Israel is a pioneer and a world leader in R&D of renewable and alternative energy technologies.
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1 Israel is a pioneer and a world leader in R&D of renewable and alternative energy technologies. Nevertheless, despite this fact, the country has a bad record in renewable energy utilization, except for the notable example of solar thermal water heating systems Renewable and Alternative Energy The Israeli experience & lessons to Hungary Presented by Dr. Amit Mor Renewable energy conference Budapest, October 27, 2006 Eco Energy Ltd, Ackerstein Building, 103 Medinat Hayehudim St., POBox 4079, Herzliya Pituach 46140, Israel Tel ; Fax ; . Amitmor@ecoenergy.co.il Solar thermal water heating systems Solar Applications Solar Water Power stations Remote sites Industrial + CHP BIPV DIY & Rooftop SHS Residential grid connect Portable & consumer Satellite space Cumulative installed capacity of collectors in operation (2004 per 100,000 inhabitants) New installations (m 2 per 1000 habitants) Word Market Japan, 2% ROW, 4%, Europe 12% Turkey, 4% Israel, 2% 0 Israel Austria Greece Germany Austrelia China Turkey Swizerland Denmark Japan Spain China, 76% Source: SHC
2 CHROMAGEN Solar Energy Solutions European Market (th. M ) 2 European Market (%) % 0.1% 0.5% 1.3% % 1.8% 1.9% 1.4% 1.9% 53.5% % 3.6% % % % DE AT GR ES IT FR CH UK SE DK NL BE PT FI IE DE AT GR ES IT FR CH UK SE DK NL BE PT FI IE s 2004* November 06 Source Estiff, June 2004 Luz and its successor Solel - Solar thermal power plants 2
3 Heating and cooling with solar thermal systems Solel s Solar thermal air conditioning systems in Italy Rendering of Petrol China Gas Station Millennium Electric 3
4 Ormat a world leader in geothermal energy technologies Arrow Ecology waste to biogas and energy Bio-fuels 1 Three main recommendations for consideration: 1.Open the market to renewable energy and power suppliers 2. Encourage & support R&D technology development 3.Enhance the activity of the Hungarian renewable energy forums to get public awareness and support, We learned: 1.Lack of understanding of choices and economics leads to the adoption of wrong technologies for wrong solutions. 2. If Hungary chooses renewable energy: wind, solar, biomass/waste to energy, geothermal and bio-fuels all may have a role to play. 4
5 Net benefits of large scale utilization of solar energy in Israel (US$ million) Appendix NPV Annually reference 7% Levelised Benefits Direct benefits A1 $10/ton CO Avoided environmental costs $20/ton CO Stable and known energy prices A Avoided transmission & distribution (T&D) costs A Avoided fuel costs A Real options value for T&D investments A Total direct benefits $10/ton CO2 $20/ton CO2 1, Indirect benefits Income multiplier: Thermal 1, technologies A6 Income multiplier: PV technologies A Avoided unemployment compensation: Thermal technologies A Avoided unemployment compensation: PV technologies A Total indirect benefits 2, Total benefits $10/ton CO2 2, $20/ton CO2 3, Costs Additional generation costs A Environmental costs A Fuel switch to solar heating/cooling A Total costs 1, Total net benefits 7% discount rate $10/ton CO2 1, $20/ton CO2 2, Total net benefits 5% discount rate $10/ton CO2 2, $20/ton CO2 3, Opening the market: 1.Clear, efficient, step-by-step process of setting appropriate regulations and rules of game. Transparent legislation is a must. 2. Consider aiming for a higher government-enacted Renewable Portfolio Standard (RPS) Incentives to renewables: consider shifting from subsidy based regulatory system to clean energy premium based system. Ensures a minimum amount of renewable energy in Hungary s energy mix. For example 20% by 2020 with milestones. Use merits and penalties to ensure compliance Conclusion Western and eastern societies are beginning to acknowledge the necessity of paying the required premium to enhance energy security and improve their quality of life by decreasing air pollution levels. Hungary is entering this phase and could be a leader in this arena. It can not afford stepping behind. Encouraging R&D technology development: 1.Set higher priority for renewable energy in grant approvals by the Government Authotities. 2.Educate investors that Renewable Energy is good business a rapidly growing multi-billion dollar industry 3.Develop technology-specific university programs, courses and projects Hungary the Renewable Energy Vision Thank You 5
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