Energy Efficiency in the Greek Hotel Sector November 17th, 2009, Berlin, Germany Current Situation of PV systems deployment in Greece

Transcription

1 Energy Efficiency in the Greek Hotel Sector November 17th, 2009, Berlin, Germany Current Situation of PV systems deployment in Greece Dr. Stathis TSELEPIS, CRES,

2 Overview Presentation of the PV systems & DG Dept. CRES The Solar resource and PV market in Greece The PV Programs and Regulatory Framework Economic evaluation of PV systems

3 CRES STRUCTURE Division of Renewable Energy Sources Division for Energy Efficiency Division for Energy Policy and Planning Division of Development Programmes Division of Financial and Administrative Services

4 Division of Renewable Energy Departments for: Sources Wind Energy Solar Thermal Systems Photovoltaic Systems and Distributed Generation Biomass Geothermal Energy Hydrogen Technologies Water Technologies (Small hydro, Wave energy)

5 Main Fields of Activities and Expertise of PV & DG Dept. Participation in RTD and Demonstration projects, both European and National. Supporting and advising the state for matters of our expertise Fields of expertise: design of PV, hybrid systems, Microgrids, BoS, battery storage, Distributed Generation. Collaboration with the local and the European industry. Co-operation with public and private organisations for the promotion of PV technology and applications. Participation in committees, international organisations etc., such as: EPIA, CENELEC, EUREC Agency, PV Technology Platform, Technology Platform for the Electricity Networks of the Future, European Research Area, IEA, European Energy Research Alliance (EERA).

6 Infrastructure Experimental PV module assembly facility. Electronics and power electronics laboratory and a 5m 3 environmental chamber. Solar irradiance measuring station. PV/hybrid system test field (Pikermi). Kythnos Island Microgrid Facility. R.O. water desalination system. Simulated field PV pumping testing station. Battery testing lab: Charge-discharge cycling, controlled Temp. battery bath and a 1m 3 environmental chamber. A total of 50kWp PV arrays for performance evaluation Prototype sun-tracking PV array. Electric vehicle. Portable PV array tester.

7 PV and DG Department Resources PV & DG Department personnel: 7 (4 PhD, 1 Dipl.-Eng., 1, Student, 1 secretary) Students: 3-5 students per year on average On-going projects: 10 (7 European, 2 National, 1 private contract) Coverage period: January 2004 June 2010 Total Budget: 2,5 M

8 PV energy production potential (kwh/kwp/year, fixed sys.)

9 PV System Installed Capacity in Greece 40 Installed PV System Capacity in Greece (CRES estimates) 60 Yearly Installed Capacity in MWp Total Installed Cpapcity in MWp Yearly Installed Capacity YEAR Total Installed Capacity 0 0

10 HTSO, Sept. 2009

11 Distribution of PV systems in operation per region (kwp) HTSO, Sept. 2009

12 Identification of the regions in Greece

13 Response to the FIT PV program, 2006 and on In June 2006, the Hellenic Law 3468, titled: Generation of Electricity using Renewable Energy Sources and High-Efficiency Cogeneration of Electricity and Heat and Miscellaneous Provisions, (Official Gazette A 129/ ), was passed for the promotion of electricity producing RES systems. A PV program was introduced with a high FIT (0,4-0,5 /kwh). As of March 2008, the application procedure for the FIT PV system program was postponed by RAE, for PV system over 20 kwp. PV system power category No Applications Applications in MWp 20 to 150KWp 6, kWp to 2MWp 1,004 1, MWp 296 1, TOTAL 7,947 3,

14 New PV Law (3734/2009) passed in January 2009 A new feed-in-tariff (FIT) regime was introduced in Greece on January 15th FITs will remain unchanged for the next two years. There will be a regression of FITs as of August However, one can sign a grid connection agreement thus locking the FIT before this deadline, and then get another 18 months to finalize installation. This practically means that FITs remain unchanged till early Applications for permits already filed (more than 3.7 GWp) will be examined until the end of The power purchase agreement is signed for 20 years only for PV systems, instead of years

15 Regime for new applications still unknown (as no more applications are accepted at the moment). Until then, a newcomer has the option of acquiring an existing company which has a permit. A 40% grant will still be valid on top of the new FITs for most of the systems (the minimum investment eligible for grant is 100,000 ). A separate program for PV on buildings was announced in January 2009 and it was introduced in June The new law introduced a tender process for PV systems >10 MWp.

