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Energy production costs: RES vs. conventional sources Pierre - - PowerPoint PPT Presentation

Dec 21, 2022 116 likes •312 views

Energy production costs: RES vs. conventional sources Pierre Tardieu, Regulatory Affairs Advisor, EWEA Around und 700 0 mem ember bers from om almost st 60 0 countr untrie ies Manufacturers with a leading share of the global wind

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Energy production costs: RES vs. conventional sources

Pierre Tardieu, Regulatory Affairs Advisor, EWEA

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Around und 700 0 mem ember bers from

  • m almost

st 60 0 countr untrie ies

  • Manufacturers with a leading share of the global wind

power market

  • Component suppliers
  • Research institutes
  • National wind and renewable associations
  • Developers
  • Electricity providers
  • Finance and insurance companies
  • Consultants
  • Contractors

This combined strength makes EWEA the world’s largest and powerful wind energy network

www.ewea.o .org rg/m /membership hip

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EWEA’s leading members

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Outlin tline

  • 1. Development of the European market
  • 2. Cost of wind vs. conventional technologies
  • 3. Support for renewables compared to support for

conventional energy

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Cumulat mulativ ive e wind nd power er inst stalla allatio ions ns in the he EU (GW)

12.9 17.3 23.1 28.5 34.4 40.8 48 56.7 65 75.2 85 94.3 106 20 40 60 80 100 120 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Source: EWEA

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Annual ual onshore shore and nd offshore fshore inst stallations allations (MW)

4,377 5,743 5,186 5,749 6,454 7,086 8,648 8,109 9,695 8,964 8,790 10,729 51 170 276 90 90 93 318 373 575 883 874 1166 2000 4000 6000 8000 10000 12000 14000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Offshore

  • nshore

Source: EWEA

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Wind nd power r shar are e of total

  • tal electr

ectrici icity y cons nsum umption ption in EU (7%) %) and d in member ember states

0% 0% 0% 1% 1% 1% 2% 2% 3% 3% 4% 4% 4% 4% 4% 5% 5% 6% 6% 6% 6% 7% 7% 11% 13% 16% 17% 27%

0% 5% 10% 15% 20% 25% 30%

Sources: EWEA, Eurostat 2010

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Installed talled power er generating nerating capa pacity city per r year ear in MW and d RES shar are e (%)

5000 10000 15000 20000 25000 30000 35000 40000 45000 50000 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Peat Fuel oil Nuclear Coal Gas Geothermal CSP Waste Hydro Biomass PV Wind

RES (70%)

Sources: Platts PowerVision 2012, EWEA, EPIA, ESTELA

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Cost st of wind nd vs. convent entional ional energy ergy

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Cost st of wind nd energy ergy

Wind turbines and installation

Lifetime of project Cost of capital Price of wind turbines, foundation, etc. Rotor diameter and

  • ther physical

characteristics Site characteristics

Capital costs Operation and maintenance costs Total costs per year Annual energy production Cost of Energy €/kWh

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Evolu

  • lutio

ion n and d futu ture re of Capital ital cost sts s of wind nd power er

  • nshore

shore and d offsho fshore re

  • 500

1,000 1,500 2,000 2,500 3,000 3,500 4,000 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 €/MW Onshore CAPEX (€/KW) Offshore Capex (€/kW)

Offshore Average Capex 3,470 €/kW Onshore Average Capex 1,100 €/kW

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Rang nge of CAPEX EX for r power er gen enerating erating techn chnologie

  • logies

s

Capit ital al cost t per techn hnol

  • logy
  • gy (euro/kW)
  • /kW)

Techn hnol

  • logy
  • gy

2011 2020 Wind onshore

  • re

1,095-1825 803-1533 Wind offshor shore 2,263-4,307 1,460-2,555 Gas 584-730 584-730 Coal 584-1606 584-1606 Nuclea ear 1825-4088 Source: IEA, Energy Technology Perspectives 2012

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Levelis elised cost t of electr ectrici icity y from

  • m different

erent gen eneratin erating g sour urce ces

Levelise ised d cost t of electricity ctricity (€/MWh MWh) Techn hnol

  • logy
  • gy

2007 2020 2030 Wind Onshor hore 85 68 64 Wind Offsh fshor

  • re

104 85 76 Coal 68 69 68 Gas 63 84 90 Nu Nuclea ear 69 67 68 Source: European Commission (Joint Research Centre)

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Shor

  • rt

t term rm expe pecta ctations tions

  • Wind energy investments (on and offshore) do not suffer

from unpredictable and volatile costs.

  • To compare LCOE, risk on fuel and carbon price volatility

must be included.

  • EWEA electricity cost calculator:
  • Risk factored-in: wind competitive in 2020
  • Risk not factored-in: wind competitive in 2030
  • Trends:
  • Onshore wind is moving towards competitiveness in

2016 (Bloomberg New Energy Finance)

  • DONG Energy recently stated: offshore wind LCOE

could fall to 100€/MWh by 2020 from 150-160 today.

  • Offshore cost reduction pathways could lead to 39%

cut in levelised cost of wind (Crown Estate)

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Suppo pport t for r wind nd vs. conven entional tional energy ergy

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Historical

  • rical and

d current rent R&D suppor pport t

Source: Clean Energy Progress report, OECD/IEA 2011 CEM countries: Australia, Brazil, Canada, China, Denmark, the European Commission, Finland, France, Germany, India, Indonesia, Italy, Japan, Korea, Mexico, Norway, Russia, South Africa, Spain, Sweden, the United Arab Emirates, the United Kingdom, and the United States.

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Suppor

  • rt

t for r foss ssil il fuels els in EU20* RES in EU27 and d globa

  • bal suppor

port t for r wind nd energy gy in €bn bn

Biofuels 5 10 15 20 25 30 35 40 45 Global wind support EU20 Fossil Fuel subs EU27 RES support

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Conc nclu lusi sions

  • ns
  • Onshore wind will edge towards competitiveness in the

next decade

  • Offshore wind will eventually follow a similar curve
  • In order to deliver this the industry needs stable legal

frameworks to make the necessary investments:

– Well designed support mechanisms; – Level playing field and liberalised electricity market.

  • Supporting renewables is an investment in our economy:

– 238 000 jobs in 2010 – € 32 Billion of contribution to the DGP – € 8.8 Billion of exports

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THANK ANK YOU www.ewea.org