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A special 48-page report on renewables around Europe for Revolve's 2013 photo exhibition "Visualizing Energy | Renewables in Action"
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Hydropower is the number one source of renewable energy. HEA promotes hydropower, its position within the renewable energy mix and its public acceptance. Founded in 2001, HEA represents the interests of hydroequip-ment suppliers worldwide and is involved in the stakeholders dialogue on energy supply strategies, by emphasising all sustainable development aspects of hydropower.
HYDRO EQUIPMENT ASSOCIATIONAdvanced technology for hydropower
HEA_add_2013-05 - revolve compaign.indd 1 05.06.2013 13:10:47
Editorial
Europe is going through tough times. With the persistent crisis and general malaise, in March 2013, Eurostat estimated that over 26 mil-lion people were unemployed in the European Union. Revolve’s photo exhibition – Visualizing Energy | Renewables in Action - presents the human dimension of renewable energies by showing workers on projects across Europe. Renewables are not the only answer but they are part of the solution to achieving a cleaner future.
In 2011, the renewable energy sector in Europe accounted for over 1 mil-lion full-time jobs, according to the EurObserv’ER (pages 20-21). Largely due to the targets set by the EU for 2020, renewables are one of the few sectors that avoided a downturn during the financial crisis. In fact, the crisis has led to a stabilization of both sales turnover and a growth in renewable energy jobs in Europe: between 2009-2011, some 274,000 jobs were created – a 30% increase!
The European Renewable Energy Council predicts that by 2020 there will be 2.7 million people employed in renewables or more than double the 2011 figure. With the current tendency to withstand the financial crisis, this prediction could become prophecy. If the EU can consolidate a solid renewable energy policy within a single market for energy, then Europe may emerge from its crisis with the winning combination of creating more jobs and making more profit while being more sustainable.
Complementary to the photo exhibition, this special report provides additional information and images to encourage citizens, regions, cities, and countries to invest in renewables across Europe. To highlight the tremendous potential for greater ‘green’ growth, this report goes from production/consumption to jobs/employment to the mini-, smart- and super-grids that are now beginning to show tangible results in increasing energy efficiency and in connecting people around Europe and beyond.
Join the energy transition and start revolving!
Hydropower is the number one source of renewable energy. HEA promotes hydropower, its position within the renewable energy mix and its public acceptance. Founded in 2001, HEA represents the interests of hydroequip-ment suppliers worldwide and is involved in the stakeholders dialogue on energy supply strategies, by emphasising all sustainable development aspects of hydropower.
HYDRO EQUIPMENT ASSOCIATIONAdvanced technology for hydropower
HEA_add_2013-05 - revolve compaign.indd 1 05.06.2013 13:10:47
Cover image: A worker climbs a turbine of the Walney offshore wind farm near Barrow-in-Furness, Cumbria, UK. Source: Dong Energy.
Do you care about a clean, healthy future for people anD the planet? “Seize your power” with wwf!
we believe our future can, and should, be powered by nature.
The energy systems put in place across the planet within the next four years will define the world’s climate change path for generations.
We need to invest now in clean, renewable energy – to limit dangerous climate change, to reduce the risk to human health from fossil fuels, to fast-track access to energy, to promote economic development, and to safeguard our collective future. As the world’s third largest greenhouse gas emitter, the European Union and its 28 member countries have a crucial role to play.
we call on the European institutions, European governments and European public and private financial institutions to act immediately to invest more in sustainable energy powered by wind, water and the sun. They must phase out investments in coal, oil and gas and enable a just transition from the dirty energy of today.
Now more than ever Europe and the world need investment in nature, and there are good reasons to do so. we StanD for a future in which humans live in harmony with nature. Investing in fossil fuels threatens the natural world and the stability of communities and society. Investing in renewable energy will support a clean, sustainable future.
There must be no financial reward for environmental and human harm.
We choose to invest in solutions rather than problems: join us.
Seize your power
5
BrussEls
08 | Sustainable City of Europe Evelyne Huytebroeck describes how the
capital of Europe is becoming a clean urban model for others to follow.
10 | BIPV: Architecture & Renewables Introducing the integration of photovoltaics
in one of the largest passive office buildings in Europe.
12 | Exemplary Buildings Green certificates and energy subsidies to
encourage more renewables in ‘zero-energy’ buildings.
JOBs & EmplOymEnt
14 | Three million green jobs by 2020? Despite the crisis, renewables are resilient in
Europe with tremendous potential for growth.
A WOrlD yOu lIKE
25 | Q&A: Connie Hedegaard The EU Commissioner for Climate Action
on green jobs, climate change and a low-carbon economy.
prODuctIOn & cOnsumptIOn
28 | Made from renewables? Renewables can make a cleaner future;
for now let’s look at current production and consumption.
mInI, smArt, & supEr GrIDs
40 | Will Europe ever be united? More public interest and more public/private
investments can connect Europe with power grids.
contents
Images: (Left) Nicole Dirickx makes high voltage windings to connect turbines to the power grid. Source: David Plas/EWEA. (Top right) Tidal energy machine, Orkney Islands, Scotland. Source: Chris Watt. (Bottom right) Manufacturing solar panels in Prenzlau, Germany. Source: Aleo Solar.
Les Halles Saint-GérySeptember - October
A photo exhibition in Brussels - Summer/Fall 2013
Solar
Ocean
Biomass
HydroWind
Geothermal
Renewable energies represent
an annual turnover of € 137 billion
and provide over 1 million jobs in Europe.( Source : EurObserv'ER, 2013 )
Venues:
Esplanade of the European Parliament during the EU Sustainable Energy Week (June 24 - 28)
Park Cinquantenaire (July - August)
Les Halles St-Géry (Sept. - October)
Open Invitation to Cocktail: outside the European Parliament on 26 June 2013 from 6-8pm
RSVP: [email protected] | +32 (0)2 353 0584
A worker climbs a turbine of the Walney offshore wind farm near Barrow in Furness, Cumbria, UK.
