www. erranet.org
EU Policy on Renewables
Development
Prepared by
Jenny Winkler
2 1st Training Course: Fundamentals of Energy Regulation
May 23 – May 25, 2018 • Nicosia, Cyprus
Agenda
1. 2020 targets and policy
2. 2030 targets and policy
3 1st Training Course: Fundamentals of Energy Regulation
May 23 – May 25, 2018 • Nicosia, Cyprus
2020 targets and policy
Pictures; GuentherHH on Flickr and
Armin Kübelbeck, CC-BY-SA,
Wikimedia Commons
4 1st Training Course: Fundamentals of Energy Regulation
May 23 – May 25, 2018 • Nicosia, Cyprus
Climate and energy targets 2020
At least 20% reduction in greenhouse gas emissions compared to
1990
Energy savings of 20% or more
At least 20% of renewables in final energy consumption.
5 1st Training Course: Fundamentals of Energy Regulation
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Interactions between targets
GHG emissions target (% reduction compared to
baseline year)
Energy efficiency target (% reduction compared to baseline FED
and TPED)
Reduced need for curbing emissions using other
technologies
Reduced requirements for absolute energy generation from
renewables
Instrument: ETS ETS certificate price
reduction if too high or not considered adequately
Uncertainty regarding industrial development if not clear
Lock-in effects in high carbon technologies
Renewable energy target (% of FED)
6 1st Training Course: Fundamentals of Energy Regulation
May 23 – May 25, 2018 • Nicosia, Cyprus
Instruments for reaching the 2020 targets
Effort sharing
EU-ETS
National binding RES targets
National RES support
EU efficiency policies
National efficiency policies
7 1st Training Course: Fundamentals of Energy Regulation
May 23 – May 25, 2018 • Nicosia, Cyprus
Effort sharing
.
8 1st Training Course: Fundamentals of Energy Regulation
May 23 – May 25, 2018 • Nicosia, Cyprus
EU-ETS
.
Design details
Sectors: iron and steel, minerals, energy, and pulp and paper
Not included: transport (air and land), non-industry sectors
Target: 20% reduction by 2020 (compared to 1990)
The National Allocation Plans (NAP) indicate how many emission allowances the
MS intend to issue
NAPs also show how distribution to the installations subject to emissions
trading
2005-2007: phase I / trial phase, free allocation of certificates
2008-2020: phase II and III, (partial) auctioning of certificates
Offsetting possible with JI and CDM (Kyoto protocol)
Problems
Over-allocation of certificates (in combination with economic crisis)
Windfall profits through uniform pricing
High price volatility
Low incentives to stimulate cost reductions on the long-term
6
9 1st Training Course: Fundamentals of Energy Regulation
May 23 – May 25, 2018 • Nicosia, Cyprus
National renewable energy targets
.
Flatrate appoach adjusted by GDP per
capita
10 1st Training Course: Fundamentals of Energy Regulation
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Target achievement (expected 2011)
Source: EREC 2011
11 1st Training Course: Fundamentals of Energy Regulation
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Renewable shares in EU countries
Source: EU Energy Union Indicators
12 1st Training Course: Fundamentals of Energy Regulation
May 23 – May 25, 2018 • Nicosia, Cyprus
Renewable support policies in EU countries
Source: EU Energy Union Indicators
13 1st Training Course: Fundamentals of Energy Regulation
May 23 – May 25, 2018 • Nicosia, Cyprus
Support schemes
Before RED I long discussion about harmonization of support schemes
FIT versus Quota
Technology-specific vs. technology neutral
Administrative vs. market-based
Agreement: too little evidence to agree on one scheme
14 1st Training Course: Fundamentals of Energy Regulation
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Comparison of different support schemes
Analysis project „Beyond 2020“
Source: Steinhilber et al. 2013
15 1st Training Course: Fundamentals of Energy Regulation
May 23 – May 25, 2018 • Nicosia, Cyprus
New Guidelines on Environmental and
Energy State Aid for 2014–2020
DG Competition sets new rules for supporting renewables
Market-based support
Market–based determination of support levels (with exemptions for small plants)
