Potential of biomass‐fired combined heat and power plants considering the spatial distribution of biomass supply and heat demand

Combined heat and power (CHP) plants fired by forest wood can significantly contribute to attaining the target of increasing the share of renewable energy production. However, the spatial distribution of biomass supply and of heat demand limits the potentials of CHP production. This article assesses CHP potentials using a mixed integer programming model that optimizes locations of bioenergy plants. Investment costs of district heating infrastructure are modeled as a function of heat demand densities, which can differ substantially. Gasification of biomass in a combined cycle process is assumed as production technology. Some model parameters have a broad range according to a literature review. Monte‐Carlo simulations have therefore been performed to account for model parameter uncertainty in our analysis. The model is applied to assess CHP potentials in Austria. Optimal locations of plants are clustered around big cities in the east of the country. At current power prices, biomass‐based CHP production allows producing around 3% of the total energy demand in Austria. Yet, the heat utilization decreases when CHP production increases due to limited heat demand that is suitable for district heating. Production potentials are most sensitive to biomass costs and power prices. Copyright © 2009 John Wiley & Sons, Ltd.     

ADMIRE-REBUS: modeling the European market for renewable electricity

ADMIRE REBUS is a dynamic simulation model of the international market for renewable electricity. It pays explicit attention to trade barriers, discriminative support policies, risks, and other imperfections inherent in a market in transition. The model matches national supply curves (based on costs and potentials) with policy-based demand curves so as to take into account the discriminative characteristics of policies, where appropriate, and the ability of producers to choose whether they produce for the domestic market or whether they wish to trade their production. Because of the different levels of national support schemes, different submarkets emerge with local equilibrium prices. The paper describes the way in which the model simulates the policy-induced renewable electricity market, and shows results concerning the contribution of several important technologies in five scenarios that differ with regard to assumed ambition level, trade barriers, and timing of EU member states' policies on renewable electricity. Within the chosen scenarios, the model shows wind offshore to be the most sensitive technology with regard to the policy environment.     

Cost and benefit of renewable energy in the European Union

An assessment is made as to whether renewable energy use for electricity generation in the EU was beneficial throughout the cycle of high and low oil prices. Costs and benefits are calculated with the EU statistics for the period of low oil prices 1998–2002 and high oil prices 2003–2009. The share of renewable energy in electricity production was 21% of all energy resources in 2008, growing on average 5% a year during 2003–2008 compared to nil growth of the fossil fuels mix. Correlations show significant impacts of growing renewable energy use on changes in consumers' electricity prices during the high and rapidly increasing fossil fuel prices in the period 2005–2008. The growing use has contributed to price decrease in most countries that use more renewable energy and price increase in many countries that use little renewable energy. Costs and benefits are assessed through comparison between the observed consumers' electricity prices and simulated prices had they followed the costs of fossil fuel mix. A net benefit of 47 billion euro throughout the oil price cycle is attributable to the growing use of renewable energy, which is on average 8 billion euro a year. This net benefit is larger than the total public support for renewable energy. The net benefit would be larger had the EU anticipated high oil prices through more public support during low oil prices, as this would create productive capacity, but countries' interests increasingly differed. An anti-cyclic EU policy is recommended.     

The BEPE – Break-Even Price of Energy: A financial figure of merit for renewable energy projects

Renewable energy is a fact, with more than 1580 GW installed worldwide growing up to 2350 GW expected for 2018 [1]. Driven by increasing conventional fuels prices and limited reserves, the energy mix for covering the world's demand is rapidly including renewable energy sources, providing carbon free energy as well as energy independence. Some studies claim the costs of renewable energy as one of the most important barriers to accelerate their deployment and reach a complete change in the energy model [2]. In this scenario, the cost of energy becomes one of the most important figures of merit for analyzing renewable energy projects. However, defining the cost of energy as figure of merit is not a trivial issue and most times is being done with different criteria, thus leading to different results difficult to compare. In this paper, a new figure of merit for renewable energy projects is presented alongside the methodology for its calculation. This figure of merit is not based on the cost of energy itself, but on the price at which this energy has to be sold in an energy market to result into a profitable project. The Break-Even Price of Energy, BEPE, is proposed as a financial indicator focused on renewable energy projects developers, and takes into account all the specific aspects of each legal and financial framework. This is of major importance when considering the present renewable energy scenario, with vast influence of local conditioning factors in the cost of energy depending on the project location and technology [3]. Thus, this indicator makes it possible to compare different specific renewable energy projects, and can really help developers to decide amongst different technologies, designs, locations, legal frameworks, etc.     

