European Economic Area Financial Mechanism. 2009-2014 Programme National Climate Policy Utilization of renewable energy sources and their role in climate change mitigation Norsk Energi s experience Sergei Faschevsky Senior consultant Norsk Energi sergei.faschevsky@energi.no www.energi.no
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Norsk Energi Industry association established in 1916 80 experts with BSc, MSc and PhD Consultancy, engineering services, analysis and training Independent from equipment suppliers and manufactures 90% of turnover from private industry 10 % international projects unded by Norwegian government and IFIs
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District heating 17 consultants works with district heating projects.
Energy sources to district heating in Oslo(GWh/year) Combustion of solid waste Heat pumps Oil boilers Woody biomass Electric boilers Waste heat Natural gas 8
Boiler houses on biomass 100 MW bio oil boiler into the building at Rodeløkka 56 MW wood powder boiler at Haraldrud varmesentral. 9
Skøyen heating central District heating central built in the mountain at Skøyen Municipal sewerage as heat source Total installed capacity: 26,4 MW Pump no. 1: 18,4 MW (biggest in Norway) Pump no. 2: 9,2 MW Fully automatic, remote controlled Only one operator checks in daily or every second or third day.
Akerhus Energy park Akershus Energy Park Energy, research, education Cooperation with university Solar heating Cooperation with research institution Wood chips Bio oil as peak and reserve load 1200 m³ accumulation tank Bio gas from land fill Heat pump The heating central is remotely controlled 24 hrs
Utilization of solar energy in district heating? 12
% from max. Heating demand Balancing the demand with solar thermal supply 120 100 80 60 Thermal energy demand Generation capacity, solar 40 20 0 1 2 3 4 5 6 7 8 9 10 11 12 month 13
Accumulator tanks built in ground? Alternatively to store energy in the DH net? 14
Klemetsrud Waste Management Plant Combustion of household waste industrial waste landfill gas Combined heat & power production Built in 1983/1986/2010 Annual capacity: 155.000 tonnes of waste Annual production: 70 GWh el 300 GWh t
Integrated use of energy - Mosseporten Co-generation plant, 8 GWh-el/year Landfill gas capture Steam, district heating and power supply Power to deep-freeze storage built in a rock 17
District heating coming future vision Waste heat recovery from power plants, solid waste combustion facilities, redundant heat from industry Renewable energy generation from biofuels and heatpumps based on waste water treatment, seawater and groundwater District heating Heat to customers Fossil fuels - to cover peak demand and reserve of capacity Heat losses
Waste heat recovery from metallurgical furnaces
Finnfjord AS world s largest heat recovery project from FeSi - production - Ca 100 MW avgasskjel -Ca 40 MW turbin -Potensial for 340 GWh elproduksjon 20
Norsk Energi s International Projects NW-Russia bioenergy PDD Strezhevoi power plant Tadsjikistan small hydropower Ukraine EE programme Georgia CDM, small hydropower Azerbaijan EE building sector Armenia CDM, small hydropower Bosnia CDM district heating sector Serbia, EE projects Macedonia IPPC, haz. waste China WHR ferroalloy industry South Sudan, energy policy advice 23
Solar energy for 5 remote settlements in Karelia
Wind-diesel and biomass gasification Archanglesk region
Calculation of solar energy potential for quick project identification
Solar calculator interest in Norway
Commercially viable conditions for RE development Every dollar invested into the renewable energy returns 3 dollars (IEA, 2013)
SPECIFIC INCENTIVES AND DISINCENTIVES BARRIERS Feed-in tariffs are often too low or not guaranteed for long-term Low level of investment subsidies Strong lobbies of conventional energy industries Insufficient grid development Lack of priority grid access in many countries Lack of RES equipment manufacturing DRIVERS Considerable technical potential EU/ national legislation/targets Economic instruments (feed-in tariffs, green certificates, investment subsidies, tax exemptions) Growing energy prices