Source: Dong Energy.
AD_REinAction_3.indd 4 04/06/13 17:14
Rogier
Louise
Palais de Justice
Photo Exhibition LocationsBrussels, Summer/Fall 2013
Park CinquantenaireJuly - August
Esplanade of the European Parliament 24 - 28 June
Official Media Side Event:
Opening Cocktail Reception - 26 June, 6pm
8
In 2010, the Brussels-Capital Region had nearly 1.1 million inhabitants and by 2020 Brussels expects an additional 143,000 inhabitants! If we want to live together in harmony and improve our quality of life, we all have to participate in building a more sustainable city. To guaran-tee a cleaner future, we are working to build a sustainable city that can be a model for other European cities.
Brussels Region is pursuing great ambi-tions to reduce CO2 emissions by 30% by 2025, going beyond the European tar-get of 20% by 2020, despite the increase in its population. Brussels Region also adopted a goal to reach 12% of green electricity by 2025. According to Brugel, the energy market regulator, this entails a 10-fold expansion of green electricity pro-duction from the 2011 level.
Brussels also prioritizes the nZEB (nearly Zero Energy Building) definition as “very low or nearly zero energy consump-tion” by setting the passive standard to become obligatory for all new buildings as of 2015 within the framework of the EPB (Energy Performance of Buildings). “Pas-sive” refers to an energy standard that makes it possible to consume 10 times less for heating a residence and 5 times less for heating an office building. The Brussels experience shows that this pas-
Brussels: Sustainable City of Europe
Aquiris project: the Brussels-North wastewater treatment plant.
Source: Yvan Glavie.
9
sive standard is the most ambitious and most productive for energy efficiency.
The EPB 2015 standard is perfectly com-patible with the future nZEB 2021 stan-dard: it suffices to add a renewable energy production facility on site or nearby - it will no longer be necessary to modify the build-ing in order to make it more efficient. All buildings constructed in Brussels after 2015 will be ready for a 100% renew-able energies future. Public authorities will set the example even earlier. Since 2010, all new public buildings must comply with the passive standard.
Before imposing an energy standard within the framework of the EPB Directive, we encouraged owners to opt for this stan-dard: since 2007, inhabitants and profes-sionals have obtained very positive results, thanks to a premium on the investment for their passive building and due to the call for “Exemplary Building” projects. More than 520,000 m2 of exemplary buildings are either already being constructed or in the project phase in Brussels, of which around 55% are passive and 85% integrate renewable energies!
The PLAGE project (Local Energy Manage-ment Actions Plan) elicits public authorities to improve the energy performances of public buildings for the environment and to reduce costs – such efforts have also generated excellent results. Thanks to our private and public actions, our energy con-sumption per inhabitant dropped by 21% between 2004 and 2011!
The Employment Environment Alliance is designed to prepare the construction sector for dealing successfully with the environmental and energy stakes of tomorrow. While this is a policy initiative of the Brussels-Capital Region, in practice it is being organized with building professionals thanks to public funding. We also signed an agreement with the construction sector to respect the EPB 2015 requirement and we encourage sustainable construction with training courses and free technical expertise.
Sustainable construction allows for a less energy-consuming and more local economy to emerge, stimulating innova-tion and competitiveness. Companies see economic opportunities arise that make it possible to diversify their activities or win new customers, thus generating jobs that cannot be relocated and which are adapted to the profiles of low-skilled or unskilled job seekers in Brussels.
Existing buildings present a particu-lar challenge since substantial financial resources are required prior to retrofitting. We still need to learn how to enter into the virtuous circle where future energy bill sav-ings will make it possible to finance renova-tion works today.
Let us all commit to a greener future and we will go even farther together in making Brussels a sustainable city!
Evelyne HuytebroeckMinister of Energy, Environment and Urban Renovation, Brussels-Capital Region
10
BIPV: Welding Architecture with RenewablesThe Brussels Region strongly encourages photovoltaics in its ambitious “zero-energy” policy. Building-integrated photovoltaics (BIPV) can easily be embedded in an urban environment. In 2012, a platform was launched in Brussels by EDORA (the federation of renewable energy producers) to develop BIPV and explore suitable financial support.
One of the largest passive office building in Europe.Source: Architect CEPEZED, BIPV Issol company.
11
Building-integrated photovoltaics (BIPV)
Instead of fitting photovoltaic panels on existing buildings, photovoltaic modules
or cells are integrated directly into roof coverings or certain types of glazing, for example. Serving an architectural
function, these materials also serve to produce electricity.
In Brussels, BIPV is gradually making its appearance. Several large projects will see the light of day in 2013, including the future Brussels Environment building on the Tour&Taxis site:
Demonstrating the exemplary nature of public buildings, the Brussels Environ-ment public service will be transferred
to one of the largest passive office build-ing in Europe with a surface area of 16,250 m2. Its “eco-center” will be open to the public as a reception area compris-ing an information center, a conference area, an exhibition space and a restau-rant. The building will integrate BIPV into its curved structure with tailor-made black photo voltaic modules.
Surface area: 700m² of PV panels Production: 88,400 kWh/year
(= annual consumption of ± 30 households)
Particularity: 6 rows of black curved modules
12
Brussels: Exemplary “Zero Energy” BuildingsIn 2007, Brussels Environment launched the first “Exemplary Buildings” call for projects to show that you can renovate or construct a building with high energy performance and a reasonable budget. After five calls for projects between 2007-2012, 193 projects were chosen and subsidized for a total of €29 million. Overall, the buildings have a surface area of 522,000 m2, which represents 1 out of 5 building sites in Brussels. These buildings consume up to 10 times less energy and most of them use renewable energy, bringing them close to “zero energy” levels.
13
The Brussels Region supports the development of renewable energy:
I. Green certificates
The Region rewards efforts to cut CO2 emis-
sions by producing ‘green’ electricity through the green certificates system. A green certifi-cate is a sort of voucher that the producer receives for the green electricity produced which they can sell to an electricity supplier. This system ensures a reasonable return on investment time. For instance, there is a maximum of 7 years for solar panels. Cur-rently, a green certificate is worth €85.
