Artur WyrwaArtur Wyrwa -- AGHAGH

Promotion of RESPromotion of RES--E E

in the new EU Member in the new EU Member

States States ––the example the example

of Poland of Poland

2

Lecture outlineLecture outline

� EU Context

� RES Support Schemes

� Polish Context

� Evolution of RES-E support system

� Present RES-E support scheme

� Examination

5

EU EU –– RES(E) main documentsRES(E) main documents

•White Paper (RES) 1998

- Strategia rozwoju RES

-CEL: 12% RES (Gross energy consumption)

• Directive 2001/77/EC (RES-E)- Indicative targets for RES-electricity (22%)

- Calls for implementation of RES-E supports schemes

• Directive 2003/30/EC (Biofuels)

- 5.75 % of all petrol and diesel should be bio-fuels by 2010.

• GREEN PAPER 2006

-A European Strategy for Sustainable, Competitive and

Secure Energy

Renewable Energy Road Map

6

Idea Systemu StaIdea Systemu Stałłej Ceny (ej Ceny (FeedFeed--in Tarrifsin Tarrifs))

Podaż

Popyt

Przedsiębiorstwo Energetyczne

CenaGwarantowana

$/kWh

7

Idea Idea RPS RPS -- konkurencjakonkurencja rynkowa produkcji RESrynkowa produkcji RES

Popyt

Rynek Energii

Rynek Certyfikatów

Podaż

Certyfikat

za np.1 kWh

8

9

10

11

Poland & EUPoland & EU--15 Energy Flows in 200015 Energy Flows in 2000

Imports Domestic production

Domestic direct use

Other sectors

(industrial)

Centralized energy transformation

Central. Heat & Power sector

(efficiency = 52,2%)

Sources: EETT2030 Baseline Scenario, EDF Polska, ARE

12

Electricity & gas annual consumption per capitaElectricity & gas annual consumption per capita

08 00016 000

Poland

Austria

Belgium

Denmark

Finland

France

Germany

Greece

Ireland

Italy

Luxembourg

Netherlands

Portugal

Spain

Sweden

UK

Electricity

kWhe/capita/year

0 1 000 2 000 3 000

Gas

Nm3/capita/year

Source: ENERDATA 2001

13

Future Future electricityelectricity demanddemand scenarios scenarios

Source: Polish Energy Policy till 2025(Draft)

Pro GAS

Pro Coal

Efficiency

14

RESRES--E Production in Poland (2004)E Production in Poland (2004)

Gross electric energy production 154, 1 TWh

Total RES capacity installed 1 026,4 MW

Total RES electricity generation 2,8 TWh

15

BAU scenario (Mt CO2)BAU scenario (Mt CO2)

Sources: EDF Polska Environment Workshop; EETT2030; PP2030

EETT 2030

Transport

Tertiary

Residential

Industry

Energy branch

Gas fired systems

CHP & Municipal Plants - Hard coal fired

Power Plants - Hard coal fired

Power Plants - Lignite fired

-10% between 1988-2002

-1%/year from 2010 (UK)

-75% between 2010-2050

-10% between 1988-2002

-1%/year from 2010 (UK)

-75% between 2010-2050

47

8

38

2

368

37

2

364

37

2

34

9

37

3

36

2

33

8

330

47

8

38

2

368

37

2

364

37

2

34

9

37

3

36

2

33

8

330

100

200

300

400

500

600

100

200

300

400

500

600

0

1988

1990

1992

1994

1996

1998

2000

2002

2004

2006

2008

2010

2012

2014

2016

2018

2020

2022

2024

2026

2028

2030

0

1988

1990

1992

1994

1996

1998

2000

2002

2004

2006

2008

2010

2012

2014

2016

2018

2020

2022

2024

2026

2028

2030

BAU scenario

c.a. 800 Mtc.a. 800 Mtc.a. 800 Mt

Kyoto cap (-6% between 1988-2010) Kyoto cap (-6% between 1988-2010) Kyoto cap (-6% between 1988-2010)