Market participaton of renewables (with exemptions for small plants)
No incentive to generate at times of negative prices
Technology-neutral support (with exemptions)
Inclusion of plants from other countries in support schemes
Result: Trend towards auctions (will be explained in more detail in my
presentation about Germany)
16 1st Training Course: Fundamentals of Energy Regulation
May 23 – May 25, 2018 • Nicosia, Cyprus
2030 targets and policy
Pictures; GuentherHH on Flickr and
Armin Kübelbeck, CC-BY-SA,
Wikimedia Commons
17 1st Training Course: Fundamentals of Energy Regulation
May 23 – May 25, 2018 • Nicosia, Cyprus
Timing of trilogue
11/06 Energy Council
Trilogue
Trilogue
Council position
EC Council EP
RES Targets (Art 4)
Target: At least 27%; Linear trajectory
Target: at least 27%; Non-linear trajectory; reference point of at least 24% of total increase by 2023; 40% by 2025; 60% by 2027 (indicative trajectories, shall add up to the Union reference points in 2023, [ ] 2025 and 2027 [ ] )
Target: At least 35%; Progressive, close to linear trajectory: 20% for 2021-22 45% for 2023-25 70% for 2025-27
@ Fh-ISI | 04/04/2018
Governance - Targets
1st Training Course: Fundamentals of Energy Regulation
May 23 – May 25, 2018 • Nicosia, Cyprus
@ Fh-ISI | 04/04/2018
Governance - Trajectories
Non-linear reference points in council, but no significant “dent” (i.e. no risky/excessive delay of RES deployment; less delay than in 2020 minimum trajectory).
EP more ambitious than EC (but some flexibility) No “corridors”/mechanism for reaching higher Union shares?
1st Training Course: Fundamentals of Energy Regulation
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20 1st Training Course: Fundamentals of Energy Regulation
May 23 – May 25, 2018 • Nicosia, Cyprus
Background and Motivation
Suggestions for 2030 targets
No nationally binding targets for renewable energies
Pledging approach: Evaluation with benchmarks
What do the 2030 targets mean for Germany and other MS? What
are the consequences?
EU Commission Concil of the EU European Parliament
2030 targets for renewable energies
27% 27% 35%
2030 targets for energy efficiency
30% 30% 35%
Estimation of national contributions to target achievement considering the
EP benchmark formula for different target combinations
21 1st Training Course: Fundamentals of Energy Regulation
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Relation Targets Renewable Energy and
Efficiency
Basis: 30% RES-targets and 30% energy efficiency targets
Increasing the energy efficiency target leads to lower ambition levels regarding renewable energies (in absolute terms)
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
RES-target without RERE-target without RES Combined targets
tota
l dem
and
RES-target
total demand total
demand
RE-saving RE-saving
total demand
RES-target
22 1st Training Course: Fundamentals of Energy Regulation
May 23 – May 25, 2018 • Nicosia, Cyprus
Methodology and Assumptions
2020-targest according to RED (2009/28/EC) of the Member States
will be achieved
Estimation based on Impact Assessment of the EU Commission (SWD
(2016) 410final): Reference and EUCO
Distribution to Member States based on EP-proposal for benchmarks
(RED II, Annex Ia)
Flat-rate contribution 30%
Economic potential
GDP per head : 30%
Geographic and natural restrictions
Potential-based : 30%
Contribution based on interconnector capacity: 10%
Page 23
74
105
61
91
0
20
40
60
80
100
120
30% RES by 2030 33% RES by 2030
RE
S d
ep
loym
ent
[Mto
e]
30% Energy Efficiency 33% Energy Efficiency
For comparison: 2010-2020
Impact of the Energy Efficiency Target on Renewable Energy - EU
Higher energy efficiency target lower ambition level for renewable energies
Council proposal of RES 27% and EE 30% Significant decrease in the addition of renewable energies (40 Mtoe net addition)
To maintain the current rate of expansion Increase RES-target 30-33%
Development Renewable Energies
(absolute)
Development Renewable Energies
(net addition)
310 341
296 326
0
50
100
150
200
250
300
350
400
30% RES by 2030 33% RES by 2030
RE
S d
ep
loym
en
t [M
toe]
30% Energy Efficiency 33% Energy Efficiency
Status Quo (2015) 2020 RES target
Page 24
