Renewable energy investment opportunity:
- Realizing new projects in hydro, solar and wind energy sector. Getting the concession and different operate licenses;
HOW MUCH DOES RENEWABLE ENERGY COST?There is a debate raging about the final cost of a renewable energy project.According to information on the energy market, the figures below are not exact and will depend on the terms of access to land for developers in Romania – but this is a rough estimate:- Wind: EUR 1.7 million per installed MW for a wind project, about 70% the investment goes into the turbine. The remaining costs include buying or leasing the land and the maintenance costs;
- Solar: greatly reduced from EUR 3 million per installed MW in 2010, to 1.5 million per installed MW in 2012;
- Hydro: up to EUR 2.5 million per installed MW;
- Biomass: EUR 2.5 million per installed MW.
- Buying already existing projects from the investors which want to exit from the project;
- Buying already existing projects from the banks;
- Upgrading of already existing projects;
- Creating a PPP between investor and municipality to use EU funds for sustainable development. In this way the subsidiary is about 70% of the project for solar and wind parks up to 10MW install power and up to 5 MW hydro power projects;
- Creating a PPP between investor and Government to development sustainable opportunities, where the investor develops and finances the complete project. There are several Greenfield Projects regionally that are possible. These can be available through standard BOT ( Build operate transfer ) schemes.
IN THE LAST DECADE IN THE RENEWABLE ENERGY SECTOR OF THE COUNTRIES OF SOUTHEASTERN EUROPE ARE INVESTED 9 BILLION EUROS.
The use of renewable sources, together with rational use of energy is an important driver of sustainable development, while ensuring the achievement of the objectives of security of energy supply and reduce dependence on sudden changes in oil prices, helping to reduce the trade imbalance and stimulate the creation of new jobs.
The SEE countries are actively involved in international efforts to prevent climate change by adopting the agreed objectives of the European Union and wide-ranging package of measures in the field of energy. These measures give a new boost to energy security in Europe and support the European “20-20-20” targets. The widespread use of renewable sources and the introduction of measures energy efficiency are among the priorities in the energy policy of the countries correspond with the objectives of the new energy Policy for Europe.
European Bank for Reconstruction and Development (EBRD) plans to fund projects for 3.0 billion euro ($ 3.9 billion). Southeast Europe (SEE) in the next two years.
Several countries of South East Europe (SEE) belong to the Energy Community in which they have to submit the National Renewable Energy Action Plans (NREAPs). NREAPs outline the scenarios and policies the countries intend to pursue to meet binding targets for renewable energy sources (RES) by 2020. This paper presents countries’ renewable energy targets, NREAPs, scenarios for energy demand and RES expansion, policies and measures in place to promote RES, and the plans for regional and international cooperation in this field. It shows that the countries are mainly planning to invest in the technologies with which they already have experience with, mainly hydropower. Only a few countries have decided to invest in generation from wind or solar photovoltaics (PV) despite a huge potential in the region. International initiatives to spread the knowledge about renewable generating technologies, policies, funding opportunities and best practices are thus of high importance.
Introduction: Status Quo in Regional Energy Systems
In cooperation with the European Union, the Western Balkan countries (Albania, Bosnia and Herzegovina, Croatia, Kosovo, Former Yugoslav Republic of Macedonia, Montenegro, Serbia and Slovenia), as well as Bulgaria and Romania, have signed the Energy Community Treaty of 2005. Moldova and Ukraine joined the Energy Community in 2010 and 2011 respectively. Slovenia (2004), Bulgaria (2007), Romania (2007) and Croatia (2013) have joined the EU, and the other signatories aspire to do so. In October 2012, the Ministerial Council of the Energy Community adopted the EU’s Renewable Energy Directive 2009/28/EC (RES Directive), and its Contracting Parties committed to binding renewable energy targets by 2020. In 2013, the parties are to introduce National Renewable Energy Action Plans (NREAPs) which will commit them to attain higher shares of energy from renewable sources in gross final energy consumption by 2020. This background paper summarizes key aspects of the NREAPs.
