an overview of the peci-pmi process 2017-2018 · 2019-07-03 · overview of the presentation...

Energy Community SecretariatEnergy Community Secretariat

3rd Energy Panel

An overview of the PECI-PMI

process 2017-2018

Janez Kopač, Director, Energy Community Secretariat

Brussels, 17 June 2019 1

Belgrade, 27 November 2017


1) Overview of the Regulation 347/2013 – guidance for the PRI projects

2) Project Assessment Methodology Overview

3) PECI and PMI projects (second edition)

2

Overview of the presentation

Brussels, 17 June 2019


Why is there an infrastructure aspect of ECS

work...?

Transparent Legal Framework

• 3rd Energy Package

• Network Codes

• Tariff Regimes

• Etc.

Functional Infrastructure Background

• Phisical Connectivity

• Security of Supply

• N-1

• Different Sources and Routes

A functioning energy market requires...

Market

Source Competition

Traders

Shippers

Alternative supply/route

Market Integration

Exchange

Spot

Futures

OTC

Coupling



The Regulation 347/2013 for the Energy Community

Regulation 347/2013 as part of the Legal Acquis:

Identify electricity/ gas/ smart grid /oil Projects of EnC Interest/Projects of Mutual Interest –PECI/PMI

Foster implementation

Facilitate Permit

Granting

Provide Regulatory Incentives

Monitor Implementation


Energy Community SecretariatEnergy Community Secretariat 5

Project categories – PECI/PMI

Belgrade, 27 November 2017

Involves at least 2 CPs or a CP and a MS

Located in one CP and has a Cross-border impact

Fits in the defined

project categoriesMarket Integration

SoS

Sustainability

Gas Same + Competition

Smart GridSoS

Mitigation of Environmental Risk

Interoperability

PECI

PMI If involves a CP and a MS and is not PCI in the EU

If involves a CP and a MS has to be PCI first in EU

General

Criteria

Potential Benefits

outweigh costs

Electricity

Oil

Specific

Criteria


Additional Benefits of Regulation 347/2013

Regulatory Incentives

Maximum 3,5 yrs.

permitting

Competent Authority –

1 Stop Shop

Cross-Border Cost

Allocation (CBCA)

WBIF – NIF founds

Studies & Works

ECS Transparency

Platform

Project schedule

monitoring



Projec Data Submission

Project

Eligibilitycheck

Verification of project

data

Cost-Benefit Analysis

NPV/IRR

Multi-Criteria Analysis and

result Aggregation

Relative ranking of projects

1 3 4 5 62

PECI/PMI selection process –

project assesment workflow / methodology

Indicators s.a.:

- Enhancement of competition

- Improvement of System

Adequacy

- Project Maturity

- Market simulations – Socio-

economic benefits per country

- Network simulation (electricity)



Project assessment methodologySummary and Welfare change

Source:

Explanatory Note

Draft assessment methodology for gas for PECI/PMI

REKK – DNV GL


Can be used as pre-feasibility study


Approval of PECI and PMI lists

PECI: Min.Council Decision –

D/2018/11/MC-EnC of 29 Nov 2018

PMI: Min. Council

Recommendation of 29 Nov 2018

- R/2018/1/MC-EnC


Electricity Projects


PECI: -

PMI: El_06 and El_07 and El_09

El_06 400 kV OHL Vulcanesti (MD) - Issacea (RO)

El_07 400 kV Mukacheve (Ukraine) – V.Kapusany

(Slovakia) OHL rehabilitation

El_09 750 kV Pivdennoukrainska NPP (Ukraine) –

Isaccea (Romania) OHL rehabilitation and

modernisation


Gas Projects


PECI:

PMI:

GAS_25Trans-Balkan Corridor Bi-directional Flow between Moldova

and Ukraine

Gas_20 & 21 &

22

Trans-Adriatic Pipeline:

- Cluster of Trans-Caspian Pipeline and South Caucasus

Pipeline (further) Expansion (Gas_22);

- Cluster of Trans-Anatolia Pipeline and South Caucasus

Pipeline Expansion (Gas_20-21)

GAS_

14

Gas interconnection Poland-Ukraine

GAS_

18

Gas Interconnection Romania-Moldova

(Ungheni - Chisinau)


Oil Project


.

Oil_02 Transportation of different crudes of oil via Southern

Druzhba pipeline

PMI:

Energy Community SecretariatEnergy Community Secretariat 13Brussels, 17 June 2019

Georgian specifics – Regulation 347/2013 is also

part of the acquis, but no territorial contact


Potential PMI - Electricity

Project name Project codeDiscounted

CAPEX (mEUR)

Discounted

OPEX (mEUR)

Length of

project (km)

Commission

date

NTC (MW,

symmetrical)

Black Sea - IIa El_02a 2488.4 323.0 1100 2025 2000 (GE-RO)

14

Very positive socio-

economic benefits

Almost all sensitivity

scenarios provide

the same results


Potential PMI - Gas

Project PipelineFrom To Max flow

Trans. feeYear

Inv. cost

(from)

Inv. cost

(to)Entry Exit

GWh/d €/MWh €/MWh million € million €

GAS_02

White Stream GE RO 490 0.50 0.50 2022 3840 60

(SCP) AZ GE 656 0.50 0.50 2022 0 0

(TCP) TM AZ 656 0.50 0.50 2022 0 0

15

*SCP and TCP assumed to be part of White Stream to provide sourcing as suggested by the Project PromoterResults are robust for

sensitivities

White Stream (GAS_02)

has huge market integration

impact on a wider region,

but depends on the

availability and pricing of

Türkmen gas and transport

route via Azerbaijan (costs

of these projects were not

considered!)


www.energy-community.org

Thank you

for your attention!


http://www.energy-community.org/

an overview of the peci-pmi process 2017-2018 · 2019-07-03 · overview of the presentation...

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