3 borko raicevic en c sustainable energy, december 2013

Energy Community SecretariatEnergy Community Secretariat

UN Sub-Regional Conference on Sustainable Energy in South East Europe

9 – 10 December 2013, Zagreb, Croatia

PROMOTION OF SUSTAINABLE ENERGY IN THE ENERGY COMMUNITY

Energy Community SecretariatEnergy Community Secretariat 2Sustainable Energy in SEE

CONTENT

ENERGY COMMUNITY TREATY

THE COMMON LEGAL FRAMEWORK

EE AND RES:

DIRECTIVES, REQUIREMENTS, TARGETS

ACTIVITIES


SIGNED IN 2005, ENTERED INTO FORCE IN 2006

EXTENDS THE EU INTERNAL ENERGY MARKET TO SOUTH EAST EUROPE AND BEYOND

TO CREATE A SINGLE AND STABLE REGULATORY SPACE AND STABLE MARKET TO ATTRACT INVESTMENTS

TIES THE CONTRACTING PARTIES TOGETHER WITH THE EUROPEAN UNION

CONTRIBUTES TO SECURITY OF SUPPLY IN WIDER EUROPE

MEANS: APPLICATION OF THE EU ACQUIS RELATED TO ENERGY, INCLUDING ALSO: PROMOTION OF INVESTMENTS, SOCIAL ASPECTS, ENERGY STATISTICS, SUSTAINABILITY ETC.

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ENERGY COMMUNITY TREATY


ENERGY COMMUNITY PARTIES : • EU/ European Commission • 8 Contracting Parties• 1 Candidate • 3 Observers• 15 Participants

DYNAMIC PROCESS: • 01/01/2007 BG + RO joined EU• 01/05/2010 MD became a

member of EC• 01/02/2011 UA became member

of EC• 01/07/2013 HR joined EU

Energy Community SecretariatEnergy Community Secretariat

INSTITUTIONS: ‒ Ministerial Council (MC)‒ Permanent High Level Group (PHLG)‒ Regulatory Board (ECRB) ‒ Secretariat (ECS)

WORKING GROUPS, TASK FORCES:- Energy Efficiency, Environment,

Regional Energy Strategy

FORUMS:

- Electricity, Gas, Oil, Social

ENERGY COMMUNITY

Sustainable Energy in SEE


► Gas (Third package) (3 Directives, 2 Regulations)

► Electricity (Third package) (2 Directives, 3 Regulations)

► Environment (3 Directives)

► Competition (some provisions of the Treaty)

► Renewable energy sources (RES Directive)

► Energy efficiency (7 Directives, 5 Regulations)

► Antitrust and state aid (some provisions of the Treaty)

► Statistics (1 Directive, 1 Regulation)

► Oil (1 Directive)

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THE COMMON LEGAL FRAMEWORK


PROGRESS IN IMPLEMENTATION

ANNUAL IMPLEMENTATION REPORT 2013

1. Regional Overview

2. Status in Contracting Parties

3. Progress made in 2012/2013

4. State of compliance

5. Conclusions and key priorities

http://www.energy-community.org/portal/page/portal/ENC_HOME/AREAS_OF_WORK/Implementation/Report

http://www.energy-community.org/portal/page/portal/ENC_HOME/AREAS_OF_WORK/Implementation/Report


EU 20-20-20 TARGET

Source: EU DG ENER


Energy self sufficiency (2011)

Albania BiH

Croatia

Kosovo

*

FYR Mac

edonia

Moldov

a

Monten

egro

Serbia

Ukraine EU

0%

20%

40%

60%

80%

100%

68% 65%

45%

71%

57%

4%

67% 69% 68%

49%

Self sufficinecy

ENERGY INDICATORS

* Source IEA

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


Energy intensity in 2011 (toe per 1000 USD – 2005)

Albania BiH

Croatia

Kosovo

*

FYR Mac

edonia

Moldova

Monten

egro

Serbia

Ukraine EU

0.00

0.20

0.40

0.60

0.80

1.00

1.20

1.40

0.20

0.54

0.18

0.500.43

0.89

0.41

0.57

1.33

0.110.17

0.260.15

0.26 0.27

0.63

0.280.34

0.80

0.08

TPES/GDPTFEC/GDP

ENERGY INDICATORS

* Source IEA

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


RENEWABLE ENERGY ACQUIS

18 October 2012 - Ministerial Council Decision on the adoption of the new RES Directive in the Energy Community – D2012/04/MC-EnChttp://www.energy-community.org/pls/portal/docs/1766219.PDF

Amending Article 20 of Energy Community Treaty

Implementation of Directive 2009/28/EC in the Contracting Parties

- Implementation deadline – 1 January 2014

Submission of NREAP – 30 June 2013

11

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

Energy Community SecretariatEnergy Community Secretariat 12Sustainable Energy in SEE 12

2020 RES TARGETS

UKRAINE

SERBIA

MONTENEGRO

MOLDOVA

KOSOVO*

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%

5.5%

21.2%

26.3%

11.9%

18.9%

21.9%

12.6%

34.0%

31.2%

11%

27%

33%

17%

25%

28%

20%

40,0%

38%

RES Share 2009 2020 RES target

* Throughout the entire document, 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.