A massive and complex subsidy system for fossil fuels has led some countries in the region to plan a significant expansion of electricity generation from coal and impedes a more diversified energy production mix including renewables such as hydropower, solar and wind. Key elements of the region’s energy infrastructure, such as major thermal power plants, were built in the 1960s and 1970s. This concentration in age and type of technology, combined with inadequate maintenance in the 1990s, is now creating serious technical and policy challenges. There is an urgent need for widespread rehabilitation and replacement of the aging infrastructure (IEA, 2011). The split up of Yugoslavia that led to a fragmentation of the former common energy system in the Western Balkans, and the subsequent lack of cooperation led to inefficiencies and high costs. Also, some markets are particularly affected by low efficiency and the constant risk of technical failure. At the same time, there are significant differences across the region in terms of total primary energy supply, energy mix, volumes of domestic energy production, and energy import dependence (IEA, 2011).
JEOPARDIES:
In the countries of South-eastern Europe (SEE) recent introduction of incentive systems for renewable energy coincided with the financial crisis and financing of renewable energy projects is hindered not only by the limited availability of capital and liquidity, and by uncertainty in the legal system, currency risks other risks in the countries concerned, risks to network access and even environmental risks.
The region faces several major common energy challenges:
- Significant dependence on oil and coal for electricity generation;
- Consequent environmental impacts from carbon and other emissions;
- Consequent high dependency on oil and gas imports, leading to strategic risks;
- High energy intensity of the economy;
- Under-development of the renewable energy sector;
- Lack of electricity and gas market integration;
- Limited electricity transmission capacity across the region and with the EU.
Countries
The renewable energy technologies are at different stages of development. Geothermal and solar energy have been widely studied and utilised whereas wind power has virtually no installed capacity at all except for water pumping. Small hydro installations have been installed over many years but the overall capacity is still quite low.
Biomass has an enormous installed capacity in the domestic, agricultural and industrial sectors but reliable data on the precise amount is very difficult to find. This section considers in brief the present status of renewable energy technologies and their installed capacities. Solar thermal water heating. There are 50000 m2 plane collectors installed largely in hotels for catering and some process heating such as bottle washing. Passive solar design. There is only one example of a passive solar house. From monitoring of this house for a one month period it was found that the passive solar contribution was 30 % of the load. There is clearly a good potential for passive solar heating given the good solar resource and the large heating demand. Solar photovoltaics (PV).
The Solar Energy Laboratory of the Bulgarian Academy of Sciences has designed their own PV cells and produced a small quantity of PV modules for testing and demonstration only. Two 1.5 kWp each PV grid connected systems have been installed in Bulgaria in the framework of INCO-COPERNICUS Programme of the European Commission.
There are one or two examples of small wind generators in Bulgaria but there is a little general experience. A 5 kW imported from Russia generator is installed at the hotel at the Black Sea. Several companies produce wind pumps for agricultural pumping with 3¸4 metres water depth.
Small Hydro generation represents a modest, but important 6.9 % share in Bulgarian energy needs (World Bank 1993). The present installed capacity is 2 000 MW, of which 25 MW is small hydro. The average annual energy generated for the period from 1979 to 1993 was 2 734 MWh, with an average plant factor (for both small and large hydro) of 16.1 %, and a load factor of 37 % for small hydro. Majority of small hydro in Bulgaria is grid connected, and this will continue to be the predominant use. Given the extent of the grid, there is a little demand for stand-alone small hydro, but there are encouraging signs that private enterprise is showing interest in the potential small hydro market.
Geothermal energy has been utilised in Bulgaria for heating purposes in addition to its balneological uses for thousands of years. Modern installations for space heating in buildings and greenhouses date back from nearly one hundred years ago. Considerable technological work was carried out during the 1970s and 1980s. This effectively stopped during the late 1980s with the political and economic changes that swept Bulgaria. Biomass and Waste Assessing installed biomass capacity in the market sectors has proved to be very difficult.
