Transcript Slide 1

WIND ENERGY – SURE WAY TO INCREASE
ALLOTMENT OF RENEWABLES
Wind energy business review and
perspectives in Lithuania
Alvydas Naujekas
President of Lithuanian Wind
Energy Association;
CEO Veju Spektras, Ltd.
October 11, 2007, Warshaw, Novotel
WIND ENERGY – SURE WAY TO INCREASE
ALLOTMENT OF RENEWABLES
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Facts chronology;
Lithuanian wind energy in EU context;
Wind energy goals in Lithuania;
Problems of wind energy project
implementation;
Ways of problems solving;
Wind energy development
perspectives.
October 11, 2007, Warshaw, Novotel
WIND ENERGY – SURE WAY TO INCREASE
ALLOTMENT OF RENEWABLES
Facts chronology until 2002:
• Absence of wind energy development
background:
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no grid connection rules;
no feed-in tarif;
no (still no) legal basis for renewable energy;
bad conditions for Western producers and
investors;
• Attempts to import second hand plants
• Attempts to create own technologiess
October 11, 2007, Warshaw, Novotel
WIND ENERGY – SURE WAY TO INCREASE
ALLOTMENT OF RENEWABLES
Fact chronology
• At the beginning of 2002 State Control
Commission for Prices and Energy approves
feed-in tarif for electricity from wind energy
plants – 6,37 EUR ct/kwh until 2010;
• In the middle of 2002 there’s mass agiotage
about issuance of “advance technical
conditions for grid connection”;
• At the end of 2002 the wind research results
made by REC according to UNDP programe
was announced .
October 11, 2007, Warshaw, Novotel
WIND ENERGY – SURE WAY TO INCREASE
ALLOTMENT OF RENEWABLES
Fact chronology
• In 2003 Lietuvos Energija and distribution
companies receive lots of request to issue advance
technical conditions for wind energy plants
connection to the grid (power installed exceeds 800
MW);
– LE and distributions companies are alarmed;
– when coordination EU admission agreement the
aim of 7% electricity production from renewable
resources until 2010;
– Ministry of Economy prepares the order of tender;
– “zone” idea occurs;
• UAB “Dalis gero” begins construction of first new
commercial 600 kW plant in summer 2003.
October 11, 2007, Warshaw, Novotel
WIND ENERGY – SURE WAY TO INCREASE
ALLOTMENT OF RENEWABLES
Fact chronology
• UAB “Dalis gero” begins exploitation of
first new commercial 600 kW plant in the
beginning of 2004;
• LE announces tenders for “Permission to
develop electricity production” in zones III,
IV and I in spring 2004;
• New Law on detailed planning enters into
force in summer 2004;
October 11, 2007, Warshaw, Novotel
WIND ENERGY – SURE WAY TO INCREASE
ALLOTMENT OF RENEWABLES
Fact chronology
• In 2005 the Government extends the
term of 6,37 EUR ct/kwh until 2020;
• LE tenders for production extension
are continued;
• In autumn 2005 UAB “Vėjų spektras”
receives permission for construction of
30 MW wind park and begins the road
construction works;
October 11, 2007, Warshaw, Novotel
WIND ENERGY – SURE WAY TO INCREASE
ALLOTMENT OF RENEWABLES
Fact chronology
• In 2006 LE tenders for production extension
are finished for whole 200 MW in zones I-VI;
• The following plants, parks are built and
functioning:
– UAB “Vėjų spektras” - 18 MW;
– UAB SNP – 1,2 MW;
– UAB “Kuprijus” – 0,8 MW;
• In total 20 MW;
• Few small second hand 50-150 kW power
plants are built in Telšiai, Jurbarkas,
Skuodas regions;
October 11, 2007, Warshaw, Novotel
WIND ENERGY – SURE WAY TO INCREASE
ALLOTMENT OF RENEWABLES
Fact chronology
• In 2007 the following plants, parks are
built and functioning:
– UAB “Achemos hidrostotys” – 16 MW;
– UAB “Vėjų spektras” - 12 MW;
– A. Karapetiano – 2 MW;
• total 30 MW;
October 11, 2007, Warshaw, Novotel
WIND ENERGY – SURE WAY TO INCREASE
ALLOTMENT OF RENEWABLES
Fact chronology
