SDEWES, Dubrovnik, Croatia, 02. October 2009

Tariffs for energy storage-STORIES project workshop-

Goran Krajačić, Neven Duić,

Tariffs for energy storages

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Dubrovnik, Croatia, 02/10/2009

Need for financial mechanisms?

www.wwindea.org

Tariffs for energy storages

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Dubrovnik, Croatia, 02/10/2009

Mechanisms BasicsSupport

Policy Support Mechanisms which at a minimum include measures for:

Access to the grid (interconnection), and

A price for the electricity produced that contributes to profitability (revenues from tariffs, or from tariffs plus some other monetary support, must exceed the costs of generation by a sufficient margin for profitability)

RES Policy

Tariffs for energy storages

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Dubrovnik, Croatia, 02/10/2009

Policies that support renewable energy development must include:

• The political desire or demand for renewable sources of generation,

• The willingness to pay for renewable generation, and

• The stability of public policy to provide a return on investment.

Financial Support Mechanisams

Feed-in tariff systems are characterized by a specific price normally set for a period of several years, which must be paid by electricity companies, usually distributors, to domestic producers of green electricity. A variant of the feed-in tariff scheme is the fixed premium mechanism.

Green certificate system RES-E is sold at conventional power-market prices. In order to finance the additional cost of producing green electricity and to ensure that the desired green electricity is generated.

Tendering procedure the state places a series of tenders for the supply of RES-E which is then supplied on a contract basis at the price resulting from the tender.

Tax incentives are used as an additional policy tool. Tax incentives may be a tax credit or a cash payment or an exemption from tax obligations or low VAT.

Investment incentives: A common investment subsidy is a grant for the installation of capacity.

Tariffs for energy storages

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Dubrovnik, Croatia, 02/10/2009

Portugal case study

Tariffs for energy storages

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Dubrovnik, Croatia, 02/10/2009

•Already applied in over 40 countries, states and provinces around the world,

• a highly effective tool for boosting the viability, and hence value, of the renewables industry,

• FITs have been empirically proven to generate the fastest, lowest-cost deployment of renewable energy.

FIT FOR PHS

Tariffs for energy storages

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Dubrovnik, Croatia, 02/10/2009

(eq. 1.)

Working hours at full load

FIT

<1750 h

1750-2750

>2750

Tariffs for energy storages

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Dubrovnik, Croatia, 02/10/2009

Rated power of the turbine – MW 8.0Rated power of pumps – MW 6.5Capacity of the reservoir - m3 120000

Installed power of WT – MW 18.3Additional installed power of WT - MW 13.5 - €/MWh 87.42 0.696i 15%N – payback years 8

Working hours at full load

[€/MWh]

<1750 h 1750-2750

>2750

Market organization

Tariffs for energy storages

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Dubrovnik, Croatia, 02/10/2009

Figure 1. Invoicing, payments and GO flows for FIT.

Invoicing

Calculation for the delivered

GO

Delivered/Taken electricity

Payment for difference between

delivered electricity from

PHS and taken RES electricity

Payment of the delivered

electricity from RES

Invoicing for the collection of fees and

delivered electricity

Other incent. sources

RES

Privileged producer

BuyerPayment

- TSO -

Electricity supplier- DSO -

Market operator

GO Registry

Incentive collection and distrib.

PHS

Privileged producer

Invoicing for delivered electricity

from RES

Invoicing for difference between delivered electricity from PHS

and taken RES electricity

Payment for electricity from RES and PHS

Fees

Guarantees of origin (GO)

GO GO

THANK YOU FOR YOUR ATTENTION!

goran.krajacic@fsb.hr

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Dubrovnik, Croatia, 02/10/2009