Effort Sharing of the proposed Targets : Impact on Germany - Share of Renewables
30,0
%
27,4
%
33,0
%
30,2
%
16,7% 14,6%
20,0% 18,0%
27,1% 23,1%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
55%
60%
65%
70%
EU28 Germany
RE
S s
hare
in
gro
ss fin
al e
ne
rgy d
em
and
[%
]
30% RES by 2030 33% RES by 2030 Status Quo (2015)
2020 RES target 27% RES by 2030
27%-comparison corresponds to "least cost" development, not the BM formula
Compared with the EU, the share of renewables in DE is lower
Renewable target of 33% at EU level Benchmark renewable approx. 30% (according to EP proposal)
Lower ambition level new BM formula compared to 2020 logic
28
,6%
31,7
%
Germany –
2020-Logic
Page 25
11
17
9
14
02468
1012141618
30% RES by 2030 33% RES by 2030
RE
S d
ep
loym
ent
[Mto
e]
30% Energy Efficiency 33% Energy Efficiency
For comparison: 2010-2020
Impact of the Energy Efficiency Target on Renewable Energy - Germany
Reduction of renewable development by 3.5%-3.9% with an increase in the target level energy efficiency from 30% to 33%
Effects on the rate of expansion of renewable energies in DE are more drastic than at EU level
Only a combination of 30% energy efficiency and 33% renewables target is at the current level of of capacity being added
Development Renewable Energies
(absolute)
Development Renewable Energies
(net addition)
51
56
49 54
0
10
20
30
40
50
60
30% RES by 2030 33% RES by 2030
RE
S d
ep
loym
en
t [M
toe]
30% Energy Efficiency 33% Energy Efficiency
Status Quo (2015) 2020 RES target
26 1st Training Course: Fundamentals of Energy Regulation
May 23 – May 25, 2018 • Nicosia, Cyprus
Conclusions on target levels and
distibution
EU level
Council proposal of RES 27% and RE 30% implies reduction in the
rate of expansion of renewable energies
At the country level, this can also mean an increase in the rate of
expansion
To maintain the current rate of expansion of renewable energies at
EU level, a target of at least 33% would be needed
Germany
Application calculation logic BM leads to lower absolute
contribution of renewable energy than 2020 logic
Increasing the target level above 27% is desirable in order to
maintain the absolute ambition level for renewable energy
@ Fh-ISI | 04/04/2018
Gap filler and gap avoider instruments
1st Training Course: Fundamentals of Energy Regulation
May 23 – May 25, 2018 • Nicosia, Cyprus
Gap filler:
If EU targets not reached by national contributions, gap filler instruments are required
example: EU-level tenders
open questions:
what kind of instrument?
targeted technologies and locations?
Financial distribution by member state/ burden sharing?
Gap avoider:
Measures to ensure adequate levels of ambition by MS
Measures to bring MS to fulfill their indicative targets
Key problem: How to make non-binding targets to a certain degree binding
EC Council EP
Article 9: EC recommendations
Commission may issue recommendations on the draft plans to Member States
Commission may issue recommendations within 4 months of the date of reception of the draft plan (recommendations and opinions shall have no binding force)
The Commission shall issue country-specific recommendations in order to… ensure collective achievement, improve policies and suggest adoption of additional policies
Member States shall take utmost account of any recommendations
Member States shall take [] due account of any recommendations
Member States shall take utmost account of any recommendations
@ Fh-ISI | 04/04/2018
Governance – avoiding the gap
Language on recommendations weakened in Council position, but strengthened in EP
1st Training Course: Fundamentals of Energy Regulation
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EC Council EP
Regional cooperation (Art 11)
- MS shall cooperate to meet the targets, objectives and contributions of NECPs - Before submitting draft NECPs, MS shall [ ] identify opportunities for cooperation and consult neighbouring MS - COM shall facilitate coop.
- MS shall cooperate to meet the targets, objectives and contributions of NECPs - Before submitting draft NECPs, MS shall [ ] identify opportunities for cooperation and consult neighbouring MS - Where necessary, COM shall facilitate coop.
