Hungary

The majority of Hungary's existing DE capacity is in the form of district heating applications, though many have already reached theend of their life. Many promising policies have recentlybeen adopted in Hungary, yet it remains to be seen how successful they will prove for increasing investment in DE. Hungary still has the lowest target for renewable energy of all the European Union member states. Hungary's accession to the EU will continue to prove the most important driving force in energy policy (Table 2.17).

DE in general Large-scale cogeneration Domestic cogeneration

Wind

Hydro

DE in general

Large-scale cogeneration

Domestic cogeneration Onsite PV

Onsite wind Small hydro

DE in general Renewables in general

Technical

All DE systems are guaranteed "nondiscriminatory" access to the grid A European standard for micro-cogeneration is currently being drafted under the auspices of Cenelec technical committee TC8X WG2, and coordinated by the Dutch National Standards Body, NEN. It will be based on the CEN Workshop Agreement CWA 14642

Financial

All DE is guaranteed to be purchased by the utility. The rates depend on technology. In addition, distributed technologies are awarded an extra amount depending on what voltage level they are interconnected to: low voltage = 2.13 €/MWh, medium voltage = 0.90 €/MWh, and high voltage = 0.66 €/MWh The State Program to Support Energy Saving and Use of Renewable and Secondary Sources was established in 1991 to develop efficiency including cogeneration. The program is still going and includes education programs and training. In 2000, the Czech parliament passed a law (458/2000 Coll.) requiring all boilers above a certain to be cogeneration. Chapter IV of a 2001 law (Act on Energy Management of the Czech Republic No. 406/2000) deals specifically with cogeneration and undertakes some measures to promote it.b Ministerial Decree (No. 252/2001 Coll.) of 2001 also provided a framework for power administration and tariff structures for cogeneration and renewables. The decree at that time required network owners to purchase power from cogeneration plants, but the tariff was not set but had to be negotiated. Heat had also to be purchased under the decree Utilities must purchase electricity generated from cogeneration units. The EU

cogeneration directive has been implemented in the new energy law of January 1, 2005. The new law guarantees a tariff for only surplus power from cogeneration, in other words an amount of power equal to onsite loads cannot be fed into the grid. The regulatory authority (ERU) decides what is a reasonable load for the cogeneration facility and then any surplus earns the feed-in rate. This, in part, guarantees a better price from cogeneration-generated electricity. Purchase price different for up to 1 MW and between 1 and 5 MW capacity and can be on a single price per 24 h/day basis or a different price for 8 h and the rest of the day. This law is expected to evolve in the near future EU emissions trading scheme will have an uncertain effect on cogeneration investment In theory, domestic cogeneration would fall under 1 MW category and therefore receive a higher guaranteed price A feed-in tariff of 201 € /MWh" is guaranteed for PV power in the Czech Republic. Tax breaks and grant program for private systems up to 2 kWp and legal entities up to 20 kWp systems0

A feed-in tariff of 86 €/MWh is guaranteed for wind power in the Czech Republic" A feed-in tariff of 68 €/MWh is guaranteed for small hydro power in the Czech Republic"

Other

March/April 2005 law passed to promote renewables. Sets out an 8% target of total gross consumption by 2010. Guarantees 15 years of feed-in tariff for renewables, a premium for green electricity will also be paid. Prices are not set in law but are to be determined by the Energy Regulatory office.d The Lawe has been approved by the senate but does not yet have a number and will not come into effect until it has been endorsed by the president. Currently, the utility CEZ holds about two-thirds of the generation market in the republic and also owns a majority stake in six out of the eight existing distribution companies. The government owned CEPS operates the transmission system

TABLE 2.14 (Continued)

As a whole, European policy calls for 12% of energy and 21% of electricity supply from renewables by 2010 including 1,000,000 PV systems, 10,000 MW wind and 10,000 MW biomassf

At Bonn Czech Republic committed to the development of a Renewable Energy Plan® Large-scale cogeneration EU has a goal to double cogeneration use by 2010

