The RES Integration Study – Methodology, Overall Results ...

The RES Integration Study –Methodology, Overall Results and Recommendations

Financial Advisory Strategy Consulting Market IntelligencePolicy Consulting

RecommendationsBrussels, 7 December 2011

Jan-Benjamin Spitzley, Edoardo Binda Zane, Robert Brückmann

Agenda

• Purpose of the contract & tasks

• Methodology

• Main findings

Structure of presentation

RES-Integration

2

• Main findings

• Barriers & solutions

• NREAP assessment

Task of Study

• “Assessment of current legal, technical and operational framework of grid and electricity

market related issues in each of the EU-27 Member States.“

• “Establishment of a comparative study of the present situation and the future plans,

description of the regulatory framework and identification of best practices and

recommendations regarding grid and market integration of electricity from renewable

sources.“

Purpose of contract & tasks:

RES-Integration

3

sources.“

• “Assessment of Compliance with the requirements of Article 16 of Directive 2009/28/EC on

the promotion of the use of energy from renewable sources.”

• “Evaluation of the consistency, viability and credibility of the foreseen measures related to

the sectoral electricity targets reported under each NREAP.“

• “Formulation of recommendation for each Member State and the EU as a whole.”

Methodology RES-Integration

Methodology steps I

Research

First consultation round

4

Compilation of national reports

Second consultation round

Methodology RES-Integration

Methodology steps II

Harmonisation of barriers

Open final consultations

5

NREAP evaluation

National & European recommendations

Main Findings

Grid connection as very critical

phase for integration

RES-Integration

6

phase for integration

Main Findings

Grid connection as very critical phase for integrat ion

RES-Integration

40 barriers detected

(Operation: 7; Development:16)

Most information available

7

No opposition to current focus of

debate on development

Main Findings

Very strong link between

connection and development

RES-Integration

8

connection and development

phase

Main Findings

Very strong link between connection and development phase

RES-Integration

Two sides of same medal

Reciprocity of barriers

9

Especially relevant for

costs as well as for waiting time

Main Findings

Grid operation presently no

serious issue

RES-Integration

10

serious issue

Main Findings

Grid operation presently no serious issue

RES-Integration

Low share of volatile RES-E in

many MS

Situation may change

dramatically in the future

11

Early steps required to

minimise future impact

Main Findings

Grid development suffers quite

strong lack of regulatory

RES-Integration

12

strong lack of regulatory

instruments

Main Findings

Grid development suffers quite strong lack of regul atory instruments

RES-Integration

High costs for grid operators for RES

integration

Current regulatory instruments only

partially cover costs

13

Problem especially at DSO level in regions with low

population and high RES-E potential

Unbundling has impaired financial situation of some

grid operators

Main Findings

NREAPs mainly do not

address the barriers identified

RES-Integration

14

address the barriers identified

in this study

Main Findings

NREAPs mainly do not address the barriers identifie d in this study

RES-Integration

MS were not aware of issues

MS had no interest in sharing information with

Commission

15

Issue did not fit in categories of

NREAP template

Grid Connection – Barrier Analysis

• Impossibility of

connection due to

insufficient

infrastructure

• Higher growth rate of

RES-E than

Lack of grid capacity / different pace of grid and RES-E development

RES-Integration

16

RES-E than

development rate of

infrastructure

• Consequence:

deployment and RES-

E integration slowed

down

Steps at European level – General guidelines

Different pace of grid & RES-E development leading to lack of grid capacity

RES-Integration

Enhance coordination between RES-E & grid infrastructure development

17

Steps at European level – Enhance Coordination RES-Integration

Data

• Clear data basis of existing and planned RES-E

Planning

• Master plans including overall electricity

Cooperation

• Dedicated regional platforms (All Island project –

Concrete Steps:

18

planned RES-E plants

• Ambitious long term targets (2020-2050)

electricity sector (Planning process in Estonia, TYNDP)

Island project –Ireland)

• Development in neighbouring countries process (Austria)

Steps at European level – Enhance Coordination

Action at European level:

RES-Integration

Data

• Clear data basis of existing and planned RES-E plants

Planning

• Master plans including overall electricity sector

Cooperation

• Dedicated regional platforms (All Island project –Ireland)

Methodology

19

plants• Ambitious long

term targets (2020-2050)

sector (Planning process in Estonia, TYNDP)

Ireland)• Development

in neighbouring countries process (Austria)



RES-Integration

Data


Planning


Cooperation


TYNDP

20








RES-Integration

Data


Planning


Cooperation


EU Projects

21







• Connection not

possible, because

whole capacity is

reserved by plants

that are not yet

connected

Virtual saturation and speculation

RES-Integration

22

connected

• Speculation main

reason


Speculative behaviour and virtual saturation

RES-Integration

Adopt national legal framework to more and differen t stakeholders

23

Steps at European level – Adopt national laws

Concrete Steps:

RES-Integration

Milestones

• Intermediate steps and milestones

• Achievement of

Reservation fee

• Fee for project developers upon reserving capacity

Open issue

• What solution for countries where virtual saturation is

24

• Achievement of milestones conditional for grid reservation (France, Estonia, Germany...)

capacity (Bulgaria and Poland)

saturation is already existing?



