BRINGING E UROPE AND T HIRD COUNTRIES CLOSER TOGETHER THROUGH RENEWABLE E NERGIES Why aiming for RES cooperation Why aim for RES cooperation? The need for and benefits of enhanced RES cooperation from a EU member state perspective Gustav Resch, Lukas Liebmann, Sebastian Busch, Andre Ortner Energy Economics Group (EEG), Vienna University of Technology (TU Wien) 15th of May 2014, Ankara Why aiming for RES cooperation Why aiming for RES cooperation? • The RES Directive (2009/28/EC) sets binding national 2020 RES targets for all EU member states • These targets do not explicitly reflect the national resource availability. RES share on gross final energy demand [%] 70% Source: DG Ener RES share 2005 RES potential 2020 - share on current (2005) demand 60% RES target for 2020 50% 40% 30% 20% EU27 United Kingdom Sweden Spain Slovenia Slovakia Romania Portugal Poland Netherlands Malta Luxembourg Lithuania Latvia Italy Ireland Hungary Greece Germany France Finland Estonia Denmark Czech Republic Cyprus Bulgaria Belgium 0% Austria 10% Source: Green-X database / Re-Shaping study Why aiming for RES cooperation Why aiming for RES cooperation? By joining forces, countries may explore potentials which otherwise would have remained untapped. 70% RES share 2005 RES potential 2020 - share on current (2005) demand 60% RES target for 2020 50% 40% 30% 20% Source: Green-X database / Re-Shaping study EU27 Spain Sweden Slovakia Slovenia Romania Poland Portugal Malta Netherlands Lithuania Luxembourg Italy Latvia Ireland Greece Hungary France Germany Finland Estonia 0% Denmark 10% United Kingdom • Source: DG Ener Cyprus In order to allow for cross-border support of renewable energy in a most cost-efficient manner, articles 6 to 11 of that Directive introduce cooperation mechanisms, providing member states as well as third countries with an option to agree on cross-border support of RES. Czech Republic • Bulgaria These targets do not explicitly reflect the national resource availability. Austria • Belgium The RES Directive (2009/28/EC) sets binding national 2020 RES targets for all EU member states RES share on gross final energy demand [%] • Why aiming for RES cooperation Outcomes of the bottom-up assessment: Planned RES cooperation from a MS perspective • Several (12) countries express their aim to achieve a surplus in RES generation by 2020 Luxembourg (previously also Italy) indicates that there will have a gap by 2020 3,500 Planned surplus or deficit in RES volumes by 2020 3,000 2,500 2,000 [ktoe] • 1,500 1,000 0 UK Sweden Spain Slovakia Poland Malta Luxembourg Italy Hungary Greece Germany -500 Denmark Thus, Member States remain reluctant in expressing their intentions 500 Bulgaria Despite a possible surplus there is uncertainty / unclearness on the detailed use of cooperation mechanisms … Complementary “top-down” assessment: Why aiming for RES cooperation RES cooperation from a modelling perspective The need for and impact of RES cooperation according to a study done for the European Commission, DG Energy on Method of approach RES cooperation* *Klessmann C., E. de Visser, F. Wigand, M. Gephart (Ecofys); G. Resch, S. Busch (TU Vienna) (2014): “Cooperation between EU Member States under the RES Directive - Task 1.“ A study on behalf of the European Commission, DG ENER led by Ecofys, Uetrecht/Karlsruhe/Wien, 2014. • TU Wien’s Green-X model was applied to perform a detailed quantitative assessment of the future deployment of renewable energies on country-, sector- as well as technology level. • The core strength of this tool lies on the detailed RES resource and technology representation, accompanied by a thorough energy policy description, which allows assessing various policy options with respect to resulting costs and benefits. • A RES-policy assessment was conducted by means of conducting scenarios on RES deployment assuming different RES policy pathways (in line with national 2020 RES targets assuming strong/moderate/limited RES cooperation) Why aiming for RES cooperation Complementary “top-down” assessment: RES cooperation from a modelling perspective The need for & impact of RES cooperation according to a recent DG ENER study on RES cooperation Assessed cases The related modelling exercise builds on three distinct case with respect to RES cooperation (between MSs): In the default scenario of “strengthened national policies” (in line with 20% RES by 2020) an efficient and effective resource exploitation is assessed assuming only a limited level of cooperation between Member States. Thus, this reference case of “limited (RES) cooperation” is contrasted by two alternatives: • a case of “moderate cooperation” where RES cooperation is more frequently used (given that economic benefits exist) • and a “European perspective” that can be classified