Transcript Folie 1 - EUFORES

POLICIES TO SHAPE
AN ALTERNATIVE ENERGY FUTURE
Measures to move towards a sustainable
energy future
by
Oliver Schäfer, Policy Advisor of the European Renewable Energy
Council - EREC
Edinburgh, 6th Interparliamentary Forum on Renewable Energy and
Energy Efficiency, Thursday 07 October 2005
EREC – European Renewable Energy Council
Umbrella organisation representing all RES sectors:
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AEBIOM
EGEC
EPIA
ESHA
ESTIF
EUBIA
EWEA
EUREC Agency
European Biomass Association
European Geothermal Energy Council
European Photovoltaic Industry Association
European Small Hydropower Association
European Solar Thermal Industry Federation
European Biomass Industry Association
European Wind Energy Association
European Renewable
Energy Research Centres Agency
Please keep two things in mind:
• Investments in energy infrastructure are always
long term investments and therefore we rely on
forecasts (and visions – including the
„unthinkable“ of a change in energy supply)
• Your decissions influence future generations
Growth and costs of major climate related natural
disasters
billion €
600
500
400
300
200
100
0
19501959
19601969
19701979
19801989
19901999
source: Münchner Rück
The Reality Today
Market Development in
Wind and PV
Cumulative Wind Energy Installed
Capacity
50
GW 45
40
35
30
25
20
15
10
5
0
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
EUROPE
0.4
0.6
0.8
1.2
1.7
2.5
3.5
4.8
6.5
9.7
12.9
17.3
23.2
28.6 34.2
W ORLD
1.7
2.0
2.3
2.8
3.5
4.8
6.1
7.6
10.2
13.6
17.4
23.9
31.1
39.3 47.3
Growth rates 1994-1999 : 31.2%
1999-2004 : 28.3%
Source: EWEA
The Top-10 Markets in the World
18000
2002
16000
2003
2004
14000
12000
10000
8000
6000
4000
2000
P.R.
Chin
a
Japa
n
UK
s
Neth
erlan
d
Ita ly
Ind ia
ark
Denm
US A
Sp ai
n
ny
0
Ge rm
a
MW
Source: EWEA
The Top 10 Suppliers in the World
Others
4%
VESTAS
(Denmark)
32%
MITSUBISHI
(Japan)
SUZLON (India)
3%
4%
GE WIND (USA)
11%
NORDEX
(Germany)
2%
REPOWER
(Germany)
3%
SIEMENS
(Denmark)
6%
GAMESA
(Spain)
17%
ECOTECNIA
(Spain)
3%
ENERCON
(Germany)
15%
Source: BTM Consult
Cumulative Photovoltaic Installed
Capacity (MWp)
MWp
5000
4000
3000
2000
1000
0
World
1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
314
371
432
502
580
669
948 1150 1428 1829 2387 3151 4345
90
EU-25
Growth rates
795
1994-1999 : 18.0%
1999-2004 : 30.5%
128
188
284
392
594 1004
Source: Eurec Agency, EPIA, Observ‘ER
The Top PV Markets in the World
1200
MWp
1000
2004
2003
2002
2001
800
600
400
200
bu rg
Lu xe
m
Ita ly
Spa i
n
erla n
ds
Neth
Aust
ral ia
P.R.C
hi na
In dia
USA
any
Germ
Japa
n
0
Source: EPIA, Observ‘ER, IEA-PVPS
The Top PV Manufactures in the World
350
MWp
2001
300
2002
2003
2004
250
200
150
100
50
che C
ell
Deut
s
r
Sol a
R WE
ton
Is ofo
San y
o
Sola
r
She l
l
ll s
Q-ce
bis hi
Mi tsi
BP S
olar
Kyoc
e ra
Sha r
p
0
Source: EPIA, Observ‘ER, IEA-PVPS
Policy Works!
Main policy issue: Create a level
playing field
• Energy prices do not reflect the true social costs
of generation - a market failure:
 The social and environmental costs of polluting energy
are not internalised
 There are still massive subsidies to ‘conventional’
energy sources
• To achieve the benefits of Renewable Energy,
support frameworks should be established
 They should be viewed as compensation mechanisms
for correcting these market failures.
