Promotion of Heating and Cooling fromRenewable Energy Sources in Mediterranean Countries

Renewable Heating obligations on new buildings: Spain on the forefront of European development

Rome, may 25th, 2007

P. Polo Amblar

Solar Thermal Industry Association, Spain

IndexIndex

An Encouraging Future for Solar ThermalThe Spanish Plain of Renewable Energies, PER 2005-2010

CTE, Technical Building Code

CTE Challenges

Opportunities of FulfilmentPER 2005-2010Economic Impact

Introduction to ASIT

Solar Solar ThermalThermal in in thethe PER:PER:AnAn EncouragingEncouraging FutureFuture

Capacity of solar thermal collectors Capacity of solar thermal collectors installed in Spain, 1998installed in Spain, 1998--20052005

261.800 341.300 363.900 405.400 461.000 522.900 602.100 688.700 795.500

4.901.000

0

1000000

2000000

3000000

4000000

5000000

6000000

M2 installed/year 22.600 41.500 55.600 61.900 79.200 86.600 106.800

M2 accumulated 261.800 341.300 363.900 405.400 461.000 522.900 602.100 688.700 795.500 4.901.000

1990 1998 1999 2000 2001 2002 2003 2004 2005 2010

•source IDAE 2006

Growth in the last 7 years, 15%

Solar Solar ThermalThermal in in thethe PER: PER: MarketMarket DevelopmentDevelopment ForecastForecast (*)(*)

(*) Review ASIT

• Source: ASIT• Ratios used:

•16,64 Employs/MM€ inverted• 3.114 M€ inverted <> 4.212.500 M2 installed in the period• Prices/M2 installed include Mantenance Services (+50 €/M2)

Solar Solar ThermalThermal in in thethe PER: PER: EmploymentEmployment ProjectionProjection ForecastForecast

Solar Thermal in theTechnical Building Code

(CTE)

Royal Decree 314/2006, 17th of March

CTE: CTE: TechnicalTechnical BuildingBuilding CodeCodeThe CTE became official on 29th March 2006.

A voluntary application period was established for 6 months regarding energy savings and fire safety.

Therefore, since 29th September 2006, new construction projects and/or reforms of existing buildings for any use with hot water or swimming pool heating, must have provisions for solar thermal energy (Min. 30%, Max. 70%).

CTE CTE The CTE will establish the following basic quality requirements for buildings:

• Structural Safety• Safety in case of fire • Safety of utilization • Hygiene, Health and Protection of the environment • Protection against noise • Saving of energy and thermal isolation

The CTE defines and develops five basic requirements for energy saving:

• Basic Exigency HE1: Limitation of energetic demand

• Basic Exigency HE2: Efficiency of thermal installations

• Basic Exigency HE3: Energy Efficiency of lighting installation

• Basic Exigency HE4: Minimal solar contribution for sanitary hot water

• Basic Exigency HE5: Minimal photovoltaic contribution to electric power

CTE: “To envisage buildings that avoid energy demand”

CTE CTE

CTE CTE

According to the climatic zone of Spain and the different levels of hot waterdemand, the minimum solar contribution ranges between 30 % and 70 %

Basic Exigency HE4: Minimal solar contribution to sanitary hot water

CTE CTE

The minimum solar contribution could be justifiably diminished in thefollowing cases:

• When this energy contribution to domestic hot water is covered by the use of renewable sources of energy (biomass, geothermal…)

• When the location of the building does not afford sufficientexposure to the sun, owing to external barriers;

• Limitations derived from the applicable town planning legislation, • When so stipulated by the competent body that has to give an

opinion on historical and artistic protection.

Basic Exigency HE4: Minimal solar contribution to sanitary hot water

Solar Solar ThermalThermal in in thethe CTE:CTE:

ChallengesChallenges

ChallengesChallenges: :

The application of the CTE undoubtedly will open the path for new projects and applications of Solar Thermal, exercising a dragging effect that will help us to advance more rapidly and to overcometechnological challenges:

TheThe Solar Solar ThermalThermal in in thethe CTE: CTE: ChallengesChallenges (1)(1)

To train new technicians (designers, installers-maintenance staff and certifiers) To cover the spectacular growth expected in the demand of associated services

TheThe Solar Solar ThermalThermal in in thethe CTE: CTE: ChallengesChallenges (2)(2)

To obtain a full Architectural Integration of the Solar Thermal installations in the building, constituting one of the most important challenges that we must overcome to achieve a natural and full Social Integration of this technology.

