Management of solar electricity systems in distributed energy generation network : proceedings of the workshop organised by TAIEX and JRC, 26-27 May 2005 Ispra, Italy.
Date: 2014-09-08
Institutions: Institute for Environment and Sustainability
Subjects: conference proceedings, electrical energy, energy efficiency, energy production, energy research, energy technology, renewable energy, research report, solar energy

Management of Solar Electricity Systems 
in Distributed Energy Generation Network 

Proceedings of the workshop  
organised by TAIEX and JRC 

26-27 May 2005 
Ispra, Italy 

Edited by: 

Ewan D. Dunlop 
Marcel Šúri 

Institute for Environment and Sustainability 

2006 

EUR 22664 EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
The mission of the Institute for Environment and Sustainability is to provide scientific and technical 
support to EU policies for the protection of the environment and to contribute to the EU strategy on 
sustainable development. 

European Commission 
Directorate-General Joint Research Centre 
Institute for Environment and Sustainability 
Renewable Energies Unit 

Contact information 
address: via Fermi 1, TP 450, I-21020 Ispra (VA) Italy 
e-mail: ewan.dunlop@ec.europa.eu 
tel.: +39 0332 789090 
fax: +39 0332 789992 

http://ies.jrc.ec.europa.eu/ 
http://re.jrc.ec.europa.eu/solarec/ 

Legal Notice 
Neither the European Commission nor any person acting on behalf of the 
Commission is responsible for the use which might be made of this 
publication. 

A great deal of additional information on the European Union is available on the Internet. 
It can be accessed through the Europa server http://europa.eu/ 

EUR 22664 EN 
ISBN 978-92-79-04898-2 
ISSN 1018-5593 
Luxembourg: Office for Official Publications of the European Communities 

© European Communities, 2006 

Reproduction is authorised provided the source is acknowledged 

Printed in Italy 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Management of solar electricity systems in distributed energy 
generation network 

Proceedings  from  the  workshop  organised  by  the  European  Commission,  Directorate-
General  Joint  Research  Centre,  Institute  for  Environment  and  Sustainability  and 
Directorate-General  Enlargement,  Technical  Assistance  and  Information  Exchange 
Instrument (TAIEX) 

Date 

26 – 27 May 2005 

Venue 

European Commission 
Directoriate-General Joint Research Centre 
Institute for Environment and Sustainability 
Ispra VA, Italy 

1

 
 
 
 
 
 
 
 
Table of contents 

Introduction 

Programme of the workshop 

Presentations 

Solar electricity generation – emerging issues 
H. Ossenbrink, European Commission, DG JRC, Italy 

Overview of options for solar electricity generation in relation  
to the needs of research and industry 
D. Mayer, Ecole des Mines de Paris/EUREC Agency, France 

Geographical and time variability of solar electricity generation in Europe  
M Šúri, T. Huld, E. Dunlop, European Commission, DG JRC, Italy 

Energy lifetime of photovoltaic modules  
E. Dunlop, European Commission, DG JRC, Italy 

Life cycle analysis of PV electricity generation in Latvia  
D. Blumberga, S. Njakou Duomo, Riga Technical University, Latvia 

The role of energy service companies  
S. Rezessy, Central European University, Hungary, 
P. Bertoldi, European Commission, DG JRC, Italy 

Business opportunities in the solar electricity market  
R. Pfatischer, MeteoControl, Germany 

Status of PV in the EU new member states and candidate countries  
S. M. Pietruszko, Warsaw University/PV-NAS-NET, Poland 

Solar generation – the Greenpeace/EPIA vision of 2020  
J. Stierstorfer, Phönix SonnenStrom/EPIA, Germany 

Overview of the EU policies and instruments for renewable energies 
P. Menna, European Commission, DG TREN, Belgium 

Conclusions 

List of participants 

3 

4 

5 

13 

27 

43 

55 

64 

78 

94 

111 

123 

135 

138 

page 2

 
 
 
Introduction 

Solar  photovoltaic  (PV)  systems,  converting  sunlight  into  electricity,  are  one  of  key 
technologies in reaching objectives of safe, secure and sustainable energy supply. The 
level  of  penetration  of  the  solar  electricity  systems  in  the  near  future  (3  GW  of  solar 
electricity  installed  in  Europe  by  2010,  4.8  GW  in  Japan)  needs  to  be  supported  by 
improved management of distributed electricity generation. The successful integration of 
PV  into  existing  energy  and  economic  structures  needs  development  of  sophisticated 
decision  and  management  support  systems.  These  have  to  be  based  on  high  quality 
geographic, climatic and socio-economic databases at various geographical scales. 

The performance of PV systems is determined mainly by the solar energy resource with 
inherent  geographical  and  temporal  variability.  For  planning  and  siting  of  PV  systems, 
reliable  climatic  statistics  are  required.  Operational  flow  of  hourly  and  daily  data  is 
required  for  large-scale  monitoring  of  performance  of  PV  systems,  and  for  forecasts  in 
the  future  energy  market.  For  decision  support  and  system  management,  the  solar 
resource  data  should  be  complemented  by  information  reflecting  current  technologic 
options and socioeconomic conditions in the regions of Europe. 

Solar electricity management systems are crucial to guaranteeing the competitiveness of 
solar electricity and to avoid future “brown outs” in the energy supply chain. It is of clear 
importance  to  increase  awareness  and  clarify  the  impact  of  the  introduction  of  solar 
electricity into our daily lives. 

The  aim  of  the  workshop  was  to  provide  a  forum  for  communication  of  the  ideas  and 
initiatives  related  to  exploitation  of  solar  energy  resource  and  effective  management  of 
various  solar  energy  applications.  The  goal  was  to  promote  an  interrelation  of 
researchers, decision makers and industry associations responsible for developing and 
implementing  energy  strategies  in  European  Union  with  focus  to  new  Member  States 
and Candidate Countries. 

page 3

 
 
Programme of the workshop 

26 May 2005 

Introduction 
Institute for Environment and Sustainability: Focusing on EU Environmental 
Policies  
M. Grasserbauer, European Commission, DG JRC, Italy 
Solar electricity generation – emerging markets  
H. Ossenbrink, European Commission, DG JRC, Italy 

Technical and geographical aspects of solar electricity generation  
in Europe 
Overview of options for solar electricity generation in relation to the needs  
of research and industry  
D. Mayer, Ecole des Mines de Paris, France 
Geographical challenges of solar electricity generation in Europe  
M Šúri, T. Huld, E. Dunlop, European Commission, DG JRC, Italy 
Energy lifetime of PV systems and implications to solar electricity generation  
E. Dunlop, European Commission, DG JRC, Italy 
Life Cycle Analysis of PV electricity generation in Latvia 
D. Blumberga, S. N. Duomo, Riga Technical University, Latvia 

Providing energy service 
Role of energy service companies 
S. Rezessy, Central European University, Hungary 
Business opportunities in solar electricity market 
R. Pfatischer, MeteoControl, Germany 

27 May 2005 

Implementation of solar electricity strategies 
The situation in the EU New Member States and Candidate Countries 
S. M. Pietruszko, PV-NAS-NET, Warsaw University, Poland 
The Greenpeace/EPIA vision of 2020 
J. Stierstorfer, Phönix SonnenStrom, Germany 
Overview of the EU policies; success stories  
P. Menna, European Commission, DG TREN, Belgium 
Barriers to be overcome Discussion/conclusions from the workshop 

page 4

 
 
 
Solar Electricity Generation - Emerging Issues

H.Ossenbrink

HoU, Renewable Energies

1

(cid:53) Renewable Energies

Underlying Approach: Create new Economies

How much Renewables Energy COSTS

• Not: 
• Not only:  How much money Europe can SAVE
• But : 

How much INCREASE in Economy

– Capital Markets & Financial Services
– positive GDP effects
– Energy Service Companies
– Input to ETAP
– Small & Medium Enterprises

Release Energy-Innovation

(cid:53) Renewable Energies

2

1

Solar electricity generation – emerging issuesH. Ossenbrink, European Commission, DG JRC, ItalyPage 5World Clean Energy Investments

0

200

400

600

800

1000

4
0
-
1
0
0
2
h
t
w
o
r
G

120%

100%

80%

60%

40%

20%

0%

-20%

-40%

-60%

3

Solar PV

Marine Energy & 
Geothermal

Fuel Cells & 
Hydrogen

Wind

Electricity Storage

Biomass, -fuels, -waste

Efficiency 
Breakthrough

Investments 2001-04 [Mio EUR]

(cid:53) Renewable Energies

World Clean Energy Investments          [New Energy Finance 2005]

Value 2001-04 [Mio.EUR]

Growth 2001-04

Efficiency 
Breakthrough
Wind

Fuel Cells & Hydrogen

Electricity Storage

Solar PV

Biomass, -fuels, waste

Marine

580

413

424

242

240

105

30

-21%

13%

39%

14%

112%

-39%

28%

4

(cid:53) Renewable Energies

2

Solar electricity generation – emerging issuesH. Ossenbrink, European Commission, DG JRC, ItalyPage 6 
Provide 
• updated, 
• continuous, 
• quality checked and 
• practical information on:

►Technical Status
►Implementation Progress
►Policy Measures

5

(cid:53) Renewable Energies

Operations

Core Group: Stakeholders from 25 Memberstates
• Network of reference to ensure timely availability, quality 

and thorough interpretation, 

Deliver:
• Regular Progress Reports
• Technology Assessments (Renewables, Efficiency)
• Resource Assessment (Solar, Biomass)
•
Implementation scenarios (towards 2020)
• Economical and Finance Scenarios

(cid:53) Renewable Energies

6

3

Solar electricity generation – emerging issuesH. Ossenbrink, European Commission, DG JRC, ItalyPage 7World-Wide Non-Combustion Electricity Generation [TWh]

IAEA Forecast

EU25

Nuclear
EUR

Wind Target
EUR

ITER

Photovoltaic 
Target EUR

10000

1000

100

10

1

0.1

1960

1965

1970

1975

1980

1985

1990

1995

2000

2005

2010

2015

2020

2025

2030

2035

2040

2045

2050

7

(cid:53) Renewable Energies

Regional PV-Generation Cost 2004

45
40

35

30

25

20

15

cent/kWh

1 MW System Cost: 4 €/kWp, Interest: 2% above Inflation, optimum tilt angle

(cid:53) Renewable Energies

8

4

Solar electricity generation – emerging issuesH. Ossenbrink, European Commission, DG JRC, ItalyPage 8JRC Renewable Energy Strategy

• Policy Support 
• PV: Technology Implementation & Verification 

– Certification, Type Approval and Conformity Assessment
– Energy Lifetime
– GIS on Resource for advanced Concepts
– Recycling, Environmental Impact
– Grid access: Modelling Electricity flows (incl Wind)
– Dissemination / Knowledge transfer
• PV-research: 2015 Technologies

9

(cid:53) Renewable Energies

PV Technology Implementation & Verification

Areas of Excellence:
• Certification, Type Approval and Conformity Assessment
– Calibration: Increasing Relevance (+/- 1% = +/- 40 Mio EUR)
– Type Approval / Conformity: major confidence driver, 

leadership in testing

• Global Standards (IEC)  - European Conformity 

(CENELEC)
– required for global business development, fair access to the 

electricity grid

– Chairmanship allows JRC strong role

(cid:53) Renewable Energies

10

5

Solar electricity generation – emerging issuesH. Ossenbrink, European Commission, DG JRC, ItalyPage 9PV Measurement & Test Challenge:

? 2015 ?

2005

1995

11

(cid:53) Renewable Energies

PV Technology Implementation & Verification (2)

Areas of Excellence:
• Energy Lifetime: develop methods total for Energy 

Delivered 
– 20? 30? 40? yrs, sudden death or slowly degrading?
– The Major factor for Cost-structure, Finance Markets, 

Recycling, Environmental Impact

– our leadership in understanding module-technology

• Resource Geographical Information Systems: 

– new technologies, sites for 2-axis tracking & concentrators, 

solar thermal

12

(cid:53) Renewable Energies

6

Solar electricity generation – emerging issuesH. Ossenbrink, European Commission, DG JRC, ItalyPage 10PV Technology Implementation & Verification (3)

Recycling: 
•
"Friendly" product design, 
• Electronic Waste directive, 
• Ecolabelling
Grid-access: 
• Electricity flow modeling through-out Europe (incl Wind)
link with Security & decentralized Electricity Generation
•

13

(cid:53) Renewable Energies

PV Technology Implementation & Verification (4)

Dissemination / Knowledge Transfer / Innovation
• Series of the European PV Conferences, continue to be 

programme chair, develop new formats

• New Formats for "Global Knowledge in PV", 
•

Innovation: Prototype testing, debug and "squeeze-out

14

(cid:53) Renewable Energies

7

Solar electricity generation – emerging issuesH. Ossenbrink, European Commission, DG JRC, ItalyPage 11PV-research: 2015 Technologies

Huge Potential for Improvement through R&D
• Ultra-High Efficiency (>65%)

• Benchmarking of concepts
• large Networks
• Research in Concentrator Cells

• Ultra-Low Cost through Crossfertilisation

• Research in Organic/Plastic Cells
• Addressing Parallel Technologies:
• Displays, Ink-Jet and Offset Printing

15

(cid:53) Renewable Energies

RES-E for Decentralized Electricity Generation

Needs to analyze:
"Weak" Grids
•
• Add nodes
• Match Loads (Peak, Base)
• Electricity flows in a European Grid Market (Grid-Layout, 
Medium-time Wheather Forecasts, Meteo-modeling)

• Required Back-up Capacities (Bio-electricity?)
• Local Storage needs (Size?, Locations?)

16

(cid:53) Renewable Energies

8

Solar electricity generation – emerging issuesH. Ossenbrink, European Commission, DG JRC, ItalyPage 12Overview of options 
for solar electricity generation 

Didier MAYER
EUREC Agency 
EUropean Renewable Energy research Centers

Ispra – 26-27 May 2005

Introduction

There  are  two  different  ways  of  producing  electricity 
from solar :

(cid:131) Direct conversion known as photovoltaic (PV) 

conversion using semi-conductor devices

(cid:131) Thermal conversion through solar concentration 

devices followed by conventional electricity 
generation systems

1

Overview of options for solar electricity generation in relation to the needs of research and industryD. Mayer, Ecole des Mines de Paris/EUREC Agency, FrancePage 13Applications

These two conversion technologies do not cover
These two conversion technologies do not cover
the same field in terms of 
the same field in terms of 
power range and applications
power range and applications

(cid:190)(cid:190) Photovoltaics 

Photovoltaics : : decentralised 
(cid:190)(cid:190) BIPVBIPV
(cid:190)(cid:190) Micro and mini grids 
Micro and mini grids 

power generation
decentralised power generation

(cid:190)(cid:190) Solar thermal power : Central 

Solar thermal power : Central generation 

systems
generation systems

possible future possible contribution ofof

Even if if a a possible future possible contribution
Even 
tower and modular 
systems, mini tower 
dishdish//engine 
for decentalised generation plants
systems for decentalised generation plants
systems 

engine systems, mini 

trough
and modular trough

Photovoltaics

2

Overview of options for solar electricity generation in relation to the needs of research and industryD. Mayer, Ecole des Mines de Paris/EUREC Agency, FrancePage 14Competitiveness will come soon in grid connected systems

1 000 PV roofs in Germany

3

Overview of options for solar electricity generation in relation to the needs of research and industryD. Mayer, Ecole des Mines de Paris/EUREC Agency, FrancePage 151

Germany – PV performance of 28 + 50 residential 
systems in Saxony and Lower Saxony

0.9

o
i
t
a
r

e
c
n
a
m
r
o
f
r
e
P

0.8

0.7

0.6

0.5

0.4

0.3

0.2

0.1

0
1992

Installation period 1991 - 1994 (78)

Annual mean value 1991-1994

1993

1994

1995

1996

1997

1998

1999

2000

2001

Operational year

New PV installations in gerrmany

4

Overview of options for solar electricity generation in relation to the needs of research and industryD. Mayer, Ecole des Mines de Paris/EUREC Agency, FrancePage 16 
 
Allemagne – performance des systèmes

o
i
t
a
r
e
c
n
a
m
r
o
f
r
e
P

1

0.9

0.8

0.7

0.6

0.5

0.4

0.3

0.2

0.1

0

Installation period 1991 - 1994 (78)
Installation period since 1997 (58)
Annual mean value 1991-1994
Annual mean value since 1997

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

Operational year

Systems performance in Germany

Installations before 1995 (78)

Installations since 1995 (58)

s
t
e
s
a
t
a
d

l

a
u
n
n
a
f
o
n
o
i
t
c
a
r
F

35%

30%

25%

20%

15%

10%

5%

0%

< 0.4

0.4 -
0.45

0.45 -
0.5

0.5 -
0.55

0.55 -
0.6

0.6 -
0.65

0.65 -
0.7

0.7 -
0.75

0.75 -
0.8

0.8 -
0.85

> 0.85

Performance ratio class

Before 1995: avr PR = 0.64;   since 1995: avr. PR = 0.74

5

Overview of options for solar electricity generation in relation to the needs of research and industryD. Mayer, Ecole des Mines de Paris/EUREC Agency, FrancePage 17 
 
 
 
 
Results analysis

Lower performance than expected due to :

0 inverter failures and delay in repairing
0 High cell temperature in BIPV 
0 partial shading of PV systems
0 unfavorable orientation of PV modules
0 MMPT mismatch problem, namely in presence of 

sub-fields with different orientations

Performance  prediction
Important information to investors,  utilities, …

Assessment of PV systems output

Using GIS data
PV output can be calculated

Monitoring and fault diagnosis
of PV systems

6

Overview of options for solar electricity generation in relation to the needs of research and industryD. Mayer, Ecole des Mines de Paris/EUREC Agency, FrancePage 18Grid connection issues
Example: Dwellings Schlierberg - Freiburg (250 kWc)

Distributed generation
Mini or micro grids

D M S
D M S
D M S
D M S

M V
M V

L V
L V

M G C C
M G C C
M G C C
M G C C

P V
P V

D C
D C
D C

A C
A C
A C

M C
M C

L C
L C

L C
L C

M C
M C

A C
A C

D C
D C

L C
L C

M C
M C

~~ C H P
~ C H P

S t o r a g e
S t o r a g e

M C
M C

A C
A C

D C
D C

F u e l   C e ll
F u e l   C e ll

M C
M C

A C
A C

D C
D C

L C
L C

~
~

M i c r o   T u r b i n e
M i c r o   T u r b i n e

Define control strategies that will help in the operation and management of micro-grids 

to assure that the system is able to meet the operational constraints (regarding voltage and frequency) 

and is delivering power in the most economic way.

