Renewable Energy Sources: National Targets and Legal Framework

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1 MINISTRY OF ENVIRONMENT ENERGY & CLIMATE CHANGE Renewable Energy Sources: National Targets and Legal Framework P. Karatzias Renewable Energy Sources Ministry of Environment and Energy Directorate of Renewable Energy Sources and Alternative Fuels

2 National R.E.S. Targets The EU requirements set under Directive 2009/28/EC (EEL 140/2009) provide that the contribution of the energy produced by R.E.S. to the gross final energy consumption for Greece until the end of 2020 will be 18%. The national targets for the R.E.S., as provided by L.3851/2010, are set as follows: Contribution of the energy produced by R.E.S. to the gross final energy consumption in 2020: 20%. Contribution of the electrical energy produced by R.E.S. to the gross electrical energy consumption: at least 40%. Contribution of the energy produced by R.E.S. to the final energy consumption for heating and cooling: at least 20%. Contribution of the electrical energy produced by R.E.S. to the gross electrical energy consumption in transportation: at least 10%. Page 2

3 R.E.S. trajectory in Greece (actual vs NREAP projection) Electricity: the share of R.E.S. showed an offset from the projected figures for Heating and cooling: The penetration of RES for in 2015 stands at 25.9%, already surpassing the corresponding indicative target for 2020 (20%). Transport: the penetration of RES present a significant deviation observed from the foreseen target Page 3

4 Progress over the sectoral (electricity, heating and cooling, and transport) and overall shares of energy from renewable sources RES-H&C [1] 20.23% 24.43% 26.47% 26.85% 25.90% RES-E [2] 13.82% 16.48% 21.24% 21.92% 22.09% RES-T [3] 0.74% 1.06% 1.04% 1.37% 1.43% Overall RES share [4] 11.03% 13.83% 14.99% 15.32% 15.44% [1] Share of renewable energy in heating and cooling: gross final consumption of energy from renewable sources for heating and cooling (as defined in Articles 5(1)b) and 5(4) of Directive 2009/28/EC divided by gross final consumption of energy for heating and cooling. The same methodology as in Table 3 of NREAPs applies. [2] Share of renewable energy in electricity: gross final consumption of electricity from renewable sources for electricity (as defined in Articles 5(1)a) and 5(3) of Directive 2009/28/ECdivided by total gross final consumption of electricity. The same methodology as in Table 3 of NREAPs applies. [3] Share of renewable energy in transport: final energy from renewable sources consumed in transport (cf. Article 5(1)c) and 5(5)of Directive 2009/28/EC divided by the consumption in transport of 1) petrol; 2) diesel; 3) biofuels used in road and rail transport and 4) electricity in land transport (as reflected in row 3 of Table 1). The same methodology as in Table 3 of NREAPs applies. [4] Share of renewable energy in gross final energy consumption. The same methodology as in Table 3 of NREAPs applies. Page 4

5 RES electricity installed capacity per technology (Sep. 2017) Technology Capacity in Sep. 2017(MW) NREAP Target for 2017(MW) NREAP Target for 2020 (MW) Wind 2,451 5,430 7,500 Solar PV [1] 2,604 1,456 2,200 Small hydro Large hydro 3,173 3,396 4,300 Biomass-Biofuels CSP Geothermal Total 8,520 10,835 15,070 [1] Excluding PV net-metering installations. The RES electricity mix was differentiated significantly from the 2010 National Renewable Energy Action Plan projections, with the main share in the RES installed capacity between 2011 and 2013 being attained by PV instead of wind installations, which attributed to: the adoption of a favourable support scheme, the reduction of development cost of PV projects and the adoption of different policy measures with regard to the streamlining of the licensing procedure. Page 5

6 The previous support scheme for electricity generation from RES Feed in Tariff (FiT): Fixed price (tariff) according to specific criteria (technology, size, public subsidies, period of connection for PVs) L.3468/2006 L.3851/2010 L.4254/2014 L.3468/2006: L.3851/2010: L.4254/2014: The main framework for RES power generation (incl. the licensing procedures). Introduction of national R.E.S. targets and revision of the licensing procedure to facilitate RES penetration. Amendment of the FiT scheme for new and existing PV, wind, small hydro (of up to 15MWe) and CHP installations. Page 6

7 Reform of the support scheme for electricity generation from RES New RES Support Scheme - Law 4414/2016 : key elements effective EC State Aid Guidelines for Environmental Protection and Energy (EEAG) (section 3.3) contribute to the achievement of the national energy targets with the optimum balance in terms of costs and benefits for the society current transition of the domestic electricity market in a new model of the electricity market (target model) Page 7

8 RES New Support Scheme (L.4414/2016) Operating aid will be granted for the electricity generation from RES in the form of a sliding Feed in Premium (sfip), in addition to the market price whereby the generators sell their electricity directly in the market. Sliding Feed in Premium (sfip) is granted until the full depreciation of the specific RES plants is based on a differential value that will consider the revenues from its direct participation in the electricity market Plants will be subject to specific obligations and balancing responsibilities Exceptions from sfip (FiT) the projects of less than 3MW for wind plants and 500kW for the rest RES technologies, the projects in the non interconnected islands, demonstration projects Cumulative total cost until 2020 (estimated): approximately 260 million. Page 8

9 RES New Support Scheme (L.4414/2016) Reform of the special account for RES and CHP Law 4414/2016 splits the RES and CHP special account into: 1) The RES and CHP Special Account of Interconnected System and Network (special account I) 2) The RES and CHP Special Account of Non Interconnected Islands (special account II). Electricity suppliers special charge for additional income for the RES account, in order not to burden end consumers futrther through an increase in the existing RES levy (ETMEAR). Page 9

10 Competitive bidding processes (L.4414/2016): Pilot competitive bidding process (December 2016) Competent Authority: Greek Regulatory Authority for Energy (RAE) Technology: PV PV pilot auction Number of participating project (and cumulative capacity in MW) Volume of tendered capacity in MW Number of successful project (and cumulative capacity in MW) Lowest and highest successful bid in /MWh Weighted bid clearance price in /MWh PV 1MW 13 (6.79) (4.79) MW<PV<10M W 12 (50.21) (35.12) Total 25 (57) (39.92) Page 10

11 Competitive bidding processes (L.4414/2016): RES Auctioning Scheme (up to 2020) : Obligatory (under the provisions of the EEAG) Determination of the RV for each of the projects that will be granted operational aid after their selection according to the auctions specific terms Exceptions from competitive bidding processes: RES and hechp projects under development Small scale, self consumption and demonstration RES projects Due to market specific issues Biomass, biogas, SHP, geothermal, CSP, hechp (under certain limitations concerning cumulative capacity thresholds annually and during the period). RES auctioning scheme (up to 2020): Technology specific auctions: Wind above 3MW, PV above or equal to 500kW. At least 2 pilot joint auctions (PV and Wind): e.g. onshore Wind combined with large scale PV. Site specific auctions: due to interconnection of one or more islands, System s expansion or availability of a previously electrically congested region. Page 11

12 MINISTRY OF ENVIRONMENT ENERGY & CLIMATE CHANGE Thank you for your attention Renewable Energy Sources Ministry of Environment and Energy Directorate of Renewable Energy Sources and Alternative Fuels