Energy policy
The current energy use model, which is characterised by the dominance of fossil fuels, continuous growth and the corresponding consequences for climate change and the depletion of existing resources, requires immediate change. The aim of a sustainable energy sector must therefore be to use efficient forms of renewable energy sources in order to cut rising energy consumption levels and mitigate the associated consequences.
The European Union underlined this aim unequivocally in the agreement reached at the Brussels Summit on 10 March 2007: A binding proportion of 20% renewable energy sources in the EU's energy consumption by 2020. Savings of 20% in EU energy consumption measured against the forecasts for 2020 and a 20% reduction in greenhouse gas emissions.
To ensure that these targets are also achieved, a directive has also been drawn up which is close to adoption now. The directive "to promote the use of energy from renewable sources" contains the legally binding targets for the overall proportion of renewable energy sources for each member state [COM(2007)19] and calls on each member state to show the maximum commitment and make every effort to meet these ambitious targets. Renewable energies will therefore become a key element of the economic policy of each member state.
The ambient heat used by heat pump technology has a decisive capacity to help in meeting these targets and for this reason is also a firm part part of Europe's energy policy. Heat pump technology helps to protect the climate, our air and our resources and also to increase our security of supply and create added value for national economies. It also offers the surety that, in the case of tasks that have to be resolved with relation to European energy policy, a technology is available which has been a proven technology for many years, even if it has not been in widespread use for very long. This is important because in the past the focus in energy supply was on just a small number of fossil fuels, with renewable energies having inadequate attention devoted to their development or at least not being taken seriously enough for a long time. This led to the current situation where the development of numerous promising energy technologies is such that they still have a long way to go before they can bring their real potential to bear and, consequently, are unable as yet to make the necessary capacities available for large-scale energy supply.
Haas R., Biermayr P. et al.: Wärme und Kälte aus Erneuerbaren 2030 [Heating and cooling from renewables in 2030], commissioned by the Dachverband Energie-Klima, Maschinen und Metallwaren Industrie [Energy-Climate Protection Umbrella Organisation], Vienna 2007 (see Studies (1))
Haas R., Biermayr P., Kranzl L.: Technologien zur Nutzung Erneuerbarer Energieträger - wirtschaftliche Bedeutung für Österreich [Technologies for using renewable technologies - economic importance for Austria], commissioned by the Dachverband Energie-Klima, Maschinen und Metallwaren Industrie [Climate-Energy Protection Umbrella Organisation], Vienna 2006 (see Studies (2))
Heat pump action plan
The prevailing situation with regard to energy and the environmental was the reason for drawing up the Austrian heat pump action plan which was initiated by the Austrian Heat Pump Federation (BWP).
The aim was to highlight the potential for energy- and environment-related savings achievable by 2020 as a result of the incentivised use of heat pumps for heating, hot water provision and air-conditioning applications in single- and multi-occupancy homes (up to three living units), industrial companies and the service sector in Austria.
The BWP's vision of installing heat pumps for heating and or hot water provision in 76% of future new buildings and 50% of renovation projects was the basis on which the calculations of CO2 and primary energy savings were carried out and for estimating the impacts on employment generated by the additional production of heat pumps. The proportion of heat pumps in businesses was assumed to be between five and 50 per cent, depending on the sector and the company size. In the field of air-conditioning, a realistic market share of 25 per cent by 2020 was ascribed to heat pumps.
By 2020 it will be possible to make an extra 45 PJ potential energy in total available with heat pumps. This is possible because heat pumps can be used in both new-build and renovation projects. A market share of 76% in the new-build sector is perfectly feasible by 2020. With existing buildings, too, there is a major potential. Since recently developed systems permit flow temperatures of around 65˚ to be achieved, it is possible to achieve a share of up to 50% in renovation projects by 2020. In total, therefore, up to 46,000 heat pumps could be installed in 2020 alone.
Reduction in greenhouse gases
Compared with conventional heating systems, the annual reduction in CO2 emissions as a result of using the new heat pumps installed in the period 2007 – 2020 will be 2.3 million tonnes based on the mix of power stations in Austria. This can be achieved because heat pumps have zero emissions and because the Austrian power station mix consists mainly of renewable energy sources.
Australian REC system
Australia provides us with a good example of an objective energy incentive policy: Investors there receive as "Solar Credits" the value of the CO2 saved by their systems for the next 10 years. In this way an objective competition for renewable technologies is promoted and safeguarded to the benefit of the consumer, the state (i.e. the taxpayer) and the environment without being dictated to by the politicians.
System as an approach to promoting renewable energy sources
Baseline:
In 1997 the Australian government drew up a package of measures to help with the targets for cutting greenhouse gases. These measures were intended to stimulate both the demand for and supply of renewable energies. As part of these efforts, the Australian target for the use of renewable energy sources for electricity generation was also formulated.
