Embed Size (px)
Citation preview
www. erranet.org
Security of supply in CSEE
Region
Märt Ots
Chairman
ERRA
Budapest, 14.06.2018
2
ERRA
The Energy Regulators Regional Association (ERRA) is a voluntary organization comprising of independent energy regulatory bodies primarily from Europe, Asia, Africa, Middle East, South and North America. Purpose & Objectives •To improve national energy regulation in member countries; •To foster development of stable energy regulators with autonomy and authority; •To improve cooperation among energy regulators; •To facilitate the exchange of information, research, training and experience among members and other regulators around the world. Legal status ERRA is an inter-institutional organisation registered in Hungary based on the Law 2016.LXXXV. The Ministry of Foreign Affairs and Trade of Hungary is the registration and supervision organ of ERRA.
3
ERRA Members
31 Full Members: Albania, Armenia, Azerbaijan, Bhutan, Bosnia & Herzegovina, Bulgaria, Cameroon,
Croatia, Estonia, Georgia, Hungary, Kazakhstan, Kyrgyz Republic, Latvia, Lithuania, Macedonia, Moldova, Mongolia, Nigeria, Oman, Pakistan, Palestine, Poland, Romania, Russia, Saudi Arabia, Serbia, Slovakia, Turkey, Ukraine, United Arab Emirates
10 Associate Members: Energy Regulatory Agency of Azerbaijan, Regulatory Commission for Energy in
Federation of BiH, Regulatory Commission for Energy of Republika Srpska (BiH), Egypt, ERERA (ECOWAS Regional Electricity Regulatory Authority), Ghana, Jordan, Peru, Energy Regulatory Office of UNMIK, NARUC (National Association of Regulatory Utility Commissioners, USA)
4
• Market Monitoring Activities of Energy Regulatory Commissions
• Price Regulation and Tariffs
• Renewable Energy Regulation
• Principles of Electricity Markets
• Introduction to Energy Regulation (ERRA Summer School)
• Seminar for Newly Appointed Commissioners and Chairmen
• Principles of Natural Gas Market Regulation
• Training Course for Regulators from Emerging Economies
• Introduction to Water Utility Regulation
• Educational Workshops: Balancing Markets; Network Codes; Energy Efficiency; CAPEX; Innovation and Regulation
ERRA Training Courses
5
Security of supply in European contexts
EU is net importer of energy.
Power systems are mostly synchronous.
Important subject is security in gas supply.
6
EU is dependent on energy imports
REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE
EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE
REGIONS 2016
7
European electricity system is synchronous
8
Target 2030 new directive proposal
50% from EU electricity should be renewable.
Technology is developing – investment costs for solar and wind technologies have been reduced by 80% between 2009 and 2016.
New Technologies for keeping of generation and consumption balance and stronger market integration.
Price for CO2 emissions.
The approach to renewables deployment should be increasingly market-based. Removal of subsidies and transfer to the free market economy. Renewables should compete on free market.
9
Target 2030 new directive proposal
Energy efficiency Clear objective to reduce the energy consumption. Enables to save on investments to energy generation, distribution, transmission. Reduction on CO2 emission, reduction of dependence from imported energy resources.
Energy conservation target of 30%.
Energy Savings Obligations requires each MS to deliver a fixed amount of end-use energy savings over the next 2021-2030 obligation period, which should be equivalent to 1.5% new savings of the annual energy sales to final consumers.
The savings should have a cumulative effect with 1.5% saved in 2021, reaching 15% in year 2030.
In practice, Member States have a flexibility to ensure the achievement of their energy savings over the whole period as long as the total amount is achieved by the end of the period (2030). Wheather to concentrate more on buildings, electricity consumption, etc.
10
EU Gas supply
ENTSOG TYNDP 2017
11
EU gas demand
ENTSOG TYNDP 2017
12
Security of gas supply
Two case studies
Central and South East Europe
Finland and Baltics
13
Central and South East European Gas
Market
Central and South-East European countries are characterized
by limited gas source diversity
CESEC initiative of 2015
– Enhances regional cooperation to achieving gas policy
objectives of EU member states and ENC contracting parties
– Later expanded to include measures on electricity market,
energy efficiency and renewables
Energy Community Gas Action 2020
– Legal and regulatory measures required to enhance
infrastructure investments to improve connectivity
– Reform measures required to attain the CESEC 2.0 action plan
objectives
14
EnCS Contracting Parties’ state of
compliance
Source: The State of Gas Market Integration in the Energy Community, EnCS, September 2017
15
Gas Consumption in ENC Contracting
Parties
Source: REKK and DNV GL pres. on the selection of Projects of Energy Community Interest (Vienna, 2018)
16
Gas Consumption in ENC Contracting
Parties
Source: EnCS Web-site PLIMA platform
ECS Priority projects: – Serbia-Bulgaria Interconnector
(Gas0913)
– Poland-Ukraine Reverse flow (Gas 14)
– Hungary-Ukraine Reverse Flow (Gas 15)
– Ionian-Adriatic Pipeline (Albania-Croatia Gas 16)
– Romania-Moldova Interconnector (Gas 18)
TAP project already ongoing – also ECS priority
17
Gas supply in Finland and Baltics
Historically gas supply from Russia only – until 2014.
Isolated region Finland + Baltics.
Large underground storage in Latvia.
Gas used for DH, power generation, industry.
Gas based local heating is not very common. DH is the most popular heating source.
Despite the gas supply, the distribution system is not existing in every city. Large territories with low population density.
18
Gas supply in Finland and Baltics (2)
Historically vertically integrated companies:
transmission, distribution, wholesale, end
customers supply.
Gazprom involvement.
Step by step implementation of EU 3-rd
liberalisation package.
19
Gas supply developments
Political decision „gas release programme“ in the beginning of 2010-s. Initiated by Lithuania and Estonia, followed by Latvia and Finland.
Preconditions for functioning liberalised gas market.
Ownership unbundling of TSO.
Diversification of gas supply.
Competition in supply to end-customers (no price regulation).
Big changes in 2014. Building of Klaipeda LNG terminal – independent supply from Russia.
New interconnections and terminals
Baltic Connector Estonia-Finland. EU co-financing decided.
GIPL Gas Interconnector Poland Lithuania. EU co-financing decided.
Regional LNG terminal
20
Gas supply
Regional gas market in the future: Finland +
Baltics
Gas supply from different sources:
Russian gas
LNG Lithuania, Poland, (Estonia).
Other sources (Poland)
21
Regional connections Baltics - Finland
22
Baltic Connector
Undersea pipe connection Estonia-Finland +
pipeline connections.
Compression stations on both side of Finnish Gulf.
Compression station at Karksi (Estonian –Latvian
border). For Finland – Latvia reverse flow. Enables the
using of Latvian underground storage for Finland.
23
Baltic Connector
Compression
stations
24
Other regional projects
GIPL (Poland – Lithuania).
Renovation of Latvian Gas storage.
Strengthening of Klaipeda connection,
project completed.
25
Regional projects
26
Gas supply in Baltic region
Estonia Latvia Lithuania Finland
27
Estonian TSO is rather optimistic on gas
demand prognosis
Demand Prognosis
28
Maritime transport new - challenge
Baltic Gasforum: Eesti Gaas
