Biofuels Directive from 200383 • Biofuels consumption of 5.75% of petrol and diesel use for transport in 2010. National Commitments Targets for renewable energy were set in the Development Strategy of Renewable Energy Sector (endorsed by the Parliament in 2001) and amount to 7.5 % RES in the primary energy balance by 2010 and 14% by 2020. The target of 7.5% RES-E by 2010 set at national level is actually smaller than the target set by the EU, as it refers to electricity turnover in distribution companies and not to gross electricity 81 Proposal for a Directive of the European Parliament and the Council on the promotion of the use of energy from renewable sources from January 2008(the targets agreed but the directive is on legislative process) 82 Directive 2007/71/EC on the promotion of electricity produced from renewable energy sources in the internal electricity market. Currently in force, sets targets up to 2010. 83 Directive 2003/30/EC on the promotion of the use of biofuels or other renewable fuels for transport Currently in force, sets targets up to 2010, with indicative targets by 2005. 222 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential consumption as in the directive. The difference is approximately 38 TWh, which means that the national target is lower by 30%. Support for Electricity The revised Polish Energy Law Act, which was adopted on 4 March 2005, introduced a range of rules which strengthen the mechanisms for promoting the development of renewable energy. Purchase obligation There is an obligation for enterprises which sell electricity to end-users to purchase electricity produced from renewable sources. Green Certificates The principal legislative instrument is the Energy Act of 10 April 1997. The support mechanism consists of the obligation imposed on energy companies selling electricity to end users to obtain and present for redemption to the Energy Regulator a specified number of certificates of origin of energy generated from, renewable energy sources, or to pay a substitution charge. These certificates can be traded on the Warsaw Commodity Exchange as from 1 October 2005. Quota This is a requirement on energy suppliers to provide a minimum share of RES-E (4.8% in 2007 and 7.5% in 2010). Failure to comply with this legislation leads – in theory – to the enforcement of a penalty. In 2005, these were not sufficiently enforced. There is lack of legal and financial consequences for distribution companies, which don’t fulfill their obligation, as the level of penalty has not been stipulated. In such cases the Energy Regulatory Authority (URE) has to sue those companies, and in many cases penalties can be avoided. In January 2007, changes in the Energy Law Act were made resulting in requirement of a licence RES energy generation regardless of the power installed (previously required only > 50 MW). Also changes in green energy purchase obligation were introduced resulting in higher % rates. For 2010 - 2014 the required RES share is 10,4% (previously only 9%). Excise Tax exemption An excise tax exemption on RES-E was introduced in 2002. It amounts to 0.02 PLN/kWh. (Exchange rate in April 2008: 1 Polish Zloty (PLN) = 0.28913 Euro (EUR) ) Support to Biofuels Exemption of excise duty Exemptions from excise duty for fuels containing biocomponents, which applied since 2004 were reduced following the entry into force in January 2007 of amendments to the Regulation on Exemptions from Excise Duty. Under the provisions in force since 1 January 2007 the following are exempt from excise duty: 1) biocomponents intended for use in liquid fuels and liquid biofuels, meeting the relevant quality requirements; 2) The following fuels, meeting the relevant quality requirements and containing over 2 % of biocomponents: a) petrol – 1.50 PLN on each litre of biocomponents added to it, b) diesel – 1.00 PLN on each litre of biocomponents added to it; 223 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential 3) biocomponents used as direct fuel and meeting the quality requirements specified in separate regulations – 1,680 PLN/1000 l. Preferential excise duty treatment will increase under the Act of 11 May 2007, amending the Excise Duty Act, which includes amongst its provisions the following reductions of excise duty rates for the products listed below: 1) For products made by blending petrol with biocomponents and containing over 2% of biocomponents, excise duty charged on the petrol (1,565 PLN/1000 l) shall be reduced by 1.565 PLN for each litre of biocomponents added to the petrol, subject to the minimum excise duty payable being 10.00 PLN/1000 l. 2) For products made by blending diesel with biocomponents and containing over 2% of biocomponents, excise duty charged on the diesel (1,048 PLN/1000 l) shall be reduced by 1.048 PLN for each litre of biocomponents added to the diesel, subject to the minimum excise duty payable being 10.00 PLN/1000 l 3) For biocomponents used as direct fuel in internal combustion engines – 10 PLN/1000 l. In 2006 exemptions from excise duty arising out of the use of biocomponents in fuels amounted to 261.99 million PLN. Transposing the 2003 Biofuels Directive into Polish law In August 2006 the Sejm of the Republic of Poland adopted two Acts: the Biocomponents and Liquid Biofuels Act and the Fuel Quality Monitoring and Control Act. The two Acts ensured full transposition of Directive 2003/30/EC into Polish law. Their most important provisions include: - Enabling farmers to produce liquid biofuels for their own use. in addition, the provision of security for excise duty will no longer be required in the case of pure vegetable oils and esters. The Fuel Quality Monitoring and Control Act requires liquid biofuels produced by farmers for their own use to meet only minimum quality requirements, essential for reasons of environmental protection. The annual own use production quota is 100 litres per hectare of arable land owned by the farmer. - The introduction as from 1 January 2008 of a requirement to ensure specified biocomponent participation in the transport fuels market. This requirement has been imposed on businesses producing liquid fuels or liquid biofuels and purchasing them intra-Community, for subsequent sale or for their own use. Such businesses are defined as entities implementing the national indicative target. - The introduction of the concept of “captive fleet” into Polish law, defined as a group of at least 10 vehicles, agricultural tractors or off-road machines, or a group of locomotives or ships fitted with engines able to burn liquid biofuels, owned or used by individuals engaged in business, legal entities or organisations without a legal personality. The introduction of this concept has made it possible to use a wide range of liquid biofuels with high biocomponent content, other than those granted marketing authorisation, in vehicles and machines forming part of “captive fleets”. Draft Amendments to the Corporation Tax Act The Sejm is currently preparing a Draft Act amending the Corporation Tax Act, which introduces corporation tax relief for biocomponent manufacturers. The proposed system is intended to ensure stability of the tax relief and exemption system throughout the Programme period. Other financial support instruments offered by the programme include: removing biocomponents used as direct fuel from the list of products subject to fuel duty, a system of subsidies for farmers cultivating energy crops for use in biocomponent manufacture, investment support out of EU funds and a reduction of air pollution charges for entities using liquid biofuels in their vehicles. 224 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Support to RES- Heat There is no targeted support for RES-Heat in Poland. Support for all RES Grants and loans In Poland there are no RES targeted development funds. Investors can apply for investment grant and/or for preferential loan to: the National Fund of Environmental Protection, the respective county and municipal funds; Environmental Protection Bank; ECOFUND and others. Grants and preferential credits for investments in RES may be obtained from the Polish National Fund for Environmental Protection and Water Management, as well as from the corresponding regional funds. Pursuant to the Energy Law Act of 27 April 2001, these funds are, in particular, intended to support activities promoting the use of local RES, as well as to assist the introduction of more environmentally friendly energy carriers. - the National Environmental Protection and Water Management Fund and provincial, district and commune environmental protection and water management funds. These funds are accumulated out of environmental charges and fines, including substitution charges and fines associated with the Green Certificates system. Under the terms of the Environmental Protection Act of 27 April 2001, these funds are intended to support the use of renewable energy sources. - The EcoFund Foundation: its funds are generated by debt-for-environment swap activities. EU Structural and Cohesion Funds Additional support for renewable energy is provided by the implementation of the National Development Plan 2004–2006, under which public resources from the structural funds and the Cohesion Fund have been committed. These measures will be followed up by implementing the Infrastructure and Environment operative programme in the National Strategic Reference Framework 2007–2013, a document which will define the priorities and scope of the use of EU funds, as well as the system for implementing them. Annex I RES electricity Potentials Annex II RES Bioenergy Potentials 225 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Sources: European Commission Factsheets by Country http://ec.europa.eu/energy/energy_policy/facts_en.htm Member States Reports in the framework of the Directive 2001/77/EC on renewable electricity http://ec.europa.eu/energy/res/legislation/electricity_member_states_en.htm Member States Reports in the framework of the Directive 2003/30/EC on biofuels http://ec.europa.eu/energy/res/legislation/biofuels_members_states_en.htm EurObserv’er Barometer http://www.energies-renouvelables.org/observ-er/sig/eufores/sig.asp IEO, institute for Renewable Energy www.ieo.pl In the framework of the EU co –funded project: RES 2020: Monitoring and Evaluation of the RES Directives implementation in EU27 and policy recommendations to 2020 The sole responsibility for the content of this publication lies with the authors. It does not represent the opinion of the Community. The European Commission is not responsible for any use that may be made of the information contained therein. Drafted in March 2008. 226 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Annex I RES electricity potentials Description Unit 2005 2010 2015 2020 2025 2030 Total Wind Maximum Wind onshore Maximum Wind offshore Maximum solar PV Maximum solar thermal Total Hydro Maximum conventional hydro of which Maximum run of river Maximum Pumped Storage hydro Maximum Tide & Wave power plants Maximum geothermal conventional power plants Maximum geothermal hot dry rock power plants Maximum biomass power plants (conventional+CHP) Maximum biogas power plants (conventional+CHP) Maximum biowaste power plants (CHP) MW MW MW TWh MW MW MW MW 73 73 0 0 0 2207 837 427 830 692 138 0 0 2222 852 442 2247 1840 407 1 0 2222 852 442 3665 2988 677 1 0 5082 4135 946 1 0 6499 5283 1216 2 0 852 442 852 442 852 442 MW 1370 1370 1370 TWh 0 1 3 4 5 7 TWh 0 1 2 2 3 3 MW 0 181 251 322 393 463 TWh 1 2 9 16 23 29 TWh 0 0 2 4 6 8 TWh 0 1 1 1 1 1 The previous table present the data that have been gathered in the framework of the RES2020 project in order to be used in the modelling. The data have been collected • Through EREC and its Members • Through a revision of previous EU funded projects and reports (GreenX, OPTRES) • Through the partners of the project The data have been discussed in the framework of the REWG of the EnR with the country experts. The tables present an estimation of the technical potential that could be utilized as an upper bound by 2010, 2015, 2020 and 2030. As technical potential we are considering: • the future installed capacity of wind turbines without taking in mind financial issues at a "reasonable" wind speed as a possible upper limit in the development of the installed capacity over time. • the future installed capacity of hydro considering technical issues only and a possible upper limit in the development of the installed capacity over time. For some technologies potential may be unlimited (e.g. photovoltaics), so we are using upper bound limits within the relevant time frames. 227 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential TABLE 1 Potentials agricultural bioenergy Description Sugar crops: sugar beet Step 1 Step 2 Step 3 Step 4 Starch crops: rye, oats, maize, wheat, barley, etc Step 1 Step 2 Step 3 Step 4 Grassy crops: switchgrass, miscanthus, sweet sorghum, etc Step 1 Step 2 Step 3 Step 4 Woody crops: willow, poplar Step 1 Step 2 Step 3 Step 4 Oil crops: sunflower, rapeseed Step 1 Step 2 Step 3 Step 4 Annex II RES Bionergy Potentials Unit LimType 2000 2001 2005 2010 2015 2020 2025 2030 Potential Cost Potential Cost Potential Cost Potential Cost [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] UP 229,0 5,5 229,0 5,5 229,0 5,5 479,0 5,54 632,0 5,66 786,0 5,87 890,0 6,21 995,0 6,72 Potential Cost Potential Cost Potential Cost Potential Cost [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] UP 104,0 7,0 104,0 7,0 104,0 7,0 218,0 6,76 287,0 6,55 357,0 6,38 404,0 6,27 452,0 6,22 Potential Cost Potential Cost Potential Cost Potential Cost [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] UP 335,0 3,3 335,0 3,3 335,0 3,3 714 3,1 952 2,9 1190 2,9 1357 2,9 1524 2,9 Potential Cost Potential Cost Potential Cost Potential Cost [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] UP 325,0 2,3 325,0 2,3 325,0 2,3 695,0 2,11 928,0 2,03 1162,0 2 1326,0 2,02 1491,0 2,1 Potential Cost Potential Cost Potential Cost Potential Cost [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] UP 76,0 5,3 76,0 5,3 76,0 5,3 158,0 5,1 209,0 5,0 260,0 4,9 294,0 4,8 329,0 4,8 Source UP UP UP UP UP UP UP UP UP UP UP UP UP UP UP 228 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential TABLE 2 Potentials bioenergy from wastes Description Agricultural waste Unit LimType Potential Cost [PJ/a] [€/GJ] Potential Cost 2000 2001 2005 2010 2015 2020 2025 2030 UP 1 110 118 126 [PJ/a] [€/GJ] UP 162 Potential Cost [PJ/a] [€/GJ] UP 18 20 21 EEA Report 7 2006 Potential [PJ/a] UP 48 51 54 Cost [€/GJ] EEA Report 7 2006 Wiśniewski, G. (2007): Bioenergy framework and prospect for Poland. Meeting of the EU Agricultural & Environment Attaches in Poland, German Embassy, Warsaw, Poland, 28 March 2007. Potential [PJ/a] UP 59 63 67 Cost [€/GJ] EEA Report 7 2006 Wiśniewski, G. (2007): Bioenergy framework and prospect for Poland. Meeting of the EU Agricultural & Environment Attaches in Poland, German Embassy, Warsaw, Poland, 28 March 2007. Potential Cost [PJ/a] [€/GJ] UP 37 39 42 EEA Report 7 2006 Potential Cost [PJ/a] [€/GJ] UP Potential Cost Potential Cost Potential Cost [PJ/a] [€/GJ] [PJ/a] [€/GJ] [PJ/a] [€/GJ] UP Forestry residues Source EEA Report 7 2006 Podlaski, S. (2007): Future of Bioenergy in Poland. Warsaw University of Life Sciences, Poland, 2007. http://www.baltic21.org/meeting_documents/TFSA%206/Presentation_Podlaski.pdf Fagernäs, L., et al. (2006): Bioenergy in Europe - Opportunities and Barriers. VTT RESEARCH NOTES 2352, VTT, 2006, p. 52. Podlaski, S. (2007): Future of Bioenergy in Poland. Warsaw University of Life Sciences, Poland, 2007. http://www.baltic21.org/meeting_documents/TFSA%206/Presentation_Podlaski.pdf Wood processing residues Municipal solid waste Wet manures Black liquor Sewage sludge Other waste wood households packageing demolition Podlaski, S. (2007): Future of Bioenergy in Poland. Warsaw University of Life Sciences, Poland, 2007. http://www.baltic21.org/meeting_documents/TFSA%206/Presentation_Podlaski.pdf 1 UP UP 15 16 17 EEA Report 7 2006 Dry manures Potential Cost [PJ/a] [€/GJ] UP Wiśniewski, G. (2007): Bioenergy framework and prospect for Poland. Meeting of the EU Agricultural & Environment Attaches in Poland, German Embassy, Warsaw, Poland, 28 March 2007. 