7

Overview of options for solar electricity generation in relation to the needs of research and industryD. Mayer, Ecole des Mines de Paris/EUREC Agency, FrancePage 19Research priorities

• BIPV : products design, concepts for multifunctionality, 

simplified installation procedures
Inverters : extension of lifetime, cost reduction

•
• Grid connection issues : intermittency, control and stability
• Storage concepts :

– Short term regarding grid connected systems
– Long term reliability for stand alone systems

• Energy management systems for hybrid systems

Solar thermal power

Concentrating solar technologies only use 
the direct  solar radiation. The regions indicated below show 
the requested level of solar resource

8

Overview of options for solar electricity generation in relation to the needs of research and industryD. Mayer, Ecole des Mines de Paris/EUREC Agency, FrancePage 20Parabolic trough

Fully mature technology 
ready for deployment

In operation at 9 californian plants
SEGS (Solar Electric Generating System)
15 years of operation
Maximum power output : 354 MW
Hybrid : 75% solar, 25% natural gas

Limitation :
-the steam temperature is 375 °C
-Daily solar to electricity efficiency : 20%
-Annual efficiency about 15%

Future european project ANDASOL 
(50MW)

SEGS solar /rankine installation

9

Overview of options for solar electricity generation in relation to the needs of research and industryD. Mayer, Ecole des Mines de Paris/EUREC Agency, FrancePage 21Scheme of a  ISCCS installation
(Integrated Solar Combined Cycle System)

E1

G

G

S
O
L

E2

G
A
s

Solar tower systems

High solar concentration factor , thus 
high operation temperature > 1 000 °C

Proof-of-concept stage of development
completed. Close to commercialisation

3 promising technologies :
-molten salt 
-Open or closed loop volumetric air
-Direct steam generation (PS10)

Daily solar to electricity efficiency : 23%
Annual efficiency about 20%

No commercial plant has verified the cost 
Objectives. Need for validation

10

Overview of options for solar electricity generation in relation to the needs of research and industryD. Mayer, Ecole des Mines de Paris/EUREC Agency, FrancePage 22Scheme of a solar tower 
production system

Dish / engine systems

• Modular systems from 5 to 50 kW 

adapted to decentralised applications.

• P ~ 25 kW – D ~ 10 m
• Dish/Stirling the most advanced
• Operation temperature 750°C 
Annual efficiency about 23%
Initial costs twice higher than the 
other CSP technologies

•

• MTBF intervals achieved today are 
still considerably below reliability 
figures acceptable for remote 
applications

11

Overview of options for solar electricity generation in relation to the needs of research and industryD. Mayer, Ecole des Mines de Paris/EUREC Agency, FrancePage 23Research priorities

• Innovative concepts for high performance light 

weight solar concentrators
– Use of improved reflector materials , larger concentration sizes, 

simplified line focusing approaches.

– Autonomous control schemes, cheaper mechanical drives, reduced 

number of tracking units/unit surface

• Innovative low cost thermal energy storage concepts

– Storage concept for direct steam generation
– New charging and discharging strategies

• Solar receiver/absorbers

12

Overview of options for solar electricity generation in relation to the needs of research and industryD. Mayer, Ecole des Mines de Paris/EUREC Agency, FrancePage 24Research priorities

There are several  options for the future :

- ISCCS but with small solar shares
- Solar-only concepts that includes a thermal storage
- Development of CO2-free hybrid operation strategies using 

biomass

- Developement of Stirling engines and their hybridisation
- Direct steam generation above 500°C
- Adaptation of desalination systems to solar thermal waste 

heat

Conclusion

• PV presents an  enormous potential given its 
possibilities for flexible off-grid and on-grid 
connections
– inverters, EMS, grid connection issues
– Solar resource evaluation, performance prediction

• Solar thermal electricity sector is still in a state of 

relative immaturity, but the technical and economical 
potential is expected to be very high
The trend is to follow the wind energy development 
with 20 years delay.

13

Overview of options for solar electricity generation in relation to the needs of research and industryD. Mayer, Ecole des Mines de Paris/EUREC Agency, FrancePage 25The market

14

Overview of options for solar electricity generation in relation to the needs of research and industryD. Mayer, Ecole des Mines de Paris/EUREC Agency, FrancePage 26Geographical and time variability of the solar electricity 
generation in Europe

Marcel Šúri, Thomas Huld, Ewan Dunlop

Institute for Environment and Sustainability, Renewable Energies, Ispra, Italy

http://re.jrc.cec.eu.int/pvgis/pv/

Workshop ‘Management of solar electricity systems in distributed energy generation network’, Ispra, 26-27.5.2005

1

(cid:53) Renewable Energies

Challenges in photovoltaics

• Complex geographical and time variability of the solar energy 

resource within Europe
Integration of solar energy technologies into the existing structures

Better knowledge of the solar resource needed to:

Improve understanding of the performance of PV systems
in future energy structures
Assistance to formulation of support schemes

•

•

•

Geographical analysis of primary solar resource and the technical 
and socio-economic PV potential in Europe

Workshop ‘Management of solar electricity systems in distributed energy generation network’, Ispra, 26-27.5.2005

2

(cid:53) Renewable Energies

1

Geographical and time variability of solar electricity generation in EuropeM Šúri, T. Huld, E. Dunlop, European Commission, DG JRC, ItalyPage 27What is the PV-GIS?

Geographical information systems to support development of photovoltaics

European solar radiation database
long-term averages (1981-1990) 
•
from meteo stations
•
spatial resolution 1x1 km
•

Analysis of the primary resource
geographical variability
•
time dynamics
•

Assessment of the PV potential
•
•
•

performance of a typical system
scenarios
cost of solar electricity

Web applications
online access to the data, maps & tools

Workshop ‘Management of solar electricity systems in distributed energy generation network’, Ispra, 26-27.5.2005

3

(cid:53) Renewable Energies

European solar database: calculation scheme

solar rad. model
r.sun

Elevation & shadowing
(SRTM 1x1 km)

Clear-sky irradiation

Linke turbidity
(Remund et al. 2003)

interpolation
s.vol.rst

Meteo data

Cloudiness

Share of diffuse
irradiation

Real-sky irradiation
horizontal & inclined

Workshop ‘Management of solar electricity systems in distributed energy generation network’, Ispra, 26-27.5.2005

4

(cid:53) Renewable Energies

2

Geographical and time variability of solar electricity generation in EuropeM Šúri, T. Huld, E. Dunlop, European Commission, DG JRC, ItalyPage 28European solar database: irradiance/irradiation

Irradiation
for vertical plane

Irradiation for optimally
inclined plane

Horizontal irradiation

Workshop ‘Management of solar electricity systems in distributed energy generation network’, Ispra, 26-27.5.2005

5

(cid:53) Renewable Energies

Optimum module inclination

Annual & monthly averages

European solar database: optimum angle

41º

35 º

32 º

lat -19

lat - 13

lat - 4

Optimum module inclination to maximize 
annual irradiation input [deg]

Optimum angle = Latitude - X

Workshop ‘Management of solar electricity systems in distributed energy generation network’, Ispra, 26-27.5.2005

6

(cid:53) Renewable Energies

3

Geographical and time variability of solar electricity generation in EuropeM Šúri, T. Huld, E. Dunlop, European Commission, DG JRC, ItalyPage 29European solar database: global annual irradiation

880

1000

1260

1700

kWh/m2

Europe

Central 
Europe

All land

1096

1059

Built-up 
areas only

1130

1048

Annual horizontal irradiation in European subcontinent ~1100 kWh/m2

Workshop ‘Management of solar electricity systems in distributed energy generation network’, Ispra, 26-27.5.2005

7

(cid:53) Renewable Energies

European solar database: global annual irradiation

880

1000

1260

1700

Annual horizontal irradiation in European subcontinent ~1100 kWh/m2

Workshop ‘Management of solar electricity systems in distributed energy generation network’, Ispra, 26-27.5.2005

8

(cid:53) Renewable Energies

4

Geographical and time variability of solar electricity generation in EuropeM Šúri, T. Huld, E. Dunlop, European Commission, DG JRC, ItalyPage 30European solar database: seasonal variability

horizontal plane

 Alicante (stdev=38.4%)
 Bratislava (stdev=57.1%)

 Stockholm (stdev=75.8%)

]

%

[
e
g
a
r
e
v
a

y
l
r
a
e
y
m
o
r
f
n
o
i
t
a
v
e
D

i

120
100
80
60
40
20
0
-20
-40
-60
-80
-100

]

%

[
e
g
a
r
e
v
a
y
l
r
a
e
y
m
o
r
f
n
o
i
t
a
v
e
D

i

120
100
80
60
40
20
0
-20
-40
-60
-80
-100

1

2

3

4

5

6

7

8

9 10 11 12

vertical plane

 Alicante (stdev=17.8%)

 Bratislava (stdev=28.5%)

 Stockholm (stdev=45.6%)

1

2

3

4

5

6

7

8

9 10 11 12

relative STDEV (avgM, avgY)  [%]

Irradiation: typical seasonal profiles

44 to 72 % of the yearly electricity is produced in 4 summer months: May - August

Workshop ‘Management of solar electricity systems in distributed energy generation network’, Ispra, 26-27.5.2005

9

(cid:53) Renewable Energies

European solar database: terrain shadowing

f

% of daily horizontal clear-sky irradiation 
by terrain shadowing (annual average)

Daily sum of horizontal irradiation
without/with shadowing

Workshop ‘Management of solar electricity systems in distributed energy generation network’, Ispra, 26-27.5.2005

10

(cid:53) Renewable Energies

5

Geographical and time variability of solar electricity generation in EuropeM Šúri, T. Huld, E. Dunlop, European Commission, DG JRC, ItalyPage 31 
 
 
 
 
 
 
 
Spatial resolution of DEM

10 km       

1 km         

100 m

Workshop ‘Management of solar electricity systems in distributed energy generation network’, Ispra, 26-27.5.2005

11

(cid:53) Renewable Energies

Estimation of the PV potential in regions

Data used

• Annual global radiation

• Administrative regions

• Built-up areas: (CORINE) land cover

Workshop ‘Management of solar electricity systems in distributed energy generation network’, Ispra, 26-27.5.2005

12

(cid:53) Renewable Energies

6

Geographical and time variability of solar electricity generation in EuropeM Šúri, T. Huld, E. Dunlop, European Commission, DG JRC, ItalyPage 32Electricity generation from a 1 kWp system [kWh/year]

90% maximum

90% occurrence built-up area

Country’s average

2.6x more in Sicily

•
•
•

regional averages for built-up areas
optimally inclined modules
pr=0.75

Workshop ‘Management of solar electricity systems in distributed energy generation network’, Ispra, 26-27.5.2005

13

(cid:53) Renewable Energies

Electricity generation from a 1 kWp system [kWh/year]

Absolute maximum

90% occurrence built-up area

Country average

Difference within a country 
up to 450 kWh/year for a 1 kWp

•
•
•

regional averages for built-up areas
optimally inclined modules
pr=0.75

Workshop ‘Management of solar electricity systems in distributed energy generation network’, Ispra, 26-27.5.2005

14

(cid:53) Renewable Energies

7

Geographical and time variability of solar electricity generation in EuropeM Šúri, T. Huld, E. Dunlop, European Commission, DG JRC, ItalyPage 33Changing inclination of PV modules…

Horizontal  position

Kiruna 630 kWh/y
Aachen 760 kWh/y
Patras 1150 kWh/y

Yearly electricity from 1 kWp

Optimum inclination

+ 29 %

+ 12 %

+ 8 %

Vertical inclination

+ 3 %

- 23 %

- 34 %

Workshop ‘Management of solar electricity systems in distributed energy generation network’, Ispra, 26-27.5.2005

15

(cid:53) Renewable Energies

Theoretical PV potential

Assumption: PV modules inclined 
at an optimum angle

Covering 0.58 % of the EU25+4 territory by PV modules satisfies its full electricity consumption

Workshop ‘Management of solar electricity systems in distributed energy generation network’, Ispra, 26-27.5.2005

16

(cid:53) Renewable Energies

Surface of the PV modules needed to cover 
national electricity consumption

8

Geographical and time variability of solar electricity generation in EuropeM Šúri, T. Huld, E. Dunlop, European Commission, DG JRC, ItalyPage 34Theoretical PV potential

Assumption: PV modules inclined 
at an optimum angle

CORINE Land Cover:
land fill and mineral extraction sites

% of the country’s surface to be covered  by PV modules
to satisfy the full national electricity consumption

Covering 0.58 % of the EU25+4 territory by PV modules satisfies its full electricity consumption

Workshop ‘Management of solar electricity systems in distributed energy generation network’, Ispra, 26-27.5.2005

17

(cid:53) Renewable Energies

Technically-feasible PV potential

surface of the ø 85 cm satellite TV  antenna

Surface of the PV modules [m2/capita] needed  to satisfy 
1 % of the national electricity consumption

Assumption: PV modules inclined 
at an optimum angle

PV capacity in Germany (2003): 400 MW
i.e. 0.06 % of the national energy generation

Workshop ‘Management of solar electricity systems in distributed energy generation network’, Ispra, 26-27.5.2005

18

(cid:53) Renewable Energies

9

Geographical and time variability of solar electricity generation in EuropeM Šúri, T. Huld, E. Dunlop, European Commission, DG JRC, ItalyPage 35Technically-feasible PV potential

Yearly world production 
of PV cells/modules 
(PV News 2004)

PV installed capacity needed to satisfy 1 % of country’s electricity consumption [MWp]
PV capacity in Germany (2003): 400 MW

PV modules inclined at an optimum angle

Workshop ‘Management of solar electricity systems in distributed energy generation network’, Ispra, 26-27.5.2005

19

(cid:53) Renewable Energies

Costs of PV electricity generation

20 years

< 0.55 euro/kWh

< 0.35 euro/kWh

Assumptions
6 euro/Wp
4 % p.a. interest rate
1 % annual maintenance costs
1.5 % annual inflation

(optimum irradiation, built-up areas)

15 years

+ 6-12 eurocents

10 years

+ 20-37 
eurocents

Workshop ‘Management of solar electricity systems in distributed energy generation network’, Ispra, 26-27.5.2005

20

(cid:53) Renewable Energies

10

Geographical and time variability of solar electricity generation in EuropeM Šúri, T. Huld, E. Dunlop, European Commission, DG JRC, ItalyPage 36Costs of PV electricity generation

6 euro/Wp
4 % p.a. interest rate
1 % annual maintenance costs
1.5 % annual inflation
20 years
optimum-angle mounting

Large power system (>1MWp)
4 euro/Wp
3 % p.a. interest rate

Small domestic system (<5kWp)
6 euro/Wp
4 % p.a. interest rate

1 % annual maintenance costs
2 % annual inflation
20 years
modules at mounted at optimum angle

Workshop ‘Management of solar electricity systems in distributed energy generation network’, Ispra, 26-27.5.2005

21

(cid:53) Renewable Energies

Costs of PV electricity generation

Large power system (>1MWp)
4 euro/Wp
3 % p.a. interest rate

1 % annual maintenance costs
2 % annual inflation
20 years
modules at mounted at optimum angle

Small domestic system (<5kWp)
6 euro/Wp
4 % p.a. interest rate

Workshop ‘Management of solar electricity systems in distributed energy generation network’, Ispra, 26-27.5.2005

22

(cid:53) Renewable Energies

11

Geographical and time variability of solar electricity generation in EuropeM Šúri, T. Huld, E. Dunlop, European Commission, DG JRC, ItalyPage 37European Temperatures Database: data & methods

•

•
•
•

•

Input from JRC MARS database
(daily temperatures at hour 6, 9, 12, 15, 18 GMT + min and max)
Time series 1995-2003 (in some regions restricted time frame)
Integration within the GRASS GIS software
Spatial interpolation (3D regularized spline with tension)
1x1 km grid
Polynomial fitting of daytime temperatures 
(2nd or 3rd order)

• Diurnal temperature model (ESRA), based 

on min/max temperatures

Workshop ‘Management of solar electricity systems in distributed energy generation network’, Ispra, 26-27.5.2005

23

(cid:53) Renewable Energies

844 stations for May

European Temperatures Database: 
estimation errors from interpolation and curve fitting

Interpolation & cross-validation errors
monthly averages < 0.75 (1.25 º)

Interpolation errors with/without curve fit

Workshop ‘Management of solar electricity systems in distributed energy generation network’, Ispra, 26-27.5.2005

24

(cid:53) Renewable Energies

12

Geographical and time variability of solar electricity generation in EuropeM Šúri, T. Huld, E. Dunlop, European Commission, DG JRC, ItalyPage 38Average diurnal and daytime temperatures

Average daytime temperature in May 
(from sunrise to sunset)

Average diurnal temperature in May 
(24-hour cycle) 

Workshop ‘Management of solar electricity systems in distributed energy generation network’, Ispra, 26-27.5.2005

25

(cid:53) Renewable Energies

Average maximum temperature (June)

Time of maximum daytime temperature [hours]

Maximum daytime temperature [ºC]

Workshop ‘Management of solar electricity systems in distributed energy generation network’, Ispra, 26-27.5.2005

26

(cid:53) Renewable Energies

13

Geographical and time variability of solar electricity generation in EuropeM Šúri, T. Huld, E. Dunlop, European Commission, DG JRC, ItalyPage 39Average diurnal temperature variation

January

July

Workshop ‘Management of solar electricity systems in distributed energy generation network’, Ispra, 26-27.5.2005

27

(cid:53) Renewable Energies

Energy applications of the temperature database

Efficiency of photovoltaic modules [%] 
(depends on temperature and irradiance)

