RENEWABLE ENERGY MONITORING PROTOCOL Update 2010

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1 RENEWABLE ENERGY MONITORING PROTOCOL Update 2010 Methodology for the calculation and recording of the amounts of energy produced from renewable sources in the Netherlands NL Agency July 2010 Compiled by Simone te Buck Bregje van Keulen Lex Bosselaar Timo Gerlagh English translation by Tim Skelton Publication number 2DENB1014

2 FOREWORD This is the fifth, updated edition of the Dutch Renewable Energy Monitoring Protocol. The protocol, compiled on behalf of the Ministry of Economic Affairs, can be considered as a policy document that provides a uniform calculation method for determining the amount of energy produced in the Netherlands in a renewable manner. Because all governments and organisations use the calculation methods described in this protocol, this makes it possible to monitor developments in this field well and consistently. The introduction of this protocol outlines the history and describes its set-up, validity and relationship with other similar documents and agreements. The Dutch Renewable Energy Monitoring Protocol is compiled by NL Agency, and all relevant parties were given the chance to provide input. This has been incorporated as far as is possible. Statistics Netherlands (CBS) uses this protocol to calculate the amount of renewable energy produced in the Netherlands. These data are then used by the Ministry of Economic Affairs to gauge the realisation of policy objectives. In June 2009 the European Directive for energy from renewable sources was published with renewable energy targets for the Netherlands. This directive used a different calculation method - the gross energy end-use method whilst the Dutch definition is based on the socalled substitution method. NL Agency was asked to add the calculation according to the gross end use method, although this is not clearly defined on a number of points. In describing the method, the unanswered questions become clear, as do, for example, the points the Netherlands should bring up in international discussions. If you have any questions or comments about this protocol, please contact the authors at NL Agency. Mr. E.J. the Vries, Director of Energy and Sustainability Ministry of Economic Affairs May 2010 Renewable Energy Monitoring Protocol

3 CONTENTS 1 INTRODUCTION RENEWABLE ENERGY AND ITS SOURCES Renewable energy a definition Renewable energy in the Netherlands which sources count? THE DIFFERENT METHODS Substitution, gross end use, primary energy Explanation of the substitution method Renewable energy fraction for the substitution method Reference technologies for substitution The choice of reference technologies Efficiencies of the reference technologies CALCULATING BY RENEWABLE ENERGY SOURCE Hydropower Wind energy Thermal use of solar energy Solar thermal systems Other solar thermal energy systems The photovoltaic use of solar energy Geothermal (deep ground-source energy) Shallow ground-source energy Ground-source energy: open sources Ground-source energy: closed systems Aerothermal energy Hydrothermal energy ENERGY FROM BIOMASS Municipal waste incineration plants Charcoal Small-scale wood burning Wood-burning stoves for heat >18 kw The co-combustion of biomass in power stations Other biomass combustion in stationary installations Biomass digestion Biofuels for transport Other conversion technologies THE GREEN ELECTRICITY BALANCE The Guarantees of Origin system The make-up of the balance - import and export Domestic production, stocks and consumption The counting of imports and exports with respect to policy goals REFERENCES APPENDIX 1: DETERMINING THE PERCENTAGE OF RENEWABLE ENERGY APPENDIX 2: FUEL EMISSIONS FACTORS APPENDIX 3: KEY FIGURES FOR MUNICIPAL WASTE INCINERATION APPENDIX 4: SYMBOLS AND ABBREVIATIONS FACT SHEETS Renewable Energy Monitoring Protocol

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5 1 INTRODUCTION History of the protocol Until 1990, renewable energy was rarely discussed in national and international energy overviews. The total amounts were still too small and too difficult to measure. The figure has grown considerably however, and in 1990 Novem (later merged to become SenterNovem, and now renamed Agentschap NL (NL Agency)) began producing the Renewable Energy Monitor, in which the contribution of renewable energy to the national energy supply was published. In 2004 the Renewable Energy Monitor was taken over by Statistics Netherlands (CBS - Centraal Bureau voor de Statistiek). Other organisations were of course also interested in renewable energy, and each used their own definitions and calculation methods in reports. In order to develop a uniform manner of reporting the contribution of renewable energy sources to overall energy supplies, and consequent reductions in the emission of carbon dioxide and other pollutants, Novem established the first version of this Renewable Energy Monitoring Protocol in Updated versions followed in 2002 and 2004, and the document was published for the fourth time in This 2010 version is the fifth edition. The most important changes since the previous edition are: - The method for calculating gross end use as used in the recently published European Directive Promotion of the use of energy from renewable sources (2009/28/EC) is described in the protocol. - Adjustment of the key figures for heat and cold storage, manure digesters and heat pumps. - The method for calculating the reference efficiency in electricity production has been coordinated with the Energy Saving Monitoring Protocol, so that both protocols set the same reference efficiency. Policy targets Several different targets related to renewable energy have been established in the Netherlands. As part of the Clean and Economical ( Schoon en Zuinig ) working programme, the national government has set, among others, the following targets for renewable energy: In 2020, 20% of all energy consumed in the Netherlands is to be produced from renewable sources. A reduction in the emission of greenhouse gases by 30% in 2020 compared to 1990 levels. In Europe too, recent targets have been adopted and are set out in the Directive on the Promotion of the use of energy from renewable sources. The targets are as follows: In 2020, 20% of all energy consumed in Europ is to come from renewable sources. A target of 14% has been set for the Netherlands. In the transport sector a renewable energy target of 10% in 2020 applies. This will primarily be covered by transport fuel. Electrical vehicles count towards this. What does the protocol offer? The protocol describes how the amounts of the different forms of renewable energy are calculated and reported. In order to achieve the desired uniformity, this protocol gives its own definitions of the meaning of renewable energy, frames of reference and main assumptions, and of the information sources to be used. In drawing up these definitions we have attempted to be consistent with internationally accepted working methods. The calculation methods applied are also described in this protocol. This is done by renewable energy source. They will be described using the so-called substitution method, as the method for calculating the gross energy end use is outlined in the European Directive on the Renewable Energy Monitoring Protocol

