Janez Kopac presents at the Vienna Forum on European Energy Law, 2013

1. 1
Security of gas Supply in the Energy Community
Vienna Forum on European Energy Law, 8 March 2013
Janez Kopač, Director
Energy Community Secretariat

2. 2
Energy Community
Status: February 2013

3. 3
Security of gas supply acquis - Legal framework
Energy Community Treaty (Security of supply Statements, safeguard measures, mutual assistance in the
event of disruption)
Directive 2003/55 (Monitoring security of supply, Reporting obligations)
Directive 2004/67 (Polices for securing gas supply; security of supply for specific customers; security of
supply standards; national emergency measures)
Preparatory work to implement some elements of Regulation (EU) 994/2010 started
The relevant acquis implemented in the Contracting Parties to a satisfactory level
Shortcomings: definitions of supply standards and major supply disruption; reporting obligations elements
(ECS: Implementation Report 2011-2012)

4. 4
Long term security of supply – gas case
Gas is expected to have an increased role for meeting growing electricity demand in long term:
In the SEE 2030 – 21 bcm demand – 3 times higher than today → new supply sources/routes needed
in TPES in TFC For electricity and heat
Albania 0,58 0,05 0,00
Bosnia and Herzegovina 3,11 4,41 0,39
Croatia 30,84 24,57 31,89
Former Yugoslav Republic of Macedonia 3,32 1,65 1,11
Kosovo* 0,00 0,00 0,00
Moldova 58,66 23,46 96,08
Montenegro 0,00 0,00 0,00
Serbia 11,87 11,97 7,48
Ukraine 42,32 38,48 25,77
EU-27 25,74 22,96 20,45
2010
Natural gas share (%)
Natural gas use in the Contracting Parties (source: Security of gas supply draft final report, ECS)

5. 5
Institutional framework
EU level: the Secretariat is a full member of the Gas Coordination Group
Energy Community: The Security of Supply Coordination Group envisaged as a platform for
coordination of security of supply measures taken at national level and at a regional level - gas and
electricity
ECS – a link between the two Groups
A revival - October, 2012
Members: Contracting Parties, Participants, Observers, Eurogas, ENTSOG, ENTSO-E, Eurelectric, EFET,
IEA, NALAS, ACER, ECRB, Donor‘s Community
Gas Sub-Group established (February 2013)
Tasks - EnC Emergency Contact Points List; Emergency Questionnaire; Security of Supply Statements
Guidelines; Introduction of risk assesment elements (from Regulation 994/2010)
Finalization of secuirty of gas supply Study

6. 6
Priority corridors: gas, oil, CO2 transport
North-South
interconnections
Western EU
BEMIP
North-South
interconnections
CEE & oil
Southern gas
corridor
+carbondioxidetransportinfrastructure

7. 7
ENTSOs (G/E)
Project
promoters
NRAs (G/E)
Regional
Groups
ACER (G/E)
European
Commission
• Prepare
TYNDPs for
gas and
electricity
• Submit
projects
• Criteria
• Cost Benefit
Analyse
• Check
application of
criteria
• Cross-border
relevance
• Evaluate
projects
• Rank
• Adopt
regional lists
• Adopt Union-
wide list of
projects of
common
interest (no
ranking)
• Opinion
• Cross-regional
consistency
Process
General criteria
Priority corridor implementation
Economic viability
Crosses border or has cross-border
impact
Specific criteria
Market integration, Security of supply,
Sustainability
+ urgency, number of Member States,
complementarity and territorial
cohesion

8. 8
Preparing for first PCI list in 2013
Submission of project proposals
through Groups (TYNDP) or
public request for information
422 projects submitted (E:
268, G: 144)
26 withdrawn
Check if within scope,
fulfils general criteria
Ranking based
on CBA,
urgency etc.
Based on preliminary analysis
E: 148 eligible
G: assessment on-going
~150 projects of common interest
(E: 100, G: 50)

9. 9
Overview of PECI candidates submitted
A total of 75 project proposals was submitted by Project Promoters from the Western Balkans

10. 10

11. 11
Permit granting – Regime of common interest
• Priority status for PCIs (Projects of Common
Interest)
– Most rapid (preferential) treatment in Member
States – considered as being of public interest
– Streamlining of procedures
• Competent Authority to manage
permit granting process
• 3 and a half years time limit for the
permit granting decision

12. 12
The Gas Ring
Feasibilty studies (FS)
funded by EU
Energy Community Gas Ring
demonstrates the importance
of the Energy Community
It requires coordinated action
among multiple CPs and
cannot be developed in
isolation.
Existing pipelines
Studies ongoing
Potential projects - not cooridinated yet

13. 13
Regulatory framework - measures
• Energy system-wide cost-benefit analysis
– Proposal by ENTSOs, ACER opinion, Commission approval
• Enabling investments with cross-border impact:
– Cross-border cost allocation
– National Regulatory Agencies’ joint decision on investments
and cost allocation
– ACER decision if no agreement
• Long-term incentives for investment:
– Obligation on NRAs to grant appropriate risk-related
incentives
– ACER guidance on best practices of NRAs and methodology

14. 14
Permit granting – Regime of common interest
• Streamlining of environmental assessment procedures (EC’s
guidance, reporting to EC, legislative changes in 2 years)
• Increased transparency and enhanced public participation
• Project promotors shall draw up an implementation plan,
including timetable, approved by NRA
• Annual report by 31 March each year to competent authority
• In case of implementation difficulties EC may designate in
agreement with the MS a European coordinator for a period
of up to one year renewable twice

15. 15
Financing – Connecting Europe Facility 2014-2020
• Eligibility criteria (in guidelines):
– Grants for studies and financial instruments
– available to all PCIs
– In exceptional cases, grants for works for
PCIs where:
- CBA shows positive externalities
- Commercially not viable
- Cost-allocation decision done
BUT NOT FOR EXEMPTIONS!!!

16. 16
Adaptation of the Regulation in Energy Community – draft proposal
EU Energy Community
• 12 corridors maximum North-South and East-West
• selection process based on regional maximum 2 regional groups (electricity, gas expert
groups + advisory role of ACER and oil) + advisory role of ECS
•covers also CO2 transport projects this is not included in the regional Energy Strategy
•Regulation aims at replacing the existing No one mechanism existed
TEN-E Guidelines and forms a logical
Package with the “Connecting Europe
Facility” (CEF) developed in view of
replacing the current TEN financing Reg.
•certain role of ENTSO E and ENTSO G what institution is going to take their role
with respect of market and network modeling
• certain roles to ACER and EC what institution is going to take their role

17. 17
Adaptation of the Regulation in Energy Community – draft proposal
• Regulation is based also on additional Aquis : EnC adaptation: to be discussed how to relate
e.g. the Water framework Directive, the Habitats to these in the adapted MC Decision
Directive, and some Conventions (ESPOO, Arhus,
etc) to which EnC is not party or is not obliged to
implement.

18. 18
Thank you for your attention