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Priorities for renewable energy in Lithuania. Actual measures and empty slogans

Priorities for renewable energy in Lithuania. Actual measures and empty slogans Martynas Nagevičius President of the Lithuanian Confederation of Renewable Resources martynas@nagevicius.lt. Content of the presentation. Renewable energy in Lithuania in figures

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Priorities for renewable energy in Lithuania. Actual measures and empty slogans

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  1. Priorities for renewable energy in Lithuania. Actual measures and empty slogans Martynas NagevičiusPresident of the Lithuanian Confederation of Renewable Resources martynas@nagevicius.lt

  2. Content of the presentation • Renewable energy in Lithuania in figures • The problem of attitudes towards renewable energy • Assessment of the current situation - opportunities • Proposals

  3. Renewable energy in Lithuania in Figures

  4. Green electricity ELECTRICITY FROM RENEWABLE SOURCES IN LITHUANIA EXPORTED TO THE GRID (kWh) In 2013, 1.42 TWh of green electricity (around 13% of the total finalconsumption) was exported to the grid: Wind power stations: 0.60TWh Hydropower plants: 0.51TWh Biofuel power plants: 0.22TWh Solar power plants: 0.04TWh Biogas power plants: 0.04TWh SOLAR BIOGAS BIOFUEL WIND HYDRO (SMALL) HYDRO (BIG)

  5. Green heat HEAT FROM RENEWABLE SOURCES IN LITHUANIA, SUPPLIED TO THE DISTRICT HEATING NETWORK (kWh) In 2013, around 3 TWh of green heatwas supplied to the districtheating network (around 33% of the entire heat supplied) Around 6.5 TWh of heatwas used for individual heating by households (around 68% of all heat) Around 0.15 TWh of green heatwasconsumed for individual heating by non-household consumers (around 14%)

  6. New producers of technologies

  7. A lot or too little? Enough to claim that renewableenergy has ALREADY become one of the most important energy sectors in Lithuania (surpassed only by oil and natural gas) Too little, if weighed against the unused potential

  8. THE Problem OF ATTITUDES TOWARDS Renewable energy

  9. Public opinion Public opinion survey by Eurobarometer, conducted in 2013 What should be the focus of energy policy? (it was possible to choose up to two alternatives) 10% other fossil resources shale gas CO2 capture and storage nuclear energy energy efficiency renewable energy resources 10% 7% 15% 25% 53%

  10. Programme of the Fifteenth Government of the Republic of Lithuania • In 2009, to review and launch the programme of diversification of our urban heating sector. The implementation of the programme shall allow the increase of co-generation of urban heating and electricity from biofuel; • To support EU initiatives and propose new initiatives promoting the use of low-emission renewable resources; • To implement the National Energy Strategy aiming at maximum, viable and sound use of local and renewable sources of primary energy; • The governmental energy policy priority – to begin using renewable and local sources for heat and electricity production as widely and rapidly as possible, whilst simultaneously reducing the consumption of imported gas and oil products; • To remove all the barriers that are within our control to the construction of wind energy parks, especially in the Baltic Sea and coastal region. Andrius Kubilius (Interview for the Frankfurter Allgemeine Zeitung, October, 2012): “Germany is rich. It can afford higher energy prices. Alternative energy costs more than nuclear power. Furthermore, our resources are limited ….”

  11. Programme of the SixteenthGovernmentof the Republic of Lithuania • Organic agriculture, green transport, renewable energy sources, modern biotechnologies and nanotechnologies are the elements that will encourage Lithuania‘s progress and shape a new path towards a green economy and energy of the future; • CRITICAL GOVERNMENT PRIORITY – the use of renewable sources of energy; • To become a part of the ongoing third global energy revolution that entails transition from fossil fuels to the world‘s future energy system – i.e. the use of energy from renewable sources; • National energy policy should give priority to competitive energy generation from local renewable resources and to the use of renewable energy sources to produce energy and heat; • ....

