Key features and recent developments of Feed-In Scheme in Spain

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Key features and recent developments of Feed-In Scheme in Spain

8 8 ^th ^th Workshop on the International Workshop on the International Feed- Feed -in Cooperation in Cooperation – – IFIC 2010 IFIC 2010

Berlin, November 2010 Berlin, November 2010

Sofía Martínez

Institute for Diversification and Saving of Energy, IDAE

(Ministry of Industry, Tourism and Trade)

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WHAT IS IDAE? MISSION

Promote energy efficiency and Rational Use of Energy in Spain

Promote diversification of energy sources and increasing use of

renewable energy sources (RES)

Foster these activities through technical consultancy and implementation of innovative projects

The Institute for Diversification and Saving of Energy is a public business entity, reporting to the Ministry of Industry, Tourism and Trade through the Secretary of State for Energy

MINISTRY OF INDUSTRY, TOURISM & TRADE

Mr. Miguel Sebastián

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GENERAL SITUATION:

RENEWABLE ENERGY PLAN 2005

RENEWABLE ENERGY PLAN 2005 - - 2010 2010

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RENEWABLES PROMOTION IN SPAIN

• Law 82/1980 on energy conservation was the start of developing RES in Spain.

Comprehensive legislation has achieved a regulatory framework that has promoted development through stability.

• Spain has become world leader in RES (production, promotion and industry), especially since 2005 with the Renewable Energy Plan (REP) 2005- 2010 and an Action Plan under the Spanish Energy Saving & Efficiency Strategy .

9 Not binding: attractive framework based on stability & profitability

9 Appropriate planning, including infrastructures

9 Innovative and mature technology

& industry

9 RES grid integration (Renewable Energy Control Centre)

TARGETS OF REP 2005-2010

• 12.0 % of total energy consumption will come from RES;

• Electricity generation from RES will represent 29.4% of electricity

consumption;

• Biofuels will correspond to 5.83% of

diesel and petrol consumption in the

transport sector.

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TOTAL PRIMARY ENERGY SUPPLY IN SPAIN (1 ^st half 2010)

Total Primary Energy Supply (1 ^st half 2010): 64.1 Mtoe

RES share: 12.3% (wet period) (9.4% in 2009, dry year)

By the end of the year, Spain expects to achieve its 2010 target (12%) for RES contribution to the total primary

energy supply

Wind 3.0 %

Biomass

& waste 4.1 %

Other 1.4 % Electric Power Exports

-0.5 %

Nuclear 11.9 %

Coal 4.6 % Oil

47.3 %

RENEWABLES 12.3 %

Natural gas 24.3 %

Hydro 3.9 %

Solar Biofuels

0.8%

Geothermal 0.01%

0.6%

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Gross Electricity Consumption

(1 ^st half 2010, wet period): 142,498 GWh RES share: 39.6% (~ 27% in 2009 with

normalized production)

By the end of the year, with normalized production, Spain

expects to achieve its 2010 target (29.4%) for RES-e

RES IN ELECTRICITY PRODUCTION (1 half 2010)

Coal 6.3%

Nuclear 20.5%

PV 2.03%

Natural Gas 31.4%

Biomass & Waste 1.5%

Import Exports -2.5%

Oil 4.5%

CSP 0.1%

RENEWABLES 39.6%

Hydro 20.4%

Wind 15.6%

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TOWARDS NEW TARGETS IN 2020: SPANISH TOWARDS NEW TARGETS IN 2020: SPANISH RENEWABLE ENERGY PLAN (REP) 2011

RENEWABLE ENERGY PLAN (REP) 2011 - - 2020 2020

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• In accordance with Directive 2009/28/CE mandatory objectives for Spain:

• 20% RES in Gross Final Energy Consumption (like EU average)

• 10% of renewables in transport, in EU and each Member State

Key dates:

• December 2009: Member States released their “forecast documents”

• 30 ^th June 2010: submission of the Spanish National Renewable Energy Action Plan (NREAP) 2011-2020:

• RES Final Energy Consumption in Spain: 22.7% (excess of 2.7 Mtoe)

• RES Electricity Generation in Spain: >40 %

• Around twenty studies carried out in order to develop the plans (NREAP/REP): e.g.

