# Presentation: 216417

## “Renewable Energy:  A European Perspective”Rick Sellers	Head, Renewable Energy UnitOffice of Energy Efficiency, Technology, and Energy Research and DevelopmentInternational Energy Agencyrick.sellers@iea.org

## Main Points

- What are prevailing European views regarding global energy markets and the role of renewables in those markets?
- How do Europeans tend to view their strategic interests in these markets?
- What actions are Europeans taking to serve these markets?
- What questions regarding these issues deserve further analysis?

**Notes:**
Here’s a brief run-down of my main points.  
I hope to bring this all to a message of what the  challenges of the next ten years are likely to be, and some thoughts on  what the industry and  governments might do to continue the rapid pace of  PV market growth.

## Key Drivers in EU RE policies

- Key Drivers in EU RE policies

*Local job creation*

*** ******Environment***

***Security of supply***

**Reducing emissions of CO****2**** and other pollutants (acid rain, etc.)**

**Reducing imports**

***Local and regional development***

**Economic and social cohesion**

## World Primary Energy Demand

***Gas grows fastest in absolute terms & non-hydro renewables ***
***fastest in % terms, but oil remains the dominant fuel in 2030***

**Oil**

**Natural gas**

**Coal**

**Nuclear power**

**Hydro power**

**Non-hydro renewables**

- Source:  IEA *World Energy Outlook 2002*

**Notes:**
This is a quick snapshot of the future mix of energy technologies if we fail to make any changes to shifting priorities away from fossil fuel.  The IEA believes that this scenario is not sustainable, and is cause for calls to action such as made by the Ministers earlier this year.  Nevertheless, even with no new policy supports the  “new” renewables are the fastest growing on a percentage basis.  However, in this scenario, renewable energy does not really develop significant market share.

## Map of Global Energy Poverty

***1.6 billion people have no access to electricity, ***
***80% of them in South Asia and sub-Saharan Africa***

- Source:  IEA *World Energy Outlook 2002*

## Regional Shares in World Primary Energy Demand

***62% of the increase in world demand between 2000 and 2030***
***comes from developing countries, especially in Asia***

## World Primary Energy Supply- Current Policies -

- Source:  IEA *World Energy Outlook 2002*

**Notes:**
In this scenario, despite good growth, renewables total share doesn’t change much, and in fact goes down, due to the shift of rural populations in developing countries off the use of traditional biomass.  That, of course, is good news, but the fact that they mostly shift to small gasoline and diesel is not.

## Total

- DC’s off grid

- SIMULI Analysis 2001

- additional 250m people served

- additional 700m people served

## Annual Growth of Renewables Supply from 1971 to 2000

**Annual Growth of Renewables Supply from 1971 to 2000**

- Source:  International Energy Agency (IEA)

**Notes:**
The result of this technological development, coupled with the investment and hard work of industry to sell commercial technology, has been very rapid market growth.  Its true that this is, in part, due to the very low scale of the market.  But, it is also due to the growing awareness of consumers about renewable energy technology products, continued cost/performance, and the increasing scale of markets in which renewable energy is commercially competitive.

## Policies make a difference

- Share of Renewables in Electricity Generation

***The role of non-hydro renewables is much greater****** ***

***in all OECD regions, especially Europe***

- Source:  IEA *World Energy Outlook 2002*

**Notes:**
And here, then, is the result of these enhanced policies.  Note particularly the dark blue base of the graph, where “new renewables” would grow dramatically in the outlook period.  This chart suggests quite strongly that the enhancement of policies through additional supports can have a big impact over thirty years.  One can imagine the increased impact of policies that were not contemplated in 2002, and that will come into effect later in this decade.

## Source:  IEA World Energy Outlook 2002

- Source:  IEA *World Energy Outlook 2002*

**Notes:**
Finally, this then shows the carbon implication of the reference scenario in blue, and the Alternative scenario in red.  This is, of course, a good news story about the possible contribution of renewables and other advanced technologies to mitigating climate change.

## Source:  IEA World Energy Outlook 2002

- Source:  IEA *World Energy Outlook 2002*

**Notes:**
This then shows the reduction in fossil fuel use as a result of increased renewables and improved energy efficiency.