- Cooperation at macro-regional and regional level, utmost consideration all existing and potential forms of cooperation - Before submitting, draft NECP, identify opportunities & consult neighb. MS - COM shall identify opportunities for cooperation and may issue recommendations
@ Fh-ISI | 04/04/2018
Governance– avoiding the gap
Language on regional cooperation weakened but mostly confirmed in Council position. EP wants to strengthens role of COM and of macro-regions.
1st Training Course: Fundamentals of Energy Regulation
May 23 – May 25, 2018 • Nicosia, Cyprus
EC Council EP
Article 27: implementation gap / reference points (Art 25)
2023: If linear Union trajectory is not collectively met, Member States shall implement additional measures (H&C, T, financial plattform) EC to take into account early contributions
If reference points were not collectively met (2023, 2025, 2027), MS below national reference points shall ensure by 2026, 2028, 2030 that gap compared to their indicative Union trajectory is covered by implementing additional measures
If MS not making sufficient progress (not complying with its reference points in 2022, 2025 & 2027): shall cover gap by additional measures (promote RES, plattform) - EC to take into account early contributions - EC shall take additional measures at Union level to ensure Union binding traj.
@ Fh-ISI | 04/04/2018
Governance – avoiding the gap
Council: National contributions are more binding than in EC proposal (implementation not compared to benchmark but compared to national reference points = share of national contribution/pledge)
Three instead of one reference points. Potentially more pressure and immediate reactions in case of implementation gap than in 2020 framework.
1st Training Course: Fundamentals of Energy Regulation
May 23 – May 25, 2018 • Nicosia, Cyprus
EC Council EP
Article 13: Updated NECPs
By 1 January 2024, and every 10 years thereafter, Member States shall notify an update of the latest NECP (draft update 1 year before) Modification of targets requires increased ambition
Update by June 2024 (draft 1 year before) Modification of targets requires equal or increased ambition Nothing prevents MS from making changes and adaptations in national policies set out or referred to in their NECP at any time.
Article deleted (New NECP every 5 years instead of updates)
@ Fh-ISI | 04/04/2018
Governance – avoiding the gap
Positive (but also absolutely necessary): no decrease in ambition level. Investor security might require policy stability (and not just on ambition level regarding
headline targets); on the other hand, the value of NECPs increases if they are updated based on actual developments 1st Training Course: Fundamentals of Energy Regulation
May 23 – May 25, 2018 • Nicosia, Cyprus
EC Council EP
Article 27: ambition gap
- If contributions insufficient for EU target: measures at Union level - Take into consideration the level of ambition
- If contributions of MS insufficient for EU target, EC may issue non-quantitative recommendations (to MS whose contributions are insufficient) to increase their ambition. - EC to adopt implementing acts to establish methodology for assessment of ambition level (with MS) - EC shall propose [ ] measures and make use of relevant empowerments at Union level
- On the basis of the draft NECP, EC may request MS whose targets are deemed insufficient to increase their amibition - On the basis of NECP: If contributions insufficient for EU target: measures at Union level
@ Fh-ISI | 04/04/2018
Governance – avoiding the gap
Positive: EC recommendations and benchmarks included in Council and EP version; Non-quantitative recommendations on ambition level? EC and EP: Union measures already in case of insufficient ambition Council: Unclarity on EU measures if ambition level remains too low: What are
„empowerments at Union level“? When to be used?
