Summary of European country’s PV applicationsBased on the IEA-PVPS-Annual Report

For FinSolar ProjectAalto University School of Business

PART 2: NORDICsDenmark, Sweden, Norway

16.3.2015Kim Yukyeong

DENMARKSummary ofNational survey report of PV power applications in DENMARK 2013

2

Electricity generation [GWh] 2012 2013Ratio

in 2013

Net electricity generation 29 025 32 956

Net import 5 214 1 081

Consumption (incl. grid losses) 34 239 34 137 100 %

Specification of electricity generation [GWh]Ratio to

comsumption

Central power stations 13 718 16 833 49,3 %

Local CHP plants 4 917 4 468 13,1 %

Land-based wind turbines 6 796 6 772 19,8 %

Offshore wind turbines 3 472 4 351 12,7 %

Photovoltaic cells 104 518 1,5 %

http://www.energinet.dk/EN/KLIMA-OG-MILJOE/Miljoerapportering/Elproduktion-i-Danmark/Sider/Elproduktion-i-Danmark.aspx

Denmark 3

Generation of electricity in Denmark

PV deployment statistics

Key figures for solar power 2012 2013 2014*

Capacity in total [MW] 406,9 563,4 610,1

Plants ≤ 6 kW 377,5 445,5

Plants > 6 kW ≤ 50 kW 19,9 45,0

Plants > 50 kW ≤ 400 kW 9,5 48,4

Plants > 400 kW 0 24,5

Number in total [amount] 76 184 91 407 94 117

Plants ≤ 6 kW 74 815 88 397

Plants > 6 kW ≤ 50 kW 1 286 2 586

Plants > 50 kW ≤ 400 kW 83 368

Plants > 400 kW 0 56

Generation in total [GWh] 104 518

http://www.energinet.dk/EN/KLIMA-OG-MILJOE/Miljoerapportering/VE-produktion/Sider/Sol.aspx*http://www.energinet.dk/DA/El/Engrosmarked/Udtraek-af-markedsdata/Sider/Statistik.aspx

Denmark 4

Annually installed PV plants

MW 2008 2009 2010 2011 2012 2013 2014

Annually 0,1 1,4 2,5 9,6 391,1 155,5 46,7

Cumulative 3,2 4,6 7,1 16,7 407,8 563,3 610

Denmark 5

0

100

200

300

400

500

600

700

v2008 v2009 v2010 v2011 v2012 v2013 v2014

Cumulative

Annually

MW

Denmark 6

The Danish PV boom Year 2012

6299

16078

46854

544 4460

10000

20000

30000

40000

50000

0-3 kW 3-5 kW 5-6 kW 6-10 kW >10kW

Plant scale (kW)

Number of PV installation

Total 70 221 plants installed in 2012

Renewable Energy Act

Programs On going measure

Feed-in tariffs For solar PV systems, lifetime is 20 years(10+10).Elevated surcharge for certain PV systems in 60 MW pools 2015.

Self consumptionincentives

Net settlement (net metering) based on 1h time window: Electricity produced and consumed within the same hour is free of PSO (Public Service Obligation) and electricity payments.Surplus production gets same tariffs.

Sustainablebuildingrequirements

BAPV/BIPV has a positive effect on the energy footprint of buildings (factored by 2,5)

Support for renewable energy http://www.ens.dk/undergrund-forsyning/el-naturgas-varmeforsyning/elforsyning/elproduktion/stotte-vedvarende-energi

Denmark 7

Feed-in Tariffs

• All production of solar power supplied to the public electricity grid, settled at 60 øre/kWh(8,1€-ct/kWh) for the first 10 years after the grid connection and 40 øre/kWh (5,4€-ct/kWh) in the subsequent 10 years. This applies both surplus production of solar cells that are connected to their own consumption (net settlement) and for freestanding photovoltaic, which is established to the grid.

