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Bioenergy: Policy and Status. AgEng2008 conference, Crete 23-25 June 2008. Anthi CHARALAMBOUS DG TREN, D2 Technology and Innovation in Energy. EUROPEAN COMMISSION. . Contents. Background (energy in figures) The Energy & Climate Package January 2008 The SET Plan (November 2007)

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Bioenergy policy and status

Bioenergy: Policy and Status

AgEng2008 conference,

Crete 23-25 June 2008

Anthi CHARALAMBOUS

DG TREN, D2 Technology and Innovation in Energy

EUROPEANCOMMISSION


Bioenergy policy and status

Contents

  • Background (energy in figures)

  • The Energy & Climate Package January 2008

  • The SET Plan (November 2007)

  • Food Prices (May 2008)

  • Financial Instruments/support (2007-2013)

  • Conclusions


Bioenergy policy and status

Bioenergy in the Global scene already plays a major rolesupplying ~10% of world primary energy supplies

IEA Renewables Information 2007


Breakdown of renewable electricity in 2005 normalised for the eu 27

Breakdown of renewable electricity in 2005 (normalised) for the EU-27


Res heating cooling expected growth

RES-Heating Cooling expected growth

Heating and cooling projections by 2020

Source: Renewable Energy Roadmap COM(2006) 848 final


Bioenergy policy and status

Source: EurObserv’ER 2007


Bioenergy policy and status

Current status: Bioethanol


Bioenergy policy and status

Contents

  • Background (energy in figures)

  • The Energy & Climate Package January 2008

  • The SET Plan (November 2007)

  • Food Prices (May 2008)

  • Financial Instruments/support (2007-2013)

  • Conclusions


Package of energy and climate measures january 2008

Package of energy and climate measures (January 2008)

Reform of emissions trading scheme (ETS)

National targets for greenhouse gas emissions in non-ETS sectors (buildings, transport, agriculture)

Directive on Carbon Capture and Storage (CCS)

Renewable Energy Directive

Reform of environmental state aid guidelines

11


Renewable energy directive

Renewable Energy Directive

Sets targets for 2020:

National targets for the overall share of renewable energy (adding up to 20%)

Targets for renewable energy in transport (10%)

Flexibility in meeting targets:

Electricity and large-scale heat consumed in one Member State can count towards the target of another

Removes obstacles to the use of renewable energy:

Improving administrative procedures, information provision and grid access

Higher blends of biofuel in diesel

Improves the performance of renewable energy:

Efficient forms of renewable energy in buildings

Biofuel sustainability and national reporting

Incentive for second-generation biofuels

12

Climate Action: Biofuels in the renewable energy directive


Bioenergy policy and status

The RES Directive (1)

Sets mandatory national targets for RES shares, including 10% biofuels share, in 2020 (Art.3 and 5)

Requires national action plans(Art. 4)

Standardises “guarantees of origin” (certifying the RES origin of electricity or heat) (Art. 6, 7, 8 & 10)

Enables the transfer of guarantees of origin to give Member States flexibility to meet their targets by developing cheaper non domestic renewable energy (Art. 9)


Bioenergy policy and status

The RES Directive (2)

  • Reforms, or requires reforms of administrative and

  • regulatory barriers to the growth of RES (Art. 12)

  • Requires improvements in provision of information

  • and training regarding renewable energy (Art. 13)

  • Improves renewables’ access to the electricity grid

  • (Art. 14)

  • Creates a sustainability regime for biofuels(Art. 15-

  • 18)


Bioenergy policy and status

National Renewables Targets

Shares of renewable energy, 2005 and 2020

Sets mandatory national targets for renewable energy shares,

including 10% biofuels share, in 2020: from 8.5% to 20% for the

EU overall.


Bioenergy policy and status

How do we get there?

BioPower is estimated to triple by 2020

in relation to 2005


Bioenergy policy and status

The EU Biomass Action Plan

Communication COM(2005)628 final

Purpose: achieve 12% RES target by 2010, diversify energy mix, reduce greenhouse gas emissions, job creation and stabilisation of rural regions

Main features:

  • supplemantary to EU legislation

  • holistic approach: from biomass mobilisation to end use, from awareness rising to research

  • comprising all energy sectors: electricity, heating/ cooling, transport fuels


National biomass action plans nbaps

National Biomass Action Plans (nBAPs)

 6 ms currently have developed a nBAP (Denmark, Esthonia, Ireland, Netherlands, Slovenia and UK)

 7 ms can be considered in preparation phase (AT, BG, CZ, FR, DE, LV, SK)

 14 ms have no nBAPs

18

Climate Action: Biofuels in the renewable energy directive

|


Biofuels sustainability criteria

Biofuels sustainability – Criteria

  • Greenhouse gas impact

  • Land use/ carbon stock

  • Biodiversity

  • Environmental requirements for agriculture

19

Climate Action: Biofuels in the renewable energy directive

|


Biofuels sustainability scope

Biofuels sustainability – Scope

  • The sustainability criteria apply to:

    • Biofuels (liquid and gaseous fuels used in transport)

