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Czech Republic and indicative targets of the European Union for electricity generation from renewable sources
Energy Policy 44 (2012) 469–475
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Energy Policy journal homepage: www.elsevier.com/locate/enpol
Communication
Czech Republic and indicative targets of the European Union for electricity generation from renewable sources Martin Sivek a, Pavel Kavina b, Veronika Malecˇkova´ a, Jakub Jira´sek a,n a b
ˇ Institute of Geological Engineering, Faculty of Mining and Geology, VSB—Technical University of Ostrava, 17. listopadu 15/2172, 708 33 Ostrava, Czech Republic Raw Materials and Energy Security Division, Ministry of Industry and Trade of the Czech Republic, Na Frantiˇsku 32, 110 15 Praha 1, Czech Republic
a r t i c l e i n f o
abstract
Article history: Received 22 September 2011 Accepted 24 January 2012 Available online 21 February 2012
In 2010, the Czech Republic was one of the states of the European Union, which met the indicative target for the share of renewable energy sources in gross electricity consumption. That year, gross electricity generation from renewable sources amounted to a total volume of 5851 GWh, which corresponds to 8.24% of gross electricity consumption in the Czech Republic in the given time period. The largest share of the total came from hydroelectric power plants (47.7%) and biomass power plants (25.8%), and a smaller share from photovoltaic power plants (10.5%), biogas power plants (8.7%) and wind farms (5.7%). Compared with 2009, the highest year-on-year growth came from photovoltaic power plants (527 GWh, 44.2%) and, as far as other renewable sources are concerned, electricity generation at hydroelectric power plants (360 GWh, 30.2%) and biogas power plants (184 GWh, 15.4%) rose more sharply as well. & 2012 Elsevier Ltd. All rights reserved.
Keywords: Indicative targets Czech Republic European Union
1. Introduction The use of energy from renewable sources belongs among the important objectives of the energy policy of the European Union. Its achievement was supported by the European Union by adopting legislative measures, specifically EU Directive 2001/77/EC on the promotion of electricity produced from renewable energy sources in the internal electricity market. The directive, on one hand, set a global target of 12% of gross national electricity consumption from renewable energy sources by 2010 and, on the other hand, a global indicative target of a 22.1% share electricity produced from renewable energy sources in the total gross electricity consumption of the European Community by 2020. This goal was confirmed by EU Directive 2009/28/EC, which made the indicative targets for 2020 binding and which set the EUs binding global target at 20.0%. The main legislative initiative of the European Union concerning the use of renewable energy sources occurred during the period of accession talks regarding the Czech Republic’s entry into the union. Accession negotiations with the Czech Republic commenced in 1998, and concluded in December 2002 at the European Council meeting in Copenhagen. On 1 May 2004, the European Council decided to admit the Czech Republic to the European Union. The national indicative targets of the Czech Republic concerning the use
n
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0301-4215/$ - see front matter & 2012 Elsevier Ltd. All rights reserved. doi:10.1016/j.enpol.2012.01.054
of energy from renewable sources thus became part of the negotiations on accession to the European Union. Definition of terms used: – gross national electricity consumption: national electricity production, including autoproduction, plus imports, minus exports – net national electricity consumption: gross national electricity consumption, minus self consumption of generators, minus network losses, minus hydropower PSPS consumption – gross national electricity generation: national electricity production, measured at the outlets of generators – net national electricity generation: gross electricity generation minus own consumption of power plants
2. National indicative target of the Czech Republic for electricity generation from renewable sources for 2010 The negotiations regarding the level of the national indicative target of the Czech Republic for 2010 were complex. The reason for this was primarily the fact that, from the outset, the representatives of the Czech Republic demanded a lower national indicative target than the global target of the European Union, which was set at 12%. This stance resulted primarily from: 1. the existing and relatively low share of electricity produced from renewable sources (3.15% of gross electricity generation in year 2000—Energy Regulatory Office (2002), see Fig. 1),
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Fig. 1. Percentages and structure of gross electricity generation in the Czech Republic in 2000 (73 466 GWh) and 2010 (85 910 GWh). Source: State Energy Conception, 2004 and Energy Regulatory Office, 2011.
Fig. 2. Indicative targets of individual Member States of the EU 27 for 2010. Note: The national indicative targets of Member States accepted to the EU after publication of the directive were negotiated individually as part of accession talks and conditions. Source: Directive 2001/77/EC of the European Parliament and of the Council of 27 September 2001.