The carried out research shows that Bulgarian rich renewable energy resource base can be tapped extensively and sustainably. Bulgaria has numerous opportunities to develop its renewable energy source base. Its people have a high level of technical educational skills. Bulgaria has the infrastructure to support the development and exploitation of renewable energy to a much greater extent than many countries in Europe. It has a long history of renewable energy utilisation. The general population has a great interest in further development of renewable energy. On the other hand, there are some constraints for development of renewables. Both the general public and senior government officials do not know much about renewable energy, or its potential to contribute towards Bulgaria’s development. They have insufficient understanding of the ability of renewables to improve the environment, to stimulate industrial development, to generate jobs, to reduce the country’s dependency on imports or to generate government revenues. Moreover, prices of energy have put renewables at a disadvantage for many years. There are almost no government initiatives or incentives to encourage the development and use of renewable energy. There is a lack of financial support for renewable energy projects.
- The estimated national technical potential of the renewable energy sources amounts to 14,718 thousand toe;
- The values represent the maximum amount of energy that could be obtained annually from each renewable energy source by means of the 4 technologies available at present, without considering the economic and environmental restrictions;
- More than 50 % of the total potential is represented by the potential of biomass energy. At present biomass has an important share within the energy production and consumption as it has been previously pointed Biomass utilization by means of modern technologies is very important for covering the necessary energy needs from local resources;
- Romania has a significant hydro potential developed up to about 50 %. In the past great hydroelectric power developments have been built (the Iron Gates hydropower plant on the Danube, other hydroelectric power stations on the interior rivers). At present, the focus is on development of mini and micro power plants, respectively, for the valorisation of the local potential;
- The potential of solar and wind energies is also important, but their valorisation is only in an incipient stage. In the rural areas there is a great diversity of renewable energy sources that can be used for supplying energy to these areas or to the urban areas. Solar energy which is used especially for the hot water preparation in the households, thus reducing fossil fuel consumption for water heating; • Micro hydro power plants may represent a basic option for the supply of the rural areas that are not connected to the electricity networks. Wind generators can also cover electricity consumption in isolated rural areas that are not electrified;
- According to the provisions of the Strategy for the Valorisation of the Renewable Energy Sources (RES), the necessary investments for 2006-2015 are estimated to amount to Eur 1,800 million. Promotion of the renewable energy sources (RES) valorisation represents a priority objective of the energy policy at the EU and national levels. The Directive 2009/28/EC reunites provisions on electricity, thermal (heat and cold) energy from RES and its transport in a single legislative act. The main objective at the EU27 level is to attain the 20% target representing the share of energy from RES within gross final energy consumption, as well as that of 10% representing the share of energy from RES in transport by 2020. According to Annex 1 to the Directive, the target set for Romania relating to the share of energy from RES within the gross final energy consumption by 2020 is 24%.
- Major increase of renewable electricity generation, especially wind and biomass;
- Increased solar energy use mainly for heating;
- For full integration of wind, power system enhancement is required.
RES Expansion and Final Energy Demand Scenarios
Croatia has a target for 20% of energy from RES by 2020, up from 11.6% in 2010. Croatia’s NREAP, submitted in October 2013, projects that in an energy efficiency scenario, final energy consumption will grow by 7827 GWh or 10% and renewable energy consumption by 6924 GWh or 67% by 2020 compared to 2010. Croatia is producing electricity mostly from thermal and large hydro power plants. The production from other renewable energy power plants has become visible only in the last few years, but it is gradually increasing.
Policies and Measures
Most of Croatia’s policies and measures for stimulating RES, as well as for boosting energy efficiency, are already in place. In 2013, Croatia set new Feed-in Tariffs for all RES technologies, but funding for solar electricity is restricted to the first 5 MW of building-integrated PV capacity and the first 5 MW of other PV capacity for 2014. For smaller-scale RES options (like building-integrated PV) there is a “one stop shop” procedure to get all the permits. Due to preferential dispatch of RES generation, the purchase, transmission and distribution of energy generated by an RES plant is assured. However, the initial connection of the RES plant to the grid before it starts operation is not assured. Each RES unit has to meet the regulatory operating standards, and if it turns out that the grid needs an upgrade to meet the standards, the investor in the RES plant must cover all the expenses of the upgrade. A national information system about RES, financing options, and permits advice is well developed, with internet sites complemented by 107 information points in 47 cities.