Renewables would not need special provisions if
markets were not distorted by the fact that it is
still virtually free for energy producers to pollute.
EU Power Production Mix 2003
Other
Wind Power renewable
2.1%
energy
Oil
1.7% Other
6.1%
1.2%
Large Hydro
10.0%
Gas
17.0%
Coal
30.4%
Nuclear
31.5%
Competition in the internal electricity
market ?
“Much work still has to be done to deal with the dominant and even
monopolistic positions of the incumbent operators and investments
will be needed to guarantee the interoperability of grids and
networks, interconnection and an adequate level of capabilities and
infrastructure”
Loyola de Palacio, 13 October 2004
“The current level of competition is not encouraging. (…) In most
national markets, customer switching rates are modest,
substantial barriers remain for new entrants, market structures are
highly concentrated and, last but not least a single European energy
market has not been achieved.”
Mario Monti, 21 September 2004
Distortions in the internal electricity
market
•
4 Commission benchmarking reports: Endless distortions
•
National and regional monopolies / oligopolies
•
No real consumer choice
•
Lack of interconnectors
•
Little separation of production and transmission
•
Power companies acting on both demand and supply side in the
wholesale market
•
75% of electricity subsidies goes to conventional power
•
Euratom shields nuclear (33% of total EU production) from internal
market rules (since 1958!)
•
Complete absence of any meaningful internalisation of environmental
costs
Liberalised Markets?
• 95% of the EU power market is still affected by huge
market distortions
• Electricity prices do not reflect full costs as long as
polluter pays principle is missing
• Subsidies -direct and indirect- to conventional power
production is still massive
• National and regional monopolies / oligopolies
Competition not effective, but
precondition for competition
on RES market
Let´s be honest
• A liberalised market is not existing
• No support mechanism is market oriented
• Any support mechanism relies on the
political will
No electricity generating technology in
history has ever been developed,
introduced and become competitive
without initial support.
National Policy Measures
Establish a successful framework for the development
of renewable energy
A successful framework requires political effort in four
vital fields :
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Well designed support scheme ensuring investor confidence
Appropriate administrative procedures
Fair grid access and strategic grid planning
Public acceptance and support
If one or more of these key components are missing, little
progress will happen.
National Policy Measures
• Establish legally binding targets for renewable energy
National targets for the share of renewable energy are vital for
maintaining and further stimulate investor confidence
• Establish incentive mechanisms which provide defined and
stable returns for investors
– The price for renewable power must allow for risk return profiles
that are competitive with other investment options.
– The duration of a project must allow investors to recoup their
investment.
Available options:
– Capital Grants
– Price-based Mechanisms
• feed-in price
• fixed premium
– Quantity-based Mechanisms
• quotas with tendering
• quotas with trading- green certificates
National Policy Measures
The Reforms Needed to Address Market Barriers
to Renewables :
• Streamlined and uniform planning procedures and permitting
systems and integrated least cost network planning;
• Fair access to the grid at fair, transparent prices and removal of
discriminatory access and transmission tariffs;
• Fair and transparent pricing for power throughout a network,
with recognition and remuneration for the benefits of embedded
generation;
• Unbundling of utilities into separate generation and distribution
companies;
• The costs of grid infrastructure development and reinforcement
must be carried by the grid management authority rather than
individual renewable energy projects;
Policy Measures – International
Level
• Establishment of legally binding RES targets
• More emphasis on RES projects in development
policy
• Support from International Financial Institutions,
Export Credit Agencies and Multi-lateral Development
Banks
– A defined and increasing percentage of overall energy sector
lending directed to RES projects
– A rapid phase out of support for conventional, polluting
energy projects
• Increased research and development
• Increase awareness of RES
• Substantial measures beyond Kyoto
Conclusion
• RE has the technological potential to replace fossil
fuels as mainstream energy source.
• RE is integral part of the energy supply in many
countries today.
• RE has tangible economic, ecological and social
benefit.
• BUT: RE market development depends on a
coherent, predictable, supportive political & legal
framework.
Thanks for your attention
For more information please visit
www.erec-renewables.org
Or write me on [email protected]