The problem of additionality

Green electricity sold by utility companies is a peculiar product. It guarantees the origin of your power, just like an ethical investment fund guarantees the origin of your profit. But what’s the solid evidence for such a guarantee?

Guarantees of Origin (GoO) provide official proof that a certain amount of electricity has been generated by renewable sources. However, this system of accreditation was created before various kinds of state incentives for renewable energy came into being and complicated the situation with the problem of additionality.

The question of additionality is basically a question of whether the green power would have been produced anyway if the sale had not taken place. In most cases, additionality exists when the supply of electricity is generated over and above the requirement to meet existing legal obligations, or does not receive any state subsidies.

According to the website of Eugene Standard, most green power labels in Europe still do not include criteria for additionality – a system they view as 'greenwashing'. And even if additionality seems to be ensured in principle, there are still ways to escape it in practice.

Paolo Bertoldi, European Commission, DG JRC, Italy
Silvia Rezessy, Central European University, Hungary

Over the last decades there has been a heated debate about the comparative advantages of quantity versus price policy instruments in the field of sustainable energy (see definitions in the paper). In renewable electricity generation (RES-E) these mechanisms are represented by renewable quota systems coupled with tradable green certificates, and by feed-in tariffs (FITs), respectively. Recently the interest of energy efficiency policy makers has also been drawn by quantity policy instruments. In a few European countries white certificate schemes have been introduced, which combine energy savings obligations with tradable certificates for energy savings from verified projects. Following the promising results delivered by feed-in tariffs for the support of RES-E, it could be interesting to explore the feasibility and possible set up of a feed-in tariff for end-use energy savings.

The paper takes as a point of departure the comparative analysis of quantity systems versus price systems with regard to RES-E. It builds on the theoretical debate of “prices-versus-quantities” and reviews the results achieved by instruments from these two categories in RES-E. The paper reviews other more recent financial support schemes used for end-use efficiency and energy savings such as wire charges and demand response bidding. Taking into account the particularities of end-use energy efficiency projects, the paper subsequently discusses the feasibility and implications of introducing a feed-in type of support for end-use energy efficiency and energy savings. The paper finally discusses the viability for integration of a feed-in tariff for energy savings with a renewable one with the aim of achieving maximum cost effectiveness and improving the coherence of sustainable energy systems. The paper is intended to open a larger debate on a possible FIT for energy savings, and in particular on some theoretical and practical implementation issues, such as measurement.

RETScreen International is a unique decision support tool developed with the contribution of numerous experts from government, industry, and academia. Over the coming months, Leonardo ENERGY will be publishing a series of webcasts on energy project analysis using RETScreen.

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	Energy Efficiency This module introduces the energy efficiency project capabilities of RET Screen 4. View webcast (26 minutes) En français
	Passive Solar Heating Project Analysis This module discusses the heating of buildings using the solar gains available through high-performance windows. View webcast (32 minutes) En français
	Ground-Source Heat Pump Project Analysis This module discusses systems that provide heat by extracting it from the ground or a body of water and provide cooling by reversing this process. Such systems are also known as geothermal heat pumps, earth energy systems or GeoExchange systems. View webcast (43 minutes) En français
	Solar Water Heating Project Analysis This module discusses systems that use solar energy to heat water. View webcast (32 minutes) En français
	Solar Air Heating Project Analysis This module discusses systems that use solar energy to heat air. View webcast (30 minutes) En français
	Biomass Energy Project Analysis This module discusses the controlled combustion of biomass to provide heat. View webcast (35 minutes) En français
	Combined Heat and Power Project Analysis This webcast examines the use of combined heat and power systems. View webcast (22 minutes) En français
	Photovoltaic Project Analysis This module discusses the operation and application of photovoltaic energy systems, such as the one located on the roof of the National Research Laboratory in Varennes, Quebec, Canada. View webcast (45 minutes) En français
	Small Hydro Project Analysis This module has three objectives. These are first, to review the basics of small hydro systems; second, to illustrate key considerations in small hydro project analysis; and third, to introduce the RETScreen Small Hydro Project Model. View webcast (45 minutes) En français
	Wind Energy Project Analysis This module introduces wind energy project analysis. It has three objectives. These are first, to review the basics of wind energy systems; second, to illustrate key considerations in wind energy project analysis; and third, to introduce the RETScreen Wind Energy Project Model. View webcast (35 minutes) En français

