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The RES Integration Study –Methodology, Overall Results and Recommendations
Financial Advisory Strategy Consulting Market IntelligencePolicy Consulting
RecommendationsBrussels, 7 December 2011
Jan-Benjamin Spitzley, Edoardo Binda Zane, Robert Brückmann
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Agenda
• Purpose of the contract & tasks
• Methodology
• Main findings
Structure of presentation
RES-Integration
2
• Main findings
• Barriers & solutions
• NREAP assessment
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Task of Study
• “Assessment of current legal, technical and operational framework of grid and electricity
market related issues in each of the EU-27 Member States.“
• “Establishment of a comparative study of the present situation and the future plans,
description of the regulatory framework and identification of best practices and
recommendations regarding grid and market integration of electricity from renewable
sources.“
Purpose of contract & tasks:
RES-Integration
3
sources.“
• “Assessment of Compliance with the requirements of Article 16 of Directive 2009/28/EC on
the promotion of the use of energy from renewable sources.”
• “Evaluation of the consistency, viability and credibility of the foreseen measures related to
the sectoral electricity targets reported under each NREAP.“
• “Formulation of recommendation for each Member State and the EU as a whole.”
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Methodology RES-Integration
Methodology steps I
Research
First consultation round
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Compilation of national reports
Second consultation round
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Methodology RES-Integration
Methodology steps II
Harmonisation of barriers
Open final consultations
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NREAP evaluation
National & European recommendations
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Main Findings
Grid connection as very critical
phase for integration
RES-Integration
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phase for integration
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Main Findings
Grid connection as very critical phase for integrat ion
RES-Integration
40 barriers detected
(Operation: 7; Development:16)
Most information available
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No opposition to current focus of
debate on development
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Main Findings
Very strong link between
connection and development
RES-Integration
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connection and development
phase
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Main Findings
Very strong link between connection and development phase
RES-Integration
Two sides of same medal
Reciprocity of barriers
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Especially relevant for
costs as well as for waiting time
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Main Findings
Grid operation presently no
serious issue
RES-Integration
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serious issue
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Main Findings
Grid operation presently no serious issue
RES-Integration
Low share of volatile RES-E in
many MS
Situation may change
dramatically in the future
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Early steps required to
minimise future impact
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Main Findings
Grid development suffers quite
strong lack of regulatory
RES-Integration
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strong lack of regulatory
instruments
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Main Findings
Grid development suffers quite strong lack of regul atory instruments
RES-Integration
High costs for grid operators for RES
integration
Current regulatory instruments only
partially cover costs
13
Problem especially at DSO level in regions with low
population and high RES-E potential
Unbundling has impaired financial situation of some
grid operators
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Main Findings
NREAPs mainly do not
address the barriers identified
RES-Integration
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address the barriers identified
in this study
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Main Findings
NREAPs mainly do not address the barriers identifie d in this study
RES-Integration
MS were not aware of issues
MS had no interest in sharing information with
Commission
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Issue did not fit in categories of
NREAP template
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Grid Connection – Barrier Analysis
• Impossibility of
connection due to
insufficient
infrastructure
• Higher growth rate of
RES-E than
Lack of grid capacity / different pace of grid and RES-E development
RES-Integration
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RES-E than
development rate of
infrastructure
• Consequence:
deployment and RES-
E integration slowed
down
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Steps at European level – General guidelines
Different pace of grid & RES-E development leading to lack of grid capacity
RES-Integration
Enhance coordination between RES-E & grid infrastructure development
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Steps at European level – Enhance Coordination RES-Integration
Data
• Clear data basis of existing and planned RES-E
Planning
• Master plans including overall electricity
Cooperation
• Dedicated regional platforms (All Island project –
Concrete Steps:
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planned RES-E plants
• Ambitious long term targets (2020-2050)
electricity sector (Planning process in Estonia, TYNDP)
Island project –Ireland)
• Development in neighbouring countries process (Austria)
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Steps at European level – Enhance Coordination
Action at European level:
RES-Integration
Data
• Clear data basis of existing and planned RES-E plants
Planning
• Master plans including overall electricity sector
Cooperation
• Dedicated regional platforms (All Island project –Ireland)
Methodology
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plants• Ambitious long
term targets (2020-2050)
sector (Planning process in Estonia, TYNDP)
Ireland)• Development
in neighbouring countries process (Austria)
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Steps at European level – Enhance Coordination
Action at European level:
RES-Integration
Data
• Clear data basis of existing and planned RES-E plants
Planning
• Master plans including overall electricity sector
Cooperation
• Dedicated regional platforms (All Island project –Ireland)
TYNDP
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plants• Ambitious long
term targets (2020-2050)
sector (Planning process in Estonia, TYNDP)
Ireland)• Development
in neighbouring countries process (Austria)
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Steps at European level – Enhance Coordination
Action at European level:
RES-Integration
Data
• Clear data basis of existing and planned RES-E plants
Planning
• Master plans including overall electricity sector
Cooperation
• Dedicated regional platforms (All Island project –Ireland)
EU Projects
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plants• Ambitious long
term targets (2020-2050)
sector (Planning process in Estonia, TYNDP)
Ireland)• Development
in neighbouring countries process (Austria)
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Grid Connection – Barrier Analysis
• Connection not
possible, because
whole capacity is
reserved by plants
that are not yet
connected
Virtual saturation and speculation
RES-Integration
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connected
• Speculation main
reason
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Steps at European level – General guidelines
Speculative behaviour and virtual saturation
RES-Integration
Adopt national legal framework to more and differen t stakeholders
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Steps at European level – Adopt national laws
Concrete Steps:
RES-Integration
Milestones
• Intermediate steps and milestones
• Achievement of
Reservation fee
• Fee for project developers upon reserving capacity
Open issue
• What solution for countries where virtual saturation is
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• Achievement of milestones conditional for grid reservation (France, Estonia, Germany...)
