Priorities for renewable energy in Lithuania. Actual measures and empty slogans

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• Priorities for renewable energy in Lithuania.
  Actual measures and empty slogans
• Martynas NageviciusPresident of the Lithuanian
  Confederation of Renewable Resources
• martynas_at_nagevicius.lt

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Content of the presentation

• Renewable energy in Lithuania in figures
• The problem of attitudes towards renewable energy
• Assessment of the current situation -
  opportunities
• Proposals

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Renewable energy in Lithuania in Figures
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Green electricity
ELECTRICITY FROM RENEWABLE SOURCES IN LITHUANIA
EXPORTED TO THE GRID (kWh)
In 2013, 1.42 TWh of green electricity (around
13 of the total final consumption) was exported
to the grid Wind power stations 0.60
TWh Hydropower plants 0.51 TWh Biofuel power
plants 0.22 TWh Solar power plants 0.04
TWh Biogas power plants 0.04 TWh
SOLAR BIOGAS BIOFUEL WIND HYDRO (SMALL) HYDRO
(BIG)
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Green heat
HEAT FROM RENEWABLE SOURCES IN LITHUANIA,
SUPPLIED TO THE DISTRICT HEATING NETWORK (kWh)
In 2013, around 3 TWh of green heat was supplied
to the district heating network (around 33 of
the entire heat supplied) Around 6.5 TWh of heat
was used for individual heating by households
(around 68 of all heat) Around 0.15 TWh of green
heat was consumed for individual heating by
non-household consumers (around 14)
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New producers of technologies
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A lot or too little?

• Enough to claim that renewable energy has
  ALREADY become one of the most important energy
  sectors in Lithuania (surpassed only by oil and
  natural gas)

Too little, if weighed against the unused
potential
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THE Problem OF ATTITUDES TOWARDS Renewable energy
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Public opinion
Public opinion survey by Eurobarometer, conducted
in 2013 What should be the focus of energy
policy? (it was possible to choose up to two
alternatives)
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other fossil resources shale gas CO2 capture and
storage nuclear energy energy efficiency renewable
energy resources
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7
15
25
53
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Programme of the Fifteenth Government of the
Republic of Lithuania

• In 2009, to review and launch the programme of
  diversification of our urban heating sector. The
  implementation of the programme shall allow the
  increase of co-generation of urban heating and
  electricity from biofuel
• To support EU initiatives and propose new
  initiatives promoting the use of low-emission
  renewable resources
• To implement the National Energy Strategy aiming
  at maximum, viable and sound use of local and
  renewable sources of primary energy
• The governmental energy policy priority to
  begin using renewable and local sources for heat
  and electricity production as widely and rapidly
  as possible, whilst simultaneously reducing the
  consumption of imported gas and oil products
• To remove all the barriers that are within our
  control to the construction of wind energy parks,
  especially in the Baltic Sea and coastal region.

Andrius Kubilius (Interview for the Frankfurter
Allgemeine Zeitung, October, 2012) Germany is
rich. It can afford higher energy prices.
Alternative energy costs more than nuclear power.
Furthermore, our resources are limited .
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Programme of the Sixteenth Government of the
Republic of Lithuania

• Organic agriculture, green transport, renewable
  energy sources, modern biotechnologies and
  nanotechnologies are the elements that will
  encourage Lithuanias progress and shape a new
  path towards a green economy and energy of the
  future
• CRITICAL GOVERNMENT PRIORITY the use of
  renewable sources of energy
• To become a part of the ongoing third global
  energy revolution that entails transition from
  fossil fuels to the worlds future energy system
  i.e. the use of energy from renewable sources
• National energy policy should give priority to
  competitive energy generation from local
  renewable resources and to the use of renewable
  energy sources to produce energy and heat
• ....

