www.onlysustainable.org energy@onlysustainable.org

María-Teresa Costa

President

National Energy Commission (Spain)

Perspective of the E.U. and the

Spanish experience

Outline

Perspective of the E.U. and the Spanish experience 2010 International Conference on Renewable Energy 3

1. Principles & Targets

Sustainable Development

Green Package

2. Current Situation

3. Final Remarks

UN (1987): ‘... meets the needs of the present without compromising

the ability of future generations to meet their own needs’

World Summit (2005): ‘... its interdependent and mutually reinforcing

pillars are economic dev., social dev., and environmental protection’

Perspective of the E.U. and the Spanish experience 2010 International Conference on Renewable Energy 4

United Nations’ Division for Sustainable Development (DSD)

http://www.un.org/esa/dsd/index.shtml

Principles & Targets – Sustainable DevelopmentWhat is it and what are its three pillars?

Almost one-third of the world’s population is denied the use of

electricity

Around another third suffers brown outs and load shedding

Energy access is the right key to access other rights

Perspective of the E.U. and the Spanish experience 2010 International Conference on Renewable Energy 5

United Nations’ Division for Sustainable Development (DSD) – Areas of work: Energy

http://www.un.org/esa/dsd/dsd_aofw_ene/ene_index.shtml

Principles & Targets – Sustainable DevelopmentAccess to energy and electricity for… everyone?

I.E.A. (2010): A wide range of technologies will be necessary to

substantially reduce energy-related CO2 emissions

Perspective of the E.U. and the Spanish experience 2010 International Conference on Renewable Energy 6

International Energy Agency: Energy Technology Perspectives 2010

http://www.iea.org/W/bookshop/add.aspx?id=401

Principles & Targets – Sustainable DevelopmentWhich tools (=technologies) do we need to reach it?

E.C. (2007): E.U.’s integrated energy and climate change legislative

package (‘green package’) based on…

1. A true internal energy market

Keywords: choice, competition, unbundling, interconnection

2. Accelerating the shift to low carbon energy

Keywords: renewable, biofuel, penetration, research

3. Energy efficiency

Keywords: transport, buildings, loss savings, labeling

Package became law in June 2009

Perspective of the E.U. and the Spanish experience 2010 International Conference on Renewable Energy 7

European Commission Directorate General for Climate Action – E.U. Climate and Energy Package

http://ec.europa.eu/clima/policies/eu/package_en.htm

European Parliament: adopted texts

http://www.europarl.europa.eu/sides/getDoc.do?pubRef=-//EP//TEXT+TA+20081217+ITEMS+DOC+XML+V0//EN

Principles & Targets – Green PackageWhat is it and what are (also) its three pillars?

E.U. Council (spring 2007) sets energy targets to be met by 2020:

1. A reduction in E.U. GHG emissions of at least 20% below 1990 levels

2. 20% of E.U. energy consumption to come from renewable resources

3. A 20% reduction in primary energy use by improving energy efficiency

Other closely-related E.U. framework initiatives:

2nd strategic energy review (follow-up 2009)

Keywords: infrastructure, gas supply, ‘securing our energy future’

3rd package: Directives 72, 73/2009; Regulations 713, 714, 715/2009

Keywords: unbundling, more effective regulators, cross-border trade

Perspective of the E.U. and the Spanish experience 2010 International Conference on Renewable Energy 8

GHGs: Greenhouse Gases

European Commission - Second Strategic Energy Review

http://ec.europa.eu/energy/strategies/2009/2009_07_ser2_en.htm

European Commission – Gas & Electricity – Third legislative package

http://ec.europa.eu/energy/gas_electricity/third_legislative_package_en.htm

Principles & Targets – Green Package What are the „20-20-20‟ targets and the other initiatives?