2. the low predicted expansion of electricity generation from renewable energy sources (e.g. Bufka, 2006), during the time horizon of the ongoing talks on the accession of the Czech Republic to the European Union. The development of both of the above-mentioned indicators was the main reason for the careful stance of Czech representatives during negotiations regarding the level of the national indicative target of the Czech Republic. An overview of the parameter values for electricity generation from renewable energy sources (RES) at the halfway point of the negotiations on accession to the European Union are illustrated in Fig. 1. The predicted future development of this indicator mostly pointed to the Czech Republic’s unsuitable climatic conditions for increased use of renewable sources in electricity generation and to the exhaustion of existing sources, primarily of electricity produced at hydroelectric power plants. Last but not least, it
was also necessary to consider economic factors, as well as technological factors. The accession negotiations concerning the share of electricity generation from renewable sources resulted in the acceptance of a national indicative target of an 8% share of electricity from renewable sources in gross domestic consumption in the Czech Republic in 2010 in the accession treaty (Act concerning the conditions of accession of the Czech Republicy, Annex II, Chapter 12, Item 8a—see EU, 2003). The acceptance of the abovementioned commitment became a subject for discussion and comments on a technical as well as political level. Ecologically oriented organizations considered the negotiated national indicative target to be extremely low when compared with other members of the European Union (Fig. 2), while (mostly technically) oriented institutions mostly considered the negotiated level of electricity generated from renewable sources for 2010 to be ˇ unrealistic (opinions in e.g. Safaˇ rı´k, 2004; Kucˇera, 2004a,b,c,d; Beranovsky´ and Truxa, 2004; Pretel, 2005; Jakubes, 2004).
M. Sivek et al. / Energy Policy 44 (2012) 469–475
3. Legislation guaranteeing the fulfilment of the national indicative target for 2010 Directive 2001/77/EC of the European Parliament and of the Council, which set a 12% global indicative share of electricity from renewable energy sources in gross domestic electricity consumption in 2010, from which the national indicative targets of individual states were derived, was partially incorporated in the Czech Republic into an amendment of Energy Act No. 670/2004 Coll. Although the target of 8% of electricity produced from renewable sources was also part of the State Energy Concept of the Czech Republic, which was approved in March 2004, further development in meeting this goal was complicated, primarily by a number of administrative problems and hurdles. The main problems were delays in the adoption of necessary legislation (see Bursı´k and Kucˇera, 2005). The most serious of these was the delayed approval of Act No. 180/2005 Coll., on the promotion of electricity generation from renewable sources, with which Directive 2001/77/EC of the European Parliament and of the Council was implemented into Czech law. Act No. 180/2005 Coll. was originally supposed to be approved already prior to the Czech Republics entry into the European Union, however in reality it did not go into effect until 1 August 2005 and newly renamed as the ‘‘Act on the promotion of electricity generation from renewable energy sources and amending certain acts (Act on Promotion of Use of Renewable Sources)’’ (Motlı´k et al., 2007). Related guidelines were expected to be issued based on the act. They were prepared, approved and also issued. Although it may seem that nothing would hinder the expansion of electricity generation from renewable sources any longer after Act No. 180/2005 Coll. was published, the growth in the volume of energy produced from these sources continued to reach low values (Fig. 3). Until 2009, regular reports on the share of electricity produced from renewable sources, and also other materials concerning the problems mentioned, basically claimed unanimously that meeting the national indicative target of the Czech Republic for the share of electricity generation from renewable sources was unrealistic.
4. Domestic electricity generation from renewable sources in 2010 The results from 2008 and even those from 2009 did not indicate the fact that a turnaround in electricity generation from renewable sources would occur and that the Czech Republic
Fig. 3. Share of electricity generated from renewable sources in gross domestic consumption. Source: Report on Achievement of the Indicative Target for Electricity Generation from Renewable Sources for 2009 (2010).
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would meet the national indicative target for 2010 (Fig. 3). After all, the share of renewable sources amounted to only 5.66% of the gross electricity generation mix in the Czech Republic in 2009, which produced a total of 82 250 GWh of electricity (gross production, i.e. production of electricity measured at the outlets of generators). Although the share of electricity generated from renewable sources in gross domestic consumption (an indicator representing the national indicative target in 2010) continued to grow, it amounted to only 6.79% (Fig. 4) in 2009. Also the forecasts for electricity generation from renewable energy sources for 2010, which were prepared and published in 2009 (for example in the materials of the Ministry of Industry and Trade of the Czech Republic or in the estimates included in the ‘‘National Action Plan of the Czech Republic for Renewable Energy Sources (2010)’’, which was also approved by the Government of the Czech Republic), unanimously expected production from renewable sources to cover only 7.4% of gross domestic electricity consumption. The first document to acknowledge the possibility of meeting the indicative target of an 8% share of electricity generated from renewable sources in gross domestic consumption, was the ‘‘Report on Achievement of the Indicative Target for Electricity Generation from Renewable Sources for 2010 (2011)’’ prepared by the Ministry of Industry and Trade of the Czech Republic in collaboration with the Energy Regulatory Office of the Ministry of the Environment of the Czech Republic from August 2010. The authors conditioned the possibility of meeting the given indicator by the positive development of a number of factors, such as the development of hydrological conditions, biomass harvesting and also of external factors that, for example, included the level of domestic consumption or export of electricity. To a larger extent, the published results for 2010 were therefore a surprise (Table 1). According to the Energy Regulatory Office (2011), power plants using renewable energy sources generated roughly a total of 5851 GWh of gross electricity in 2010, which meant an 8.24% share of final consumption. This percentage of electricity generated from renewable sources meant that the indicative target (8% share of electricity generation from renewable sources in gross domestic consumption in 2010) was not only met, but also surpassed by nearly 0.3%. The main reasons why the indicative target for 2010 was met are best shown by comparing the results from 2010 and 2009 (Fig. 5). The comparison shows that the target for 2010 was met primarily due to: 1. an increase in electricity generation at hydroelectric power plants influenced by favorable climatic conditions, 2. an increase in installed capacity of photovoltaic power plants in 2009 and primarily in 2010,
Fig. 4. Trend of the shares of individual RES in electricity generation in 2000– 2010. Source: Energy Regulatory Office (2002–2011).
