Guy Block - BMH Avocats

SUPPORT SCHEMES FOR
RENEWABLE ENERGY IN BELGIUM
Guy Block, Member of the Brussels and Paris Bars
[email protected]
Distribution of Competences
in energy fields
Regional
All sources of
Renewable
energies
Federal
Offshore
wind
Green Certificates – Quota System
The three Regions and the Federal Government support RES electricity through a quota
system based on the trade of green certificates
Recognised
Inspection Bodies
Minimum
guaranteed price
Purchasing
obligation by the
TSO (Elia)
Federal Obligation
PV: € 150/MWh – 10
years
CV Market
(P›10kW)
Green Producers
(RES and/or
certified
cogeneration
Regional Obligation
€65/CV – 15 years (max)
CV’s quota: 23,1 % in 2014
Penalty of €100/ missing CV
Suppliers/ System
Operators
Final
clients
Grant for 15 years
Regulator
Non-green
producers
Electricity Market
Source: http://www.cwape.be/tools/print.php?dir=3.4.00
Federal
Offshore wind
•Grant of green certificates if the RES producer posses a domain concession and a
guarantee of origin certificate
•Minimum prices:
Green
Certificates
•(1) For offshore wind energy installations that reached financial close before 1st May
2014 :
•€107/MWh for electricity generated resulting from first 216 MW of installed
capacity,
•€ 90/MWh for electricity produced from an installed capacity exceeding the first
216 MW.
•(2) For offshore wind energy installations that reached financial close after 1 st May
2014 the minimum price per energy certificate is fixed every month by the CREG on
the basis of the following formula:
• Minimum price = LCOE (Levelised Cost of Energy) – [electricity reference
price – correction factor]
• Where :
• the LCOE is equal to €138/MWh
• The correction factor is equal to 10% of the electricity reference price.
• The minimum price will be equal to 0 when the generation takes place at a
time when the imbalance tariff for a positive imbalance is equal to or lower than
EUR – 20/MWh, for a maximum of 288 quarterly hours per calendar year.
Map of installations and capacities in the North Sea
Source: offshore wind toward 2020 – on the pathway to cost competitiveness - September 2013 - Roland Berger
Brussels – Capital Region
Green
Certificates
Auto-generation
and
compensation
• The electricity suppliers have the obligation to prove, through the
submission of green certificates bought from RES producers, that a
previously fixed proportion of the electricity they supplied was generated
from RES
• The number of certificates depends on the amount of electricity generated
(in kWh) in proportion with the CO2 saved.
• Minimum price: €65
• The formula for the calculation of the number of green certificates is the
same for all technologies. Different multiplicative coefficient can be applied
according to the technologies
• Compensation for renewable energy produced and auto-consummed
Investment
Aid
• Investment assistance for companies which develop renewable energy
plants
• % vary according to the entreprise size
Energy
premiums
• Subsidies for residential, industrial and service sector buildings
• Cover installation costs or eligible investments and studies according to the
type of renewable installation
« Energy Bonus »
Walloon Region
Green
Certificates
Auto-Generation
and compensation
•Overwhelming success of the green certificate support scheme due to smallscale solars installations → new support scheme for all RES, except small
scale solar installations (from 1st July 2014)
•Defines a fix number of available green certificates per year and per
technology.
• The ceiling is 3 GC/MWh for reservation requests submitted until 31/12/2014
and of 2,5 GC/MWh for reservation requests submitted from 1er janvier 2015.
•Support for all technologies: Granted GC = Eenp x kCO2 x kECO
•1° Eenp = netto generated electricity expressed as MWh;
•2° kCO2 = coefficient of real performance of CO2 of the envisaged project
•3° kECO = economic coefficient per technology applied over 10 or 15 years
•Minimum price: €65
• Compensation
consummed
for
renewable
energy
produced
and
auto-
Investment Aid
• Investment assistance for companies which develop renewable
energy projects
• % vary according to the entreprise size
Energy Premiums
2014
• Subsidies for the generation of electricity through biogas and
biomass CHP plants
• Up to 20 % of the installation costs (depending on conditions)
Qualiwatt
New System 2014
Small-scale solar
installations – feed-in
tariff premium
• Fixed tariff for small-scale solar installations ( ≤10 kW)
• Target: allow a return on investment on 8 years.
