LIMITED RESOURCES: SEARCH FOR NEW & RENEWABLE ENERGY

LIMITED RESOURCES: SEARCH FOR NEW & RENEWABLE ENERGY Comenius University Lectures, Bratislava Present and prospective regulation options:public, households and transport Part I ZS. BADACSONYI ENERGY & REGULATIONS

LIMITED RESOURCES: SEARCH FOR NEW & RENEWABLE ENERGY Comenius University Lectures, Bratislava

NEW & RENEWABLE ENERGY Comenius University Lectures, Bratislava NEW & RENEWABLE ENERGY GLOBAL ISSUES. ENERGY BASICS SCIENCE & TECHNOLOGY ENERGY & REGULATIONS NEW AND RENEWABLE ENERGY SUPPLY CHAIN MANAGE- MENT ENERGY ECONOMICS ENERGY & SOCIETY

NEW & RENEWABLE ENERGY Comenius University Lectures, Bratislava GLOBAL ISSUES. ENERGY BASICS SCIENCE & TECHNOLOGY ENERGY & REGULATIONS NEW AND RENEWABLE ENERGY SUPPLY CHAIN MANAGE- MENT ENERGY ECONOMICS ENERGY & SOCIETY

NEW & RENEWABLE ENERGY Comenius University Lectures, Bratislava GLOBAL ISSUES ENERGY BASICS GLOBAL ISSUES. ENERGY BASICS SCIENCE & TECHNOLOGY ENERGY & REGULATIONS NEW AND RENEWABLE ENERGY SUPPLY CHAIN MANAGE- MENT ENERGY ECONOMICS ENERGY & SOCIETY

NEW & RENEWABLE ENERGY Comenius University Lectures, Bratislava GLOBAL ISSUES. ENERGY BASICS SCIENCE & TECHNOLOGY SCIENCE & TECHNOLOGY ENERGY & REGULATIONS NEW AND RENEWABLE ENERGY SUPPLY CHAIN MANAGE- MENT ENERGY ECONOMICS ENERGY & SOCIETY

NEW & RENEWABLE ENERGY Comenius University Lectures, Bratislava GLOBAL ISSUES. ENERGY BASICS SCIENCE & TECHNOLOGY ENERGY & REGULATIONS NEW AND RENEWABLE ENERGY ENERGY ECONOMICS SUPPLY CHAIN MANAGE- MENT ENERGY ECONOMICS ENERGY & SOCIETY

NEW & RENEWABLE ENERGY Comenius University Lectures, Bratislava GLOBAL ISSUES. ENERGY BASICS SCIENCE & TECHNOLOGY ENERGY & REGULATIONS NEW AND RENEWABLE ENERGY SUPPLY CHAIN MANAGE- MENT ENERGY ECONOMICS ENERGY & SOCIETY ENERGY & SOCIETY

NEW & RENEWABLE ENERGY Comenius University Lectures, Bratislava GLOBAL ISSUES. ENERGY BASICS SCIENCE & TECHNOLOGY ENERGY & REGULATIONS NEW AND RENEWABLE ENERGY SUPPLY CHAIN MANAGEMENT SUPPLY CHAIN MANAGE- MENT ENERGY ECONOMICS ENERGY & SOCIETY

NEW & RENEWABLE ENERGY Comenius University Lectures, Bratislava GLOBAL ISSUES. ENERGY BASICS ENERGY & REGULATIONS SCIENCE & TECHNOLOGY ENERGY & REGULATIONS NEW AND RENEWABLE ENERGY SUPPLY CHAIN MANAGE- MENT ENERGY ECONOMICS ENERGY & SOCIETY

LIMITED RESOURCES: SEARCH FOR NEW & RENEWABLE ENERGY Comenius University Lectures, Bratislava Regulation aspects of energetics: bias for solution 1. • to reduce greenhouse gas emissions and pollution, exploit local and decentralised energy sources, and stimulate world-class high-tech industries • mandatory (legally binding) target of 20% for renewable energy's share of energy consumption in the EU by 2020 Renewable Energies - the road map