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3. an increase in electricity produced from biogas in 2010 compared with 2009. The nature of the above-mentioned main reasons for meeting the indicative target for 2010 clearly indicates that further steady expansion of the use of renewable energy sources in the Czech Republic will continue to require constant attention from government institutions, including investment support from state support programmes as well as from structural funds of the European Union. In its ‘‘Report on Achievement of the Indicative Target for Electricity Generation from Renewable Sources for 2010 (2011)’’, the Ministry of Industry and Trade of the Czech Republic lists the following conditions for permanent and steady expansion of the use of renewable energy sources: 1. maintaining the principle of operational support based on return on investments, 2. not restricting support of economically viable methods regarding the use of renewable energy sources (investment support at a level of 20–30% of capital expenditures), 3. steady support of the agricultural sector.
Table 1 Gross electricity generation from RES in 2010. Source: Energy Regulatory Office (2011). Source
Gross generation Share in renewable sources (%)
Share in total consumption (%)
47.70
3.94
25.82
2.12
509.40 89.30 335.50 615.70
8.70 1.53 5.73 10.52
0.72 0.13 0.47 0.87
5854.50
100.0
8.24
Generation (GWh)
Hydropower Conventional Pumped-storagen
3380.60 2792.70 587.90
Biomass Non-food energy crops Waste from wood Biomass with other material use
1511.90 269.90
Biogas Landfill gas Wind power Solar power Total n
665.80 576.20
Net value (i.e. gross electricity generation less own use of power plants).
The conclusions mentioned in the cited report of the Ministry of Industry and Trade of the Czech Republic are also relevant today, especially when in January 2008 the European Commission presented an ‘‘ecological package’’, which proposed another increase in the targets of the European Union in the areas of RES expansion and climate protection by 2020.
5. Notes on the growth in the share of electricity generated from RES The growth in the share of energy generation from renewable sources in the Czech Republic is primarily the result of the adoption of appropriate legislation. The fact that the increase was so sharp and that in 2010 the Czech Republic met the indicative target of an 8% share of energy from renewable sources in gross domestic consumption may be explained by the positive development of several factors: 1. The share of energy from hydroelectric power plants remained high and even increased due to favorable climatic conditions. The generation of 2982.7 GWh achieved in 2009 and of 3380.6 GWh in 2010 may be attributed not only to long-term modernization of hydroelectric power plants, but also primarily to favorable rainfall-runoff conditions in individual drainage basins. In terms of rainfall, 2010 was well above-average, the total precipitation depth reached 129% compared to the long-term norm, and it was the wettest year in the past 37 years (Czech Hydrometeorological Institute, 2011). As a result, the average annual discharge rates were higher than usual in all five drainage basins of the Czech Republic (Vltava, Morava, Labe, Ohˇre and Odra drainage basins). For example, in the Morava drainage basin they reached 142–191% of long-term average annual discharge rates (Chyba et al., 2011), and in the Odra drainage basin 165–210% of long-term average annual discharge rates (Povodı´ Odry, 2011). 2. Strong political and economic support for the expansion of photovoltaic power plants (Table 2). That lead to a sharp increase in their installed capacity from 39.5 MW in 2008 to 464.6 MW in 2009 to 1959.1 MW in 2010 (Energy Regulatory Office, 2009–2011). Due to financial and technical reasons, this development was slowed down in February 2010 by the stateˇ owned company CEPS, a.s. (the Czech transmission system operator), which requested distribution companies to stop issuing permits for the connection of new photovoltaic power plants.
Fig. 5. Comparison of the structure of gross electricity generation from RES in the Czech Republic in 2009 (4655.0 GWh) and 2010 (6442.4 GWh). Source: Energy Regulatory Office, 2011.