• Legislative changes for increased surcharge entered into force on 11 February 2015 and provide increased supplement to certain photovoltaic plant, which is already connected to grid 20 November 2012 to 11 June 2013.

• With the new rules, it’s possible to receive price of 90, 130 or 145 øre/kWh (12-20 €-ct/kWh) if the conditions are met(depend on installation date, scale and type).

• On March 16, 2015 opens up the application to the 60 MW pool. It is also possible to apply for yet-to-be-established facilities with pre-made agreement for the purchase of PV systems. The support scheme operates on First-come first-served –basis.

http://www.energinet.dk/DA/El/Solceller/Har-du-solceller/Sider/default.aspx

http://www.ens.dk/undergrund-forsyning/el-naturgas-varmeforsyning/elforsyning/elproduktion/stotte-vedvarende-energi

Denmark 8

Tariffs table

Technology Level of support , DKK øre/kWh (€-ct/kWh) Duration

(*Balancing forentire lifetime)

Fixed payment(premium +

market price)

Fixed premium *cost of Balancing

Wind onshore 25 (3,3) 2,3 (0,3) 22 000 load hours

Wind offshore 51,8-62,9(6,9-8,4)

1,3 (0,2) 10 TWhwithin 20 years

Household windturbines <25kW

60 (8,1)

Wave, PV etc…

60 / 40(8,1 / 5,4)

First 10/11-20 years

http://www.reshaping-res-policy.eu/Download, D15 Report. Renewable Energy Policy - Country Profiles

Retail electricity price in 2013 from Key World Energy Statistics 2014

For Household 36,7 €-ct/kWh

For Industry 11,1 €-ct/kWh

Denmark 9

SWEDENSummary ofNational survey report of PV power applications in SWEDEN 2013

10

Power sources Installed capacity (MW) Generated electricity

Period v2012 v2013 v2012 v2013

PV 24 43 21 GWh 38 GWh

Hydro 16 203 16 150 78,4 TWh 60,8 TWh

Wind 3 745 4 470 7,2 TWh 9,9 TWh

Nuclear 9 363 9 531 61,4 TWh 63,6 TWh

All technology 37 353 38 273 162,4 TWh 149,5 TWh

Total electricitydemand(=consumption)

142,9 TWh 139,5 TWh

ELÅRET Verksamheten 2013 (Annual Report of Energy 2013)http://www.svenskenergi.se/Global/Statistik/El%C3%A5ret/Sv%20Energi_el%C3%A5ret2013_versJUNI2014.pdf

Power capacity & Generation of electricity

Sweden 11

Renewable support policy

Programs On going measure

Capital subsidies for equipment or total cost 2009-20132013-2016

A direct capital subsidy for installation of grid connected PV systems open for all. Active in Sweden since 2009.In 2011 the subsidy covered 60 % total cost, 2012 this was lowered to 45 % and new 2013-2016 ordinance to 35 %.

Renewable portfolio standards (RPS)2003-2035

Quota obligation with tradable electricity certificates.Certificate demand is created through a annual quota obligation.In 2015 annual quota is 14,3% of total electricity production.

Joint Norwegian-Swedish electricity certificate market

From 1st January 2012, Sweden and Norway have a common electricity certificate market. The two countries aim at generation of 26,4 TWh (13,2 TWh each) from new renewable plant over period until 2020.

Fiscal measures Biomass and peat used for electricity production are tax-free.Electricity is not taxable if it is produced at plant with capacity < 100 kW by a non-commercial producer. Reduced real estate tax for wind plants

Sweden 12

1. The power producers receive one electricity Certificate for each megawatt hour (1EC/1MWh) of renewable electricity produced, over a maximum 15 years.

2. The electricity certificates are sold in a market where supply and demand determine the price. In this way, the producers receive extra income in addition to the power price.

3. Demand for electricity certificates arises in that power suppliers and certain power customers are obligated to buy electricity certificates corresponding to a certain proportion (annual quota) of their electricity sales or usage.