II. Energy subsidies
Besides numerous subsidies for energy effi-ciency in buildings, there are also subsidies for
renewable energy, such as:
• Solar panels: up to €1/Wp (if new passive or low-energy renovated building)
• Solar thermal energy: up to €3,500/4 m² (+ € 200/m² extra)
• Heat pump: up to €4,750/home• Cogeneration: up to €4,500 x √power• Biomass, wind, etc.: 25% of the investment
(only for the tertiary sector)
For more info:www.bruxellesenvironnement.be www.bruxelles-renouvelable.be
Exemplary Building 2007, Uccle, Brussels. “Zero energy” building designed by architect Mr. G. Bedoret.
14
In 2012, 5 million peo-ple worldwide were em-ployed in the renewable energy sector. Of those, approximately 1.1 million jobs are to be found in Europe. According to the European Commission, this number has the po-tential to reach 3 million by 2020.
Data from the OECD shows that 90% of all CO2 emissions can be attributed to 10 global industries which account for a mere 16% of to-tal employment. In this scenario, the European Commission states that there is huge potential to develop green technolo-gies because they can create jobs in a variety of sectors and industries – from research and de-velopment, to manufac-turing and operations, to management, sales and administration.
Jobs
& E
mpl
oym
ent
15
Wave and tidal power energy, Orkney Islands, Scotland, Sept 2011. Source: Steve Morgan.
16
sunshine. However, Spain’s solar (20,000 employed) and wind (30,000 employed) industries are both well developed due to the country’s windy coastlines and pre-dominantly sunny climate.
The ongoing economic crisis has hit all sec-tors of the economy and renewable energy is no exception. Even so, Bloomberg New Energy Finance notes that Europe remains the largest investor in renewable energy assets with $101 billion in new investment
The Commission argues further that in the coming years there will be a shift towards demand in both high- and low-skilled labor in connection to climate adaptation measures and not only renewable energy. A simple application of the 2011 Energy Efficiency plan to increase the efficient use of energy in the 28 EU Member States (including Croatia, July 2013) is estimated to create up to 2 million new green jobs in Europe by 2020 – the potential for growth is enormous.
While predictions for the future are inter-esting, let us look at how the renewable energy market has developed in the past few years. In Europe, Germany remains the country with the highest number of people employed in green energy – 378,800 people – followed by France with 178,400, Italy with 121,850, and Spain with 80,000. In contrast, Cyprus employs just over 1,300 people in its green energy sector, while Luxembourg accommodates 900 green jobs, and in Malta only 100 people work in green energy.
Different renewable energy technologies – photovoltaic, wind, geothermal, solar and so on – employ different numbers of people depending on how much the industry is developed in a given Mem-ber State, which usually depends on the meteorological conditions and geo-graphical positioning of the country. For example, Sweden does not employ many people on its photovoltaic (450 employed) or solar thermal (300 employed) sectors due to the limited number of days with
Biomass: 273,000
Solar PV: 268,110
Solar Thermal: 49,845
Biogas: 52,810
Wind: 253,145
Source: EurObserv’ER, APEU.
Eu renewable
sector employment 2010
Jobs & Employment
Construction of solar park in Altötting/Oberkastl, Germany. Source: Windwärts Energie GmbH.
18
Assembling solar thermal tube collectors in Germany. Source: Ritter Solar/ESTIF.
Jobs & Employment
in 2012 (see graph on page 23). This is reflected in the jobs created in the sector with Germany adding some 34,000 jobs since 2009 and France 43,000 more. One of the champions of green energy job creation is Bulgaria, which added approxi-mately 7,000 jobs and increased its green employment by 187%.
These champions of job-creation show the positive message which the renewable energy industry wants you to hear – that despite the crisis, jobs have not been lost but created and the sector has been con-solidated despite the economic slowdown. However, one of the countries hit worst by the crisis – Spain – did have nearly 3,000 jobs less in 2012 than in 2009. In the same time period, another hard-hit Member State – Italy – nearly doubled its renewable energy employment, while Greece, perhaps the country that has suffered the most due to the crisis, tripled its green jobs between 2009 and 2012.
The disparities between the Member States of Europe can no longer be treated in a clear-cut East-West or North-South perspective. While some northern countries
are dominating the renewable energy sec-tor in absolute numbers in terms of employ-ment, southern states are expanding at rapid rates. Also, while western countries are bogged down by the economic crisis and have found that consolidating jobs is just as important as creating them, eastern states have expanded their green jobs by 100% or 200%.
There are a few policy aspects that need to be addressed in the EU when it comes to employment. While general job-creation is obviously preferable in times of crisis, a more tar-geted approach is required.
In particular, youth unemployment must be addressed, and if the Member States hope to obtain the best possible outcome from the economic crisis, they should focus on the creation of green jobs for people under 25 years old. That way, the youth of today will be able to actively participate in build-ing a more sustainable world.
Writer: Lubomir Mitev is energy | climate analyst at Revolve.
The disparities between the Member States of Europe can no longer be treated in a clear-cut East-West or North-South perspective.
20
ren
ewab
le E
nerg
y Jo
bs in
Eur
ope
(20
11
) So
urce
: Eur
Obs
erv’
ER 2
013.