capacity (Bulgaria and Poland)
saturation is already existing?
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Steps at European level – Adopt national laws
Action at European level:
RES-Integration
Milestones
• Intermediate steps and milestones
• Achievement of
Reservation fee
• Fee for project developers upon reserving capacity (Bulgaria and
Open issue
• What solution for countries where virtual saturation is already
Attention to existence of barrier
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• Achievement of milestones conditional for grid reservation (France, Estonia, Germany...)
capacity (Bulgaria and Poland)
saturation is already existing?
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Steps at European level – Adopt national laws
Action at European level:
RES-Integration
Milestones
• Intermediate steps and milestones
• Achievement of
Reservation fee
• Fee for project developers upon reserving capacity (Bulgaria and
Open issue
• What solution for countries where virtual saturation is already
Final choice not necessary
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• Achievement of milestones conditional for grid reservation (France, Estonia, Germany...)
capacity (Bulgaria and Poland)
saturation is already existing?
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Steps at European level – Adopt national laws
Action at European level:
RES-Integration
Milestones
• Intermediate steps and milestones
• Achievement of
Reservation fee
• Fee for project developers upon reserving capacity (Bulgaria and
Open issue
• What solution for countries where virtual saturation is already
Initialise discussion process
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• Achievement of milestones conditional for grid reservation (France, Estonia, Germany...)
capacity (Bulgaria and Poland)
saturation is already existing?
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Grid Connection – Barrier Analysis
• Communication
problems and other
general conflicts
between grid
operators and plant
operators
Lack of communication & conflicts & weak position of plant operators
RES-Integration
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operators
• Weak position of plant
operators
• Lack of trust in
judicial procedures
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Steps at European level – General guidelines
Lack of communication, conflicts and weak position of plant operators
RES-Integration
Improve communication between stakeholders
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Steps at European level – Improve Communication
Concrete Steps:
RES-Integration
Process
• Opportunities for communication at early stage of process
Platform
• Communication platforms (Electricity Networks Strategy
Direct link
• Permanent representation of stakeholder groups for continuous
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process• Central bodies
providing out-of-court decisions (EEG Clearingstelle –Germany)
Strategy Groups – Great Britain, Plan N –Germany)
continuous contact
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Steps at European level – Improve Communication
Action at European level:
RES-Integration
Process
• Opportunities for communication at early stage of process
Platform
• Communication platforms (Electricity Networks Strategy
Direct link
• Permanent representation of stakeholder groups for continuous
Legal definitions
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process• Central bodies
providing out-of-court decisions (EEG Clearingstelle –Germany)
Strategy Groups – Great Britain, Plan N –Germany)
continuous contact
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Steps at European level – Improve Communication
Action at European level:
RES-Integration
Process
• Opportunities for communication at early stage of process
Platform
• Communication platforms (Electricity Networks Strategy
Direct link
• Permanent representation of stakeholder groups for continuous
Support initiatives
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process• Central bodies
providing out-of-court decisions (EEG Clearingstelle –Germany)
Strategy Groups – Great Britain, Plan N –Germany)
continuous contact
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Steps at European level – Improve Communication
Action at European level:
RES-Integration
Process
• Opportunities for communication at early stage of process
Platform
• Communication platforms (Electricity Networks Strategy
Direct link
• Permanent representation of stakeholder groups for continuous
Encourage actions
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process• Central bodies
providing out-of-court decisions (EEG Clearingstelle –Germany)
Strategy Groups – Great Britain, Plan N –Germany)
continuous contact
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Grid development – Barrier Analysis
• Mismatch between
incentive regulation
that aims at cost
reduction and network
extension needed for
RES-E development
Lack of incentives & regulatory instruments for the grid operator to integrate RES-E
RES-Integration
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RES-E development
that leads to higher
costs
• Particular problem at
DSO level in case of
DSOs in large and
uninhabitated areas
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Steps at European level – General guidelines
Lack of incentives or regulatory instruments for gr id development
RES-Integration
Increase investment security for grid development
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Steps at European level – Increase investment securi ty
Concrete Steps:
RES-Integration
RES-E integration considered by
regulation
• Provide priority premiums for projects supporting
Financing
• Financial assistance for investments in large projects of
Modalities
• Decrease minimum limits of eligible costs for
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supporting integration of RES-E
