Conditions

In Judenburg a group of NENA partners are already working intensively on a common project for the implementation of the Eco-Power Stock Exchange.  It is the intention of the concerned NENA project partners to make preparations for the implementation of the eco power stock exchange on a regional level in the framework of the NENA project.

Summary

Eco-power (green electricity) certificates and the trading thereof were being discussed seriously in the EU parliament as an environmental and energy-political steering tool as early as 1998.  In the meantime, most of the member states have made laws concerning quota provisions and rules for the trade of certificates and/or regulations for the lawful tariffs for the supply of eco-power.

The EcoPowerNet project intends to create local associations in various European regions parallel to each other.

In accordance with the eco-power stock exchange model in Vorarlberg, a free market is created by way of cooperation with the regional cluster of eco power producers, electricity traders and environmental organisations.  This will be a free market for eco power plant shares and green electricity certificates.  With this model, operators and investors of small plants have access to their own customers and/or an increased investment guarantee and rate of return.

Function of the model “eco-power stock exchange”:

The agreement made between the electricity consumer and the dealer concerning the use of an energy product that has been awarded the eco-power certificate, and leads to the consumer voluntarily paying a little more for their electricity on the basis of their power consumption.  The levy is applied to the normal electricity bill.  The energy dealer moves the extra money through a trust company, without any deductions, to the eco-power producer that was chosen by the consumer.

The EcoPowerNet project makes an important contribution to investment in new production plants for electricity from renewable resources.

The project supports regional small producers and organises them in a collective network and in the development of offers for the energy consumers.  An effective tool is then available to the local authorities at the end of the project that supports the building of power stations in their communities and initiates the participation of the citizens.

The work packages

Inspired by the success-story of the Eco-Power Stock Exchange in Vorarlberg this approach should be spread throughout the Alpine region. It gives regional eco-power suppliers the chance to receive good revenues for their energy product.

EcoPower wants to establish regional structures to strengthen the supply of eco-power on the regional level. Therefore, the Project Partner Vorarlberg / ARGE Erneuerbare Energie have to further develop their know how. The focus is on

• How to establish a common network for the Eco-Power Stock Exchange
• How to alter the approach of Vorarlberg so that it fits the other regions involved in NENA
• How to incorporate the Eco-Power Stock Exchange in the regional energy environment

Each of the project partners analyse conditions for implementation of the eco-power stock exchange on a regional level.  The potential for production, related to system participation and structures of the electricity trade is analysed, and possibilities for implementation with the people and businesses in the region evaluated.

Objectives of the Action

This project will stimulate investment in production of electricity from renewable energy.  The main target is to further develop the regional eco-power production and to generate an employment factor.  The intention of EcoPowerNet is to increase liberalisation of the market and make it possible for the consumer to have free choice when it comes to the supplier and/or producer.  It increases the opportunities for the regional producer to bring his green electricity production to the consumers in a liberalized electricity market environment.

The project results will give the electricity consumer the chance to steer the amount of energy consumed and the costs thereof to those facilities that he has chosen.  The local eco-power stock market that is established with the project allows a direct allocation of payments.  Apart from the free choice of supplier, the eco-power producer is now in the position to enter the free market with his facilities and to advertise his product.  This project will therefore produce market economy conditions that can be used to jump the hurdles for the marketing of eco-power production.  In the course of this project at least four local networks will be established as best-practice examples.

State of the art

Certified marketing systems have been discussed seriously in the European Parliament since 1998 as an environmental and energy-political steering tool.

A number of projects have been started and numerous EU projects have tackled this subject successfully.  Up until now, the certificates and marketing systems haven't been appreciably carried out, although the European member states have developed statutory models and regulations which have led to the increase of eco-power production.  Through the definition of statutory feeding tariffs, investment in alternative energy production is profitably constructed and with that, investment activities forced.  The recent amendments in Austria brought a decrease in the feeding tariffs with it and made the investment market insecure.  Apart from the state controlled steering measures, private enterprise eco-power models have been developed all over Europe.

An example of this is the surcharge model:  In this model, the consumer stays with his old energy supplier but donates through voluntary supplementary charges additional money to the eco-power producer. The consumer continues to pay money to the conventional energy supplier, but with the condition that this money benefits the production of eco-power (however the conditions are agreed upon).

Example transit model:  In this model, the consumer completely changes his electricity supplier.  The new electricity supplier guarantees the consumer 100% eco-power using the quantity uniformity principle (in contrast to the in sync principle).  What is meant here is that the contracted supplier guarantees that the amount used by the consumer originates from eco-power production.

Because of the fluctuation of electricity in the network, the supply of electricity from eco-power production cannot take place in sync.

This means that at peak times electricity from other power plants is fed into the network and made accessible to the consumer.  The customer of a supplier that has ordered an electricity mix from 100% hydro electric power which is fed in equal amounts actually gets a certain percentage of electricity from unknown origins at peak times.

