Policy Reforms to Promote Energy Efficiency and Renewable ... · PDF fileThe Seminar on Policy...

Ministry of Economy, Labour and Entrepreneurship1

The Seminar on Policy Reforms to Promote Energy Efficiency

and Renewable Energy Investments

7-9 October 2009, Geneva

Policy Reforms to Promote Energy Efficiency

and Renewable Energy Investments in Croatia

Domagoj Validžić

Head of RES Division

Ministry of Economy, Labour and Entrepreneurship


Primary Energy SupplyTotal primary energy supply in 2007: 416,78 PJ

• Electricity 5,5%• Hydro power 10,1%,• Natural Gas 27,4%, • Liquid Fuels 45,5%, • Biomass 3,2%• Coal and Coke 8,1%

Total primary energy productionin 2007 from own production was 46,9%, and total energy import was 53,1%.

Slika 2.4.1. Ukupna potrošnja energije u HrvatskojFigure 2.4.1. Total Primary Energy Supply in Croatia

0

100

200

300

400

500

600

700

1988

.

1990

.

1995

.

2000

.

2005

.

2007

.

2010

.

2015

.

2020

.

2025

.

2030

.

PJ

Ugljen i koks - Coal and coke Drvo i biomasa - Biomass Tekuća goriva - Liquid Fuels Prirodni plin - Natural Gas Vodne snage - Hydro Power Električna energija - Electricity Obnovljivi izvori - Renewables


Primary Energy Future estimationsExpected influences in future energy balance:

More than 50% increase in energy consumption till 2030Depleting reserves and increased prices of Crude Oil and NaturalGasDiversification of sources (gas to gas and oil to oil competition)Increased competitiveness of RES

Expected energy balance in 2030:Production (40%): Renewables 23,6%,

Hydro power 31,9%,Natural Gas 15,4%, Crude Oil 9,5%, Biomass 19,6%

Import (60%)


RES in Croatia - general

Significant potential – wind, biomass, solar,...Best options for RES use in Croatia in terms ofcompetitiveness and potential contribution to thenational energy balance sheet:

biomass heat plants and solar thermal collectors for heatproductionwind farms and biomass cogeneration for electricitygenerationliquid biofuels for transport

Other RES technologies - geothermal energy for heat, small hydro, geothermal cogeneration and solar PV for electric energy generation


Croatian RES policy

Programs, measuresprojects

1. Governmental2. Regional/local self-

government3. National energy

programmes

Economic instruments

1. Fund for

Environmental

Protection and

Energy Efficiency

2. State aids

3. Special

EU&inerntl.

projects: CARDS,

IPA, CIP/IEE,

GEF-UNDP-WB,

CBRD

Regulatory framework

1. Directive 2001/77/EC on the promotion of electricity produced of electricity produced from RES in the internal electricity market

2. Directive 2003/30/EC on the promotion of the use of biofuels or other renewable fuels for transport

3. New Directive 2009/28/EC -2020 RES target

RENEWABLE ENERGY SOURCES



www.mingorp.hr monitors implementation and compliance with set targets

for RES and CHP

Environmental Protection and Energy Efficiency Fund

www.fzoeu.hr financing preparation, implementation and development of

programs, projects and similar undertakings in the field of RES and EE

Croatian Energy Regulatory Agency www.hera.hrresponsible for granting energy permits and granting the status of eligible producers

Croatian Energy Market Operator www.hrote.hrresponsible for the collection and distribution of incentives and concluding contracts

on buy-out of electricity with eligible producers that realised the right to incentives

The System Operators www.hep.hr/ops, www.hep.hr/odsresponsible for connecting and taking deliveries of electricity from RES and CHP

Competent authority RES EE


The Energy Act The Energy Act

The Regulation on the Minimum

Share of Electricity

Produced from RES and CHP

whose Production is Incentivized

The Tariff System for

the Production

of Electricityfrom RES and CHP

Ordinance on

Acquiringthe Status

of an Eligible

ElectricityProducer

Grid Rules

The Ordinance

on the Amount of the Fee for Connection

Market Rules

The Electricity Market Act The Electricity Market Act

TheTarif Systems

Conditions for Energy

License

The Act on the The Act on the Regulation of Regulation of District District

HeatingHeating

Ordinance on the Use of RES and

CHP

Ordinance Ordinance on on

Privileged Privileged Status Status -- H H

PSTEPSTE

RegulatiRegulation on on on

Minimum Minimum Share Share PSTE PSTE

The Regulation on Fees for PromotingElectricity

Production from RES and CHP

General Conditions for Supply

of Electricity

RES: Legislative framework

5 sublaws OG 33/07 OG 67/07

Biofuel Law

Supporting sublaws


Registry of projects and plants for use of RES and CHP as excellent tool for sustainable energy

consumercommunity

consumercommunity

monitoringreporting

for EU

monitoringreporting

for EU

national authoritiescompaniesinstitucion(scientific,

educational ect.)

national authoritiescompaniesinstitucion(scientific,

educational ect.)

developmentagencies

spatial planing

developmentagencies

spatial planing

mediapublic

mediapublic

regional and localself-government

regional and localself-government

businesscommunitybusiness

community

REGISTRY OF

RES&CHPE/T/Bfocal point for policy for RES&CHP

REGISTRY OF

RES&CHPE/T/Bfocal point for policy for RES&CHP


About 247 projects

47%

cogeneration; 12; 3%

Biomass plants; 19; 5%

Biofules plants; 22; 6%

Small hydro power plants; 97; 26%

Power Plants On Landfill Gas And Gas From

Plant For Waste Water; 2; 1%Geothermal power plants; 1; 0% Solar power plants;

46; 12%

windparks; 180;

Actual status according to RES

issued: 240 PEA, 23 EA i 11 registration

Registry OIEKPP: www.mingorp.hr


http://releel.mingorp.hr – Web site


One of the strategic goals is improvement of energy efficiency in every part of energy sector

Primary energy intensity in Croatia is much

higher then EU-15 average (approximately

20 %) → significant potentials for

improvements!

