Renewables Report 2013

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HYDRO EQUIPMENT ASSOCIATION Advanced technology for hydropower Hydropower is the number one source of renewable energy. HEA promotes hydropower, its position within the renewable energy mix and its public acceptance. Founded in 2001, HEA represents the interests of hydroequipment suppliers worldwide and is involved in the stakeholders dialogue on energy supply strategies, by emphasising all sustainable development aspects of hydropower. christine.van.oldeneel@thehea.org www.thehea.org


Cover image: A worker climbs a turbine of the Walney offshore wind farm near Barrow-in-Furness, Cumbria, UK. Source: Dong Energy.

Editorial

Europe is going through tough times. With the persistent crisis and general malaise, in March 2013, Eurostat estimated that over 26 million people were unemployed in the European Union. Revolve’s photo exhibition – Visualizing Energy | Renewables in Action - presents the human dimension of renewable energies by showing workers on projects across Europe. Renewables are not the only answer but they are part of the solution to achieving a cleaner future. In 2011, the renewable energy sector in Europe accounted for over 1 million full-time jobs, according to the EurObserv’ER (pages 20-21). Largely due to the targets set by the EU for 2020, renewables are one of the few sectors that avoided a downturn during the financial crisis. In fact, the crisis has led to a stabilization of both sales turnover and a growth in renewable energy jobs in Europe: between 2009-2011, some 274,000 jobs were created – a 30% increase! The European Renewable Energy Council predicts that by 2020 there will be 2.7 million people employed in renewables or more than double the 2011 figure. With the current tendency to withstand the financial crisis, this prediction could become prophecy. If the EU can consolidate a solid renewable energy policy within a single market for energy, then Europe may emerge from its crisis with the winning combination of creating more jobs and making more profit while being more sustainable. Complementary to the photo exhibition, this special report provides additional information and images to encourage citizens, regions, cities, and countries to invest in renewables across Europe. To highlight the tremendous potential for greater ‘green’ growth, this report goes from production/consumption to jobs/employment to the mini-, smart- and super-grids that are now beginning to show tangible results in increasing energy efficiency and in connecting people around Europe and beyond. Join the energy transition and start revolving!


Do you care about a clean, healthy future for people and the planet? “Seize your power” with WWF! We believe our future can, and should, be powered by nature. The energy systems put in place across the planet within the next four years will define the world’s climate change path for generations. We need to invest now in clean, renewable energy – to limit dangerous climate change, to reduce the risk to human health from fossil fuels, to fast-track access to energy, to promote economic development, and to safeguard our collective future. As the world’s third largest greenhouse gas emitter, the European Union and its 28 member countries have a crucial role to play. We call on the European institutions, European governments and European public and private financial institutions to act immediately to invest more in sustainable energy powered by wind, water and the sun. They must phase out investments in coal, oil and gas and enable a just transition from the dirty energy of today. Now more than ever Europe and the world need investment in nature, and there are good reasons to do so. We stand for a future in which humans live in harmony with nature. Investing in fossil fuels threatens the natural world and the stability of communities and society. Investing in renewable energy will support a clean, sustainable future. There must be no financial reward for environmental and human harm. We choose to invest in solutions rather than problems: join us.

Seize your power


Contents Brussels 08 | Sustainable City of Europe Evelyne Huytebroeck describes how the capital of Europe is becoming a clean urban model for others to follow. 10 | BIPV: Architecture & Renewables Introducing the integration of photovoltaics in one of the largest passive office buildings in Europe. 12 | Exemplary Buildings Green certificates and energy subsidies to encourage more renewables in ‘zeroenergy’ buildings.

Production & Consumption 28 | Made from renewables? Renewables can make a cleaner future; for now let’s look at current production and consumption.

Mini, Smart, & Super Grids JOBS & Employment 14 | Three million green jobs by 2020? Despite the crisis, renewables are resilient in Europe with tremendous potential for growth.

40 | Will Europe ever be united? More public interest and more public/private investments can connect Europe with power grids.

A WORLD YOU LIKE 25 | Q&A: Connie Hedegaard The EU Commissioner for Climate Action on green jobs, climate change and a low-carbon economy.

Images: (Left) Nicole Dirickx makes high voltage windings to connect turbines to the power grid. Source: David Plas/EWEA. (Top right) Tidal energy machine, Orkney Islands, Scotland. Source: Chris Watt. (Bottom right) Manufacturing solar panels in Prenzlau, Germany. Source: Aleo Solar.

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Rogier

Les Halles Saint-Géry September - October

Palais de Justice

Louise

A photo exhibition in Brussels - Summer/Fall 2013

Renewable energies represent an annual turnover of € 137 billion and provide over 1 million jobs in Europe. ( Source : EurObserv'ER, 2013 )

Wind Hydro Solar Biomass Geothermal Ocean

A worker climbs a turbine of the Walney offshore wind farm near Barrow in Furness, Cumbria, UK. Source: Dong Energy.

