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Study of the Introduction of Renewable Energy in the EU

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Study of the Introduction of Renewable Energy in the EU Study of the Introduction of Renewable Energy in the EU Report by INFORSE-Europe to the EU - Japan Centre for Industrial Cooperation February 2006 Study of the Introduction of Renewable Energy in the EU A report on current status and trends in renewable energy in the 25 EU countries, policies for renewable energy and energy efficiency, and the EU Emission Trading Scheme. Highlights of developments in the UK, Czech Republic and Hungary. Report by International Network for Sustainable Energy - Europe (INFORSE-Europe), www.inforse.org/europe for EU-Japan Centre for Industrial Cooperation, www.eujapan.com Main authors: Gunnar Boye Olesen Judit Szoleczky (Hungary) Pete West (United Kingdom) Emil Bedi (Czech Republic) Niki Fowler (Text Advice) February 2006 © Copyright EU Japan Centre for Industrial Cooperation, 2006. Quotation permitted if source is clearly stated. 2 Table of Contents 1. Introduction ..................................................................................................................................................3 1.1 Overview of EU Energy Sectors ............................................................................................................. 3 1.2 Latest Trends in Renewable Energy........................................................................................................ 5 2. EU Policy Trends in Renewable Energy and Energy Efficiency..............................................................6 2.1 Framework for Renewable Energy and Energy Efficiency..................................................................... 6 2.2 Current Renewable Energy Policies .......................................................................................................13 2.3 Assessments of Renewable Energy and Climate Targets.......................................................................19 2.4 Upcoming Initiatives for Renewable Energy, Targets ...........................................................................22 2.5 Current Energy-Efficiency Policies........................................................................................................24 2.6 Upcoming Initiatives for Energy Efficiency: Green Paper.....................................................................30 3. Introduction of EU Emission Trading Scheme (ETS).............................................................................32 3.1 Status of National Allocation Plans (NAPs)...........................................................................................33 3.2 First Assessments of the Functions of the EU ETS during 2005 ...........................................................35 3.3 Impacts on the Sectors included and on Renewable Energy ..................................................................36 3.4 Challenges for the ETS and EU climate policies, 2008-2012 ................................................................37 4. Overview of the Corporate Structure in the Main Renewable-Energy Sectors ...................................38 4.1 Windpower .............................................................................................................................................38 4.2 Solar PV..................................................................................................................................................40 4.3 Solar Thermal .........................................................................................................................................41 4.4 Solid Biomass.........................................................................................................................................43 4.5 Liquid Biofuels.......................................................................................................................................45 4.6 Biogas.....................................................................................................................................................46 5. United Kingdom .........................................................................................................................................48 5.1 Current Energy Status, Conditions for Renewable Energy ....................................................................48 5.2 Effect of Progressive Targets for Renewable Energy.............................................................................51 5.3 Renewable Energy Policies and Measures .............................................................................................53 5.4 Emission Trading Scheme......................................................................................................................56 5.5 Outlook for Sustainable Energy until 2020 ............................................................................................57 5.6 The Nuclear Sector, including Recent Political Developments..............................................................59 5.7 Outlook for Energy, for CO2, and for Energy Imports ...........................................................................63 6 The Czech Republic.....................................................................................................................................66 6.1 Current Energy Status.............................................................................................................................66 6.2 Renewable Energy Policy.......................................................................................................................73 6.3 Recent Development of Renewable Energy and Outlook 2030 .............................................................76 6.4 Emission Trading Scheme, and National Allocation Plan......................................................................79 7. Hungary.......................................................................................................................................................82 7.1 Current Energy Status.............................................................................................................................82 7.2 Renewable Energy Policy.......................................................................................................................85 7.3 Recent Development of Renewable Energy and Outlook 2030 .............................................................87 7.4 Emission Trading Scheme and National Allocation Plan.......................................................................92 Acronyms & Abbreviations...........................................................................................................................94 Contents of Annexes 25 Fact Sheets for the EU Countries.........................................................................96 Study of the Introduction of Renewable Energy in the EU. February 2006. 1 2 1. Introduction Total Primary Energy Supply (TPES) (2003, based on IEA data), excluding electricity import/export, EU-25 1.1 Overview of EU Energy Sec- Gas Nuclear-el Nuclear- tors 23.5% 4.9% loss 9.7% Waste The 25 countries in the European Union differ in 0.4% many ways, including energy supply and demand. Some, like Denmark, are net exporters of energy, Biomass while others meet almost all of their energy demands RES* 3.7% with imports. Their consumption patterns are very 5.7% different as well. In Scandinavia, space heating is Hydro the largest single use, whereas in the Mediterranean 1.4% Oil Cyprus and Malta, space heating is not an issue. One Coal Wind, 37.6% feature that all of the countries have in common is a 18.1% solar, etc high energy consumption per capita compared with 0.6% * RES=Renewable Energy Sources most other world regions, and high emissions of greenhouse gases, in particular of CO2 from fossil fuels. The EU’s average per-capita greenhouse-gas Tradable Primary Energies, PJ 30000 (2003, based on IEA data), EU-25 emissions were 10.8 tons CO2-equivalent in 2003, of which 81% came from fossil-fuel use, mainly as 25000 CO2 emissions. Taken together, the EU countries are large importers 20000 of fossil fuels, including oil, gas, and coal. Net im- 15000 ports made up 61% of the fossil-fuel supply in 2003 Import for the EU-25 countries and 77% of their oil supply Domestic alone. Domestic production of all fossil fuels is de- 10000 Coal, lignite clining. 5000 etc Gas Within the last decade, the EU countries have be- Oil Biomass come leaders in the development of renewable en- 0 ergy, while domestic production of fossil fuel has declined. Together with Japan, they are also world leaders in energy efficiency. Some of the fastest Electricity Production (2003, based on IEA data), growth rates in the use of renewable-energy tech- EU- 25 nologies have taken place in individual EU countries Nuclear since 1990. 32% Waste The development of renewable energy has reached a 0.5% level at which new technologies are making substan- tial contributions to the energy supply in several of Gas Hydro the EU countries. 18% RES* 9% 13% Wind, solar, In the future, the EU will consume a decreasing etc. share of the world's energy supply. The role of EU Oil 1.7% countries as suppliers of better technologies for en- 5% Biomass ergy efficiency and renewable energy will be of in- Coal 1.5% creasing importance in reducing worldwide con- 31% sumption of finite energy resources, and thus will make a valuable contribution to the security of supply and to the reduction of global greenhouse-gas emis- sions. Study of the Introduction of Renewable Energy in the EU. February
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