6 Promotion of the use of energy from renewable sources. The primary energy method will then also be described. This is used by the International Energy Agency (IEA) and Eurostat. A. The substitution method applies the principle that although energy can be obtained from any arbitrary source, each renewable source can almost invariably in practice only be used as a replacement for a specific conventional energy source; and must therefore be compared to that conventional source (the reference technology). In the substitution method therefore, each contribution of a renewable source is calculated back to the theoretical energy content of the replaced conventional source. This is the avoided use of fossil primary energy. This substitution method makes it possible to compare the different energy sources (and also heat, electricity and gas) with each other. The substitution method is used to calculate the Dutch target for the share of renewable energy within the framework of the Clean and Economical (Schoon en Zuinig) programme. B. In the European Directive on the Promotion of the use of energy from renewable sources, the gross energy end use is taken as a starting point for determining the share of renewable energy. Thereafter it looks at what part of this comes from renewable sources. It is therefore not calculated back into an amount of fossil primary energy. The directive sets targets for the share of renewable energy. The method of determining the share of renewable energy in the directive is linked in principle to energy balances such as have long been established by Eurostat and the IEA (IEA/Eurostat, 2004), on the basis of reports submitted by the member states. On a number of points, such as heat pumps, there remains a difference between the statistics and the Directive. The precise interpretation of these is still under discussion. C. Eurostat and IEA have reported on the share of renewable energy for a number of years. This share is also calculated on the basis of the above-mentioned energy balances, but using another method: the primary energy method, also called the input method. As with the 2006 update, this edition of the protocol includes fact sheets. The fact sheets show how the renewable energy share must be calculated via the substitution method and the gross end use method as described in the European Directive on the Promotion of energy from renewable sources. Key figures, formulas and calculation examples are provided in the fact sheets to improve the clarity of the protocol and simplify its use. The data in these fact sheets are based on the year If another year is needed for calculation purposes, then some data (such as the efficiency of electricity power stations) must be replaced with figures from that year. From the definition of renewable energy used in this protocol (see Chapter 2), it follows that life cycle analyses (LCAs) of renewable and conventional energy sources play no part in the calculation of the renewable energy share. An LCA is more accurate in principle, but also has disadvantages. Firstly an LCA is more complex and thus less transparent. Secondly, more data are needed, so the costs for the data collector and data supplier are also increased, while early problems over the reliability of the data arise. An LCA can be used to analyse the inaccuracy of the other methods. LCAs are also applied in order to study environmental impact and the extent of sustainability. This will be described in more detail in Chapter 3. In recent years the renewable electricity market has been making more use of Guarantees of Origin. The measurement methods used have been added to this protocol. Specific measurement methods are included here for the measurement of the biomass percentage of mixed fuels and municipal waste incineration plants (MWIPs). Another consequence of the definition of renewable energy is that imports of green power are not included in domestic production figures. In general, only renewable energy produced on Dutch territory counts. Nevertheless, imports can be important in achieving targets. Imports of green power (registered by means of the system of Guarantees of Origin) can be counted towards realising the targets of the importing country, provided that the exporting country agrees explicitly by Renewable Energy Monitoring Protocol

