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5. European context on RES EU White Paper on renewable energy sources
RES-Electricity Directive
« Intelligent Energy for Europe » Programme
EU policy options on RES-Heat
Communication on RES
Let’s first go in the rationale for taking such an initiative. Today, Renewable Energy Sources are placed high up on the political agenda mainly to improve Europ’s sustainability, to combat climate change, to increase EU’s energy self-sufficiency and to promote socio-economic aspects such as rural development. Several pieces of legislation are paving the way towards the production and use of more renewable energies. Let’s first go in the rationale for taking such an initiative. Today, Renewable Energy Sources are placed high up on the political agenda mainly to improve Europ’s sustainability, to combat climate change, to increase EU’s energy self-sufficiency and to promote socio-economic aspects such as rural development. Several pieces of legislation are paving the way towards the production and use of more renewable energies.
6. European context on RES Johannesburg Renewable Energy Coalition (JREC)
« We express our strong commitment to the promotion of renewable energy and to the increase of the share of renewable energy sources in the global total primary energy supply. »
Communication on “The share of renewable energy in the EU” (May 2004)
Forthcoming Biomass Action Plans “with a clear approach to securing adequate supplies of biomass through European, national and regional/local action”.
Let’s first go in the rationale for taking such an initiative. Today, Renewable Energy Sources are placed high up on the political agenda mainly to improve Europ’s sustainability, to combat climate change, to increase EU’s energy self-sufficiency and to promote socio-economic aspects such as rural development. Several pieces of legislation are paving the way towards the production and use of more renewable energies. Let’s first go in the rationale for taking such an initiative. Today, Renewable Energy Sources are placed high up on the political agenda mainly to improve Europ’s sustainability, to combat climate change, to increase EU’s energy self-sufficiency and to promote socio-economic aspects such as rural development. Several pieces of legislation are paving the way towards the production and use of more renewable energies.
8. Renewable energy Promote the use of wood as a source of renewable energy (Green certificates, Feed-in tariffs, Investment subsidies, etc.) A competitive use of wood results from the increasingly ambitious policies in the field of energy. Today, estimating the use of wood for energy is very uncertain because of the decentralised nature of wood energy use, and because of auto-consumption without being obliged to keep records. Only few countries have statistics. The European Union as well as European countries are setting more and more targets for the use of renewable energy sources to produce heat, electricity and power. Many sources are cited – water, wind, sun – but probably the most accessible one is biomass, and in particular woody biomass. We are already confronted with this development. The European pulp and paper industry strongly supports an ambitious but fair engagement in the promotion of renewable energy and is already one major producer and user of renewable energy (17% of the total RES production in the European Union and 28% of the total European biomass based energy production). In the context of uncertainty about demand and supply of fuelwood, any excessive support or market distorting incentive mechanism facilitating the use of wood for energy diverts an important share of it from its raw material function. A competitive use of wood results from the increasingly ambitious policies in the field of energy. Today, estimating the use of wood for energy is very uncertain because of the decentralised nature of wood energy use, and because of auto-consumption without being obliged to keep records. Only few countries have statistics. The European Union as well as European countries are setting more and more targets for the use of renewable energy sources to produce heat, electricity and power. Many sources are cited – water, wind, sun – but probably the most accessible one is biomass, and in particular woody biomass. We are already confronted with this development. The European pulp and paper industry strongly supports an ambitious but fair engagement in the promotion of renewable energy and is already one major producer and user of renewable energy (17% of the total RES production in the European Union and 28% of the total European biomass based energy production). In the context of uncertainty about demand and supply of fuelwood, any excessive support or market distorting incentive mechanism facilitating the use of wood for energy diverts an important share of it from its raw material function.
9. Wood availability Model results: a future wood shortfall?
When expressing these three developments in terms of harvesting probability, the run of the model confirmed the impression given by the internal survey. The European wood-based industries could face a lack of wood as raw material in the coming decades. This is not because there is not enough wood, but because this wood could probably not be efficiently mobilised.
