estonia first in the renewable energy ... – first in the renewable energy cooperation mechanisms...
TRANSCRIPT
ESTONIA – FIRST IN
THE RENEWABLE
ENERGY
COOPERATION
MECHANISMS • GREAT AND COMPETITIVE RENEWABLE ENERGY
RESOURCE
• SURPLUS TO SELL
• EXPERIENCED IN INTERNATIONAL TRADING OF
GREEN ENERGY
What are RES Cooperative Mechanisms?
According to the European Directive (2009/28/EC, Art 6 - 8) it is possible for Member States to cooperate in
order to jointly achieve their national renewable targets. This means that a Member State can ask another Member
State to produce renewable energy for them by funding such installations and getting green statistics in return.
This way renewable energy targets are achieved more efficiently.
What do State Aid Guidelines say?
EU’s Energy and Environmental State Aid Guidelines adopted in April 2014 state that Feed-in tariffs should be
replaced by competitive bidding processes and operators from other Member States should be allowed to
take part of such auctions.
To facilitate the better functioning of the internal electricity market, the guidelines also promote the use of
cooperation mechanisms to facilitate cross-border support of renewable energy where possible and appropriate.
GLOSSARY
ESTONIA HAS ALREADY MET ITS 2020 RENEWABLE ENERGY TARGETS
Renewable Energy Policy Framework: Estonia Source: Ministry of Economic Affairs and Communications, Estonia
RESshare 2005
RESpotential 2020 - share on current (2005) demand
Proposed REStarget for 2020
0%
10%
20%
30%
40%
50%
60%
70%
80%
Au
stri
a
Belg
ium
Bu
lgari
a
Cyp
rus
Cze
ch
Rep
ub
lic
Den
mark
Est
on
ia
Fin
lan
d
Fra
nce
Germ
an
y
Gre
ece
Hu
ng
ary
Irela
nd
Italy
Latv
ia
Lit
hu
an
ia
Lu
xem
bou
rg
Ma
lta
Neth
erl
an
ds
Po
lan
d
Po
rtu
ga
l
Ro
man
ia
Slo
vakia
Slo
ven
ia
Sp
ain
Sw
ed
en
Un
ited
Kin
gd
om
EU
27
RES
inte
rms
offin
alen
erg
y[%
ofd
em
an
d]
Proposed Renewable Energy Sources (RES) target for 2020 compared to total realisable national RES potential
and already achieved RES share in 2005 by EU-27 Member State. Source: The futures-e Project. Action plan – Deriving a future European Policy for Renewable Electricity, 2009.
The EU 2020 renewable energy target for Estonia is 25%.
In 2006 the share of renewable energy in Estonia’s gross final energy consumption was 16%.
Today Estonia is expected to have a surplus of renewable energy up to 2020 as the share of RES reached 25%
already in 2011.
Estonia has 11 TWh surplus to sell
GREAT RESOURCE OF BIOMASS AND WIND, BOTH ONSHORE AND OFFSHORE
Load hours< 1000
1000-1250
1250-1500
1500-2000
2000-2500
2500-3000
> 3000
Countries outside subject area
Exclusive economic zones
Distribution of full load hours in Europe (80 m hub height onshore, 120 m hub height offshore) Source: European Environment Agency, 2008
Estonia has excellent wind. It’s coastline is more than 2500 km long and mostly underpopulated. Average wind
speed in the Gulf of Finland, Liivi Bay and west of Saaremaa and Hiiumaa islands is 9,01 - 9,25 m/s, further
distant from the shore even more than 9,25 m/s.
Fin
lan
d Estonia
12
42,89
20
Sw
ed
en
30,51
West Europe
countries
Esto
nia
16,97
La
tvia
6,15
Slo
ven
ia
6,32
Sp
ain
4,13
Fra
nce
2,56
UK
0,47
Ge
rma
ny
1,34
EU
R/M
Wh
km
2p
er
ca
pit
a(1
00
0p
eo
ple
)
Some EU countries by forest area Source: Nation Master
Competitive Renewable Energy Resource:
Average price of wood fuels Source: The Biomass TradeCentre; The Foundation Private Forest
Centre (Estonia)
Estonia is a land of forest, as it cover nearly a half
(48.2%) of the Estonian mainland territory. In 2012 the
total forest area was 2.2 million hectares and total growing
stock was
468 million cubic meters. It makes about
1.7 hectares woodland per capita.
Estonia is a price leader in wood fuels
in Europe.
CHEAPER OFFSHORE WIND ENERGY
Baltic Sea: Access to the site during construction
and O&M possible most of the time
North Sea: Access to the site during construction
and O&M more limited
wave
heig
ht(m
)
month
0.5 0.5
1 12 23 34 45 56 67 78 89 910 1011 1112 12
1.0 1.0
1.5
2.0
2.5
Data: 1992-2007
wave
heig
ht(m
)
mean Hs (m) 1.5
2.0
2.5
Data: 1996-2012
Wave height: the Baltic Sea vs the North Sea Source: HELCOM Baltic Sea Environment Fact Sheet 2014
The role of Baltic Sea region in the offshore wind energy development is expected to increase significantly due
to lower CAPEX/OPEX than in the North Sea.
