Renewable Road MapDirectorate general for Energy and Transport Renewable Energies- A role to play in...

Renewable Road MapDirectorate general for Energy and Transport

Renewable Energies-A role to play in Europ.energy competitiveness?

DIng.Dr.Karl KellnerAdviser Dir D - DG TREN

OPEN DAYS10. October 2007

European Commission


Energy Policy for EuropeEnergy Policy for Europe

(Strategic Energy Review)(Strategic Energy Review)

Limiting Global ClimateLimiting Global Climate

ChangeChange to 2°Cto 2°C

A unilateral EU independent commitment of

at least 20% GHG emission reduction by 2020, compared to 1990 levels

And a 30% reduction if broader participation

STRATEGIC OBJECTIVE

INTEGRATING INTEGRATING

ENERGY & ENVIRONMENTENERGY & ENVIRONMENT


3

Competitiveness“LISBON”

•Renewable energy•Energy efficiency•Nuclear•Research and innovation•Emission trading

•International Dialogue•European stock management (oil/gas)•Refining capacity and energy storage •Diversification

•Internal Market•Interconnections (Trans-European networks) •European electricity and gas network•Research and innovation

•Clean coal•Carbon sequestration•Alternative fuels•Energy efficiency•Nuclear

Sustainable Development

“KYOTO” Security of supply„MOSCOW“

FULLY FULLY

BALANCED BALANCED

INTEGRATEDINTEGRATED

AND AND

MUTUALLY REINFORCEDMUTUALLY REINFORCED

I. THE THREE CHALLENGESI. THE THREE CHALLENGES


THE KEY DRIVERS 3x20% by 2020THE KEY DRIVERS 3x20% by 2020

By 2020 20% EU GHGBy 2020 20% EU GHG

20% by 202020% by 2020

EFFICIENCYEFFICIENCY

BIO-FUELSBIO-FUELS

10 % 202010 % 2020bindingbinding

HEATING &COOLINGHEATING &COOLING

NATIONAL TARGETS and ACTION PLANS NATIONAL TARGETS and ACTION PLANS

By 2020 20% RENEWABLES By 2020 20% RENEWABLES

E-E LECTRICITYE-E LECTRICITY


Status on legislative framework for Status on legislative framework for renewable energies in the EUrenewable energies in the EU

Directive 2001/77/EC on the promotion of electricity produced from renewable energy sources in the internal electricity market

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

Complete absence of legal framework for promotion of renewable energy in the heating and cooling sector


Status Quo on renewable energiesStatus Quo on renewable energies

Clear growth in electricity

The recent start of solid growth in biofuels

The slow growth rate for heating and cooling

The contribution of renewable energy (electricity, transport and heat) 1990-2004 (mtoe)

0

10

20

30

40

50

60

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

0

2

4

6

8

10

12

RES-H

RES-E (ex hydro, righthand scale)

RES-T (righthand scale)

Differences in legislative framework for electricity, biofuels, and heating and cooling established at EU level are reflected in the development of the three sectors:


Status Quo on renewable energiesStatus Quo on renewable energies

biofuels: uneven and slow growth in achieving share within MS

heating and cooling: slow growth rate absence of EU legislationno coordinated approachno consistency of support mechanismslack of appropriate policy and targetsadministrative barriers

Current contribution of biofuels and Heating & Cooling


The way forwardThe way forward

“ Climate change, increasing dependence on oil and other fossil fuels, growing imports, and rising energy costs are making our societies and economies vulnerable.

These challenges call for a comprehensive and ambitious response.”

overall 20% binding target of RES in gross inland consumption by 2020

minimum 10% binding target for biofuels of overall consumption of petrol and diesel by 2020

The targets


Overall EU target will be reflected in mandatory national targets (National Action Plans).

NAP shall contain sectoral targets and measures for achieving objectives in electricity, biofuels and heating and cooling

Proposals for legislation on targets, uptake of RES in the three sectors and monitoring mechanisms will be put forward in late 2007

Implementing the targets

The way forwardThe way forward


What are the impacts?What are the impacts?

Important benefits of reaching a 20% share of renewable energy in 2020

Annual CO2 emission savings of 600-900 Mt from 2020 onwards (€15 - €23 billion at 25€/t of CO2) and air quality benefits

Annual reduction in fossil fuel demand of 252 Mtoe from 2020 onwards, diversification and increase of domestically produced fuels

net increase in employment and small increase of 0,5% on GDP

keep the global leadership role of EU renewable energy. Maintain or increase current €20 billion turnover and 300.000 jobs created



Costs of reaching a 20% share of renewable energy in 2020

Annual additional costs vary according to finance mix, technology choice, research and competition within the sector and international prices for conventional energy sources

Additional cost Oil price by 2020 Technology/savings

€18 Bn $48/barrel Balanced mix

€10,6 Bn $78/barrel Balanced mix

Additional costs covered

$78/barrel Balanced & Carbon saving of 25€/T incl.


