President, National Council for Energy (CNE), Spain President, Iberoamerican Association of Energy Regulatory Entities /Asociación de Reguladores Iberoamericanos de la Energía (ARIAE)

1. www.onlysustainable.org energy@onlysustainable.org

2. Perspective of the E.U. and the
Spanish experience
María-Teresa Costa
President
National Energy Commission (Spain)

3. Outline
1. Principles & Targets
 Sustainable Development
 Green Package
2. Current Situation
3. Final Remarks
Perspective of the E.U. and the Spanish experience 2010 International Conference on Renewable Energy 3

4. Principles & Targets – Sustainable Development
What is it and what are its three pillars?
 UN (1987): ‘... meets the needs of the present without compromising
the ability of future generations to meet their own needs’
 World Summit (2005): ‘... its interdependent and mutually reinforcing
pillars are economic dev., social dev., and environmental protection’
United Nations’ Division for Sustainable Development (DSD)
http://www.un.org/esa/dsd/index.shtml
Perspective of the E.U. and the Spanish experience 2010 International Conference on Renewable Energy 4

5. Principles & Targets – Sustainable Development
Access to energy and electricity for… everyone?
 Almost one-third of the world’s population is denied the use of
electricity
 Around another third suffers brown outs and load shedding
 Energy access is the right key to access other rights
United Nations’ Division for Sustainable Development (DSD) – Areas of work: Energy
http://www.un.org/esa/dsd/dsd_aofw_ene/ene_index.shtml
Perspective of the E.U. and the Spanish experience 2010 International Conference on Renewable Energy 5

6. Principles & Targets – Sustainable Development
Which tools (=technologies) do we need to reach it?
 I.E.A. (2010): A wide range of technologies will be necessary to
substantially reduce energy-related CO2 emissions
International Energy Agency: Energy Technology Perspectives 2010
http://www.iea.org/W/bookshop/add.aspx?id=401
Perspective of the E.U. and the Spanish experience 2010 International Conference on Renewable Energy 6

7. Principles & Targets – Green Package
What is it and what are (also) its three pillars?
 E.C. (2007): E.U.’s integrated energy and climate change legislative
package (‘green package’) based on…
1. A true internal energy market
 Keywords: choice, competition, unbundling, interconnection
2. Accelerating the shift to low carbon energy
 Keywords: renewable, biofuel, penetration, research
3. Energy efficiency
 Keywords: transport, buildings, loss savings, labeling
 Package became law in June 2009
European Commission Directorate General for Climate Action – E.U. Climate and Energy Package
http://ec.europa.eu/clima/policies/eu/package_en.htm
European Parliament: adopted texts
http://www.europarl.europa.eu/sides/getDoc.do?pubRef=-//EP//TEXT+TA+20081217+ITEMS+DOC+XML+V0//EN
Perspective of the E.U. and the Spanish experience 2010 International Conference on Renewable Energy 7

8. Principles & Targets – Green Package
What are the „20-20-20‟ targets and the other initiatives?
 E.U. Council (spring 2007) sets energy targets to be met by 2020:
1. A reduction in E.U. GHG emissions of at least 20% below 1990 levels
2. 20% of E.U. energy consumption to come from renewable resources
3. A 20% reduction in primary energy use by improving energy efficiency
 Other closely-related E.U. framework initiatives:
 2nd strategic energy review (follow-up 2009)
 Keywords: infrastructure, gas supply, ‘securing our energy future’
 3rd package: Directives 72, 73/2009; Regulations 713, 714, 715/2009
 Keywords: unbundling, more effective regulators, cross-border trade
GHGs: Greenhouse Gases
European Commission - Second Strategic Energy Review
http://ec.europa.eu/energy/strategies/2009/2009_07_ser2_en.htm
European Commission – Gas & Electricity – Third legislative package
http://ec.europa.eu/energy/gas_electricity/third_legislative_package_en.htm
Perspective of the E.U. and the Spanish experience 2010 International Conference on Renewable Energy 8

