AUSTRIA AS A SHOWCASE FOR A NUCLEAR-FREE ENERGY SYSTEM

We love energy efficiency

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1 SAFE NUCLEAR INTERMEZZO

2 RISE OF RENEWABLES

3 STRATEGIC OUTLINE

4 TRANSPARENCY FOR CUSTOMERS

5 RÈSUMÈ

CONTENTS

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1 | SAFE NUCLEAR INTERMEZZO

4

1956: Austrian Nuclear Energy Studies Company was founded

1963-1970: consortium of electric utilities makes preparations to start construction of a nuclear power plant (NPP)

1969: National Energy Concept includes one NPP

1971: Government gives green light for construction

1972: breaking ground for Zwentendorf NPP

• 50 km northwest of Vienna

• 720 MW, boiling water reactor

1976: updated Energy Concept calls for 3 NPPs 3.300 MW in total until 1990

1978: NPP Zwentendorf ready for operation

• even fuel rods were on-site but not inserted

AUSTRIA'S NUCLEAR EPISODE

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REFERENDUM ON NOVEMBER 5, 1978 SHOWS NARROW „NO“

50,47% 49,33%

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1978: December 5: Anti-Nuclear Law

• Prohibition of nuclear energy in Austria

1978: Mothballing of NPP Zwentendorf

• Efforts to carry out a new referendum in the next years

1979: accident at NPP Three Miles Island

1985: consortium of the NPP decides a „quiet“ liquidation

1986: disaster of Chernobyl

• 10,3% of Austria‘s state territory was contaminated

NPP Zwentendorf today

1985: IT‘S ALL OVER

Quelle: EVN AG & PRIMA VISTA Media & Consulting GmbH

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2 | RISE OF RENEWABLES

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ENERGY POLICY RESPONSE: FURTHER DEVELOPMENT OF RENEWABLES

0

10.000.000

20.000.000

30.000.000

40.000.000

50.000.000

60.000.000

70.000.000

80.000.000

in M

Wh

biomass, wind, pv

hydro

gas

oil

coal & non-res waste

• electricity production from renewables

more than doubled within the last 4 decades

• grew faster than total generation

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WIND – THE MOST IMPORTANT SOURCE WITHIN THE ECO-ELECTRICITY SUPPORT SCHEME

Plus 1.700 GWh from small hydro (2014)

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DOMESTIC ELECTRICITY GENERATION IN LINE WITH DEMAND

0

10.000.000

20.000.000

30.000.000

40.000.000

50.000.000

60.000.000

70.000.000

80.000.000

in M

Wh

others

energy sector

housholds

transport

industry

domestic generation

11

ELECTRICITY NET IMPORTS HAVE BEEN COST DRIVEN SINCE 2003

-30.000.000

-20.000.000

-10.000.000

0

10.000.000

20.000.000

30.000.000

-25,0%

-20,0%

-15,0%

-10,0%

-5,0%

0,0%

5,0%

10,0%

15,0%

20,0%

25,0%

in M

Wh

(im

po

rt -

exp

ort

s) /

do

mes

tic

con

sum

pti

on

electricity imports

electricity exports

import dependence

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SHARE OF RENEWABLES IS GROWING ALSO IN OTHER SECTORS

67,0%

52,6% 49,2% 48,9%

43,0%

38,7%

31,9%

7,3%

0%

10%

20%

30%

40%

50%

60%

70%

2005 2006 2007 2008 2009 2010 2011 2012 2013

electricity generation

agriculture

service sector

househoulds

district heating

industry

final energy

transport (incl.electricity)

Calculation of %-shares based

on EU-Renewables Directive

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IN HEATING RENEWABLES ARE FIRST (INCLUDING HOT WATER PRODUCTION)

coal 0,8%

oil 15,9%

gas 24,0%

electricity 8,0%

district heating 21,1%

renewables 30,3%

30% of total final energy consumption

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OVERALL PICTURE – OIL & COAL LOST, RENEWABLES GAINED MARKET SHARES

25,2% 15,6% 16,3% 12,5% 9,7% 9,7%

48,6%

51,6% 42,2%

41,9% 37,4% 36,2%

13,1% 17,8%

20,8% 22,5%

23,5% 20,6%

9,6% 10,6%

10,8% 12,3%

9,4% 10,6%

5,9% 5,8% 9,3% 10,3%

17,5% 19,2%

0%

20%

40%

60%

80%

100%

1970 1980 1990 2000 2010 2013

fossil waste

other renewables

hydro

gas

oil

coal

share of energy sources on total primary energy consumption

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AUSTRIA - SHARE OF RENEWABLES ARE RIGHT ON EU-TARGET

20

,9%

21

,8%

23

,8%

24

,9%

27

,5%

26

,9%

26

,3%

30

,3%

29

,8%

24,2% 25,6%

27,5% 28,3%

30,4% 30,7% 30,7% 32,1% 32,5%

34,0%

0%

5%

10%

15%

20%

25%

30%

35%

40%

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

share in gross domesticconsumption

share in gross final energyconsumption

based on EU-Renewables Directive

target

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3 | STRATEGIC OUTLINE

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ENERGY INTENSITY AS PROXY FOR EFFICIENCY IS THE „FIRST FUEL“

0

500.000

1.000.000

1.500.000

2.000.000

2.500.000

in T

eraj

ou

le

energy intensity

fossil waste

other renewables

hydro

gas

oil

coal

total

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NATIONAL ENERGY STRATEGY LIMITS THE DEMAND & CALLS FOR MORE RENEWABLES

