Ljubljana 19 May 2014

Prof. Jean-Michel Glachant

Director Florence School of Regulation

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European frame for internal cooperation

• A single energy market: free entry -eligible consumers – infrastructure TPA + Unbundling – TPA Exemptions- EU Grid Codes – EU TYNDP

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• A single Competition Policy: exclusive competence DG –against National Regulators

• Common Trade Border: tariffs and non tariff barriers – vs - Investment projects & Supply contracts

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• External Relations: if countries agree one voice abroad – vs- mute if not single one

• Renewables Policy: If countries agree (Berlin 2007) One 20-20-20 in 2020 –vs If not no policy after 2020 – vs State Aid “Competition coup” EU Court & DG COMP RES guidelines

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• SOS Policy: (Lisbon Treaty 2007) if countries agree– 2009 Gas Regulation –Vs No Power Regulation –PCIs & Infrastructure Package 2013-Beyond?

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European frame for external cooperation

• All EU internal market: (except Agriculture & Fisheries) “European Economic Area” (Norway; Switzerland)

• All EU Internal Energy Market: (only internal market)“Energy Community” (8 South-East countries / Turkey Observer) –

• EU Renewables Policy: ? Vs ??

• EU Security of Supply Policy: ? Vs ??

• EU Ad Hoc “Energy Charter” (1998): trade, transit, investment + Conflict Resolution (50 countries incl. Russia & Turkey) Full international treaty

• EU Ad Hoc : “Stabilization & Association Process” (countries Balkans) – ? Vs ??

• EU Ad Hoc : “Neighborhood Policy” (6 ex-SSSR countries + 10 Mediterranean) – ? Vs ??

• EU Ad Hoc : “Common Spaces” (Russia) – ? Vs ??

• EU Ad Hoc : “Africa- EU energy partnership” (energy + development) – ? Vs ??

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External cooperation & EU Security of Supply

• (EC: Trade tariffs & barriers) vs (MS: Investment Projects & Supply Contracts)

• Infrastructures TPA & Unbundling // Exemptions

• Long Term Supply Contracts & Destination Clauses // Internal Market & Competition Policy

• Mergers & Acquisitions; subsidiaries; cross-shareholding // Internal Market & Competition Policy + Energy Charter or Association Agreement

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¤ >> COMMISSION has mainly VETO POWERS; limited positive powers = bargaining

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¤ SUPPLY CONTRACTS and M&As //

¤ EXTERNAL – INTERNAL INFRASTRUCTURES (Nabucco) 10bn Eur & 30bn M3

North Stream 6bn Eur & 60bn M3 (Germany – NL – Fr)

South Stream 9bn Eur & 60bn M3 (Italy – Fr)

TAP 10 to 20bn M3 (BP / Italy & Greece)

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External cooperation & EU Renewables

• (EC: RES Directive) vs (MS: Investment Projects & Supply Contracts)

• RES Directive article 9: IF RES is imported and consumed inside the EU

= External (Certification; Measurement; traceability : Transport & Transit )

+ Internal (Cross-border capacity allocation; congestion mechanism; nomination & balancing)

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• Infrastructures TPA & Unbundling // Exemptions

• Long Term Supply Contracts & Renewables Support Schemes // Internal Market & Competition Policy

• Mergers & Acquisitions; subsidiaries; cross-shareholding // Internal Market & Competition Policy + Energy Charter or Association Agreement

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¤ >> COMMISSION has mainly VETO POWERS

¤ No country implementation yet (as far as I know)

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Conclusions: single voice from two angels…

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Thank you for your attention Email contact: jean-michel.glachant@eui.eu Follow me on Twitter: @JMGlachant Read the Journal I am chief-editor of: EEEP “Economics of Energy & Environmental Policy”

My web site: http://www.florence-school.eu