Workshop – IEA – Innovation and Small hydropower Montreal,17 August 2004

1. Workshop – IEA – Innovation and Small hydropower Montreal,17 August 2004 ADEME activities and European programmes on Small Hydropower M. Philippe BEUTIN Renewable Energies, Energy Networks and Markets Division Head of the Renewable Energy Department

2.  Public institution of industrial and commercial nature ADEME, French Agency for Environment and Energy Management Created in January 1992 through the merging of 3 pre-existing government agencies Under the control of three ministries Research & Development Ecology & Sustainable Development Industry

3. ADEME, a sustainable development pro active actor is closely involved in implementing the French government’s policies concerning sustainable development  energy  environment contributes to help France meeting its international commitments

4. ADEME’s workforce an overall staff of 900 experts ADEME’s sites  3 headquarters(Angers, Paris, Valbonne),  26 regionalbranch offices 3overseas-territories offices  1 office inBrussels ADEME’s incitative budget  FOR 2003 :340 million euros

5. ADEME’s areas of activity Air quality and transports Wasteandpollutedsoils Noise Energy efficiency Renewable energy sources Environmental management

6. ADEME-State Plan Contract 2000-2006 Commitments 3 priorities according to Develop waste savings with high environmental quality Commit long-term effort to energymanagement and encouragedevelopment and use of renewableenergy sources Improveenergy-efficient techniques in transport sector and reduceair pollution

7. Research and development: ADEME involvement Contribute to promoting innovative technologies and practices : CO2 sequestration, H2 production and use (FC), RES generation, advanced building solutions ( Public-Private initiative)………  Promote International partnership (EU networks of excellence, integrated research projects ….) : RES and H2 ……..  Collaborate  to the creation of an European research area “ERA”

8. New financial instruments in favourof environment and energy management  FOGIME (created 2001)(Guarantee Fund for addressing risk issues in the Energy Conservation Field) for SMEs  FIDEME (created in 2003) (Investment Fund for environment and energy projects) Combine public and private funds and are particularly focused on RES projects ADEME has initiated the creation of these funds and is involved in decision matters

9. ADEME’s action towards citizens Create informationtools : guides, exhibitions, self-diagnosis (energy consumption) Leadawareness campaigns Contribute to thedevelopmentandcoordinationofthe « InfosÉnergie » offices network This network, which covers the whole French territory, gives personal information and advices to individuals, artisans and small companies managers

10. Few examples of ADEME’s international projects in progress  HIP-HIP - House Integrated PV – Hightech In Public •  HOTRES - Technical support to the tourism industry with renewable energy technologies •  OPTIRES - A Planning tool for optimal regional integration of renewable energy sources •  RESPIRE – Renewable Energy Sustainable Sources Promotion and Integration in Insular Regions of Europe •  SPLASH – Spatial Plans and local arrangement forSmall Hydro

11. Workshop – IEA – “Innovation in Small Hydropower” European initiatives in favour of small hydropower activities in Europe and developing countries New SHP initiatives in Europe: • TNSHP project : networking activities (ESHA) • SPLASH project: territorial approach (local plans) • SHEER project : encouraging investments in Eastern European countries

12. Workshop – IEA – “Innovation in Small Hydropower” European initiatives in favour of small hydropower activities in Europe and developing countries TNSHP Thematic network on small hydropower In Europe

13. Small hydropower networking in Europe RESULT EXPECTED: higher volumes of investments in Europe and addressing new challenges (compliance with EU directives and adopting relevant innovations)

14. SHP Thematic Network DELIVERABLES • Strategy document on EU RD&D activities and needs. Annual • Layman’s Guide in German, French and Swedish (2004) • Checklist for SHP developers in French, German and Italian (2004) • SHP situation in Candidate Countries (2004) • Brochure on Environmental aspects of SHP in English, Italian and German (2005) • Report on SHP Statistics. Annual • Reports on reserve Flow, political aspects, public image

15. Workshop – IEA – “Innovation in Small Hydropower” European initiatives in favour of small hydropower activities in Europe and developing countries ALTENER project 4.1030/C/02-074/2002 SPLASH Spatial Plans and Local Arrangements for Small Hydro

16. SPLASH partners Innovation Energie Développement (IED) : European Coordinator and partner - France MAES, coordination on the planning aspects - Poland Mentor Consult - Greece ADEME, Energie Cités, Climat Energie Environnement - France CEEETA - Portugal Cork County Council - Ireland ESHA - European Small Hydro Association - Belgium ENTEC - Swisserland

17. Electricity generation from RES in the partner countries

18. Countries context for RE

24. Small hydro issues in the EU • Past hydropower projects have : • disrupted fish runs, • flooded fishing grounds, and • had an adverse visual impact on the landscape or noise impact. • In response licensing authorities implemented restrictive conditions on SHP development, which are reflected in the high upfront costs of environmental impact assessments and delays in authorisation (up to 5 years). • Furthermore, grid connection can be a long and expensive procedure • RESULT : high development costs

25. SPLASH objectives • To increase the total contribution from SHP in the EU electricity mix : • better reflecting the concerns of all stakeholders in the environmental constraints • improving the economic situation for producers. • Both renewable energy development and conservation of the river resources are crucial for a sustainable development. It appears now that with some precautions, small hydro schemes can respect the environment and in many cases can improve it. • Searching for a rational and beneficial balance is the focus of the partly funded European project SPLASH .

