New UNECE Roundtable Facilitating Investment in the Electricity … · 2008. 11. 12. · 19/11/2003...

19/11/2003 UNECE Roundtable 1

Mr. Peter Houzer, Working Table II Expert on EnergyMr. Peter Houzer, Working Table II Expert on Energy–– Economic Reconstruction, Development and Cooperation Economic Reconstruction, Development and Cooperation --

South Eastern Europe Regional Electricity Market and South Eastern Europe Regional Electricity Market and thethe Role of International DonorsRole of International Donors

“Creating a positive Investment Climate for the South “Creating a positive Investment Climate for the South Eastern Europe Regional Energy Market” Eastern Europe Regional Energy Market”

UNECE RoundtableUNECE Roundtable ““Facilitating Investment in theFacilitating Investment in theElectricityElectricity Sector in theSector in the TransitionTransition EconomiesEconomies ””


. Adopted on 10 June 1999 in Cologne. Adopted on 10 June 1999 in Cologne

. Provides framework for co. Provides framework for co--ordination of over ordination of over 40 countries and 40 countries and organisationsorganisations. Political instrument for long. Political instrument for long--term conflict term conflict preventionprevention

. Aims to strengthen peace, democracy and . Aims to strengthen peace, democracy and economic prosperity in South Eastern economic prosperity in South Eastern

Europe (SEE)Europe (SEE)


Stability Pact Organigramme, Partners and Core Objectives

Six Core ObjectivesMedia

Local Democracy & Cross-Border Cooperation

InterregionalTrade &

Investment CompactRegional

Infrastructure / Energy

Organised CrimeMigration & Asylum /

Refugees

Donors


“Creating a positive Investment Climate for the “Creating a positive Investment Climate for the South Eastern Europe Regional Energy Market” South Eastern Europe Regional Energy Market”


Contents

1.1. StabilityStability PactPact for South Eastern Europe / WT IIfor South Eastern Europe / WT II

2.2. The Athens Process The Athens Process -- A Regional Energy MarketA Regional Energy Market

3.3. Role of International DonorsRole of International Donors


Broad Framework and Objectives

• European Union (EU) must act as a force for stability and sustainable development in the European Continent

• Extending benefits of the Internal Market will project stability to EU neighbours

• Well implemented wider Internal Energy Market will lead to increased competition and lower prices

•allow increased environmental protection and safety over a wider area;

•and enhance security of supply throughout Europe

Nordic

SEE

Baltic

Italian

IberianBrit Islands

CE

Sub-Regions

Main


The Athens Process implements aRegional Energy Market

E

F

P I

B

NL

DK

CHA

PL

CZ

SK

H

SLOHR

YU

MKAL

GR

UA

BG

RO

D

L

BIHBIH

MD

TK

UCTE

REMmember

REMobserver

Non UCTE

I zone

II zone

SynchronousBorders

First “Athens” Memorandum of Understanding was signedon 15th Nov 2002 in Athens

Inclusion of Gas Market at 8th December 2003

International legally binding agreement in 2004


Athens Signatories are required to:

•implement tariff reform plans;

•implement all necessary technical standards, such as grid codes, accounting systems and information exchange for the operation of the grid;

•implement effective third party access to infrastructure;

•establish independent National Regulatory Authorities not later than June 2003;

•Establish National Transmission System Operators (TSOs) by June 2003; and

•Unbundle by 2003: i.the TSOs should be fully independent from all activities not relating to the transmission systems in terms of ownership.

€ct/kWh

Grid Codes

TPA

Regu-lators

TSOs

DSOs

GenCos

EnergyAgency


Co-ordination and Monitoring Structures

Senior Advisors for Energy and

Foreign AffairsOf Prime Ministers

Donors Group International Financial

Instutions (IFIs) Bilateral Donors

(Countries)

Industry RoundtablesPolitical Infos/Seminars

19/11/2003 UNECE Roundtable 10Established May 2003Expected Apr 2004Expected Apr 2004Since Jul 2003YesUNMIK Kosovo

Regional plan to meet MoU targets

Grid code and Distribution Code publishedSince Oct 2001Since Nov 2001YesTurkey

UCTE norms

Expected Jan 2004, new Energy Law not yet adopted, and TSO will be established by 2nd act, but preparations with SEETEC and EAR underway

Expected Jan 2004, new Energy Law not yet adopted, but feasibility study completed YesSerbia

Not clear how to do this yet, since national actions must be based on clear picture of regional marketIdentifiedYesYesYesRomania

EPCG involved in PWC project to produce plans.

Internal market not envisaged due to sizeIn the process of formation

Law passed 8 July 2003. Competition for members currentMinistry existsMontenegro

No answerNo answerFull compliance with EU

DirectivesItaly

No answerUCTE normsestablished Dec 1999established 2000YesGreece

No answerFYROM

Ministry timetable envisages completion by June 2004

ongoing via SEETEC projectestablished2001YesCroatia

Restructuring Task Force will report in October 2003. No action plan at national level yet.

