Co-operation Mechanisms of the new RES DirectiveOf The New Res Directive_2010-09-01

Co-operation Mechanisms of the pnew RES DirectiveF t Bi C fForest Bioenergy Conference

1 September 2010Juha RuokonenJuha [email protected]

Articles 6-11

RES COOP-MEXArticles 6 11

Flexible Mechanisms: Article 6 STATISTICAL TRANSFER

Required by the Directive

EU

NotificationNotification

q y

Other interaction

Seller countryBuyer country

Agreement

Compensation

• Member States agree by themselvesMember States agree by themselves

• Commission must be notified on all transfers and it makes the adjustments in the statisticsthe adjustments in the statistics

3(c) GreenStream Network Plc1.9.2010 JR

Flexible Mechanisms: Article 7JOINT PROJECTS

EU

Sellercountry

Notification:

FrameworkAgreement

Frameworkand

Buyer Project

‐ Information aboutinstallation

‐Volume sold‐Buyer country

Agreement

and reporting

• Electricity and/or heating & cooling projects

country

Compensation

ownery y

‐Delivery period (years)

y g g p j• The co-operation may involve private operators• Yearly reporting between the countries and to the Commission• The project that are operational after 25 June 2009• Commission must be notified on all transfers and it makes the

adjustments in the statisticsadjustments in the statistics


Flexible Mechanisms: Article 9JOINT PROJECTS BETWEEN MEMBER COUNTRIES AND THIRD COUNTRIES

EUSellera) Information about the

installationcountryNotificationb) Volume bought and

financial informationc) Delivery period (years)d) Aknowledgement from

h S ll f b)

Frameworkand reporting

Buyercountry

CompensationProject owner

the Seller country for b) and c)

Agreement

• The electricity produced within the project must be consumed in the Community area.Th j t th t ti l ft 25 J 2009• The project that are operational after 25 June 2009

• The third country cannot have a support scheme (other than investment aid) for the production. ) p


Flexible Mechanisms: Article 11JOINT SUPPORT SCHEMES

EUSellerFramework EUSellercountry

B

Notification:Agreement

- Information aboutinstallation

FrameworkdBuyer

country

Compensation Project

installation- Volume sold- Buyer country- Delivery period

Agreement and reporting

• Requires a statistical transfer of specified amounts of energy from

Compensationowner (years)

renewable sources from one Member State to another Member State

oror• the countries must set up a distribution rule that allocates amounts

of energy from renewable sources between the participating M b St tMember States.


WHY? - RESULTS FROMSCENARIOS

Long-run marginal costs of RES-Eg g

300

EUR per MWh Denmark Finland Norway Sweden

250

150

200

100

0

50

00 20 40 60 80 100 120 140

TWh per yearFor source see: Analysis of the flexible support mechanisms in the Directive on the

ti f th f f bl 2010

1.9.2010 JR 8(c) GreenStream Network Plc

promotion of the use of energy from renewable sources, 2010

National measures onlyy70TWh

50

60

30

40

10

20

Denmark Finland Norway Sweden TOTALR&D 0.60 0.03 0.00 0.00 0.63

0

Bio 5.66 4.94 0.09 2.15 12.84Hydro 0.00 1.33 7.34 2.48 11.15Wind 12.14 6.10 2.57 17.37 38.19


20% flexibility (80% with national mesures)y ( )

70TWh

50

60Cost savings: 1,300 million EUR/a

30

40

10

20

Denmark Finland Norway Sweden TOTALR&D 0.10 0.00 0.00 0.00 0.10Bio 2 48 3 53 0 12 2 31 8 43

0

-1.41-3.18Bio 2.48 3.53 0.12 2.31 8.43Hydro 0.00 0.63 9.50 2.46 12.59Wind 12.14 5.76 6.95 16.82 41.67

