Political and legal background Tariff system Economic instruments Administrative procedure

Transcription

1 Political and legal background, tariff system and economic instruments for energy from biomass in Croatia Branka Jelavić, PhD el.eng. Ana Kojaković, MSc environ. Biljana Kulišić, MSc agr. Veljko Vorkapić, MSc environ. Energy Institute Hrvoje Požar, Zagreb; Croatia Biomass in SE Europe Berlin, 29 October 2009

2 Contents Political and legal background Tariff system Economic instruments Administrative procedure 2

3 EU Directives and targets White Paper (1997): RES target in total energy consumption in 2010: 12% (6% RES-E, 1% biofuels and 5% RES-H&C) Directive 2001/77/EC on production of RES-E 22.1% (EU15) in 2010 Directive 2003/30/EC on promotion of biofuels and other RES in transport 5.75% in 2010 Directive o RES-H&C - pending EU targets for 2020 (3x20%): 20% RES in the EU energy consumption (10% biofuels) 3

4 Croatian Energy Sector Change 1991 New Energy Sector Strategy 1994 New Development and Organization of Croatian Energy Sector (PROHES) 1997 National Energy Programmes (NEP) 1998 Energy Sector Development Strategy drafting 2000 Concept of Energy Reform 2001 Energy laws 2002 Energy Sector Development Strategy 2003 Environmental Protection and Energy Efficiency Fund 2004 Amendments to Energy laws + Regulations 2005 Law on Production, Distribution and Supply of Heat Energy 2007 Secondary legislation (sub-laws) on RES 2009 Biofuel Law 2009 Energy Sector Strategy 4

5 National Energy Strategy Goals (1998) Increasing Energy Efficiency Security of Demand and Supply Diversification of Energy Supply and Sources RES Implementation Market Energy Prices and Market Development Environmental Protection 5

6 National Energy Strategy Goals (2009) Security of Energy Supply Energy System Competitiveness Energy Sector Development Sustainability 6

7 Croatian RES Policy Regulatory framework 1. Directive 2001/77/EC on the promotion of electricity produced from RES in the internal electricity market 2. Directive 2003/30/EC on the promotion of the use of biofuels or other renewable fuels for transport RES target for EU 27 = 20% RENEWABLE ENERGY SOURCES Programs, measures projects 1. Governmental 2. Regional/local selfgovernment 3. National energy programmes Economic instruments Source : MINGORP 7

8 RES Legislative framework The Energy Act The Electricity Market Act The Act on the Regulation of District Heating Conditions for Energy License TheTarif Systems General Conditions for Supply of Electricity The Tariff System for the Production of Electricity from RES and CHP Ordinance on the Use of RES and CHP The Regulation on the Minimum Share of Electricity Produced from RES and CHP whose Production is Incentivized The Regulation on Fees for Promoting Electricity Production from RES and CHP Ordinance on Acquiring the Status of an Eligible Electricity Producer Grid Rules The Ordinance on the Amount of the Fee for Connection Market Rules Ordinance on Privileged Status - H PSTE Regulatio n on Minimum Share PSTE 5 sublaws OG 33/07 OG 67/ Biofuel Law Supporting sublaws 8 Source : MINGORP

9 RES Electricity Legislation (1) 2007: Package of five sublaws on RES electricity and cogeneration Ordinance on RES&C utilization Regulation on the minimum share of RES&C electricity Tariff system for RES&C electricity Regulation on compensation for RES&C electricity incentives Ordinance regarding eligible producer status 9

10 RES Electricity Legislation (2) Ordinance on RES&C utilisation: Definition, RES&C category (type, capacity) Permits RES&C projects registry Regulation on the minimum share of RES&C electricity: 2007: 1.8% RES, 0.6% cogeneneration (of total electricity consumption) 2010: 5.8% RES, 2% cogeneration (of forecasted electricity consumption) 10

11 Feed-in tariffs (2009)1 Plants up to 1 MW /kwh a.1. Solar < 10 kw a.2. Solar 10 kw-30 kw a.3. Solar > 30 kw b. HPP c. Wind d.1. Biomass from forestry and agriculture d.2. Biomass from wood processing industry e. Geothermal f. Biogas from agriculture g. Liquid biofuels h. Landfill gas i. Wave, tidal

12 Feed-in tariffs (2009)2 Plants over 1 MW /kwh Small hydro < 5000 MWh/year Small hydro MWh/year Small hydro > MWh/year b. Wind c.1. Biomass from forestry and agriculture c.2. Biomass from wood processing industry d. Geothermal e. Biogas from agriculture f. Liquid biofuels g. Landfill gas h. Wave, tidal