Valuing the attributes of renewable energy investments

Increasing the proportion of power derived from renewable energy sources is becoming an increasingly important part of many countries's strategies to achieve reductions in greenhouse gas emissions. However, renewable energy investments can often have external costs and benefits, which need to be taken into account if socially optimal investments are to be made. This paper attempts to estimate the magnitude of these external costs and benefits for the case of renewable technologies in Scotland, a country which has set particularly ambitious targets for expanding renewable energy. The external effects we consider are those on landscape quality, wildlife and air quality. We also consider the welfare implications of different investment strategies for employment and electricity prices. The methodology used to do this is the choice experiment technique. Renewable technologies considered include hydro, on-shore and off-shore wind power and biomass. Welfare changes for different combinations of impacts associated with different investment strategies are estimated. We also test for differences in preferences towards these impacts between urban and rural communities, and between high- and low-income households.     

Electricity generation from renewable energy sources in Germany — Potentials, costs and implementation strategies

The objective of this paper is to analyse the technical potentials and the costs of renewable energy sources for electricity generation in Germany and to define and discuss possible strategies for a largescale implementation of such renewable sources into the German power generation system. Four renewable options are discussed: hydropower, windtechnical and photovoltaic electricity generation and the possible electricity production of biomass. First the technical potentials are identified for the present and future reference years. Then the specific costs are analysed, as well for the present and the future. Finally an exemplary implementation strategy is defined and discussed leading to a total renewable electricity generation in the year 2020 of about 86 TWh/a which would be a share of about 19 % of the total present electrical energy demand.     

Cooperation mechanisms to achieve EU renewable targets

There are considerable benefits from cooperating among member states on meeting the 2020 renewable energy sources (RES) targets. Today countries are supporting investments in renewable energy by many different types of support schemes and with different levels of support. The EU has opened for cooperation mechanisms such as joint support schemes for promoting renewable energy to meet the 2020 targets. The potential coordination benefits, with more efficient localisation and composition of renewable investment, can be achieved by creating new areas/sub-segments of renewable technologies where support costs are shared and credits are transferred between countries.Countries that are not coordinating support for renewable energy might induce inefficient investment in new capacity that would have been more beneficial elsewhere and still have provided the same contribution to meeting the 2020 RES targets. Furthermore, countries might find themselves competing for investment in a market with limited capital available. In both cases, the cost-efficiency of the renewable support policies is reduced compared to a coordinated solution.Barriers for joint support such as network regulation regarding connection of new capacity to the electricity grid and cost sharing rules for electricity transmission expansion are examined and examples given. The influence of additional renewable capacity on domestic/regional power market prices can be a barrier. The market will be influenced by for example an expansion of the wind capacity resulting in lower prices, which will affect existing conventional producers. This development will be opposed by conventional producers, whereas consumers will support such a strategy.A major barrier is the timing of RES targets and the uncertainty regarding future targets. We illustrate the importance of different assumptions on future targets and the implied value of RES credits. The effect on the credit price for 2020 is presented in an exemplary case study of 200 MW wind capacity.     