A.F. Picanço, C de Salles, M.L.B. Martinez, P.C. Rosa, H.R.P.M. de Oliveira

Transformers are equipments applied to electrical systems to adjust voltage levels for consumption, distribution, transmission, and generation needs. Actual technology indicates that they are responsible for approximately one third of total network losses. These losses can be accounted as power utility costs, costs to society and to the environment itself. The aim of this paper is to study the relationship between the transformer costs and its losses. A method for collecting cost data and for building cost surfaces - the so called “Production and Total Cost Surfaces” is presented. The economic analysis of transformer designs considers a variation of the reference data of the main constructive parameters of a standard transformer. Therefore, changes are introduced, amongst others, in the core dimensions, such as the column circumscribed area, its diameter and the yoke area. This approach helps the power utilities to purchase equipment according to the forecast demand, decreasing the total network losses.

EU’s energy future has a new steering mechanism. The European Commission has proposed today its Second Strategic Energy Review, a wide ranging package aiming at strengthening energy security in Europe and supporting the 20-20-20 climate change proposals.

The package includes a large series of documents reinforcing energy efficiency legislation and giving particular stimulus to investments in more efficient, low carbon networks. The Commission places this package at the centre of its political agenda in order to achieve its energy objectives of sustainability, competitiveness and security of supply. This implies an overhaul of Europe’s energy system and the active involvement of public authorities, energy regulators, infrastructure operators, the energy industry and citizens.

The Commission stresses that European leaders need to give clear messages on the energy strategy. Hence the Strategic Energy Review. On this logic, it acknowledges the fundamental role of energy efficiency: “Energy and its use affect us all. Energy efficiency combats climate change, improves energy security, contributes to the attainment of the Lisbon goals, and reduces costs for all EU citizens.” and demonstrates a clear intention of giving a “new impetus on energy efficiency”.

$4 billion investment required

Ocean power is still a minor in the renewable energy sector. It consists mainly of wave power and tidal stream power, and both technologies have only just embarked on their first commercial projects. Today, less than 10 MW of ocean power capacity has been installed. However, according to a report by Greentech Media and the Prometheus Institute for Sustainable Development, this technology could reach 1 GW of installed capacity and grid parity within six years from now.

Such progression would require $2 billion of investment in research, design and development and another $2 billion in commercial production and installation. Compare those figures with the $500 million investment made between 2001 and 2007.

How this technology will develop in the next few years depends greatly on the investment climate and the willingness of the power sector to buy in to these type of projects. These, in turn, depend on the readiness of governments to create dedicated policies and incentives for this sector.

Tadeusz Skoczkowski

The history of energy is the history of technology. From the very beginning of the humankind there have always been research in energy technologies. Anyway the very recent changes ongoing in the globalizing world’s economy revealed with full strength the importance of having access to energy for all, both nations and individuals. Only very few countries in the world have energy resources in abundant. The majority have to struggle for energy in getting more and more competitive markets. To make things worst one can nowadays observe an unprecedented strong political influence on energy markets. The global battle for energy resources in long time perspective, at least till the end of the 21st century, is on. One of the conclusions drawn from the energy story is now that finally the times of energy lavish and irrational use must go out. The future both in energy production and energy use lies in innovative, environment friendly and efficient energy technologies. Energy efficiency is a proven, cost-effective resource for the European Union (EU). It is one of the cheapest ways of cutting greenhouse gas emissions and contributing to sustainability and security of supply. It supports economic development and creates jobs, and it also reduces energy costs providing lower energy bills for households and businesses alike. Exploiting the widely supported climate change policy European Commission (EC) has launched several programs enabling sustainable energy policy. Realizing the energy efficiency potential is one of the main objectives of this policy.

The EC warns that. "If we fall behind in the intensifying global race to win low carbon technology markets, we may need to rely on imported technologies to meet our targets, missing out on huge commercial opportunities for EU businesses".