9. Principles & Targets – Green Package
What are the pieces of the package?
 The ‘green package’ consists of the six following provisions:
 Directive 2009/28/EC: promotes the use of energy from renewable sources
 Directive 2009/29/EC: improves the E.U. GHG emission allowance trading scheme
 Directive 2009/30/EC : monitoring and abatement of fuel-derived GHG emissions
 Directive 2009/31/EC: CO2 geological storage
 Decision 406/2009/EC: effort sharing among member states to reduce GHG
emissions
 Regulation EC Nº 443/2009: emission performance standards (new passenger cars)
http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2009:140:0016:0062:en:PDF
http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2009:140:0063:0087:en:PDF
http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2009:140:0088:0113:EN:PDF
http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2009:140:0114:0135:EN:PDF
http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2009:140:0136:0148:EN:PDF
http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2009:140:0001:0015:EN:PDF
Perspective of the E.U. and the Spanish experience 2010 International Conference on Renewable Energy 9

10. Outline
1. Principles & Targets
2. Current Situation
 Europe: RES in Energy Mix and Support Schemes
 Spain: RES in Energy Mix and Regulatory Framework
3. Final Remarks
Perspective of the E.U. and the Spanish experience 2010 International Conference on Renewable Energy 10

11. Current Situation – Europe: RES in energy mix
Where does the energy come from that the E.U. consumes?
E.U. 27 Final Energy Consumption
by fuel in 2007 [MTOE]
(Renewables, not including electricity)
E.U. Energy and Transport Statistical Pocketbook 2010
http://ec.europa.eu/energy/publications/statistics/doc/2010_energy_transport_figures.pdf
Perspective of the E.U. and the Spanish experience 2010 International Conference on Renewable Energy 11

12. Current Situation – Europe: RES in energy mix
Where does the electricity come from that the E.U.
generates?
E.U. 27 Gross Electricity
Generation in 2007 [TWh]
(Other: Pumped Storage Plants and Other Power Stations)
E.U. Energy and Transport Statistical Pocketbook 2010
http://ec.europa.eu/energy/publications/statistics/doc/2010_energy_transport_figures.pdf
Perspective of the E.U. and the Spanish experience 2010 International Conference on Renewable Energy 12

13. Current Situation – Europe: RES in energy mix
Which technologies drive present capacity growth?
E.U. New Installed or Decommissioned
Capacity in 2009 [GW]
Joint Research Center: PV Status Report 2010
http://publications.jrc.ec.europa.eu/repository/handle/111111111/14824
Perspective of the E.U. and the Spanish experience 2010 International Conference on Renewable Energy 13

14. Current Situation – Europe: Support Schemes
What are the renewable electricity support schemes?
OPTRES: Assessment and optimization of renewable energy support schemes in the European electricity market (2007)
http://ec.europa.eu/energy/renewables/studies/doc/renewables/2007_02_optres.pdf
Perspective of the E.U. and the Spanish experience 2010 International Conference on Renewable Energy 14

15. Current Situation – Spain: RES in energy mix
Where does the electricity Spain generates come from?
Spanish installed capacity and demand coverage 2009 [mainland system]
Installed capacity
Demand coverage
Red Eléctrica de España (Spanish TSO): The Spanish Electric System - Summary (2010)
http://www.ree.es/ingles/sistema_electrico/pdf/infosis/sintesis_REE_2009_eng.pdf
Perspective of the E.U. and the Spanish experience 2010 International Conference on Renewable Energy 15

16. Current Situation – Spain: RES in energy mix
What is share evolution vs. gross demand of renewables?
2010e: 30%
CNE: Statistical Data on Special System Energy Sales (updated monthly)
http://www.cne.es/cne/Publicaciones?id_nodo=143&accion=1&soloUltimo=si&sIdCat=10&keyword=&auditoria=F
Perspective of the E.U. and the Spanish experience 2010 International Conference on Renewable Energy 16

17. Current Situation – Spain: RES in energy mix
What is the evolution of renewables by technology?
CNE: Statistical Data on Special System Energy Sales (updated monthly)
http://www.cne.es/cne/Publicaciones?id_nodo=143&accion=1&soloUltimo=si&sIdCat=10&keyword=&auditoria=F
Perspective of the E.U. and the Spanish experience 2010 International Conference on Renewable Energy 17

