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Renewable Energy Policy of the European
           Union – How Europe converts to sustainable
                 energy supply and consumption

                 Workshop at the oikos Spring Meeting 2009
                                  in Oslo

                  Nina Hug, oikos PhD Fellow 2008-2011




                                        www.oikos-international.org
2-Apr-09                                                              1
Agenda
           1 Why a renewable energy policy?

           2 History of energy policy and EU targets

           3 How to reach the targets?

           4 Summary: how far reaches the EU’s arm?

           5 International Context: the role of CDM

           6 Further reading and tasks

                                          www.oikos-international.org
2-Apr-09                                                                2
Why a renewable energy policy?
   -  reducing GHG emissions

   -  energy security

   -  knowledge based industry

   -  rural development




                                 www.oikos-international.org
2-Apr-09                                                       3
History of Renewable Energy Policy in the EU

  1997      1998   1999   2000   2001   2002     2003      2004      2005       2006 2007 2008


                                                                                         Proposal
    White                        RE-Directive           progress Evaluation
                                                                                         new RE-
    Paper                                               report   of support
                                 21% share of                                            directive
                                                                 schemes
                                 RE in                                                   with
                                 electricity                                             country
                                 consumption                                             targets

                                                Directive                       RE Road map:
                                                on bio-                         target of 20%
                                                fuels                           share of RE in
                                                                                energy
                                                                                consumption
                                                  www.oikos-international.org
2-Apr-09                                                                                     4
EU Energy Targets
   -  2010: 21% electricity from renewable sources

   -  2010: 5,75% biofuels.

   -  2020: 20% renewables in total energy consumption




                                        www.oikos-international.org
2-Apr-09                                                              5
Excursus: What are Directives?
   -  Setting targets
   -  means to achieve the result left to member states
   -  Timetable for implementation
   -  no compliance EU-Commission can initiate legal action




                                         www.oikos-international.org
2-Apr-09                                                               6
Progress in reaching the targets

      share of total primary energy supply in 2006 (EU 27)

                                                                       Renewable
                                                                       Energy share:
                                                                       7,4 %




                                                                         Source: IEA


                                               www.oikos-international.org
2-Apr-09                                                                               7
Progress in reaching 2010 targets
           in 2006




                             EU expects to reach a share of 19%
                             by 2010, missing the target by 2%




                                                      Source: EEA


                                 www.oikos-international.org
2-Apr-09                                                            8
Sector-Objectives to meet the 2020 targets
   -  Renewable electricity: from 15% to 34%
           -  Role of wind energy: 12%

           -  Solar energy cost reduction by 50%

   -  Sustainable heating and cooling: double the amount
           -  Applying best practices (Sweden, Germany, Austria)

   -  Biofuels: share of 14%




                                                   www.oikos-international.org
2-Apr-09                                                                         9
Support schemes for renewables




                            www.oikos-international.org
2-Apr-09                                                  10
Feed-in tariffs dominate the scene

                               support schemes for
                               onshore wind energy




                              www.oikos-international.org
2-Apr-09                                                    11
Harmonization of support schemes?
   -  27 EU member : 27 different support schemes

   -  EU favors Quota: market freedom

   -  But: national schemes now well established

   -  Security for investors prevails over harmonization

     Recommendations to reduce administrative barriers




                                          www.oikos-international.org
2-Apr-09                                                                12
How far reaches the EU‘s arm?
   -  Provide framework

   -  Setting inscentives

   -  Pressure by competition: lead markets

   -  Diffusion of policy: structure – agency divide

   -  The role of pioneers: e.g. ICLEI (local governments for
      sustainability)

   -  Credibility in international negotiations



                                            www.oikos-international.org
2-Apr-09                                                                  13
The international context
   •  Kyoto targets EU-15: reduction by 8% for the period 2008-2012
   •  Kyoto-Mechanisms can be applied by member states
   •  One crucial mechanism is CDM
   •  What effects does this have on Renewable Energies in Europe and
      worldwide?
   •  How is sustainability addressed with this mechanism?




                                        www.oikos-international.org
2-Apr-09                                                              14
Clean Development Mechanism and Renewables
     - earning carbon credits as a reward to investments in climate-friendly
     projects abroad
     - Businesses allowed to meet domestic GHG-reduction targets by
     using CDM
     - Project proposal includes
          -  where and how are emissions reduced?
          -  What would be future emissions in absence of the project
             (baseline scenario)
          -  Validation by Designated Operational Entity (DOE)
          -  Executive Board of CDM decides on approval



                                           www.oikos-international.org
2-Apr-09                                                                   15
Conditions for sustainable CDM projects
   -  Invest in projects focussed on renewable energy sources
   -  Ensure technology-transfer and capacity building
   -  Move from individual technology unit approach to integrated
      planning
   -  Meet sustainability criteria that go beyond „additionality“

   Conclusion
   -  CDM could reduce costs for reaching GHG emission targets
   -  But: threatening leadership-role of EU in climate change: less
      impetus to improve renewable energy technologies


                                            www.oikos-international.org
2-Apr-09                                                                  16
Group work and further reading
     1. Policy: sustainability of CDM. A Development Mechanism that
     cleans little?!
     2. Reaching the 2020 targets: What can offshore wind energy
     contribute – what are the main challenges?