Secondary legislation following from draft Energy Law (passed first reading recently) within six months

Accounting unbundling now, legal unbundling by Dec 2005. Phare 2003 Support project will start in 2004.1999Dec-01Bulgaria

No answerBosnia

National plan for 2002-6.Identifiedby early 2004YesYesAlbania

Action Plan at national and regional levelTechnical NormsTSORegulatorState Energy Authority

2(13)2(6)1.1.31.1.21.1.1MoU Clause


Reducing Environmental Impacts


International Donors

•European Commission

•The World Bank

•The European Bank for Reconstruction and Development (EBRD)

•The European Investment Bank (EIB)

•USA – The United States Agency for International Development (USAID)

•Canada – The Canadian Agency for International Development (CIDA)

•International Energy Agency (IEA)

•Italy, France, Germany, Switzerland and Greece. The UK is associated through the work of the EBRD


South Eastern Europe Co-operation Initiative Interconnection projects


Donors’ fields of expertise

•World Bank – study on investment optimisation

•EBRD - Study on “Power Sector Affordability in South East Europe”; to finance or cover risk in electricity clearing deals

•USAID - a Regional Transmission Planning project - in-depth benchmark of Regulators capacity

•CIDA - human resource development and technical contributions


Donors’ fields of expertise (II)

•KfW analysis of demand and supply balance in the region

and energy efficiency issues.

•EdF - compatible grid codes for SEE.

•Switzerland - hydro power and dispachting projects at national level.

•ENEL (Italy) working on the improvement of the electricity sector in Albania and investing in Bulgaria.

•Greece funding for improvements based on bilateral agreements.


Discussed Gas Infrastructure and Transit Routes cross SEE

TK-BG-RO-HU-A

GR-MK-SaM-BiH

New pipes


Donors Regional Actions (Matrix)

Matrix from the donors meeting oct 03

CEER: Standard Market Design by Oct 03

ETSO: CBT mechanism by Dec 03

ETSO: Network Access and Congestion Management

France: Study of Regional Grid and Commercial Codes

ETSO: Benchmarking for TSOs;

CEER:Benchmarking for regulators

KfW: Overall Supply/Demand StudyUSAID: Role of Hydro StudyIEA: National energy balances and statistics (yearly)Energy Reviews (Black Sea Energy Survey, 2000) see also website.KfW: Energy efficiency (implementation 0.4 MEuros)UN-ECE: Regional Network for Efficient Use of Energy and Water Resources in SEE (RENEUER)USAID: Energy Efficiency

EC: Planned contracts for Monitoring, Technical Support and Action Plan;l Athens Process Secretariat (to Dec 2004) CIDA: Simulation of the Potential Benefits of a Regional Electricity Market;Options for Balkan REM; Preliminary Market Design for REM; Regional Market Simulation/Software for Energy TradeEC/WB Generation Investment Study (start 03, 12 months)UCTE: Reconnection of SEE gridSeco: Secondment of energy market specialist to the Stability Pact for SEE/Brussels (for implementation and follow-up of Athens

Market Rules and Financial Settlements

Restructuring, Unbundling and TSO Dev.

Regulatory Agency/ Committee

PoliciesRegional Electricity Market/ Interconnections


Opportunities for the Private Sector

•Extensive National Power Sector Reforms & Harmonisation are under way

•Progressive Opening of National Markets

•Much larger and Diversified Market will soon be accessible

•Opportunity for Building Larger and More Efficient Generation Plants

•Opportunity for Building Multinational Portfolios of Generation Plants

•Distribution Companies Open for Privatisation


Conclusions

Stability comes with economic growth which is based on reliable and sustainable energy supply

•SEE Countries are too small to develop energy markets on their own

•The Athens Process secures for the SEE countries compability with EU Internal Market and provides guidelines for the National Energy Policies

•Regulators keep an eye on market development and its fair functioning: a more predictable environment creates a framework for profitable investments in the energy sector

•Investment in interconnections is indispensable to exchange energy in the REM and to link it to the Internal Electricity Market Major modernisation needs also for generation and distribution

•Huge opportunities for investors to enter the market


SEEERF Ministerial MeetingREM Drafting Confernce

Signature of the new Athens MoU on December 2003

•Extension of the Regional Electricity Market to a Regional Energy Market including Natural Gas

•Incorporation of the European Directives on Electricity, Natural Gas and related Environment Issues

•Held in Athens on 8th December 2003

•Drafting of the legally binding agreement on the Regional Energy Market to be signed in 2004

•organized by the European Commission and the Stability Pact


Rue Wiertz, 50B-1050 BrusselsBELGIUM

Peter Houzer, Energy Expert, WT II

[email protected]: +32(0) 2/401 87 17Fax: +32(0) 2/401 87 12

Related internet siteshttp://www.stabilitypact.org/energy

http://www.seerecon.org/infrastructure/sectors/energy

New UNECE Roundtable Facilitating Investment in the Electricity … · 2008. 11. 12. · 19/11/2003...

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