Presentation in the Nordic Energy Cooperation Conference

1. Co-operation possibilities for the Nordic countries within the frameworks provided by the RES Directive Nordic Energy Cooperation Conference 2-3 December 2010 Juha Ruokonen Juha.ruokonen@greenstream.net

2. Background:Cooperation mechanisms

3. RES Coop-Mex The RES Directive includes four cooperation mechanisms: 3.12.2010 JR 3 (c) GreenStream Network Plc

5. Commission must be notified on all transfers and it makes the adjustments in the statistics.3.12.2010 JR

6. Flexible Mechanisms: Article 7 JOINT PROJECTS Electricity and/or heating & cooling projects The co-operation may involve private operators Yearly reporting between the countries and to the Commission The project can be operational only after the entry into force of the RES Directive Again Commission must be notified on all transfers and it makes the adjustments in the statistics 5 (c) GreenStream Network Plc 3.12.2010 JR

7. Flexible Mechanisms: Article 9 JOINT PROJECTS BETWEEN MEMBER COUNTRIES AND THIRD COUNTRIES TERMS: The electricity produced within the project must be consumed in the Community area. The project was operational only after the entry into force of the RES Directive The third country cannot have a support scheme (other than investment aid) for the production. 6 (c) GreenStream Network Plc 3.12.2010 JR EU Host country a) Information about the Notification installation b) Volume bought and Notification Framework and reporting financial information Framework agreement c) Delivery period ( years ) d) Aknowledgement from Buyer country Agreement the Seller country for b) Project owner and c) Compensation

8. Flexible Mechanisms: Article 11 JOINT SUPPORT SCHEMES Requires a statistical transfer of specified amounts of energy from renewable sources from one Member State to another Member State or the countries must set up a distribution rule that allocates amounts of energy from renewable sources between the participating Member States. 7 (c) GreenStream Network Plc 3.12.2010 JR

9. Use of coopmex

10. NREAP and targets 3.12.2010 JR 9 (c) GreenStream Network Plc

11. MS plans to use CoopMex 1/2 Forecast documents by Dec 2009: Surplus: 9 countries Deficit: 5 countries Total EU: 20.03% in 2020 3.12.2010 JR 10 (c) GreenStream Network Plc Coop-Mex?

12. MS plans to use CoopMex 2/2 National action plans NREAPs by June 2010 Buying interest: Italy and Luxembourg Selling interest: Ireland, Belgium, Denmark, Greece 3.12.2010 JR 11 (c) GreenStream Network Plc Demand: 122 617 Supply: 181 61 Soure: ECN NREAP database

13. Cooperation in the nordic countris? - ResultsfromScenarios

14. Long-runmarginalcosts of RES-E 3.12.2010 JR 13 (c) GreenStream Network Plc For source see: Analysis of the flexible support mechanisms in the Directive on the promotion of the use of energy from renewable sources, 2010

15. National measuresonly 3.12.2010 JR 14 (c) GreenStream Network Plc

16. 20% flexibility(80% with national mesures) 3.12.2010 JR 15 (c) GreenStream Network Plc Cost savings: 1,300 million EUR/a -3.18 -1.41 +2.16 +4.38

17. Implementation options -possibilities for the nordic cooperation

18. The possibilities for Nordic co-operation 3.12.2010 JR 17 (c) GreenStream Network Plc Sweden-Norday JointprojectsbetweenMemberStates and between 3rd countries Jointsupport schemes Statisticaltransfer No co-operation Full co-operation 17 (c) GreenStream Network Plc

19. 3.12.2010 JR 18 (c) GreenStream Network Plc Ad hoc framework for Nordic co-operation Political Framework Agreement for Joint projects Seller country Buyer country Statistical authority Statistical authority Authority managing the seller country’s RES balance Authority managing the buyer country’s RES balance Operational mandate Permits, agreement and reporting RES purchase programme managed by an authority or a private entity or Private entity with a RES obligation RES Project development in co-operation with the buyer Agreement and compensation on RES purchase 18 (c) GreenStream Network Plc

20. 3.12.2010 JR 19 (c) GreenStream Network Plc Advanced framework for Nordic co-operation Political Framework Agreement for Joint projects Seller country Buyer country Statistical authority Statistical authority Authority managing the seller country’s RES balance Authority managing the buyer country’s RES balance Operational mandate Operational mandate RES purchase programme managed by an authority or a private entity or Private entity with a RES obligation RES selling programme managed by an authority or a private entity Project Compensation Tendering for the sell of €/MWh Project Contract Project

21. Wrap up

22. Conclusions The CoopMex provide opportunities buyers, sellers and project developers Currently Member States are busy with implementation of national RES policies Some countries are already keen on using CoopMex – interest likely to increase towards 2020 First progress reports 31 December 2011 Plenty of work to do before transactions can take place! Framework, contracts etc. (c) GreenStream Network Plc 3.12.2010 JR 21

23. 3.12.2010 JR 22 (c) GreenStream Network Plc