Report
Analysis of best practices in other markets for
implementation of the tracking system for energy generated from
renewable sources, as applied exclusively to wind turbines.
Tsurkan D.V.
TABLE OF CONTENTS
1.
INTRODUCTION ....................................................................................................................3
2.
COUNTRIES: ..........................................................................................................................4
2.1.
CHINA .................................................................................................................................4
2.2.
DENMARK ..........................................................................................................................6
2.3.
SWEDEN .............................................................................................................................8
2.4.
UNITED STATES ................................................................................................................9
2.5.
GERMANY ........................................................................................................................10
2.6.
UKRAINE ..........................................................................................................................11
2.7.
RUSSIAN FEDERATION .................................................................................................14
2.8.
POLAND ............................................................................................................................15
3.
CONCLIUSION ..................................................................... Error! Bookmark not defined.
1. INTRODUCTION
Here and elsewhere, the information is given as follows:
Italics – general information,
Normal font – legislation and electric power metering and tracking systems.
By the beginning of 2015 total install capacity of all wind power generators was 369
gigawatt. At the beginning of 2015 the amount of electric power produced by all wind power
generators in the world was 706 terawatt-hours (3% of all electric power produced by the
humankind).
Some countries develop wind power in an especially intensive way, in particular, in 2014
wind power generators produced 39% of all electricity in Denmark; 27% in Portugal; 21% in
Nicaragua; 20% in Spain, 19 in Ireland; 8% in Germany; 7.5% in the EU. At the beginning of
2015, 85 countries in the world used wind power on a commercial basis. Following the results of
2014, over 800 000 work in the wind power sector worldwide (including 356 000 in China and
138 000 in Germany). In 2014 39% of electric power was generated from wind energy in
Denmark. On October 28, 2013 Danish wind power generators produced 122 percent of
consumed electricity.
In 2014 German wind power plants produced 8.6% of all produced electric power. In
December 2014 wind power provided 164% of the electricity consumed by households in
Scotland.
The main purpose of this report consists in the analysis of market (including legislation of
the countries) and tracking and metering systems for electric power produced from renewable
energy sources with a view of transposition into the market of the Republic of Belarus.
Taking into consideration long established electric power purchase and sale markets in
the US, China and the European Union countries (Denmark, Germany, Sweden), the main
emphasis is made on the neighbouring countries (Russia, Poland, Ukraine).
2. COUNTRIES:
2.1. CHINA
In 2014 China produced more electricity using wind power than using nuclear power –
153.4 TW-h versus 130.5. Or, in other terms, 2.78 (wind) and 2.36 (nuclear power) percent of
total electric generation in the country.
Slowdown in economy against the background of development of alternative caused
another effect. According to the results of 2014, the volume of thermal power generation from
fossil fuel sources decreased (by 1%).
In one way or another, following the results of 2014, the People’s Republic of China
added 21 GW of wind turbines capacity, bringing the total capacity to 96 GW.
China has plans to achieve the following performance in wind power: 200 GW by 2020
(output at the level of 400 TW-h, 5% of total generation), and 200 GW (output at the level of 840
TW-h, 8.4% of total generation) by 2030.
Thus, it is planned to commission approximately 20 GW capacities every year.
By comparison, nuclear power plants capacities were 20.3 GW at the end of 2014.
Plans provide for 58 GW by 2020. The accident at Fukushima nuclear power plant resulted in a
temporary ban for construction of new reactors. Furthermore, new projects were actually frozen
to conduct checks for compliance with all safety standards. Now, this period is probably coming
to an end. Construction of two 1 GW units has been approved recently, for the first time after the
accident at Fukushima.
Conspicuous is the fact that, given almost equal electricity output (following the results
of 2014) at nuclear power plants and wind turbines, installed capacities are almost five times
different. In this case, explanation is simple – nuclear power plants traditionally work at full
capacity, while wind power plants work only to the extent possible.
The ICUF (installed capacity utilisation factor) for wind turbines targeted in the plans
for 2020 is equal to 23%. (Generation of 200 GW at hypothetical 100% ICUF would give
200*365*24=1752 TW-h, while plans provide for only 400 TW-h. 400/1752=0.23.) Following
the previous year results, the ICUF was 21%. The cost of power produced by wind turbines is
usually calculated based on the ICUF = 25%.
1000 GW capacities (and 2200 TW-h) are planned for 2050, corresponding to 17% of
all electric power generation.
The difference between wind electricity cost and standard electric power price is
compensated from a special fund that is formed through allocations made during sale of all
electric energy in the country.
But sweeping RES development has resulted in already evident shortage of money in
the fund. And this is despite the fact that the amount of allocations to the fund has grown 15
times: from 0.001 yuan for kW-h in 2006 to 0.015 in 2013.
