Co-operation possibilities for the Nordic countries within the frameworks provided by the RES...

Co-operation possibilities for the Nordic countries within the frameworks provided by the RES DirectiveNordic Energy Cooperation Conference

2-3 December 2010

Juha Ruokonen

[email protected]

BACKGROUND:COOPERATION MECHANISMS

3(c) GreenStream Network Plc

RES Coop-Mex• The RES Directive includes four cooperation

mechanisms:

3.12.2010 JR

”Product” Projects

Statistical Transfer RES production in national statistics for one or several years

No underlying projects

Joint Projects RES production of a specific project

RES projects: electricity, heating or cooling

Joint Projects with third countries

RES-E, transmitted to the EU

RES based electricity

Joint Support schemes

Common or linked support schemes. National RES balances are adjusted with Statistical Transfer

No underlying projects


Flexible Mechanisms: Article 6 STATISTICAL TRANSFER

EU

Seller countryBuyer country

NotificationNotification

Agreement

Compensation

• Member States agree by them selves

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

3.12.2010 JR


Flexible Mechanisms: Article 7JOINT PROJECTS

• Electricity and/or heating & cooling projects •The co-operation may involve private operators• Yearly reporting between the countries and to the Commission• The project can be operational only after the entry into force of the

RES Directive• Again Commission must be notified on all transfers and it makes the

adjustments in the statistics

EU

Sellercountry

Buyercountry

Notification:

FrameworkAgreement

Compensation

Project owner

- Information aboutinstallation

- Volume sold- Buyer country- Delivery period (years)

Agreement

Frameworkand reporting

3.12.2010 JR


Flexible Mechanisms: Article 9

JOINT PROJECTS BETWEEN MEMBER COUNTRIES AND THIRD COUNTRIES

TERMS:• The electricity produced within the project must be consumed in

the Community area.• The project was operational only after the entry into force of the

RES Directive• The third country cannot have a support scheme (other than

investment aid) for the production. 3.12.2010 JR

Notification

Compensation

a) Informationabout the installation

b) Volumeboughtand financialinformation

c) Deliveryperiod(years)d) Aknowledgementfrom

the Seller country for b) and c) Agreement


EU

Buyer country

Hostcountry

Projectowner

Notification

Framework agreement


Flexible Mechanisms: Article 11JOINT SUPPORT SCHEMES

• Requires a statistical transfer of specified amounts of energy from renewable sources from one Member State to another Member State

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

of energy from renewable sources between the participating Member States.

EUSellercountry

Buyercountry

Notification:

FrameworkAgreement

Compensation Project owner

- Information aboutinstallation- Volume sold- Buyer country- Delivery period(years)

Agreement


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USE OF COOPMEX

9

NREAP and targets

3.12.2010 JR (c) GreenStream Network Plc


MS plans to use CoopMex 1/2• Forecast documents by Dec 2009:

• Surplus: 9 countries• Deficit: 5 countries• Total EU: 20.03% in 2020

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-5 %

-4 %

-3 %

-2 %

-1 %

0 %

1 %

2 %

3 %

4 %

Bu

lgar

ia

Sp

ain

Gre

ece

Sw

eden

Slo

vak

rep

Ger

man

y

Po

lan

d

Lit

hu

ania

Au

stri

a

Cyp

rus

Cze

ch R

ep

Fin

lan

d

Fra

nce

Hu

ng

ary

Irel

and

Lat

via

Net

her

l

Po

rtu

gal

Ro

man

ia

Slo

ven

ia

UK

Bel

giu

m

Mal

ta

Lu

xem

bu

r

Ital

y

Den

mar

k

Est

on

ia

2020 target - Forecast (percentage points)

Coop-Mex?


MS plans to use CoopMex 2/2• National action plans NREAPs by June 2010

• Buying interest: Italy and Luxembourg• Selling interest: Ireland, Belgium, Denmark, Greece

3.12.2010 JR

AT CY CZ DE ES FI FR LT MT NL PT RO SE SI UK IT LU IE BG DK EL0

1000

2000

3000

4000

5000

6000

7000

8000

9000

10000

CoopMex in the NREAPs

Transfer of RES from other Member States and 3rd countries

Transfer of RES to other Member States

Mto

e

Demand: 122 617

Supply: 181 61

Soure: ECN NREAP database

COOPERATION IN THE NORDIC COUNTRIS? - RESULTS FROM SCENARIOS


Long-run marginal costs of RES-E

3.12.2010 JR

0

50

100

150

200

250

300

0 20 40 60 80 100 120 140

EUR per MWh

TWh per year

Denmark Finland Norway Sweden

For source see: Analysis of the flexible support mechanisms in the Directive on the promotion of the use of energy from renewable sources, 2010


National measures only

3.12.2010 JR

Denmark Finland Norway Sweden TOTAL

R&D 0.60 0.03 0.00 0.00 0.63

Bio 5.66 4.94 0.09 2.15 12.84

Hydro 0.00 1.33 7.34 2.48 11.15

Wind 12.14 6.10 2.57 17.37 38.19

0

10

20

30

40

50

60

70TWh


20% flexibility (80% with national mesures)

3.12.2010 JR

Denmark Finland Norway Sweden TOTAL

R&D 0.10 0.00 0.00 0.00 0.10

Bio 2.48 3.53 0.12 2.31 8.43

Hydro 0.00 0.63 9.50 2.46 12.59

Wind 12.14 5.76 6.95 16.82 41.67

0

10

20

30

40

50

60

70TWh

Cost savings: 1,300 million EUR/a

-1.41-3.18

+2.16

+4.38

IMPLEMENTATION OPTIONS -POSSIBILITIES FOR THE NORDIC COOPERATION


The possibilities for Nordic co-operation

3.12.2010 JR 17(c) GreenStream Network Plc

Joint support schemes

Statistical transfer

Joint projects between Member

States and between 3rd countries

No co-operation Full co-operation

Sweden-Norday

3.12.2010 JR 18(c) GreenStream Network Plc 18(c) GreenStream Network Plc


Political Framework Agreement for Joint projects

RES purchase programme

managed by an authority or a private

entity

or

Private entity with a RES obligation

Authority managing the seller country’s RES balance

Statistical authority

Authority managing the buyer country’s RES balance


RES Project development in co-operation with the buyer

Ad hoc framework for Nordic co-operation

Operational mandate Permits, agreement

and reporting

Agreement and compensation on RES purchase

3.12.2010 JR 19(c) GreenStream Network Plc


Political Framework Agreement for Joint projects

RES purchase programme

managed by an authority or a private

entity

or

Private entity with a RES obligation

Authority managing the seller country’s RES balance


Authority managing the buyer country’s RES balance


Operational mandate

RES selling programme managed by an authority or a private

entity

Project

Contract

CompensationTendering

for the sell of €/MWh

Advanced framework for Nordic co-operation

Project

Project

Operational mandate

WRAP UP

21

Conclusions• The CoopMex provide opportunities buyers, sellers and

project developers• Currently Member States are busy with implementation

of national RES policies• Some countries are already keen on using CoopMex –

interest likely to increase towards 2020• First progress reports 31 December 2011• Plenty of work to do before transactions can take place!

• Framework, contracts etc.

(c) GreenStream Network Plc3.12.2010 JR

223.12.2010 JR (c) GreenStream Network Plc

Co-operation possibilities for the Nordic countries within the frameworks provided by the RES...

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