Transcript European Islands Network on Energy & Environment

Improving Network Access in
Europe’s Periphery
Panos Coroyannakis
CPMR Energy Working Group
“Energy for the Periphery”
Pamplona
5-6 October 2006
Some of our partners
Access to the network
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The European Dimension
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Trans European Networks
The National/regional Dimension
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EU legislation
National framework
The role of TSO
The role of the regulator
Trans European Networks-TEN
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Serving European Energy Markets
Connecting Renewable Energy Sources
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EU needs renewables to meet its Kyoto
obligations. But RES are found in remote
areas and need to be connected to the grid
not only at national, but at EU level.
Reinforcing Security of Supply
Integrating the new member states
TEN conditions
(1) Transnational
(2) Strengthen European grid(s)
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Improve available transfer capacity
Improve network stability
Improve competition
(3) Best value for money
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Finite amount of € available
Priority list
TEN Transmission priorities in NW
TEN Transmission priorities in SW
TEN Transmission priorities in SE
Financing TEN
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2007-2013
~ €28 billion needed for gas & electricity
infrastructure projects
~ 2/3 of it within EU
EU support from TEN budget: small
1996-2001: 123 million € for 53 projects
~25 million € annual TEN-energy budget
~2 million € average TEN support, mostly for
feasibility studies
Other sources of financing TEN
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Structural funds:
1996-2001: 2 billion € for GR, P, Es, Ir
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EIB: 1996-2001 3 billion € in loans
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The rest has to come from transmission
tariffs
Networks & Access: EU legislation
EXISTING
 Electricity Directive 96/92/EC
 Electricity Directive 2003/54/EC
 The Florence Process
PROPOSED
 Directive on Security of Electricity
Supply and Infrastructure Investment
Directive 2003/54/EC
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Preamble para(22) ……… Member States should have
the possibility, in the interests of environmental
protection and the promotion of infant new
technologies, of tendering for new capacity on the
basis of published criteria. New capacity includes
renewables and combined heat and power (CHP).
Directive 2003/54/EC
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Art. 3 (7). Member States shall implement appropriate
measures to achieve the objectives of social and
economic cohesion, environmental protection, ……….
Such measures may include, in particular, the provision
of adequate economic incentives, using, where
appropriate, all existing national and Community tools,
for the maintenance and construction of the necessary
network infrastructure, including interconnection
capacity.
EU priorities in RES & RUE
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From 6% to 12% of total energy mix by 2010
21% of RES in electricity generation by 2010
1% annual improvement in EE to 2015
Kyoto Protocol commitments
Buildings directive
Biofuels directive etc.
National framework
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Generation investment
(investors)
Infrastructure investment (TSO)
Transmission tariff (regulator)
Siting permit(s) – EIAs
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for generation
for transmission
The transmission issue
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EC advocates a stronger “interventionist”
approach in dealing with transmission
infrastructure investments
Sea route or land route, major challenges:
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Environmental
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Financial/investment
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Tariff/regulatory
The role of TSO
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Transmission system planning
Investments in transmission infrastructure as
part of their Regulated Asset Base (RAB)
approved by the regulator
Transmission system operation
Transmission tariffs approved by the
regulator
The role of the regulator
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Approves and encourages transmission
investments as part of RAB
Influences transmission tariffs philosophy
and approves methodology & T-tariffs
Approves feed-in tariffs for RES
Plays a major role in bringing RES to major
electricity markets
Environmental considerations
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Short term
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Habitat Directive – Natura & other designations
Birds Directive – preservation of species
Long term
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Global warming/climate change
Permanent damage?
Conflicts - Balances
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European vs National priority
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Global vs local impact
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Habitat vs climate change
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Dominant position of TSO
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The role of regulator is instrumental
In Summary
TEN support limited
 EU framework favourable
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(a necessary but not a sufficient condition)
National/regional TSO dominant
 Role of regulator instrumental
 Conflicting environmental objectives
(short versus long term) a serious
obstacle
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