The Czech Republic is bound by the EU cogeneration Directive 2004/8/EC which states that member states are obliged to address key market barriers such as ensuring grid access for cogeneration. The directive also states that in order for cogeneration to be considered high efficiency, it must provide an energy saving of at least 10% compared to separate production of heat and power. Harmonized efficiency reference values are to be released no later than February 2006. The directive further states that member states must establish guarantee of origin standards no less than 6 months after the harmonized reference values are released Domestic cogeneration EU cogeneration directive

PV Wind Hydro a Position of DE and cogeneration in the Czech Market. Former, Present and Future. Josef Jelecek Cogen Europe Conference 2005.

b IEA energy efficiency database: http://www.iea.org/textbase/pamsdb/detail.aspx?mode = ee&id = 218 c Jager-Waldau, A., Ossenbrink, H., Scholz, H., Bloem, H., and Werring, L. 2004. JRC Ispra & DG TREN, 19th European Photovoltaic Solar Energy Conference and Exhibition, Paris, June 2004. d http://www.edie.net/news/news_story.asp?id = 9710&channel = 6 e Podpora vyroby elektrriny z obnovitelnych zdroju energie.

Directive 2001/77/EC of the European Parliament and of the Council of 27 September 2001 on the promotion of electricity produced from renewable energy sources in the internal electricity market. Energy for the Future: Renewable Sources of Energy White Paper for a Community Strategy and Action Plan COM(97)599 final (26/11/1997).

s Renewables 2004. International Conference for Renewable Energies, 1-4 June 2004, Bonn. Conference Report: Outcomes and Documentation—Political Declaration/International Action Programme/Policy Recommendations for Renewable Energies.

A community strategy to promote combined heat and power (CHP) and to dismantle barriers to its development. European Commission Communique COM (97) 514 final.

TABLE 2.15 Danish Distributed Generation Policy by Technology and Type

Technical

DE in general

Large-scale cogeneration

Domestic cogeneration A European standard for micro-cogeneration is currently being drafted under the auspices of Cenelec technical committee TC8X WG2, and coordinated by the Dutch National Standards Body, NEN. It will be based on the CEN Workshop Agreement CWA 14642

Wind

Hydro

Financial

DE in general Denmark established the first feed-in law requiring utilities to buy electricity from onsite renewable generators at a set price in 1999." A separate program, the Energy Research Program, supports actual implementation of innovative energy projects by providing grants for up to 100% of project cost. Projects involving oil and natural gas, environmentally benign heat and power production, wind, green buildings, solar energy, and energy efficiency are eligible source IEA database. Net metering is in affect for small onsite power systems, and the policy is to be reviewed in 2006"

TABLE 2.15 (Continued)

Large-scale cogeneration

Domestic cogeneration Onsite PV Onsite wind

Small hydro DE in general

Large-scale cogeneration

Domestic cogeneration PV

A state subsidy for small cogeneration was introduced in 1992 for all plants fueled by waste incineration, natural gas, and renewables. At the start of the program, the tariff was 10 ore/kWh but was subsequently reduced to 7 ore/kWh, for all but plants smaller than 3 MWb

Denmark has recently updated the way it provides incentive for CHP. Whereas before distribution companies were obligated to purchase all power from CHP facilities via a feed-in tariff, the feed-in tariff has been phased out with the 2005 market reforms to better reflect free market principles. Now, CHP plants are guaranteed the right to sell power to the grid but only if they can find interested buyers.0 CHP plant operators are then awarded a fixed subsidy (1 €ct/kWh) per month based on a 20 operating life. Higher level of support for installations using biomass and biogas. Plants of more than 20 MW are eligible for EU C02 quotas as of 2005. In response to the EU Emissions Trading Directive and the Cogeneration Directive, Denmark has allocated allowances based on historic production for electricity: 1.68 X125/3 = 70 allowances For heat = 20 allowances; total per year = 90 allowances.0 This has the effect of making CHP more economically attractive

Denmark has for some time encouraged wind cooperatives with its "wind energy cooperative tax incentive." Benefits of the program include tax exemption for the first €400 in a year and 60% of the regular rate for anything thereafter. New windmills are guaranteed a fixed settlement price (feed-in tariff) of DKK 0.33/kWh for the first 22,000 full-load hours, about 10 years

