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.     

Regional energy planning methodology, drivers and implementation - Karlovac County case study

Renewable energy sources (RES) are being increasingly considered as key elements in future development strategies on a national, regional and local level. This paper discusses the methodological approach to local energy planning proposed by the authors and identifies the most important drivers for its application at the regional level. This approach is different to the previous ‘top-down’ or strategic assessments as seen many times in the past in Croatia and is expected to herald a new future for the local community ownership and ‘buy-in’ to renewable energy, resulting in the greater probability of individual project success where local stakeholder sympathy is retained. The implementation of the developed approach is demonstrated on Karlovac County (western Croatia), which has considerable potential for the utilisation of different RES. The main outcomes are described: approved Regional strategy for utilisation of renewable energy sources in the Karlovac County; number of individual projects identified, supported and launched; and a Regional energy agency created as the implementing body for future renewable energy projects.     

Renewable energy potential on brownfield sites: A case study of Michigan

Federal priorities are increasingly favoring the replacement of conventional sources of energy with renewable energy. With the potential for a federal Renewable Electricity Standard (RES) legislation, many states are seeking to intensify their renewable energy generation. The demand for wind, solar, geothermal and bio-fuels-based energy is likely to be rapidly expressed on the landscape. However, local zoning and NIMBYism constraints slow down the placement of renewable energy projects. One area where land constraints may be lower is brownfields; whose development is currently constrained by diminished housing, commercial, and industrial property demand. Brownfield sites have the potential for rapid renewable energy deployment if state and national interests in this area materialize. This study investigates the application of renewable energy production on brownfield sites using Michigan as a case study. Wind and solar resource maps of Michigan were overlaid with the brownfield locations based on estimates of brownfield land capacity. The total estimated energy potential available on Michigan’s brownfield sites is 4320 megawatts (MW) of plate capacity for wind and 1535for solar, equating to 43% of Michigan’s residential electricity consumption (using 30% capacity factor). Estimated economic impacts include over $15 billion in investments and 17,500 in construction and long-term jobs.     

Algerian renewable energy assessment: The challenge of sustainability

Algeria plays a very important role in world energy markets, both as a significant hydrocarbon producer and as an exporter, as well as a key participant in the renewable energy market. Due to its geographical location, Algeria holds one of the highest solar potentials in the world. This paper presents a review of the present renewable energy situation and assesses present and future potential of renewable energy sources (RESs) in Algeria. This paper also discusses the trends and expectation in solar systems applications and the aspects of future implementation of renewable energies in the Middle East and North Africa (MENA) region status. The problem related to the use of RES and polices to enhance the use of these sources are also analysed in this paper. In addition the available capacity building, the technical know-how for each RES technology and localizing manufacturing of renewable energy equipments are defined. The co-importance of both policy and technology investments for the future Algerian markets of RES and competitiveness of the solar/wind approach is emphasized. Some examples of policy significantly impacting Algerian markets are reviewed, and the intention of the new Algerian RES initiative is discussed.     

A review of technology diffusion models with special reference to renewable energy technologies

Diffusion of renewable energy technologies (RETs) are driven by policies and incentives due to their inherent characteristics such as high upfront costs, lack of level playing field but distinct advantages from energy security, environmental and social considerations. Even after three decades of their promotion, only 20–25% of their potential has been realized. The theory of diffusion modeling allows analysis of diffusion processes and study of growth rates of different technologies and underlying diffusion factors. Their applications have focused on commercial and consumer products such as television, automobiles and IT products and their applications to RETs have been limited. Diffusion analysis of RETs have been based on barriers’ to RET adoption and techno–economic, learning and experience curve approaches. It is observed that these diffusion models when applied to commercial products do not deal with the issues of policy influences which are critical to RET diffusion. Since policies drive RET diffusion, the models for analyzing RET diffusion should allow establishing explicit relationships between the diffusion parameters and policies and their impact on diffusion rates. Given the potential of renewable energy technologies for sustainable development, the aim of this paper is to review different diffusion theory based models and their applicability to RET diffusion analysis.     

