Glossary
A
A3 tariff
Tariffa componente A3 – Since 1992, Italian consumers have funded the system of promotion of renewable energy sources (and "assimilated" energy sources, i.e. sources deriving from processes, like CHP) by paying the A 3 tariff, which is included in the price of electricity. The tariff paid by the consumers goes to the fund for new systems that generate renewable and assimilated energy (Conto per nuovi impianti da fonti rinnovabili ed assimilate). This fund covers the GSE's costs arising from the generation of electricity from renewable energy sources.
C
call for applications
Please see "Tendering models"
CCL
Please see "Climate Change Levy"
CertiQ
Independent body in charge of issuing certificates of origin in the Netherlands.
CHP
Please see "combined heat and power".
Clearing and Settlement Agency
The Clearing and Settlement Agency is a state-licensed body (at the moment, this office is held by OeMag), which handles the purchase and sale of electricity generated from renewable energy sources. It is thus the link between operators of renewable energy systems and supply companies.
Climate Change Levy
Climate tax established under British law. Electricity producers are subject to this tax. This tax indirectly helps promote renewable energy, as producers of electricity generated from renewable energy sources are exempt from this tax.
Cogeneration
Please see "combined heat and power"
COM
Collectivités d'outre mer – these are the French overseas collectivities, which are territories outside the French mainland that are governed by France. The COMs include French Polynesia, Saint-Pierre and Miquelon, Wallis and Futuna, Mayotte, Saint-Martin and Saint Barthélemy.
combined heat and power
Combined heat and power (CHP, also known as cogeneration) is the generation of both electricity and heat by the same power station. This method increases the efficiency of a power station considerably.
Conventional power station
A conventional power station is a thermal power station that generates electricity only.
D
distribution grid operator
Distribution grid operators operate medium- and low-voltage grids and co-ordinate their grids with other electricity grids within a designated area (region).
DOM-ROM
Départements et régions d'outre mer – French overseas départements and regions – are territories outside the French mainland which have the same status as all other French départements or regions. The DOM-ROMs include French Guiana, Guadeloupe, Martinique and Réunion.
E
Eco-balance group
According to the Austrian Green Electricity Act, the eco-balance group is constituted by all eco-electricity system operators that are subject to the obligation to purchase renewable energy.
Efficiency
The efficiency of a power system describes the relation between energy output and energy input. It is expressed in per cent.
Electricity production costs
Total costs arising from the generation of 1 kWh of electricity.
exclusive economic zone
According to Article 55 of the UN Convention on the Law of the Sea, an exclusive economic zone is an area beyond and adjacent to the territorial sea, which may extend up to 200 nautical miles from the baseline and in which the coastal state may exercise certain sovereign rights and jurisdiction.
F
Fiscal regulation mechanisms
Electricity from renewable energy sources is subject to different means of fiscal privileges. The privilege is either rewarded in a direct way though tax deductibility of investment costs for systems generating electricity from renewable energy sources or it is rewarded indirectly though the fiscal charging of conventional power and tax relief of electricity consumption from renewable sources respectively.
Fuel efficiency
As specified by Austria's Green Electricity Act, fuel efficiency is "the sum of electricity output and heat output used, divided by the energy input of the energy source used". According to this definition, system operators may also use the heat they generate to reach the degree of fuel efficiency of renewable-energy-sourced electricity systems stipulated by the Act.
G
GME
The Gestore Mercato Elettrico (GME) was established by the GSE in 2004. The GME is responsible for organising the energy exchange and the market of green certificates in Italy.
Governor
In Austria, a governor is the head of a federal state government. His function is similar to that of a Prime Minister of a German federal state.
grid operator
Operators of transmission or distribution grids that transmit or distribute electricity within a designated area and co-ordinate their services with other grids.
GSE
The Gestore dei Servizi Elettrici (GSE) is an authority subject to the Italian Ministry of Economy and Finance. It plays a major role in the promotion of renewable energy. Among other things, it issues green certificates and certificates of origin, monitors the certificate system, purchases energy and re-sells it on the electricity market.
GWh
A gigawatt hour is a unit of electrical energy. One gigawatt hour (GWh) consists of one billion watt hours or one million kilowatt hours (kWh).
H
Hybrid power station
Hybrid power stations generate energy from a combination of different renewable energy sources.
I
Implementation document
Similar to a promotion directive. In the Slovak Republic and the Czech Republic, the legal framework of an Operational Programme is laid down in a so-called implementation document, which is legally binding. The terms of such a framework are then further specified in each call for applications. However, they must be in line with the implementation document.
