WEBINAR on SUPPORT SCHEMES for

RENEWABLE ENERGY and GRID

DEVELOPMENT

http://www.leonardo-energy.org/webinar-support-schemes-renewable-
energy-development-and-grid-development

Q&A session
Many of the questions were already orally answered. Check the
recording.

Q: In Brazil, where the ''quality'' of the wind resource is good in

some regions, some critics of wind power say that its intermittent
feature does not allow it to be considered as a ''firm energy'' or
reliable enough to meet electricity demand. What the European
experience shows?

A: answered during the webinar. Spain (which electricity grid is practically

isolated from the rest of Europe) has reached 20% of energy generated by
wind power and the plans are to grow up to more than 40% of energy
generated by renewable sources in 2020. Denmark has as well reached a
huge wind penetration thanks to efficient integration of interconnections
with neighbouring countries and improved dispatchability schemes of
distributed cogenerations (see www.leonardo-energy.org/20-50-percent-
wind-energy-danish-power-system)

Q: Do you know what was the problem that causes a tariff deficit in
Spain because of solar integration some years ago?

A: answered during the webinar. Feed-in Tariffs (FIT) are to be cost

reflective and should evolve in parallel with the technology. In some cases it
will be also required to control the total amount of subsidized installed
power. The problem in Spain was a too high FIT in parallel with rapidly
decreasing costs of PV equipment. Additionally, there was no limit to the
installed power. As a consequence, more than 3000 MW were installed in a
single year (2008). Current regulation caps the total amount of subsidized
power (500 MW / year) and leaves room for tariff revision depending on the
demand for permits (bigger demand, lower tariff).

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Q: According to McKinsey report solar PV is one of the MOST
expensive way of avoiding CO2 emissions (cca 350$/ton CO2). Feed-
In-Tariff for Solar PV energy increases greatly increases debt of a
given country. Is this desirable, or sustainable?

A: answered during the webinar. Indeed, when checking the CO2 abatement
cost curve we find PV only at the most expensive side of the curve.
However, as the solution is always a combination of a number of measures,
all the options are to be considered. Additionally, other reasons can
influence the government decision, as the development of its own industry,
generation of export capacity, job creation, development of know-how…

http://lightbucket.files.wordpress.com/2008/05/carbonabatement800.jpg

Q: How renewable energy support mechanisms are financed in

these countries? In Italy, for example, the promotion of RES is
sustained by all electricity consumers through a specific component
of the electricity bill (the so called A3 component)

A: Answered during the webinar. Indeed, the mechanism is often the

addition of a term in the grid access tariffs for consumers or an extra-cost of
energy supply.

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Q: Have you done any studies over the economics of the different
tariff systems? Are the FIT systems more economically efficient for
the electrical systems than the green certificates ones?

A: Check the green-x website and download their final report with, among
other things, information on the evaluation of different policy schemes.
Website: www.green-x.at

Q: How do you see the renewable energy regulations progressing in

Eastern Europe? Are they stable enough to push the market?

A: Answered during the webinar

Q: Is there any chart comparing the FIT of the different countries?

A: Check the full report http://www.leonardo-energy.org/report-renewables-

support-schemes-and-grid-integration-policies and page 28 of this
presentation. As well, check http://www.reshaping-res-policy.eu/

Q: In the case developing countries where we don’t have a feed in

tariffs, like in Honduras. If we install a solar grid tie systems, how
we could sale the green certificates to the European market? And
what mechanisms could be use to finance these systems in
developing countries?

A: answered during the webinar. EU directive on renewables only allow

physical green electricity imports from 3rd countries, check
http://www.leonardo-energy.org/webinar-eu-renewables-directive-briefing-
presentation-and-open-questions . In the case of American continent it is not
possible yet. However, the Clean Development Mechanism provides for
economic support of green projects in most of countries, check
http://www.leonardo-energy.org/webinar-carbon-market-and-cdm-projects

Q: The reference data is quite old: 2004, 2006; are there current
figures of installed REW capacities?

A: Check www.energy.eu#renewables

Q: Are Smart Grids been considered to take advantage of this

renewable development in some of these countries?

A: smart grids are getting much attention lately. Please check the Kema
website for some interesting publications:

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http://www.kema.com/services/consulting/utility-future/utility-future-
guide.aspx and http://www.kema.com/smartrenewables.

Q: wind offshore in Slovakia?! In the middle of Europe continent?! I

would really doubt the data you received from Slovakia...

A: Slovakia can of course also build wind farms abroad. this might be a good
solution as it might be cheaper than developing re at a national level. Check
http://www.leonardo-energy.org/webinar-eu-renewables-directive-briefing-
presentation-and-open-questions.

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