1 Transferring EU Legislation on Climate Change&Developing Low Carbon Policies, May 24 th, 2013 - Graz, Austria Implementation of Directive 2009/28/EC.

1 Transferring EU Legislation on Climate Change&Developing Low Carbon Policies, May 24th, 2013 - Graz, Austria Transferring EU Legislation on Climate Change&Developing Low Carbon Policies, May 24th, 2013 - Graz, Austria

Implementation of Directive 2009/28/EC in the Energy Community and the challenges of

reaching binding 2020 RES targets

Gabriela CretuElectricity and Renewable Energy Expert

Energy Community Secretariat


CONTENT

Energy Community

Renewable Energy Directive 2009/28/EC as adapted by the Ministerial Council Decision 2012/04/EnC-MC

Renewable Energy Action Plans


ENERGY COMMUNITY• 9 Contracting Parties

Albania, Bosnia and Herzegovina, Croatia, Moldova, Former Yugoslav Republic of Macedonia, Montenegro, Serbia, Kosovo* and Ukraine (since 1st Feb 2011)

• 4 ObserversTurkey, Georgia and Norway and Armenia (since 2011)

• 15 ParticipantsAustria, Bulgaria, Cyprus, Czech Republic, France, Germany, Greece, Hungary, Italy, The Netherlands, Poland, Romania, Slovakia, Slovenia, United Kingdom

• European Commission On behalf of European Union


MINISTERIAL COUNCIL

PERMANENT HIGH LEVEL GROUP

REGULATORY BOARD (ECRB)

ELECTRICITY FORUM

GAS FORUM

SOCIAL FORUM

SECRETARIAT (VIENNA)

OIL FORUM

Political decisions

Advisory body

Working groups

Monitoring, coordination, support

Stakeholder involvement

INSTITUTIONS

5 Transferring EU Legislation on Climate Change&Developing Low Carbon Policies, May 24th, 2013 - Graz, Austria

Title II EnC Treaty: Commitment for the implementation of the acquis communautaire

► Electricity and Gas Third Internal Market Liberalisation Package

► Competition Antitrust and State Aid

► Renewable Energy Directive on the promotion of the use of energy from RES

► Environment Directive on environmental impact assessment

Large Combustion Plants Directive Sulphur in Fuels Directive Endeavour to accede: Kyoto Protocol; Council Directive

96/61/EC concerning integrated pollution prevention and control

► Energy efficiency Energy Services, Buildings and Labelling Directives

► Statistics Regulation on energy statistics Directive on the transparency of gas and electricity prices

► Oil Directive on minimum stocks of crude oil/petroleum products

“…with a view to ensuring high levels of investment security and optimal investments”

THE COMMON LEGAL FRAMEWORK


EU 20-20-20 BY 2020

Greenhousegas levels

Energyconsumption

Renewables inthe energy mix

-20% -20%100%

+20%

8,5%

Source: EU DG ENER


THE RENEWABLE ENERGY DIRECTIVE2009/28/EC

1. Sets mandatory national targets for renewable energy shares, including 10% renewable share for transport, in 2020

2. Creates flexibility by facilitating “joint projects” with EU Member States or third countries and “statistical transfers” between EU Member States to help reach targets cost effectively

3. Requires national renewable energy action plans

4. Requires reduction of administrative and regulatory barriers, improvements in provision of information and training and improves renewables’ access to the electricity grid

5. Creates a sustainability regime for biofuels


49%

13%

16%

13%

30%

18%

25%

16%

18%

20%

23%

17%

13%

40%

23%

11%

13%

14%

34%

15%

31%

24%

25%

14%

38%

15%

10%

RES share in 2020

BEBGCZDKDEEEIEELESFRITCYLVLTLUHUMTNLATPLPTROSISKFISEUK

EU-27 efforts in Renewables

2.2%

9.4%

6.1%

17.0%

5.8%

18.0%

3.1%

6.9%

8.7%

10.3%

5.2%

2.9%

32.6%

15%

0.9%

4.3%

2.4%

23.3%

7.2%

20.5%

17.8%

16%

6.7%

28.5%

1.3%

39.8%

0%

RES share in 2005

MEMBER STATES’ TARGETS

Source: DG ENER


18 October 2012 in Budva, Montenegro

the Ministerial Council adopted the Decision

to implement the Directive 2009/28/EC in the

Energy Community and to amend

the Article 20 of the Treaty establishing the

Energy Community D/2012/04/MC-EnC

http://www.energy-community.org/pls/portal/docs/1766219.PDF

MINISTERIAL COUNCIL

http://www.energy-community.org/pls/portal/docs/1766219.PDF


CONTRACTING PARTIES’ 2020 RES TARGETS

KOSOVO*

UKRAINE

SERBIA

MONTENEGRO

MOLDOVA

FYR OF MACEDONIA

CROATIA

BOSNIA AND HERZEGOVINA

ALBANIA

0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0%

18.9%

5.5%

21.2%

26.3%

11.9%

21.9%

12.6%

34.0%

31.2% 38%

40%

28%

17%

33%

27%

11%

25%

20%

* This designation is without prejudice to positions on status, and is in line with UNSCR 1244 and ICJ Opinion on the Kosovo declaration of independence.