PHoTo VoLTaICS BIomaSS WInd BIofuEL BIoGaS GEoTHERmaL SoLaR WaSTE
SmaLL HydRo PoWER ToTaL
austria 4,200 18,850 3,500 2,700 1,500 1,050 3,600 150 1,050 36,600
Belgium 10,370 3,000 3,600 2,000 350 650 550 430 100 21,050
Bulgaria 3,600 3,000 3,650 100 0 300 110 400 11,160
Cyrpus 230 50 500 50 0 0 500 0 1,330
Czech Republic 1,500 6,200 350 1,900 500 900 500 50 300 12,200
denmark 880 4,500 25,500 1,500 200 100 450 2,500 50 35,680
Estonia 50 2,600 650 50 50 1,000 50 50 4,500
finland 50 22,450 6,400 1,400 50 3,100 70 250 400 34,170
france 45,500 20,000 62,750 29,900 2,350 3,500 8,100 3,800 2,500 178,400
Germany 48,300 101,100 130,900 23,200 52,900 14,200 14,100 6,800 7,300 378,800
Greece 22,000 2,750 2,500 550 100 100 3,700 550 32,250
Hungary 4,750 4,600 800 1,200 100 1,150 250 50 400 13,300
Ireland 50 600 2,000 700 100 100 250 50 100 3,950
Italy 55,000 10,600 30,000 8,400 4,000 6,150 4,500 950 2,250 121,850
Latvia 20 5,200 50 300 200 50 50 50 350 6,300
Lithuania 50 2,950 250 300 50 100 50 150 3,900
Luxembourg 50 50 350 200 50 50 50 50 50 900
malta 50 0 0 0 0 0 50 0 100
netherlands 2,500 3,150 2,800 2,500 1,900 2,000 1,500 4,500 200 21,050
Poland 100 21,800 1,600 6,450 500 1,000 2,150 50 950 34,600
Portugal 3,500 7,800 4,900 1,600 100 200 1,500 300 1,750 21,650
Romania 50 11,700 4,000 1,400 300 100 200 400 18,150
Slovakia 3,000 2,350 0 1,100 50 100 250 50 300 7,200
Slovenia 800 1,550 0 150 350 100 150 50 450 3,600
Spain 25,000 14,400 30,000 10,200 2,000 600 5,000 1,300 1,500 80,000
Sweden 450 25,000 8,000 3,800 50 13,000 300 2,900 1,500 55,000
united Kingdom 10,000 5,200 17,750 7,500 3,200 1,700 700 1,720 1,000 48,770
ToTaL 311,930 274,150 270,250 109,250 70,950 51,300 48,680 26,000 24,050 1,186,460
Jobs & Employment
PHoTo VoLTaICS BIomaSS WInd BIofuEL BIoGaS GEoTHERmaL SoLaR WaSTE
SmaLL HydRo PoWER ToTaL
austria 4,200 18,850 3,500 2,700 1,500 1,050 3,600 150 1,050 36,600
Belgium 10,370 3,000 3,600 2,000 350 650 550 430 100 21,050
Bulgaria 3,600 3,000 3,650 100 0 300 110 400 11,160
Cyrpus 230 50 500 50 0 0 500 0 1,330
Czech Republic 1,500 6,200 350 1,900 500 900 500 50 300 12,200
denmark 880 4,500 25,500 1,500 200 100 450 2,500 50 35,680
Estonia 50 2,600 650 50 50 1,000 50 50 4,500
finland 50 22,450 6,400 1,400 50 3,100 70 250 400 34,170
france 45,500 20,000 62,750 29,900 2,350 3,500 8,100 3,800 2,500 178,400
Germany 48,300 101,100 130,900 23,200 52,900 14,200 14,100 6,800 7,300 378,800
Greece 22,000 2,750 2,500 550 100 100 3,700 550 32,250
Hungary 4,750 4,600 800 1,200 100 1,150 250 50 400 13,300
Ireland 50 600 2,000 700 100 100 250 50 100 3,950
Italy 55,000 10,600 30,000 8,400 4,000 6,150 4,500 950 2,250 121,850
Latvia 20 5,200 50 300 200 50 50 50 350 6,300
Lithuania 50 2,950 250 300 50 100 50 150 3,900
Luxembourg 50 50 350 200 50 50 50 50 50 900
malta 50 0 0 0 0 0 50 0 100
netherlands 2,500 3,150 2,800 2,500 1,900 2,000 1,500 4,500 200 21,050
Poland 100 21,800 1,600 6,450 500 1,000 2,150 50 950 34,600
Portugal 3,500 7,800 4,900 1,600 100 200 1,500 300 1,750 21,650
Romania 50 11,700 4,000 1,400 300 100 200 400 18,150
Slovakia 3,000 2,350 0 1,100 50 100 250 50 300 7,200
Slovenia 800 1,550 0 150 350 100 150 50 450 3,600
Spain 25,000 14,400 30,000 10,200 2,000 600 5,000 1,300 1,500 80,000
Sweden 450 25,000 8,000 3,800 50 13,000 300 2,900 1,500 55,000
united Kingdom 10,000 5,200 17,750 7,500 3,200 1,700 700 1,720 1,000 48,770
ToTaL 311,930 274,150 270,250 109,250 70,950 51,300 48,680 26,000 24,050 1,186,460
22
Estimated jobs in renewable energy worldwide, by industry
TECHnoLoGIES: Glo
bal
Chi
na
Ind
ia
Bra
zil
uS
a
Eu
Ger
man
y
Sp
ain
oth
ers
Biomass 750 266 58 --- 152 273 51 14 2
Biofuels 1,500 --- --- 889 47-160 151 23 2 194
Biogas 230 90 85 --- --- 53 51 1.4 ---
Geothermal 90 --- --- --- 10 53 14 0.6 ---
Hydropower (Small) 40 --- 12 --- 8 16 7 1.6 1
Solar PV 820 300 112 --- 82 268 111 28 60
GSP 40 --- --- --- 9 --- 2 24 ---
Solar Heating/Cooling
900 800 41 --- 9 50 12 10 1
Wind Power 670 150 42 14 75 253 101 55 33
ToTaL 5,000 1,606 350 889 392-505 1,117 372 137 291
(in thousand of jobs)
Source: Renewables 2012 Global Status Report, REN21 .
23
new Investment in renewable Energy in Europe($ billions)
18.6
20
04
27.7
20
05
37.4
20
06
57.8
20
07
67.1
20
08
67.9
20
09
92.3
20
10
101
20
11
Source: Bloomberg New Energy Finance (BNEF).
