REACT: Austrian Case Studies

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REACT Austrian Case Studies

• Christian Rakos
• Energieverwertungsagentur

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The case studies

• The success of biomass district heating
• The success of wood pellet heating
• The development of biodiesel
• Green electricity legislation and its impacts
• Regional development of medium scale biomass
  heating projects
• The Salzburg residential subsidy scheme

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Biomass use for district heating of villages

• Central heating plant for entire village 500 kW
  - 30 MW
• energy distribution via hot water pipes
• since 1980 750 plants
• based on local initiative
• supported by investment subsidies (40-50)

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Success factors for bioenergy development in
district heating

• Technology components available from forest
  industry applications
• Bottom up movement of rural communities
• Support by regional politics
• Establishment of regional technology managers
• (agricultural) subsidies (50 of investment)

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Trends in district heating with biomass
Smaller plants (lt 800 kW)
Larger plants (gt800 kW)
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Problems with biomass district heating

• Establishment of counterproductive traditions of
  planning (e.g. overdimensioning)
• serious lack of quality of planning
• quality problems also in grid design and
  construction
• lack of attention to cost minimisation
• lack of professional know how of operators
• lack of monitoring quality controll

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Solutions for problems

• Establishment of technical standards (ÖKL
  Merkblatt 67)
• Training of planners plant operators
• Success limited
• New approach establishment of comprehensive
  quality management system (under way)
• Continuous monitoring benchmarking of plants

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Lessons learned

• Make sure technical complexity quality receives
  enough attention
• RD policies usually fail to address these most
  important issues (not sophisticated)
• Institutional support critical (quality!)
• Financial support critical (reliability!)

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Pellet boilers for domestic heating in single
family houses

• 10 - 30 kW
• automatic feeding, ignition and ash removal
• gt 90 efficiency
• very low emissionsapprox.50 mg CO / m3

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Anually installed automatic wood boilers lt 100 kW
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Success factors for domestic pellet boilers

• Long term competition between producers of
  woodchip boilers created by BLT testing site
• Focused competition for small scale chip boilers
• emergence of pellets
• booming consumer interest
• subsidies

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Emissions of wood boilers for domestic use
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Problems of pellet boiler introduction

• Lack of knowledge and resistance among fitters
  (installers)
• quality problems of boilers and pellets
• pellet supply infrastructures
• boiler service infrastructures

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How were problems solved ?

• Problems with installers
• Sales always via installers
• Installer trainings by boiler producer
• Bioheat installer trainings by biomass
  association
• Boiler pellet quality
• Solved by industry (essential for market
  success!)
• Standards tracking system for pellets
• Standards for delivery storage (!!)
• Infrastructures for boiler maintenance pellet
  supply
• Solved by industry (essential for market success)
• Pellet logistics by existing transport companies
  fuel dealers

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Encoding of pellets
Production-batch Excludes mixing with cheap or
low quality products In case of damages find the
responisble party Verify date of production

• Pellet producer
• verifiable mass flux from the producer to the
  consumer
• no anonymous mass product
• support local producers

National quality label Austrian Pellet
Association
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Lessons learned

• Technology development is long term process
  significant mid term impacts only with existing
  technology!
• Delivery of quality products and services is key
  to success public action is essential to
  enforce consistent quality
• Competition excellent driver for quality
• Comfort and consumer appeal key market drivers
• Existence of subsidies important for kick off

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Development of small contracting businesses via
dedicated consultants
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The success story of Regionalenergie Steiermark

• Small consulting company dedicated to supporting
  farmers in setting up small biomass heat
  businesses
• Financed by state and forest owners association
• Offers complete start up support
• Client contacts
• Feasibility study
• Technical, financial legal advice for business
  startup
• General marketing for bioenergy
• gt 100 projects realised since 1994

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Lessons learned

• Small projects can be more economic than large
  ones
• Lower subsidies but better advice - a cost
  effective solution for supporting RES
• Keep it small and simple
• Local value added can be a reality in that case

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The Salzburg residential building subsidy
The existing system of subsidies for residential
buildings was modified
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Market share of biomass heating in new
residential buildings in Salzburg
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Market share of solar thermal collectors in new
residential buildings in Salzburg
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Stieglgründe - a showcase of sustainable
architecture by Schwarzenbacher
128 flats 9000 m2 pellets boiler 2x150 kW Solar
380 m2 Investment solar biomass 80/m2 Total
costs 1708 /m2 Annual fuel costs 150
Contact architekten_at_archsolar.at
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Lessons learned

• Look for existing subsidies and change the terms
  of reference
• This way oversubsidising can be realised
  leading to full scale market transformation
• At a certain point a new market standard is
  created changes become permanent
• Technology is available for 100 sustainable
  residential heating at NO relevant cost
  disadvantage

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BIODIESEL

• Pioneering role of Austria
• In process technology
• In plant deployment
• In engine testing and obtaining warranties from
  major tractor and car producers
• In standardisation
• Model of local small scale biodiesel production
  only in 1 case sucessful (low oil prices)
• Sufficient large scale plants for 2 biofuels,
  focus on used vegetable oil
• Limited sucess on Austrian market (low diesel
  taxation) most biodiesel is exported

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Lessons learned

• Success in technology base due to comprehensive
  approach (strategic niche management)
• Involvement of professional mineral oil
  researchers in standardisation
• Lack of marketing skills and supporting
  legislation very small local market
• Industry platform very important and
  undersupported
• A hint to other contries do not reinvent the
  wheel! Use proven technology, logistic solutions
  etc. developed over 30 years

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Green Electricity Legislation in Austria

• Permanently changing framework
• 1998 liberalisation law RES E responsiblity of
  provinces 9 different regulations based on feed
  in tarifs
• 2000 Green certificates and quota system for
  small hydropower
• 2002 uniform RES E regulation on national level
• 2003 fixed feed in tarifs
• 2004 3 months of unclear financing of feed in
  tarifs
• Present system under heavy industry attac
• Valid for plants to start with al permits by end
  2004 and operation by mid 2006

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Results

• Lots of insecurity little development till 2003
• As fixed tarifs in 2003 were published overheated
  market !
• 2003 260 MW wind developed
• Large scale biomass developement fuel supply
  serious issue, tendency towards condensing power
  !
• Lack of attention to local residents resistance
  against projects
• Suspense 2004 very negative for confidence in
  market
• NO GOOD EXAMPLE in terms of continuity!

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Lessons learned

• Harmonised approach better than localised
  approach
• Green Certificates full failure!
• No trade !
• Certificates bought together with electricity
• Concentration of demand and supply
• High feed in tarifs have a masive impact on
  market development
• Different lead times of technologies ! Wind much
  faster than biomass

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Lessons learned II

• Limited duration of support scheme in principle
  reasonable
• Too short time for operation start up (6/2006)
• Overheating of market
• Price increases from equipment manufacturers
• No time for participative decision making