Best practice tools to promote sustainable energy technologies

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Best practice tools to promote sustainable energy technologies on regional level Example of a

Best practice tools to promote sustainable energy technologies on regional level Example of a region: Bavaria AER Seminar ‘Sustainable Energy Policy: Promoting Renewable Energy and Rational Energy Management in European Regions’, Porjus, Norrbotten (SWE), 1 -2 July 2005 Klaus Grepmeier ZREU Gmb. H - Member of the OPET Network

Bavaria a region in the heart of Europe Largest of the Federal Länder in

Bavaria a region in the heart of Europe Largest of the Federal Länder in Germany 12 Mio. inhabitats Area: 70, 000 km 2 Gross domestic product: 357, 000 MEuro

The Organisations for the Promotion of Energy Technologies - OPET Network an initiative of

The Organisations for the Promotion of Energy Technologies - OPET Network an initiative of the European Commission, Directorate-General Energy and Transport, that aims to promote public awareness of current energy research through a new and challenging series of activities

The OPET network – consortia and activities The Directorate-General Energy and Transport of the

The OPET network – consortia and activities The Directorate-General Energy and Transport of the European Commission restructured the OPET Network around a series of thematic consortia in order to provide an integrated and comprehensive view of on-going research and to promote the deployment of innovative technologies esp. on local and regional level in each of the following areas: Buildings Renewable energy sources Combined heat and power Clean fossil fuels Energy issues in transport New energy technologies in the Mediterranean region (MEDNET) Modern and clean energy and transport technologies in Latin America and the Caribbean (OLA) Early market introduction of new energy technologies (EMINENT)

Promotion of modern biomass technologies for heat supply of buildings Best practice tools Political

Promotion of modern biomass technologies for heat supply of buildings Best practice tools Political and legislative Financial Technological development Networking, exchange of experiences Information dissemination, education, training

Bavaria - a biomass region Wooded areas: 2. 5 Mio. hectares (36% of total

Bavaria - a biomass region Wooded areas: 2. 5 Mio. hectares (36% of total area) Use of wood for heating purposes is common in the region (almost 1/3 of Bavarian homes use wood as an energy source) 2. 3 Mio. tons/a of wood used for energetic purposes 265 biomass heating and combined heat and power plants in operation 1. 8 Mio. small combustion plants using wood fuel and other types of biomass

RES / biomass proportion on primary energy consumption in Bavaria Waste (without biomass) 9%

RES / biomass proportion on primary energy consumption in Bavaria Waste (without biomass) 9% Nuclear energy Others (wind, solar, . . . ) 2% Renewable energies 25% 7% Natural gas Biomass 51% 16% Hard coal Mineral oil Brown coal 45% 2% 5% Hydro power 38%

Biomass utilisation in Bavaria (total: 67 PJ) Biomass from waste 24, 0% Wood fuel

Biomass utilisation in Bavaria (total: 67 PJ) Biomass from waste 24, 0% Wood fuel in small furnaces 48, 9% Straw 0, 5% Charcoal 0, 6% Biogas 0, 9% Sewage sludge 1, 4% Sewage gas 3, 7% Biofuels, vegetable oil 2, 7% Biomass for heat (and power) plants 17, 3%

Strong political commitment Integrated concept to promote the energetic use of biomass Aim: biomass

Strong political commitment Integrated concept to promote the energetic use of biomass Aim: biomass to cover 5% on primary energy consumption in Bavaria Preserving existing small combustion plants and promoting the application of new ones Extending the existing network of biomass heating plants - funding of pilot applications Providing financial incentives for alternative heat supply technologies

Bavarian support programmes “Bio. Komm“ valid for: central heating systmes with automatic fuel supply

Bavarian support programmes “Bio. Komm“ valid for: central heating systmes with automatic fuel supply (< 500 k. W) financial support: 61. 5 €/k. W (minimum: 2, 050 €/system) recipients: municipalities and church organisations “Bio. Heiz 500” valid for: small scale biomass heating plants with automatic fuel supply (100 - 500 k. W) financial support: 30 €/k. W + 30 €/m installed heating network (doubling of funding rates in case of keeping certain emission limits) recipients: private persons, municipalities, organisations, farmers, SMEs Both programmes have allocated all available funds

Support schemes in place Federal RE market stimulation programme valid for: (central) biomass heating

Support schemes in place Federal RE market stimulation programme valid for: (central) biomass heating systmes with automatic fuel supply (< 100 k. W) financial support: 60 €/k. W (minimum: 1, 700 €/system) recipients: private persons, SMEs Bavarian programme to support invest. in biomass heating plants valid for: heating plants based on solid biomass (annual heat demand: min. 500 MWh) applied quality management; min. of 2, 500 operational hours per year financial support: 40 €/MWh annual heat demand + 25 €/m installed heating network recipients: private persons, municipalities, organisations, farmers, SMEs requirements: Low interest loans from public banks valid for: biomass applications in new or existing buildings