4. The electricity end users pay for the development of renewable electricity production because the cost of the electricity certificates is included in the electricity bill.

5. Every year, the market participants with quota obligations must cancel electricity certificates in order to fulfil their quota obligation.

6. Penalty fee for shortfall of certificates about 150% of the average certificate price.

Sweden 13

How does Quota Obligation work?

Who has quota obligations in Sweden?

• Power suppliers

• Electricity consumers who use power they have produced themselves, if the quantity of consumed electrical energy exceeds 60 MWh annually and has been produced in a plant with an installed capacity over 50 kW.

• Electricity consumers who have used electricity they have bought on the Nordic power exchange.

• Power-intensive industries that have been registered by the Swedish Energy Agency.

Who has quota obligations In Norway?

• All those who supply electrical energy to end users,

• All those who consume electrical energy that they have produced themselves

• All those who buy electrical energy for their own use on the Nordic power exchange or through bilateral agreements.

Sweden 14

Market participants with quota obligations

Results of Quota Obligation

Annual quota Average priceOf Certificate

IssuedCertificate

Average cost to end consumer

Portion to totalproduction

SEK/MWh=EC(€/MWh)

Millioncertificate

SEK öre/kWh[0,3-0,6 €-ct/kWh]

2007 0,151 195 (€21) 13,3 3,0

2008 0,163 247 (€25,7) 15,0 4,0

2009 0,170 293 (€27,6) 15,6 5,0

2010 0,179 295 (€31) 18,1 5,3

2011 0,179 247 (€25,7) 19,8 4,4

2012 0,179 201 (€22) *21,7 3,6

2013 0,135 201 (€22) *16,4 2,7

Surplus of certificates can be saved for future needs or be sold to others. 1 MWh = 1 electricity certificate (EC) 1 TWh = 1 million electricity certificates

1 January 2012, Norway and Sweden have had a joint market for electricity certificates.*Included Norway data

Sweden 15

Electricity Certificates issued in 2013

Sweden 16

Certificate issued in 2013(million certificate)

In Sweden In Norway

Wind 9,68 0,04

Hydro 0,84 0,882

Biofuel 4,8 -

Solar 0,004 -

Peat 0,105 -

Total 15,4 0,92

Quota Obligation in 2013 In Sweden In Norway

Obligation (TWh=million C) 12,3 3,9

Fulfillment (%) 99,97 % 99,95 %

Eligible energy sources for Electricity Certificates;Biofuel(and peat in CHP in Sweden), Geothermal, Solar, Wind, Wave and Hydro(not for all)

Annual report: The electricity certificate system 2013 http://www.energimyndigheten.se/en/Sustainability/The-electricity-certificate-system/

NORWAYSummary ofNational survey report of PV power applications in NORWAY 2013

17

Power sources *Installed capacity (MW) **Generated electricity

Period v2012 v2013 v2012 v2013

PV 9,9 10,6 - -

Hydro 30 700 30 960 142,9 TWh 129,0 TWh

Wind 704 811 1,6 TWh 1,9 TWh

All technology 32 512 32 879 147,8 TWh 134,2 TWh

Total electricity demand(=gross consumption)

130 TWh 129 TWh

*Nordic-Market-Report-2014, Development in the Nordic Electricity Market (except PV data)http://www.nordicenergyregulators.org/

**Energy statistics, https://www.ssb.no/energi-og-industri

Power capacity & Generation of electricity

Norway 18

Application of PV

• The market for PV in Norway continues to be related to off-grid applications, primarily the leisure market (cabins, leisure boats) and to a more limited extent, the professional market (mostly lighthouses/lanterns along the coast and telecommunication systems). It is believed that there are about 100 000-150 000 solar installations, mainly in cabins/holiday properties and by the end of 2011 total capacity estimated at 9,1 MW.