Leonardo ENERGY and LPQI (Leonardo Power Quality Initiative) are carrying out an in-depth, 10-topic survey among electrical professionals to evaluate how electrical design practice has changed in the non-residential sector.

We would appreciate your contribution as it would form part of an overview of worldwide electrical design practices.

This chapter is intented to give a short introduction to PFC capacitor banks and helps answering the following questions :

1. Why are capacitor banks installed?

2. What kind of PQ problems do capacitors experience?

3. How are capacitors problems identified?

4. How to analyse the measurements and to define corrective actions to mitigate PQ problems ?

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There is much technical and conceptual information about Power Quality [PQ] available today – some is highly academic some less so but little if any is directly related to methodical measurement of end users’ electrical installations specifically for Maintenance Managers.

As lack of measurement was one of the main findings drawn from the European Copper Institute’s recently completed PQ Survey and in order to offer maintenance professionals’ practical information about measurement, Leonardo ENERGY presents an overview of the more common malfunctions experienced by electrical power systems. Add to that a review of the equipment and solutions required for a correct evaluation of electrical power quality and each type of malfunction will be analysed in terms of the necessary measurements that will lead to effective diagnostics and solutions.

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This Application Note aims at describing the use of energy and the potential energy savings in the hotel sector, on the basis of theory and practical case studies. Hotels and restaurants represent some 9% of total energy consumption in the utility buildings sector. Utility buildings are offices, shops, hotels, restaurants, educational establishments and care institutions.

Before going into detail on the energy consumption of a hotel, one needs to have a view on the utility sector, the part hotels play in the sector, the number of hotels in Europe and the different types of hotels. This is the first part of the Application Note, followed by a description of the main energy uses and some case studies on energy efficiency improvements.

Will energy efficiency always fail to win its case through the consultation process?

Jacky Pett, Tyndall Centre for Climate Change Research

Which segments of society ‘win’ as a result of climate change policies? Actors generally support the principle of reduced emissions through decarbonising fuels, and many are convinced that reducing overall energy consumption is an essential strategy to prevent further damaging climate change. However, proposed strategies for ensuring that sufficient action is taken to reduce emissions suffer from complexity, uncertainty and dissent, especially from vested interests. The policy maker has to choose between many options, and many conflicting consultation responses, to select the most politically feasible and socially acceptable pathway.

An FP6 funded project into Adaptation and Mitigation Strategies for climate change is developing an innovative tool to support policy choice based on a mix of methods, using case studies to test the outputs. Resources include stakeholder deliberation on criteria necessary to evaluate pathway options. The first stage maps energy actors’ perspectives of climate change, identifying key issues for socially acceptable policies for the 2012 – 2050 period that would either limit climate change to only 2°C increase, or provide a ‘soft landing’ to a world 5 degrees above present.

This paper describes this mapping exercise and indicates the issues of most debate, on which rest the criteria for social acceptability. It describes how deliberative methods can involve stakeholders more effectively in policy formation, contrasts the roles of deliberation and consultation, and discusses the engagement of powerful vested interests with this approach. While there are considerable overlaps in perspectives of different actors, leading to specific points of contention, importantly, decisions on selection and engagement of stakeholders with the process become critical if the criteria for policy decisions are to be accepted by society.

Miroslaw Wciœlik, Robert Kazala, Michal Kaskawski, Tomasz Kwaœniewski

The monitoring system of power quality in a network is introduced. The paper deals with functionality, hardware and software of the system. Algorithms of data processing as well as ways of improving processing accuracy of signal processor are presented. Sample results observed by means of the developed system are shown.

A new training package on “Sustainable Energy Regulation and Policymaking for Africa” is now freely available via the REEEP website. Developed by UNIDO with contributions from a number of organisations, and co-funded by REEEP, it provides an introduction to the key issues relating to the energy market and energy regulation as they affect sustainable energy.

Well-designed and effective policies and regulatory frameworks can have a significant positive impact on the uptake of new, more energy-efficient industrial processes and the development of the rural/renewable energy technology sector. This toolkit is part of UNIDO and REEEP's efforts to develop capacity-building programmes to address barriers to developing renewable energy and energy efficiency within developing countries.

Click here for further info and to access the toolkit.