The potential additional shortfall in Europe, without considering Russia, is estimated to be 27 million m3/year in 2010 and 89 million m3/year in 2030. In 2060, if no other developments happen, the additional shortfall could be 195 million m3/year. Without those 3 developments, wood-based industries would already have been confronted to a shortfall of 36 million m3 by 2060. This means that the total shortfall as a result of the three identified policy developments would be 231 million m3 in 2060.
The European part of Russia is not able to reduce the additional theoretical shortfall and this because of Russia’s own domestic demand developing, because of a lack of infrastructure and because of rather tight management restrictions.
As shown at the beginning of this presentation, there are large quantities of wood available in the European forests without wiping out sustainable forest management. Model results: a future wood shortfall?
When expressing these three developments in terms of harvesting probability, the run of the model confirmed the impression given by the internal survey. The European wood-based industries could face a lack of wood as raw material in the coming decades. This is not because there is not enough wood, but because this wood could probably not be efficiently mobilised.
The potential additional shortfall in Europe, without considering Russia, is estimated to be 27 million m3/year in 2010 and 89 million m3/year in 2030. In 2060, if no other developments happen, the additional shortfall could be 195 million m3/year. Without those 3 developments, wood-based industries would already have been confronted to a shortfall of 36 million m3 by 2060. This means that the total shortfall as a result of the three identified policy developments would be 231 million m3 in 2060.
The European part of Russia is not able to reduce the additional theoretical shortfall and this because of Russia’s own domestic demand developing, because of a lack of infrastructure and because of rather tight management restrictions.
As shown at the beginning of this presentation, there are large quantities of wood available in the European forests without wiping out sustainable forest management.
11. Declaration of Intent on RES This graph reflects the additional effort compared to the Business as Usual scenario. In concrete terms, this means that CEPI and its members will reduce carbon dioxide emissions with 4,4 million tons (representing 1,7 Mega Ton Oil Equivalent) and this via the substitution of coal, natural gas and fuel oil by biomass. May I point out that the reduction of carbon dioxide emissions would only have been 1,5 million tons in the Business as Usual scenario. So via the declaration of intent, the reduction in carbon dioxide emissions (covering the period 2001-2010) is increased with nearly 3 million tons.This graph reflects the additional effort compared to the Business as Usual scenario. In concrete terms, this means that CEPI and its members will reduce carbon dioxide emissions with 4,4 million tons (representing 1,7 Mega Ton Oil Equivalent) and this via the substitution of coal, natural gas and fuel oil by biomass. May I point out that the reduction of carbon dioxide emissions would only have been 1,5 million tons in the Business as Usual scenario. So via the declaration of intent, the reduction in carbon dioxide emissions (covering the period 2001-2010) is increased with nearly 3 million tons.
13. Guidance document: « For an effective implementation of the EU RES policies » Since the Commission has released a Communication on progress made in the field of renewable energy (May 2004), it appears that national
policies have been mainly focused on “end of pipes” measures, whilst upstream incentives, for example to mobilise more biomass (rather than to
create competition on the same amount of biomass) would have been more efficient to achieve EU targets. As an answer to this Communication,
CEPI-CEI-Bois is developing a Guidance document for an effective implementation of the EU RES policies (to be finalised later this month). The goal
is to have this guidance document provided to Member States as well as to the Commission and this as an input to the Community Co-ordinated
Biomass Action Plan, which should ensure that the use of biomass for energy purposes does not lead to the undue distortion of competition. Via this
guidance document, CEPI-CEI-Bois will invite policy makers and governments to look for ways of implementing renewable energy policies that lead
to achieving the objectives set by the European Union without putting at risk the competitiveness and economic contribution of the forest-based
industries.
Some messages out of this guidance document that will be finalised later this month:
· To achieve a better mobilisation of wood, infrastructures permitting access to forest resources should be improved, transportation should be
facilitated, jobs in forestry should be encouraged, forest owners associations grouping the wood supply should be supported.
· In case of subsidy-based or support policy to renewable energy, it should be based on a proper assessment of the wood market and should
consider the optimisation of the uses of wood.
· Energy crops, including short rotation forestry should be encouraged both at European and national level, in order to increase the amount of
biomass available for energy production.
