Pentalateral Energy Forum Together for an offshore grid

1. Pentalateral Energy ForumTogether for an offshore grid European Offshore Wind Conference 2009 Session: Offshore grid planning and operation (14.09.2009) Philippe Detheux Cabinet of Paul MAGNETTE, Minister for Climate and Energy Belgium

2. General Context • Energy-Climate package : sustainability, security of supply and access at affordable prices • Implementation of RES Directive • Role of wind in reaching the 20 % target • Major part of offshore wind will happen in the North SEA

3. Examples of challenges Technical Market Regulatory Policy • Onshore bottlenecks • Technology • Cost of technology • Planning uncertainties • Risk & financing • Different legislations • Permitting procedures • Unsynchronized legislation • Conflicts of interest with other uses of the marine environment

4. From Nations to a Common vision for the North sea • Coordination in the development of offshore wind farms and interconnection will help : • Increasing Security of supply • Organising spatial smoothing of wind power • Introducing flexibility: reservoir hydropower in Norway • Bypassing onshore electricity transmission bottlenecks • Improving investment environment

5. Ongoing initiatives towards coordination • SERII : Blueprint for a North Sea offshore grid • EU Coordinator M. Adamowitsch • ENTSO-E working group on the North Sea • Electricity Regional Initiative for Regulators • Recovery plan • And… Pentalateral energy forum initiative !

6. What is the PLEF? PLEF is a lab towards one common and fully integrated European Energy Market The Pentalateral Energy Forum (PLEF) is : • Intergovernmental initiative : Benelux, France and Germany + European Commission • Started in June 2007 to address market coupling and security of supply • Regulators, TSO’s

7. PLEF can make the difference • Added value of Pentalateral Energy Forum • Existing framework for predicting and planning needed investments (penta working groups  Support Group 2) • Provide/ensure a common political basis on offshore infrastructure development • From national to a regional/European approach • Input to the Blueprint and support to European Coordinator The offshore story didn’t start with PLEF and it will not end with PLEF, but PLEF will be part of this story !

8. Background • Jan – Dec 2008 :SG 2 point out the importance of large scale offshore wind energy production. • 8 December 2008 : Ministers requested SG 2 to “start a discussion about the integration of a possible offshore wind network in the North Sea” • 28 April 2009 : SG 2 agrees to work on the basis of a working plan proposal distributed by the Belgian delegation. • 12 June 2009 : Ministers set as an objective the “Development of a working plan for an Offshore Grid”

9. Way forward (1/3) • Issues to deal with: • added value of the PLEF initiative • stakeholders • geographical scope • content and timing • Procedure: • mandate given to Heads of energy national administration (DG’s) • coordination by the SG2 • Deliverables : Political declaration / Working plan / MOU’s with Stakeholders • Timing : 1. Status report on the work in progress (October 09) • 2. Political Agreement in the next ministerial meeting (December 09)

10. Way forward (2/2) • Content, Timing and Responsibilities : • Content : Planning, Technology, Market, Finance and Regulatory and Policy issues • Roles : Government, TSO’s and Regulators • Timing : deliveries step by step • Links with other North sea countries, Kriegers Flak experience, Adamowitsch coordinator and European Commission

11. To conclude • General philosophy of the approach • Ambitious • Pragmatic • Transparent • Dynamic, step by step

12. To illustrate (based on 3E graphs)

13. To illustrate (2/2)(based on 3E graphs)