Assessment of EU Policy Developments & Global Trends

Clean Energy Council: National ConferenceAdelaide, 3 May 2010

Dr. Marianne Moscoso-OsterkornREEEP Director General

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Agenda

Overall European Union energy policy

EU Renewable Energy regimes

Global Renewable Energy assessment

REEEP’s global activities

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EU energy market is driven by a number of interlinked policies

Competitiveness

•Renewable energy•Energy efficiency•Nuclear•Research and innovation•Emission trading

•International Dialogue•European stock management (oil/gas)•Refining capacity and energy storage •Diversification

•Internal Market•Interconnections (Trans-European networks) •European electricity and gas network•Research and innovation

•Clean coal•Carbon sequestration•Alternative fuels•Energy efficiency•Nuclear

Sustainable Development Security of supply

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EU energy security can only be achieved through reducing the 70% dependency on energy imports

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

total oil natural gas solids

2000 2010 2020 2030

Source: EUROSTAT

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EU-27 ENERGY MIXEU-27 ENERGY MIX

Source: EUROSTAT

Solid fuels18%

Oil38%

Gas24%

Nuclear14%

Renewables6%

Other0%

Oil34%

Gas27%

Nuclear11%

Renewables12% Solid fuels

16%

20042004 2030 2030 (BaU)(BaU)

Sustainable development cannot be achieved through “business as usual”

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RES-H,T5%

Generation65%

Transmission8%

Distribution27%

Electricity77%

Oil5%

Gas12%

Coal1%

EU-27 INVESTMENT NEEDS through 2030: EU-27 INVESTMENT NEEDS through 2030: €€11.79 trillion.79 trillion

EU future energy investments must build on low carbon solutions

Source: EUROSTAT

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The key driver for a low carbon future is the 20-20-20 target

Source: European Comission

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The EU Renewables Directive is the central policy instrument for promoting RE development

Mandatory national targets, and National Action plans (with sector targets) share of renewables in gross final energy consumption share of renewables in transport

New rules (means of cooperation) relating to statistical transfers between Member States joint projects between Member States and with third countries

Targeted support schemes New requirements relating to

administrative procedures (national, regional, and local coordination) information and training guarantees of origin access to and operation of electricity and gas grids

Sustainability criteria for biofuels and other bio-liquids (10%)

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Shared responsibility among European Member States reflect the differing RE capacity in each country

Source: European Comission

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Feed-in tariffs are the main regulatory driver for RE in EU

Certificate systems

Feed-In tariffs Quota obligation

Fiscal incentivesTenders

AT, BG, CY, CZ, DE, DK, EE, ES, FR, GR, HUIT, IE, LT, LU, PT UK, SI, SK

NL

UK

DK, FR, IE

BE, IT, SE, RO, PL, UK

BG, FI, SI, MT

BG

Source: OPTRES

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Thanks to FIT, Germany overachieved its 2010 RES target (12.5%) in 2007

• German Feed-in Law (EEG) is • Purchase price guarantee• Grid access guarantee• Purchase obligation, priority for

feed-in• Grid operator buys at predefined

rates • National equalization fund• Every power customer pays• Law is reviewed every four years• Federal law• Annual decrease incentivizes early

action• Guaranteed for 20 years

During 2010 the current government has reduced the feed-in tariffs for solar by 16%

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ROCs, which form the basis for UK’s RE support, are supplemented by PV FIT

•Since 1.4. 2010 – Feed in tariff for PV

•Overall goal to address 7 million households

•Registration under the micro generation Scheme is obligatory

•Over 25 years

•The Renewable Obligation Certificate (ROC) – annual obligation for suppliers

•In case of non compliance: payment into the buy-out fund (2010: 36,99 Pound / MWh)

•Buy-out fund redistributes for suppliers who meet compliance (2009: 18,61 Pound / ROC)

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Overinflated FITs can cause unexpected growth, as seen in Spain

436 Royal Decree 2004

• Overall goal 400MW by 2010 – in 2007 already 344MW were installed

• 0.44cent/KWh over 25 years

• Tariff annually adjusted – compensation of inflation

• Priority access to the grid

• Cost transferred to all consumers via the grid tariff

616 Royal Decree 2007

• Overall goal 500 MW by 2010

• 0.32cent/KWh for ground systems 0.34cent/kWh for roof systems

• Quarterly adjusted feed in tariff

• Project must be registered in public registry – currently 392 projects

• Costs transferred to all customers via grid tariff

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Global renewable production is expected to double every decade

Global Installed Capacity

0

500

1000

1500

2000

2500

3000

3500

Photovoltaics ConcentratingSolar Power

Wind(on+offshore)

Biomass (CHP) Geothermal Ocean Energy

GW

2010

2020

2030

2050

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Wind and solar are already well positioned in mainstream utility portfolios

Source: emerging energy consulting

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Global Installed Wind Power Capacity (GW) 2008 Regional Distribution

010203040506070

Europe

total

Germ

any

Spain

Italy

Franc

eUK

Denmar

kUSA

Latin

Americ

a & C

arib

bean

Canada

Asia to

tal

ChinaIn

dia

Japa

n

Austra

lia &

Pacif

ic

Africa

& M

iddle

Eas

t

GW

Wind accounts with 157 GW installed capacity for 1.3% of global electricity production in 2009

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Solar is the unlimited energy potential – PV, Solar Thermal and CSP will play a critical role in future energy mix

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In the US alone nearly 3000 MW of CSP are linked to the grid

Source: JRC Scientific and Technical Reports

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Global PV market is still Europe driven - with 18GW installed capacity in 2009, PV accounts currently only for 0.1% of global electricity production.