By comparison, the purchase price for the wind electricity itself amounts to 0.51 – 0.62
yuan for kW-h. And the standard price for electricity from coal plans falls within range 0.28 –
0.5 yuan for kW-h, depending on the region.
The main problem related to the electric power transmission system – there is no
structure of trunk transmission lines.
In 2014 the PRC government signed an energy decree that was given the name Decree
412. The document introduced new quality control rules for wind turbines, for example,
obligatory certification for all turbine parts. Until then many regions gave preference to local
manufacturers that often produced turbines in haste, without ensuring compliance with
international quality standards. This caused frequent accidents, failures in electricity output and
as a result undermined authority of the industry in general. According to experts, low-quality
wind turbines that filled the Chinese market have become the significant deterrent for the
industry and an additional risk for investors. Today the Chinese government tries making the
procedure of supply selection as transparent as possible. Now, according to Decree 412, local
authorities do not have the right to interfere in the tender process. Also, attempts have been made
to regulate the stage of turbines warranty and post-warranty service. This is related to a huge
number of complaints about absence of qualified maintenance service after installation of wind
turbines.
Thus, units and electric energy output are metered at several stages, but after volumes of
generated electric energy are accepted and approved by the regulatory authority.
Applications are submitted into a special fund in order to receive subsidies and cover
costs for the electric energy buyers from the state. The amount of electric energy is metered at
the points of delivery into the power system and metered at the point of delivery to the
consumers by means of electricity meters and documents certifying the sale of electric energy.
The regulatory authority and buyer of electric energy is the State Electricity Regulatory
Commission (SERC). Being represented by regional structures, the Commission carries out
electric energy purchasing and metering at all levels: province, region, national market.
2.2. DENMARK
Today Denmark holds one of the leading positions in the European wind power sector.
Danish companies installed over 90% of offshore wind turbines in the world. The main objective
of the state is to reduce the energy cost, at the same time the plans of the country’s government
provide for remaining the dominant player in market of offshore wind turbines for long years.
For reference: Coastal areas are considered to be the most promising places for
wind energy generation. But the cost of investments is 1.5 – 2 times higher as
compared with the land. Offshore wind power plants are built in the sea, at the
distance of 10 – 12 km from the coast (and sometimes even at a greater distance).
Wind generator towers are installed on pile foundations rammed up to 30 metres
deep. An offshore power plant also comprises distribution substations and submarine
cables to the coast.
Apart from piles, other types of underwater foundations may be used for turbine
fixation, as well as buoyant foundations.
The cost of electricity generation at offshore wind power plants varies from 200 to
125 US dollars / MW-h.
Denmark started development of its wind power in the 1970-s following economic
consequences caused by growth of oil prices. In the 1980-s the Danish government made a
decision to reduce CO2 emissions by 22% by 2005 as compared with 1988. After the Chernobyl
accident the Danish government banned construction of nuclear power plants in 1988.
The first industrial wind turbine was installed in Denmark in 1976. 5252 wind turbines
of total capacity equal to 4860 MW operate in Denmark.
In all aspects, Denmark is one of the leaders in clean wind power production per capita
not only in Europe, but all over the world.
75% of wind turbines are owned by private investors. Around 100 thousand Danish
citizens made investments into wind power. A half of wind power generators are owned by
cooperatives.
The plans of the county’s government stipulate that by 2020 50% of the total amount of
energy produced will be received from the wind sector continuously in the course of the whole
year. 100% of electricity is planned to be produced by RES as early as by 2050.
The Danish national budget does not provide for any funds for promotion of the use of
renewable energy sources. Such funds are formed by collection of an additional electricity tax
from natural and legal persons, so called PSO – Public Service Obligation, in the amount of 21.8
oera/kW-h [1] (as of the III quarter 2015). According to the experts’ estimates, in 2015 the
average tariff will amount to 20.9 oera/kW-h (0.028 €/kW-h).
For reference: the PSO tax was introduced in connection with liberalisation of power
markets in 1998. In its current form, it has been collected from the consumers since 2005.
Collected amounts of PSO are deposited on a special account of the state power distribution
company Energinet.dk. In 2014 proceeds from the PSO tax were 1.23 bln dollars as compared
with 1.02 bln dollars in the previous year.
The amount of the PSO tax is directly linked with the electricity price level – when
wholesale prices decrease, the tax is increased, and vice versa. Moreover, if the prices for
traditional energy sources are low, the amount of PSO is also increased.
Years
Proceeds from the PSO tax,
mln. krone
Amount of PSO for kW/h,
in oera **
2015*
7.104
21.8*
2014
6.874
21.6
2013
5.734
17.4
2012
5.121
15.5
2011
2.601
7.7
2010
3.004
8.6
2009
3.549
10.6
* forecast made by Energinet.dk
** oera – a hundredth part of the Danish krone (USD/DKK rate in 2013-14 = 5.62)
An average Danish family (two adults and two children) paid 1350 krone (240 dollars) for
the PSO tax in 2014.