24
EUROSOLARThe European Associationfor Renewable Energy
InternationalRenewable Energy StorageConference
Online registration and further information: www.energystorageconference.org
8th International RenewableEnergy Storage Conference and
Exhibition (IRES 2013)
November 18 –20, 2013Berliner Congress Center, Berlin/Germany
In co-operation with:
Lead partners:
Media partners:
Registration
is now open!
Anzeige 116x165_Layout 1 16.05.13 14:31 Seite 1
25
EUROSOLARThe European Associationfor Renewable Energy
InternationalRenewable Energy StorageConference
Online registration and further information: www.energystorageconference.org
8th International RenewableEnergy Storage Conference and
Exhibition (IRES 2013)
November 18 –20, 2013Berliner Congress Center, Berlin/Germany
In co-operation with:
Lead partners:
Media partners:
Registration
is now open!
Anzeige 116x165_Layout 1 16.05.13 14:31 Seite 1
26
How are you and the European Union involved in the battle against climate change?
It’s quite simple: we base ourselves and our work on the scientific con-sensus – and that demands urgent action to prevent climate change reaching dangerous levels.
We have put in place a series of pol-icy measures like our cap-and-trade system, the emissions trading system, and we improved energy efficiency, we increased renewable energy, restricted fluorinated gases, and set standards for appliances, cars, building codes, and so on.
We are also making sure that climate change is not forgotten when other policies are decided – for example in the agricul-tural sector. EU heads of states have proven that they will continue the good work, when they agreed that 20% of the next EU budget should be spent on projects and policies to reduce CO2
emissions in Europe.
As a result, in the European Union we have succeeded in cutting our greenhouse gas emissions by almost 18% from 1990 levels while at the same time increasing our GDP
Q&a:Connie Hedegaard EU Commissioner for Climate Action
For Europe, cheap is not the answer; quality and innovation are.
Connie Hedegaard. Source: European Commision.
27
by 48%. Considering that we promised to reduce by 20% in 2020, this is a good bal-ance, don’t you think?
And because we see that our policies and targets work, we are now in the process of considering targets for 2030. Not just for the climate – this means going in the right direction for our future economy and point-ing investors in the right direction.
How can the low-carbon economy ben-efit the individual citizen?
Our transition to a low-carbon economy will affect many aspects of life for everybody. Think less traffic jams resulting in better air quality and more public transport and bikes, which again will lead to lower health costs because people will be healthier.
It also means saving the amount of
money we pay every year for oil, gas and coal imports: we are talking about €573 billion last year that we paid to someone outside the EU, instead of spending it on our own economy. In the same year, our combined trade deficit in the 27 EU member states was €150 billion. If instead we would focus on increasing energy efficiency and renewable energy sources in the EU, this would make a big difference for each citizen, and espe-
cially for their energy bills.
Climate change is linked to extreme weather events such as heat waves and floods which we can already notice in some European regions. They pose a direct risk to the health and safety of people with the very young, the elderly, the disabled and low-income house-holds particularly vulnerable. If the fight against climate change and the transition to a low-carbon society are successful, people will see the difference!
How important are green jobs to the EU’s climate targets?
When it comes to climate targets, green jobs are a symbol of the transformation of our society to a low-carbon society. This will affect many sectors of our lives, and
the working environment is just part of that.
The green economy has also been identified by the European Commission as one of the three main sectors that can generate a substantial number of
new jobs, together with ICT and health.
These are very important findings at a time when more than 25 million men and women across the EU are without a job.
In Europe, more than 300,000 new jobs were created in the renewables sector in just five years; and it is estimated that meeting the EU’s 2020 climate and energy goals would result in another 1.5 million new jobs.
If EU leaders hesitate to take action on climate change, they will be sabotaging their own economy’s prospects for sustainable recovery.
28
pro
duct
ion
& c
onsu
mpt
ion The development, investment and in-
stallation of renewable technology promises to bring many benefits to the European Union: reduced dependence on foreign supplies of fuel, diversifica-tion of energy production sources, job-creation and reduction of greenhouse gas emissions. However, the ongoing economic crisis in Europe was thought to have slammed the breaks on the re-newable project. And yet, while oil, gas, coal and nuclear are still the preferred fuels for the EU energy sector, renewa-bles are mounting an attack on that dominant position.
There is a misconception when it comes to production and consumption data in the EU. The 2020 target is for 20% of Europe’s energy consumption to come from renewable sources. In 2010, the Member States were well underway to achieve this with a consumption of 12.5% of total energy coming from re-newables. Simultaneously, 20% of pri-mary energy production was renewable in the same year. The confusion is due to how the UN defines production: “the quantity of fuels which are extracted or produced”. Some examples will help shed light on the world of energy pro-duction and consumption:
29
The largest coastal wind farm in Europe, installed capacity of 600 MW, Fantanele-Cogealac, Romania. Source: CEZ.
30
European renewable energies are grow-ing and now contribute a fifth of total EU energy production. Of the total primary energy produced in the 27 Member States in 2010, 28% came from nuclear power, 20% was renewable energy, 19% came from solid fuels, and another 19% from
natural gas, while crude oil accounted for only 12%. This data concerns the produc-tion of primary fuels, which means that out of the total energy extracted by the EU in 2010, 19% was in the form of natural gas. But the EU imports most of its gas, with several Member States relying 100% on
the Old Guard
Hydropower plant in Obermaubach, Germany. Source: RWE.
The general trend in the last 10 years is a growing transition to a low-carbon economy.
imports from outside Europe. Therefore, the consumption statistics account for both the fuels produced within the EU and the imported ones, giving a more realistic depiction of the situation.
