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Green Better Lowering management carbon growth of natural - - PowerPoint PPT Presentation

H OW TO UNDERMINE IDEAS OF G REEN GROWTH : C ASE OF PHOTOVOLTAIC ELECTRICITY PRODUCTION IN THE C ZECH R EPUBLIC Jan Vvra Department of Regional Management Faculty of Economics University of South Bohemia INPROFORUM 2014, November 6-7, 2014,


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HOW TO UNDERMINE IDEAS OF GREEN GROWTH: CASE OF

PHOTOVOLTAIC ELECTRICITY PRODUCTION IN THE CZECH

REPUBLIC

Jan Vávra

Department of Regional Management Faculty of Economics University of South Bohemia

INPROFORUM 2014, November 6-7, 2014, University of South Bohemia

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SLIDE 2

STRUCTURE OF PRESENTATION

Concept of green growth Methods and research questions Legal framework for PV PV boom Problematic consequences

www.solarninovinky.cz

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SLIDE 3

CONCEPT OF GREEN ECONOMY/GROWTH

http://www.visionnoblesville.com/pillars/growth/

Reaction to the economic recession How to kickstart the economy in a more eco-friendly

and inclusive way?

Concepts of green growth/economy, Green New Deal UNEP, OECD, World Bank, EU – specific concept

Different details, but similar goals and main ideas

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SLIDE 4

Green growth

Fostering economic growth Decreasing of

  • env. pressure

Lowering carbon dependency Lowering inequality and decrease poverty Renewable sources of energy Lower env. pollution Better management

  • f natural

resources Resource and energy efficiency

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SLIDE 5

Green growth

Fostering economic growth Decreasing of

  • env. pressure

Lowering carbon dependency Lowering inequality and decrease poverty Renewable sources of energy Lower env. pollution Better management

  • f natural

resources Resource and energy efficiency

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SLIDE 6

METHODS AND RESEARCH QUESTIONS

Methods

Desk study research, data analysis and literature review

Primary sources (legislative documents, governmental

strategies, reports of the authorities, and articles in media)

Secondary literature (research papers and analyses)

Research questions

What was the legal and financial framework for the

support of the solar electricity in the Czech Republic?

How did the production of solar electricity increase? How were the rules applied? What are the consequences of the implementation of PV

support?

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LEGAL FRAMEWROK FOR PV ELECTRICITY

EU 2001/77/EC Directive

On the Promotion of Electricity Produced from

Renewable Energy Sources in the Internal Electricity Market

Indicative target of 12 % of gross domestic energy

consumption from renewables by 2010 in EU

Czech Republic 180/2005 Act

On Promotion of Use of Renewable Sources Indicative target of 8 % gross electricity consumption

from renewables in 2010

Guaranteed feed-in tariff or “green bonus”

Focus of this paper is on feed-in tariffs

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CZECH LEGAL FRAMEWORK FOR PV

ELECTRICITY (ACT 180/2005)

15 years period of guaranteed feed-in tariffs to reach

15 year repayment period for the producers of energy from renewable sources

Energy Regulatory Office is allowed to lower the feed-

in tariffs only for 5 % annualy

High feed-in tarrifs for PV power stations to reflect

the investment cost

15 565 CZK in 2006, wind turbines 2 965 CZK, small hydro

power stations 2 831 CZK

Fall of investment costs of PV in 2007–2009

  • Approx. for 40 % (BDO Audit, 2012)
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PV BOOM IN THE CZECH REPUBLIC

5 000 10 000 15 000 20 000 25 000 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 MWh

Installed output

Coal Natural gas Nuclear Hydroelectric Wind Solar

Source: ERÚ (2014).

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PV BOOM IN THE CZECH REPUBLIC

In 2009 Energy Regulatory Office warned Parliament

and Government about the solar boom

No changes of legislation New legislation in 2010

Feed-in tariffs lower by more than 5 % for the power

stations with repayment period shorter than 11 years

Feed-in tariffs only for the small on-roof (or wall) power

stations (≤ 30 kWh)

New 26 % tax on electricity produced by solar power

stations (constructed in 2009–2010) for period 2011– 2013, except small on-roof (wall) power stations (≤ 30kWh)

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CZECH AND GERMAN FEED-IN TARIFFS

100 200 300 400 500 600 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Euro/MWh Czech Republic Germany

Note: Mean of various feed-in tariffs. Source: Bundesverband Solarwirtschaft (2008), Fulton & Mellquist (2008), ERÚ (2013).

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CZECH RENEWABLE ELECTRICITY

1 000 000 2 000 000 3 000 000 4 000 000 5 000 000 6 000 000 7 000 000 8 000 000 9 000 000 10 000 000 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 MWh

Electricity production from renewables

Hydroelectricity Wind Biological Solar

Source: ERÚ (2014).

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PROBLEMATIC ECONOMIC CONSEQUENCES

Costs for government, industry and households Legal actions again the state due to the retroactivity of legislation Low cost-efficiency of the climate change mitigation

Source: Radziwill (2012).

50 100 150 200 250 300 350 400 450 500 Solar Geothermal Biogas Biomass Wind Water €/tonne of CO2-eq

Abatement costs of greenhouse gases through renewable sources of energy

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PROBLEMATIC SOCIO-POLITICAL

CONSEQUENCES

Criminal context of the PV industry

Prosecution, lobbyism , problematic role of some Energy

Regulatory Office employees, unclear ownership of PV stations

Loss of trust

Business-government Public-Government Public-Business

Discrediting of renewables and ideas of green

growth

From both parts of political arena (left-right)

Former Minster of Industry Martin Kuba, president Miloš

Zeman, etc.

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THANK YOU FOR YOUR ATTENTION.

Jan Vávra

Department of Regional Management Faculty of Economics University of South Bohemia jvavra@ef.jcu.cz