TheThe Solar Solar ThermalThermal in in thethe CTE: CTE: ChallengesChallenges (3)(3)

To reach the technological symbiosis between equipments of the principal source of energy (solar) and of the auxiliary source, achieving the aims of saving in the energetic invoice of the Country and in that of the owner of the housing or building.

TheThe Solar Solar ThermalThermal in in thethe CTE: CTE: ChallengesChallenges (4)(4)

To facilitate the reduction of the costs, without resignation of the Quality, of the solar thermal installations in the building, resulting in savings thanks to an increase in the market and an improvement in technology. achieve competition with conventional sources of energy

TheThe Solar Solar ThermalThermal in in thethe CTE: CTE: ChallengesChallenges (5)(5)

Challenges, all of them, which overcoming only is possible to construct on the technical - economic consensus of:

The PromotersThe ArchitectsThe ManufacturersThe InstallersThe maintenance

EnergyEnergy SavingSaving in in thethe CTECTE

To achieve the objectives of the CTE, will be possible if:

“Practic” solutions and with con-firmed quality are installed,

Are submitted to a regular maintenance, and

Effective Procedures of Certification andfollowing-up are applied

so it is guaranteed to the Final User:

The effective Saving in the energeticinvoice of the housing

Key Issues for Renewable Heat in EuropeKey Issues for Renewable Heat in EuropeK4RESK4RES--HH

Project very useful, coordinated by ESTIF. Case studies:

Barcelona: The municipal solar obligation of 2001, its implementation and its revision in 2006 (Barcelona Energy Agency).

Madrid: The municipal solar obligation of 2003 and itsimplementation (Institute for Energy Diversification and Savings, Spain)

Solar Solar ThermalThermal in in thethe PER, 2005PER, 2005--2010:2010:OpportunitiesOpportunities ofof FulfilmentFulfilment

OpportunitiesOpportunities ofof fulfilmentfulfilment: : ImpactImpact ofof thethe CTE in CTE in PER´sPER´s targettarget

Expected Impact:

2.700.000 M2 2.700.000 M2 1.890 MWth 1.890 MWth 69% 69% ofof thethe objectiveobjective

Net period of execution: 2008 – 2010

CTE Aplications (Water and Pool Heating)

New Buildings: 400.000 viv. (average per year)

Individual housin: 20%Housing blocks: 80%

Rehabilitation : 25.000 housing(average per year)

Knock-on effect (social acceptance) New applications

OpportunitiesOpportunities ofof fulfilmentfulfilment: : NewNew ApplicationsApplications ImpactImpact

Heating & Cooling (Individual housing, service sector, ...):

Heating (radiant floor., .., 2007 - ..)Cooling (Absorption, ..., 2008 - ....)

AC Industrial Processes (EnergeticPromotors, .., 2009 - ..)

Expected Impact:

500.000 M2 500.000 M2 350 MWth 350 MWth 13% 13% ofof thethe objectiveobjective

OpportunitiesOpportunities ofof fulfilmentfulfilment: : NationalNational GrantsGrants ProgramsPrograms ImpactImpact

Direct Grants of the Administration (348 Mill.€ foreseen PER)

Expected Impact:

730.000 M2 730.000 M2 511 MWth 511 MWth 18% 18% ofof thethe objectiveobjective

OpportunitiesOpportunities: : DemandDemand growthgrowth

To achieve the PER objective:

3.930.000 M2 (2.750 MW)3.930.000 M2 (2.750 MW), , in 4 in 4 yearsyears

Represents an average of new park to installof:

982.500 M2 (687 MW)/982.500 M2 (687 MW)/yearyear

what it is the same as:

X 5,6 times X 5,6 times thethe actual actual levellevel ofof thethe sector sector activityactivity (*)

(*) installed 2006: 175.000 M2. Source: ASIT

EconomicEconomic ImpactImpact

Costs reference in the traditional market:

Installations < 20M2 = 812 €/M2 (*)Installations > 20M2 = 710 €/M2 (*)

(*) Usual prizes since 2005 as reference of theprojects “centralized type conventionalinstallations”

(**) 20% Individual new housing80% New block housing

EconomicEconomic ImpactImpact::NeedsNeeds forfor housinghousing typetype

Individual housing = 3,50 M2/housing (*)Housing block = 1,80 M2/housing (*)