Heating degree days per year [index]
(effect of ambient temperature on the amount 
of energy needed for space heating or cooling)

Workshop ‘Management of solar electricity systems in distributed energy generation network’, Ispra, 26-27.5.2005

28

(cid:53) Renewable Energies

14

Geographical and time variability of solar electricity generation in EuropeM Šúri, T. Huld, E. Dunlop, European Commission, DG JRC, ItalyPage 40Online access to the database and tools

http://re.jrc.cec.eu.int/pvgis/pv/imaps/imaps.htm

Workshop ‘Management of solar electricity systems in distributed energy generation network’, Ispra, 26-27.5.2005

29

(cid:53) Renewable Energies

PV-GIS

Current limitations

Improvements

• Based on weather stations 
• Short period of time (1981-1990)
•
•

Insufficient statistics
Insufficient (heterogeneous) accuracy:

• cloudiness
• atmospheric turbidity

Integration of Earth observation data

• Using the Meteosat data
• Completion of archives
• Hierarchical spatial and temporal resolution 
• Validation, knowledge of the error scale
• More physically-based algorithms 
•

Improved accuracy:

• clouds, water vapour
• aerosols, ozone

Workshop ‘Management of solar electricity systems in distributed energy generation network’, Ispra, 26-27.5.2005

30

(cid:53) Renewable Energies

15

Geographical and time variability of solar electricity generation in EuropeM Šúri, T. Huld, E. Dunlop, European Commission, DG JRC, ItalyPage 41PV-GIS development
in collaboration with EMP Sophia Antipolis

• HelioClim-1 (2, 3) data
• Meteosat 0º disc
• 1985-2004 time series
• statistical parameters (seasonal and daily variability)
• enhancement of spatial resolution (terrain)

• Support of European PV programs in Africa, Asia 

• Data on the web

June – August 2003

Workshop ‘Management of solar electricity systems in distributed energy generation network’, Ispra, 26-27.5.2005

31

(cid:53) Renewable Energies

% difference from long-term average

August 2003

Conclusions

• We have constructed a solar radiation database for Europe

• The database has been used to estimate PV electricity generation

and costs for different scenarios

• Special focus to built-up residential areas

• Regional differences can be considerable (national incentive schemes)

• Data available on the web

•

Integration of Meteosat-derived radiation (HelioClim-1) in progress

• role of GIS & web tools 

Workshop ‘Management of solar electricity systems in distributed energy generation network’, Ispra, 26-27.5.2005

32

(cid:53) Renewable Energies

16

Geographical and time variability of solar electricity generation in EuropeM Šúri, T. Huld, E. Dunlop, European Commission, DG JRC, ItalyPage 42Energy Life of PV Modules

Solar Resource Management Workshop,
Ispra, Italy, May 26 , 2005

Ewan E. Dunlop, European Commission
Joint Research Centre, Ispra

26 May 2005  © DG CCR H08 PVGISTaiex.ppt

1

(cid:53) Renewable Energies

Overview

• Why Lifetime tests?
• What happens to the modules during the tests?
•

.... and how do they look like after 22 years of Outdoor 
exposure?

• Are modules good enough or even too good?
• Will we have in 10 years still the same modules?

26 May 2005  © DG CCR H08 PVGISTaiex.ppt

2

(cid:53) Renewable Energies

1

Energy lifetime of photovoltaic modulesE. Dunlop, European Commission, DG JRC, ItalyPage 43Lifetime of  Modules and Electricity Costs

kWh Costs  of PV Systems:
System Price (€/Wp)
Yield (Wh/Wp/Year)
Interest Rate (%/Year)

5
1000
5%

Cost decrease by Lifetime increase:
from 10  to 20 years: 38% less
from 20  to 50 years: 31% less

ctEUR/Wp

100

90

80

70
60

50

40

30
20

10
0

26 May 2005  © DG CCR H08 PVGISTaiex.ppt

3

(cid:53) Renewable Energies

0

5

10 15 20 25 30 35 40 45 50

Years

Geographic Dependence of Electricity Costs 1

Map of cost of PV electricity 
in Europe, assuming : 

system price of €6000/kWp, 

payback time of 20 years, 

interest rate of 4% p.a., 

inflation rate of 2% 

and annual maintenance cost 
of 1% of system cost. 

26 May 2005  © DG CCR H08 PVGISTaiex.ppt

4

(cid:53) Renewable Energies

2

Energy lifetime of photovoltaic modulesE. Dunlop, European Commission, DG JRC, ItalyPage 44Geographic Dependence of Electricity Costs 2

Map of cost of PV electricity 
in Europe, assuming : 

system price of €4000/kWp, 

payback time of 20 years, 

interest rate of 3% p.a., 

inflation rate of 2% 

and annual maintenance cost 
of 1% of system cost. 

26 May 2005  © DG CCR H08 PVGISTaiex.ppt

5

(cid:53) Renewable Energies

Technology options for decreased cost

• Relative  effects 

• of longer life 

Payback time 
(years) 
Case 1 (<5kWp) 
Case 2 (>1MWp) 

10 

15 

25 

30 

170% 
177% 

123% 
125% 

86% 
85% 

77% 
75% 

• or better system

rp 
Case 1  
Case 2  

0.60 
125% 
- 

0.65 
115% 
115% 

0.70 
107% 
107% 

0.80 
94% 
94% 

0.85 
- 
88% 

26 May 2005  © DG CCR H08 PVGISTaiex.ppt

6

(cid:53) Renewable Energies

3

Energy lifetime of photovoltaic modulesE. Dunlop, European Commission, DG JRC, ItalyPage 45 
 
IEC Standard 61215+Pass/Fail Criteria

“Requirements for Design Qualification and Type Approval”

•
• Module will be not qualifies by:
– Visual Defects (e.g. Cell cracks)
– Interconnection failures (e.g. tabs, ground faults)
– Power loss > 5% resp. 8% after all tests
– Isolation failures (e.g. dielectric breakdown, leakage currents)

• Between tests: 

– Visual inspection, power measurements, High-Voltage test

26 May 2005  © DG CCR H08 PVGISTaiex.ppt

7

(cid:53) Renewable Energies

Test-type and Failure Statistics

Other
15%

TCY50
8%

TCY200
27%

UVE
10%

HUF
13%

DAH
27%

26 May 2005  © DG CCR H08 PVGISTaiex.ppt

8

(cid:53) Renewable Energies

4

Energy lifetime of photovoltaic modulesE. Dunlop, European Commission, DG JRC, ItalyPage 46Not-Qualified Modules: Defect-Types 

Insulation
1%

Circuit Faults
16%

Power Loss
62%

Visual 
Defects
21%

26 May 2005  © DG CCR H08 PVGISTaiex.ppt

9

(cid:53) Renewable Energies

Results: Failure Rates after Tests
Irradiation tests (18%)

Photon induced Degradation
Transparency loss of Laminate
Hot-Spot Failures 3%

Climatic tests (77%)

Temperature/Humidity and Temp. Cycles each 27%

Laminates, Junction boxes, cell tabs

Humidity Freeze 13%

Plastic frames and J-boxes

Mechanical Tests (4%)
Twist/Mechanical Load
Frameless modules, novel designs und roof-tiles

26 May 2005  © DG CCR H08 PVGISTaiex.ppt

1
0

(cid:53) Renewable Energies

5

Energy lifetime of photovoltaic modulesE. Dunlop, European Commission, DG JRC, ItalyPage 4722 Years Outdoor Exposure 

Ispra: moderate subtropical (-10º..+35º, >90% RH)

•
• Module types of first "Pilot phase" 1981..1983

– 40 Modules
– 4 Manufacturers (of 8 European)
– 9 Types
Installed 1982/83 after successful CEC 501 Tests

•
• Tests in 2004:

– Performance at STC
– High Voltage test
– Visual Inspection

26 May 2005  © DG CCR H08 PVGISTaiex.ppt

1
1

(cid:53) Renewable Energies

Significant defects observed:

• More than 20% Power loss: 7%
• Dielectric Breakdown (HV Test): 5%
• Circuit fault: <3% (only half)
"Cosmetic" defects:
• Browning, transparency loss near frames, 

corrosion, delamination

• Less degradation at modules, which have 
been previously exposed to climatic tests

26 May 2005  © DG CCR H08 PVGISTaiex.ppt

1
2

(cid:53) Renewable Energies

6

Energy lifetime of photovoltaic modulesE. Dunlop, European Commission, DG JRC, ItalyPage 48Correlation of Power-loss: UV vs. Outdoor 

-7

-6

-5

-4

-3

-2

-1

0

1

2

1

0

]

%

[
s
s
o
L
r
e
w
o
P

UV Exposure
DAH12

/

t
a
e
H
p
m
a
D
e
r
u
s
o
p
x
E
V
U

-1

-2

-3

-4

-5

-6

-7

Outdoor Exposure Power Loss [%]

26 May 2005  © DG CCR H08 PVGISTaiex.ppt

1
3

(cid:53) Renewable Energies

Example of severe discoloration and delamination. 

26 May 2005  © DG CCR H08 PVGISTaiex.ppt

1
4

(cid:53) Renewable Energies

7

Energy lifetime of photovoltaic modulesE. Dunlop, European Commission, DG JRC, ItalyPage 49 
 
 
 
 
Junction box degradation leading to corrosion of the electrical connectors.

26 May 2005  © DG CCR H08 PVGISTaiex.ppt

1
5

(cid:53) Renewable Energies

Splitting delamination of the back-sheet, moisture ingress appears still to be blocked 
by the encapsulant. 

26 May 2005  © DG CCR H08 PVGISTaiex.ppt

1
6

(cid:53) Renewable Energies

8

Energy lifetime of photovoltaic modulesE. Dunlop, European Commission, DG JRC, ItalyPage 50Performance Loss After 22 Years Outdoor Exposure

10

0

-10

-20

-30

-40

-50

Silicone- Glass

EVA-Polyethylene

EVA-Tedlar

2
0
B
H

1
0
0
H

3
0
0
H

4
0
A
J

1
0
B
H

2
0
A
H

1
0
A
H

5
0
A
H

3
0
A
H

2
0
A
J

2
0
0
J

4
0
A
H

3
0
0
M

1
0
0
M

2
0
C
O

3
0
C
O

1
0
B
O

2
0
B
O

3
0
A
O

2
0
A
O

26 May 2005  © DG CCR H08 PVGISTaiex.ppt

1
7

(cid:53) Renewable Energies

A set of 20 year old PV modules exposed at the JRC site which show no visible 
signs of degradation

26 May 2005  © DG CCR H08 PVGISTaiex.ppt

1
8

(cid:53) Renewable Energies

9

Energy lifetime of photovoltaic modulesE. Dunlop, European Commission, DG JRC, ItalyPage 51CEC501 + 22 Years Outdoor Exposure: Results

• Silicone - Glass: 
• EVA - Polyethylene:
• EVA - Tedlar:

-4%
-12%
-4%

(Module fraction

75%)

• 75% of modules degraded 4.7% in average
• 90% of modules degraded 6.2% in average

26 May 2005  © DG CCR H08 PVGISTaiex.ppt

1
9

(cid:53) Renewable Energies

Energy Lifetime or Mean Time To Failure?

e
c
n
a
m
r
o
f
r
e
P

.
l
e
R

100%

80%

60%

40%

20%

0%

Gaussian
Exponential
Compound
Linear

22.7y

24.6y

30.5y

37.4y

0

5

10

15

20

25

30

35

40

45

50

Years

26 May 2005  © DG CCR H08 PVGISTaiex.ppt

2
0

(cid:53) Renewable Energies

10

Energy lifetime of photovoltaic modulesE. Dunlop, European Commission, DG JRC, ItalyPage 52 
Discussion

"Type Approval Test" confirmed by outdoor tests
• 20 years warranty on 80% power is very realistic

What is the "real" lifetime??

• MTTF (Mean Time to Failure) 30 .. 50 years?

How to translate into array-performance?

•

"Fault Tolerant" Interconnection, Bypass-Diodes

How to test the end of lifetime?

26 May 2005  © DG CCR H08 PVGISTaiex.ppt

2
1

(cid:53) Renewable Energies

The PV-module of tomorrow
• Designed "just good enough for 20 years"

– Advanced encapsulation, "Roll-to-Roll" Processes, no cell 

tabbing

• Standard Module:

– e.g. 1m x 1m, 120W, standard mounting, frameless
– no junction box, standard electrical connectors
– DC output, e.g. 120V 1A, or as well 13.2V 9A 

• On wafer, laminated in module:

– DC/DC converter, Protection diodes
– built-in intelligence: failure diagnosis, protection systems, anti-

theft devices

26 May 2005  © DG CCR H08 PVGISTaiex.ppt

2
2

(cid:53) Renewable Energies

11

Energy lifetime of photovoltaic modulesE. Dunlop, European Commission, DG JRC, ItalyPage 53Summary

• Revealed lifetime and performance after 22 yrs
• Most failure mechanisms understood
• More quantitative analysis for failure spread required
• New designs: more than 50% fail at first Type approval 

tests, but are debugged shortly afterwards

• Outdoor Results confirm the concept of accelerated aging
• >20 years lifetime achieved

• There is a large potential for development

26 May 2005  © DG CCR H08 PVGISTaiex.ppt

2
3

(cid:53) Renewable Energies

12

Energy lifetime of photovoltaic modulesE. Dunlop, European Commission, DG JRC, ItalyPage 54LIFE CYCLE ASSESSMENT OF PV V 
LIFE CYCLE ASSESSMENT OF P
ELECTRYCITY GENERATION IN 
ELECTRYCITY GENERATION IN 
LATVIA 
LATVIA 

Dr.Dagnija Blumberga
Blumberga
Dr.Dagnija
Njakou Djomo
Djomo
Sylvestre Njakou
Sylvestre
University
Technical University
RigaRiga Technical

WORKSHOP JRC, MAY 26. 
WORKSHOP JRC, MAY 26. 
2005
2005

11

Introduction
Introduction
Latvia’s electricity supply is based on a balance 
(cid:132)(cid:132) Latvia’s electricity supply is based on a balance 
mixture of energy resources; in which renewable 
mixture of energy resources; in which renewable 
energy source isis 50 ... 70
energy source 
electricity generation
electricity generation
2002
example, i, inn 2002

% of the total 
50 ... 70 % of the total 

(cid:132)(cid:132) ForFor example

62% of the total electricity is produced from Hydro, 
•• 62% of the total electricity is produced from Hydro, 
0.93 % from biomass,  
•• 0.93 % from biomass,  

0.30% from wind
•• 0.30% from wind
The increasing demand for electricity in Latvia 
(cid:132)(cid:132) The increasing demand for electricity in Latvia 
and its willingness to preserve its hydrocarbon 
and its willingness to preserve its hydrocarbon 
resources clearly address the need to further 
resources clearly address the need to further 
develop the use of renewable energies for 
develop the use of renewable energies for 
electricity production
electricity production

WORKSHOP JRC, ISPRA, MAY 
WORKSHOP JRC, ISPRA, MAY 
26. 2005
26. 2005

22

1

Life cycle analysis of PV electricity generation in LatviaD. Blumberga, S. Njakou Duomo, Riga Technical University, LatviaPage 55Research
Objectives ofof Research
Objectives

Objectives
(cid:132)(cid:132) Objectives
A key question in our research into this renewable 
A key question in our research into this renewable 
source therefore is:
source therefore is:
To evaluate the energy requirements and the  useful energy 
•• To evaluate the energy requirements and the  useful energy 
output of PV system;
output of PV system;
•• To evaluate the  greenhouse gas burden of PV system;
To evaluate the  greenhouse gas burden of PV system;
•• The discussion of data relevance for policy applications
The discussion of data relevance for policy applications
Scope
(cid:132)(cid:132) Scope
Exploring potential options for GHG mitigation in Latvia power 
(cid:132)(cid:132) Exploring potential options for GHG mitigation in Latvia power 
sector, if Latvia has to limit its GHG emission under Kyoto 
sector, if Latvia has to limit its GHG emission under Kyoto 
protocol while ensuring sustainable economic growth
protocol while ensuring sustainable economic growth

WORKSHOP JRC, ISPRA, MAY 
WORKSHOP JRC, ISPRA, MAY 
26. 2005
26. 2005

consumption
Electricity consumption
Electricity

Consumption

Import

Production

Export

250000

J
T

200000
150000

100000
50000

0
1996

WORKSHOP JRC, ISPRA, MAY 
WORKSHOP JRC, ISPRA, MAY 
26. 2005
26. 2005

1997

1998

1999

2000

2001

2002

33

44

2

Life cycle analysis of PV electricity generation in LatviaD. Blumberga, S. Njakou Duomo, Riga Technical University, LatviaPage 56GHG EMISSIONS 
GHG EMISSIONS 

.

q
e

2
O
C

f
o

s
e
n
n
o
t

n

l

m

25

20

15

10

5

0
1990

1992

1994

1996

1998

2000

WORKSHOP JRC, ISPRA, MAY 
WORKSHOP JRC, ISPRA, MAY 
26. 2005
26. 2005

55

Methods Of Analysis
Methods Of Analysis

(cid:132) Net Energy Analysis (NEA)
(cid:132) The NEA is performed by estimating the energy requirements for 

each phase of the life cycle and comparing these “energy inputs” to 

the useful electrical output of the plant

WORKSHOP JRC, ISPRA, MAY 
WORKSHOP JRC, ISPRA, MAY 
26. 2005
26. 2005

66

3

Life cycle analysis of PV electricity generation in LatviaD. Blumberga, S. Njakou Duomo, Riga Technical University, LatviaPage 57 
 
 
 
NetNet Energy

Analysis
Energy Analysis

(NEA)
(NEA)
The Net Energy Analysis compares the useful energy 
(cid:132)(cid:132) The Net Energy Analysis compares the useful energy 
output of a system to the total energy consumed by 
output of a system to the total energy consumed by 
the system over its life cycle. 
the system over its life cycle. 