Energy Community Strategy and PECIs

A Strategy paper endorsed by the Ministerial Council in October 2012, and

List of Projects of Energy Community Interest (endorsed in October 2013)

projects which have the highest positive impact in the largest possible number of Contracting Parties

14 electricity generation projects 9 electricity infrastructure 10 gas infrastructure 2 oil infrastructure

http://www.energy-community.org/portal/page/portal/ENC_HOME/AREAS_OF_WORK/Investments/PECIs

13

* PECIs WERE SELECTED BASED ON A COST BENEFIT ANALYSIS METHODOLOGY, FOLLOWING AN EXTENSIVE PUBLIC CONSULTATION. IF A PROJECT BREACHES THE ENERGY COMMUNITY ACQUIS OR NATIONAL LEGISLATION, OR AN ENVIRONMENTAL IMPACT ASSESSMENT HAS NOT BEEN PERFORMED PROPERLY, THE PECI LABEL MAY BE REMOVED.




PECIs – RES PROJECTS

14

Contracting Party

Generation capacitites Renewable Energy

Albania WPP Vajc-Velipoje

Albania HPP Skavica

BiH HPP Dabar

BiH + HR HPP Dubrovnik (Phase II)

BiH + RS 4 HPPs Upper Drina and 3 HPPs Midlle Drina

Montenegro HPP Lim

Serbia 10 HPPs Ibar River

Serbia 5 HPPs Velika Morava


ACQUIS ON ENERGY EFFICIENCY MINISTERIAL COUNCIL DECISIONS (Dec. 2009/Sep. 2010/Oct. 2011):

DIRECTIVE 2006/32/EC ON ENERGY END USE EFFICIENCY AND ENERGY SERVICES (ESD) - by 31 December 2011 (1st NEEAPs by 30 June 2010)

DIRECTIVE 2010/31/EU ON THE ENERGY PERFORMANCE OF BUILDINGS (EPBD) – RECAST DIRECTIVE 2002/91/EC - by 30 September 2012

DIRECTIVE 2010/30/EU ON LABELING OF ENERGY-RELATED PRODUCTS (RECAST DIRECTIVE 92/75/EEC) AND IMPLEMENTING DIRECTIVES/DELEGATED ACTS (ELD) – by 31 December 2011 / 31 December 2012


DIRECTIVE 2006/32/EC (ESD)Key directive for creation of overall framework for EE:

Indicative energy savings targets (min 9 % for the 9 years of implementation),

National Energy Efficiency Action Plans (NEEAPs)

Exemplary role of the public sector, EE criteria in public procurement,

Improvement of end-users’ energy efficiency

Obligation of the energy companies,

Intelligent metering systems,

Innovative EE financial instruments,

Energy auditing system,

Procedures for monitoring and verification of energy savings , etc.

Key transposition approaches: preparation of general EE law or extensive chapter in energy law + changes in procurement law + package of secondary legislation

NEEAPs (based on the template)


DIRECTIVE 2010/31/EU (EPBD)Focused on EE improvements in building stock:

Methodology for calculating the integrated energy performance of buildings,

Minimum EP requirements for new and existing buildings, building units and technical building systems,

Certification of buildings,

Financial incentives,

Regular inspection of heating and air-conditioning systems,

“Nearly zero-energy buildings” - concept and plans.

Key transposition approaches: amendments of the law for buildings + certain provisions in EE law + package of secondary legislation and standards


DIRECTIVE 2010/30/EU (ELD)Labels help consumers choosing energy efficient product.

Framework Directive establishes the legal framework for labelling and consumer information regarding energy consumption for energy-related products:

Obligations for dealers and suppliers,

Public procurement ,

Conditions for distance selling, etc.

