Renewable Energy basic definitions and core challenges
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Renewable energy is generally defined as energy that comes from resources which are naturally replenished on a human timescale •Renewable energy flows involve natural phenomena such as sunlight, wind, tides, plant growth and geothermal heat
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- 2. Solar energy potential(TW) Sun Thermal energy Transformed thermal energy Kinetic energy Photosynthesis To the space 80000 40000 300 30 Solar heat Hydro energy Energy of wind and waves biofuel
- 3. Geothermal Thermal energy30 TW Geothermal boilers and power plants Earth’s internal heat Variations in gravitational attraction exerted by celestial bodies Energy of Earth’s rotation Tides Tidal power plants 3 TW Other RE sources
- 4. Renewable energy (RE) • Renewable energy is generally defined as energy that comes from resources which are naturally replenished on a human timescale • Renewable energy flows involve natural phenomena such as sunlight, wind, tides, plant growth and geothermal heat Source: IEA 4
- 5. The main RE technologies • Hydropower – traditional source of energy, plants vary from huge dams to mini turbines • Wind energy – globally growing share, technologies already competing in cost with fossil fuels • Solar – the fastest growing technology (photovoltaics), very fast decreasing cost • Biomass – traditional fuel and new technological approaches 5
- 6. Average levelised cost for plants entering service in 2019 Plant type USD/MWh Conventional gas, CC 66.3 Wind 80.3 Hydro 84.5 Gas with CCS 91.3 Conventional coal 95.6 Advanced nuclear 96.1 Solar PV 130 Coal with CCS 147 6 Source: EIA
- 7. Average PV module price 0 0,5 1 1,5 2 2,5 3 3,5 4 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 $/W 7Source: IRENA
- 8. Net power generation capacities added in the EU in 2013 -8000 -6000 -4000 -2000 0 2000 4000 6000 8000 10000 12000 MW 8Source: EPIA
- 9. Net power generation capacities added in the EU during 2000-2013 -40 -20 0 20 40 60 80 100 120 GW 9Source: EPIA
- 10. RE is used in • Electricity generation • Space heating/cooling, hot water preparation • Motor fuels • Off-grid services • Water desalination • … 10
- 11. Generations of biofuels • First generation biofuels are produced directly from food crops by abstracting the oils for use in biodiesel or producing bioethanol through fermentation • Second generation biofuels are produced from non-food crops such as wood, organic waste, food crop waste and specific biomass crops • Third Generation of biofuels is based on improvements in the production of biomass. It takes advantage of specially engineered energy crops such as algae as its energy source • Fourth generation biofuels are aimed at not only producing sustainable energy but also a way of capturing and storing CO2 11
- 12. RES support approaches • Direct product price support Flat rate price support for all renewable energy product Differentiated rate price support for each renewable energy product From fiscal budget of the government From dedicated budget collected from energy consumers Operational tax allowance (tax rebate, profit tax allowance) • Investment support Direct investment grant from fiscal budget (repayable, non-repayable) Preferential credit program (low-interest rate support, credit guarantee) Investment tax allowances (VAT allowance for households, preferential depreciation for businesses) • Obligatory purchase of renewable energy products uniform purchase obligation for all renewable energy products purchase obligation for limited amounts of various renewable energy products purchase rate requirement (quota obligation) • Regulatory support for voluntary consumers of renewable energy tax allowances for consumers based on their voluntary consumption authorities providing guarantees of origin, obligatory disclosure of environmental information by energy products 12
- 13. Main issues: RES support • How to select a good support mechanism • How to properly define parameters of the support model • Can we harmonise (at least, regionally) the RES support mechanisms • How to allocate properly the support burden • How to set targets and reach them 13
- 14. Main issues: RES integration • How to integrate RES into competitive electricity market • How to deal with intermittency • How to connect RES to the networks • How to overcome administrative and bureaucratic barriers 14
- 15. Let us start! 15