## RTD and promotion to support EU energy policies

**Market development, Certification, Planning, Financing, Promotion**

**Research, Development, and Demonstration of Technology (RTD)**
**Integrated projects, Specific Targeted Research Projects, **
**Co-ordination Actions, Specific Support Actions**

**European (EU) Policies and Targets**
**Directives and Legislation**

## EU Energy Policy Papers

**EU Energy Policy Papers**

-  **COM on Green Paper on Security of Energy Supply (Jun 2002)**
** ****White Paper on Common Transport Policy (Oct. 2001)**
** ****White Paper on Renewable Energy Sources (Nov. 1997)**
** ****Action plan to improve Energy Efficiency in the EU (April 2000)**
** ****Renewable Electricity Directive 2001/77/EC (Sept 2001)**
** ****Directive on Buildings Energy Performance (Dec 2002)**
** ****COM on Alternative Fuels - 2 Biofuel Directives  (Nov 2001)**
** ****Proposed CHP  (“Co-generation”) Directive (July 2002)**

## EU Targets 

- EU Targets

**RES-e DIRECTIVE** **2001 **: to establish** **a framework to **increase the share of green electricity** **from 14% to 22% **of gross electricity consumption **by 2010**

**White paper 1997** (Green paper 2001):** ** increase share of RES **from 6% to 12% **of gross consumption **by 2010**

- Comply with EU commitments under the 1997 Kyoto Protocol on **reducing greenhouse gas emissions**

**Liquid biofuels** targets: 2% by 2005;  5.75% by 2010

**Energy efficiency** target to reduce energy intensity by a further 1 percentage point per year until 2010

- Johannesburg “**coalition of the willing**” to work to increase the use of RES using targets and timetables

## Directive 2001/77/EC

## FP6 short and medium-term research areas / topics (405 M€)

**FP6 short and medium-term research areas / topics ****(405 M€)**

**	****CLEAN ENERGY, IN PARTICULAR RENEWABLES**
** ****Cost effective supply**
** ****Large scale integration**
**	****ENERGY SAVINGS AND ENERGY EFFICIENCY**
** ****Eco-buildings**
** ****Polygeneration**
**	****ALTERNATIVE MOTOR FUELS**
** ****Biofuels, natural gas and H****2**
** ****CIVITAS 2**

## Clean energy work programme

**	****Cost effective supply of renewable energy**
** ****Electricity, in particular from biomass and / or****   waste derived fuels, wind, photovoltaics and****   geothermal**
**  ****Heating and Cooling from renewable energy****   sources**
**  ****Production and processing of liquid and****   gaseous biofuels**

## Energy savings and energy efficiency

**design, construction and operation of new  buildings**
**energy performance of the refurbished buildings**
**POLYGENERATION**
**energy technologies for providing electricity, heating, cooling and/or other energy products and services, including CHP**
**fuel cells, hydrogen, renewables in the energy system**

**Energy savings ****and energy efficiency**

## Alternative motor fuels

**  “****Well to wheel” approach for the Integration of alternative fuels into the transport system**
**  ****The “Well to wheel” approach should address innovative integrated approaches to: feedstock, production, storage, distribution and use**
**  ****Strategies for market penetration as well as monitoring and assessment of on-going initiative**
**  ****Testing implementation and transition strategies for Clean Urban Transport (CIVITAS II)**

## Medium / long  term RTD

**Organic Solar Cells**
**PV Concentration**
**Application of PV in buildings**
**PV systems including**** MW-size PV plants**

**Medium / long  term RTD**
** ****priorities for PV in FP6**

## Short / medium term RTD

**“****CONCERTO” initiative**
**Increased supply of renewable energy with efficient energy demand management  in local communities**
**Eco-buildings**
**Polygeneration**

**Short / medium term RTD**
** ****priorities for PV in FP6**

**Notes:**
Short to medium term priorities are in two main areas as shown in the slide.

Under the cost effective supply budget line, we are trying to accelerate the development and market introduction of the next generation of lower costs PV technologies, such as (for example) PV modules with integrated inverters.

The CONCERTO initiative is just being launched, with a new call (deadline 17 December 2003).  This could  involve up to about 30 local communities (towns, cities, or rural communities) who are interested in improving their energy performance.

There will be good opportunities for PV to play a role in such projects, since the aim is to study the performance of local communities which are working to increase their % consumption of renewable energy sources whilst at the same time improving the efficiency of their energy  use.

## Short and medium term   - 405 M€
	Emphasis on demonstrations
Cost reductions
Large scale integration into recognised supply chains

Medium and long term   - 405 M€
	     Emphasis on research
Improved technologies and systems
New and improved devices

*	**Emphasis on demonstrations*
*Cost reductions*
*Large scale integration into recognised supply chains*
*Medium and long term   - 405 M€*
*	**     **Emphasis on research*
*Improved technologies and systems*
*New and improved devices*

**European PV research **
**“****FP6”   2002 - 2006**

**Notes:**
DG TREN manages the short to medium term energy RTD, whilst DG Research  manages the medium to long term RTD.  There is of course some overlapping, but the budget is split 50:50.

