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Mediterranean RES


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Regulatory foundations for a Mediterranean RES exchange platform

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Mediterranean RES

  1. 1. Florence School of Regulation Regulatory foundations for a Mediterranean RES exchange platform Jean-Michel Glachant Director Florence School of Regulation & Professor “Loyola de Palacio EU Energy Chair” MEDGRID GA, Paris 15 March 2012 1
  2. 2. Why do „Regulation Working Group“ meets today… and tomorrow?*To discuss a regulatory platform……for growing RES exchange between North and South Mediterranean shores*North Shore starting point:EU internal market under construction since 20 years BUT near to achievement(2014) >> more demanding common market and grid rules*South Shore:no similar internal market move BUT growing appetite for RES “gold mine”*How to ++ exchange between so different universes? Look for platform?? 2
  3. 3. North: the EU internal market basicsEntry in generation and access to gridsSince 1996: all generators (old or new) can access all regulated grids in all EUInterconnection usage and connection of marketsLater on:*Interconnections allocated only with market based methods*Revenues of interconnection auctions ‘parked’ for regulated purposes* ’Implicit’ auctioning of interconnection as prefered method (‘Market Coupling’) 3
  4. 4. North: the EU RES basicsRES generation is subsidized in any countryTrough national schemes (generally feed-in tariffs)RES have priority everywhere in any countryAs*Dispatch (= pushed into the system and into the consumers’ mouth)*Access to the grids (connection; congestion)*Indirectly: access to interconnections (preceed voluntary exchange through ‘Market Coupling’) 4
  5. 5. South: the internal marketS basicsEntry in generation and access to grids*How IPPs invest & connect [when not generating PPA with state monopoly]*How IPPs generate and inject [when not generating PPA with state monopoly]*Congestion management, balancing rules, losses, tariffs, maintenance: access totransformers and stations,Interconnection usage and connection of markets*How interconnections allocated to IPPS [when not generating in PPA with state monopoly] Import export monopoly? Third Party access?*Congestion, balancing, losses, tariffs, - nominations, measurement etc. 5
  6. 6. South: the RESs basicsRES generation for export?Facility, revenues and export taxes; grid tariff, connection tariffs; metering, lossesand balancing rules and costsRES any priority anywhere?*Access to the grids: connection to existing; extension of grids*Dispatch, grid congestion*Interconnection allocation and ruling*RES generated in country / RES in transit 6
  7. 7. 3 working axes: North / South basicsW1- North own Upstream (inside EU)*Access to interconnection for “transit RES” – priority? – tariff?*Nomination and measurement rules for ‘transit RES’ balancing – settlement?W1- North own Downstream (inside EU)*’RES nature’ certification requirements*Measurement of RES volume being RES for the ‘downstream’ support scheme* Adaptation of the ‘downstream’ RES support scheme to the particular cost profile of these ‘upstream’ RES generation 7
  8. 8. 3 working axes: North / South (Cted)W2- South own Upstream (on the South shore)*Entry conditions for green IPP ** Green facility certification*Measurement of greeen generation output and green injections into the gridW2- South own Downstream (on the South shore)*Access to grids (connection conditions – tariffs)*Congestion management, dispatch prioirty, balancing rules* Access to interconnections (priority – green transit certification – tariff and taxes) 8
  9. 9. 3 working axes: North / South (End)W3- North to South and vice versa: new interconnection development*Framing a new interco: intergovernmental framing; legal and regulatoryagreement and licensing, va-et-vient Member State – European Commission*Planing a new interco: TSOs development plans; planning approval; financing;cost sharing; EU Infrastructure Package: PCIs; EU 3d Package: TYNDP*Connection rules; grid extension rules and costs (shallow costs; deep costs)W3- North to South and vice versa: new interconnection usage* Relations with ‘local grids’: capacity calculation and allocation; ‘Swedish’ risk?* EU regulation or exemption? Capacity allocation and congestion revenue. Merchant line vs Hybrid frame 9