Energy liberalization began in 1996 in Denmark and was as of 2003, all electricity customers are free to choose their supplier." Denmark's overall goal is to increase its share of renewables from 8% in 1996 to 30% in 2025." Municipal waste and geothermal energy receive special mention in the plan. Denmark has introduced a demand-side RPS meaning that all customers must source at least 20% of their electricity from certified renewables sources." The system awards producers "green certificate" for every unit of electricity they generate using renewable resources and all renewable electricity is guaranteed a set feed-in price. As a whole, European policy calls for 12% of energy and 21% of electricity supply from renewables by 2010, including 1,000,000 PV systems, 10,000 MW wind, and 10,000 MW biomassd

Other

The Danish Energy Authority, and two main utilities have developed a research and development strategy for a range of renewable energies, including fuel cells, biomass, wind energy, and photovoltaics. Strategies for biofuels, wave energy, hydrogen, and system integration are being developed13

The 1988 Heat Supply Act encourages renewable fueled district heating using by prohibiting electric heating in specified residential areas'3

EU has a goal to double cogeneration use by 2010e

Denmark is bound by the EU cogeneration Directive 2004/8/EC which states that member states are obliged to address key market barriers, such as ensuring grid access for cogeneration. The directive also states that in order for cogeneration to be considered high efficiency, it must provide an energy saving of at least 10% compared to separate production of heat and power. Harmonized efficiency reference values are to be released no later than February 2006. The directive further states that member states must establish guarantee of origin standards no less than 6 months after the harmonized reference values are released

In 1993, the Danish government established a goal of 75 PJ of biomass energy by 2000 (what equaled approximately 10% of total energy demand). The objectives were not met, but were reconfirmed in 2000 to include a feed-in tariff of DKK 0.30/kWh for 10 years

A program has been established, funded by a carbon tax on electricity, which pays up to 40% of the total cost of a PV system, including materials cost and installation"

TABLE 2.15 (Continued)

Wind The Danish "Agreement on wind turbines" agreed in 1996 set a goal of 200 MWof non utility owned wind capacity and an additional 1500 MW owned by private and public utilities.®* The goal was met 5 years ahead of schedule and the wind market remains strong

Hydro a Policy Review of Renewable Energy Sources and Energy Efficiency in the European Union and its Member States, June 2005. Reference #EuropeAid/116832/D/G/Multi.

b IEA policy database: http://www.iea.org/textbase/pamsdb/search.aspx?mode = re c Supporting Clean Heat and Power on the Internal Energy Market, Jesper Lorentzen. The Danish Energy Authority, Cogen Europe 2005.

Directive 2001/77/EC of the European Parliament and of the Council of 27 September 2001 on the promotion of electricity produced from renewable energy sources in the internal electricity market. Energy for the Future: Renewable Sources of Energy White Paper for a Community Strategy and Action Plan COM(97)599 final (26/11/1997).

e A community strategy to promote combined heat and power (CHP) and to dismantle barriers to its development. European Commission Communique COM (97) 514 final.

TABLE 2.16 German Distributed Generation Policy by Technology and Type

DE in general

Large-scale cogeneration Domestic cogeneration

PV Wind Hydro Biomass

DE in general

Large-scale cogeneration

Domestic cogeneration Renewables in general

Technical

The Federal Ministry of Education and Research heads up a program aimed at integrating DE successfully into networks." Federal states also undertake their own research funding

A European standard for micro-cogeneration is currently being drafted under the auspices of Cenelec technical committee TC8X WG2, and coordinated by the Dutch National Standards Body, NEN. It will be based on the CEN Workshop Agreement CWA 14642

Germany is also developing their own regulations for the installation of micro-cogeneration

Financial

A green tax introduced in 1999 increased the price of fuel oil, natural gas, gasoline/diesel, and electrical power (including renewables) every year between 1999 and 2003a

Incentives exist for municipal cogeneration and sub 2 MWe cogeneration plants.b A law was passed in 2001 which provide a financial bonus on top of feed-in tariffs to preexisting CHP plants and new plants under 2 MW capacity.0 In Germany, CHP plants are exempt from certain fuel taxes, including the "ecotax" and mineral oil tax and the environmental tax for biofuels in heating.0 There is a special feed-in rate set for CHP in Germany, including a premium payment incrementally decreasing overtime. There is also an additional bonus for biomass fired CHP. In addition, there is an investment subsidy for biomass fired plants.0 The EU Emissions trading scheme will have an uncertain effect on cogeneration investment

