Status Report 2004 Energy End-use Efficiency and Electricity from Biomass, Wind and Photovoltaics and in The European Union August 2004 Authors Paolo Bertoldi Thomas Huld Niina Kautto Harald Scholz Ewan Dunlop Arnulf Jäger-Waldau Andrew Machirant Marcel Suri Editor: Arnulf Jäger-Waldau European Commission, DG JRC, Institute for Environment and Sustainability, Renewable Energies Unit Via Enrico Fermi 1; TP 450 I – 21020 Ispra, Italia EUR 21297 EN © 2004 European Commission LEGAL NOTICE Neither the European Commission nor any person acting on behalf of the Commission is responsible for the use, which might be made of the following information. A great deal of additional information on the European Union is available on the Internet. It can be accessed through the Europa server (http://europa.eu.int). Pictures on front cover from let to right: 1) Source: Schüco Solar, Freiburg 2) Pix Nr.: 01221 Title: 2 Wind turbines on hillside with flowers; Credit: Gretz, Warren; acknowledge DOE/NREL 3) Pix Nr.: 04744; Title: New technology fuels high-efficiency electricity generation with biomass; Credit: Gretz, Warren; acknowledge DOE/NREL Luxembourg: Office for Official Publications of the European Communities, 2004 ISBN 92-894-8193-5 Ó European Communities, 2004 Reproduction is authorised provided the source is acknowledged Printed in Italy ii PREFACE The European Union is implementing challenging commitments to reduce greenhouse gas emissions by 8% in accord with the Kyoto protocol, and has established ambitious targets for renewable energies and energy end-use efficiency in its White Paper: Energy for the Future: Renewable Sources of Energy. In the past decade, renewable energy technologies have made significant progress in terms of performance, cost and reliability, thanks to vigorous research, development, demonstration and market introduction programmes at European, national and also regional level. Developments primarily rooted in environmental concerns are now penetrating all societal decision making and have led to a new, dynamic, and exponentially growing industry. Three major drivers are determining today’s socio-economic framework for the impressive renewables’ industrial and market developments. First, successful application of legally binding feed-in tariffs; secondly, liberalisation of the electricity market, and thus new possibilities for decentralisation of power generation. Third, and in the medium term, there is the undisputed need for massive re-powering the larger part of Europe’s generation capacity. This will incur generally higher electricity costs, which reflect somewhat better the real costs (incl. externalities) of all the different energy technologies. Thus a more favourable market situation for sustainable technology choices will evolve, e.g. for massive renewable power generation. While technology development has been a key driver in the progress of renewables, first examples of significant penetration would have been impossible without appropriate, supporting policies including instruments such as introduction targets, carbon taxes, elimination of non-technical barriers, internalisation of external costs of energy, and harmonisation of market rules. The efficient end-use of energy is a parallel area where modern technology, policies, better public conscience of the issues and market forces, like the utilities’ interest to exploit the potentials for avoidance of new transmission and generation capacity, have combined to achieve significant results. New integrated marketing concepts, like energy service companies, have been very successful lately, and organisationally break ground for the implementation of sharper physical efficiency concepts as well. This is of particular strategic importance for the New Member States of the EU, as the use of energy, including electricity, in these countries is still significantly less efficient than in the old Member States. The aim of this Status Report is to provide relevant, validated and independent information on renewable energy and the efficient end-use of electricity to decision makers and the public. Ispra, August 2004 Arnulf Jäger-Waldau European Commission Joint Research Centre; Renewable Energies Unit Disclaimer We have collected up to date data and validated them to our best knowledge, but do not claim that they are a 100% complete, due to the wide range of data sources and different data collection methods. If there are discrepancies or information missing, we would appreciate if you could to send this information to us including the data source for further updates of this report. [email protected] 2 TABLE OF CONTENT Preface __________________________________________________________________ 1 Table of Content __________________________________________________________ 