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Table 2 Approximate development of the purchase prices of electricity generated from RES in 2006–2012 for new sources put into operation for a given year. Prices are given in CZK/MWh without VAT. The distributor is obliged to purchase all the electricity generated from RES and purchase prices are fixed for 15 þ5 years. Source: Price decision of the Energy Regulatory Office (2005–2011).
Small hydropower stations Pure biomass burning Biogas burning Wind power Geothermal energy Solar power (installed capacity r 30 kW) Solar power (installed capacity 4 30 kW)
2006
2007
2008
2009
2010
2011
2012
2340 2930 2230 2460 4500 13200 13200
2390 3375 2270 2460 4500 13460 13460
2600 4210 3900 2460 4500 13460 13460
2700 4490 4120 2340 4500 12890 12790
3000 4580 4120 2230 4500 12250 12150
3000 4580 4120 2230 4500 7500 5900
3190 4580 4120 2230 4500 6160 7650
Notes: 1. Detailed definitions of each category and other categories of sources are listed by the Energy Regulatory Office, some categories were defined slightly differently in 2006–2007.
Fig. 6. Indicative targets of individual Member States of EU 27 for 2020. Source: Directive 2009/28/EC of the European Parliament and of the Council of 23 April 2009.
3. A decrease in the total domestic production and consumption of electricity due to the global economic development. The highest gross domestic electricity production was reached in 2007–88 198 GWh compared to 2010–85 910 GWh. The highest gross domestic electricity consumption was reached in 2008–72 049 GWh compared to 2010–70 962 GWh (Energy Regulatory Office, 2011; Energy Regulatory Office, 2009).
6. Targets of the European union for the share of electricity generation from renewable sources in 2020 The proposals of the European Commission concerning the increase in the targets of the European Union in the areas of RES expansion and climate protection by 2020 were incorporated into Directive 2009/28/EC of the European Parliament and of the Council on the promotion of the use of energy from renewable sources and amending and subsequently repealing Directives 2001/77/EC and 20003/30/EC. In the area of use of energy from renewable sources, the European Union committed to increasing its share in gross energy consumption to 20% in 2020. The Czech Republics target for 2020 is set at 13%. The national overall targets of individual Member States of the European Union, which supplement the mentioned directive, vary considerably. They range from 10 to 49% (Fig. 6). The process of carrying out the new European Union initiative will be considerably more complex than the achievement of the national indicative targets for the share of electricity generation from renewable sources in 2010. It could be assumed that demand and therefore generation of electricity will be higher in 2020 than in 2010 (OECD International Energy Agency (OECD
IEA), 2011). The new initiative actually deals with the share of energy produced from renewable sources and not with the share of electricity, as was the case of the preceding initiative. That is why meeting the new targets, which the European Union has set for itself, will only be possible with constant attention from government institutions. Its outline was part of the proposed update of the State Energy Concept of the Czech Republic from February 2010 and was also incorporated into a proposed new act on renewable energy sources, the wording of which was prepared by the Ministry of Industry and Trade of the Czech Republic and which is currently undergoing an approval process. The National Action Plan for Energy from Renewable Sources (2010), approved by the Government of the Czech Republic Resolution no. 603 of 25 August 2010, established a number of policies and measures for achieving the targets for 2020. It is anticipated that the regulatory, financial and information measures should result in an increase in installed capacity and energy generated from RES and in an overall decrease in electricity consumption as well, i.e. savings. The plan will be evaluated and updated at least once every two years.
7. Conclusion It is obvious that renewable energy sources have become an important part of the Czech Republic’s energy mix (Kavina et al., 2009), Fig. 1. It is necessary to regard the use of renewable energy sources as a complex process, whose main goals may be viewed as an attempt of dealing with the limited reserves of energy minerals and also, simultaneously, with some ecological issues connected with energy supply for human society. This
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development, which is based on the scientific and technological progress of human society, must overcome a number of problems. Due to its urgency, it undoubtedly deserves the attention of government and non-government institutions, devoid of misuse for short-term political goals. That is why the Czech Republic as well, no matter how positive its current position regarding the share of electricity generated from the domestic mineral resource base appears to be, must continue to deal with the given problem from a perspective of long-term development. At the same time, it is apparent that increased use of energy from renewable sources leads to (at least given the circumstances of the Czech Republic) rising final energy prices for consumers. The purchase prices of this energy are higher than of energy from ‘‘typical resources’’, i.e. fossil fuels (e.g. del Rı´o, 2011; Boeters and Koornneef, 2011; EC, 2008, p. 4). With increased use of energy from renewable sources, sharply rising costs for the electricity distribution grid may be expected as well. Increased use of biomass for energy purposes is causing a rise in food prices. The authors are of the opinion that the planned levels of energy use from renewable sources should be revised more often depending on the above-mentioned factors so that the use of renewable sources increases energy security and optimizes the energy mix without becoming economically uncompetitive. In conclusion, it would be appropriate to include information on the fulfilment of the indicative target for the share of renewable energy sources in gross electricity consumption in other EU-countries, thus putting the data into a broader perspective. However the relevant and verified data, published by Eurostat, will not be available until the first half of 2012.
