Evolution of Renewable Energy Support Mechanisms in Europe Influence on Biogas Market
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1 Evolution of Renewable Energy Support Mechanisms in Europe Influence on Biogas Market Jan Stambasky EBA Executive Board Member Conference of Czech Biogas Association, 11 th October 2012, Trebon, Czech Republic
2 European Biogas Association Austria (ARGE Kompost & Biogas) Belgium (Valbiom) Czech Republic (Česká bioplynová asociace) Estonia (Eesti Biogaasi Assotsiatsioon MTÜ) Finland (Suomen Biokaasuyhdistys) France (ATEE Club Biogaz, EDEN, and Méthéor) France (Association des Agriculteurs Methaniseurs de France) Germany (Fachverband Biogas and FNBB) Greece (Hellenic Biogas Association) Great Britain (The Anaerobic Digestion and Biogas Association Ltd.) Great Britain (REA Biogas Group) Hungary (Magyar Biogáz Egyesület) Ireland (Sustainable Energy Ireland) Italy (Consorzio Italiano Biogas) Latvia (Latvijas Bigazes Asociacija) Lituania (Bioduju Asociacija) Louxemburg (Biogasvereenegung) Netherlands (DSM) Poland (Polskie Stowarzyszenie Biogazu, PIGEO) Romania (Asociatia Romana Pentru Biogaz) Spain (Asociación Española de Biogás) Sweden (Svenska Biogasföreningen) Switzerland (Biogas Forum Schweiz) 2
3 Outline What potential do we have for biogas? NREAPs and the national targets targets where are we now? Case studies in the CEE region Case study 1: Austria Case study 2: Poland current developments bottlenecks and solutions Case study 2: Czech Republic how to start efficient and flexible support scheme current developments Conclusions 3
4 Biogas Production Potential Big potential for the EU Biogas = versatile renewable energy source Energy utilization space heating, cooking local power production automotive fuel natural gas substitute Rural area development sustainable agriculture nutrient recovery and soil improvement securing current jobs, new green jobs creation this is the potential of biogas 4
5 NREAPs Renewable energy as key solution Integration of renewable energy sources into 2020/2050 goals Legally binding for all Member States Encourages joint projects Possibility to create better policies and share best practises but Average increase of biogas share in renewable energy mix is under the average increase of other renewable energy sources Biogas potential is not enough taken into account No penalty mechanism for failure to achieve the targets 5
6 2020 Biogas Targets: The CEE Region (2010) (2020) Austria 97 MW 102 MW Bulgaria 0 MW 65 MW Czech Republic 113 MW 417 MW Estonia 0 MW 0 MW Latvia 11 MW 92 MW Lithuania 12 MW 65 MW Hungary 14 MW 100 MW Poland 80 MW 980 MW Romania 4 MW 195 MW Slovenia 30 MW 61 MW Slovak Republic 18 MW 110 MW 6
7 Biogas for Electricity & Heat Production per Capita in kwh, person household up to 4,500 kwh el. per annum (DE) 7
8 Biofuels in Transportation, ktoe by Estimation of total contribution expected from biogas, vegetable oils, etc. to meet 2020 targets (share of energy from biogas, vegetable oils, etc. in transport ) ktoe 8
9 Biogas for Electricity & Heat Production per Capita in kwh,2020 OK???!!????!!? not too bad???!!! 4 person household up to 4,500 kwh el. per annum (DE) 9
10 Biogas for Electricity & Heat Targets 1000 kwh per capita is a reasonable target there are 500 mil. people in Europe 500 TWh / annually is feasible Annual Electricity Consumption (2008) GR CH CZ RO PT HU DK SK BG IE IS SI LT EE LV LU 544 TWh 461 TWh 491 TWh 10
11 Where are we now? Roughly 80% of the biogas sector is located in Germany Best practices: Austria, Denmark, Sweden, Switzerland, the Netherlands Booming countries: Italy, Czech Republic, U.K. Ready to boom: France, Poland, Hungary Huge potential untapped: Bulgaria, Romania 11
12 Case Study 1: Austria Regional support mechanisms since different support schemes not much efficient Federal support mechanism since 2002 Ökostromgeseetz very efficient in a short time from 97 BGP (2002) to 344 BGP (2008) 97 MW (2008) further developments first biomethane facility (Pucking, 2005) biogas upgrading with a biocng filling station (2007) biorafinery (2009) but no progress now 12
