Renewable Energy for Development S TOCKHOLM ENVIRONMENT INSTITUTE – N EWSLETTER OF THE CLIMATE AND E NERGY P ROGRAMME SEI • May 2007 Vol. 20 No. 1 ISSN 1101-8267 SPECIAL THEME ISSUE: RENEWABLE ENERGY IN THE EU A Testing Ground for a Global Sustainable Energy Future As the European Union celebrates its fiftieth birthday, the rapid expansion of renewables in the EU, but at the crea- occasion seems appropriate for devoting an edition of this tion of broad international platforms for technology trans- newsletter to an overview of renewable energy in the EU. fer and deployment. National and regional approaches are When the European Economic Community was formed in 1957, no longer sufficient in a global economy. energy was among its core concerns. Its predecessor, the Coal The EU has emerged as the world leader on climate policy and Steel Union, was focused on Europe’s major energy source and sustainable energy in recent years through several si- and its major industrial energy consumer. The creation of the multaneously occurring institutional processes, particularly European Atomic Energy Community (EURATOM) alongside the integration of energy markets, the drive to approve and the EEC in 1957 was based on the assumption that the peace- implement the Kyoto Protocol, and the establishment of am- ful use of nuclear energy was a key priority for European bitious targets for renewable energy. Focusing on electric development. power (and heat) production, this issue of the newsletter Fifty years later, the EU is facing a rather different energy summarises the variety of renewable technology deployment challenge, in the form of climate change, the return of energy platforms, policy options and national/regional innovation security issues, and the goal of a competitive and sustain- systems used across the EU and its 27 Member States. It is able energy system for the Community. The policies and in- this wealth of options and platforms that makes the EU a stitutions established in recent years are aimed not only at a testing ground for a global sustainable energy future. Europa, 2007 The Europa tram In this issue: Overview of Renewable Energy in the EU 2 Ireland and UK ............................................ 4 Nordic Countries ......................................... 5 Baltic Countries ........................................... 7 Poland ............................................................ 8 Central Europe ............................................. 9 Austria ............................................................ 9 Germany ......................................................... 10 Benelux Countries ........................................ 11 France ............................................................ 12 The Iberian Peninsula ................................. 12 Mediterranean Countries ........................... 14 European Community, 2007 European Community, Romania and Bulgaria ................................ 16 Overview of Renewable Energy in the EU as well as non-renewable sources (see Figure 3). Energy and Climate policy in the Euro- to 20% between 1990 and 2004. Due to Before the 1990s, the overwhelming pean Union centres on the need to rec- robust electricity demand during much majority of renewable energy in the power oncile three fundamental goals: of this period, all fuels except oil regis- sector was hydro-based; large hydro- sustainability, competitiveness and en- tered an absolute increase; the use of oil power plants that were built several de- ergy security. The growing concern for power generation has been disappear- cades ago provided the only major con- over climate change, along with the ing gradually ever since the oil crises of tribution to electricity generation. Some market opening in the power sector, the 1970s (Figure 1). countries had initiated bioenergy pro- have contributed to a number of recent In spite of the many advances in re- grammes in the 1980s, but their total shifts in the sources of supply. Until the newable markets, the current energy contribution remained small. In the past 5-10 years, wind capacity was in- structure within the EU remains heavily 1990s, several renewable technologies significant, but as of 2004 it represented dependent on fossil fuels, including a were mature and policy support mecha- about 5% of total capacity. The capac- significant amount of imported oil and nisms had evolved sufficiently that ma- ity of thermal, hydro, and nuclear - gas. A reduction in the reliance on im- jor commercial investment accelerated which had long provided the founda- ported fossil fuels is a vital element in tion for EU power supply - all decreased the transition to a sustainable and secure Acknowledgements in share. energy system; this transition is