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Energy Policy journal homepage: www.elsevier.com/locate/enpol
Communication
Czech Republic and indicative targets of the European Union for electricity generation from renewable sources Martin Sivek a, Pavel Kavina b, Veronika Malecˇkova´ a, Jakub Jira´sek a,n a b
ˇ Institute of Geological Engineering, Faculty of Mining and Geology, VSB—Technical University of Ostrava, 17. listopadu 15/2172, 708 33 Ostrava, Czech Republic Raw Materials and Energy Security Division, Ministry of Industry and Trade of the Czech Republic, Na Frantiˇsku 32, 110 15 Praha 1, Czech Republic
a r t i c l e i n f o
abstract
Article history: Received 22 September 2011 Accepted 24 January 2012 Available online 21 February 2012
In 2010, the Czech Republic was one of the states of the European Union, which met the indicative target for the share of renewable energy sources in gross electricity consumption. That year, gross electricity generation from renewable sources amounted to a total volume of 5851 GWh, which corresponds to 8.24% of gross electricity consumption in the Czech Republic in the given time period. The largest share of the total came from hydroelectric power plants (47.7%) and biomass power plants (25.8%), and a smaller share from photovoltaic power plants (10.5%), biogas power plants (8.7%) and wind farms (5.7%). Compared with 2009, the highest year-on-year growth came from photovoltaic power plants (527 GWh, 44.2%) and, as far as other renewable sources are concerned, electricity generation at hydroelectric power plants (360 GWh, 30.2%) and biogas power plants (184 GWh, 15.4%) rose more sharply as well. & 2012 Elsevier Ltd. All rights reserved.
Keywords: Indicative targets Czech Republic European Union
1. Introduction The use of energy from renewable sources belongs among the important objectives of the energy policy of the European Union. Its achievement was supported by the European Union by adopting legislative measures, specifically EU Directive 2001/77/EC on the promotion of electricity produced from renewable energy sources in the internal electricity market. The directive, on one hand, set a global target of 12% of gross national electricity consumption from renewable energy sources by 2010 and, on the other hand, a global indicative target of a 22.1% share electricity produced from renewable energy sources in the total gross electricity consumption of the European Community by 2020. This goal was confirmed by EU Directive 2009/28/EC, which made the indicative targets for 2020 binding and which set the EUs binding global target at 20.0%. The main legislative initiative of the European Union concerning the use of renewable energy sources occurred during the period of accession talks regarding the Czech Republic’s entry into the union. Accession negotiations with the Czech Republic commenced in 1998, and concluded in December 2002 at the European Council meeting in Copenhagen. On 1 May 2004, the European Council decided to admit the Czech Republic to the European Union. The national indicative targets of the Czech Republic concerning the use
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of energy from renewable sources thus became part of the negotiations on accession to the European Union. Definition of terms used: – gross national electricity consumption: national electricity production, including autoproduction, plus imports, minus exports – net national electricity consumption: gross national electricity consumption, minus self consumption of generators, minus network losses, minus hydropower PSPS consumption – gross national electricity generation: national electricity production, measured at the outlets of generators – net national electricity generation: gross electricity generation minus own consumption of power plants
2. National indicative target of the Czech Republic for electricity generation from renewable sources for 2010 The negotiations regarding the level of the national indicative target of the Czech Republic for 2010 were complex. The reason for this was primarily the fact that, from the outset, the representatives of the Czech Republic demanded a lower national indicative target than the global target of the European Union, which was set at 12%. This stance resulted primarily from: 1. the existing and relatively low share of electricity produced from renewable sources (3.15% of gross electricity generation in year 2000—Energy Regulatory Office (2002), see Fig. 1),
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Fig. 1. Percentages and structure of gross electricity generation in the Czech Republic in 2000 (73 466 GWh) and 2010 (85 910 GWh). Source: State Energy Conception, 2004 and Energy Regulatory Office, 2011.
Fig. 2. Indicative targets of individual Member States of the EU 27 for 2010. Note: The national indicative targets of Member States accepted to the EU after publication of the directive were negotiated individually as part of accession talks and conditions. Source: Directive 2001/77/EC of the European Parliament and of the Council of 27 September 2001.