5
9
9
1
D
S
U

/

U
T
B
n
o

i
l
l
i

M

250

200

150

100

50

0
1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

WORKSHOP JRC, ISPRA, MAY 
WORKSHOP JRC, ISPRA, MAY 
26. 2005
26. 2005

Energy Metrics
(cid:132)(cid:132) Energy Metrics
Life Cycle Energy Efficiency
(cid:132)(cid:132) Life Cycle Energy Efficiency

Energy Payback Ratio
(cid:132)(cid:132) Energy Payback Ratio

Emission Rate
(cid:132)(cid:132) Emission Rate

WORKSHOP JRC, ISPRA, MAY 
WORKSHOP JRC, ISPRA, MAY 
26. 2005
26. 2005

77

88

4

Life cycle analysis of PV electricity generation in LatviaD. Blumberga, S. Njakou Duomo, Riga Technical University, LatviaPage 58 
 
 
Ternary Diagram
(cid:132) Emission rate for any point on the Ternary
diagram (e.g any mixture of technologies) 
can be calculated using the following 
equation
GGER = (fppEEpp + f+ fggEEgg + f+ fhrhrEEhrhr))
GGER = (f
where:
GGER = greenhouse gas emission rate (tonnes of CO2 

equiv/GWhe)

fx = fraction of generation fueled by source x
Ex = Emission rate for source x in (tonnes of 

CO2/GWhe)

x = p: peat/oil, g: natural gas, hr: hydro/renewable

WORKSHOP JRC, ISPRA, MAY 
WORKSHOP JRC, ISPRA, MAY 
26. 2005
26. 2005

99

EXAMPLE
(cid:132) The data point 
representing 
mixture of 
generating 
technologies 
Latvia electricity 
generation in 
2002.

(cid:132)

WORKSHOP JRC, ISPRA, MAY 
WORKSHOP JRC, ISPRA, MAY 
26. 2005
26. 2005

1010

5

Life cycle analysis of PV electricity generation in LatviaD. Blumberga, S. Njakou Duomo, Riga Technical University, LatviaPage 59The constant emission rate lines can be 
The constant emission rate lines can be 
emission 
GHG emission 

modified to show total GHG 
modified to show total 

WORKSHOP JRC, ISPRA, MAY 
WORKSHOP JRC, ISPRA, MAY 
26. 2005
26. 2005

Results ofof NEA NEA ofof PPVV
Results

WORKSHOP JRC, ISPRA, MAY 
WORKSHOP JRC, ISPRA, MAY 
26. 2005
26. 2005

1111

1212

6

Life cycle analysis of PV electricity generation in LatviaD. Blumberga, S. Njakou Duomo, Riga Technical University, LatviaPage 60The low conversion efficiency has a limiting effect on the 
The low conversion efficiency has a limiting effect on the 

EPREPR for the PV system

for the PV system

WORKSHOP JRC, ISPRA, MAY 
WORKSHOP JRC, ISPRA, MAY 
26. 2005
26. 2005

ENERGY Payback
ENERGY 

Payback RatioRatio ((EPREPR))

205

6

PV

23

Wind

Hydropower

o
i
t
a
R
k
c
a
b
y
a
P
y
g
r
e
n
E

250

200

150

100

50

0

WORKSHOP JRC, ISPRA, MAY 
WORKSHOP JRC, ISPRA, MAY 
26. 2005
26. 2005

1313

1414

7

Life cycle analysis of PV electricity generation in LatviaD. Blumberga, S. Njakou Duomo, Riga Technical University, LatviaPage 61 
 
input
PV GPV GHG HG input

PV system has a normalized life cycle emission rate of 36 
tCO2/GWhe.

/

h
W
G
2
O
C
s
e
n
n
o
T

36
34
32
30
28
26
24
22
20
18
16
14
12
10
8
6
4
2
0

32.4

0

Fuel Related

2.52

1.08

Materials &
Construction

Operation &
Maintenance

Decommissioning

WORKSHOP JRC, ISPRA, MAY 
WORKSHOP JRC, ISPRA, MAY 
26. 2005
26. 2005

(cid:132) GHG emission Rate Comparison. The normalized 
greenhouse gas is comapred against alternative 
technologies

h
W
G
/
2
O
C
T

1200

1000

800

600

400

200

0

974

469

Coal

Gas

36

PV

18

12

Hydro

Wind

WORKSHOP JRC, ISPRA, MAY 
WORKSHOP JRC, ISPRA, MAY 
26. 2005
26. 2005

1515

1616

8

Life cycle analysis of PV electricity generation in LatviaD. Blumberga, S. Njakou Duomo, Riga Technical University, LatviaPage 62 
Conclusion
Conclusion

The Energy Payback Ratio (EPR) provides a means 
(cid:132)(cid:132) The Energy Payback Ratio (EPR) provides a means 
of internally evaluating renewable resources  andand isis
of internally evaluating renewable resources 
sources..
other sources
lowlow forfor PV PV inin omparison

omparison withwith other

Cycle Efficiency (LCE) includes the fuel 
(cid:132)(cid:132) LifeLife––Cycle Efficiency (LCE) includes the fuel 
consumed at the plant as well as throughout the 
consumed at the plant as well as throughout the 
life cycle, providing a meaningful metric for 
life cycle, providing a meaningful metric for 
comparing fossil fuel technologies 
comparing fossil fuel technologies 

(cid:132)(cid:132) The life

The life--cycle greenhouse gas emission rate for a 
cycle greenhouse gas emission rate for a 
equivalent per 
photovoltaic is low (36 tonnes CO2--equivalent per 
photovoltaic is low (36 tonnes CO2
GWhe), but not zero
GWhe), but not zero

Thank you
Thank you

WORKSHOP JRC, ISPRA, MAY 
WORKSHOP JRC, ISPRA, MAY 
26. 2005
26. 2005

WORKSHOP JRC, ISPRA, MAY 
WORKSHOP JRC, ISPRA, MAY 
26. 2005
26. 2005

1717

1818

9

Life cycle analysis of PV electricity generation in LatviaD. Blumberga, S. Njakou Duomo, Riga Technical University, LatviaPage 63The role of Energy Service Companies

Ispra, 26 May 2005

The role of Energy Service Companies

Silvia Rezessy, 
Central European University, Environmental Sciences and Policy Dept.

Paolo Bertoldi, 

European Commission, Directorate General JRC

CENTRAL EUROPEAN UNIVERSITY
CENTRAL EUROPEAN UNIVERSITY

Structure of the presentation

Energy Service Companies (ESCOs): concepts and 
operational models
ESCOs in Europe: some insights from the first European 
ESCO database
Role of ESCOs in solar projects
Two examples from Italy
The Central and Eastern European perspective
Conclusions

CENTRAL EUROPEAN UNIVERSITY
CENTRAL EUROPEAN UNIVERSITY

Paolo Bertoldi, European Commission
Silvia Rezessy, Central European University

1

The role of energy service companiesS. Rezessy, Central European University, Hungary, P. Bertoldi, European Commission, DG JRC, ItalyPage 64The role of Energy Service Companies

Ispra, 26 May 2005

Introduction

The  electricity  and  gas  liberalisation  process  is  on-going  in  the  EU,  and  the 
status  of  opening  of  the  markets  varies  from  MS  to  MS.  By  1st July  2007  all 
customers shall be able to choose a supplier;
The  Kyoto  Protocol  entered  into  force  on  16th Feb.  2005.  The  EU  Emissions 
Trading System has started as from 1st January 2005;
In  the  last  decade  Europe  has  seen  an  increased  interest  in  the  provision  of 
energy services driven by electricity and gas market restructuring and the push 
for sustainability;
There is a very different level of development of the ESCO industry (in terms of 
e.g. types of services, size and turnover of ESCOs, number of ESCOs) in the 
various  European  countries.  The  differences  in  level  of  development  is  due, 
among other, to the pro-active national and local promotion programmes as well 
as the introduction of project financing;
There  is  a  still  significant  variance  in  the  ESCO-related  definitions  and 
concepts;

CENTRAL EUROPEAN UNIVERSITY
CENTRAL EUROPEAN UNIVERSITY

Energy services

Energy services include a wide range of activities, such as

energy analysis and audits, 
energy management, 
project design and implementation, 
maintenance and operation, 
monitoring and evaluation, 
property management,
energy and/or equipment supply.

CENTRAL EUROPEAN UNIVERSITY
CENTRAL EUROPEAN UNIVERSITY

Paolo Bertoldi, European Commission
Silvia Rezessy, Central European University

2

The role of energy service companiesS. Rezessy, Central European University, Hungary, P. Bertoldi, European Commission, DG JRC, ItalyPage 65The role of Energy Service Companies

Ispra, 26 May 2005

Energy service provider companies (ESPC)

ESPCs are companies providing energy services to final energy users, 

including the supply and installation of energy-efficient equipment, the 
supply of energy, and/or building refurbishment, maintenance and
operation, facility management, and the supply of energy (including 
heat);

ESPCs are consulting engineers specialised in efficiency improvements
and providing a service for a fixed fee. ESPCs may have some 
incentives to reduce consumption, but these are not as clear as in the 
ESCO approach: EPSCs are paid a fixed fee for their advice rather 
than being paid based on the results of their recommendations. 

Because often the full cost of energy services is recovered in the fee, the 

ESPC does not assume any risk in case of underperformance. 

CENTRAL EUROPEAN UNIVERSITY
CENTRAL EUROPEAN UNIVERSITY

Energy service companies (ESCOs) 

An  ESCO  also  offers  the  same  services;  however,  an  ESCO 

differs from an ESPC in the following ways: 

ESCOs  guarantee  the  performance  of  the  project  it  implements 
(e.g.  energy  savings).  A  performance  guarantee  can  take  several 
forms. It can revolve around the actual flow of energy savings from 
a project, or can stipulate that the energy savings will be sufficient 
to repay monthly debt service costs. 
The remuneration of ESCOs is directly tied to performance 
achieved;
ESCOs can finance, or assist in arranging financing for the 
operation of an energy system by providing a performance 
guarantee. 

CENTRAL EUROPEAN UNIVERSITY
CENTRAL EUROPEAN UNIVERSITY

Paolo Bertoldi, European Commission
Silvia Rezessy, Central European University

3

The role of energy service companiesS. Rezessy, Central European University, Hungary, P. Bertoldi, European Commission, DG JRC, ItalyPage 66The role of Energy Service Companies

Ispra, 26 May 2005

Energy performance contracting

Under an energy performance contracting (EPC) arrangement an 
ESCO implements a project to deliver energy efficiency, or a 
renewable energy project, and uses the stream of income from 
the cost savings, or the renewable energy produced, to repay the
costs of the project, including the costs of the investment. The
ESCO will not receive its payment unless the project delivers 
energy savings as expected.

This provides a form of ‘creative financing’ for capital improvement which 
allows funding energy upgrades from cost reductions. 
EPC is a means to deliver infrastructure improvements to facilities that lack 
energy engineering skills, manpower or management time, capital funding, 
understanding of risk, or technology information. 
Cash-poor, yet creditworthy customers are good potential clients for EPC.

CENTRAL EUROPEAN UNIVERSITY
CENTRAL EUROPEAN UNIVERSITY

Types of financing arrangements

ESCO financing: internal funds of the ESCO (own capital or equipment lease);
ESCO financing: 

user/customer financing: internal funds of the user/customer backed by an 

Energy--user/customer financing:
Energy
energy savings guarantee provided by the ESCO or borrowing in the case when the 
energy-user/customer as a direct borrower has to provide a guarantee (collateral) to 
the finance institution; 

ThirdThird--party financing
party financing (TPF) refers solely to debt financing. As its name suggests, 
project financing comes from a third party, e.g. a finance institution, and not from 
internal funds of the ESCO or of the customer. Two different TPF arrangements 
associated with EPC depending on who borrows the money: the ESCO or the client.

(cid:132) The first option is that the ESCO borrows the financial sources necessary for project 

implementation; 

(cid:132) The second option is that the energy-user/customer takes a loan from a finance institution, 
backed by an energy savings guarantee agreement with the ESCO. The purpose of the 
savings guarantee is to demonstrate to the bank that the project for which the customer 
borrows will generate a positive cash flow, i.e. that the savings achieved will certainly cover 
the debt repayment. Thus the energy savings guarantee reduces the risk perception of the 
bank, which has implications for the interest rates at which financing is acquired. The ‘cost 
of borrowing’ is strongly influenced by the size and credit history of the borrower.

CENTRAL EUROPEAN UNIVERSITY
CENTRAL EUROPEAN UNIVERSITY

Paolo Bertoldi, European Commission
Silvia Rezessy, Central European University

4

The role of energy service companiesS. Rezessy, Central European University, Hungary, P. Bertoldi, European Commission, DG JRC, ItalyPage 67The role of Energy Service Companies

Ispra, 26 May 2005

Most common contract models

Guaranteed savings and shared savings;

Chauffage;

First-Out;

Build-Own-Operate-Transfer;

Leasing; 

CENTRAL EUROPEAN UNIVERSITY
CENTRAL EUROPEAN UNIVERSITY

Guaranteed savings

The  ESCO  guarantees  a  certain  level  of  energy  savings  and  in  this  way 

shields the client from any performance risk.

Because the ESCO takes over the entire performance and design risk, it is unlikely 
to  be  willing  to  further  assume  credit  risk:  TPF  with  ESCO  borrowing  rarely  goes 
along  with  guaranteed  savings  contract:  The  customers  are  financed  directly  by 
banks or by a financing agency  
Customer repays the loan and assumes the investment repayment risk. If the 
savings are not enough to cover debt service, the ESCO covers the difference. If 
savings exceed the guaranteed level, then the customer pays an agreed upon 
percentage of the savings to the ESCO.
Likely to function properly only in countries with a well established banking structure, 
high degree of familiarity with project financing and sufficient technical expertise, 
also within the banking sector, to understand energy-efficiency projects (e.g. the UK, 
Austria, and more recently, Hungary). 
Difficult to use in introducing the ESCO concept in developing markets. However, it 
fosters long-term growth of ESCO and finance industries

CENTRAL EUROPEAN UNIVERSITY
CENTRAL EUROPEAN UNIVERSITY

Paolo Bertoldi, European Commission
Silvia Rezessy, Central European University

5

The role of energy service companiesS. Rezessy, Central European University, Hungary, P. Bertoldi, European Commission, DG JRC, ItalyPage 68The role of Energy Service Companies

Ispra, 26 May 2005

Guaranteed Savings
(user financing)

“Business Risks”

Customer

Savings 
Guarantee

Fixed 
Repayment 
Schedule

ESCO

Lender/Investor

“Performance Risk”

“Credit Risk”

CENTRAL EUROPEAN UNIVERSITY
CENTRAL EUROPEAN UNIVERSITY

Shared savings

The cost savings are split for a pre-determined length of time in accordance with 
a pre-arranged percentage: there is no ‘standard’ split as this depends on the 
cost of the project, the length of the contract and the risks taken by the ESCO 
and the consumer.

the client takes over some performance risk, hence it will try to avoid assuming any credit risk: 
TPF or financing via a mixed scheme with financing coming from the client and the ESCO are 
more common. 

The ESCO assumes both performance and the underlying customer credit risk. Such contractual 
arrangement may give raise to leveraging problems for ESCOs, because ESCOs become too 
indebted and at some point financial institutions may refuse lending to an ESCO due to high debt 
ratio;

A situation where savings exceed expectations should be taken into account in a shared savings 
contract: the ESCO may attempts to ‘lowball’ the savings estimate and then receive more from 
the ‘excess savings’; 

A good introductory model in developing markets because customers assume no financial risk.

Tends to lock out small companies and may limit long-term market growth and competition 
between ESCOs and between financing institutions; 

CENTRAL EUROPEAN UNIVERSITY
CENTRAL EUROPEAN UNIVERSITY

Paolo Bertoldi, European Commission
Silvia Rezessy, Central European University

6

The role of energy service companiesS. Rezessy, Central European University, Hungary, P. Bertoldi, European Commission, DG JRC, ItalyPage 69The role of Energy Service Companies

Ispra, 26 May 2005

Shared Savings

(ESCO provides financing)
“Business Risks”

Customer

“ESCO”
“Performance & 
Credit Risk”

Project Services
Savings Guarantee

Lender/Investor
100% Funding

CENTRAL EUROPEAN UNIVERSITY
CENTRAL EUROPEAN UNIVERSITY

Other contract models

‘Chauffage’

‘First out’ approach

Build-Own-Operate-Transfer (BOOT)

Leasing

CENTRAL EUROPEAN UNIVERSITY
CENTRAL EUROPEAN UNIVERSITY

Paolo Bertoldi, European Commission
Silvia Rezessy, Central European University

7

The role of energy service companiesS. Rezessy, Central European University, Hungary, P. Bertoldi, European Commission, DG JRC, ItalyPage 70The role of Energy Service Companies

Ispra, 26 May 2005

ESCOs in Europe: general characteristics

Most ESCOs have been founded either by large companies or as 
subsidiaries of large companies (equipment manufacturers, facility 
management companies, operation, management and construction 
companies or energy utilities); 

Under EPC arrangements ESCOs have so far provided financing 
themselves (mainly in France, Italy and Germany). 

Only recently have more ESCOs started implementing EPC using TPF: 
no matter that almost all ESCO projects in Europe have been based on 
the shared savings concept. Chauffage contracts are also commonly 
used. The guaranteed savings concept has been used rarely; 

The market is segmented in ‘functionally specialised’ companies;

CENTRAL EUROPEAN UNIVERSITY
CENTRAL EUROPEAN UNIVERSITY

ESCO projects

The  majority  of  ESCOs’  projects  in  EU  MS  have  focused  on  co-
generation; public lighting; HVAC and EMS.
The  majority  of  ESCO  projects  in  Europe  have  been  undertaken  in 
the public sector (‘safer’ client and support of public agencies). 
The  recent  energy  industry  restructuring  has  stimulated  projects in 
CHP for large commercial centers, hospitals, and industrial facilities 
(BOOT contracts); it has also triggered public lighting projects, where 
municipalities  tendered  lighting  operation,  including  the  supply of 
electricity.
In many cases ESCOs are more interested in the business of selling 
energy or equipment than in exploiting the financial opportunities of 
energy savings.