Only an in sync feeding supplier can guarantee the customer that when he pays his electricity bill, he has supported eco-power production exclusively (if you don't take the 5 -10% transfer loss into account).  Guaranteed in sync feeding is technically complex and expensive. The level of implementation of these types of models is limited.

Electricity producer model, also called Seal of approval or Label, confirm the ecological production of a certain amount of electricity.  For example, synchronization between production and use is confirmed by the "TÜF-EEO2" label.  The EcoPowerNet project also seeks to acquire an eco-power certificate on the basis of synchronization of quantity.  Here, the amount fed in and the amount used will be guaranteed and certified by the sum of the eco-power customers that are registered in the eco-power stock exchange.

The innovation of the eco-power stock exchange is that in principle, all of the models are united and the eco-power producer is in the situation where he can contribute financially to the eco-power production plant where the surplus money from the payment of eco-electricity can be steered directly to the power plants that he has chosen.  Free choice of eco-power plants and the chance to take part in and create economic general conditions have led to the concept of the eco-power stock exchange.

In the liberalised electricity market, every customer can choose where his electricity comes from.  Right now, eco-power is more expensive than electricity from conventional suppliers.  The question is; where is the added value for the environment and/or the individual participant, when he switches to an eco-power supplier.  Apart from the fact that while the environmentally friendliest energy is saved energy, which is why most of the projects in the Intelligent Energy Program justifiably concentrate on it, there is a steadily growing demand for electricity.

The EcoPowerNet project is solely concentrated on better conditions for the investment in production of electricity from renewable energy.

The benefits for the eco-power consumer are multi-layered and individual.  With the help of discussions and surveys it has been established that the following criteria are important for making a decision in connection with eco-power:

1.    The personal freedom to make decisions concerning the configurations

2.    The active, individual part-taking in environmental configurations

3.    Image criteria

4.    Economical benefit aspects, especially provisions for the future.

There is every indication that this subject matter speaks for the implementation of the eco-power stock exchange because the electricity consumer can choose the eco-power producer he wants, promote distribution and make provisions for the future through possible participation.

Suppliers of eco-power in Germany right now are: Greenpeace Energy (about 55,000 customers) and the Electricity power plants in Schönau (with about 50,000 customers).  These enterprises want to increase the shares of renewable energy on the German electricity mix which is why they are investing in this market.  Their customers are for the most part ecologically and politically interested citizens and businesses that are willing to pay higher prices.  Other suppliers are: Strommix GmbH and Naturstrom AG.  With the exception of Greenpeace Energy the offer of eco-power products is a supplementary offer.  The businesses also invest in conventional power plants.

Greenpeace Energy guarantees the in sync feeding of eco-power.

In Austria, Ökostrom AG supplies households and business enterprises with electricity from wind, biomass and solar energy.  The Ökostrom AG supplies 100% eco-power, however, this is measured by the annual average, which means in relation to the quantity.

The Ökostrom AG invests in its own power plants, and delivers electricity to electricity concerns according to Austrian law.  This company also delivers energy to Greenpeace Energy in Germany.  The Alpen Adria Energie AG offers "natural electricity" which is also eco-power and can, in contrast to Ökostrom AG, offer eco-power in sync because of the existing small hydro electric power plants with reservoirs.

The intended dissemination of the eco-power stock exchange will unite a number of small power plants in the future that offer eco-power to the consumer.  The innovative network of the eco-power stock exchange will make the highest possible flexibility possible for the customer and guarantee the possibility of eco-power quantity feeding.

In Switzerland there is the "RegioMix" which is a product that is offered to large Swiss energy enterprises as a surcharge model.  This product guarantees a mix of 80% small hydro electric power plants, 9% bio-mass, 8% wind energy and 3% solar energy.  In addition, there is the ADEV Energy co-operative.  This is an organisation that guarantees quantity oriented eco-power for a fixed amount of money per annum.

In the year 2006, the University of Salzburg made a survey relating to this project idea.  The tendencies for development emerge from the detailed description of the eco-power market.  From this it was determined that the state steering measures (statutory feeding tariffs) led to a surge in investments and that at the very least, the imposed target investments were met, which was the reason for the amendment and reduction of the feeding tariff from eco-electricity power plants.

In order to keep investments up, new models are necessary.  An increasing emergence of regional political initiatives are being activated, which contribute to the strengthening of local supply.

The planned intention in the EcoPowerNet project supports these initiatives in the core.  The market share of eco-power is 2.5% of the entire energy consumption in Austria at the moment, with the target being 5% in the year 2010.  According to the study made, the potential for this market segment is about 20%.  Since the construction of large power plants and nuclear power plants is becoming more and more problematic on an environmentally political level, the conditions for the building of small regional production plants which for the most part can be run as eco-power plants are getting better.

The eco-power stock exchange will therefore play an important role in the administration, accounting and financing of new production plants.