sou · GWB313d2 · 2009-01-01 00:00:00 — Bättre kontakt via nätet - om anslutning av förnybar elproduktion, del 2 Based on Renewable Energy Sources in , , , and to Report of the SOU och Ds kan köpas från kundtjänst. För remissutsändningar av SOU och Ds svarar på uppdrag av . Beställningsadress: kundtjänst 106 47 Orderfax: Ordertel: E-post: Internet: Svara på remiss. Hur och varför. Statsrådsberedningen, 2003. – En liten broschyr som underlättar arbetet för den som skall svara på remiss. Broschyren är gratis och kan laddas ner eller beställas på Textbearbetning och layout har utförts av , FA/kommittéservice This report is an underlying report to the Inquiry established by the Swedish Government on connection to the grid of electricity production based on renewable energy sources. The aim of this report is to give an insight on how different issues regarding connec- tion to the grid have been regulated in , , , and the . This report is based on interviews and legislation. The focus of this report relies on network issues but in order to give an overall insight on the circumstances in which renewable energies are deve- loped in the studied countries even a description of the economical promotion schemes is done. We would like to thank all those who have contributed to this report: In : Asociación Empresarial Eólica – AEE, Comisión Nacional de la energía – CNE, Ministerio de Industria, Turismo y Comercio – MITYC, para la Diversificación y Ahorro de la Energía – IDAE, Endesa, , and REE – Red Electrica de . In : – Rede Eléctrica Nacional, EDP – Energías de , APREN – Associação de energias renováveis, DGEG – Direcção Geral de Energia e Geologia, and Centro de Estudos em Economia da Energia, dos Transportes e do Ambiente – CEEETA. In : German Federal Ministry for the Environment (BMU), Federal (BMWi), (Bundesnetzagentur), (), , (), Enercon. In the : Ofgem, (), National , Xero Energy, Garrad , (), . List of Abbreviations .......................................................... List of Figures ................................................................... List of Tables .................................................................... 1.1.1 Overview of the ........................ 1.1.2 Overview of the ......................... 1.1.3 Relevant Legislation for Renewable Electricity 1.1.4 Regulatory Framework for ...... 1.1.5 Development of the Sector in ...... 1.1.6 Possible Barriers for the Future Development of the Sector in .................................. Payment Scheme for ....... 1.2.1 Development of payment schemes.............................. 1.2.2 Agents Opinions on different Payment Schemes 1.3Application Procedure for Access and Connection to 1.3.1 Definition of the Capacity of a Production 1.4 Obligations of regarding ....... 1.4.2 Priority Access for Renewable Electricity 1.4.3 Reservation of Transmission Capacity ........................ Costs Associated to the Connection to the .................. 1.5.1 Costs for the Connection Installations....................... 1.5.2 Costs for Reinforcement of the Transmission 1.5.3 Costs for Reinforcement of the Distribution Costs and Obligations related to measurement..................... Rights and Obligations regarding Real-Time Operation ...... 2.1.1 Overview of the ........................ 2.1.2 Overview of the ......................... 2.1.3 Relevant Legislation for Renewable Electricity 2.1.4 Regulatory Framework for ...... 2.1.5 Development of the Sector in 2.1.6 Possible Barriers for the Future Development of the Sector in ............................. Payment Scheme for ....... 2.3Application Procedure for Access and Connection to the and Evaluation on Environmental Impact............... 2.3.1 Permitting Entities........................................................ Obligations of companies regarding ........ 2.4.1 Available Capacity ........................................................ 2.4.2 Priority Access for Renewable Electricity 2.4.3 Reservation of Transmission Capacity........................ Costs associated to the Connection to the ................... 2.5.1 Costs for the Connection Installations ...................... 2.5.2 Costs for Reinforcement of the Transmission 2.5.3 Costs for Reinforcement of the Distribution Costs and Obligations Related to Measurement ................... Rights and Obligations regarding Real-Time Operation ...... 3.1.1 Overview of the ...................... 3.1.2 Overview of the ...................... 3.1.3 Relevant Legislations for Renewable Energy............ 3.1.4 Regulatory Framework for .... 3.1.5 Development of the Sector in 3.1.6 Future Plans and Possible Barriers for the Further Development of ...................... Payment Scheme for Renewable Energy Sources ................ 