229 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential 24. PORTUGAL 230 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Portugal, which is highly dependent on imported oil and gas, has stepped up its efforts to develop renewable energy sources (RES). The renewable policy framework in Portugal constitutes a comprehensive policy mix, complete with monitoring system; however administrative barriers are hindering a further development, especially for hydropower and solar technologies. In 2006, 70% of total RES-e production was from hydropower. The world's first wave power plant with a capacity of 4 MW is now operating, and a permit has been awarded for a photovoltaic power plant with forecast production of 76 GWh per year. Emerging technologies like wave energy and Concentrated solar power have ambitious targets for 2010. Wind energy is the RES source with the higher rate of evolution in the last years: the supply of electricity from this source, in 2006 reached almost 3000 GWh. For 2007, the contribution was 4003 GWh, representing 213 GW of power production capacity. For the Renewable heating and cooling sector (RES-H&C) a new Portuguese building code has recently introduced the obligation to install solar thermal systems in certain cases. • • • • • The share of RES in total primary energy consumption was of 14% in 2006. The share of RES in the gross final energy consumption was 20.5% in 2005. The share of RES in the gross electricity production was 30.5 % in 2007(a 63% dry year), 30.6% in 2006 (an almost average year) 16.8% in 2005. 25.2% in 2004 (it highly dependent on the variation in hydropower production). The share of biofuels in the transport sector in 2006 was 1.02% Portugal energy dependence on imports amounts to 85% in 2005 and 86% in 2006. Technology specific figures • More than 2.2 GW of wind are currently installed in Portugal. It reached more than 4001 GWh in 2007 and 2892 GWh in 2006. • More than 4.8 GW of hydropower are currently installed in Portugal. It reached more than 10 219 GWh in 2007 and 11202 GWh in 2006. • In 2007, PV reached 14.5 MW of capacity installed (3.4 MW in 2006); biogas 12.5 MW (8.2 MW in 2006), and biomass 357 MW in 2007 and 2006. Source: DGEG RES POLICY The Portuguese Government promotes RES principally via guaranteed feed-in tariffs for renewable electricity, direct subsidy payments (PRIME-Programme) and tax incentives. Beginning in 2005, a tendering/concession process has also been established. Subsidy payments and tax incentives have been largely, though not entirely, used for smaller-scale renewable energy applications. Feed-in tariffs and tendering schemes, used principally for larger-scale renewable applications. 231 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential RES TARGETS Mandatory targets set by the newly proposed RES Framework Directive from 200884 • 31% share of RES on the final consumption of energy in 2020. • At least 10% share of biofuels of final consumption of energy in transport in that Member State in 2020. Indicative Target set by the RES- electricity European Directive from 200185 • 39 % Share of RES on gross electricity consumption by 2010 Indicative Target set by the European Biofuels Directive from 200386 • Biofuels consumption of 5.75 % of petrol and diesel use for transport in 2010 (indicative target of 10% for 2010 following national energy policy commitment). National Commitments • Indicative target of 45% Share of RES on gross electricity consumption by 2010 following national energy policy commitment). • Indicative target for Biofuels consumption of 10 % of petrol and diesel use for transport in 2010 following national energy policy commitment. RES Technology Roadmap • Wind Power: increase by 1,950 MW the installed capacity goal for 2012 (reaching a new total of 5,100 MW with an increase of 600 MW through equipment upgrade) and promote the creation of new technological and investment clusters linked to wind power; • Hydropower: anticipate upgrading capacity investments for existing hydropower plants, in order to reach the 5,575 MW target of installed hydropower capacity by 2010 (575 MW more than expected in previous energy policies). For 2020 the target is 6960 MW following the recently approved National Plan for Dams with High Hydroelectric Potential; • Biomass: increase by 100 MW the installed capacity goal for 2010 (67% increase), promoting a tight coordination across regional forest resources and potential, and fire risk mitigation policies. Thus in 2010 the biomass installed capacity shall be of 250 MW ; • Solar: ensure construction of the world's largest photovoltaic plant (Moura plant) and a link to micro-generation policies and goals. The 2010 goal is of 150 MW of solar installed capacity; • Wave: increase installed capacity by 200 MW through the creation of a Pilot Area with a total exploitation potential of up to 250 MW for new emerging industrial and pre-commercial waves technological development prototypes; • Biofuels: define a 10% penetration of biofuels in road transport (attaining European Union goal 10 years in advance) and promote domestic agriculture initiatives through tax exemptions for road transport fuels incorporating biofuels; • Biogas: define goals and action plan for a previously uncovered area, establishing a 100 MW target of installed capacity for anaerobic waste treatment units; • Micro-generation: promote programme for installing 50,000 systems until 2010, with installation incentives for water heating systems based on solar energy in existing houses. A new law promoting the micro generation of electricity by home owners was approved in the end of 2007 and will be in force starting in February 2008, with a special fast process of licensing and an interesting tariff 84 Proposal for a Directive of the European Parliament and the Council on the promotion of the use of energy from renewable sources from January 2008(the targets agreed but the directive is on legislative process) 85 Directive 2007/71/EC on the promotion of electricity produced from renewable energy sources in the internal electricity market. Currently in force, sets targets up to 2010. 86 Directive 2003/30/EC on the promotion of the use of biofuels or other renewable fuels for transport currently in force, sets targets up to 2010, with indicative targets by 2005. 232 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential • Replacing 5% to 10% of coal used in Sines and Pego Power Plants with biomass or waste until 2010. Progress towards the Targets Portugal has been moving towards its RES-e target in 2007 41.9%, in 2005 (35.9%).However, Portugal has been moving further away from its RES-e target between 1997 and 2007, this is due to the fact that the target was not entirely realistic as it was based on the exceptional hydropower performance of 1997. As a consequence, Portugal is not expected to reach its target, even if measures are successful. RES POLICY INSTRUMENTS Support for Electricity Feed in tariff The Decree-law 33_A of 16th February 2005 modified the system of feed-in tariffs, establishing a new calculation system. The formula for calculation of the feed in tariffs takes in account the technology, the environmental aspects and the inflation rate through the index of prices to the consumer. There are also some minimum and maximum tariffs, according to the variations of load on the grid. Feed-in Tariff Resource hydro wind wind biomass biomass PV CSP Wave Technology small onshore offshore solid gasification (biogas) Up to 10 MW Support level [€cents/ kWh] 7.5 7.4 7.4 11 Feed-in tariff or premium? feed-in tariff feed-in tariff feed in tariff feed in Duration [years that an investor is entitled to support] 20 years 15 years 15 years 15 years 10.2 feed-in tariff 15 years 31-45 26.3-27.3 26 -7.6 feed in feed-in tariff feed-in tariff 15 years 15 years 15 years The Decree-law 225/2007 introduced new tariffs for emerging technologies, such as wave energy and Concentrated Solar Power providing the legal basis for government use of public maritime areas for producing electricity from sea-wave power. The present Portuguese feed-in law also describes a specific procedure that aims at minimizing local opposition towards new wind projects. In consideration of the crucial role of wind power within Portugal's energy strategy and the immense increases in installed capacity required to meet Portugal’s wind energy targets. Under this procedure, municipalities in which a wind farm is located will automatically benefit from the remuneration the operator of the wind project receives. Altogether, the municipality receives a share of 2.5 percent of the monthly remuneration paid to the wind project operator. As expected, municipalities have responded with support for wind power projects in their territory. Local resistance against new installations has consequently remained negligible. A comparable procedure for other renewable technologies does not exist under the Portuguese regulation, and most other countries with feed-in tariffs have not experimented with this approach to minimizing local opposition to new renewable energy projects. Tendering procedures • Were used in 2005 and 2006 in connection to wind and biomass installations. 233 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential • In 2006, a call for tenders was launched for CSP power plants using forest biomass. Support for Heating and Cooling The most recent legislation Portaria 1463/2007 of November 15th, defining the Incentive System applicable to SMEs. Art. 12, no.1, a) acquisition of renewable equipments. Art. 15, no.1) states maximum incentive rate. Investment Subsidies Resource Technology All renewables Solar thermal all (applicable to all renewables) All residential and commercial technologies Domestic solar water heater all (applicable to all renewables) Support level [%/total investment] Start year 25 2006 70 2001 35 2007 End year 2013 Comments SIEST program Only applicable to Azores Autonomous Region (roughly 1.5% of total national demand). It applies to all residential and commercial renewable based energy production SIEST program Only applicable to Madeira Autonomous Region (roughly 1.5% of total national demand) Applicable only to SMEs to a maximum of 250000€ per project Financial Incentives (reduction on interest rate) Resource Technology Support level [% reduction on interest rates] all (applicable to all renewables) all (applicable to all renewables) 100% Start year End year 2007 2013 Comments Applicable only to SMEs to a maximum of 750000€ per project; loan for 5 years and 2 years for capital " carência" Fiscal Incentives (deduction from taxable profits) Support for individuals (thermal use) for the 2006 fiscal exercise, 30% of the costs in RES equipments were deductible. Resource solar; ambient heat; biomass Technology Domestic solar water heater; Solar space and water heating; Solar space heating and cooling; Space and water heating; Space and water heating and cooling; Biomass combustion small scale furnace Support level [% deduction from taxable profits] 30 Start year 2000 End year not defined Comments up to 777 euros of the new equipment cost State budget. This data is for the 2008 state budget proposal. The previous ones, since 2000 had the same measure but less ambitious (e.g. In 2000 % deduction was 25% up to 250 euros) Energy Certification- Building Code The System of Energy Certification (SCE) for buildings complemented by a Regulation on energy conditioning in Buildings (RSECE) and a Regulation on the Thermal properties of Buildings 234 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential (RCCTE) are pieces of legislation passed in mid 2006. They develop a strategy to implement the directive 2002/91/CE on the Energy Certification of Buildings. The RSECE, in its article 14, determines the conditions under which a newly built building should be provided with a centralised energy conditioning system, obliging to make use of RES sources in all those cases where a study proves that it is financially viable. The National Energy Agency ADENE is the body in charge of the implementation of the Certification System. Heat from biomass boilers is one of the technologies benefiting from this new scheme. Support for Biofuels Biofuel quota obligations Directive 2003/30/EC was transposed into Portuguese law by Decree-Law No 62/2006 of21 March 2006, which sets the possible introduction of mandatory minimum quotas of biofuels in fossil fuels where the incorporation of such fuels during the preceding year was well below the level forecast Resource Biofuels Quota in % (per year) 5.75% (energy) Year 2010 Comments Compulsory Tax exemption The promotion of biofuels by fiscal means is the subject of Decree-Law No 66/2006 of22 March 2006, which provides for total exemption (in the case of small dedicated producers) or partial exemption from the duty on such fuels (more specifically the ISP - Tax on Petroleum and Energy products) up to a target set annually Resource biofuels biofuels Technology bioethanol biodiesel Total support level (= tax exemption incl. reduction of VAT to be paid) [€cents/litre] 38.94 10.94 Maximum amount per year eligible (in case of tender system) 589221.5 GJ unlimited start year 2007 Others • The possibility of imposing a quota for biofuels in transport fuels, and of establishing voluntary agreements whenever the biofuel share in blends exceeds 15% in the case of public passenger transport fleets • Establishing a recognised figure, that of the dedicated small producer, corresponding to firms producing up to 3 000 tones annually whose output is derived from waste products or is based on technology projects aimed at the development of products that are less polluting. Support for All RES technologies Investment subsidies for all RES technologies The most recent legislation Portaria 1463/2007 of November 15th, defining the Incentive System applicable to SMEs. Art. 12, no.1, a) acquisition of renewable equipments. Art. 15, no.1) states maximum incentive rate • Support level [%/total investment] 35%. Start year 2007- End year 2013 Applicable only to SMEs to a maximum of 250000€ per project Financial Incentives for all RES technologies • Support level [% reduction on interest rates] 100%: Start year 2007- End year 2013. Applicable only to SMEs to a maximum of 75 000€ per project loan for 5 years and 2 years for capital " carência". 