Towards a low carbon energy future – Renewable energy cooperation between Germany and Norway

Renewable energy is a cornerstone of German climate change policies. Germany has adopted particularly ambitious renewable energy targets, and is now implementing an Energiewende – a transition to a nuclear-free and low-carbon energy system. The transition could be eased through European cooperation. This article investigates the economic, political, environmental and technological factors that act as drivers and barriers to renewable energy cooperation between Germany and Norway. The article finds that German actors see Norwegian electricity as a means for enhancing the stability of their electricity system as Germany shifts to a greater reliance on renewables. In Norway the picture is more mixed. Norwegian state-owned electricity producers and grid operators are interested in cooperation largely out of profit motives, but expect Germany to create a favorable environment for investors. Energy-intensive industries and consumers on the other hand, are afraid that more electricity cooperation with Germany will raise electricity prices. The Norwegian environmental movement is split on the issue. Parts of the movement see renewable energy cooperation as an important step towards a European low-carbon energy future. Nature and outdoor organizations, however, argue that new renewable energy infrastructure, including pumped-storage hydropower, will result in major environmental impacts. If cooperation is to be achieved, these economic and environmental concerns will have to be taken seriously.     

Cost‐effectiveness analysis of energy efficiency measures in the Swiss chemical and pharmaceutical industry

Energy efficiency improvement is an effective way of reducing energy demand and CO₂ emissions. Although the overall final energy savings potential in chemical industry has been estimated in a few countries, energy efficiency potentials by concrete measures applicable in the sector have been scarcely explored and their associated costs are hardly analyzed. In Switzerland, the production of chemicals and pharmaceuticals exceeds all other industrial sectors in terms of energy use and CO₂ emissions, and it accounted for 22% of the total industry's overall final energy demand and 25% of the CO₂ emissions related to non‐renewable energy sources in 2016. In this study, the economic potentials for energy efficiency improvement and CO₂ emissions reduction in the Swiss chemical and pharmaceutical industry are investigated in the form of energy efficiency cost curves. The economic potential for final energy savings and CO₂ abatement based on energy‐relevant investments is estimated at 15% and 22% of the sector's final energy use and fossil fuel‐related CO₂ emissions in 2016, respectively. Measures related to process heat integration are expected to play a key role for final energy savings. The economic electricity savings potential by improving motor systems is estimated at 15% of the electricity demand by these systems in 2016. The size of economic potential of energy efficiency improvement across the sector decreases from 15% to 11% for 0.5 times lower final energy prices while the size increases insignificantly for 1.5 times higher final energy prices. The additional power generation potential based on Combined Heat and Power plants is estimated at 14 MW for 2016. This study is a contribution to the so far limited international literature on economic energy efficiency measures applicable in this heterogeneous sector and can support policy development. The results for specific costs of energy efficiency measures can also be adapted to other parts of the world by making suitable adjustments which in return may provide useful insights for decision makers to invest in economically viable clean energy solutions.     

Bioenergy in Ukraine—Possibilities of rural development and opportunities for local communities

This review paper deals with colligated aspects of the BioPlus Project (ERA-ARD) implemented by Institute of Technology and Life Sciences (Poland) and Lithuanian University of Agriculture Institute of Agro-Engineering (Lithuania) in cooperation with National University of Life and Environmental Sciences of Ukraine Institute of Ecobiotechnologies and Bioenergy (Ukraine). The drawn inferences intended to be an auxiliary material for policy makers and can briefly indicate on direction of the regional development of rural Ukraine, focusing on: (i) country's specific and sub-regional assessments of renewable energy potentials and spheres of its application; (ii) identification of major barriers for the expansion of renewable energy technologies and policy guidance to overcome those barriers; (iii) recommendations for future actions and strategies concerning renewable energy in Ukraine. The article concludes that low contribution of bioenergy towards rural development is to a large extent driven by energy policy that inhibits the delivery and use of modern energy sources in rural Ukraine. Consequently, an incentive for achieving bioenergy's future that has greater relevance to development of the Ukraine's regions requires a mix of policy tools and institutional actions, briefly summarized in this paper.     

