Pavel Gebauer Renewable energy department 2010 Ministry of Industry and Trade

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2 Czech experience with the application of the climate-energy package Pavel Gebauer Renewable energy department 2010 Ministry of Industry and Trade

3 Content 1. Energy legislation 2. Renewable sources 3. Emissions 4. Energy savings

4 Impact of EU legislation to CZ laws

5 Energy-climate package Renewable sources Green house gas emission 20 % in % compared to 1990 Aim for MS were set up without considered of MS potential Method: GDP/Capita Consequences - Some MS may have to transfer RES energy from another MS Obligation for CZ (in year 2005 it was 6,1 %) ETS All member state the same obligation 13 % In the year 2020 rest (transport, household etc.) Obligations according to GDP/Capita CZ obligation - 21 % Compared to the year % Compared to the year 2005

6 Renewable sources I. What is necessary to achieve the objective approximately 30 different RES support schemes in the EU Europe 2008 Feed-in tariffs Green bonuses Tax tools Source: Eurelectric Harmonisation of support schemes? Flexibility / Business to achieve significant cost reductions to achieve target Integration of markets? Investment RES production control, inter-connections, internal constraints / bottlenecks, etc.

7 Renewable sources II. Existing electricity support scheme Two form of support scheme 19 MS: CZ, AT, DE 7 MS: UK, FI, SE Feed-in tarify Quota limit for RES (green bonus) (for exp.company) Czech supporting system (proposal for upgrading existing system)

8 Renewable sources - production

9 Installed capacity and promotion

10 Production and promotion outlook 2011

11 Renewable sources - solar Costs to support PVP: Direct costs associated with the purchase of electricity from PV Indirect costs associated with an increase in the purchase of support services Costs associated with increased investment in development of distribution and transmission networks Additional costs for regulating energy

12 Renewable sources - solar Total gross costs 28.6 billion The value of electricity delivered from wind turbines and PV 1.9 billion Total net cost 26.7 billion

13 Emissions Emissions 1990 of CZ mil. t/year Emissions target for CZ mil t/year

14 Emissions Emissions of CO2 in CZ Total -22 % Power sector -30 % Transport +139 %

15 Emissions

16 Emissions - higher reduction target? Information based on list of known studies of the reduction of GHG Costs for higer reduction targets could be estimated from1.1 billion a year to 2.4 billion a year (depending on the adopted energy strategy) Two scenarios showed a reduction of GDP from 0.04% to 1.3% per year Note: expected allowance price 30 all studies were presented processed before the economic recession

17 Emissions CO2 is not directly reduce There is no commercially usable method of removal from flue gas emissions as is possible, eg. SO2, NOx, dust, dioxins.. Process emissions of CO2 are determined by physical laws For example: Production of pig iron and steel, cement, lime and other chemical processes in the formation of CO2 indelible part of the process Increasing efficiency Changing the fuel input... contribution of only about 5% (growth of exported goods)... is limited by the availability of resources (Europe has a minimum) Reducing en. consumption... there is no country in the world, where economic growth is accompanied by a decrease in consumption Renewable energy... quality and cost are no longer competitive Reducing of production no comment Nuclear Energy... One of known technically and economically realistic option

18 Energy savings EU long-term goal: increase of energy efficiency by 20 % until 2020 Tools: Recast of the Buildings Directive Revision of the Energy Labelling Directive Directive on Labelling of Tyres ü

19 Energy savings National targets for energy savings are provide in: National Energy Policy (NEP) NAP was published in 2004 objective for saving the final energy consumption > 44 PJ (compared with 2000) Energy Efficiency Action Plan (APEE) APEE was published in 2008 objective for saving the final energy consumption > 3,573 GWh (1.6%) > 19,842 GWh (9%) (compared with average ) ü

20 Energy savings Current situation: increase in demand for Energy Performance Certificate system of accreditation of professional organizations education system, verification and certification of energy experts time limitations of accreditation and certification

21 Thank you for your attention