  12. Average lifetime Levelised Cost of Electricity (LCOE) (US dollars/MWh) Lithuanian market price Onshore wind power stations Off-shore wind power stations Solar power plants Biomass power plants Hydropower plants Nuclear power plants Natural gas and coal fired plants World Energy Council (WEC) and Bloomberg New Energy Finance (BNEF) "World Energy Perspective: Cost of Energy Technologies“ (US dollars/MWh) http://www.worldenergy.org/wp-content/uploads/2013/09/WEC_J1143_CostofTECHNOLOGIES_021013_WEB_Final.pdf

  13. The need for the development of renewable energy – two attitudes “Scandinavian” “Lithuanian” Something that is dictated by the EU Non-compliance will be sanctioned • Creation of green jobs; • Money spent on energy feeds back into the national economy and will ultimately contribute to the budget; • Reduces the cost of any future energy crises; • Drives the production and increasing sophistication of technologies; • Decreases the future costs of climate change

  14. The need for the development of renewable energy – two attitudes “Scandinavian” “Lithuanian” Something that is dictated by the EU Non-compliance will be sanctioned • Creation of green jobs • Money spent on energy feeds back into the national economy and will ultimately contribute to the budget • Reduces the cost of any future energy crises • Drives the production and increasing sophistication of technologies • Decreases the future costs of climate change.

  15. Optimisation of renewable energy development – two attitudes “Scandinavian” “Lithuanian” How can the requirements of EU directives be implemented with the lowest possible increase in electricity prices (and the lowest state subsidies)? • What scale and method of renewable energy development is necessary for it to be of greatest macroeconomic benefit to the economy? Lithuania’s behaviour is often similar to that of a bad chess player who will not sacrifice a pawn to win the entire game.

  16. ASSESSMENT OF THE CURRENT SITUATION - OPPORTUNITIES

  17. Biomass energy (solid biomass) • Construction of power plants using biofuel and municipal waste in Vilnius and Kaunas: • with LTL2.3 billion of investment • and a one-off investment subsidy of LTL0.7 billion or annual public service obligations (PSO) costs of around LTL100-140 million for 12 years • would result in additional production of: • 2.8 TWh of heat from biofuel(in such a scenario, the total amount of heat from biofuel would account for about 70% of the entire heat supplied to district heating network) • 1.4 TWh of green electricity

  18. Biomass energy (biogas - biomethane) • Construction of 200 biogas and biomethane plants in the agricultural, municipal and industrial sectors: • with LTL1.9 billion of investment • would result in additional production of: • about 320 million nm3 of biogas • or 160MW = 1.28 TWh of greenelectricity (Information from the Lithuanian Biogas Association)

  19. Wind power • An increase in the total capacity of onshore wind power stations to 850 MW: • with LTL2.8 billion of investment • with a necessary subsidy of LTL800 millionor annual PSO costs ranging from LTL75 million (where market price is 20 ct/kW) to LTL163 million (where market price is 15 ct/kWh) for 12 years • would result in additional production of: • 1.75 TWh of green electricity (compared to 2013) (Data supplied by 4-energy)

  20. Solar power • Even without any change in PSO costs and with a net metering system introduced, it would be possible to generate up to an additional 0.2TWh of green electricity.

  21. Hydro energy • There has so far been no debate on the possibility of building a hydropower plant on the Nėris River upstream from Vilnius in order to form an artificial lake as a security barrier that could stop the flow of radioactive materials in the event of an accident in Ostrovets nuclear plant.

  22. Conclusions regarding the current situation • Living in “times of change” • Old (failed) support schemes have been destroyed without creating new ones • Greatest obstacles: • Indecision regarding state nuclear energy • Indecision regarding reduction of dependency on imports • Slow administration • Predominant focus on strategic projects • Temptations of “nationalisation” • Lack of political will (“Lithuanian attitude” towards renewable energy)

  23. PROPOSALS

  24. To focus the planning of the development of renewable energy on its macroeconomic benefits (adopting the “Scandinavian attitude”) • To consult experts and develop a framework for supporting renewable energy, based on principles that would remain unchanged for at least 5 years • To support the development and production of green technologies in parallel with the development of renewable energy in Lithuania

  25. Recent events in Crimea – will they lead to a more rapid development of renewable resources?

  26. Thank you for your attention! Martynas Nagevičiusmartynas@nagevicius.lt

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