CENTRAL EUROPEAN UNIVERSITY
CENTRAL EUROPEAN UNIVERSITY

Paolo Bertoldi, European Commission
Silvia Rezessy, Central European University

8

The role of energy service companiesS. Rezessy, Central European University, Hungary, P. Bertoldi, European Commission, DG JRC, ItalyPage 71The role of Energy Service Companies

Ispra, 26 May 2005

Criteria for passing contracts*

* Based on 51 responses

Maximum contract duration

more than 15 
years
21,6%

up to 5 years
13,7%

5-15 years
64,7%

Minimum annual energy bill (in Euro)

more than 
100,000
28,07%

50,000-100,000
31,58%

up to 10,000 
Euro
10,53%

10,000-50,000
29,82%

CENTRAL EUROPEAN UNIVERSITY
CENTRAL EUROPEAN UNIVERSITY

ESCO project specifics*

Nr. of 
projects 

Share in 
total 

8 

12 

1 

1 

8 

3 

2 

5 

4 

11 

9 

1 

1 

8 

8 

2 

4 

36.36 %

54.55 %

4.55 %

4.55 %

36.36 %

13.64 %

9.09 %

22.73 %

18.18 %

50 %

40.91 %

4.55 %

4.55 %

36.36 %

36.36 %

9.09 %

18.18 %

20 

90.91 %

9.09 %
CENTRAL EUROPEAN UNIVERSITY
CENTRAL EUROPEAN UNIVERSITY

2 

Combined Heat and Power (CHP), District heating (DH) refurbishment, fuel switch, burner improvements 

Heating, Ventilation, Air Conditioning (HVAC) 

Renewable Energy Sources (RES) utilization 

Lighting (indoor and streetlighting) 

other (gas distribution, compressed air, reactive power, process unit and combustion improvement) 

CONTRACT DURATION 

up to 5 years 

5-15 years 

more than 15 years 

unspecified 

TECHNOLOGY 

SECTOR 

Industry 

Public 

Tertiary 

All sectors 

CONTRACT TYPE 

Guaranteed savings 

Shared savings 

Build-Own-Operate-Transfer (BOOT) 

* Based 
on 22 
ESCO 
Project 
Forms

Unspecified 

FINANCING 

TPF 

Client financing 

Paolo Bertoldi, European Commission
Silvia Rezessy, Central European University

9

The role of energy service companiesS. Rezessy, Central European University, Hungary, P. Bertoldi, European Commission, DG JRC, ItalyPage 72 
 
 
 
 
 
 
 
The role of Energy Service Companies

Ispra, 26 May 2005

Role of ESCOs in solar energy project development 
and implementation

(cid:190) Technology
(cid:190) Feasibility studies: 

(cid:190) Technical and economic viability, IGAs

(cid:190) Project development and implementation support, creation of market 

players
(cid:190) Governmental support, local initiatives
(cid:190) Financing (ESCOs are not banks!)

(cid:190) Better understanding is needed of, among other, environmental related financing products 
of FIs (esp. energy- and carbon-related), financing structures, cash-flow versus asset-
based financing, IRR criteria, collaterals, risk assessment techniques in the banking sector  

(cid:190) Sources of financing:  equity (from project developer or from project implementor,equity 
funds), carbon financing, debt (project finance or corporate finance from local and 
international commercial banks, Export Credit Agencies, Multilateral banks, Specialized 
Finance Institutions or funds, Capital market), Subsidies (local or EU)  

(cid:190) Carbon financing and role of tradable securities

CENTRAL EUROPEAN UNIVERSITY
CENTRAL EUROPEAN UNIVERSITY

ESCOs and solar energy: two examples from Italy
* Data from the European ESCO database

Project: Solar thermal plant at the Tennis Club of Palermo for hot water 
production
Project implementer: AMG ENERGIA S.p.A.
Project details
(cid:132) Preliminary audit;
(cid:132) solar collectors have been installed by a local installer, monitoring system has been 

installed by Enea, the national energy agency;

(cid:132) ESCO own financing
(cid:132) Specific guarantee of solar results signed (according both to previous figures of 

thermal needs and to actual performance). The guarantee of solar results considers 
a system of benefits and penalties in relation to the actual energy performance.
(cid:132) 10-year contract, approx. 60,000 Euro investment; PBT calculated to be less than 6 

years

(cid:132) AMG ENERGIA supplies the natural gas as energy back-up of the system

CENTRAL EUROPEAN UNIVERSITY
CENTRAL EUROPEAN UNIVERSITY

Paolo Bertoldi, European Commission
Silvia Rezessy, Central European University

10

The role of energy service companiesS. Rezessy, Central European University, Hungary, P. Bertoldi, European Commission, DG JRC, ItalyPage 73The role of Energy Service Companies

Ispra, 26 May 2005

ESCOs and solar energy: two examples from Italy
* Data from the European ESCO database

Project: PV system for a private company; 

Project implementer: Romeo Giovanni Antonio;

Project details
(cid:132) Preliminary audit;
(cid:132) ESCO own financing;
(cid:132) 5-year contract;
(cid:132) Guarantee of a production of 30.000 Kwh/year;

CENTRAL EUROPEAN UNIVERSITY
CENTRAL EUROPEAN UNIVERSITY

Central and Eastern Europe

Legal environment;

Inefficient use of energy (abundant „low-hanging fruits“);

Overcapacity in production; low energy prices;

Insufficient equity sources and tight public budgets;

Lack of experienced operators;

CENTRAL EUROPEAN UNIVERSITY
CENTRAL EUROPEAN UNIVERSITY

Paolo Bertoldi, European Commission
Silvia Rezessy, Central European University

11

The role of energy service companiesS. Rezessy, Central European University, Hungary, P. Bertoldi, European Commission, DG JRC, ItalyPage 74The role of Energy Service Companies

Ispra, 26 May 2005

Conclusions

The provision of energy services is a growing industry that involves a 
diversity of enterprises and covers a variety of activities;
Supply  side  at  present  is  attracting  the  lion’s  share  of  ESCO’s
attention  in  Europe  with  co-generation  the  most  common  type  of 
project; 
ESCOs  have  a  potential  role  to  play  in  the  deployment  of  solar 
projects;
Financing  is  a  crucial  issue  and  the  attention  of  FIs should  be 
‘grabbed’;
CEE specifics should be considered;
The current status of the ESCO industry in Europe shows significant 
differences from country to country;

CENTRAL EUROPEAN UNIVERSITY
CENTRAL EUROPEAN UNIVERSITY

Content of the draft status report on ESCOs 
in Europe prepared at DG JRC

Concise definitions of the terminology used in relation to the 
provision of energy services;

Review of the current status of the ESCO industry in Europe and 
project specifics of the most common types of activities;

Analysis the features of the ESCO industry in selected EU Member
States and NACs on country-by-country basis;

Identification of areas where concerted efforts at national as well as 
European level are expected to further foster the development of
the ESCO industry in Europe. 

CENTRAL EUROPEAN UNIVERSITY
CENTRAL EUROPEAN UNIVERSITY

Paolo Bertoldi, European Commission
Silvia Rezessy, Central European University

12

The role of energy service companiesS. Rezessy, Central European University, Hungary, P. Bertoldi, European Commission, DG JRC, ItalyPage 75The role of Energy Service Companies

Ispra, 26 May 2005

Thank you for your attention!
Thank you for your attention!

More information about the “ESCOs in Europe 2005”
“ESCOs in Europe 2005” status 
report and the European ESCO database can be obtained 
from 

Paolo Bertoldi: Paolo.Bertoldi@cec.eu.int

Silvia Rezessy: Ephlas01@phd.ceu.hu

or online at: http://energyefficiency.jrc.cec.eu.int/esco.htm

CENTRAL EUROPEAN UNIVERSITY
CENTRAL EUROPEAN UNIVERSITY

Renewables: major barriers in CEE

Lack of real political commitment and overall RES policies:
(cid:132) Adequacy and consistency of regulatory and legal frameworks; 
(cid:132) Lack of long-term policies;
(cid:132) Lack of RES laws, sectoral RES targets and, in some cases, of long-

term RES strategies

Relatively cheap fossil-generated electricity 
Limited environmental policy integration into the sectoral policies: 
often confusing signals with impact on RES deployment 
No real RES lobby vis-à-vis strong fossil lobbies (high connecting 
costs, grid use fees, transmission tariffs, balancing rules)

CENTRAL EUROPEAN UNIVERSITY
CENTRAL EUROPEAN UNIVERSITY

Paolo Bertoldi, European Commission
Silvia Rezessy, Central European University

13

The role of energy service companiesS. Rezessy, Central European University, Hungary, P. Bertoldi, European Commission, DG JRC, ItalyPage 76The role of Energy Service Companies

Ispra, 26 May 2005

Renewables in CEE: policy framework

Indicative targets (RES-E in total electricity consumption by 2010)
(cid:132) Poland 7.5 %, Czech Republic 8 %, Hungary 3.6 % (re-negotiated 

down from 11.5 %)

(in some cases) RES strategies, emphasizing not strictly environmental 
benefits of RES, e.g. employment opportunities 
Limited investment support: no dedicated financial resources, mostly under
EE and environmental programs
Operational support (feed-in tariffs, renewable portfolio standards)
(cid:132) Time horizons, implementation deficiencies (efficiency thresholds, 

biomass co-firing)

Grid access rules (preferred connection only in CZ) and authorisation 
procedures

CENTRAL EUROPEAN UNIVERSITY
CENTRAL EUROPEAN UNIVERSITY

Paolo Bertoldi, European Commission
Silvia Rezessy, Central European University

14

The role of energy service companiesS. Rezessy, Central European University, Hungary, P. Bertoldi, European Commission, DG JRC, ItalyPage 77Business opportunities 
in solar electricity market

Robert Pfatischer

Management of solar electricity systems in disributed energy 
generation network
EC Joint Research Centre, Ispra, 26. May 2005

Overview

⇒ meteocontrol GmbH

• Energy and Weather Services

⇒ Solar Energy Services Today

• Utilities

• Power Prediction

• Plant Management

• Audits

⇒ Needs

2

1

Business opportunities in the solar electricity marketR. Pfatischer, MeteoControl, GermanyPage 78Meteocontrol    Energy Services Today      Needs and Outlook

Development of  meteocontrol GmbH

⇒ 1976 IST-Energietechnik GmbH

• Competence in Planning, Consulting and Monitoring

Bremerhaven

⇒ 1991 Standort Augsburg 

• 1000-Dächer-Programm: PV-Fieldtest

Bochum

⇒ 1998 IST-Energiecom GmbH

•

Innovation for Renewable Energy

Augsburg

⇒ 2002 meteocontrol GmbH

Joint Venture of S.A.G. Freiburg and meteomedia AG

•
• Expertise in Energy and meteorological Know-How 
• (cid:198) Energie & Wether Services

Meteocontrol    Energy Services Today      Needs and Outlook

Energy & Weather Services

Sector

⇒ Wind Energy

⇒ Solar Energy

⇒ Utility Sector

⇒ Facility Management

⇒ Insurance Companies

Service

⇒ Weather Forecast

⇒ Load and Power Prediction

⇒ Energy Efficiency Analysis

⇒ Plant Management

⇒ Audits

3

4

2

Business opportunities in the solar electricity marketR. Pfatischer, MeteoControl, GermanyPage 79Meteocontrol    Energy Services Today      Needs and Outlook

Service Company

1.000 € / Day

⇒ Standardised processes

⇒ Automatic data processing

⇒ Internet based

⇒ Cost effective

5 € / Month

Meteocontrol    Energy Services Today      Needs and Outlook

Meteocontrol Weather Services

Web-
Surface

User
Manag-
ement

GIS-
Appli-
cation

Application-
management

Data-
bank

Internet

Client

Forecast

Satellite data

Blids

Radar

Weather station

5

6

3

Business opportunities in the solar electricity marketR. Pfatischer, MeteoControl, GermanyPage 80Meteocontrol    Energy Services Today      Needs and Outlook

Data Processing Tools for Energy Services

Weather Data

Manual 
Data Input

Data Logger

Alarming Tools

Graphic and Analysis

€

Accounting

Meteocontrol 

Energy Services Today

Needs and Outlook

Solar Energy Services Today

⇒ Utility Sector 

Load Prediction

⇒ Solar System

Plant Management

⇒ Banks

Solar Audit

7

8

4

Business opportunities in the solar electricity marketR. Pfatischer, MeteoControl, GermanyPage 81Meteocontrol 

Energy Services Today

Needs and Outlook

Utility Load Prediction

⇒ Higher quality through improved 

methods

⇒ Extended use with liberalisation 

of the electricity market

ECMWF
Synop

MM-MOS

Daily ftp

⇒ Needed also with growing input of 

RE

Meteocontrol Database

SFTP, EMAIL

Weather Portal

Client

9

10

5

Business opportunities in the solar electricity marketR. Pfatischer, MeteoControl, GermanyPage 8211

12

6

Business opportunities in the solar electricity marketR. Pfatischer, MeteoControl, GermanyPage 8313

14

7

Business opportunities in the solar electricity marketR. Pfatischer, MeteoControl, GermanyPage 8415

16

Meteocontrol 

Energy Services Today

Needs and Outlook

Use of this Service

⇒ Input to load forecast for utilities

⇒ Dependency of electricity load to solar radiation 

in the range of 5 to 10%

⇒ Better load forecast reduces cost of electricity

⇒ Information system for electricity dealers

You could get most of this information for free 

but we have 50 clients who like to  pay

8

Business opportunities in the solar electricity marketR. Pfatischer, MeteoControl, GermanyPage 85Meteocontrol 

Energy Services Today

Needs and Outlook

Services for Plant Management

⇒ More than 1000 plants actually monitored 

⇒ More than 50 MW online

⇒ More than 10% of all PV realised in Germany this year 

are in observation  

⇒ Internet based plant management becomes standard

⇒ Solar Systems range from 100 Watt to  10 MW

⇒ Your service has to adapt to the system size

⇒ Satellite Data help to realise cost effective service also 

for small PV

17

18

Overview: Energy und Solar radiation

Energy meter

Solar
Irradiation

safer’Sun
(Internet Portal)

DC

AC

DC

AC

Visualisation

WEB’log
with modem

Internet

@

Alarms

Email with measured
values

9

Business opportunities in the solar electricity marketR. Pfatischer, MeteoControl, GermanyPage 86Overview: Connection to the Inverters

Energy meter

Solar
Irradiation

safer’Sun
(Internet Portal)

Visualisation

WEB’log
with modem

Internet

@

Alarms

Email with measured
values

Communication with
Inverters (RS485)

Sinvert

SMA

KACO

Siemens

Mastervolt

Exendis

Overview: Central Inverters

Energy meter

Solar
Irradiation

Safer’Sun
(Internet Portal)

Visualisation

WEB’log
with modem

Internet

Communication with
 inverter (RS485)

@

Alarms

Email with measured 
values

19

20

10

Business opportunities in the solar electricity marketR. Pfatischer, MeteoControl, GermanyPage 87Solar Irradiation

Feed-in power

Different Time 
Levels

Simple 
Evaluation

21

22

11

Business opportunities in the solar electricity marketR. Pfatischer, MeteoControl, GermanyPage 88Actual Energy Generation

Rated Energy Generation

23

24

PR for Plant Evaluation

Various Analysis 
Charts

12

Business opportunities in the solar electricity marketR. Pfatischer, MeteoControl, GermanyPage 89Meteocontrol 

Energy Services Today

Needs and Outlook

Services for Investment Decision 

⇒ Projects exceed minimum size to become 

interesting for banking sector

⇒ Wind funds and banking sector step

into solar business

⇒ Banking sector has learned to distinguish 

between good and bad audits

⇒ Importance of accuracy information

⇒ First clients ask for a second “independent” 

source of solar radiation data beside 
national weather service

25

26

Meteocontrol 

Energy Services Today

Needs and Outlook

Premium Site Audit

⇒ High quality 

⇒ Written audit

⇒ High investment is based on it

⇒ Nearly all steps manually

⇒ Created by specialists

⇒ Need to minimise financial risk 

with increasing accuracy of yield 
calculation

Extraction of 
long- term hourly
values of global 
radiation

Market player

Temper-
ature

Simulation, monitored by 
specialists

Written 
audit

Components and 
configuration reviewed by 
specialists

Client

13

Business opportunities in the solar electricity marketR. Pfatischer, MeteoControl, GermanyPage 90Meteocontrol 

Energy Services Today

Needs and Outlook

Value of the Service

⇒ 1% improvement in accuracy means 1% lower risk.

