Sustainable Biogas Market Development in Central and Eastern Europe

Transcription

1 Sustainable Biogas Market Development in Central and Eastern Europe Contract No. N IEE/09/848 SI Project duration 01/05/ /10/2012 Supported by Sofia, October 2010

2 Contents 1. Basics of financing biogas projects 2. Financing in Germany 3. Financing in Austria 4. Financing in Denmark 5. Financing in the Netherlands 6. Financing in Italy

3 Basics of financing biogas projects The implementation of biogas projects requires three preconditions: ns: Good legislative framework Easy and transparent permitting porcedures Access to financing Investments and costs for a typical agricultural biogas plant: Costs for planning (engineering costs, cost for permits, taxes, certificates) Investment costs Costs for feedstock Operation and maintenance costs Costs for financing Revenues of biogas projects: Electricity and Heat sale Puplic subsidies Green certificates Revenues from tipping fees in biogas plants for waste, sales of digestate and savings from manure managment

4 Basics of financing biogas projects Common financing methods for biogas projects: Credits from private banks Traditional loan financing Project financing Investment funds Leasing Cooperation with for instance energy contractors

5 1. Germany About agricultural biogas plants (avarage size 400 kw el About 44 upgrading plants Prerequisites for the development of a sound biogas market Good policies for biogas project - feed-in electricity tarrifs Availability of a sound biogas industry with mature technical concepts and technologies Calculability of the financial risk Capital costs usually ranges from to /kw el )

6 1. Germany Support tools Renewable Energy Source Act (EEG) Main driver for attracting investments and for creating financing opportunities, since it ensures revenues for 20 years. Several national and regional subsidies and low interest loans Subsidy program of the kfw Bankengruppe provides low interest loans Subsidies of up to 50 % and up to given by dedicated federal states Sale of upgraded biogas through the national gas grid Regulation on access to the natural gas grid

7 1. Germany Financing tools Credits from private banks Necessary equity capital of % Cash flow based project financing is widely applied Umweltbank AG, DZ Bank, DKB Deutsche Kreditbank Investment funds Only a few projects were realized Energy contracting in the field of biogas production Currently not often applied

8 2. Austria 320 biogas plants (average size 250 kw el 8 upgrading plants Prerequisites for the development of a sound biogas market in Austria Development of stable policies for biogas project development The intorduction of feed-in electricity tarrifs with a stable long term strategy Best practice plants and a good backing through the population Calculability of financial risks of biogas projects Capital costs range from to /kw el el ) el Source: Austrian Compost & Biogas Association

9 2. Austria Support tools Eco-Electricity Electricity Act (EEA) Feed-in tarrifs (guaranteed for 15 years) Feed-in tariffs for electricity production from biogas 2010 capacity tariff Up to 250 kw 18.5 Cent / kwh Up to 500 kw 16.5 Cent / kwh Over 500 kw 13.0 Cent / kwh Facilities up to 250 kw must use a share of 30% manure By use of non agricultural feedstock, the feed-in tariff will be reduced by 20 percent Additionally CHP bonus of 2 Cent / kwh when certain efficiency criteria arefulfilled Investment subsidies 25 to 40 % of environmental relevant costs 5 % possible additional charge Subsidy are only granted if the plant is not listed as EEA plant For EEA plants only the waste heat distribution grid is promoted Technology subsidies from the federal states Revenues for the sale of biomethane are actually under discussion

10 2. Austria Financing tools Opportunities for financing biogas projects Specialised private consulting and technology companies Specialised staff of banks and credit institutes Prerequisites Equity capital of % of total invest All permissions and valid absorption contract with OeMAG

11 3. Denmark 22 co-operated operated biogas plants 60 agricultural biogas plants Biogas Action Programme ( ) boosted the development of the Danish biogas market significantly 40 % investment grant for centralised biogas plants Biogas projects are often non-profit companies Low development of the Danish biogas market during the last decade The feed-in tarrif scheme was substainable improved in February 2008

12 3. Denmark Support tools Law on promotion of Renewable Energies (VE-Lov. No. 1392/2008) Electricity generation Total payment of10 ct/kwh Additional payment of 5.4 ct/kwh for combined use of biogas and natural gas Upgraded gas 40.3 ct/m³ Sale of CHP waste heat is exempt from energy and CO 2 taxes

13 3. Denmark Financing tools Centralised biogas plants are financed in connection with a district heating loop Main financing tool for centralised biogas plants Non-profit ownership models Attractive governmental investment grants (loans with very low interest rates and municipal gurantees) Single farm biogas plant are financed through credits from private housebanks Furthermore: Index regulated annuity loans In the past government subsidies are granted up to 40 % of the investment

14 4. The Netherlands 90 agriculture biogas plants The biogas market increases with the previous MEP-programme which provides attractive financial stimulation SDE-programme (since 2008) has a limited budget for bonus payments Nowadays only 30 % of the applicants receive financial support from f the SDE-programme Governmental incentives for the use of waste heat and CO 2 Electricity from biogas are exempt from fiscal regulation mechanism (tax allowance for writing off investments)

15 4. The Netherlands Support tools Incentive for suistainable energy production (SDE) Programme Feed-in base tarrif for electricity Co-digestion of animal manure with waste heat utilization up to Digestion of other biomass Digestion of green household waste with waste heat utilization up to Landfill gas and water treatment/ sewage sludge Feed-in tarrif for upgraded biogas Digestion of green household waste Digestion of other biomass Landfill gas Sewage sludge /kwh; /kwh /kwh /kwh; /kwh /kwh /Nm³ /Nm³ /Nm³ /Nm³ Order on the Allocation on Grants (EOS) - Programme Subsidies for research, development and market research projects in the field of renewable energies Subsidies only granted to companies not to private individuals

16 4. The Netherlands Financing tools Rabobank supports financing of about 75 % of all dutch biogas plants Green funds scheme Private consulting companies, credit institutes and private banks Dutch Grenntech Fund Credits from private banks

17 Partners & Contact Co-ordinator: ordinator: Energy Institute Hrvoje Pozar Savska cesta 163 Zagreb, Croatia Contact: Biljana Kulisic Tel: Fax: Project web-site: Project partners: WIP Renewable Energies (WIP), Germany European Biogas Association (EBA), Belgium Fraunhofer (IWES), Germany Centre for Renewable Energy Sources and Savings (CRES), Greece Czech Biogas Association (CzBA), Czech Republic EKODOMA, Latvia Energoproekt, JSC (ENPRO), Bulgaria Razvojna agencija Sinergija, Slovenia Trinergy Grup (TG), Romania