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Wind Energy in Spain Status and Regulatory Framework

Wind Energy in Spain Status and Regulatory Framework. Cayetano Hernández Gonzálvez IDAE – Renewable Energy Manager. Table of Contents. 1. Current Situation of Wind Energy in Spain. 2. Wind Energy Legislation in Spain. 3. Spanish Renewable Energy Plan (PER)

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Wind Energy in Spain Status and Regulatory Framework

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  1. Wind Energy in SpainStatus andRegulatory Framework Cayetano Hernández Gonzálvez IDAE – Renewable Energy Manager

  2. Table of Contents 1. Current Situation of Wind Energy in Spain. 2. Wind Energy Legislation in Spain. 3. Spanish Renewable Energy Plan (PER) 2005 – 2010. Wind Energy Area. 4. IDAE and the Wind Energy. 5. Summary.

  3. Wind energy capacity (MW) in the European Union (EU-25) - 31/12/2005 18,430 9,955 3,120 1,715 1,080 1,355 1,020 820 2,935 TOTAL EU-25 (ENDING 2005) 40,430 MW Source: EWEA and IDAE Provisional Data

  4. Development of Wind Energy in Spain (MW) TOTAL SPAIN (ENDING 2005) 9,955 MW Source: IDAE Provisional Data

  5. Yearly investment in the wind energy sector in Spain Source: IDAE Provisional Data

  6. Accumulated installed capacity (MW) per technology (31-Dec-2005) TOTAL: 9,955 MW Source: IDAE Provisional Data

  7. Wind Energy Legislation in Spain

  8. Electric Power Act (Law 54/1997, 27 November) Main aim: Full liberalisation of electricity market. Activities regulated by the Law: - System Management: Market Operator (OMEL). - Transport activity: System Operator (REE). Establishes: - Special Regime for renewable energy sources (< 50 MW). • - Guaranteed grid access. • - Producers not obliged to submit bids to the pool. • - Premium price for electricity from RES. Market:Pool based system. Regulatory Independent body: National Electric Regulatory Commission.

  9. Royal Decree 436/2004 on Special Regime (12 March) Objective: - Legal and economic scheme for the Special Regime. - Consolidate the regulatory framework, giving stability and predictability to the system. Characteristics: - Feed-in tariff system. - Guaranteed along the life-time of RES installations. - Payment related to a “Reference Electrical Tariff”, with a regularized annual evolution. Methodology: - Two alternative options for the remuneration of kWh: • 1. Direct sale to the distribution company: • Regulated price, depending on the capacity and • year of commissioning. • 2. Open sale in the market: • ‘Pool’ price + Premium + Incentive + Complements.

  10. Spanish Renewable Energy Plan (PER 2005 – 2010). Wind Energy Area

  11. Need for revision of preceding RES targets • Achievement of the overall target for RES: Contribution of 12% to primary energy supply by 2010. (Primary energy demand higher than previsions in previous Plan.) • Updating of other European indicative aims: • Directive 2001/77/EC (target for Spain): 29.4% of gross national electricity consumption, from RES by 2010. • Directive 2003/30/EC: 5.75% of transport fuel needs to be met from biofuels by 2010. • General environmental commitments (Kyoto Protocol, National Assignment Plan for Emissions Trading Allowances).

  12. The Renewable Energy Plan (PER) 2005-2010 • Approved by the Council of Ministers on 26th of August 2005. • Targets of PER 2005-2010. In 2010, RES will represent: • 12.1% of total energy consumption, • 30.3% of electricity production, In addition, biofuels will represent 5.83% of diesel and petrol consumption in the transport sector. • Estimated investment for this period: 23,598.64 M€. • In general, individual targets for each technology have been increased. • Decisive role of wind energy.

  13. PER 2005-2010: Aspects to be improvedin Wind Energy area Regulatory: • Connection, network access and & operational conditions. • Regulation of the guarantee of origin. Technical: • Transport infrastructures. • Behaviour of wind generators and farms with regard to the network. • Reliability of wind prediction tools. • Offshore wind farms.

  14. PER 2005-2010: Main measuresin wind energy area Proposed Measures: • Development of transport grid. • Updating and improvement of the regulatory procedures regarding grid access and operating conditions. • Establishment of a single operation centre for the Special Regime. • Improvement of wind generatorsbehaviour, regarding network.

  15. Lines of technological innovation • Advanced systems to control the quality of the power fed into the grid. • Development of wind turbines withmore than 2 MW. New materials. Offshore requirements. • Implementation of demonstration off-shore wind farms.

  16. Renewable Energy Plan (Wind energy area). Summary • Overall target (year 2010) 20,155 MW • Increase of generated electricity (2010) 25,940 GWh/year • Increase of primary energy (2010) 2,230,840 toe/year • Related investment (2005 - 2010) 11,756 million € • NO subsidies to investment. • Emissions avoided (year 2010) 9,649,680 t CO2 • Estimation of job creation: - Design and Construction 34,680 jobs - Operation and Maintenance 3,113 jobs

  17. Renewable Energy Plan (Wind energy area). Progress at the end of 2005 Pending (2007-2010) In operation (31/12/2005) 41% 49% 10% Previsions 2006 Source: IDAE Provisional Data Global Target (2010): 20,155 MW

  18. IDAE and the Wind Energy Web IDAE: www.idae.es

  19. IDAE activities in the wind energy sector • Monitoring and analysis of the sector. • Promotional activities. • Collaboration with public bodies. • Participation in projects. • Technical consultancy. • International cooperation.

  20. IDAE´s Investment in wind energy area (updated Nov 2005) ECOTÈCNIA 1250 M TORRES 1500 LA FRAILA PENOUTA LA MUELA II – III LA PLANA I SANCHO ABARCA GAMESA 850/2000 TARAZONA SUR MALPICA SOTAVENTO PEÑA GALLUDA MADE 800 BAJO EBRO TRUCAFORT ALTOS DEL VOLTOYA I - IV CORRAL NUEVO ES MILÁ PUNTA GAVIOTA MONTAÑA PELADA MONTAÑA FRANCISCO LA FLORIDA EL ROMERAL SIERRA DE ASCOY LA UNIÓN TARIFA LOS LANCES TARIFA 150/225/600 MADE 800

  21. Summary • New Target for wind energy: 20,155 MW (year 2010) • Second position world-wide with 9,955 MW installed at the end of 2005. • Spanish technologistsamong the ten largest manufacturers in 2005. • Stable legal framework: Feed-in Tariffs System, with premium price recognising environmental benefits. • IDAE participates with 276 MW in operation, and 57 MW under promotion.

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