Energy demand 2020/2005

Buildings -10%

Households, SMEs, services,

agriculture +10%

Energy-intensive industries +15%

Transport -5%

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• Implementation of the Energy Efficiency Directive (2012/27/EU)

• Mixed approach

• Strategic efficiency measures (e.g. taxes, subsidies)

• Saving obligation of all energy suppliers

• all energy sources are covered (oil/transport fuels, gas, coal, biomass, electricity)

• suppliers have to prove savings which amounts to 0,6% of their deliveries to end users in the previous year

• savings are calculated based on defined methods

• Big enterprises have to

• implement energy management systems or

• carry out energy audits

• Efficiency measures in the building stock of the Federal Government requested

ENERGY EFFICIENCY ACT WILL UNDERPIN THE STRATEGIC OBJECTIVE

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• Life cycle analysis of nuclear power

• Study of Austrian Energy Agency and Ecology Institute in 2011

• on behalf of Austrian Climate and Energy Fund

• Key importance of the ore grade for the energy balance

• in the range of 0,02% - 0,01% it turns negative (no energy surplus)

• in the past five decades world wide ore grade was 0,05% to 0,15%

• one third of identified reserves have ore grade under 0,03%

• downward trend is obvious

• Result: CO2-emissions of nuclear power can more than double recent levels

• no „low carbon technology“

• CO2 avoiding costs are higher than all other technologies except traditional coal fired plants

• Doubts on security of supply and several other significant risks

• „The EU is highly dependent on the import of nuclear fuel and related services …“ (EC: Energy Union Package, 2015)

• accidents, health, safe long-term disposal of waste, proliferation, economics

THE MYTH OF NUCLEAR AS „CLIMATE PRESERVER“

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SCENARIO FOR AUSTRIA'S ELECTRICITY SUPPLY 2050

Source: A. Veigl (2012) – Perspectives for Austria: Comparison of national studies

geothermal

wind

photovoltaics

hydro

biomass

imports

growth constant pragmatic ambitious Energy

Energy

balance

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2050

MOST PROVINCES PLAN TO BECOME ENERGY INDEPENDENT UNTIL 2050

Energy independence

2050

2050

2050

2050

2050

2035

2025 electricity & heat

mobility

2020:

50% RES

2020:

34% RES

2030 electricity

& heat

Federal level: 2020 – EU targets

2030 – strategy work in progress

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4 | TRANSPARENCY FOR CUSTOMERS

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• EU Electricity Directive requires the specification of

• the contribution of each energy source

• to the overall fuel mix of the supplier

• in the previous year

• EU Renewables Directive contains

• guarantees of origin of electricity produced from renewable energy sources

• in response to a request from a producer of such electricity

• Member States can recognize guarantees of origin issued by other Member States

• EU Directive on the promotion of cogeneration includes • guarantee of origin of the electricity produced from high efficiency cogeneration

BRINGING THE ENERGY SOURCE TO LIGHT

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• electricity suppliers are obliged to disclose the mix of primary energy sources

• to generate their deliveries to end users

• for all single energy sources, renewables and fossil

• based on guarantees of origin

• plus CO2-emissions and radioactive waste

• shown on annual bills, advertisements and information materials

• starting January 1, 2015 total supply should be labelled

• before “unknown” origin was rated with ENTSO-E Mix

• from 2014 on, at least all supply to households had to be labelled

• system based on the guarantees of origin database of the regulator, E-Control

• covers the full life cycle of the single guarantee of origin

• issuing – transfer – redeeming

• comprehensive review published in annual labelling report

AUSTRIA´S APPROACH TO ELECTRICITY LABELLING

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2013 – 93% OF ELECTRICITY SUPPLY IS LABELLED

Source: E-Control

known renewables: 78,58%

known fossil fuels: 14,35%

other known primary fuels: 0,27%

unknown origin: 6,8%

CO2: 103,33 g/kWh

Radioactive waste: 0,05 mg/kWh

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DECREASING SHARE OF ELECTRICITY WITH UNKNOWN ORIGIN

DEVELOPMENT OF ELECTRICITY WITH UNKNOWN ORIGIN in %

Source: E-Control

2015

0%

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5 | RÈSUMÈ

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• efforts to put NPP Zwentendorf into operation were stopped by a referendum in 1978

• utilisation of renewables was a successful alternative • Austria No. 1 for renewable electricity generation in the EU

• generation from renewables more than doubles within the last decades

• renewables also play an important role in the overall energy picture

• energy strategy for the mid- and long term continues to rely on renewables

• but „first fuel“ is energy efficiency • Energy Efficiency Act will accelerate the creation of an efficiency market

• due to its high risks and inefficient energy- and CO2-balance nuclear energy is no option

• consumers should receive transparent information on how their electricity is generated • an effective and harmonised approach for electricity labelling all over Europe is necessary

• Austria’s scheme can be a role model

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Prof. Herbert Lechner

Deputy Director

Chief Scientific Officer

Österreichische Energieagentur – Austrian Energy Agency

Mariahilfer Strasse 136

A-1150 Vienna

Tel: + 43 1 5861524 - 0

Fax: + 43 1 5861524 - 340

Email: herbert.lechner@energyagency.at

Web: www.energyagency.at

THANK YOU FOR YOUR ATTENTION!