• Improve deadlines through carrot-for-less-and-stick-for-more-solution
large projects of grid operators, where required
for reimbursement
• Allow for reimbursement of staff costs and IT investments
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Steps at European level – Increase investment securi ty
Actions at European level:
RES-Integration
RES-E integration considered by
regulation
• Provide priority premiums for projects supporting
Financing
• Financial assistance for investments in large projects of
Modalities
• Decrease minimum limits of eligible costs for
European projects
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supporting integration of RES-E
• Improve deadlines through carrot-for-less-and-stick-for-more-solution
large projects of grid operators, where required
for reimbursement
• Allow for reimbursement of staff costs and IT investments
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Steps at European level – Increase investment securi ty
Actions at European level:
RES-Integration
RES-E integration considered by
regulation
• Provide priority premiums for projects supporting
Financing
• Financial assistance for investments in large projects of
Modalities
• Decrease minimum limits of eligible costs for
Encourage or harmonise
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supporting integration of RES-E
• Improve deadlines through carrot-for-less-and-stick-for-more-solution
large projects of grid operators, where required
for reimbursement
• Allow for reimbursement of staff costs and IT investments
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Steps at European level – Increase investment securi ty
Actions at European level:
RES-Integration
RES-E integration considered by
regulation
• Provide priority premiums for projects supporting
Financing
• Financial assistance for investments in large projects of
Modalities
• Decrease minimum limits of eligible costs for
Encourage or harmonise
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supporting integration of RES-E
• Improve deadlines through carrot-for-less-and-stick-for-more-solution
large projects of grid operators, where required
for reimbursement
• Allow for reimbursement of staff costs and IT investments
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Grid Connection – Barrier Analysis
• Time the plant
operator needs to wait
before connection to
the grid and feeding of
electricity in the grid
• Strongest category
Long lead times / inefficient procedures – development phase
RES-Integration
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• Strongest category
assessed throughout
the EU 27 Member
States
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Steps at European level – General guidelines
Long lead times and complex procedures
RES-Integration
Increase efficiency of grid development process
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Steps at European level – Increase efficiency
Concrete Steps:
RES-Integration
Analysis
• Identification of existing inefficiencies
Organisation
• Shift of workload to private actors
Processes
• Fast-track procedure for specific
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inefficiencies private actors• Harmonisation
and simplification of requirements
specific projects
• One-stop-shop procedure
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Steps at European level – Increase efficiency RES-Integration
Analysis
• Identification of existing inefficiencies
Organisation
• Shift of workload to private actors
Processes
• Fast-trackprocedure for specific
European projects
Action at European level:
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inefficiencies private actors• Harmonisation
and simplification of requirements
specific projects
• One-stop-shop procedure
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Steps at European level – Increase efficiency RES-Integration
Analysis
• Identification of existing inefficiencies
Organisation
• Shift of workload to private actors
Processes
• Fast-trackprocedure for specific
Encourage or harmonise
Action at European level:
44
inefficiencies private actors• Harmonisation
and simplification of requirements
specific projects
• One-stop-shop procedure
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Steps at European level – Increase efficiency RES-Integration
Analysis
• Identification of existing inefficiencies
Organisation
• Shift of workload to private actors
Processes
• Fast-trackprocedure for specific
Action at European level:
Encourage or harmonise
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inefficiencies private actors• Harmonisation
and simplification of requirements
specific projects
• One-stop-shop procedure
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NREAP assessment
Considerations on NREAP assessment
RES-Integration
MS were not aware of barriers
• Enhance information flow in MS• monitoring
MS had no interest in sharing
barrier
• Convince MS that it is them who mainly benefit from the
Categories of NREAP template
not suitable
• Widen the scope of the NREAP template and supplement it by
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• monitoring mechanism
• collection of interviews
• „suggestion box“
benefit from the NREAP process
• Provide the Commission with sufficient information to base its findings on own sources
supplement it by open questions
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Conclusion
• Grid connection as very critical phase for integrat ion
• Very strong link between connection and development phase
•
Summary of main findings
RES-Integration
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• Grid operation presently no serious issue, but pote ntially in the future
• Grid development suffers quite strong lack of regul atory instruments
• NREAPs mainly do not address the barriers identifie d in this study
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Financial Advisory Strategy Consulting Market IntelligencePolicy Consulting