Workshop IEA Innovation and Small hydropowerMontreal,17 August 2004

ADEME activities and European programmes on Small HydropowerM. Philippe BEUTINRenewable Energies, Energy Networks and Markets DivisionHead of the Renewable Energy Department

ADEME, French Agency for Environment and Energy Management Created in January 1992 through the merging of 3 pre-existing government agencies

Under the control of three ministries Industry Ecology & Sustainable Development Research & Development

ADEME, a sustainable development pro active actor sustainable development

energy

environment

contributes to help France meeting its international commitments is closely involvedin implementing the French governments policies concerning

ADEMEs workforceADEMEs sitesADEMEs incitative budget an overall staff of 900 experts 3 headquarters (Angers, Paris, Valbonne), 26 regional branch offices 3 overseas-territories offices 1 office in Brussels FOR 2003 : 340 million euros

ADEMEs areas of activityWaste and polluted soilsEnergy efficiency Renewableenergy sources Air qualityand transportsNoiseEnvironmental management

ADEME-State Plan Contract 2000-2006 Develop waste savings with high environmental quality Commit long-term effort to energy management and encourage development and use of renewable energy sources Improve energy-efficient techniques in transport sector and reduce air pollutionCommitmentsaccording topriorities3

Research and development: ADEME involvementto promoting innovative technologies and practices : CO2 sequestration, H2 production and use (FC), RES generation, advanced building solutions ( Public-Private initiative)International partnership (EU networks of excellence, integrated research projects .) : RES and H2 ..to the creation of an European research area ERA ContributePromote Collaborate

New financial instruments in favour of environment and energy management FOGIME (created 2001) (Guarantee Fund for addressing risk issues in the Energy Conservation Field) for SMEs FIDEME (created in 2003) (Investment Fund for environment and energy projects)Combine public and private funds and are particularly focused on RES projectsADEME has initiated the creation of these funds and is involved in decision matters

ADEMEs actiontowards citizens Create information tools : Contribute to the development and coordination of the Infos nergie offices network

Lead awareness campaignsguides, exhibitions, self-diagnosis (energy consumption)This network, which covers the whole French territory, gives personal information and advices to individuals, artisans and small companies managers

Few examples of ADEMEs international projects in progress HIP-HIP - House Integrated PV Hightech In Public HOTRES - Technical support to the tourism industry with renewable energy technologies OPTIRES - A Planning tool for optimal regional integration of renewable energy sources RESPIRE Renewable Energy Sustainable Sources Promotion and Integration in Insular Regions of Europe SPLASH Spatial Plans and local arrangement for Small Hydro

Workshop IEA Innovation in Small HydropowerEuropean initiatives in favour of small hydropower activities in Europe and developing countries

New SHP initiatives in Europe: TNSHP project : networking activities (ESHA) SPLASH project: territorial approach (local plans) SHEER project : encouraging investments in Eastern European countries

Workshop IEA Innovation in Small HydropowerEuropean initiatives in favour of small hydropower activities in Europe and developing countries

TNSHP Thematic network on small hydropowerIn Europe

Small hydropower networking in Europe

RESULT EXPECTED: higher volumes of investments in Europe and addressing new challenges (compliance with EU directives and adopting relevant innovations)

KEY THEMES

Marketing for SHP (Political, market issues, SHP statistics)Environmental integration (Integrated design, bioengineering, reserve flow, social acceptance, EIA)Engineering aspects (Civil engineering, mechanical and electrical equipment)

SHP Thematic Network

Nice, 11th May 2004

DELIVERABLES Strategy document on EU RD&D activities and needs. Annual Laymans Guide in German, French and Swedish (2004) Checklist for SHP developers in French, German and Italian (2004)SHP situation in Candidate Countries (2004)Brochure on Environmental aspects of SHP in English, Italian and German (2005)Report on SHP Statistics. AnnualReports on reserve Flow, political aspects, public image

