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Perspectives on EU Cooperation to F acilitate European Energy Transitions

Perspectives on EU Cooperation to F acilitate European Energy Transitions. Dr. Patrick Matschoss, with the Collaboration of Prof. Klaus Töpfer & Dr. Armin Haas „Innovative Solutions for Climate Finance , the Energy Transition and an EU Narrative “, CIRED, Paris 8-9 July 2014.

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Perspectives on EU Cooperation to F acilitate European Energy Transitions

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  1. Perspectives on EU CooperationtoFacilitate European Energy Transitions Dr. Patrick Matschoss, withtheCollaborationof Prof. Klaus Töpfer & Dr. Armin Haas „Innovative Solutions forClimateFinance, the Energy Transition and an EU Narrative“, CIRED, Paris 8-9 July 2014

  2. European Energy & ClimatePolicy: So farUnconnected… • Climategoals& energytransitions: nationallydrivenprocesses • EU-targets (RE-deployment, emissionreduction) but… • National RE-support schemes • National integratinofRE • National backupcapacitydefinition • … • Completinginternalmarketforenergy: EU-drivenProcess • 3rd liberalizationpackage, unbundlingetc • Common developmentofrules & infrastructures (mainlynetworks): ACER, ENTSO-E, facility „Connecting Europe“

  3. …Even ThoughitisMutuallyConducive Different National Circumstances… • Energy policy still perceivedas“national matter“ • Different strategies, priorities etc. • Different geographical, social etc. conditions • Different attitudestowardsenergytransitionissue …but SimilarChallenges • SignificantlyRising RE-shares necessary • Need carbon-freeelectricitysystemforlong-term climategoals • 50-55% RE-share; evenwith large Nuclear- and CCS-deployment • Upto 100% RE-share if (re)deploymentofNuclearand CCS fail… • Variable RE (onshore wind & PV) competitivealready (fullcostbasis) • Unevendistributionof RE-resources(first-best locationsforsolar in South, for wind in coastalregions) • Risinginterdependieswithinternalelectricitymarket

  4. The Case forCooperation Cooperationisbeneficial… • RE-deployment: needtoexploit first-best locations • networkextensions: needforbetterconnectivityto • copewithvariability • reapthebenefitsofinternalelectricitymarket …in particularbetweenthe European North and South • Solar applications in the South • Economiccrisis: lack offinance in the South; investmentwaybehind potential • Coalitionof front-runners: RE-capacities & infrastructures

  5. North-South Cooperation: RE-Capacities Dedicated RE-Cooperation Mechanismen of RE-DirectiveHardlyUsed • Statistical transfers: bilateral tradeof RE-quota • Joint projects: RE production on oneMS‘sterritiorycountedtowardsanotherMS‘squota • Joint supportschemes: MSs coordinatesupportschemes Open Questions (RE-specific) • Allocation: whogets additional RE production? • RE-targets: Are they stringent enough?

  6. North-South Cooperation: Downstream Infrastructures Ongoingprocess • Prioritycorridors, projectsofcommoninterests(PCI) • Facility “Connecting Europe“ • PCI-support programme 2014-2020 (5,85 bill. EUR) • First tenderrunning (750 mill. EUR), will close Aug 2014 • Default allocation: Each MS bearscostsofprojects on ownterritory ScopeforIncreasedCooperation • Co-investment / Co-financeof PCI irrespectiveof national boundaries • Focus on PCI where MS do not receivefacility-contributions • Examples • Greece: partof‘NSI East Electricity‘, 8 PCI • Spain: partof‘NSI West Electricity‘, 4 PCI

  7. North-South Cooperation: Open Questions (RE & Infra) Scale& DepthofCooperation • Investments ofsupportingmemberstateor just frameworksetting? Unvavorable Investment Climate • Low-interestcredits via promotionalbanks? • Take overdefaultrisks? Actualinvestmentandprojectmanagement • National tenderfor RE-production? • National tenderfor PCI in linewithfacility? Experience / bestpractice • Norwegian / Swedishcooperation in quotaschemes? Italy, Portugal, UK schemes? • Kyoto Protocol Mechanisms (CDM & JI)? • Public-Private Partnerships (PPP)?

  8. Summary / Final thoughts EU North-South Cooperation… • Can bestartedbyfrontrunners (noneedtowaitfor 28) • Combinesto parallel but mutuallyconduciveprocesses • Supports EU memberstates‘ climategoals • Supports economicrecovery • Sends positive signalfor Paris 2015

  9. ThankYouforYour Attention!

  10. Contact Dr. Patrick Matschoss Research Scientist patrick.matschoss@iass-potsdam.de Institute forAdvancedSustainability Studies e.V.Berliner Straße 130D – 14467 PotsdamWeb: www.iass-potsdam.de

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