Cost reduction i.e. Wind power generation cost

European Wind Energy Technology Platform Launch Event Page 1

0.02

0.03

0.04

0.05

0.06

0.07

0.08

€/k

Wh

Source: RISØ

Wind power generation coston good wind locations contrary to conventional

energy sources and technologies there has been a significant reduction in the production cost of renewables

(50% in wind for last 15 years)



How do we get thereHow do we get there

0

200

400

600

800

1000

1200

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

RE

S-E

- e

ner

gy

ou

tpu

t [T

Wh

/yea

r]

Wind offshore

Wind onshore

Tide & wave

Solar thermal electricity

Photovoltaics

Hydro large-scale

Hydro small-scale

Geothermal electricity

Biowaste

Solid biomass

Biogas

Historical development Future development

Renewables growth: Electricity projections by 2020


How do we get thereHow do we get there

Renewables growth: Heating and cooling projections by 2020

0

20

40

60

80

100

120

140

19

97

19

98

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

20

14

20

15

20

16

20

17

20

18

20

19

20

20

RE

S-H

- e

ner

gy

ou

tpu

t [M

toe/

year

]

Solar thermalheat

Geothermal -heat pumps

Geothermal -non heat pumps

Biomass heat

Historical development Future development


Innovative Renewable energy

+

Energy efficiency Technologies

Communities

Large scale integration

Renewable energy sources

Eco-buildings

Polygeneration

Large scale integration of Renewable Large scale integration of Renewable Energy with demand managementEnergy with demand management

CONCERTO(FP7)CONCERTO(FP7)

Communities


Example of rural community Example of rural community and its boundaries and its boundaries

Concerto CommunityConcerto Community


““Contractor community” with Contractor community” with defined boundaries defined boundaries

PVplant

Windpowerplant

Houses with solar thermal and PV

StorageStorage

Local CHP plantNeighbourhood

CHP

Individual houses

Officebuildings

ESCO

Natural GasNatural Gas

ElectricityElectricity

Smallindustry

SMEs

Big industryBig industry

Green electricity

Green electricity

StorageStorage


1. Nordex GmbH, Germany

2. Global Green Energy ApS, Denmark

3. Paldiski Town Government, Estonia

4. Tallinn University of Technology, Estonia

5. Garrad Hassan, United Kingdom

Participants in 20 MW Participants in 20 MW

Wind project in Estonia(FP5)Wind project in Estonia(FP5)


The project focuses on the following issues:

Development, installation, test and measurement of the “PowerCrane” concept (life time maintenance and replacement of major components without mobile cranes)

Design, construction, test and measurement of different foundations (standard square, star and rock adaptor)

Demonstration of the new concepts by implementing a 20 MW wind farm at Paldiski, Estonia, based on a competitive large scale state of the art wind turbine

Implementation of a full scale measuring and verification programme

Dissemination of wind energy know-how in Estonia, the Baltic states and the Community

Description of the ProjectDescription of the Project


Pakri Wind Farm is established as a demonstration project

under the Joint Implementation scheme of the Kyoto Protocol which

foresees the sale of app. 0,5 million tons of greenhouse gas emission

reductions to the Finnish Republic. The project is among the very first

wind power projects of its kind in the World where the income from the

sale of carbon credits guarantees the economic feasibility of the

project

Pakri Wind Farm Pakri Wind Farm


Flanking measuresFlanking measures

Future additional actions I

1. fully implement the RES-E directive: lifting of administrative barriers. Simplifying permission procedures, conditions for grid access and extension. Eliminate red tape

2. propose legislation to optimise support in heating and cooling sector (administrative obstacles, inadequate distribution and building codes, market information)

3. develop the internal electricity market consistent with development of RES (transparency, unbundling, higher inter-connectors capacity)


Future additional actions II

4. re-examine MS support systems, assessment of performance and need to propose harmonised support schemes

5. proposal for an incentive/support system for biofuels in regard to environmental protection, and 2nd generation biofuels

6. promote RES in public procurement

7. pursue a balanced approach in free trade with biofuels

8. cooperate with grid authorities, regulators and renewable industry to enable better integration of RES into the grid (off-shore wind, cross-border grid connections)



Future additional actions III

9. exploit fully the possibilities offered by the EU financial instruments (Structural and Cohesion funds- 3,4b€ planned for RE projects, rural development funds, international co-operation programmes)

10. promote exchange of best practices on RES

11. continue to internalise external costs of conventional fossil energy

12. use opportunities of Strategic Energy Technology –Plan ( by late 2007)

13. promote use of RES in its external policies

14. fully implement the Biomass Action Plan of Dec.2005,COM(2005)628

15. continue to use IEE programme to achieve fast deployment and to boost large scale investment in new and best performing technologies



On the climate and energy package http://ec.europa.eu/energy/energy_policy/index_en.htm

EENERGY FOR A CHANGING WORLDNERGY FOR A CHANGING WORLD

All documents are available All documents are available

EC, DG TREN: RES policy & RTD programmes http://europa.eu.int/comm/energy/res/index_en.htm

EC, DG TREN: agencies, partners, programmes http://www.managenergy.net

EC, IEEA: Intelligent Energy Executive Agencyhttp://ec.europa.eu/energy/intelligent/index_en.html

Further informationFurther information


Calls for proposalsCalls for proposalshttp://cordis.europa.eu/fphttp://cordis.europa.eu/fp77/dc//dc/

Energy Research web site and Energy Helpdesk http://ec.europa.eu/comm/research/energy/[email protected]

Energy Policy http://ec.europa.eu/comm/energy/index_en.html

EENERGY FOR A CHANGING WORLDNERGY FOR A CHANGING WORLDFurther informationFurther information


EENERGY FOR A CHANGING WORLDNERGY FOR A CHANGING WORLDFurther informationFurther information

Towards Seventh Framework Programme http://ec.europa.eu/comm/research/future/index_en.html

Conferences, proceedings, Newsletter http://ec.europa.eu/comm/research/energy/gp/gp_events/action/article_2790_en.htm http://ec.europa.eu/comm/research/energy/pdf/renews4.pdf

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