Venues: Esplanade of the European Parliament during the EU Sustainable Energy Week (June 24 - 28)  Park Cinquantenaire (July - August) Les Halles St-Géry (Sept. - October) Open Invitation to Cocktail: outside the European Parliament on 26 June 2013 from 6-8pm RSVP: info@revolve-magazine.com | +32 (0)2 353 0584

AD_REinAction_3.indd 4

04/06/13 17:14


Photo Exhibition Locations Brussels, Summer/Fall 2013

Park Cinquantenaire July - August

Esplanade of the European Parliament 24 - 28 June Opening Cocktail Reception - 26 June, 6pm Official Media Side Event:


Brussels: Sustainable City of Europe In 2010, the Brussels-Capital Region had nearly 1.1 million inhabitants and by 2020 Brussels expects an additional 143,000 inhabitants! If we want to live together in harmony and improve our quality of life, we all have to participate in building a more sustainable city. To guarantee a cleaner future, we are working to build a sustainable city that can be a model for other European cities. Brussels Region is pursuing great ambitions to reduce CO2 emissions by 30% by 2025, going beyond the European target of 20% by 2020, despite the increase in its population. Brussels Region also adopted a goal to reach 12% of green electricity by 2025. According to Brugel, the energy market regulator, this entails a 10-fold expansion of green electricity production from the 2011 level.

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Aquiris project: the Brussels-North wastewater treatment plant. Source: Yvan Glavie.

Brussels also prioritizes the nZEB (nearly Zero Energy Building) definition as “very low or nearly zero energy consumption” by setting the passive standard to become obligatory for all new buildings as of 2015 within the framework of the EPB (Energy Performance of Buildings). “Passive” refers to an energy standard that makes it possible to consume 10 times less for heating a residence and 5 times less for heating an office building. The Brussels experience shows that this pas-


sive standard is the most ambitious and most productive for energy efficiency. The EPB 2015 standard is perfectly compatible with the future nZEB 2021 standard: it suffices to add a renewable energy production facility on site or nearby - it will no longer be necessary to modify the building in order to make it more efficient. All buildings constructed in Brussels after 2015 will be ready for a 100% renewable energies future. Public authorities will set the example even earlier. Since 2010, all new public buildings must comply with the passive standard. Before imposing an energy standard within the framework of the EPB Directive, we encouraged owners to opt for this standard: since 2007, inhabitants and professionals have obtained very positive results, thanks to a premium on the investment for their passive building and due to the call for “Exemplary Building� projects. More than 520,000 m2 of exemplary buildings are either already being constructed or in the project phase in Brussels, of which around 55% are passive and 85% integrate renewable energies! The PLAGE project (Local Energy Management Actions Plan) elicits public authorities to improve the energy performances of public buildings for the environment and to reduce costs – such efforts have also generated excellent results. Thanks to our private and public actions, our energy consumption per inhabitant dropped by 21% between 2004 and 2011!

The Employment Environment Alliance is designed to prepare the construction sector for dealing successfully with the environmental and energy stakes of tomorrow. While this is a policy initiative of the Brussels-Capital Region, in practice it is being organized with building professionals thanks to public funding. We also signed an agreement with the construction sector to respect the EPB 2015 requirement and we encourage sustainable construction with training courses and free technical expertise. Sustainable construction allows for a less energy-consuming and more local economy to emerge, stimulating innovation and competitiveness. Companies see economic opportunities arise that make it possible to diversify their activities or win new customers, thus generating jobs that cannot be relocated and which are adapted to the profiles of low-skilled or unskilled job seekers in Brussels. Existing buildings present a particular challenge since substantial financial resources are required prior to retrofitting. We still need to learn how to enter into the virtuous circle where future energy bill savings will make it possible to finance renovation works today. Let us all commit to a greener future and we will go even farther together in making Brussels a sustainable city! Evelyne Huytebroeck Minister of Energy, Environment and Urban Renovation, Brussels-Capital Region 9


BIPV: Welding Architecture with Renewables The Brussels Region strongly encourages photovoltaics in its ambitious “zero-energy” policy. Building-integrated photovoltaics (BIPV) can easily be embedded in an urban environment. In 2012, a platform was launched in Brussels by EDORA (the federation of renewable energy producers) to develop BIPV and explore suitable financial support. One of the largest passive office building ­­in Europe. Source: Architect CEPEZED, BIPV Issol company. 10


In Brussels, BIPV is gradually making its appearance. Several large projects will see the light of day in 2013, including the future Brussels Environment building on the Tour&Taxis site: Demonstrating the exemplary nature of public buildings, the Brussels Environment public service will be transferred

to one of the largest passive office building in Europe with a surface area of 16,250 m2. Its “eco-center” will be open to the ­public as a reception area comprising an ­information center, a conference area, an exhibition space and a restaurant. The building will integrate BIPV into its curved structure with tailor-made black photo­voltaic modules.

Building-integrated photovoltaics (BIPV) Instead of fitting photovoltaic panels on existing buildings, photovoltaic modules or cells are integrated directly into roof coverings or certain types of glazing, for example. Serving an architectural function, these materials also serve to produce electricity.

Surface area: 700m² of PV panels Production: 88,400 kWh/year (= annual consumption of ± 30 households) Particularity: 6 rows of black curved modules

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Brussels: Exemplary “Zero Energy” Buildings In 2007, Brussels Environment launched the first “Exemplary Buildings” call for projects to show that you can renovate or construct a building with high energy performance and a reasonable budget. After five calls for projects between 2007-2012, 193 projects were chosen and subsidized for a total of €29 million. Overall, the buildings have a surface area of 522,000 m2, which represents 1 out of 5 building sites in Brussels. These buildings consume up to 10 times less energy and most of them use renewable energy, bringing them close to “zero energy” levels.