2. the low predicted expansion of electricity generation from renewable energy sources (e.g. Bufka, 2006), during the time horizon of the ongoing talks on the accession of the Czech Republic to the European Union. The development of both of the above-mentioned indicators was the main reason for the careful stance of Czech representatives during negotiations regarding the level of the national indicative target of the Czech Republic. An overview of the parameter values for electricity generation from renewable energy sources (RES) at the halfway point of the negotiations on accession to the European Union are illustrated in Fig. 1. The predicted future development of this indicator mostly pointed to the Czech Republic’s unsuitable climatic conditions for increased use of renewable sources in electricity generation and to the exhaustion of existing sources, primarily of electricity produced at hydroelectric power plants. Last but not least, it
was also necessary to consider economic factors, as well as technological factors. The accession negotiations concerning the share of electricity generation from renewable sources resulted in the acceptance of a national indicative target of an 8% share of electricity from renewable sources in gross domestic consumption in the Czech Republic in 2010 in the accession treaty (Act concerning the conditions of accession of the Czech Republicy, Annex II, Chapter 12, Item 8a—see EU, 2003). The acceptance of the abovementioned commitment became a subject for discussion and comments on a technical as well as political level. Ecologically oriented organizations considered the negotiated national indicative target to be extremely low when compared with other members of the European Union (Fig. 2), while (mostly technically) oriented institutions mostly considered the negotiated level of electricity generated from renewable sources for 2010 to be ˇ unrealistic (opinions in e.g. Safaˇ rı´k, 2004; Kucˇera, 2004a,b,c,d; Beranovsky´ and Truxa, 2004; Pretel, 2005; Jakubes, 2004).
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3. Legislation guaranteeing the fulfilment of the national indicative target for 2010 Directive 2001/77/EC of the European Parliament and of the Council, which set a 12% global indicative share of electricity from renewable energy sources in gross domestic electricity consumption in 2010, from which the national indicative targets of individual states were derived, was partially incorporated in the Czech Republic into an amendment of Energy Act No. 670/2004 Coll. Although the target of 8% of electricity produced from renewable sources was also part of the State Energy Concept of the Czech Republic, which was approved in March 2004, further development in meeting this goal was complicated, primarily by a number of administrative problems and hurdles. The main problems were delays in the adoption of necessary legislation (see Bursı´k and Kucˇera, 2005). The most serious of these was the delayed approval of Act No. 180/2005 Coll., on the promotion of electricity generation from renewable sources, with which Directive 2001/77/EC of the European Parliament and of the Council was implemented into Czech law. Act No. 180/2005 Coll. was originally supposed to be approved already prior to the Czech Republics entry into the European Union, however in reality it did not go into effect until 1 August 2005 and newly renamed as the ‘‘Act on the promotion of electricity generation from renewable energy sources and amending certain acts (Act on Promotion of Use of Renewable Sources)’’ (Motlı´k et al., 2007). Related guidelines were expected to be issued based on the act. They were prepared, approved and also issued. Although it may seem that nothing would hinder the expansion of electricity generation from renewable sources any longer after Act No. 180/2005 Coll. was published, the growth in the volume of energy produced from these sources continued to reach low values (Fig. 3). Until 2009, regular reports on the share of electricity produced from renewable sources, and also other materials concerning the problems mentioned, basically claimed unanimously that meeting the national indicative target of the Czech Republic for the share of electricity generation from renewable sources was unrealistic.
4. Domestic electricity generation from renewable sources in 2010 The results from 2008 and even those from 2009 did not indicate the fact that a turnaround in electricity generation from renewable sources would occur and that the Czech Republic
Fig. 3. Share of electricity generated from renewable sources in gross domestic consumption. Source: Report on Achievement of the Indicative Target for Electricity Generation from Renewable Sources for 2009 (2010).
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would meet the national indicative target for 2010 (Fig. 3). After all, the share of renewable sources amounted to only 5.66% of the gross electricity generation mix in the Czech Republic in 2009, which produced a total of 82 250 GWh of electricity (gross production, i.e. production of electricity measured at the outlets of generators). Although the share of electricity generated from renewable sources in gross domestic consumption (an indicator representing the national indicative target in 2010) continued to grow, it amounted to only 6.79% (Fig. 4) in 2009. Also the forecasts for electricity generation from renewable energy sources for 2010, which were prepared and published in 2009 (for example in the materials of the Ministry of Industry and Trade of the Czech Republic or in the estimates included in the ‘‘National Action Plan of the Czech Republic for Renewable Energy Sources (2010)’’, which was also approved by the Government of the Czech Republic), unanimously expected production from renewable sources to cover only 7.4% of gross domestic electricity consumption. The first document to acknowledge the possibility of meeting the indicative target of an 8% share of electricity generated from renewable sources in gross domestic consumption, was the ‘‘Report on Achievement of the Indicative Target for Electricity Generation from Renewable Sources for 2010 (2011)’’ prepared by the Ministry of Industry and Trade of the Czech Republic in collaboration with the Energy Regulatory Office of the Ministry of the Environment of the Czech Republic from August 2010. The authors conditioned the possibility of meeting the given indicator by the positive development of a number of factors, such as the development of hydrological conditions, biomass harvesting and also of external factors that, for example, included the level of domestic consumption or export of electricity. To a larger extent, the published results for 2010 were therefore a surprise (Table 1). According to the Energy Regulatory Office (2011), power plants using renewable energy sources generated roughly a total of 5851 GWh of gross electricity in 2010, which meant an 8.24% share of final consumption. This percentage of electricity generated from renewable sources meant that the indicative target (8% share of electricity generation from renewable sources in gross domestic consumption in 2010) was not only met, but also surpassed by nearly 0.3%. The main reasons why the indicative target for 2010 was met are best shown by comparing the results from 2010 and 2009 (Fig. 5). The comparison shows that the target for 2010 was met primarily due to: 1. an increase in electricity generation at hydroelectric power plants influenced by favorable climatic conditions, 2. an increase in installed capacity of photovoltaic power plants in 2009 and primarily in 2010,
Fig. 4. Trend of the shares of individual RES in electricity generation in 2000– 2010. Source: Energy Regulatory Office (2002–2011).
