Policy Reforms to Promote Energy Efficiency and Renewable Energy Investments in Croatia
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1 The Seminar on Policy Reforms to Promote Energy Efficiency and Renewable Energy Investments 7-9 October 2009, Geneva Policy Reforms to Promote Energy Efficiency and Renewable Energy Investments in Croatia Domagoj Validžić Head of RES Division 1
2 Primary Energy Supply Total primary energy supply in 2007: 416,78 PJ Electricity 5,5% Hydro power 10,1%, Natural Gas 27,4%, Liquid Fuels 45,5%, Biomass 3,2% Coal and Coke 8,1% 700 PJ Slika Ukupna potrošnja energije u Hrvatskoj Figure Total Primary Energy Supply in Croatia Total primary energy production in 2007 from own production was 46,9%, and total energy import was 53,1% Ugljen i koks - Coal and coke Drvo i biomasa - Biomass Tekuća goriva - Liquid Fuels Prirodni plin - Natural Gas Vodne snage - Hydro Power Električna energija - Electricity Obnovljivi izvori - Renewables
3 Primary Energy Future estimations Expected influences in future energy balance: More than 50% increase in energy consumption till 2030 Depleting reserves and increased prices of Crude Oil and Natural Gas Diversification of sources (gas to gas and oil to oil competition) Increased competitiveness of RES Expected energy balance in 2030: Production (40%): Renewables 23,6%, Hydro power 31,9%, Natural Gas 15,4%, Crude Oil 9,5%, Biomass 19,6% Import (60%) 3
4 RES in Croatia - general Significant potential wind, biomass, solar,... Best options for RES use in Croatia in terms of competitiveness and potential contribution to the national energy balance sheet: biomass heat plants and solar thermal collectors for heat production wind farms and biomass cogeneration for electricity generation liquid biofuels for transport Other RES technologies - geothermal energy for heat, small hydro, geothermal cogeneration and solar PV for electric energy generation 4
5 Croatian RES policy Regulatory framework 1. Directive 2001/77/EC on the promotion of electricity produced of electricity produced from RES in the internal electricity market 2. Directive 2003/30/EC on the promotion of the use of biofuels or other renewable fuels for transport 3. New Directive 2009/28/EC RES target RENEWABLE ENERGY SOURCES Programs, measures projects 1. Governmental 2. Regional/local selfgovernment 3. National energy programmes Economic instruments 1. Fund for Environmental Protection and Energy Efficiency 2. State aids 3. Special EU&inerntl. projects: CARDS, IPA, CIP/IEE, GEF-UNDP-WB, CBRD 5
6 Competent authority RES EE monitors implementation and compliance with set targets for RES and CHP Environmental Protection and Energy Efficiency Fund financing preparation, implementation and development of programs, projects and similar undertakings in the field of RES and EE Croatian Energy Regulatory Agency responsible for granting energy permits and granting the status of eligible producers Croatian Energy Market Operator responsible for the collection and distribution of incentives and concluding contracts on buy-out of electricity with eligible producers that realised the right to incentives The System Operators responsible for connecting and taking deliveries of electricity from RES and CHP 6
7 RES: Legislative framework The Energy Act The Electricity Market Act The Act on the Regulation of District Heating Conditions for Energy License TheTarif Systems General Conditions for Supply of Electricity The Tariff System for the Production of Electricity from RES and CHP Ordinance on the Use of RES and CHP The Regulation on the Minimum Share of Electricity Produced from RES and CHP whose Production is Incentivized The Regulation on Fees for Promoting Electricity Production from RES and CHP Ordinance on Acquiring the Status of an Eligible Electricity Producer 5 sublaws OG 33/07 OG 67/07 Grid Rules The Ordinance on the Amount of the Fee for Connection Market Rules Ordinance on Privileged Status - H PSTE Regulati on on Minimum Share PSTE Biofuel Law Supporting sublaws 7
8 Registry of projects and plants for use of RES and CHP as excellent tool for sustainable energy consumer community monitoring reporting for foreu EU business community REGISTRY OF OF RES&CHP E/T/B E/T/B focal focal point point for for policy policy for for RES&CHP RES&CHP regional and and local local self-government media media public public national authorities companies institucion (scientific, educational ect.) ect.) development agencies spatial spatial planing 8
9 Actual status according to RES About 247 projects Geothermal power plants; 1; 0% Power Plants On Landfill Gas And Gas From Plant For Waste Water; 2; 1% Solar power plants; 46; 12% windparks; 180; 47% cogeneration; 12; 3% Small hydro power plants 97; 26% ; Biofules plants; 22; 6% Biomass plants; 19; 5% issued: 240 PEA, 23 EA i 11 registration Registry OIEKPP:
10 Web site 10
11 Energy efficiency in Croatia One of the strategic goals is improvement of energy efficiency in every part of energy sector Primary energy intensity in Croatia is much higher then EU-15 average (approximately 20 %) significant potentials for improvements! 11