    • Other bioliquids (liquid fuels used in heating and electricity)

  • By 2010, the Commission will report on criteria for other energy uses of biomass

20

Climate Action: Biofuels in the renewable energy directive

|


Bioenergy policy and status

Promotion of Biofuels (1)

Sustainability criteria for biofuels

GHG savings – minimum of 35%

No raw materialfrom undisturbed forests, biodiverse grassland, nature protection areas (unless taken harmlessly)

No conversionof wetlands and continuously forested

areas for biofuel production (to protect carbon stocks)

All EU biofuels must meet “cross compliance”

environmental rules


Bioenergy policy and status

Promotion of Biofuels (2)

  • Consequences of not meeting the criteria:

    • Biofuels do not count towards targets

    • Not eligible for national biofuel obligations

    • Not eligible for tax exemptions and similar financial support

  • Verification of compliance:

    • Responsibility of Member States

    • To reduce the administrative burden, Commission can decide that “certification schemes” give reliable proof of compliance

    • If so, all Member States have to accept these certificates as proof


What s next on the overall package

What‘s next on the overall package?

Policy proposal of the Commission, January 2007

Endorsed by the European Council, March 2007

Endorsed by Parliament, September 2007

Legislative proposal of the Commission, January 2008

Discussion by Council of Ministers, European Council and Parliament through to 2009

Adoption May 2009???


Bioenergy policy and status

Contents

  • Background (energy in figures)

  • The Energy & Climate Package January 2008

  • The SET Plan (November 2007)

  • Food Prices (May 2008)

  • Financial Instruments/support (2007-2013)

  • Conclusions


22 november package

22 November ‘package’

  • COM(2007)723 – SET-Plan Communication

    Supporting documents:

  • SEC(2007)1510 – Technology Map

  • SEC(2007)1511 – Capacities Map

    Impact assessment:

  • SEC(2007)1508 & SEC(2007)1509

  • http://ec.europa.eu/energy/res/setplan/communication_2007_en.htm

25

EUROPEANCOMMISSION

|


Bioenergy policy and status

The SET-Plan Some key technological challenges

  • First and foremost, energy efficient buildings, appliances, equipment, industrial processes and transport

  • Developing 2nd generation biofuels

  • Getting large scale offshore wind competitive within the short term

  • Getting photovoltaic electricity competitive to harness solar energy

  • Creating a European smart, bi-directional, RES friendly grid

  • Fuel cell and hydrogen technologies

  • Sustainable coal and gas technologies

  • Fourth generation fission nuclear reactors and future fusion technology


Bioenergy policy and status

The SET-PlanProposals

  • Joint strategic planning – Steering group + Information System

  • Effective implementation:

    • European Industrial Initiatives: strategic technology alliances.

    • European Energy Research Alliance

    • Trans-European Energy Networks and Systems of the Future – Transition planning

  • Increase in resources, both financial and human.

  • Reinforce international cooperation


Bioenergy policy and status

Contents

  • Background (energy in figures)

  • The Energy & Climate Package January 2008

  • The SET Plan (November 2007)

  • Food Prices (May 2008)

  • Financial Instruments/support (2007-2013)

  • Conclusions


Food vs fuels

Food vs Fuels

  • Commission Communication COM(2008)321 final (adopted 20.5.2008) – “Tackling the challenge of rising food prices Directions for EU action”

  • Policy responses to mitigate the effects of rising global prices

  • This document was discussed in the European Council 19-20 June 2008

  • Short term measures in the context of the Health Check of the Common Agricultural Policy

  • Biofuels production is not the only cause of the increase in the global food prices

29

Climate Action: Biofuels in the renewable energy directive

|


Food vs fuels1

Food vs Fuels

  • Commission Communication COM(2008)321 final (adopted 20.5.2008) – “Tackling the challenge of rising food prices Directions for EU action”

  • The current EU biofuel production has little impact on current global food prices

  • The 10% target for the use of biofuels for transport can be achieved by the new generation biofuels

  • The sustainability criteria (under discussion) shall ensure the production of biofuels in a sustainable way without damaging site effects

30

Climate Action: Biofuels in the renewable energy directive

|


Bioenergy policy and status

Contents

  • Background (energy in figures)

  • The Energy & Climate Package January 2008

  • The SET Plan (November 2007)

  • Food Prices (May 2008)

  • Financial Instruments/support (2007-2013)

  • Conclusions


Financing renewables

Wave/Tidal

Bioenergy

Wind

Geothermal

Solar

Financing Renewables

  • Community Level

  • National/Regional Level

  • Private /Other sources


Community level

Community Level

Funding Instruments

  • EU funds (2007-2013)

    • European Regional Development Fund (9 bln €)

    • Cohesion Fund ( X? bln €)

    • European Agricultural Fund for Rural Development( X? bln €)

  • EU Programmes (2007-2013)

    • 7th Framework Programme (2.3 bln €)

    • Competitiveness and Innovation Programme (CIP) ( 730 mln €)


Fp7 competitiveness and innovation programme cip

FP7 & Competitiveness and Innovation Programme (CIP)