Plans for Cooperation
Croatia plans to achieve the overall objective with domestic sources in the period up to 2020. Hence there are no plans for cooperation with other countries so far.
- Energy demand is expected to increase almost 60% by 2020;
- Substantial increase of hydro power is planned;
- High interest exists to use cooperation mechanisms for wind and biomass development.
RES Expansion and Final Energy Demand Scenarios
Albania has a target for 38% of energy from RES by 2020, up from 31.2% in 2009. Albania’s electricity is generated almost entirely from hydropower which is slated for major expansion through 2020. Other electricity generating technologies such as wind or biomass only play a small role even if large potentials are available. Albania also plans to strongly increase renewable heating, currently provided by inefficient use of firewood, e.g. by introducing solar water heating systems. An increase of 7585 GWh or 115% in projected renewable electricity and heat consumption is accompanied by an increase of 13,322 GWh or 61% in projected final energy consumption in the energy efficiency scenario. (Albanian government, 2012). Renewables in the transport sector are not displayed here, as they will mainly be imported from outside of the region.
Policies and Measures
Albania has a Feed-in Tariff system in place for small hydropower plants up to 15 MW and tax exemptions for all renewables regarding equipment or fuel in the construction phase. The Government has recently tried to improve energy legal and regulatory frameworks. Albania has had a new RES law in place since 2013 that gives priority dispatch to producers of electricity from renewable sources. It guarantees transmission and distribution of the electricity they generate if they benefit from the Feed-in Tariff mechanism and have signed a power purchase agreement (PPA) with the utility company which is obliged to purchase the electricity generated from renewable energy sources (Albanian government 2013).
Plans for Cooperation
Albania plans to meet its 2020 RES target mainly by expanding hydropower capacity. Use of the cooperation mechanisms is proposed for other technologies, in particular to elicit foreign investment in up to 1400 MW of wind capacity. In total, draft NREAP supposes a potential for joint projects of some 3000 MW of installed capacity (hydro, wind, biomass and solar).
- Major increase of wind planned, but also biomass electricity and heat;
- Technical restrictions at present on wind expansion beyond 500 MW;
- Feed-in Tariff for solar photovoltaics limited to 10 MW of capacity;
- Interest in cooperating with other countries on hydro and solar projects in Serbia.
RES Expansion and Final Energy Demand Scenarios
Serbia submitted its NREAP in June 2013. An increase of 7161 GWh or 32% in projected renewable energy consumption is accompanied by an increase of 4012 GWh or 4% in projected final energy consumption for the energy efficiency scenario, compared to the reference scenario, where final energy demand in Serbia is expected to grow by 13,735 GWh or 13% beyond 2009 levels. Demand growth appears unusually steep in Figure 9 because final energy consumption in 2009 was suppressed by gas shortages. As in many other countries of the Balkan region, the electricity generation system primarily relies on lignite fired TPPs and large hydro power as the major renewable energy source. Most of Serbia’s planned RES expansion is represented by electricity options. Serbia will increase its large hydro production and substantially expand its small hydro production. The largest increase in renewable generation will come from 500 MW of new wind power capacity, representing the upper limit of what the Serbian grid is expected to be able to absorb. Biomass electricity and biomass heat will also increase, partly via new biomass and biogas CHP plants.
