Dr. Anastasios Antonakos General Manager NanoDomi 8th International Scientific Conference on Energy and Climate Change 7-9 October 2015 Athens, Greece Organized by Energy Policy and Development Centre (KEPA) Coordinator of P R O M I T H E A S The Energy and Climate Change Policy Network Mature, cost competitive technology 37 GW in 2013, 40 in 2014 Cumulative capacity 178 GW Installations slowed down, transitioning period, PV integration into electricity market (blue annual installed capacity) - (red cumulative installed capacity) 5 th worldwide to per capita installed PV capacity, 1 GW of new installations in 2013, 2014 only 17 MW. 4,5 bn invested during the last 5 years, cumulative installed capacity 2600 MW. Yellow: Islands Blue: Mainland Yellow: Ground mounted systems Blue: Roof mounted systems RETURN ON INVESTMENT EVOLUTION FIT was created to support a not competitive energy source Investment returns reached exotic figures Policy was reviewed retroactively EVOLUTION OF THE FIT FOR THE ROOF MOUTNED INSTALLATIONS IN GREECE FIT support scheme for building installations was created Compensation prices had to be reduced Became available due to the lower cost of PV systems, Prices decline 75% in the last 10 years Under the net metering scheme, the installed photovoltaic system is connected to the power grid. The produced power is consumed directly by the consumer and any instant excess is channeled to the grid. Energy offset per energy bill & yearly. Minimize the cost of electric energy. Energy offset Capability to minimize the cost for heating cooling hot water by combine net metering with heat pumps. Sustainable model. The net metering does not does not burden the system and other consumers On the contrary, it stabilize the grid and it is according to the smart grid future scheme, where energy production should be done near to consumption. Low risk, no revisions in countries where it is already running enhances the energy class and value of the property. In line with the New Building Regulations. The energy which is produced but not consumed instantly is not lost (like in off grid systems) but it is transferred up to a year to offset against days when production is less than consumption Self consumption on mid and low voltage connections Currently only via photovoltaic technology is allowed The energy offset takes place annual The maximum installation is 20kw for houses or businesses except factories that can have installed 50% of their nominal power (ie also Medium voltage is capable now) Maximum 20kw on not grid connected islands and 50kw for Creta For charitable companies even 100% of nominal power can be installed Installation not only on rooftop, but also in your field or in the next door field Not only owners but also leaseholders can install net metering PV On a block of flats every flat can have its own PV system Feed-in-TariffsNet Metering Payback10kWp : +20% (ie currently 0,7 /kWh) Energy offset not economical payback Currently ~0,11-0,14 /kWh) RiskHigh risk (already 2 times haircut) Low risk (only energy offset) Future Value No price indexingSaving follows the Energy value (it is expected to increase yearly) OtherLower IRR Only investment interest Slow licensing Increasing Energy cost saving Environmental impact Smart grid Capability to increase power High IRR (savings) Identical for business installation Easy & quick licensing Residential Charges ConsumerProducerProfit per kWh Annual Consumption (kWh)14179,50 Energy charges /kWh0,09460 Charges for transport network, /kWh0,00590,0030 Charges for distribution network, /kWh0,02240,0115 Charges of common benefit services(/kWh)0,0070 Special Consumption tax (/kWh)0,00220,0000 Additional 50,00040,0000 Special duty of greenhouse gas emissions reduction (/kWh)0,02630,0135 Other charges (/kWh)0,00050,0000 TOTAL (/kWh)0,15930,0350 VAT0,02070,0046 TOTAL (/kWh)0,18000,03960,1404 ANNUAL PROFIT FROM SELF CONSUMPTON1.991,48 Commercial Charges 22 Consumer ProducerProfit per kWh Annual PV Production (kWh)34363 Annual Consumption (kWh)636800,0000 Energy charges /kWh 5.259,33 0,0826 Charges for transport network, /kWh 346,30 0,00540,0034 Charges for distribution network, /kWh 1.483,82 0,02330,0145 Charges of common benefit services(/kWh) 1.161,52 0,0182 Special Consumption tax (/kWh) 318,40 0,00500,0000 Additional 5 45,64 0,00070,0000 Special duty of greenhouse gas emissions reduction (/kWh) 1.862,02 0,02920,0034 Other charges (/kWh) 29,28 0,00050,0000 TOTAL (/kWh) ,31 0,16500,03950,1255 VAT 1.365,82 0,0214 0,0163 TOTAL (/kWh) ,13 0,1864 0,1418 ANNUAL PROFIT FROM SELF CONSUMPTION 4.871,51 Denmark Netherlands Belgium Italy Cyprus Hungary Canada USA (offers net metering for other renewable sources as well) Solar PV technology is a reliable cost-competitive energy source that can power the future of humanity. Feed in tariff support schemes supported the growth of the market. Policy mistakes were made in the past this should not be charged to the technology itself. Today many developed countries offer net-metering (USA for other renewable technologies as well) Net metering can offer very good financial returns especially if combined with other energy saving technologies (such as heat pump). The risk of such investment is considerably lower than FIT A stable economic environment combined with an organized market could resurrect the solar PV market and restore the faith to the technology. An additional boost to the market could be given if net- metering was accompanied by addition incentives such as: Grant or/and government guaranteed bank loans to the producer Excess energy (or part of the excess energy) was compensated with the grid marginal price Excess energy was stored in batteries Additional funding for the batteries, that would eventually drive their cost down End of presentation Dipl. Eng. Konstantinos LOUKIDIS Energy Engineer, Project Manager, ENTEKA S.A. Dr. Anastasios ANTONAKOS General Manager, NanoDomi Dipl. Eng. Konstantinos GKARAKIS Energy Engineer MSc, TEI Athens/Energy Engineering Dept.