how can a competitive market for renewable energy be improved? · 2015-12-02 · perspectives and...

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This project is part of the International Climate Initiative (IKI). The German Federal Ministry for the

Environment, Nature Conservation, Building and Nuclear Safety (BMUB) supports this initiative on the

basis of a decision adopted by the German Bundestag.

Perspectives and challenges for renewable energy deployment in UNECE Region.

UNECE Committee on Sustainable Energy, 24th session, 18. - 20. November 2015, Geneva

Oliver Frank, Head of Division Renewable Energy and Energy-Efficient Mobility

Deutsche Energie-Agentur GmbH (dena) - German Energy Agency

How can a competitive market for

renewable energy be improved?

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Insights.

How can a competitive market for renewable energy be improved? 19.11.2015

• Objectives of the report.

• Analytical background: Structure matters!

• Overview: Access to electricity market and promotion schemes in force.

• Status of technology development in UNECE Region.

• Case studies.

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Objectives of the report.

19.11.2015

• Different mechanisms and instruments promote the introduction of renewable energies.

• However, underlying political, economic, technical and social key factors determine the

initial situation of each energy market and have a strong influence on the future

perspectives of each technology and field of application.

• Against this background, the report

• examines the status of selected technologies and applications in all UNECE member

states and policy instruments in force as well as trends in international RE

development.

• gives an overview of which policies and measures may work in different contexts.

• Furthermore, case studies from six selected countries (Albania, France, Germany,

Kazakhstan, Turkey, USA ) highlight lessons learned and future challenges as well as

possible strategies or pathways.

• Proposals: Activities to exchange best practices within UNECE GERE.

How can a competitive market for renewable energy be improved?

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Structure matters: There is not the „one blueprint“ for

successful energy transition.


Sourc

e: d

ena.

5

Example: Average prices for private households (incl. taxes).


Albania Armenia

Austria

Azerbaijan

Belgium

Bosnia & Herzegovina

Bulgaria Canada

Croatia

Cyprus

Czech Republic

Denmark

Estonia Finland

France

Germany

Greece

Hungary Iceland

Ireland

Israel

Italy

Kazakhstan

Latvia

Liechtenstein

Lithuania

Luxembourg

Macedonia

Malta

Montenegro

Netherlands

Norway Poland

Portugal

Romania

Russia

Serbia

Slovakia Slovenia

Spain

Sweden

Switzerland

Turkey

Ukraine

UK

USA

Uzbekistan

Average x: 24954 y: 14.38

0

5

10

15

20

25

30

1.000 4.000 16.000 64.000

€c/kWh (2014)

GDP/capita [€] (2014)

OECD

Non OECD

Data

sourc

es: E

uro

sta

t, World

Bank a

nd o

ther.

6 19.11.2015

Example: Average electricity prices 2014 (incl. taxes).

non OECD non OECD

Total

Total

OECD

OECD

0

2

4

6

8

10

12

14

16

18

20

Household Averages Industry Averages

€c/kWh

How can a competitive market for renewable energy be improved?

Data

sourc

es: E

uro

sta

t and o

ther.

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Policy landscape: market access and promotion schemes.


Measures UNECE member countries that

have measures in force*

Official expansion goals 44

Grid access 30

Grid access with capacity limits 12

Priority feed-in for renewables 27

Feed-in tariff or premium 41

Renewable Portfolio Standard / Quota System 11

Green certificates 10

Auctions 11

Tenders 14

Net Metering / Net Billing 11

Investment incentives / tax benefits / subsidies 44

*Not included: Andorra, Liechtenstein, Monaco, San Marino

Sourc

e: d

ena a

nd o

ther.

8

Status of Photovoltaics in UNECE Region.


Luxembourg

Macedonia Malta

Netherlands

Norway

Poland

Portugal

Romania

Slovenia

Spain

Sweden Switzerland

Turkey UK US

Belgium

Bosnia & Herzegovina

Bulgaria

Canada

Croatia

Cyprus

Denmark

Austria

Czech Republic

Finland

France

Germany

Greece

Hungary

Italy

Lithuania

Serbia

Slovakia

Ukraine

1 %

10 %

100 %

1000 %

0,01 % 0,10 % 1,00 % 10,00 %

CA

GR

20

11

-14

Share of total generation capacity

Diameter of bubbles

corresponds to total

capacity in 2014 OECD

Non OECD

Strong market

development

High share

Data

sourc

es: IR

EN

A, E

IA a

nd o

ther.

9

Status of Wind-Onshore in UNECE Region.


Luxembourg

Netherlands

Norway

Poland

Romania

Spain

Sweden

Turkey UK

US

Azerbaijan

Belgium

Bulgaria

Canada

Croatia

Cyprus

Denmark

Austria

Czech Republic

Estonia

Finland

France Germany

Greece

Hungary

Ireland Italy

Latvia

Lithuania

Portugal

Ukraine

-5 %

0 %

5 %

10 %

15 %

20 %

25 %

30 %

35 %

40 %

45 %

50 %

1 % 1 % 2 % 4 % 8 % 16 % 32 %

CA

GR

20

11

-14

Share of total generation capacity

0,5

Diameter of bubbles

corresponds to total

capacity in 2014

OECD

Non OECD

Strong market

development

High share

Data

sourc

es: IR

EN

A, E

IA a

nd o

ther.

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Case study: Turkey.


• Share of renewable energies in total power generation: 4 % of total power generation (excl.

hydropower, 2013).

• Technologies: Mainly hydro, wind and PV, other resources play a minor role; 1 GW of geothermal

capacity for heat generation.

• Latest policy developments: Renewable Energy Action Plan, based on several previous

strategic guidelines:

• Feed-in tariff (Currency USD) and Net-metering

• Local content

• Legal framework for private sector electricity generation

• Tenders

• January 2015 release of 2015-2019 Strategic Plan, aims at fostering even more private sector

investment

• Challenges / Outlook:

• Bring Turkey’s energy strategy in line with the EU’s 2009 Renewables Directive

• Turkey’s grid needs more technical and administrative measures to guarantee grid connection for

increasing number of large scale RE

• Continuous monitoring of level of FiT and its structure

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Case study: Kazakhstan.


• Share of renewable energies in total power generation: 0.62 % (excl. hydropower, 2014).

• Technologies: Mainly hydro, 50 MW of wind, 35 MW of PV; no RE heat (excl. traditional bioenergy).

• Latest policy developments: Presidential edict “On the Concept of the Transition of The Republic

of Kazakhstan to a Green Economy”

• RE targets

• FiT

• RE producers exempt from paying for transmission

• Grid operators (electricity and heat) have to offtake any renewable energy generated

• Financial support programme for small-scale RE systems

• Challenges / Outlook:

• Currently very low share of “new” RE

• Absence of pilot and reference projects

• Lack of experience in implementing RE projects, with offtake contracts and financing

• Little social acceptance

• Uncertainty about the development of tariffs

• No technical norms or quality control systems for the use of RE

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Thank you for your attention!


Oliver Frank

Head of Division Renewable Energy and Energy-Efficient Mobility

Deutsche Energie-Agentur GmbH (dena) - German Energy Agency

Chausseestraße 128 a, 10115 Berlin, Germany

Tel: +49(0)30 72 61 65-680

Fax: +49(0)30 72 61 65-699

E-Mail: [email protected]

Internet: www.dena.de

how can a competitive market for renewable energy be improved? · 2015-12-02 · perspectives and...

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