13 Case Study 1: Austria Mid term potential (by 2020) Potential of 600 Mio. Nm 3 of methane 550 Mio. Nm 3 for CHP 50 Mio. Nm 3 for fuel 500 new biogas plant 1.5 Mio. tonnes CO 2 savings 1.1 Bln. Euros investments 4000 new jobs 13
14 Case Study 2: Poland Very early stage of biogas sector development (2009) Robust potential 3 rd biggest substrate pool in the EU 10,700,000 hectares of arable land total estimated biogas potential of 20,000 MW el but not used yet 18 agro BGP, MW in Feb GWh from all biogases (2009) quota system for RE low remuneration (11-13 cents per kwh) lack of a systematic road map for biogas production and utilization 14
15 Case Study 2: Poland Contra-productive environment for biogas o Shale gas o Nuclear power plant projects o Social and governmental mistrust Status quo in Poland o projects are currently in phase of realization Green certificates in Poland do not create financial feasibility (need for feed-in tariffs) Ambitious intentions in NREAP requiring adequate measures in order to meet the target 15
16 Case Study 2: Poland Bottlenecks For farmers it is hard to prepare adequate project proposals, fulfill evaluation criteria and get funding Energy prices are low compared to EU average prices Gap between potential BG producers, developers, investors Legal & Administrative barriers and possible solutions The development of roadmap or guide for permit procedure is necessary Continuous, targeted, well-considered and well-planned state support for biogas projects is crucial A long-term policy framework for biogas use Promoting the awareness on biogas at all levels 16
17 Case Study 3: Czech Republic Very quick development in the years RE Act (2005) introduced the support scheme it took two years to develop the first project since then 40 plants (25 MW el ) per year 17
18 Case Study 3: Czech Republic biogas plants installed power [MW] 789 Long term potential (agro biogas) 1.0 Bln. Nm3 of methane (10 TWh) 1.7 Bln. Euros investments 15,000 of green jobs Long term road map needed
19 Czech Republic: Too Successful or too modest NREAP 147 MW total 273 BGS MW 2011/07/01 19
20 Czech Republic: Too Successful 31/12/2008 total 136 BGS, MW, agro-only 59 BGS, MW 31/12/2009 total 173 BGS, MW, agro-only 91 BGS, MW 31/12/2010 total 242 BGS, MW, agro-only 124 BGS, MW 31/12/2011 total 327 BGS, MW, agro-only 212 BGS, MW 20
21 Czech Republic: How to Misuse NREAP 2011 NREAP Target Real development mid MW x MW "We keep the negotiated commitments on renewables, but not let the slightest crossing at all!" Mr. Kocourek, Minister of Industry and Trade, CZ 21
22 Czech Republic: How to Misuse NREAP Retroactively cancelled investment subsidies responsibility of Ministry of Agriculture for the agro entrepreneurs affecting applications sent during the 2011 call July 2011 Cancelled investment subsidies responsibility of Ministry of Industry and Trade for non-agro biogas investors the 2011 call canceled (before opened) August 2011 Major amendments of the Energy Act (2011), and RE Act (2012) Political discussions on canceling RE support by
23 Conclusions Huge potential with no real action yet Bulgaria, Romania small 2020 targets despite their potential First steps were taken Slovak republic, Hungary, (perhaps) Poland number of projects under development somehow low 2020 targets may be achieved soon Using NREAP and 2020 targets against RE development Czech Republic efficient and flexible support scheme in the beginning creating systematic uncertainty for the future biogas development no general public commitment to Green Economy 23
24 Evolution of Renewable Energy Support Mechanisms in Europe Influence on Biogas Market Jan Stambasky Executive Board Member European Biogas Association
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