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3. an increase in electricity produced from biogas in 2010 compared with 2009. The nature of the above-mentioned main reasons for meeting the indicative target for 2010 clearly indicates that further steady expansion of the use of renewable energy sources in the Czech Republic will continue to require constant attention from government institutions, including investment support from state support programmes as well as from structural funds of the European Union. In its ‘‘Report on Achievement of the Indicative Target for Electricity Generation from Renewable Sources for 2010 (2011)’’, the Ministry of Industry and Trade of the Czech Republic lists the following conditions for permanent and steady expansion of the use of renewable energy sources: 1. maintaining the principle of operational support based on return on investments, 2. not restricting support of economically viable methods regarding the use of renewable energy sources (investment support at a level of 20–30% of capital expenditures), 3. steady support of the agricultural sector.
Table 1 Gross electricity generation from RES in 2010. Source: Energy Regulatory Office (2011). Source
Gross generation Share in renewable sources (%)
Share in total consumption (%)
47.70
3.94
25.82
2.12
509.40 89.30 335.50 615.70
8.70 1.53 5.73 10.52
0.72 0.13 0.47 0.87
5854.50
100.0
8.24
Generation (GWh)
Hydropower Conventional Pumped-storagen
3380.60 2792.70 587.90
Biomass Non-food energy crops Waste from wood Biomass with other material use
1511.90 269.90
Biogas Landfill gas Wind power Solar power Total n
665.80 576.20
Net value (i.e. gross electricity generation less own use of power plants).
The conclusions mentioned in the cited report of the Ministry of Industry and Trade of the Czech Republic are also relevant today, especially when in January 2008 the European Commission presented an ‘‘ecological package’’, which proposed another increase in the targets of the European Union in the areas of RES expansion and climate protection by 2020.
5. Notes on the growth in the share of electricity generated from RES The growth in the share of energy generation from renewable sources in the Czech Republic is primarily the result of the adoption of appropriate legislation. The fact that the increase was so sharp and that in 2010 the Czech Republic met the indicative target of an 8% share of energy from renewable sources in gross domestic consumption may be explained by the positive development of several factors: 1. The share of energy from hydroelectric power plants remained high and even increased due to favorable climatic conditions. The generation of 2982.7 GWh achieved in 2009 and of 3380.6 GWh in 2010 may be attributed not only to long-term modernization of hydroelectric power plants, but also primarily to favorable rainfall-runoff conditions in individual drainage basins. In terms of rainfall, 2010 was well above-average, the total precipitation depth reached 129% compared to the long-term norm, and it was the wettest year in the past 37 years (Czech Hydrometeorological Institute, 2011). As a result, the average annual discharge rates were higher than usual in all five drainage basins of the Czech Republic (Vltava, Morava, Labe, Ohˇre and Odra drainage basins). For example, in the Morava drainage basin they reached 142–191% of long-term average annual discharge rates (Chyba et al., 2011), and in the Odra drainage basin 165–210% of long-term average annual discharge rates (Povodı´ Odry, 2011). 2. Strong political and economic support for the expansion of photovoltaic power plants (Table 2). That lead to a sharp increase in their installed capacity from 39.5 MW in 2008 to 464.6 MW in 2009 to 1959.1 MW in 2010 (Energy Regulatory Office, 2009–2011). Due to financial and technical reasons, this development was slowed down in February 2010 by the stateˇ owned company CEPS, a.s. (the Czech transmission system operator), which requested distribution companies to stop issuing permits for the connection of new photovoltaic power plants.
Fig. 5. Comparison of the structure of gross electricity generation from RES in the Czech Republic in 2009 (4655.0 GWh) and 2010 (6442.4 GWh). Source: Energy Regulatory Office, 2011.
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Table 2 Approximate development of the purchase prices of electricity generated from RES in 2006–2012 for new sources put into operation for a given year. Prices are given in CZK/MWh without VAT. The distributor is obliged to purchase all the electricity generated from RES and purchase prices are fixed for 15 þ5 years. Source: Price decision of the Energy Regulatory Office (2005–2011).
