Investment Opportunities in Renewable Energy Sources of Montenegro EBRD Renewable Energy Investment Forum

Transcription

1 D.Sc. Igor Kovačević, M. Sc. Lucija Rakočević Department of Renewable Energy Sources, Energy Sector Investment Opportunities in Renewable Energy Sources of Montenegro EBRD Renewable Energy Investment Forum Podgorica, 28 th June 2012

2 Preambule RECENT PRESENTATIONS (2012 only) 1. Investment Opportunities in Energy Sector of Montenegro, invited lecture, 5th Annual Balkan Energy Finance Forum, Belgrade, 19 th June 2. Renewable Energy Sources in Montenegro, Kyrgyzstan s Delegation visit, Podgorica, 7 th May 3. Obnovljivi izvori energije u Crnoj Gori, I sastanak mješovite komisije za ekonomsku saradnju između Republike Slovenije i Crne Gore, Ljubljana, 25 th April 4. Podloge za izradu lokalnih energetskih planova, UNDP i Zajednica Opština Crne Gore, Podgorica, 6 th April 5. Razvoj obnovljivih izvora energije u Crnoj Gori, Okrugli sto Energetska efikasnost u cilju održivog i ekološkog razvoja društa, Unija poslodavaca Crne Gore, Budva, 22 nd March 6. Mogućnosti korišćenja obnovljivih izvora energije u zgradarstvu u Crnoj Gori, Savjet za ekološku gradnju, Podgorica, 16 th March 7. Nacionalni cilj korišćenja obnovljivih izvora energije, Sastanak sa predstavnicima NVO za oblast obnovljivih izvora energije, Podgorica, 30 th January...

3 Preambule COLLABORATIONS WITH EBRD (2009-) Task Force Renewable Energy in EnCS started and EBRD launched the Western Balkans Sustainable Energy Direct Financing Facility (SEDFF): Institutional Capacity Building in Autumn 2009 A b b r e v i a t i o n : EBRD European Bank for Reconstuction and Development EnC Energy Community EnCS Energy Community Secretariat CP Contracting Parties Technical consultant from EBRD presented situation in the CP of EnC in December 2011 on 7 th Task Force Renewable Energy Meeting

4 OUTLINE OF THE PRESENTATION 1. Stategic and Legislative Framework (4 slides) 2. National RES Target (5) 3. RES Plans and Projects (7) Hydro Wind Solar Biomass 4. Energy Infrastructure (3) Transmission Electricity Network Distribution Electricity Network 5. Challenges and Potential Solutions (4) 6. Conclusions (1) A b b r e v i a t i o n : Montenegrian Katun RES - Renewable Energy Sources Hotel Ramada, Podgorica, 28 th June 2012

5 1. Strategic and Legislative Framework 1.1. Major Strategic Commitments Reasonable valorization of available potentials Achieving a balance between energy development and environmental protection Regulatory, legislative and operational integration in the process of approaching the EU in the fields of energy and environment Implementation of obligations under thetreaty establishing the Energy Community Continuation of energy reform, while respecting sustainable development and market operation principles Ensuring social protection in the process of reform changes in energy sector Tara Canyon

6 1. Strategic and Legislative Framework 1.2. Legislative and Regulatory Framework for RES Energy sector is recognized in Montenegro as an important driving force of the economic growth, especially investments in RE Energy Policy for Montenegro until 2030 sets three main priorities to be: security of supply; sustainable energy growth and competitive energy market Energy Law (2010) implements the latest Directive 2009/28/EC regarding electricity and heating and cooling sectors: Incentives for energy produced from RES and cogeneration National target for energy produced from RES Guarantees of origin Privileged producers Joint Projects and Joint support schemes Programme for RES based on EU NREAP form Energy and Climate Change Politics in EU