16 Zone Division of Greece regarding the Investment Law subsidies for PV power generation companies Investment Law: 3299/ SIZE OF INVESTING Investment Sybsidy in % COMPANY ZONE A ZONE B ZONE C Large Medium Small Very small

17 The new feed-in in-tariffs ( /MWh) (Law 37/34/2009) Year Month Mainland Grid Autonomous island grids >100 KWp 100 KWp >100 KWp 100 KWp 2009 February August February August February August February August February August February August Year n from 2105 onwards SMC = System Marginal Cost 1.3*SMC n-1 1.4*SMC n-1 1.4*SMC n-1 1.5*SMC n-1 FITs guaranteed for 20 years. FITs adjusted annually for inflation by 25% of last year s Consumer Price Index

18 The Program for PV systems on buildings under 10 kwp A new program for PV systems on buildings was introduced in Greece on June 4th 2009 (Official Gazette B 1079/ ). The new program covers PV systems up to 10 KWp (both for residential users and very small companies) and sets a new feedin-tariff (FIT) for such systems. The new FIT is set at 0.55 /kwh. It is guaranteed for 25 years, adjusted annually for inflation (25% of previous year s Consumer Price Index). An annual regression of 5% is foreseen for new installations as of No cap is set. The electricity sales contract is signed with the utility (PPC).

19 Apart from the feed-in-tariff, residential system owners are eligible for a 20% tax deduction capped at 700 per system. Residential users do not have to be registered as business with the tax authorities and are exempted from any tax (with the exception of the 19% VAT paid for the initial investment). Very small companies are also exempted from any tax as long as they keep the income from PV as untaxed reserves. To be eligible for this FIT, a residence has to cover part of its hot water needs by some other renewable source (e.g. solar thermal). Currently, the program is only valid for the mainland grid areas. Islands with autonomous grids will enter the program in a second phase as soon as an extra solar capacity share is allocated for each island. A small works permit by the building authorities is the only license needed before installing the system.

20 Typologies of PV systems eligible for the new building program PV façades are not eligible for support under the program scheme. However, a PV façade on a commercial building can still benefit from the old FIT regime (i.e /kwh for 20 years). The PV array is not allowed to be placed over the top end of a building staircase, or over the top end of the elevator shaft or any other construction on the roof of the building. The structure of the PV array should not form any room for primary or auxiliary use, or semi-outdoor space.

21 4 Steps for connection to the grid for PV system on buildings under 10 kwp 1. Contact PV system suppliers for the equipment and the installation, in order to decide on the system components, the size and the price of the PV system to be installed 2. With the help of the PV supplier/installer you will prepare the application to the PPC ( to receive an offer for connection to the grid (cost of the new meter and the connection works). 3. Visit the local town planning office to receive a small scale works permit 4. Revisit PPC to sign the 25 year electricity sales contract and you are ready to connect to the grid and sell your electricity.

22 PV system Programs according to system owner Category of PV systems Category of PV system owner PV sys. on buildings under 10 kwp PV sys. up to 20 kwp PV sys. between 20 and 150 kwp PV sys. over 150 kwp Private persons Legal Entities Very Small Companies X X All Companies X X X

23 License Procedures Projects up to 20kW neither decision for exception nor production license is required for Projects located in protected areas (Natura etc): The project requires environmental permit Projects located outside protected areas (Natura etc) : The project does not require environmental permit

24 License Procedure ( kwp) Exception from the requirement of receiving electricity production license Exception applications for projects from 20kW up to 150kW Regulatoty Energy Authority Note: The project is required to get environmental permit RAE issues exception decision (declaratory decision).

