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Security of Gas Supply in the Energy Community


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Janez Kopac presents at the Vienna Forum on European Energy Law, 2013

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Security of Gas Supply in the Energy Community

  1. 1. 1 Security of gas Supply in the Energy Community Vienna Forum on European Energy Law, 8 March 2013 Janez Kopač, Director Energy Community Secretariat
  2. 2. 2 Energy Community Status: February 2013
  3. 3. 3 Security of gas supply acquis - Legal framework Energy Community Treaty (Security of supply Statements, safeguard measures, mutual assistance in the event of disruption) Directive 2003/55 (Monitoring security of supply, Reporting obligations) Directive 2004/67 (Polices for securing gas supply; security of supply for specific customers; security of supply standards; national emergency measures) Preparatory work to implement some elements of Regulation (EU) 994/2010 started The relevant acquis implemented in the Contracting Parties to a satisfactory level Shortcomings: definitions of supply standards and major supply disruption; reporting obligations elements (ECS: Implementation Report 2011-2012)
  4. 4. 4 Long term security of supply – gas case Gas is expected to have an increased role for meeting growing electricity demand in long term: In the SEE 2030 – 21 bcm demand – 3 times higher than today → new supply sources/routes needed in TPES in TFC For electricity and heat Albania 0,58 0,05 0,00 Bosnia and Herzegovina 3,11 4,41 0,39 Croatia 30,84 24,57 31,89 Former Yugoslav Republic of Macedonia 3,32 1,65 1,11 Kosovo* 0,00 0,00 0,00 Moldova 58,66 23,46 96,08 Montenegro 0,00 0,00 0,00 Serbia 11,87 11,97 7,48 Ukraine 42,32 38,48 25,77 EU-27 25,74 22,96 20,45 2010 Natural gas share (%) Natural gas use in the Contracting Parties (source: Security of gas supply draft final report, ECS)
  5. 5. 5 Institutional framework EU level: the Secretariat is a full member of the Gas Coordination Group Energy Community: The Security of Supply Coordination Group envisaged as a platform for coordination of security of supply measures taken at national level and at a regional level - gas and electricity ECS – a link between the two Groups A revival - October, 2012 Members: Contracting Parties, Participants, Observers, Eurogas, ENTSOG, ENTSO-E, Eurelectric, EFET, IEA, NALAS, ACER, ECRB, Donor‘s Community Gas Sub-Group established (February 2013) Tasks - EnC Emergency Contact Points List; Emergency Questionnaire; Security of Supply Statements Guidelines; Introduction of risk assesment elements (from Regulation 994/2010) Finalization of secuirty of gas supply Study
  6. 6. 6 Priority corridors: gas, oil, CO2 transport North-South interconnections Western EU BEMIP North-South interconnections CEE & oil Southern gas corridor +carbondioxidetransportinfrastructure
  7. 7. 7 ENTSOs (G/E) Project promoters NRAs (G/E) Regional Groups ACER (G/E) European Commission • Prepare TYNDPs for gas and electricity • Submit projects • Criteria • Cost Benefit Analyse • Check application of criteria • Cross-border relevance • Evaluate projects • Rank • Adopt regional lists • Adopt Union- wide list of projects of common interest (no ranking) • Opinion • Cross-regional consistency Process General criteria Priority corridor implementation Economic viability Crosses border or has cross-border impact Specific criteria Market integration, Security of supply, Sustainability + urgency, number of Member States, complementarity and territorial cohesion
  8. 8. 8 Preparing for first PCI list in 2013 Submission of project proposals through Groups (TYNDP) or public request for information 422 projects submitted (E: 268, G: 144) 26 withdrawn Check if within scope, fulfils general criteria Ranking based on CBA, urgency etc. Based on preliminary analysis E: 148 eligible G: assessment on-going ~150 projects of common interest (E: 100, G: 50)
  9. 9. 9 Overview of PECI candidates submitted A total of 75 project proposals was submitted by Project Promoters from the Western Balkans
  10. 10. 10
  11. 11. 11 Permit granting – Regime of common interest • Priority status for PCIs (Projects of Common Interest) – Most rapid (preferential) treatment in Member States – considered as being of public interest – Streamlining of procedures • Competent Authority to manage permit granting process • 3 and a half years time limit for the permit granting decision
  12. 12. 12 The Gas Ring Feasibilty studies (FS) funded by EU Energy Community Gas Ring demonstrates the importance of the Energy Community It requires coordinated action among multiple CPs and cannot be developed in isolation. Existing pipelines Studies ongoing Potential projects - not cooridinated yet
  13. 13. 13 Regulatory framework - measures • Energy system-wide cost-benefit analysis – Proposal by ENTSOs, ACER opinion, Commission approval • Enabling investments with cross-border impact: – Cross-border cost allocation – National Regulatory Agencies’ joint decision on investments and cost allocation – ACER decision if no agreement • Long-term incentives for investment: – Obligation on NRAs to grant appropriate risk-related incentives – ACER guidance on best practices of NRAs and methodology
  14. 14. 14 Permit granting – Regime of common interest • Streamlining of environmental assessment procedures (EC’s guidance, reporting to EC, legislative changes in 2 years) • Increased transparency and enhanced public participation • Project promotors shall draw up an implementation plan, including timetable, approved by NRA • Annual report by 31 March each year to competent authority • In case of implementation difficulties EC may designate in agreement with the MS a European coordinator for a period of up to one year renewable twice
  15. 15. 15 Financing – Connecting Europe Facility 2014-2020 • Eligibility criteria (in guidelines): – Grants for studies and financial instruments – available to all PCIs – In exceptional cases, grants for works for PCIs where: - CBA shows positive externalities - Commercially not viable - Cost-allocation decision done BUT NOT FOR EXEMPTIONS!!!
  16. 16. 16 Adaptation of the Regulation in Energy Community – draft proposal EU Energy Community • 12 corridors maximum North-South and East-West • selection process based on regional maximum 2 regional groups (electricity, gas expert groups + advisory role of ACER and oil) + advisory role of ECS •covers also CO2 transport projects this is not included in the regional Energy Strategy •Regulation aims at replacing the existing No one mechanism existed TEN-E Guidelines and forms a logical Package with the “Connecting Europe Facility” (CEF) developed in view of replacing the current TEN financing Reg. •certain role of ENTSO E and ENTSO G what institution is going to take their role with respect of market and network modeling • certain roles to ACER and EC what institution is going to take their role
  17. 17. 17 Adaptation of the Regulation in Energy Community – draft proposal • Regulation is based also on additional Aquis : EnC adaptation: to be discussed how to relate e.g. the Water framework Directive, the Habitats to these in the adapted MC Decision Directive, and some Conventions (ESPOO, Arhus, etc) to which EnC is not party or is not obliged to implement.
  18. 18. 18 Thank you for your attention