The data shows that the ‘old guard’ of fos-sil fuels and nuclear energy still dominate Europe’s energy mix, but the general trend in the last 10 years is a growing transition to a low-carbon economy. One sign of this is that the total primary energy production has decreased by 110 million tons of oil equivalent (Mtoe) in the Member States between 2000 and 2010 – slightly less than Germany’s total production for a year. The biggest decline is accounted for by crude oil (-43%), while natural gas (-25%) and solid fuels (-24%) also experienced a drop in the production of primary energy. This shows the onset problems in Europe – reserves of conventional energy prod-ucts have dried up and the Member States
have had to replace them with imported fuel from outside the EU. Nuclear power has held its ground with a 3% decrease, which is expected to change in the com-ing decade when Germany will decom-mission all of its power plants and other countries are also expected to shut-down several stations.
The problem is highlighted by an ever-increasing dependence on foreign sup-plied energy products. In 2010, the total amount of primary energy produced in the EU-27 was 831 Mtoe and the total gross amount of consumed energy was 1,759 Mtoe. The difference of 927 Mtoe is the EU’s imports of energy products and is the amount referred to by the term ‘import dependency’. It is equal to approximately 53% of total consumption, which means that the Member States rely on foreign countries for more than half of their energy resources.
production & consumption
the Wind of changeThere have been many changes to the energy landscape on the European con-tinent since 2000. The lack of a single European market for electricity has made it difficult for the Member States to connect their energy infrastructure and different standards still prevail. In terms of produc-tion and consumption, the EU-27 vary greatly in the resources available to them.
Still, several examples will highlight recent developments in the EU energy sector.
The most shocking case is that of the United Kingdom which saw a decrease of its output of energy by more than 50% in the period between 2000 and 2010, but still remains Europe’s biggest energy producer. This drop is explained by the UK
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Department of Energy & Climate Change which reports that 2000 was a record year for the country in terms of energy produc-tion, after which many fields of oil and gas were exhausted. It now produces slightly more primary energy than the continent’s second largest producer – Germany.
More significantly, the UK has moved from being a net exporter to a net importer of primary energy, making it reliant on other countries for its energy security, while the only country in the European Union which remains a net exporter of primary energy is Denmark. But in terms of consumption,
the UK has not changed so dramatically – its gross inland consumption fell by 8% between 2000 and 2010 to a level sig-nificantly lower than that of Germany and France. This is a move in the right direction as less consumption means less imports required to keep the economy running.
Renewable energy has been experiencing a constant increase in production since the beginning of the 21st century. In the EU-27, renewables production increased by 72% in the first decade of the new millennium – an average cumulative increase of 5.6% per year. The most important source of
renewables is biomass and waste, which account for a little over 67% of primary renewable energy production, followed by hydropower (19%) and wind (8%).
There have been protests against the use of biomass, especially wood, for large-scale energy production due to the disap-pearance of wooded land and forests. In fact, some reports indicate that there is a net increase in CO2
emissions due to the reduced number of trees which can take in the greenhouse gas, than from the use of wood as a renewable source of energy. It is expected that subsidies for this renew-
able sector will be sig-nificantly reduced and biomass will remain only on a small scale.
A closer look at the 27 Member States shows that Germany produced
the biggest amount of renewable energy in 2010, followed by France and Sweden. Germany’s renewable energy production accounted for only 25% of the country’s total. In other cases, renewables production made up 99% of the total primary energy produced in Latvia, 97% in Portugal, and 92% in Cyprus. Yet, the renewable energy consumed in the same year is 32% in Latvia, 25% in Portugal and 5% in Cyprus. This difference is because of the high lev-els of energy imports in these states.
Renewable energy has been experiencing a constant increase in production since the beginning of the 21st century.
production & consumption
Smøla wind farm, Norway. Source: Statkraft.
34
Geothermal Power Station, Iceland. Source: Rafn Sigurbjörnsson.
Renewable energy comes second to nuclear power in primary energy production in Europe, making it one of the most impor-tant resources for the continent’s future. The past decade has shown the EU’s weak spot through two disputes between Russia and Ukraine over natural gas deliveries
which led to shortages and cuts in supply to European countries in 2006 and again in 2009. The former is the EU’s biggest natu-ral gas supplier and the latter has major pipeline routes to Europe on its territory. The two Gas Crises highlighted the vulner-ability of the Member States to disruptions in obtaining their energy supplies and have spurred legislation in favor of renewables to decrease this vulnerability.
The Internal Energy Market, if implemented, will threaten Russia’s dominant position in the internal market by creating conditions for greater competition and diversification of supply. The adoption of legal provisions for the entrance of a range of suppliers from third countries is the first step towards diversification and reduction of Russian supremacy on the EU energy market, and subsequently in foreign relations. This threatens EU-Russia relations by creating
supplier uncertainty about their investments in production and whether the export of resources will be repaid by importing coun-tries. It highlights that changes in the EU energy policy has strong repercussions for its economic policy as well.
An increase in renewable energy production will have similar effects. Domestically produced electricity without less depen-dence on imported fuel will decrease the need to import gas and oil. This will change the EU’s
relationship with its current supplier coun-tries as demand for fossil fuels dries up and states such as Russia and Saudi Arabia no longer have a say in European foreign rela-tions. Geo-politically, this will cause a big shift in international relations – a shift away from the status quo established during the oil crises of the 1970s. The newly created European External Action Service will have to be ready to deal with such shifts.
Writer: Lubomir Mitev is energy | climate analyst at Revolve.