Metering of the energy produced by plants on the ground of documents received by the
consumer directly at the point of delivery to the power system, with the exception of own needs,
is confirmed by a green certificate that subsequently form the purchase and sale market. Having
received an electric power confirmation certificate, any market participant may sell electric
power not only in their internal market.
The green certificates are the certificates that confirm generation of a certain volume of
RES-based electric power. These certificates are received only by producers qualified by a
respective authority. A green certificate may be sold either together with produced electric
power, or separately, providing additional support to the electric power producer. Special
software and hardware tools are used to track issuance and ownership of green certificates.
According to certain programmes, certificates may be accumulated (for subsequent use in the
future), or borrowed (to fulfill obligations in the current year). The driving force of green
certificates circulation mechanism is the necessity to fulfill obligations assumed by companies
on their own initiatives or imposed by the government.
2.3. SWEDEN
Sweden consumes approximately 150 TW-hours of electricity a year, with wind power
plants accounting for about one third of this amount. Several times as much is imported from
Denmark, which also produces energy.
Despite low tariffs for electric power, a record sum of 12 billion Swedish krona (1.5
billion dollars) was invested into the wind power in Sweden in 2014, as reported by
Vindkraftnytt.
The Swedish parliament set a task of achieving the electric power production level of 30
TW-h by 2020, with 20 TW-h of them produced by onshore capacities and 10 TW-h by offshore
capacities. An important landmark in promotion of this objective is the project Markbygden in
the province of Norrbotten that provides for installation of a total of 1101 WMs by 2020.
A similar electric power metering and tracking system is in Denmark.
In addition, the main tool for electric power trading in Sweden, like in other countries of
the Northern Europe, is the NordPool exchange. The NordPool exchange is the main electric
power pricing tool in Sweden. NordPool spot prices (prices for electric energy supply on the next
day) are used as accounting prices both for deliveries to industrial consumers and in settlements
with individual consumers.
2.4. UNITED STATES
The United States are the global leader in reduction of greenhouse gas emissions related to
climate changes.
In this decade the wind power became the fastest growing power sector of the United
States. Facilities with total capacity of over 60 gigawatt, which is sufficient for power supply of
16 million houses, were commissioned and the wind power cost reduced by more than 90
percent.
Wind turbines currently provide electricity to the customers in the most part of 50 states,
producing 4.5 percent of the national electric power annually. According to forecasts made in
the report of the Department of Energy dated March 12, this share will grow to 10 percent in
2020 and 35 percent in 2050.
In five recent years the levelised cost of electricity (LCOE) received from wind farms in the
US reduced by 58%. The price of “solar” electricity dropped even more – by 78%. At this
moment the average cost of 1 MW-h produced by solar power plants is 56 dollars (5.6 cents for
a kW-h), by wind power plants – 14 dollars. This is inclusive of public subsidies. Without them,
the cost of solar electric energy comes up to 72 dollars for MW-h and the cost of wind energy –
up to 37 dollars. The price of electric power received at gas and coal plants has practically not
changed in the course of recent 5 years and amounts to 61 dollar and 66 dollars for a MW-h,
respectively. Thus, even without subsidies the same wind energy became almost twice cheaper
than traditional one.
The state subsidises only research activities and manufacture of the equipment for wind
power sector.
The levelised cost of electricity (LCOE, Levelised Cost of Electricity) is the average
estimated cost of electric power production in the course of whole lifecycle of the unit. It takes
into consideration different aspects – initial investments, power plant operating and servicing
costs, fuel price and the cost of capital – and is used for comparison of the production using
different sources.
A new power plant receives a credit against tax (but not subsidies) in the amount of $0.015
for each produced kW-h of electric power. The tax concession is valid for 10 years. A standard
with a requirement to produce and purchase an approved volume of power produced by means of
RES is widely used in the US.
Regulation, tracking and metering of electric power at the level of individual states is
carried out by Public Utility Commissions with different official names and sets of powers in
different states.
As a rule, the field of competence of regional authorities comprises regulation of retail trade
based on acceptance certificates for delivery, to the system, of the electric power produced from
renewable sources within a state and for electric power, organisational issues and issues related
to activity of utility power companies within a state.
2.5. GERMANY
Over 1700 wind turbines were installed in Germany in 2014. They supply the same amount
of electricity as two nuclear power plants, giving thereby an important impulse to use of
renewable energy sources.
Wind turbines of total capacity 4.8 GW were installed in 2014. In 2015 wind turbines will
generated around 38 GW of capacity in Germany, covering about 10 percent of the country’s
demand for electrical power.
