Renewable energy in

Austrian Energy Agency (AEA) Dipl. Ing. Dr. Leonardo Barreto Gómez| 25.3.2019 Austrian Energy Agency A link between business, administration and politics

• Founded as a non-profit scientific association in 1977 • Today: 87 employees| EUR 8.5 million turnover • Expertise and networking for policy-makers and business • Members are the federal government, the federal states and more than 40 energy and social institutions

President and Vice-president Vice President

Minister of Sustainability and Chairman of the Provincial Tourism Governors' Conference

Elisabeth Köstinger Peter Kaiser(1st half of 2019), Carinthia

Cathirnia Source: Land Land Source:

2 Key work areas at international level

Policy frameworks

Capacity Pre-feasibility Building/ studies Training

Know-How- Transfer/Networking

3 THE EU’S CLIMATE AND ENERGY TARGETS (“20-20-20 TARGETS”) o Key EU targets by 2020: o Reduction in EU greenhouse gas emissions of 20% below 1990 levels o 20% of EU gross final from renewable energies o 20% reduction in primary energy use compared with projected levels, by improving energy efficiency o Key EU targets by 2030 o At least 40% cuts in greenhouse gas emissions (from 1990 levels) o At least 32% share for o At least 32.5% improvement in energy efficiency

4 Climate and energy strategy

• Austria has set a national target of 45-50% RES share of the gross final energy consumption by 2030 • Austria aims to achieve 100% RES electricity by 2030 (excluding balancing energy to stabilise the grid) • Several lighthouse programmes on RES – Thermal retrofitting of buildings – 100,000 Solar PV rooftops – Linking RES promotion with storage – Renewable hydrogen and biomethane – E-mobility

5 • Key targets for 2030:: – - 36% GHG-Emissions (compared to 2005) – 100% green electricity (national, annual balance) – Main Focus: • Mobility: - 7,3 Mt CO2-equivalent (- 31 %) • Buildings: - 3 Mt CO2-equivalent (-37,5%) – Share of renewable energy sources 2030: 45 – 50% (target 2020: 34%) – reduction of primary energy intensity – 25% to -30% (compared to 2015) – High security of supply

6 RES SHARES IN AUSTRIA IN 2016: GROSS FINAL ENERGY CONSUMPTION

2016 Share Target (%) 2020

RES Total 33.5 34 RES-Electricity 72.6 RES- Heating and Cooling 33.3

RES -Transport 10.6 10

Source: EUROSTAT (2018) Installed Capacity in MW in 2016

Solar PV; 1.193; 5% Others; 641; 3% Wind; 2.887; 11% Biogas; 85; 0% Hydro run-of-river; Biomass; 5.714; 22% 424,051; 2%

Gas; 4.853; 19%

Hydro storage; 8.436; 33%

Coal and Oil derivates; 1.180; 5%

8 RES electricity production in 2016

45.000 40902 40.000

35.000

30.000

25.000

20.000

15.000

10.000 RES Electricity Production (GWh) Production Electricity RES 5350 5.000 3226 1378 1096 0,02 0 Biomass Wind power Black liquors Photovoltaics Geothermal (solid, liquid, energy gaseous)

9 Available generation capacity on Thu. 14.6.2018

10 Pumped storage in Austria

• The baseload is covered by run-of-river hydro power and biomass • Pumped storage plants and plants supply electricity during demand peaks • They also compensate short-term fluctuations due to variable renewable (wind, solar PV) • Pumped storage provides the bulk of balancing energy in Austria

11 Cross-border electricity exchanges

12 Market coupling

• Day-ahead market coupling allows simultaneouslyconducting energy trade and allocating cross-border transport capacities • On the Italian and Slovenian borders, market coupling has already been successfully implemented • In the other borders an explicit allocation of capacities takes place • Market coupling in these other borders is necessary for an optimal integration of RES into the electricity grid • This is particularly the case in the German border

13 Balancing responsibilities in Austria

• The procurement of balancing power in Austria is done through a weekly tender procedure conducted by the electricity market operator (Austrian Power Grid, APG) • The resulting costs are borne by the service fee paid by all electricity generators (including RES) over 5 MW and through the balancing energy charges of the entity responsible for the respective balance group • The balancing responsibility for supported RES electricity lies with the single buyer of green electricity, the clearing agency for green electricity (OeMAG) • There is currently no possibility in Austria for RES electricity plants that receive support to directly offer balancing services on the market • Costs of balancing energy are increasing substantially and adaptations to the system may be required in the future

14 Balancing costs for the green electricity balancing group

15 The 380 KV ring

16 RES electricity in Austria

• Austria has been able to integrate substantial amounts of RES electricity • Austria has set a target of 100% RES electricity by 2030. Additional grid reinforcements are needed to achieve it • Pumped storage hydro plays a significant role in the integration of large amounts of wind and solar PV electricity • Grid reinforcements to secure the integration of RES electricity and pumped storage plants and ensure security of supply are being undertaken • Austrian pumped storage plants will play an increasing role in RES integration at the regional level • Market coupling has been succesfully implemented in several borders but it needs to be expanded to other borders as well

17 ADDITIONAL GENERATION WILL COME MAINLY FROM PV AND WIND

Wind potential until 2030: 7.500 MW

Lightweight and flexible solutions Picture: DAS Energy / Vöslauer

“100.000 solar roofs Picture: Energie AG and batteries“ program

Picture: Verbund

18 AUSTRIA DEVELOPED HYDROPOWER KNOW- HOW OVER THE LAST 100 YEARS

Consulting and Engineering

Financing and Supporting

Planning, Construction, Operation Maintenance of hydropower plants MORE THAN 1.000 BIOMASS HEATING PLANTS ARE OPERATING ALL OVER THE COUNTRY

NATIONAL HEATING STRATEGY

20 Possible areas of cooperation

• Support regional cooperation on renewable energy and energy efficiency • Support to the development of sustainable energy related investments • Energy in the context of climate change mitigation (e.g. NDC policies implementation) • Energy security through renewable energy and energy efficiency • Capacity building, training and exchange of best–practice for national actors

21 Contact

Leonardo Barreto Gómez Head of Center „EU&International Affairs“

Österreichische Energieagentur - Austrian Energy Agency

[email protected] Tel +43 (0)1 586 15 24 - 127 Mariahilfer Straße 136 | 1150 | Austria www.energyagency.at @at_AEA

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