7 1. Strategic and Legislative Framework 1.2. Legislative and Regulatory Framework for RES (cont d) Ministry responsible for energy, based on Energy Law, adopted the set of regulation for RES, in Montenegrin language: 1. Pravilnik o kriterijumima za izdavanje energetske dozvole, sadržini zahtjeva i registru energetskih dozvola ( Službeni list CG, br. 49/10) 2. Pravilnik o vrstama i klasifikaciji postrojenja koja koriste OIE i postrojenja za visokoefikasnu kogeneraciju ( Službeni list CG, br. 28/11) Hotel Ramada, Podgorica, 28 th June Pravilnik o bližim uslovima koje treba ispunjavati pravno lice za mjerenje i istraživanje potencijala obnovljivih izvora energije ( Službeni list CG, br. 28/11) 4. Uredbu o načinu sticanja statusa i ostvarivanja prava povlašćenog proizvođača električne energije ( Službeni list CG, br. 37/11) 5. Uredbu o načinu izdavanja, prenošenja i povlačenja garancija porijekla energije proizvedene iz obnovljivih izvora energije i visokoefikasne kogeneracije ( Službeni list CG, br. 37/11) English version:

8 1. Strategic and Legislative Framework 1.3. Support Schemes for RES Support scheme for electricity generation Feed-inn tariffs for electricity generated in RES facilities: Status of privileged producers and Electicity generated for Montenegrian national target in National Renewable Action Plans* Status of priviledged producers is defined in Energy Law for 12 years Power Purchase Agreements will be signed with Market Operator along with Previous agreement on conditions for PPA * NREAP National Renewable Action Plan Facilities [c /kwh] 1 Small hydro power plants till 3 GWh 10,44 from 3 till 15 GWh 7,44 from 15 GWh 5,04 2 Wind 9,60 3 Solid biomass from wood and agriculture 13,71 woody-pocessing industry 12,31 4 Solar systems 15,00 5 Waste to energy 9,00 6 Feed-in tarrifs for electricity generated in RES facilities Gas from waste, landfills or sewage 8,00 7 Biogas 15,00 Support scheme for heat generation not yet defined Hotel Ramada, Podgorica, 28 th June 2012

9 OUTLINE 1. Stategic and Legislative Framework 2. National RES Target 3. RES Plans and Projects Hydro Wind Solar Biomass 4. Energy Infrastructure Transmission Electricity Network Distribution Electricity Network 5. Challenges and Potential Solutions 6. Conclusions National RES Target for EU Countries till 2020.

10 2. National RES Target 2.1. Montenegro The Contracting Party of EnC Montenegro is the Contracting party of the EnC since 2006 The contractieng parties of EnC are committed to: implement relevant acquis communautaire establish regulatory framework set up energy market Obligations in RES field are adoption of: Directive 2001/77/EC on promotion of electricity produced from RES Directive 2003/30/EC of the use of biofuels or other renewable fuels for transport European Community, the end of 2011

11 2. National RES Target 2.2. National RES Target based on Directive 2009/28/EC EnCS developed Study on the Implementation of the New EU Renewables Directive in the Energy Community in that defined Montenegrin national RES target of 29,5 % Montenegro showed willingness to accept National RES target Due to uncertain statistical data on woody fuel consumption in EnCT countries a separate study on biomass consumption was developed in 2011 New data on biomass consumption presented in the study are much higher than official statistical data Based on the new data on biomass consumption, EnCS proposed new National RES target for the contracting parties with new reference year 2009 Gross final energy consumation in 2009 is reduced due to decrease in KAP consumption by half - RES share in the reference year is higher than in 2005 The EnCS proposal from May 2012 for Montenegro s national RES target is 33 % The final target is not defined yet

12 2. National RES Target 2.3. Programme for development and use of RES Programme is developing using NREAP form based on Directive 2009/28/EC NREAP is consisted of parts that define: Woody fuel as RES Hotel Ramada, Podgorica, 28 th June 2012 Dynamics of achieving national target by sectors (electricity, heating and transport) Means of stimulating development and use of RES Regulatory framework (procedures, building, standards, certificates) Development and connection to electricity network Influence of implementation of energy efficiency measures Background documents for Programme are being developed including: Action plan for woody biomass, Local energy plans, Registry for small water streams, etc. Programme is expected to be prepared by the end of 2012 due to delay in defining RES national target

13 2.3. Programme for development and use of RES (cont d) Renewable Energy Action Plan RES Data from Action Plan MW hours GWh existing NEW Hydro Piva 360, ,0 732,0 732,0 732,0 732,0 732,0 732,0 800,0 800,0 800,0 800,0 800,0 Perucica 365, ,0 957,0 957,0 957,0 957,0 957, , , , , , ,0 existing SHPP 9, ,0 21,0 21,0 21,0 21,0 21,0 50,0 80,0 80,0 80,0 80,0 80,0 SHPP Tender 100,0 300,0 50,0 100,0 150,0 200,0 300,0 300,0 300,0 300,0 300,0 300,0 Komarnica 168,0 230,0 230,0 230,0 230,0 230,0 Moraca 220,0 600,0 200,0 300,0 400,0 500,0 600,0 600,0 600,0 SHPP till 1 MW 30,0 100,0 15,0 30,0 40,0 50,0 60,0 70,0 80,0 90,0 100,0 sum Hydro 1.252, , , , , , , , , , , , , ,0 Wind Mozura, Ulcinj 46, ,0 105,0 105,0 105,0 105,0 105,0 105,0 105,0 105,0 Krnovo, Niksic 50, ,0 115,0 115,0 115,0 115,0 115,0 115,0 115,0 Krnovo, Šavnik 22,0 2300optional 50,0 50,0 50,0 50,0 50,0 50,0 50,0 sum Wind 118,0 270,0 0,0 0,0 0,0 105,0 220,0 270,0 270,0 270,0 270,0 270,0 270,0 Biomass Electricity Solid Forest residues Industrial wood processes 0,8 1,5 2,5 3,6 4,8 6,3 8,0 9,5 10,5 11,0 Biogas Energy crops 0,2 0,4 0,9 1,7 3,0 4,8 6,5 7,9 8,7 Livestock 0,2 0,4 0,5 0,6 0,8 1,1 1,3 1,7 2,0 Municipal Waste (gas from landfill) 17,6 17,6 17,6 17,6 Sewage plant (gas from wastewater) 4,1 4,1 4,1 4,1 4,1 4,1 Bioliquids sum Biomass 0,0 0,0 0,8 1,9 3,3 5,0 11,2 14,2 35,6 39,0 41,8 43,4 Solar Electricity PV 0,0 0,2 3,0 5,0 7,0 9,0 11,7 15,2 19,8 25,7 33,4 CSP 0,0 0,0 0,0 0,0 0,0 0,0 0,0 0,0 0,0 0,0 0,0 sum Solar 0,0 0,0 0,2 3,0 5,0 7,0 9,0 11,7 15,2 19,8 25,7 33,4 ELECTRICITY SUM ELECTRICITY 1.370, , , , , , , , , , , , , ,8 Elec % % 100,00% 75,33% 75,34% 75,64% 76,65% 78,87% 81,10% 81,33% 82,02% 81,54% 81,02% 80,53%

14 Final electricity tariffs, Euro-cents/kWh Hotel Ramada, Podgorica, 28 th June 2012 % change from benchmark 2. National RES Target 2.3. Programme for development and use of RES (cont d) RES Projects Influence on Final Electricity Tariffs 4.4% % % -2.1% -1.6% -2.1% 5.0% 0.0% % % % % Policy Success 2 - Delay in achieving energy efficiency Final electricity tariffs, cents/kwh Change from Benchmark 3 - No contribution from the transport sector * Calculation made for national target of 30 % 4 - No contribution from biomass in heating 5 - No contribution from solar 6 - No new conventional hydro -25.0% Benchmark electricity tariff = 8.33 cents/kwh

15 OUTLINE 1. Stategic and Legislative Framework 2. National RES Target 3. RES Plans and Projects Hydro Wind Solar Biomass 4. Energy Infrastructure Transmission Electricity Network Distribution Electricity Network 5. Challenges and Potential Solutions 6. Conclusions Monastery Moraca generation of electricity

16 3. RES Plans and Projects 3.1. Hydro Potentials and Projects Hydro Potentials Total theoretical hydro-potential of Montenegro, as given in the Water Management Plan of Montenegro, is ~10 TWh, 17 % used Hidrometeorology institute of Montenegro is continuiusly measuring on potential location for shpps* in Montenegro since 2007, about 50 locations, NOR and UNDP Moraca river Measurements of hydro potential and development of registry of shpps in 13 municipalities, 87 locations, EBRD * - shpp Small Hydro Power Plants Hotel Ramada, Podgorica, 28 th June 2012 In-situ Flow Measurement