235 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Fiscal Incentives for all RES A reduced VAT rate of 12% is also in place for all RE equipments. Annex I Historical development of renewable in Portugal (1999-2007) Annex II RES electricity Potentials Annex II RES Bioenergy Potentials Sources: European Commission Factsheets by Country http://ec.europa.eu/energy/energy_policy/facts_en.htm Member States Reports in the framework of the Directive 2001/77/EC on renewable electricity http://ec.europa.eu/energy/res/legislation/electricity_member_states_en.htm Member States Reports in the framework of the Directive 2003/30/EC on biofuels http://ec.europa.eu/energy/res/legislation/biofuels_members_states_en.htm APREN http://www.apren.pt/ Technical University of Lisbon http://www.utl.pt/ Ministry of Economy and Innovation. Directorate General for Energy and Geology http://www.min-economia.pt/default.aspx?idLang=2 In the framework of the EU co –funded project: RES 2020: Monitoring and Evaluation of the RES Directives implementation in EU27 and policy recommendations to 2020 The sole responsibility for the content of this publication lies with the authors. It does not represent the opinion of the Community. The European Commission is not responsible for any use that may be made of the information contained therein. Drafted in March 2008 236 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Annex I Historical development of renewable in Portugal (1999-2007) 237 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential 238 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Annex II RES electricity Potentials Description Unit 2005 Wind Total Maximum Wind onshore Maximum Wind offshore Maximum solar PV Maximum solar thermal Total Hydro Maximum conventional hydro of which Maximum run of river Maximum Pumped Storage hydro Maximum Tide & Wave power plants Maximum geothermal Total Maximum geothermal dry steam & flash power plants (>180°C) Maximum geothermal binary power plants (180°C<x<85°C) Maximum geothermal EGS power plants Maximum biomass power plants (conventional+CHP) Maximum biogas power plants (conventional+CHP) Maximum bio waste power plants (CHP) MW MW MW TWh MW MW MW MW MW TWh MW 1024 0 0.004 0 4787 4007 2164 780 0 23 2010 2015 2020 5700 5700 5954 0.30 250 4955 4146 2239 809 2 30 33 8602 7602 1000 16 2400 6960 4919 2726 2041 7 52 30 33 52 2025 2030 12829 9450 3379 8071 5766 3195 2305 MW MW MW 23 TWh 0 6 6 TWh TWh 0 2 7 2 The previous tables present the data that have been gathered in the framework of the RES2020 project in order to be used in the modelling. The data have been collected • Through EREC and its Members • Through a revision of previous EU funded projects and reports (GreenX, OPTRES) • Through the partners of the project The data have been discussed in the framework of the REWG of the EnR with the country experts. The tables present an estimation of the technical potential that could be utilized as an upper bound by 2010, 2015, 2020 and 2030. As technical potential we are considering: • the future installed capacity of wind turbines without taking in mind financial issues at a "reasonable" wind speed as a possible upper limit in the development of the installed capacity over time. • the future installed capacity of hydro considering technical issues only and a possible upper limit in the development of the installed capacity over time. For some technologies potential may be unlimited (e.g. photovoltaics), so we are using upper bound limits within the relevant time frames. 239 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential TABLE 1 Potentials agricultural bioenergy Description Sugar crops: sugar beet Step 1 Step 2 Step 3 Step 4 Starch crops: rye, oats, maize, wheat, barley, etc Step 1 Step 2 Step 3 Step 4 Grassy crops: switchgrass, miscanthus, sweet sorghum, etc Step 1 Step 2 Step 3 Step 4 Woody crops: willow, poplar Step 1 Step 2 Step 3 Step 4 Oil crops: sunflower, rapeseed Step 1 Step 2 Step 3 Step 4 Annex II RES Bionergy Potentials Unit LimType 2000 2001 2005 2010 2015 2020 2025 2030 Potential Cost Potential Cost Potential Cost Potential Cost [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] UP 22,0 8,3 22,0 8,3 22,0 8,3 54,0 7,99 80,0 7,75 106,0 7,54 131,0 7,35 156,0 7,19 Potential Cost Potential Cost Potential Cost Potential Cost [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] UP 9,0 9,9 9,0 9,9 9,0 9,9 24,0 9,38 35,0 8,91 46,0 8,52 57,0 8,18 68,0 7,89 Potential Cost Potential Cost Potential Cost Potential Cost [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] UP 26,0 4,6 26,0 4,6 26,0 4,6 64 4,2 96 4,0 127 3,8 158 3,6 188 3,5 Potential Cost Potential Cost Potential Cost Potential Cost [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] UP 13,0 2,7 13,0 2,7 13,0 2,7 33,0 2,49 49,0 2,35 65,0 2,24 80,0 2,15 96,0 2,08 Potential Cost Potential Cost Potential Cost Potential Cost [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] UP 8,0 8,7 8,0 8,7 8,0 8,7 20,0 8,5 30,0 8,2 39,0 8,0 49,0 7,8 58,0 7,6 Source UP UP UP UP UP UP UP UP UP UP UP UP UP UP UP 240 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential TABLE 2 Potentials bioenergy from wastes Description Agricultural waste Unit LimType Potential [PJ/a] UP Cost [€/GJ] Potential [PJ/a] Cost [€/GJ] Potential [PJ/a] Cost [€/GJ] Potential Cost 2000 2001 2005 2010 4 2015 2020 4 2025 2030 4 Source EEA Report 7 2006 23 according to Sunerny (2007): Market survey Portugal - Potential of biomass for energy. Sunergy, on behalf of EVD/Ministry of Economic Affairs the Netherlands, the Netherlands, March 2007. Forestry residues UP Wood processing residues 25 according to Sunerny (2007): Market survey Portugal - Potential of biomass for energy. Sunergy, on behalf of EVD/Ministry of Economic Affairs the Netherlands, the Netherlands, March 2007. EEA Report 7 2006 13 according to Sunerny (2007): Market survey Portugal - Potential of biomass for energy. Sunergy, on behalf of EVD/Ministry of Economic Affairs the Netherlands, the Netherlands, March 2007. UP 18 20 21 [PJ/a] [€/GJ] UP 24 26 27 EEA Report 7 2006 Potential Cost [PJ/a] [€/GJ] UP 6 6 6 EEA Report 7 2006 Potential Cost [PJ/a] [€/GJ] UP 61 65 69 EEA Report 7 2006 Potential Cost [PJ/a] [€/GJ] UP Potential Cost Potential Cost Potential Cost [PJ/a] [€/GJ] [PJ/a] [€/GJ] [PJ/a] [€/GJ] UP 2 2 2 EEA Report 7 2006 Potential Cost [PJ/a] [€/GJ] UP Municipal solid waste Wet manures Black liquor Sewage sludge Other waste wood households packageing demolition UP UP Dry manures 241 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential 25. ROMANIA 242 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Romania has seen a large decrease in energy consumption since 1990 mainly due to the shutting down of large inefficient industrial businesses. The country has now a certain electricity overcapacity, the energy mix includes a significant share of hydropower (mainly large scale), while the remainder is constituted by fossil fuels and nuclear power. In near future, the nuclear electricity development with two more reactors is a priority. In terms of Renewable Energy Sources (RES), Romania has already achieved its target on share of RES in electricity consumption: current targets for renewable electricity in the region are too weak to stimulate progress. In Romania's accession treaty, the EU set a target by 2010 (33%) that it to be achieved mainly by its current large hydropower production. The high potential of small-scale hydro power has remained almost untouched. A small number of wind, solar, biomass and geothermal projects have been implemented in the country. Provisions for public support are in place, but few renewable energy projects have so far been financed. The September 2007 energy strategy includes upgrading and retrofitting of hydro-power plants with total installed power of 2328 MW. Also targets for electricity from renewables were established: 35% by 2015 and 38% by 2020. Romania has already opted for a quota/certificate system, but the green certificates system per se does not fully secure investor confidence in renewable investments in the country. Indeed, the investment rate in the renewable sector is quite low, also due to long administrative procedures. KEY FIGURES • The share of RES in total primary energy consumption was of 12.3% in 2005. • The share of RES in the gross final energy consumption was 17.8% in 2005. • The share of RES in the gross electricity production was 35.8% in 2006. • The share of RES heating and cooling was of 12%in 200687. • The share of biofuels in the transport sector in 2006 was 0 %. • Romania energy dependence on imports amounts to 31.6% 2006. RES POLICY RES TARGETS Mandatory targets set by the newly proposed RES Framework Directive from 200888 • 24% share of RES on the final consumption of energy in 2020. • At least 10% share of biofuels of final consumption of energy in transport in that Member State in 2020. Indicative Target set by the RES- electricity European Directive from 200189 • 33 % Share of RES on gross electricity consumption by 2010. Indicative Target set by the European Biofuels Directive from 200390 • Biofuels consumption of 5.75% of petrol and diesel use for transport in 2010. National commitments • 11% of RES in primary Energy Consumption by 2010. (2015 – Renewable energy sources a share of 15% on the total primary energy sources). 87 The national statistics show 3022 ktoe from firewood within the final energy consumption of 25312 ktoe. It results the share of RES heating of 12.%. If we consider the gross (primary) energy consumption, then the share is 3185 ktoe versus 39571 ktoe, meaning 8% 88 Proposal for a Directive of the European Parliament and the Council on the promotion of the use of energy from renewable sources from January 2008(the targets agreed but the directive is on legislative process) 89 Directive 2007/71/EC on the promotion of electricity produced from renewable energy sources in the internal electricity market. Currently in force, sets targets up to 2010. 90 Directive 2003/30/EC on the promotion of the use of biofuels or other renewable fuels for transport Currently in force, sets targets up to 2010, with indicative targets by 2005. 243 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential • There is no national target/commitment for heating and cooling. Progress toward the targets In terms of RES of gross electricity consumption, Romania may be on target. In 2007, the majority of all RES-e was generated through large-scale hydro power. RES POLICY INSTRUMENTS Support for RES Electricity Romania introduced the following measures to promote RES-e: A quota system with tradable green certificates (TGC) for new RES-e has been in place since 2004. Purchase Obligation for supplier companies and the obligation to fulfill an annual quota of purchased RES electricity. • The mandatory quota increase from 0.7% in 2005 to 8.3% in 2010. • For the period from 2005-2012 the annual maximum and minimum value for the TGC in 2442 Euros/certificate. TGCs are issued to electricity production from wind, solar, biomass or hydro power generated in plants with less than 10 MW capacity. Mandatory dispatching and priority trade of electricity produced from RES since 2004. Quota Obligations Resource all RES-E Technology all Penalty level [€cents/ kWh] 63 63 63 84 84 84 Quota in % (in year) 0.70% 2.20% 3.74% 5.26% 5.78% 8.30% 9.00% 10.00% 10.80% 12.00% 13.20% 14.40% 15.60% 16.80% Year 2005 2006 2007 2008 2008 2010-2012 2013 2014 2015 2016 2017 2018 2019 2020 Comments, obtained quota 0.000% 0.001% Source: ENERO Centrul pentru Promovarea Energiei Curate si Eficiente in Romania. Center for Promotion of Clean and Efficient Energy in Romania Support for RES heating and cooling There are no support schemes. However, the list of priorities of the Romanian Energy Efficiency Fund (2002) includes the use of RES for heating. 244 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Support for Biofuels Legislation on biofuels was transposed into national legislation in December 2005. Quota Resource Biofuels Biofuels Biofuels Biofuels Biofuels Quota in % (per year) 2% 3% 4% 4% 5.75% Year From 1st July 2007 From 1st January 2008 From 1st July 2008 From 1st July 2009 2010 Excise exemption for biofuels Annex I. RES electricity Targets Annex II RES Bioenergy Potentials Sources: European Commission Factsheets by Country http://ec.europa.eu/energy/energy_policy/facts_en.htm Member States Reports in the framework of the Directive 2001/77/EC on renewable electricity http://ec.europa.eu/energy/res/legislation/electricity_member_states_en.htm Member States Reports in the framework of the Directive 2003/30/EC on biofuels http://ec.europa.eu/energy/res/legislation/biofuels_members_states_en.htm Rominian Egency of Energy Conservation http://www.arceonline.ro ISPE http://www.ispe.ro In the framework of the EU co –funded project: RES 2020: Monitoring and Evaluation of the RES Directives implementation in EU27 and policy recommendations to 2020 The sole responsibility for the content of this publication lies with the authors. It does not represent the opinion of the Community. The European Commission is not responsible for any use that may be made of the information contained therein. Drafted in March 2008. 245 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Annex I. RES electricity Targets Description Unit 2005 2010 2015 2020 2025 2030 Total Wind Maximum Wind onshore Maximum Wind offshore Maximum solar PV Maximum solar thermal Total Hydro Maximum conventional hydro of which Maximum run of river Maximum Pumped Storage hydro Maximum Wave power plants Maximum geothermal conventional power plants Maximum geothermal hot dry rock power plants Maximum biomass power plants (conventional+CHP) Maximum biogas power plants (conventional+CHP) Maximum municipal waste power plants (CHP) Maximum industrial waste power plants (CHP) MW MW MW TWh MW MW MW MW MW TWh 1 1 0 0.00 0.0 6007.0 6007.0 420 380 40 0.00 0 1560 1400 160 0.00 0 6617 6617 3900 3100 800 0.16 80 0.0 0 0 3100 2500 600 0.05 30 7606 6656 0.0 950 0 0.01 4800 3700 1100 0.26 150 7606 6656 0.0 950 0.05 MW 0.0 0 10 25 60 100 TWh 0.0 1.3 3.7 7.4 11.0 12.6 TWh 0.0 0.5 1.1 1.7 2.1 2.6 TWh 0.0 0.1 0.4 0.7 1.3 1.9 TWh 0.0 0.1 0.4 0.6 0.9 1.2 MW The previous tables present the data that have been gathered in the framework of the RES2020 project in order to be used in the modelling. The data have been collected • Through EREC and its Members • Through a revision of previous EU funded projects and reports (GreenX, OPTRES) • Through the partners of the project The data have been discussed in the framework of the REWG of the EnR with the country experts. The tables present an estimation of the technical potential that could be utilized as an upper bound by 2010, 2015, 2020 and 2030. As technical potential we are considering: • the future installed capacity of wind turbines without taking in mind financial issues at a "reasonable" wind speed as a possible upper limit in the development of the installed capacity over time. • the future installed capacity of hydro considering technical issues only and a possible upper limit in the development of the installed capacity over time. For some technologies potential may be unlimited (e.g. photovoltaics), so we are using upper bound limits within the relevant time frames. 