Distributed Generation Markets in Europe: Expansion, investment and future opportunities

Distributed Generation Markets in Europe: Expansion, investment and future opportunities published by Business Insights in March, 2010. This report price starts from US $ 2875.

Introduction

Abstract

European efforts to combat climate change, improve security of supply, drive forward innovation, and boost competitiveness over the next decade will cause the distributed generation (DG) share of Europe' s installed electricity generation capacity to grow considerably. These drivers are encapsulated in the EU' s Energy and Climate Change Package endorsed for 2020, which sets ambitious headline targets for the EU. Furthermore, the growth of DG is an integral component of an emerging vision of an efficient and highly responsive ' European smart grid' , in which the actions of all electricity users are fully integrated, and the liberalization of the EU electricity market is pursued to a ' user-centric' conclusion. According to Improgres (Improvement of the Social Optimal Outcome of Market Integration of Distributed Generation (DG) and renewable energy resources (RES) in European Electricity Markets), EU-27 electricity generation from DG/RES will rise from 490 terawatt hours per year (TWh/yr) in 2005 to about 1,280TWh/yr in 2030. The proportionate share of electricity generated will also grow from about 15% to approximately 26% during the same timeframe. But there are a number of barriers holding back the further spread of DG in the European market. These range from simple commercial issues, such as the fact that the power produced is not currently cost-effective compared to bulk generated electricity, to more complex regulatory reforms. As well as great political will, overcoming all these hurdles involves money. Indeed, it is estimated that Europe will need to spend €2 trillion on upgrading its grid infrastructure over the next quarter century.

Table of Contents

Executive summary

• Introduction
• Market outlook
• Legislation and environmental landscape
• Distributed generation systems
• Distributed generation networks
• Case studies
• Future development of distributed generation

Chapter 1 - Introduction

• Summary

• Introduction
• Reducing CO2 emissions
• Security of supply
• Barriers to DG

Chapter 2 - Market outlook

• Summary
• Introduction

• Energy demand in the EU-27
• EU-27 electricity generation
• DG role in generation

• National variations in DG/renewable energy capacity
• Case study - Germany
• United Kingdom

Chapter 3 - Legislation and environmental landscape

• Summary

• Introduction

• EU legislation - framework
• The EU 20-20-20 renewable energy targets for 2020
• 2009/72/EC Electricity Directive
• Option 1: full ownership unbundling
• Option 2: ISO
• Option 3: ITO

• Support schemes
• Feed-in tariff schemes
• Prime premiums
• Quota systems
• Tendering systems
• Net metering
• Effect of support schemes on DG

• National legislation
• Case study: Germany: 2009 Renewable Energy Sources Act (Erneubare-Energien-Waermegesetz - EEG)

• Environmental effects of DG

Chapter 4 - Distributed generation systems

• Summary
• Introduction

• Traditional fossil fuel-based systems
• Gas turbines
• Microgeneration systems
• Turbine optimization
• Reciprocating engines
• Gas engines
• Diesel engines
• Dual fuel engines

• Fuel cells
• Proton exchange membrane fuel cell technology
• Case study: UK
• Case study: Germany

• Renewable technologies
• Introduction
• Solar
• Wind power
• Marine energy
• Small Hydro
• Biomass

Chapter 5 - Distributed generation networks

• Summary

• Introduction
• Today' s electricity network system
• Active transmission networks
• Passive distribution networks
• Local voltage and fault current levels
• Predictability of power output
• Data collection
• Power quality
• TSO and DSO interactions

• Future evolution of the distribution network
• Electricity storage technologies
• Microgrids
• Virtual power plants (VPPs)
• Offshore Grids

• Conclusion

Chapter 6 - Case studies

• Summary
• Introduction

• UK: Legislation helps drive DG
• Innovative funding incentive (IFI)
• RPZ on the Orkney Islands

• Ireland: ending its energy isolation
• Storage technologies in the wind sector

• Malta: Becoming a ' smart' island

Chapter 7 - Future outlook

• Summary
• Future development of distributed generation

• Cost of distributed generation
• Utilities partnering with DG

Appendix

• Glossary
• Index

List of Figures

• Figure 1.1: Combined heat and power generation share of gross electricity generation (%), 2007
• Figure 1.2: EU-27 energy dependence (%)
• Figure 2.3: EU-27 final energy demand by sector (ktoe)
• Figure 2.4: EU-27 and EU-15, combined heat and power generation share of gross electricity generation (%), 2007
• Figure 3.5: Germany renewable capacity (GW), 2008
• Figure 4.6: Cost of energy for DG applications (US$/KW), 2006
• Figure 4.7: Grid connected microgeneration system
• Figure 5.8: Traditional electricity network
• Figure 5.9: Renewable energy sources share of gross electricity generation (%)
• Figure 5.10: Smart grid
• Figure 5.11: Wind power electricity generation (GWh)
• Figure 6.12: UK, renewable energy share of total electricity (%)
• Figure 6.13: Ireland renewable electricity generation forecasts (GWh),
• Figure 7.14: Forecast of CHP share of electricity generation in selected European countries (%), 2015 and 2030

List of Tables

• Table 1.1: Combined heat and power generation share of gross electricity generation (%), 2007
• Table 1.2: EU-27 emissions of carbon dioxide (MMTCDE)
• Table 1.3: EU-27 energy dependence (%)
• Table 2.4: EU-27 final energy demand by sector (ktoe), 2008
• Table 2.5: EU-27 population projections (thousands), 2008 - 30
• Table 2.6: EU electricity generation (TWh)
• Table 2.7: EU electricity generation by fuel type (GWh), 2005 - 30
• Table 2.8: EU-27 and EU-15, combined heat and power generation share of gross electricity generation (%), 2007
• Table 2.9: Electricity prices for household consumers, (€ per 100kWh)
• Table 3.10: EU legislation impacting DG
• Table 3.11: EU renewable energy targets for 2020 (%)
• Table 3.12: Germany renewable capacity (GW), 2008
• Table 3.13: Emissions output for DG
• Table 4.14: Cost of energy for DG application ($/KW), 2006
• Table 4.15: Microgeneration systems
• Table 4.16: Cost and potential of renewable energy sources at selected locations in Germany, 2030
• Table 4.17: Wind power installed capacity in Europe (MW), 2008
• Table 5.18: Renewable energy sources share of gross electricity generation (%)
• Table 5.19: Wind power electricity generation (GWh)
• Table 6.20: UK, renewable energy share of total electricity (%)
• Table 6.21: Grid connection cost share of investment total (%), 2007
• Table 6.22: Savings from DG compared to centralized generation (%), 2008
• Table 6.23: Ireland renewable electricity generation forecasts (GWh),
• Table 6.24: MEC application fee excluding VAT (€ ), 2008
• Table 7.25: EU-27 DG share (%), today and 2030
• Table 7.26: Forecast of CHP share of electricity generation in selected European countries (%), 2015 and 2030
• Table 7.27: Distribution network costs per KW of DG (€ /KW), 2009
• Table 7.28: Distribution unit investment costs per KW of DG (€ /KW)
• Table 7.29: Cost of DG for the residential sector, 2009

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