⇒ Looking on a return of investment (ROI) of about 7% this is important

⇒ A professional site audit can minimise the risk to +/- 4 to 7 %, 

depending on the project

⇒ Without an audit the risk is much higher (about +/-15 to 20 %)

⇒ For a project with an investment capital of 50 Mio Euro this means a 

value of about 400.000 EUR related to the investment

⇒ Related to the ROI it means the difference between earning and loss 

Meteocontrol 

Energy Services Today

Needs and Outlook

27

28

14

Business opportunities in the solar electricity marketR. Pfatischer, MeteoControl, GermanyPage 91Meteocontrol    Energy Services Today

Needs and Outlook

Needs in the Utility Sector

⇒ Reliable

• ESA-EOMD-ENVISOLAR helps to become more 

professional

• Closer co operation between EO Service and 

Energy Service Companies

• Backup Satellite

⇒ Better understanding of the impact of solar 

radiation on the load

• Closer co operation with utilities

⇒ Solar Power Prediction has to be ready much earlier

• Closer co operation with utilities
• High value of power prediction

Meteocontrol    Energy Services Today

Needs and Outlook

Needs in the Plant Management of Solar System

⇒ Acceptance of service fee

⇒ Standards for communication with inverters

⇒ Control interface to the grid

29

30

15

Business opportunities in the solar electricity marketR. Pfatischer, MeteoControl, GermanyPage 92Meteocontrol    Energy Services Today

Needs and Outlook

Needs for Investment Decision Services

⇒ Answer questions of “Bankers”

⇒ Better understanding of errors
• Solar module certification
• No reliable solution for thin film up to now

⇒ Higher spatial and time resolution 
needed for aerosol information

⇒ Get into the pixel

31

32

meteocontrol 

Energy & Weather Services 

meteocontrol GmbH
Stadtjägerstr. 11
D-86152 Augsburg

Telefon:  0821-34 666-0
Fax:        0821-34 666-11
info@meteocontrol.de
Email:   
Home:  www.meteocontrol.de

16

Business opportunities in the solar electricity marketR. Pfatischer, MeteoControl, GermanyPage 93Photovoltaics 
Status ofof Photovoltaics 
Status 

States
Candidate States
EU New andand Candidate
inin EU New 
Latvia, , 
, Estonia, Hungary
Bulgaria, Czech 
((Bulgaria

Republic, Estonia, 

, Czech Republic

Hungary, , Latvia

Lithuania, , Poland
Lithuania

Poland, Romania, 

, Romania, Slovakia

Slovenia))
Slovakia, , Slovenia

Stanislaw M. PIETRUSZKO
PV-NAS-NET Co-ordinator
POLAND

Content
Content

1. Overview of the PV situation in the 10 
European Union New  and Candidate
States

2. PV support mechanisms in NM&CS

3. Successes, challenges, needs

Stanislaw M. Pietruszko, PV Centre, Poland

PV RTD in EU  NM&CS, Ispra, 26-27.05.2005

1

Status of photovoltaics in the EU new member states and candidate countriesS. M. Pietruszko, Warsaw University/PV-NAS-NET, PolandPage 94Status of Photovoltaics
““Status of Photovoltaics
in the Newly Associated States”
in the Newly Associated States”

(cid:131) Organization of PV RTD and demo activities

(cid:131) Stakeholders involved in RTD

(cid:131) Scientific potential of NM&CS PV community

(cid:131) PV activities carried out in NM&CS countries

(cid:131) PV policies and support mechanisms

(cid:131) Achievements and barriers, challenges and needs to the

development of PV

Stanislaw M. Pietruszko, PV Centre, Poland

PV RTD in EU  NM&CS, Ispra, 26-27.05.2005

Stanislaw M. Pietruszko, PV Centre, Poland

PV RTD in EU  NM&CS, Ispra, 26-27.05.2005

2

Status of photovoltaics in the EU new member states and candidate countriesS. M. Pietruszko, Warsaw University/PV-NAS-NET, PolandPage 95Installed PV PV power
Installed

power (2004)
(2004)

EU-15*
population:   376 mio.
3.2 mio. km2
area:    
PV installed: ~ 1000 MW
*incl. CHE and NOR

8 New EU Countries
plus Bulgaria and Romania
population:   106 mio.
area:          1.8 mio. km2
PV installed: ~ 1,0 MW

Stanislaw M. Pietruszko, PV Centre, Poland

PV RTD in EU  NM&CS, Ispra, 26-27.05.2005

power
Installed PV PV power
Installed

Total installed power (kW)

Total installed power/capita

363

234

W
k

400

350

300

250

200

150

100

50

0

Total

Off-grid

On-grid

138

96

86

32

17

10

3

2

Czech Rep.

Poland

Hungary

Slovenia

Romania

Bulgaria

Lithuania

Slovakia

Latvia

Estonia

a
t
i

p
a
c

/

W

0,050
0,045
0,040
0,035
0,030
0,025
0,020
0,015
0,010
0,005
0,000

Slovenia
Czech Rep

Hungary
Lithuania

Bulgaria

Poland
Romania

Slovakia

Estonia

Latvia

Stanislaw M. Pietruszko, PV Centre, Poland

PV RTD in EU  NM&CS, Ispra, 26-27.05.2005

3

Status of photovoltaics in the EU new member states and candidate countriesS. M. Pietruszko, Warsaw University/PV-NAS-NET, PolandPage 96 
 
Country
NMS/NAS

Off-grid 
[kW]

On-grid 
[kW]

Total 
[kW]

Off-grid 
growth* 
[kW]

On-grid 
growth* 
[kW]

Total
Growth 
[kW]*

Total
growth*
[%]

Czech Republic

Poland

Hungary

Slovenia

Lithuania

Cyprus

Slovakia

Malta

Latvia

Estonia

Total

Romania

Bulgaria

TOTAL

147

165

83

90

17

10

3

2

517

41

10

568

216

69

55

6

0

0

0

0

no data

no data

363

234

138

96

17

15**

10

9**

3

2

346

863

45

22

86

32

413

981

* compared to 2003

** data for 2003

17

105

8

5

0

0

0

0

135

6

0

141

no data

no data

16

22

30

40

0

0

0

0

108

30

0

138

33

127

38

45

0

0

0

0

243

36

0

279

10

119

38

88

0

0

0

0

32

72

0

33

Stanislaw M. Pietruszko, PV Centre, Poland

PV RTD in EU  NM&CS, Ispra, 26-27.05.2005

Number ofof staff
Number
working inin thethe field 
working

research institutions
institutions
PV RTD
field ofof PV RTD

staff inin thethe research

No of staff (total)

No of scientists

90

80

70

60

50

40

30

20

10

0

Poland

Romania

Bulgaria
Czech Rep.

Hungary

Estonia

Slovakia

Slovenia

Lithuania

Latvia

Stanislaw M. Pietruszko, PV Centre, Poland

PV RTD in EU  NM&CS, Ispra, 26-27.05.2005

4

Status of photovoltaics in the EU new member states and candidate countriesS. M. Pietruszko, Warsaw University/PV-NAS-NET, PolandPage 97FFunds

for PV RTD and 
unds for PV RTD and 

demonstration/dissemination (1996
demonstration/dissemination

2003)
(1996--2003)

Total (14 Mio Euro)

Per capita

Total

RTD

Demonstration

]
o
m

i

[

R
U
E

4

3,5

3

2,5

2

1,5

1

0,5

0

Poland

Hungary

Estonia
Czech Rep

Romania

Slovenia

Bulgaria

Slovakia

Lithuania

Latvia

Stanislaw M. Pietruszko, PV Centre, Poland

PV RTD in EU  NM&CS, Ispra, 26-27.05.2005

Total funding
Total

funding ofof thethe European 
2003)
(1996 –– 2003)
(1996 

Commission
European Commission

Total funding (thousands of EUR)

Total funding/capita (EUR/capita)

(5,3 mio EUR)

R
U
E

f
o
d
n
a
s
u
o
h
t

1400

1200

1000

800

600

400

200

0

Czech Rep

Hungary

Romania

Estonia

Poland

Slovenia

Lithuania

Slovakia

Bulgaria

Latvia

a
t
i
p
a
c
/

R
U
E

0,50

0,45

0,40

0,35

0,30

0,25

0,20

0,15

0,10

0,05

0,00

Estonia

Slovenia
Czech Rep

Hungary

Lithuania

Slovakia

Romania

Bulgaria

Poland

Latvia

Stanislaw M. Pietruszko, PV Centre, Poland

PV RTD in EU  NM&CS, Ispra, 26-27.05.2005

5

Status of photovoltaics in the EU new member states and candidate countriesS. M. Pietruszko, Warsaw University/PV-NAS-NET, PolandPage 98 
 
 
 
 
 
2004 (in thousands EUR)

Country

RTD

Demonstration/disseminatio
n

Total

nationa
l

EC

foreign

nation
al

EC

foreign

Bulgaria

Czech 
Republic

Estonia

Hungary

Latvia

Lithuania

93

38

11

3

970

125

456

615

51

295

318

18

268,5

18

88

10

10

157

Poland

565

170

15

90

4

Romania

Slovakia

Slovenia

8

15

50

120

1623

1639

665

623

11

444

844

170

23

Stanislaw M. Pietruszko, PV Centre, Poland

PV RTD in EU  NM&CS, Ispra, 26-27.05.2005

Total

2 564

985

11

524

494

4

4 582

2005 (in thousands EUR)

Country

RTD

Demonstration/disseminati

Total

national

EC

foreign

nationa
l

EC

foreign

Bulgaria

Czech 
Republic

Estonia

Hungary

Latvia

Lithuania

785

700

30

Poland

800

20

100

150

100

Romania

Slovakia

Slovenia

645

500

15

8

52

80

1 450

800

45

8

200

1 480

Total

2 315

370

1 145

155

3 965

Stanislaw M. Pietruszko, PV Centre, Poland

PV RTD in EU  NM&CS, Ispra, 26-27.05.2005

6

Status of photovoltaics in the EU new member states and candidate countriesS. M. Pietruszko, Warsaw University/PV-NAS-NET, PolandPage 99Papers (1996 – 2003)

4 000

3 500

3 000

2 500

2 000

1 500

1 000

500

0

EU-15+CH

EU-10+BG+RO

USA

JAP

Stanislaw M. Pietruszko, PV Centre, Poland

PV RTD in EU  NM&CS, Ispra, 26-27.05.2005

Papers/mil population

14,00

12,00

10,00

8,00

6,00

4,00

2,00

0,00

EU-15+CH

EU-10+BG+RO

USA

JAP

Stanislaw M. Pietruszko, PV Centre, Poland

PV RTD in EU  NM&CS, Ispra, 26-27.05.2005

7

Status of photovoltaics in the EU new member states and candidate countriesS. M. Pietruszko, Warsaw University/PV-NAS-NET, PolandPage 100Papers/GDP

0,60

0,50

0,40

0,30

0,20

0,10

0,00

EU-15+CH

EU-10+BG+RO

USA

JAP

Stanislaw M. Pietruszko, PV Centre, Poland

PV RTD in EU  NM&CS, Ispra, 26-27.05.2005

Papers in EU 15 + Switzerland

3 471 (1996 – 2003)

700

600

500

400

300

200

100

0

1990

1992

1994

1996

1998

2000

2002

Stanislaw M. Pietruszko, PV Centre, Poland

PV RTD in EU  NM&CS, Ispra, 26-27.05.2005

8

Status of photovoltaics in the EU new member states and candidate countriesS. M. Pietruszko, Warsaw University/PV-NAS-NET, PolandPage 101Papers in USA

2 883 (1996 – 2003)

600

500

400

300

200

100

0

1990

1992

1994

1996

1998

2000

2002

Stanislaw M. Pietruszko, PV Centre, Poland

PV RTD in EU  NM&CS, Ispra, 26-27.05.2005

Papers in Japan

1 532 (1996 – 2003)

400

350
300
250

200
150
100

50
0

1990

1992

1994

1996

1998

2000

2002

Stanislaw M. Pietruszko, PV Centre, Poland

PV RTD in EU  NM&CS, Ispra, 26-27.05.2005

9

Status of photovoltaics in the EU new member states and candidate countriesS. M. Pietruszko, Warsaw University/PV-NAS-NET, PolandPage 102Papers in EU 10 + Bulgaria and Romania 308 (1996 – 2003

70

60

50

40

30

20

10

0

1990

1992

1994

1996

1998

2000

2002

Stanislaw M. Pietruszko, PV Centre, Poland

PV RTD in EU  NM&CS, Ispra, 26-27.05.2005

Papers/Population (mio) in EU 15

Japan 12;  USA 10

30

25

20

15

10

5

0

CH

D

S

A

FIN

F

EL

P

Stanislaw M. Pietruszko, PV Centre, Poland

PV RTD in EU  NM&CS, Ispra, 26-27.05.2005

10

Status of photovoltaics in the EU new member states and candidate countriesS. M. Pietruszko, Warsaw University/PV-NAS-NET, PolandPage 103Papers/Population (mio) in EU 10

30

25

20

15

10

5

0

SI EE av CZ LT BG PL SK HU RO LV

Stanislaw M. Pietruszko, PV Centre, Poland

PV RTD in EU  NM&CS, Ispra, 26-27.05.2005

PV PV installations

installations inin Czech 

Republic
Czech Republic

Grid-on PV system on façade of secondary
school, Breclav, 1,2 kW

PV power station, Dukovany, 10 kW

Grid-on PV system on the roof of university
building, Ostrava

Grid- on PV system with coloured cells, 
Corinthia Hotel Panorama, Prague, 6,0 kW

Stanislaw M. Pietruszko, PV Centre, Poland

PV RTD in EU  NM&CS, Ispra, 26-27.05.2005

11

Status of photovoltaics in the EU new member states and candidate countriesS. M. Pietruszko, Warsaw University/PV-NAS-NET, PolandPage 104PV PV installations

installations inin Hungary

Hungary and 

Slovenia
and Slovenia

Hungary, Budakalász, solar home system 
(combined with wind generator), Solar 
power:  5,4 kW, Wind power: 4,5 kW

PV powered rural telephony system, 
Magyarsarlos, 0.48 kW

Slovenia, Ljubljana, Grid-on PV system, ApE –
Energy Restructuring Agency, 1,1 kW

Slovenia, Kredarica, off grid system, 4,3 kW

Stanislaw M. Pietruszko, PV Centre, Poland

PV RTD in EU  NM&CS, Ispra, 26-27.05.2005

PV PV installations

Poland
installations inin Poland

Warsaw, Petrol station (2002), 11 kW

Traffic signal near Warsaw, (1999)
(around 400 systems were installed)

Wrocław University of Technology, Testing 
site SolarLab

AGH University of Science and 
Technology, Cracow 

Stanislaw M. Pietruszko, PV Centre, Poland

PV RTD in EU  NM&CS, Ispra, 26-27.05.2005

12

Status of photovoltaics in the EU new member states and candidate countriesS. M. Pietruszko, Warsaw University/PV-NAS-NET, PolandPage 105Country

Industry PV PV activities
Industry
Production of 
c-Si wafers

Producer of 
solar cells

activities inin NAS NAS 

Producer of 
modules

Producer of 
BOS

Bulgaria

ICM Ltd. Plovdiv

Terosil - CZ ingots
Wafertech - wafering

SOLARTEC

Energy Solutions, 1,5 
MW (from 2005)

Two SMEs for 
inverters

SOLARTEC (0,5 MW in 
2002) (in cooperation 
with Czech SME)
RWE, Kyocera

Controllers - 3 SME
Inverters grid-off only 
– 3 SME
Solar Trackers

Anne Oy with NAPS

Dunasolar; a-Si with 3 
MW in 2002
- stopped production 
in the middle 2003
Sanyo 60 Mw in 2005

small companies 
produce inverters and 
controllers

Czech 
Republic

Estonia

Hungary

Latvia

Lithuania

Venta, Vilnius 
(small area cells for 
automotive appls –
Volvo)

Saules Energija, 
Kaunas

Saules Energija, 
Kaunas
- for off-grid

PV Enterprise AB 
subsidiary 2 MW from
2004

ITE, Cracow -
controllers, inverters -
small scale

Small scale 
production - by ICPE 
(interrupted)

small scale production 
by ICPE -NESL and 
IPA S.A.;

IMCO POWER s.r.o. 
Bratislava
Inverters 0,2 -1,3 kVA.

Poland

SILIMAT - CZ ingots, 
wafers

Romania

Slovakia

Slovenia

Stanislaw M. Pietruszko, PV Centre, Poland

PV RTD in EU  NM&CS, Ispra, 26-27.05.2005

RES RES share

share inin 10 10 Newly

Newly Associated

Countries
Associated Countries

-- status and 

goals
status and goals

Country

RES 
Strategy

Share of RES in Production of 
Electricity with Large Hydro Power -
LHP (%)

1997

2001

2005

2010

Bulgaria

Czech Rep.

Estonia

Hungary

Latvia

Lithuania

Poland

Romania

Slovakia

Slovenia

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

0,2

3,8

0,2

0,7

42,4

3,3

1,6

17,9

29,9

0,4

3,5

0.3

0,9

1,9

28

2

5,1

3,0

29,5

31,0

4,0

8,0

5,1

3,6

49,3

7,0

7,5

32,0

21,0

33,6

Stanislaw M. Pietruszko, PV Centre, Poland

PV RTD in EU  NM&CS, Ispra, 26-27.05.2005

13

Status of photovoltaics in the EU new member states and candidate countriesS. M. Pietruszko, Warsaw University/PV-NAS-NET, PolandPage 106RES RES support

support mechanisms

members
mechanisms inin newnew EU EU members

Country

Feed-in tarrif

Soft  loans

Subsidies

Quota (RPS)

Green
certificate

Yes

0.03 €/kWh

0.20 €/kWh

Bulgaria

Czech 
Republic

Estonia 
Hungary

Latvia

double average sales 
tariff for the electrical 
energy

In preparation

Lithuania

0.056 EUR/kWh

Poland

Romania

0,07 EUR/kwh

Slovakia

Slovenia

Up to 36 kW - 0,37
EUR/ kWh
Above 36 kW- 0,065 
EUR/ kWh

Yes

Yes

Income tax
exemption

CO2 tax

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Up to 30% of the 
investment cost

2.85% in 2004, up to 
7.5% in 2010 (with
LHP)

1,8% - 2005
4,5% - 2010 (without 
LHP)

Yes

Yes

Yes

Yes

Stanislaw M. Pietruszko, PV Centre, Poland

PV RTD in EU  NM&CS, Ispra, 26-27.05.2005

SUCCESSES
SUCCESSES

• high intellectual potential

• establishing Centres of Excellence

•

•

•

international networking

increasing number of demonstration projects

increasing number of off-grid systems

• „Sun to Schools” in Czech Republic

•

„Development of Photovoltaics for Energy Needs„ in
Poland

Stanislaw M. Pietruszko, PV Centre, Poland

PV RTD in EU  NM&CS, Ispra, 26-27.05.2005

14

Status of photovoltaics in the EU new member states and candidate countriesS. M. Pietruszko, Warsaw University/PV-NAS-NET, PolandPage 107CHALLENGES
CHALLENGES

• Obligations arising from White Paper (12% RES) and 

Directive 2001/77/EC (22,1% E-RES) in 2010

• enlargement of the EU by 10 states 

• dedicated support for PV throughout the whole 

Europe

•

improvement of the coherence of New Members and 

EU PV RTD activities on PV

Stanislaw M. Pietruszko, PV Centre, Poland

PV RTD in EU  NM&CS, Ispra, 26-27.05.2005

BARRIERS
BARRIERS

•

•

•

absence of clear strategy on RES development

Low awarness of solar option - PV is “at the end” of RES

“die hard” prejudices

• weak national RTD funding 

•

•

lack of the real PV market

strong fossil fuels lobby

Stanislaw M. Pietruszko, PV Centre, Poland

PV RTD in EU  NM&CS, Ispra, 26-27.05.2005

15

Status of photovoltaics in the EU new member states and candidate countriesS. M. Pietruszko, Warsaw University/PV-NAS-NET, PolandPage 108CONCLUSIONS
CONCLUSIONS

• photovoltaics may develop in NAS

• awareness should be increased in society and 

among the key decision makers. 