Small hydropower stations Pure biomass burning Biogas burning Wind power Geothermal energy Solar power (installed capacity r 30 kW) Solar power (installed capacity 4 30 kW)
2006
2007
2008
2009
2010
2011
2012
2340 2930 2230 2460 4500 13200 13200
2390 3375 2270 2460 4500 13460 13460
2600 4210 3900 2460 4500 13460 13460
2700 4490 4120 2340 4500 12890 12790
3000 4580 4120 2230 4500 12250 12150
3000 4580 4120 2230 4500 7500 5900
3190 4580 4120 2230 4500 6160 7650
Notes: 1. Detailed definitions of each category and other categories of sources are listed by the Energy Regulatory Office, some categories were defined slightly differently in 2006–2007.
Fig. 6. Indicative targets of individual Member States of EU 27 for 2020. Source: Directive 2009/28/EC of the European Parliament and of the Council of 23 April 2009.
3. A decrease in the total domestic production and consumption of electricity due to the global economic development. The highest gross domestic electricity production was reached in 2007–88 198 GWh compared to 2010–85 910 GWh. The highest gross domestic electricity consumption was reached in 2008–72 049 GWh compared to 2010–70 962 GWh (Energy Regulatory Office, 2011; Energy Regulatory Office, 2009).
6. Targets of the European union for the share of electricity generation from renewable sources in 2020 The proposals of the European Commission concerning the increase in the targets of the European Union in the areas of RES expansion and climate protection by 2020 were incorporated into Directive 2009/28/EC of the European Parliament and of the Council on the promotion of the use of energy from renewable sources and amending and subsequently repealing Directives 2001/77/EC and 20003/30/EC. In the area of use of energy from renewable sources, the European Union committed to increasing its share in gross energy consumption to 20% in 2020. The Czech Republics target for 2020 is set at 13%. The national overall targets of individual Member States of the European Union, which supplement the mentioned directive, vary considerably. They range from 10 to 49% (Fig. 6). The process of carrying out the new European Union initiative will be considerably more complex than the achievement of the national indicative targets for the share of electricity generation from renewable sources in 2010. It could be assumed that demand and therefore generation of electricity will be higher in 2020 than in 2010 (OECD International Energy Agency (OECD
IEA), 2011). The new initiative actually deals with the share of energy produced from renewable sources and not with the share of electricity, as was the case of the preceding initiative. That is why meeting the new targets, which the European Union has set for itself, will only be possible with constant attention from government institutions. Its outline was part of the proposed update of the State Energy Concept of the Czech Republic from February 2010 and was also incorporated into a proposed new act on renewable energy sources, the wording of which was prepared by the Ministry of Industry and Trade of the Czech Republic and which is currently undergoing an approval process. The National Action Plan for Energy from Renewable Sources (2010), approved by the Government of the Czech Republic Resolution no. 603 of 25 August 2010, established a number of policies and measures for achieving the targets for 2020. It is anticipated that the regulatory, financial and information measures should result in an increase in installed capacity and energy generated from RES and in an overall decrease in electricity consumption as well, i.e. savings. The plan will be evaluated and updated at least once every two years.
7. Conclusion It is obvious that renewable energy sources have become an important part of the Czech Republic’s energy mix (Kavina et al., 2009), Fig. 1. It is necessary to regard the use of renewable energy sources as a complex process, whose main goals may be viewed as an attempt of dealing with the limited reserves of energy minerals and also, simultaneously, with some ecological issues connected with energy supply for human society. This
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development, which is based on the scientific and technological progress of human society, must overcome a number of problems. Due to its urgency, it undoubtedly deserves the attention of government and non-government institutions, devoid of misuse for short-term political goals. That is why the Czech Republic as well, no matter how positive its current position regarding the share of electricity generated from the domestic mineral resource base appears to be, must continue to deal with the given problem from a perspective of long-term development. At the same time, it is apparent that increased use of energy from renewable sources leads to (at least given the circumstances of the Czech Republic) rising final energy prices for consumers. The purchase prices of this energy are higher than of energy from ‘‘typical resources’’, i.e. fossil fuels (e.g. del Rı´o, 2011; Boeters and Koornneef, 2011; EC, 2008, p. 4). With increased use of energy from renewable sources, sharply rising costs for the electricity distribution grid may be expected as well. Increased use of biomass for energy purposes is causing a rise in food prices. The authors are of the opinion that the planned levels of energy use from renewable sources should be revised more often depending on the above-mentioned factors so that the use of renewable sources increases energy security and optimizes the energy mix without becoming economically uncompetitive. In conclusion, it would be appropriate to include information on the fulfilment of the indicative target for the share of renewable energy sources in gross electricity consumption in other EU-countries, thus putting the data into a broader perspective. However the relevant and verified data, published by Eurostat, will not be available until the first half of 2012.
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