A great breakthrough in the wind power is related to the nuclear disaster at Fukushima.
Germany decided to abandon nuclear power, eight nuclear reactors were immediately shut down
and remaining nine reactors must be closed by 2022.
To cover this capacity gap, the German state started development of wind power and
assigned new land plots for construction of wind turbines. Success of these measures is currently
evident: wind power capacity doubled in the period from 2011 to 2014.
In the meantime, offshore wind power gains confidence as well. 142 wind turbines of total
capacity 0.5 GW were connected in 2014. Offshore wind power also doubled and reached 1 GW.
After a long and hard start the wind power is gaining momentum in the sea.
Having a gross value of 10.67 billion Euros, the German wind power industry exports 67%
of manufactured wind turbine components, making thereby an important contribution into the
national economy. Today around 138 thousand persons work in the German wind power sector
(GWS Institute of Economic Structures Research, 2014). Income from collected municipal taxes
remain in the regions, strengthening their purchasing power.
According to the legislation, working in the open trade market, the green electric power
producer receives an increment to the market value of electricity – a bonus in the amount of 0.6
eurocent for a kW-h; 50% of this bonus, i.e. 0.3, the producer gives to the integrator as a
payment for their service, plus the integrator also gains a margin earned in the market for sale in
the exchange. The green electric power producer eventually receives a half of the bonus – an
increment in the amount of 0.3 eurocent for a kW-h of the cost of electric power. As a result,
integrator purchasing the power from renewable energy sources is responsible for its origin and
metering before the consumers at the electric power purchase and sale exchanges.
2.6. UKRAINE
In 2014 the Ukrainian wind power sector doubled production of wind energy. During
the previous year wind farms in the continental part of Ukraine produced 1123.7 mln kW/h of
electric power, corresponding to approximately 0.62% of the total electric power generation in
the country. In 2013 the wind power sector produced around 638 mln kW/h of electric power.
According to the data of the Ukrainian Wind Energy Association (UWEA), in 2014
126.3 MW of new wind power capacities were commission in Ukraine in 2014. Thus, as of
31.12.2014 the total WM capacity of the continental part of Ukraine was 409.5 MW.
At this moment three wind power plants are situated in the anti-terrorist operation
(ATO) area: Lutuginski and Krasnodonski wind farms (Luhansk region) and Novoazovski wind
farm (Donetsk region). Project construction of these WMs has been suspended.
Since 2010 the Ukrainian wind power sector attracted over €700 of investments. Only
during 2014 green electric power generated by wind farms enabled reduction of carbon-dioxide
emissions into the atmosphere by more than 500 thousand tones.
According to the UWEA experts, capacity of the Ukrainian wind power sector may
achieve 900-1000 MW by the end of 2015, and 3000 MW by the end of 2020.
The main deterrent for intensive development of wind power project in Ukraine is
imperfection of the Ukrainian Energy Strategy until 2030 in the issue of the share of energy
carriers received by means of renewable energy sources (RES), absence of a general strategy for
development of the renewable energy sector.
A special tariff for electric power produces by alternative energy sources, including
wind power, or so called green tariff (hereinafter referred to as the GT) was introduced by a
Law of Ukraine.
There was a clear differentiation about whether the GT amount for electric power
produced by means of wind power depends on the installed capacity of the whole WM or a unit
(wind turbine) and whether the GT is applied to a WM as a whole or to each unit (wind turbine).
A power plant construction stage may consist of start-up facilities.
As a result, the GT may be set not only for WMs, but also for construction stages (startup facility), if a WM is commissioned by stages (facilities). In this case the GT is set only after
commissioning of a certain WM stage (facility). The National Electricity Regulatory Commission
of Ukraine (NERC) may set a different amount of the GT for each such construction stage
(facility) of a power generating entity, provided that it is equipped with individual metering
equipment.
Article 17-1 of the Electric Power Law stipulates that for WMs, construction of which
was started after January 1, 2012, the GT is given subject to compliance with the requirement of
a “local component”. If the electric power producer cannot fulfill the local component
requirement, the electric power tariff is set at the level of wholesale market price that has been
actually formed during the previous settlement period, without taking into consideration any
subsidised certificates.
For WMs, of which was started after January 1, 2012, the local component volume is
set at the level of at least 30% for WMs commissioned after July 1, 2013 and at least 50% for
WMs commissioned after July 1, 2014.
Thus, for example, if a wind turbine tower and main frame were manufactured in
Ukraine, it means that the local component volume is 20% (15%+5%). If at the same time
construction works also have Ukrainian origin (20%), then the local component volume will be
40%, exceeding 30% stipulated according the legislation for the period before July 1, 2014.
