20 % renewable energy by 2020

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20 renewable energy by 2020 the RES
industrys point of view on the Draft Renewable
Energy Directive

• Prof. Arthouros Zervos
• President
• European Renewable Energy Council

Inter-Parliamentary Meeting on Renewable Energy
and Energy Efficiency
Brussels, 29th January 2008
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How it all startedJanuary 2004 EREC published
the industries new goals for 2020
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EREC European Renewable Energy Council

• Umbrella organisation representing all RES
  sectors
• AEBIOM European Biomass Association
• EGEC European Geothermal Energy Council
• EPIA European Photovoltaic Industry Association
• ESHA European Small Hydropower Association
• ESTIF European Solar Thermal Industry Federation
• EUBIA European Biomass Industry Association
• EWEA European Wind Energy Association
• EUREC Agency European Renewable Energy Research
  Centres Agency
• Associate members
• EU-OEA European Ocean Energy Association
• EBIO European Bioethanol Industry Association
• EREF European Renewable Energy Federation
• ESTELA European Solar Thermal Electricity
  Association

Representation of European RES industry, trade
research
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The Root of the Energy Problem for the EU

• If we do not counteract, we are importing an ever
  growing share of our energy at unpredictable (but
  most likely higher) prices in competition with
  the rest of the world and at unbelievable
  environmental cost.
• Regardless of whether we are successful in energy
  diplomacy or not, we have no idea about the
  future cost of fossil and nuclear energy we will
  be paying to maintain current supply.

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We are already paying for inaction

• For every 20 increase in the price of oil, the
  cost of Europes gas imports rises by 15 bn
  annually, given the unfortunate link between oil
  and gas prices
• The increase of oil prices over the past few
  years from 20 to 80 thus adds 45 bn. to EUs
  annual gas import bill
• For comparison, EU invested 9 bn. in wind energy
  in 2006

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The forgotten COST The REAL PRICE of our energy
supply
Who is paying the real price? The
Electricity/Energy customer The general
population Indirect burden via taxes, insurances
and social contributions The State Increasing
environmental costs, political costs Global
Loss of quality of life
Electricity/Energy Price
External Costs
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EU Energy Policy

• To
• Security of Supply
• Competitiveness
• Sustainability

• From
• CoalSteel
• and
• Nuclear

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• The senseless battle of
• market versus the environment
• must become a battle of
• markets for the environment
• The markets for the future are green!

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RES 2020 Target and Climate Change Package

• The targets on renewable energy (including a
  mandatory biofuels target), energy efficiency
  and greenhouse gases have been agreed for 2020
• None of these targets has primacy over the others.

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The 20 by 2020 EU target will only be met if
legislation is adopted timely.The Directive
should be in force as soon as possible in order
not to cause market instability around 2010
(ending of RES-E Biofuels Directives) Member
States and the European Parliament have to follow
their own commitments - NOW
The Framework Directive must be adopted as soon
as possible.
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Division of the 20 target among Member States
How to best avoid lengthy negotiations ?
It seems the Commission managed quite well in
dividing the numbersonly Belgium, Sweden,
Austria and Latvia do not want to see the great
opportunities in renewables development
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Pre-Conditions for RES uptake

• Change in Paradigm individual responsibility for
  own energy supply, as local and decentralised as
  possible
• Households and private sector in general should
  primarily produce their own heat and electricity
  from RES sources in an efficient environment
• Combination with drastic change in consumption
  pattern and increase in efficiency
• Political commitment beyond ideologies and short
  term thinking to go for strong national RES
  development
• Clear instruments, targets for rapid uptake and
  enforcement
• High level of market penetration by Independent
  RES Power Production
• Swift abatement of open and hidden harmful
  subsidies to incumbent industry
• As long as one or more of these conditions are
  not met counterbalance is necessity

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RES Framework Directive must contain

• Electricity
• Existing RES-E Directive should form the minimum
  starting point.
• Provisions on grid issues and administration
  procedures must be strenghened.
• Heating/Cooling
• Renewable Heat obligation for new buildings
• Coherent stable support measures
• Removal of administrative barriers
• Reliable statistics for RES-heating
• Specific measures to promote RES cooling
• Transport
• Definition of sustainability standards of
  biofuels

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Precondition for reaching the targets

• Renewable Action Plans with sectoral targets for
• RES-electricity,
• RES heating cooling
• Biofuels
• Interim targets every second year to check
  whether development is on track
• Penalities for MS in case of not reaching the
  target
• Ensuring development of ALL renewable energy
  technologies

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EU wide Trading Mechanism

• There is no reason to introduce such an
  artificial mechanism if it is meant to
• produce disincentives for domestic investment
• endanger prosperous support schemes
• provide additional bureaucratic mechanisms

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An exchange of guarantees of origin must be
based on the following principles

• A trading mechanism must be regulated and
  operated by public authorities on a Member State
  level only and not on a company level. Since
  Member States are responsible for meeting the
  target, they should retain control over the
  target and not leave it to companies
• If a Member State wants to sell renewable energy
  certificates abroad, it must already have
  fulfilled its own national target. Thus,
  exporting guarantees of origin to another Member
  State should be allowed only after the exporting
  country has met its national intermediate target
  a country should not be able to sell something
  which it does not possess.

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Expectations from the RES Framework Directive for
RES-heating cooling

• Include binding sectoral targets for heating
  cooling in the National Action Plans
• New buildings major renovations
• apply a renewable heat obligation
• All other heat cold consumption points
  coherent, long-term oriented set of measures
• Launch specific support for renewable cooling
• Measures to promote RES integration into district
  heating systems
• Product eligibility for support schemes based on
  EU standards certification

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Strong Sustainability Criteria

• Sustainability criteria should cover not only
  biofuels but also biomass whatever its final use
  (biofuels, food, construction, electricity...)
• No biomass outside these sustainability criteria
  should be counted towards the target.
• - Imported products should comply with similar
  standards as the cross compliance rules to avoid
  competition distortion.

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Renewable Energy Technology Roadmap 20 by 2020
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Renewable Energy Policy Conference17 November
2008, Paris
Conference organised in the framwork of the
French Presidency of the European
Council Further infos www.erec.org
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Thank you very much for your attention!

• EREC
• European Renewable Energy Council
• Renewable Energy House
• 63-67 Rue dArlon,
• 1040 Brussels, Belgium
• www.erec.org