“Technological evolution perspectives and prospective costs by 2020-2030”

• End of 2010: Spanish Renewable Energy Plan (REP) 2011-2020

• Incorporates additional analyses (sectorial, costs, etc.) and the mandatory Strategic Environmental Assessment to the NREAP

• 2011: first biannual report of each Member State

• 2012: first biannual report of the European Commission

SPANISH NATIONAL RENEWABLE ENERGY PLAN 2011-2020

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RENEWABLE ENERGY SHARE TRAJECTORY: NREAP 2011-2020

SPANISH 2020 TARGET AND ESTIMATED TRAJECTORY OF ENERGY FROM RENEWABLE ENERGY SOURCES IN HEATING AND COOLING, ELECTRICITY AND TRANSPORT.

Spanish 2020 objectives: achieving at least 20% share of energy from RES in gross final consumption of energy in 2020 and ensuring that the share of energy from RES in all forms of

transport is at least 10% of the final consumption of energy in transport in 2020

Source: IDAE (PANER - table 3)

2005 2010 2015 2020

Share of renewable energy in

heating and cooling (%) 8.8% 11.3% 14.0% 18.9%

Share of renewable energy in

electricity (%) 18.4% 28.8% 33.8% 40.0%

Share of renewable energy in

transport (%) 1.1% 6.0% 9.3% 13.6%

Overall share of renewable

energy sources (%) 8.3% 13.6% 17.4% 22.7%

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FORECAST 2020 – SHARE OF RES (ELECTRICITY GENERATION)

Total electricity generation: 400.4 TWh

RES-e generation: 152.8 TWh Projected RES in 2020: 40.7%

Source: MITyC / IDAE

Solid Biomass 1.5%

Other 1.1%

Solar PV 3.6%

Concentrated Solar 3.8%

Wind 19.9%

Hydro 8.3%

Coal 8.4%

Oil 2.2%

Renewables 38.2%

Pumping 2.0%

Nuclear 13.9%

Natural Gas

35.4%

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FORECASTS 2020 – RES-e INSTALLED CAPACITY

Source: MITyC / IDAE INSTALLED CAPACITY IN SPAIN (MW) 2005 2010 2015 2020

- Hydro > 10 MW 13,720 14,296 14,332 14,477

- Hydro ? 10 MW 1,773 1,845 2,017 2,185

- Wind Onshore 9,918 20,155 27,847 35,000

- Wind Offshore 0 0 150 3,000

- Solar thermoelectric 0 632 3,048 5,079

- Solar Photovoltaic 60 4.021 5.918 8.367

- Biomass & Renewable S.U.W. 596 752 965 1,587

- Solid 354 501 620 1,000

- Biogas 152 156 220 400

- Renewable S.U.W. 90 95 125 187

- Marine energies 0 0 0 100

- Geothermal 0 0 0 50

Non Renewable Wastes 170 175 205 267

Pure pumping 2,727 2,546 3,700 5,700

Renewable Energy Sources 26,072 41,701 54,277 69,844

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• Electric Power Act 54/1997

• RD 2818/1998, adapts the special regime to the deregulation of the sector (feed-in)

• RD 436/2004 on the legal and economic regime for the special regime (feed-in)

• RD 661/2007. Feed-In Tariff for electricity production from RES

• RD 1578/2008. Redesign of PV payment

• RD Act 6/2009

• Liberalization of the market. Establishes “Special Regime” for RES-e (< 50MW), grid access guarantee &

Premium for RES-e

• Administrative procedures & conditions for access to the Special Regime. Fixed Feed-in tariff or Fixed

premium (on top of market price) specific to each technology

• Revision of the tariffs and technologies.

• Support is tied to the reference electricity fee

• Reduce administrative times and facilitation of grid access

• Two sale options:

• Regulated price: independent of capacity and year of commissioning.

• Open sale in the market: ‘Pool’ price + Premium + Complements (cap & floor limits)

• Pre-assignment of remuneration. 500 MW/year (> 4.000 MW accumulated in 2010)

• Decreasing tariffs, for new facilities.

• Two groups: in buildings & in land.