7 means of a written declaration. For this reason the Green Electricity Balance is discussed in Chapter 6. Although this protocol focuses mainly on renewable energy, consideration is also given to determining the avoided emissions of CO 2 for the substitution method. The reason for this is that avoiding CO 2 emissions is an important factor driving the trend towards more renewable energy. Note that these figures are a guide to avoided CO 2, but that Dutch emissions registration is the reference source for the calculation of greenhouse gases 1. This protocol is used by Statistics Netherlands to determine the quantity of renewable energy produced in the Netherlands. The results are published on Statline, Statistics Netherlands s online database, and other articles and publications (Statistics Netherlands, 2009). All Statistics Netherlands publications are available via the internet (www.cbs.nl). The key figures and methodology described here have a general and statistical nature. The protocol can thus be used exclusively for making uniform statistical overviews and for checking targets. The assumptions made in this protocol cannot be used to claim subsidies. The protocol has been compiled to facilitate the calculation of statistical information about renewable energy in the Netherlands. The key figures can only be used for this purpose and not, for example, to calculate the yield of individual projects. Relations with other directives and protocols When studying energy and environmental questions, various protocols and agreements are available. Besides the Renewable Energy Monitoring Protocol there is also an Energy Saving Monitoring Protocol, which used a number of other definitions. As mentioned above, the substitution method is used to calculate the Dutch target for the renewable energy share (20% in 2020) within the framework of Clean and Economical programme. Moreover, the method for calculating the gross energy end use is the same as described in the European Directive on the Promotion of energy from renewable sources. Finally, there are reports on the Netherlands compiled by international organisations such as the International Energy Agency (IEA) and Eurostat, which are based on Dutch data. The Energy Saving Monitoring Protocol 2 is compiled by the Energy Research Centre of the Netherlands (ECN), NL Agency, the Central Planning Office (CPB - Centraal Planbureau), and the National Institute for Public Health and the Environment (RIVM - Rijksinstituut voor Volksgezondheid en Milieu). It describes how to determine much energy has been saved, i.e. how much less energy has been used. The Renewable Energy Monitoring Protocol describes how to calculate the yield of renewable energy sources used, and how that relates to total energy generation. The Energy Saving Protocol is directed at savings with respect to a fixed reference year (static), while the Renewable Energy Monitoring Protocol focuses on substitution in the actual production year (dynamic); the Energy Saving Protocol calculates the electrical reference efficiency in a different way from the Renewable Energy Renewable Energy Monitoring Protocol. When each of these protocols was revised, it was decided to harmonise the two and to unify the method of calculating the reference efficiency. The most important differences between the Energy Saving Monitoring Protocol and the Renewable Energy Monitoring Protocol are outlined in the table below. 1 See also 2 CPB, ECN, Novem and RIVM (2001) Renewable Energy Monitoring Protocol

8 Table 1.1: Comparison of the Renewable Energy Monitoring and Energy Saving Protocols Aspect compared Renewable Energy Monitoring Energy Saving Protocol Protocol reference year dynamic (actual year) static (base year) assessment of heat from cogeneration (CHP) network losses n/a for the drawing of energy from central power production system (input taken into account); otherwise the avoided input of heat for the reference system references given with and without network losses for the drawing of energy from central power production system via the co-combustion factor; otherwise the avoided input of heat for the reference system Reference includes average network losses (for electricity from the grid) passive solar energy renewable source (not used) saving (implicit) renewables behind the meter Counts as renewable, calculations made using key figures Counts as a saving if not worked statistically into the total use (as extraction) total usage according to the protocol definition 3 greater or smaller than the total domestic use (TDU) as defined by Statistics Netherlands Statistics Netherlands total domestic use (TDU) minus the use of oil/gas as feedstocks Renewable energy is also a part of the Netherlands Energy Balance as carried out annually by Statistics Netherlands (Statistics Netherlands, 2008). In the Statistics Netherlands Energy Balance, energy balances are established for each energy carrier. The production of electricity from wind energy, solar energy and hydropower appear as the extraction of electricity. Biomass is part of the heat, biomass and waste energy carrier. Statistics Netherlands is working on treating biomass as a separate energy carrier in the Energy Balance. Statistics Netherlands uses the same source data for both the Energy Balance and for renewable energy statistics. Information sources used In statistical reports about the contribution of renewable energy to the overall energy supply, the information sources used must be mentioned. The reliability of these sources is reviewed by Statistics Netherlands and, if necessary, incorporated in its annual report (Statistics Netherlands, 2009). With a view to limiting administrative pressures and improving efficiency, primary observations (data collection specifically for renewable energy statistics) are only used if no other sufficiently reliable and timely sources are available. The future of the protocol This version of the Renewable Energy Monitoring Protocol will probably not be the last. Firstly, both the conventional and renewable ways in which energy is obtained are changing, so the calculation methods to compare them with one another must also change. Secondly, developments in Europe may make it necessary to adjust Dutch monitoring. Interested parties who have questions or suggestions about the protocol should contact NL Agency and Statistics Netherlands. 3 In the Renewable Energy Monitoring Protocol, the output of renewable sources is translated into saved fossil fuels. Thereby conversion losses are introduced that the Statistics Netherlands balances do not take into account. Renewable Energy Monitoring Protocol