The Electric Power Law (so called law on a new green tariff) will give significant tariff
incentives to hydropower plants, biofuel manufacturers and wind power (the green tariff
coefficient is from 1.2 to 2.3).
Pursuant to the Connection Rules, WMs are connected to power grids according to the
non-standard connection rules, with a view to the following specifics:
An electricity transmission organisation prepares, free of charge, and submits to the
customer a signed draft agreement on connection to power grids. Specifications are given to the
customer free of charge not later than in 15 working days after submission of the customer’s
application for connection of an electricity generating plant and 30 working days in case of
necessity to get an approval from the owner of bulk / international electrical power systems.
Project documentation for electricity generating plants of external power supply is
developed by an electricity transmission organisation at the expense of funds provided for in the
tariffs for electric power transmission and/or at the expense of repayable financial assistance
given by the customer of an electricity transmission organisation.
An electricity transmission organisation ensures implementation construction and
assembly works and commissioning of built or renovated electricity generating plants at the
customer’s point of connection. Based on Article 15 of the Electric Power Law dated July 24,
2013, the Council of Ministers of Ukraine adopted Resolution No. 771 On the Procedure of
Issue, Use and Termination of the Guarantee of Origin of Electric Power for Economic Entities
Producing Electric Power from Alternative Energy Sources. The guarantee is an electronic
document executed in accordance with Law of Ukraine On Electronic Documents and Electronic
Circulation of Documents. The guarantee is issued by the State Agency for Energy Efficiency
and Energy Saving of Ukraine (SAESEE) for the volume of electric power delivered to the power
grid for the operating period for each plant separately and contains information on the type of
alternative energy source used for electric generation, date of issue, information on location of
the electric power plant and the amount of electric power produced for the operating period
specified accurate within 1 MW.
The objective for introductive of the green tariff is promotion of development of new types
energy resources, attraction investments into technologies related to use of renewable energy
sources.
In Ukraine, green tariffs for electric power produced using various renewable energy
sources were adopted at the legislative level in 2009 and will remain effective until 2030.
The green tariff is a special tariff used by the state represented by Energorynok (Energy
Market) State Enterprise to purchase electric power produced using renewable energy sources –
sun, wind, biomass, as well as water (small hydropower plants) – from enterprises of different
forms of ownership and natural persons.
Apart from high-capacity industrial plants, this Green Tariff Law also covers private
households that installed solar batteries and/or windmills, guaranteeing purchase of surplus of
solar and wind power from solar plants and / or wind generators with capacity not exceeding 30
kW that are installed on private houses. The procedure of selling, metering and settlements for
solar energy produced by solar plants in households was fixed in the legislative form. Electric
power generated to the external network by a solar plant, as well as electric power consumed by
a household is metered by means of a two-way electricity supply meter connected to the
Automatic system for commercial accounting of power consumption (ASCAPC) through a
GSM-channel or wire connection. The household owner is responsible for acquisition of this
meter, the regional energy authority is responsible for provision of a data transmission channel.
According to the results of electricity supply meter registration received by the ASCAPC,
the regional energy authority issues an acceptance certificate for the electric power calculated
according to the Green Law Tariff, based on which payments are assigned to the owner of
household equipped with solar batteries.
A Draft Law on Amendments into certain laws of Ukraine with the Regard to Ensuring
Competitive Conditions for Production of Electric Power from Alternative Energy Sources No.
2010-д dated 19.05.2015 was adopted on June 4, 2015 by the Verkhovna Rada of Ukraine
(hereinafter referred to as “the Law”).
On July 14, 2015 the President of Ukraine signed the Law, which, according to the
effective legislation of the country, has entered into force today after its official publication on
July 15.
The volume of electric power, to which the green tariff is applied, is calculated by
deduction of electric power used for own needs of the plant from the total volume of electric
power produced by this station. Previously the green tariff was applied to the total volume of
produced electric power. For households, the difference between electric power produced and
consumed by a certain household may be sold using the green tariff.
The national regulatory authority - the National Electricity and Public Utilities
Regulatory Commission of Ukraine (NEPCRC) – develops a special procedure for purchase and
settlements for electric power using the green tariff with participation of the Wholesale Electric
Power Market of Ukraine, as well as the procedure for this electric power metering.
2.7. RUSSIAN FEDERATION
The system for support of RES at the wholesale market is effective from 2013. In
accordance with Resolution No. 449 of the Government of the Russian Federation On the
Mechanism of Promotion of RES Use at the Wholesale Market of Electric Power and Capacity
dated 28.05.2013, once a year ATS Open Joint-Stock Company (ATS OJSC) selects projects of
construction of wind power plants, solar power plants and small hydropower plants in order to
conclude agreements for delivery of the capacities that ensure return of investments at the
expense of increased payments on the part of consumers.