North Sea
current subsidides
Capital
O&M
140
Estonia
Opex -40%perMWh
Capex -30%perMWh
EU
R /
Mh
29
111
Cost of Offshore Wind energy, the North Sea vs Estonia Source: RES LEGAL Europe; Nelja Energia AS
Estonia is able to produce offshore wind energy cheaper:
• Due to low waves the cost of construction and maintenance in the Baltic Sea is 1/3 cheaper due to higher
accessibility.
• Higher accessibility means higher availability. Higher availability means higher production!
• Whereas the trend is to move away from shore (the average distance to shore of new installations in 2014 was 32.9
km) the Estonian offshore wind farms are closer to the shore - In the Hiiumaa project minimum distance from the
shore is 12 kilometers, in Liivi Bay project 10 kilometers.
• Due to less extreme WIND conditions it is possible to use larger rotors, thus gain higher productivity.
ESTONIA HAS EXCELLENT EXPERIENCE IN GREEN ENERGY TRADING
• Experienced and trusted in the international emissions’ trading.
• In 2010–2011 more than 50% of the world’s surplus governmental CO2 quota (AAU) sales were
made by Estonia. During 2010-2013 the sales of AAU-s by Estonia was worth of 392 million EUR.
• Early mover in Joint Implementation (JI). Estonia has implemented 12 successful projects in
cooperation with Finland, Austria, Sweden and the Nordic Environment Finance Corporation as the
Fund Manager for the Testing Ground Facility.
• Recently gained experience also in LEC (Levy Exemption Certificate) and GoO (The Guarantee of Origin)
trading.
• Legal basis to be adopted soon in order to enable negotiations of RES Cooperative Mechanisms with other
Member States.
• Ecofys – a consortium brought into life by European Commission has explored the practical implementation of
RES Cooperative Mechanisms. Out of their five case studies one was about the Statistical Transfer
between Estonia & Luxemburg.
A GREAT OPPORTUNITY TO SAVE TAX PAYERS' MONEY!
OFFSHORE WIND ENERGY AND BIOENERGY PRODUCED IN ESTONIA - PRICE RANGE OF ENERGY
AND ENERGY SECURITY THAT CONSUMERS CAN AFFORD.
INFORMATION ABOUT ESTONIA
Area: 45,227 km2
Population: 1,313,271
GDP per capita: $26,555
Electricity consumption: 8.1 TWh
Electricity production: 12.4 TWh
Electricity export: 6.5 TWh
MINISTRY RESPONSIBLE FOR COOPERATIVE MECHANISMS
MORE INFORMATION:
Ministry of Economic Affairs and Communications
www.mkm.ee
Estonian Renewable Energy Association
www.taastuvenergia.ee
Estonian Wind Power Association
www.tuuleenergia.ee
Estonian Wind Power Cluster
www.estonianwindcluster.eu
NELJA ENERGIA - one of the first movers to invest in renewable energy in the Baltic States, now the largest wind energy producer
in the Baltics. The company also produces electricity and heat in biogas stations.
Estonia
Latvia
Lithuania
Operational wind farm
Wind farm under construction
Wind farm in development
Bio CHP in development
Operational biogas station
Total capacity of wind energy 223 MW
Annual production (2014) 0,5 TWh
Share of wind energy in the Baltics
(2014) 38%
Other activities
• electricity trader
• biogas stations
• wind turbine O&M company
Shareholders Vardar Eurus (Norway) 77%
Estonian investors 23%
Total Assets 382 MEUR
Sales in 2014 67,5 MEUR
EBITDA 34 MEUR
ABOUT NELJA ENERGIA AS
OFFSHORE PROJECT IN ESTONIA – HIIUMAA OFFSHORE WIND FARM
Developer Nelja Energia AS
Capacity of the wind farm
700 MW
Annual production 3 TWh/year
Capacity factor ~ 50%
Average wind speed 9,06 m/s
Sea depth 10 - 30 m
Distance from shore Minimum 12 km
Foundation Ice-proof gravity foundation
Status • National Spatial Plan „Estonia 2030+“ established in August 2012 provides areas for the development of Hiiumaa offshore wind farm.
• The Governor of Hiiu County accepted Estonia’s first Maritime Spatial Plan in 2014. Its Strategic Environmental Assessment was established by the Environmental Agency in 2015.
• The technical conditions of grid connection have been issued by the TSO.
Nelja Energia AS
Mr Martin Kruus, Chairman of the Board
www.4energia.ee
MORE INFORMATION ABOUT NELJA ENERGIA AS PROJECTS: