BRINGINGEUROPEANDTHIRDCOUNTRIESCLOSER

TOGETHERTHROUGHRENEWABLEENERGIES

The BETTER project

Andreas Tuerk, Dorian Frieden

PROJECT PRESENTATION (1/2)

BETTER: Bringing Europe and Third countries closer together

through renewable Energies (BETTER);

Intelligent Energy for Europe Programme, managed by the

Executive Agency for Competitiveness and Innovation (EACI);

Started: 1st July 2012;

Expected Completion Date: 1st January 2015;

Coordinator: CIEMAT, Madrid

http://better-project.net

PROJECT PRESENTATION (2/2) CIEMAT (Spain)

Centro de Invest. Energ. Mediamb. Tecn

DLR (Germany) Deutsches Zentrum Für Luft-und raumfahrt e.V

ECN (Netherlands)Energy Research Centre of the Netherlands

JOANNEUM (Austria) Forshungsgesellschaft Mbh

NTUA (Greece) National Technical University of Athens

OME (France) Observatoire Méditerranéen de l’Energie

PIK (Germany) Postdam Institute for Climate Impact Research

TUWIEN (Austria) Vienna University of Technology

UNDP (International) United Nations Development Programme

RES-Directive 2009/28/EC binding targets:

• 20 % RES gross final consumption by 2020;

• Nat. targets: flat rate approach adjusted to GDP.

BACKGROUND

Cooperation mechanisms•allow MS to partially meet their national targets with RE from other countries•May reduce the overall costs to meet RES 20% European target

• Statistical Transfers (Art 6)

• Joint projects within MS (Art 7) and with 3rd countries (Art 9)

• Joint support schemes (Art. 11)

Assess, through case studies, stakeholders involvement and integrated analysis:

•to what extent cooperation with third countries can help Europe achieve its RES targets in 2020 and beyond

•trigger the deployment of RES electricity projects in third countries and

•create synergies and win-win circumstances for all involved parties.

OBJECTIVES

Case Studies

Early movers?

STAKEHOLDERS INVOLVEMENT

COMM

UNICATION AND DISSEM

INATION

Bottom-up

Top

-Dow

n

Case studies (N.Africa, W.Balkans and Turkey) willinvestigate in detail the technical, socio-economic andenvironmental aspects of RES cooperation.

Integrated assessment will be undertaken from the “EU plus third countries” perspective, including:

• Detailed quantitative cost-benefit evaluation offeasible policy approaches as well as power systemanalysis

• Other possible “co-effects” (such as impacts on EU climate targets, energy security and macro-economicaspects).

METHODOLOGICAL FRAMEWORK

(Green-X, HIREPs Models)

Modeling results include:• required power system and transmission grid adaptations and related

costs• changes in the regional power prices and the daily power price profile

due feed-in of the volatile wind and solar power • changes in the power system stability and supply security. consequences

of the combined volatility of wind, solar and hydropower and the conventional power plants in the “EU plus third countries” region.

• Evaluation of the benefits due to the increased flexibility and capability of the whole power system because of the added assets such as: – increased hydro power storage capacity, wind and solar from Turkey– North Africa offering anti-cyclic wind compared to Europe as well as solar thermal

power plants which flexible and base load generation– The Balkan countries with their untapped RES potentials (incl. biomass, wind, solar,

hydro) where an increased linkage to the EU may serve to close some of existing bottlenecks in forming an integrated European electricity market

• Increased stability of power supply from wind and solar due to the enlarged regional coverage (“EU plus third countries”)

SWOT analyses for each country/region

2020 RES Szenarios

Green-X: Costs

HiREPs

Macroeconomic Effects

Ecologic- co-effects

Design options, potentials, barriers

Swotanalysis

• Identify cooperation potential with Third countries on macro-economic level,

• identify specific design options and business cases,• give practical recommendations for implementation,• develop an action plan to foster RES energy production,

transfer and use in the EU and third countries through cooperation mechanisms,

• BETTER is a results/ action oriented project with a strong focus on stakeholder involvement

Specific aims

STAKEHOLDER INVOLVEMENT and AB

So far, more than 20 LoS have been received from different stakeholder categories

UtilitiesIberdrola, Verbund, EnerjiSA, etc

Stakeholder’s Networks

Energy RegulatorsMEDREG

National AuthoritiesI.D.A.E, German Federal Ministry of Economics and Technology,etc

TSO operatorsREE

NGO´s and civil society Renewables Grid Initiative

International OrganizationIRENA

Industry associationsDII,, Estela, Protermosolar, etc

Multilateral initatives Desertec, Medgrid, Medrec, GTZ;

UfM

Private Investors and Project developers

SHE Consulting, EEA, HEP, Suntrace

Financial actors KfW, EBRD

Policy makers DG-Ener officials

BETTER: applying a multi-level framework

Macro level(prospects for international cooperation)

Macro level(prospects for international cooperation)

Micro level(business cases)

Micro level(business cases)

Acceptance levelAcceptance level

Adoption of RES directive and RES targets in the West Balkan countries• The countries covered by the West Balkan case study

will be eligible to make use of Statistical transfers Joint support schemes Joint projects between EU Member States and third

countries requiring the physical transfer of the involved electricity.

Exploring the strategic options for West Balkan countries

EE vs. RES expansion Likely surplus or shortfall? Domestic target achievement vs trade (Based on model

results and qualitative assessments) Interim trading and/or target achievment Trading with the EU or within the region? Possible role and design of different cooperation

mechanism with different pros and cons …

Embedding coop.mechanisms in the national frameworkRegulatory context

•Network regulations

•State aid provisions

•Institutional context

Existing or planned support framework

•Feed-In tariffs, subsidies…

•CDM

•Nationally Appropriate Mitigation Actions (NAMAs)

->Which technologies should be exploited by which instrument?

Developing design options: Important issues

• FIT, Market access, currency and yield risk• Institutional capacities, public acceptance• Cost-sharing and price considerations incl. grid

expansion, energy sharing?, employment, environment…)

• Delivery risk, timing

Developing design options: Important issues

• Possible funding and implementation approaches selection of implementing company

• Regulatory, legal and institutional aspects (monitoring, authorisation, verification, compensation…), oversight

• tec transfer• transit compensation, grid access• Investment support

Combination with the CDM

• Several renewable energy projects in the West Balkan countries are registered as CDM-projects

• The combination of the CDM with the cooperation mechanisms for the same projects/investments may be limited due to specific requirements of the CDM, namely:o the additionally of the investment;o double counting

More on our webpage:

D2.3: Design options of the Cooperation Mechanisms and their Complementarity with different financing schemes http://better-project.net

Stakehodoler dialogue

2013 2014

Stakehodoler dialogue

• Bilateral meetings with gvts, investors, financing institutions, power companies, TSOs, NGOs…

• Summer school in Foijnica, Bosnia

• Workshop early next year discussing draft results

Outlook

• Modeling results by autumn 2013• Final results of the West Balkan case study in spring

2014