Niels I. Meyer

European schemes for promoting renewables in liberalised markets

Abstract The paper describes possibilities and problems for penetration of supply systems based on renewable energy sources in liberalised markets. The analysis is based on recent development in EU with different models for support of installations based on renewable energy. These include feed-in models with guaranteed minimum tariffs, tender models for different bands of technologies, and green certificates trading models with obligatory consumer quota. The paper describes the market situation in selected European countries, including Germany, the UK, Holland and Denmark. An EU directive from September 2001 has postponed the decision on a possible harmonisation of promotional models until at least 2005 in order to obtain more practical experience with the different support schemes. A critical evaluation is given in this paper of the different models with proposals for a balanced development between environmental and trading concerns. It is argued that too much emphasis is presently given to the side of free trade at the expense of long range planning for a sustainable energy development.

Danish energy reform: policy implications for renewables

Abstract For decades, renewables have been promoted in Denmark by the feed-in model (fixed price scheme) with favourable tariffs for green electricity. This has resulted in successful penetration of wind power covering more than 13% of Danish electricity consumption (2001). Changing the promotional scheme to a quota-based system with tradable green certificates has been on the political agenda since 1999. This article discusses Danish energy policy with focus on the implications for the penetration and deployment of renewables. It has turned out to be more complicated than anticipated to create an efficient operational system for trade in green certificates, and the starting date for trading has been postponed several times. The national green certificates market was to be fully operational by the beginning of 2003, however, political negotiations in the fall of 2001 seem to postpone the initiation of the certificate market until 2005. Transitional rules for green electricity during the period from 2003 to 2005 are under negotiation after a national election in November 2001. This situation has created widespread uncertainty among potential investors in green electricity. The article evaluates a number of problems related to the shift in Danish energy policy.

Promoting electricity from renewable energy sources -- lessons learned from the EU, U.S. and Japan

Promoting electricity from renewable energy sources – lessons learned from the EU, U.S. and Japan Reinhard Haas 1 , Niels I. Meyer 2 , Anne Held 3 , Dominique Finon 4 , Arturo Lorenzoni 5 , Ryan Wiser 6 , Ken-ichiro Nishio 7 Energy Economics Group, Vienna University of Technology, Gusshausstrasse 27-29/373-2, A-1040 Vienna, AUSTRIA, Tel. ++43-1-58801-37352, Fax. ++43-1-58801-37397 E-mail: Reinhard.Haas@tuwien.ac.at BYG, Technical University of Denmark, Brovej building 118 DK-2800 Kgs. Lyngby, DENMARK Tel.: ++45 45 25 17 00 E-mail: nim@byg.dtu.dk Fraunhofer Institute for Systems and Innovation Research, Breslauer Str. 48; 76139 Karlsruhe, GERMANY Tel. ++49-721-6809-358, Fax ++49-689-152, E-mail: Anne.Held@isi.fhg.de CIRED (Centre International de Recherche pour l’Environnement et le Developpement), 32 avenue de la Belle Gabrielle, 94736 Nogent sur Marne, FRANCE Affiliation: Ecole des Hautes Etudes en Sciences sociales et Centre National de la Recherche Scientifique, Tel. ++33 1 4394 7384; Fax: ++33 1 4394 7370; E-mail: finon@centre-cired.fr IEFE, Bocconi University, Viale Filippetti 9, 20122 Milan, ITALY Tel: ++39-02-5836 3820, Fax ++39-02-5836-3890 E-mail: arturo.lorenzoni@unibocconi.it Lawrence Berkeley National Lab 1 Cyclotron Road, MS 90-4000, Berkeley, CA 94720 Tel: ++510-486-5474, Fax: ++510-486-6996 E-Mail: rhwiser@lbl.gov Central Research Institute of Electric Power Industry, 2-11-1 Iwado Kita, Komae-shi, Tokyo 201-8511, Japan Tel: ++81 3 3480 2111, Fax: ++81 3 3480 3492 E-Mail: nishio@criepi.denken.or.jp

Danish wind power development

Denmark has a long tradition of wind power development dating back to the 1890s. This provided a professional basis for the introduction of wind power in Denmark during the first two decades of this century and later during the Second World War. That phase of Danish wind power development culminated with the 200 kW Gedser mill operating from 1959 to 1967 with great reliability. After the oil crisis in 1973, a new phase of Danish wind power development was initiated. Using the basic concept from the Gedser mill, a government-sponsored programme has led to a strong commercial development of Danish wind turbines. In the late seventies, typical Danish turbines had power ratings around 20 kW. Today, 500 to 600 kW turbines are commercially available. As of early 1995 more than 500 MW of wind electric capacity is installed in Denmark, covering about 3.5% of Danish electricity demand. The official target is to cover 10% of electricity demand by the year 2005. The corresponding installed capacity would amount to 1300 to 1500 MW. Recently, growing local opposition to the Danish wind programme has delayed the development toward the official target for 2005. The Danish government is now taking new initiatives in order to overcome this barrier, including increased pressure on municipalities and development of new offshore sites for wind farms. Another barrier may be introduced by a single energy market in the EU which does not fully incorporate externalities in the market price. Long-range coverage of more than 25% of Danish electricity demand by wind is a realistic goal, especially if a close coupling with Norwegian hydropower can be established.