1st Training Course: Fundamentals of Energy Regulation
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EC Council EP
Art 27: benchmarks
No explicit benchmarks for ambition level; MS shall take into account circumstances, such as: - Equitable distribution - Economic potential - Geographical and natural
constraints - Power interconnections
Benchmarks for ambition level to be defined in implementing acts; Based on objective criteria = „any relevant circumstances“ (Art 5), such as: economic conditions and potential, GDP per capita, and potential for cost-effective deployment, early efforts
Benchmarks for ambition level Annex with benchmark formula: • Flat rate (30%) • GDP per capita (30%) • RES potential (30%) • Interconnectivity (10%)
@ Fh-ISI | 04/04/2018
Governance - – avoiding the gap:
Benchmarks
Council + EP: Improvement compared to EC proposal: benchmarks are in. Council: Potential risk: uncertainty how benchmarks will be defined in the end EP: Formula creates most certainty, but strong weight of potential (30%) likely to create
opposition by some MS
1st Training Course: Fundamentals of Energy Regulation
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EC Council EP
Article 27: implementation gap / reference points (Art 25)
2023: If linear Union trajectory is not collectively met, Member States shall implement additional measures (H&C, T, financial plattform) EC to take into account early contributions
If reference points were not collectively met (2023, 2025, 2027), MS below national reference points shall ensure by 2026, 2028, 2030 that gap compared to their indicative Union trajectory is covered by implementing additional measures
If MS not making sufficient progress (not complying with its reference points in 2022, 2025 & 2027): shall cover gap by additional measures (promote RES, plattform) - EC to take into account early contributions - EC shall take additional measures at Union level to ensure Union binding traj.
@ Fh-ISI | 04/04/2018
Governance – filling the gap
Council: National contributions are more binding than in EC proposal (implementation not compared to benchmark but compared to national reference points = share of national contribution/pledge)
Three instead of one reference points. Potentially more pressure and immediate reactions in case of implementation gap than in 2020 framework.
1st Training Course: Fundamentals of Energy Regulation
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EC / Council / EP
Additional issues
- Financing plattform further defined - Political Monitoring of governance system (EC presentations to council) - EC to be assisted by Energy Union and Climate Change Committees. - NECP templates largely remained the same
@ Fh-ISI | 04/04/2018
Governance – Additional Issues
Potential risk: MS completely free to reject RES installations on their ground (should
potentially have to provide reasons for rejection?) Unclear how committees are composed, how they work, and what their role will be. NECP structure relatively strong (compared to attempts to weaken them)
1st Training Course: Fundamentals of Energy Regulation
May 23 – May 25, 2018 • Nicosia, Cyprus
Article 4 Financial support for RES-E
• Principle of direct marketing, exception for small plants (2020: <250 kW, 2026: 150 kW)*
• Support “shall” be granted by sliding or fixed market premium, but specific conditions for small-scale installations, demo-projects
• Principle of market-based and technology-neutral support (competitive bidding)
• Exemptions due to limiting competition (grid/system development, long-term potential, energy mix diversification, distortions raw material markets, system integration costs)
• Regional diversification possible to ensure cost-efficient system integration
• No more requirement for assessing the effectiveness every 4 years (?)
@ Fh-ISI | 04/04/2018
RED II
Support Schemes – General
*Electricity regulation
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European Parliament
• Technology-specific support allowed due to potential, system integration and grid stability
• Exemption for installation <500kW, wind 3MW, no tender for capacity > 1MW, 6 MW (wind)
• When using tenders MS shall use prequalification, stakeholder consultation, publish past realization rates to achieve high realization rates
• MS shall publish long-term schedule 5 years.
• Special support for small island regions
• requires analysis of tender by EC every 3 years
@ Fh-ISI | 04/04/2018
RED II
Support Schemes – General
*Electricity regulation
1st Training Course: Fundamentals of Energy Regulation
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Article 5 Opening of support schemes for RES-E
• MS shall decide extent to which support schemes are opened
• MS “encouraged” to open at least 10% (2021-2025) and 15% (2026-2030). Deviation possible due to limited interconnectivity
• Proof of physical import possible (without changing cross-zonal schedules and capacity allocation)
• EC shall assess costs and benefits by 2025
Pro: Softer formulation, but link to interconnectivity, Con: Risk for new Aland-decision?
European Parliament
• Flexibility for MS: “This Directive aims at facilitating cross-border support of energy from renewable sources without affecting national support schemes in a disproportionate manner.”
• Reasons for not opening: insufficient interconnection, resources, negative impact on energy security
@ Fh-ISI | 04/04/2018
RED II
Opening And Stability
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Article 6 Stability of financial support
• Adaptation of support level now possible, if embedded in original support scheme.
European Parliament
• “Support schemes should be predictable and stable and avoid frequent or retroactive changes.”