26. SPLASH objectives • The preparation of pilot spatial plans for small hydro, identifying on an integrated basis, the acceptable locations and the environmental considerations that must be met. The local plans will be designed to act as an aid to the environmental assessment process, • Supporting municipalities and other local actors such as independent electricity utilities / producers, and acting as a catalyst to bridge the gap between the new policy framework and local actors, in order to reduce the unit cost of feasibility studies of an SHP through the best distribution of costs to all the projects that could be developed in one local area, • The evaluation of how various technologies might affect the economic resource and be fully integrated into the main electricity supply.

27. SPLASH : Work programme Phase I: Compilation of information, preparation of work plan and consultations Phase II: For targeted areas, evaluation of the resource and the main constraints Phase III: Preparation of local development plans Phase IV : Step-by-step guideline for SHP development and best practice guide on planning issues Phase V: F/S of one to three sites (depending on size) per country in the selected local areas Phase VI: Dissemination – Workshops and site visits

28. Spatial plans • This is the core deliverable from the project • Each country is developing its own methodology Ireland and Greece : GIS France : computational analysis Portugal and Poland : Site approach

30. The case of France

31. French context for RE Total electricity production in France  490 TWh • Kyoto Protocol : France has to stabilise its emissions • France has to increase its electricity production from RE from 15% in 1997 to 21% in 2010 (EC Directive 2001/77/CE) • Law n° 2000-108 of 10 Feb. 2000 for the modernisation and development of the public electricity service introducing new tarifs for RE with the obligation for the utility to buy the electricity for any installation below 12 MW (before : 8 MW)

32. French context for SHP • Presently 1500 SHP sites < 8 MW = 7 TWh = 10% of the French hydroelectric production (1,5% of National production) • The last 10 years only 6% increase in capacity,from 1900 MW to 2020 MW • Potential estimated at 2000 MW of which 650 MW in the medium term (200 MW Rhône-Alpes, 75 MW PACA, 50 MW in Corsica ..) • Buy back tariffs over 20 years : 6,1 c€/kWh for capacity under 500 kVA, and 5,49 c€/kWh for capacity above 500 kVA • + quality bonus between 0 and 1,52 c€/kWh in winter

33. The authorisation procedure • “Heavy” administrative procedures: on average 5 years and costing around 1 year of revenues for the future site  EIA (Environmental impact assessment >500kW), • Few authorisations for new sites : • Residual flow should not be below 10% of annual mean flow • Classification of rivers (which is prohiting new projects) • - Opposition from fisher federations and environmentalist associations • Authorisation given for around 30 years (can be taken back) and then need for a new application • Management of water : split over the 6 main water catchments in France • The EC directive on water (2000/60/CE)

34. Workshop – IEA – “Innovation in Small Hydropower in Europe” European initiatives in favour of small hydropower activities in Europe and developing countries Directorate-General for Energy and Transport EIE Call for proposals 2003 - April 30th 2004 SHEER Small Hydro Enhancement for Eastern Europe

35. SHEER partners ADEME, French Agency for Environment and Energy Management - European Coordinator and partner – FRANCE ISL, Bureau d'Ingénieurs Conseils - FRANCE ESHA, European Small Hydro Association – BELGIUM EnEffect, Center for Energy Efficiency - BULGARIA EEA, Energy Efficiency Agency - BULGARIA E.V.A., Energieverwertungsagentur, the Austrian Energy Agency – AUSTRIA ZDMHE, Zveza drustev lastnikov in graditeljev mallh hidroelektrarn Slovenije - SLOVENIA L.E.I., Lithuanian Energy Institute - LITHUANIA

36. SHEER objectives (1) + The main objective to be fulfilled in the project is to remove barriers to investments in the SHP sector and to promote new investing opportunities in Eastern European Countries + The project will set up a shared investment methodology in order to bridge the gap between investors and developers.

37. SHEER objectives (2) + The innovative approach that takes into account both needs and constraints of developers and investors and answer their specific concerns by offering dedicated services through analysis of SHP projects. + Implementation on pilot sites (one per country) is part of the demonstration objective of the feasibility work. This objective will be reinforced by networking and capacity building on SHP matters in EEC involved. A long term objective will be to extend the methodology approach to other RES.

39. SHEER : Work programme (1) The SHEER project will be implemented in 5 phases including dissemination: WP1: Assessment of the Country hydropower development conditions, in order to prepare the “multicriteria analysis” and identify main barriers. WP2: Inventory of sites for potential investment development and preparation of the dynamic database on web site for further implementation. WP3: Development of the “integrated decision support tool” that will allow the evaluation of pilot sites that will be selected as opportunities for investments networking.

40. SHEER : Work programme (2) WP4: Concrete implementation by assisting pilot plants developers on comprehensive feasibility studies and business plan (one pilot site per country), and by identifying potential investors. WP5: Continuous information on the web site; Training activities to prepare actors to use the decision support tool; Networking with investors to promote opportunities and further dissemination and capacity building in other countries with ESHA’s network.

41. SHEER :Direct outcomes in the short/mid term • The first direct outcome will be the issuing of an analysis tool and its utilisation in the associated networking activities. • The second important result will be the real implementation of the method in bankable pilot sites, the assistance to developers and, implied by the promotion of investment opportunities, the forthcoming investment decision. • - The third result will be the widespread dissemination of the method through capacity building activities.

42. SHEER :Direct outcomes in the in the longer run The envisaged results are: Disseminating the methodology to all EE countries as part of capacity building. Thus promoting new investments opportunities and developing the SHP market at European level Giving public authorities a focus on barriers to remove for SHP enhancement Extend the results to other RES.