                                         www.oikos-international.org
2-Apr-09                                                               17
Your task
   •  Divide into 4-people groups and read the texts provided!
   •  Take a worksheet and write down your opinion to the question/
      thesis!
   •  Exchange the worksheet with your neighbour and write a
      commentary to his opinion. Circulate the worksheets until you get
      your initial worksheet back.
   •  Write down your conclusion based on the commentaries you
      received from your colleagues.




                                          www.oikos-international.org
2-Apr-09                                                                  18

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Nina on Renewable Energies

  • 1. Renewable Energy Policy of the European Union – How Europe converts to sustainable energy supply and consumption Workshop at the oikos Spring Meeting 2009 in Oslo Nina Hug, oikos PhD Fellow 2008-2011 www.oikos-international.org 2-Apr-09 1
  • 2. Agenda 1 Why a renewable energy policy? 2 History of energy policy and EU targets 3 How to reach the targets? 4 Summary: how far reaches the EU’s arm? 5 International Context: the role of CDM 6 Further reading and tasks www.oikos-international.org 2-Apr-09 2
  • 3. Why a renewable energy policy? -  reducing GHG emissions -  energy security -  knowledge based industry -  rural development www.oikos-international.org 2-Apr-09 3
  • 4. History of Renewable Energy Policy in the EU 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Proposal White RE-Directive progress Evaluation new RE- Paper report of support 21% share of directive schemes RE in with electricity country consumption targets Directive RE Road map: on bio- target of 20% fuels share of RE in energy consumption www.oikos-international.org 2-Apr-09 4
  • 5. EU Energy Targets -  2010: 21% electricity from renewable sources -  2010: 5,75% biofuels. -  2020: 20% renewables in total energy consumption www.oikos-international.org 2-Apr-09 5
  • 6. Excursus: What are Directives? -  Setting targets -  means to achieve the result left to member states -  Timetable for implementation -  no compliance EU-Commission can initiate legal action www.oikos-international.org 2-Apr-09 6
  • 7. Progress in reaching the targets share of total primary energy supply in 2006 (EU 27) Renewable Energy share: 7,4 % Source: IEA www.oikos-international.org 2-Apr-09 7
  • 8. Progress in reaching 2010 targets in 2006 EU expects to reach a share of 19% by 2010, missing the target by 2% Source: EEA www.oikos-international.org 2-Apr-09 8
  • 9. Sector-Objectives to meet the 2020 targets -  Renewable electricity: from 15% to 34% -  Role of wind energy: 12% -  Solar energy cost reduction by 50% -  Sustainable heating and cooling: double the amount -  Applying best practices (Sweden, Germany, Austria) -  Biofuels: share of 14% www.oikos-international.org 2-Apr-09 9
  • 10. Support schemes for renewables www.oikos-international.org 2-Apr-09 10
  • 11. Feed-in tariffs dominate the scene support schemes for onshore wind energy www.oikos-international.org 2-Apr-09 11
  • 12. Harmonization of support schemes? -  27 EU member : 27 different support schemes -  EU favors Quota: market freedom -  But: national schemes now well established -  Security for investors prevails over harmonization   Recommendations to reduce administrative barriers www.oikos-international.org 2-Apr-09 12
  • 13. How far reaches the EU‘s arm? -  Provide framework -  Setting inscentives -  Pressure by competition: lead markets -  Diffusion of policy: structure – agency divide -  The role of pioneers: e.g. ICLEI (local governments for sustainability) -  Credibility in international negotiations www.oikos-international.org 2-Apr-09 13
  • 14. The international context •  Kyoto targets EU-15: reduction by 8% for the period 2008-2012 •  Kyoto-Mechanisms can be applied by member states •  One crucial mechanism is CDM •  What effects does this have on Renewable Energies in Europe and worldwide? •  How is sustainability addressed with this mechanism? www.oikos-international.org 2-Apr-09 14
  • 15. Clean Development Mechanism and Renewables - earning carbon credits as a reward to investments in climate-friendly projects abroad - Businesses allowed to meet domestic GHG-reduction targets by using CDM - Project proposal includes -  where and how are emissions reduced? -  What would be future emissions in absence of the project (baseline scenario) -  Validation by Designated Operational Entity (DOE) -  Executive Board of CDM decides on approval www.oikos-international.org 2-Apr-09 15
  • 16. Conditions for sustainable CDM projects -  Invest in projects focussed on renewable energy sources -  Ensure technology-transfer and capacity building -  Move from individual technology unit approach to integrated planning -  Meet sustainability criteria that go beyond „additionality“ Conclusion -  CDM could reduce costs for reaching GHG emission targets -  But: threatening leadership-role of EU in climate change: less impetus to improve renewable energy technologies www.oikos-international.org 2-Apr-09 16
  • 17. Group work and further reading 1. Policy: sustainability of CDM. A Development Mechanism that cleans little?! 2. Reaching the 2020 targets: What can offshore wind energy contribute – what are the main challenges? www.oikos-international.org 2-Apr-09 17
  • 18. Your task •  Divide into 4-people groups and read the texts provided! •  Take a worksheet and write down your opinion to the question/ thesis! •  Exchange the worksheet with your neighbour and write a commentary to his opinion. Circulate the worksheets until you get your initial worksheet back. •  Write down your conclusion based on the commentaries you received from your colleagues. www.oikos-international.org 2-Apr-09 18