Specific Issues Emerging market - high risk profile Ownership, different interests/power imbalances New operational entity? Access to grid? Measurable results and revenue collection Transfer of risks Carbon financing
3,00 Base load <-> Peak load Example optimal dimensioning of base load and peak load [MW] 2,50 2,00 Olje/El: Oil/El: 1,1 GWh = = 20,5% 20,5% Biokjel Biomass = 1,2 boiler MW = 1,2 MW Total Total energileveranse energy deliverance = 5,2 GWh = 5,2 GWh 1,50 1,00 0,50 Biomasse: Biomass: 4,2 4.2 GWh GWh = 79,5% = 79,5% 0,00 0 1000 2000 3000 4000 5000 6000 7000 8000 9000 10000 TIMER HOURS
Norway and the EU-directive (renewables) Calculated percentage renewable energy consumption in Norway is approx 60 %: Consumption renewables (domestic):134 TWh Total energy consumption in Norway: 228 TWh The new renewable goal for Norway: Not decided; will be negotiated with the EU If the EU s formula decides: we have to raise by approx. 15 % (new target will be 75%). Within 2020 this requires; New production = 32 TWh, or Reduced consumption of 44 TWh...or a combination of new production and reduced consumption. 33
New targets for climate change and security of supply o Reduce CO2 emissions in Norway-> reduce fossil fuel o Increase renewable production in Norway o o o Reduce electricity for space heating. Reduce all space heating in buildings Quick development of new houses: Repeal regulations, free competition, cost-efficiency o Waste threatment and energy recovery? 34
But also challanges and barrieres: Low profitability Low electricity price- > low DH price (Price limit, Energy Act) Competition of investments: Green sertificates ensures RES EL, not RES-Heat Low electricity tax (11,6 øre/kwh / 1,5 c/kwh) Support measures: 35 mrd NOK / 4666 mill eur to the Energy Fund 250 mill euros for renewable heat and energy efficiency in the industrial and building sectors. About 60 mill eur for DHC/ year- uncertain about the future. Focus on energy effeiciency
36 Public support - access to administrative procedures. Availability of model contracts The Norwegian Regulator The Regulator offer a helpdesk about Licensing Offers a lot of data about hydrology
The one-stop-shop
Standardized process, Norway Simple application Assessment of licensing obligation Consultations The applicant only composes one application to develop hydro power, and if the permission is granted, automatically the applicant has the permission to use the water, build the power station (including the intake and the piping) and connect to the grid
Needs for booster and guidance The company does not have time to give priority to energy management. Where should we start? The company is missing resources with sufficient energy expertise. Manuals and tools exist, but it takes time to put themselves into it. Anchoring in the organization is important, but many need help to get started. Why should we introduce energy management? Who should we involve? How to organize your work? Which requirement s do we allready comply?
Mapping Climate Measures National studies have identified a significant CO2 reduction potential in buildings and industry. In addition, there is a great potential for conversion to renewable energy and the utilization of waste heat
Industry: Energy- og climate effect divided by a EE + indirekt KE sector EE + direkt KE TWh / year 1 4,2 3,5 0,7 3,2 1,7 1,5 2,1 1,5 0,6 1,9 0,9 1,1 1,8 0,1 1,7 1,9 0,9 1,0 3,2 3,0 0,1 Direkt KE Biokonvertering/ Reduksjon Aluminium Chemicals Ferro Næringsmiddel Refining Treforedling Other CO2e x 1 000 000 ton / year 2 2,8 2,9 0,1 2,1 0,5 0,1 2,0 1,3 0,9 1,3 0,5 0,8 0,5 1,1 0,5 0,3 0,4 0,9 0,6 0,3 0,1 0,3 0,8 1,7 0,3 Aluminium Chemicals Ferro Næringsmiddel Refining Treforedling Other 1 Ekskluderer klimatiltak med negativ energieffekt (trekull/biokull) 2 Inkluderer klimatiltak med negativ energieffekt (trekull/biokull) 41 Source : Norsk Energi/Carbon Limits/McKinsey
Thank you for your attention 42