1.413.18

+2.16

+4.38


IMPLEMENTATION OPTIONS

Example: Framework for Joint Projects


Political Framework Agreement for Joint projects

Statistical authority Statistical authority

Authority managing the seller

Statistical authority

Authority managing the buyer


Authority managing the seller country’s RES balance

Authority managing the buyer country’s RES balance

Operational mandate Permits, agreement

and reportingRES purchase

programme managed by an authority or a

private entityRES Project development in

and reporting

Agreement and compensation on

or

Private entity with a

RES Project development in co-operation with the buyer

compensation on RES purchase

RES obligation

1.9.2010 JR 12(c) GreenStream Network Plc 12(c) GreenStream Network Plc

Example: Advanced Framework for Joint Projects


Political Framework Agreement for Joint projects

Statistical authority Statistical authority

Authority managing the seller


Authority managing the buyer


Authority managing the seller country’s RES balance

Authority managing the buyer country’s RES balance

Operational mandate

Operational mandate

RES purchase programme managed

by an authority or a private entity

RES selling programmemanaged by an authority or a private

Project

Contracts

CompensationTenderingfor the sell of €/MWh

Project

or

Private entity with a

or a private entity

of €/MWh Project

RES obligation


PLANS TO USE COOP-MEX

MS plans to use Coop-Mexp p• Forecast documents by Dec 2009:

• Surplus: 10 countries• Plans to use Coop-Mex with 3rd countries:

• France, Greece, Italy and Spain• Deficit: 5 countries• Total EU: 20.03% in 2020

• Joint Support Scheme:• Swedish-Norwegian Green Certificate

Scheme

2020 target - Forecast (percentage points)Surplus: 5 5 Mtoe Deficit: 2.0 Mtoe

2 %

3 %

Coop-Mex?

Surplus: 5.5 Mtoe

1 %

0 %

1 %

ria

ain

ce

en

ep

ny

nd

nia

nia

ria

us

ep

nd

ce

ary

nd

via

erl

gal

nia

nia

UK

m

alta

ur

aly

ark

3 %

-2 %

-1 %

Bul

gar

Spa

Gre

ec

Sw

ede

Slov

ak r

e

Ger

man

Pol

an

Lith

uan

Est

on

Aus

tr

Cyp

ru

Cze

ch R

e

Finl

an

Fran

c

Hun

ga

Irel

an

Latv

Net

he

Por

tug

Rom

an

Slo

ven U

Bel

giu Ma

Luxe

mb Ita

Denm

a

-3 %

1.9.2010 JR 15(c) GreenStream Network PlcSource: EC, 2010

WRAP UP – IS THERE GOINGTO BE COOP-MEX MARKET?

Known unknownsThere are known knowns. These are things we knowThese are things we know that we know. There are known unknowns. That is to say, there are things that we know we don't know. But th l kthere are also unknown unknowns. There are things we don't know we don't knowwe don t know we don t know

- Donald Rumsfeld 2002 -Donald Rumsfeld, 2002


Conclusions• Countries are still assessing ways and concrete means

to reach targetsto reach targets• Coop-Mex, do provide flexibility for both buyers and

sellerssellers• Structure and framework should be kept simple!

• Will there be a RES Coop-Mex market?

YesYes• Project driven• Government initiativesGovernment initiatives• Long framework development


GreenStream’s BusinessesCore competence Services offered

• Fund management (carbon and renewable

Green Investment

energy); current investment vehicles include- Multilateral Carbon Credit Fund (EBRD and EIB)- Fine Carbon Fund and Post-2012 FCF- Nordic Carbon FundNordic Carbon Fund- Climate Opportunity Fund- Small-scale hydro fund Blåfall

• Own direct investments

• Brokerage of carbon credits and green certificates

• Portfolio management servicesGreen Certificates, Broker of the Year

Intermediary• Portfolio management services2004, 2005, 2006,

2007, 2008, 2009

• Climate and renewable energy strategies, market analysis financing solutionsAd i market analysis, financing solutions

• CDM/JI/GIS project sourcing and developmentAdvisory


Co-operation Mechanisms of the new RES DirectiveOf The New Res Directive_2010-09-01

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