RENEWABLE ENERGY SOURCES IN SLOVENIA 5/22/2018 10:27 AM RENEWABLE ENERGY SOURCES IN SLOVENIA Djordje Žebeljan, MSc Head of Energy Policies, New Technologies and Investment Office Obnovljivi izvori energije Beograd, 15.9.2016

RES LEGAL FRAMEWORK IN SLOVENIA EU legislation Climate and energy targets 2020, 2030 State aid rules National Renewable Energy Action Plan 2010-2020 (NREAP) Energy Act (2014) Decree on Support for Electricity from RES and from High-Efficiency Cogeneration of heat an Power National Energy Concept – to be adopted in 2017

EU CLIMATE AND ENERGY TARGETS Vir grafike: http://bruegel.org/2015/09/the-eu-2030-climate-and-energy-framework-keeping-up-pressure-on-governance-structures/

POWER SECTOR CONTRIBUTION TO EU TARGETS EU CLIMATE AND ENERGY TARGETS From 2020 to 2050 - ambitious decarbonisation agenda, power sector contribution is key RES a central point in the energy mix - intermittency 27% RES target for 2030 implies 45% RES in the electricity sector by 2050, the EU should cut its emissions to 80% below 1990 (Energy Roadmap 2050) 2030 climate and energy framework sets three key targets for the year 2030: At least 40% cuts in greenhouse gas emissions (from 1990 levels) At least 27% share for renewable energy At least 27% improvement in energy efficiency What about after 2050? Developing the RES necessary to pursue the EU’s decarbonisation agenda creates the need for market adaptations. In many power systems that have to handle increasing intermittency, firm capacity needs to be present to back up variable RES. The role of conventional PP! More than on third of our electricity consumption will come from RES, share of variable RES will increase as well.

SLOVENIA‘S CONTRIBUTION TO EU TARGETS 25% share of RES in final energy consumption by 2020 – Directive 2009/28/EC 39,5% share of RES in final energy consumption in the electricity sector by 2020 – NREAP 2010-2020) NREAP = National renewable energy action plan 2010-2020 DIRECTIVE 2009/28/EC OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 23 April 2009 on the promotion of the use of energy from renewable sources provides that each Member State must adopt a national renewable energy action plan (NREAP) for the period 2010-2020. These plans must set out the national targets of Member States for the shares of gross final energy from RES consumed in transport, electricity and heating and cooling in 2020. Non ETS emissions Energy efficiency RES share

SLOVENIA – CURRENT STATE OF PLAY Vir: Poročilo o stanju energetike 2015, Agencija za energijo

RES SUPPORT SCHEME IN SLOVENIA Legal framework: Energy Act (2014), Decree on Support for Electricity from RES Newest revision of support scheme currently in the process of assessment by the European Commission regarding alignment with EU state aid rules Decree on Support for Electricity from RES provides for 2 support measures: Guaranteed purchase of electricity (at guaranteed prices) – for plants with nominal electrical capacity of up to 5 MW, excluding wood biomass co-firing plants Financial aid for current operations – operating support – for RES generating plants with nominal capacity of 5 MW and more (maximum capacity 125 MW) or plants, eligible for guaranteed purchase that decide to opt for independent sale of electricity on the market and receive the operating support Revision: Maximum capacity of 10 MW, for wind 50 MW Eligible plants will be subject to open call (currently they submit an application) Guaranteed purchase for plants with nominal capacity of up to 1 MW, operating support for 1 MW and more Vir: Poročilo o stanju energetike 2015, Agencija za energijo

RES SUPPORT IN SLOVENIA – IMBALANCE ISSUE (solar energy) Support paid, 2010-2015 Total installed power capacity in RES support scheme, 2010-2015

RES SUPPORT RATES IN SLOVENIA IN 2016 Plant type Guaranteed purchase price (EUR/MWh) Operational support (EUR/MWh) Hydro   < 50 kW 105,47 73,74 < 1 MW 92,61 60,88 1 MW – (including) 10 MW 82,34 49,14 10 MW – (including) 125 MW / 43,37 Wind 95,38 65,87 55,01 Solar (on buildings) after Sep2014* 98,15 65,69 89,75 57,29 74,48 40,91 29,39 Solar (other) after Sep2014* 92,22 59,76 84,95 52,49 68,48 34,91 26,70 Plant type Guaranteed purchase price (EUR/MWh) Operational support (EUR/MWh) Biomass   < 50 kW Individual treatment < 1 MW 243,81 210,24 1 MW – (including) 10 MW 183,63 149,69 10 MW – (including) 125 MW / Biogas (from biomass) 159,74 127,28 155,41 121,84 140,37 106,34 Biogas (from waste) 139,23 106,77 105,66 129,15 95,21 Geothermal   < 50 kW 152,47 118,53 < 1 MW 1 MW – (including) 10 MW 10 MW – (including) 125 MW / Individual treatment Vir: Borzen, Določanje podpor EE iz OVE in SPTE v letu 2016, https://www.borzen.si/Portals/0/SL/CP/Podpore2016.pdf Za PV: Zgodovinski pregled cen: https://www.borzen.si/sl/Domov/menu1/Informacije/Novice/Aktualne-novice/ArticleID/353/Objavljamo-vi%C5%A1ine-podpor-za-leto-2016 *Solar has more than 30 different subtypes, depending on construction date. Support is graduallly decreasing from very high levels. The plants from 2009 receive as much as 415 EUR for guaranteed purchase and 383 EUR for operating support (example of solar plant on a building, < 50 kW) https://www.borzen.si/Portals/0/SL/CP/Podpore2016.pdf

CHALLENGES OF RES DEPLOYMENT IN SLOVENIA Lack of public support- the „NIMBY“ effect Lengthy and complex spatial planning procedures Dated national energy strategy High percentage of NATURA 2000 sites NIMBY: „not in my back yard“

RES PERSPECTIVES IN SLOVENIA RES technology for electricity – estimated total contribution to the binding targets for 2020 and indicative shares for 2015-2020 Vir: NREAP 2010-2020

DEVELOPMENTS ON EU ENERGY MARKET – „EXPECTATIONS“ LONG-TERM, STABLE, PREDICTABLE REGULATORY FRAMEWORK INTERNAL ENERGY MARKET IS KEY A ROBUST ETS A KEY DRIVER FOR DECARBONISATION TECHNOLOGY NEUTRALITY AND COMPETITIVENESS AS MAIN PRINCIPLES PHASING OUT OF RES SUBSIDIES AFTER 2020 LEVEL PLAYING FIELD FOR RES AND CONVENTIONAL BAT TECHNOLOGY MARKET INTEGRATION OF RES (SAME RIGHTS AND OBLIGATIONS) SUPPORT FOR GENERATION ADEQUACY – ESSENTIAL ELEMENT OF NEW MARKET DESIGN: MARKET BASED WELL-DESIGNED TECHNOLOGY NEUTRAL IN THE TRANSITION PERIOD (UNTIL RES SUBSIDIES PHASE-OUT)

Energy is not just a Geometry 