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Renewable Road MapDirectorate general for Energy and Transport Renewable Energies- A role to play in Europ. energy competitiveness? DIng.Dr.Karl Kellner.

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Presentation on theme: "Renewable Road MapDirectorate general for Energy and Transport Renewable Energies- A role to play in Europ. energy competitiveness? DIng.Dr.Karl Kellner."— Presentation transcript:

1 Renewable Road MapDirectorate general for Energy and Transport Renewable Energies- A role to play in Europ. energy competitiveness? DIng.Dr.Karl Kellner Adviser Dir D - DG TREN OPEN DAYS 10. October 2007 European Commission

2 Renewable Road MapDirectorate general for Energy and Transport Energy Policy for Europe (Strategic Energy Review) Limiting Global Climate Change to 2°C A unilateral EU independent commitment of at least 20% GHG emission reduction by 2020, compared to 1990 levels And a 30% reduction if broader participation STRATEGIC OBJECTIVE INTEGRATING ENERGY & ENVIRONMENT

3 Renewable Road MapDirectorate general for Energy and Transport 3 Competitiveness LISBON Renewable energy Energy efficiency Nuclear Research and innovation Emission trading International Dialogue European stock management (oil/gas) Refining capacity and energy storage Diversification Internal Market Interconnections (Trans-European networks) European electricity and gas network Research and innovation Clean coal Carbon sequestration Alternative fuels Energy efficiency Nuclear Sustainable Development KYOTO Security of supply MOSCOW FULLYBALANCEDINTEGRATEDAND MUTUALLY REINFORCED I. THE THREE CHALLENGES

4 Renewable Road MapDirectorate general for Energy and Transport THE KEY DRIVERS 3x20% by 2020 THE KEY DRIVERS 3x20% by 2020 By % EU GHG 20% by 2020 EFFICIENCY BIO-FUELS BIO-FUELS 10 % 2020 binding HEATING &COOLING NATIONAL TARGETS and ACTION PLANS By % RENEWABLES E-E LECTRICITY

5 Renewable Road MapDirectorate general for Energy and Transport Status on legislative framework for renewable energies in the EU Directive 2001/77/EC on the promotion of electricity produced from renewable energy sources in the internal electricity market Directive 2003/30/EC on the promotion of the use of biofuels or other renewable fuels for transport Complete absence of legal framework for promotion of renewable energy in the heating and cooling sector

6 Renewable Road MapDirectorate general for Energy and Transport Status Quo on renewable energies Clear growth in electricity The recent start of solid growth in biofuels The slow growth rate for heating and cooling Differences in legislative framework for electricity, biofuels, and heating and cooling established at EU level are reflected in the development of the three sectors:

7 Renewable Road MapDirectorate general for Energy and Transport Status Quo on renewable energies biofuels: uneven and slow growth in achieving share within MS heating and cooling: slow growth rate absence of EU legislation no coordinated approach no consistency of support mechanisms lack of appropriate policy and targets administrative barriers Current contribution of biofuels and Heating & Cooling

8 Renewable Road MapDirectorate general for Energy and Transport The way forward Climate change, increasing dependence on oil and other fossil fuels, growing imports, and rising energy costs are making our societies and economies vulnerable. These challenges call for a comprehensive and ambitious response. overall 20% binding target of RES in gross inland consumption by 2020 minimum 10% binding target for biofuels of overall consumption of petrol and diesel by 2020 The targets

9 Renewable Road MapDirectorate general for Energy and Transport Overall EU target will be reflected in mandatory national targets (National Action Plans). NAP shall contain sectoral targets and measures for achieving objectives in electricity, biofuels and heating and cooling Proposals for legislation on targets, uptake of RES in the three sectors and monitoring mechanisms will be put forward in late 2007 Implementing the targets The way forward

10 Renewable Road MapDirectorate general for Energy and Transport What are the impacts? Important benefits of reaching a 20% share of renewable energy in 2020 Annual CO2 emission savings of Mt from 2020 onwards ( billion at 25/t of CO2) and air quality benefits Annual reduction in fossil fuel demand of 252 Mtoe from 2020 onwards, diversification and increase of domestically produced fuels net increase in employment and small increase of 0,5% on GDP keep the global leadership role of EU renewable energy. Maintain or increase current 20 billion turnover and jobs created

11 Renewable Road MapDirectorate general for Energy and Transport What are the impacts? Costs of reaching a 20% share of renewable energy in 2020 Annual additional costs vary according to finance mix, technology choice, research and competition within the sector and international prices for conventional energy sources Additional costOil price by 2020Technology/savings 18 Bn$48/barrelBalanced mix 10,6 Bn$78/barrelBalanced mix Additional costs covered $78/barrelBalanced & Carbon saving of 25/T incl.

