Future sustainable EU energy systems and the case of Cyprus Dr. Andreas Poullikkas Ph.D, D.Tech, FIET Chairman, Cyprus Energy Regulatory Authority Chairman, Cyprus Energy Strategy Council apoullikkas@cera.org.cy 0
Contents EU long term energy strategy Regulatory challenges for Cyprus EU electricity market target model EU gas market target model Energy cost 1
EU long term energy strategy 2
Future energy systems Climate change Third industrial revolution Future energy economics 3
EU energy objectives greenhouse gas reduction sustainable production and consumption competition in electricity and natural gas markets security of supply 4
Energy Union a binding EU target of at least 40% less greenhouse gas emissions by 2030, compared to 1990 a binding target of at least 27% of renewable energy use at EU level an energy efficiency increase of at least 27% the completion of the internal energy market by reaching an electricity interconnection target of 15% increase energy security (natural gas South Corridor) 5
Long term EU energy strategy (2050) A vision of carbon free EU Main ingredients of future sustainable energy systems: Large scale integration of renewable energy sources Distributed generation Carbon capture and storage Smartgrids Electric vehicles Storage devices Hydrogen Development of new sustainable technologies and infrastructure gas cooling gasifier coal compressor air inlet water acid gas gas removal and shift cleaning steam O 2 Air separat. unit N 2 syngas CO/H 2 combustion chamber CO2 compression exhaust heat recovery steam generat. steam turbine steam turbine pump generator ~ generator ~ condenser feed water 6
Current energy system 7
Future energy systems (optimistic scenario) 8
Future energy systems (optimistic scenario) 9
Future power systems Today Tomorrow: CCS, RES, DG and hydrogen storage, smartgrids Plug in vehicles Source: EC, 2007. 10
Regulatory challenges for Cyprus 11
EU electricity market target model 12
EU gas market target model 13
EU gas market target model The new uses for gas have different roles across the gas supply chain 14
Power-to-Gas (P2G) energy storage technology linking the electricity and gas infrastructure Output: hydrogen or synthetic methane Commercial deployment: used for absorbing curtailed renewable energy and acting as a balancing tool by electricity TSOs 15
Virtual pipelines LNG stations are supplied through trucks CNG stations are supplied either from the network or with LNG (L- CNG) Virtual pipeline: the supply chain transporting natural gas to final consumers in the form of CNG or LNG, using road and sea means of transportation, such as trucks, vessels and rail 16
LNG bunkering Supply chain is the same for applications in deep-sea trading and inland waterways LNG bunkering options: Ship-to-Ship (STS), Truck-to-Ship (TTS), Terminal-to-Ship (ΤPS) 17
Energy cost 18
Energy cost EU reference scenario 2016 Electricity generation cost ( 2013 /MWh) 19
CO 2 cost EU reference scenario 2016 ETS GHGs emissions (Mt CO 2 -eq) ETS carbon price ( 2013 /tco 2 ) 20
Power generation cost (year 2010)* CO2 trading cost Power generation cost ( c/kwh) O&M cost Fuel cost Capital cost Combined cycle with natural gas Wind Photovoltaics Concentrated solar power * Poullikkas A., 2010, The cost of integration of renewable energy sources, Accountancy 21
Power generation cost (year 2020-30)* Power generation cost ( c/kwh) CO2 trading cost O&M cost Fuel cost Capital cost Fully developed CCS systems and/or CO 2 trading scheme Fully developed RES promotion mechanisms Combined cycle with natural gas Wind Photovoltaics Concentrated solar power * Poullikkas A., 2010, The cost of integration of renewable energy sources, Accountancy 22
Power generation cost (year 2040-50)* Power generation cost ( c/kwh) Increased environmental cost Fully developed energy storage systems CO2 trading cost O&M cost Fuel cost Capital cost Combined cycle with natural gas Wind Photovoltaics Concentrated solar power * Poullikkas A., 2010, The cost of integration of renewable energy sources, Accountancy 23