EREF Board Meeting Brussels, 20 October 2015

Transcription

1 EREF Board Meeting Brussels, 20 October 2015 Dr. Dörte Fouquet - EREF Representing Director -

2 4. Membership fee issues 2015

3 EREF Membership developments since May 2015 EDORA: request for 2015 membership fee suspension due to financial difficulties ARGE Netz: cancellation of membership after 2015 Outstanding 2015 membership fee payments as of today: 12,565 Calculation of membership fees for 2016 pending 3

4 5. Update on EREF actions past and future -

5 EREF action between May and October 2015 Regular action EREF policy briefings EREF SHP newsletter (quarterly) Updates on ongoing issues Participation in post-erec policy meetings RES Steering Committee meetings Hydro policy network meetings IDEAS meetings Community Power meetings Relevant WFD CIS Working group meetings Website updates 5

6 EREF action between May and October 2015 Specific action EREF Small Hydropower Workshop (Jun 2015) EC consultation meeting on Natura 2000 Guidelines for Small Hydropower Development (Jul 2015) Joint position paper with Brussels-based renewable associations on energy market design (Jul 2015, not yet published) Detailed report and positions on capacity markets and capacity mechanisms (Aug 2015) Joint letter with Brussels-based renewable associations on 2030 governance to EC (Sep 2015) Joint letter with Brussels-based renewable associations on investment security to EC (Sep 2015) 6

7 EREF action between May and October 2015 Specific action continued Position paper on energy market design (Sep 2015) Joint position paper with Brussels-based renewable associations on 2030 governance (Sep 2015) Reply to EC s public consultation on market design (Oct 2015) Keep on Track Organisation of policy workshop (Brussels) Development of 7th Policy Briefing Final technical and financial project report 7

8 EREF action between May and October 2015 Project with EU RECP Dissemination activities on renewable energy related RECP activities to EREF members and database Participation in questionnaire 12,000 income for EREF Communication activities 1 press release (EREF position on energy market design) Article on small hydropower developments (REECO) Installation of Twitter account Update of distribution lists Presentations and participations in panels at conferences 8

9 Planned EREF action from October 2015 onwards Specific action Series of meetings with EC officials (DG Ener, Comp, Clim, Sec Gen, Env) re market design, governance, RED, SHP Finalization of EREF position papers on governance (Nov 2015) EREF position paper on new Renewable Energy Directive including annex with detailed text proposals (Dec 2015) Joint position paper with Brussels-based renewable associations on new Renewable Energy Directive (Dec 2015) EP Briefing event on governance (sponsored by BEE, Dec 2015) EREF letter to President Juncker to complain about funding of coal and gas through EFSI (if still applicable) 9

10 Planned EREF action from October 2015 onwards Specific action continued EREF SHP Chapter: position paper and background info on small hydropower issues Reply to EC s public consultation on the new Renewable Energy Directive (Jan 2016) EREF s New Year Reception (26 Jan 2016) Development of follow up project proposal to Keep on Track (Jan 2016) Communications Internet forum for Members (2015) Presentations at conferences Policy chat 10

11 EREF Board Meeting Brussels, 20 October 2015 Dr. Dörte Fouquet - EREF Representing Director -

12 6. Presentation of ideas for future EREF membership fee structure and income possibilities

13 EREF Small Hydropower Chapter Regarded as special task within EREF Existing EREF Members contributed on voluntary basis in addition to their EREF membership fees RENEXPO Salzburg, Nov 2015: opportunity to gain additional Members and supporters Will former ESHA Members join? 13

14 8. Political report from Brussels

15 The Energy Union Package (February 2015) Goal: a resilient Energy Union with an ambitious climate policy at its core is to give EU consumers - households and businesses - secure, sustainable, competitive and affordable energy. Achieving this goal will require a fundamental transformation of Europe's energy system. Ambition: to make the EU the world number one in renewable energies

16 Main EU agenda topics Energy market design (including self-consumption and capacity markets and mechanisms) Heating and Cooling Strategy Governance Revised Renewable Energy Directive Other EU updates Investor protection European Funding Opportunities

17 Vision for a new European energy market Increased competition (more players) A market fit for renewables Increased cross-border flows of electricity Consumer as prosumer Producer Self-consumption Choice from where to get electricity