246 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential TABLE 1 Potentials agricultural bioenergy Description Sugar crops: sugar beet Step 1 Step 2 Step 3 Step 4 Starch crops: rye, oats, maize, wheat, barley, etc Step 1 Step 2 Step 3 Step 4 Grassy crops: switchgrass, miscanthus, sweet sorghum, etc Step 1 Step 2 Step 3 Step 4 Woody crops: willow, poplar Step 1 Step 2 Step 3 Step 4 Oil crops: sunflower, rapeseed Step 1 Step 2 Step 3 Step 4 Annex II RES Bionergy Potentials Unit LimType 2000 2001 2005 2010 2015 2020 2025 2030 Potential Cost Potential Cost Potential Cost Potential Cost [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] UP 58,0 5,2 58,0 5,2 58,0 5,2 122,0 5,24 160,0 5,37 199,0 5,59 224,0 5,92 250,0 6,4 Potential Cost Potential Cost Potential Cost Potential Cost [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] UP 90,0 6,1 90,0 6,1 90,0 6,1 189,0 5,85 248,0 5,67 307,0 5,54 347,0 5,46 387,0 5,43 Potential Cost Potential Cost Potential Cost Potential Cost [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] UP 252,0 3,8 252,0 3,8 252,0 3,8 564 3,6 768 3,4 972 3,3 1123 3,3 1274 3,3 Potential Cost Potential Cost Potential Cost Potential Cost [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] UP 181,0 2,4 181,0 2,4 181,0 2,4 407,0 2,24 558,0 2,16 708,0 2,13 820,0 2,14 933,0 2,21 Potential Cost Potential Cost Potential Cost Potential Cost [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] UP 67,0 6,0 67,0 6,0 67,0 6,0 141,0 5,8 185,0 5,7 229,0 5,6 258,0 5,5 288,0 5,4 Source UP UP UP UP UP UP UP UP UP UP UP UP UP UP UP 247 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential TABLE 2 Potentials bioenergy from wastes Description Agricultural waste Unit LimType Potential Cost [PJ/a] [€/GJ] UP Potential Cost [PJ/a] [€/GJ] UP Potential Cost [PJ/a] [€/GJ] UP Potential Cost [PJ/a] [€/GJ] UP Potential Cost [PJ/a] [€/GJ] UP Potential Cost [PJ/a] [€/GJ] UP Potential Cost [PJ/a] [€/GJ] UP Potential Cost Potential Cost Potential Cost [PJ/a] [€/GJ] [PJ/a] [€/GJ] [PJ/a] [€/GJ] UP Potential Cost [PJ/a] [€/GJ] UP 2000 2001 2005 2010 2015 2020 2025 2030 Source 79 85 90 31 33 35 http://www.opet-network.net/opetnetworkinfo/19992001activities/pdf/OPET-ENERO-163.doc.pdf 22 23 25 http://www.opet-network.net/opetnetworkinfo/19992001activities/pdf/OPET-ENERO-163.doc.pdf Forestry residues 88,7 128,7 Wood processing residues Municipal solid waste Wet manures Black liquor Sewage sludge Other waste wood households packageing demolition UP UP Dry manures 248 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential 26. SWEDEN 249 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Sweden plans to be World's first oil-free economy by 2020. Indeed, in Sweden a share of 21% of total heat consumption is provided by biomass and biofuels. Sweden has an extensive district heating sector. District heating accounts for about 40 % of the heating market in Sweden. The change in the fuel mix has been impressive: compared to 1970, when oil was the main fuel, oil accounts for only a few percent today. More than 62 % of district heating fuel today is biomass. However, Sweden is moving away from its RES-e target. RES-e production has decreased between 1997 and 2006, mainly due to a lower level of large-scale hydro production. However, Hydro power– on average – is supplying almost half of Sweden’s total electricity production, other RES like biowaste, solid biomass, off-shore wind and PV have shown significant growth. In Sweden, a comprehensive policy mix exists with tradable green certificates as the key mechanism. Wind energy today accounts for less than one percent of the electricity production; however, the potential for wind energy is substantially larger. KEY FIGURES • The share of RES in total Primary Energy Consumption was of 30.02% in 2006. • The share of RES in the gross final energy consumption was 39.8 % in 2005. • The share of RES in the gross electricity production was 48.47% in 2006, with Hydro power– on average – supplying almost half of Sweden’s total electricity production • The share of all biofuels in the transport sector in 2006 was 3.1%. • Sweden energy dependence on imports amounts to 45% in 2005. Primary energy share in Sweden 250 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Energy Input to district Heating Source: Swedish Energy Agency RES TARGETS Mandatory targets set by the newly proposed RES Framework Directive from 200891 • 49% share of RES on the final consumption of energy in 2020. • At least 10% share of biofuels of final consumption of energy in transport in that Member State in 2020. Indicative Target set by the RES- electricity European Directive from 200192 • 60 % Share of RES on gross electricity consumption by 2010. Indicative Target set by the European Biofuels Directive from 200393 • Biofuels consumption of 5.75% of petrol and diesel use for transport in 2010. National commitments • 12.1% of RES in primary Energy Consumption by 2010. • The RES-E target from the EU Directive for Sweden is 60% of gross electricity consumption by 2010. In June 2006 the Swedish target was amended to increase the production of RESE by 17 TWh from 2002 and 2016. • There is no National target for heating and Cooling. Progress towards the Targets • The Swedish share of RES-E for gross electricity consumption decrease to 48.47% in 2006 from 54.3% in 2005, due to decrease in Hydropower production. • In 2006, biofuels by energy content stood at 3%. 91 Proposal for a Directive of the European Parliament and the Council on the promotion of the use of energy from renewable sources from January 2008(the targets agreed but the directive is on legislative process) 92 Directive 2007/71/EC on the promotion of electricity produced from renewable energy sources in the internal electricity market. Currently in force, sets targets up to 2010. 93 Directive 2003/30/EC on the promotion of the use of biofuels or other renewable fuels for transport Currently in force, sets targets up to 2010, with indicative targets by 2005. 251 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential RES POLICY INSTRUMENTS Support for RES electricity Quota oblications The electricity certificate system is a market based support system to assist the expansion of electricity production in Sweden from renewable energy sources and peat. Its objective is to increase the production of electricity from such sources by 17 TWh by 2016 relative to the production level in 2002. One electricity certificate unit is issued to each approved producer for each produced and metered megawatt hour of electricity from renewable energy sources, or from peat. Plants commissioned after the start of the electricity certificate system are entitled to receive electricity certificates for 15 years, or until the end of 2030, whichever is the earlier. Plants that were started up before the certificate system was introduced are entitled to certificates until the end of 2012. Plants that, at the time of their construction or conversion, received a public investment grant after 15th February 1998 (in accordance with a grants programme for certain investments within the energy sector), and are entitled to certificates until the end of 2014. Resource All RES technologies All RES technologies Quota in % (in year) Year 12.60% 2006 16.90% 2010 The demand for electricity certificates is created by the obligation that electricity suppliers and certain electricity users are required to purchase certificates corresponding to a particular proportion of their electricity sales and/or electricity use. This proportion, or quota, has been decided for each calendar year, and set at such a value that the system will play its part in achieving the objective of increasing the production of electricity from renewable energy sources by 17 TWh by 2016, relative to production in 2002. 252 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Grants For local authority land use planning for wind power. The electricity certificate system supports renewable electricity. As the country is experiencing some difficulties in seeking to achieve its planned objective for wind power (namely 10 TWh of wind power production by 2015), this grant seeks to assist achievement of the planning objective by supporting local authority land use planning for 2007 and 2008. Premium Tariff The environmental premium tariff for wind power is a transitory measure and will be progressively phased out by 2009 for onshore wind. Investment Subsidies Resource Support level [%/total investment] Start year End year Comments Solar PV 70% of the cost of the installation may be refunded (with a maximum of 50000 SEK/building). 2005 2007 for public buildings 1 Euro = 9.38 SEK in April 2008 The environmental premium tariff for wind power is a transitory measure and will be progressively phased out by 2009 for onshore wind. Support for RES Heating and Cooling Investment Subsidies In 2006, the Swedish government announced a grant scheme for investment in solar heating on commercial premises. This scheme will run until the end of 2010. Resource Support level [%/total investment] Solar Thermal maximum subsidy of 800 € for a one family house Solar Thermal 30% of its costs covered Geothermal heatpump grant of 3500 EUR Comments For installations in houses For public buildings Start year 2006. For the replacement of electric storage heaters and oil boilers in a building by heating systems containing water as a heat transfer fluid Tax exemption Today only 8 percent of Swedish houses are heated by oil, those households get tax rebates if they switch to renewable sources. Renewable heat has been supported in an indirect way by raising taxes on fossil fuels. Bioenergy, solid waste and peat are tax-exempt for most energy uses. The investment aid to district heating grids indirectly reinforces the promotion of bioenergy. Support for Biofuels A tax relief system is currently in place. Green taxes such as the carbon dioxide tax promote biofuels in an indirect way. In addition, the Swedish government is currently increasing the number of alternative fuel pumps and ensured that 36% of the vehicles it used in 2006 were fuelled, either 253 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential wholly or in part, by biogas, ethanol or electricity. Finally, a subsidy is granted for investment in filling stations for biogas and other renewable fuels: SEK 150m was set aside in 2006 and 2007. Tax exemption Bioethanol and biogas are exempted from the tax on petroleum products and from the tax on CO2. Others • Obligation for large filling stations to provide biofuels. For large size service stations that supply more than 3000 m3 of petrol or diesel a year. Either ethanol or biogas, and since an ethanol filling station is much cheaper than a biogas filling station, ethanol filling stations are normally the preferred choice by the station owners. • Environmental policy for government vehicles • In addition, there is also a subsidy for buyers of new so-called environmental cars (biofuel cars, hybrid cars etc) of 10 kSEK94 per car payed by the government to the buyer. This is a relatively new scheme. Support for all RES Investment Subsidies Resource All RES- technologies Support level [%/total investment] 30% of the cost of installing those technologiesCredit to the tax account Start year 2005 Annex I Swedish RES Electrity Potentials Annex II RES Bioenergy Potentials Sources: European Commission Factsheets by Country http://ec.europa.eu/energy/energy_policy/facts_en.htm Member States Reports in the framework of the Directive 2001/77/EC on renewable electricity http://ec.europa.eu/energy/res/legislation/electricity_member_states_en.htm Member States Reports in the framework of the Directive 2003/30/EC on biofuels http://ec.europa.eu/energy/res/legislation/biofuels_members_states_en.htm Swedish Energy Agency http://www.stem.se Chalmers, University of Technology http://www.chalmers.se EurObserv’er Barometer http://www.energies-renouvelables.org/observ-er/sig/eufores/sig.asp In the framework of the EU co –funded project: RES 2020: Monitoring and Evaluation of the RES Directives implementation in EU27 and policy recommendations to 2020 The sole responsibility for the content of this publication lies with the authors. It does not represent the opinion of the Community. The European Commission is not responsible for any use that may be made of the information contained therein. Drafted in March 2008. 94 I euro= 9.3912 SEK 254 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Annex I Swedish RES Electrity Potentials Description Unit 2005 2010 2015 2020 Total Wind Maximum Wind onshore Maximum Wind offshore Maximum solar PV Maximum solar thermal Total Hydro Maximum conventional hydro of which Maximum run of river Maximum Pumped Storage hydro Maximum Wave & Tide power plants Maximum geothermal conventional power plants Maximum geothermal hot dry rock power plants Maximum biomass power plants (conventional+CHP) Maximum biogas power plants (conventional+CHP) Maximum biowaste power plants (CHP) MW MW MW TWh MW MW MW MW 493 470 23 2150 1600 550 5600 3000 2600 16137.0 16200 10000 4500 5500 1.29 0 16400 2025 2030 17000 6000 11000 16600 MW TWh 3 MW 0 MW 0 TWh 3.6 15.66 TWh 0.1 1.87 TWh 0.5 2 20 The previous tables present the data that have been gathered in the framework of the RES2020 project in order to be used in the modelling. The data have been collected • Through EREC and its Members • Through a revision of previous EU funded projects and reports (GreenX, OPTRES) • Through the partners of the project The data have been discussed in the framework of the REWG of the EnR with the country experts. The tables present an estimation of the technical potential that could be utilized as an upper bound by 2010, 2015, 2020 and 2030. As technical potential we are considering: • the future installed capacity of wind turbines without taking in mind financial issues at a "reasonable" wind speed as a possible upper limit in the development of the installed capacity over time. • the future installed capacity of hydro considering technical issues only and a possible upper limit in the development of the installed capacity over time. For some technologies potential may be unlimited (e.g. photovoltaics), so we are using upper bound limits within the relevant time frames. 