SHP Thematic Network

Workshop IEA Innovation in Small HydropowerEuropean initiatives in favour of small hydropower activities in Europe and developing countries

SPLASH Spatial Plans and Local Arrangements for Small Hydro ALTENER project 4.1030/C/02-074/2002

SPLASH partnersInnovation Energie Dveloppement (IED) : European Coordinator and partner - FranceMAES, coordination on the planning aspects - PolandMentor Consult - GreeceADEME, Energie Cits, Climat Energie Environnement - FranceCEEETA - PortugalCork County Council - IrelandESHA - European Small Hydro Association - Belgium ENTEC - Swisserland

Electricity generation from RES in the partner countries

Countries context for RE

Small hydro issues in the EUPast hydropower projects have : disrupted fish runs, flooded fishing grounds, and had an adverse visual impact on the landscape or noise impact.

In response licensing authorities implemented restrictive conditions on SHP development, which are reflected in the high upfront costs of environmental impact assessments and delays in authorisation (up to 5 years). Furthermore, grid connection can be a long and expensive procedure

RESULT : high development costs

SPLASH objectivesTo increase the total contribution from SHP in the EU electricity mix : better reflecting the concerns of all stakeholders in the environmental constraints improving the economic situation for producers.

Both renewable energy development and conservation of the river resources are crucial for a sustainable development. It appears now that with some precautions, small hydro schemes can respect the environment and in many cases can improve it. Searching for a rational and beneficial balance is the focus of the partly funded European project SPLASH .

SPLASH objectivesThe preparation of pilot spatial plans for small hydro, identifying on an integrated basis, the acceptable locations and the environmental considerations that must be met. The local plans will be designed to act as an aid to the environmental assessment process,Supporting municipalities and other local actors such as independent electricity utilities / producers, and acting as a catalyst to bridge the gap between the new policy framework and local actors, in order to reduce the unit cost of feasibility studies of an SHP through the best distribution of costs to all the projects that could be developed in one local area,The evaluation of how various technologies might affect the economic resource and be fully integrated into the main electricity supply.

SPLASH : Work programmePhase I: Compilation of information, preparation of work plan and consultationsPhase II: For targeted areas, evaluation of the resource and the main constraintsPhase III: Preparation of local development plansPhase IV : Step-by-step guideline for SHP development and best practice guide on planning issues Phase V: F/S of one to three sites (depending on size) per country in the selected local areasPhase VI: Dissemination Workshops and site visits

Spatial plans

This is the core deliverable from the project Each country is developing its own methodologyIreland and Greece : GISFrance : computational analysisPortugal and Poland : Site approach

The case of France

French context for RE Kyoto Protocol : France has to stabilise its emissions France has to increase its electricity production from RE from 15% in 1997 to 21% in 2010 (EC Directive 2001/77/CE) Law n 2000-108 of 10 Feb. 2000 for the modernisation and development of the public electricity service introducing new tarifs for RE with the obligation for the utility to buy the electricity for any installation below 12 MW (before : 8 MW)Total electricity production in France 490 TWh

Graph2

75.8

10.6

13.6

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Nuclear75.8

Thermal10.6

Hydroelectric13.6

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French context for SHP

Presently 1500 SHP sites < 8 MW = 7 TWh = 10% of the French hydroelectric production (1,5% of National production) The last 10 years only 6% increase in capacity,from 1900 MW to 2020 MW Potential estimated at 2000 MW of which 650 MW in the medium term (200 MW Rhne-Alpes, 75 MW PACA, 50 MW in Corsica ..) Buy back tariffs over 20 years : 6,1c/kWh for capacity under 500kVA, and 5,49c/kWh for capacity above 500kVA + quality bonus between 0 and 1,52c/kWh in winter

The authorisation procedure Heavy administrative procedures: on average 5 years and costing around 1 year of revenues for the future site EIA (Environmental impact assessment >500kW), Few authorisations for new sites : Residual flow should not be below 10% of annual mean flow Classification of rivers (which is prohiting new projects)- Opposition from fisher federations and environmentalist associations Authorisation given for around 30 years (can be taken back) and then need for a new application Management of water : split over the 6 main water catchments in France The EC directive on water (2000/60/CE)