as “strong cooperation”, where an efficient and effective RES target achievement is envisaged at EU level rather than the fulfillment of each national RES target using domestic resources. Why aiming for RES cooperation Complementary “top-down” assessment: 60% RES target Limited cooperation (reference) 50% 40% 30% 20% EU28 United Kingdom Sweden Spain Slovenia Slovakia Romania Portugal Poland Netherlands Malta Luxembourg Lithuania Latvia Italy Ireland Hungary Greece Germany France Finland Estonia Denmark Czech Republic Croatia Bulgaria Belgium 0% Cyprus 10% Austria RES share in gross final energy demand by 2020 [%] Results (RES target achievement) RES cooperation from a modelling perspective 2020 RES targets versus RES deployment according to the reference case (of strengthened national RES policies with limited cooperation) There is a need for cooperation in some of MSs to achieve 2020 RES targets in time! MSs that have to rely on (virtual) imports (Virtual) exchange of RES volumes in 2020 due to cooperation mechanisms [TWh] 40 Export Why aiming for RES cooperation 30 Complementary “top-down” assessment: Limited cooperation (reference) Moderate cooperation 20 Strong cooperation 10 0 -10 -20 -30 United Kingdom Sweden Spain Slovenia Slovakia Romania Portugal Poland Netherlands Malta Luxembourg Lithuania Latvia Italy Ireland Hungary Greece Germany France Finland Estonia Denmark Czech Republic Cyprus Croatia Bulgaria Export Strong cooperation (Virtual) exchange of RES volumes by 2020 for assessed cases – i.e. strengthened national policies with limited, moderate or strong cooperation between MSs, expressed in relative (% - share in GFEC) or United Kingdom Sweden Spain Slovenia Slovakia Romania Portugal Poland Netherlands Malta Luxembourg Lithuania Latvia Italy Ireland Hungary Greece Germany France Finland Estonia Denmark Czech Republic Cyprus Croatia Bulgaria Import absolute terms (TWh) (Virtual) exchange amounts 2.4 to 3.6% of total RES volumes … … corresponding to 4.6 to 7% of all new RES installations in this decade Limited cooperation (reference) Moderate cooperation Belgium 5% 4% 3% 2% 1% 0% -1% -2% -3% -4% -5% Belgium Import Austria -40 Austria (Virtual) exchange of RES volumes in 2020 due to cooperation mechanisms [% - share in gross final energy demand] RES cooperation from a modelling perspective Complementary “top-down” assessment: 20 10 Avoided CO2 emissions Avoided fossil fuels Capital expenditures Additional generation cost 0 -2% -1.6% -4% -6% -0.2% -2.2% Cost savings: 6 to 11% (compared to reference) -5.8% for support expenditures Moderate cooperation -8% Strong cooperation -10% -12% -10.8% Avoided CO2 emissions 30 -0.1% Avoided fossil fuels 40 Strong cooperation 0% Capital expenditures 50 0.4% 0.7% 0.2% 0.3% Additional generation cost 60 2% Support expenditures 70 Limited cooperation (reference) Moderate cooperation Indicators on (yearly average (2011 to 2020)) cost & benefits of new RES installations (2011 to 2020) - change compared to reference (limited cooperation) [%] 80 Support expenditures Indicators on (yearly average (2011 to 2020)) cost & benefits of new RES installations (2011 to 2020) [billion €] RES cooperation from a modelling perspective Why aiming for RES cooperation Intensifying cooperation appears (highly) beneficial, in particular with respect to support expenditures Indicators on yearly average (2011 to 2020) cost and benefits of new RES installations (2011 to 2020) at EU level for all assessed cases, expressed in absolute terms (billion €) (left) and assuming moderate or strong cooperation between Member States, expressed as deviation from the (reference) case of limited RES cooperation (right) Why aiming for RES cooperation Conclusions More cooperation can help to reach the 2020 RES targets at lower cost! • The cooperation mechanisms introduced in the RES Directive provide new options for an improved resource allocation across Europe – including neighbouring countries – as well as for further convergence of RES support schemes. • Intensifying cooperation allows for a more cost-efficient RES target fulfilment at EU level, leading to lower costs and expenditures. • The plans of individual Member States show that there is an aim to provide RES volumes for a possible cooperation in the 2020 context. Thus, in practice countries are however reluctant to actually make use of the cooperation mechanisms introduced by the RES Directive for the time being (since there remains uncertainty related to their practical use as well as with respect to actual future RES deployment). BRINGING E UROPE AND T HIRD COUNTRIES CLOSER TOGETHER THROUGH RENEWABLE E NERGIES Gustav Resch Email: [email protected] Phone: +43-1-58801-370 354 Why aiming for RES cooperation
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