• Establishes a register called pre-assignment register to be awarded with the feed-in tariff

LEGISLATION AND TARIFFS: HISTORY

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• Continuous development of consolidated technologies and reducing existing barriers

• Development of emerging technologies (geothermal, waves)

• Suitable mechanism and new promotional framework for RES-heat

• More efforts in R&D

• Spain interested in the cooperation mechanisms provided by the EU Directive

• Essential to further develop Spain's electricity interconnections with the European system and to increase the pumping capacity

• Several Royal Decrees are currently being developed for adapting the legal and economic framework for the new 2020 objectives

• Maintaining feed-in tariff system in new economic framework

• Regulations for electricity grid connection for small installations

• Net metering between consumers and utilities

• Support mechanism for biofuels, similar to the existing with increasing quota obligation system

• Load management system: new figure for recharging management of electrical vehicles in garages

• Strong support to electric vehicle, notably to over-night slow charging systems

NEW FRAMEWORK FOR NEW 2020 TARGETS

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ANNUAL POWER DISTRIBUTION (MW) 2005-2013

Annual distribution (MW) Estimation 2010-2012 2005 2006 2007 2008 2009 2010 2011 2012 2013 Wind 1,524 1,595 3,508 1,609 1,864 1,855 1,700 1,700

Thermoelectric 11 0 350 500 500 500 540

PV 25 98 550 2,748 473 500 484 532

Mini-hydro 57 130 7 45 112 30 30 30

Biomass 30 41 16 28 65 150 150 150

TOTAL 1,635 1,864 4,092 4,492 2,864 3,035 2,864 2,912 540

• Agreement of the Council of Ministers dated 13 ^th of November of 2009 for wind and CSP plants

• Variable electricity needs flexibility in the system. Quotas allow better coordination of infrastructure planning and RES-e integration: 3,300 MW/year

• Increase predictability of the financial support. Over 15% of REP objectives by the end of 2010 :

• Wind: 20,155 MW installed

• Thermoelectric: 861 MW installed

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REGULARIZATION OF PV INSTALLATIONS

• Royal Decree to combat fraud (traceability): “irregular” PV installations could shift from RD 661/2007 economic regime to RD 1578/2008 before 7 ^th October.

• “Irregular” PV installations that although received the commissioning certificate and where included in RD 661/2007, failed to installed all the equipment required by September 2009

• National Commission on Energy responsible of the inspections.

• The Ministry of Industry, Tourism and Trade have received 907 applications ≈ 65MW

• Tariff from 46.56 c€/kWh (RD 661/2007) to 32 c€/kWh (RD 1578/2008)

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NEW LEGAL FRAMEWORK

• The Ministry of Industry, Tourism and Trade is drafting an Energy Saving, Energy Efficiency and Renewable Energy Act (within the new Sustainable Economy Law) to implement the required legal framework to develop all the necessary measures and instruments, not only to reach the 2020 target but to maximize renewable energy production as a principle.

• Security of energy supply: Economical and environmental sustainability.

• To include energy efficiency and renewable energy in other national policies.

• To define a framework to improve the stability and predictability.

• Involvement of all the stakeholders: different Administrations, economic and

social organizations and institutions, citizens.

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?

TOTAL BUDGET: 13 M€

• Biomcasa: 5 M€

• Solcasa: 5 M€

• Geotcasa: 3 M€

THREE PILOT PROJECTS FOR RES-THERMAL IN BUILDINGS

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Thanks for your attention!

[email protected]

www.idae.es

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Prima + ‘Pool’

Prima (€/MWh)

‘Pool’

Límite Inferior 75,41

Límite Superior 89,87

Prima de Referencia

30,99

Subgrupo b.2.1: Eólica en tierra (primeros 20 años)

44,42

(€/MWh)

58,88 89,87

Año 2010

Tarifa Regulada

77,47

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2010 Opción a)

Grupo Subgrupo Potencia Plazo

Tarifa regulada

c€/kWh

Prima de referencia

c€/kWh

Límite superior

c€/kWh

Límite inferior c€/kWh

primeros 25 años

46,5897

a partir de entonces

37,2718

primeros 25 años

44,169

35,3352

primeros 25 años

24,3077

19,4462

primeros 25 años

28,4983 26,8717

22,7984 21,4973

primeros 25 años

7,7471 3,0988 8,9866 7,5405

6,4746

b.2.2* (marina) 8,9184 17,3502

primeros 25 años

7,2892 4,0672

6,8872 3,2373

Dos opciones de venta de electricidad Opción b) Venta en el mercado organizado de la electricidad

b.1 (solar)

b.2.1 (terrestre)

b.2 (eólica)

P≤ 100 kW 100 kW<P≤ 10 MW

10<P≤ 50 MW b.1.1

(fotovoltaica)

b.3 (geotérmica, olas, mareas, rocas calientes y secas, oceanotérmica y corr.

marinas)

36,3906 26,8757 b.1.2 (solar

procesos térmicos para prod eléctrica)

*Prima máxima de referencia a efectos del procedimiento de concurrencia previsto en el RD 1028/2007, de 20 de julio y el límite superior para las

instalaciones eólicas marinas

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**La cuantía de la tarifa regulada para las instalaciones del grupo b.5 para los primeros 25 años desde la puesta en marcha será:(6,6+1,2x((50- P)/40))x1,0605 siendo P la potencia de la instalación.