17 3. RES Plans and Projects 3.1. Hydro Potentials and Projects (cont d) Existing HPPs Modernization of the HPP Piva Second phase of modernization of the HPP Perucica HPP Komarnica Accumulation HPP Technical characteristics: installed power 168 MW (2 84 MW) annual production 232 GWh Investment: 160 M HPPs Moraca Technical characteristics: 4 HPPs, total installed power 242 MW annual production GWh Investment: 540 M Komarnica Canyon, dam location

18 3. RES Plans and Projects 3.1. Hydro Potentials and Projects (cont d) SHPPs Two tender procedures for construction of small HPPs (2008 and 2010) 13 concession agreements signed Planned construction of ~35 shpps, total installed power ~ 100 MW and planned annual production ~ 300 GWh Production starts in period 8 construction permits issued by relevant ministry based on 4 concession agreements Investment in shpps ~ 140 M Four energy permits and concession agreements for construction of shpps, by new procedure for construction of shpps installed power less than 1 MW, Hotel Ramada, Podgorica, 28 th June 2012 Location of water streams where concessions for construction of shpps are given

19 3. RES Plans and Projects 3.1. Hydro Potentials and Projects (cont d) SHPPs (cont.) Law for spatial planning and construction was adopted in 2008, updated in 2011 Obligation for municipalities to adopt spatial-urban plans Only few plans adopted - construction not possible where plan is not adopted Big problem for realization of small HPPs cca 2 years of delay for realization of projects tender Water stream Municipality # shpps Bistrica Berane 8 Šekularska Berane 5 Bistrica Bijelo Polje 2 I Bjelojevićka Mojkovac Crnja Kolašin 3 Zaslapnica Nikšić 2 Grlja Plav 1 Babinopoljska Plav 2 II 2010 Vrbnica Plužine 2 Tušina Šavnik 4 Trepačka rijeka Andrijevica 1 Murinska rijeka Plav 2 Komarača Plav 1 Different colors in Table mean: projects with constriction permit/s problem in realization of project in the process of preparation of technical documentation no spatial plan for project to start

20 3. RES Plans and Projects 3.2. Wind Power Projects Two contracts for leasing state land and construction of wind farms were signed in 2010 (WPP Krnovo and WPP Možura) WPP Krnovo - Mitsubishi Heavy Industries-Ivicom Consulting (JAP-AUT) WPP Možura Fersa Celebic (ESP-MNE) Developing phase of WPP projects: Connection to electricity network Environmental impact assessment Study of integration of wind farms into electricity system of MNE (CGES-EBRD) WPP Možura Krnovo Munic. Ulcinj Bar Nikšić Šavnik Wind Gen. [MW] No. of units Hotel Ramada, Podgorica, 28 th June 2012 Investment [M ] Location of two Wind Farms Installed power [MW] Production [GWh] ~70 46 ~ ~ ~160

21 3. RES Plans and Projects 3.3. Biomass Projects Woody Biomass District heating on woody biomass, also micro system Pljevlja, installed power 18 MW th Mojkovac, Berane, and Kolasin Capacity for production of pellets and briquettes in Pljevlja ( t ann ), Brezna ( t ann ) and Bijelo Polje (700 t ann ) Landfill gas in Podgorica Hotel Ramada, Podgorica, 28 th June 2012 Other Biomass Cogeneration power plant on landfill gas in Podgorica Capacity for production of biquettes in Plantaže Podgorica Energy permit for power production from biogas from animal residues, ~560 kw, Podgorica Sawdust hill in Brezna

22 3. RES Plans and Projects 3.4. Solar Projects High insolation in Montenegro central and southern region (ex. Podgorica 1600 kwh/m 2 ) Registry of potential locations for Example: Solar project rural and urban solar farms size 4 10 m 80 m, roof 8 o orientation west-east installed power: 414 kw P Solar zones in Municipalities of Ulcinj

23 OUTLINE 1. Stategic and Legislative Framework 2. National RES Target 3. RES Plans and Projects Hydro Wind Solar Biomass 4. Energy Infrastructure Transmission Electricity Network Distribution Electricity Network 5. Challenges and Potential Solutions 6. Conclusions Electricity Sector in Montenegro