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Exemplary Building 2007, Uccle, Brussels. “Zero energy” building designed by architect Mr. G. Bedoret.

The Brussels Region supports the development of renewable energy: I. Green certificates The Region rewards efforts to cut CO2 emissions by producing ‘green’ electricity through the green certificates system. A green certificate is a sort of voucher that the producer receives for the green electricity produced which they can sell to an electricity supplier. This system ensures a reasonable return on investment time. For instance, there is a maximum of 7 years for solar panels. Currently, a green certificate is worth €85. II. Energy subsidies Besides numerous subsidies for energy efficiency in buildings, there are also subsidies for renewable energy, such as:

For more info: www.bruxellesenvironnement.be www.bruxelles-renouvelable.be

• Solar panels: up to €1/Wp (if new passive or low-energy renovated building) • Solar thermal energy: up to €3,500/4 m² (+ € 200/m² extra) • Heat pump: up to €4,750/home • Cogeneration: up to €4,500 x √power • Biomass, wind, etc.: 25% of the investment (only for the tertiary sector) 13


Jobs & Employment 14

In 2012, 5 million people worldwide were employed in the renewable energy sector. Of those, approximately 1.1 million jobs are to be found in Europe. According to the European Commission, this number has the potential to reach 3 million by 2020. Data from the OECD shows that 90% of all CO2 emissions can be attributed to 10 global industries which account for a mere 16% of total employment. In this scenario, the European Commission states that there is huge potential to develop green technologies because they can create jobs in a variety of sectors and industries – from research and development, to manufacturing and operations, to management, sales and administration.


Wave and tidal power energy, Orkney Islands, Scotland, Sept 2011. Source: Steve Morgan. 15


The Commission argues further that in the coming years there will be a shift towards demand in both high- and low-skilled labor in connection to climate adaptation measures and not only renewable energy. A simple application of the 2011 Energy Efficiency plan to increase the efficient use of energy in the 28 EU Member States (including Croatia, July 2013) is estimated to create up to 2 million new green jobs in Europe by 2020 – the potential for growth is enormous. While predictions for the future are interesting, let us look at how the renewable energy market has developed in the past few years. In Europe, Germany remains the country with the highest number of people employed in green energy – 378,800 people – followed by France with 178,400, Italy with 121,850, and Spain with 80,000. In contrast, Cyprus employs just over 1,300 people in its green energy sector, while Luxembourg accommodates 900 green jobs, and in Malta only 100 people work in green energy. Different renewable energy technologies – photovoltaic, wind, geothermal, solar and so on – employ different numbers of people depending on how much the industry is developed in a given Member State, which usually depends on the meteorological conditions and geographical positioning of the country. For example, Sweden does not employ many people on its photovoltaic (450 employed) or solar thermal (300 employed) sectors due to the limited number of days with 16

sunshine. However, Spain’s solar (20,000 employed) and wind (30,000 employed) industries are both well developed due to the country’s windy coastlines and predominantly sunny climate. The ongoing economic crisis has hit all sectors of the economy and renewable energy is no exception. Even so, Bloomberg New Energy Finance notes that Europe remains the largest investor in renewable energy assets with $101 billion in new investment

EU renewable sector employment 2010 Biomass: 273,000

Solar PV: 268,110 Wind: 253,145

Biogas: 52,810 Solar Thermal: 49,845 Source: EurObserv’ER, APEU.


Construction of solar park in Altötting/Oberkastl, Germany. Source: Windwärts Energie GmbH.

Jobs & Employment


Assembling solar thermal tube collectors in Germany. Source: Ritter Solar/ESTIF. 18


in 2012 (see graph on page 23). This is reflected in the jobs created in the sector with Germany adding some 34,000 jobs since 2009 and France 43,000 more. One of the champions of green energy job creation is Bulgaria, which added approximately 7,000 jobs and increased its green employment by 187%.

are dominating the renewable energy sector in absolute numbers in terms of employment, southern states are expanding at rapid rates. Also, while western countries are bogged down by the economic crisis and have found that consolidating jobs is just as important as creating them, eastern states have expanded their green jobs by 100% or 200%. There are a few policy aspects that need to be addressed in the EU when it comes to employment. While general job-creation is obviously preferable in times of crisis, a more targeted approach is required. In particular, youth unemployment must be addressed, and if the Member States hope to obtain the best possible outcome from the economic crisis, they should focus on the creation of green jobs for people under 25 years old. That way, the youth of today will be able to actively participate in building a more sustainable world.

The disparities between the Member States of Europe can no longer be treated in a clear-cut East-West or North-South perspective. These champions of job-creation show the positive message which the renewable energy industry wants you to hear – that despite the crisis, jobs have not been lost but created and the sector has been consolidated despite the economic slowdown. However, one of the countries hit worst by the crisis – Spain – did have nearly 3,000 jobs less in 2012 than in 2009. In the same time period, another hard-hit Member State – Italy – nearly doubled its renewable energy employment, while Greece, perhaps the country that has suffered the most due to the crisis, tripled its green jobs between 2009 and 2012.