· Pump-priming subsidies should be targeted to improving the efficiency of technologies used to produce energy from renewable sources. As
such, they should be used to facilitate mobilisation of biomass and other energy sources.
· The parallel improvement of mobilisation conditions for wood and for secondary raw materials should be sustained and supported as a means
to ensure that woody biomass will be available for both the processing industries and the energy plants.
· Depending on local situations, resource availability and accessibility, the use of wood as raw material should be preferred to any other use and
should be promoted.
· Subsidiarity should not lead to discrepancies in biomass definitions from one Member State to another.
· Research and development in the field of RES should be encouraged and innovations be promoted so as to put Europe at the forefront of
renewable energy efficiency.
Since the Commission has released a Communication on progress made in the field of renewable energy (May 2004), it appears that national
policies have been mainly focused on “end of pipes” measures, whilst upstream incentives, for example to mobilise more biomass (rather than to
create competition on the same amount of biomass) would have been more efficient to achieve EU targets. As an answer to this Communication,
CEPI-CEI-Bois is developing a Guidance document for an effective implementation of the EU RES policies (to be finalised later this month). The goal
is to have this guidance document provided to Member States as well as to the Commission and this as an input to the Community Co-ordinated
Biomass Action Plan, which should ensure that the use of biomass for energy purposes does not lead to the undue distortion of competition. Via this
guidance document, CEPI-CEI-Bois will invite policy makers and governments to look for ways of implementing renewable energy policies that lead
to achieving the objectives set by the European Union without putting at risk the competitiveness and economic contribution of the forest-based
industries.
Some messages out of this guidance document that will be finalised later this month:
· To achieve a better mobilisation of wood, infrastructures permitting access to forest resources should be improved, transportation should be
facilitated, jobs in forestry should be encouraged, forest owners associations grouping the wood supply should be supported.
· In case of subsidy-based or support policy to renewable energy, it should be based on a proper assessment of the wood market and should
consider the optimisation of the uses of wood.
· Energy crops, including short rotation forestry should be encouraged both at European and national level, in order to increase the amount of
biomass available for energy production.
· Pump-priming subsidies should be targeted to improving the efficiency of technologies used to produce energy from renewable sources. As
such, they should be used to facilitate mobilisation of biomass and other energy sources.
· The parallel improvement of mobilisation conditions for wood and for secondary raw materials should be sustained and supported as a means
to ensure that woody biomass will be available for both the processing industries and the energy plants.
· Depending on local situations, resource availability and accessibility, the use of wood as raw material should be preferred to any other use and
should be promoted.
· Subsidiarity should not lead to discrepancies in biomass definitions from one Member State to another.
· Research and development in the field of RES should be encouraged and innovations be promoted so as to put Europe at the forefront of
renewable energy efficiency.
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15. Energy & Climate Change in the pulp and paper industry Development of certain energy-related parameters since 1990:
Pulp and paper production has increased by 53%.
Energy efficiency has improved and specific electricity consumption per tonne of production has decreased by 13%.
Pulp and paper industry has become more self-sufficient in energy; electricity production has increased by 74%.
More than 93% of the electricity generated on-site is done with the help of CHP.
About 52% of the fuels used are biofuels.
As a result, specific CO2 emissions have decreased by 25%, but the absolute emission increased by 9%.
16. Energy & Paper Industry Energy is a key input for the pulp and paper industry:
Up to 30-35% of production costs.
42% of electricity used is produced on site.
The industry still purchases 66 TWh of electricity per year.
Policies affecting on energy have a direct impact on the pulp and paper industry.
17. Energy & Climate Change in the pulp and paper industry Basically all CO2 emissions from the pulp and paper industry result from combustion.
Therefore, if someone says ‘climate change’, a mill manager would hear ‘energy’.
The costs pulp and paper mills face as a result of climate change policies are two-fold:
Costs from the reduction of own emissions – manageable to certain extent.
Costs faced by power producers passed through the electricity prices – price takers.