Renewable energy comes second to nuclear power in primary energy production in Europe.
production & consumption
renewable politics
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Member States 2005 2010 2020
auSTRIa 23.3% 30.1% 34%
BELGIum 2.2% 5.1% 13%
BuLGaRIa 9.4% 13.8% 16%
CyPRuS 2.9% 4.8% 13%
CZECH REPuBLIC 6.1% 9.2% 20
dEnmaRK 17.0% 22.2% 30%
ESTonIa 18.0% 24.3% 25%
fInLand 28.5% 32.2% 38%
fRanCE 10.3% 12.9% 23%
GERmany 5.8% 11% 18%
GREECE 6.9% 9.2% 18%
HunGaRy 4.3% 8.7% 13%
IRELand 7.2% 14.8% 40%
ITaLy 5.2% 10.1% 17%
LaTVIa 34.9% 32.6% 42%
Member States 2005 2010 2020
LITHuanIa 15.0% 19.7% 23%
LuxEmBouRG 0.9% 2.8% 11%
maLTa 0.0% 0.4% 10%
nETHERLandS 2.4% 3.8% 14%
PoLand 7.2% 9.4% 15%
PoRTuGaL 20.5% 24.6% 31%
RomanIa 17.8% 23.4% 24%
SLoVaKIa 6.7% 9.8% 14%
SLoVEnIa 16.0% 19.8% 25%
SPaIn 8.7% 13.8% 20%
SWEdEn 39.8% 47.9% 49%
unITEd KInGdom 1.3% 3.2% 15%
Eu-27 8.5% 12.5% 20%
+ CRoaTIa ---- 14.6% 13%
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Member States 2005 2010 2020
LITHuanIa 15.0% 19.7% 23%
LuxEmBouRG 0.9% 2.8% 11%
maLTa 0.0% 0.4% 10%
nETHERLandS 2.4% 3.8% 14%
PoLand 7.2% 9.4% 15%
PoRTuGaL 20.5% 24.6% 31%
RomanIa 17.8% 23.4% 24%
SLoVaKIa 6.7% 9.8% 14%
SLoVEnIa 16.0% 19.8% 25%
SPaIn 8.7% 13.8% 20%
SWEdEn 39.8% 47.9% 49%
unITEd KInGdom 1.3% 3.2% 15%
Eu-27 8.5% 12.5% 20%
+ CRoaTIa ---- 14.6% 13%
production & consumption
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Europe’s electricity demand is ex-pected to double or triple by 2050 while the European Union (EU) has committed to reduce its greenhouse gas emissions by 85-90%. To real-ize a single energy market by 2014, Europe needs to organize and ra-tionalize its various energy trans-mission systems into an integrated transnational network. This new system should allow an efficient use of electricity obtained from various renewable sources and regulated through a grid system consisting of mini-, smart- and super-grids.
Mini-grids can appear in a great variety of systems including single localities or even single isolated buildings that could potentially make consumers into producers as well. Smart-grids will play a cru-cial role in improving the energy efficiency and in reducing carbon emissions of towns and cities. On the pan-European level, the super-grid concept can upgrade existing grids making them more homo-genous, thus enabling and balanc-ing the distribution of electricity to meet demand across Europe.m
ini,
smar
t &
sup
er G
rids
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Subsea cables for the Meerwind farm project, connecting turbines to the land, JDR Cables Hartepool, UK. Source: Steve Morgan.
40
Mini-grids are a set of electricity gen-erators and energy storage systems, inter-connected to a distribution network that supplies the entire electricity demand of a localized group of customers. They can operate independently without being con-nected to a centralized grid. A mini-grid can be designed to connect with a central grid on regional or national levels and effectively operate as part of it; or it can be disconnected in case of a failure in the central grid that could affect power quality.
Mini-grids can also operate autonomously in remote locations until new infrastructure enables a connection to the central grid. This option could be particularly suited for developing countries which lack infra-
structures or a well-connected electric-ity network. Small villages in rural areas that are rich in solar, small hydro, wind or biomass resources could gain energy autonomy and eventually could feed power into smart-grids to generate income as well as electricity.
Mini-grids are well-suited for providing electrification for rural areas as well as sin-gle buildings. A characteristic of mini-grids is the variety in which they appear. Differ-ent countries have different standards for implementation and for the technologies used. A small village could rely on a combi-nation of solar panels, micro turbines, fuel cells, energy efficiency and information/communication technology to manage electricity and make sure the lights stay on.
The same could be applied on an even smaller scale with single houses
with solar panels on their roofs, for example, that can use the energy for their own electricity and sell excess energy into the larger rural network. A farm can transform part of its agri-cultural yields into biofuels or biomass that can also become energy to be used for its own
needs or become part of the mini-grid network. Individual local
consumers can become producers and sell energy units into the growing
grid networks.
mini-Grids
the
“Energy Internet”
In The Third Industrial Revolution, Jeremy Rifkin claims it is time to establish an “energy
internet” based on renewable energy that will follow the same development path as the Inter-net which caused a revolution in communication by connecting people from all over the world, enabling them to share information and knowl-edge at the click of a button. In the same way,
millions of individual small-scale energy producers could share their electricity
in a common network and store it for future use.
“Our network infrastructure needs to undergo an ambitious program of modernization, including a number
of elements for the integration of renewables.” - Günther Oettinger, EU Energy Commissioner
mini, smart, & super Grids
Air collectors for cooling installation in Freiburg, Germany. Source: Fraunhofer ISE/ESTIF.
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For transmission and distribution of energy on a local and a European level to occur efficiently, smart-grids are needed. According to the U.S. Department of Energy, a smart-grid “generally refers to a class of tech-nology people are using to bring utility electricity delivery systems into the 21st century, using computer-based remote control and automa-tion”. The aim of smart-grid techno-logy is to improve the production and distribution of electricity on the levels of efficiency, reliability, sustainability and economics.
Smart-grids have benefits including improved inter-connections between power networks, more visibility and control over energy utilization and the possibility to manage renewable energy sources, thus permitting a more efficient use of the latter and contributing to shift to a more low-carbon society and energy-consuming society. An example for advanced types of control for electricity grids could be smart electricity meters that show real-time use and costs, allowing big energy users to switch off or reduce their consumption when given a signal from the grid operator, and avoid high power prices.
Despite obvious advantages, smart-grid systems are criticized and face opposi-tion over concerns related to consumer
privacy (use of data by law enforcement), complexity of tax systems that could be less clear thus allowing the supplier to take advantage of the costumer. There are also concerns among utilities that the effective-ness of the smart-grid could be reduced by apathy and lack of engagement on the costumer’s side. Except for evoking envi-ronmental concerns, utilities are unable to establish closer relations with costumers and better manage peak energy demand.