Development of Danish Wind Power Market

The modern phase of Danish wind power started after the oil crisis in 1973. Based on long traditions of Danish wind power dating back to the beginning of the century a new commercial phase was initiated by small industrial entrepreneurs with support by the Danish government, the Danish Academy of Technical Sciences and green organizations. During the eighties technological development resulted in increased cost efficiency, while the investment subsidies from the state were gradually phased out. Conflicts between utilities and wind power producers over tariffs and the costs of grid connections, then slowed down the penetration of wind power on the Danish market. In addition, many local municipalities were setting up administrative barriers for wind turbines. These barriers were removed by government intervention in the early nineties when favourable feed-in tariffs were introduced together with easy access to the grid, simple procedures for construction allowances and priority to green electricity. As a result wind power was booming in the Danish home market and Danish turbines achieved a global market share of around 50%. After a change of government in December 2001, however the Danish home market for wind power has more or less collapsed.

Alternative Danish energy planning

Abstract In the spring of 1976 the Danish government published an energy plan for Denmark for the period up to 1995. An essential part of this plan was the introduction of five nuclear power plants in the Danish supply system. An alternative energy plan which excluded nuclear power was later published by a group of Danish scientists. It includes a relatively extended application of solar and wind energy, and also emphasises the use of decentralised fossil fuel plants with combined power production and district heating. This paper describes the main features and data of the alternative Danish energy plan and compares it with the official government plan.

Influence of government policy on the promotion of wind power

This paper analyses the influence of government policy on the promotion of wind power in different countries in Europe with focus on the development in Denmark. It is concluded that government policy has had a decisive effect on wind power implementation in the first phase of the modern wind power development. The modern Danish wind energy project was initiated in the early 1970s and was supported by the Danish government from the mid-1970s. In spite of opposition from the Danish utilities the Danish wind energy programme was successful, mainly due to both the governmental and popular support. This development culminated by the end of the 1990s, when new policies were introduced in connection with liberalisation of the European energy market. At that time, wind power was covering around 14% of Danish electricity consumption increasing to about 19% in 2004. However, during the period from 2002 to 2005, the Danish national expansion of wind power has tended to stagnate due to a radical shift in policies for renewables after a change of the government in November 2001.

Joint implementation: methodology and policy considerations

Abstract The focus of the present paper is on joint implementation (JI) projects between countries in Western and Eastern Europe and especially on the problems of constructing credible references (baselines). A number of the present EU countries are anticipated to have severe problems in meeting their greenhouse gas reduction commitments and they have already announced that they shall take advantage of JI in this connection. As stated in the Kyoto Protocol, JI emission reductions must be real and measurable. However, in most cases the reductions obtained by a JI project do not occur at the project site but elsewhere in the energy system. Therefore, when a number of JI projects are implemented concurrently and other changes in the energy system take place over time, there is no way to measure the reductions obtained by individual projects. Because the emission reduction obtained is a property of the entire energy system, it cannot be estimated a priori on the basis of a project baseline alone. A baseline must refer to the national energy system of which the project is a part. It is argued in this paper that baselines should be derived from national energy systems databases and models, which serve to ensure that JI projects effectively contribute to the fulfillment of the Kyoto Protocol objectives. In addition, they should provide governments with comprehensive energy information systems needed to address long-term climate mitigation and energy demand and supply issues in a rational, least-cost manner. Compared to other climate mitigation costs and the costs of failure to meet the Kyoto commitments the costs involved in the preparation of the databases needed and the implementation of systems analysis and documentation programs will be small. If these costs are carried by national governments, the investors in JI projects will benefit from lower transaction costs.

Energy and environment: Nordic energy scenarios for 2010 and 2030

The concept of a sustainable energy sector has received wide attention since the publication of the Brundtland Report in 1987. This paper analyses the possibilities of establishing by 2010 and 2030 an energy system in the Nordic countries which prevents the critical loads of NOx and SO2 respectively on the most vulnerable Nordic ecological systems being exceeded. In addition, the present concentration of CO2 in the atmosphere should not be significantly exceeded within a time horizon to around 2050. Different scenarios have been investigated in order to analyse the scope for attaining such a sustainable energy development within the limits of existing technologies and known potentials of renewable energy sources. Data on the technologies are available in a special catalogue.

Equity, Economic Growth, and Lifestyle

Publisher Summary This chapter presents proposals for new strategic thinking to overcome present barriers and promote efficient mitigation schemes. It mainly summarizes a new economic paradigm with less attention to GDP and more attention to sustainability and welfare is needed. This involves, among other things, a shift in the present balance between societal planning and commercial market principles to the advantage of long-range planning. Economic science should give high priority to the development of market constructs that lead to sustainable development. The level of the global population is an important factor in relation to global warming. Thus, regulation of birth rates should not be a taboo subject. The chapter also defines the lack of economic and social equity, which is a serious barrier for sustainable development. More equity globally and within nations is needed. Limits to growth on a finite planet should be recognized. It is necessary to change the institutional market conditions in which households are embedded.