Transcript Renewable energy – smart solutions bring economic and social

Renewable energy –
smart solutions bring economic
and social dividends
Department of Thermal Engineering
Ülo Kask
Brussels, 11.10.2006
Content
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Introduction - Location. General data. Local
energy sources of Estonia
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Role of Oil Shale
Role of Renewables
Socio-economic background
Targets for Future
General data. Local Energy Sources of Estonia
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Total area 45 277 km2
Population 1 344 684 (as 1 of January 2006)
Currency Estonian kroon (1 € = 15.6466 EEK)
Active, economic mineable reserve of oil shale, bed operating
ratio of energy over 35 GJ/m2, sufficiently explored is 1.167
billion tons.
According to last taxation data of Estonian forests we have
2,25 Mha (51,5 % from country area) forest land with growing
stock of 462 million s.m3.
Of the total resources of peat 2.37 billion tons, 1.1 billion tons
are accounted in the State Register of Mineral Reserves.
Agricultural lands cover 25% of the territory.
General data. Domestic Energy Sources
of Estonia
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Production of primary energy from domestic fuels
and renewable sources on 2005, TJ (terajoules):
Oil shale
- 129 423
Peat
3 550
Wood fuels
- 24 151
Other fuels (biogas, town gas) 150
Hydro and wind energy
270
Consumption of fuels for electricity and heat generation
based mainly on local fuels, over 80%
Share of domestic fuels in primary
energy resources of Estonia, 1990–2004
%
68
66
64
62
60
58
56
54
52
50
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
Role of Oil Shale
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Oil shale gained its leading role in the energy
balance of Estonia already before the Second
World War – in 1934 the share of oil shale in
total industrial consumption was 56.8%.
During the years have mined in Estonia over
one billion ton oil shale, produced 200 million
barrels shale oil and generated 550 TWh
electricity on oil shale.
At the current volume of consumption (12 t/y),
the total active supplies of oil shale will last for
sixty years calculated on the basis of the
technical-economic conditions of power stations
Role of Renewables
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The share of wood fuels in total primary energy
supply have stabilized on the level of 11% and
peat on 2%. The role of renewables (biomass,
biogas, hydro, wind, etc.) is not considerable in
electricity production (about 0.8–1.0% in 2006),
but is important in heat generation in boiler
houses (wood fuels and biogas 29%, peat 4%
on 2003).
Socio-economic background
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In 2005 the gross domestic product (GDP) at current
prices was 164.9 billion kroons, increasing by 9.8%
compared to the 2004.
Approximately 3% of employed people (607 400, in
2005) aged between 15-74 years is occupied in mining
(oil shale) and energy sector (incl. heat production)
These sectors form a part of ~4% in cross domestic
product.
Changeover from fossil fuel to wood to generate 4 GWh
heat (equivalent to annual production of 1 MW boiler)
will increase employment. Every MW installed into wood
will create about 3 new jobs.
The consolidated data about the Estonian resources
of bio fuels and peat in longrun in 2030 are as
follows, TWh (theoretical potential of primary energy)
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Fuel wood and harvesting residues
Wood pellets and briquettes
Straw
Energy plants
Reed
Biogas
Food waste
Black liquor
Peat fuels
Total
4.6
1.2
0.8–1.0
9.8
0.4
0.6
0.1
0.2
8.3
25.8–26.0
One of the most important preconditions is the suitable
legislation and tax system, which makes the utilization of bio
fuels economically competitive and turns the theoretical
potential into reality.
Directions for Future
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Against the preferred utilisation of domestic energy
sources, however, there is a perceived need to reduce
the share of fossil fuels in the energy balance and to
increasingly focus on renewable sources of energy.
The most prospective among them are wind and
biomass energy, i.e. biodegradable fraction of products,
waste and residues from agriculture, forestry and
related industries. Being rich in forests, Estonia has a
high potential for energy production from wood-based
fuels, i.e. firewood and wood-based by-products.
Targets
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Increase the share of renewables in electricity inland
consumption up to 5.1% by the year 2010 (set by EU).
Planned percentage of alternative fuels for year 2010 is 5.75%
The national indicative target of 12% of gross national energy
consumption by 2010.
By 2008 the ecological tax reform should give input for the
energy products taxation to meet the criteria for efficient use of
resources and products and better reflect the environmental
costs.
To support the increase of the electricity production from
renewable sources in market in Electricity Market Act the
support scheme through the obligation of distribution
companies to buy the electricity produced from renewable
sources with feed-in tariff 5.2 €sents/kWh.