• the legal and market framework should be 

developed and strengthened 

• NMS can effectively deploy their potential and 

contribute to corroborate and extend the 
European leadership in the advanced 
technologies research and industry.

Stanislaw M. Pietruszko, PV Centre, Poland

PV RTD in EU  NM&CS, Ispra, 26-27.05.2005

nas.net
www.pv--nas.net
www.pv

Stanislaw M. Pietruszko, PV Centre, Poland

PV RTD in EU  NM&CS, Ispra, 26-27.05.2005

16

Status of photovoltaics in the EU new member states and candidate countriesS. M. Pietruszko, Warsaw University/PV-NAS-NET, PolandPage 109PARTICIPANTS
PARTICIPANTS

Poland       - Warsaw Univ. of Technology (WUT)
Bulgaria

- Lab. of Solar Energy and New Energy Sources

(CL SENES)
Czech Rep. - SOLARTEC
Estonia
Hungary     - Solart-System Ltd. 
Latvia
Lithuania
Romania     - Romanian (National) Agency for Renewable

- Inst. of Physical Energetics (IPE LAS)
- Semiconductor Physics Institute (SPI)

- Tallinn Technical Univ. (TTU)

Energy (NARE)

Slovakia
Slovenia

- Slovak Univ. of Technology (SUT) 
- Energy Restructuring Agency (APE)

Netherlands  - Novem B.V. 
Swizerland - NET Ltd
Austria           - Arsenal
Greece
Finland

- CRES
- NAPS

PV-EC-NET

Stanislaw M. Pietruszko, PV Centre, Poland

PV RTD in EU  NM&CS, Ispra, 26-27.05.2005

17

Status of photovoltaics in the EU new member states and candidate countriesS. M. Pietruszko, Warsaw University/PV-NAS-NET, PolandPage 110Solar Generation

Johannes Stierstorfer
Phönix SonnenStrom AG for EPIA

Management of solar electricity systems in distributed energy generation network
Joint Research Centre – Ispra – 27 May 2005

History

• Solar Generation – solar electricity for over 1 billion people 

and 2 million jobs by 2020

• Co-operation starting in 2001 between

Dr. Murray Cameron 
Johannes Stierstorfer

Sven Teske

Management of solar electricity systems in distributed energy generation network
Joint Research Centre – Ispra – 27 May 2005

1

Solar generation – the Greenpeace/EPIA vision of 2020J. Stierstorfer, Phönix SonnenStrom/EPIA, GermanyPage 111Motivation

• Definition of the role of solar electricity for the 

generation born today as its population enters the job 
market

• Perception of solar electricity from both a consumer 

and a business point of view

• Foreword look to solar electricity in 2020 and 2040 in 
terms of installed capacity, electricity generation, jobs 
etc.

Management of solar electricity systems in distributed energy generation network
Joint Research Centre – Ispra – 27 May 2005

Aims

Highlighting the triple benefits of solar electricity 

offers to the

• European industry – not only PV industry

• Economical and social development

• Environment

Management of solar electricity systems in distributed energy generation network
Joint Research Centre – Ispra – 27 May 2005

2

Solar generation – the Greenpeace/EPIA vision of 2020J. Stierstorfer, Phönix SonnenStrom/EPIA, GermanyPage 112The Solar Electricity Market

End of 2000: 1,200 MWp – cumulative installed 
capacity of PV systems
End of 2003: 2,400 MWp– doubling since 2000 and 
equal to the capacity  two large nuclear power plants  

Shipments of solar cells: Annual growth rates at an 
average of more than 35% since 1998 – and 67% in 
2004

The PV market that it is now worth an annual
€ 5 billion

Management of solar electricity systems in distributed energy generation network
Joint Research Centre – Ispra – 27 May 2005

The Solar Race

There exists a 
close relationship between 

market promotion                industrial growth 

eventually encouraging a flourishing manufacturing 
base and export industry

Management of solar electricity systems in distributed energy generation network
Joint Research Centre – Ispra – 27 May 2005

3

Solar generation – the Greenpeace/EPIA vision of 2020J. Stierstorfer, Phönix SonnenStrom/EPIA, GermanyPage 113The Solar Race

The dividend for the winners of the race:

For the economies: 

• a new industry with sustainable job creation

For the societies and consumers:
• security of electricity supply
• diversification of electricity supply

For the environment:

• pollution free electricity generation

Management of solar electricity systems in distributed energy generation network
Joint Research Centre – Ispra – 27 May 2005

The Solar Race

Germany – one of the race horses today

Starting point: 100,000 roofs programme (1999-2003) 
with support from the Renewable Energy Law from 2000 
onwards
Results

• 345.5 MWp installed within the programme
• Total investment by customers € 1.77 billion
• Annual market volume increase from 12 MWp in 1999  

to 130 MWp in 2003 (and 360 MWp in 2004)

• Investment by the PV industry of € 1 billion

Management of solar electricity systems in distributed energy generation network
Joint Research Centre – Ispra – 27 May 2005

4

Solar generation – the Greenpeace/EPIA vision of 2020J. Stierstorfer, Phönix SonnenStrom/EPIA, GermanyPage 114The Solar Race - Germany

Influence of PV Programmes on Market Development 

400

p
W
M

350

300

250

200

150

100

1,000 roofs 
programme

50

0

EEG new

EEG old

100,000 roofs 
programme

1994

1996

1998

2000

2002

2004

Management of solar electricity systems in distributed energy generation network
Joint Research Centre – Ispra – 27 May 2005

The solar future – key results

Methodology
Assumed growth rates:
Between 26% and 32% up to 2020
15% between 2020 and 2040

Assumptions based on
Market developments over the previous years
National and regional support programmes
National targets for solar electricity capacity
Potential for PV in terms of irradiation, available roof 

space, demand for stand-alone applications

Management of solar electricity systems in distributed energy generation network
Joint Research Centre – Ispra – 27 May 2005

5

Solar generation – the Greenpeace/EPIA vision of 2020J. Stierstorfer, Phönix SonnenStrom/EPIA, GermanyPage 115The solar future – key results

2020- Solar electricity in Europe

43 GWp installed capacity

Annual market size of 8 GWp

Achieved by a 25% market growth rate until 2010
and 22.5% beyond

Management of solar electricity systems in distributed energy generation network
Joint Research Centre – Ispra – 27 May 2005

The solar future – key results

2020 – global view
The global installed capacity of solar electricity systems 
would reach 205 GWp by 2020. 

More than half of this would be in the grid-connected 
market, mainly in industrialised countries. 

In the non-industrialised world approximately 30 GWp
of solar capacity is expected to have been installed by 
2020 in the rural electrification sector.

Management of solar electricity systems in distributed energy generation network
Joint Research Centre – Ispra – 27 May 2005

6

Solar generation – the Greenpeace/EPIA vision of 2020J. Stierstorfer, Phönix SonnenStrom/EPIA, GermanyPage 116The solar future – key results

2020 – global view

Employment potential: 2.25 million full time jobs
Value of the PV markets: €108 billion per annum 
Investment in new production facilities €13.2 billion
Global solar electricity output: 282 TWh
Equal to 10% of the EU-25 electricity demand in 2020
Equal to 1.1% of the global electricity demand
Wp price for a 5kWp system: € 2 
Cumulative carbon savings: 730 million tonnes of CO2

Management of solar electricity systems in distributed energy generation network
Joint Research Centre – Ispra – 27 May 2005

The solar future – key results

2040

Global solar electricity output: 7,442 TWh

Equal to 21% of the global electricity demand

Assumtion: 15% growth rate from 2020 to 2040

Management of solar electricity systems in distributed energy generation network
Joint Research Centre – Ispra – 27 May 2005

7

Solar generation – the Greenpeace/EPIA vision of 2020J. Stierstorfer, Phönix SonnenStrom/EPIA, GermanyPage 117The solar future

Management of solar electricity systems in distributed energy generation network
Joint Research Centre – Ispra – 27 May 2005

The solar future

• The markets that are today dominated by OECD Europe and 

OECD Pacific will be diversified significantly by 2020 with larger 
shares in emerging economies and developing countries

Management of solar electricity systems in distributed energy generation network
Joint Research Centre – Ispra – 27 May 2005

8

Solar generation – the Greenpeace/EPIA vision of 2020J. Stierstorfer, Phönix SonnenStrom/EPIA, GermanyPage 118Winners and Losers

The undisputed winners in such industrial revolutions are 

the customers who have access to greater choice. 
Other winners include 
the market players who recognise the potential of such 
an expanding market
those who have committed themselves to investment 
in the sector.

•

•

Management of solar electricity systems in distributed energy generation network
Joint Research Centre – Ispra – 27 May 2005

How to win?

Premium feed-in tariff for solar electricity
The success of the German feed-in tariff model is based 

on the following features
It is simple and transparent

•
• Low administrative costs, therefore highly effective
•

It supports the installation of high quality PV products 
and therefore the European PV Industry
It is not financed by the state but by all electricity 
consumers

•

Management of solar electricity systems in distributed energy generation network
Joint Research Centre – Ispra – 27 May 2005

9

Solar generation – the Greenpeace/EPIA vision of 2020J. Stierstorfer, Phönix SonnenStrom/EPIA, GermanyPage 119Policy Recommendations

In order to supply up to a billion people with solar 
electricity by the year 2020, and go on to achieve a 
global electricity share of 21% by 2040, a major shift in 
energy policy will be needed. 

A number of key political actions are required:

Management of solar electricity systems in distributed energy generation network
Joint Research Centre – Ispra – 27 May 2005

Policy Recommendations

Firstly, the inherent barriers to the take-up of solar 
electricity - and the subsidies available to fossil and 
nuclear fuels which currently penalise renewable 
sources - must be removed.

Management of solar electricity systems in distributed energy generation network
Joint Research Centre – Ispra – 27 May 2005

10

Solar generation – the Greenpeace/EPIA vision of 2020J. Stierstorfer, Phönix SonnenStrom/EPIA, GermanyPage 120Policy Recommendations

Secondly, a variety of legally enforced mechanisms 
must be implemented which secure and accelerate the 
new market for solar electricity. Particularly in 
industrialised and emerging economies, the 
introduction or expansion of premium feed-in tariffs on 
the European level with guaranteed lifetimes must be a 
cornerstone of all future promotion mechanisms for 
solar electricity.

Management of solar electricity systems in distributed energy generation network
Joint Research Centre – Ispra – 27 May 2005

www.epia.org

Management of solar electricity systems in distributed energy generation network
Joint Research Centre – Ispra – 27 May 2005

11

Solar generation – the Greenpeace/EPIA vision of 2020J. Stierstorfer, Phönix SonnenStrom/EPIA, GermanyPage 121There are another 4.5 billion years for the use of solar 
electricity - let’s go for it now and think big!

Solar Generation – the chance for Europe!

Thank you for your attention!

Management of solar electricity systems in distributed energy generation network
Joint Research Centre – Ispra – 27 May 2005

12

Solar generation – the Greenpeace/EPIA vision of 2020J. Stierstorfer, Phönix SonnenStrom/EPIA, GermanyPage 122Management of solar electricity systems 
in distributed energy generation network

Overview of EU Policies
Overview of EU Policies
Overview of EU Policies
and Instruments for RESRES
and Instruments for
and Instruments for RES

Pietro Menna
Pietro Menna

JRC-ISPRA, 27 May 2005 
JRC-ISPRA, 27 May 2005 

Directorate General for Energy and Transport

OUTLINE
OUTLINE

• Policy drivers and EU objectives for RES 
• Legal instruments, Communications and Support 

Programmes 
– Directives

• RES-E, Improving Energy Efficiency of Buildings, Biofuels, CHP, 
End-use efficiency and energy services (in legislative process)

– Communication on RES (26 May 2004)

– Livre vert sur l’efficacité énergétique

– Support Programmes

• RTD FP: S/M term & M/L term actions

– Outcome of the calls
– Concerto

• EIE: Promotion, Market support, Trading & Certification

• Decentralized Photovoltaic Electricity

Directorate General for Energy and Transport

30-6-2005

1

Overview of the EU policies and instruments for renewable energiesP. Menna, European Commission, DG TREN, BelgiumPage 123EU ENERGY POLICY 
EU ENERGY POLICY 
PILLARS 
PILLARS 

• Competitiveness of the EU industry

• Sustainability of economic and 

social development

• Security of energy supply for its 

citizens

Directorate General for Energy and Transport

POLICY OBJECTIVES
POLICY OBJECTIVES

• RES White paper 1997:  increase share of 
RES from 6% to 12% of gross consumption 
by 2010

• Green Paper on Security of energy supply -

COM(2000)769def

• EU commitments under the Kyoto Protocol 

on reducing GHG’s emissions

• Lisbon Agenda

Directorate General for Energy and Transport

30-6-2005

2

Overview of the EU policies and instruments for renewable energiesP. Menna, European Commission, DG TREN, BelgiumPage 124Legal Instruments/1
Legal Instruments/1

• RES Electricity DIRECTIVE

(2001/77/EC)

– Establish a framework to increase the share of 

RES-E from 14% to 21% of electricity 
consumption in EU25 by 2010

– By Oct 2005, Commission to evaluate

application of support mechanisms, assess
their success and, if necessary, propose a 
Community framework support schemes for 
RES-E 

Directorate General for Energy and Transport

Legal Instruments/2
Legal Instruments/2

• Directive on Energy performance of 

buildings (2002/91/EC)

– methodology for integrated building 

energy performance standards

– takes into account on-site energy 

production, for example through the 
use of solar technologies 

– Cost effective saving potential of 20% 

Directorate General for Energy and Transport

30-6-2005

3

Overview of the EU policies and instruments for renewable energiesP. Menna, European Commission, DG TREN, BelgiumPage 12530-6-2005

Legal Instruments/3
Legal Instruments/3

• Biofuels for transport (2003/30/EC)

– Targets: 2% by 2005;  5,75% by 2010
• Cogeneration of heat and power

(2004/8/EC)

– Electricity produced from CHP to 18%

• Energy end-use efficiency

– reduce energy intensity by a further 1% per 

year (in the legislative process)

• Livre vert sur l’efficacité énergétique

(Interservice Consultation) 

– reduce energy consumption by 20% by 2020, compared to the 

ongoing trend

– launch a wide public debate

Directorate General for Energy and Transport

The Share of Renewable Energy 
The Share of Renewable Energy 
COM(2004)366 (26.5.04)
in EU COM(2004)366 (26.5.04)
in EU 

• Evaluate progress towards achieving 
national targets for 2010 for RES-E
• Conclude current progress not fast 
enough to achieve EU targets for 
2010

• Propose more action taken at MS 
level, particularly by those falling 
behind 

Directorate General for Energy and Transport

4

Overview of the EU policies and instruments for renewable energiesP. Menna, European Commission, DG TREN, BelgiumPage 126Support Programmes
Support Programmes

The 6th Framework 
Programme of the 
European Union (FP6)

Directorate General for Energy and Transport

SUSTAINABLE ENERGY 
IN FP6 (2003–2006)

• Medium and long term   (405 M€)

Emphasis on research
– Improved technologies and systems
– New and improved devices

• Short and medium term   (405 M€)

Emphasis on demonstrations
– Cost reductions
– Large scale integration into recognised supply chains
– Eco-building
– Poly-generation
– Alternative motor fuels

Directorate General for Energy and Transport

30-6-2005

5

Overview of the EU policies and instruments for renewable energiesP. Menna, European Commission, DG TREN, BelgiumPage 127Sustainable  Energy Systems
S/M Term Calls

1st call

2nd call

Publication

17.6.02

Deadline

18.3. 03

17.6.03

17.12.03

Cost effective supply

All

3rd call

22.7.04

8.12.04

All

Large scale integration
- Grid Issues

CA, SSA

CONCERTO 
I

STREP, CA, 
SSA

Eco-building

Poly-generation

IP, STRP

CONCERTO 
I

SSA

CONCERTO
I

IP, STRP, 
SSA

Alternative motor fuels

Indicative Budget

All

82

CIVITAS II

107

All

132

4th call

Jun 05

Dec 05

STREP, CA, 
SSA
CONCERTO 
II
IP, SSA

CONCERTO 
II
IP, STREP, 
SSA

CONCERTO II
IP, STREP, 
SSA

123

IP Integrated Project; STREP Specific Targeted Research Project, CA Coordination Action, 
SSA Specific Support Action

Directorate General for Energy and Transport

FP6 1stst Call PV SUPPORT
Call PV SUPPORT
FP6 1

• Launched 10 new PV projects (S/M + M/L)
• Total cost €78 M; EC contribution €42 M
– PV-MIPS to demonstrate modules with 
integrated power conversion system

• Transformer-less inverter for HV thin film module
• Two stage inverter for c-Si modules

– CRYSTAL CLEAR with final objective of 

producing c-Si modules at a cost of 1 €/Wp
– FULLSPECTRUM to develop existing concepts 

for full PV utilization of the solar spectrum

Directorate General for Energy and Transport

30-6-2005

6

Overview of the EU policies and instruments for renewable energiesP. Menna, European Commission, DG TREN, BelgiumPage 128FP6 2nd CALL THEMATIC 
FP6 2nd CALL THEMATIC 
COVERAGE
COVERAGE

• IP

– 9 Concerto proposals recommended for 

support 

– 8 Concerto proposals in the reserve list

• SSA

– 2 proposals recommended for support

Directorate General for Energy and Transport

CONCERTO Communities

31 Main Communities  (plus ~50 Follower Communities, many in new EU-10)

London
Bracknell
Milton 
Keynes

Ajaccio
Nantes
Grenoble
Lyon

Falkenberg
Vaxjo
Helsingbor
g

Trondheim

Delft
Amsterdam
Almere

Geneva

Barcelona 
San Sebastian
Zaragosa
Tudela
Vildecans

Mabjerg
Helsingo
r

Zlin

Torino

Neckarsul
m
Hannover
Stuttgart

Weiz
Gleisdorf

Directorate General for Energy and Transport

30-6-2005

7

Overview of the EU policies and instruments for renewable energiesP. Menna, European Commission, DG TREN, BelgiumPage 129RES in CONCERTO I
RES in CONCERTO I

