Analysis of renewable energy progress in the western Balkan countries: Bosnia–Herzegovina and Serbia

Within the framework of achieving the European environmental targets towards climate change mitigation, as well as decreasing the fossil fuel dependence and its negative effects on global warming, renewable energy sources (RES) promotion has become a major issue of concern in most European Union (EU) countries. In the above context, most EU countries have endorsed initiatives to foster RES implementation development and inclusion in the energy mix, aiming to endeavor and further impel the benefits deriving from RES and harmonize to the EU Directive or Kyoto Protocol. Nevertheless, only few sporadic efforts have been examining countries and compare the requirements for promoting RES implementation that lack specific RES obligations or a framework set by the Kyoto Protocol or the EU Directive, and particular Balkans countries with great RES potential, such as BiH and Serbia. The main objective of this paper is to analyze the conditions and modalities for RES progress within the economic, political and institutional dimension, in these two neighboring countries located in the vicinity of EU Member States (MS), which appear to have a similar historical, political and economical background and an extensive RES potential. The analysis indicated that RES development in BiH seems to be a slow process, its institutional framework is partly established and further strengthening is required. In Serbia, the institutional framework is efficiently established, are in the process of developing new legislation to facilitate renewable energy development.     

RE in EU-28: Renewable energy policies in an enlarged European Union

The goal of increasing the share of renewable energy sources (RES) in total primary energy supply (TPES) as well as in electricity production in an enlarged European Union (EU-28) will be a challenging one and most likely will be addressed by a mix of promotion instruments. Mischa Bechberger and Danyel Reiche take a look at the implications for renewables in an enlarged EU.The most prominent policies in the case of electricity are renewable energy feed-in tariffs (REFIT) and quota systems, but also others like tenders, energy tax exemptions, and environmental funds in the form of investment subsidies, and soft loans are playing a part.     

Cyprus energy system and the use of renewable energy sources

Cyprus is an island state whose energy production is almost completely dependent on imported hydrocarbon fuels. Its electricity production sector is more than 90% dependent on oil products while the remaining 9% are covered by imports of coal (4.5%) and by solar energy (4.5%). Because Cyprus will become a full member of the European Union (EU), it becomes essential to follow the EU white paper rules and insert renewable energy sources (RES) as part of its energy production system. Solar, wind energy and biomass are the three available forms of RES. This paper will examine and analyze the energy system of Cyprus. It will examine the RES available and the extent of the energy needs could be satisfied by them.     

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.     

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.     

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.     

Overcoming problems in Turkey's renewable energy policy: How can EU contribute?

Fossil fuels cover most of the energy demand in the world, and this creates significant social, economic and environmental problems. Many countries have taken measures to increase the share of renewable energy sources (RES), especially in electricity generation, and the review of literature shows that the success of a country in RES diffusion depends on a comprehensive renewable energy policy which combines political commitment with stable and long-term support measures that stimulate technological innovation. As the largest economy in the world, EU has also taken steps to increase RES usage in electricity generation in member states. Similar to other developing countries, Turkey is learning lessons from EU experiences regarding RES policies, and Turkey is also reforming its legal framework in line with acquis communautaire as a candidate country. As a result, EU has a multiway impact on Turkey's renewable energy policy. An overview of Turkey's renewable energy policy showed that EU has significantly contributed to Turkey in shaping its renewable energy policy, and Turkey should increase cooperation with EU in order to utilize its renewable energy potential.     

An energy management approach for renewable energy integration with power generation and water desalination

The share of the renewable energy sources (RES) in the global electricity market is substantially increasing as a result of the commitment of many countries to increase the contribution of the RES to their energy mix. However, the integration of RES in the electricity grid increases the complexity of the grid management due to the variability and the intermittent nature of these energy sources. Energy storage solutions such as batteries offer either short-term storage that is not sufficient or longer period storage that is significantly expensive. This paper introduces an energy management approach which can be applied in the case of power and desalinated water generation. The approach is based on mathematical optimization model which accounts for random variations in demands and energy supply. The approach allows using desalination plants as a deferrable load to mitigate for the variability of the renewable energy supply and water and/or electricity demands. A mathematical linear programming model is developed to show the applicability of this idea and its effectiveness in reducing the impact of the uncertainty in the environment. The model is solved for the real world case of Saudi Arabia. The optimal solution accounts for random variations in the renewable energy supply and water and/or electricity demands while minimizing the total costs for generating water and power.     

