international co-operation of regulators energy regulators
TRANSCRIPT
International Co-operation of Regulators
Energy Regulators Regional Association (ERRA) Objectives
Renewable Support Schemes of ERRA Members
dr. Gábor Szörényi Chairman of ERRA
Banska Bystrica, 12 October, 2010
ERRA
Voluntary, not-for-profit organization of independent
energy regulatory bodies of the Central Eastern Europe
(CEE), South East Europe (SEE), the Commonwealth of
Independent States (CIS), Baltic States (Estonia, Latvia,
Lithuania) and Other Countries including (Jordan,
United Arab Emirates and Saudi Arabia)
Page 2Banska Bystrica, 12 October, 2010
What is ERRA:
dr. Gábor Szörényi, ERRA
ERRA Objectives
To improve national energy regulation in member countries and foster development of stable energy regulators with autonomy and authority → stable investment climate
To improve cooperation among Energy Regulators and facilitate the exchange of information, research, training and experience among members and other regulators around the world → harmonized regulatory framework → more chance for regional market building
Objectives:
Page 3Banska Bystrica, 12 October, 2010dr. Gábor Szörényi, ERRA
ERRA Members
Currently24 Full Members:
Albania, Armenia, Azerbaijan, Bosnia & Herzegovina, Bulgaria, Croatia, Estonia, Georgia, Hungary, Kazakhstan, Kyrgyz Republic, Latvia, Lithuania, Macedonia, Moldova, Mongolia, Montenegro, Poland, Romania, Russia, Serbia, Slovakia, Turkey, Ukraine
4 Associate Members:National Regulatory Authority for Municipal Services (Romania), UNMIK
Kosovo, Regulatory Commission for Electricity in BiH, Regulatory Commission for Energy of Republik of Srpska (BiH)
5 Affiliate Members:Electricity Regulatory Commission of Jordan, Regulation and Supervision Bureau of United Arab Emirates, Electricity & Co-Generation Regulatory Authority of Saudi Arabia, NARUC (USA), Nigerian Electricity Regulatory Commission (NERC)
ERRA Members:
Page 4Banska Bystrica, 12 October, 2010dr. Gábor Szörényi, ERRA
ERRA Main Activities
Standing Committees with detailed work plan and deliverables: Licensing/Competition Committee Tariff/Pricing Committee Legal Regulation Working Group Chairmen meetings
Deliverables: discussion papers, case studies, issue papers Energy Investment & Regulation Conference (since 2001) Technical Exchange Programs Peer Reviews Website (library – former papers as background material for
training and self-development) Tariff Database Newsletter Training programs
Page 7Banska Bystrica, 12 October, 2010dr. Gábor Szörényi, ERRA
• Monitoring Activities of Energy Regulatory Commissions
• Price Regulation & Tariffs
• Renewable Energy Regulation
• Electricity markets
• Introduction to the Regulation of Natural Gas Markets and District Heating
• Regulatory Information & Public Participation
• Introduction to Energy Regulation (ERRA Summer School)
• Training Course for New Commissioners
ERRA Training Courses
Page 8Banska Bystrica, 12 October, 2010dr. Gábor Szörényi, ERRA
Electricity Residential Prices (excluding taxes) for Q4 of 2009 in € cents/kWh [Tariff Database]
•9•2010.10.22.
Natural Gas End User Prices (excluding taxes) for Q4 of 2009 in €/GJ [Tariff Database]
•10•2010.10.22.
ERRA Training Courses
ERRA Trainings 2005 – June, 2010Total Number of Trained Participants from 2005 to
June 2010: 1,162• Number of employees from the ERRA Member
organizations: 792;• Commissioners: 62Advantages:• Lecturers: Present and/or former Regulators• Case studies, group work• Certified Energy Regulator Programme by ERRA
Page 11Banska Bystrica, 12 October, 2010
Programme
dr. Gábor Szörényi, ERRA
•12
Dates and Location:May 16- 17, 2011, Saint Petersburg
For references of past ERRA Energy Investment and Regulation Conferences please visit:
http://www.erranet.org/InvestmentConferences
You are welcome !
