Developing Renewable Energy Policies

1
Developing Renewable Energy Policies Support
Measures
Mark Allington, Sales Director AEA Group
2
Strategic environmental consultants
Waste
Air Quality
Environmental management
Sustainable Energy
110m, 700 staff
Transport, business innovation
Emergency Response
3
AEA Heritage in Renewable Energy

• Managed the UKs Emerging Energy Technologies
  Programme on behalf of DTI from its start in
  1970s to the present day
• Managed the Non Fossil Fuel Obligation (NFFO)
  process on behalf of DTI
• Manage the DTIs
• Wave and Tidal Stream Energy Demonstration Scheme
• Offshore Wind and Biomass Capital Grant Programme
• PV Domestic Field Trials

Photo courtesy of Elsam A/S
4
International Work

• Resource Studies e.g. Slovenia, Czech Republic
• Integration of renewables into energy systems
  e.g. India, China, Kenya, Belarus
• Market structures and support mechanisms e.g.
  Thailand, Ireland
• New renewables policy and action plan - e.g. China

5
AEA Mediu Consulting srl, Romania

• 15 years aid-based experience in CEE/CIS
• Est. 2006, now 10 people in Bucharest 30 by
  March 09
• Growing CEE market for
• Competitiveness and business innovation
• Climate change and energy security
• EU environmental harmonisation and regulatory
  compliance
• energy, environmental, transport and property
  infrastructure
• EU structural funds potential for environmental
  programmes
• Romania-based talent pool for consulting work
  worldwide

6
Successful Integration of Renewables into Energy
Systems

• Requires
• Clear Government high level policy statement
• Commitment to a long term support policy with
  targets
• Legal requirement on a party (e.g. electricity
  supplier, network owner) to meet the target or
  face some form of penalty
• Financial support mechanism provides
  predictable support, ideally over 10 years
• Addressing institutional barriers
• Associated support for (e.g.) RD

7
Clear Government Policy Statement

• To establish confidence in the market and to
  provide a clear signal to industry
• To define renewables as an integral part of a
  countrys Sustainable Development Strategy
• To Recognise different benefits that can be
  derived, e.g.
• Reductions in greenhouse gases
• Diversity and security of supply
• Contribution to rural development employment
• Improved local air quality, reductions in acid
  rain
• Opportunity to develop national industry

8
Targets

• Clear targets for contribution of renewable
  energy
• Gives clarity to industry
• Establish confidence amongst equipment suppliers
  and investors
• Provide a clear benchmark against which to
  measure progress

2.71 MWe 50k tonnes pa wood pellet fuel
(Balcas, NI)
9
Legal Requirement to Procure Energy from
Renewables

• On whom should the requirement be placed?
• What should be the legal foundation?
• Should the requirement be based kWh, MW or ?
• Are additional policies incentives required?
• How should the legal obligation be distributed
  over provinces or utilities?
• Which technologies should be included?
• Is there the need for a stronger regulator?
• How should existing renewable energy generation
  be treated?

10
Renewable Support Mechanisms

• Feed-in tariffs
• Technology specific, successful in delivering
  installed capacity, expensive (?) (e.g. Germany)
• Capacity obligation
• Deliver low cost renewables but administratively
  onerous (e.g. UK NFFO 1990-1998, Ireland)
• Energy obligation
• Market mechanism, green certificates, expensive
  (?)
• Capital grants
• Promote construction but not production

11
Barriers to Development of Renewables

• Connection to the grid
• Land use planning approvals
• Regulatory barriers
• Access to finance
• Small fragmented industry
• Lack of co-ordination between government
  ministries
• Unfair competition from conventional energy

12
Provide associated support for renewable energy

• Support RD and technology demonstration to build
  up technical experience
• Establish policy framework that encourages
  private investment
• Provide access to resource data and other
  information
• Provide information to decision makers
• Train local staff
• Disseminate information on benefits to opinion
  formers and wider population

13
Introduce fair competition

• Often linked to energy market reforms
• Review and reform price setting mechanisms
• Ensure subsidies for renewable energy and
  competitor fuels are fair
• Open up market, encourage competition
• Strengthen role of regulator to ensure fair
  competition

14
Support Local Industry

• Provide RD Support
• Set standards
• Encourage joint ventures and international
  cooperation
• Foster links between industry and academics
• Initiate training programmes
• Establish market information service

15
Improve Coordination Communication

• Set up or identify an agency responsible for
  coordinating activities monitoring progress
• Establish good communication between Government
  departments/agencies
• Ensure coordination between policy investment
  plans
• Review, analyse and streamline approval
  procedures
• Consider establishing Industry/Government Working
  Group

16
Summary Successful Integration of Renewable
Energy into Energy Systems

• Requires
• Clear Government high level policy statement
• Commitment to a long term support policy with
  targets
• Legal requirement on a party (e.g. electricity
  supplier, network owner) to meet the target or
  face some form of penalty
• Financial support mechanism provides
  predictable support over 10 years
• Associated support for (e.g.) RD
• Addressing institutional barriers

17
Energy efficiency savings EBRD Russia audits
2006-8 (8 sites)
Renewable energy comparison 35GWh/yr 16MW wind
_at_ 25 LF, 16m, 5-6 yr payback
18
Sustainable Energy Business
Leading in sustainable energy helping
developers, policy makers, and industry meet
targets and grasp opportunities mark.allington_at_aea
t.co.uk www.aeat.com