Support schemes in place Federal RE market stimulation programme Number of supported biomass systems

Support schemes in place Federal RE market stimulation programme Number of supported biomass systems in Germany (2000 -2004) Source: BAFA, 2004

Technological development Since 1970‘s considerable R&D efforts on biomass harvesting, fuel processing and combustion

Technological development Since 1970‘s considerable R&D efforts on biomass harvesting, fuel processing and combustion equipment Financial support for the development and testing of new biomass technologies - proportion of expenditure on R&D as part of the GDP is 3% Recent R&D efforts concentrated on automatic wood pellet systems, smale scale biomass gasification, CHP biomass utilisation schemes Innovative entrepreneurial structures; strong indigenous industry capabilities in biomass State investment subsidies require good performance levels of biomass installations (efficiency > 90%)

Wood pellet heating systems System technology 4 automatic fuel supply (feeding screw or suction

Wood pellet heating systems System technology 4 automatic fuel supply (feeding screw or suction device) 4 automatic ignition 4 electronic combustion control systems for adjusting the fuel and air supply 4 heat exchanger cleaning device 4 automatic ash removal 4 backfire safety device Typical costs for wood pellet heating systems << 15 k. W: << 20 k. W: 20 – 50 k. W: 50 – 100 k. W: 100 – 300 k. W: stove: 8, 000 € boiler: 9, 000 € boiler: 13, 000 € boiler: 15, 000 € - 50, 000 € boiler: 20, 000 € - 100, 000 € storage, buffer: n. a. storage, buffer: 4, 500 € storage, buffer: 4, 700 € storage, buffer: 6, 000 € – 15, 000 € storage, buffer: 15, 000 € – 30, 000 €

Heating with wood pellets - a dynamic increasing market Installed pellet systems (accumulated, DE)

Heating with wood pellets - a dynamic increasing market Installed pellet systems (accumulated, DE) Production capacity of wood pellets (DE) Source: Dr. -Ing. Joachim Fischer, 2004, Pellets in Deutschland ein dynamischer Wachstumsmarkt

Distribution of pellet systems by federal states Source: Dr. -Ing. Joachim Fischer, 2004, Pellets

Distribution of pellet systems by federal states Source: Dr. -Ing. Joachim Fischer, 2004, Pellets in Deutschland ein dynamischer Wachstumsmarkt

Areas of preference for application of wood pellet heating systems Rural areas 4 low

Areas of preference for application of wood pellet heating systems Rural areas 4 low density type of settlement 4 heat supply through a district heating or gas network requires heat densities of at least 25 MW/km 2 4 high share of owner occupied houses Urban peripheral regions 4 not connected to a gas or district heating net 4 reduce the dependency on fuel oil Regions around biomass district heating 4 not connected to a gas or district heating networks 4 supply with wood pellets by the operator of the heating plant

Bavarian regional pellet network Research & Development Applied science and technologies Support schemes Information

Bavarian regional pellet network Research & Development Applied science and technologies Support schemes Information dissemination and networking Network Mediator and Gateway Zentrum für rationelle Energieanwendung und Umwelt Gmb. H Planung und Animation der Netzwerkaktivitäten Organisation des Steering Komittees Source: C. A. R. M. E. N. e. . V. , 2005 Technical University Munich, Technical College Weihenstephan Zentrale Kontakt stelle bei Anfragen Bavarian State Ministry for Agriculture and Forestry Coordinating office for renewable raw materials ZREU (Member of C. A. R. M. E. N. )

Public-Private-Partnership modell Heat supply by PPP Heat cost billing (optional) Heat accounting: - Basic

Public-Private-Partnership modell Heat supply by PPP Heat cost billing (optional) Heat accounting: - Basic load/fee - Price per k. Wh Operation, maintenance and emergency service Wood fuel supply Installation/revitalisation of the heating system Financing of the investment, assumption of risks, full guarantee

Wood pellets price [green] compared to fuel oil [red] and natural gas [yellow] Source:

Wood pellets price [green] compared to fuel oil [red] and natural gas [yellow] Source: C. A. R. M. E. N. e. . V. , 2005

Benefits through PPP-energy schemes Municipalities 4 improvements without sacrifice - investment in new heat