Policies and Measures
Serbia already has policies and measures in place such as a Feed-in Tariff system for renewables. Access to the grid is granted by the grid operator EMS (Energy Community 2010). The Serbian NREAP mentions additional measures for achieving the targets such as:
- Adoption and enhancement of the legal framework which will stimulate efficient use of energy and more extensive use of renewable energy sources;
- Economic incentives: continuation of the established support scheme for renewable electricity and highly efficient combined heat and power generation, with preparation of a similar scheme for heat at the local level;
- Measures to stimulate a sustainable biomass market;
- Systematic promotion of best practices applied in the EU countries for efficient use of energy and effective application of renewable energy sources;
- Introduction of an organized energy management system.
Plans for Cooperation
Serbia expects to produce more renewable energy than needed for its RES target and to export surplus energy through joint project cooperation with Italy. The Serbian government assumes hydropower to be the technology most suitable for cooperation with Italy and highlights the memorandum of understanding between Serbia and Italy on jointly developing hydro plants in Serbia. Serbia also proposes solar power as a technology suitable for the cooperation mechanisms. Serbia’s Feed-in Tariff will not support more than 10 MW of solar capacity, but additional solar capacity may receive financial support through the cooperation mechanisms (Serbia Government, 2013).
- ignificant rise in final energy consumption expected;
- Strong increase in hydro, moderate increase in wind power planned;
- NREAP legislation is in process of drafting and adopting.
RES Expansion and Final Energy Demand Scenarios
Bosnia and Herzegovina has a RES target of 40 percent, up from 34% in 2009. The country is still in the process of drafting an NREAP. Its electricity generation in 2012 came 66.6% from coal, 32% from hydro and only 1.3% from other renewable energy forms. In 2012, the first eight solar plants were installed. Final energy demand in the energy efficiency scenario is expected to rise by 4511 GWh or 14% by 2020 according to Energy Community projections. The country plans a strong expansion of hydropower electricity generation as well as wind power (Bosnia and Herzegovina government 2013). However, wind power expansion may be restricted to 350 MW due to grid constraints (NOS BIH, 2013).
Plans for Cooperation
Bosnia and Herzegovina plans to cooperate with Croatia in construction of a hydropower plant at Dubrovnik and with Serbia in building a series of hydro plants.
- Strong expansion of hydroelectric generation is planned;
- A Feed-In Tariff is in place, with a budgetary limit for non-hydro technologies;
- No plans for cooperation as all RES targets are planned to be met domestically.
RES Expansion and Final Energy Demand Scenarios for Macedonia has a draft NREAP in place. Its RES target under the Energy Community Treaty is 28% in 2020, up from a 21% renewable share in 2009. Its electric power system is based 580 MW hydro plants, 800 MW of thermal plants fuelled by lignite and 210 MW of thermal plants run on heavy fuel oil (Macedonia Government, 2012). Macedonia plans to strongly expand large hydropower and also expand wind power, geothermal power, small hydropower and biomass heat. Plans include only a minor role for solar electricity. An increase of 2491 GWh or 45% in projected renewable energy consumption from 2013 to 2020 is accompanied by an increase of 3745 GWh or 15% in projected final energy consumption in the energy efficiency scenario (Macedonian government, 2013).
Policies and Measures
Macedonia has a Feed-in Tariff system in place for small hydro, biomass, wind and PV, but except for small hydro there is a budgetary limit to the support that can be granted. Macedonia has some provisions for preferential treatment of renewable electricity in the power network: In accordance with the Energy Law, the market operator is obliged to purchase all electricity produced from preferential producers of renewable electricity. In addition, the Regulatory Commission requires the transmission system operator to preferentially dispatch electricity generation from renewable sources. Macedonia has an Energy Efficiency Strategy in place that includes new energy standards for buildings and promotes low energy buildings, creation of efficient production and distribution of electricity, and introduction of mandatory procedures for procurement of goods and services at the state and local level.
Plans for Cooperation
Macedonia plans to achieve the overall objective with domestic sources in the period up to 2020. Hence there are so far no plans for cooperation with other countries in this field.
- Stabilization of final energy demand is envisioned;
- Expansion of wind power is planned;
- Establishment of a Feed-in Tariff system foreseen for wind, solar electricity and small hydro;
- Strong expansion of heat from biomass power is also planned;
- Planned renewables would exceed RES targets;
- Surplus renewables would be sold via the cooperation mechanisms.