Under the "9500 GWh Programme" the aim is to increase the proportion of renewable energies for electricity generation by 2% to 12.7% in the period from 1997 to 2010. Starting from a baseline of 16,000 GWh in 1997 this means an increase to 25,000 GWh by 2010 – which represents a growth of 60%.
A certificated trading system for renewable energies – known as the REC system was devised to increase the proportion of renewables for electricity generation.
Provisions relating to these certificates are set out in the Renewable Energy (Electricity) Act 2000.
The aims of this act are to
- Promote the additional generation of electricity from renewables
- Reduce greenhouse gas emissions
- Ensure that only sustainable technologies are used for electricity generation
This act specifies concrete targets relating to increases in the proportions of renewables in electricity generation in the period from 2001 to 2010.
| Year | Additional proportion of renewable energy 2001 | 0.24% 2002 | 0.62% 2003 | 0.88% 2005 | 1.64% 2006 | 2.17% 2010 | 5.7% |
These percentages mean that the amount of additional renewable energy used is as follows:
| Year | Additional proportion of renewable energy 2001 | 300,000 2002 | 1,100,000 2003 | 1,800,000 2005 | 3,400,000 2006 | 4,500,000 2010 | 9,500,000 |
Principle:
Australian energy traders and wholesalers, who form the link between the supply and demand sides of the energy market, were required to ensure that the amount of electricity they traded was in accordance with the above-specified targets.
As proof of the proportion of renewable energy sources they have to present to the regulatory authority (ORER) RECs (Renewable Energy Certificates) annually, where 1 REC corresponds to 1 MWh electricity generated by means of renewable energy sources.
In 2005, for example, the government target was an increase of +1.64% in the proportion of renewables for electricity generation. Consequently, an energy trader who trades 100,000 MWh electricity must present 1,640 RECs as proof of his proportion of renewable energies. These RECs are traded on the open market for approx. AUS$ 18-30/MWh. If the necessary RECs are not presented, a penalty of AUS$ 31/MWh must be paid. This therefore creates a demand for certificates.
In order to offer RECs on the market, electricity must be generated from renewables by registered organisations or private individuals or electricity from fossil fuels must be saved. For every MWh of renewable electricity generated over and above the relevant 1997 baseline or MWh of fossil fuel saved, this generator can request RECs. This creates a demand for certificates.
The organisations or individual who can request RECs are operators of:
- Power stations (23 energy sources for generating electricity are recognised (biomass, photovoltaics, hydroelectric power, biogas etc.).
- Small-scale systems (hydroelectric, wind, PV) <10kW output.
- Solar-thermal systems and heat pumps for hot water production (all other systems have to generate electricity)
These generators must be registered with the state regulatory authority (ORER - Office of Renewable Energy Regulator) and then receive an access code to an internet platform via which they can obtain certificates that they can ultimately sell via a trading agency.
Sales of electricity and certificates are not linked to each other. If, for example, electricity from a biomass thermal power station is fed into the grid, this electricity can be sold to the electricity purchaser together with the RECs. It is, however, also possible for them to be separated and for the RECs therefore to be sold via an agency. Even if the biomass thermal power station feeds the electricity into its own grid, RECs can be traded.
If solar-thermal systems or heat pumps are purchased by private individuals, the purchasers receive RECs in line with the potential of the relevant system. These RECs (projected on the basis of a 10-year period) are usually directly credited as a discount on the purchase. There are some 30 RECs. For a price of AUS$30, therefore, the purchaser receives a discount or a grant of AUS$900.
The following are required in order to receive RECs for a solar-thermal system or heat pump:
- The system must be included in an official list which also contains the respective REC values (the higher the REC value, the more attractive the product is for the customer.) The REC must reach a minimum value since the appliance will not otherwise be certified. The REC values are determined in Australia by the "Mechlab" at the University of New South Wales in Sydney.
- The system must make it possible to replace fossil energy for the production of domestic water. This is the case if this system is installed for the first time in an existing or a new building or if an existing system, which uses fossil fuels to produce hot water, is replaced. If an existing solar-thermal system or a heat pump is replaced by a new system, only the RECs created additionally by the new system are credited.
Benefit:
The REC system promotes increased demand for electricity based on renewable energy sources and results in a reduction in greenhouse gases. The REC system also ensures that only sustainable energy sources are used.
Success:
The Australian REC system is operating very satisfactorily. 228 electricity generators are registered, together with 130,000 solar-thermal systems and heat pumps. 99.8% of the required RECs are purchased on the market by the relevant companies – thereby promoting the production of renewable electricity. Only a tiny percentage choose the 2nd option, i.e. penalty payments to balance out a failure to achieve RECs.
Source:
Australian Government, Office of the Renewable Energy Regulator: Australia's renewable energy certificate system, 2006;
Australian Government: ORER, Determining liable grids, liable purchases of electricity and REC liabilities, and discharging liabilities, 2006;
Australian Government: ORER, Determining eligibility and renewable energy certificate (REC) entitlement for solar water heater and heat pump water heater installations, 2006;
http://www.orer.gov.au/publications/rec-system.html (20071021)