SDEWES, Dubrovnik, Croatia, 02. October 2009 Tariffs for energy storage -STORIES project workshop- Goran Krajačić, Neven Duić,

Tariffs for energy storages 2. Dubrovnik, Croatia, 02/10/2009 Need for financial mechanisms?

Tariffs for energy storages 3. Dubrovnik, Croatia, 02/10/2009 Mechanisms BasicsSupport Policy Support Mechanisms which at a minimum include measures for: Access to the grid (interconnection), and A price for the electricity produced that contributes to profitability (revenues from tariffs, or from tariffs plus some other monetary support, must exceed the costs of generation by a sufficient margin for profitability)

RES Policy Tariffs for energy storages 4. Dubrovnik, Croatia, 02/10/2009 Policies that support renewable energy development must include: The political desire or demand for renewable sources of generation, The willingness to pay for renewable generation, and The stability of public policy to provide a return on investment.

Financial Support Mechanisams Feed-in tariff systems are characterized by a specific price normally set for a period of several years, which must be paid by electricity companies, usually distributors, to domestic producers of green electricity. A variant of the feed-in tariff scheme is the fixed premium mechanism. Green certificate system RES-E is sold at conventional power-market prices. In order to finance the additional cost of producing green electricity and to ensure that the desired green electricity is generated. Tendering procedure the state places a series of tenders for the supply of RES-E which is then supplied on a contract basis at the price resulting from the tender. Tax incentives are used as an additional policy tool. Tax incentives may be a tax credit or a cash payment or an exemption from tax obligations or low VAT. Investment incentives: A common investment subsidy is a grant for the installation of capacity. Tariffs for energy storages 5. Dubrovnik, Croatia, 02/10/2009

Portugal case study Tariffs for energy storages 6. Dubrovnik, Croatia, 02/10/2009 Already applied in over 40 countries, states and provinces around the world, a highly effective tool for boosting the viability, and hence value, of the renewables industry, FITs have been empirically proven to generate the fastest, lowest-cost deployment of renewable energy.

FIT FOR PHS Tariffs for energy storages 7. Dubrovnik, Croatia, 02/10/2009 (eq. 1.)

Tariffs for energy storages 8. Dubrovnik, Croatia, 02/10/2009 Rated power of the turbine – MW8.0 Rated power of pumps – MW6.5 Capacity of the reservoir - m Installed power of WT – MW18.3 Additional installed power of WT - MW €/MWh i15% N – payback years8

Market organization Tariffs for energy storages 9. Dubrovnik, Croatia, 02/10/2009

THANK YOU FOR YOUR ATTENTION! Tariffs for energy storages 10. Dubrovnik, Croatia, 02/10/2009