Efficient pricing and investment in electricity markets with intermittent resources

Facing growing technological and environmental challenges, the electricity industry needs effective pricing mechanism to promote efficient risk management and investment decisions. In a restructured electricity market with competitive wholesale prices and traditionally regulated retail rates, however, there are technical and institutional barriers that prevent dynamic pricing with price responsive demand. In regions with limited energy storage capacity, intermittent renewable resources present special challenges. This could adversely affect the effectiveness of public policies causing inefficient investments in energy technologies. In this paper, we present an updated economic model of pricing and investment in restructured electricity market and use the model in a simulation study for an initial assessment of renewable energy strategy and alternative pricing mechanisms. A key objective of the study is to shed light on the policy issues so that effective decisions can be made to improve efficiency.     

ASEAN towards clean and sustainable energy: Potentials,utilization and barriers

This paper reports the outcome of the project on “Capacity building in formulating harmonized policy instruments for the promotion of Renewable Energy and Energy Efficiency in the ASEAN member countries”. With the growing concerns about green house gas (GHG) emission and consequent climate change, renewable energy sources have become more attractive option for electricity generation around the world. Studies have been made on the status of renewable energy potential and utilization, major barriers in promoting renewable energy in ASEAN countries, major energy policies to overcome barriers, and existing renewable energy and energy efficiency policies in ASEAN countries. Paper concludes that ASEAN has not utilized its renewable energy resources anywhere near to the potential. Analysis found that the key factor that has to be amended is “policies and regulations in renewable energy and energy efficiency” at both country level and regional level. But, ASEAN is not yet ready for the full harmonization of the policies. However, it recommends that, with the project outputs it is possible to focus on the specific policy instruments common to most of the member countries, such that it could use to augment ASEAN Plan of Action for Energy Cooperation (APAEC) initiatives.     

我国未来可再生能源开发利用的战略思考

本文综合分析了我国可再生能源发展的资源潜力、技术水平、当前存在的主要障碍。我国可再生能源资源潜力大,在未来的能源供应中可以形成举足轻重的地位;我国的可再生能源技术发展有了一定的水平,产业初具规模,具备大规模发展的基础,处于商业化发展的前期阶段。在障碍分析和国际经验分析的基础上,本文指出可再生能源立法是促进可再生能源发展的有效手段之一,并提出了我国可再生能源立法的目标和方向。     

Renewable energy perspectives and support mechanisms in Taiwan

The use and development of renewable energy has become a major policy incentive in Taiwan. Some measures, promoting renewable energy, were previously instituted, but many legal and institutional barriers, hampering the development of renewable energy, remain; thus, it is necessary to encourage discussion to eliminate barriers and implement support mechanisms. This article reviews current measures and addresses the perspectives and support mechanisms of renewable energy in Taiwan. Basically, Taiwan's short, medium and long-term development progress and strategies for renewable energy sources can be seen to correspond to current international initiatives; in practice, however, many issues (such as establishing domestic renewable energy technologies and inter-departmental coordination mechanisms) must still be addressed, in order to actively promote the utilization of renewable energy.     

Techno-economic assessment of hydrogen production processes for the hydrogen economy for the short and medium term

Hydrogen is expected to play a significant role in the future energy system. A key enabler to a hydrogen-including economy will be the development and deployment of processes that can produce hydrogen whilst satisfying the criteria for sustainability, i.e. economic competitiveness, environmental protection and security of energy supply. This paper evaluates selected hydrogen production processes based on natural gas steam reforming, coal and biomass gasification and water electrolysis. These options are expected to play a significant role in the short to medium term. Industrial large-scale processes, using natural gas and coal, will constitute the most important routes. However, increasing prices for natural gas are likely to make coal gasification more competitive. Biomass gasification could become important if present technological barriers are overcome. Electrolytic hydrogen, however, will likely be practical for niche applications in the short term due to the high electricity costs, especially when electricity is generated by renewable energy sources.     