3.3Application Procedure for Access and Connection to 3.3.1 Definition of the Capacity of a Production 3.4 Obligations of a Regarding .... 3.4.2 Reservation of Transmission Capacity...................... Costs Associated with the Connection to the ............ Costs and Obligations Related to Measurement ................. Rights and Obligations Regarding Real Time Operation.... 4.1.1 Overview of the ...................... 4.1.2 Overview of the ...................... 4.1.3 Relevant Legislations .................................................. 4.1.4 Regulatory Framework for .... 4.1.5 Development of the Sector in the 4.1.6 Future Plans and Possible Barriers for the Further Development of ....................... 4.1.7 Payment Scheme for Renewable Energy Sources ..... 4.2Application Procedure for Access and Connection to Definition of the Capacity of a Production 4.3 Obligations of a Regarding .... 4.4Grid Access, Available Capacity and Queue Reservation of Transmission Capacity ................................. Costs Associated with the Connection to the ............ Costs and Obligations Related to Measurement ................. Rights and Obligations Regarding Real Time Operation.... Summary of Findings................................................ Network Connection Procedure .......................................... Network Investment Costs................................................... 5.4Capacity Limits in the Regulations for Renewable Network Tariff Structure ...................................................... Related to Network Issues ...... Summary and Conclusion ..................................................... Bilateral Embedded Generation Agreement Bilateral Embedded License Exemptable Large Use of System charges Comisión Nacional de la Energía, (Regulator ) Connection and Use of System Code Dirección General de Energía The Office of Gas and Electricity Markets Plan de Energías Renovables Plan de Fomento de las Energías Renovables Rede Eléctrica () Renewable Energy Source Act Royal Decree () Use of System Charges Figure 1-1 Breakdown of total installed capacity for power Figure 1-2 Renewable energy breakdown................................... Figure 1-4 Factor for installations using renewable energies .... Figure 1-5 Development of the installed wind power capacity (MW) in 2000–2006. Figure 1-6 Voltage levels at which the wind farms in are connected by 2007.................................... Figure 1-7 Two power lines improve the connection to Figure 1-8 Provisional connection of a wind farm..................... Figure 1-9 Solar photovoltaic generator with measurement Figure 2-1 Breakdown of total installed capacity in by the end of year 2006................................................... Figure 2-2 Renewable energy breakdown by 31/12/2006 ......... Figure 2-3 Installed wind power capacity in from year 2000 to February 2007 ....................................... Figure 2-4 Yearly average feed-in tariff paid to wind power Figure 2-5 Monthly average payments for wind power Figure 2-6 investment projects in the Portuguese Transmission grid until 2010 ..................................... Figure 3-1 Renewable energy generation by source, 2006......... Figure 3-2 The German High Voltage Transmission Network and its TSOs. Figure 3-3 Schematic geographic representation of German Figure 3-4 Regional distribution of wind power in .108 Figure 3-5 Shares of the potential annual energy yield of the net electrical energy consumption for the Federal States Figure 3-6 Forecast for the development of wind power in Figure 3-7 Composition of the electricity price in the house- hold sector, 2005 ...................................................... Figure 3-8 Potential bottlenecks within E.on transmission Figure 4-1 in 2006................. Figure 4-2 Electrical Generating Capacity of Renewable Energy from 1997 to 2006 . Figure 4-3 Growth in Electricity Generation from Renewables Figure 4-6 Schematic representation of distribution companies Figure 4-7 Year-on year-existing and forecast onshore wind farms to 2010................................................... Figure 4-8 Map ..................................... Figure 4-9 Expected onshore wind installation by 2010.......... SOU 2008:13 List of Figures Figure 4-10 Renewable generating capacity from NFFO and former NFFO contracts.......................................... Breakdown of ROCs issued by technology type in Eligible capacity by technology in kW. Process for connection to the transmission system in Generation Use of System Tariff Zones as at Payment scheme for renewable electricity production according to RD 661/2007..................... Payment scheme for renewable electricity production according to RD 436/2004..................... Payment scheme for renewable electricity production according to RD 2818/1998................... Voltage levels at which wind power installations Feed-in tariffs (c/kWh) paid to wind power Feed-in tariffs (c/kWh) paid to electricity producers based on solar energy ............................... Feed-in tariffs (c/kWh) paid to electricity producers using biomass............................................ Feed-in tariffs (c/kWh) paid to hydropower Development of electricity production from Development of installed capacity by source from 1990 to 2006 ............................................................... Development of renewable electricity production by source from 1990 to 2006..................................... Feed-in tariffs for based on Renewable Energy Sources Act 2004......................................... Feed-in tariffs for Photovoltaic based on Renewable Energy Sources Act 2004 ......................................... Feed-in tariffs for Hydro units based on Renewable Energy Sources Act 2004 ......................................... Feed-in tariffs for Geothermal based on Renewable Energy Sources Act 2004 ......................................... Feed-in tariffs for Biomass based on RES Act 2004- Feed-in tariffs for Biomass based on RES Act 2004- Installed capacity of Renewable Energy Sources in the UK from 1998 to 2006....................................... Electricity generated from Renewable Energy Sources in the UK from 1998 to 2006..................... Overview of Non-Fossil Fuel Obligations in & and operational capacity 2006 .................. Successful NFFO bidding prices in British pence/kWh. Overview of Scottish Renewable Orders (SRO) and operational capacity 2006.................................. Overview of NFFO Auction Results ..................... How suppliers complied with their obligations in ROC prices from 2002 to 2007 based on eroc Overview of proposed bands................................... Overview of deadlines for distribution Fixed Prices for New Bilateral Agreements. Comparison of renewable energy regulations and its impact on wind power and solar photovoltaic Comparison of network connection procedures for producers using renewable energies........................ Comparison of network investment costs for producers using renewable energies........................ Comparison of capacity limits for producers using Overview of policy issues related to the construction/ownership of new power lines.......... Comparison of metering requirements. Comparison of network fees................................... Comparison of curtailment policy.......................... Comparison of current policy challenges related to has a total installed capacity in electric power production of 82,336 MWFTPF1FPT by the end of 2006. A Breakdown of total installed capacity by technology by the end of 2006 can be seen in Figure 1-1. has very interconnection capacity with its neighboring countries, , , , and of about 3%TPF2FPT of the installed capacity. Figure 1-1 Breakdown of total installed capacity for power production by technology by 31/12/2006. Category Rest of special regime in- cludes cogeneration and renewables except hydro and wind. 1TP PT Source: 2007, , varios/AEE_Anuario_2007_ING.pdf Source: REE & AEE The total installed capacity in renewable electricity production excluding large hydropower stations (installed capacity larger than 10 MW) was 13,959 MW by the end of year 2006. Figure 1-2 shows the share of the different renewables technologies to the total in- stalled capacity in renewable electricity production. power is the renewable source that has experienced the largest development in . During the last seven years the installed wind power capacity has grown from 1,585 MW year 1999 to 11,615 MW by the end of year 2006TPF3FPT. power production during year 2006 was 23,372 GWh, i.e., approximately of the total electricity de- mand in . Figure 1-2 Renewable energy breakdown by 31/12/2006 Source: CNE & AEE Therefore, even though the aim of this chapter is to give an insight on the Spanish renewable sector as a whole, it focuses on the wind power sector. During the last two years it has been an important increase of solar photovoltaic producers and the total installed capa- 2TP PT 3TP PT Source: See footnote 1. city of this technology was by the end of year 2006 equal to 118 MWTPF4FPT. Even though the installed capacity of solar photovoltaic installations is not comparable with the installed wind power capacity it might be interesting to get an idea of what is behind the development of solar photovoltaic. The typical voltage levels for the transmission grids in are and . The international connections are also consi- dered as a part of the transmission system. Red Eléctrica de , REE, is the Operator (TSO) and owns about of the power lines and of the power linesTPF5FPT. 4TP PT Source: Trends in photovoltaic applications. Survey report of selected IEA countries be- tween 1992 and 2006 , page 5. 