Workshop IEA Innovation in Small Hydropower in EuropeEuropean initiatives in favour of small hydropower activities in Europe and developing countriesSHEER Small Hydro Enhancement for Eastern EuropeDirectorate-General for Energy and TransportEIE Call for proposals 2003 - April 30th 2004

SHEER partnersADEME, French Agency for Environment and Energy Management - European Coordinator and partner FRANCEISL, Bureau d'Ingnieurs Conseils - FRANCEESHA, European Small Hydro Association BELGIUMEnEffect, Center for Energy Efficiency - BULGARIAEEA, Energy Efficiency Agency - BULGARIAE.V.A., Energieverwertungsagentur, the Austrian Energy Agency AUSTRIAZDMHE, Zveza drustev lastnikov in graditeljev mallh hidroelektrarn Slovenije - SLOVENIAL.E.I., Lithuanian Energy Institute - LITHUANIA

SHEER objectives (1)+ The main objective to be fulfilled in the project is to remove barriers to investments in the SHP sector and to promote new investing opportunities in Eastern European Countries

+ The project will set up a shared investment methodology in order to bridge the gap between investors and developers.

SHEER objectives (2)+ The innovative approach that takes into account both needs and constraints of developers and investors and answer their specific concerns by offering dedicated services through analysis of SHP projects.

+ Implementation on pilot sites (one per country) is part of the demonstration objective of the feasibility work. This objective will be reinforced by networking and capacity building on SHP matters in EEC involved. A long term objective will be to extend the methodology approach to other RES.

Projet

SHEER - Small Hydro Enhancement for Eastern Europe

REMOVE BARRIERS TO INVESTMENTS IN SHP ELECTRICITY PRODUCTION

PROMOTE INTEGRATED APPROACHMATCHING EVALUATION TOOL

Investors input:Specific barrier: Financial criterias

Common BarriersLegal, Regulation, Administrative, Financial

MATCHING EVALUATION TOOL

Holistic set of criteria

Reliable methods valuation+ training and dissemination

SHARED EVALUATION => INVESTMENT DECISION for PILOT SITES

Pilot Sites evaluation

INVESTMENTS

MARKET DEVELOPMENT

OBJECTIVES

PROPOSED ACTION

Developers input:Specific barrier: technical criterias

POTENTIAL IMPACTS

Networking with investors

Dveloppement de l'outil

Feuil3

SHEER : Work programme (1)The SHEER project will be implemented in 5 phases including dissemination:

WP1: Assessment of the Country hydropower development conditions, in order to prepare the multicriteria analysis and identify main barriers.

WP2: Inventory of sites for potential investment development and preparation of the dynamic database on web site for further implementation.

WP3: Development of the integrated decision support tool that will allow the evaluation of pilot sites that will be selected as opportunities for investments networking.

SHEER : Work programme (2)WP4: Concrete implementation by assisting pilot plants developers on comprehensive feasibility studies and business plan (one pilot site per country), and by identifying potential investors.

WP5: Continuous information on the web site; Training activities to prepare actors to use the decision support tool; Networking with investors to promote opportunities and further dissemination and capacity building in other countries with ESHAs network.

SHEER :Direct outcomes in the short/mid termThe first direct outcome will be the issuing of an analysis tool and its utilisation in the associated networking activities. The second important result will be the real implementation of the method in bankable pilot sites, the assistance to developers and, implied by the promotion of investment opportunities, the forthcoming investment decision.

- The third result will be the widespread dissemination of the method through capacity building activities.

SHEER :Direct outcomes in the in the longer runThe envisaged results are:

Disseminating the methodology to all EE countries as part of capacity building.

Thus promoting new investments opportunities and developing the SHP market at European level

Giving public authorities a focus on barriers to remove for SHP enhancement

Extend the results to other RES.