18 A new Energy Market Design: Currently preferred positions of the European Commission High importance of harmonised network codes Enhanced development of inter-connectors within the EU Energy-only market with a secured supply; Creation of balancing-markets Inter-linkage of intra-day markets from 2017 onwards Electricity price peaks as investment incentives (no limits to electricity price peak)

19 A new Energy Market Design: Currently preferred positions of the European Commission Integration of renewables in the market through Subsidies and support for renewables in line with the market Balancing responsibility for renewables As soon as new market design functions, priority dispatch for renewables will be abandoned Equal treatment of demand-side management and electricity production

20 A new Energy Market Design: Currently preferred positions of the European Commission Role of consumers: Dynamic billing for consumers No regulated electricity prices Highly flexible demand-side management for companies and especially for private households Aggregators for private households

21 A new Energy Market Design: Currently preferred positions of the European Commission No subsidies/support for power stations which loose money; instead market-based approach National capacity markets will not be allowed to disrupt European market design Assessment of national capacity markets needs to be done with a harmonized/same methodology Regular revision/check of market system during transition periodenhanced European interconnectivity (transnational grid capacity)

22 Potential implications of new Energy Market Design on EU Member States Possibility to participate in balancing markets and intra-day markets New business models and strategies given electricity price peaks (storage, self-consumption) Potential changes to existing capacity market? End of subsidies to uneconomical power stations (Coal? Nuclear?)

23 Heating and Cooling Strategy Commission regards heating and cooling as low hanging fruit (currently only 15% of H&C generated by renewable energy Several public consultation meetings Major elements include energy efficiency and use of local energy sources Strategy to be presented by beginning of 2016

24 Some background from within the Commission DG Ener looks carefully at the German debate and hopes that the German path towards an EOM without capacity market systems but capacity reserve may help to go after excessive capacity market plans of other MS 24

25 A new Energy Market Design: timeline New Energy Market Design 15 Jul - 8 Oct 2015 End of public consultation on market design Nov 2015 Feb 2016 Evaluation and consolidation of content of new energy market design 18 Nov 2015 Vice-President Šefčovič: State of the Energy Union Nov/Dec 2015 Jan 2016 Spring 2016 Q EP Ini Report on Energy Union? Publication of Heating and Cooling Strategy Impact assessment of energy market design 2016 Winter Package including Market Design Directive, Renewable Energy Directive, Energy Efficiency Directive, sustainability criteria, labelling (tbc) 18 Nov 2016 Vice-President Šefčovič: State of the Energy Union End of 2016/ early 2017 Legislative reports

26 A new Energy Governance structure: key elements Precise and robust governance system which Guarantees investment security Promotes cooperation and coordination among Member States Ensures achievement of 2030 RE target Defining national renewable energy contributions Ensuring the implementation of national contributions Regional cooperation and coordination

27 A new Energy Governance structure discussed options 2030 goal: a binding EU-wide target of at least 27% renewable energy within gross final energy consumption Binding or non-binding national renewable energy contributions? Binding regional targets? Enforcement of the implementation of national contributions? Potential implications on EU Member States: non-binding national RE targets will allow nonambitious RE policy Possibility to leave it to other EU Member States to develop RE

28 A new Energy Governance structure discussed options Regional cooperation (coordinated regional policy planning, joint projects between Member States, joint research activities and co-funding for innovative technologies)? Potential implications on EU Member States: Joint RE development with direct neighbours, electricity neighbours or within regions

29 A new Energy Governance structure discussed options Incentivizing national investments in renewable energy? Countries with ambitious RE targets get additional EU funding. Potential implications on EU Member States: Under-performing Member States pay for projects in over-performing Member States Additional funding opportunities for RE projects in over-performing Member States

30 A new Energy Governance structure: timeline 2030 Governance Scheme 6 Oct 2015 Meeting of task force on national energy and climate plans (national focal points) re country fiche and governance scheme 20 Oct 2015 End of Energy Union Tour of Vice-President Šefčovič: 18 Nov 2015 Vice-President Šefčovič: State of the Energy Union 26 Nov 2015 Energy Council Conclusions Nov/Dec 2015 Dec 2015 Q EP Ini Report on Energy Union? New reference scenario 2016 Winter Package including Market Design Directive, Renewable Energy Directive, Energy Efficiency Directive, sustainability criteria, labelling (tbc) 18 Nov 2016 Vice-President Šefčovič: State of the Energy Union

