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Keynote from Brussels
What the ‘Clean Energy For All Europeans’ Package means for Solar & Storage in the EU
Michael SchmelaExecutive Advisor, SolarPower Europe
European PV & Energy Storage Market BriefingFrankfurt, 16 February 2017
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Power Generation EU – Status 2016
12.490
6.083
1.0643.115
657 154 243
-486-2.256 -2.917
-7.510
New capacity installed Capacity decommissioned
Source: SolarPower Europe, Wind Europe
Installed and Decommissioned Capacity in 2016 in the EU [MW]
Phase Out of Inflexible Power Generation Capacity Continues in EU
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For Last 10 years RES Share of Capacity Additions Every Year >50%; in 2016 reaching 86% Record
Power Generation EU – History 2000-2016
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Today The Bulk Of Electricity In The EU Comes From Inflexible And Polluting Energy Sources
Power Generation EU – 2015-2016
Source: Agora Energiewende
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Renewable Energy Share EU – Status & Targets
Several EU Member States Likely To Miss EU 2020 RES Targets& Targets
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Solar Power Europe – Status 2016
Global Solar Power Demand Grows Nearly 50% in 2016, Europe Drops By 20%
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Solar Power Europe – Forecast 2016-2020
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Energy Storage Global – Positive Outlook Everywhere
Sweden has announced a government subsidy that will cover 60% of the cost for installing a residential energy storage system, up to a maximum of 50,000 kroner (US$5,400)
Sources: IHS, EuPD, PV Magazine
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Clean Energy For All Europeans – The EC’s Proposal
Demonstrating global leadership
in renewables
Delivering a fair deal for
consumers
Putting energy efficiency first
New Electricity Market Design
Energy Union Governance
2030 2050 50 % of electricity to be come from RES Electricity completely carbon free
Source: European Commission
2
Our vision
This package will drive the almost completedecarbonisation of Europe’s power system through
the next investment cycle by setting out:
A reliable governance to steer investments in renewableenergy and in flexible assets and to organise the orderly
retreat of inflexible polluting plants
Market rules which allow for a market-based energytransition and which enable the system to harness
renewable energies when they are abundantly available
A modernised framework for renewable energieswhich supports the uptake of new business models and
puts prosumers at the core of the energy transition
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1EU Governance for Energy and Climate Policies
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4
Our objectives
Europe to raise its renewableenergy ambition and to
fulfill its 2020 and 2030 RES commitments in a timelyand predictable manner
Governance to serve as robust energy transition
planning
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5
The 2030 RES target should be raised to at least 35%
Source: SolarPower Europe calculations Data based on Commission’s projections performed in 2013 and REF16 scenario
0 20 40 60 80 100 120
2010 - 2020 (REF16: RES 20% - EE 20%)
2020 - 2030 (RES 35% - EE 33%)
2020 - 2030 (RES 30% - EE 30%)
2020 - 2030 (RES 27% - EE 30%)
2020 - 2030 (REF16: w/o direct incentives)
A 35% RES target would maintain our level of ambition
RES added to gross final energy consumption (mtoe) under different scenarios
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Make governance a real energy transition planning tool
The new planning and reporting system should clearly and transparently show how Europe moves into a renewable-based, flexible energy system
Complement short and medium term planning with long termplanning (with 2050 time horizon) for all energy & climate policy areas
Introduce obligation for Member States to develop flexibilityroadmaps:
•For the organised retreat of inflexible and pollutinggeneration
•For the adaptation of existing markets and the creation of local flexibility markets
•For the deployment of all flexibility assets and the adaptation of system operation rules to ensure the system is able to absorbRES when it is abundantly available
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2EU Market Design
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A momentum to set a fair market design for solar
No consideration of externalities in
electricity pricesImportant inflexible baseload capacity
Persistance of market and system operation
rules designed for national centralised electricity system
Lack of development of markets for new solution
providers in system management
Opacity of market and system
management rules
Currently no level playing field
In order to achieve our vision of a fair market-based integration of solar, we need a market design ensuring:
More flexibility
Effective market rules
More transparency
Right signals towards a low-carbon energy system15
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Our priorities
Flexibility leverages and access to markets
Priority dispatch & priorityaccess
Capacity remuneration mechanisms
Solar development and network operators