Germany's 1991 "Electricity Feed-In Law (EFL)" required utilities to purchase electricity generated by renewable-energy systems with a fixed tariff. For wind and PV the tariffs were set to 90% of average electricity retail prices and adjusted every year according to price changes. In 2000 the EFL was replaced by the Renewable Energy ACT (REA), a system of guaranteed 20-year production incentives for renewables based on the cost of the type of system and its operation. So far, the tariff has benefited mostly wind and PV but biomass is also to benefit from the tariff

TABLE 2.16 (Continued)

Onsite PV

Onsite wind Small hydro

DE in general

Large-scale cogeneration

Domestic cogeneration

Wind

Hydro

Feed-in rate guaranteed for 20 years. The feed-in tariff for PV in Germany began at 0.51 €/kWhin 2000 and 2001 and is decreasing annually by 5% (it was 0.457 €/kWh in 2003).d There are additional feed-in benefits for PV applications that are building integrated or used as Sound barriers of more than 0.1 €/kWh.e The 100,000 solar roofs initiative of the Federal government was launched in 1999 and ended in 2003, the program provided soft loans for grid-connected systems Feed-in rate currently 6-9 €ct/kWh Feed-in rate set at 6.6-7.7 € ct/kWh

Other

The German government has played a lead role in the renewable energy policy network, an international policy network arising from the Bonn 2004 renewable energy conference.5 Disclosure law states that all generators must state generation portfolio, including cogeneration and renewables. A target of 25% of electricity from wind by 2025 has been set, and another half of its total energy needs met via renewables by 2050. Germany plans to close all 19 of the country's nuclear-power plants by around 2025. The renewable energy law states that twice as much electricity must be generated by renewable sources by 2010 than in 2000 (i.e., about 12.5% compared to about 6.3% in 2000)"

As a whole, European policy calls for 12% of energy and 21% of electricity supply from renewables by 2010 including 1,000,000 PV systems, 10,000 MW wind, and 10,000 MW biomass®

During the process of electricity market restructuring in Germany, the main goal with respect to CHP was to maintain the existing capacity and renovate existing plant. Although Germany has more CHP than any other European nation very few policy incentives exist for new plant. EU has a goal to double cogeneration use by 2010. In 1999, Germany established a quota system initially requiring 10% of total electricity production to come from CHP increasing to 20% Germany is bound by the EU cogeneration Directive 2004/8/EC, which states that member states are obliged to address key market barriers, such as ensuring grid access for cogeneration. The directive also states that in order for cogeneration to be considered high efficiency, it must provide an energy saving of at least 10% compared to separate production of heat and power. Harmonized efficiency reference values are to be released no later than February 2006. The directive further states that member states must establish guarantee of origin standards no less than 6 months after the harmonized reference values are released

At the 2004 renewable energy conference in Bonn, Germany announced its Mini-Hydro Programme1

a http://www.oja-services.nl/iea-pvps/countries/germany/index.htm b WADE World Survey for Decentralized Energy 2005, p. 18.

c Cogen Europe. International Benchmarking Report on the Status of CHP in other EU Member States. August 2004.

http://www.oja-services.nl/iea-pvps/countries/germany/index.htm e Jager-Waldau, A., Ossenbrink, H., Scholz, H., Bloem, H., and Werring, L. 2004. JRC Ispra & DG TREN, 19th European Photovoltaic Solar Energy Conference and Exhibition, Paris, June 2004.

f Anniversary of renewables 2004. Status of the Implementation of the Conference Results. BMU. s Directive 2001/77/EC of the European Parliament and of the Council of 27 September 2001 on the promotion of electricity produced from renewable energy sources in the internal electricity market. Energy for the Future: Renewable Sources of Energy White Paper for a Community Strategy and Action Plan COM(97)599 final (26/11/1997).

h A community strategy to promote combined heat and power (CHP) and to dismantle barriers to its development. European Commission Communique COM (97) 514 final.