LIMITED RESOURCES: SEARCH FOR NEW & RENEWABLE ENERGY Comenius University Lectures, Bratislava Regulation aspects of energetics: bias for solution 2. • 1997: target of a 12% share of renewable energy in gross inland consumption by 2010 • contribution from renewable energy sources exceeding 10% by 2010 • Why? • renewable sources will often not be the short term least cost options; failure to systematically include external costs in market prices gives an economically unjustified advantage to fossil fuels compared with renewables • unclear and discouraging authorisation procedures for planning, building and operating systems Renewable Energies - the road map

LIMITED RESOURCES: SEARCH FOR NEW & RENEWABLE ENERGY Comenius University Lectures, Bratislava Regulation aspects of energetics: bias for solution 3. • differences in standards and certification • incompatible testing regimes for renewable energy technologies • opaque and discriminating rules for grid access • lack of information at all levels including information for suppliers, customers and installers Renewable Energies - the road map

LIMITED RESOURCES: SEARCH FOR NEW & RENEWABLE ENERGY Comenius University Lectures, Bratislava Regulation aspects of energetics: bias for solution 4. • The absence of legally binding targets for renewable energies at EU level, the relatively weak EU regulatory framework for the use of renewables in the transport sector, and the complete absence of a legal framework in the heating and cooling sector, means that progress to a large extent is the result of the efforts of a few committed Member States Renewable Energies - the road map

LIMITED RESOURCES: SEARCH FOR NEW & RENEWABLE ENERGY Comenius University Lectures, Bratislava Regulation aspects of energetics: bias for solution 5. • Only in the electricity sector has substantial progress been made, on the basis of the Directive on renewable electricity adopted in 2001[Directive 2001/77/EC on the promotion of electricity produced from renewable sources of energy in the internal market] Renewable Energies - the road map

LIMITED RESOURCES: SEARCH FOR NEW & RENEWABLE ENERGY Comenius University Lectures, Bratislava Regulation aspects of energetics: bias for solution 6. • further explanation, it should be noted that energy efficiency has not been as high as expected and that overall energy consumption therefore has been higher than expected • bigger contribution from renewable energy sourcesto reach the 12% target, which is expressed as a percentage of overall energy consumption (as opposed to a share of overall energy production) is required Renewable Energies - the road map

LIMITED RESOURCES: SEARCH FOR NEW & RENEWABLE ENERGY Comenius University Lectures, Bratislava Regulation aspects of energetics: bias for solution 7. • the fact that the 12% objective is expressed as a percentage of primary energy, penalises the contribution of wind energy[When the target was established in 1997 it was expected that a much smaller proportion of it would be realised by the contribution of wind compared to biomass. As biomass is a thermal process and wind is not, one unit of final energy produced from biomass counts 2.4 times more than one unit of final energy produced from wind and counted in primary energy] Renewable Energies - the road map

LIMITED RESOURCES: SEARCH FOR NEW & RENEWABLE ENERGY Comenius University Lectures, Bratislava Regulation aspects of energetics: bias for solution 8. Renewable Energies - the road map

LIMITED RESOURCES: SEARCH FOR NEW & RENEWABLE ENERGY Comenius University Lectures, Bratislava Regulation aspects of energetics: bias for solution 9. • The 12% target for the contribution from renewables to overall EU energy consumption by 2010 is unlikely to be met, EU will not exceed 10% by 2010 • This is not equitable and risks distorting the functioning of the internal market Renewable Energies - conclusions

LIMITED RESOURCES: SEARCH FOR NEW & RENEWABLE ENERGY Comenius University Lectures, Bratislava Regulation aspects of energetics: bias for solution 10. • The EU has made most progress in the electricity sector, will probably achieve a share of 19% in 2010 • In transport biofuels, there has been some progress,but not enough to reach the targets adopted • In the use of renewable energy sources for heating and cooling there has been hardly any progress since the 1990s Renewable Energies - conclusions