255 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential TABLE 1 Potentials agricultural bioenergy Description Sugar crops: sugar beet Step 1 Annex II RES Bionergy Potentials Step 2 Step 3 Step 4 Starch crops: rye, oats, maize, wheat, barley, etc Step 1 Step 2 Step 3 Step 4 Grassy crops: switchgrass, miscanthus, sweet sorghum, etc Step 1 Step 2 Step 3 Step 4 Woody crops: willow, poplar Step 1 Step 2 Step 3 Step 4 Oil crops: sunflower, rapeseed Step 1 Step 2 Step 3 Step 4 Unit LimType 2000 2001 2005 2010 2015 2020 2025 2030 Potential Cost Potential Cost Potential Cost Potential Cost [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] UP 29,0 10,1 29,0 10,1 29,0 10,1 42,0 9,78 49,0 9,49 57,0 9,23 64,0 9,01 70,0 8,81 Potential Cost Potential Cost Potential Cost Potential Cost [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] UP 28,0 8,9 28,0 8,9 28,0 8,9 40,0 8,38 48,0 7,97 55,0 7,63 61,0 7,33 68,0 7,08 Potential Cost Potential Cost Potential Cost Potential Cost [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] UP 54,0 15,3 54,0 15,3 54,0 15,3 79 14,0 94 13,0 109 12,2 122 11,6 135 11,1 Potential Cost Potential Cost Potential Cost Potential Cost [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] UP 48,0 3,1 48,0 3,1 48,0 3,1 70,0 2,87 83,0 2,71 97,0 2,58 108,0 2,48 120,0 2,4 Potential Cost Potential Cost Potential Cost Potential Cost [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] UP 19,0 8,9 19,0 8,9 19,0 8,9 28,0 8,7 33,0 8,4 39,0 8,2 43,0 8,0 47,0 7,8 Source UP UP UP UP UP UP UP UP UP UP UP UP UP UP UP 256 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential TABLE 2 Potentials bioenergy from wastes Description Agricultural waste Unit LimType Potential Cost [PJ/a] [€/GJ] UP Potential Cost [PJ/a] [€/GJ] UP Potential Cost [PJ/a] [€/GJ] Potential Cost 2000 2001 2005 2010 2015 2020 2025 2030 Source 18 20 21 EEA Report 7 2006 UP 98 104 111 EEA Report 7 2006 [PJ/a] [€/GJ] UP 9 10 10 EEA Report 7 2006 Potential Cost [PJ/a] [€/GJ] UP 11 12 13 EEA Report 7 2006 Potential Cost [PJ/a] [€/GJ] UP 197 210 224 EEA Report 7 2006 Potential Cost [PJ/a] [€/GJ] UP Potential Cost Potential Cost Potential Cost [PJ/a] [€/GJ] [PJ/a] [€/GJ] [PJ/a] [€/GJ] UP 4 4 4 EEA Report 7 2006 UP 4 4 4 EEA Report 7 2006 UP 7 8 8 EEA Report 7 2006 Potential Cost [PJ/a] [€/GJ] UP Forestry residues Wood processing residues Municipal solid waste Wet manures Black liquor Sewage sludge Other waste wood households packageing demolition Dry manures 257 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential 27. SLOVENIA 258 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Slovenia exhibits an energy import dependency close to the EU average and mainly imports oil and natural gas. Slovenia produces nuclear energy, solid fuels and renewable energy, all of which are also used in electricity generation in almost equal shares. The share of renewable sources in primary energy supply is steadily increasing. Slovenia’s energy intensity is much higher than the EU-25 average. KEY FIGURES • The share of RES in total primary energy consumption was of 10.55% in 2006. • The share of RES in the gross final energy consumption was 16% in 2005. • The share of RES in the gross electricity production was 24,4% in 2006 • The share of RES heating and cooling was of 4,5 % in 2006 • The share of all biofuels in the transport fuels was by energy 2% in 200695. • Dependence on external energy supplies is about 55.9% in 2005. RES POLICY RES TARGETS Mandatory targets set by the newly proposed RES Framework Directive from 200896 • 25% share of RES on the final consumption of energy in 2020. • At least 10% share of biofuels of final consumption of energy in transport in that Member State in 2020. Indicative Target set by the RES- electricity European Directive from 200197 • 33.6% share of RES on gross electricity consumption by 2010 Indicative Target set by the European Biofuels Directive from 200398 • Biofuels consumption of 5% of petrol and diesel use for transport in 2010, just slightly below the reference value of 5.75%. National Commitments According to the 2004 National Energy Programme Slovenia plans to: • Increase the share of RES in primary energy balance from 9% to 12% by 2010; • Increase the share of RES in heat supply from 22% in 2002 to 25% by 2010. Progress towards the target Indicative targets according to the renewable electricity directive of 33,6 % (2010) will probably not be reached. RES POLICY INSTRUMENTS Figures from the Slovenian Restructuring Agency 95 96 Proposal for a Directive of the European Parliament and the Council on the promotion of the use of energy from renewable sources from January 2008(the targets agreed but the directive is on legislative process) Directive 2007/71/EC on the promotion of electricity produced from renewable energy sources in the internal electricity market. Currently in force, sets targets up to 2010. 97 Directive 2003/30/EC on the promotion of the use of biofuels or other renewable fuels for transport Currently in force, sets targets up to 2010, with indicative targets by 2005. 98 259 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Support for RES electricity Feed in tariff Slovenia has a feed-in tariff in place. Under this system, RES-E producers can choose to receive either fixed feed-in tariffs or premium feed-in tariffs from the network operators. The network operator and the qualified producer sign a Purchase Agreement covering the purchase of electricity from the qualified producer for a period of 10 years. On the basis of the Purchase Agreement, the network operator then buys electricity at the uniform annual price or pays the qualified producer a uniform annual premium for electricity which the latter has sold independently or via an intermediary on the market. Uniform annual prices and premiums for an individual qualified power plant apply for five years from the start of operation, and are then reduced by 5%. Ten years after the start of operation they are reduced by 10% relative to the original tariff. The start of operation is the day the plant begins to deliver electricity to a public network on the basis of their operating licence. Also for every 10% of investment subsidy the tariffs are reduced by 5%. According to the Law on Energy, the uniform annual prices and premiums are set at least once a year by the government. The government is supposed to take into account the growth in the costs of essential goods published by the Statistical Office for the past period, changes in the prices of the basic fuel that is used to generate electricity in qualified power plants, and the expected average annual price of electricity on the market. However, so far, the government did not reevaluate the price. A new Energy Law on amending the feed-in tariffs is currently discussed within the Government. Loans with reduced interest-rate Two different soft loans are normally offered every year by the "Environmental fund of the Republic of Slovenia". In 2006 the total amount of loans was EUR 34,7 millions. 1. Public tender for loaning ecological investment This soft loan for companies, municipalities and other legal entities located in Slovenia amounted in total to 12 million €. The object of this tender was the stimulation of investments in RES-E. The loan can cover up to 90 % of the investment. However, in average they cover 50% of the investment. There was a fixed annual interest rate of 3m-Euribor+0.3 % for a maximum duration of 15 years with moratory interest of up to 2 years. 2. Public tender for loaning ecological investments This soft loan for citizens located in Slovenia amounted in total to 10 million €. The goal was to stimulate investment in small-scale RES-E plants with a nominal power of up to 50 kW. Loans can cover up to 90% of the investment. However, in average they cover 50% of the investment. There was a fixed annual interest rate of 3,9 % for a duration of up to 10 years and not more then 40.000 € per PV plants. For the remaining RES-E plants the credit limit is 20.000 € per installation. Subsidies for RES-electricity for households are assigned by the department of the Ministry for Environment and Spatial Planning. There was a 40 % subsidy for correctly installed PV power plants, restricted to 600 SIT (2.5 €)/Wp for modules installed and to 500,000 SIT (2,086 €) for the whole system. For investments in remote areas with no connection to the network (solar collectors, 260 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential PV and biomass), there is the possibility to apply for an additional 20% subsidy (in total up to 60%) of the investment costs. The department of the Ministry also assigned means for the stimulation of investments in RES to legal entities and self-employed individuals. For the construction of an independent solar power plant in 2004, it amounted to 30 % of the entitled investment costs or to 40 % of entitled costs in case the produced energy covers the need for electrical energy. After 2004 no more subsidies for RES-E from this ministry have been conceded. For those who opt for seasonal and double-tariff measurement, tThe lowest tariff is applied from May to September during the night or in the early afternoon. During this time RES-E producers receive only 70% of the regular tariff level. The highest tariff is paid from December to February during the morning and during the late afternoon. During this time RES-E producers receive 140 % of the regular tariff level. The result is that the producers of RES-E, who can adapt their operation, are able to achieve a higher price for their electricity and the supply is more demand-orientated. Type of QPP regarding the primary energy source Hydroelectric QPP Biomass QPP Wind QPP Power capacity up to 1 MW inclusive From 1 MW up to 10 MW inclusive Up to 1 MW inclusive Above 1 MW Up to 1 MW inclusive Above 1 MW Geothermal QPP Photovoltaic Above 36 kW Uniform annual price (SIT(1)/kWh) 14,75 (~ 6,3 €cents) 14,23 (~ 6,0 €cents) 16,69 (~ 7,1 €cents) 16,17 (~ 6,8 €cents) 14,55 (~ 6,2 €cents) 14,05 (~ 6,0 €cents) 14,05 (~ 6,0 €cents) Up to 36 kW inclusive 15,46 89,67 (~ 38,0 €cents) 7,46 (~ 6,5 €cents) Other(2) QPP 28,97 (~ 12,3 €cents) Combined QPP using RES 16,05 (~ 6,8 €cents) Uniform annual premium (SIT/kWh) 6,75 (~ 2,9 €cents) 6,23 (~ 2,6 €cents) Uniform annual price 2006 (€cents/kWh) 6.2 Uniform annual premium 2006 (from 18/7/08) (€cents/kWh) 2.4 5.9 2.2 8,69 (~ 3,7 €cents) 8,17 (~ 3,5 €cents) 6,55 (~ 2,8 €cents) 6,05 (~2,7 €cents) 6,05 (~ 2,7 €cents) 81,67 (~ 34,6 €cents) 37,4 (~ 3,2 €cents) 20,97 (~ 8,8 €cents) 8,05 (~ 3,4 €cents) 9.36 5.65 9.11 5.35 6.1 2.31 5.9 2.11 5.9 2.11 37.4 33.62 33,62 33.62 12.09 8.33 6.69 2.94 261 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Type of QPP regarding the primary energy source QPP or heating plant using communal waste Heating plant for district heating Industrial heating plant Landfill Gas and Sewage Gas Power capacity Uniform annual price (SIT(1)/kWh) Uniform annual premium (SIT/kWh) 4,74 (~ 2 €cents) Uniform annual price 2006 (€cents/kWh) 5.31 Uniform annual premium 2006 (from 18/7/08) (€cents/kWh) 1.56 Up to 1 MW inclusive 12,74 (~ 5,31 €cents) From 1 MW up to 10 MW inclusive Up to 1 MW inclusive From 1 MW up to 10 MW inclusive Up to 1 MW inclusive Up to 1 MW inclusive 11,87 (~ 5,0 €cents) 3,87 (~ 1,6 €cents) 4.95 1.2 13,90 (~ 5,9 €cents) 5,90 (~ 2,5 €cents) 5,38 (~ 2,3 €cents) 7.29 3.54 6.88 3.13 13,38 (~ 5,7 €cents) 12,86 (~ 5,4 €cents) - 7.08 0 - - 5.3 1.56 The fixed conversion rate is 239,64 SIT=1 € (2) includes biogas Duration of the supporting for the eligible power plant ≤ 10 years Eligible power plants for the supporting: - new power plants - mostly new power plants ≤10 years old Support for biofuels Slovenia has adopted the following legislative acts: a. An operational programme to reduce greenhouse gas emissions, a revised version of which was adopted by the Slovenian government in 2006, and an initial programming document introducing measures to promote biofuels. The operational programme states that the objective of introducing biofuels in transport from 2008–2012 is to reduce greenhouse gas emissions by 120 000 tonnes CO2 equivalent a year, which will mean replacing 45 000 tonnes of diesel and petrol a year. Converting this Kyoto objective into the percentage of the share of biofuels in transport, the average annual use of biofuels for the period 2008–2012 comes to around 3% of all road vehicle fuel. b. The Excise Duty Act (Slovenian Official Gazette No 84/98, last amended in No 122/06), which exempts biofuels used as motor fuels from the excise inspection and payment system when used in their pure form. When biofuels are blended with fossil fuels, a maximum 5% exemption from the payment of excise duty can be claimed, or more for standard fuels containing biofuels. The level of exemption from excise duties is proportional to the share of biofuel added. c. The Rules on the content of biofuels in motor vehicle fuels (Slovenian Official Gazette No 83/05, corrigendum No 108/05), which, in accordance with Directive 2003/30/EC, defines: 262 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential - the types of biofuels used as transport biofuels and- the minimum level of biofuels in motor vehicle transport which fuel distributors must ensure for motor vehicles each calendar year up to 2010. Obligations of fuel distributors In accordance with the Rules on the content of biofuels in motor vehicle fuels (Slovenian Official Gazette No 83/05, corrigendum 108/05), distributors of fuel for transport vehicles must ensure that the annual average content of biofuels in all transport fuels placed on the Slovenian market in the particular calendar year is as follows: - 2006 - equivalent of at least 1.2%, - 2007 - equivalent of at least 2%, - 2008 - equivalent of at least 3%, - 2009 - equivalent of at least 4% and - 2010 - equivalent of at least 5%. The content of biofuels is expressed as a percentage of the energy value of all motor vehicle fuel placed on the market. Distributors may transfer obligations from one year to the next if the price of purchasing biofuels exceeds the total made up of the price of fossil fuels and the excise duties on them. Incentives to grow crops for biofuel production Upon accession to the EU, Slovenia adopted the market regulations and the system for direct payments for crops, introducing direct payments for the production of energy crops. In accordance with the Decree for direct payments for producers ofcertain arable crops (Slovenian Official Gazette No 10/05, last amended by Nos 113/05 and 99/06), in addition to direct payments, producers of energy crops (rape seed oil) who received SIT 71 291/hectare in 2005 could also receive aid for energy crops in the amount of SIT 6 474/hectare. Incentives for local communities for sustainable development of transport The Ljubljana Public Passenger Transport Office (LPP) joined the European Commission’s CIVITAS II - MOBILIS programme to encourage local authorities to develop sustainable transport. The objectives are to test the use of biodiesel to power urban bus vehicles. In July 2005 a blend of fossil diesel (80%) and biodiesel (20%) was tested in two LPP urban buses but, due to the difficulties of storing the fuel, there was a switch in 2006 to 100% biodiesel. Support for heat According to data from the Slovenian Statistics Office, Slovenia's consumption of wood and other solid biomass as fuel to produce electricity and heat produces at least 18.7 PJ a year, or approximately 6% of total primary energy consumption (320 PJ) per year. Subsidies or loans with reduced interest-rates are also available. Financial incentives aim at using RES for heating. Annex I RES Electricity Potentials Annex II RES Bioenergy Potentials 263 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Sources European Commission Factsheets by Country http://ec.europa.eu/energy/energy_policy/facts_en.htm Member States Reports in the framework of the Directive 2001/77/EC on renewable electricity http://ec.europa.eu/energy/res/legislation/electricity_member_states_en.htm Member States Reports in the framework of the Directive 2003/30/EC on biofuels http://ec.europa.eu/energy/res/legislation/biofuels_members_states_en.htm Energy Restructuring Agency Ltd. http://www.ape.si http://www.pv-platforma.si http://www.soncnikolektorji.si Ministry of the Environment and Spatial Planning http://www.mop.gov.si/en/ EurObserv’er Barometer http://www.energies-renouvelables.org/observ-er/sig/eufores/sig.asp In the framework of the EU co –funded project: RES 2020: Monitoring and Evaluation of the RES Directives implementation in EU27 and policy recommendations to 2020 The sole responsibility for the content of this publication lies with the authors. It does not represent the opinion of the Community. The European Commission is not responsible for any use that may be made of the information contained therein. Drafted in March 2008. 