  • CIP - Intelligent Energy for Europe (SAVE, STEER, ALTENER) and Integrated Initiatives: e.g. bio-businesses, co-generation, energy services. Call for proposals (TREN call opened April 2008): http://ec.europa.eu/energy/intelligent/call_for_proposals/index_en.htm

  • FP7 (TREN call opened April 2008): http://cordis.europa.eu/fp7/home_en.html

FP7: Dissemination of knowledge and innovation-related activities

CIP: Innovation support networks and take-up of proven technologies

€2.3 billion on energy theme

2007-2013

€730m on IEE

2007-2013


Cooperation 2007 2013 32 4 billion

COOPERATION 2007 – 2013 (€32,4 Billion)


Bioenergy policy and status

Is it DG RTD or DG TREN ?

References in the 2008 call

DG TREN (call open)

Open in call : FP7-ENERGY-2008-TREN-1

Open in call: FP7-ENERGY-2008-1

DG RTD (call closed)


What is demonstration

What is demonstration?

  • Basic research and pilot phases are finished

  • Industrial led projects with significant potential impact on new binding targets before 2020

  • Research only if industrial partners determine the need for research during demonstration (typically less than 20%)


Predominant demonstration typical budget repartition for eligible costs

Predominant demonstration: Typical budget repartition for eligible costs


Timing of tren call 2008

Timing of TREN Call 2008

  • Call launched 29 April 2008

  • Info Days in Brussels CONCERTO3 - 4 April 2008General20 June 2008

  • Deadline for submission8 Oct 2008!

  • Evaluation Nov 2008

  • Info to proposersbefore end 2008

    2009 call to be launched in July 2008


Areas opened in 2008 dg tren

Areas opened in 2008 (DG TREN)

  • RES-electricitygeneration42 M€*

  • Renewable Fuel Production 35 M€*

  • CCS/Clean Coal 20 M€*

  • Smart energy networks5 M€

  • Polygeneration 5 M€*

  • CONCERTO40 M€*

    Ideally 20 projects will be supported for about 147 M€

* Indicative amount; depending on the quality of the proposals


Activity energy 2 renewable electricity generation area energy 2 2 biomass

ACTIVITY ENERGY 2: Renewable Electricity GenerationArea Energy 2.2: Biomass

  • Topic Energy 2008.2.2.1: Enhancing strategic international cooperation with Russia in the field of power generation from biomass

  • Topic Energy 2008.2.2.1: High efficiency medium-to-large scale electricity generation from biomass and waste

* Indicative amount; depending on the quality of the proposals


Activity energy 3 renewable fuel production

ACTIVITY ENERGY 3: Renewable Fuel Production

  • Topic Energy 2008.3.1.1:

    Biomethane from high moisture biomass(Area 3.1: first generation)

  • Topic Energy 2008.3.2.2:

    Bioethanol from lignocellulosics(Area 3.2: second generation)

* Indicative amount; depending on the quality of the proposals


Bioenergy policy and status

Energy RTD investment in the EU in 2005,

if we were investing at the same rate as in ...

In 1980 we were

investing 4 times more

than today


More information

More information

  • Homepage DG Energy and Transport

    http://ec.europa.eu/dgs/energy_transport/index_en.html

  • FP7 Cordis homepage: www.cordis.europa.eu


Financing bioenergy at national level

Financing bioenergy at National Level

  • Support systems for RES-electricity

  • Tax credits, Tax exemptions

  • Investment grants, loans, interest free loans


National level support for res e

National LevelSupport for RES-e

  • Existing support systems for RES-electricity

    • Feed-in tariffs

    • Green certificates

    • Tendering procedure

    • Tax incentives


National level support for res e1

National LevelSupport for RES-e

Renewable energy promotion policies in Member States from 2006 and onwards

Sources:

Renewables 2007 (Global Status Report),

Commission Staff Working Document Annex to the Impact Assessment


National level support res heating cooling

National LevelSupport RES Heating/Cooling

  • Support measures at National level:

    • Tax credits

    • Investment grants, loans, interest free loans

  • Regulatory measure:

    • Obligations


National level support biofuels

National LevelSupport Biofuels

  • Support and regulatory measures at National Level:

    • Tax exemptions

    • Biofuels obligation


Other instruments

Other Instruments

  • European Investment Bank (EIB)

    • Financial products at reduced interest rates

    • Direct loans for larger projects (> 25 Mill € total cost)

    • Indirect loans for smaller projects

  • Other Banks


Bioenergy policy and status

Contents

  • Background (energy in figures)

  • The Energy & Climate Package January 2008

  • The SET Plan (November 2007)

  • Food Prices (May 2008)

  • Financial Instruments/support (2007-2013)

  • Conclusions


Bioenergy policy and status

Conclusions

The European Commission strongly supports Bioenergy

& biofuels with legislative actions & various programmes

for technological advances & market penetration

High oil prices = high profile for bioenergy

Bioenergy’s progress is solid butnot fast

enough to meet objectives

Plenty more work to be done at all levels


Thank you for your attention

Thank you for your attention!


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