Sem ttulo de diapositivo

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Renewable Energy ACTION
Case studies of policy instruments in Portugal
Paulo Santos
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Renewable Energy ACTION

• Feed-in tariff for wind electricity
• Solar Hot Water for Portugal (AQSpP)
• ENERGY Programme for biomass projects
• Main lessons to be learned
• for Portugal

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Renewable Energy ACTION
Feed-in tariff for wind electricity
A success story...
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(No Transcript)
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Feed-in tariff for wind electricity
Development over time
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Feed-in tariff for wind electricity
Feed-in tariff following D.L. 339-C/2001
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Feed-in tariff for wind electricity
Results
SUCCESS !
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Renewable Energy ACTION
Solar Hot Water for Portugal (AQSpP)
Unsuccessful... so far!
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Solar Hot Water Programme
Background

• Public Initiative promoted by DGGE (D.G. for
  Geology and Energy)
• Total budget of 861.000 EUR (2001- 2004)
• Entities involved
• SPES (Portuguese Society of Solar Energy)
• INETI (RDD institute)
• ADENE (National Energy Agency)
• APISOLAR (Port. Assoc. of Solar Industries)

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Solar Hot Water Programme
Main features

• promoting the image of solar thermal and the
  knowledge about economic and social benefits of
  this technology for water heating

• introducing the quality certification process for
  solar equipment and the professional
  certification of qualified designers and
  installers

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Solar Hot Water Programme
Main features (cont.)

• creation of an Observatory for Solar Thermal in
  Portugal

• dissemination of information about the fiscal and
  financial incentives available

• introduction of the direct sale of hot water as a
  new concept of energy service

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Solar Hot Water Programme
Results

• Situation in 2002
• 225.000 m2 installed
• Annual market growth of 5.000 m2

• In 2003
• No noticeable increase in market growth (only
  6.000 m2 installed)
• Hot water sale service didnt kick-off
• Fiscal incentives remain unattractive

UNSUCCESSFUL... SO FAR !

• Target for 2010
• 1.000.000 m2 installed
• Annual market growth of 150.000 m2

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Solar Hot Water Programme
Causes for the unsuccess
?

• Bad reputation of solar energy since the 80s
• Very strong competition from conventional fossil
  fuels
• High cost of solar systems (minimum 1.800 EUR for
  a 2m2 system)
• Very few companies dedicated in exclusive to
  solar energy
• Lack of really attractive fiscal incentives
  (maximum 700 EUR)
• But... there is a tremendous potential available
  that will always act as a major driving force!!

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Renewable Energy ACTION
ENERGY Programme for biomass projects
Success... or not?
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ENERGY Programme for biomass
Background

• Development of the energy sector under the 2nd
  CSF (1994-1999)

• ENERGY programmes general key areas
• Introduction of natural gas (Measure 1)
• Construction of public infrastructures for
  electricity production from renewable sources
  (Measure 2)
• Incentive to rational use of energy (Measure 3)

• SIURE
• Multi-sectors
• Transport
• Buildings
• Renewable energy
• Demostration

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ENERGY Programme for biomass
Main features

• Measure 3 - Renewable Energy
• For all renewables, including biomass (except
  large power production plants)
• Only non-private project promoters eligible
• up to 50 non-refundable incentive on investment
  costs
• Maximum limit of 250.000 EUR, later increased to
  750.000 EUR

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ENERGY Programme for biomass
Results

• 43 biomass projects supported
• 5,65 MEUR granted
• Estimated 12.000 toe and 42 kton CO2 savings
  per year
• May have contributed to maintain the share of
  biomass energy in industry, despite the 25
  growth in overall energy consumption

SUCCESS... OR NOT?
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ENERGY Programme for biomass
Causes for the (un)success
?

• High percentage of non-refundable grant (up to
  50)
• Key role as driving force for several projects
• A large and still unexplored resource potential
  available
• Lack of clear and specific targets for biomass
• Poorly structured and potentially unsafe biomass
  market
• Strong competition from conventional fuels (e.g.
  natural gas)

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Renewable Energy ACTION
Main lessons to be learned
Framework issues...
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Lessons learned
Main lesson PROVIDE A SUITABLE FRAMEWORK

• One instrument alone cant guarantee a successful
  policy

• The main barriers to market development must be
  tackled in a integrated manner, addressing the
  most relevant issues with the involvement of main
  actors

• Wind is putting this lesson to practice
• grid is being reinforced through a specific
  programme, taking into account the expected
  developments in decentralised power production
• environmental licensing procedures were changed
  to speed-up the development of projects

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Lessons learned
Other lessons

• Companies should be ready to provide attractive,
  safe and economic solutions
• Solar energy companies must learn this lesson
  certified products, professional service and
  accessible prices are crucial for market growth

• Set targets, monitor progress, look out for
  details that may impose or be imposing
  constrains to development, work out solutions
  and...

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Renewable Energy ACTION
for Portugal
What well be looking for...
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for Portugal
What was done?

• Enquiry to selected key players in the Portuguese
  energy sector
• Question was
• For which market segments do you think a new
  support instrument, programme or policy can
  contribute to a larger and faster development of
  renewable energy in Portugal?
• This was used as the first national project
  meeting and allowed to
• introduce REACT to many in its target audience
• requested and obtained experts opinion on a
  relevant issue

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for Portugal
How it was done?

• Prepared a electronic file for a kick and easy
  reply
• Three general market segments (electricity, heat
  and biofuels) divided into several specific
  market segments
• Selected around 230 contacts, including people
  from the main entities working in the energy and
  renewable energy sectors (government bodies ,
  RD, Universities, Energy Agencies, etc.)
• Submitted only by e-mail and replies received by
  e-mail or fax
• Received 64 answers in one month time (nearly 30
  ratio)

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for Portugal
What were the results?
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for Portugal
Well be looking for innovative policies for...
Traditional choices !