power to the people promoting micro-investment in distributed generation in the european union

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Power to the People Promoting Micro-Investment in Distributed Generation in the European Union Final Presentation Spring 2007 Faculty Advisor: Professor Sara Tjossem Shannon Binns, Juan Pablo Osornio, Leyla Pourarkin, Vanessa Peña, Sara Roy, Jeff Smith, Rebecca Smith, Sam Wade, Sarah Wilson and Melissa Wright

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Power to the People Promoting Micro-Investment in Distributed Generation in the European Union Final Presentation. Faculty Advisor: Professor Sara Tjossem Shannon Binns, Juan Pablo Osornio, Leyla Pourarkin, Vanessa Pe ñ a, Sara Roy, Jeff Smith, Rebecca Smith, - PowerPoint PPT Presentation

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Page 1: Power to the People Promoting Micro-Investment in  Distributed Generation in the European Union

Power to the People

Promoting Micro-Investment in Distributed Generation in the European Union

Final Presentation

Spring 2007

Faculty Advisor: Professor Sara Tjossem

Shannon Binns, Juan Pablo Osornio, Leyla Pourarkin, Vanessa Peña, Sara Roy, Jeff Smith, Rebecca Smith,

Sam Wade, Sarah Wilson and Melissa Wright

Page 2: Power to the People Promoting Micro-Investment in  Distributed Generation in the European Union

Notre Europe – Power to the People

Outline

What?What?

Why?Why?

How? How?

Promotion of community-owned and small scale distributed generation

Promotion of community-owned and small scale distributed generation

Importance of distributed generation for EU energy policyImportance of distributed generation for EU energy policy

Policy recommendationsPolicy recommendations

Page 3: Power to the People Promoting Micro-Investment in  Distributed Generation in the European Union

Notre Europe – Power to the People

What is Distributed Generation?

Promoting electricity generation

that is:

• Decentralized

• Small-scale

• Grid-connected

• Owned by communities or individuals

Promoting electricity generation

that is:

• Decentralized

• Small-scale

• Grid-connected

• Owned by communities or individuals

++ ++

Page 4: Power to the People Promoting Micro-Investment in  Distributed Generation in the European Union

Notre Europe – Power to the People

Distributed Generation

Technologies

Wind

Photovoltaic

CHP-BiogasMicro hydro

What is Distributed Generation?

Page 5: Power to the People Promoting Micro-Investment in  Distributed Generation in the European Union

Notre Europe – Power to the People

◊ Decentralized electricity markets

◊ Small scale generation

◊ Cleaner technologies

◊ Decentralized electricity markets

◊ Small scale generation

◊ Cleaner technologies

◊ Centralized electricity markets

◊ Large scale generation

◊ CO2 intensive

◊ Centralized electricity markets

◊ Large scale generation

◊ CO2 intensive

Why Distributed Generation?Context

The Current SituationThe Current Situation

The Future Energy MixThe Future Energy Mix

Page 6: Power to the People Promoting Micro-Investment in  Distributed Generation in the European Union

Notre Europe – Power to the People

Why Distributed Generation?

Drivers

Climate changeClimate change

Failure of traditional grid

Failure of traditional grid

Energy securityEnergy security

Scalable, flexible & stable

Scalable, flexible & stable

Renewable energies

Renewable energies

Cleaner technologies

Cleaner technologies

EU ConcernEU Concern Benefits of DG Benefits of DG

http://www.power-technology.com

CO2

http://jamestown.org EU energy policy harmonizationEU energy policy harmonization

Page 7: Power to the People Promoting Micro-Investment in  Distributed Generation in the European Union

Notre Europe – Power to the People

Wind

Biomass

Examples of Distributed Generation in the EU

Page 8: Power to the People Promoting Micro-Investment in  Distributed Generation in the European Union

Notre Europe – Power to the People

Pantperthog villageWales, UK

1. Wind Turbine in the UK

Driving Policy

Grants

Bro-Dyfi Community Renewables Ltd

Benefits:•CO2 reduction•New source of

revenue•Awareness and

education

•Launched: April 2003•Development time: 3.5

years•Capital cost: € 118,000

Grants58%

Shares42%

Page 9: Power to the People Promoting Micro-Investment in  Distributed Generation in the European Union

Notre Europe – Power to the People

Jühnde, Germany

2. Biomass in Germany

Driving Policy

Feed-in tariff Benefits:

•CO2 reduction: - 60%•New source of

revenue•Pollution control

•Launched: April 2005•Development time: 5 years•Capital cost: € 5 million

Jühnde Bioenergy Village

Grants & Subsidies

70%

Shares 21%

Public Funds 9%

Page 10: Power to the People Promoting Micro-Investment in  Distributed Generation in the European Union

Notre Europe – Power to the People

◊ Cost and access to funding

◊ Excessive red tape

◊ Inconsistent policies

◊ Cost and access to funding

◊ Excessive red tape

◊ Inconsistent policies

Lessons Learned

Key Factors for SuccessKey Factors for Success

BarriersBarriers

◊ Incentives necessary for economic feasibility

◊ Information and third-party help

◊ Incentives necessary for economic feasibility

◊ Information and third-party help

‘It shows how normal people can make a difference’

Mr. Fangmeier, Jühnde biogas plant manager

‘It shows how normal people can make a difference’

Mr. Fangmeier, Jühnde biogas plant manager

Page 11: Power to the People Promoting Micro-Investment in  Distributed Generation in the European Union

Notre Europe – Power to the People

Microgeneration strategy

Essential Components for Distributed Generation

Community programs

Kyoto targets

Information sharing

Renewable targets

Research and

Development

Green building

Education

www.eolfi.fr

Indirect Promotion

DirectPromotion

Page 12: Power to the People Promoting Micro-Investment in  Distributed Generation in the European Union

Notre Europe – Power to the People

EU Policies – Local Impacts

Ensure economic feasibility

Ensure economic feasibility

Incentives Commitment

Commit through

long-term policies

Commit through

long-term policies

Promote micro-

investments

in DG

Promote micro-

investments

in DG

Page 13: Power to the People Promoting Micro-Investment in  Distributed Generation in the European Union

Notre Europe – Power to the People

Mature market

Full capture of

carbon value

Market start-up

• Grants

• Information

• Voluntary codes

• Targets

Market transformatio

n

• Mandatory standards

• Increased targets

•Feed-in tariffs•Green credits

Time

Market penetration

Adapting Policies to National Contexts

Page 14: Power to the People Promoting Micro-Investment in  Distributed Generation in the European Union

Notre Europe – Power to the People

Recommended Policy Samples

“Member States shall…“Member States shall…

…designate competent bodies to certify organizations…’’…designate competent bodies to certify organizations…’’

…adapt their existing support schemes to benefit small scale generators…”…adapt their existing support schemes to benefit small scale generators…”

Page 15: Power to the People Promoting Micro-Investment in  Distributed Generation in the European Union

Notre Europe – Power to the People

Summary

Electricity markets are rapidly changing

Electricity markets are rapidly changing

DG must be part of the electricity

picture

DG must be part of the electricity

picture

EU policies are essential to promote DG

EU policies are essential to promote DG

Page 16: Power to the People Promoting Micro-Investment in  Distributed Generation in the European Union

Notre Europe – Power to the People

Thank you!

Shannon Binns, J.P. Osornio, Vanessa Pena, Leyla Pourarkin, Sara Roy, Jeff Smith, Rebecca

Smith, Sam Wade, Sarah Wilson

Client: Stephen Boucher, Notre Europe

Faculty Advisor: Professor Sara Tjossem