10TH ERRA INVESTMENT & ENERGY REGULATION CONFERENCE
ERRA – 2009 Comparative Survey for 2008
Objectives
• To monitor the implementation of RES energy policies in ERRA countries
• To continue the discussions on support schemes for RES
• To increase the involvement of national and foreign investors
• To develop recommendations for governments on improvements and coordination of RES policies
ERRA Position on Renewable Energy Support Schemes
Page 13Banska Bystrica, 12 October, 2010dr. Gábor Szörényi, ERRA
RES Support Systems in EU Countries
•RO
EU-15 EU-10 & BULGARIA, ROMANIA
•Source: FORRES 2020 – Analysis of the renewable energy sources’ evolution up to 2020
Electricity from renewable sources delivered to the grid in 2008 in ERRA CountriesMWh
16907
11210
1016
10041
830
8279
5317 5009
3190 2892
90
6447
3563
1771
3520
8274 149
0.00
2,000.00
4,000.00
6,000.00
8,000.00
10,000.00
12,000.00
14,000.00
16,000.00
18,000.00
Rom
ania
Ucr
aine
Turk
ey
Serb
ia
Mac
edon
ia
Jord
an
Geo
rgia
Cro
atia
B-H
Latv
ia
Esto
nia
Bulg
aria
UN
MIK
Pola
nd
Alba
nia
Hun
gary
Slov
akia
Mol
dova
Solar Wind Hydro =< 10MW Hydro < 1 MW Hydro > 10 MW Biomass Biogas, landfill gas or sewage treatment Other TOTAL RENEWABLES
Electricity from Renewable Sources [MWh]
Electricity generation from Renewable Sources in 2008 in ERRA Countries
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Rom
ania
Ucr
aine
Turk
ey
Serb
ia
Mac
edon
ia
Jord
an
Geo
rgia
Cro
atia
B-H
Latv
ia
Esto
nia
Bulg
aria
UN
MIK
Pola
nd
Alba
nia
Hun
gary
Slov
akia
Mol
dova
TOTA
L
Solar Wind Hydro =< 10MW Hydro < 1 MW Hydro > 10 MW Biomass Biogas, landfill gas or sewage treatment Other
Electricity from Renewable Sources [%]
Installed Capacity in Renewable Energy in 2008 in ERRA CountriesMW
6507
5072
14282
2862
550
3512
20871552 1648
44
1678 1440
514
11033
168274
2008
0.00
2,000.00
4,000.00
6,000.00
8,000.00
10,000.00
12,000.00
14,000.00
16,000.00
Rom
ania
Ucr
aine
Turk
ey
Ser
bia
Mac
edon
ia
Jord
an
Geo
rgia
Cro
atia
B-H
Latv
ia
Est
onia
Bul
garia
UN
MIK
Pol
and
Alb
ania
Hun
gary
Slo
vaki
a
Mol
dova
Solar Wind Hydro =< 10MW Hydro < 1 MW Hydro > 10 MW Biomass Biogas, landfill gas or sewage treatment Other TOTAL RENEWABLES (MW)
Installed Capacity in Renewable Energy [MW]
Installed Capacity in Renewable Energy in 2008 in ERRA Countries
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Rom
ania
Ucr
aine
Turk
ey
Ser
bia
Mac
edon
ia
Jord
an
Geo
rgia
Cro
atia
B-H
Latv
ia
Est
onia
Bul
garia
UN
MIK
Pol
and
Alb
ania
Hun
gary
Slo
vaki
a
Mol
dova
Solar Wind Hydro =< 10MW Hydro < 1 MW Hydro > 10 MW Biomass Biogas, landfill gas or sewage treatment Other
Installed Capacity in Renewable Energy [%]
Percentage of RES in National Gross Electricity Consumption in 2008 in ERRA Countries
0
10
20
30
40
50
60
70
80
90
100
Rom
ania
Ucr
aine
Turk
ey
Serb
ia
Mac
edon
ia
Jord
an
Geo
rgia
Cro
atia
B-H
Latv
ia
Esto
nia
Bulg
aria
UN
MIK
Pola
nd
Alba
nia
Hun
gary
Slov
akia
Mol
dova
%
Renewable Energy Ratio [%]
Average RES Electricity Prices in ERRA Countries in 2008 by Technology -support included-
0
50
100
150
200
250
GEO
RG
IA
SLO
VA
KIA
CR
OA
TIA
HU
NG
AR
Y
BU
LGA
RIA
MA
CED
ON
IA
UN
MIK
AV
ERA
GE
ALB
AN
IA
JOR
DA
N
TUR
KEY B-H
POLA
ND
RO
MA
NIA
ESTO
NIA
LATV
IA
EUR
/MW
h
AVERAGESOLAR WINDHYDRO <10MWHYDRO <1MWHYDRO>10MWBiomassBiogasOther
Renewable Electricity Prices by Technology [Eur/MWh]
ERRA Survey Findings (1)