The insurance effect of renewable distributed energy resources against uncertain electricity price developments

To combat climate change, many countries all around the world currently foster the development of renewable energy sources (RES). However, in contrast to traditional energy systems that relied on few central power plants, RES are typically highly decentral and spread all over a country. Against this backdrop, the promotion of a decentralization of the energy system by fostering a regional balance of energy demand and supply with a corresponding increase in energy democracy is seen as a promising approach. However, energy democracy driven by an increasing involvement of consumers requires adequate investments of consumers in their own local RES in order to become active players, usually called prosumers. Risk associated with uncertain long-term electricity price developments is generally seen as a barrier to investments. In contrast, we describe that an investment in distributed energy resources (DERs) may actually serve as a consumer's insurance against price risk. Our results set out that the consideration of risk-aversion may actually positively shift an investment decision in renewable DERs. This is due to the prosumer becoming more self-sufficient and less dependent on uncertain price developments. To analyze such an insurance effect, we create a formal decision model considering the prosumer's risk-aversion and derive the prosumer's optimal investment in renewable DERs. However, our results also indicate that under some circumstances the insurance effect disappears: When a prosumer turns into a predominant producer, the prosumer is again exposed to risk in terms of uncertain revenues. Ultimately, our work highlights the importance of a consideration of the insurance effect when assessing an investment in renewable DERs.     

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.     

Monitoring of energy supply sustainability in the Baltic Sea region

BASREC (Baltic Sea Region Energy Cooperation) was established in 1999. It brings together the 11 countries around the Baltic Sea (Denmark, Estonia, Finland, Germany, Iceland, Latvia, Lithuania, Norway, Poland, Russia, and Sweden) and the European Commission. BASREC offers a unique regional forum, in which policies and projects of regional and broader significance can be prepared and implemented. Five working groups within BASREC, for Bioenergy, Climate Change, Electricity, Energy Efficiency and Gas, were active in the period 2003–2005. These working groups quite well represent the priorities of regional energy cooperation in the Baltic Sea region. Since the EU participates actively in BASREC activities, this kind of cooperation can provide for the EU sustainable energy policy promotion in non-member countries, such as Russia, and can help sharing the experience between old and new member states as well as facilitate the know how transfer from such highly developed and advanced in sustainable development countries as Iceland and Norway to less developed ones.     

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.     

Revisiting long-run relations in power markets with high RES penetration

Electricity generation from renewable energy resources (RES) has become increasingly significant to reach EU and emissions reduction targets. At the same time, one of the main EU policy goals has been the creation of a common internal energy market for Europe. In this paper, we focus on these two issues previously studied separately, considering their possible interactions. We first analyze the long-run relationship between day-ahead electricity prices and fuel prices (natural gas and coal) looking at two samples of years characterized by low and high RES penetration, then we explore the integration of EU markets.We show that the electricity–fuel nexus found over 2006–2008 changed dramatically over 2010–2014 for the majority of countries considered. In particular, the long-run dependence of electricity from gas and coal prices is much lower in recent years. Furthermore, our results confirm that the considered EU countries are becoming less integrated as RES-E increases. Our findings suggest that nationally implemented policies to support renewables are successful in increasing RES penetration, but they have lessened the linkage among EU markets, then making integration more difficult to obtain.     

European Union's renewable energy sources and energy efficiency policy review: The Spanish perspective

The European Union's (EU) energy objectives, legislation and programmes are determinant for the current strategy for the promotion of renewable energy sources (RES) and energy efficiency (EE) in Spain, which is becoming a key element for its international competitiveness.Firstly, this article explores the evolution of the EU's energy strategy, focusing on the adopted legislations and programmes to promote RES and EE. It concludes with an analysis of the impact of those measures in Spain.     