Energy efficiency in Croatia


Programs, measuresprojects

1. Governmental2. Regional/local self-

government3. National energy

programmes

Economic

instruments1. Environmental

Protection and

Energy Efficiency

Fund

2. State aids

3. Special EU&inerntl.

projects: CARDS,

IPA, CIP/IEE, GEF-

UNDP-WB, CBRD

Regulatory framework

1. Directive on energy end-use efficiency & energy services ESD

2. Directive on the energy performance of buildings EPBD

3. Labelling of appliances Directive & Implementing Dir.

4. Cogeneration Directive (CHP)

5. Framework Directive on Eco-design

6. Minimum efficiency requirements

7. Energy Star Progr.

ENERGY

EFFICIENCY

Croatian EE policy - overview


transposed into the Croatian legislation through The Ordinance on energy efficiency labelling of

household appliances (OG 130/07)

Labelling of household appliances


Legislative and institutional briefly

Act on Efficient End-use of Energy already adopted and enforced

Secondary (implementing) regulation to be implemented in 2010 especially regulation on energy audits, M&V, IT system for monitoring energy savings and energy performance contracting in public sector

Institutional setupEE policy implementation responsibility of the Ministry and EE Unit within the Environmental Protection and Energy Efficiency Fund


Goals and outcomes of EEPRoC To obtain a well-documented EE strategy for Croatia:

Definition of short-, medium- and long-term quantified goals for EE improvements on the national level and separately, for every sectorIdentification of and elaboration on all prerequisites necessary for successful implementation of defined action plan, including identification of key stakeholders and definition of their role and responsibilities;List of eligible measures for achieving defined goals for every end-use sector: residential, services, industry, transport;Giving guidelines for monitoring and verification of achieved results in energy savings and reduction of greenhouse gasses.


Cross-sector and horizontal measuresCoordination of energy efficiency and climate change policy:

ensuring consistency between EEPRoC and National Strategy for implementation of UNFCCC and Kyoto protocol introduction of EU - ETS

Coordination of energy efficiency and RES policy:development of Action plan for RES

Taxation:comprehensive study and recommendations for usage of taxation systems for energy efficiency improvements

Promotion of innovative financing modes: investigation of potentials for development of ESCO models and 3rd party financing

Research & Development:evaluation of up-to-date activities and identification of needs for new projects


Cross-sector and horizontal measuresEducation:

inclusion of EE in education programmes for primary and high schools and universities

Info campaignsAuditing programmes:

training programmes for energy auditors Energy efficiency in buildings:

strengthening inspection capacitiesAppliance labelling:

info campaignstrengthening State inspectorate capacities, annual public reports

Energy consumption metering and informative billing:

prescribing the obligation for informative billing in the Act onefficient energy usedetermination of remaining barriers for individual metering and adoption of legal framework


Allocation of national target to end-use sectors

Industry22%

Transport30%

Households30%

Services11%

Agriculture4%

Construction3%

Industry13%

Transport34%

Households34%

Services12%

Agriculture4%

Construction3%

Energy used by sectors as a percentage of total final

energy consumption

Energy used by sectors as a percentage of energy

consumption within ESD

Total 19.77 PJ


Further activitiesRemoval of the remaining key barriers within RESauthorisation procedures, “repair” the related RES-Esub-lawsDevelopment and enactment of the secondary legislationand incentives for RES to heating/cooling systems: sollarthermal, biomass/pellet boiler, heat pumpsParticipation in EU programe and projects (IPA, INTEREG, CIP- IEE 2 etc) and int. cooperation UNDP/WB Enhancing administrative and institutional capacity in field of EE and RES, in particular in the MinistryDevelopment of guarantee of origin and green certificatesschemePromotion and education, increase of public awarenessConsideration and development of the new supportschemes (green certificates, white certificates, cost effectiveaproach etc.) after 2010 following the new RES targets by 2020


View ForwardEE RES requires policy support, especially in countries with not developed “culture” of energy efficiency, such as countries of South East EuropeConsideration of establish of the Centre of Exellence of Energy Efficiency and Renewable Energy in order to spread best-practice EE & RE policy and implementation concepts in Energy CommunityThe current development stage of EE market is the starting point for creation of policy instrument mixPolicy instruments have to trigger market transformation →move the EE market from the “deadlock”, i.e. to stimulate the demand for EE products and servicesUnderdeveloped EE markets are characterised by the lack of demand caused by lack of information and awareness →the need for strong information and education campaign for the wide public!


Key issue: Information and EducationEE Corner - Varaždin:


VE Krtolin – 11,95 MWe


Further informationTel: +385 1 6106 113

Fax:+385 1 6109 113

E-mail: [email protected]

www.mingorp.hr

Thank you for your attention !

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