31 Revision of the Renewable Energy Directive Commission plan: renewable energy package in winter package 2016 Including a new Renewable Energy Directive New Directive will have special chapter on community and citizens involvement Pending discussion on two options: Recast of current Directive Complete new development of Directive Public consultation process in November 2015 (key topics will be state aid and priority dispatch)

32 Nov 2015 Jan 2016 A new Renewable Energy Directive: timeline Revision of the Renewable Energy Directive Public consultation process on new Renewable Energy Directive 18 Nov 2015 Vice-President Šefčovič: State of the Energy Union Nov/Dec 2015 Dec 2015 Spring 2016 EP Ini Report on Energy Union? New reference scenario Impact assessment of energy market design Q Winter Package including Market Design Directive, Renewable Energy Directive, Energy Efficiency Directive, sustainability criteria, labelling (tbc) 18 Nov 2016 Vice-President Šefčovič: State of the Energy Union End of 2016/ early 2017 Legislative reports

33 What? Communication on Energy Security EU Energy Union Climate agreement in Paris Medium Combustion Plants Directive EU Sustainable Energy Declarations with third countries Other EU Updates Status EP initiative report rejected in final vote in June No official EP view. EP initiative report pending. Stalled finalization of report due to internal rules of procedures and political considerations among Parties. EP initiative report 15 MEPs as part of EU delegation Reached agreement (June 2015): plants with output > 5MW have time until 2025 to comply; plants between 1-5 MW have time until Prelude to 2 nd and 3 rd aspect of making the EU no.1 in renewables : EU industry policy and policy to boost export of European renewable equipment and know-how (planned for 2016)

34 SHP related EU developments What? ECJ decision on interpretation of the WFD Guidelines for SHP development in Natura 2000 areas Water Framework Directive CIS work programme Status Confirms principle to prevent the water body from deterioration of the status or to enhance its quality by implementing a duty to obtain an appropriate permit New draft version by late autumn 2015 High-level conference in Nov 2015 Final proposal by beginning of 2016 Revision planned for 2019; not earlier as originally announced by European Commission Final programme to be adopted in Nov 2015 Less working groups

35 Investor protection under the Energy Charter Treaty in view of retroactive changes in legislation for RES support in some MS of the EU Art. 10 Energy Charter Treaty: Each Contracting Party shall, in accordance with the provisions of this Treaty, encourage and create stable, equitable, favourable and transparent conditions for Investors of other Contracting Parties to make Investments in its Area. Such conditions shall include a commitment to accord at all times to Investments of Investors of other Contracting Parties fair and equitable treatment. Such Investments shall also enjoy the most constant protection and security and no Contracting Party shall in any way impair by unreasonable or discriminatory measures their management, maintenance, use, enjoyment or disposal. In no case shall such Investments be accorded treatment less favourable than that required by international law, including treaty obligations. Each Contracting Party shall observe any obligations it has entered into with an Investor or an Investment of an Investor of any other Contracting Party.

36 Investor protection: The principle Energy Charter Treaty in principle allows investors to proceed against host States Dispute resolution through arbitration Several cases, e.g. against Spain, against Czech Republic Question: how does that sit in proceedings between investors from Member States against Member States? Shouldn t it normally be the European Commission?

37 Position of the European Commission: General European Commission considers Energy Charter Treaty nonapplicable in proceedings against Member States Respectively: Damages to undertakings = illegal State aid (Czech Republic, Romania ) Amicus Curiae in several proceedings AES vs. Ungarn, ICSID-Case No. ARB/07/22; Electrabel vs. Ungarn, ICSID-Case No. ARB/07/19, Micula vs. Rumänien; Antin vs. Spain, ICSID Case No. ARB/13/31; Eiser vs. Spain, ICSID Case No. ARB/13/36 BUT: Arbitration tribunals consider Energy Charter Treaty applicable ONLY: primacy of EU law What has been enacted in order to implement EU law cannot violate Energy Charter Treaty!