12 Croatian EE policy - overview Regulatory framework 1. Directive on energy end-use efficiency & energy services ESD 2. Directive on the energy performance of buildings EPBD 3. Labelling of appliances Directive & Implementing Dir. 4. Cogeneration Directive (CHP) 5. Framework Directive on Eco-design 6. Minimum efficiency requirements 7. Energy Star Progr. ENERGY EFFICIENCY Programs, measures projects 1. Governmental 2. Regional/local selfgovernment 3. National energy programmes Economic instruments 1. Environmental Protection and Energy Efficiency Fund 2. State aids 3. Special EU&inerntl. projects: CARDS, IPA, CIP/IEE, GEF- UNDP-WB, CBRD 12
13 Labelling of household appliances transposed into the Croatian legislation through The Ordinance on energy efficiency labelling of household appliances (OG 130/07) 13
14 Legislative and institutional briefly Act on Efficient End-use of Energy already adopted and enforced Secondary (implementing) regulation to be implemented in 2010 especially regulation on energy audits, M&V, IT system for monitoring energy savings and energy performance contracting in public sector Institutional setup EE policy implementation responsibility of the Ministry and EE Unit within the Environmental Protection and Energy Efficiency Fund 14
15 Goals and outcomes of EEPRoC To obtain a well-documented EE strategy for Croatia: Definition of short-, medium- and long-term quantified goals for EE improvements on the national level and separately, for every sector Identification of and elaboration on all prerequisites necessary for successful implementation of defined action plan, including identification of key stakeholders and definition of their role and responsibilities; List of eligible measures for achieving defined goals for every end-use sector: residential, services, industry, transport; Giving guidelines for monitoring and verification of achieved results in energy savings and reduction of greenhouse gasses. 15
16 Cross-sector and horizontal measures Coordination of energy efficiency and climate change policy: ensuring consistency between EEPRoC and National Strategy for implementation of UNFCCC and Kyoto protocol introduction of EU - ETS Coordination of energy efficiency and RES policy: development of Action plan for RES Taxation: comprehensive study and recommendations for usage of taxation systems for energy efficiency improvements Promotion of innovative financing modes: investigation of potentials for development of ESCO models and 3rd party financing Research & Development: evaluation of up-to-date activities and identification of needs for new projects
17 Cross-sector and horizontal measures Education: inclusion of EE in education programmes for primary and high schools and universities Info campaigns Auditing programmes: training programmes for energy auditors Energy efficiency in buildings: strengthening inspection capacities Appliance labelling: info campaign strengthening State inspectorate capacities, annual public reports Energy consumption metering and informative billing: prescribing the obligation for informative billing in the Act on efficient energy use determination of remaining barriers for individual metering and adoption of legal framework
18 Allocation of national target to end-use sectors Construction 3% Agriculture 4% Services 11% Total PJ Industry 22% Construction 3% Agriculture 4% Services 12% Industry 13% Households 30% Transport 30% Households 34% Transport 34% Energy used by sectors as a percentage of total final energy consumption Energy used by sectors as a percentage of energy consumption within ESD
19 Further activities Removal of the remaining key barriers within RES authorisation procedures, repair the related RES-Esub-laws Development and enactment of the secondary legislation and incentives for RES to heating/cooling systems: sollar thermal, biomass/pellet boiler, heat pumps Participation in EU programe and projects (IPA, INTEREG, CIP- IEE 2 etc) and int. cooperation UNDP/WB Enhancing administrative and institutional capacity in field of EE and RES, in particular in the Ministry Development of guarantee of origin and green certificates scheme Promotion and education, increase of public awareness Consideration and development of the new support schemes (green certificates, white certificates, cost effective aproach etc.) after 2010 following the new RES targets by 2020
20 View Forward EE RES requires policy support, especially in countries with not developed culture of energy efficiency, such as countries of South East Europe Consideration of establish of the Centre of Exellence of Energy Efficiency and Renewable Energy in order to spread best-practice EE & RE policy and implementation concepts in Energy Community The current development stage of EE market is the starting point for creation of policy instrument mix Policy instruments have to trigger market transformation move the EE market from the deadlock, i.e. to stimulate the demand for EE products and services Underdeveloped EE markets are characterised by the lack of demand caused by lack of information and awareness the need for strong information and education campaign for the wide public! 20
21 Key issue: Information and Education EE Corner - Varaždin: 21
22 VE Krtolin 11,95 MWe 22
23 Thank you for your attention! Further information Tel: Fax: domagoj.validzic@mingorp.hr 23
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