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RES Support RES Support –– history & presenthistory & present

� 1997 Polish Energy Act

� 1999 First Ordinance (electricity from unconventional sources)

� 2001 Development Strategy of Renewable Energy Sector

- 7.5 % RES in 2010

- 14 % RES in 2020

� 2001 Ordinance of the Minister of Economy on RES Electricity Purchase Obligation ( 2001, amended 2003)

� Acession Treaty: ~ 9 % RES in the total electric energy sale 2010

� 2004 – New Ordinance, guarantee of origin (PEA)

� New situation after October 2005

Primary Energy

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RESRES--E QuotasE Quotas

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Present RESPresent RES--E support schemeE support scheme

RES-E

generator

Guarantee of

origin (GoO)

Electricity Local energy

utility

Market

of GoO

certificates

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Local energy utility is oblige

- to purchase electricity from RES power generators (possessing a license) connected to the grid in its area of activity

- the price of green electricity is equal to the average electricityprice from the previous calendar year

- penalty for incomplance imposed by ERA not lower than theproduct of amount of electricity that utility evaides to buy multipled by the average electricity price on the competetivemarket from the previous year

Present RESPresent RES--E support schemeE support scheme

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Present RESPresent RES--E support schemeE support scheme

Energy utility that produces or turnovers electricity and sells it to the final consumers is obliged to:

- obtain and present guarantee of origin certificates (to write off) to director of Energy

Regulatory Authority

- pay a subsidary fee respectively to the shortage in GoO C

- a subsidary fee is equal to 240 PLN/MWh (approx. 60 EUR) (and since 2007 is subjected to valorization)

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Penalty for incompliancePenalty for incompliance

monitoring & control

Grid operator

confirmation of amount of RES electricity introduced

to the grid

Application for the GoO certificate

EnergyRegulatory Authority

validation

Confirmed application

CommodityExchangeMarket (CEM)

Register of GoO and property rights

comunication of

descrepancies

issuing a certificate

refusal of issuing a certificate

Record of certificate in Register of GoO C

Up to 14 days Up to 14 days

22

Accountig Accountig

Obliged entity

NFEP

ERA

Compliance control

CEMApplication for issuing a document

which confirms the amount of

GoO certificates to write offDocument

Payment of subsidary fee

- statement of the amount of total electricity sold to the final consumers

- document from CEM confirming the quantity of GoO C retired

- document confirming the payment of subsidary fee

Document in electronic form

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Penalty for incompliance Penalty for incompliance

- if energy utility does not present sufficient amount of GoO certificates, then the minimal penalty for incomplianceis calculated from the equation:

Penalty = 1.3 * (Sub. Fee to pay – Sub. Fee paid)

- money goes the budget of the National Fundfor Environment Protection and Water Management and mustbe used to support RES development.

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Projections of RESProjections of RES--E productionE production

Projected gross energy production [TWh/yr]

Projected final sale [TWh/yr]

Required quotas [%]

RES-E [TWh/yr]

Sources: CEM

25

ConclusionsConclusions

Previous systems were malfunctioning

� unclear rules (double counting)

� not sufficient penalties

� lack of investment into new RES capacity

� only RES-E quotas, no TGC market

New system since October 2005

� obligatory quotas and

� tradable GoO certificates

� subsidary fee (240 PLN) ~ 60 EUR/MWh

� guaranteed RES-E price (130 PLN) ~30 EUR/MWh

� penalties for incompliance

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Pytania na egzaminPytania na egzamin

1. Rozwój energetyczny a zmiany klimatu.(Zrównoważony rozwój energetyczny)

2. UNFCCC i protokół z Kioto

3. Mechanizmy elastyczne.

4. Mechanizm stałej ceny Renewable Energy Feed-in Tariffs.

5. Mechanizm “zielonych certyfikatów”-RPS.

6. Rozwój sektora LCP w Polsce w świetle Dyrektywy LCP.

7. Rozwój OZE w Polsce (Uwarunkowania Prawne).