The government also approved a draft resolution defining price parameters for the trade
in capacity of RES-based generating units and draft changes relating to setting localization
requirements for such generating units. In general, all analysts agreed that it will have a
beneficial effect on development of the industry, attract new investments and increase capacity of
the RES energy park (6.2 GW of RES-based generation is stipulated by 2020, allowing increase
of this generation share in the current energy balance up to 2.5%, with the wind power plants
share accounting about 1%).
However, today, in Russia there is still no stable manufacturer of domestic megawatt
class wind power generators in demand by contemporary wind power sector. For this reason, at
this stage it is practically impossible to comply with the project requirements with regard to
localisation of wind turbines within offered time limits (55% in 2015, 65% — from 2016).
Today Russia receives 16.8 MW of capacity from wind farms. The largest wind power
plant is situated near settlement Kulikovo in Zelenograd district, Kaliningrad region, other large
electric power plants are in Chukotka, in Bashkortostan, Kalmykia and Komi. In the south,
northwest and east of the country, there are available sites ready for construction of wind farms
of capacity around 2500 MW. And there are also sites that only wait for design works for
commissioning of capacities for more than 3000 thousand MW. But now, nevertheless, the wind
power share in Russia accounts for 0.5 - 0.8% in the total energy balance.
Article 21 of the Federal Law No. 35-ФЗ On Electric Power assigns powers of the
Government of the Russian Federation in the field of use of renewable energy sources,
including:
1) providing support to the use of renewable energy sources and promotion of the use of efficient
power technologies in accordance with the fiscal legislation of the Russian Federation;
2) approval of criteria for provision of subsidies from the federal budget by way of compensation
of the cost of technological connection of generating units with installed generating capacity
over 25 MW recognised as qualified facilities operating on the basis of use of renewable energy
sources to the persons that hold such facilities on the right of ownership or another legal
ground.
Article 33 of the Federal Law On Electric Power assigns function of the Soviet Rynka
Non-Commercial Partnership (a non-commercial organisation established in the form of noncommercial partnership uniting, on the ground of membership, electric power entities and large
consumers of electrical and thermal energy), including:
1) recognition of generating units that function on the basis of use of renewable energy
sources as qualified generating units;
2) maintenance of the register of issue and redemption of certificates confirming the
volume of produced electrical power on the basis of renewable energy sources.
It appears that it is possible to distinguish the following signs that characterize
renewable energy sources:
1) renewability – these sources are inexhaustible, regardless of seasonal fluctuations,
geographic location of the energy processing device;
2) they may be used in the course of an indefinite period of time;
3) they are received by a particular method – unlike traditional energy sources, receiving
RES does not require use of special equipment for their prospecting and recovery. RES literally
surround the man;
4) ecological safety – use of RES is ecofriendly, because energy generation is not
accompanied by production of greenhouse gases, heat surplus and other hazardous processing
substances;
5) high-technology production – power generation by means of RES requires use of the
most up-to-date high-technology equipment.
The tracking system in the Russian Federation consists of several stages.
Qualification of generating units is carried out on the ground of applications from the
owners or other legal holders of the generating equipment.
The following documents must be attached to the application for qualification: certificate
of state registration and extract from the Unified State Register of Legal Entities, ownership
certificate or another title document for the generating unit in the name of the applicant,
generating unit certificate, generating unit project documentation, documents certifying
commissioning of the generation unit, its connection to power grids of a network organisation,
information on entry of the generating unit into the layout chart.
Qualifying criterion is operation of the generation unit on the basis of exclusive use of
renewable energy sources or in the mode of combined use of renewable and other energy source.
A RES-based generating unit is in operation (was commissioned and was not removed out for
repairs or decommissioned). The generating unit was duly connected to power grids of the
network organisation and equipped with metering tools complying with the requirements of the
electric power legislation of the Russian Federation.
A regulation on commercial accounting of electric power at qualified generating units
that operate in retail electric power markets is being developed. The regulation defines amounts
of electric power to be produced, consumed and delivered to the network by qualified RES-based
generating units, interaction in the part of furnishing information for execution and issuance of
certificates in confirmation of the volume produced by qualified RES-based generating units.
For the purpose of performing functions related to maintenance of the register of issue
and redemption of certificates confirming the volume of produced electrical power on the basis
of RES.
2.8. POLAND
In 2014 the number of renewable energy sources in Poland increased by 9.4% and
amounted to 6 GW. According to information from the Energy Monitoring Commission,
commissioning of additional wind power and solar plants increased the Polish renewable energy
volume from 5511 to 6029 MW in 2015. The amount of wind turbines increased by 13%,
reaching 3834 MW.
The largest Eastern European economy produces from coal almost 90% of its electric
power. It targets to make renewable sources account for at least 15% of its energy by 2020, as
required by the EU Regulation on industrial gaseous effluents.
