An European perspective on renewable energy and energy efficiency MSc. AncaDiana Barbu, Carl von Oss

1
An European perspective on renewable energy and
energy efficiencyMSc. Anca-Diana Barbu, Carl
von Ossietzky University

• REEEP regional meeting in Central and Eastern
  Europe and Turkey, Budapest, 30 September 2004

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Overview

• Political processes EU Accession, Stability
  Pact, Energy Community for South East Europe
• Lessons learnt from EU 15
• Opportunities for renewable energy and energy
  efficiency
• The Why, Where and How questions

3
Multi-speed Europe
EU-15
Common standards
NMS
Other
Economic development
Stable democracy
4
EU Accession
5
Stability Pact

• The Stability Pact for South Eastern Europe is a
  political
• declaration and framework agreement adopted in
  June
• 1999 to encourage and strengthen co-operation
  among the
• countries of South East Europe (SEE) and to
  facilitate,
• co-ordinate and streamline efforts to ensure
  stability and
• economic growth in the region.

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Energy Community for South East Europe

• Objectives set by the Athens Forum in June 2004
• December 2005, the legislative, regulatory and
  technical rules for the development of each
  national market in the SEE region will be
  concluded
• December 2007, the regional aspects of the
  market, such as investments of a regional nature,
  market esign for the regional market, regional
  licensing, regional scheduling and trading
  facilitation mechanisms, are envisaged
• From January 2008, is the actual, real-time
  operation of the Integrated SEE regional energy
  market

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Lessons learnt from EU-15Liberalisation

• Evolution of energy prices
• Electricity (/kWh, all taxes included,
  end-consumer )
• 1990 1991 1992 1993 1994 1995 1996 1997 1998
  1999 2000 2001 2002
• Ind. 6.19 6.38 6.42 6.33 6.35 6.27 5.89
  5.87 5.68 5.48 5.45 5.49 5.49
• Hds 10.79 11.39 12.64 12.51 12.71 12.57 12.60
  12.61 12.51 12.14 12.26 12.40 12.56
• Gas (in /GJ, all taxes included, end-consumer)
• 1990 1991 1992 1993 1994 1995 1996 1997 1998
  1999 2000 2001 2002
• Ind. 3.46 3.74 3.62 3.44 3.50 3.41 3.26
  3.70 3.72 3.19 3.78 5.26 4.91
• Hds 10.23 10.85 10.78 10.47 11.14 11.19
  11.04 11.77 11.80 11.39 12.07 13.49 13.62
• Source EU (2003)
• ......but increase in price volatility

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Lessons learnt from EU-15Liberalisation

• The learning by doing process tends to trigger
  volatility in policy making
• The regulatory framework is bound to change
  faster than it used to be the case in the past
• This may trigger shorter business cycles as both
  governments and investors alike may tend to focus
  on short-term objectives
• Leading to expectations for higher returns on
  investment in shorter payback periods

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Lessons learnt from Eu-15Renewables

• Policies and measures currently in place are not
  sufficient to meet the RES target in 2010
• The main risk in achieving the target is the
  significant imbalance between the level of
  commitments among Member States
• Main culprits production of electricity from
  biomass and sluggish developments in heating and
  cooling sectors
• Fragmentation of European market
• Complicated administrative procedures, inadequate
  local energy planning to include a larger share
  of RES and opaque grid connection conditions
• Implementation of the GOs

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Opportunities for RESEE in Central and Eastern
Europe and Turkey

• energy prices are rising
• availability of low cost
• energy efficiency measures in
• the public sector
• energy efficiency potential
• also in the residential sector
• diminished need for
• imports
• Household expenditures in Czech Republic
• Source Energy Charter (2003)

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Opportunities for RESEE in Central and Eastern
Europe and Turkey
Energy saving potentials in Czech
Republic SourceEnergy Charter (2003)
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Opportunities for RESEE in Central and Eastern
Europe and Turkey
ADMIRE-REBUS Model - ECN, Carl von Ossietzky
University
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Opportunities for RESEE in Central and Eastern
Europe and Turkey
ADMIRE-REBUS Model - ECN, Carl von Ossietzky
University
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...but

• Scarce public and private funds
• EX Romania
• - investments in infrastructure in the transport
  sector, bn 18.3 will be required for the period
  2004-2007 and an additional bn 10.6 for the
  period 2008-2015
• - to comply with the environmental Acquis, bn
  29.5 will be required for the period 2004-2021
  out of which 20 will come from the state budget
  (bn 5.9), 30 from EU funds (bn 8.85), about
  35 is expected from the business sector
  (bn10.3) and the rest of 15 from other sources
• http//www.ier.ro/impactstudiesPAIS2.html

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...and

• Lack of capacity at local level
• Ex. Estonia
• Structural funds available for the period
  2004-2006 amounts M 200/year, these funds to
  develop tourism, local transport and municipal
  infrastructure.
• The Athme Biomass CHP Project
• The project is one of the projects on the
  pipeline. Its aim is to replace an oil-shale
  fired power plant commissioned in 1950s with a
  biomass CHP with an output of 50 MWth and 20
  MWel. The project is estimated to deliver aprox.
  270,000tCO2 emissions savings per year. The total
  project cost is 48 bn out of which 35 are to be
  covered from structural funds.
• Experience of the developer
• A significant lack of awareness on energy issues
  and capability to prepare good projects at local
  level.
• Consequently, the developer has decided to offer
  assistance to
• the local authority in advising on potential
  eligible projects, public
• awareness campaigns, developing technical
  guidelines for
• project preparation and tools for project
  monitoring.

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The Why question

• To reduce import dependency
• To mitigate climate change
• To create jobs
• To stay/become competitive
• .and/or to reduce the depletion of domestic
  fossil fuel deposits to keep them available for
  future generations
• Objectives of the National Programme for Energy
  Efficiency and the Use of Renewable and Secondary
  Energy Resources to 2005, Czech Republic

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The Where question

• Need to have priorities short,medium and long
  term
• Need for accurate data (including potentials)
• Need for appropriate local energy planning
• Need for appropriate infrastructure and lobby

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The How question

• ?
• Thank you for your attention
• Diana.barbu_at_uni-oldenburg.de