On the pan-European level, the EU’s ambi-tious plan to provide smart meters to 80% of households in 2020 is not proceeding
HVDC cable. Source: Prysmian /FOSG.
smart-Grids
Promoted by the Strategic Energy Tech-nologies Information System (SETIS) of the European Commission, the Smart Cities initiative aims to reduce carbon emissions by 40% by 2020 and includes 25 large cit-ies ( > 500,000 inhabitants) and 5 larger cities ( > 1,000,000) with the goal of mak-ing living standards more sustainable in growing urban areas across Europe.
According to a 2011 Greenpeace report, “Battle of the Grids”, Europe should support smart-grids by developing technologies and by optimizing existing infrastructure over the construction of new power lines by using “dynamic power line rating” or by replacing existing lines with new trans-mission technologies. Smart-grid systems play a crucial role in the development and functioning of the pan-European electricity network and cannot be ignored if Europe wants to reach high results in obtaining electricity from renewable sources and decreasing its dependence on fossil fuels in the next decades.
as well as expected. In 2006, Italy was the first to complete a national smart meter with utility ENEL that reduced non-technical losses for its 30 million custom-ers; the Scandinavian countries currently lead the way and by 2016 targets could be achieved by Denmark, Norway and Finland, while Sweden already achieved theirs in 2010. However, other European countries are experiencing more difficulties in adopt-ing smart metering programs.
Recent examples of diffusing smart-grids include: the United Kingdom’s plans to begin installing smart meters in 2014, with the intention to cover all households by 2019; in Italy, NEC Italia (a subsidiary of NEC Europe) and Acea Spa (a utility serv-ing the Rome metropolitan area) agreed in December 2012 to develop innovative lithium-ion battery storage systems to be implemented in Acea’s primary and sec-ondary power sub-stations. NEC will pro-vide two energy storage systems to support Acea’s smart-grid project.
mini, smart, & super Grids
the super-GridThe pan-European “Super-Grid” has tre-mendous potential for inter-connecting Europe to meet growing energy demand and for connecting Europe with neighboring regions to ensure energy security. Electricity grids will no longer be confined to national borders. Energy from renewable sources will be transmitted via high voltage direct
current (HVDC) cables over land and under water. From geothermal energy in Iceland, to onshore wind power in Ireland to offshore wind power in the UK to wave energy in Scotland to solar energy in Spain, even from the sun collected in North Africa via cables under the Mediterranean Sea… Europe is becoming intertwined by a massive grid.
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The largest super-grid projects are the offshore wind farms in the North Seas, partially to avoid the “Not-In-My-Backyard” (NIMBY) opposition but mainly because winds are less intermittent out at sea providing stronger and more continuous energy. Southern Europe’s solar energy potential is also tremendous. Further south, the German-initiative DESERTEC aims to collect solar energy from North Africa and export 80% of that energy to Europe. The French-project MEDGRID aims to create a Euro-Mediterranean electricity network that would generate 20 GW by 2020-2025; 5 GW of which would purportedly go to Europe. Harnessing wind and solar power in the North Seas and across the
Mediterranean can help wean Europe and its neighbors off of fossil fuel dependence.
The advantage of using HVDC over alter-nating current (AC) to establish the super-smart-grid is the higher cost effectiveness of HVDC over long distances. Linking European national grids with one another through HVDC cables has become eco-nomically feasible and is being encouraged by policy-makers and industries to make the ‘green’ energy transition while deliver-ing electricity efficiently to meet demand. Opening the European electricity market to competition can reduce prices and favor low-emissions energy sources. Consumers will benefit from less expensive electricity from diverse renewable energy sources from different countries.
HDVC cables are not just about con-necting islands and continents to
Europe. In Germany, HVDC lines will bring electricity to the industrial south which will face power depletions after nuclear power plants are closed. Germany aspires to generate 35% of its total electricity from renewable energy sources by 2020.
Other regional electricity hubs will emerge in geographic
areas that can easily transmit energy, such as in Spain, Italy and
Ireland, where technology, location and resources in renewables can help
boost GDP and create jobs. The ultimate Supergrid concept map. Source: FOSG.
mini, smart, & super Grids
North Sea offshore wind farm. Source: FOSG.
The Supergrid is “a pan-European transmission network facilitating the integration of large-scale renewable energy and the balancing and transportation of electricity, with the aim of improving the European market.” - Friends of the Supergrid (FOSG)
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Ireland’s “Energy Bridge”
Ireland’s 2020 target is to increase its cur-rent generation of electricity from 18% to 40% of renewables. The UK relies on only 8% and will not meet its 30% target for 2020. The “energy bridge” provides an ideal opportunity for Ire-land to become an energy exporter with
potential returns of €2.5 billion per year by 2020. The “energy bridge” will capture
onshore and offshore wind power from Ire-land, transport it under the Irish Sea via HVDC
cables, and transmit it to the UK via a grid connection. Phase one of the “energy bridge” will deliver 1,200 MW of onshore wind energy by 2017, potentially 5 GW by 2020. When British energy demand is met, then surplus electricity could go on to mainland Europe.
success of the “Super-Grid” project requires stronger political support, a stable regulatory framework and interna-tional coordination.
Just as the internet connects individuals via networks, grids will give consumers the ability to become producers, sharing and selling energy back to suppliers. Mini-grid technologies will make rural areas more self-sufficient. Smart-grids will make urban areas more integrated. Super-grids will inter-connect countries and continents.
The potential is tremendous for more investments, more returns, more jobs, greener growth and more sustainable lives. While fossils fuels, natural resources, and nuclear energy will continue to be part of the energy mix, the real energy transition is about increasing our reliance on renewable energies to achieve both economic and environmental benefits.
Writer: Edoardo De Silva is energy assistant at Revolve.
WWF’s Seize Your Power campaigncalls on investors globally to act on climate change by committing $40 billion to new investments in renewable energy within one year.
Join us in calling on investors to put their money where our future is. wwf.eu/seizeyourpower
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icolas Loran