9 2 RENEWABLE ENERGY AND ITS SOURCES This chapter outlines the assumptions and definitions that the protocol uses for determining the contribution of renewable energy sources to the overall energy supply. The first paragraph deals with the question of what we mean by renewable energy. This is followed by a discussion of the sources that are considered renewable in the Netherlands. 2.1 Renewable energy a definition The problem with energy production is that many of the sources from which energy is obtained can be adversely affected, and also that pollutants are released during production (particularly CO2 and acidifying agents). For years therefore, alternative energy sources have been sought for which this does not apply. The following is the definition of renewable energy according to Article 2 of the European Directive on the Promotion of the use of energy from renewable sources: a) "energy from renewable sources": energy from renewable non-fossil sources, namely wind, solar, aerothermal, geothermal, hydrothermal and ocean energy, hydropower, biomass, landfill gas, sewage treatment plant gas and biogases; b) "aerothermal energy": energy stored in the form of heat in the ambient air; c) "geothermal energy": energy stored in the form of heat beneath the surface of solid earth; d) "hydrothermal energy": energy stored in the form of heat in surface water; e) "biomass": the biodegradable fraction of products, waste and residues from biological origin from agriculture (including vegetal and animal substances), forestry and related industries including fisheries and aquaculture, as well as the biodegradable fraction of industrial and municipal waste; In the substitution method, geothermal and hydrothermal energy can consist of cold and well as heat. 2.2 Renewable energy in the Netherlands which sources count? To determine the contribution of renewable energy to the overall energy supply in the Netherlands, we must first decide which energy sources in the Netherlands count as renewable. Fossil fuels and nuclear power have of course been excluded. Broadly speaking, six energy sources are renewable: solar, wind, hydropower, environmental heat (geothermal and hydrothermal energy), ground heat (geothermal energy and energy stored in the ground), and biomass. An overview of these sources is shown in table 2.1, which shows them by energy type and also mentions techniques by which they can be converted into useful forms. The energy sources hydropower, tides, waves, wind and the sun are in principle all regarded as renewable energy sources, even if the contribution of passive solar energy such as in adapted housing developments and orientation does not count. Biomass can be obtained as a waste stream from other processes, or as result of crop cultivation intended for energy generation. In obtaining energy from waste, only the contribution of the renewable elements of the waste material is considered renewable. When exploiting environmental surroundings and natural heat, the situation is somewhat more complicated. In the Netherlands, heat pumps and the seasonal extraction of heat or Renewable Energy Monitoring Protocol

10 cooling are counted; the same applies to geothermal energy. However, these must be corrected to take into account the internal energy use of the installations. Furthermore, seasonal storage only counts if the stored heat is obtained from renewable sources; here too, waste heat produced from fossil fuels does not count. Table 2.1: Overview of the energy sources currently in principle considered as renewable in the Dutch situation. Source Technology wind sun hydropower tides waves fresh/saltwater gradient Ground and air: geothermal ground energy wind turbines a) photovoltaic systems (solar cells) b) thermal systems (solar thermal systems, dry swimming pool heating systems) hydropower stations tidal energy power stations wave energy power stations geothermal installations a) direct as heat/cold storage b) with a heat pump heat pumps heat pumps aerotherm (air) hydrotherm (surface water) Biomass thermal conversion: combustion, gasification, pyrolysis biological conversion: digestion input as transport fuel Finally it is important that, in accordance with the statistical conventions of Statistics Netherlands, Eurostat and the like, only renewable energy produced on Dutch territory is counted. Renewable energy produced in the Netherlands Antilles is not included. International trade in green energy is only counted if relevant bilateral agreements have been made (see Chapter 6). Biofuels for transport does not refer to production, but to the quantity sold on the domestic market, regardless of origin. This also conforms to European regulations. Renewable Energy Monitoring Protocol

11 3 THE DIFFERENT METHODS 3.1 Substitution, gross end use, primary energy This protocol describes three methods: A, the so-called substitution method; B, the method for calculating gross energy end use as described in the European Directive on Energy from renewable sources; and C, the so-called primary energy method of IEA/Eurostat. A. The substitution method uses the principle that although energy can be extracted from any arbitrary source, each renewable source is in practice almost exclusively used as a replacement for a specific conventional energy source; and it must therefore be compared with that conventional source (the reference technology). In the substitution method therefore, each contribution of a renewable source is calculated back to the theoretical energy content of the replaced conventional source. This is the avoided use of fossil primary energy. This substitution method makes it possible to compare the different energy sources (and also heat, electricity and gas) with each other. The substitution method is used to calculate the Dutch target for the share of renewable energy within the framework of the Clean and Economical programme. Section 3.2 describes the substitution method in greater detail, the calculation of the renewable energy fraction using this method, and the choice of reference technologies. B. In the method for determining the gross energy end use according to the Directive on the Promotion of the use of energy from renewable sources (2009/28/EC), the final energetic energy use is used as a starting point. Thereby we can look at what part of this comes from renewable sources. This is not calculated as an amount of fossil primary energy. The final energy use is the energy delivered to the end use sectors (industry, services, households, transport and agriculture). Electricity generation by the end use sectors themselves is thereby moved to the energy sector. The gross end use includes the use of electricity and heat by the energy sector to generate electricity and heat, and also the electricity and heat losses during distribution and transmission. An important difference with the substitution method and the primary energy method is that the end use method in the EU directive does not count non-energetic use (such as oil for the production of plastics). The method is used to track the targets stipulated in this directive. These are as follows: In 2020, 20% of all energy consumed in Europe must come from renewable sources. A target of 14% has been established for the Netherlands In the transport sector a target of 10% renewable transport fuels in 2020 apples. Electric vehicles count towards this. C. Primary energy method/ input method. Data collected in order to determine the renewable energy share are also used for international reports on the Netherlands to the International Energy Agency (IEA) and Eurostat. The method used until now by Eurostat and the IEA in their publications is the primary energy, or input method. That means we measure the amount of renewable energy entering the system. Since 1999 these two organisations have used a joint questionnaire on renewable energy, in order to follow developments in the field of renewable energy from an international perspective. The joint questionnaire on renewable energy is linked with other similar questionnaires about energy. In the Netherlands this questionnaire is completed by Statistics Netherlands. They use the direct energy yield in its first usable form as a starting point, hence it is called the primary energy or input method. Certain changes will be applied following the publication of the European Directive on Energy from renewable sources (2009/28/EC). International reporting will be expanded, and will be reported according to the gross end use method used in the directive. Eurostat will make the gross end use method central. Renewable Energy Monitoring Protocol