The total Polish power producing capacity, including that of coal power plants, is about
38 GW that may be comparable with the volume of energy generated from wind in the
neighbouring Germany.
In 2014 Poland approved a draft law stipulating new long-term assignments for
renewable energy sources for the purpose of reducing consumer expenses, as well as
contributing to reaching the EU objectives in the field of environmental protection and climate
changes. Producers of renewable energy informed that uncertainty of the legal framework
prevented them from making new investments.
In accordance with the Polish Energy Act, there is stipulated issue of different certificates
to confirm that the seller produced and sold in the market a certain volume of renewable energy.
The following certificates types were set: green – energy generation by means of RES (solar,
wind energy, tidal, wave energy, hydro power, biofuel, biogas energy), brown – energy
generation using biogas. In addition, yellow, violet, red certificates are used to certify use of gas,
methane and other sources different from the listed above (for example, coal), respectively.
The energy law binds the electric power producers and suppliers to acquire a certain
quota of green certificates (certificates of origin). Otherwise companies may pay a duty. Failure
to fulfill one of these requirements entails a fine. Electric power producers may also sell their
electric power in the market or offer it to a supplier at the market prices of the previous year.
The electric energy producers bound by the quota system may receive grants and
subsidies.
Duty payment. Quota obligations may also be fulfilled by payment of the duty. Each year
the amount of duty is calculated in accordance with the formula set in a legislative way and
published.
Fines. If a producer fails to submit certificates of origin or pay a duty, than a fine is
imposed by the regulatory authority URE.
All energy companies that sell electricity to end users and are connected to polish power
grids must fulfill the quota obligation.
Moreover, electric energy suppliers that have a licenсe for supply of electric energy to
households that have not selected a certain supplier must buy electrical energy from renewable
sources at a fixed price from the producers situated in the same locality. The fixed price is the
average electrical energy price of the previous year. It is deemed as a regulator.
Submission of certificates of origin / green certificates. In witness of fulfillment of the
quota, companies must submit certificates of origin / green certificates. The regulatory authority
issues these certificates for electric energy received from renewable sources to power system
operators. Certificate of origin may be transferred or may be acquired in the course of production
of electric energy, or purchased from other producers. Duty payment. The quota obligation may
also be fulfilled by payment of the duty. Fines. If a company fails to submit certificates of origin
/ green certificates or pay a duty, than a fine is imposed by the regulatory authority URE.
Network operators must enter into renewable energy agreements with system operators.
However, they must apply unbiased rules to ensure equal rights to all power system operators.
Costs of connection of any power system to a network must be incurred by this power system
operator. Power systems that produce electric energy from renewable sources with capacity not
exceeding 5 MW have the right to be connected to the network for a reduced payment.
Network operators must sell electric energy from renewable sources in the first turn. The
network may be used only in the cases specified in the connection agreement. The minimum
contents of the connection agreement is given in the law worded in the legislative acts. Costs
related to network utilisation are included into the cost of electric energy. Thus, these costs are
incurred by the consumers through the electric energy prices.
3. CONCLUSION
The main factor of the tracking system for energy generated from renewable sources, as
applied exclusively to wind turbines, is the energy metering system (two-way ASCAPC)
installed directly at the point of delivery to the network. Subsequent distribution and metering of
this energy received by the consumers takes place in different forms in different countries,
depending on electric energy purchase and sale systems and markets.
The ASCAPC system for control and metering of produced energy is efficiently applied
the Republic of Belarus in full compliance with the current practice and contemporary
requirements. This system may ensure tracking of the electric energy from RES, excluding its
double accounting and possible frauds in this field.
With a view to the fact, that the power system in the Republic of Belarus is owned by a
monopolist, there should be developed measures aimed at purchase and sale of received electric
energy not only by the power system, but also be adjacent and distant consumers, regardless of
their form of ownership.
This entails the necessity to prevent “dissolution” of the energy from renewable sources
in the common energy flow and adoption of a more complex and flexible mechanism for
purchase and sale, exchange and even accumulation of electric power instead of simple payment
for it at an increased tariff in the system “Energosbyt (power supply company) – producer of
energy from RES”.
Example:
Issue of certificates for confirmation of the electric energy produced by wind farms in
the course of a month (half-year, year). Possibility to sell this energy to those interested to buy it
inside the country, regardless of their form of ownership.
Possibility to adopt this system for purchase and sale certificates for electric power from
RES without additional expenses on the part of sellers and buyers, state support to buyers of
electric energy from renewable sources may entail development of wind parks in the country.
Compensation of the increased tariff at the expense of the power system only should be
abandoned. At this moment the power system must just pay for the electric energy from RES at
the legislative level, without any incentives to buy it.