For 2014-2016, the Government has defined as follows the yearly amount of
green certificates available to producers :
Sector
Sub-sectors
Power segments
Solar Installation
Small scale solar
Large scale solar
P ≤ 10 𝑘𝑊
10𝑘𝑊 < 𝑃 ≤ 250𝑘𝑊
P> 250𝑘𝑊
Time of grant
(number of years)
10
10
10
and as follows the amount of green certificates per technology available:
Sector
Sub-sectors
Power segments
Time of grant
(number of years)
Solar Installation
Small scale solar
Large scale solar
P≤ 10𝑘𝑊
10𝑘𝑊 < 𝑃 ≤ 250𝑘𝑊
Qualiwatt Regime
7%
Small scale wind
𝑃 < 100𝑘𝑊
7%
Medium and large
scale wind
100𝑘𝑊 < 𝑃 < 1𝑀𝑊
P≥ 1𝑀𝑊
7%
7%
hydropower
𝑃 < 10𝑘𝑊
10𝑘𝑊 < 𝑃 < 100𝑘𝑊
100𝑘𝑊 < 𝑃 < 1𝑀𝑊
𝑃 > 1𝑀𝑊
7%
7%
7%
7%
𝑃 < 500𝑘𝑊
9%
CHP
It guarantees a development of all renewable energy technologies on the
Walloon territory.
Evolution of the number of Green Certificates issued during the period 2003-2013
renewable
Residential PV –
anticipated grant
Residential PV –
after production
In total, during the period 2003- 2013 more than 27.100.000 GC have been issued.
Evolution of the Green Certificates stock at the end of the year over the period 2003-2013
Issua
nce
Flanders Region
Green
Certificates
• Grant of GC per MWh electricity to installations with
start date as from 1st January 2013
• Grant of GC for the depreciation period that is used in
the calculation method for the unprofitable top for the
concerned renewable energy technology,
• The number of GC allocated = 1 x banding factor
• Certification of minimum supply of renewable
electricity
• Minimum support: €93 per transferred GC
Combined
Heat and
Power
Certificates
(WKK)
• Certificates allocated for the combined heat and
power realized in a generation installation
• The number of CHPC’s that is allocated for every
MWh primary energy savings vis-à-vis installations of
reference = 1 x banding factor
• Minimum support: €27 per CHPC
Focus on the compensation mechanism
Pending claim (Wallonia & BrusselsCapital):
« prosumers » want to recieve « full »
compensation for the commodity and grid
tariffs even when they are not producing
energy
Prosumers = energy consommuers who are also producing their own solar energy
and, in some cases, selling it back into the grid.
Solar irradiation
Demand Profil [%peak]
Summer profile
Demand profile
2012
Demand
profile 2020
Global irradiation
during the
summer under a
clear sky
The new tariff methodology
of « CWaPE » n° CD-14h16 - CWaPE
Arguments
support
compensation:
Arguments toto
support
the new
concept of compensation:
• There is no reason that a « prosumer » does not pay any
charges when he is not producing solar energy (lack of
sun, etc.), and behave like a traditionnal energy
consummer
what would happen if only one consumer had not solar installation? … Would he pay
the entire grid fee of the Region?
• Rentability rates are guaranteed.
• Minium price of €65/GC
Rentability rates of solar installations
Grant duration of 15 years and VAT of 6% on the investment
Reference IRR
Source: avis CD-13k07-cwape-816
30 April 2014
Any questions ?
Thank You
LAW FIRM
Guy Block
Partner and Head of Department
Phone (direct): +32 2 663 07 24
Phone (assistant): +32 2 663 07 23
GSM: +32 477 22 70 31
Fax: +32 2 675 30 31
[email protected]
Chaussée de La Hulpe 187 Terhulpsesteenweg
1170 Brussels
www.janson.be
Phone direct: +32 2 675 30 30
Fax: +32 2 675 30 31
Laurence Hage
Partner
Phone (direct): +32 2 663 07 98
Fax: +32 2 675 30 31
[email protected]
ENERGY & TRANSPORT Department
Michel Vandersmissen
Herbert Delahaije
Alexandre Fraikin
Karine Sargsyan
[email protected]
[email protected]
[email protected]
[email protected]
Adrien Fourrez
Damien Remy
Christophe Rolain
Ann-Sophie Vanwinsen
[email protected]
[email protected]
[email protected]
[email protected]
Alexandra de Hulst
Jelle Derammelaere
Cécile Van Vyve
Kris Wouters
[email protected]
[email protected]
c.vanvyve@janson,be
[email protected]