18. Current Situation – Spain: RES in energy mix
What is installed (on-shore) wind capacity through 2009?
CNE: Statistical Data on Special System Energy Sales (updated monthly)
http://www.cne.es/cne/Publicaciones?id_nodo=143&accion=1&soloUltimo=si&sIdCat=10&keyword=&auditoria=F
Perspective of the E.U. and the Spanish experience 2010 International Conference on Renewable Energy 18

19. Current Situation – Spain: RES in energy mix
What is the installed solar PV capacity through 2009?
CNE: Statistical Data on Special System Energy Sales (updated monthly)
http://www.cne.es/cne/Publicaciones?id_nodo=143&accion=1&soloUltimo=si&sIdCat=10&keyword=&auditoria=F
Perspective of the E.U. and the Spanish experience 2010 International Conference on Renewable Energy 19

20. Current Situation – Spain: RES in energy mix
Where does the electricity Spain generates come from?
Demand coverage 2005-09 [mainland system, TWh]
 Wind and gas progressively replace coal; solar (both photovoltaic &
concentrated solar power) drive non-wind renewable growth
 Rapid shift of “special system” from tariff to market (mainly wind farms)
 Hydro (no further sites) and Nuke (moratorium) shares, frozen
 Balanced mix but: increasing gas dependence and low interconnection
Red Eléctrica de España (Spanish TSO): The Spanish Electric System - Summary (2010)
http://www.ree.es/ingles/sistema_electrico/pdf/infosis/sintesis_REE_2009_eng.pdf
Perspective of the E.U. and the Spanish experience 2010 International Conference on Renewable Energy 20

21. Current Situation – Spain: Regulatory Framework
What is CNE‟s methodology to guide RES development?
 Based on four basic criteria:
1. Reach targets set in indicative planning
 Keywords: economic sustainability, E.U. and national objectives
2. Generate stability and predictability of economic support
 Keywords: legal security for investors, low regulatory risk
3. Improve RES integration as regards system operation
 Keywords: supply security, control centers, ancillary services
4. Make RES & CHP compatible with electricity market
 Keywords: competitiveness, price-sensitivity, grid parity
Perspective of the E.U. and the Spanish experience 2010 International Conference on Renewable Energy 21

22. Current Situation – Spain: Regulatory Framework
What is the economic impact of renewable
energies?
Evolution in installed capacity by technology 2000-2009 Economic impact of
35,000 renewable energies
30,000
(2008)
25,000
20,000 Other o GDP: €7,315 M (0.67% GDP)
MW 15,000
Hydraulic
o Generation of jobs: 120,722
10,000
Wind people, of which 75,466 are
5,000
Solar employed directly
0
Cogeneration o Commercial Figures
• Exports: €3,863 M
o TOE* prevented: 10 million,
* datos ene-oct 2009 equivalent to a saving in fossil fuels
of €2,725 M
Contribución del Régimen Especial enDemand
Contribution of the Special System as a % of % a la
coberturaCoverage (2000-2009)
o CO2 emissions prevented: 23.6
35% de la demanda (2000-2009) million tons, which correspond to a
30% saving in emission rights of €499 M
25% o DR+D+i: 6.6% of sector’s GDP (five
20% times more than the national
15% average, which is 1.3%)
10%
5%
* ton of oil equivalent
0%
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Perspective of the E.U. and the Spanish experience 2010 International Conference on Renewable Energy 22

23. Outline
1. Principles & Targets
2. Current Situation
3. Final Remarks
Perspective of the E.U. and the Spanish experience 2010 International Conference on Renewable Energy 23

24. Final Remarks
Perspective of the E.U. and the Spanish experience
 Concern about sustainability
 Three pillars of energy policy: supply security, competitiveness and
environmental sustainability
 Sustainable development:
 Developed countries: intergenerational and intra-generational
responsibility
 Importance of regulation in employing renewable energies
 E.U.: Green package (sets 20-20-20 quantitative objectives for 2020)
 Spain: Suitable regulatory framework for achieving objectives:
 CNE methodology
 Success of mechanisms employed: feed-in tariff
Perspective of the E.U. and the Spanish experience 2010 International Conference on Renewable Energy 24

25. Thank you for your time
María-Teresa Costa
President
National Energy Commission (Spain)