Transcript Renewable Electricity What you need to know

20 % renewable energy by 2020 – the
RES industry’s point of view on the
Draft Renewable Energy Directive
Prof. Arthouros Zervos
President
European Renewable Energy Council
Inter-Parliamentary Meeting
on Renewable Energy and Energy Efficiency
Brussels, 29th January 2008
How it all
started…January
2004 EREC published
the industries new
goals
for 2020
EREC – European Renewable Energy Council
Umbrella organisation representing all RES sectors:
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AEBIOM
EGEC
EPIA
ESHA
ESTIF
EUBIA
EWEA
EUREC Agency
Associate members:
 EU-OEA
 EBIO
 EREF
 ESTELA
European
European
European
European
European
European
European
European
Biomass Association
Geothermal Energy Council
Photovoltaic Industry Association
Small Hydropower Association
Solar Thermal Industry Federation
Biomass Industry Association
Wind Energy Association
Renewable Energy Research Centres Agency
European
European
European
European
Ocean Energy Association
Bioethanol Industry Association
Renewable Energy Federation
Solar Thermal Electricity Association
Representation of European RES industry, trade & research
The Root of the Energy
Problem for the EU
• If we do not counteract, we are importing an
ever growing share of our energy at
unpredictable (but most likely higher) prices
in competition with the rest of the world and
at unbelievable environmental cost.
• Regardless of whether we are successful in
energy diplomacy or not, we have no idea
about the future cost of fossil and nuclear
energy we will be paying to maintain current
supply.
We are already paying for inaction
• For every $20 increase in the price of oil, the
cost of Europe’s gas imports rises by €15 bn
annually, given the unfortunate link between
oil and gas prices
• The increase of oil prices over the past few
years from $20 to $80 thus adds €45 bn. to
EUs annual gas import bill
• For comparison, EU invested €9 bn. in wind
energy in 2006
The forgotten COST: The REAL PRICE of our energy supply
Who is paying the real price?
Electricity/Energy Price
External Costs
The Electricity/Energy custome
The general population
Indirect burden via taxes,
insurances and social
contributions
The State
Increasing environmental costs,
„political“ costs
Global Loss of quality of life
EU Energy Policy
From
To
Coal&Steel
Security of Supply
and
Competitiveness
Nuclear
Sustainability
The senseless battle of
„market versus the environment“
must become a battle of
„markets for the environment“
The markets for the future are green!
RES 2020 Target and
Climate Change Package
The targets on renewable energy (including a
mandatory biofuels target), energy efficiency
and greenhouse gases have been agreed for
2020
None of these targets has primacy over the
others.
The Framework Directive must be
adopted as soon as possible.
The 20% by 2020 EU target will only be
met if legislation is adopted timely.
The Directive should be in force as soon
as possible in order not to cause market
instability around 2010 (ending of RES-E
& Biofuels Directives) Member States
and the European Parliament have to
follow their own commitments - NOW
Division of the 20% target
among Member States
How to best avoid lengthy negotiations ?
It seems the Commission managed quite
well in dividing the numbers…only Belgium,
Sweden, Austria and Latvia do not want to
see the great opportunities in renewables
development
Pre-Conditions for RES uptake
• Change in Paradigm: individual responsibility for own energy
supply, as local and decentralised as possible
• Households and private sector in general should primarily
produce their own heat and electricity from RES sources in an
efficient environment
• Combination with drastic change in consumption pattern and
increase in efficiency
• Political commitment beyond ideologies and short term thinking
to go for strong national RES development
• Clear instruments, targets for rapid uptake and enforcement
• High level of market penetration by Independent RES Power
Production
• Swift abatement of open and hidden harmful subsidies to
incumbent industry
• As long as one or more of these conditions are not met –
counterbalance is necessity
RES Framework Directive must contain:
Electricity:
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Existing RES-E Directive should form the minimum starting point.
Provisions on grid issues and administration procedures must be
strenghened.
Heating/Cooling:
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Renewable Heat obligation for new buildings
Coherent stable support measures
Removal of administrative barriers
Reliable statistics for RES-heating
Specific measures to promote RES cooling
Transport:
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Definition of sustainability standards of biofuels
Precondition for reaching the targets
• Renewable Action Plans with sectoral targets
for
– RES-electricity,
– RES heating & cooling
– Biofuels
• Interim targets every second year to check
whether development is on track
• Penalities for MS in case of not reaching the
target
• Ensuring: development of ALL renewable
energy technologies
EU wide Trading Mechanism
There is no reason to introduce such an
artificial mechanism if it is meant to:
• produce disincentives for domestic
investment
• endanger prosperous support schemes
• provide additional bureaucratic
mechanisms
An exchange of guarantees of
origin must be based on the following principles:
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A trading mechanism must be regulated and operated by public
authorities on a Member State level only and not on a company
level. Since Member States are responsible for meeting the
target, they should retain control over the target and not leave
it to companies
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If a Member State wants to sell renewable energy certificates
abroad, it must already have fulfilled its own national target.
Thus, exporting guarantees of origin to another Member State
should be allowed only after the exporting country has met its
national intermediate target: a country should not be able to sell
something which it does not possess.
Expectations from the RES Framework
Directive for RES-heating & cooling
 Include binding sectoral targets for heating & cooling in
the National Action Plans
 New buildings & major renovations:
apply a renewable heat obligation
 All other heat & cold consumption points: coherent, longterm oriented set of measures
 Launch specific support for renewable cooling
 Measures to promote RES integration into district
heating systems
 Product eligibility for support schemes based on EU
standards & certification
Strong Sustainability Criteria
- Sustainability criteria should cover not only biofuels
but also biomass whatever its final use (biofuels,
food, construction, electricity...)
- No biomass outside these sustainability criteria
should be counted towards the target.
- Imported products should comply with similar
standards as the cross compliance rules to avoid
competition distortion.
Renewable Energy
Technology Roadmap
20 % by 2020
Renewable Energy Policy Conference
17 November 2008, Paris
Conference organised in the framwork of the French
Presidency of the European Council
Further infos: www.erec.org
Thank you very much for your attention!
EREC
European Renewable Energy Council
Renewable Energy House
63-67 Rue d’Arlon,
1040 Brussels, Belgium
www.erec.org