5TP PT CNE, Información básica de los sistemas energéticos 2006, Electricidad. The typical voltage levels for the distribution grids in are (very high voltage), , , (high voltage), , , 13.2 kV, (medium voltage) and 380 V (400 V in the latest regu- lation, RD 842/2002, low voltage). In the main distribution companies are , Endesa, Unión Fenosa, Hidrocantábrico, and Viesgo with a market share of , , , , and each, which represent of the total distribution activity. During the last years the number of distri- bution companies has increased considerably even if they have a negligible market share. Electricity producers in are subjected to different legislation depending on the producing technology and energy source used. Producers are classified in two main groups; special regime and ordi- nary regime. Renewable energy sources are included in the special regime while the ordinary regime consists of conventional power plants such as nuclear power stations and is therefore left out of this study. The special regime has been regulated by different royal decrees named in the following. Royal Decrees in are legal orders proposed by the government, instead of being proposed by the parliament as in the case of laws, and have a lower range than laws. Royal decrees are named with a number followed by the year they are published. Royal decrees regulating the special regime are Royal Decree (RD) 2366/1994 which was modified by the RD 2818/1998 in order to adapt the legislation to the of the electricity sector 54/1997. The RD 2818/1998 was modified by the RD 436/2004 and recently, 2007, by the RD 661/2007. Aspects related to the connection of the production installations are regulated in the RD 1955/2000 partially modified by the RD 661/2007, by its annex XI regarding connection and by its disposición final regarding de- posits for licensing. There is specific legislation, RD 1663/2000, for the connection to the low voltage grid of solar photovoltaic in- stallations with an installed capacity lower than 100 kVA. There have been some changes in the different royal decrees regarding the groups in which producers in the special regime are divided. The RD 436/2004 established for the first time a division of the solar category into solar photovoltaic and thermal solar and of the wind category into on-shore and off-shore. The RD 661/2007 reduces the number of groups of the special regime from four to three. The three groups are: electricity producers using cogeneration (CHP), renewable energy sources, and waste. The group with producers using renewable energy sources is called group b and is divided into 8 subgroupsTPF6FPT as follows: b.1: solar energy b.2: wind energy b.3: waves, geothermic, tides b.4: and b.5: hydropower b.6, b.7, and b.8: biomass and biogas Installations with an installed capacity larger than 50 MW are not included in the special regime. However, when these installations use renewable energies, except for hydro power, they receive a pre- mium equal to the premium obtained by a similar installation with a capacity below 50 MW multiplied with a factor. That factor de- creases linearly with the installed capacity from 0.8 for 50 MW to 0.2 when the installed capacity is larger than 100 MW, see Figure 1-4. to this limitation there are no installations using renewable energies with installed capacity larger than 50 MW. 6TP PT For more details on which energy sources that are included in each subgroup see RD 661/2007, article 2. Figure 1-4 Factor for installations using renewable energies with an installed capacity larger than 50 MW. Currently, most of the producers included in the special regime are regulated by the RD 436/2004 even though there are still some producers regulated by the RD 2818/1998. There are transitory periods established in every Royal Decree in order to switch to a new regulatory frame established by a new Royal Decree. In some cases it is possible for producers to stay in the former legislation and in others there is no transitory period as for example for solar photovoltaic producers that automatically have switched into the new RD 661/2007 by , 2007. The income of the distribution activity is established ex-ante in the legislation every yearTPF7FPT in order to avoid eventual abuse of monopo- listic positions. The total income for the distribution activity is based on the previous year income modified by the national average de- mand increase, the price index, and a certain efficiency factor. Year 2007 a total income of 4,000 M was recognized to the distribution activity. To establish the income of each