LIMITED RESOURCES: SEARCH FOR NEW & RENEWABLE ENERGY Comenius University Lectures, Bratislava Regulation aspects of energetics: bias for solution 11. • the overall EU target will need to be reflected in mandatory national targets • Member States plan to achieve their targets should be set out in National Action Plans • Member States will need to set their own specific objectives for electricity, biofuels and heating and cooling, which would be verified by the Commission to ensure that the overall target is being met Renewable Energies – to dos

LIMITED RESOURCES: SEARCH FOR NEW & RENEWABLE ENERGY Comenius University Lectures, Bratislava Regulation aspects of energetics: bias for solution 12. • Proposals for legislation on the overall target and the minimum target for biofuels, together with provisions to facilitate a higher uptake of renewable energies in the three sectors, including the necessary monitoring mechanisms will be put forward in 2007 Renewable Energies – to dos

LIMITED RESOURCES: SEARCH FOR NEW & RENEWABLE ENERGY Comenius University Lectures, Bratislava Regulation aspects of energetics: bias for solution 13. • strengthening the legal provisions to remove any unreasonable barrier to the integration of renewable energy sources • Conditions for grid connections and extensions must be simplified, some Member States have a panoply of permission procedures • building codes normally ignore renewable energies • red tape for innovative small and medium-sized enterprises must be eliminated Renewable Energies – to dos

LIMITED RESOURCES: SEARCH FOR NEW & RENEWABLE ENERGY Comenius University Lectures, Bratislava Regulation aspects of energetics: bias for solution 14. • legislation to address the barriers to growth in the use of renewable energies in the heating and cooling sector including administrative obstacles, inadequate distribution channels, inappropriate building codes and lack of market information Renewable Energies – to dos

LIMITED RESOURCES: SEARCH FOR NEW & RENEWABLE ENERGY Comenius University Lectures, Bratislava Regulation aspects of energetics: bias for solution 15. • incentive/support system for biofuels that, for instance, discourages the conversion of land with high biodiversity value for the purpose of cultivating biofuel feedstocks; discourages the use of bad systems for biofuel production; and encourages the use of second-generation production processes Renewable Energies – to dos

LIMITED RESOURCES: SEARCH FOR NEW & RENEWABLE ENERGY Comenius University Lectures, Bratislava Regulation aspects of energetics: bias for solution 16. • use of renewable energy sources in public procurement for fostering clean energies, in particular with regard to transport • exploit fully the possibilities offered by the Community’s financial instruments • promote the exchange of best practices on renewable energy sources • internalise external costs of conventional fossil energy (inter alia by means of energy taxation) Renewable Energies – to dos

LIMITED RESOURCES: SEARCH FOR NEW & RENEWABLE ENERGY Comenius University Lectures, Bratislava Regulation aspects of energetics: bias for solution 17. • implement the Biomass Action Plan • continue to use the Intelligent Energy for Europe programme • to help bridge the gap between successful demonstration of innovative technologies and effective market entrance to achieve mass deployment • to boost large-scale investment across the EU in new and best performing technologies • to ensure that renewable energy is given the highest priority in the sustained efforts to maximise the use of the EU research and technology development programmes in support of zero- or low carbon energy technologies Renewable Energies – to dos

LIMITED RESOURCES: SEARCH FOR NEW & RENEWABLE ENERGY Comenius University Lectures, Bratislava Regulation aspects of energetics: bias for solution 18. • The EU currently meets 4% of its energy needs from biomass • If it made full use of its potential, it would more than double by 2010(from 69 mtoein 2003 to about 185 mtoe in 2010) • Commission’s target: 150 mtoe by 2010 Biomass - general

LIMITED RESOURCES: SEARCH FOR NEW & RENEWABLE ENERGY Comenius University Lectures, Bratislava Regulation aspects of energetics: bias for solution 19. • The targets are a 12% overall share for renewable energy, a 21% share in the electricity sector and a 5.75% share for biofuels in 2010. Through the measures in the action plan, the Commission estimates that these shares can be achieved – in the case of the overall share, if not in 2010 then within a year or two of that date Biomass - general