Writer: Lubomir Mitev is energy | climate analyst at Revolve.

The disparities between the Member States of Europe can no longer be treated in a clear-cut East-West or North-South perspective. While some northern countries Jobs & Employment


Source: EurObserv’ER 2013.

Renewable Energy Jobs in Europe (2011)

Photo Voltaics

Biomass

Wind

Biofuel

Austria 4,200

18,850

3,500

2,700

Belgium 10,370

3,000

3,600

2,000

Bulgaria 3,600

3,000

3,650

100

50

500

50

6,200

350

1,900

Denmark 880

4,500

25,500

1,500

Estonia 50

2,600

650

50

Finland 50

22,450

6,400

1,400

France 45,500

20,000

62,750

29,900

Cyrpus 230 Czech Republic 1,500

Germany 48,300 Greece 22,000 Hungary 4,750 Ireland 50 Italy 55,000

130,900

23,200

2,500

550

4,600

800

1,200

600

2,000

700

10,600

30,000

8,400

Latvia 20

5,200

50

300

Lithuania 50

2,950

250

300

50

350

200

0

0

0

Luxembourg 50 Malta 50 Netherlands 2,500 Poland 100

3,150

2,800

2,500

21,800

1,600

6,450

Portugal 3,500

7,800

4,900

1,600

Romania 50

11,700

4,000

1,400

Slovakia 3,000

2,350

0

1,100

Slovenia 800

1,550

0

150

14,400

30,000

10,200

25,000

8,000

3,800

5,200

17,750

7,500

274,150

270,250

109,250

Spain 25,000 Sweden 450 United Kingdom 10,000 Total 311,930

20

101,100 2,750


Biogas

Geothermal

Solar

Waste

Small Hydro power

1,500

1,050

3,600

150

1,050

36,600

350

650

550

430

100

21,050

0

300

110

400

11,160

0

0

500

0

1,330

500

900

500

50

300

12,200

200

100

450

2,500

50

35,680

50

1,000

50

50

3,100

70

2,350

3,500

52,900 100

Total

50

4,500

250

400

34,170

8,100

3,800

2,500

178,400

14,200

14,100

6,800

7,300

378,800

100

3,700

100

1,150

250

100

100

4,000

6,150

200

550

32,250

50

400

13,300

250

50

100

3,950

4,500

950

2,250

121,850

50

50

50

350

6,300

50

100

50

50

50

50

0

0

50

1,900

2,000

500 100

150

3,900

50

50

900

0

100

1,500

4,500

200

21,050

1,000

2,150

50

950

34,600

200

1,500

300

1,750

21,650

300

100

200

50

100

250

350

100

2,000

600

50

400

18,150

50

300

7,200

150

50

450

3,600

5,000

1,300

1,500

80,000

13,000

300

2,900

1,500

55,000

3,200

1,700

700

1,720

1,000

48,770

70,950

51,300

48,680

26,000

24,050

1,186,460

Jobs & Employment


Estimated jobs in renewable energy worldwide, by industry

---

152

273

---

---

889

47-160

151

90

85

---

---

53

---

---

---

10

53

Others

90

58

Spain

Geothermal

266

Germany

230

EU

1,500

Biogas

USA

Biofuels

Brazil

750

India

Biomass

China

Technologies:

Global

(in thousand of jobs)

51

14

2

23

2

194

51

1.4

---

14

0.6

---

Hydropower (Small)

40

---

12

---

8

16

7

1.6

1

Solar PV

820

300

112

---

82

268

111

28

60

GSP

40

---

---

---

9

---

2

24

---

Solar Heating/ Cooling

900

800

41

---

9

50

12

10

1

Wind Power Total

670

150

42

14

75

253

101

55

33

5,000

1,606

350

889

392-505

1,117

372

137

291

Source: Renewables 2012 Global Status Report, REN21 . 22


New Investment in Renewable Energy in Europe 2010

92.3

2011

101

($ billions)

2004

18.6

2005

27.7

2009

2006

37.4

2007

57.8

2008

67.1 67.9

Source: Bloomberg New Energy Finance (BNEF). 23


International Renewable Energy Storage Conference

EUROSOLAR

The European Association for Renewable Energy

8 th International Renewable Energy Storage Conference and Exhibition (IRES 2013) November 18 – 20, 2013 Berliner Congress Center, Berlin/Germany

t io n R e g ist ra e n ! p is n ow o

Lead partners:

In co-operation with:

Media partners:

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Online registration and further information: www.energystorageconference.org


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Q&A:

Connie Hedegaard EU Commissioner for Climate Action For Europe, cheap is not the answer; quality and innovation are. How are you and the European Union involved in the battle against climate change? It’s quite simple: we base ourselves and our work on the scientific consensus – and that demands urgent action to prevent climate change reaching dangerous levels. We have put in place a series of policy measures like our cap-and-trade system, the emissions trading system, and we improved energy efficiency, we increased renewable energy, restricted fluorinated gases, and set standards for appliances, cars, building codes, and so on. We are also making sure that climate change is not forgotten when other policies are decided – for example in the agricultural sector. EU heads of states have proven that they will continue the good work, when they agreed that 20% of the next EU budget should be spent on projects and policies to reduce CO2 emissions in Europe. 26

Connie Hedegaard. Source: European Commision.