1 Renewables 2004. International Conference for Renewable Energies, 1-4 June 2004, Bonn. Conference Report: Outcomes and Documentation—Political Declaration/International Action Programme/Policy Recommendations for Renewable Energies.

Technical

DE in general

Large-scale cogeneration

Domestic cogeneration

Wind

Hydro

DE in general

Large-scale cogeneration

Domestic cogeneration

Onsite PV Onsite wind Small hydro

DE in general

Large-scale cogeneration

Financial

The 2001 Electricity Act established feed-in tariffs for renewable generators more than 100 kW capacity. There is a fixed feed-in tariff of 0.1/0.062 €/kWh for all technologies though it is adjusted annually for inflation. If the project connects at the transmission level, the major generator (MVM) pays the tariff whereas the local wires owner pays if the project is connected at the distribution level. Subsidies also exist for renewable projects.®* The Ministry of Economy and Transport's Szechenyi Plan provides grants for renewable energy projects up to 30% of the total project cost. The grants are available through competitive bids and have an upper limit for project size.b The Environment Protection and Infrastructure Operational Programme also makes grants for renewable energy projects

In January 2003, a feed-in tariff was established for power generated from cogeneration facilities between 100 kW and 50 MW with an efficiency of more than 65% (Economy and Transport Ministry order 56/2002-29.XII).b For gas engines, the efficiency must be higher than 75%. EU emissions trading scheme will have an uncertain effect on cogeneration investment

The SZT-LA 2 Programme13 which provides grants to improve the energy efficiency of residential buildings could in theory apply to micro-cogeneration investments

Other

In 1999, the Hungarian government implemented a wide range of policy reforms under the title Hungarian Energy Policy Principles.0 The main thrust of the reforms was to create competitive gas and electricity markets in order to meet EU directives and increase energy security and reliability. DE was also identified as desirable in the policy for its environmental benefits. As a whole, European policy calls for 12% of energy and 21% of electricity supply from renewables by 2010 including 1,000,000 PV systems, 10,000 MW wind, and 10,000 MW biomassb Hungary has a national indicative target of 3.6% by 2010; there is also a government goal of increasing the percentage to 7% by the same year. The Energy Saving and Energy Efficiency Action Programme, established in 1999 also sets concrete goals of increasing renewable energy production from 28 PJ/year (in 1999) to 50 PJ/year, the plan focuses on biomass, waste, geothermal, and solar.b Hungary is a signatory of the Kyoto protocol and committed to reduce its carbon emissions by 6% by 2012

EU has a goal to double cogeneration use by 2010d

Hungary is bound by the EU cogeneration Directive 2004/8/EC which states that member states are obliged to address key market barriers, such as ensuring grid access for cogeneration. The directive also states that in order for cogeneration to be considered high efficiency, it must provide an energy saving of at least 10% compared to separate production of heat and power. Harmonized efficiency reference values are to be released no later than February 2006. The directive further states that member states must establish guarantee of origin standards no less than 6 months after the harmonized reference values are released

TABLE 2.17 (Continued)

Domestic cogeneration

Wind

Hydro

" Jager-Waldau, A., Ossenbrink, H., Scholz, H., Bloem, H., and Werring, L. 2004. JRC Ispra & DG TREN, 19th European Photovoltaic Solar Energy Conference and Exhibition, Paris, June 2004.

Directive 2001/77/EC of the European Parliament and of the Council of 27 September 2001 on the promotion of electricity produced from renewable energy sources in the internal electricity market. Energy for the Future: Renewable Sources of Energy White Paper for a Community Strategy and Action Plan COM(97)599 final (26/11/1997).

c Policy Review of Renewable Energy Sources and Energy Efficiency in the European Union and its Member States, June 2005. Reference #EuropeAid/116832/D/G/Multi.

d A community strategy to promote combined heat and power (CHP) and to dismantle barriers to its development. European Commission Communique COM (97) 514 final.

Renewable Energy Eco Friendly

Renewable Energy Eco Friendly

Renewable energy is energy that is generated from sunlight, rain, tides, geothermal heat and wind. These sources are naturally and constantly replenished, which is why they are deemed as renewable.

Get My Free Ebook


Post a comment