Co-operation Mechanisms of the pnew RES DirectiveF t Bi C fForest Bioenergy Conference
1 September 2010Juha RuokonenJuha [email protected]
Articles 6-11
RES COOP-MEXArticles 6 11
Flexible Mechanisms: Article 6 STATISTICAL TRANSFER
Required by the Directive
EU
NotificationNotification
q y
Other interaction
Seller countryBuyer country
Agreement
Compensation
• Member States agree by themselvesMember States agree by themselves
• Commission must be notified on all transfers and it makes the adjustments in the statisticsthe adjustments in the statistics
3(c) GreenStream Network Plc1.9.2010 JR
Flexible Mechanisms: Article 7JOINT PROJECTS
EU
Sellercountry
Notification:
FrameworkAgreement
Frameworkand
Buyer Project
‐ Information aboutinstallation
‐Volume sold‐Buyer country
Agreement
and reporting
• Electricity and/or heating & cooling projects
country
Compensation
ownery y
‐Delivery period (years)
y g g p j• The co-operation may involve private operators• Yearly reporting between the countries and to the Commission• The project that are operational after 25 June 2009• Commission must be notified on all transfers and it makes the
adjustments in the statisticsadjustments in the statistics
4(c) GreenStream Network Plc1.9.2010 JR
Flexible Mechanisms: Article 9JOINT PROJECTS BETWEEN MEMBER COUNTRIES AND THIRD COUNTRIES
EUSellera) Information about the
installationcountryNotificationb) Volume bought and
financial informationc) Delivery period (years)d) Aknowledgement from
h S ll f b)
Frameworkand reporting
Buyercountry
CompensationProject owner
the Seller country for b) and c)
Agreement
• The electricity produced within the project must be consumed in the Community area.Th j t th t ti l ft 25 J 2009• The project that are operational after 25 June 2009
• The third country cannot have a support scheme (other than investment aid) for the production. ) p
5(c) GreenStream Network Plc1.9.2010 JR
Flexible Mechanisms: Article 11JOINT SUPPORT SCHEMES
EUSellerFramework EUSellercountry
B
Notification:Agreement
- Information aboutinstallation
FrameworkdBuyer
country
Compensation Project
installation- Volume sold- Buyer country- Delivery period
Agreement and reporting
• Requires a statistical transfer of specified amounts of energy from
Compensationowner (years)
renewable sources from one Member State to another Member State
oror• the countries must set up a distribution rule that allocates amounts
of energy from renewable sources between the participating M b St tMember States.
6(c) GreenStream Network Plc1.9.2010 JR
WHY? - RESULTS FROMSCENARIOS
Long-run marginal costs of RES-Eg g
300
EUR per MWh Denmark Finland Norway Sweden
250
150
200
100
0
50
00 20 40 60 80 100 120 140
TWh per yearFor source see: Analysis of the flexible support mechanisms in the Directive on the
ti f th f f bl 2010
1.9.2010 JR 8(c) GreenStream Network Plc
promotion of the use of energy from renewable sources, 2010
National measures onlyy70TWh
50
60
30
40
10
20
Denmark Finland Norway Sweden TOTALR&D 0.60 0.03 0.00 0.00 0.63
0
Bio 5.66 4.94 0.09 2.15 12.84Hydro 0.00 1.33 7.34 2.48 11.15Wind 12.14 6.10 2.57 17.37 38.19
1.9.2010 JR 9(c) GreenStream Network Plc
20% flexibility (80% with national mesures)y ( )
70TWh
50
60Cost savings: 1,300 million EUR/a
30
40
10
20
Denmark Finland Norway Sweden TOTALR&D 0.10 0.00 0.00 0.00 0.10Bio 2 48 3 53 0 12 2 31 8 43
0
-1.41-3.18Bio 2.48 3.53 0.12 2.31 8.43Hydro 0.00 0.63 9.50 2.46 12.59Wind 12.14 5.76 6.95 16.82 41.67
1.413.18
+2.16
+4.38
1.9.2010 JR 10(c) GreenStream Network Plc
IMPLEMENTATION OPTIONS
Example: Framework for Joint Projects
Seller countryBuyer country
Political Framework Agreement for Joint projects
Statistical authority Statistical authority
Authority managing the seller