LIMITED RESOURCES: SEARCH FOR NEW & RENEWABLE ENERGY Comenius University Lectures, Bratislava Regulation aspects of energetics: bias for solution 20. Benefits • diversification of Europe’s energy supply, increasing the share of renewable energy by 5% and reducing reliance on imported energy from 48 to 42%; • a reduction in greenhouse gas emissions of 209 million tonnes CO2eq a year; Biomass -general

LIMITED RESOURCES: SEARCH FOR NEW & RENEWABLE ENERGY Comenius University Lectures, Bratislava Regulation aspects of energetics: bias for solution 21. Benefits • direct employment for up to 250-300 000 people, mostly in rural areas. Different studies produce widely different figures; • potential downward pressure on the oil price as a result of lower demand for oil Biomass - general

LIMITED RESOURCES: SEARCH FOR NEW & RENEWABLE ENERGY Comenius University Lectures, Bratislava Present and prospective regulation options:public, households and transport Part II ZS. BADACSONYI ENERGY & REGULATIONS

LIMITED RESOURCES: SEARCH FOR NEW & RENEWABLE ENERGY Comenius University Lectures, Bratislava Regulation aspects of energetics: bias for solution 22. • Technology for biomass use in residential and industrial heating is simple and cheap • New techniques are available to turn wood and clean residues into standardised pellets that are environmentally safe and easy to handle • This is the missing piece of the jigsaw, alongside existing directives covering electricity and transport Biomass - heating

LIMITED RESOURCES: SEARCH FOR NEW & RENEWABLE ENERGY Comenius University Lectures, Bratislava Regulation aspects of energetics: bias for solution 23. To dos • New specific legislation on renewable energy in heating, based on a critical review of the potential contribution of: • measures to ensure that fuel suppliers make biomass fuels available; • the establishment of efficiency criteria for biomass and the installations in which it is to be used; • equipment labelling to enable people to buy clean and efficient devices; • other technical measures ; • the appropriateness of setting targets; • voluntary agreements with industry. Biomass - heating

LIMITED RESOURCES: SEARCH FOR NEW & RENEWABLE ENERGY Comenius University Lectures, Bratislava Regulation aspects of energetics: bias for solution 24. • Amendment of the directive on the energy performance of buildings to increase incentives for renewable energy (Directive 2002/91/EC on the energy performance of buildings) • A study of how to improve the performance ofhousehold biomass boilers and reduce pollution, with a view to setting requirements in the framework of the eco-design directive (Directive 2005/32/EC establishing a framework for the setting of ecodesign requirements for energy-using products) Biomass - heating

LIMITED RESOURCES: SEARCH FOR NEW & RENEWABLE ENERGY Comenius University Lectures, Bratislava Regulation aspects of energetics: bias for solution 25. • Add the supply of district heating to the list of goods and services to which Member States may apply a reduced rate of VAT, then extend to district heating any reduced VAT rate already applied to natural gas or electricity Biomass - heating

LIMITED RESOURCES: SEARCH FOR NEW & RENEWABLE ENERGY Comenius University Lectures, Bratislava Regulation aspects of energetics: bias for solution 26. • Electricity can be generated from all types of biomass • The technologies can be used to “co-fire” biomass, by mixing it with coal or natural gas, or to run freestanding power stations • Large centralised power plants, like those used to burn straw in Denmark or forest residues in Finland, offer the best economic performance, especially if they are also used for heat • Smaller decentralised plants burning solid biomass or biogas tend to cost more, but often have advantages for the environment and for rural development Biomass - electricity

LIMITED RESOURCES: SEARCH FOR NEW & RENEWABLE ENERGY Comenius University Lectures, Bratislava Regulation aspects of energetics: bias for solution 27. • Encourage public procurement of clean vehicles • Examination the scope for the use of alternative fuels, including biofuels, to count towards CO2 reduction targets for light duty vehicles as part of its review of how to move towards the Community objective of average emissions of 120 g/km • The future strategy will be based on an “integrated approach”. This means that measures such as the use of biofuels, fiscal incentives, consumer information and congestion avoidance will be considered in addition to car manufacturers’ efforts on vehicle technology Biomass - transport

