Efficient and Sustainable Use of Biomass for Energy Jacob Møller Chief Advisor Delegation from Vietnam 25 October 2013.

Efficient and Sustainable Use of Biomass for Energy

Jacob MøllerChief Advisor

Delegation from Vietnam25 October 2013

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Production of Renewable Energy1980-2011

0

20

40

60

80

100

120

140

1990 '95 '00 '05 '11

PJ

Wind Straw Wood Biogas Waste Heat pumps

280 Biomass Plants in Denmark

Wood or straw: • 200 district heating plants• 15 CHP plants

Biogas:• 33 CHP

Municipality Solid Waste:• 24 CHP plants• 8 district heating plants

12% of the electricity consumption and 26% of space heat consumption from biomass, incl. organic waste.

District Heating Production by Fuel

District Heating = Heat supply for 62 pct. of all houses. 26% of all houses in Denmark are heated by biomass-based DH

Biomass exempted

from energy tax

0%

20%

40%

60%

80%

100%

1990 '95 '00 '05 '11

Oil Natural gas Coal Renewable energy and waste

Financial Support for RE-Electricity (2012)

Favourable prices for electricity shall double the share of RE-electricity in 10 years to about 70 pct. by 2020. Wind power: Large-scale wind farms are promoted by public tenders – lowest sales price per kWh is main criteria. Local small-scale wind projects promoted by fixed premium on top of market price (3.4 €-cent/kWh for averagely half of the wind turbines production). Biomass: Producers receive fixed premium on top of market price (2 €-cent/kWh). Solar PV: Net metering scheme – can in popular terms let the electricity meter run in reverse. Fixed tariff for produced electricity, which exceeds consumption (per hour).

Average direct financial support in 20 years. Grid costs not included.

The financial support is PSO and paid by the electricity consumers.

€-ce

nt p

er k

Wh

Financial Support to Renewable Electricity (2012)

New energy agreement (2012)

From coal to biomass in large scale CHP’s (will supply maybe 1/6 of total electricity demand by 2020). Better possibilities to share tax exemption on heating

More renewable energy in industry

Future Development of Renewable Energy

Energy Agreement50% from wind power in 2020

60% from biomass in 2020

Study on sustainable and efficient use of biomass

The scope for the study is broad

The issue of carbon debt

Results from JRC study

Sustainable biomass in a climate perspective?• Forest residues nearly carbon neutral

• Waste, waste wood, industrial residues even better

• Other types of wood from forest: not all forests are equal

• Long-term: strengthen climate convention to account for CO2 from all land uses in all sectors of all countries (also for iLUC)