25 License Procedure for projects over 150kWp - 1st stage Electricity Production License Application for granting electricity production license for a project over 150kW Positive Application s evaluation Forwarding the preliminary environmental study to the responsible environmental authority Collection of approvals and opinions from relevant authorities

26 License Procedure 1st stage Electricity Production License Positive opinion on the preliminary environmental study Positive opinion to the Production License * * Ministry of Environment, Energy and Climatic Changes

27 Applications for granting installation license (after receiving the production license) Determination of the connection terms to the System or the Grid (The offer) (HTSO-DESMIE /PPC) License Procedure 2nd stage Installation License Collection of opinions and approvals for Environmental Terms Approval issuing Contract for needed works for connection with the System and the Grid (HTSO-DESMIE / PPC) Installation License granting Power Purchace Agreement (PPA) (HTSO-DESMIE / PPC)

28 License Procedure 3rd stage Operation License Applications for granting Operation license (after the full construction of the plant) Operation License granting

29 General outline of the Licensing Procedure for PV Plants over 150KW Application for granting Electricity Production License RAE Preliminary Environmental Assessment & Evaluation (The RAE forwards the E.A.P. to the authority that is responsible for environmental licensing) Electricity Production License RAE / Ministry of Energy Determination of the connection terms to the System or the Grid (The offer) (HTSO-DESMIE /PPC) Intervention or Concession Approval (Secretary General of the Region / Local Forest Authority) Environmental Terms Approval Contract for needed works for connection with the System and the Grid (HTSO-DESMIE / PPC) Power Purchace Agreement (PPA) (HTSO-DESMIE / PPC) Installation License (Secretary General of the Region / Dept. of Planning & Development) Operation License (Secretary General of the Region / Dept. of Planning & Development)

30 Economic evaluation of a PV system investment 10 kwp for a private person, selling electricity to the grid Hypotheses: The PV system produces 1350 kwh AC per kwp in the Athens area (fixed installation, inclination 30 deg. Oriented to the South). Total investment cost: 4000 /kwp + VAT (19%) = 4760 /kwp Assuming a feed-in tariff of 0.55 /kwh, increasing by 0.25% annually of consumer index. Maintenance and operation expenses taken as 1% of the total investment cost on annual basis. The capital is all covered by the investor PV system power reduction is taken 0.5% annually No rent No taxation is assumed for the income.

31 Economic evaluation of a PV system investment <10 < kwp for a private person, selling electricity to the grid Money Flow in /kwp 14000, , ,0 8000,0 6000,0 4000,0 2000,0 0,0-2000,0-4000,0-6000,0 PV System <10 kwp, 4000 /kwp + VAT Year Money Flow IRR 20,0% 10,0% 0,0% -10,0% -20,0% -30,0% -40,0% IRR (%)

32 Economic evaluation of a PV system investment <10 < kwp for a private person, 80% loan, for 10 years at 7% interest rate PV System <10 kwp, 4000 /kwp + VAT, 80% Loan 7%, 10 years 12000,0 30,0% 10000,0 20,0% Money Flow in /kwp 8000,0 6000,0 4000,0 2000,0 10,0% 0,0% -10,0% -20,0% IRR (%) 0,0-2000, Year Money Flow IRR -30,0% -40,0%

33 Economic analysis of PV system 1000 kwp, 4000 /kwp Hypotheses: The PV system produces 1350 kwh AC per kwp (fixed installation, inclination 30 deg. Oriented to the South). Total investment cost 4000 /kwp. Assuming a feed-in tariff of 0.45 /kwh increasing by 25% of the consumer price index annually. Maintenance and operation expenses taken as 2% of the total investment cost on annual basis. The capital cost is covered 40% by subsidy, 35% loan (7%, 10 years) and 25% by the investor Income by trading avoided CO 2 emissions* PV system power reduction taken 0.5% annually Land rent 100 /1000m 2 /year A 10 year depreciation of the PV system is assumed Company taxation level set at 25%. *(0.85 kg/kwh avoided CO2 from Hellenic electricity production mix. Trading of CO2 emissions at 25 /ton)

34 Economic analysis of PV system 1000 kwp fixed, 8000,0 PV System 100 kwp, 4000 /kwp without VAT, 40% subsidy, 40,0% Money Flow in /kwp 7000,0 6000,0 5000,0 4000,0 3000,0 2000,0 1000,0 0,0-1000,0-2000,0-20,0% ,0% Year 30,0% 20,0% 10,0% 0,0% -10,0% -40,0% Money Flow IRR After Taxation IRR (%)

35 Thank you for your attention Dr. Stathis TSELEPIS, CRES,