2009 baseline year


Directive 2009/28/EC, as adapted• General adaptations- "Member States“ replaced by "Contracting Parties„- “Community” replaced by “Energy Community”

- “European Commission” replaced by “Energy Community Secretariat” except for executive powers

•Ad-hoc adaptations- CPs targets - NREAPs- Calculation of share of energy from RES

Article 20 of Energy Community Treaty - Implementation of Directive 2009/28/EC in the Contracting Parties

MINISTERIAL COUNCIL DECISION


MINISTERIAL COUNCIL DECISION (cont’)

Directive 2009/28/EC, as adapted

• Statistical transfers between EU-MS and EnC-CPs

• Joint support schemes between EU-MS and EnC-CPs

• Joint Projects between EU-MS and EnC-CPs

• External Audits

• Review based on the experience


FLEXIBILITY AND COST EFFECTIVENESS

• Contracting Parties are free to choose sectors to develop RES

• No technology-specific requirements

• Statistical transfers, joint support schemes

• Joint projects between EU Member States and the Contracting Parties based on physical transfer of electricity


• Article 8 – Statistical Transfers from Contracting Parties to Member States of the European Union

- Statistical transfer between CPs and EU MS possible under conditions

- A statistical transfer shall not affect the achievement of the national target of the Contracting Party making the transfer

• Article 9 - Joint support schemes between Contracting Parties and Member States of the European Union

MC DECISION - LEGAL ADAPTATIONS


Article 11 - Decisions of the Ministerial Council

1. The Decision of the Ministerial Council referred to in Articles 8 and 9 of this Decision shall be adopted by majority of the Members of the Ministerial Council, which must include a vote in favour by the European Union.

2. The Decision shall be positive only if all the following conditions are met:

a) Contracting Party has fully transposed Directive 2009/28/EC, as adapted by this Decision;

b) that the envisaged statistical transfers or distribution rule (as appropriate) are based on reliable and accurate energy statistics that are compiled in accordance with the European Union's methodology on energy statistics,

c) and that the Contracting Party is expected to exceed the indicative trajectory and binding target without including potential contributions from joint projects with third countries.

3. The Ministerial Council shall adopt a procedural act on the implementation of the present article.

LEGAL ADAPTATIONS (cont’)


Statistical Transfer

Joint Projects

Joint Support

Schemes

Short-term cost-efficiencyGaining time for domestic deployment

= Statistical Transfer + new investment in concrete installation

Technology specific objectivesEstablishing longer term cooperation

Security of supply considerationsMutual learning

Long-term efficiency through broader resource portfolio and more liquid markets

European Commission Guidance on the Implementation of cooperation mechanisms

To be issued in July 2013


IMPLEMENTATION DEADLINES

Contracting Parties shall bring into force the laws, regulations and administrative procedures necessary to comply with this Directive by 1 January 2014

Article 4 - Directive 2009/28/EC as adapted:

• Notification of the National Renewable Energy Action Plans to the Secretariat NREAP– 30 June 2013

- NREAP based on the EC template, the same for EU-MS;

• Notification of the forecast documents by 31 December 2012 (i.e. six months before the NREAPs are due):

– its estimated excess production of energy from renewable sources compared to the indicative trajectory which could be transferred to other Contracting Party in accordance with Articles 6 to 11, as well as its estimated potential for joint projects, until 2020; and

– its estimated demand for energy from renewable sources to be satisfied by means other than domestic production until 2020.


RENEWABLE ENERGY ACTION PLANS

NREAP requirements:

• National sectoral targets and trajectories (electricity, transport heating& cooling)

• Adequate measures to achieve the overall target

• Means of cooperation between national, regional and local authorities

• Planned statistical transfers or joint projects

• Measures to remove administrative barriers, accelerate authorisation procedures, reinforce renewable energy integration into the energy system and the better exploitation of biomass resources in particular.

• Explanations of the support schemes

• For the Contracting Parties – 2009 baseline year


INDICATIVE TRAJECTORY

• Energy efficient scenario considered in the forecast >>> posibble adjustments in the RES Action Plan will be needed in the future

• Target achievement in energy efficiency will help to reach the RES target at lower cost

S2009 + 0,20 (S2020 – S2009), as an average for the two-year period 2011 to 2012;

S2009 + 0,30 (S2020 – S2009), as an average for the two-year period 2013 to 2014;

S2009 + 0,45 (S2020 – S2009), as an average for the two-year period 2015 to 2016

S2009 + 0,65 (S2020 – S2009), as an average for the two-year period 2017 to 2018


Dispute settlement proceedings for:

failure to produce an credible national action plan

failure to implement all aspects of the Directive

significant deviation from plan or trajectory

valid complaints from any Contracting Party natural or legal persons regarding incorrect implementation or enforcement by the Contracting Party

Dispute settlement proceedings are the usual tool for enforcing Energy Community Treaty. Effectiveness:

most cases are resolved (corrective action taken by Contracting Parties) before reaching the Ministerial Council.

ENFORCEMENT!


For further RES information please contact:

Gabriela Cretu (RES-E)[email protected]

Karolina Cegir (RES-T)[email protected]

Borko Raicevic (RES-H)[email protected]

Energy Community SecretariatAm Hof 4, 1010 Viennawww.energy-community.org

Thank you!

1 Transferring EU Legislation on Climate Change&Developing Low Carbon Policies, May 24 th, 2013 - Graz, Austria Implementation of Directive 2009/28/EC.

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