12 Input Output Renewable source Primary energy method (input) Duurzame Renewable Energie energy system systeem Renewable energy production Avoided primary Energy = RE Substitution method Referentie Reference systeem system Figure 3.1 Schematic of the input- output- and substitution method Figure 3.1 shows the schematic relationship between the input-, output- and substitution method. If for example wood is burned in a wood-burning stove, the input method gives the energy content of the wood, the output gives the heat produced heat, and the substitution method the energy content of the gas that is saved. In the gross end use method from the European Directive on the Promotion of the use of energy from renewable sources, the input or output method is used depending on the energy system used. In the example of burning wood, the gross end use takes the energy value of the wood (this is the same as the input method). The end user is after all the stoker, and the one requiring the heat. In the case of a biomass digester coupled to a cogeneration unit, the end user is the person next in line after the cogeneration unit. Here the gross end use is the heat and electricity delivered by the cogeneration unit, and is thus equivalent to the output. The following table briefly shows, by technology, the manner used to calculate the renewable energy per method. Chapters 4 and 5 describe this by technology in greater detail. Formulas and examples of the calculations are shown in the fact sheets. Renewable Energy Monitoring Protocol

13 Table 3.1: Overview of calculation methods by technology Substitution method Renewable energy directive IEA/EUROSTAT input method 4.1 Hydropower Standardised elec. / Standardised elec. Elec. subst. factor 4.2 Wind energy Standardised elec. / Standardised elec. Elec. subst. factor 4.3 Solar thermal Heat 4 / subst. factor Heat Heat 4.4 PV Elec. / subst. factor Elec. Elec. 4.5 Geothermal (deeper than 500m) Heat/subst. factor Heat Heat 4.6 Ground source energy 4.7 Aerothermal energy 4.8 Hydrothermal energy 5.1 Municipal waste incineration Ground cold/subst. factor + ground heat/subst. factor elec. use of heat pump/subst. factor Ground source heat Not calculated Heat/subst. Factor - Heat Not calculated elec. use of heat pump/subst. factor Cold/subst. factor Heat Not calculated (Elec./subst. factor + heat/subst. factor) * % renewable 5.2 Charcoal Charcoal * conv. factor (0%) / subst. factor heat (not included) 5.3 Small-scale wood Wood * conv. factor (10%-85%) /subst. factor 5.4 Wood-burning stoves > 18 KW 5.5. Combustion of biomass Wood * conv. factor (85%) /subst. factor Elec./subst. factor + heat/subst. factor (Elec.(gross) + heat) * % renewable Charcoal Wood Wood Elec.(gross) + heat Waste * % renewable Charcoal Wood Wood Biomass 5.6 Co-combusted Biomass Elec.(gross) + heat Biomass biomass 5.7 Biomass digesters Elec./subst. factor + heat/subst. factor + biogas Elec.(gross) + Heat (allocated) Generated biogas 5.8 Biofuels Biofuels Biofuels Biofuels The three methods can lead to some big differences, mainly in the following two instances: - In the direct production of renewable electricity (wind, water, sun), 1 GJ produced shows as 1 GJ in the statistics using the input method. The Dutch substitution method divides this by the reference efficiency to calculate the substitution of fossil fuels. For 2008 this comes to 1/0.427 = 2.3 GJ. In the gross end use method it is standardised using the installed capacity of the previous years, and for 2008 this would come to slightly less than 1 GJ. - For low conversion efficiencies (such as biomass combustion with 50% heat efficiency), 1 GJ of biomass gives 1 GJ of renewable energy using the input method. In the substitution method the 0.5 GJ of delivered heat is divided by the reference efficiency 4 For solar thermal, the heat in the substitution method is not the same heat as the heat used in the RED and the primary energy method. Renewable Energy Monitoring Protocol