Electricity from biomass in the European union—With or without biomass import

The European Union has set up indicative targets for its 15 Member States to supply 22.1% of their total electricity consumption using renewable energy resources by 2010. This paper compares two ways to achieve target compliance—either with import of biomass from countries outside the EU or without. The ADMIRE REBUS model combines cost data for electricity producing renewable energy technologies with data on the renewable energy resources available in EU and assesses the effect of the various national support policies for green electricity in the EU countries. The major finding of the study is that increased imports of low-cost biomass will significantly reduce the cost of target compliance, but would hamper the use of energy crops and further development of wind power within the EU. Despite this, increased importation of biomass can be the cost-reducing factor making the target realisable, which would justify promotion of such trade.     

Renewable energy and policy options in an integrated ASEAN electricity market: Quantitative assessments and policy implications

Energy market integration (EMI) in the ASEAN region is a promising solution to relieve the current immobilization of its renewable energy resources and would serve the fast increasing demand for electricity in the region. EMI could be further extended with coordinated policies in carbon pricing, renewable energy portfolio standards (RPS), and feed-in-tariffs (FIT) in the ASEAN countries. Using a linear dynamic programming model, this study quantitatively assesses the impacts of EMI and the above-mentioned policies on the development of renewable energy in the power generation sector of the region, and the carbon emissions reduction achievable with these policies. According to our results, EMI is expected to significantly promote the adoption of renewable energy. Along with EMI, FIT appears to be more cost-effective than RPS and is recommended for the ASEAN region, albeit political barriers for policy coordination among the countries might be a practical concern. In addition, an RPS of 30% electricity from renewable sources by 2030, which is considered politically a “low-hanging fruit”, would achieve moderate improvements in carbon emissions reductions and renewable energy development, while incurring negligible increases in the total cost of electricity.     

Bioenergy production and use in Italy: Recent developments,perspectives and potential

The renewable energy policies in the European Union have already led to a significant progress; the energy mix should further change until 2020. Italy is planning to meet the 2020 targets on renewable energies also thanks to a relevant paradigm shift in renewable energy exploitation. Indeed, in 2005 the sector where RES were more present in Italy was electricity production with 203 PJ of renewable origin, while in the heating and cooling sector renewable energy penetration was limited to 80 PJ. On the contrary, in 2020 heating and cooling is expected to absorb the highest amount of renewable energy (438 PJ) with renewable electricity expected to count for 356 PJ. Bioenergy, a renewable energy resource particularly suitable for electricity, heating & cooling and in transport, will be at the core of this sectorial shift in renewable energy production and use and is expected to become the dominant form of RES before 2020. The paper makes a detailed analysis of the recent developments and expected evolution of the Italian energy mix in next decade. It provides an overview of the Italian bioenergy sector in comparison with other Renewable Energy Sources (RES) and with leading countries in the European Union with a special focus on the production, exploitation and potentials on the basis of the analysis of the Italian National Renewable Action Plan.     

Photovoltaic electricity production of a grid-connected urban house in Serbia

A technically attractive solution for sustainable present and future is to integrate photovoltaic (PV) panels into building fabric of urban houses as an alternative to grid electricity, however, in Serbia this technology is rarely applied. To contribute to sustainability and create success conditions for renewable energy sources (RES) applications due its wish to join EU, Serbian government currently integrated RES into its new energy policy framework. In the near future in the separate law, the government will identify financial conditions to apply this policy and start RES use. To adequately inform this law, we calculated the electricity revenue during entire life of a two-floor house in Belgrade, Serbia and investment in PV panels (currently available on Serbian market) integrated in its entire envelope. It was discussed what are the current degree of economic viability of this solution and suggested level of state subventions needed to support the solar electricity production either by feed-in tariffs or other financial instruments.     

Electricity generation from renewable energy sources in Poland

AbstractFor the European Union's Member States 2001/77/EC Directive on the promotion of electricity produced from renewable energy sources in the internal electricity market determined targets for 2010 of 21% share of electricity from renewable energy sources in total electricity consumption. Particular Member States adopted different measures for development of renewable and in consequence they achieved different results. Poland, being Member State of the EU since 2004 has accepted target of 7.5% for electricity generated from renewable energy sources until 2010. Currently, in this decade, new 2009/28/EC Directive on the promotion of the use of energy from renewable sources plays significant role in development of renewable energy sources. Directive set new target for 2020. Nowadays is a time for summary and assessment of results fulfilling Directives and monitor progress of new targets. Article presents measures implemented for renewable source energy development, also current state and perspectives of using of renewable energy sources in Poland and in the EU.