***La cuantía de la tarifa regulada para las instalaciones del grupo b.5 para el vigésimo sexto año y sucesivos desde la puesta en marcha será:(5,94+1,080x((50-P)/40))x1,0605 siendo P la potencia de la instalación

2010 Opción a)

Grupo Subgrupo Potencia Plazo

Tarifa regulada

c€/kWh

Prima de referencia

c€/kWh

Límite superior

c€/kWh

Límite inferior c€/kWh

primeros 25 años

8,2519 2,6495

7,4268 1,4223

primeros 25 años

** 2,2263

*** 1,4223

primeros 25 años

16,8096 12,6723 17,5936 16,3029

12,4764

primeros 25 años

15,5084 11,1562 15,9643 15,0968

13,0624

primeros 25 años

13,2994 9,162 14,0812 12,7905

8,9663

primeros 25 años

11,3771 7,0249 11,8384 10,9804

8,5334

primeros 25 años

13,2994 9,162 14,0812 12,7905

8,9663

primeros 25 años

12,5148 8,1633 12,9704 12,1028

8,5334

Dos opciones de venta de electricidad Opción b) Venta en el mercado organizado de la electricidad

b.4 (hidroeléctrica P≤

10MW) b.5 (hidroeléctrica 10MW< P≤ 50MW)

P≤ 2MW

b.6.3 (residuos forestales)

b.6 (biomasa)

P≤ 2MW 2MW< P 2MW< P b.6.1 (cultivos

energéticos)

P≤ 2MW 2MW< P b.6.2 (residuos

agrícolas o de jardinerías)

9,0137 6,8978

8,4635 6,4746

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2010 Opción a)

Grupo Subgrupo Potencia Plazo

Tarifa regulada

c€/kWh

Prima de referencia

c€/kWh

Límite superior

c€/kWh

Límite inferior c€/kWh

primeros 25 años

8,4551 4,4721 9,4792 7,8711

6,8872

primeros 25 años

13,8262 10,8104 16,2182 13,0656

6,8872

primeros 25 años

10,2409 6,587 11,6691 10,1033

6,8872

primeros 25 años

5,6706 3,738 8,8126 5,3955

5,6706

primeros 25 años

13,2994 9,162 14,0812 12,7905

8,9663

primeros 25 años

11,3771 7,0249 11,8384 10,9804

8,5334

primeros 25 años

9,8177 5,6814 10,6006 9,2993

6,8872

primeros 25 años

6,8851 2,5329 7,3421 6,4746

6,8851

primeros 25 años

9,8177 5,9439 10,6006 9,2993

6,8872

primeros 25 años

8,4635 3,8813 9,5215 7,9346

6,8851

Dos opciones de venta de electricidad Opción b) Venta en el mercado organizado de la electricidad

b.7.3 (estiércoles)

b.7 (estiércoles,

biocombustibles o biogás)

P≤ 2MW 2MW< P b.8.1 (biomasa

inst. agrícolas)

b.8 (biomasa

procedente de instalaciones

industriales)

b.7.1 (biogás de vertederos)

P≤ 500kW 500kW< P b.7.2 (biogás

generado en digestores)

b.8.2 (biomasa inst. forestal)

P≤ 2MW 2MW< P b.8.3 (biomasa

inst. licores negros)

P≤ 2MW

2MW< P

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La reducción del precio se estima entre 4,75 – 7 €/MWh que supone una disminución entre 1200-1800 M€/año (cifras 2005)

MWh

Pr eci o ( € /M W h )

Gas Día

Eólica y Nuclear

Noche Punta

Demanda

Oferta

Fuel oil CCGT

Fuente: Asociación Empresarial Eólica

práctica ofertan a cero para asegurarse la casación, lo que reduce el precio del mercado mayorista.

ESTIMACIÓN DE LA ASOCIACIÓN EÓLICA EMPRESARIAL:

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Fuente: Iberdrola

Key features and recent developments of Feed-In Scheme in Spain