Current Experience with Renewable Support

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Current Experience with Renewable Support CURRENT EXPERIENCE WITH RENEWABLE SUPPORT SCHEMES IN EUROPE Prepared by the Council of European Energy Regulators (CEER) Page 1 of 127 Content 1 EXECUTIVE SUMMARY..................................................................................................8 1.1 Framework....................................................................................................................8 1.2 Conclusion..................................................................................................................17 2 INTRODUCTION............................................................................................................18 2.1 Objective.....................................................................................................................18 2.2 Methodology ...............................................................................................................18 2.3 Structure .....................................................................................................................19 3 LEGISLATIVE FRAMEWORK.......................................................................................20 3.1 The EU Directives.......................................................................................................20 3.2 The environmental versus the regulatory focus..........................................................21 4 CURRENT SUPPLY AND DEMAND.............................................................................23 4.1 Country Specific Targets ............................................................................................23 4.2 Responsibilities and Financing ...................................................................................24 5 DESCRIPTION OF SUPPORT SYSTEMS ....................................................................26 5.1 Overview.....................................................................................................................26 5.2 Political discussion and expected actions ..................................................................30 5.3 Supported electricity and levels of support.................................................................33 5.4 Conclusion: Political discussions and expected actions.............................................34 6 TECHNOLOGIES...........................................................................................................35 7 REGULATION VERSUS RES-E SUPPORT..................................................................38 7.1 Customer information .................................................................................................38 7.2 Permissions ................................................................................................................39 7.3 Stimulating demand-side management ......................................................................41 7.4 Technology and Grid Aspects of Distributed Generation ...........................................43 7.4.1 Distributed Generation Impacts on the Grid ...................................................45 7.4.2 Connecting Distributed Generation to the Grid...............................................49 7.4.3 Wind Power Experiences................................................................................50 7.5 Design aspects of RES-E support systems................................................................61 7.5.1 Balancing Energy (Austria) .............................................................................63 7.5.2 The FIT system for RES-E plants in 2002 ......................................................67 7.5.2 Additional costs...............................................................................................68 Page 2 of 127 7.6 Financial aspects........................................................................................................69 7.6.1 Different support schemes..................................................................................69 7.6.2 Production costs and potentials..........................................................................71 7.6.3 Costs of emissions reduction..............................................................................75 7.7 Administrative aspects................................................................................................77 8 CONCLUSIONS.............................................................................................................78 9 ANNEX...........................................................................................................................79 I. NATIONAL TARGETS ACCORDING TO DIRECTIVE 2001/77/EC .............................79 II. OBLIGATION AND FINANCING ...................................................................................81 III. SUPPORTED ELECTRICITY.........................................................................................83 IV. LEVELS OF SUPPORT .................................................................................................85 V. TOTAL COSTS ..............................................................................................................90 VI. SHARES FOR EACH TECHNOLOGY IN MEMBER STATES......................................93 Austria .................................................................................................................................93 Belgium................................................................................................................................95 Denmark ..............................................................................................................................97 Finland.................................................................................................................................99 France ...............................................................................................................................101 Great Britain ......................................................................................................................103 Greece...............................................................................................................................105 Ireland................................................................................................................................107 Italy ..................................................................................................................................109 Luxembourg.......................................................................................................................111 The Netherlands................................................................................................................112 Norway ..............................................................................................................................114 Portugal .............................................................................................................................116 Spain .................................................................................................................................118 Sweden..............................................................................................................................120 VII. WIND POTENTIALS OFFSHORE ...............................................................................122 VIII. WIND POTENTIALS ONSHORE .................................................................................123 Page 3 of 127 IX. ERRA REPORT ...........................................................................................................124 10 REFERENCES.............................................................................................................125 11 ABBREVIATIONS........................................................................................................127 Page 4 of 127 Figures Figure 1: Comparison between supported RES-E and indigenous production....................................... 9 Figure 2: Conflicts between different EU Directives.............................................................................. 11 Figure 3: Reduction cost for CO2........................................................................................................... 12 Figure 4: Additional cost for wind power in Germany............................................................................ 15 Figure 5: Indicative targets of the RES-E Directive............................................................................... 20 Figure 6: Achievement of the indicative targets in 2001 ....................................................................... 23 Figure 7: Categorization of policy instruments ...................................................................................... 30 Figure 8: Wind potential in Europe ........................................................................................................ 45 Figure 9: Wind power in Austria ............................................................................................................ 51 Figure 10: Congested lines within Austria............................................................................................. 52 Figure 11: Balancing costs in Austria.................................................................................................... 52 Figure 12: Installed capacity in Denmark .............................................................................................
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