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

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…

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

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

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?

Institute for Advanced Sustainability Studies e.V.Title 6 Ongoing process  Priority corridors, projects of common interests (PCI)  Facility “Connecting Europe“  PCI-support programme (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

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)

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

Institute for Advanced Sustainability Studies e.V.Title 9 Thank You for Your Attention!

Institute for Advanced Sustainability Studies e.V.Title 10 Contact Institute for Advanced Sustainability Studies e.V. Berliner Straße 130 D – Potsdam Web: Dr. Patrick Matschoss Research Scientist