The delegated regulations deal with the labelling of specific energy-related products:

Tumble driers, air conditioners, dishwashers, refrigerators, washing machines, TVs…

Key transposition approaches: Basic provisions in EE Law (framework directive) + Technical Regulations for Energy Labelling + standards


IMPLEMENTATION RODAMAPSUPDATED ROAD MAP

STRUCTURE

I. DIRECTIVE 2006/32/EC ON ENERGY END USE

EFFICIENCY AND ENERGY SERVICES

II. DIRECTIVE 2010/31/EUON THE ENERGY PERFORMANCE

OF BUILDINGS

III. DIRECTIVE 2010/30/EUON LABELING OF ENERGY-

RELATED PRODUCTS

Energy savings targets

Promotion of energy end use efficiency and

energy services

Definitions and methodology

Energy performance requirements

Energy performance certificate

Inspection of heating and air-conditioning

systems

Information and penalties

Scope and Definitions

Establishing the framework

Implementing Directives/Delegated

Acts

RM – REPORTING OBLIGATIONS: • Status of transposition• Responsible institution(s)• Intermediate milestones (planned

actions and date)• Overall deadline for implementation –

defined(MC Decisions)

ROADMAP TEMPLATE PREPARED IN JANUARY 2011 by ECS!

National roadmaps prepared by March 2011

Available at EnC web-site


EU - NEW EE DIRECTIVE 2012/27/EU EU – ADOPTED IN NOVEMBER 2012, TRANSPOSITION BY JUNE 2014

TO ENSURE THE ACHIEVEMENT OF THE EU 2020 20 % TARGET ON EE

MORE COMPREHENSIVE NEEAPS >> DEMAND AND SUPPLY SIDE

STRICTER MEASURES: public sector, energy audits, energy management, EE obligation schemes ..

ENERGY COMMUNITY APPROACH:

RECOMMENDATIONS IN 2013 (VOLUNTARY APPROACH)

ASSESSMENT OF THE IMPACT OF THE DIRECTIVE 2012/27/EU, IF ADOPTED BY CPs (2013-2014)

ADOPTION IN 2014 (UPON DECISION OF MC)

Energy Community SecretariatEnergy Community Secretariat 21

ENERGY COMMUNITYEE ACTIVITIES


EETF (2008-2012) - key activities:EE directives: roadmap development, exchange of experiences and best practices, progress reports,NEEAPs: development, monitoring of implementation, evaluation of savings,Promotion of availability of information and alternative financing mechanisms for EE, capacity building,Update on support programmes, coordination,Analysis of the impact of the new EU EE acquis

ECS assistance: direct, studies (on energy efficiency in buildings, new EE Directive etc.)Strong donor’s support (EU/EC, GIZ, EBRD, WB, USAID, bilateral TA projects )Work on regional level: EE COORDINATION GROUP


EXAMPLE – NEEAP DEVELOPMENT PROCESS

NEEAPs

o 1st NEEAP by June 2010: 9% target for 2018o 2nd NEEAP by June 2013 (in progress)

Financing options for NEEAPs

Integrated Monitoring and Verification Platform (MVP) for Energy Efficiency Action Plans Implementation , GIZ ORF-EE

Capital Cities network, joint development of SEAPs (“Covenant of Mayors”) and implementation of EE projects

Awareness raising campaigns

Energy services market support (ESCO, TPF) + EPBD + Procurement - EBRD/EU REEP



ONGOING ACTIVITIESEECG WORK PROGRAMME 2013 – 2014

2nd NEEAP >> development, monitoring

Public Sector EE Procurement >> review, identify good practices, disseminate results

ESCOs and energy services >> secondary legislation, good practices and dissemination

Funds and financing for energy efficiency >> mapping, analysis and dissemination

Energy performance requirements/ cost- optimal level >> methodologies and software, calculation

Certification of buildings and inspections of systems >> Coordinated development of certification scheme and National Control Systems

Support schemes for renovation of buildings/ use of EPC/ESCOs >> existing schemes and recommendations

Energy labeling >> development of by-laws, analysis of new EU regulation, market surveillance practices


CONTRACTING PARTIES - COMMON CHARACTERISTICS AND BARRIERS• High potential for EE and RES, especially hydro, biomass, wind, solar

• Many existing barriers to are still slowing down the implementation of EE and RES policies. New legislation, but real implementation is still a challenge.

• The vast investment needs for major retrofit, and new power plants

• CPs are facing more barriers to financing energy efficiency than EU Member States (economic structure, public budget constraints, lower income etc). Severe effect of economic and financial crisis - substantially reducing economic growth rates, decreasing investment and increasing poverty rates, increase of public debt and the general financial insolvency of the public sector

• Low electricity prices, well below cost recovery level, especially for residential consumers

• Lack of information, skills and practical knowledge of both the providers and the end users of services (too good to be true symptom!!!)

• Need for a strengthened regional cooperation



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www.energy-community.org

Thank you for your attention!

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Technology

3 borko raicevic en c sustainable energy, december 2013