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Power to the People Promoting Micro-Investment in Distributed Generation in the European Union

Power to the People Promoting Micro-Investment in Distributed Generation in the European Union Final Presentation. Faculty Advisor: Professor Sara Tjossem Shannon Binns, Juan Pablo Osornio, Leyla Pourarkin, Vanessa Pe ñ a, Sara Roy, Jeff Smith, Rebecca Smith,

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Power to the People Promoting Micro-Investment in Distributed Generation in the European Union

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  1. Power to the People Promoting Micro-Investment in Distributed Generation in the European Union Final Presentation Faculty Advisor: Professor Sara Tjossem Shannon Binns, Juan Pablo Osornio, Leyla Pourarkin, Vanessa Peña, Sara Roy, Jeff Smith, Rebecca Smith, Sam Wade, Sarah Wilson and Melissa Wright Spring 2007

  2. Outline What? Promotion of community-owned and small scale distributed generation Why? Importance of distributed generation for EU energy policy How? Policy recommendations

  3. What is Distributed Generation? • Promoting electricity generation that is: • Decentralized • Small-scale • Grid-connected • Owned by communities or individuals + +

  4. What is Distributed Generation? Distributed Generation Technologies Wind Micro hydro CHP-Biogas Photovoltaic

  5. Why Distributed Generation? Context The Future Energy Mix The Current Situation • Decentralized electricity markets • Small scale generation • Cleaner technologies • Centralized electricity markets • Large scale generation • CO2 intensive

  6. CO2 http://jamestown.org http://www.power-technology.com Why Distributed Generation? Drivers EU Concern Benefits of DG Failure of traditional grid Scalable, flexible & stable Energy security Renewable energies Climate change Cleaner technologies EU energy policy harmonization

  7. Examples of Distributed Generation in the EU Wind Biomass

  8. Bro-Dyfi Community Renewables Ltd • Launched: April 2003 • Development time: 3.5 years • Capital cost:€ 118,000 Shares 42% Grants 58% • Benefits: • CO2 reduction • New source of revenue • Awareness and education 1. Wind Turbine in the UK Pantperthog village Wales, UK Driving Policy Grants

  9. Jühnde Bioenergy Village • Launched: April 2005 • Development time: 5 years • Capital cost:€ 5 million Shares 21% Grants & Subsidies 70% Public Funds 9% • Benefits: • CO2 reduction: - 60% • New source of revenue • Pollution control 2. Biomass in Germany Jühnde, Germany Driving Policy Feed-in tariff

  10. Lessons Learned Barriers • Cost and access to funding • Excessive red tape • Inconsistent policies Key Factors for Success • Incentives necessary for economic feasibility • Information and third-party help ‘It shows how normal people can make a difference’ Mr. Fangmeier, Jühnde biogas plant manager

  11. Essential Components for Distributed Generation Direct Promotion Indirect Promotion Green building Education Renewable targets Research and Development Kyoto targets Information sharing Microgeneration strategy Community programs www.eolfi.fr

  12. EU Policies – Local Impacts Incentives Commitment Promote micro-investments in DG Ensure economic feasibility Commit through long-term policies

  13. Adapting Policies to National Contexts Market start-up Market transformation Mature market • Feed-in tariffs • Green credits • Grants • Information • Voluntary codes • Targets • Mandatory standards • Increased targets Full capture of carbon value Market penetration Time

  14. Recommended Policy Samples “Member States shall… …adapt their existing support schemes to benefit small scale generators…” …designate competent bodies to certify organizations…’’

  15. Summary Electricity markets are rapidly changing DG must be part of the electricity picture EU policies are essential to promote DG

  16. Thank you! Client: Stephen Boucher, Notre Europe Faculty Advisor: Professor Sara Tjossem Shannon Binns, J.P. Osornio, Vanessa Pena, Leyla Pourarkin, Sara Roy, Jeff Smith, Rebecca Smith, Sam Wade, Sarah Wilson

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