May 08 Fernando Nuño European Copper Institute [email protected] Analysis of EU Directive proposal on the promotion of the use of energy from renewable sources I - Focus on RE use
Jul 27, 2015
May 08
Fernando Nuño
European Copper Institute
Analysis of EU Directive proposal on the promotion of the use of energy from renewable sourcesI - Focus on RE use
www.leonardo-energy.org
OBJECTIVES of the Directive
Economic growth, competitiveness, regional and rural development
▼ CO2▼ CO2
▲ Sustainable Development
▲ Sustainable Development
▲ Security Of Supply
▲ Security Of Supply
▲ Knowledge based Industry
▲ Knowledge based Industry
Climate change mitigation, compliance with international commitments (Kyoto and upcoming)
Energy imports threatens SoS, implies higher prices. Energy efficiency and renewable energy have wide benefits
RE sources: indigenous, do not rely on the future availability of conventional sources of energy, decentralised, less vulnerable to volatile energy supply
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TARGETS and APPLICATION FIELDS
20% share of RE sources in final energy consumption*
20% share of RE sources in final energy consumption*
10% share of biofuels10% share of biofuels
ELECTRICITY*
HEATING & COOLING*
TRANSPORT
* Final energy consumption is calculated as the sum of electricity, heating & cooling and transport (beyond 10% biofuels share)
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0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%
SwedenLatvia
FinlandAustria
PortugalDenmark
EstoniaSloveniaRomania
FranceLithuania
SpainGermany
GreeceItaly
BulgariaIrelandPoland
United KingdomNetherlands
Slovak RepublicBelgium
Czech RepublicCyprus
HungaryLuxembourg
Malta
2005
2020
Target SHARE among Member States
Equal increase in each Member State's share weighted by their Gross Domestic Product
Equal increase in each Member State's share weighted by their Gross Domestic Product
Starting point : 2005Starting point : 2005
20%
10% share of BIOFUELS : same
level for each Member State
10% share of BIOFUELS : same
level for each Member State
RENEWABLE ENERGYRENEWABLE ENERGY
8.5%
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Consistency with previous and current REGULATIONS
Need to bring the next generation of RE technologies to market competitiveness
Directive 2001/77/ECDirective 2001/77/EC
Directive 2003/30/ECDirective 2003/30/EC
Greenhouse gas regulations
Greenhouse gas regulations
European Strategic Energy Technology
Plan
European Strategic Energy Technology
Plan
Target : 21% of electricity produced from RE sources by 2010 (expected 19% achievement)
Update of national greenhouse gas emissions targets Directive to improve EU emissions trading system
Target : 5.75% share of biofuels in transport by end 2010 (expected 4.2 achievement)
Directive 2002/91/ECDirective 2002/91/EC Energy performance of buildings
Targets and reporting should remain into force until end of 2011.
Provisions that overlap with the new Directive should be deleted
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NATIONAL ACTION PLANS
Each Member State shall adopt a
NATIONAL ACTION PLAN
Each Member State shall adopt a
NATIONAL ACTION PLAN
31 March 2010Member States notify
their NAP to the Commission
31 March 2010Member States notify
their NAP to the Commission
Indicative TrajectoryIf fallen below, shall submit a new NAP
Indicative TrajectoryIf fallen below, shall submit a new NAP
25% 25%
35% 35%
45% 45%
65% 65%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Indicative Trajectory
2020 Target
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ACCOUNTING for RE share in final consumption
No Pumped Storage Multi-fuel plants : only the part produced from RE Hydropower : [average productivity over the last 15 years] x
[installed capacity on the accounting year]
No passive energy systems Heat pumps using energy:
– From ground / water– Air : compliant with Eco-labelling
If produced in 3rd countries:– Consumed in the Community– Installation operational after entry into force of Directive
– Electricity issued with EU compliant Guarantee of Origin
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Each Member State designates aSingle Competent Body
Each Member State designates aSingle Competent Body
NATIONALREGISTER
NATIONALREGISTER
GUARANTEES OF ORIGIN
Heating & Cooling : Plant capacity > 5 MWth Heating & Cooling : Plant capacity > 5 MWth