LIMITED RESOURCES: SEARCH FOR NEW & RENEWABLE ENERGY Comenius University Lectures, Bratislava Regulation aspects of energetics: bias for solution 28. • amendment of standards: to facilitate the use of a wider range of vegetable oils for biodiesel,, diesel must contain no more than 5% biodiesel by volume • to limit the content of ethanol, ether and other oxygenates in petrol, the vapour pressure of petrol (Directive 98/70/EC) • removal of technical barriers • petrol blended with ethanol cannot be carried in oil pipelines; • it is not practical to offer a petrol basestock with a reduced vapour pressure suitable for the direct blending of ethanol Biomass - transport

LIMITED RESOURCES: SEARCH FOR NEW & RENEWABLE ENERGY Comenius University Lectures, Bratislava Regulation aspects of energetics: bias for solution 29. • Common agricultural policy • farmers can respond freely to increasing demand for energy crops • possibility of using mandatory “set-aside” land for growing non-food crops (including energy crops) • Forestry • 35% of the annual growth of wood in EU forests is not used • Most of the unused resources are in small private holdings • Some countries have tackled this problem by setting up supply chains coupled to existing plants, and by supporting the organisation of logistics systems, forest owner cooperation and transport Biomass – supply of biomass

LIMITED RESOURCES: SEARCH FOR NEW & RENEWABLE ENERGY Comenius University Lectures, Bratislava Regulation aspects of energetics: bias for solution 30. • Waste • Waste is an underused energy resource To dos • promotion of waste management techniques that reduce the environmental impact of using waste as a fuel; • taking a market approach to recycling and recovery activities; • developing technical standards to enable recovered materials to be considered as goods (making it easier to use them for energy purposes); • encouraging investment in energy-efficient techniques for the use of waste as fuel Biomass – supply of biomass

LIMITED RESOURCES: SEARCH FOR NEW & RENEWABLE ENERGY Comenius University Lectures, Bratislava Regulation aspects of energetics: bias for solution 31. • Animal by-products • Animal by-products not intended for human consumption are increasingly being recovered for energy, especially in biogas and biodiesel • review the regulatory framework for the authorisation of such processes, so that new sources of energy may be opened up, while a high level of protection for public and animal health is maintained Biomass – supply of biomass

LIMITED RESOURCES: SEARCH FOR NEW & RENEWABLE ENERGY Comenius University Lectures, Bratislava Regulation aspects of energetics: bias for solution 32. • 50% of overall EU final energy consumption • renewables today accounting for less than 10% of the energy consumed for heating and cooling purposes • The Community has not so far adopted any legislation to promote heating and cooling from renewable sources Heating and cooling

LIMITED RESOURCES: SEARCH FOR NEW & RENEWABLE ENERGY Comenius University Lectures, Bratislava Regulation aspects of energetics: bias for solution 33. • policies and practices vary widely across the EU, there is no coordinated approach, no coherent European market for the technologies, and no consistency of support mechanisms • Based on the targets for electricity and biofuels, heating would have to contribute 80 Mtoe by 2010 in order for the 12% overall renewable energy target to be met Heating and cooling

LIMITED RESOURCES: SEARCH FOR NEW & RENEWABLE ENERGY Comenius University Lectures, Bratislava Regulation aspects of energetics: bias for solution 34. • Whilst the directive on the promotion of cogeneration (the CHP Directive) and the Energy Performance of Buildings Directive promote efficient heating, renewable energy in heating has grown only slowly • Biomass use dominates renewable heating consumption and the bulk of this is in domestic wood heating Heating and cooling

LIMITED RESOURCES: SEARCH FOR NEW & RENEWABLE ENERGY Comenius University Lectures, Bratislava Regulation aspects of energetics: bias for solution 35. Failures: • no coordinated approach, • no coherent European market for the technologies • and no consistency of support mechanisms Heating and cooling

LIMITED RESOURCES: SEARCH FOR NEW & RENEWABLE ENERGY