Benefits through PPP-energy schemes Municipalities 4 improvements without sacrifice - investment in new heat supply systems without using own capital funds, esp. valuable when faced with budget cuts or competing priorities 4 granted subsidies effect in lower energy prices (in case of using alternativ heat supply) 4 no expenditure for maintenance and repair 4 running costs are calculable 4 high-quality and efficient heating systems through the application of proven technology 4 co-operation with regional crafts-enterprises and energy suppliers 4 simplified accounting 4 no planning and operation risk 4 protection of resources and environment Developers and housing associations 4 reduction of investment - increased profits 4 competitive edge through lower market prices 4 highest quality standards for the heating plant 4 time and cost savings - installation, operation, management, maintenance, repair, 24 h-emergency service, fuel supply is taken over by the contractor 4 protection of resources through compliance with legal standards (En. EV, BIm. Sch. V) 4 no guarantee claims against developer

Examples on successful PPP implementation (1) Biomass heating plant, school in Mauerstetten: Installed capacity:

Examples on successful PPP implementation (1) Biomass heating plant, school in Mauerstetten: Installed capacity: 180 k. W biomass Boiler manufacturer: Herz Feuerungstechnik Year of implement. : 2004 Storage: 60 m³ Fuel: Woodpellets CO 2 -Savings: approx. 50 tons/a Investment: 125, 000 € Support granted by: Kf. W Planning, O & M: KEWOG Gebäudemanagement Gmb. H

Examples on successful PPP implementation (2) Biomass heating plant, school in Bad Hersfeld: Installed

Examples on successful PPP implementation (2) Biomass heating plant, school in Bad Hersfeld: Installed capacity: 500 k. W biomass 575 k. W oil peak load boiler Boiler manufacturer: Herz Feuerungstechnik Year of implement. : 2004 Storage: 65 m³ Fuel: Wood pellets CO 2 -Savings: approx. 210 tons/a Investment: 300, 000 € Planning, O & M: KEWOG Gebäudemanagement Gmb. H

Examples on successful PPP implementation (3) Biomass container heating plant, school in Bad Hersfeld:

Examples on successful PPP implementation (3) Biomass container heating plant, school in Bad Hersfeld: Installed capacity: 350 k. W biomass 300 k. W oil peak load boiler Boiler manufacturer: Fröling Year of implement. : 2004 Storage: 35 m³ Fuel: Wood pellets CO 2 -Savings: approx. 80 tons/a Investment: 150, 000 € Planning, O & M: KEWOG Gebäudemanagement Gmb. H

Promotional activities in the region 4 Information on available technologies and market potentials 4

Promotional activities in the region 4 Information on available technologies and market potentials 4 Analysis of technical and financial aspects 4 Recommendation of relevant funding programmes 4 Establishment of co-operation schemes beyond RTD 4 Cross-border exchange of information and know-how Actions carried out 4 Organisation of co-operation / study tours 4 Organisation of conferences / workshops / seminars 4 Edition of brochures / handbooks / information leaflets 4 Internet information platforms 4 Elaboration of market actor lists 4 Publication of best practice / success stories 4 Project proposal screening and submission

The OPET Network An efficient flow of knowledge between energy research and the European

The OPET Network An efficient flow of knowledge between energy research and the European energy markets Transferring the results of European and member state energy RTD that supports European Policy priorities into successful technology deployment within the market, for the benefit of all European citizens Translating European energy policy priorities into concrete actions at local, regional and European level Accelerating the pace of innovation

OPET Buildings Promoting Energy Technologies in the Building Sector www. opet-building. net best practice

OPET Buildings Promoting Energy Technologies in the Building Sector www. opet-building. net best practice showcases database on energy technologies successfully integrated into buildings guide - use of wood fuels in municipal service buildings: steps to develop a successful municipal heating project helpful tools to implement energy contracting and life-cycle cost assessment

Catalogue of Good Practices

Catalogue of Good Practices

Thematic brochures A series of thematic brochures has been produced by the OPET partners,

Thematic brochures A series of thematic brochures has been produced by the OPET partners, each of wich include: • an overview of the promotion and dissemination actions undertaken by the OPET partners in each of these areas; • an up-to-date presentation of key issues in the field, relevant policy directives, trends and barriers; • a description of project results, including good practice showcases and future recommendations.

Interested in the Good Practice Catalogue and/or Thematic Brochures? Please enlist your name and

Interested in the Good Practice Catalogue and/or Thematic Brochures? Please enlist your name and address to order the CD-ROM and/or selected brochures The service is free of charge. The material will be sent to you upon publication, presumably by July 05.

 Promotion and dissemination of results of technology research and demonstration projects. . .

Promotion and dissemination of results of technology research and demonstration projects. . . continues to be a priority within the European Commission’s 6 th and 7 th Framework Programme

Thank you very much for your attention ZREU Gmb. H Member of the OPET

Thank you very much for your attention ZREU Gmb. H Member of the OPET Network Dipl. -Ing. Klaus Grepmeier Wieshuberstraße 3 D-93059 Regensburg +49 (0)941 464 19 -0 +49 (0)941 464 19 -10 [email protected] de www. zreu. de