You are on page 1of 31

PROCESSES AND ISSUES FOR

INTRODUCING RENEWABLE GENERATION

Péter Kaderják

Corvinus University of Budapest

23 September, 2009, ERRA, Riga


OUTLINE OF PRESENTATION
RATIONALS TO PROMOTE RES

• Reduce local and global pollution


First best solution: pollution taxation/pricing, including CO2
pricing
• Increase supply security
Gas import dependence
Fuel mix diversity
• Industrial development
Developing local industry and employment
• Germany, Spain, Denmark
Importing the positive externalities of technological innovation or
developing a local champion – choice of support system
Developing an exporting EU industry
• Given that world trends are for RES…China, India?
Importance of understanding local comparative advantages

COST EFFICIENCY, GRADUALITY


PROBLEMS WITH RES
OUTLINE OF PRESENTATION
EU RES POLICY FRAMEWORK
OVERVIEW OF THE NEW
RENEWABLES DIRECTIVE – 1
OVERVIEW OF THE NEW
RENEWABLES DIRECTIVE – 2
OUTLINE OF PRESENTATION
RES PENETRATION IN EUROPE – 1

900

800

700

600
Total installed capacity, GW

Other RES
500 PV+Solar
Wood
Wind
400 Hydro
Non RES

300

200

100

0
2000 2001 2002 2003 2004 2005 2006 2007
RES PENETRATION IN EUROPE – 2

3500

3000

2500
Gross electricity generation, TWh

Other RES
2000
PV+Solar
Wood
Wind
Hydro
1500
Non-RES

1000

500

0
2001 2002 2003 2004 2005 2006 2007
GLOBAL WIND PENETRATION – 1
GLOBAL WIND PENETRATION – 2
GLOBAL WIND PENETRATION – 3
EUROPEAN WIND PENETRATION – 1
EUROPEAN WIND PENETRATION – 2
FUEL CHOICE FOR NEW GENERATION
EUROPE, 2008
FUEL CHOICE FOR NEW GENERATION
EUROPE, 2000 – 2008
COST DEVELOPMENT IN RES
TECHNOLOGIES: SCALE AND LEARNING

1990
Production Cost: US Cents per kWh

50 2000
2005
40

30

20

10
cost of non-renewable
0 production in 2000

WIND PV BIO GEO

Source: IEA
OUTLINE OF PRESENTATION
MAJOR POLICY COMPONENTS
ASSESSMENT OF RES POTENTIAL

Renewable resource potential and utilization in Hungary, PJ

Renewable Energy
Academy of Sciences, Strategy,
Renewable energy Source theoretical potential 2006 level of utilisation 2020 level of utilisation

Solar 1838 0.1 2


Hydro 14.4 0.7 1
Geothermal 63.5 3.6 11
Biomass/Fuel wood 203-328 49.2 131
Organic waste 3
Biogas + bio-methane 12
Bio-fuel 20
Wind 532.8 0.16 6
Total 2600-2700 53.8 186

+ Accomplishment of wind and geothermal maps,


registry of wells, biogas sources, etc.
• Information should be publicly available
ASSESSMENT OF RES POTENTIAL

Stocktaking report for regional assessment of renewable energy, EC,


USAID, 2009
MAJOR REGULATORY COMPONENTS
THE LICENSING TROUBLE
THE HUNGARIAN FEED-IN TARIFFS IN
FORCE FROM JANUARY 2009, (HUF (¢€))

From 1st January 2009


HUF
FEED-IN TARIFF (¢€)
Peak Off-peak Pit
Based on resolution of Solar, Wind 28.13 28.13 28.3
Hungarian Energy Office (10.1) (10.1) (10.1)
(HEO) if it was adopted or the
application was received before Other than Solar and Wind
01. 01. 2008. 31.42 28.13 11,48
[except hydro power station units (11.2) (10.1) (4.1)
(PSU) >5 MW]
Solar 27.86 27.86 27.86
(10.0) (10.0) (10.0)
Produced by PSU 31.13 27.86 11.37
Produced from of 20 MW or less (except Solar) (11.1) (10.0) (4.1)
renewable Produced by PSU of
energy sources Based on resolution of HEO >20 MW - max. 50 MW 24.90 22.29 9.09
adopted after 01. 01. 2008. (except Wind from 30th Nov. 2008, Solar) (8.9) (8.0) (3.2)
(except hydro PSU >5 MW, other
PSU > 50 MW) Produced by Wind PSU
of >20 MW - max. 50 MW 31.13 27.86 11.37
from 30th Nov. 2008 (11.1) (10.1) (4.1)

Produced by PSU
19.36 12.39 12.39
comprising used equipment
(6.9) (4.4) (4.4)
Produced by hydro PSU > 5 MW, other PSU >50 MW 19.36 12.39 12.39
(6.9) (4.4) (4.4)
THE PROCESS OF GRID CONNECTION FOR A
SMALL POWER PLANT IN HUNGARY, 2009
START

PLANT NOTIFICATION

DISCO PRELIMINARY GRID CONNECTION INFORMATION

PLANT CONNECTION AT FEASIBILITY STUDY


120 kV
DISCO APPROVAL

PLANT GRID CONNECTION PLAN

DISCO APPROVAL

TSO (MAVIR) CONNECTION AT 120 APPROVAL


kV

DISCO / PLANT DOCUMENTS TO GRID CONNECTION CONTRACT


ATTACH:
- Company registration
- Environmental license
- Building license

PLANT LICENCE APPLICATION (OVER 0,5 MW)

HEO APPROVAL

PLANT CONSTRUCTION PLAN

DISCO APPROVAL

PLANT BUILDING THE POWER PLANT AND THE CONNECTION

DISCO / PLANT INSTALLATION PROCEDURE

DISCO /PLANT OPERATIONAL AGREEMENT, GRID AND BALANCE


CIRCLE CONTRACTS
STOP
GRID INTEGRATION
NON-COST BARRIERS
QUESTIONS
ASSESSMENT OF RES POTENTIAL

HOMEWORK!

Stocktaking report for regional assessment of renewable energy, EC,


USAID, 2009