3 Chapter 1 Introduction (H. Scholz and A. Jäger-Waldau) ______________________________ 5 1.1 Technologies to Generate Electricity from Renewables _______________________________ 8 Chapter 2 The Political Frame in the European Union (H. Scholz, A. Machirant, P. Bertoldi and A. Jäger-Waldau) _______________________ 9 2.1 White Paper and beyond: EU strategic awakening towards a sustainable energy system ______ 9 2.2 Legislative instruments at EU-level and their Monitoring_____________________________ 21 2.3 Policy in Support of RES-E in new EU Member Countries ___________________________ 27 Chapter 3 Energy End-Use Efficiency (Paolo Bertoldi) ______________________________ 30 3.1 Electricity Consumption in the Residential Sector __________________________________ 31 3.2 Residential electricity consumption in 2003_______________________________________ 33 3.3 Tertiary Sector Electricity Consumption _________________________________________ 42 3.4 Industrial sector Electricity Consumption_________________________________________ 46 3.5 Conclusions_______________________________________________________________ 47 Chapter 4 Biomass (Niina Kautto)______________________________________________ 50 4.1 Introduction_______________________________________________________________ 50 4.2 Status of bioelectricity in the EU -25 ____________________________________________ 53 4.3 Background of the RES -E and bioenergy legislation ________________________________ 66 4.4 Bioelectricity support policies in the EU -25_______________________________________ 67 4.5 Bioelectricity economics and competitiveness _____________________________________ 72 4.6 Barriers and success factors for implementation____________________________________ 75 Chapter 5 Wind Energy (A. Jäger-Waldau) _______________________________________ 78 5.1 Resources ________________________________________________________________ 78 5.2 Market and Implementation___________________________________________________ 80 5.3 Technological Developments__________________________________________________ 83 5.4 Further Challenges _________________________________________________________ 85 Chapter 6 Photovoltaic (A. Jäger-Waldau and H. Scholz) ______________________________ 87 6.1 Introduction_______________________________________________________________ 87 6.2 Technology issues __________________________________________________________ 90 6.3 Market and Implementation in the EU ___________________________________________ 92 Chapter 7 PV electricity Potential in EU25 Member States (M. Šúri, T. Huld, E. Dunlop) __________________________________________ 97 7.1 European Solar Radiation Database_____________________________________________ 97 7.2 Potential of a 1 kWp PV Configuration __________________________________________ 97 7.3 PV Electricity in Residential Areas ____________________________________________ 102 7.4 PV Capacity Needed to Generate 1% of the National Electricity Consumption____________ 104 Chapter 8 Outlook and Conclusions (H. Scholz and A. Jäger-Waldau) ___________________ 106 8.1 Europe _________________________________________________________________ 106 8.2 Global __________________________________________________________________ 109 Acknowledgements_______________________________________________________ 111 References _____________________________________________________________ 112 Annex_________________________________________________________________ 121 Key Energy Figures ______________________________________________________ 121 Tables ________________________________________________________________ 123 3 4 CHAPTER 1 INTRODUCTION Arnulf Jäger-Waldau and Harald Scholz Between 1990 and 2000 the energy consumption in the European Union (EU15) increased by 10%, thus leading to an increase of energy imports as the Union’s own production was insufficient for its energy requirements [EC 2003]. As a result, the dependence of EU15 on external energy sources and markets has been and is still increasing, presently resulting in an import quota of about 49% (in energy units). The EC’s Green Paper on Security of Energy supply [EC 2000] anticipated, that this dependency could menace to reach over 70% over the next 20-25 years, already taking into account the enlargement of the European Union. In addition, environmental concerns are shared by a majority of the EU public nowadays. This adds to the list of weaknesses of fossil fuels and the safety worries over nuclear power including its fuel system. These concerns include individual and societal damage already caused and potentially to be expected by our current energy supply system, whether such damage is of accidental origin (oil slicks, pit disasters, nuclear accidents, methane leaks), premeditated