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![Page 1: Chryssa Argyriou Directorate B – Security of supply, Energy markets & Networks Unit B2 Electricity and Gas Sofia, Energy Day, 18 June 2010 Energy Infrastructure.](https://reader036.fdocuments.net/reader036/viewer/2022082818/56649f0e5503460f94c22af1/html5/thumbnails/1.jpg)
Chryssa ArgyriouDirectorate B – Security of supply, Energy markets & NetworksUnit B2 Electricity and GasSofia, Energy Day, 18 June 2010
Energy Infrastructure Package
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2Infrastructures for climate, internal market and energy security
Challenges – demand drivers
. EU energy and climate policy heavily impacts the electricity sector:
» Massive fuel / technology shift, both for production and transmission
» Paradigm shift: baseload to intermittent, on- to offshore, close-to-consumer to close-to-ressource
» Possible import of « green electricity » from third countries
» Development of CCS?
. Security of supply, especially in the gas and oil sector:
» High import dependence (especially in Eastern EU with high single-source dependence)
» Lack of interconnections or reverse flows, mostly in Eastern Europe
» Insufficient interconnection level of national networks
» Possible knock-on effects from the development of RES
» Oil: land-locked countries in Eastern EU
. Massive investment is needed in the coming years. Not all of it will be taken up by the market alone.
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3Infrastructures for climate, internal market and energy security
Issues in energy infrastructure development
. General context:
» Uncertainty about future gas demand
» Soaring development, but also risk premium for new/renewable technologies
» Clear need for more energy infrastructure, but local opposition and ever longer permitting procedures
» Recent financial crisis
. Incentive and cross-border issues:
» « Chicken and egg » dilemma: market vs. infrastructure development
» EU interest vs. national interest
» Regulatory differences, notably concerning rates of return for investment
» Lack of political coordination between Member States
» Cost allocation difficulties for projects of EU-wide interest
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4Infrastructures for climate, internal market and energy security
TEN-E Implementation Report 2007-2009Projects of European Interest – Progress in Implementation
. Most of the projects have progressed significantly and moved to the next implementation phase
. 32 electricity projects of European interest» Finalised: 5 completely; 3 partly» Under construction: 4 completely;
5 partly
. 10 gas projects of European interest» 10 projects of European interest
in total» Finalised: 2 completely; 2 partly» Under construction: 1 completely;
2 partly
Projects of European interest - Electricity sector - Progress in implementation
13%
13%
3%
6%
16%
49%
Authorisation / Constructionphase
Construction phase
Construction phase / Finalised
Authorisation phase / Finalised
Finalised
Pre-Study / Study /Authorisation phase
Projects of European interest - Gas sector - Progress in implementation
20%
10%
10%
10%
50%
Finalised
Authorisation / Constructionphase / Finalised
Construction phase
Finalised / Authorisation phase
Pre-Study / Study /Authorisation phase
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5Infrastructures for climate, internal market and energy security
TEN-E Implementation Report 2007-2009Lessons learnt
. TEN-E contributed to the integration of Europe’s fragmented energy market.
. However, little impact in dealing with recent challenges, such as diversification of supply sources and security of supply or delivering EU’s strategic energy and climate goals, was achieved.
. Budget is limited and financial instruments are inadequate. They are not sufficiently co-ordinated with other EU funds (regional, neighbourhood).
. There is no flexibility to include new/innovative projects and technologies.
. And no solution to overcome local opposition…
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6Infrastructures for climate, internal market and energy security
Energy Infrastructure Package - content
November 2010
. Political communication on energy infrastructure development and priorities for 2020/2030
. Document on the six priority infrastructure actions proposed under the Second Strategic Energy Review
. Accompanied by the Impact Assessment Report
To be followed-up by mid-2011 by a legislative proposal for an EU Energy Security and Infrastructure Instrument
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7Infrastructures for climate, internal market and energy security
Outlook: Issues for a new European Energy Security and Infrastructure Instrument
. Include oil and CO2 transport infrastructure?
. Allow for innovative projects and technologies
. Planning, permitting and public acceptance
. Leveraging existing funds (regional and neighbourhood policies)
. Co-operation with European Network of Transmission System
Operators (10-Year Network Development Plans), ERGEG/ACER
. EU financial support:
» Which balance between user pays (tariffs) and tax payer
pays (public funds) principles?
» Which form (guarantees, equity, grants)?
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8Infrastructures for climate, internal market and energy security
Thank you for your attention!