An Initiative to Minimise the Non- Technical Barriers to DG within Europe
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- Blanche Kelley
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1 Distributio Europe 2005, Sessio 4.3 Maagig for Growth i Distributed Geeratio A Iitiative to Miimise the No- Techical Barriers to DG withi Europe Richard Kight Rolls-Royce Strategic Research Cetre 2005 Rolls-Royce plc The iformatio i this documet is the property of Rolls-Royce plc ad may ot be copied or commuicated to a third party, or used for ay purpose other tha that for which it is supplied without the express writte coset of Rolls-Royce plc. This iformatio is give i good faith based upo the latest iformatio available to Rolls-Royce plc, o warraty or represetatio is give cocerig such iformatio, which must ot be take as establishig ay cotractual or other commitmet bidig upo Rolls-Royce plc or ay of its subsidiary or associated compaies.
2 Presetatio Outlie Europea Policy Issues Market Barrier Idetificatio (DG-FER*) Market Barrier Removal Mechaisms (ELEP**) Summary * Distributed Geeratio Future Eergy Resources (Alteer project /Z/01-141/2001) * Europea Local Electricity Productio (EIE project EIE/04/175/S )
3 Europea Uio Policy Goals The EU s policy goals iclude: Improved security of eergy supply 22% share for reewable eergy systems Reductio of eergy itesity by 18% Reductio i CO 2 emissios by 8% DG has a key role to play, but there are market issues limitig the uptake of DG techologies..
4 The DG-FER Project ( ) Idetified a umber of key barriers that are curretly limitig DG ad RES implemetatio i Europe Proposed solutios ad methods by which these barriers could be miimised Developed a Road Map for DG i Europe (with a timelie)
5 Issues Idetified System certificatio Valuatio of DG services Treatmet of straded costs Geerator owership boudaries Meterig issues Moitorig & cotrol techology Electrical itercoectio Coordiatio of EU DG activities Europea legislatio Impact of DG o host etwork System developmet & validatio Techical Issues EU idustry developmet Buildig code issues Coectio chargig Policy & Legislative Issues Icetives ad fiacig
6 Key Fidigs of DG-FER EU policy (8) Techology R&D (3) Itercoectio (4) Creatig a fair market (11) Certificatio (3) 29 recommedatios were made Oly ~20% related to techical issues Further work is eeded to resolve the otechical issues DGFER Recommedatios
7 Example DG-FER Recommedatios (1) Itercoectio The developmet of a EU electrical itercoectio stadard for DG applicatios Review of utility DG itercoectio practices to esure cosistet treatmet of DG The cosideratio of DG as a ifrastructure developmet tool withi utility plaig procedures Perform a detailed aalysis of the potetial impact of icreasig levels of DG o EU grid systems
8 Example DG-FER Recommedatios (2) Creatig a Fair Market Perform a detailed assessmet of the etwork, evirometal ad commercial beefits of DG i EU Ad develop mechaisms to capitalise these beefits i the commercial eviromet Develop market rules relatig to DG i areas icludig: Coectio chargig Time-varyig et meterig Develop a detailed fiacial model of the EU Eergy Market to assess the impact of icetive regimes
9 New Iitiative ELEP* Eergy Itelliget Europe (EIE) project Rus from Jauary 2005 to Jue parter orgaisatios Provides the first step towards implemetig some of the key DG-FER policy recommedatios Wide target audiece Natioal ad Europea policy makers, regulatory ad stadards authorities, equipmet ed-users, eergy compaies, grid owers ad operators, equipmet maufacturers, academia, etc *
10 EC Eergy Itelliget Europe Programme EC support programme for o-techological actios i the field of eergy that: Promote the efficiet use of eergy ad use of reewable eergy sources Tackle market barriers ad raise awareess of EU eergy policy ad legislatio The EIE programme supports EU policies icludig: Gree Paper o security of supply White Paper o trasport Reewable Eergy & Cogeeratio Directives Buildigs Directive
11 ELEP Parter Orgaisatios EerI Eergy compay Equipmet suppliers Project developer Idustry associatio Cosultacy orgaisatios Ed-User Muicipal authority
12 ELEP Aims Recommedatios for the defiitio of a EU itercoectio Stadard for DG The removal of policy, commercial ad regulatory barriers curretly restrictig the uptake of DG ad RES i Europe Policy guidelies relatig to a umber of key commercial & market policy issues affectig DG Recommedatios for ew commercial mechaisms reflectig the full value of DG Policy recommedatios supportig the uptake of the Buildigs Directive Recommedatios for geeric EU DG certificatio ad authorisatio procedures * Europea Local Electricity Productio, EIE project EIE/04/175/S , (from April 2005)
13 Expected Results of the ELEP Project WP1 Itercoectio Stadardisatio Review of curret approaches to itercoectio across EU Member States (Apr 05) Idetificatio of areas of commoality & icosistecy betwee Member State approaches (Ju 05) Proposals to take forward DG & RES itercoectio stadardisatio process withi the EU (Dec 05) WP2 Commercial & Market Policy Issues New chargig ad/or market rule approaches related to: Coectio chargig (Ju 05) Utility plaig approaches (Dec 05) Straded costs (Ju 06) Plat owership issues (Dec 06) Net meterig ad feed-i tariffs (Ju 07)
14 Expected Results of the ELEP Project WP3 The value of DG ad RES i EU Member States Assessmet of the potetial value of DG & RES through a series of case studies (Dec 05) Developmet of a fiacial model to eable sceario ad sesitivity aalysis to be performed (Apr 06) Proposals for ew commercial mechaisms that release the total fiacial value of DG & RES (Aug 06) WP4 Buildigs Directive Issues Review of Directive 2002/91/EC focusig o the scope for deployig geeric DG solutios (Dec 05) Series of eergy efficiecy case studies demostratig the eergy efficiecy/emissios beefits of DG (Ju 06) Detailed policy recommedatios idetifyig potetial expasio of Directive 2002/91/EC (Dec 06)
15 Expected Results of the ELEP Project WP5 Certificatio & Authorisatio of DG & RES Review of DG & RES certificatio ad authorisatio practices across EU Member States (Ju 06) Proposals for geeric certificatio & authorisatio protocols for DG ad RES across the EU (Dec 06) Proposed mechaisms to itroduce a idepedet DG ad RES certificatio authority for EU Member States (Ju 07)
16 What Beefits Will ELEP Brig? Lower costs of istallatio for DG & RES equipmet Stadardised itercoectio rules Commo certificatio & authorisatio approaches A more level playig field for DG ad RES New market rules Uderstadig ad capitalisig the real value of DG ad RES Improvemets i eergy efficiecy / emissios Deploymet of more efficiet ad reewable eergy systems Greater flexibility i electrical eergy delivery Localised resource deploymet
17 Stakeholder Ivolvemet A key part of makig ELEP work is egagig with all stakeholder groups Iterested stakeholders are ecouraged to Register o the website ( (which will be available from April 2005) or cotact me directly: (richard.kight@rolls-royce.com)
18 Summary DG has a role to play i the implemetatio of EU eergy policy goals, but market barriers curretly exist Previous work has idetified what these market barriers are, ad has provided recommedatios suggestig how they might be mitigated The ew ELEP iitiative is takig the ext steps towards addressig these barriers i practical terms through policy ad legislative meas The fiacial support of the Europea Commissio for the ELEP project is gratefully ackowledged
19 Thak you for your attetio
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