Relate to the RE generated in a given calendar year.GoO are issued, at the latest, three months after the end of that year
Relate to the RE generated in a given calendar year.GoO are issued, at the latest, three months after the end of that year
Issued on response to a request from a producer of RE
Issued on response to a request from a producer of RE
Issues, records transfers and cancels GoO
Issues, records transfers and cancels GoO
Electricity Heating & Cooling
Energy Source Hydro
Identity Arlanza MHPLocation E-09346Type Mini-hydroCapacity 600 kWOperational from 10/10/2009
Issued on: 01/02/2011Issued in: SpainUnique Id Number E-2010-MH-54213
Investment aid :
TypeIDAE(national)
Junta CyL(regional)
Amount 10 k€ 5 k€
1 MWh1 MWh
Issu
ed, t
rans
ferre
d an
d ca
ncel
led
elec
troni
cally
Issu
ed, t
rans
ferre
d an
d ca
ncel
led
elec
troni
cally
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SCHEMES for national PROMOTION of RE
SUPPORTprogram
SUPPORTprogram
OBLIGATIONto Power Producers and H&C Producers
OBLIGATIONto Power Producers and H&C Producers
OBLIGATIONto Energy Suppliers or to Energy Consumers
OBLIGATIONto Energy Suppliers or to Energy Consumers
Feed-in Tariffs (guaranteed xx €/MWh produced during yy years)
Power and H&C Producers have to justify xx% generation from RE sources
Either they build their own RE plants, or they buy the required amount of Guarantees of Origin
Calls for tenders
Premium payments (additional payment to market price, guaranteed during yy years)
Tax Reductions
Energy Suppliers or Energy consumers have to prove xx% of RE origin in its final energy consumption (through Guarantees of Origin)
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Single Competent BodySingle Competent Body
NATIONALREGISTER
NATIONALREGISTER
Mechanics of Guarantees Of Origin : 1 - ISSUING
GoGGoG
RE installation having produced 1 MWh in a given calendar year
RE installation having produced 1 MWh in a given calendar year
RE Producer requests his GoO
RE Producer requests his GoO
GoO is issued and registered in National Register for further use (either cancellation or transfer)
GoO is issued and registered in National Register for further use (either cancellation or transfer)
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Single Competent BodySingle Competent Body
NATIONALREGISTER
NATIONALREGISTER
Mechanics of Guarantees Of Origin : 2 – a CANCELLING under a SUPPORT PROGRAM
RE Producer submits his issued GoO
RE Producer submits his issued GoO
GoO issued and registered in National Register related to a
single producer
GoO issued and registered in National Register related to a
single producer
Competent Body in charge of registering RE
production related to SUPPORT PROGRAM
Competent Body in charge of registering RE
production related to SUPPORT PROGRAM
RE Producer gets the support aid (feed-in tariff, premium payment…)
RE Producer gets the support aid (feed-in tariff, premium payment…)
GoO is cancelled from National Register where initially issued and submitted to the Support Program
Competent Body
GoO is cancelled from National Register where initially issued and submitted to the Support Program
Competent Body
The number of cancelled GoO will be used for accounting the RE share of the Member State
GoGGoGGoG
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Single Competent BodySingle Competent Body
NATIONALREGISTER
NATIONALREGISTER
Mechanics of Guarantees Of Origin : 2 – b CANCELLING under an OBLIGATION SCHEME
RE Producer sells his issued GoO
RE Producer sells his issued GoO
GoO issued and registered in National Register related to a
single producer
GoO issued and registered in National Register related to a
single producer
Competent Body in charge of registering production to comply with OBLIGATION
SCHEME
Competent Body in charge of registering production to comply with OBLIGATION
SCHEME
Producer 2 complies with his obligation
Producer 2 complies with his obligation
GoO is cancelled from National Register where initially issued and
submitted to the Obligation Scheme Competent Body
GoO is cancelled from National Register where initially issued and
submitted to the Obligation Scheme Competent Body
Producer 2 having to comply with xx% of RE share, buys the
GoO to RE producer
Producer 2 having to comply with xx% of RE share, buys the
GoO to RE producer
€€€
Mechanism would be similar for Energy Suppliers or Energy
Consumers subject to OBLIGATION
GoGGoGGoG
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Mechanics of Guarantees Of Origin : 3 – TRANSFERING between Member States