already This special edition of the newslet- The supply mix has become more reflected in the policy instruments and ter was assembled, written and ed- diverse; in 1990, two sources - coal and patterns of investment of recent years, ited by Francis X. Johnson and nuclear - accounted for 70% of power with the strong emphasis on low car- Fiona Zuzarte. Thanks are extended generation, whereas by 2004, these two bon energy sources, particularly natural to the following persons and sources supplied only 60%. Natural gas gas, biomass, and wind. Another impor- organisations that made valuable con- has become the main fuel of choice at tant area of deployment is cogeneration tributions to this newsletter: the margin; the share of natural gas in of heat and power, which greatly im- power production increased from 8% proves the efficiency of biomass plants Maarten J. Arentsen Adam Buchhorn Danae Diakoulaki 3500 Rocio A. Diaz-Chavez Daniele Guidi 3000 Paula Kivimaa Benigna Kiss Other Katarina Korytarova 2500 Volkmar Lauber Biomass Jean-Christian Marcel 2000 Nuclear Gergana Miladinova Hy dro Martynas Nagevicius Miles Perry 1500 Gas Diana Urge-Vorsatz Oil Aviel Verbruggen 1000 Coal Malta Energy Efficiency and Renewable Energies Association 500 References that were cited in this is- 0 sue can be found at: 1990 1995 2000 2004 http://www.sei.se/red/red-vol20-no1- references.html Figure 1: Electric power generation in the EU-25 by source (TWh); (Source: EUROSTAT) The Stockholm Environment Institute (SEI) is an is also available through the SEI website. ISSN 1101-8267 international research institute focusing on sustainable The views expressed in the articles in this newsletter Printed on chlorine-free, 100 % recycled paper development. The Institute works through an interna- are those of the authors and not necessarily those of SEI tional network of centres, associates, and field staff nor of Sida. around the world. For further information contact Solveig Nilsson, The Climate and Energy Resources Programme is SEI. [email protected] concerned with improving access to environmentally friendly energy services, promoting renewable energy Managing Editor: Anders Arvidson Kräftriket 2B and energy efficiency, and advancing global cooperation Editor: Francis X. Johnson SE-106 91 Stockholm, Sweden on climate change. Publisher: Arno Rosemarin Tel +46 8 674 7070, This newsletter is supported by the Swedish In- Fax +46 8 674 7020 Layout: SEI/Solveig Nilsson ternational Development Cooperation Agency E-mail [email protected] (Sida). The newsletter is distributed free of charge and Printer: Elanders Gotab www.sei.se 2 Stockholm Environment Institute renewables, sets a target of 21% of gross electricity on the other consumption in 2010 to come from re- hand, more newable energy sources in the EU (Di- than tripled rective 2001/77/EC). Indicative targets for from 1990 to member States are specified in the Direc- 2004. tive, and Member States must report on In order progress achieved each year. The targets for renew- vary considerably, based on current shares ables to be- of renewable energy consumption along come fully with the physical reality of wide variations competitive, in the natural endowments - and thus the continued ultimate potential of - renewable resources market ex- in different countries (see Figure 4). Figure 2: Experience curves for energy power technology in the EU, In conjunction with renewable energy 1980-1995; (Source: IEA, 2000) pansion is needed to in- directives and policies, legislation was de- duce learning effects and bring down veloped to allow exemptions in the taxa- considerably. A renewables revolution costs, as occurred from 1980-95 (Fig- tion of energy sources (Directive 2003/ was launched in the EU, with wind and ure 2). Further innovation in technol- 96/EC). The Directive allows Member biomass leading the way. Power genera- ogy development and deployment is States to apply exemptions or reductions tion from hydro sources was relatively needed. The Renewables Directive in the level of taxation on renewable en- stable from 1990 to 2004. The “new” ergy sources, including solar, wind, tidal, geothermal, biomass, and waste. These Combined Heat and Power (CHP) generation tax concessions are considered state aids, which may not be implemented without The European Commission target was to increase the share of CHP electric- prior EC Commission authorisation, in or- Hard coal and Renewable Other fuels derived ity in the EU from 9% in 1994 to 18% der to avoid undue distortion of competi- 10% 9% products 19% in 2010. CHP has great potential for Blast- tion and over-compensation. furnace gas energy savings and reductions in Rapid movement along the technology 1% greenhouse gas emissions, having the Coke-oven gas Lignite and