Nagel:Renewable Energy in Europe

Transcription

1 Nagel:Renewable Energy in Europe 1. An example: The German Renewable Energy Sources Act (EEG) of 2000, 2. Factual development in the EU 3. The bill of The RES-Electricity Directive of The Emission Trade Directive of Feed-in Regulations or Quotas or Both?

2 The German RES-Act (EEG) Enacted in 2000 Amends a preceding act of 1990 Feed-in regulation Fixed price guaranteed for the producer Guaranteed access to the local grid Grid company pays the fixed premium Consumer pays the fixed premium finally

3 The Battles in the Courts The German RES-bill (EEG) was enacted while a case challenging the preceding law of 1990 under EC-law was pending in the ECJ. The EC-Commission opposed the acts of 1990 and 2000 (Art. 87 EC, state aid). The ECJ upheld the law in The EC-Commission gave up its opposition more than one year later (!).

4 Factual Development In 2003 Germany had installed more than 60% of the photovoltaic capacity and more than 50% of the wind capacity in the EU. Germany is one of the technological leaders. This means more than new jobs in renewables ( new jobs in wind energy.) There is a bandwagon effect. But: Quota regulations in Denmark, Ireland, Italy, Sweden, and UK.

5 The Bandwagon Effect Spain introduced a feed-in regulation almost simultaneously. Austria, France, and others follow. UK gave up its tender scheme in A majority of the new EC-member states has feed-in regulations- There remain two predominant concepts: Feed-in and quota regulations.

6 The RES-Electricity Directive of 2001 Indicative, not compulsory targets for 2010 Target: Increase of renewables from 14% of gross electricity consumption in 1997 to 22,1% in Specific targets for each member state Support schemes not prescribed Grid access and reporting obligations

7 EU Target: from 14% (1999) to 22,1% (2010) for selected Member States

8 Feed-in Regulation Fixed price, different for each type of RES Guaranteed grid access Supports long-term commitment of state and producers Incentives for new entrants Member states may not reach or may surpass the target in 2010 The setting of the price is crucial.

9 Quota Regulation Introduced in Belgium, Italy (2001), Denmark (2002), Sweden, Poland, and UK Market forces decide how the target is met. Penalties secure the positive effect. Supports technologies profitable in the short run (water, wind). Advantageous for incumbent firms.

10 The EEG- Bill of 2004 Biomass: Higher tariffs Geothermal energy: Higher tariffs Solar PV, Higher (enacted in 2003) Hydro Power: Lower tariffs (but differentiations) Wind energy: Lower (efficiency gains?) State-owned companies obtain EEGprotection.

11 The Emission Trade Directive of 2003 Reduction of greenhouse gases emission in the EU by 8% (from 1990) until 2012 Covers emissions from large stationary sources Member states may auction up to 5% for and up to 10% for 2008 to 2012 Penalties: 40 Û per ton for and 100 Û thereafter Allocation Plans of the member states suggest that directive will not function before 2008

12 Feed-in or Quota Regulations? A) Reduction of brown emissions: Quotas are preferable because externalities of existing technologies are embedded in the price (internalised). B) Support of emission-free green energy: Feed-in regulations provide more accurate incentives for R & D. Being in a different stage of development each type of energy must and can be treated differently.

13 The Combination of the two Does emission-trading cause Òperverse effectsó if combined with feed-in regulations? Feed-in regulations cause a higher share of RESelectricity in the market. The additional quantity of RES-electricity must be deducted from the quantity allowed for electricity from fossil sources. The change to RES-electricity not only reduces the emission of greenhouse gases but also improves consumer health and the supply of energy.

14 Conclusion Green electricity: Feed-in regulations are preferable to quotas. Brown electricity: Quotas are preferable. The emission trade directive of 2001 is not successful yet. Quotas must take into account the effects of feed-in regulations for green electricity.