25% 25%
35% 35%
45% 45%
65% 65%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Indicative Trajectory
2020 Target
If RE share exceeds the indicative trajectory, GoO can
be transferred to another Member State
If RE share exceeds the indicative trajectory, GoO can
be transferred to another Member State
EX-POSTMechanism
EX-POSTMechanism
EX-ANTEMechanism
EX-ANTEMechanism
Member States may provide for a system of PRIOR
AUTHORISATION for the transfer of GoO to or from persons in other Member
States
Member States may provide for a system of PRIOR
AUTHORISATION for the transfer of GoO to or from persons in other Member
States
Has to be justifiedHas to be justified
Energy Installations have to be operational after the date
of entry of Directive
GoO transfers can be accompanied by physical
energy transfer or not
The Commission will carry out an assessment of the implementation,
costs and benefits by Dec 2014
Any intention has to be notified to the Commission, which will
publish that information
Any intention has to be notified to the Commission, which will
publish that information
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Administrative Procedures, Regulations and Codes (I)
PROCEDURES Authorisation, Certification
and Licensing
PROCEDURES Authorisation, Certification
and LicensingTECHNICAL
SPECIFICATIONS
TECHNICAL SPECIFICATIONS
BUILDINGregulations
BUILDINGregulations
Guidelines for National, Regional and Local coordination
Responsibilities clearly defined
Rules objective, transparent and non-discriminatory
Lighter process for smaller projects
Precise deadlines for planning approval
Administrative charges transparent and cost-related
Shall require the use of minimum levels of RE
Exemptions : low energy buildings and local limitations
Promotion of equipment that achieve significant reduction of energy consumption
Regulated conversion efficiencies : 70% to 85% for biomass, 35% for solar energy, eco-labelling 2007/742/EC
To benefit from support schemes, equipments and systems have to comply with.
Related as much as possible to existing European Standards (eco-label, energy label…)
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Administrative Procedures, Regulations and Codes (II)
Commission Suggestion
Commission Suggestion
Member States will carry out detailed reporting to the Commission Commission asks to Member States whether they intend to :
– Establish a single administrative body responsible for processing authorisation, certification and licensing– Provide for automatic approval of planning and permit application where the authorising body has not responded within the time limits– Indicate geographical location suitable for exploitation from RE and for the establishment of district heating and cooling
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ACCESS to Electricity Grid
Infrastructure Development
Infrastructure Development
Member States shall take the necessary steps to develop grid infrastructure
Including interconnections between Member States
Priority Access to the Grid
Priority Access to the Grid
Provide physical access Priority in dispatching generation
Assuming Grid development costs
Assuming Grid development costs
TSO and DSO will publish standard rules relating to the bearing and sharing the costs of grid connections and reinforcements Rules objective, transparent and non-discriminatory :
– Taking into account initial and subsequent benefits derived from new connections– Taking into account producers located in peripheral regions– May provide for different types of connection
Consistency with T&D fees
Consistency with T&D fees
RE should not be discriminated when charged for T&D (especially in peripheral regions)
Fees are to be cost and benefit reflective
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REPORTING by Member States
RE ASSESSMENTSRE ASSESSMENTS
Sectoral and overall shares in view to comply with indicative trajectory
Assessment on Support schemes functioning
Promoted RE applications with higher costs (such as biofuels made from wastes)
Assessment on Guarantees of Origin functioning
Assessment on Administrative Procedures Efficiency in removing regulatory and non-regulatory barriers
Assessment on Ensuring T&D
Improvement of rules for bearing and sharing costs
BIOFUELBIOFUEL
Various statistical reports and assessments on share, impact on land use, biodiversity, water resources…*