• Aside from the leisure market, some new PV installations of significant size were installed in 2013-2014. Installed capacity has increased to nearly 15 MW by the end of 2014, thanks to a number of larger, grid-connected plants.– Asko Vestby, 370 kWp (2014)

– Powerhouse Kjørbo/ Entra Eiendom, 312 kWp (2013)

– Kiwi Auli/ Norgesgruppen, 158 kWp (2014)

– Fornebu S/ KLP, 150 kWp (2014)

– Økern sykehjem/ Omsorgsbygg, 130 kWp (2014)

– Campus Evenstad/ Statsbygg, 70 kWp (2013)

http://www.fornybar.no/solenergi/produksjon-og-marked#sol3.1 (from chapter 3.1.4 Markedet i Norge)

Norway 19

Oslo Solar project

• The city of Oslo wants to help it’s citizens in making green choices

• Climate and Energy Fund has started a Solkampanjen in the capital, with 40% support for the installation of solar cells.

• The price of solar installations in neighboring countries has dropped sharply when the prevalence has increased and Oslo wishes that same happens in Norway. This campaign helps to create a market for solar cells.

• The campaign started 1.1.2015 and it is already pledged over two million NOK(~0,2million€).

• The campaign will continue until the Climate and Energy Fund has pledged 4 million NOK(~0,4million€).

http://www.oslosola.no/stotte.html

Norway 20

Electricity Certificate

• A joint Norwegian-Swedish market for electricity certificates was established 1 January 2012. Norway and Sweden have a combined goal to produce renewable electricity ‘26,4 TWh’ from the new renewable power plant in 2020. Norway and Sweden are each responsible for financing 13,2 TWh regardless of the location of new generators in two countries.

• The electricity certificate market is a technology neutral, market-based support scheme for generation from renewable energy sources. However, the entrance fee for the participation to the el-certificate market is minimum NOK 15 000 (~€1650). This is too high for most owners of small PV-systems.

• Thus the Norwegian EC market remains without any particular public support schemes for PV systems. The main market for PV continues to be related to off-grid applications in addition to a few grid connected systems on buildings.

Norway 21

http://iea-pvps.org/index.php?id=93

Quota for Sweden and Norway

Norway 22

Year

Sweden Norway Cost of certificates to end consumer

øre/kWh (€-ct/kWh)Obligation ratio from renewables to

obligator’s total electricity generation

2011 0,179

2012 0,179 0,030 0,6 (0,07)

2013 0,135 0,049 1,2 (0,14)

2014 0,142 0,069

2015 0,143 0,088

2016 0,144 0,108

2017 0,152 0,127

2018 0,168 0,146

2019 0,181 0,165

2020 0,195 0,183

2021 0,190 0,182

The Norwegian-SwedishElectricity Certificate Market

ANNUAL REPORT 2013

……. ….. ……

2033 0,028 0,037

2034 0,012 0,018

2035 0,008 0,009

Useful Links

• National Survey Reports, IEA-PVPS Annual Report: http://iea-pvps.org/index.php?id=93

• http://www.energinet.dk/EN/Sider/default.aspx

• http://www.energinet.dk/DA/El/Engrosmarked/Udtraek-af-markedsdata/Sider/Statistik.aspx

• http://www.ens.dk/undergrund-forsyning/el-naturgas-varmeforsyning/elforsyning/elproduktion/stotte-vedvarende-energi

• http://www.svenskenergi.se/Elfakta/Elproduktion/

• http://www.svenskenergi.se/Vi-erbjuder/Webbshop/Gratis-publikationer/Statistik/

• http://www.energimyndigheten.se/en/Sustainability/The-electricity-certificate-system/

• http://www.nve.no/no/Energi1/Fornybar-energi/

• http://www.fornybar.no/energipolitikk/energipolitikk

• Statistics: https://www.ssb.no/energi-og-industri

• http://www.nordicenergyregulators.org/

NORDIC 23