(*) 4 persons/housing (consumption s/ CTE)30%-70% de coverages/ CTE

EconomicEconomic ImpactImpact::MarketMarket valuevalue lineline

Housing Block: 710 €/M2 X 1,80 M2/housing = 1.278 €/vivIndividual Housing: 812 €/M2 X 3,50 M2/housing = 2.842 €/viv

EconomicEconomic ImpactImpact: : CostCost ofof thethe solar solar systemsystem per per housinghousing blockblock

EconomicEconomic ImpactImpact: : CostCost ofof thethe solar solar systemsystem per individual per individual housinghousing

EconomicEconomic ImpactImpact: : NewNew MarketMarket ValueValue LineLine

IntroductionIntroduction toto ASITASIT

ASIT, Asociación Solar de la Industria TérmicaFounded in Madrid, on April 21, 2004

Mission: A forum for discussion and representation of the sector, to debate ideas and performances that foment the use and development of Solar Thermal Energy in Spain

Principal target: To help to achieve (or exceed) the objectives foreseen in the Spanish PER for Solar Thermal Technology (3,500 MWth = 5,000,000 M2 in 2010)

102 Members, May 2006:FUNDACIÓN CENER-CIEMAT GAMESA SOLAR GAS NATURAL GESOLARGOROSABELGRAMMER SOLAR GRUNDFOSHIBARSOL IATSO IBERSOLAR ENERGÍA IMMOSOLARIN-COMERGY INDARSUN INGEAS INGENIERÍA SOLAR INNOVA INGENNIO INNOVASOLARINSTALACIONES DINER IPEAGUAS ISOFOTON JADOS, EQUIPOS SOLARES Y AUX. LAPESA GRUPO EMPRESARIAL LUMELCOMECALIA, METAL. CALDERERÍA MSYSSOLAR NUEVAS ENERGÍAS SURESTE PARADIGMAPASANQUIPASCH PJ MARK ENERGÍA PROINSOPROMASOLPROSOLAR PROSOLGAN

PROSOLIAPUIGCERCOS TALLERES RENERGETICARENO SOLAR ROTH INDUSTRIAS PLÁSTIC. SACLIMA SALVADOR ESCODA SCHÜCO SEDICAL SISTEMES ENERG. SOLARS SNELL SERVICIOS GLOBALES SOLAERSOLAR DEL VALLE SOLARIA SOLECO SONNENKRAFT SUMSOL SUMINISTROS SOLARES SUNENERGYSUNTECHNICSTAJOSOLARTECNISOL MANCHA TECNOLOGÍA ECOLÓGICA SOLAR TEKNIKER TERMICOL THISA TINOX TUBOS REUNIDOS UB GARANTY PROJECT VELUX VIESSMANN WAGNER SOLARWOLF IBÉRICA

ÁBACO AMBIENTAL ABASOL ABAST ENERGIA NATURALACCIONA SOLAR AEROLINE TUBESYSTEMS AIGUASOL ALVESOLAR AMBIENTUMAMSOLAR ASE SOLUCIONES ENERGÉTICASASSYCE AURA SOLAR AVANT SOLAR BTEC SOLUCIONES CENSOLAR CHROMAGEN COELERNI ENERGÍA CONERGY CUBIERTAS SOLARES DAROCA SOLAR DISOL DYNASOLAR ESPAÑA ECLAREON ECOESFERA RENOVABLES ECOSTREAMECOTÈCNIA ELEKTROSOLENERGÍA SIN FIN ENERGÍAS RENOVABLES VIVEIRO ENERGIE SOLARIE HISPANO SWISS ENERGY PANEL ENERSUN ENGEL SOLAR ENUS ENERGÍASFAMA ENERGÍAS RENOV. FRIGICOLL

Evolution of the number of associates

Market representation

Invoicing: 85 Mill €

Number of employees:Direct: 1.414 People (1)Indirect: 3.000 People

Market Share:▪ Manufacturers: 91,5 % (160.000 M2 / 112 MWth) (2)▪ Installers: 34,5 % (60.375 M2 / 42 MWth) (3)

(1) Source: ASIT members 2006(2) M2 of distributed collectors, ASIT members 2006(3) M2 of capacity installed, ASIT members 2006

Grazie della vostra attenzioneinfo@asit-solar.comwww.asit-solar.com