REPORTSREPORTS
Estimated net greenhouse gas savings due to the use of RE
30 J
une
2011
2013
, 201
5, 2
017,
201
930
Jun
e 20
1120
13, 2
015,
201
7, 2
019
* Will be further developed in a dedicated presentation
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INFORMATION and TRAINING
Information on SUPPORT MEASURES
Information on SUPPORT MEASURES
Made available by Member States to the broad public (consumers, builders, installers, architects…)
Information on BENEFITS, COSTS and ENERGY EFFICIENCY
Information on BENEFITS, COSTS and ENERGY EFFICIENCY
Of equipment and systems for the use of electricity, heating and cooling from renewable sources
CERTIFICATION schemes
CERTIFICATION schemes
For installers of small-scale RE:– Biomass boilers and stoves– Solar Photovoltaic and Thermal systems– Heat pumps
GUIDANCE for PLANNERS and ARCHITECTS
GUIDANCE for PLANNERS and ARCHITECTS
Objective : consider the use of RE and district heating & cooling when planning, designing, building and renovating industrial or residential areas
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QUESTIONS & ANSWERS
http://ec.europa.eu/energy/climate_actions/doc/2008_res_directive_en.pdf
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Cost of promotion of renewable energy
Wind – Suitable location
Wind – 2nd
range location
MW
Cost (€/MWh)
Biogas
Biomass
Solar
National Target
National Target
Available GoO to be offered to 3rd parties
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Cost of promotion of renewable energy
Wind – Suitable location
Wind – 2nd
range location
MW
Cost (€/MWh)
Biogas
Biomass
Solar
National Target
National Target
Available GoO to be offered to 3rd parties
Wind – Suitable location
Wind – 2nd
range location
MW
Cost (€/MWh)
Biogas
Biomass
National Target
National Target
Required GoO to be acquired by tranferring
Member State 1 : rich in Renewable Sources
Member State 1 : rich in Renewable Sources
Member State 2 : poor in Renewable Sources
Member State 2 : poor in Renewable Sources
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0
5
10
15
20
25
30
35
40
45
50
c€/
kW
hA
ño
s
Tarifa
Prima
Años subvención
Guiding technology mix (I) – Spanish model
Feed-in Tariffs+ Volume Targets
Feed-in Tariffs+ Volume Targets
Different technologies need different subsidy level to reach market competitiveness
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0371
20.155
2.000
2711803651.339
11
12.858
6.779
409 3502501.317
2.400
500
9.215
0
5.000
10.000
15.000
20.000
25.000
MW
Potencia Instalada
Potencia Objetivo
Guiding technology mix (II) – Spanish model
Feed-in Tariffs+ Volume Targets
Feed-in Tariffs+ Volume Targets
Volume objectives for a time period
Installed power on Nov 07Installed power on Nov 07
2010 Target2010 Target
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Guiding technology mix (III) – Market based model
SOLAR PV GoOSale @ 26 c€/kWh
SOLAR PV GoOSale @ 26 c€/kWh
WIND GoOSale @ 3 c€/kWh
WIND GoOSale @ 3 c€/kWh
Producer having to comply with xx% of RE share, has to buy GoO
to RE producers…
Producer having to comply with xx% of RE share, has to buy GoO
to RE producers…
BIOGAS GoOSale @ 11 c€/kWh
BIOGAS GoOSale @ 11 c€/kWh
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GRID ACCESS
GRID DEVELOPMENTGRID DEVELOPMENT
T&D structure evolves from centralized system to distributed generation system It needs investments in T&D network Need to be supported and organized by Member States
GoO transferGoO transfer In case of GoO transfer, the buying Member State will
participate to grid development? How to internalize the grid development cost in the GoO price transfer?
FEEDBACK FROM THE FIELD. THE BARRIERS– When the capacity of an evacuation line is
saturated, a revamp of the distribution system is required. The charge cannot be fully supported by the new entrant, but shared among all the future users of the line. The investment cost of revamping should be advanced by Member State (RE developer only pays proportionally to its use)
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DISPATCHING PRIORITY
DISPATCHING PRIORITY
DISPATCHING PRIORITY
Some TSO start to ask to RE generators some storage capacity (i.e. CSP in Spain) as necessary condition to be dispatched
Guidelines should be homogeneous among Member States Guidelines should not create discrimination among technologies Dispatching capability should be encouraged but not imposed
Thermal Storage Tanks in Andasol CSP power plant (Spain)