distribution company certain pre-defined shares are used. These shares do not take into account specific demand increase for each distribution company 7TP PT The income for the different distribution companies for year 2007 was established in the RD 1634/2006 (annex VII). which means that companies with large demand increase (as for example in the Levante region) get the same incentives to make investment as companies with a stable demand. Not all invest- ment costs are included when calculating the income for each distri- bution company, it is only those investment costs dedicated to the expansion of the grid to cover the natural increase in demand that are included. A new model for payment of the distribution activity has been defined in a proposal of Royal Decree made by the , Tourism and Trade. One of the major changes to be introduced by the new model is that different rates of the demand growth will be used for different regions. According to the current legislation if the demand growth for the whole country was for instance , then that value was applied to all distribution com- panies even if there were areas were the demand growth was higher. Reference grids will be used to compare different distribution com- panies according to the new model which will probably be applied from year 2008. The costs recognized to the distribution companies are collected by the distribution companies and retailers by means of tariffs and access fees paid by the consumers. Those tariffs and access fees are sent to the regulatory body, Comisión Nacional de la Energía, CNE, who splits them into the different costs associated to the electricity system of which one is the distribution cost. The distribution costs represented year 2005 approximately of the regulated costs. Other regulated costs are for example transmission costs and pe- manent costs defined as costs associated to the market operator (OMEL), the transmission system operator (REE) and the regula- tory body (CNE) among others. Besides the state regulation there is a different legislation for each region which can establish different requirements for example re- garding quality of supply. This might create economical imbalance since the payment to the distribution companies is determined by the central government and not by the regional authorities. 1.1.5Development of the Sector in It is important to point out that the development of the wind power sector in has taken place in a very different way than in other countries with large installed wind power capacity such as In the population density in large areas with good wind resource is much lower than in and . This has made it possible to build larger wind farms in than in and . In and it has been smaller investors who have carried out this development, while in the development has taken place through much larger investors such as electricity and construction companies. In , approximately of the wind power capacity is property of electric power companies. The fact that approximately of the owners are not electrical companies might be a risk since the sector is getting more and more technical with requisites on production manage- ment and forecasting for example, therefore the non-electrical com- panies might sell their installations. Important owners are already (2007) selling their installations and there is taking place a con- centration of the sector. The regulatory measures behind the great development of the wind power sector in during the last seven years, see Figure 1-5, areTPF8FPT the payment scheme with feed-in tariffs and the law of the electricity sector 54/1997. Commission has published several reports in which it is recognized that the payment scheme of feed- in tariffs is effective in terms of installed capacityTPF9FPT. The of the electricity sector from 1997 established that in order to cover at least of the primary energy demand with renewable energy sources by 2010 (equivalent to of the electricity demand) a plan had to be elaborated. That Plan had to include political objectives for the different renewable energy sources and related techniques. These political objectives had to be taken into account when calculating the feed-in tariff and premium. The objective of of the primary energy demand took into account the proposed recommendation in- cluded in the on Renewable Energies of Union. 8TP PT According to several interviewed agents of wind power sector in . 9TP PT The support of electricity from renewable energy sources, Communication from Commission, COM (2005) 627 –final, Section 2.3. tricity_en.pdf Figure 1-5 Development of the installed wind power capacity (MW) in 2000–2006. The plan for renewable energies, Plan de Fomento de las Energías RenovablesTPF10FPT (PFER), was published in by , .