Statistical authority
Authority managing the buyer
Statistical authority
Authority managing the seller country’s RES balance
Authority managing the buyer country’s RES balance
Operational mandate Permits, agreement
and reportingRES purchase
programme managed by an authority or a
private entityRES Project development in
and reporting
Agreement and compensation on
or
Private entity with a
RES Project development in co-operation with the buyer
compensation on RES purchase
RES obligation
1.9.2010 JR 12(c) GreenStream Network Plc 12(c) GreenStream Network Plc
Example: Advanced Framework for Joint Projects
Seller countryBuyer country
Political Framework Agreement for Joint projects
Statistical authority Statistical authority
Authority managing the seller
Statistical authority
Authority managing the buyer
Statistical authority
Authority managing the seller country’s RES balance
Authority managing the buyer country’s RES balance
Operational mandate
Operational mandate
RES purchase programme managed
by an authority or a private entity
RES selling programmemanaged by an authority or a private
Project
Contracts
CompensationTenderingfor the sell of €/MWh
Project
or
Private entity with a
or a private entity
of €/MWh Project
RES obligation
1.9.2010 JR 13(c) GreenStream Network Plc
PLANS TO USE COOP-MEX
MS plans to use Coop-Mexp p• Forecast documents by Dec 2009:
• Surplus: 10 countries• Plans to use Coop-Mex with 3rd countries:
• France, Greece, Italy and Spain• Deficit: 5 countries• Total EU: 20.03% in 2020
• Joint Support Scheme:• Swedish-Norwegian Green Certificate
Scheme
2020 target - Forecast (percentage points)Surplus: 5 5 Mtoe Deficit: 2.0 Mtoe
2 %
3 %
Coop-Mex?
Surplus: 5.5 Mtoe
1 %
0 %
1 %
ria
ain
ce
en
ep
ny
nd
nia
nia
ria
us
ep
nd
ce
ary
nd
via
erl
gal
nia
nia
UK
m
alta
ur
aly
ark
3 %
-2 %
-1 %
Bul
gar
Spa
Gre
ec
Sw
ede
Slov
ak r
e
Ger
man
Pol
an
Lith
uan
Est
on
Aus
tr
Cyp
ru
Cze
ch R
e
Finl
an
Fran
c
Hun
ga
Irel
an
Latv
Net
he
Por
tug
Rom
an
Slo
ven U
Bel
giu Ma
Luxe
mb Ita
Denm
a
-3 %
1.9.2010 JR 15(c) GreenStream Network PlcSource: EC, 2010
WRAP UP – IS THERE GOINGTO BE COOP-MEX MARKET?
Known unknownsThere are known knowns. These are things we knowThese are things we know that we know. There are known unknowns. That is to say, there are things that we know we don't know. But th l kthere are also unknown unknowns. There are things we don't know we don't knowwe don t know we don t know
- Donald Rumsfeld 2002 -Donald Rumsfeld, 2002
10.6.2010 JR 17(c) GreenStream Network Plc
Conclusions• Countries are still assessing ways and concrete means
to reach targetsto reach targets• Coop-Mex, do provide flexibility for both buyers and
sellerssellers• Structure and framework should be kept simple!
• Will there be a RES Coop-Mex market?
YesYes• Project driven• Government initiativesGovernment initiatives• Long framework development
1.9.2010 JR 18(c) GreenStream Network Plc
1.9.2010 JR 19(c) GreenStream Network Plc
GreenStream’s BusinessesCore competence Services offered
• Fund management (carbon and renewable
Green Investment
energy); current investment vehicles include- Multilateral Carbon Credit Fund (EBRD and EIB)- Fine Carbon Fund and Post-2012 FCF- Nordic Carbon FundNordic Carbon Fund- Climate Opportunity Fund- Small-scale hydro fund Blåfall
• Own direct investments
• Brokerage of carbon credits and green certificates
• Portfolio management servicesGreen Certificates, Broker of the Year
Intermediary• Portfolio management services2004, 2005, 2006,
2007, 2008, 2009
• Climate and renewable energy strategies, market analysis financing solutionsAd i market analysis, financing solutions
• CDM/JI/GIS project sourcing and developmentAdvisory
10.6.2010 JR 20(c) GreenStream Network Plc