• Requires long-term planning an announcement, at least 9 months. Transitional period. Compensation if economics significantly worsened.
@ Fh-ISI | 04/04/2018
RED II
Opening And Stability
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Article 7 Calculation methodology
• Gross final consumption includes RES self-consumption and consumption from energy communities
• The EC shall define (in Implementing Act) an interim methodology for calculating quantity of RES for cooling and district cooling by end of 2018
• (Delegating Act): further development of methodology by end of 2021
• Methodology shall include minimum seasonal performance factors for heat pumps operating in reverse mode
European Parliament
• suggests factor of 2 for RES in aviation, 1,2 for maritime sector, RES-E for road vehicles: 2.5
@ Fh-ISI | 04/04/2018
RED II
Calculation Methodology
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Articles 8, 9, 10, 11, 12, 13
• Prolongation of cooperation mechanisms to 2030 and beyond
• Facilitation of statistical transfers: Establishment of European Union Renewable Development Platform (ERDP) for monitoring shortfalls or overachievment and prices (in Delegating Act)
European Parliament
• The EC shall assist MS (provide quantitative data on costs/benefits, encourage exchange of best practices, develop template for cooperation agreements)
@ Fh-ISI | 04/04/2018
Cooperation Mechanisms
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Typically higher generation costs due to small plant size
potentially higher acceptance and additional financing sources for renewable energy
analysis for Germany shows very little potential for grid cost savings (highly depending on location)
@ Fh-ISI | 04/04/2018
Self-Consumption - Effects
1st Training Course: Fundamentals of Energy Regulation
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@ Fh-ISI | 04/04/2018
Self-Consumption - Macroeconomic vs.
private optimum
1st Training Course: Fundamentals of Energy Regulation
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Electricity retail price
Generation costs
Grid fees
Other fees/ta
xes
Generation costs
Costs for self consumers Costs of SC for society
Generation costs
Grid fees
Other fees/ta
xes
Article 21 Renewable self-consumers
• No disproportionate procedures and changes and “ensuring they contribute in an adequate and balanced way to cost sharing”
• considered self-consumers in relation to self-produced/consumed RES-E. Quantity threshold (<10MWh HH, 500MWh legal persons) has been removed
• Remuneration of feed-in should reflect market value (and support schemes)
European Parliament
• Renewable self-consumers are entitled
• to consume their self-generated renewable electricity, which remains within their premises, without liability for any charge, fee, or tax;
• to install/operate electricity storage systems combined with installations generating renewable electricity for self-consumption without liability for any charge, including taxation and double grid fees for stored electricity
• broader definition of joint self-consumption: residential area, industrial services, distribution system
• requires MS to assess barriers and potential for self-consumption
@ Fh-ISI | 04/04/2018
RED II
Self-Consumption
1st Training Course: Fundamentals of Energy Regulation
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Aim: comparing different revenues / return on investment levels for different self-
consumption cases in different countries in case of “full exemption”
Assumptions:
• “full exemption” from levies/taxes/charges
• Retail prices constant over time, based on Eurostat statistics 2017
• Wholesale price: moderate development based on Primes assumptions (Reference Scenario 2016)
• No support for excess RES fed into the grid (only wholesale price as a revenue)
Aim and Assumptions
Different possible definitions and sizes of
SC
Single Family Home
Apartment block Small district Services Industry Residential Area