Drivers,barriers, and strategies for implementation of renewable energy technologies in rural areas in Bangladesh—An innovation system analysis

Bangladesh has good potential for harnessing renewable energy sources such as solar, biomass, wind, and mini-hydropower. The country has been experiencing a gradual shift towards exploring renewable energy resources as a driving force for rural development. A few public sector and non-government organizations have started to develop renewable energy technology (RET) projects in rural areas. The lessons learnt from different demonstrations of RET projects reveal that with careful forward planning renewable energy can provide far-reaching economic, environmental, and social benefits to people living in remote rural areas in Bangladesh. This paper identifies some of the barriers that need to be overcome for the successful development of renewable energy technology sector and betterment of rural livelihoods. It does so through a critical review of policy and institutional settings, as well as present status and lessons learnt from pilot demonstration of a number of RET projects undertaken by different organizations. The study highlights policy implications of the review with the aim of supporting decision makers in formulating renewable energy policies and future plans for Bangladesh.     

Hydrogen as an energy vector in the islands’ energy supply

Hydrogen as an energy vector can increase penetration of renewable and intermittent sources in the energy supply of the islands and it can serve as an energy vector that may allow reaching 100% renewable energy supply of island communities. This article presents summary of the results of several case studies: Island of Mljet—Croatia, Porto Santo—Madeira, Terceira—Azores, and Malta. The islands were analysed by RenewIslands methodology and it was decided to apply hydrogen as an energy vector. Different scenarios for each island were modelled by H₂RES software and required installed powers of necessary technological options are described for chosen scenarios.     

Contribution of green energy sources to electrical power production of Turkey: A review

Green power products may be seen as a means of fostering renewable energy sources (RES) because they create and channel consumer demand for environmentally sound power generation. Turkey also has a large potential for renewable energy exploitation in a number of areas. Clean, domestic and renewable energy is commonly accepted as the key for future life, not only for Turkey but also for the world. The renewable energy contribution in the total primary energy production is insignificant. The alternative and renewable energy systems have been neglected so far in Turkey but must be included in the new energy programs. In this context, Renewable Energy Law was enacted in 2005 in order to encourage renewable-based generation in competitive market conditions. Supporting mechanisms such as feed-in tariffs and purchase obligation are defined in the law, in conformity with the EU legislation and practice. These mechanisms are envisaged to facilitate the development of power plants based on RES.     

可再生能源与能效项目中第三方融资的作用

新型可再生能源以及能效技术应用的主要的障碍之一，在于投资不足和对现代融资机制的操作和功能认识不足。传统融资方案的融资风险(也就是借贷方案、产权集资等)，加上先进可再生能源技术不断增加的技术及绩效方面的风险，对可再生能源项目的发展构成了额外的限制。现代融资机制提供一系列可供选择的优势，包括减少传统融资方案所承担风险的影响、为潜在投资者和能源用户提供具有吸引力的选项。可以预期，现代融资机制的应用将强化可再生能源技术的推广。文章全面介绍了第三方融资，以期能对可再生能源的发展和推广有所助益。     

Analysis of the EU renewable energy directive by a techno-economic optimisation model

The EU renewable energy (RES) directive sets a target of increasing the share of renewable energy used in the EU to 20% by 2020. The Norwegian goal for the share of renewable energy in 2020 is 67.5%, an increase from 60.1% in 2005. The Norwegian power production is almost solely based on renewable resources and the possibility to change from fossil power plants to renewable power production is almost non-existing. Therefore other measures have to be taken to fulfil the RES directive. Possible ways for Norway to reach its target for 2020 are analysed with a technology-rich, bottom-up energy system model (TIMES-Norway). This new model is developed with a high time resolution among others to be able to analyse intermittent power production. Model results indicate that the RES target can be achieved with a diversity of options including investments in hydropower, wind power, high-voltage power lines for export, various heat pump technologies, energy efficiency measures and increased use of biodiesel in the transportation sector. Hence, it is optimal to invest in a portfolio of technology choices in order to satisfy the RES directive, and not one single technology in one energy sector.     

Feed-in tariffs for promotion of energy storage technologies

Faster market integration of new energy technologies can be achieved by use of proper support mechanisms that will create favourable market conditions for such technologies. The best examples of support mechanisms presented in the last two decades have been the various schemes for the promotion of renewable energy sources (RES). In the EU, the most successful supporting schemes are feed-in tariffs which have significantly increased utilisation of renewable energy sources in Germany, Spain, Portugal, Denmark and many other EU countries. Despite the successful feed-in tariffs for RES promotion, in many cases RES penetration is limited by power system requirements linked to the intermittency of RES sources and technical capabilities of grids. These problems can be solved by implementation of energy storage technologies like reversible or pumped hydro, hydrogen, batteries or any other technology that can be used for balancing or dump load. In this paper, feed-in tariffs for various energy storage technologies are discussed along with a proposal for their application in more appropriate regions. After successful application on islands and outermost regions, energy storage tariffs should be also applied in mainland power systems. Increased use of energy storage could optimise existing assets on the market.     