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Average lifetime Levelised Cost of Electricity
(LCOE) (US dollars/MWh)
Lithuanian market price
Onshore wind power stations
Off-shore wind power stations
Solar power plants
Biomass power plants
Hydropower plants
Nuclear power plants
Natural gas and coal fired plants
World Energy Council (WEC) and Bloomberg New
Energy Finance (BNEF) "World Energy Perspective
Cost of Energy Technologies (US dollars/MWh)
http//www.worldenergy.org/wp-content/uploads/2013
/09/WEC_J1143_CostofTECHNOLOGIES_021013_WEB_Final.
pdf
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The need for the development of renewable energy
two attitudes

• Scandinavian

• Lithuanian

• Creation of green jobs
• Money spent on energy feeds back into the
  national economy and will ultimately contribute
  to the budget
• Reduces the cost of any future energy crises
• Drives the production and increasing
  sophistication of technologies
• Decreases the future costs of climate change

• Something that is dictated by the EU
• Non-compliance will be sanctioned

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The need for the development of renewable energy
two attitudes

• Scandinavian

• Lithuanian

• Creation of green jobs
• Money spent on energy feeds back into the
  national economy and will ultimately contribute
  to the budget
• Reduces the cost of any future energy crises
• Drives the production and increasing
  sophistication of technologies
• Decreases the future costs of climate change.

• Something that is dictated by the EU
• Non-compliance will be sanctioned

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Optimisation of renewable energy development
two attitudes

• Scandinavian

• Lithuanian

• What scale and method of renewable energy
  development is necessary for it to be of greatest
  macroeconomic benefit to the economy?

• How can the requirements of EU directives be
  implemented with the lowest possible increase in
  electricity prices (and the lowest state
  subsidies)?

Lithuanias behaviour is often similar to that of
a bad chess player who will not sacrifice a pawn
to win the entire game.
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ASSESSMENT OF THE CURRENT SITUATION -
OPPORTUNITIES
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Biomass energy (solid biomass)

• Construction of power plants using biofuel and
  municipal waste in Vilnius and Kaunas
• with LTL2.3 billion of investment
• and a one-off investment subsidy of LTL0.7
  billion or annual public service obligations
  (PSO) costs of around LTL100-140 million for 12
  years
• would result in additional production of
• 2.8 TWh of heat from biofuel(in such a scenario,
  the total amount of heat from biofuel would
  account for about 70 of the entire heat supplied
  to district heating network)
• 1.4 TWh of green electricity

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Biomass energy (biogas - biomethane)

• Construction of 200 biogas and biomethane plants
  in the agricultural, municipal and industrial
  sectors
• with LTL1.9 billion of investment
• would result in additional production of
• about 320 million nm3 of biogas
• or 160MW 1.28 TWh of green electricity
• (Information from the Lithuanian
  Biogas Association)

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Wind power

• An increase in the total capacity of onshore wind
  power stations to 850 MW
• with LTL2.8 billion of investment
• with a necessary subsidy of LTL800 million or
  annual PSO costs ranging from LTL75 million
  (where market price is 20 ct/kW) to LTL163
  million (where market price is 15 ct/kWh) for 12
  years
• would result in additional production of
• 1.75 TWh of green electricity (compared to 2013)
• (Data supplied by 4-energy)

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Solar power

• Even without any change in PSO costs and with a
  net metering system introduced, it would be
  possible to generate up to an additional 0.2TWh
  of green electricity.

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Hydro energy

• There has so far been no debate on the
  possibility of building a hydropower plant on the
  Neris River upstream from Vilnius in order to
  form an artificial lake as a security barrier
  that could stop the flow of radioactive materials
  in the event of an accident in Ostrovets nuclear
  plant.

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Conclusions regarding the current situation

• Living in times of change
• Old (failed) support schemes have been destroyed
  without creating new ones
• Greatest obstacles
• Indecision regarding state nuclear energy
• Indecision regarding reduction of dependency on
  imports
• Slow administration
• Predominant focus on strategic projects
• Temptations of nationalisation
• Lack of political will (Lithuanian attitude
  towards renewable energy)

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PROPOSALS
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• To focus the planning of the development of
  renewable energy on its macroeconomic benefits
  (adopting the Scandinavian attitude)
• To consult experts and develop a framework for
  supporting renewable energy, based on principles
  that would remain unchanged for at least 5 years
• To support the development and production of
  green technologies in parallel with the
  development of renewable energy in Lithuania

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• Recent events in Crimea will they lead to a
  more rapid development of renewable resources?

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Thank you for your attention!

• Martynas Nageviciusmartynas_at_nagevicius.lt