13 RES Electricity Legislation (3) Regulation on compensation for RES&C electricity incentives: 2007: 0.12 c/kwh (total app M ) 2008: 0.27 c/kwh (total app M ) 2009: 0.37 c/kwh (total app M ) 2010: 0.48 c/kwh (total app M ) Ordinance regarding eligible producer status: All RES, small hydro up to 10 MW Only high-efficient cogeneration 13

14 Legal Framework Incentivized Eligible Procedure Tariff customers Supplier of tariff customers Eligible producers Eligible customers Suppliers contracts flow of money 14

15 RES and COGEN Projects Registry REGISTRATION EO PEO PEOz* PV (9,1 MW) (22) 61,51 kw (4) 35 kw (5) 9 MW (13) SMALL HYDRO (158,8 MW) (69) 1,8 MW (3) 157 MW (66) WPP (4818,9 MW) (122) 17,15 MW (2) 191,7 MW (9) 1807,70 MW (51) 2802,41 MW(60) BIOMASS (61,55 MW) (16) 5,74 MW (2) 55,81 MW (14) BIOGAS (25,75 MW) (17) 2,14 MW (3) 23,61 MW (14) COGENERATION (40,18 MW) (7) 30 kw (1) 1 MW (1) 39,15 MW (5) GEOTHERMAL (4,71 MW) (1) 4,71 MW (1) LANDFILL GAS (3,4 MW) (1) 2,5 MW (1) 0,9 MW (1) *PEOz projects realized before Ordinance Source: RES and COGEN Projects Registry MINGORP October,

16 Actual Status 255 Requests (October, 2009) Cogeneration 2.7% Geothermal 0.4% Landfill gas 0.4% PV 8.6% Biogas 6.7% Biomass 6.3% Small hydro 27.1% Wind 47.8% Source : MINGORP 16

17 Register for RES and CHP MW PV SMALL HYDRO WPP BIOMASS BIOGAS COGENERATION GEO MUNICIPAL GAS 17

18 Economic Instruments National Budget County/Municipal Budget Tariff System for RES and Cogeneration Croatian Bank for Reconstruction and Development Commercial Banks International Funds GEF, WB, UNDP EU Funds FP7, IEE, IPA, INTERREG Environmental Protection and Energy Efficiency Fund 18

19 Environmental Protection and Energy Efficiency Fund (1) Established in 2003 by the Government of Republic of Croatia Collecting assets for financing projects, programmes and activities in sustainable development Annual budget mil mil mil 19

20 Environmental Protection and Energy Efficiency Fund (2) ACTIVITIES/FINANCING Improvement and protection of environment Financing national energy programmes and other projects for improving energy efficiency and use of renewable energy sources Energy audits, sustainable buildings Cleaner transport projects Education and promotion R & D studies and surveys, research programmes and projects 20

21 Environmental Protection and Energy Efficiency Fund (3) TYPES OF PROJECT FINANCING Loans Subsidized interest rates Financial help Grants 21

22 Environmental Protection and Energy Efficiency Fund (4) AREAS OF FUND S INVESTMENTS RES: Solar Wind Biomass cogenerations, heat, biogas, solid biofuels (charcoal, briquettes, pellets), liquid biofuels (biodiesel, bioethanol) Small Hydro Geothermal Other RES 22

23 Environmental Protection and Energy Efficiency Fund (5) FUND S INVESTMENTS IN RES PROJECTS 34 biomass projects 15 boilers and cogenerations 7 DHS 5 biodiesel plants 1 biogas plant 22 solar projects Solar thermal (17), PV (5) 8 wind projects Project development (2), construction (6) total capacity 152 MW 8 other RES projects Small hydro, geothermal, heat pumps, combination of RES Total investments in RES mil 23

24 Administrative procedure Very complex Many stakeholders Long lasting No difference based on project size Positive attitude of ministries towards change (project RELEEL ) 24

25 25

26 Conclusions - Barriers Harmonization of legal framework Complicated procedure for realization of projects Frequent change of rules Financial and organizational problems Ownership problems and problems with use of state land Lack of information and high-quality education 26

27 Conclusions - Activities Continuation of work on legal system Intensification of cooperation with local authorities and communities Regional centres and agencies International cooperation Promotion and education Awareness about environmental protection 27

28 Thank you for your attention! For more information: Energy Institute Hrvoje Požar Savska 163, Zagreb; CROATIA tel fax: bjelavic@eihp.hr akojakovic@eihp.hr bkulisic@eihp.hr vvorkapic@eihp.hr 28