The ‘green package’ consists of the six following provisions:

Directive 2009/28/EC: promotes the use of energy from renewable sources

Directive 2009/29/EC: improves the E.U. GHG emission allowance trading scheme

Directive 2009/30/EC : monitoring and abatement of fuel-derived GHG emissions

Directive 2009/31/EC: CO2 geological storage

Decision 406/2009/EC: effort sharing among member states to reduce GHG

emissions

Regulation EC Nº 443/2009: emission performance standards (new passenger cars)

Perspective of the E.U. and the Spanish experience 2010 International Conference on Renewable Energy 9

http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2009:140:0016:0062:en:PDF

http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2009:140:0063:0087:en:PDF

http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2009:140:0088:0113:EN:PDF

http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2009:140:0114:0135:EN:PDF

http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2009:140:0136:0148:EN:PDF

http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2009:140:0001:0015:EN:PDF

Principles & Targets – Green PackageWhat are the pieces of the package?

Outline

10

1. Principles & Targets

2. Current Situation

Europe: RES in Energy Mix and Support Schemes

Spain: RES in Energy Mix and Regulatory Framework

3. Final Remarks

Perspective of the E.U. and the Spanish experience 2010 International Conference on Renewable Energy

Perspective of the E.U. and the Spanish experience 2010 International Conference on Renewable Energy 11

Current Situation – Europe: RES in energy mixWhere does the energy come from that the E.U. consumes?

(Renewables, not including electricity)

E.U. Energy and Transport Statistical Pocketbook 2010

http://ec.europa.eu/energy/publications/statistics/doc/2010_energy_transport_figures.pdf

E.U. 27 Final Energy Consumption

by fuel in 2007 [MTOE]

Perspective of the E.U. and the Spanish experience 2010 International Conference on Renewable Energy 12

Current Situation – Europe: RES in energy mixWhere does the electricity come from that the E.U.

generates?

(Other: Pumped Storage Plants and Other Power Stations)

E.U. Energy and Transport Statistical Pocketbook 2010

http://ec.europa.eu/energy/publications/statistics/doc/2010_energy_transport_figures.pdf

E.U. 27 Gross Electricity

Generation in 2007 [TWh]

Perspective of the E.U. and the Spanish experience 2010 International Conference on Renewable Energy 13

Current Situation – Europe: RES in energy mixWhich technologies drive present capacity growth?

Joint Research Center: PV Status Report 2010

http://publications.jrc.ec.europa.eu/repository/handle/111111111/14824

E.U. New Installed or Decommissioned

Capacity in 2009 [GW]

Perspective of the E.U. and the Spanish experience 2010 International Conference on Renewable Energy 14

Current Situation – Europe: Support Schemes What are the renewable electricity support schemes?

OPTRES: Assessment and optimization of renewable energy support schemes in the European electricity market (2007)

http://ec.europa.eu/energy/renewables/studies/doc/renewables/2007_02_optres.pdf

Demand coverage

Current Situation – Spain: RES in energy mix Where does the electricity Spain generates come from?

Perspective of the E.U. and the Spanish experience 2010 International Conference on Renewable Energy 15

Red Eléctrica de España (Spanish TSO): The Spanish Electric System - Summary (2010)

http://www.ree.es/ingles/sistema_electrico/pdf/infosis/sintesis_REE_2009_eng.pdf

Spanish installed capacity and demand coverage 2009 [mainland system]

Installed capacity

Current Situation – Spain: RES in energy mix What is share evolution vs. gross demand of renewables?

Perspective of the E.U. and the Spanish experience 2010 International Conference on Renewable Energy 16

CNE: Statistical Data on Special System Energy Sales (updated monthly)

http://www.cne.es/cne/Publicaciones?id_nodo=143&accion=1&soloUltimo=si&sIdCat=10&keyword=&auditoria=F

2010e: 30%

Current Situation – Spain: RES in energy mix What is the evolution of renewables by technology?

Perspective of the E.U. and the Spanish experience 2010 International Conference on Renewable Energy 17

CNE: Statistical Data on Special System Energy Sales (updated monthly)

http://www.cne.es/cne/Publicaciones?id_nodo=143&accion=1&soloUltimo=si&sIdCat=10&keyword=&auditoria=F

Current Situation – Spain: RES in energy mix What is installed (on-shore) wind capacity through 2009?

