Policy framework for promoting biomass in Austria Dipl. Ing. Gottfried Lamers Federal Ministry for Agriculture, Forestry, Environment and Water Management Seite 1 28.02.2011
Content Status Goals Achieving the goals Norms and legislation Subsidies households Industry and enterprises Effects Seite 2 Gottfried Lamers
Status Seite 3 Gottfried Lamers
Status in Austria Source: http://www.umweltnet.at/article/articleview/80548/1/7068 Gross inland consumption 2008: 302.372 GWh Development: Increase to 2007: 0,3% Share of renewable energy on the gross inland consumption 2008: 26,6% = 86.704 GWh Development: Increase to 2007: 1,2 % Energy consumption per sector Agriculture Industry Private households Services Traffic Seite 4 Gottfried Lamers
Gross electricity generation by source Seite 5 Gottfried Lamers
Renewable energy by source Development Hydro 44,8 % constant Biomass solid 38,5 % constant Biomass liquid (bio fuels) 6,0 % increasing Waste incineration 4,4% increasing Wind 2,3 % constant Thermal solar power 1,5 % increasing Heat pumps 1,4 % increasing Biomass gas 0,6 % increasing Geothermal energy 0,2 % constant Sewage gas 0,1 % constant Photovoltaic solar power 0,02 % increasing Seite 6 Gottfried Lamers
Goals Seite 7 Gottfried Lamers
Kyoto goal http://www.umweltbundesamt.at/publikationen/publikationssuche/publikationsdetail/?&pub_id=1800 Increase of 11,3 % instead reduction Deviation from the goal: 19,2 Mio. t Seite 8 Gottfried Lamers
Goals for Austria Kyoto goal: 13 % reduction of climate relevant emissions (= 16 Mio. t CO2) for the period 2008 2012 (reference year: 1990) Renewable energy directive 2020 of the EU (20 % reduction of climate relevant emissions, 20 % increase of energy efficiency, 20 % more renewable energy) Austrian commitment to the EU goals: 16 % increase of energy efficiency (reference year 2005) 34 % renewable energy Seite 9 Gottfried Lamers
Renewable energy in the EU http://www.eea.europa.eu/publications/eea_report_2008_6 Seite 10 Gottfried Lamers
Achieving the goals Norms and legislation Bio fuels Construction norms Subsidies Households Green tariffs Fossil district heating Environmental subsidies Seite 11 Gottfried Lamers
Norms and legislation Traffic: share of biofuels within the sold fuels (earlier than requested by EC) Bio fuels made of domestic crops (mainly sugar beet, wheat, corn) Households: Energy efficiency norms for new buildings Implementation by the regions Tends towards low energy and passive house standard for new buildings Seite 12 Gottfried Lamers
Subsidies Insulation and renewable energy in existing residential buildings Green electricity act Fossil energy district heating and cooling act Environmental subsidy act Biomass district heating Renewable energy for enterprises Seite 13 Gottfried Lamers
Subsidies for private households New houses Strict licensing criteria for new buildings Insulation criteria Request for solar heating Reconstruction of existing buildings Insulation New windows Fuel switch towards renewable energy systems Managed by the 9 Austrian regions Different priorities by region but common commitment regarding the goals In total approx. 2 bn per year as subsidies Strong driver towards insulation, solar and biomass Seite 14 Gottfried Lamers
Heating demand by households Two contradictorily trends comfort environment Reduction of the energy demand primarily by Mittlere thermisch-energetische Sanierungsraten insulation Main driver for the increased efforts in insulation is the subsidy. Subsidy rate for privates up to 50 % Seite 15 Gottfried Lamers
Heating technologies of households 2,2 Mio. central heating systems 22 % wood 35 % oil (decreasing) 40 % natural gas Fast increase of pellets fired heating systems (11.100 new installations) Seite 16 Gottfried Lamers
Green electricity act Law in force since 1. 1. 2003 with several amendments Compulsory share of renewable energy in the electricity production Electricity companies may raise their prices and shift the financial burden to the end consumer Feed in tariff is fixed for 13 years (15 for technologies which depend on natural resources) Different tariffs by technology, size and type of resource Seite 17 Gottfried Lamers
Development of installations: Example Biomass http://www.e-control.at/de/econtrol/news/aktuelle-meldungen/oekostrombericht-2009 Seite 18 Gottfried Lamers
Environmental Funding system of the Ministry for Agriculture, Forestry, Environment and Water Management Seite 19 Gottfried Lamers
Environmental subsidy act First parts of the act since the 50ies Contains 4 different subsidy schemes (with own guidelines) Water management (water supply, waste water treatment, waste water treatment for enterprises) Remediation of old dumping sites Joint implementation/clean development mechanism Environmental support in Austria Administration of the subsidies by Kommunalkredit Public Consulting (www.public-consulting.at) Appraisal, preparation for committee and minister, contract, payment and control Seite 20 Gottfried Lamers
Austrian federal system of environmental support We have four sections in our funding system: Water Management fund Recultivating of contaminated sites Joint implementation/clean Development mechanism (own presentation) Environmental fund Seite 21 Gottfried Lamers