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With an average growth rate of more than 20% during recent years, SWHs corresponds to 0.6 % of global electricity generation in 2009

Newly installed capacity in 2008

Growth rate 2006-2008Main driver: Building codes and incentive schemes

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Total global wave potential is around 500 to 900 TWh/year – to exploit this potential, targeted support is required

Source: Scottish Development International

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Wind and PV equipment show significant cost reductions

Price development PV modules

Total wind energy costs per unit of electricity produced by turbine size

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Change of FITs have a major market impact

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Czech Republic

Spain

Dynamic of growth in installed capacity (solar)

2000 MW414 MW

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Governments play a critical in renewable energy development

Regulatory power - policies and regulatory regimes ( type, duration, transparency, conflicting rules ) - institutional support and capacity allocated - international voice Customer Power

- public procurement rules - public sector is in many countries biggest energy consumer

Ownership power- 80% of utilities are public owned – where government are shareholders- define investment strategy and assign management

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REEEP is a vehicle to provide necessary support for RE and EE market acceleration

REEEP acts as a market facilitator by reducing market barriers for renewables and energy efficiency systems through focus on:

policy/regulation development and improvement finance and business models

REEEP is driven by a bottom-up approach to meet the real needs on the ground

REEEP works with governments as well as with the private sector

REEEP is committed to the achievement of MDGs and aims to improve access to sustainable clean energy for the poor

REEEP is unique in combining the benefits of renewables and energy efficiency

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Well-established regional and global network – 320 partners and 3000 associates

REEEP Partners include 45 governments –

• all the G7 countries and 2 “BASIC” countries and Mexico (SA, Brazil, Mexico )

• States and key agencies from China and India ( NDRC, IREDA )

• Development Banks and other International Organisations

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REEEPs international activities are based on a solid governance and regional structure – CEC is our Australian partner

Programme BoardMatthew Kennedy

Finance CommitteeJames Cameron

Governing BoardPeter Betts

International SecretariatMarianne Moscoso - Osterkorn , Director General

Meeting of Partners /General Assembly

Peter Betts

2 Auditors

International Steering Committee

RS East AsiaCREIA

RS Latin America & the Caribbean

OAS

RS SE Asia-PacificAustralia CEC

RS South AsiaTERI

RS Southern AfricaSANERI

Regional SC Regional SC Regional SC Regional SC

Focal PointNorthern Africa

MEDREP

Focal PointWest Africa

ECOWAS

Georg Baier, Ludovic Lacrosse

Regional SC

Programme BoardMatthew Kennedy

Finance CommitteeJames Cameron

Governing BoardPeter Betts

International SecretariatMarianne Moscoso - Osterkorn , Director General

Meeting of Partners /General Assembly

Peter Betts

2 Auditors

International Steering Committee

RS East AsiaCREIA

RS Latin America

OAS

RS SE Asia & PacificAustralian CEC

RS South AsiaAEI at TERI

RS Southern AfricaSANERI

Regional SC Regional SC Regional SC Regional SC

Focal PointNorthern Africa

MEDREP

Focal PointWest Africa

ECOWAS

Regional SC

and Caribbean

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REEEP projects are all amplified by targeted services

Regional Projects

Regulatory and Policy Issues

Finance and Business

Added Value of REEEP: Replication

Implementation Leverage

Services

Information Gateway “reegle"

Publications

Toolkits

Strategic Events

Strategic Activities

SERN

REIL

EEC

Energy Efficiency Training Programmes

Utility Programme

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REEEP is currently implementing 65 projects in 29 countries – 6 in the Pacific region

Projects covering more than one country are listed in all covered regions

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Projects in Southeast Asia and Pacific - Overview

Project Implementing Partner

Establish Pacific micro energy service companies (PMESCOs) Pacific Islands Applied Geoscience Commission (SOPAC)

Energy efficiency policy instruments in Pacific Island countries

Pacific Islands Applied Geoscience Commission (SOPAC)

Hotel sector energy efficiency in Fiji Greenlight Technology Group

Developing a framework for clean energy microfinance in the Pacific

The Foundation for Development Cooperation

Clean energy policy and regulation in Tonga Ministry of Lands, Survey, Natural Resources & Environment (MLSNRE)

Establishment of the Pacific Islands Sustainable Energy Industry Association & Certification Scheme

Global Sustainable Energy Solutions

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Future Vision of REEEP

Focus on EE and Combined EE and RE interventions – such building sector, transport and agriculture

- training programs for architects - sector specific business models on EE and RE such as hotels, SME’s ( metal melting ) Focus on regulatory regimes – tariff, access to grid, decentralized grid solutions and

smart grid - certificate system in India - Regulation for geothermal in Mexico Work less with NGOs more with regulators, implementing authorities and finance

authorities Develop regional and technology specific programs – such as a roll out program for SWH in SA Attract energy experts – change of expertise towards technology and deployment Act as an implementing body for other organization's program - move away from a donor driven organization to a self sustaining entity

REEEP International Secretariat

Vienna International CentreRoom D1738

Vienna, Austria

info@reeep.org+43 1 26026 3425

www.reeep.orgwww.reegle.info

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Success story: reegle – clean energy search engine

Languages reegle actually covers sources in English, Spanish and French

Visitor numbers Visitor numbers are constantly growing with an average of about 65.000 users/month.

Sources More than 370 high quality sources included=> more than 220.000 documents can be found via reegle

Actors More than 1700 stakeholders and actors included as of 1.4.2010

www.reegle.info is an unrivaled tool to find best information on RE and EE

all information comes from selected, high-quality sources and can be visualized on a world-map

offers the latest news and events (including a frequently updated Clean Energy Blog)

connects stakeholders through the reegle Actors Catalogue – one of the largest global database on relevant RE & EE stakeholders