As a result, in the European Union we have succeeded in cutting our greenhouse gas emissions by almost 18% from 1990 levels while at the same time increasing our GDP


by 48%. Considering that we promised to reduce by 20% in 2020, this is a good balance, don’t you think? And because we see that our policies and targets work, we are now in the process of considering targets for 2030. Not just for the climate – this means going in the right direction for our future economy and pointing investors in the right direction. How can the low-carbon economy benefit the individual citizen? Our transition to a low-carbon economy will affect many aspects of life for everybody. Think less traffic jams resulting in better air quality and more public transport and bikes, which again will lead to lower health costs because people will be healthier. It also means saving the amount of

cially for their energy bills. Climate change is linked to extreme weather events such as heat waves and floods which we can already notice in some European regions. They pose a direct risk to the health and safety of people with the very young, the elderly, the disabled and low-income households particularly vulnerable. If the fight against climate change and the transition to a low-carbon society are successful, people will see the difference! How important are green jobs to the EU’s climate targets? When it comes to climate targets, green jobs are a symbol of the transformation of our society to a low-carbon society. This will affect many sectors of our lives, and the working environment is just part of that.

If EU leaders hesitate to take action on climate change, they will be sabotaging their own economy’s prospects for sustainable recovery. money we pay every year for oil, gas and coal imports: we are talking about €573 billion last year that we paid to someone outside the EU, instead of spending it on our own economy. In the same year, our combined trade deficit in the 27 EU member states was €150 billion. If instead we would focus on increasing energy efficiency and renewable energy sources in the EU, this would make a big difference for each citizen, and espe-

The green economy has also been identified by the European Commission as one of the three main sectors that can generate a substantial number of new jobs, together with ICT and health. These are very important findings at a time when more than 25 million men and women across the EU are without a job. In Europe, more than 300,000 new jobs were created in the renewables sector in just five years; and it is estimated that meeting the EU’s 2020 climate and energy goals would result in another 1.5 million new jobs. 27


Production & Consumption 28

The development, investment and installation of renewable technology promises to bring many benefits to the European Union: reduced dependence on foreign supplies of fuel, diversification of energy production sources, jobcreation and reduction of greenhouse gas emissions. However, the ongoing economic crisis in Europe was thought to have slammed the breaks on the renewable project. And yet, while oil, gas, coal and nuclear are still the preferred fuels for the EU energy sector, renewables are mounting an attack on that dominant position. There is a misconception when it comes to production and consumption data in the EU. The 2020 target is for 20% of Europe’s energy consumption to come from renewable sources. In 2010, the Member States were well underway to achieve this with a consumption of 12.5% of total energy coming from renewables. Simultaneously, 20% of primary energy production was renewable in the same year. The confusion is due to how the UN defines production: “the quantity of fuels which are extracted or produced”. Some examples will help shed light on the world of energy production and consumption:


The largest coastal wind farm in Europe, installed capacity of 600 MW, Fantanele-Cogealac, Romania. Source: CEZ. 29


The Old Guard European renewable energies are growing and now contribute a fifth of total EU energy production. Of the total primary energy produced in the 27 Member States in 2010, 28% came from nuclear power, 20% was renewable energy, 19% came from solid fuels, and another 19% from

natural gas, while crude oil accounted for only 12%. This data concerns the production of primary fuels, which means that out of the total energy extracted by the EU in 2010, 19% was in the form of natural gas. But the EU imports most of its gas, with several Member States relying 100% on

The general trend in the last 10 years is a growing transition to a low-carbon economy.

Hydropower plant in Obermaubach, Germany. Source: RWE. 30


imports from outside Europe. Therefore, the consumption statistics account for both the fuels produced within the EU and the imported ones, giving a more realistic depiction of the situation. The data shows that the ‘old guard’ of fossil fuels and nuclear energy still dominate Europe’s energy mix, but the general trend in the last 10 years is a growing transition to a low-carbon economy. One sign of this is that the total primary energy production has decreased by 110 million tons of oil equivalent (Mtoe) in the Member States between 2000 and 2010 – slightly less than Germany’s total production for a year. The biggest decline is accounted for by crude oil (-43%), while natural gas (-25%) and solid fuels (-24%) also experienced a drop in the production of primary energy. This shows the onset problems in Europe – reserves of conventional energy products have dried up and the Member States

have had to replace them with imported fuel from outside the EU. Nuclear power has held its ground with a 3% decrease, which is expected to change in the coming decade when Germany will decommission all of its power plants and other countries are also expected to shut-down several stations. The problem is highlighted by an everincreasing dependence on foreign supplied energy products. In 2010, the total amount of primary energy produced in the EU-27 was 831 Mtoe and the total gross amount of consumed energy was 1,759 Mtoe. The difference of 927 Mtoe is the EU’s imports of energy products and is the amount referred to by the term ‘import dependency’. It is equal to approximately 53% of total consumption, which means that the Member States rely on foreign countries for more than half of their energy resources.