Installed  MW

RES in CONCERTO I 
RES in CONCERTO I 
(total for  8 projects)
(total for  8 projects)

Technology
Biomass
Wind
Hydro
PV
Geothermal
RES Waste
Solar collectors

111,8
16,8
26,8
2,9
0
24,3
20,8

Total  203,6 MW
Total  203,6 MW

Directorate General for Energy and Transport

Buildings in CONCERTO I
Buildings in CONCERTO I

Type

Surface (m2)

New housing

Refurbished 
housing
New tertiary

Refurbished 
tertiary
Total

1.268.079

453.382

156.342

321.300

2.199.103

Directorate General for Energy and Transport

30-6-2005

8

Overview of the EU policies and instruments for renewable energiesP. Menna, European Commission, DG TREN, BelgiumPage 130CONCERTO I

Distribution of EC Support 

54,4

5,4

9,2

17,4

22,3

15,1

)
€
M

(

t
r
o
p
p
u
S
C
E

60

50

40

30

20

10

0

OTHER

POLY

BUILD

RES

2,2

5,3

RTD
19,5%

Demo
70,5%

Training
3%

Management
7%

*Max EC Support is 77 M€

Directorate General for Energy and Transport

CONCERTO I 
CONCERTO I 
Overall Parameters 
Overall Parameters 

Buildings (€/m²) 

RES installed (€/kW)

Conventional energy 
substituted  (GWh/year) 
€/kWh  (payback = 10 years)

7,6
105,5

530

0,01

Directorate General for Energy and Transport

30-6-2005

9

Overview of the EU policies and instruments for renewable energiesP. Menna, European Commission, DG TREN, BelgiumPage 131 
 
FP6 3rd CALL: Evaluation 
FP6 3rd CALL: Evaluation 
outcome by activity area
outcome by activity area

No. of 
Proposals

Requested EC 
contribution (M€)

Evaluated

Retained 

Evaluated
proposals

Retained
proposals 

Cost  effective  supply  of 

RES

Poly-generation

AMF

Grid 

issues 

and 

distributed 
generation

Thematic  promotion  & 

Dissemination

Total

64

32

24

11

41

172

13

7

8

3

8

39

183,6

119,3

163

18,2

36,1

520,2

44,9

27,6

72,6

3,2

8,7

157

Call for proposals n° FP6-2004-TREN-3  Deadline: 8.12.2004  All instruments

Directorate General for Energy and Transport

Priorities for 4th SMT Call
Priorities for 4th SMT Call

COST-EFFECTIVE SUPPLY OF RENEWABLE ENERGIES

•

•
•
•
•

•

Demonstrations of innovative designs of automated biomass 
heating systems 
Solar heating and cooling
Geothermal energy 
Innovative wind farms, components and design tools
Demonstrations of the next generation of PV technologies 
/products
Ocean/marine energy technologies

GRID ISSUES

•
•

Distributed generation
Large scale wind power

Directorate General for Energy and Transport

30-6-2005

10

Overview of the EU policies and instruments for renewable energiesP. Menna, European Commission, DG TREN, BelgiumPage 132Support Programmes
Support Programmes

Intelligent Energy Europe 
(EIE)

Directorate General for Energy and Transport

EIE (2003--06)06)
EIE (2003

• Intelligent Energy – Europe: Support programme

for non-technological actions in the field of 
energy efficiency and renewables

• Four sub-fields: Save, Altener, Steer, Coopener
• 1st call proposals deadline  30 April 04

– 257 proposals received 
– 86 selected for contract for 45M contribution 

• 14 Coopener, 3 Steer, 3 creation of new agencies, the balance 

Save + Altener 

• 2nd call proposals deadline  23 March 05

– Selection under way for about 220 proposals received

• 3rd call by autumn 2005

Directorate General for Energy and Transport

30-6-2005

11

Overview of the EU policies and instruments for renewable energiesP. Menna, European Commission, DG TREN, BelgiumPage 133PV Distributed Generation 
PV Distributed Generation 
Break--eveneven
Break

600 kWh/kWp

1000 

1400 

55

50

45

40

35

30

25

20

15

10

)
h
W
k
/
t
n
e
c
€
(

t
s
o
c

y
t
i
c
i
r
t
c
e
l
E

Electricity prices 
for households

Italy 

Germany

Sweden

Spain

Portugal

Denmark

5
2004

2006

2008

2010

2012

Year

2014

2016

2018

2020

Directorate General for Energy and Transport

30-6-2005

12

Overview of the EU policies and instruments for renewable energiesP. Menna, European Commission, DG TREN, BelgiumPage 134 
 
 
Conclusions 

Although the growth of photovoltaics (PV) is dramatic in recent years, this is due to the 
push of few leading countries. In many regions of the world the awareness and societal 
acceptance of the technology options has been not developed yet. Solar electricity can 
contribute  to  alleviating  the  growing  problems  of  electricity  grid  peak  loads  and  limited 
capacities  of  transmission  infrastructure.  In  the  industrial  countries,  PV  is  mistakenly 
considered as a an expensive option, though damages from blackouts or brownouts are 
in  order  of  magnitude  higher  compared  to  costs  of  preventive  measures  based  on  the 
use  of  PV.  In  remote  regions  without  electricity  grid  connection,  PV  is  already  now  a 
competitive alternative.  However, the successful large scale  integration  of solar energy 
technologies into existing energy and economic structures requires the development of 
sophisticated decision and management support systems that should be based on high 
quality  climatic,  geographic  and  socio-economic  databases  at  various  geographical 
scales. 

Long  term  monitoring  of  the  performance  of  PV  modules  indicates  that  their  lifetime  of 
more  than  20  years  has  been  achieved  and  failure  mechanisms  of  various  PV 
components  are  well  understood.  Photovoltaics  is  technology  with  large  potential  of 
further improvement both in terms of quality, reliability and also cost. In Southern Europe 
already  now,  the  cost  of  PV  electricity  from  small  systems  is  approaching  the  upper 
range of electricity prices for private customers. At the same time electricity from larger 
systems  (>1  MWp)  may  soon  be  cost-competitive  with  other  peak-load  producers.  Two 
ways  were  identified,  where  existing  technological  options  could  be  implemented  to 
further  reduce  the  cost  of  solar  electricity,  the  first  increased  lifetime  the  second 
improved system performance. 

For their PV projects, users need different solar resource information. For systems siting, 
optimising  of  the  technical  configuration  and  for  financing  and  insurance  purposes, 
reliable climatic statistics is required, based on historical data from at least 10-years time 
series.  The  data  accuracy  affects  the  success  of  the  solar  energy  project  and  the 
uncertainty  in  the  data  can  make  a  difference  between  profit  and  loss  from  the 
investment. The climate statistics are needed by decision makers to define appropriate 
support programmes that are tailored to the needs of countries and regions. Operational 
flow of hourly data is required for large-scale monitoring of PV systems and for modelling 
of  forecasts  in  the  future  energy  market.  Data  processing  has  to  be  customised  to  the 
needs  and  financial  disposition  of  various  groups  of  customers.  While  small  system 
owners  need  only  simple  and  cheap  monitoring  service,  energy  utilities  are  willing  to 
invest  into  more  complex  management  systems  for  mid  and  short-term  forecasts  of 
several  meteorological  parameters,  to  optimise  supply/demand  patterns  at  the  regional 
and continental levels. Energy service companies provide a link between data providers 
and  customers,  in  order  to  convert  data  into  customised  information,  and  in  close 
collaboration with research, to generate knowledge. 

Two broad categories of users have emerged. The first category consists of national and 
regional  authorities,  manufacturers,  education  and  research  organisation,  and  broad 
public. This group needs free access to basic information, maps, general knowledge and 
easy-to-use  tools.  The  second  group  is  already  now  willing  to  pay  for  the  customised 
information. This group is quite heterogeneous with different expectations, but in general 
it  requests  enhanced  information  with  higher  accuracy  and  resolution,  advanced 
statistics (probability distribution, extreme events, and time series) and better description 

page 135

 
of  uncertainty.  Reliable  statistics  is  requested  by  industry  and  investors  for  developing 
their  project,  by  the  banks  and  insurance  companies  for  the  audits.  A  large  group  of 
small  owners  wishes  to  pay  to  have  their  systems  monitored  to  improve  long-term 
performance.  The  contact  between  the  owners  of  small  systems  and  energy-weather 
service  providers  is  often  mediated  via  energy  service  companies.  Specific  groups  of 
users  are  energy  utilities  and  grid  operators  wishing  to  pay  more  for  energy  weather 
services rather than invest into their own monitoring and forecasting infrastructure. 

The  growth in  the  solar  energy  sector  boosts  the  demand  for  more  accurate  and  high-
quality  solar  resource  information.  To  meet  this  demand,  new  data,  algorithms  and 
derived  products  have  to  be  developed.  The  current  data  archives  suffer  from 
fragmentation, heterogeneity and missing standards. The new data satellite processing 
approaches are still not fully operational and input databases of atmospheric parameters 
are incomplete. Informatics infrastructure has to adapt for large data flows in real time. 
End-users  need  better  guidance  on  quality,  which  must  be  assessed  using 
internationally  acknowledged  standards.  Besides  solar  radiation  (and  the  atmospheric 
inputs)  the  models  also  need  other  geographical  data,  such  as  temperatures,  digital 
elevation models, population density, etc.  

In addition to the technical problems, there is a group of societal barriers, such as lack of 
public  awareness  and  conservatism  of  traditional  energy  suppliers  to  accept  the  new 
technologies. The potential customers are still not fully aware of their own needs (what 
information at what cost and accuracy). Market forces still need public support, and the 
emerging  energy  service  companies  have  to  explicitly  demonstrate  the  added  value  of 
their products. 

Satellite remote sensing in combination with ground meteorological measurements and 
other information has become an increasingly important and effective way of developing 
solar resource information over large areas. Satellite data are complementary to ground 
measurements;  they  improve  the  understanding  of  spatial  distribution  and  dynamics  of 
solar  resource.  They  contribute  to  filling  the  gaps  in  regions  with  low  density  of 
radiometric  ground  stations.  The  advantage  of  the  satellite-based  approaches  is  that 
large  areas  of  the  Earth’s  surface  can  be  monitored  at  high  spatial  and  temporal 
resolutions  using  uniform  and  consistent  methodologies  at  relatively  low  costs,  when 
compared to developing the same  information  using a ground-based network.  The use 
of satellite data in the solar energy sector leverages significant taxpayer investments in 
Earth  observation  and  weather  monitoring  satellite  technology,  offering  highly  cost-
effective products. 

A set of developed databases and tools are available to solar energy professionals and 
general public. A lot of information for free can be accessed from global internet portals, 
such  as  NASA  SSE,  Satel-Light,  PVGIS,  NREL,  WRDC,  SoDa,  SWERA,  and  others. 
However, the users face several barriers when using these sources of information. Due 
to  diversity  of  the  used  data  and  algorithms,  it  is  difficult  to  compare  or  combine 
information  from  various  sources.  Standards  and  metadata  have  to  be  developed  to 
provide  better  links  between  the  databases  and  to  improve  automated  access  by 
professional software. The interactive interface of the web portals has to be made more 
intuitive and easy to navigate. 

Information  systems  play  key  role  in  further  integration  of  solar  technology  into 
distributed  energy  generation  structures.  Geographical  information  systems  (GIS)  offer 
capacities  to  manage  and  process  spatially-distributed  data,  to  effectively  visualise 
information  and  connect  it  with  web  technology.  GIS  integrates  solar  and  climatic  data 

page 136

 
with parameters of energy technology, socioeconomic and other data, thus allowing the 
analysis of spatial interrelations of energy flows that are changing in time. As a part of a 
decision  support  system,  GIS  provides  map-based  information  needed  for  siting, 
configuration and economic appraisal and audit of the solar energy system for financing 
and insurance purposes. Monitoring of photovoltaics needs a system that manages real-
time  flow  of  spatially-distributed  data  and  processes  them  in  order  to  provide  for 
automatic  fault-detection  and  alerting.  At  the  highest  level  of  complexity  there  are 
systems  managing  distributed  energy  generation,  and 
forecasting 
component. 

include 

they 

In  the  solar  energy  sector,  the  individual  players  have  different  role,  such  as  science, 
engineering,  operators,  energy  management,  and  financial  services.  Such  rapidly 
growing  industry  as  photovoltaics  (€5.6  billion  business  in  2004,  annual  growth  more 
than  40%  worldwide  since  2000)  experiences  fast  innovation  and  development  cycles. 
Research  plays  here  a  leading  role  in  identification  of  priorities  and  coordination  of 
activities.  Short-term  support  comes  from  national  funding  and  some  international 
platforms, such as the EU Framework Programmes (FP6 and coming FP7), programmes 
of  International  Energy  Agency  (IEA),  through  the  initiative  of  the  European  Union  on 
Global  monitoring  for  Environment  and  Security  (GMES)  and  globally  within  the  Group 
on  Earth  Observation  (GEO).  Tighter  links  with  policy  makers,  industry,  renewable 
energy organizations, and electricity sector and energy service providers should valorise 
the  scientific  effort.  For  this  purpose  an  international  activity  of  experts  is  necessary, 
which  might  be  accomplished  under  the  auspices  of  the  IEA,  within  a  new  Task  36 
“Solar  Resource  Knowledge  Management”  covering  issues,  ranging  from  providing 
historic data sets, to precise current products and towards forecasts and scenarios on to 
future availability of solar energy resource in a changing climate. 

page 137

 
 
List of participants 

Turkey 
Latvia 
Czech Republic 
Cyprus 
Czech Republic 
Italy 
Italy 
Italy 
Lithuania 
Czech Republic 
Slovenia 
Croatia 
France 
Belgium 
Bulgaria 
Italy 
Hungary 
Germany 

Ersen Akdeniz 
Andra Blumberga 
Lucie Chmielova 
Ioannis Chrysis 
Martin Chudoba 
Ewan Dunlop 
Manfred Grasserbauer 
Thomas Huld 
Vladislovas Katinas 
Tomas Kukuczka 
Aleks Likovic 
Zdeslav Matic 
Didier Mayer 
Pietro Menna 
Angel Nikolaev 
Heinz Ossenbrink 
Miklos Palfy 
Robert Pfatischer 
Stanislaw M. Pietruszko  Poland 
Estonia 
Uku Pihlak 
Hungary 
Miklos Poos 
Hungary 
Silvia Rezessy 
Malta 
Anthony Sammut 
Latvia 
Peteris Shipkovs 
Slovakia 
Pavel Starinsky 
Germany 
Johannes Stierstorfer 
Italy 
Marcel Suri 
Romania 
Dan Teodoreanu 
Bulgaria 
Atanaska Toneva 

Daiva Ulbikiene 
Tadeusz Zdanowic 

Lithuania 
Poland 

TUBITAK Marmara Research Center 
Riga Technical University 
Czech RE Agency o.p.s. 
Cyprus Institute of Energy 
Solartec s.r.o. 
European Commission, DG JRC 
European Commission, DG JRC 
European Commission, DG JRC 
Lithuanian Energy Institute 
Czech RE Agency 
ApE - Energy Restructuring Agency 
Energy Institute Hrvoje Pozar 
Ecole des Mines de Paris/EUREC 
European Commission, DG TREN 
Black Sea Regional Energy Centre 
European Commission DG JRC 
Solart-System Kft. 
Meteocontrol GmbH 
Warsaw University of Technology 
Tallinn University of Technology 
Ministry of Economy and Transport 
Central European University 
Malta Resources Authority 
Institute of Physical Energetics 
Slovak Energy Agency 
Phönix SonnenStrom AG/EPIA 
European Commission DG JRC 
Research Institute for Electrical Engineering
Central Laboratory of Solar Energy and 
New Energy Sources 
Institute of Lithuanian Scientific Society 
Wroclaw University of Technology 

page 138

 
 
European Commission 

EUR 22664 EN – DG Joint Research Centre, Institute for Environment and Sustainability 

Title: Management of Solar Electricity Systems in Distributed Energy Generation Network; 
Proceedings of the Joint TAIEX – JRC Workshop 

Authors: Ewan D. Dunlop and Marcel Šúri 

Luxembourg: Office for Official Publications of the European Communities 
2006 – 138 pp. – 21 x 29.7 cm 
EUR - Scientific and Technical Research series 
ISSN 1018-5593 
ISBN: 978-92-79-04898-2 

Abstract 

This publication contains presentations and conclusions from the workshop held in JRC Ispra in 
May 2005 on solar photovoltaics and its future role in the distributed electricity generation. The 
aim  of  the  workshop  was  to  provide  a  forum  for  communication  of  the  ideas  and  initiatives 
related  to  exploitation  of  solar  energy  resource  and  effective  management  of  solar  energy 
applications  with  focus  to  photovoltaics.  In  the  introduction,  global  and  European  development 
and  perspectives  in  the  sector  of  renewable  energies  is  discussed.  Further,  a  technological 
overview of photovoltaics, including lifetime and life-cycle analysis of modules is supplemented 
by  an  analysis  of  geographical  and  temporal  variability  of  solar  energy  resource  in  Europe. 
Growth  of  manufacturing  industry  opens  new  business  opportunities  where  small  enterprises 
develop added-value energy services. The photovoltaic industry represented by EPIA has a long 
term vision of its development. This vision has to be shared by a larger group of policy makers 
that  are  responsible  for  setting  up  support  policies  and  funding  of  research  and  development 
programmes. 

 
 
 
 
 
 
 
 
The mission of the JRC is to provide customer-driven scientific and technical support for the 
conception, development, implementation and monitoring of EU policies. As a service of the 
European Commission, the JRC functions as a reference centre of science and technology 
for  the  Union.  Close  to  the  policy-making  process,  it  serves  the  common  interest  of  the 
Member States, while being independent of special interests, whether private or national. 

-

 L
B
N
A
-
2
2
6
6
4
-
E
N
N

-