A possible modernisation of the power system as a whole, giving access to other
participants to the electric power purchase and sale power and to network operation markets,
incentives for purchasing electric energy from RES may entail competition in the market.
Another one tool for raising the investment attractiveness of wind farms construction is
reduction of the electricity transmission cost and making the mechanism of its purchasing by
distant consumers easier (including offsetting and possibility to accumulate electric energy), plus
decrease of complexity and reduction of the cost of connection to the utility lines of the power
system for both electric energy producers and buyers.
In January 2015 the International Renewable Energy Agency (IRENA) published a
voluminous study titled “Renewable Power Generation Costs in 2014”. “In many countries,
including Europe, the wind energy is one of the most competitive sources of new power
capacities… Certain wind power projects regularly supply electric power at the price $0.05 /
kW-h without financial support, while the fossil fuel power plants have the cost range of $0.045
– 0.14 / kW-h” – is reported by the Agency.
Estimated values given by the US Department of Energy for 2020 demonstrate that in
terms of levelised cost of electricity (LCOE) onshore wind power may be competed only by
combined generation on the basis of natural gas.
It is clear that capital costs and the cost of production of electricity using RES will
continue dropping, and, on the contrary, complexity and cost of the fossil fuel production will
grow. For this reason, in the next years electricity produced by wind power plants will become
cheaper than products of hydrocarbon generation, practically in all regions of the planet.
Relative greenhouse gas emissions
CO2 gramme-equiv. / kW-h
Wind
Sun
Biomass
Atom
Gas
Oil
Coal
Source: IPCC special report on renewable
energy and climate change mitigation
“Methods for assessment of external expenses for the environment” were offered by the
German Ministry of Environment. According to its estimates, external effects from electric
energy production amount to 8.9 eurocents for coal, 10.7 eurocents for brown coal, 4.9
eurocents for natural gas, 0.3 for wind, 0.2 for hydropower, 1.2 for solar energy, 3.8 for biomass
for each generated kilowatt-hour.
The International Energy Agency “estimates that global subsidies for consumption of
fossil fuel were $548 billion in 2013… These subsidies were almost four times higher than
amounts of subsidies given to renewable energy sources”.
In May 2015 the International Monetary Fund (IMF) published a working paper titled
“How Large Are Global Energy Subsidies?”. Calculations made by IMF researchers covered
coal, oil products, natural gas and electric power and took into consideration externalities
(external effects) discussed above. Conclusions made by the paper authors were “shocking”:
“energy subsidies are significantly higher than it was estimated before: — $ 4.9 trillion (6.5
percent of global GDP) in 2013, and, according to forecasts, they will reach $ 5.3 trillion (6.5
percent of global GDP) in 2015”, which is equivalent to $ 10 million a minute.
Unstable, weather-dependent nature of generation is deemed to be one of the main
drawbacks of wind and solar power.
The existing electrical network may be well used as an accumulator for quite significant
volumes of RES generation. Experience of the countries, where the share of changeable RES
generation exceeded 5%, 10% and more percent of the total amount of produced electric energy
(for example, Denmark, Ireland, Germany, Spain, Portugal, Great Britain) demonstrates that the
network “swallows” this amount of clean energy without any problems. Moreover, the study
conducted by the International Energy Agency underlines that a great part of changeable RES
energy (up to 45%) may be integrated into the power system without any significant cost
increases. Expansion of electricity transmission and distribution networks, their modernisation
are viewed as the most cost-efficient way of adjustment of the power system to the growing RES
share – the network is much cheaper that accumulator systems. “New storage technologies will
become necessary, when the renewable energy sources share exceeds 70%”.
Taking into consideration the growing economic attractiveness of the wind energy
combined with practically unlimited wind power resources of the plant, it is theoretically
possible to supply all humankind with electric energy practically entirely produced from wind
only. A study conducted in Harvard University based on very conservative assumptions
demonstrates that the wind power potential is approximately 40 times higher than the global
consumption of electricity.
Global installed capacity of wind power plants, GW
Source: GWEC
Starting from 2009, the average annual growth rate of global wind power capacities is
21.4% a year, and during the recent decade its installed capacity increased in eight times. At the
end of 2014 it was 370 GW and will presumably achieve 1000 GW by 2020.
Generalisation of various forecasts and scenarios for development of energy markets
and the wind sector of renewable power industry shows an interval from 10.3% to 30.6% - this
share may be taken by wind power in the global electricity production by 2050. This being said,
the wind power share in many technologically advanced countries will be close to the upper limit
of the said interval and even exceed it. As we have seen, Denmark is already producing about
40% of electricity by means of wind power, and, according to the US Department of Energy, in
2050 the wind power may generate 35% of American electrical power. Here, like in other
renewable energy segments, subsequent development will, to a great extent, depend on
improvement of technologies and development of comparative economic advantages.