14 of 90% = 0.56 GJ. In the gross end use method, the heat produced is used if it is sold, and the biogas used to generate the heat is used if the heat is not sold. In a number of cases we can talk about the direct substitution of a fossil energy carrier by a renewable energy source. This is the case for example with co-combustion in a coal-fired power station, of with biofuels for transport. In these cases the protocol applies the direct substitution. The use of a primary energy carrier is in each case directly avoided. This applies if the avoided primary energy is similar to the renewable source (input). LCAs No life cycle analyses (LCAs) are performed in the calculation of the renewable energy share using the three methods. A life cycle analysis compares the entire production process of the renewable energy with conventional energy carriers. If emission throughout the process are taken into account, then we call this the LCA method. This is used mainly in biofuels to make a comparable analysis (well to wheel), because the production process of biofuels loses much of the saved CO 2. In the European Renewable Energy Directive a LCA calculation method is given to be able to calculate the saving in the greenhouse gas emissions of biofuels with respect to fossil fuels. Thereby we can take account of the extent of sustainability of the biofuel, and can set minimum sustainability requirements (minimum CO 2 reduction). In the case of the Renewable Energy Directive, LCA calculations are made on the basis of greenhouse gas emissions. Other emissions besides CO 2 are thereby taken into account, and these are converted to CO 2 equivalents. The result of the LCA calculation is not used to correct the energetic value of the biofuel. Biofuels that satisfy the minimum CO 2 reduction count fully as renewable. In the growing of the raw materials for, and the production of, biofuels, a relatively large amount of fossil energy is used, or, quite often, substantial amounts of non-co 2 greenhouse gases are emitted (for example through the use of fertilizers in the production of rapeseed for biodiesel). Over the whole production chain it is clear that the avoided use of fossil primary energy and the avoided emission of greenhouse gases is then also lower than the primary energy use and the greenhouse gas emissions of the replaced fossil fuels. For the current generation biofuels the production process results in around 80% avoided primary energy per unit of replacement biofuel. For CO 2 the avoided emissions are clearly even lower, from a minimum 35% to around 71% for ethanol from sugarcane, and 83% for biodiesel from waste oils. In the substitution method the Protocol assumes that 1 joule of biofuels leads to 1 joule of avoided primary energy. This is therefore an overestimation. The reasons for this are that for simplicity it is tempting not to use LCAs, and that the deviation from reality is still acceptable. For the avoided emission of greenhouse gases however, skipping the LCA calculation leads to too great a deviation from the reality. Therefore no avoided emissions of greenhouse gases are calculated for biofuels within the framework of this Protocol. Appendix 5 of the Directive on Energy from renewable sources gives a calculation method and default values for converting greenhouse gas emissions reductions to CO 2 equivalents on the basis of a life cycle analysis (LCA). The calculation of the CO 2 reduction of biofuels with respect to fossil fuels therefore refers to this Memo biofuels LCA Renewable Energy Monitoring Protocol

15 3.2 Explanation of the substitution method This section gives further explanation of the substitution method, the calculation of the renewable energy fraction for this method, and the choice of reference technology. When determining the contribution of renewable energy sources it isn t always possible to specify the exact frames of reference. What are, for example, the energy carrier and source of wind energy? For this reason we use the term renewable energy production as defined below: Renewable energy production is the net production of secondary energy carriers (electricity, heat and fuel) from renewable energy sources, corrected using a substitution factor When calculating net energy production, several factors must be taken into account: the installation s own energy consumption; external energy supplied to the installation; and any unused portion of energy yield. These must be deducted from the gross production. This portion, which also includes transport and similar losses, disappears, and therefore as such makes no contribution. In other words: Net energy production = gross energy production minus the installation s own energy use, minus energy supplied to the installation, minus the unused portion of energy production. For the substitution method it is important to know how much primary energy is avoided by the use of the renewable energy system. This is because the renewable energy production must be expressed as the amount of primary fossil energy that was needed to generate an equivalent amount of energy. This can be converted back from the renewably produced secondary energy carrier to primary energy, by means of a reference. This is the so-called substitution method, which has been used in the Netherlands until now. The avoided primary energy is the produced renewable energy Renewable energy fraction for the substitution method The Dutch government has set a target for renewable energy as a percentage of total energy use. However, stipulating this percentage using the substitution method presents a problem when the renewable energy fraction is large, because the percentage will then be too high. To avoid this problem in future a method for correcting for this error is now applied. The methodology and reasoning behind this are discussed in Appendix 1A. The formula used is: total avoided primary energy TEU renewable energy in TEU + total avoided primary energy in which TEU is the total energy use in the Netherlands, and total avoided primary energy is renewable energy production calculated according to this protocol. Renewable Energy Monitoring Protocol