12 Renewable Road MapDirectorate general for Energy and Transport Cost reduction i.e. Wind power generation cost contrary to conventional energy sources and technologies there has been a significant reduction in the production cost of renewables (50% in wind for last 15 years) What are the impacts?

13 Renewable Road MapDirectorate general for Energy and Transport How do we get there Renewables growth: Electricity projections by 2020

14 Renewable Road MapDirectorate general for Energy and Transport How do we get there Renewables growth: Heating and cooling projections by 2020

15 Renewable Road MapDirectorate general for Energy and Transport Innovative Renewable energy + Energy efficiency Technologies Communities Large scale integration é Renewable energy sources é Eco-buildings é Polygeneration Large scale integration of Renewable Energy with demand management CONCERTO(FP7) Communities

16 Renewable Road MapDirectorate general for Energy and Transport Example of rural community and its boundaries Concerto Community

17 Renewable Road MapDirectorate general for Energy and Transport Contractor community with defined boundaries PV plant Wind power plant Houses with solar thermal and PV Storage Local CHP plant Neighbourhood CHP Individual houses Office buildings ESCO Natural Gas Electricity Small industry SMEs Big industry Green electricity Green electricity Storage

18 Renewable Road MapDirectorate general for Energy and Transport 1. Nordex GmbH, Germany 2. Global Green Energy ApS, Denmark 3. Paldiski Town Government, Estonia 4. Tallinn University of Technology, Estonia 5. Garrad Hassan, United Kingdom Participants in 20 MW Wind project in Estonia(FP5)

19 Renewable Road MapDirectorate general for Energy and Transport The project focuses on the following issues: Development, installation, test and measurement of the PowerCrane concept (life time maintenance and replacement of major components without mobile cranes) Design, construction, test and measurement of different foundations (standard square, star and rock adaptor) Demonstration of the new concepts by implementing a 20 MW wind farm at Paldiski, Estonia, based on a competitive large scale state of the art wind turbine Implementation of a full scale measuring and verification programme Dissemination of wind energy know-how in Estonia, the Baltic states and the Community Description of the Project

20 Renewable Road MapDirectorate general for Energy and Transport Pakri Wind Farm is established as a demonstration project under the Joint Implementation scheme of the Kyoto Protocol which foresees the sale of app. 0,5 million tons of greenhouse gas emission reductions to the Finnish Republic. The project is among the very first wind power projects of its kind in the World where the income from the sale of carbon credits guarantees the economic feasibility of the project Pakri Wind Farm

21 Renewable Road MapDirectorate general for Energy and Transport Flanking measures Future additional actions I 1.fully implement the RES-E directive: lifting of administrative barriers. Simplifying permission procedures, conditions for grid access and extension. Eliminate red tape 2.propose legislation to optimise support in heating and cooling sector (administrative obstacles, inadequate distribution and building codes, market information) 3.develop the internal electricity market consistent with development of RES (transparency, unbundling, higher inter-connectors capacity)

22 Renewable Road MapDirectorate general for Energy and Transport Future additional actions II 4.re-examine MS support systems, assessment of performance and need to propose harmonised support schemes 5.proposal for an incentive/support system for biofuels in regard to environmental protection, and 2 nd generation biofuels 6.promote RES in public procurement 7.pursue a balanced approach in free trade with biofuels 8.cooperate with grid authorities, regulators and renewable industry to enable better integration of RES into the grid (off-shore wind, cross-border grid connections) Flanking measures

23 Renewable Road MapDirectorate general for Energy and Transport Future additional actions III 9.exploit fully the possibilities offered by the EU financial instruments (Structural and Cohesion funds- 3,4b planned for RE projects, rural development funds, international co-operation programmes) 10.promote exchange of best practices on RES 11.continue to internalise external costs of conventional fossil energy 12.use opportunities of Strategic Energy Technology –Plan ( by late 2007) 13.promote use of RES in its external policies 14.fully implement the Biomass Action Plan of Dec.2005,COM(2005) continue to use IEE programme to achieve fast deployment and to boost large scale investment in new and best performing technologies Flanking measures

24 Renewable Road MapDirectorate general for Energy and Transport On the climate and energy package ENERGY FOR A CHANGING WORLD All documents are available EC, DG TREN: RES policy & RTD programmes EC, DG TREN: agencies, partners, programmes EC, IEEA: Intelligent Energy Executive Agency Further information

25 Renewable Road MapDirectorate general for Energy and Transport Calls for proposals Calls for proposals Energy Research web site and Energy Helpdesk Energy Policy ENERGY FOR A CHANGING WORLD Further information

26 Renewable Road MapDirectorate general for Energy and Transport ENERGY FOR A CHANGING WORLD Further information Towards Seventh Framework Programme Conferences, proceedings, Newsletter


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