RES-Integration

Milestones


• Achievement of

Reservation fee

• Fee for project developers upon reserving capacity (Bulgaria and

Open issue

• What solution for countries where virtual saturation is already

Attention to existence of barrier

25






RES-Integration

Milestones


• Achievement of

Reservation fee


Open issue


Final choice not necessary

26






RES-Integration

Milestones


• Achievement of

Reservation fee


Open issue


Initialise discussion process

27





• Communication

problems and other

general conflicts

between grid

operators and plant

operators

Lack of communication & conflicts & weak position of plant operators

RES-Integration

28

operators

• Weak position of plant

operators

• Lack of trust in

judicial procedures


Lack of communication, conflicts and weak position of plant operators

RES-Integration

Improve communication between stakeholders

29

Steps at European level – Improve Communication

Concrete Steps:

RES-Integration

Process

• Opportunities for communication at early stage of process

Platform

• Communication platforms (Electricity Networks Strategy

Direct link

• Permanent representation of stakeholder groups for continuous

30

process• Central bodies

providing out-of-court decisions (EEG Clearingstelle –Germany)

Strategy Groups – Great Britain, Plan N –Germany)

continuous contact



RES-Integration

Process


Platform


Direct link


Legal definitions

31




continuous contact



RES-Integration

Process


Platform


Direct link


Support initiatives

32




continuous contact



RES-Integration

Process


Platform


Direct link


Encourage actions

33




continuous contact

Grid development – Barrier Analysis

• Mismatch between

incentive regulation

that aims at cost

reduction and network

extension needed for

RES-E development

Lack of incentives & regulatory instruments for the grid operator to integrate RES-E

RES-Integration

34

RES-E development

that leads to higher

costs

• Particular problem at

DSO level in case of

DSOs in large and

uninhabitated areas


Lack of incentives or regulatory instruments for gr id development

RES-Integration

Increase investment security for grid development

35

Steps at European level – Increase investment securi ty

Concrete Steps:

RES-Integration

RES-E integration considered by

regulation

• Provide priority premiums for projects supporting

Financing

• Financial assistance for investments in large projects of

Modalities

• Decrease minimum limits of eligible costs for

36

supporting integration of RES-E

• Improve deadlines through carrot-for-less-and-stick-for-more-solution

large projects of grid operators, where required

for reimbursement

• Allow for reimbursement of staff costs and IT investments


Actions at European level:

RES-Integration


regulation


Financing


Modalities


European projects

37




for reimbursement




RES-Integration


regulation


Financing


Modalities


Encourage or harmonise

38




for reimbursement




RES-Integration


regulation


Financing


Modalities



39




for reimbursement



• Time the plant

operator needs to wait

before connection to

the grid and feeding of

electricity in the grid

• Strongest category

Long lead times / inefficient procedures – development phase

RES-Integration

40

• Strongest category

assessed throughout

the EU 27 Member

States


Long lead times and complex procedures

RES-Integration

Increase efficiency of grid development process

41

Steps at European level – Increase efficiency

Concrete Steps:

RES-Integration

Analysis

• Identification of existing inefficiencies

Organisation

• Shift of workload to private actors

Processes

• Fast-track procedure for specific

42

inefficiencies private actors• Harmonisation

and simplification of requirements

specific projects

• One-stop-shop procedure

Steps at European level – Increase efficiency RES-Integration

Analysis


Organisation


Processes

• Fast-trackprocedure for specific

European projects


43



specific projects



Analysis


Organisation


Processes




44



specific projects



Analysis


Organisation


Processes




45



specific projects


NREAP assessment

Considerations on NREAP assessment

RES-Integration

MS were not aware of barriers

• Enhance information flow in MS• monitoring

MS had no interest in sharing

barrier

• Convince MS that it is them who mainly benefit from the

Categories of NREAP template

not suitable

• Widen the scope of the NREAP template and supplement it by

46

• monitoring mechanism

• collection of interviews

• „suggestion box“

benefit from the NREAP process

• Provide the Commission with sufficient information to base its findings on own sources

supplement it by open questions

Conclusion

• Grid connection as very critical phase for integrat ion

• Very strong link between connection and development phase

•

Summary of main findings

RES-Integration

47

• Grid operation presently no serious issue, but pote ntially in the future

• Grid development suffers quite strong lack of regul atory instruments

• NREAPs mainly do not address the barriers identifie d in this study

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