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Network codes and tariffs should be fit for distributed generation
The evolution towards a decentralized energy system shouldbe incentivized as it enables the direct involvement of
citizens in the energy transition
Grid tariffs should not discriminate againstprosumers
> Self-consumed electricity should not be exposed to gridcharges>Any evolution of grid tariffs should support the development of self-consumption and self-generation
Ensure a non-biased elaboration process for network codes:
Possible measures to explore with other stakeholders:- Ability for ACER or a third party (Ecodesign process) to be in charge of drafting the network codes- Drafting Working group chaired by an independant party- Dedicated support for stakeholders participating in the process
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3Recast Renewable Energy Directive
2718
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Our objectives
Europe to raise its renewableenergy ambition for the year 2030
(as in governance)
Directive to provide an EU framework for ambitious, stable and clear
national RES support measures
Directive to minimise RES projectdevelopment costs
Directive to recognize potential of RES e-mobility
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The RES Directive should frame national RES support measures…
The Directive should provide EU principles and rules for national support measures
Maintain and strengthen investment protection rules:•No support revision negatively affecting investment conditions and economics; compensation when business plans are impacted by indirect changes (e.g. reforms of electricity tariff structure, increasedcurtailment, etc)
•Alignment of support schemes with EU Treaties to be checked prior to their entry into force
Maintain obligation on MSs to issue comprehensive 3-year plans for support to RES
Maintain exemption for small projects from obtaining support via competitive bidding and in the form of market-based premiums; require MSs to use stable, long-term remuneration schemes
Strengthen today’s MSs right to hold technology specific tenders; encourage mechanisms to increase project realisation
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… while encouraging the uptake of new business models
The Directive should provide an EU framework for self-consumption and Power Purchase Agreements
Require MSs to lift regulatory barriers to the uptake of individual and collective self-consumption and PPA business models, especially where:• Self-consumers are tenants and not landlords• RES producer, plant operator and self-consumer(s) do not coincide• Self-consumers need a second suppy contract for residual power demand• Not all building occupiers want to self-consume• Self-consumers are located in different premises/sites• PPAs do not entail the physical transfer of the electricity from the producer to the
consumer
Require MSs to ensure the economic attractiveness of self-consumption by:● Self-consumed electricity shall not be exposed to taxes, fees or charges ● Capacity-based schemes should ensure a step-wise transition, guaranteeing fair
returns for self-consumption projects and protecting already made investments
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A%market%for%selling%and%procuring%flexibility%services%must%be%developed,%both%at%transmission%and%distribution%levels5
An%EU;wide%definition%should%acknowledge%storage%as%a%new%type%of%asset%on%the%grid%that%can%provide%multiple%services1
Consumers%need%to%be%able%to%own%and%operate%storage%devices%and%stored%electricity%must%be%free%of%specific%taxes%or%charges2
An%appropriate%reform%of%the%intraday%markets%is%crucial%for%enabling%large;scale%solar%plants%to%better%take%on%balancing%responsibilities
4
The%potential%of%new%business%models%for%solar%and%storage%and%the%bundling%of%various%revenue%streams%must%be%unlocked3
Solar & Storage Policy Asks (I|II)
22
27
Active%consumers%should%be%remunerated%fairly8
Distribution%grid%tariffs%should%incentivize%consumers%to%smarten%distributed%solar%PV%by%ensuring%a%balanced%approach%between%volumetric%and%capacity;based%grid%tariffs.%
9
Tariffs%must%provide%consumers%and%service%providers%with%price%signals%to%be%able%to%act%upon%market%developments10
A%clear%basis%regarding%rules%and%circumstances%under%which%TSOs%and%DSOs%may%operate%storage%should%be%developed6
The%exchange%of%electricity%on%a%community%scale%must%be%possible%for%prosumers7
Solar & Storage Policy Asks (II|II)
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6 December 2017 | BMW World, Munich, Germany
! This new event will unite the key solar and energy storage stakeholders from acrossEurope.
! It will cover the full spectrum of issues impacting both industries from a policy, marketand technological perspective.
! Delegates can also take advantage of top-level networking opportunities during theevent with leading executives and suppliers to pave the way for future business.
! Attendee profile: Storage companies, battery producers, automation, utilities, gridoperator, ICT companies, PV developers
SolarPower & Storage Europe 2017
SolarPower Europe (European Photovoltaic Industry Association)Rue d’Arlon 69-71, 1040 Brussels, BelgiumT +32 2 709 55 20 / F +32 2 725 32 [email protected] /www.solarpowereurope.org
Contact:Michael [email protected]+ 49 173 15 70 999