38 Position of the European Commission Latest Practical example -Case Micula /Steel business Romania maintained- prior to accession to EU certain custom exemptions Micula brothers benefited from that In accession negotiations custom exemptions abolished Micula brothers sued under bilateral investment treaty Arbitration tribunal ordered Romania to pay 82 million Euro damages Commission argued though involuntarily this would be State aid and prohibited the payment Case now before the General Court (T-646/14)!

39 The Vattenfall case: History First proceedings initiated in 2009 Vattenfall AB, Vattenfall Europe AG, Vattenfall Europe Generation AG v. Federal Republic of Germany (ICSID Case No. ARB/09/6) under the Energy Charter Treaty at the World Bank s ICSID Reason: environmental restrictions imposed on a 2.6 billion coal-fired power plant being under construction along the banks of the Elbe River Claim: EUR 1.4 billion March 3, 2011: Parties settle by agreement embodied in an award by consent Germany paid, standards were lowered The EU Commission did not intervene as amicus curiae!

40 The Vattenfall case: Latest Vattenfall initiated arbitration proceedings under the Energy Charter Treaty against Germany Reason: Germany decided to speed up the nuclear phase-out Request: ,32 Euro damages! European Commission in September 2015 joined as «amicus curiae» Was asked by the Tribunal to submit its observations Likely Commission again to defend its position that against Member States Energy Charter Treaty nonapplicable

41 European Funding Opportunities SET Plan European Commission launched new Strategic Energy Technology (SET) Plan (15 Sep) SET Plan Conference in Luxembourg (21/22 Sep) No official EC communication, but document from Sec Gen Ping-pong game between stakeholders for final communication Global Industry Technology Leadership (GITL) Fund planned for 2016 including enlarged funds for energy GITL Fund part strategy to make the EU no. 1 in renewables

42 European Funding Opportunities NER 400 NER 400 part of EU s Framework for Climate and Energy Extended scope to cover low carbon innovation in industrial sectors. 2.1 bn EUR for innovative renewable energy projects and one CCS project So far, mainly project applications for CCS Big funding opportunity for renewables

43 European Funding Opportunities Horizon 2020 & others Horizon 2020 draft work progammes for available; subject to final changes Final work programme expected for mid-/end of October 2015 BBH is in process of finalising detailed overview of available funding schemes for renewables at EU and national levels (EU member States) African-EU Renewable Energy Cooperation programme (RECP): new RECP Portal including main RECP products and services for private sector stakeholders such as the Finance Instrument Database and country market briefings

44 Update on the RES Steering Committee

45 RES Steering Committee Formal request for meeting between national associations and Brussels-based renewable energy associations Suggestion to meeting before EREF New Year s Reception to discuss joint actions on governance and RES Directive Invitation to Commissioner Cañete to speak to RE community during EREF New Year s Reception TF RED/Governance - Changed lead from SPE to EWEA - Joint position paper on governance (Sep 2015) - Joint position paper on RED (Dec 2015) 45

46 TF Market Design RES Steering Committee Joint position paper on Market Design (Nov 2015) Media training (mid- November? EWEA? EREF?) TF Heating and Cooling Several background paper sent to Commission Continued meetings and input 46

47 EREC Update No news on pending liquidation process of EREC and claim of REH landlord Payback of EREF s indemnity payment to EREC staff pending 47

48 Upcoming consultations and events

49 Ongoing development of new energy market design EC public consultation process on the new Renewable Energy Directive (Nov 2015 Jan 2016) State of the Energy Union speech of Vice-President Šefčovič (18 Nov 2015) Governance? 49

50 Other EU Updates - Upcoming meetings Event Content Place Date BBH Energy Conference Energy Dialogue Event EREF New Year s Reception Climate policy needs (UNFCCC COP 21); EU energy system transition; system integration; and investment security Showcasing local and national lessons learnt to promote energy transition Brussels 12 Nov 2015 Brussels 18 Nov th anniversary of EREF Brussels 26 Jan 2016

51 EREF Board Meeting Brussels, 20 October 2015 Dr. Dörte Fouquet - EREF Representing Director -

52 11. Any other business

53 EREF New Year s Reception 15 th anniversary Tuesday, 26 January 2016 (tbd) Natural History Museum (EP not available anymore) Invited speakers: Commissioner Cañete MEP Claude Turmes Expected participants: around

54 Thank you for your attention!