K
kilowatt hour
The most commonly used measure for electrical energy. One kilowatt hour (kWh) measures the electricity generated or used by a machine whose capacity is 1,000 watts per hour.
kWh
Please see "kilowatt hour"
kWp
Kilowatt peak (kWp) refers to the output of power stations under standard test conditions. The output of a photovoltaic panel is measured in Central Europe at noon on a sunny, cold winter's day.
M
maximum capacity
The highest possible continuous output of a power station under normal conditions. The maximum capacity depends on the system component that has the lowest output.
Megawatt
Megawatt is a unit of electric power. 1 megawatt (MW) = 1,000,000 watts.
MEP
The MEP premium (Milieukwaliteit Elektriciteitsproduktie) was the Dutch feed-in tariff, which was designed to subsidise renewable energy sources. It was abolished on 8 August 2006.
Metering point
An entry or exit point at which electricity is measured and which has an internationally unique identification number.
MW
Please see "Megawatt"
MWh
A megawatt hour is a unit of electrical energy. One megawatt hour (MWh) equals one million watt hours or 1,000 kWh.
N
Net-metering
Net-metering is an instrument to promote small electricity production facilities. The net-metering mechanism charges the electricity that has been fed into the grid system against the electricity that has been drawn out of the grid. This model allows for promotion of energy from renewable sources, in the case where it is cheaper to generate the electricity instead of drawing it from the grid. The amount of electricity that has been fed into the grid by the system operator will be imputed to his energy bill for the regular market price. The financial benefit consists in so far of the difference between the costs of generation of the fed-in electricity into the grid and the electricity price that has been imputed to the energy bill. The second benefit may arise for the system operator, if more electricity is fed into the grid than the amount that can be drawn from it. In such case, the facility operator obtains an allowance for the surplus.
O
offshore
In contrast to onshore wind energy, offshore wind energy is generated by wind turbines that are located at sea.
onshore
In contrast to offshore wind energy, onshore wind energy is generated by wind turbines that are stationed on land.
P
photovoltaic
Photovoltaic systems convert solar energy directly into electrical energy using a semi-conducting material. Solar energy is also used in solar-thermal power generation.
PPI
Programmation Pluriannuelle des Investissements – Investment plan of the French government specifying production capacity targets, which are graded according to primary energy source, production technology and geographic zone. The PPI was introduced by Loi n°2000-108 du 10 février 2000. The plan currently in force sets the following target capacities to be installed by 2015:
Biogas: 250 MW
Biomass: 2,000 MW
Wind energy: 17,000 MW (of which 13,000 onshore, 4,000 offshore)
Geothermal power: 200 MW
Hydro-electricity: 2,000 MW
Photovoltaic energy: 500 MW
prefect
Préfet - In France, the State's representative in a département.
Price regulation
Price regulations are promotion systems guaranteeing to the energy producer an allowance for the energy produced by him and fed into the grid. Normally, the right to compensation consists against the respective grid operator. The allowance consists either of a fixed price/ kWh (fixed feed-in tariff) or is granted in form of a bonus, which is paid in addition to the electricity price that has been realised on the market. In some cases the bonus is designed as fixed bonus, in others as variable bonus. Price regulations exist in 21 European countries.
primary energy
Primary energy is all energy derived from natural resources before conversion. This definition includes both fossil energy sources like oil, natural gas and coal and renewable energy sources like water, wind and solar energy.
Priority to electricity from renewable energy sources
Priority for electricity from renewable energy sources means that, in the case of capacity shortages, electricity from renewable sources will be granted priority access to the grid over conventionally generated power. The question of priority grid access is regulated differently in the various states in regards to the level of connection to the grid, usage of the grid and grid expansion. As long as no priority has been established, the system operator is to be treated in a non-discriminating way.
Pumped-storage system
When electricity demand is low, these power stations pump water from a lower reservoir to an upper reservoir using electrical energy. If required, the stored water is released and directed through a turbine, which is linked to a generator that creates electrical energy. These systems are mainly used to meet sudden peak demands.
Q
Quota system
The quota system (also certificate model) is a promotion system, dividing the “green electricity” into two products, on the one hand the physical power and on the other its “green” quality. The “green” quality is certified through “green certificates”, which are allocated to the electricity producer by public authorities. Both “electricity aspects” are traded separately, the electricity on the electricity-market, the certificates on the separated certificate-market. The mechanism of promotion consists of the obligation of the obligated party, normally the electricity supplier, to prove that a certain quota (defined by public authorities) of the sold electricity has been derived from renewable energy sources. The evidence is provided through presentation of “green certificates”, which were either allocated to the supplier for produced “green” power or which have been purchased at the certificate-market. In the case where the supplier has not fulfilled his obligation, a penal payment is falling due, which will normally exceed the certificate price, in order to be effective. Subsequently, the promotion of power from renewable electricity sources consists of the certificate price, which is allocated to the producer of renewable energy in addition to the price he realises on the energy market. Quota systems currently exist in Belgium, Italy, Romania, Sweden, Poland and the United Kingdom.