The Wind of Change There have been many changes to the energy landscape on the European continent since 2000. The lack of a single European market for electricity has made it difficult for the Member States to connect their energy infrastructure and different standards still prevail. In terms of production and consumption, the EU-27 vary greatly in the resources available to them.

Still, several examples will highlight recent developments in the EU energy sector. The most shocking case is that of the United Kingdom which saw a decrease of its output of energy by more than 50% in the period between 2000 and 2010, but still remains Europe’s biggest energy producer. This drop is explained by the UK Production & Consumption


Department of Energy & Climate Change which reports that 2000 was a record year for the country in terms of energy production, after which many fields of oil and gas were exhausted. It now produces slightly more primary energy than the continent’s second largest producer – Germany.

renewables is biomass and waste, which account for a little over 67% of primary renewable energy production, followed by hydropower (19%) and wind (8%).

There have been protests against the use of biomass, especially wood, for largescale energy production due to the disapMore significantly, the UK has moved from pearance of wooded land and forests. In being a net exporter to a net importer of fact, some reports indicate that there is a primary energy, making it reliant on other net increase in CO2 emissions due to the countries for its energy security, while the reduced number of trees which can take only country in the European Union which in the greenhouse gas, than from the use remains a net exporter of primary energy of wood as a renewable source of energy. is Denmark. But in terms of consumption, It is expected that subsidies for this renewable sector will be significantly reduced and biomass will remain Renewable energy has been experiencing only on a small scale.

a constant increase in production since the beginning of the 21st century.

the UK has not changed so dramatically – its gross inland consumption fell by 8% between 2000 and 2010 to a level significantly lower than that of Germany and France. This is a move in the right direction as less consumption means less imports required to keep the economy running. Renewable energy has been experiencing a constant increase in production since the beginning of the 21st century. In the EU-27, renewables production increased by 72% in the first decade of the new millennium – an average cumulative increase of 5.6% per year. The most important source of 32

A closer look at the 27 Member States shows that Germany produced the biggest amount of renewable energy in 2010, followed by France and Sweden. Germany’s renewable energy production accounted for only 25% of the country’s total. In other cases, renewables production made up 99% of the total primary energy produced in Latvia, 97% in Portugal, and 92% in Cyprus. Yet, the renewable energy consumed in the same year is 32% in Latvia, 25% in Portugal and 5% in Cyprus. This difference is because of the high levels of energy imports in these states.


Smøla wind farm, Norway. Source: Statkraft. Production & Consumption


Geothermal Power Station, Iceland. Source: Rafn Sigurbjรถrnsson. 34


Renewable Politics Renewable energy comes second to nuclear power in primary energy production in Europe, making it one of the most important resources for the continent’s future. The past decade has shown the EU’s weak spot through two disputes between Russia and Ukraine over natural gas deliveries

supplier uncertainty about their investments in production and whether the export of resources will be repaid by importing countries. It highlights that changes in the EU energy policy has strong repercussions for its economic policy as well.

An increase in renewable energy production will have similar Renewable energy comes second effects. Domestically produced to nuclear power in primary energy electricity without less dependence on imported fuel will production in Europe. decrease the need to import gas and oil. This will change the EU’s which led to shortages and cuts in supply relationship with its current supplier counto European countries in 2006 and again in tries as demand for fossil fuels dries up and 2009. The former is the EU’s biggest natu- states such as Russia and Saudi Arabia no ral gas supplier and the latter has major longer have a say in European foreign relapipeline routes to Europe on its territory. tions. Geo-politically, this will cause a big The two Gas Crises highlighted the vulner- shift in international relations – a shift away ability of the Member States to disruptions from the status quo established during the in obtaining their energy supplies and have oil crises of the 1970s. The newly created spurred legislation in favor of renewables European External Action Service will have to decrease this vulnerability. to be ready to deal with such shifts. The Internal Energy Market, if implemented, will threaten Russia’s dominant position in the internal market by creating conditions for greater competition and diversification of supply. The adoption of legal provisions for the entrance of a range of suppliers from third countries is the first step towards diversification and reduction of Russian supremacy on the EU energy market, and subsequently in foreign relations. This threatens EU-Russia relations by creating

Writer: Lubomir Mitev is energy | climate analyst at Revolve.

Production & Consumption


Sources: European Commission 2008, Eurostat 2012.

(Final consumption of renewable energy in EU Member States)