RES Expansion and Final Energy Demand Scenarios
Moldova’s 2020 target for renewables is a 17% share, up from 11.9 percent. The current renewables use consists mainly of biomass heating, which will be moderately increased. Moldova’s draft NREAP provides for a small increase of hydro capacity and a large increase of wind energy. An increase of 2147 GWh or 76% in projected renewable energy consumption is accompanied by an increase of 89 GWh or 4% in projected final energy consumption for the energy efficiency scenario. The country whose electricity generation currently is based on gas, plans to significantly expand biomass heat and to a lesser extent wind. The plan aspires to stabilize energy consumption through 2020, in a significant departure from the current trends. Simplified conditions for small producers of combined heat and power (CHP) should also be included in the Law on Heating and Cooling. The NREAP refers to a comprehensive set of energy efficiency measures that Moldova plans to implement in order to stabilize energy consumption. The focus is on reducing the energy consumption in buildings. The draft law requires the Government to develop and approve a national plan for increasing the number of buildings whose energy demand is close to zero. The NREAP states that incentives for the installation of at least 150 MW of RES electricity will be established (e.g. the establishment of a Feed-in Tariff system for wind, solar electricity and small hydro) but the total expansion will be limited at 400 MW by 2020 due to network capacity constraints.
Plans for Cooperation
Moldova plans statistical transfers or joint projects with other countries in Southeast Europe or beyond.
- Strong expansion of hydroelectric generation is planned;
- Feed-In-Tariff for solar photovoltaic generation is to start in 2014;
- Cooperation with Albania is anticipated due to fuel mix complementarity;
- Planned renewables would exceed RES targets;
- Surplus renewables could be sold via the cooperation mechanisms.
RES Expansion and Final Energy Demand Scenarios
Kosovo has a 25% RES target under the Energy Community Treaty, up from 18.9% in 2009. In a simplified NREAP it suggests also a pathway for a voluntary overachievement to 29% (Kosovo government, 2013). Kosovo strongly relies on fossil fuel power generation, and it expects that construction of a new lignite plant will move it from being a net importer to being a net exporter of electricity (Kosovo Government, 2013). A large hydro power plant at Zhur and several small hydro plants are planned by 2020. Wind energy and solar heat are also to be expanded, but solar electricity plays only a marginal role in the plans. Since the large hydro plant has not been proposed as a Project of Energy Community Interest, there is some risk that it would not be built on schedule and the 25% target would not be achieved. Energy demand is expected to rise even in an energy efficiency scenario case as Kosovo is in a phase of economic recovery. An increase of 2165 GWh or 76% in projected renewable energy consumption is accompanied by an increase of 6998 GWh or 46% in projected final energy consumption for the efficiency scenario.
Policies and Measures
In the electricity sector, Kosovo has a Feed-In to support wind, hydro and biomass; a Feed in Tariff for solar power will be introduced from January 2014. Kosovo also plans to set adequate RES support schemes for heating and cooling. There are no regulatory restrictions on grid access for new renewable electricity capacity. The transmission system operator (TSO) is obliged to grant grid access to renewable energy producers (Energy Community, 2012).
Plans for Cooperation
Kosovo has no concrete plans yet to make use of the cooperation mechanisms in the RES Directive, but it has signed a bilateral agreement with Albania on cooperation in the energy sector (Kosovo government, 2009). Electricity generation relies almost entirely on hydropower in Albania and almost entirely on thermal power in Kosovo. This complementarity creates major cooperation opportunities for optimization of operation, energy exchange, energy security and optimization of investment to reduce dependence on electricity imports to meet the demand (Kosovo Government, 2009).
- Strategy calls for a reduced pace of growth in energy demand;
- Focus is mainly on large and small hydro, but also wind and biomass power expansion is envisioned. · Planned submarine interconnection cable between Montenegro and Italy should offer new possibilities for international cooperation.