R
Reactive energy
Reactive energy is the energy, which is required in the case of inductive consumer loads (e.g. generators, transformers, electric motors), that is spooling of any kind, for the generation of magnetic fields. In the case of alternating and rotating currents, the magnetic field is established and relieved though the grid frequency. Reactive electricity is not transformed into active power and is consequently not usable. It librates as idle power between the consumer and the producer of electricity.
Regulatory Authority
Authority enforcing fair competition in the electricity market. Nearly all European countries established regulatory authorities in the course of the liberalisation of their electricity markets.
Reserve capacity
Electric reserve capacity (balancing energy) is all energy used to immediately balance sudden differences between the feed-ins of electricity agreed upon and real electricity consumption. This helps balancing energy generation and demand at any time.
ROCs
Renewables Obligations Certificates (ROCs) are tradable certificates used in Great Britain. They prove that a supply company has satisfied its quota according to the Renewables Obligation Order.
run-of-river
Run-of-river stations use the energy of flowing bodies of water (rivers, streams) to generate electricity.
S
Sb.
Sbírka zákonu – A collection of laws, similar to the Federal Law Gazette in Austria and Germany. In the Czech Republic, the abbreviation "Sb." is indicated at the end of each law (e.g. Act Nr. 180/2005 Sb.). English translations also refer to "Coll.", i.e. Collection of law.
schedule
English term for an annex to a law (e.g. in Great Britain, Ireland, Malta).
section
Laws are divided into sections. A "section" is the English equivalent of the German and Austrian "Paragraph" and the French equivalent of the German and Austrian "Abschnitt".
solar-thermal electricity generation
Solar-thermal energy systems convert solar radiation in heat, which is then converted into electricity by a turbine and a generator. In Europe, this technology is only used in southern European countries like Spain, Portugal, Italy, and Greece, where solar radiation is especially high. Solar energy is also used in photovoltaic electricity generation.
subsection
A paragraph in a law.
T
Tendering models
Electricity from renewable energy sources is promoted through different means of tendering. In the case of a tendering model, generation-capacities are tendered for by electricity suppliers or the state. The winners of the tender have consent to a contractual acceptance and compensation. In such case, the tendering procedure is an instrument to implement a price- or quota regulation. It is furthermore used for the allocation of subsidies and loans. Currently, it is used in Ireland only as main instrument of promotion. Latvia and France allocate special tariffs through tendering procedures for the feed-in of electricity from certain technologies.
Tidal energy
Tidal power stations use the differences between rising and falling tides to generate electricity.
transfer price
In pursuance to the Austrian Green Electricity Act, the transfer price is annually set by a regulation. Electricity supply companies have to purchase the quota of electricity the Clearing and Settlement Agency has assigned to them for this price. The transfer price is higher than the market price. However, it is lower than the feed-in tariff paid to the producers. The difference in prices is passed on to the consumers, who are charged a support fee.
transmission grid operator
Transmission grid operators operate supra-regional high-voltage grids and co-ordinate their grids with those of the distribution grid operators. In many European countries there is only one transmission grid operator. However, in Germany, Austria and Great Britain 3 to 4 companies provide transmission services.
V
voltage levels
Power grids are graded according to the level of voltage. In Austria, there are 7 different voltage levels, which are connected to different kinds of power stations and end users.
Level 1: Extra-high voltage (e.g. large-scale power plants)
Level 2: Transformation level
Level 3: High voltage (e.g. industrial enterprises)
Level 4: Transformation level
Level 5: Medium voltage (e.g. wind power stations)
Level 6: Transformation level
Level 7: Low voltage (e.g. photovoltaic systems, private households)
W
Watt
Watt is the unit of power. The conversion of electrical energy within a certain period of time is measured in watts.
wave energy
Wave power stations convert the energy of sea waves into electricity.
Z
Z.z.
Zbierka zákonov – A collection of laws, similar to the Federal Law Gazette in Austria and Germany. In the Slovak Republic, the abbreviation "Z.z." is indicated at the end of each law (e.g. Act Nr. 609/2007 Z.z).
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