Europe’s 2020 renewable energy targets 36

Member States

2005

2010

2020

Austria

23.3%

30.1%

34%

Belgium

2.2%

5.1%

13%

Bulgaria

9.4%

13.8%

16%

Cyprus

2.9%

4.8%

13%

Czech Republic

6.1%

9.2%

20

Denmark

17.0%

22.2%

30%

Estonia

18.0%

24.3%

25%

Finland

28.5%

32.2%

38%

France

10.3%

12.9%

23%

Germany

5.8%

11%

18%

Greece

6.9%

9.2%

18%

Hungary

4.3%

8.7%

13%

Ireland

7.2%

14.8%

40%

Italy

5.2%

10.1%

17%

Latvia

34.9%

32.6%

42%


Member States

2005

2010

2020

Lithuania

15.0%

19.7%

23%

Luxembourg

0.9%

2.8%

11%

Malta

0.0%

0.4%

10%

Netherlands

2.4%

3.8%

14%

Poland

7.2%

9.4%

15%

Portugal

20.5%

24.6%

31%

Romania

17.8%

23.4%

24%

Slovakia

6.7%

9.8%

14%

Slovenia

16.0%

19.8%

25%

Spain

8.7%

13.8%

20%

Sweden

39.8%

47.9%

49%

United Kingdom

1.3%

3.2%

15%

EU-27

8.5%

12.5%

20%

----

14.6%

13%

+ Croatia

Production & Consumption


Mini, Smart & Super Grids 38

Europe’s electricity demand is expected to double or triple by 2050 while the European Union (EU) has committed to reduce its greenhouse gas emissions by 85-90%. To realize a single energy market by 2014, Europe needs to organize and rationalize its various energy transmission systems into an integrated transnational network. This new system should allow an efficient use of electricity obtained from various renewable sources and regulated through a grid system consisting of mini-, smart- and super-grids. Mini-grids can appear in a great variety of systems including single localities or even single isolated buildings that could potentially make consumers into producers as well. Smart-grids will play a crucial role in improving the energy efficiency and in reducing carbon emissions of towns and cities. On the pan-European level, the supergrid concept can upgrade existing grids making them more homo­ genous, thus enabling and balancing the distribution of electricity to meet demand across Europe.


Subsea cables for the Meerwind farm project, connecting turbines to the land, JDR Cables Hartepool, UK. Source: Steve Morgan. 39


Mini-Grids Mini-grids are a set of electricity generators and energy storage systems, interconnected to a distribution network that supplies the entire electricity demand of a localized group of customers. They can operate independently without being connected to a centralized grid. A mini-grid can be designed to connect with a central grid on regional or national levels and effectively operate as part of it; or it can be disconnected in case of a failure in the central grid that could affect power quality. Mini-grids can also operate autonomously in remote locations until new infrastructure enables a connection to the central grid. This option could be particularly suited for developing countries which lack infra-

structures or a well-connected electricity network. Small villages in rural areas that are rich in solar, small hydro, wind or biomass resources could gain energy autonomy and eventually could feed power into smart-grids to generate income as well as electricity. Mini-grids are well-suited for providing electrification for rural areas as well as single buildings. A characteristic of mini-grids is the variety in which they appear. Different countries have different standards for implementation and for the technologies used. A small village could rely on a combination of solar panels, micro turbines, fuel cells, energy efficiency and information/ communication technology to manage electricity and make sure the lights stay on.

The same could be applied on an even smaller scale with single houses with solar panels on their roofs, for example, that can use the In The Third Industrial Revolution, Jeremy energy for their own electricity Rifkin claims it is time to establish an “energy and sell excess energy into the internet” based on renewable energy that will larger rural network. A farm follow the same development path as the Intercan transform part of its agrinet which caused a revolution in communication cultural yields into biofuels or by connecting people from all over the world, biomass that can also become enabling them to share information and knowlenergy to be used for its own edge at the click of a button. In the same way, needs or become part of the millions of individual small-scale energy mini-grid network. Individual local producers could share their electricity consumers can become producers in a common network and store and sell energy units into the growing it for future use. grid networks.

The “Energy Internet”

40


“Our network infrastructure needs to undergo an ambitious program of modernization, including a number of elements for the integration of renewables.” - Günther Oettinger, EU Energy Commissioner

Air collectors for cooling installation in Freiburg, Germany. Source: Fraunhofer ISE/ESTIF. Mini, Smart, & Super Grids


Smart-Grids For transmission and distribution of energy on a local and a European level to occur efficiently, smart-grids are needed. According to the U.S. Department of Energy, a smart-grid “generally refers to a class of technology people are using to bring utility electricity delivery systems into the 21st century, using computerbased remote control and automation”. The aim of smart-grid techno­ logy is to improve the production and distribution of electricity on the levels of efficiency, reliability, sustainability and economics. Smart-grids have benefits including improved inter-connections between power networks, more visibility and control over energy utilization and the possibility to manage renewable energy sources, thus permitting a more efficient use of the latter and contributing to shift to a more low-carbon society and energy-consuming society. An example for advanced types of control for electricity grids could be smart electricity meters that show real-time use and costs, allowing big energy users to switch off or reduce their consumption when given a signal from the grid operator, and avoid high power prices.

privacy (use of data by law enforcement), complexity of tax systems that could be less clear thus allowing the supplier to take advantage of the costumer. There are also concerns among utilities that the effectiveness of the smart-grid could be reduced by apathy and lack of engagement on the costumer’s side. Except for evoking environmental concerns, utilities are unable to establish closer relations with costumers and better manage peak energy demand.

