why to promote local energy resources? 1 laef latvia renewable energy federation riga, june 18, 2015
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WHY TO PROMOTE LOCAL ENERGY RESOURCES?
LAEFLatvia Renewable Energy Federation
Riga, June 18, 2015
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LAEF in brief
LAEF – Renewable Energy Federation of Latvia is representing the joint interests of associations of local energy resources, including the following sectors:• Production of biomass, wood chips and pellets • Energy production in biomass CHP plants and electro stations• Energy production in biogas plants• Small hydro plants• Sun energy• Wind energy
LAEF is targeting to grow and enlarge the sector of industries representing local fuels in Latvia by:• Peat (production of peat), • bio-fuel, biodiesel
The target activities in 2015:• Facilitate legislative initiative to promote utilization of renewable
resources. Educating society and decision makers on the significance of renewable resourcesLAEF Latvijas Atjaunojamās
Enerģijas Federācija
LAEF Latvijas Atjaunojamās Enerģijas Federācija
Latvia renewable energy targets
LAEF Latvijas Atjaunojamās Enerģijas Federācija
Renewables in heating sector
LAEF Latvijas Atjaunojamās Enerģijas Federācija
Biomass CHP`s versus total
2007 2008 2009 2010 2011 2012 20130
10
20
30
40
50
60
3 4 3 5 4
12
21
2 3 2 5 4
18
54
Number of biomass CHP`s
Installed electrical capacity, MW
Including:
Number / MW
Fuel type Number of CHP`s
Installed electrical capacity, MW
Number of CHP`s %
Installed electrical capacity, %
Natural gas 95 1 142 57% 91%Biogas 50 53 30% 4%Biomass 21 54 12% 4%Coal, oil 1 3 0.6% 0.2%Total 167 1 252
Jelgava Bio CHP
Installed capacity, MW
1 23
Source: Central Statistical Bureau, year 2013
LAEF Latvijas Atjaunojamās Enerģijas Federācija
1. Global fight for resources is till on;
2. Resources are available within local
jurisdiction;
3. Energy and financial cycle during production
closes within the country borders;4. Side effects – employment, production of
equipment, transfer of technologies, possibilities for education and science;
5. The price for wind, sun and hydro is zero; 6. Basis for sustainable economic development
and technological progress.
Why RES in energy industry?
LAEF Latvijas Atjaunojamās Enerģijas Federācija
Renewable resources provide lower heat prices
LAEF Latvijas Atjaunojamās Enerģijas Federācija
• Variable costs define power price in the longterm (*):
Hydro, wind and sun = 0€/MWh RES = 5€/MWh Gas CHP = 40€/MWh
• When Germany startedto use local/RES, electricity pricesstarted to decline
Renewable energy – does Latvia need it ?
* bank Credit Suisse"Utilities Big Book"
LAEF Latvijas Atjaunojamās Enerģijas Federācija
Renewable energy – does Latvia need it ?
Energy self-sufficiency; In LV the dependence on foreign providers and prices is 56%:milj. EUR
Daily balance in 2013:• Costs on imported fossil fuels -17,3 MEUR/day
• Earnings from wood exports +3,1 MEUR/day
LAEF Latvijas Atjaunojamās Enerģijas Federācija
Wood resource
Energy self-sufficiency; • Latvia has all the conditions to be 100% self-sufficient:
• 55% of the territory are covered by woods• 10M m3 of wood chips remain in forests annually• 8M m3 of wood chips are exported annually
LAEF Latvijas Atjaunojamās Enerģijas Federācija
Wind potential
Energy self-sufficiency: • Latvia has all the conditions to be 100% self-sufficient:
• «Kurzeme Circle» provides a possibility to connect a wind plant of at least 500MW
• The potential of Latvia’s land winds is at least 1000MW
LAEF Latvijas Atjaunojamās Enerģijas Federācija
Use of farmlands
Energy self-sufficiency • Latvia has all the conditions to be 100% self-
sufficient:• 300 000 ha of farmlands in Latvia are not
cultivated• 1MWe Biogas plant requires 500ha
LAEF Latvijas Atjaunojamās Enerģijas Federācija
Workplace creation
New workplaces in regions and orderly environment:Output of local resources, transport, construction, infrastructure, maintenance, service sector
New workplaces per installed 100 MW
capacity for different
technologies in Latvia
Source: Institute of Physical energy of the Academy of science
LAEF Latvijas Atjaunojamās Enerģijas Federācija
New workplaces in regions and orderly environment
New workplaces under the national RES 2020 target*The RES Policy of the Republic of Latvia according to the Directive 2009/28/EK from April 23rd, 2009 of the European Parliament and Council on promotion of RES utilization that are annulling implementation of the Directives 2001/77/EK and 2003/30/EK by 2020
Source: Institute of Physical energy of the Academy of science
LAEF Latvijas Atjaunojamās Enerģijas Federācija
Using local resources comes to an end within national borders
€
€
€€
€
Production of resource
Transportation of resource
Transfer into energy
Energy transportation and supply
End consumption
of energy
LAEF Latvijas Atjaunojamās Enerģijas Federācija
Reduction of support
LAEF Latvijas Atjaunojamās Enerģijas Federācija
Electricity in Latvia is neither the cheapest nor the most expensive for average households in the EU
LAEF Latvijas Atjaunojamās Enerģijas Federācija
Electricity bill of a small industrial enterprise in Latvia
LAEF Latvijas Atjaunojamās Enerģijas Federācija
• Climate and energy efficiency targets has to be the key objectives when considering new investments
• Low gas and electricity prices are slowing down fuel diversification and investments in electricity production, however those objectives remain relevant
• Several retroactive legislative changes took place in recent years, what has damaged the investment climate and investments already made
• Well targeted, clear local policy decisions and support mechanisms are urgently required
• LAEF is currently working on the development on new law supporting use of local fuels
Key takeaways
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Energy for your day – let’s make it sustainable !
Thank you!©Fortum