Wind energy development policy and prospects in Lithuania

According to the EU Directive 2001/77/EC 7% of all electricity production is to be generated from renewable energy sources (RES) in Lithuania in 2010. Electricity production from RES is determined by hydro, biomass and wind energy resources in Lithuania. Further development of hydro power plants is limited by environmental restrictions, therefore priority is given to wind energy development. The aim of this paper is to show estimation of the maximum wind power penetration in the Lithuanian electricity system using such criteria as wind potential, possibilities of the existing electricity network, possible environmental impact, and social and economical aspects. Generalization of data from the meteorological stations and special measurements shows that the highest average wind speed in Lithuanian territory is in the coastal region and at 50 m above ground level reaches 6.4 m/s. In regard to wind resource distribution in this region, arrangement of electricity grid and environment protection requirements, six zones have been determined for wind power plant construction. Calculations have shown that the largest total installed capacity of wind farms, which could cause no significant increase in power transmission expenses, is 170 MW. The threshold, which cannot be passed without capital reconstruction of electricity network, is 500 MW of total capacity of wind farms.     

Increasing renewable energy sources in island energy supply: case study Porto Santo

While the energy supply of most islands depends mainly on expensive oil derivatives’ importation, the others are linked by usually a weak electricity grid connection to the mainland. Due to high energy costs the islands are proving to be excellent test beds for the introduction of new technologies, and some islands are trying to become so-called renewable islands, to satisfy their energy demand mainly or entirely from indigenous and renewable sources, thus increasing the security of supply, and employment opportunities, without necessarily increasing the costs. Islands that have energy sources, such as hydro or geothermal energy, can easily integrate them into the power system, but those with mainly intermittent renewable energy sources are confronted with the necessity of energy storage. The most promising technologies are reversible hydro where geography allows, and storing hydrogen where it does not. The stored hydrogen can later be used for electricity production, and also for transport. This paper describes the H₂RES model for optimisation of integration of hydrogen usage with intermittent renewable energy sources on the example of an isolated island in the Madeira archipelago, Porto Santo. It shows that it is possible to significantly increase the penetration of renewable energy sources, albeit at a relatively high cost, with hydrogen storage technology. The H₂RES model, which includes reversible hydro and batteries as storage technologies, can serve as a valuable tool for island energy planning.     

Operating conditions of batteries in off-grid renewable energy systems

Operating conditions in off-grid renewable energy systems (RES) vary significantly in different applications and locations. To describe RES and the operating conditions of their components it is useful to define categories of similar operating conditions. Categories can also be used for lifetime considerations of RES components, for making recommendations and for analysing the properties and performance of a RES and its components. Categories support system designers and an economic analysis. This paper describes the process and the results of creating RES categories of similar operating conditions for batteries. Categories are defined in such a way that batteries belonging to the same category are subjected to similar operating conditions and a similar combination of stress factors. The results provide a comprehensive overview of battery operating conditions in existing off-grid renewable energy systems. This work is part of the EU research project Benchmarking.¹     

Two energy system analysis models: A comparison of methodologies and results

This paper presents a comparative study of two energy system analysis models both designed for the purpose of analysing electricity systems with a substantial share of fluctuating renewable energy. The first model (EnergyPLAN) has been designed for national and regional analyses. It has been used in the design of strategies for integration of wind power and other fluctuating renewable energy sources into the future energy supply. The model has been used for investigating new operation strategies and investments in flexibility in order to utilize wind power and avoid excess production. The other model (H₂RES) has been designed for simulating the integration of renewable sources and hydrogen into island energy systems. The H₂RES model can use wind, solar and hydro as renewable energy sources and diesel blocks as backup. The latest version of the H₂RES model has an integrated grid connection with the mainland. The H₂RES model was tested on the power system of Porto Santo Island, Madeira, Portugal, Corvo and Graciosa Islands, Azores Islands, Portugal and Sal Island, Cape Verde. This paper presents the results of using the two different models on the same case, the island of Mljet, Croatia. The paper compares methodologies and results with the purpose of identifying mutual benefits and improvements of both models.     