Despite obvious advantages, smart-grid systems are criticized and face opposition over concerns related to consumer

On the pan-European level, the EU’s ambitious plan to provide smart meters to 80% of households in 2020 is not proceeding

42

HVDC cable. Source: Prysmian /FOSG.


as well as expected. In 2006, Italy was the first to complete a national smart meter with utility ENEL that reduced nontechnical losses for its 30 million customers; the Scandinavian countries currently lead the way and by 2016 targets could be achieved by Denmark, Norway and Finland, while Sweden already achieved theirs in 2010. However, other European countries are experiencing more difficulties in adopting smart metering programs. Recent examples of diffusing smart-grids include: the United Kingdom’s plans to begin installing smart meters in 2014, with the intention to cover all households by 2019; in Italy, NEC Italia (a subsidiary of NEC Europe) and Acea Spa (a utility serving the Rome metropolitan area) agreed in December 2012 to develop innovative lithium-ion battery storage systems to be implemented in Acea’s primary and secondary power sub-stations. NEC will provide two energy storage systems to support Acea’s smart-grid project.

Promoted by the Strategic Energy Technologies Information System (SETIS) of the European Commission, the Smart Cities initiative aims to reduce carbon emissions by 40% by 2020 and includes 25 large cities ( > 500,000 inhabitants) and 5 larger cities ( > 1,000,000) with the goal of making living standards more sustainable in growing urban areas across Europe. According to a 2011 Greenpeace report, “Battle of the Grids”, Europe should support smart-grids by developing technologies and by optimizing existing infrastructure over the construction of new power lines by using “dynamic power line rating” or by replacing existing lines with new transmission technologies. Smart-grid systems play a crucial role in the development and functioning of the pan-European electricity network and cannot be ignored if Europe wants to reach high results in obtaining electricity from renewable sources and decreasing its dependence on fossil fuels in the next decades.

The Super-Grid The pan-European “Super-Grid” has tremendous potential for inter-connecting Europe to meet growing energy demand and for connecting Europe with neighboring regions to ensure energy security. Electricity grids will no longer be confined to national borders. Energy from renewable sources will be transmitted via high voltage direct

current (HVDC) cables over land and under water. From geothermal energy in Iceland, to onshore wind power in Ireland to offshore wind power in the UK to wave energy in Scotland to solar energy in Spain, even from the sun collected in North Africa via cables under the Mediterranean Sea… Europe is becoming intertwined by a massive grid. Mini, Smart, & Super Grids


The largest super-grid projects are the offshore wind farms in the North Seas, partially to avoid the “Not-In-My-Backyard” (NIMBY) opposition but mainly because winds are less intermittent out at sea providing stronger and more continuous energy. Southern Europe’s solar energy potential is also tremendous. Further south, the German-initiative DESERTEC aims to collect solar energy from North Africa and export 80% of that energy to Europe. The French-project MEDGRID aims to create a Euro-Mediterranean electricity network that would generate 20 GW by 20202025; 5 GW of which would purportedly go to Europe. Harnessing wind and solar power in the North Seas and across the

Supergrid concept map. Source: FOSG. 44

Mediterranean can help wean Europe and its neighbors off of fossil fuel dependence. The advantage of using HVDC over alternating current (AC) to establish the supersmart-grid is the higher cost effectiveness of HVDC over long distances. Linking European national grids with one another through HVDC cables has become economically feasible and is being encouraged by policy-makers and industries to make the ‘green’ energy transition while delivering electricity efficiently to meet demand. Opening the European electricity market to competition can reduce prices and favor low-emissions energy sources. Consumers will benefit from less expensive electricity from diverse renewable energy sources from different countries. HDVC cables are not just about connecting islands and continents to Europe. In Germany, HVDC lines will bring electricity to the industrial south which will face power depletions after nuclear power plants are closed. Germany aspires to generate 35% of its total electricity from renewable energy sources by 2020. Other regional electricity hubs will emerge in geographic areas that can easily transmit energy, such as in Spain, Italy and Ireland, where technology, location and resources in renewables can help boost GDP and create jobs. The ultimate


The Supergrid is “a pan-European transmission network facilitating the integration of large-scale renewable energy and the balancing and transportation of electricity, with the aim of improving the European market.� - Friends of the Supergrid (FOSG)

North Sea offshore wind farm. Source: FOSG. Mini, Smart, & Super Grids


success of the “Super-Grid” project requires stronger political support, a stable regulatory framework and international coordination. Just as the internet connects individuals via networks, grids will give consumers the ability to become producers, sharing and selling energy back to suppliers. Minigrid technologies will make rural areas more self-sufficient. Smart-grids will make urban areas more integrated. Super-grids will inter-connect countries and continents.

The potential is tremendous for more investments, more returns, more jobs, greener growth and more sustainable lives. While fossils fuels, natural resources, and nuclear energy will continue to be part of the energy mix, the real energy transition is about increasing our reliance on renewable energies to achieve both economic and environmental benefits. Writer: Edoardo De Silva is energy assistant at Revolve.

Ireland’s “Energy Bridge” Ireland’s 2020 target is to increase its current generation of electricity from 18% to 40% of renewables. The UK relies on only 8% and will not meet its 30% target for 2020. The “energy bridge” provides an ideal opportunity for Ireland to become an energy exporter with potential returns of €2.5 billion per year by 2020. The “energy bridge” will capture onshore and offshore wind power from Ireland, transport it under the Irish Sea via HVDC cables, and transmit it to the UK via a grid connection. Phase one of the “energy bridge” will deliver 1,200 MW of onshore wind energy by 2017, potentially 5 GW by 2020. When British energy demand is met, then surplus electricity could go on to mainland Europe. 46



Š Istockphoto / Nicolas Loran

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