Policy design challenges to address the energy transition in EU small islands Dr. Ulrike Lehr, Institute for Economic Structures Research (GWS, Osnabrück, Germany)
EU Islands • Islands are particularly vulnerable to climate change, and over-dependent on fossil fuels and energy imports. • Many of Europe’s 2400 islands are small isolated systems and small markets. • 15 million Europeans live on Islands • Do they have the potential to be frontrunners in the clean energy transition by adopting new technologies and implementing innovative solutions? • How do current costs compare to prices and what are likely future pathways?
EU activities • Clean energy for EU islands, initiative launched in May 2017 in Malta, EC and 14 EU countries (Croatia, Cyprus, Denmark, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Malta, Portugal, Spain, and Sweden) signed a Political Declaration. • In 2018, the ‘ Clean energy for EU islands secretariat launched • Island Guide to clean energy transition research published in June 2019 valuable collection of sources and examples • The Smart Islands Initiative; bottom-up; European island local authorities; tapping the potential of islands to function as labs for technological, social, economic and political innovation. • Thus far, no additional binding targets, no policy, no quantitative connection to Clean energy 4all Europeans package.
24 partners, 12 european islands represented Baltic Azores Balearic Climatologists and (Fehmarn) economists are involved, working together Canary Corsica Crete in the modelling of the components of the Impact Chains , West per sector. Cyprus Madeira Indies Malta Sardegna Sicily
Energy challenges • Size – economies of scale unfavorable • Seasonal changes in demand due to tourism • Connection to mainland makes own decisions obsolete • Connection to mainland makes own decision impossible • Subsidized prices make render more sustainable solutions too costly • Increasing challenges from climate change: • high electricity demand for cooling during heat waves or for desalination during drought • High vulnerability of centralized infrastructure during storms & floods
Size – economies of scale unfavorable… but • The industrial activities are very scarce if not completely absent, and the electricity demand is mostly due to the residential sector. • The electricity production takes place mainly through a diesel generation plant largely oversized compared to the winter demand, because it has to be ready to cover summer peak loads. • The plant size is proportioned to the touristic flux of the island, more tourists means bigger plant. Thus, the energy generation is inefficient and it has high operating costs, much higher than the continent, due to the its inconstant use, due to the plant maintenance, and due to the supply from the mainland with tankers.(source: smart islands EU) • BUT: size can be a benefit, enabling microgrids and district heat
Possible measures Supply side Demand side • E.g. Canaries: • E.g. Cyprus: Upgraded • El Hierro, wind-pumped hydro power street light station; • Crete: LED lighting and • La Graciosa, Electric microgrid (powered management system in mainly by PV) with battery and electric transport tunnels and vehicles; airport interchanges • Punta Jandía village hybrid system wind- diesel system (plus H2 system)
Wind-Pumped-Hydro power station – 5 th FP EUROPEAN COMMISSION, DG TREN Contract Nº: NNE5-2001-00950 "Implementation of 100% RES Project for El Hierro Island -Canary Islands Project Coordinator: ITC El Hierro island
EL HIERRO WIND-PUMPED-HYDRO SYSTEM The wind-pumped-hydro system Area 278 km 2 allows for an annual penetration of RES of aprox. 60 % Max. Height 1.501 m. 10,587 Population inhab. Electricity Plant 14.9 MW (Diesel) nominal power Peak demand 8.1 MW Wind Farm (5 ENERCO E-70) 11,5 MW Hydroelectric Substation 11,32 MW Pumping Station 6 MW 384.000 m 3 Upper Reservoir 158.000 m 3 Lower Reservoir Height of upper reservoir 700 m Total energy RES: 27 GWh New Diesel systems 0 45 GWh Diesel: 18 GWh RES penetration (2018) 57,5 %
Samsø – the Danish energy revolution • Citizen involvement and co-ownership • The Danish island of Samsø has • Use the size effect for district heating become a leader in combatting climate change, with 100% power • Use agriculture for provision of biomass independence in less than five (straw) years thanks to a community-wide commitment. • Use size for improving transport • Wind energy, central heating • In summer hundreds of yachts consume • Electric, self-drive cars by 2030 a lot of electricity. PV combined with innovative battery packs take care of the seasonal peak-time demand
GRAN CANARIA REVERSE PUMPED-HYDRO SYSTEM • The reverse hydro-pumping power station Chira-Soria is being built. • Operation foreseen for 2025 • This power plant will contribute to mitigate the impact of the integration of large amounts of marine power in the Gran Canaria grid. Chira: 901 m; 5,6 hm³ 36% of peak demand of Gran Canaria Soria: 608 m; 32,2 hm³ 6 reversible turbines • Pump = 6 * 36.7 MW = 220 MW • Turbine = 6 * 33.3 MW = 200 MW Penstock = 19.5 km. 5 m diameter Connecting cables = 18 km Investment 320 M € Source : Red Eléctrica de España.
MARINE ENERGY AND CLIMATE CHANGE A major concern related to these capital intensive marine energy systems, is assuring an economic useful life beyond their PAYBACK periods; an issue that has to be addressed when faced with the growing risk of extreme weather events induced by climate change, with potential to destroy off-shore power generation systems. • Assessing these climate change impacts and proposing solutions for mitigating them, will contribute to the reduction of risk, making investment in marine energy projects more attractive to private investors. SOCLIMPACT project • Identifies and assesses hazard factors, associated risks and impacts of climate change • Addresses strategies to adapt marine RES to extreme weather events and minimize negative impacts of climate change • Will propose cost-effective actions to reduce vulnerability and strengthen the resilience of the marine RES systems and its associated electrical infrastructure
Conclusions • Island system operators faces a growing challenge of bringing balance to electricity supply and demand, in a context of rapid growth of non- dispatchable RES power generation • Challenges for overcoming existing barriers to RES penetration in electrical island systems, poses new opportunities for complementary technologies such as energy storage systems
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