24 4. Energy Infrastructure 4.1. Transmission Electricity Network Undersea Interconnection Line Italy Montenegro 375 km of undersea cable 1000 MW capacity HVDC bipolar cable, 2x500 MW Investment 700 M Project is developed in cooperation with TERNA (Italy) and CGES, Agreement on Project Completion was signed in November 2010 Start of operation

25 4. Energy Infrastructure 4.1. Transmission Electricity Network (cont d) Interconnection Lines and Transmission Lines in Montenegro Transmission electricity network in 2015 Line 400 kv Podgorica-Tirana was finished in 2011 Overhead Line 400 kv Montenegrin Coast - Pljevlja 90 M investment Detail spatial plan was finished in 2011 Substation on the cost Substation Brezna 400/110 kv for connection of WPP Krnovo and HPP Komarnica Interconnection lines to Serbia and BiH

26 4. Energy Infrastructure 4.2. Distribution Electricity Network Distributed Generation Sources Study for connection and commissioning distributed generation sources on electricity network in Montenegro, GEF-UNDP Recommendations for connection for distributed sources on electricity network Development of electricity network in rural area reach with high RES potentials Conncection of shpps of Bistrica on electricity network Example: Bistica (BE) Planned 8 shpps Installed power 10,2 MW Connection to the existing grid, investment 1,7 M

27 OUTLINE 1. Stategic and Legislative Framework 2. National RES Target 3. RES Plans and Projects Hydro Wind Solar Biomass 4. Energy Infrastructure Transmission Electricity Network Solar-thermal collectors in Tuzi Distribution Electricity Network 5. Challenges and Potential Solutions 6. Conclusions

28 5. Challenges and Potential Solutions 5.1. Characteristics of RES Projects in Montenegro Concession Law defines that hydro potentials is concession activity, and shpps are realizing through concession agreements, up to 30 years WPPs are realizing through contracts for leasing state land and construct wind farms, 20 years Most of RES projects are realizing though consortium of companies without prior collaboration Request by Government is: Project/Concession companies have to be established by Concessioner- Consortium Deadlines for phases are in Contracts HPP Piva

29 5. Challenges and Potential Solutions 5.2. Finance of RES Projects Corporative Finance Currently typical case in Montenegro Bank loan based on investor perofrmance o Historical performance o Prognosis o Managements Project Finance Bank Loan based on project data o Capital structure o Debt structure o Cash flow o Due diligence Solar plant on Orijen Mountian technical legal Project financing is a challenge to implement economic etc. considering existing legislation and signed agreements!

30 5. Challenges and Potential Solutions 5.3. Creating Ambient for Further Development Local governments with the most potential have financial issues and no capacity for development of sustainable energy projects Example of a solution: Sustainable energy development of Kolasin (NOR ) Implementation-technical body for planning and realization of RES and energy efficiency studies/projects in collaboration with local governments Coordination donors activities in energy sector at the local level Development of shpp projects on the territory of municipality Kolasin Other donors are welcome Natural resources KNOWLEDGE Finance MODEL??? Added Value (Electricity, Saving...) MODEL: Concession Public-Private Partnership Municipality only

31 5. Challenges and Potential Solutions 5.3. Creating Ambient for Further Development (cont d) Hydro potential is high, but there is no national registry of water use and potential in Montenegro (ground and underground) Example of a solution: Registry of small water streams in Montenegro (EBRD ) 1-year hydrological measurements of small water streams that could be used for construction of shpps On-line GIS registry of water streams and their characteristics Registry of small water streams in Municipality Bijelo Polje

32 OUTLINE 1. Overview of Energy Sector 2. National RES Target 3. RES Plans and Projects Hydro Wind Solar Biomass 4. Energy Infrastructure Transmission Electricity Network Distribution Electricity Network 5. Challenges and Potential Solutions 6. Conclusions Electric vehicles in Perast

33 6. Conclusions CONCLUSIONS Montenegro created clear regulative framework for development of RES projects RES plans, potentials and projects in pipeline in Montenegro are presented hydro, wind, biomass and solar Significant development of transmission electricity network is on-going Delevopment of electicity network for connection of distributed generation sources is necessary Main challenges for successful realization of RES projects are presented National implementation body for assuring sustainable energy development on the local level Montenegro is creating the ambient for sustainable economic development through further development of RES projects

34 Igor Kovačević Ministry of Economy Energy Sector ;