The Renewable Energy Directive: Biomass for district and individual heating

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1 The Renewable Energy Directive: Biomass for district and individual heating Dr. Heinz Kopetz President AEBIOM Vilnius, Lithuania Wednesday, 30th September 2009 International Conference: «Challenge to Lithunanian Energy: Lose the chance or use the EU experience»

2 AEBIOM AEBIOM European Biomass Association Representing and promoting interests of bioenergy stakeholders 33 national associations More than 70 companies Activities : lobbying, workshops, newsletter, projects, etc. Based in Brussels Renewable Energy House

3 Structure Introduction The RES Directive Consequences for Biomass to heat Conclusions

4 Global Challenges Our societies face two main global challenges: the global warming the upcoming shortage of oil and natural gas There is one straightforward answer to solve these problems: the rapid replacement of fossil fuels - by renewable energies, - by better efficiency and - by energy saving.

5 The European Answer The energy and climate package 2008 With the targets ( C0² reduction, share of RES, improvement of efficiency) The Renewable energy directive (2009/28/EC) And other pieces of legislation

6 Important aspects of the new legislation for RES in Europe subject In the past New approach Sectoral: electricity, fuels Integral: heat, electricity, fuels targets indicative Mandatory for each member state and 10% for transport Action plans no Detailed national renewable action plans required until June 2010 trajectory Rather general Detailed, every 2 years Role of member states Definition of targets To fulfill sectoral targets Final energy for biofuels and electricity, no target for heat To decide about allocation of biomass between markets, implement measures, use flexibility mechanism Final energy for all three markets, for biomass the primary energy and final energy has to be presented

7 EU 27: Biomass to Bioenergy Import ktoe Primary biomass ktoe Export ktoe Europe 27 More than ¾ of final bioenergy is heat! Gross inland consumption ktoe η 100% Input to electricity and CHP ktoe Input to DH ktoe η 26% Bioelectricity 8754 ktoe Derived heat ktoe Biomass for households and services Biomass for industry ktoe Biofuels ktoe ktoe

8 Energy structure Consequence Conversion Bioelectricity only Contribution to final energy consumption 0, 3-0,4 toe 1 toe wood chips CHP District heating 0,5-0,9 toe 0,8-0,9 toe Individual heating 1 toe The same toe wood can participate up to 3 times more to reaching the target!

9 Consequences of the Directive: More emphasis on heat Finally, biomass is renewable but it is also limited. In setting up the nreap member states will have to decide how to use the available biomass. Criteria will be costs, efficiency etc. What will be the result? Strong push for individual heating with biomass Strong push for district heating Maybe a revision of present policies towards electricity alone projects Increasing investments to switch from fossil fuels to biomass in district heating in new member states Huge investment opportunities

10 7 arguments for biomass to heat 1 Biomass is stored solar energy, therefore renewable 2 Biomass is C0² neutral, the carbon comes form the air 3 Biomass is indigenous, better security of supply 4 Biomass is cheap, cheaper than fossil fuels 5 Biomass create jobs, strenghtens rural economies 6 Biomass fits to small and big solutions, heat and CHP solutions 7 Biomass comprises many resources: from forests, agriculture and municipial solid waste (MSW)

11 Example one: MSW incineration Spittelau Vienna Vienna Spittelau - waste incineration as a piece of art t MSW/a 470 GWh district heat for appartments, 40 GWh electricity Vienna 1000km DH pipes Waste incineration, derived heat And biomass In Vienna Simmering

12

13 Eample 2: Biomass for big solutions: A 60 CHP plant with biomass in Vienna

14 example 3: biomass for small district Heating a plant in a village (Ottendorf) 4 farmers create a small heat cooperative Association Européenne pour la BIOMasse

15 Village heated with oil: heating expenditures go abroad Euro going abroad village abroad l heating oil coming from abroad

16 Village heated with wood chips: Money remains in the region district heating plant based on biomass, chip boilers village Euro going to the heating plant remain in the region Heating plant kWh heat coming from the heating plant

17 An example (Austria): Costs per one ton avoided GHG biomass to heat is the cheapest way to reduce C0² emissions! Bio-energy path Biomass for individual heating (pellets, chips etc.) District heating with biomass, grid existing with grid investment /t C0² reduction Cogeneration with biomass Biogas for electricity, heat and transport Higher than 100 biofuels Higher than 100

18 Biomass District Heatin in Austria source: E.V.A Landeskammer für Land- und Forstwirtschaft Steiermark Folie 18

19 District heating in Europe,2003, kwh/capita Big differences between North, West and East of Europe! ad; Lt above average 2800kWh/cap, hereof ca 450kWh from biomass, in Sweden 3000kWh/cap. Li: Plus 1000kWh/cap = 12PJ and 2GW investment, (600Mio )

20 Biomass creates new jobs and improves the security of supply One Million Euro investment: new jobs One PJ heat produced per year (= 278 GWh): jobs (for production of raw material, storing, transporting, operating the installations) Lithuania: to reach 50% of district heat with biomass within 5 years would mean 3000 permament jobs für operation and about jobs per year for investment!

21 Pellets: a modern biomass fuel for family houses in suburbs Quantity to deliver up to 16 t Pellets Hose line: 30m Dust sack and exhauster The storage room has to be solid, dry and airproof.

22 Conclusions: Government policies For the heat market Awarenessbuilding among decision makers investment grants for private households and companies: Germany, France, A: between 10 and 50% High taxes on fossil fuels (Sweden, Italy) Training programs for installers, chimney sweepers No subsidies for fossil fuels For the electricity sector Feed in tariffs Green certificates Renewable obligation certificates (ROCs)

23 Global challenges and biomass Our societies face two main global challenges: the global warming the upcoming shortage of oil and natural gas The answer to these problems: the rapid replacement of fossil fuels - by renewable energies, - by better efficiency and - by energy saving. Biomass to heat has a big role to play in reducing GHG emissions and improving the security of supply in Europe!

24 European Bioenergy Conference

25 Danke für die Aufmerksamkeit! Thank you for the attention!

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