264 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Annex I RES electricity Potentials Description Unit 2005 2010 2015 2020 Total Wind Maximum Wind onshore Maximum Wind offshore Maximum solar PV Maximum solar thermal Total Hydro Maximum conventional hydro of which Maximum run of river Maximum Pumped Storage hydro Maximum Wave power plants Maximum tide power plants Maximum geothermal conventional power plants Maximum geothermal hot dry rock power plants Maximum biomass power plants (conventional+CHP) Maximum biogas power plants (conventional+CHP) Maximum municipal waste power plants (CHP) MW MW MW TWh MW MW MW MW MW MW MW 0 0 0 130 130 0 340 340 0 862 862 0 992 992 0 560 560 0 0.03 0.00 992 992 0 2025 2030 860 860 0 992 992 0 0.00 0.00 TWh 0.00 MW 0.00 TWh 1.01 TWh 0.71 TWh 0.38 The previous table present the data that have been gathered in the framework of the RES2020 project in order to be used in the modelling. The data have been collected • Through EREC and its Members • Through a revision of previous EU funded projects and reports (GreenX, OPTRES) • Through the partners of the project The data have been discussed in the framework of the REWG of the EnR with the country experts. The tables present an estimation of the technical potential that could be utilized as an upper bound by 2010, 2015, 2020 and 2030. As technical potential we are considering: • the future installed capacity of wind turbines without taking in mind financial issues at a "reasonable" wind speed as a possible upper limit in the development of the installed capacity over time. • the future installed capacity of hydro considering technical issues only and a possible upper limit in the development of the installed capacity over time. For some technologies potential may be unlimited (e.g. photovoltaics), so we are using upper bound limits within the relevant time frames. 265 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential TABLE 1 Potentials agricultural bioenergy Description Sugar crops: sugar beet Step 1 Annex II RES Bionergy Potentials Step 2 Step 3 Step 4 Starch crops: rye, oats, maize, wheat, barley, etc Step 1 Step 2 Step 3 Step 4 Grassy crops: switchgrass, miscanthus, sweet sorghum, etc Step 1 Step 2 Step 3 Step 4 Woody crops: willow, poplar Step 1 Step 2 Step 3 Step 4 Oil crops: sunflower, rapeseed Step 1 Step 2 Step 3 Step 4 Unit LimType Potential Cost Potential Cost Potential Cost Potential Cost [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] UP Potential Cost Potential Cost Potential Cost Potential Cost [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] UP Potential Cost Potential Cost Potential Cost Potential Cost [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] UP Potential Cost Potential Cost Potential Cost Potential Cost [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] UP Potential Cost Potential Cost Potential Cost Potential Cost [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] UP 2000 2001 2005 2010 2015 2020 2025 2030 0,0 7,8 0,0 7,8 0,0 7,8 1,0 7,75 1,0 7,78 2,0 7,86 2,0 7,98 3,0 8,14 1,0 6,3 1,0 6,3 1,0 6,3 3,0 6,07 4,0 5,87 5,0 5,72 7,0 5,59 8,0 5,49 2,0 4,1 2,0 4,1 2,0 4,1 4 3,9 7 3,7 10 3,5 13 3,4 15 3,4 2,0 3,3 2,0 3,3 2,0 3,3 5,0 3,05 8,0 2,9 11,0 2,8 14,0 2,74 18,0 2,71 0,0 8,6 0,0 8,6 0,0 8,6 0,0 8,3 1,0 8,1 1,0 7,9 1,0 7,7 1,0 7,5 Source UP UP UP UP UP UP UP UP UP UP UP UP UP UP UP 266 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential TABLE 2 Potentials bioenergy from wastes Description Agricultural waste Unit LimType 2000 2001 2005 2010 2015 2020 2025 2030 Source Potential Cost [PJ/a] [€/GJ] UP Potential Cost [PJ/a] [€/GJ] UP Potential Cost [PJ/a] [€/GJ] UP 4 4 4 EEA Report 7 2006 Potential Cost [PJ/a] [€/GJ] UP 4 4 4 EEA Report 7 2006 Potential Cost [PJ/a] [€/GJ] UP 7 8 8 EEA Report 7 2006 Potential Cost [PJ/a] [€/GJ] UP 2 2 2 EEA Report 7 2006 Potential Cost [PJ/a] [€/GJ] UP Potential Cost Potential Cost Potential Cost [PJ/a] [€/GJ] [PJ/a] [€/GJ] [PJ/a] [€/GJ] UP 2 2 2 EEA Report 7 2006 Potential Cost [PJ/a] [€/GJ] UP Forestry residues OPET (2004): Technology needs and market potential of biomass CHP/DHC in Slovenia. OPET Slovenia, May 2004. http://www.opet-chp.net/download/wp3/WP3_3c_biomassCHP_technology_market_potential_JSI_Slovenia.pdf Wood processing residues Municipal solid waste Wet manures Black liquor Sewage sludge Other waste wood households packageing demolition UP UP Dry manures 267 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential 28. SLOVAKIA 268 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Fossil fuels cover 95 % of primary energy needs in Slovakia, and more than 90% of primary energy sources imported. At the same time, Slovakia has great potential to use biomass from own forests. But, the Government has decided to only use this source in remote, mountainous, rural areas, where natural gas is not available. About 40 % of primary energy consumption is used for heat production and roughly half of the households are served by district heating. The main energy source for district heating is natural gas (more than 70 %), often used in combined heat and power production. Large-scale hydro energy is the only RES -e with a notable share in total electricity consumption. Despite the existing support mechanism and that in 2007 the Government has approved a Strategy of Higher Utilisation of Renewable Energy Sources (RES), the Government has presented a proposition to decrease the target to 19% RES-e in 2010 ( instead of 31%), that means only 1.35% growth of RES –e compared to 2002. Despite all European and national commitments, Slovakia is unfortunately far from meeting the targets. Official national policy documents (e. g. Strategy for Renewables , 2006) quote that only between 3.2% (2003) to 4.3% (2005), of the gross domestic energy consumption is summing from renewables (vast majority by existing large hydro power plants). KEY FIGURES • The share of RES in total primary energy consumption was of 4.72% in 2006. • The share of RES in the gross final energy consumption was 6.7% in 2005. • The share of RES in the gross electricity production was 17.12% in 2006 in 2005 was 16.3%. • The share of RES heating and cooling was of 0.59% in 2006. • The share of all biofuels in the transport sector in 2006 was 2.1%. • Slovakia dependence on external energy supplies is of about 90%. 269 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Source: ECB RES POLICY The Strategy of Higher Utilisation of RES in the Slovak Republic was approved in April 2007. RES TARGETS Mandatory targets set by the newly proposed RES Framework Directive from 200899 • 14% share of RES on the final consumption of energy in 2020. • At least 10% share of biofuels of final consumption of energy in transport in that Member State in 2020. Indicative Target set by the RES- electricity European Directive from 2001100 • 31 % Share of RES on gross electricity consumption by 2010. Indicative Target set by the European Biofuels Directive from 2003101 • Biofuels consumption of 5.75% of petrol and diesel use for transport in 2010. National Commitments On April 25, 2007, new Strategy on higher RES utilisation was approved by the government. • New internal targets for RES heat and electricity by 2010 and 2015 Ongoing Legislatives measures: • Law on RES electricity to be prepared by end of 2007 (proposal still not published, preparation process in delay). 99 Proposal for a Directive of the European Parliament and the Council on the promotion of the use of energy from renewable sources from January 2008(the targets agreed but the directive is on legislative process) 100 Directive 2007/71/EC on the promotion of electricity produced from renewable energy sources in the internal electricity market. Currently in force, sets targets up to 2010. 101 Directive 2003/30/EC on the promotion of the use of biofuels or other renewable fuels for transport Currently in force, sets targets up to 2010, with indicative targets by 2005. 270 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential • Support programme for households and housing associations for solar thermal and biomass technologies installation (programme had to be prepared till the end of 2007 according to governmental resolution, commitment not fulfilled) Biomass action plan under preparation, end November 2007 (January 2008: proposal of national Biomass Action Plan being amended) However In 2007, the Slovakian Government came with 3 development scenarios, proposition to decrease the target to 19% RES-e in 2010; only 1.35% growth of RES –e compared to 2002 RES-e Technology Roadmap by 2010 and 2015 2005 [GWh] 2010 [GWh] Production increase [GWh] Installed capacity [MW] Investment costs [mio SKK] 2015 [GWh] Production increase [GWh] 250 350 100 20 1800 450 100 Biomass 4 480 476 90 950 650 170 Wind energy 7 200 193 100 4000 750 550 Biogas 6 180 174 30 4200 370 190 Geothermal energy 0 30 30 4 400 70 40 PV 0 0 0 0 0 10 10 267 1 240 973 244 11350 2 300 1 060 Source/ Year SHPP Total To reach 4% RESe (without large hydro) share on total electricity consumption 31 000 GWh in 2010 (1 240 GWh) and 7% share on total electricity consumption 32 900 GWh in 2015 (2 300 GWh) RES-Heat Technology Roadmap by 2010 and 2015 Source Biomass Biogas Geothermal Solar Heat pumps ( low potential heat) Total Source: ECB Heat Production in 2010 TJ 25 000 2 000 200 300 200 Heat Production in 2015 TJ 37 000 4 000 1 000 1 000 800 27 700 43 800 Progress towards the targets Between 1997 and 2006, the share of RES-e decreased from 17.9% to 17.21% of gross electricity consumption. RES POLICY INSTRUMENTS Support for RES electricity Feed in tariff Tariffs are being set annually by Regulatory Office for Network Industries, increasing each year by index of national core inflation. 271 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Resource Technology hydro small wind onshore wind offshore energy crops combustion solid combustion waste from bioethanol production co-firing with fossil biogas from waste water treatment and landfill gas biogas from anaerobic fermenting technology PV geothermal biomass biomass biomass biomass biomass biomass Solar Geothermal Start year Duration [years that an investor is entitled to support] End year [of the scheme] 6,0 - 8,5 2008 1 year 2008 5,1 - 8,9 2008 1 year 2008 - 2008 1 year 2008 3.15 9.5 2008 1 year 2008 2,19 2,96 6,6 - 8,9 2008 1 year 2008 3.6 10.9 2008 1 year 2008 2,19 2,65 6,6 - 8,0 2008 1 year 2008 2.63 7.9 2008 1 year 2008 3,90 4,31 11,8 13,0 2008 1 year 2008 8.41 3.68 25.4 11.1 2008 2008 1 year 1 year 2008 2008 Support level [SKK/ kWh] 2,00 2,82 1,70 2,94 - Support level [€cents/ kWh] Source: ECB Other Measures: RES-E policy in the Slovak Republic includes the following measures: • A measure that gives priority regarding transmission, distribution and supply was included in the 2004 by Act on Energy. • Subsidies (EU Funds) are available for the re-construction of RES-e facilities. Support for RES Heating Heat Purchase Obligation Obligation to purchase heat (Act No. 657 / 2004 in the Collection of Laws of the Slovak Republic on Heat Energy). The holder of license in heat distribution has to purchase heat from the holder of license in heat production who is producing heat from RES or CHP unit, if he: • Is not a producer or purchaser of RES / CHP heat himself; • Will not increase the price for his purchasers; • Cooling medium used in RES / CHP heating unit is identical that is used in public heating system; • Purchasing of heat from RES / CHP unit is economically equal with purchasing heat from other heat sources (in the point of heat distribution license holder’s view). 272 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Investment subsidies Subsidies (EU Funds, Envirofond) are available for the (re)construction of RES-H facilities. Public (up to 95% subsidy) and private sector (up to 50% subsidy) is eligible. Financial Incentives (reduction on interest rate) Resource Technology Environmental Fund Solar thermal systems Support level [% reduction on interest rates] 1% interest rate on loan (national average is about 6%) Start year End year Applications to be submited annually. Comments For private sector only, maturity of loan between 5-15 years; 130% guarantee of loan value is required; minimum 3 years history of private company Investment subsidies for households In April 2007, the Slovak Government approved a framework of support for increased household use of biomass, financed from the State budget. This framework will be developed in more detail in the Programme for increased household use of biomass and solar energy, which the Slovak Ministry of Economic Affairs approved in September. Grants will be awarded subject to certain criteria being met. The overall amount of funding earmarked per year will be SKK 100 million (about EUR 3 million). The first stage of this measure, up to2011, will focus on plans for promoting the use of biomass. Resource Solar Thermal Biomass Technology collectors Biomass combustion small scale furnace Support level [%/total investment] End year cca 20% Start year Theoretically 2009 25% max. ca 750,€ 2008 2015 2015 An approx. 90 EUR/square meter up to total square 8m2, and over 8m2 it will be 45 EUR for every additional square meter. It is according the Government decree from 27th April 2007 " Programme for higher utilisation of solar energy a biomass (wooden chips and pallets only) in household sector" Amount 75 mil Sk (it is aprox. 2 200 000 EUR/year) was intended to be allocated for every year. Commitment for 2008 not fulfilled; possibility of shifting on 2009. Support for Biofuels In 2005, the National Programme of Biofuel Development was adopted. Legislation concerning the minimum amount of biofuels on the Slovakian market and a decree laying down the requirements for fuel quality and maintenance of records of fuels were scheduled for 2006. Quota This corresponds to the indicative target set in the EU Biofuels Directive. Interim targets are 2.5% in 2006, 3.2% in 2007, 4% in 2008 and 4.9% in 2009. 