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WEBINAR on SUPPORT SCHEMES forRENEWABLE ENERGY and GRID

DEVELOPMENT

http://www.leonardo-energy.org/webinar-support-schemes-renewable-energy-development-and-grid-development

Q&A session

Many of the questions were already orally answered. Check therecording.

Q: In Brazil, where the ''quality'' of the wind resource is good insome regions, some critics of wind power say that its intermittentfeature does not allow it to be considered as a ''firm energy'' orreliable enough to meet electricity demand. What the Europeanexperience shows?

A: answered during the webinar. Spain (which electricity grid is practicallyisolated from the rest of Europe) has reached 20% of energy generated bywind power and the plans are to grow up to more than 40% of energygenerated by renewable sources in 2020. Denmark has as well reached ahuge wind penetration thanks to efficient integration of interconnectionswith neighbouring countries and improved dispatchability schemes ofdistributed cogenerations (see www.leonardo-energy.org/20-50-percent-wind-energy-danish-power-system)

Q: Do you know what was the problem that causes a tariff deficit inSpain because of solar integration some years ago?

A: answered during the webinar. Feed-in Tariffs (FIT) are to be costreflective and should evolve in parallel with the technology. In some cases itwill be also required to control the total amount of subsidized installedpower. The problem in Spain was a too high FIT in parallel with rapidlydecreasing costs of PV equipment. Additionally, there was no limit to theinstalled power. As a consequence, more than 3000 MW were installed in asingle year (2008). Current regulation caps the total amount of subsidizedpower (500 MW / year) and leaves room for tariff revision depending on thedemand for permits (bigger demand, lower tariff).

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Q: According to McKinsey report solar PV is one of the MOSTexpensive way of avoiding CO2 emissions (cca 350$/ton CO2). Feed-In-Tariff for Solar PV energy increases greatly increases debt of agiven country. Is this desirable, or sustainable?

A: answered during the webinar. Indeed, when checking the CO2 abatementcost curve we find PV only at the most expensive side of the curve.However, as the solution is always a combination of a number of measures,all the options are to be considered. Additionally, other reasons caninfluence the government decision, as the development of its own industry,generation of export capacity, job creation, development of know-how

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Q: How renewable energy support mechanisms are financed inthese countries? In Italy, for example, the promotion of RES issustained by all electricity consumers through a specific componentof the electricity bill (the so called A3 component)

A: Answered during the webinar. Indeed, the mechanism is often theaddition of a term in the grid access tariffs for consumers or an extra-cost ofenergy supply.

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Q: Have you done any studies over the economics of the differenttariff systems? Are the FIT systems more economically efficient forthe electrical systems than the green certificates ones?

A: Check the green-x website and download their final report with, amongother things, information on the evaluation of different policy schemes.Website: www.green-x.at

Q: How do you see the renewable energy regulations progressing inEastern Europe? Are they stable enough to push the market?

A: Answered during the webinar

Q: Is there any chart comparing the FIT of the different countries?

A: Check the full report http://www.leonardo-energy.org/report-renewables-support-schemes-and-grid-integration-policies and page 28 of thispresentation. As well, check http://www.reshaping-res-policy.eu/

Q: In the case developing countries where we dont have a feed intariffs, like in Honduras. If we install a solar grid tie systems, howwe could sale the green certificates to the European market? And

what mechanisms could be use to finance these systems indeveloping countries?

A: answered during the webinar. EU directive on renewables only allowphysical green electricity imports from 3rd countries, checkhttp://www.leonardo-energy.org/webinar-eu-renewables-directive-briefing-presentation-and-open-questions . In the case of American continent it is notpossible yet. However, the Clean Development Mechanism provides foreconomic support of green projects in most of countries, checkhttp://www.leonardo-energy.org/webinar-carbon-market-and-cdm-projects

Q: The reference data is quite old: 2004, 2006; are there currentfigures of installed REW capacities?

A: Check www.energy.eu#renewables

Q: Are Smart Grids been considered to take advantage of thisrenewable development in some of these countries?

A: smart grids are getting much attention lately. Please check the Kemawebsite for some interesting publications:

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http://www.kema.com/services/consulting/utility-future/utility-future-guide.aspx and http://www.kema.com/smartrenewables.

Q: wind offshore in Slovakia?! In the middle of Europe continent?! Iwould really doubt the data you received from Slovakia...

A: Slovakia can of course also build wind farms abroad. this might be a goodsolution as it might be cheaper than developing re at a national level. Checkhttp://www.leonardo-energy.org/webinar-eu-renewables-directive-briefing-presentation-and-open-questions.

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