The BETTER project Andreas Tuerk Dorian Frieden

The BETTER project Andreas Tuerk, Dorian Frieden

PROJECT PRESENTATION (1/2) ü BETTER: Bringing Europe and Third countries closer together through renewable Energies (BETTER); ü Intelligent Energy for Europe Programme, managed by the Executive Agency for Competitiveness and Innovation (EACI); ü Started: 1 st July 2012; ü Expected Completion Date: 1 st January 2015; ü Coordinator: CIEMAT, Madrid http: //better-project. net

PROJECT PRESENTATION (2/2) ü CIEMAT (Spain) Centro de Invest. Energ. Mediamb. Tecn ü DLR (Germany) Deutsches Zentrum Für Luft-und raumfahrt e. V ü ECN (Netherlands) Who we are Energy Research Centre of the Netherlands ü JOANNEUM (Austria) Forshungsgesellschaft Mbh ü NTUA (Greece) National Technical University of Athens ü OME (France) Observatoire Méditerranéen de l’Energie ü PIK (Germany) Postdam Institute for Climate Impact Research ü TUWIEN (Austria) Vienna University of Technology ü UNDP (International) United Nations Development Programme

BACKGROUND RES-Directive 2009/28/EC binding targets: • 20 % RES gross final consumption by 2020; • Nat. targets: flat rate approach adjusted to GDP. Cooperation mechanisms • allow MS to partially meet their national targets with RE from other countries • May reduce the overall costs to meet RES 20% European target • Statistical Transfers (Art 6) • Joint projects within MS (Art 7) and with 3 rd countries (Art 9) • Joint support schemes (Art. 11)

OBJECTIVES Assess, through case studies, involvement and integrated analysis: stakeholders • to what extent cooperation with third countries can help Europe achieve its RES targets in 2020 and beyond • trigger the deployment of RES electricity projects in third countries and • create synergies and win-win circumstances for all involved parties.

Case Studies Early movers?

METHODOLOGICAL FRAMEWORK (Green-X, HIREPs Models)

Modeling results include: • required power system and transmission grid adaptations and related costs • changes in the regional power prices and the daily power price profile due feed-in of the volatile wind and solar power • changes in the power system stability and supply security. consequences of the combined volatility of wind, solar and hydropower and the conventional power plants in the “EU plus third countries” region. • Evaluation of the benefits due to the increased flexibility and capability of the whole power system because of the added assets such as: – increased hydro power storage capacity, wind and solar from Turkey – North Africa offering anti-cyclic wind compared to Europe as well as solar thermal power plants which flexible and base load generation – The Balkan countries with their untapped RES potentials (incl. biomass, wind, solar, hydro) where an increased linkage to the EU may serve to close some of existing bottlenecks in forming an integrated European electricity market • Increased stability of power supply from wind and solar due to the enlarged regional coverage (“EU plus third countries”)

SWOT analyses for each country/region 2020 RES Szenarios Green-X: Costs Hi. REPs Macroeco nomic Effects Swot analysis Ecologicco-effects Design options, potentials, barriers

Specific aims • Identify cooperation potential with Third countries on macro-economic level, • identify specific design options and business cases, • give practical recommendations for implementation, • develop an action plan to foster RES energy production, transfer and use in the EU and third countries through cooperation mechanisms, • BETTER is a results/ action oriented project with a strong focus on stakeholder involvement

STAKEHOLDER INVOLVEMENT and AB Financial actors Kf. W, EBRD Private Investors and Project developers SHE Consulting, EEA, HEP, Suntrace Stakeholder’s Networks Policy makers DG-Ener officials Industry associations DII, , Estela, Protermosolar, etc Multilateral initatives Desertec, Medgrid, Medrec, GTZ; Uf. M International Organization IRENA Utilities Iberdrola, Verbund, Enerji. SA, etc NGO´s and civil society Renewables Grid Initiative National Authorities I. D. A. E, German Federal Ministry of Economics and Technology, etc Energy Regulators MEDREG TSO operators REE So far, more than 20 Lo. S have been received from different stakeholder categories

BETTER: applying a multi-level framework Macro level (prospects for international cooperation) Micro level (business cases) Acceptance level

Adoption of RES directive and RES targets in the West Balkan countries • The countries covered by the West Balkan case study will be eligible to make use of ü Statistical transfers ü Joint support schemes ü Joint projects between EU Member States and third countries requiring the physical transfer of the involved electricity.

Exploring the strategic options for West Balkan countries ü EE vs. RES expansion ü Likely surplus or shortfall? ü Domestic target achievement vs trade (Based on model results and qualitative assessments) ü Interim trading and/or target achievment ü Trading with the EU or within the region? ü Possible role and design of different cooperation mechanism with different pros and cons ü…

Embedding coop. mechanisms in the national framework Regulatory context • Network regulations • State aid provisions • Institutional context Existing or planned support framework • Feed-In tariffs, subsidies… • CDM • Nationally Appropriate Mitigation Actions (NAMAs) ->Which technologies should be exploited by which instrument?

Developing design options: Important issues • FIT, Market access, currency and yield risk • Institutional capacities, public acceptance • Cost-sharing and price considerations incl. grid expansion, energy sharing? , employment, environment…) • Delivery risk, timing

Developing design options: Important issues • Possible funding and implementation approaches selection of implementing company • Regulatory, legal and institutional aspects (monitoring, authorisation, verification, compensation…), oversight • tec transfer • transit compensation, grid access • Investment support

Combination with the CDM • Several renewable energy projects in the West Balkan countries are registered as CDM-projects • The combination of the CDM with the cooperation mechanisms for the same projects/investments may be limited due to specific requirements of the CDM, namely: o the additionally of the investment; o double counting More on our webpage: D 2. 3: Design options of the Cooperation Mechanisms and their Complementarity with different financing schemes http: //better-project. net

Stakehodoler dialogue 2013 2014

Stakehodoler dialogue • Bilateral meetings with gvts, investors, financing institutions, power companies, TSOs, NGOs… • Summer school in Foijnica, Bosnia • Workshop early next year discussing draft results

Outlook • Modeling results by autumn 2013 • Final results of the West Balkan case study in spring 2014