273 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Resource Biofuels Biofuels Biofuels Biofuels Biofuels Quota in % (per year) 2.5% 3.2% 4% 4.9% 5.75% Year 2006 2008 2008 2009 2010 Tax exemption for Biofuels Resource Excise tax (15,50 Sk/litre = 46,8 €cents/litre for petrol; 14,50 Sk/litre = 43,8 €cents/litre for diesel) Technology Bioethanol and biodiesel Total support level (= tax exemption incl. reduction of VAT to be paid) [€cents/litre] start year End year Max. 1,12 Sk/litre = 3,38 €cents/litre for petrol (corresponding to max. 15% share of ETBE in petrol); 2004 Duration [years of support entitled] Comments Till next Act on excise tax amendment. n/a Max. 0,73 Sk/litre = 2,2 €cents/litre for diesel (corresponding to max. 5% share of MERO in diesel); Excise tax reduction is calculated as reduction by each % corresponding to the energy content of bioingedient in petrol or diesel All RES Investment subsidies Resource Environmental Fund Technology Solar thermal systems Biomass boilers Support level [%/total investment] 95% Heat pumps Start year Current year (application till the end of October) End year Grant should be applied till the end of 1. year after application EU Structural Funds All RES technologies except wind turbines and large hydro Not specified yet. 2008 2013 Financial Mechanism of Norwegian Kingdom and EEA All RES technologies Up to 90% for public sector; private sector - up to 50% 2004 2009 Comments Public sector only. Relevant operational programmes approved; state support schemes have not been finally approved yet; waiting for calls for proposals Annex I. Evolution of RES electricity and RES heat Supply in Slovakia (2002-2005) Annex II. RES Electricity Potentials Annex III RES Bioenergy Potentials 274 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Sources: European Commission Factsheets by Country http://ec.europa.eu/energy/energy_policy/facts_en.htm Member States Reports in the framework of the Directive 2001/77/EC on renewable electricity http://ec.europa.eu/energy/res/legislation/electricity_member_states_en.htm Member States Reports in the framework of the Directive 2003/30/EC on biofuels http://ec.europa.eu/energy/res/legislation/biofuels_members_states_en.htm Energy Centre Bratislava http://www.ecb.sk/ Slovak Innovation and Energy Agency http://www.sea.gov.sk EurObserv’er Barometer http://www.energies-renouvelables.org/observ-er/sig/eufores/sig.asp In the framework of the EU co –funded project: RES 2020: Monitoring and Evaluation of the RES Directives implementation in EU27 and policy recommendations to 2020 The sole responsibility for the content of this publication lies with the authors. It does not represent the opinion of the Community. The European Commission is not responsible for any use that may be made of the information contained therein. Drafted in March 2008 275 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Annex I. Evolution of RES electricity and RES heat Supply in Slovakia (2002-2005) RES electricity production in GWh, 2002 – 2005 2002 [GWh] 2003 [GWh] 2004 [GWh] 2005 [GWh] Hydro power plants total 5 483 3 671 4 207 4 741 out of which pumping HPP 215 192 107 103 Hydro power plants (without Pumping HPP) 5 268 3 479 4 100 Wind power plants 0 2 6 7 Biomass 159 84 3 4 Biogas 1 2 2 4 Total 5 428 3 567 4 111 4 653 RESe share on electricity consumption 18,6 % 12,4 % 14,4 % 16,3 % Sources 4 638 Source: Slovak Strategy for higher RES utilisation, approved on April 25, 2007 RES heat supply in GWh, 2002 – 2005 Source 2002 2003 2004 2005 [TJ] [TJ] [TJ] [TJ] 474 643 1 354 1 673 1 0 0 116 159 139 144 Solar 36 40 45 50 Total 670 822 1 543 1 979 Biomass Biogas Geothermal 140 Source: Slovak Strategy for higher RES utilisation, approved on April 25, 2007 276 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Annex II. RES Electricity Potentials Description Unit 2005 2010 2015 2020 2025 2030 Maximun Wind Maximum Wind onshore Maximum Wind offshore Maximum solar PV Maximum solar thermal Total Hydro Maximum conventional hydro of which Maximum run of river Maximum Pumped Storage hydro Maximum Wave power plants Maximum tide power plants Maximum geothermal conventional power plants Maximum geothermal hot dry rock power plants Maximum biomass power plants (conventional+CHP) Maximum biogas power plants (conventional+CHP) Maximum municipal waste power plants (CHP) MW MW MW TWh MW MW MW MW MW MW MW 5 5 0 0.00 0.00 2420 1550 732 865 0.0 0.0 773 773 0 0.10 0.00 2427 1562 740 865 0 0 851 851 0 0.20 0.00 2495 1630 770 865 0 0 930 930 0 0.30 0.00 1041 1041 0 0.40 0.00 1151 1151 0 0.50 0.00 1698 800 1766 840 1834 840 0 0 0 0 0 0 TWh 0.0 0.04 0.04 0.05 0.05 0.06 MW 0.0 5.4 5.9 6.5 7.2 7.9 TWh 0.0030 1.16 1.6 2.1 2.3 2.5 TWh 0.0020 0.00 0.3 0.5 0.8 1.0 TWh 0.0130 0.59 0.6 0.6 0.6 0.6 The previous tables present the data that have been gathered in the framework of the RES2020 project in order to be used in the modelling. The data have been collected • Through EREC and its Members • Through a revision of previous EU funded projects and reports (GreenX, OPTRES) • Through the partners of the project The data have been discussed in the framework of the REWG of the EnR with the country experts. The tables present an estimation of the technical potential that could be utilized as an upper bound by 2010, 2015, 2020 and 2030. As technical potential we are considering: • the future installed capacity of wind turbines without taking in mind financial issues at a "reasonable" wind speed as a possible upper limit in the development of the installed capacity over time. • the future installed capacity of hydro considering technical issues only and a possible upper limit in the development of the installed capacity over time. For some technologies potential may be unlimited (e.g. photovoltaics), so we are using upper bound limits within the relevant time frames. 277 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential TABLE 1 Potentials agricultural bioenergy Description Sugar crops: sugar beet Step 1 Annex III RES Bionergy Potentials Step 2 Step 3 Step 4 Starch crops: rye, oats, maize, wheat, barley, etc Step 1 Step 2 Step 3 Step 4 Grassy crops: switchgrass, miscanthus, sweet sorghum, etc Step 1 Step 2 Step 3 Step 4 Woody crops: willow, poplar Step 1 Step 2 Step 3 Step 4 Oil crops: sunflower, rapeseed Step 1 Step 2 Step 3 Step 4 Unit LimType Potential Cost Potential Cost Potential Cost Potential Cost [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] UP Potential Cost Potential Cost Potential Cost Potential Cost [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] UP Potential Cost Potential Cost Potential Cost Potential Cost [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] UP Potential Cost Potential Cost Potential Cost Potential Cost [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] UP Potential Cost Potential Cost Potential Cost Potential Cost [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] UP 2000 2001 2005 2010 2015 2020 2025 2030 8,0 7,3 8,0 7,3 8,0 7,3 16,0 7,34 21,0 7,42 27,0 7,56 30,0 7,8 34,0 8,14 16,0 6,2 16,0 6,2 16,0 6,2 34,0 5,95 44,0 5,77 55,0 5,63 62,0 5,53 69,0 5,48 18,0 4,0 18,0 4,0 18,0 4,0 48 3,7 69 3,6 90 3,4 108 3,4 126 3,4 21,0 3,2 21,0 3,2 21,0 3,2 55,0 2,95 79,0 2,81 104,0 2,73 124,0 2,7 145,0 2,71 4,0 8,5 4,0 8,5 4,0 8,5 8,0 8,3 11,0 8,0 13,0 7,8 15,0 7,7 17,0 7,5 Source UP UP UP UP UP UP UP UP UP UP UP UP UP UP UP 278 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential TABLE 2 Potentials bioenergy from wastes Description Agricultural waste Unit LimType Potential [PJ/a] UP Cost [€/GJ] Potential Cost [PJ/a] [€/GJ] UP Potential [PJ/a] Cost [€/GJ] Potential [PJ/a] Cost [€/GJ] Potential Cost 2000 2001 2005 2010 2015 2020 2025 2030 9 10 10 UP 6 6 6 UP 6 6 6 [PJ/a] [€/GJ] UP 22 24 25 Potential [PJ/a] UP 7 8 8 Cost [€/GJ] Potential Cost [PJ/a] [€/GJ] UP Potential Cost Potential Cost Potential [PJ/a] [€/GJ] [PJ/a] [€/GJ] [PJ/a] UP 2 2 2 Cost [€/GJ] Potential Cost [PJ/a] [€/GJ] Forestry residues Wood processing residues Municipal solid waste Wet manures Black liquor Source EEA Report 7 2006 28.6 according to ACCESS (2006): Report on the perspectives to the development of the biomass potential - Bulgaria, Czech Republic, Hungarry, Romania, Slovakia. ACCESS, 2006. 17 according to ACCESS (2006): Report on the perspectives to the development of the biomass potential - Bulgaria, Czech Republic, Hungarry, Romania, Slovakia. ACCESS, 2006. http://www.sustenergy.org/UserFiles/File/ACCESS_Newsletter_eng.pdf EEA Report 7 2006 12 according to ACCESS (2006): Report on the perspectives to the development of the biomass potential - Bulgaria, Czech Republic, Hungarry, Romania, Slovakia. ACCESS, 2006. EEA Report 7 2006 1.58 according to Fehér, A., et al (2002): Biomass - a renewable energy source used in agriculture and forestry of Slovakia. EE&AE’2002, International Scientific Conference, Rousse, Bulgaria, 4-6 April 2002. ACCESS (2006): Report on the perspectives to the development of the biomass potential - Bulgaria, Czech Republic, Hungarry, Romania, Slovakia. ACCESS, 2006. EEA Report 7 2006 EEA Report 7 2006 6.5 according to ACCESS (2006): Report on the perspectives to the development of the biomass potential - Bulgaria, Czech Republic, Hungarry, Romania, Slovakia. ACCESS, 2006. Sewage sludge Other waste wood households packageing demolition UP UP EEA Report 7 2006 1.62 according to ACCESS (2006): Report on the perspectives to the development of the biomass potential - Bulgaria, Czech Republic, Hungarry, Romania, Slovakia. ACCESS, 2006. Dry manures UP 279 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential 29. UNITED KINGDOM 280 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Until recently, the United-Kingdom (UK) was largely self-reliant for energy, producing significant quantities of oil, gas and coal. The gradual depletion of oil and gas reserves and a decrease in domestic coal production has led to a growing dependence on imports. In the electricity sector, gas has replaced coal as the principal fuel. Since 2005, rapidly increasing energy prices, growing concerns on security of supply and awareness of climate change have raised the profile of energy in the UK. The government has come out strongly in favour of new nuclear build, while some regions are putting particular focus on renewable energies (particularly wind and tidal). The UK Government set out its energy policy on 23 May 2007 when it published its Energy White Paper Meeting the Energy Challenge. KEY FIGURES • The share of RES in total primary energy consumption was of 1.98% in 2006. • The share of RES in the gross final energy consumption was 1.3% in 2005. • The share of RES in the electricity production was 4.6% in 2006 up from 4.2% in 2005. • The share of all biofuels in the transport sector in 2006 was 0.54% by volume, or some 0.45% by energy content. • The United-Kingdom’s dependence on external energy supplies was about 13% in 2005. Technology specific figures • For the first time in 2006, wind (with an 8% share) accounted for as much as hydro in primary input terms. Of the 4.43 million tonnes of oil equivalent of primary energy use accounted for by renewables, 3.94 million tonnes was used to generate electricity and 0.44 million tonnes to generate heat. • Decreased water flow from low rainfall was the cause of the lower hydro levels in 2006. • Since January 2006 more than 540MW of wind and around 80 MW134 of other renewables, including landfill gas, photovoltaics and biomass have been installed. More than 2GW of wind is now connected to the grid – with the first GW taking around 14 years to become operational and the second only 20 months. • A further 1,260 MW of renewables capacity is under construction; 4,600 MW has been consented, and 11,400 MW is in planning processes across the UK. The Department for Business, Enterprise and Regulatory Reform estimate that around £1billion has been either invested or committed to new UK renewable projects in the past year. • Total sales of biofuels in the UK in 2006 were some 264 million litres, whilst total road fuel sales were approximately 49,000 million litres. Source: Energy Trends. National Statistics Publication. Department of Business enter[rice and regulatory reform 281 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential RES POLICY RES TARGETS Mandatory targets set by the newly proposed RES Framework Directive from 2008102 • 15% share of RES on the final consumption of energy in 2020. • At least 10% share of biofuels of final consumption of energy in transport in that Member State in 2020. Indicative Target set by the RES- electricity European Directive from 2001103 • 10% share of RES on gross electricity consumption by 2010. Indicative Target set by the European Biofuels Directive from 2003104 • Biofuel sales target for 2010 is 5% by volume of total road transport fuel sales. The UK Government recognises that the level of the obligation for 2010/11 falls below the 'reference value' (5.75% by energy content) set out in the Directive. The Directive allows Member States to set targets which differ from the reference values provided that any differentiation is "motivated". The UK Government's motivation is primarily that: the UK Government is not yet confident that higher levels of biofuels can be delivered in a sustainable way. The 5% by volume level is consistent with current EU fuel quality standards which impose a 5% volume-based limit for biofuel blends. National commitments: The UK government announced in January 2000 a 10% target RES- electricity supplied in the UK from renewable energy sources by 2010. This target has been embodied in the Government's Energy White Paper published in February 2003, which also introduced an aspiration to achieve a renewable electricity penetration of 20% of all electricity power generation by 2020. These goals were further underlined in the Energy White Paper ‘Meeting the Energy Challenge’ published in May 2007. The government also set out an aspiration to double this by 2020. Progress towards the target The UK will not meet its RES electricity target put forward by the European Commission said a report published in March 2008 by Cambridge Econometrics . The report forecasts the British government will fall short of its 10% target for 2010 reaching just 6%. RES POLICY INSTRUMENTS Support for RES electricity Renewable obligation The Renewables Obligation (RO) is the Government's main mechanism for supporting generation of renewable electricity. It was introduced in April 2002 and is the successor to the Non Fossil Fuels Obligation. 102 Proposal for a Directive of the European Parliament and the Council on the promotion of the use of energy from renewable sources from January 2008(the targets agreed but the directive is on legislative process) 103 Directive 2007/71/EC on the promotion of electricity produced from renewable energy sources in the internal electricity market. Currently in force, sets targets up to 2010. 104 Directive 2003/30/EC on the promotion of the use of biofuels or other renewable fuels for transport Currently in force, sets targets up to 2010, with indicative targets by 2005. 282 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential The RO places an obligation on electricity suppliers to source an increasing share of their power sales from renewable sources. In case they should not meet this obligation, they have to pay a penalty: 34.30 GBP (50.58 €) per MWh in 2007/2008. The percentage of renewable power that must be supplied is now 7.9% and will increase to 15.4% in 2015. For each megawatt hour of renewable energy generated, a tradable certificate called a Renewables Obligation Certificate (ROC) is issued. Electricity suppliers meet their obligation: • by surrendering Renewables Obligation Certificates (ROCs) as evidence of their own renewable electricity generation: • by surrendering ROCs they have purchased from other renewable electricity generators; • by paying the ‘buyout’ penalty; • or by a combination of the options. When a supplier chooses to pay the buy-out price, the money they pay is put into the buy-out fund. At the end of the 12-month Obligation period, the buy-out fund is recycled to electricity suppliers presenting ROCS. The buy-out price is the fixed penalty that an energy supplier pays for each MWh that it falls short of its obligation. The buy-out price is linked to the Retail Price Index (RPI) and for 2007/08 the price is £34.30 per MWh. The suppliers pay this money into an account administered by Ofgem (the Buy-out Fund) and each year the accumulated Fund is shared among those suppliers who have presented RO Certificates (ROCs). The combination of the buy-out price and the extent to which suppliers have fallen short of their obligations determines the nominal value of a ROC and the total support available for each MWh of renewable electricity under the RO. Resource Penalty level [€cents/ kWh] Quota in % (in year) Year All RES- E technologies except hydro above 20 MW, and energy from waste unless it is obtained through advance conversion technologies. 