Goals of the environmental fund Money provided 1993-2009: 803 M grants for 18.462 projects and leveraging 4.175 M of investments Main goal: CO2 reduction Increasing budget 2005 2007 to 90 M per year Stable budget in the last years Additional budget for insulation of houses and enterprise buildings (economic recovery package) Seite 22 Gottfried Lamers
Beneficiaries Private companies (no municipalities) Competition rules of the EU Restrictions on the aid intensity, pay back conditions and eligible costs Seite 23 Gottfried Lamers
Management of the funds since 1993 All funds are managed by the Kommunalkredit Public Consulting (KPC) on behalf of the minister Kommunalkredit took over the tasks and the staff of the Funds 1993 (privatisation) KPC is a daughter of the Kommunalkredit Austria GmbH (founded 2003) Kommunalkredit is a bank, specialised in communal financing Rights and duties of the KPC are laid down in a contract with the Ministry Seite 24 Gottfried Lamers
Appraisal Applicant hands in the application to the Administration unit (KPC) reports (technical, economical, ecological) on projects to an Consulting body (interministerial committee) which gives advices to the Minister for approval. Seite 25 Gottfried Lamers
Administration Minister approves Administration unit (KPC): contract and payment, Beneficiary submits bills and reports on the fulfilment of the contract and the ecological success Administration unit (KPC) controls these reports Ministry controls the KPC Seite 26 Gottfried Lamers
Some of the funded technologies Seite 27 Gottfried Lamers
Funding policy Annual budget: 90,238 M 98 % of all funded projects are climate relevant Approx. 25 different priorities (with own information sheets and application forms Constant improvement of the cost benefit ratio of the subsidy per ton CO2 over the life time of the technology. Increased 2009 up to 10,9 /t Seite 28 Gottfried Lamers
Non-investment funding 5 % of the total budget is spent in consultancy programmes Intension: To mobilize those who don't even know that they have a problem Reason: The investment programme influences and attracts enterprises which have already a solution (after recognising that they have a problem) 2 programme lines Klima:aktiv: Climate programme with 23 modules under on programme management (Austrian Energy Agency) Regional programmes: In 7 (out of 9) Austrian provinces broad (and very different) programmes are financed Seite 29 Gottfried Lamers
Klima:aktiv 4 Categories, 23 modules In total about 4,5 M per year Cooperation with regional governments and economic partners Target group different by programme content Enterprises are target groups in: Ecofacility (energy efficiency in business buildings) Energy efficient enterprises e5 municipalities (for municipal enterprises) Solar energy Biogas Biomass heating in enterprises Quality management of biomass district heating Seite 30 Gottfried Lamers
Quality management of biomass district heating History of trial and error in the field of biomass district heating Good technical but bad economic performance of the financed projects. Common development of technical basics together with Germany and Switzerland. Requirement to hire a quality manager (one of the list of planners with special education) Forced discussion between QM and planner to avoid mistakes Funding administration relies on the comments of the QM. Increase of economic revenues by improved planning Ministry finances the programme management and defines the requirements but no additional financing of the QM. Seite 31 Gottfried Lamers
Results Seite 32 Gottfried Lamers
Macroeconomic revenues of RES Turnover of RES technologies: investment - operation Seite 33 Gottfried Lamers
Employment effects of RES Jobs, created by RES technologies: investment - operation Seite 34 Gottfried Lamers
Employment effects of biomass subsidies Due to an analysis of the economic research institute the effects of the subsidy is positive to the federal budget In total the 90 M created (or saved) approx. 11.500 jobs In the sector of biomass in 2004 a total amount of 43,6 Mio. (2009: 42 M ) leveraged: investments: 190,6 Mio. (2009: 238 M ) Job creation: 2.532 jobs Direct tax income: 42,7 Mio. Indirect tax income: 3,2 Mio. Seite 35 Gottfried Lamers
Technology: biomass heating Seite 36 Gottfried Lamers
Technology: biomass district heating http://www.landwirtschaftskammer.at/ Seite 37 Gottfried Lamers
Added value for the forestry sector http://gpool.lfrz.at/gpool/main.cgi?catid=13733&rq=cat&catt=fs&tfqs=catt 2008: 21,8 Mio. harvesting meter Increase to 2007: + 2,2 % Increase in 10 years average: + 29,8 % Even higher increase in small forestry enterprises ( + 35,1 %) Seite 38 Gottfried Lamers
Wood required for energy production Seite 39 Gottfried Lamers
Added value for the regions http://www.noel.gv.at/service/wst/wst6/energie/download/energiebericht.pdf Added value for the agricultural sector because of increased wood harvest and wood markets Wide regional distribution Secures income in rural areas Seite 40 Gottfried Lamers
Added value for enterprises and technology development www.energies-renouvelables.org/observ-er/stat_baro/observ/baro169.pdf Strong home market secures the basis for technologic development Subsidies close the gap between science, demonstrati on and marketable product Important sector of the Austrian economy (global player) Seite 41 Gottfried Lamers
Thank you for your attention Biomass CHP and Biomass district heating (2006) Seite 42 Gottfried Lamers