Plant size (kW) 5 10 30 100 750 10.000
Self-consumption-ratio 35 60% 60% 85% 85% 60%
1st Training Course: Fundamentals of Energy Regulation
May 23 – May 25, 2018 • Nicosia, Cyprus
10% 10%
7% 6% 6% 5%
4% 4% 3%
2% 2% 2% 1% 1%
0% 0% -1%
-2% -2% -2%
-2% -4%
-4%
0%
4%
8%
12%
16%
20%
PT ES IT CY GR DK DE BE MT IE FR AT RO SI LV BG UK HR NL SE HU PL SK LU LT CZ FI EE
Inte
rnal
rat
e o
f re
turn
[%]
Internal rate of return for PV Self-consumption 2018 Single Family Home (5 kW)
Single Family Home– Internal Rate of
Return 2018
Average rate of return for RES projects in Europe
based on Primes (discount rate 7,5-8,5%)
1st Training Course: Fundamentals of Energy Regulation
May 23 – May 25, 2018 • Nicosia, Cyprus
19% 19%
15% 14%
13% 13% 12%
12% 11%
9% 9% 8% 8% 8% 8% 8%
7% 6% 6% 6% 6% 6% 5% 5% 5% 5% 5% 4%
-4%
0%
4%
8%
12%
16%
20%
PT ES IT CY DK GR DE MT BE IE AT FR LV BG RO SI NL UK LT PL SE HR HU CZ SK LU FI EE
Inte
rnal
rat
e o
f re
turn
[%]
Internal rate of return for PV Self-consumption 2028 Single Family Home (5 kW)
Single Family Home– Internal Rate of
Return 2028
Average rate of return for RES projects in Europe
based on Primes (discount rate 7,5-8,5%)
14% 14% 14% 13%
11%
9% 8%
6% 6% 6% 5% 5% 5% 5% 4% 4% 3% 3%
2% 1% 1% 1% 1% 0%
-0% -2%
-3% -3% -4%
0%
4%
8%
12%
16%
20%
24%
28%
IT MT CY PT ES GR DE LV IE FR UK SK BE BG RO HR AT LT SI DK PL NL HU EE LU CZ FI SE
Inte
rnal
rat
e o
f re
turn
[%]
Internal rate of return for PV Self-consumption 2018 Services (100 kW)
Services – Internal Rate of Return 2018
Average rate of return for RES projects in Europe
based on Primes (discount rate 7,5-8,5%)
24% 23% 23%
22%
20%
17% 16%
14% 13% 12% 12% 12% 11% 11% 11% 10% 10% 9%
8% 7% 7% 7% 7% 7% 6%
4% 3% 3%
-4%
0%
4%
8%
12%
16%
20%
24%
28%
IT MT CY PT ES GR DE LV IE FR UK SK BG BE RO HR AT LT SI PL DK NL HU EE LU CZ FI SE
Inte
rnal
rat
e o
f re
turn
[%]
Internal rate of return for PV Self-consumption 2028 Services (100 kW)
Services – Internal Rate of Return 2028
Average rate of return for RES projects in Europe
based on Primes (discount rate 7,5-8,5%)
Article 23 Mainstreaming renewable energy in the heating and cooling installations • MS shall endeavour increase in share of RES H&C (+1pp annually indicative) • Contribution from waste heat and cold can be considered • MS with share of >=50% do not need any increase • If additions below 1pp, reasoning of MS and explanation is required • Options
• Physical quota • Direct mitigation measures through installation of efficient H&C systems in
buildings/industry • Indirect mitigation proven by certificates (measure realised by another player)
• MS may use structures from Article 7 EED • List of planned measures and annual reporting required European Parliament • requires blaming of MS if MS do not achieve increase • “should go hand in hand with a deep renovation of buildings”
@ Fh-ISI | 04/04/2018
RED II
Obligation on Heating & Cooling
Article 25 Mainstreaming RES in the transport sector
• RES-T target 14% by 2030
• Limitation to food/feed-crop based biofuels: 7% with possibility for MS to lower limit. Overall target may be reduced accordingly, if 1st generation is lower than 7%
• Sub quota for advanced biofuels: 3%
• Exemptions rules for CY, MT: Take into account inherent limitations. No concrete formula or specification.
• Multiplier: RES-E for road vehicles: 5 RES-E for rail: 2
• The EC shall adopt methodology to assess GHG-savings for RES-based PtX-fuels (Dec 2021)
European Parliament
• highlights relevance of advanced biofuels for aviation
• requires increased e-mobility, advanced technologies in rail and reduce energy consumption in transport including increase in energy efficiency of cars
• suggest fuel efficiency standards
@ Fh-ISI | 04/04/2018
RED II
Transport
W
THANK YOU
FOR YOUR ATTENTION!
1st Training Course: Fundamentals of Energy Regulation
May 23 – May 25, 2018 • Nicosia, Cyprus
E-mail: [email protected]
Web: www.isi.fraunhofer.de
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