The EU Renewables Directive

May 08 Analysis of EU Directive proposal on the promotion of the use of energy from renewable sources Fernando Nuño European Copper Institute [email_address]

OBJECTIVES of the Directive Economic growth, competitiveness, regional and rural development ▼ CO2 ▲ Sustainable Development ▲ Security Of Supply ▲ Knowledge based Industry Climate change mitigation, compliance with international commitments (Kyoto and upcoming) Energy imports threatens SoS, implies higher prices. Energy efficiency and renewable energy have wide benefits RE sources: indigenous, do not rely on the future availability of conventional sources of energy, decentralised, less vulnerable to volatile energy supply

TARGETS and APPLICATION FIELDS 20% share of RE sources in final energy consumption* 10% share of biofuels ELECTRICITY* HEATING & COOLING* TRANSPORT NEW * Final energy consumption is calculated as the sum of electricity, heating & cooling and transport ( beyond 10% biofuels share )

Target SHARE among Member States Equal increase in each Member State's share weighted by their Gross Domestic Product Starting point : 2005 20% 10% share of BIOFUELS : same level for each Member State RENEWABLE ENERGY 8.5%

Consistency with previous and current REGULATIONS Need to bring the next generation of RE technologies to market competitiveness Directive 2001/77/EC Directive 2003/30/EC Greenhouse gas regulations 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/EC Energy performance of buildings Targets and reporting should remain into force until end of 2011. Provisions that overlap with the new Directive should be deleted

NATIONAL ACTION PLANS Each Member State shall adopt a NATIONAL ACTION PLAN 31 March 2010 Member States notify their NAP to the Commission Indicative Trajectory If fallen below, shall submit a new NAP

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 3 rd countries: Consumed in the Community Installation operational after entry into force of Directive Electricity issued with EU compliant Guarantee of Origin

GUARANTEES OF ORIGIN Each Member State designates a Single Competent Body NATIONAL REGISTER 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 Issued on response to a request from a producer of RE Issues, records transfers and cancels GoO 1 MWh Issued, transferred and cancelled electronically

SCHEMES for national PROMOTION of RE SUPPORT program OBLIGATION to Power Producers and H&C Producers OBLIGATION to 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)

Mechanics of Guarantees Of Origin : 1 - ISSUING Single Competent Body NATIONAL REGISTER GoG RE installation having produced 1 MWh in a given calendar year RE Producer requests his GoO GoO is issued and registered in National Register for further use (either cancellation or transfer)

Mechanics of Guarantees Of Origin : 2 – a CANCELLING under a SUPPORT PROGRAM Single Competent Body NATIONAL REGISTER RE Producer submits his issued GoO GoO issued and registered in National Register related to a single producer Competent Body in charge of registering RE production related to SUPPORT PROGRAM 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 The number of cancelled GoO will be used for accounting the RE share of the Member State GoG GoG

Mechanics of Guarantees Of Origin : 2 – b CANCELLING under an OBLIGATION SCHEME Single Competent Body NATIONAL REGISTER RE Producer sells his issued GoO GoO issued and registered in National Register related to a single producer Competent Body in charge of registering production to comply with OBLIGATION SCHEME Producer 2 complies with his obligation 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 € € € Mechanism would be similar for Energy Suppliers or Energy Consumers subject to OBLIGATION GoG GoG

Mechanics of Guarantees Of Origin : 3 – TRANSFERING between Member States If RE share exceeds the indicative trajectory, GoO can be transferred to another Member State EX-POST Mechanism EX-ANTE Mechanism 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 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

Administrative Procedures, Regulations and Codes (I) PROCEDURES Authorisation, Certification and Licensing TECHNICAL SPECIFICATIONS BUILDING regulations Guidelines for National, Regional and Local coordination Responsibilities clearly defined Rules objective, transparent and non-discriminatory Lighter process for smaller projects Precise deadlines for planning approval Administrative charges transparent and cost-related Shall require the use of minimum levels of RE Exemptions : low energy buildings and local limitations Promotion of equipment that achieve significant reduction of energy consumption Regulated conversion efficiencies : 70% to 85% for biomass, 35% for solar energy, eco-labelling 2007/742/EC To benefit from support schemes, equipments and systems have to comply with. Related as much as possible to existing European Standards (eco-label, energy label…)

Administrative Procedures, Regulations and Codes (II) Commission Suggestion Member States will carry out detailed reporting to the Commission Commission asks to Member States whether they intend to : Establish a single administrative body responsible for processing authorisation, certification and licensing Provide for automatic approval of planning and permit application where the authorising body has not responded within the time limits Indicate geographical location suitable for exploitation from RE and for the establishment of district heating and cooling

ACCESS to Electricity Grid Infrastructure Development Member States shall take the necessary steps to develop grid infrastructure Including interconnections between Member States Priority Access to the Grid Provide physical access Priority in dispatching generation 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 RE should not be discriminated when charged for T&D (especially in peripheral regions) Fees are to be cost and benefit reflective

REPORTING by Member States RE 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 BIOFUEL Various statistical reports and assessments on share, impact on land use, biodiversity, water resources…* REPORTS Estimated net greenhouse gas savings due to the use of RE 30 June 2011 2013, 2015, 2017, 2019 * Will be further developed in a dedicated presentation

INFORMATION and TRAINING Information on SUPPORT MEASURES Made available by Member States to the broad public (consumers, builders, installers, architects…) Information on BENEFITS, COSTS and ENERGY EFFICIENCY Of equipment and systems for the use of electricity, heating and cooling from renewable sources CERTIFICATION schemes For installers of small-scale RE: Biomass boilers and stoves Solar Photovoltaic and Thermal systems Heat pumps GUIDANCE for PLANNERS and ARCHITECTS Objective : consider the use of RE and district heating & cooling when planning, designing, building and renovating industrial or residential areas

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

Guiding technology mix (I) – Spanish model Feed-in Tariffs + Volume Targets Different technologies need different subsidy level to reach market competitiveness

Guiding technology mix (II) – Spanish model Feed-in Tariffs + Volume Targets Volume objectives for a time period Installed power on Nov 07 2010 Target

Guiding technology mix (III) – Market based model SOLAR PV GoO Sale @ 26 c€/kWh WIND GoO Sale @ 3 c€/kWh Producer having to comply with xx% of RE share, has to buy GoO to RE producers… BIOGAS GoO Sale @ 11 c€/kWh

GRID ACCESS GRID 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 transfer In case of GoO transfer , the buying Member State will participate to grid development? How to internalize the grid development cost in the GoO price transfer? FEEDBACK FROM THE FIELD. THE BARRIERS When the capacity of an evacuation line is saturated, a revamp of the distribution system is required. The charge cannot be fully supported by the new entrant, but shared among all the future users of the line. The investment cost of revamping should be advanced by Member State (RE developer only pays proportionally to its use)

DISPATCHING PRIORITY DISPATCHING PRIORITY Some TSO start to ask to RE generators some storage capacity (i.e. CSP in Spain) as necessary condition to be dispatched Guidelines should be homogeneous among Member States Guidelines should not create discrimination among technologies Dispatching capability should be encouraged but not imposed Thermal Storage Tanks in Andasol CSP power plant (Spain)

The EU Renewables Directive

More Related Content

What's hot (20)

Viewers also liked (6)

Similar to The EU Renewables Directive (20)

More from Leonardo ENERGY (20)

Recently uploaded (20)

The EU Renewables Directive