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The Energy Community C hrissa Argyriou – European Commission – DG Transport and Energy Electricity and Gas e-mail: [email protected]. - PowerPoint PPT Presentation
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The Energy Community
Chrissa Argyriou – European Commission – DG Transport and Energy
Electricity and Gase-mail: [email protected]
The Energy Community Treaty was signed on October 25
Key issues included in the Treaty: acquis on electricity and gas, renewable, environment, competition
EU Diversity of Supply Management?(could this be a 2020 aspiration?)
10-20%
10%
Russia
Caspian/Middle East
EU
Nth. African
LNG
Norway/Netherlands
4th Supply Corridor from 80 to 100 bcmarequires about 4 - 20 bcma lines (incl. LNG),
10-15%
Existing infrastructure 4th Corridor requirement LNG requirement
LNGto 100-150 bcma
27.5%
Blue Stream 16 bcma
Russia West 1&2 15 bcma
Ukraine 5 linesTotal 140 bcma
EuroPol 20 bcma
CAC 80 bcma- 5 lines
Norway lines 93 bcma plus50 Bcma Netherlands supply
10-15%
2 lines total 31 bcma expansion +10 bcma
27.5%
Table below summarised infrastructure required as Europe gas market growth from 520 bcma in 2003 to 830 bcma in 2025Given supply diversity indicated
EU market 2025 Bcma Existing pipe Add capacity Total CostSources capture % capacity Bcma required Bcma USD bn
Russia 27.5% 228 190 38 4
North Sea 27.5% 228 93 Nor+50 Neth 85 52 case 2x20 bcma+use UK lines 2.5
4th Corridor 10% 83 0 15
Algeria 15% 125 30+10 expansion 85 2.6
LNG 10% 83 35 48 2Total 90% 747 256 31.1
Add Capacity Required
8-off 6 bcma regas terminals
2x20 bcma lines, 2000 km
4x20 bcma lines
1 case 4x20 bcma from Norway
4x20 bcma lines, 650 km
Gas Realities in South East Europe
• Market in region too small• SECI Gas Study: develop market as
ancillary market to supplying EU market• World Bank ECN Study: Delivered gas
prices in SEE competitive• So, TPA reservation for provision of EU
market and contestable local market using TPA on exiting and new local infrastructure
Mechanism for Operation of Network Energy Markets
• Outputs for 2005
Protocol on Gas Transmission and Investments
Guidelines for Gas Infrastructure Investment Regulation (GIIR) in Energy Community
Protocol on Gas Transmission and Investments
• Protocol to Athens Memorandum 2003• Title III Measure when Treaty comes into force• Principles:
– Harmonisation between Regulators and TSOs of Guidelines for Gas Infrastructure Investment Regulation (GIIR) in Energy Community
– Limited possibility for revision and not subject to regulatory policy change
– Concerted Application of Art 22 exemptions– Favour new sources of supply
Regulated Asset Base
• Minimum harmonised principles
• Risk-Return Relationship
• Risk on investors not on local market
Guidelines for Gas Infrastructure Investment Regulation (GIIR) in Energy Community
• Stability and single regulatory process• Discrimination between existing and new?• Respect of the position of small shippers and
new entrants• Unbundled regime• Use it or lose it• TPA on existing bulk transition lines –
relationship with dominant flows• Level playing fields for new investments
Activation of Gas Regulatory Group
• Agreed at last Ministerial
• Meet at early stage under aegis of Commission
• First Draft of Guidelines for Gas Infrastructure Investment Regulation (GIIR) in Energy Community
Chairman: Michael Caramanis, RAE
Next steps (1)• Updated Gas Transition Strategy
• WB launch of Gas economics study and APL gas fund, based on country action plans and transit potential
• Gas Forum in 2006
Next steps (2)
• Adoption of the gas transition strategy paper by PHLG in 2006
• Consensus on Guidelines for Gas Infrastructure Investment Regulation (GIIR) in Energy Community at Forum and then PHLG