The short to medium terms work focuses on Demonstration actions, whilst the longer term actions are more of a research nature.

FP6 has introduced two new kinds of contract instrument:
  - Integrated projects (greater ambition, more flexible)
  - Networks of excellence (to encourage collaboration in the EU research area)

## Intelligent Energy - Europe Programme (~200 M€ over 4 years) 

## EU - international co-operation

*“**The European Research Area must be opened up to the rest of the world.  This will enable EU countries, and third countries, to benefit from international cooperation in Science & Technology, thereby paving the way for closer political and economic relations.”*
- (P. Busquin, Commissioner for Research)

-   285 M€ for partners in RTD projects from countries with   FP6 cooperation agreements, or other countries if their   participation is necessary for the work to be done
-   315 M€ for special international “INCO” research actions
-   Mobility of researchers (incoming and outgoing)

##              EU Energy Initiative        Partnerships with Developing Countries

*                          **(the “Coalition of the Willing”)*

## CONCLUSIONS – RTD Programs

- Limited number of integrated RTD projects with a real European dimension
- Serious efforts on cost reductions for RES
- Innovative integration in Eco-buildings and Polygeneration
- From individual technology projects to initiatives in local communities - CONCERTO
- International and Enlargement dimensions

## A continuously evolving database referencing renewable energy policies and measures in IEA countries (20 European Countries)

- Live to a public audience since May 2003
- Searchable by 3 criteria, country, policy type, or renewable energy technology
- http://library.iea.org/renewables/index.asp

## Slide 29

## Slide 30

## Slide 31

## From the previous screen the record you receive is:

## 20 European Countries listed

Database observations 
Feed-in Tariffs most common European policy tool
Solar Photovoltaic features most prominently in European policies followed closely by wind
Belgium, Denmark and Sweden have the most Renewable Energy policies

**Database observations **
**Feed-in Tariffs most common European policy tool**
**Solar Photovoltaic features most prominently in European policies followed closely by wind**
**Belgium, Denmark and Sweden have the most Renewable Energy policies**

## Slide 34

## Conclusions

** ****confidence is growing in grid connected markets, thanks to National subsidy schemes for the current generation of RE systems ***(subsidies comply with WTO and state aid rules)*
** ****industry is investing in new production capacity, but mainly for the current generation of technologies (for subsidised markets)**
** ****Commission tries to accelerate development, demonstration and market introduction of a new generation of cheaper RES systems**

**Notes:**
The Commission remains committed to the future development of the PV sector, but needs the collaboration of the main industry actors as well as those in authority in the Member States.

The Member States are still showing their strong support for the sector and many MS have very positive support schemes for the PV sector.

However, we must not be complacent.  The public will not be prepared to go on supporting the PV sector for ever with such high levels of subsidy, compared with the other RE technology sectors.

Hence, it is vital the the PV industry in the EU and world-wide should pull together to find ways of reducing the costs of PV electricity.

## EUROPA: http://www.europa.eu.int
6th Framework Programme (general): http://europa.eu.int/comm/research/fp6/index_en.html
DG Research “energy” web site: 
	http://europa.eu.int/comm/research/energy/index_en.html 
DG Energy and Transport “energy” web site:http://europa.eu.int/comm/energy/index_en.html
CORDIS:http://www.cordis.lu
ManagEnergy (local/regional agencies, projects, partner search...) http://www.managenergy.net
Enquiries: william.gillett@cec.eu.int

*6th Framework Programme (general): **http://europa.eu.int/comm/research/fp6/index_en.html*
*DG Research “energy” web site:*
- 	*http://europa.eu.int/comm/research/energy/index_en.html*
*DG Energy and Transport “energy” web site:**http://europa.eu.int/comm/energy/index_en.html*
- CORDIS:*http://www.cordis.lu*
*ManagEnergy** ***(local/regional agencies, projects, partner search...) ***http://www.managenergy.net*
- Enquiries: william.gillett@cec.eu.int

**Sources of Information**

## Contact us

_**[www.iea.org](http://www.iea.org/)**_
_**[www.iea.org/techno/renew/index.htm](http://www.iea.org/techno/renew/index.htm)**_
_**[www.trecnet.org](http://www.trecnet.org/)**_
**http://www.iea.org/stats/files/renewables.htm**

**Rick Sellers**
**Head, Renewable Energy Unit**
**International Energy Agency**
**rick.sellers@iea.org**
**33.1.4057.6563**