18. Climate Change and EU Emissions Trading Scheme The way emissions trading has developed has been probably a surprise to everyone;
In general the price of allowances was expected to be around EUR 10 / t CO2;
Low allowance prices at the beginning, followed by a strong increase during the summer;
Strong increase of electricity prices – up to 40% since the beginning of 2005.
Costs were expected to come from;
Compliance with the quotas each installation has;
Increase of electricity prices due to marginal pricing mechanism.
Pricing in the opportunity cost of allowances received for free exceeded even the worst expectations.
19. Climate Change and EU Emissions Trading Scheme
20. Climate Change and EU Emissions Trading Scheme Basic dilemma of the pulp and paper industry:
Costs raise in the EU but product prices are set on the global market;
Cost pass-through is not possible without loosing market shares.
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22. What is energy efficiency? In most cases depends on in which context it is used
Large number of references with more or less comprehensive attempts to define the term
The Commission published its Green Paper on Energy Efficiency in 2005 (Green Paper on Energy security of supply of 2000 as background)
Does not contain a definition on energy efficiency
Initiating a broad discussion on how to curb rising energy use in EU and arrive at a reduction of 20% by 2020
To improve energy efficiency via (amongst others)
Use of best technology
Promotion of cogeneration
23. What is energy efficiency? The draft directive on energy end-use efficiency and energy services defines energy efficiency as:
‘A ratio between an output of performance, service, goods or energy, and an input of energy’
This definition seems to be more or less as « specific energy consumption » and it does not take into account e.g. the product grade and the rate of capacity which are of essential influence on figures of specific energy consumption in our industry
24. BREF on energy efficiency Driving force: European Climate Change Programme (ECCP) adopted October 2001
Promote effective implementation of energy efficiency provisions in the IPPC Directive
Prepare a special horizontal BREF addressing generic energy efficiency techniques, giving voluntary guidance
Content (amongst others):
Approaches and methodologies for energy use optimisation and energy efficiency
Descriptions of good energy efficiency methods and techniques applied in several sectors (CHP included)
25. BREF on energy efficiency Technical Working Group on energy efficiency in industrial installations: kick-off meeting in May 2005
Currently discussing energy efficiency in industrial installations: how should it be defined?
Paper production from sulphate pulp may serve as an example of energy efficiency improvements (e.g. reducing energy losses or using waste energy for power production)
To reserve the term energy efficiency for measures that are taken with the main purpose to use the energy in a better way
To make agreements on what type of measures that should be called energy efficiency improvements
Draft version of BREF on energy efficiency available early 2006 for consultation (finalised 2nd part of 2006)
26. Energy Efficiency in the European Pulp & Paper industry The pulp & paper industry is energy-intensive but is also an energy efficient industry
The high cost of energy has always been a major incentive and continuous driving force to improve energy efficiency
Improved energy efficiency via co-generation (combined heat and power)
CHP: 30–35% energy saving compared to conventional technology
In 2004:
43% of the electricity used was produced on-site, i.e. nearly 50 TWh
93% of this 50 TWh (being 46,5 TWh) is produced via CHP; the remaining bit (7%) is produced via wind & hydro installations
27. Energy Efficiency in the European Pulp & Paper industry Comparing 2004 with 1990, the specific primary energy consumption decreased by 11% thanks to an increase in process technology efficiency and CHP investments
The European pulp and paper industry naturally continues to strive for increased energy efficiency, but cost/efficiency has to be taken into account and recognised
Furthermore…
Each unit is unique:
differences in raw materials: recovered paper, wood, coatings, fillers…
different processes: de-inking, pulping, coating…
different products
impossible to compare mills with each other
Energy efficiency is a mill specific question
28. Energy Efficiency in the European Pulp & Paper industry The efficiency of both paper production and energy production can be improved by:
the development of process monitoring
skilled and motivated personnel
availability of reliable process information
Changes in the use and maintenance of mills and power plants are the most feasible measures
Heat and fuel consumption can successfully be reduced by :
closing of water circuits (decrease use of water) and
efficient heat recovery of secondary energy
Drying of moist fuels (increase heat value of biofuels) offers a opportunity for increasing the energy efficiency of power plants
Efficient usage of biomass based CHP is natural in our industry
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