Newly Installed Capacities [MW]
35
30
25
MW
20
15
10
5
0
2003
2004
2005
Metai
2006
2007
October 11, 2007, Warshaw, Novotel
WIND ENERGY – SURE WAY TO INCREASE
ALLOTMENT OF RENEWABLES
Wind energy electricity production 2006-2007
Production of Wind Energy In Lithuania, kWh
12.000.000
10.542.452
10.040.152
10.000.000
9.294.393
8.000.000
7.900.627
6.000.000
4.000.000
2.749.608
1.162.981
2.000.000
110.550
108.126130.563129.969 142.461 81.104 70.716 109.345156.020
Date
2007.05.01
2007.04.01
2007.03.01
2007.02.01
2007.01.01
2006.12.01
2006.11.01
2006.10.01
2006.09.01
2006.08.01
2006.07.01
2006.06.01
2006.05.01
2006.04.01
2006.03.01
0
2006.02.01
Electricity, kWh
8.796.099
October 11, 2007, Warshaw, Novotel
WIND ENERGY – SURE WAY TO INCREASE
ALLOTMENT OF RENEWABLES
Lithuanian wind energy in the context of EU
• EU “White Paper” for Energy future:
Renewable energy resources”
(COM(97)599);
• EU Directive 2001/77/EC “For
promotion of energy production from
renewable energy resources within
domestic market”;
• EU Energy policy 2007;
October 11, 2007, Warshaw, Novotel
WIND ENERGY – SURE WAY TO INCREASE
ALLOTMENT OF RENEWABLES
Wind energy goals in Lithuania
• On current grid conditions is possible to
produce up to 2,8 TWh/year (Gross
consumption in Lithuania is 14 TWh/year);
• It is possible to install 1200 MW wind energy
plants + offshore plants;
However present development is very slow.
October 11, 2007, Warshaw, Novotel
WIND ENERGY – SURE WAY TO INCREASE
ALLOTMENT OF RENEWABLES
Problems
• Since 2004 the investment costs into
conditional MW are increasing rapidly:
» WECs – from 0,7 to 1,2 mln. € (2007)
85%;
» Construction works – 100%;
» Transportation – 50%;
» Designing-planning – 250-300%;
» Land – no forecast.
October 11, 2007, Warshaw, Novotel
WIND ENERGY – SURE WAY TO INCREASE
ALLOTMENT OF RENEWABLES
Problems
• The official state energy strategy still fossil fuel and nuclear
oriented, which have very negative consequences for
development of renewables;
• Despite formal declarations, strategy for development of
renewables not supported by any governmental institutions;
• High resistance from grid transmition utilities;
• Low investment return (due to low wind electricity purchase
price the term for investment return is increasing, it’s not worth
to invest);
• Due to strict environmental regulations and high price of land is
not possible to develop wind farms on allocated areas;
• Too long and complicated planning regulations, lasting 18 – 20
months;
• Is very long-lasting time of wind turbines supply, due to
extremely high needs;
• These conditions blocking financial flows for investment
projects, increasing interest rates, complicating conditions for
October 11, 2007, Warshaw, Novotel
loans;
WIND ENERGY – SURE WAY TO INCREASE
ALLOTMENT OF RENEWABLES
Ideas for solving the problems
• To develop legal base for renewable energy:
– Separate Law on Wind Energy;
– or as a part of the Law on Renewable Energy;
• To set wind energy as a priority;
• To change current system of tendering for grid
connection;
• To increase the feed-in tariff to 7,5 – 9,2 EUR ct/kWh;
• To cover entire country for development of wind
energy (not only allocated sites near the Baltic Sea);
• To form a budget for compensation of prices for
renewable energy instead of current budget of public
interest;
• To simplify land use planning procedures;
October 11, 2007, Warshaw, Novotel
WIND ENERGY – SURE WAY TO INCREASE
ALLOTMENT OF RENEWABLES
Lithuanian wind energy development perspectives
700
Installed capacity [MW]
600
500
400
300
200
100
0
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
Metai
October 11, 2007, Warshaw, Novotel
WIND ENERGY – SURE WAY TO INCREASE
ALLOTMENT OF RENEWABLES
THANK YOU FOR ATTENTION!
October 11, 2007, Warshaw, Novotel