16 3.2.2 Reference technologies for substitution Renewable energy production is expressed in amounts of secondary energy carriers, in other words the energy products: electricity, heat and (various types of) fuel. For each one, assumptions can be made about the reference technology: the conventional method by which that energy product would otherwise be generated. Because the efficiency of that production method is known, we can determine what the theoretical energy content would have been of the conventional energy carrier that is no longer needed. This amount is called the (avoided) primary energy. Via the avoided primary energy, all energy sources can be compared with one another. Moreover, using a reference technology makes it possible to quantify of emissions of polluting substances that are avoided by using a renewable energy source The choice of reference technologies When choosing reference technologies, several different conditions must be met. Firstly, information about the reference technologies must be available, preferably in annually published statistics. Furthermore, as conventional technologies are also continually improving in terms of efficiency and emissions, comparisons must always be reported on using data from the same year in which the renewable energy was produced. That means that for any current year, reference data for that year must be available - or at least must be as recent as possible. For a preview, data covering the future are necessary. Because we know approximately what the conventional production picture will look like in 2010 and 2020, we can (if need be, by interpolating or even extrapolating) make an approximation of the contribution of a specified renewable energy source at any point in the future. This protocol has chosen a limited number of reference technologies (table 3.2). For gas and other biofuels the choice is fairly simple; for electricity, heat and energy saving we need to say more: Electricity uses as a reference the mix, during the period considered, of accepted technologies used to generate electricity from fossil and nuclear fuels (including both centrally generated and local capacity). This assumes central generation including power stations with little heat use (up to 20%). Power stations that use a lot of heat (more than 20%) are not included. This will be developed more in the 2010 Energy Saving Monitoring Protocol. Thereby a distinction can be made between a situation without transport and distribution losses (1a) and a situation with losses (1b); each has its own set of key figures. In the case of co-combustion, the direct substitution method is applied when calculating renewable energy production (1c, 1d). Heat production makes a distinction between small-scale capacity (<100 kw th ), as used in households and services, and large-scale capacity (>100 kw th ) as used in industry, agriculture and swimming pools. For larger capacities, gas boilers are used as a reference (3); for smaller capacities a further distinction is made between hot water apparatus (2a) and space heating equipment (2b). Solar thermal systems do not fall into this category and are treated separately (reference 7). In the case of co-combustion for heat production, the same reference technologies apply as for electricity (2c, 2d). Transport fuels use the amount of fuel replaced as a reference. Some renewable energy sources cannot be directly observed, for example if the energy production takes place behind the meter, or if they are incorporated into larger systems and only contribute to overall energy savings. For such sources (7) the reference technology is not always obvious. This applies for example to solar thermal systems and in heat/cold storage. In such cases it is more practical to express the contribution of the energy source directly as avoided energy products (energy saving) or as avoided primary energy (fuel saving). Renewable Energy Monitoring Protocol

17 Sometimes a renewable source directly replaces a fossil source without the direct production of heat or electricity, such as when biomass is co-combusted in an industrial process. In that case the directly avoided fuel is assumed to be the amount of renewable energy, and no reference technology is used. This appears in table 3.2. as direct substitution. Table 3.2: Reference technologies per renewably derived energy product Energy product Reference technology electricity 1a) electricity production (mix, at production) 1b) electricity production (mix, delivered to end user) 1c) direct substitution of coal (co-combustion in coal-fired power stations) 1d) direct substitution of gas (co-combustion in gas-fired power stations) heat 2a) small capacity: hot water apparatus (general) 2b) small capacity: space heating apparatus 2c) direct substitution of coal (co-combustion in coal-fired power stations) 2d) direct substitution of gas (co-combustion in gas-fired power stations) 3) large capacity: gas boilers gas 4) natural gas other biofuels 5) natural gas 6) direct substitution of fossil transport fuels energy saving 7) various Industrial heat or 8) direct substitution electricity Cold production 9) compression refrigerator Once a reference technology has been chosen for each energy product, references can also be assigned to the energy sources. Some sources can deliver more than one kind of energy product; in which case more than one reference technology may apply. Chapters 4 and 5 give the reference technologies for each energy source Efficiencies of the reference technologies Using quantitative information on the energy products, conversion efficiencies, and emissions of the reference technologies and renewable energy sources, we can calculate the avoided primary energy and avoided emissions of carbon dioxide and acidifying agents. Depending on of the aim of the report (historical development, current contribution, or forecast), key figures regarding the past, present and future are needed. These figures are given in this section; the calculation methods required will be covered in the following chapter. Electricity production The conversion and key emissions figures for electricity production (references 1a-d) are shown in table 3.3. In the past these have been based on data from the statistics on Electricity Production Means from Statistics Netherlands, and the National Fuels List published by NL Agency. Further explanation of the calculation of the reference efficiency can be found in the 2010 Energy Saving Monitoring Protocol. That Protocol does not use CO 2 emissions factors. For the Renewable Energy Monitoring Protocol these are stipulated from the average emissions factor of coal, natural gas and nuclear energy, weighted by the input of these three energy carriers in the reference park. The conversion efficiencies have been calculated on the basis of the lower heating value of the energy content of the fuels, and on the energy content of the net produced electricity and heat energy carriers. That only concerns electricity production from non-renewable sources, Renewable Energy Monitoring Protocol