Financing investments in renewable energy : the impacts of policy design

The costs of electric power projects utilizing renewable energy technologies (RETs) are highly sensitive to financing terms. Consequently, as the electricity industry is restructured and new renewables policies are created, it is important for policymakers to consider the impacts of renewables policy design on RET financing. This paper reviews the power plant financing process for renewable energy projects, estimates the impact of financing terms on levelized energy costs, and provides insights to policymakers on the important nexus between renewables policy design and financing. We review five case studies of renewable energy policies, and find that one of the key reasons that RET policies are not more effective is that project development and financing processes are frequently ignored or misunderstood when designing and implementing renewable energy policies. The case studies specifically show that policies that do not provide long-term stability or that have negative secondary impacts on investment decisions will increase financing costs, sometimes dramatically reducing the effectiveness of the program. Within U.S. electricity restructuring proceedings, new renewable energy policies are being created, and restructuring itself is changing the way RETs are financed. As these new policies are created and implemented, it is essential that policymakers acknowledge the financing difficulties faced by renewables developers and pay special attention to the impacts of renewables policy design on financing. As shown in this paper, a renewables policy that is carefully designed can reduce renewable energy costs dramatically by providing revenue certainty that will, in turn, reduce financing risk premiums.     

Renewable energy sources in the Mexican electricity sector

This paper analyzes the role of renewable energy sources (RES) in the Mexican electricity sector in the context of the proposed renewable energy bill currently under consideration in the Mexican Congress. This paper was divided into three parts. The first part presents a chronology of institutional background related to the RES. This is followed by an analysis of the coordination and management system of the Mexican electricity sector, which can facilitate the promotion and integration of the RES without significant structural changes. Finally, the pros and cons of the renewable energy bill are analyzed in order to demonstrate the need for greater coherence between the bill and the coordination system of the sector. It is concluded that when inconsistency is eliminated, RES would strongly be promoted in Mexico.     

Alternatives to grid extension for rural electrification: Decentralized renewable energy technologies in Vietnam

This paper examines the economic viability of stand-alone, household-sized renewable energy technologies, namely wind generator and solar PV for application in remote and rural areas of Vietnam. Three reference technologies are chosen. These are two solar PV systems of 130 and 100 Wp for solar conditions in the North and the South, respectively, and one 150 W wind turbine. It is found for all regions that levelized costs of PV energy are lower than the cost of energy from gasoline gen-set, and are cost-competitive with grid extension, especially for areas with low load density and low number of households to be electrified. Regarding wind energy, the viability is dependent on the location due to the wide variation of wind resource to topography. However, in locations with proper resources, wind energy is even more cost-competitive than solar PV. Thus, the use of either wind generator or solar PV is economically feasible in rural villages and remote areas of Vietnam. Policy recommendations for promoting the market development of renewable energy technologies are discussed in the final section of the paper.     

How the hydrogen production from RES could change energy and fuel markets: A review of recent literature

The goal that the international community has set itself is to reduce greenhouse gas (GHG) emissions in the short/medium-term, especially in Europe that committed itself to reducing GHG emissions to 80–95% below 1990 levels by 2050. Renewable energies play a fundamental role in achieving this objective. In this context, the policies of the main industrialized countries of the world are being oriented towards increasing the shares of electricity produced from renewable energy sources (RES).In recent years, the production of renewable energy has increased considerably, but given the availability of these sources, there is a mismatch between production and demand. This raises some issues as balancing the electricity grid and, in particular, the use of surplus energy, as well as the need to strengthen the electricity network.Among the various new solutions that are being evaluated, there are: the accumulation in batteries, the use of compressed air energy storage (CAES) and the production of hydrogen that appears to be the most suitable to associate with the water storage (pumped hydro). Concerning hydrogen, a recent study highlights that the efficiencies of hydrogen storage technologies are lower compared to advanced lead acid batteries on a DC-to-DC basis, but “in contrast […] the cost of hydrogen storage is competitive with batteries and could be competitive with CAES and pumped hydro in locations that are not favourable for these technologies” (Moliner et al., 2016) [1].This shows that, once the optimal efficiency rate is reached, the technologies concerning the production of hydrogen from renewable sources will be a viable and competitive solution. But, what will be the impact on the energy and fuel markets? The production of hydrogen through electrolysis will certainly have an important economic impact, especially in the transport sector, leading to the creation of a new market and a new supply chain that will change the physiognomy of the entire energy market.