Enabling optimal energy options under the Clean Development Mechanism

This paper addresses the cost effectiveness of renewable energy technologies in achieving low abatement costs and promoting sustainable developments under the Clean Development Mechanism (CDM). According to the results of our optimal energy option's analysis, at project scale, compared with a diesel-only energy option, photovoltaic (PV)–diesel (PVDB), wind–diesel (WDB) and PV—wind–diesel (PVWDB) hybrids are very cost-effective energy options. Moreover, energy options with high levels of renewable energy, including 100% renewables, have the lowest net present cost and they are already cost effective without CDM. On the other hand, while the removal of about 87% carbon dioxide emissions could be achieved at negative cost, initial investment could increase by a factor of 40, which is one of the primary barriers hindering wider renewable energy applications in developing countries, among others. Thus, in order to increase developing countries’ participation in the carbon market, CDM policy should shift from a purely market-oriented approach to investigating how to facilitate renewable energy projects through barrier removal. Thus, we recommend that further research should focus on how to efficiently remove renewable energy implementation barriers as a means to improve developing countries’ participation in meaningful emission reduction while at the same time meeting the needs of sustainable economic development.     

Supply of renewable energy sources and the cost of EU climate policy

What are the excess costs of a separate 20% target for renewable energy as a part of the EU climate policy for 2020? We answer this question using a computable general equilibrium model, WorldScan, which has been extended with a bottom-up module of the electricity sector. The model set-up makes it possible to base the calibration directly on available estimates of costs and capacity potentials for renewable energy sources. In our base case simulation, the costs of EU climate policy with the renewables target are 6% higher than those of a policy without this target. The uncertainty in this estimate is considerable, however, and depends on our assumptions about the availability of low-cost renewable energy: the initial cost level, the steepness of the supply curves and share of renewable energy in the baseline. Within the range we explore, the excess costs vary from zero (when the target is not a binding constraint) to 32% (when the cost progression and the initial cost disadvantage for renewable energy are high and its initial share is low).     

Lessons from market reform for renewable integration in the European Union

The European Union (EU) has the most advanced, mature, and liberal energy markets that gave rise to the most dramatic drop in wholesale energy prices, whose fallen, however, has not been translated into a reduction in retail energy prices. Instead, energy prices in Europe rose above inflation year-in-year-out, and are considerably higher compared with major economic partners. This paper highlights the key limitations in the EU market designs and network access toward renewable integration, and the wide range of reforms that the EU is currently undertaken across the Member States to achieve two goals: to make the market fit for renewable, and to set a practical example of how a competitive economy can be built on a sustainable and affordable energy system. This paper concludes with key recommendations to developing nations, particularly in addressing heavy renewable curtailment.     

Review of green electricity production in Slovenia

The article presents a short review of electricity production from renewable energy sources in Slovenia. In Introduction the term of “green electricity” is defined. Comparison of structures of electricity production is presented for the years 1990 and 2003. The main part of the article presents an approximate data for technical and theoretical potentials of renewable energy sources in Slovenia. State-of-the-art regarding individual technologies of electricity production from renewable energy sources and political targets according to Directive 2001/77/EC for green electricity are also presented. At the end of the article different stimulation models are described and uniform prices and premiums for the purchase of green electrical energy are presented.     

美国可再生能源证书交易市场

可再生能源发电产业正由早期靠政府扶持逐步进入商业化阶段,其中以可再生能源配额制(RPS)和可再生能源证书(RECs)交易市场为典型。RECs分为捆绑式和非捆绑式两种形式,其主要商业应用模式包括:用来满足可再生能源RPS要求;批发捆绑式RECs;作为独立产品销售非捆绑式RECs;远期销售RECs;聚集小系统的RECs参与强制和自愿市场。RECs的价格是通过市场竞争来决定的,体现了可再生能源所具有的环境价值,在理想情况下,RECs的价格等于可再生能源和常规电力的边际成本之差。此外,RECs价格还受到很多其他因素的影响。RECs市场由自愿市场和强制市场组成,交易方式主要有3种:单一短期合同购买非捆绑式RECs;短期和长期合同混合购买非捆绑式和捆绑式RECs;在零售市场没有开发的情况下,美国公用事业主要依靠长期合同购买捆绑式电力。为了保证RECs交易的方便和非重复性销售,购买RECs需通过审计机构独立认证和核实。美国的许多思路和做法值得我国借鉴。