18 such as coal, natural gas or nuclear energy. That only concerns those production units that are primarily intended for electricity production, sometimes found to a limited extent in heat production. Part of the input is assigned to the heat production, as a result of which the electrical efficiency appears somewhat higher that the relation between total input and electricity production. This concerns all production in the Netherlands, including production for other countries. Exported or domestically consumed electricity is assigned pro rata to fuel input, so that the overall efficiency is also valid for domestic use. In the case of an imported amount, it is assumed that this was generated with the same average efficiency as in domestic production. Thereby the import of electricity has no influence on the average efficiency used. Further explanation can be found in Appendix 1. It is also assumed that renewable energy sources save on domestic production, not on the import of electricity. If the transport and distribution losses between the renewable energy source and the end user of the electricity generated are ignored (reference 1b), the reference key figures must be corrected because losses do appear with conventional technologies. These are approximately 4.4%. The conversion efficiencies from reference 1a are therefore multiplied by a loss factor f V, which is based on this loss percentage. Table 3.3: Overview of the electrical conversion efficiencies and emissions factors for electricity production (reference 1a and 1b) for the period Source: ECN and Statistics Netherlands 2010, calculation for Energy Saving Monitoring Protocol, May 2010 Key figure unit electrical conversion efficiency (lower heating value) - at production (1a) - delivered to end user (1b) CO 2 emissions factor - average - at production (1a) - delivered to end user (1b) transport and distribution losses % % kg/gj prim kg/kwh e kg/kwh e % At the time of publication of this protocol, the future conversion efficiencies had not been determined. ECN Policy Studies will calculate these on the basis of reference estimates. Electrical efficiencies were determined in different ways in the Renewable Energy Monitoring Protocol and the Energy Saving Monitoring Protocol. Since both protocols have been revised, it was decided to bring the two closer together and to harmonise the calculation of the reference efficiency. Therefore you will find different efficiencies and CO 2 emissions factors than were used in the previous version of this Protocol. The outcome of the calculations of different renewable energy shares, performed by Statistics Netherlands, will therefore also change. The exact method for calculating the reference efficiency can be found in the 2010 Energy Saving Monitoring Protocol. Heat production Heat production in households and services usually takes place using gas-fired and electrical equipment with small capacities (<100 kw th ). This is enough to provide domestic hot water (DHW) and space heating. When a renewable energy source is used for heating tap water, in general it only provides part of the energy required; the remaining heat is produced by a conventional water heating appliance. Standby losses are barely reduced as a result of using Renewable Energy Monitoring Protocol

19 the renewable source, when compared to the situation in which the conventional appliance covers all the heating. For this reason we use heat generation efficiency and not usage efficiency when calculating the avoided primary energy: the relation between the energy taken up by the water and the energy supplied (thus excluding standby and pilot light losses). In practice large variations can appear, which in some cases are influenced by the renewable energy source. For DHW production therefore we use a gas-fired hot water appliance, with a production efficiency of 65% (lower heating value), as a fixed reference (2a). The assumption is that renewable energy sources primarily replace high efficiency gas boilers. With space heating equipment, a distinction can be made between individual central heating, (gas) heaters and communal (district) heating. This protocol uses a gas boiler with a space heating efficiency of 95% (lower heating value) as a fixed reference (2b) for all three. For heat production in industry and agriculture, large capacities (>100 kw th ) are needed. This also applies for example to swimming pools and drying processes. Unfortunately complete data are not available about the appliances used and their average output efficiency. Therefore a gas boiler with an average efficiency of 90% (lower heating value) is used as a reference (3) for heat production. The data for these are shown in table 3.4. Table 3.4: Overview of the thermal conversion efficiencies (lower heating value) and emissions factors for the period 1990 to 2020 (inclusive) for domestic hot water production and space heating (references 2a-b and 3) Key figure eenheid conversion efficiency when capacity <100 kw th DHW (2a) space heating (2b) % % Conversion efficiency when capacity >100 kw th DHW and space heating (3) % CO 2 emissions factor kg/gj Energy saving For a number of renewable energy sources, primarily in heat production, the contribution mainly takes the form of a saving, in other words the use of electricity or natural gas is reduced. In such cases (reference 7), this is calculated using the key figures from the previous categories. Chapter 4 discusses how this calculation takes place. For commonly applied technologies this can be done on a generic level (for example as a general statistical key figure for energy saving with solar thermal systems) or on a more detailed level for technologies in which individual projects vary greatly in size (ground heat, heat/cold storage, heat pumps) and where information is available about the specific reference situation. Renewable Energy Monitoring Protocol

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