34.30 GBP (50.58 €) per MWh in 2007/2008. (annually adjusted with the retail price index) 15.4% in 2015 From 2002 to 2027 ROCs are issued to accredited renewable generators for each 1MWh of eligible electricity generated irrespective of the technology used. The Government is consulting on providing more targeted levels of support to different technologies in the form of multiple or fractional ROCs. New projects in more expensive technologies like dedicated biomass and anaerobic digestion would receive more support and those that are more economic like landfill gas would receive less. Subject to consultation and State Aid clearance, this change will take effect from 2009 at the earliest. In May 2007, the UK Government announced – in the White paper- modifications to the Renewables Obligation (RO) legislation. Key announcements are: • The RO will continue until 2027. • Obligation levels will rise to 20% ‘with guaranteed headroom’: the obligation level will only be raised further if the growth in renewables generation justifies this. • The RO will be ‘banded’: this means that technologies will be awarded more or less than one ROC for each MWh of electricity they produce depending on the technological development and costs. Banding thus stimulates emerging renewable technologies that are still more expensive. Decisions about the future bands will be taken after consultation and will then be applied until 2013. 283 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential • Emerging technologies, such as wave and tidal power, will still get support from capital grant schemes and other policies. The new Energy Technologies Institute and Environmental Transformation Fund will provide funding. Climate change levy Renewable electricity is exempted from the climate change levy on electricity of £4.3/MWh (approx. 6.3 EUR/MWh) Support for RES Heating The deployment of biomass fuelled heat projects in the UK is also supported by the £66m Bioenergy Capital Grants scheme, jointly-funded by the Department of Trade and Industry and the National Lottery's New Opportunities Fund. Support is targeted in four areas: amongst others: smaller heat and CHP, medium scale CHP. Support for Biofuels Renewable Transport Fuel Obligation The Renewable Transport Fuel Obligation Programme will, from April 2008, place an obligation on fuel suppliers to ensure that a certain percentage of their aggregate sales is made up of biofuels. The effect of this will be to require 5% of all UK fuel sold on UK forecourts to come from a renewable source by 2010. These targets have been set on a volume basis. The RTFO is modelled on the existing Renewables Obligation in the UK electricity supply industry. The transport sector is responsible for 25% of emissions and through this initiative the RTFO expects to reduce the carbon emissions from road transport in 2010 by about 0.7 - 0.8 million tonnes, equivalent to taking 2.6 - 3.0 million tonnes of carbon dioxide. Obligation Under the Renewable Transport Fuel Obligation, the UK has set a target in July 2006: Incorporation level shall reach 2.5% during the 2008/09 fiscal year, 3.75% in 2009/10 and 5% in 2010/11 (expressed in volume-thus considerably lower than the 2003 Directive's level. Under the scheme certificates can be claimed when renewable fuels are supplied and fuel duty is paid on them. At the end of an obligation period, these certificates may be redeemed to the RTFO Administrator to demonstrate compliance and certificates can be traded. If any obligated supplier does not have enough certificates at the end of an obligation period, it has to 'buy-out' of the balance of its obligation by paying a buy-out-price. The buy-out-price will be 15 pence per litre in the first and second years of the obligation. In order to ensure compliance the Administrator will issue RTF Certificates according to the quantity of renewable fuel on which duty has been paid. It will be possible for companies to trade certificates. If a company cannot produce enough certificates at the end of each compliance period it will have to pay a buy out price which will go into a buy out fund. Level of buy-out prices The RTFO buy-out price - the price paid by fuel suppliers who fail to meet their obligation for the year by producing certificates showing biofuel supply - will remain at 15 pence per litre for the second year of the Obligation (i.e. 2009-10). The government's intention is that the level of the RTFO buy-out should be sufficiently high to ensure that obligated suppliers do not routinely resort to using it. 284 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Sustainability requirements The UK Government also announced on 21 June 2007 that it: ‐ aims to reward biofuels under the RTFO in accordance with the carbon savings that they offer from April 2010, provided that this is compatible with World Trade Organisation rules and EU Technical Standards requirements, ‐ aims to reward biofuels under the RTFO only if the feedstocks from which they are produced meet appropriate sustainability standards from April Promotion and Use of Biofuels in 2011. ‐ will ask the RTFO Administrator to report to the Secretary of State every three months on the effectiveness of the RTFO's environmental reporting mechanisms, and on the carbon and sustainability effects of the RTFO. The Government will keep the RTFO under review in the light of these reports. In January 2007, the newly established Renewable Fuels Agency (RFA) in the UK published guidelines to companies on how to report on their fuels concerning the Renewable Transport Fuel Obligation, which is intended to entry into force on 15 April 2008. Companies can use the guidelines to provide information on the origin, greenhouse gas performance and production for all biofuels in their portfolio. Major suppliers are required to have an independently verified annual sustainability report. Fuel Duty Incentives Under the Alternative Fuels Framework published by the UK Government in December 2003, the UK Government sets out in each year's Budget the levels of fuel duty incentives for biofuels and other alternative fuels that will apply in each of the following three years. This provides certainty to support investment in the production and development of alternative fuels. The RTFO is likely, over time, to replace fuel duty incentives as the UK Government's principal support mechanism for biofuels. However, the UK Government believes that, in the early years of the RTFO, there should be a gradual, rather than an abrupt, transition from one mechanism to the other. Budget 2006 therefore announced that the 20 pence per litre duty differential would be guaranteed until 2008-09, and Budget 2007 has since extended it further to 2009- 10. Enhanced Capital Allowances The Government will re-apply for State aid clearance and, subject to that, will introduce a 100 per cent first-year allowance for biofuels plant that meet certain qualifying criteria, and which make good carbon balance inherent in their design, as proposed. In addition the Government will also Introduce a payable enhanced capital allowance for companies not in taxable profit to ensure both profit and loss making firms have an incentive to invest in the cleanest biofuels plant. Government grant programmes During 2006, the UK Government, through the Refuelling Infrastructure Grant Programme managed by the Energy Saving Trust, continued to provide grants toward the cost of installing alternative refuelling points including, for example, for hydrogen, electric, bio-ethanol and natural gas / biogas stations. Although not exclusively aimed at biofuels, the grant programme has attracted interest from a range of organisations considering the installation of E85 bioethanol refuelling points. Regional Selective Assistance Grants Regional selective assistance grants are one of the few methods of direct support for industry allowable under the EU's single market rules. During 2006 the Scottish Executive and the Regional Development Agencies continued to offer support to a number of businesses in the sector. The 285 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Scottish Executive confirmed that it would provide a £9 million grant towards the construction of a 500,000 tonne biodiesel plant at Grangemouth, due to come on stream in 2008. Support for all RES Bioenergy Capital Grants scheme Funds are reserved from the New Opportunities Fund for new capital grants for investments in energy crops/biomass power generation (at least £33 million (EUR 53 million) over three years), for small-scale biomass/CHP heating (£3 million or EUR 5 million), and planting grants for energy crops (£29 million or EUR 46 million for a period of seven years). A £50 million (EUR 72.5 million) fund is available for the development of wave and tidal power, the Marine Renewables Deployment Fund. The UK published a Biomass Strategy in May 2007 alongside the Energy White Paper. The UK Biomass Strategy has been developed by Department for Trade and Industry (now BERR) and DEFRA to achieve carbon savings from biomass, while complying with EU policies. Bioenergy Action Plan The Government published an action plan in April 2006. Key highlights include: • The launch of a new five-year capital grant scheme for biomass heat and biomass Combined Heat and Power (CHP) systems at the end of December 2006. • Confirmation that proposals for a new Energy Crops Scheme are to be included within the Rural Development Programme for England 2007. • A set of regional maps identifying opportunities and optimum sitings for energy crops (short rotation coppice (SRC) and miscanthus) were published on Defra’s website in May 2007 • A mapping exercise accessing the suitability of the Defra estate for conversion to biomass heating was undertaken. The mapping exercise is currently being rolled out to other Government Departments. Annex I RES electricity Potentials Annex II RES Bioenergy Potentials 286 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Sources: European Commission Factsheets by Country http://ec.europa.eu/energy/energy_policy/facts_en.htm Member States Reports in the framework of the Directive 2001/77/EC on renewable electricity http://ec.europa.eu/energy/res/legislation/electricity_member_states_en.htm Member States Reports in the framework of the Directive 2003/30/EC on biofuels http://ec.europa.eu/energy/res/legislation/biofuels_members_states_en.htm Energy Trends. National Statistics Publication. Department of Business enter[rice and regulatory reform. Uk energy White Paper. EurObserv’er Barometer http://www.energies-renouvelables.org/observ-er/sig/eufores/sig.asp In the framework of the EU co –funded project: RES 2020: Monitoring and Evaluation of the RES Directives implementation in EU27 and policy recommendations to 2020 The sole responsibility for the content of this Publication lies with the authors. It does not represent the opinion of the Community. The European Commission is not responsible for any use that may be made of the information contained therein. Drafted March: 2008 287 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential Annex I RES electricity Potentials Description Unit 2005 2010 2015 2020 Total Wind Maximum Wind onshore Maximum Wind offshore Maximum PV Maximum solar thermal Total Hydro Maximum conventional hydro of which Maximum run of river Maximum Pumped Storage hydro Maximum Tide & Wave power plants Maximum geothermal conventional power plants Maximum geothermal hot dry rock power plants Maximum biomass power plants (conventional+CHP) Maximum biogas power plants (conventional+CHP) Maximum municipal waste power plants (CHP) MW MW MW TWh MW MW MW MW MW 1460 1246 214.0 8900 5080 3820 16979 11159 5820 4248 1460 0 2788 4237 1409 0 2828 26087 18267 7820 4.32 0 4237 1409 0 2828 TWh 58.9 MW 0 MW 0 TWh 1.6 36.99 TWh 4.7 16.32 TWh 1.0 4.09 2025 2030 13805 12249 1556 4237 1409 0 2828 The previous table present the data that have been gathered in the framework of the RES2020 project in order to be used in the modelling. The data have been collected • Through EREC and its Members • Through a revision of previous EU funded projects and reports (GreenX, OPTRES) • Through the partners of the project The data have been discussed in the framework of the REWG of the EnR with the country experts. The tables present an estimation of the technical potential that could be utilized as an upper bound by 2010, 2015, 2020 and 2030. As technical potential we are considering: • the future installed capacity of wind turbines without taking in mind financial issues at a "reasonable" wind speed as a possible upper limit in the development of the installed capacity over time. • the future installed capacity of hydro considering technical issues only and a possible upper limit in the development of the installed capacity over time. For some technologies potential may be unlimited (e.g. photovoltaics), so we are using upper bound limits within the relevant time frames. 288 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential TABLE 1 Potentials agricultural bioenergy Description Sugar crops: sugar beet Step 1 Step 2 Step 3 Step 4 Starch crops: rye, oats, maize, wheat, barley, etc Step 1 Step 2 Step 3 Step 4 Grassy crops: switchgrass, miscanthus, sweet sorghum, etc Step 1 Step 2 Step 3 Step 4 Woody crops: willow, poplar Step 1 Step 2 Step 3 Step 4 Oil crops: sunflower, rapeseed Step 1 Step 2 Step 3 Step 4 Annex II RES Bionergy Potentials Unit LimType 2000 2001 2005 2010 2015 2020 2025 2030 Potential Cost Potential Cost Potential Cost Potential Cost [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] UP 68,0 9,7 68,0 9,7 68,0 9,7 90,0 9,34 105,0 9,05 120,0 8,78 136,0 8,55 152,0 8,35 Potential Cost Potential Cost Potential Cost Potential Cost [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] UP 38,0 11,0 38,0 11,0 38,0 11,0 51,0 10,41 59,0 9,89 68,0 9,45 77,0 9,07 86,0 8,74 Potential Cost Potential Cost Potential Cost Potential Cost [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] UP 115,0 10,9 115,0 10,9 115,0 10,9 169 11,5 208 11,3 247 11,1 290 10,9 334 10,7 Potential Cost Potential Cost Potential Cost Potential Cost [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] UP 97,0 5,5 97,0 5,5 97,0 5,5 140,0 5,8 171,0 5,73 201,0 5,62 234,0 5,53 268,0 5,44 Potential Cost Potential Cost Potential Cost Potential Cost [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] [PJ/a] or [Ha] [€/GJ] UP 34,0 10,4 34,0 10,4 34,0 10,4 45,0 10,1 52,0 9,8 60,0 9,6 68,0 9,3 76,0 9,1 Source UP UP UP UP UP UP UP UP UP UP UP UP UP UP UP 289 RES2020 – Reference Document on Renewable Energy Sources Policy & Potential TABLE 2 Potentials bioenergy from wastes Description Agricultural waste Unit LimType Potential Cost [PJ/a] [€/GJ] UP Potential Cost [PJ/a] [€/GJ] UP Potential Cost [PJ/a] [€/GJ] Potential Cost 2000 2001 2005 2010 2015 2020 2025 2030 Source 90 96 103 EEA Report 7 2006 DTI (2007): UK Biomass Strategy 2007 - Working Paper 1 – Economic analysis of biomass energy. 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