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Institute for Advanced Sustainability Studies e.V.Title 1 Institute for Advanced Sustainability Studies IASS in Potsdam Perspectives on EU Cooperation to Facilitate 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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Institute for Advanced Sustainability Studies e.V.Title 2 Completing internal market for energy: EU-driven Process 3rd liberalization package, unbundling etc Common development of rules & infrastructures (mainly networks): ACER, ENTSO-E, facility „Connecting Europe“ Climate goals & energy transitions: nationally driven processes EU-targets (RE-deployment, emission reduction) but… National RE-support schemes National integratin of RE National backup capacity definition … European Energy & Climate Policy: So far Unconnected…
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Institute for Advanced Sustainability Studies e.V.Title 3 Different National Circumstances… Energy policy still perceived as “national matter“ Different strategies, priorities etc. Different geographical, social etc. conditions Different attitudes towards energy transition issue …Even Though it is Mutually Conducive …but Similar Challenges Significantly Rising RE-shares necessary Need carbon-free electricity system for long-term climate goals 50-55% RE-share; even with large Nuclear- and CCS-deployment Up to 100% RE-share if (re)deployment of Nuclear and CCS fail… Variable RE (onshore wind & PV) competitive already (full cost basis) Uneven distribution of RE-resources (first-best locations for solar in South, for wind in coastal regions) Rising interdependies with internal electricity market
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Institute for Advanced Sustainability Studies e.V.Title 4 Cooperation is beneficial… RE-deployment: need to exploit first-best locations network extensions: need for better connectivity to cope with variability reap the benefits of internal electricity market The Case for Cooperation …in particular between the European North and South Solar applications in the South Economic crisis: lack of finance in the South; investment way behind potential Coalition of front-runners: RE-capacities & infrastructures
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Institute for Advanced Sustainability Studies e.V.Title 5 Dedicated RE-Cooperation Mechanismen of RE-Directive Hardly Used Statistical transfers: bilateral trade of RE-quota Joint projects: RE production on one MS‘s territiory counted towards another MS‘s quota Joint support schemes: MSs coordinate support schemes North-South Cooperation: RE-Capacities Open Questions (RE-specific) Allocation: who gets additional RE production? RE-targets: Are they stringent enough?
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Institute for Advanced Sustainability Studies e.V.Title 6 Ongoing process Priority corridors, projects of common interests (PCI) Facility “Connecting Europe“ PCI-support programme 2014-2020 (5,85 bill. EUR) First tender running (750 mill. EUR), will close Aug 2014 Default allocation: Each MS bears costs of projects on own territory North-South Cooperation: Downstream Infrastructures Scope for Increased Cooperation Co-investment / Co-finance of PCI irrespective of national boundaries Focus on PCI where MS do not receive facility-contributions Examples Greece: part of ‘NSI East Electricity‘, 8 PCI Spain: part of ‘NSI West Electricity‘, 4 PCI
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Institute for Advanced Sustainability Studies e.V.Title 7 Scale & Depth of Cooperation Investments of supporting member state or just framework setting? Unvavorable Investment Climate Low-interest credits via promotional banks? Take over default risks? Actual investment and project management National tender for RE-production? National tender for PCI in line with facility? Experience / best practice Norwegian / Swedish cooperation in quota schemes? Italy, Portugal, UK schemes? Kyoto Protocol Mechanisms (CDM & JI)? Public-Private Partnerships (PPP)? North-South Cooperation: Open Questions (RE & Infra)
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Institute for Advanced Sustainability Studies e.V.Title 8 EU North-South Cooperation… Can be started by frontrunners (no need to wait for 28) Combines to parallel but mutually conducive processes Supports EU member states‘ climate goals Supports economic recovery Sends positive signal for Paris 2015 Summary / Final thoughts
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Institute for Advanced Sustainability Studies e.V.Title 9 Thank You for Your Attention!
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Institute for Advanced Sustainability Studies e.V.Title 10 Contact Institute for Advanced Sustainability Studies e.V. Berliner Straße 130 D – 14467 Potsdam Web: www.iass-potsdam.dewww.iass-potsdam.de Dr. Patrick Matschoss Research Scientist patrick.matschoss@iass-potsdam.de
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