RES Expansion and Final Energy Demand Scenarios
Montenegro has adopted a 33% renewable energy target under the Energy Community Treaty, up from 26.3% share in 2009. The country has not yet published its NREAP, but its draft Energy Development Strategy for 2030 was published in 2012 (Government of Montenegro, 2012). Montenegro’s electricity generation is mainly provided by hydropower (two large hydro power plants) and a coal-fired thermal power plant. Due to the large share of hydropower the production of electricity depends on hydrological conditions and can vary considerably. By 2020, the country aims to significantly expand electricity generation from small hydro power plants, and to a lesser extent wind and biomass generation as well. In the heat sector, biomass heat will play a major role while solar heat plays only a small role up to 2020. An increase of 2463 GWh or 108% in projected renewable energy consumption is accompanied by an increase of 4722 GWh or 57% in projected final energy consumption for the energy efficiency scenario.
Policies and Measures
Montenegro has a Feed-in Tariff scheme for wind, biomass, solar energy, solid waste, landfill and sewage gas, biogas, small hydropower plants and high efficiency cogeneration plants. Energy efficiency is a policy priority, with institutional changes and financial incentives to reduce energy intensity in all productive and end-use sectors. Transport sector efficiency measures include improved public transportation, promotion of energy efficient and low emission vehicles, and integration of energy efficiency criteria in transport infrastructure projects. (Montenegro Government, 2012).
Plans for Cooperation
Montenegro’s draft Energy Strategy emphasizes the possibilities for international cooperation using the planned 400 kV submarine interconnection cable between the power systems of Montenegro and Italy that would allow electricity exports. It also examines the opportunities arising from proposed additional interconnections with Bosnia and Herzegovina and/or the Republic of Serbia (Montenegro Government, 2012).
- Major increase of renewable electricity generation, especially from hydro;
- Share of solar photovoltaic generation in 2012 already exceeds plan for 2020;
- Substantial increase in renewables heating, especially from biomass;
- Feed-In Tariff funding for renewable generation is unstable and hard to predict.
RES Expansion and Final Energy Demand Scenarios
Slovenia submitted its draft NREAP in July 2010. Slovenia allows an increase of its final energy consumption (energy efficiency scenario) of about 5541 GWh by 2020 or 10% while expanding renewable energy production by 5499 GWh or 55 percent. The Slovenian electric power system includes 1151 MW of hydro plants, 1222 MW of thermal plants fuelled by lignite brown coal, and a 696 MW nuclear thermal plant (ELES 2011). Half of the Krško nuclear plant capacity belongs to neighbouring Croatia. Both its large and small hydro production will increase by about 20 percent. The country also plans 104 MW of generating capacity using wind. Slovenia’s goal for installed solar photovoltaic PV capacity by 2020 was 139 MW, but the goal has already been surpassed – with installed capacity of 221 MW in 2012. Renewable heating will expand through biomass and through geothermal sources with heat-pumps.
Policies and Measures
Slovenia already has policies and measures in place such as a Feed-in Tariff to support renewable electricity and high-efficiency cogeneration of heat and power. System operators of transmission and distribution networks must ensure the uptake of renewable electricity, but access to the grid for renewable power plants is not granted by default. The Slovenian NREAP mentions additional measures that will stimulate more efficient use of energy and more extensive use of renewable energy sources. The most important measures are a support scheme for renewable heating, obligatory shares of renewable sources in district heating systems, a proactive role of the state in identifying environmentally acceptable locations for exploiting hydro potential, specification of technical criteria and procedures for connecting smaller units to the grid, specification of tariffs for grid connection, adoption of single-step building permit procedure for renewable energy facilities, and promotion of renewable energy sources through green public procurement.
Plans for Cooperation
Slovenia will prepare for participation in joint projects in other EU Member States, if it turns out that it will not be able to achieve the set targets. So far however, there are no concrete plans to use the cooperation mechanisms provided in the Renewable Energy Directive.