• 10 out of 28 have operational RES support systems in place: Turkey, Hungary, Macedonia, Croatia, Latvia, UNMIK, Estonia, Poland, Romania
o 8 out of 28 have operational RES support systems in place based on feed-in tariffs: Turkey, Hungary, Macedonia, Croatia, Latvia, UNMIK, Estonia, Slovakia
o 2 out of 28 have operational RES support systems in place based on green certificates: Poland, Romania
⇒Note: Based on feedback given by 19 out of 28 countries
Page 21Banska Bystrica, 12 October, 2010dr. Gábor Szörényi, ERRA
• Various reasons why countries are behind in the implementation RES support schemes:
o members without any provisions on RES promoting in national legislation E.g. Saudi Arabia, Armenia, Azerbaijan, Arabian United Emirates
o members having passed primary legislation but no further regulation has been passed or proposed, no proper RES support system is in place. E.g. Albania
ERRA Survey Findings (2)
Page 22Banska Bystrica, 12 October, 2010dr. Gábor Szörényi, ERRA
Renewable energy support schemesCommonly used methods
• Obligatory purchase by a central agent + Feed-in tariff system for electricity produced from renewable sources (RES-E)
– Not market based method (no market price signals)
– Rigid, if there is no special adjustment for different technologies
– Predictable (preferred by investors and financial institutions)
• Tradable Renewable (Green) Energy Certificate system
– Market based method (real market price signals)
– Less predictable (less preferred by investors and financial institutions)
Page 23Banska Bystrica, 12 October, 2010dr. Gábor Szörényi, ERRA
• New financial situation:– Less money is available from the financial institutions– Higher cost of capital (financial market changed dramatically)– Higher cost of Bio fuels– Potential regulatory reaction: deep investigation of „necessary”
regulatory comfort; adjustment of renewable support scheme (feed in tariff level, supported time-period, more selective support)
• Complicated, time-consuming licensing / permit giving procedure (authorization):– Potential regulatory reaction:
• Simplification of licensing procedure of Energy Regulator• Harmonisation of licensing/authorization procedures of different authorities
• Unpredictable wind generation:– TSO is responsible for system integrity (more reserve capacity required)– Potential regulatory reaction:
• Regulatory analysis on limitation of system risk• Requirement of wind generation forecast• Possible limitation of wind generation capacity (if needed)
Challenges of renewable investment; possible regulatory actions
Page 24Banska Bystrica, 12 October, 2010dr. Gábor Szörényi, ERRA
Renewable energy support schemesGeneral recommendations for ERRA Members
• Basic surveys on:• Renewable potential, • Different cost of technologies and fuels• Profitability of different technologies• System effect of technologies
• Analysis of commonly used renewable support schemes:• Pre-requisites (conditions) of market based methods (e.g.: liquid
market, indicative price signals)• Opinion of investors and financial institutions
• Start with predictable support scheme, which should be maintained (price, support period) based on evaluations!Avoid over-support!
• Be pragmatic (not too sophisticated)!
Page 25Banska Bystrica, 12 October, 2010dr. Gábor Szörényi, ERRA
Thank you for your attention!
dr. Gábor Szörényiwww.erranet.orgwww.eh.gov.hu
Page 26Banska Bystrica, 12 October, 2010dr. Gábor Szörényi, ERRA