Perspective of the E.U. and the Spanish experience 2010 International Conference on Renewable Energy 18

CNE: Statistical Data on Special System Energy Sales (updated monthly)

http://www.cne.es/cne/Publicaciones?id_nodo=143&accion=1&soloUltimo=si&sIdCat=10&keyword=&auditoria=F

Current Situation – Spain: RES in energy mix What is the installed solar PV capacity through 2009?

Perspective of the E.U. and the Spanish experience 2010 International Conference on Renewable Energy 19

CNE: Statistical Data on Special System Energy Sales (updated monthly)

http://www.cne.es/cne/Publicaciones?id_nodo=143&accion=1&soloUltimo=si&sIdCat=10&keyword=&auditoria=F

Current Situation – Spain: RES in energy mix Where does the electricity Spain generates come from?

Wind and gas progressively replace coal; solar (both photovoltaic &

concentrated solar power) drive non-wind renewable growth

Rapid shift of “special system” from tariff to market (mainly wind farms)

Hydro (no further sites) and Nuke (moratorium) shares, frozen

Balanced mix but: increasing gas dependence and low interconnection

Perspective of the E.U. and the Spanish experience 2010 International Conference on Renewable Energy 20

Red Eléctrica de España (Spanish TSO): The Spanish Electric System - Summary (2010)

http://www.ree.es/ingles/sistema_electrico/pdf/infosis/sintesis_REE_2009_eng.pdf

Demand coverage 2005-09 [mainland system, TWh]

Current Situation – Spain: Regulatory FrameworkWhat is CNE‟s methodology to guide RES development?

Perspective of the E.U. and the Spanish experience 2010 International Conference on Renewable Energy 21

Based on four basic criteria:

1. Reach targets set in indicative planning

Keywords: economic sustainability, E.U. and national objectives

2. Generate stability and predictability of economic support

Keywords: legal security for investors, low regulatory risk

3. Improve RES integration as regards system operation

Keywords: supply security, control centers, ancillary services

4. Make RES & CHP compatible with electricity market

Keywords: competitiveness, price-sensitivity, grid parity

Current Situation – Spain: Regulatory Framework

What is the economic impact of renewable

energies?

Perspective of the E.U. and the Spanish experience 2010 International Conference on Renewable Energy 22

0%

5%

10%

15%

20%

25%

30%

35%

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Contribución del Régimen Especial en % a la cobertura de la demanda (2000-2009)

Contribution of the Special System as a % of Demand Coverage (2000-2009)

o GDP: €7,315 M (0.67% GDP)o Generation of jobs: 120,722

people, of which 75,466 are employed directly

o Commercial Figures • Exports: €3,863 M

o TOE* prevented: 10 million, equivalent to a saving in fossil fuels of €2,725 M

o CO2 emissions prevented: 23.6 million tons, which correspond to a saving in emission rights of €499 M

o DR+D+i: 6.6% of sector’s GDP (five times more than the national average, which is 1.3%)

* ton of oil equivalent

Economic impact of renewable energies

(2008)

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

MW

* datos ene-oct 2009

Evolution in installed capacity by technology 2000-2009

Other

Hydraulic

Wind

Solar

Cogeneration

Outline

23

1. Principles & Targets

2. Current Situation

3. Final Remarks

Perspective of the E.U. and the Spanish experience 2010 International Conference on Renewable Energy

Perspective of the E.U. and the Spanish experience 242010 International Conference on Renewable Energy

Final RemarksPerspective of the E.U. and the Spanish experience

Concern about sustainability

Three pillars of energy policy: supply security, competitiveness and

environmental sustainability

Sustainable development:

Developed countries: intergenerational and intra-generational

responsibility

Importance of regulation in employing renewable energies

E.U.: Green package (sets 20-20-20 quantitative objectives for 2020)

Spain: Suitable regulatory framework for achieving objectives:

CNE methodology

Success of mechanisms employed: feed-in tariff

María-Teresa Costa

President

National Energy Commission (Spain)

Thank you for your time