Energy News flash 32

Rokas
Energy Newsflash
32nd ISSUE
January 2016
International Law Firm
Monthly energy law news from the EU and the SEE countries of the Rokas network
ENERGY MARKETS
EU: Study on Economic Impact of Competition Policies Enforcement
other news:
EU: Consultation on Streamlining of Planning and Reporting Obligations as Part of the Energy Union Governance
EU: European Council Conclusions on Energy and Climate Policy
EU: ACER Reports First Results of REMIT Implementation
Bulgaria: Energy Exchange Started in January
ELECTRICITY
Greece: Adoption and Implementation of Interruptibility Scheme
other news:
EU: ENTSO-E Stakeholder Consultation on Priority Issues for Connection Network Codes Implementation
Guidance
EU: ACER Calls for Participation in Stakeholder Committee
EU: Study on Options for Future Electricity System Operation
Greece: Amendments to the Grid Code and its Rulebooks
OIL & GAS
EU: Lifting of Sanctions against Iran
other news:
EU: ENTSO-G Publishes Amended Interconnection Agreement Template and Respective Guidance Document
Ukraine: Recent Regulatory Developments in the Ukrainian Gas and Fuel Markets
RENEWABLES
EnC: Secretariat Publishes Policy Guidelines on Reform of RES Support Schemes
other news:
EU: Commission Decision on Custom Tax to Chinese PV
Romania: Regulatory Acts on the Green Certificates Support Scheme for the year 2016
Poland: Amendments to the Polish Renewable Sources Postpone Entry into Force until July 2016
Albania: Council of Ministers Approves New Development Plan on Renewable Energy
Greece: Decision Introduces Model PPA for Hybrid Power Plants at the Non-Interconnected Islands
COMPETITION - STATE AID
EU: French Supreme Administrative Court Requests Preliminary Ruling for Capacity
Mechanism in the Electricity Sector
Greece: Competition Commission Accepts Commitments of Incumbent Electricity Supplier
other news:
EU: Commission Opens In-depth Investigation into UK’s Public Support Scheme for Drax Power Plant
Romania: Competition Council Sanctions Hidroelectrica SA and 10 of its Contractual Partners
ENERGY INFRASTRUCTURE
EU: ACER Publishes Recommendation on Cross-Border Cost Allocation for Electricity and Gas
Projects of Common Interest
other news:
EU: Member States Agree to Invest €217 million in Key Trans-European Energy Infrastructure Projects
EnC: Secretariat Announces First Call for Selection of Priority Infrastructure Projects under TEN-E Regulation
EnC/Ukraine: Complaint against Nord Stream 2 Project Forwarded to European Commission
EnC/Albania: Regulatory Board Issues Opinion on Preliminary Certification of TAP AG by the Albanian Regulator
Greece: Regulator Approves Development Plan for the Natural Gas System for the Years 2015-2024
ENERGY EFFICIENCY
EU: Public Consultation on the Review of Directive 2012/27/EU on Energy Efficiency
other news:
EU: Study Assessing the Employment and Social Impact of Energy Efficiency
Poland: Energy Efficiency Act in Force for One Further year
Serbia: Rulebook on Minimum Energy Efficiency Requirements in Public Procurement of Goods
A publication by Rokas...
intended for the information of our clients and contacts, aiming to highlight selected recent legal and regulatory developments in the SEE countries and the EU. The highlights do not cover every
important topic; they include limited information on the selected topic without extending to legal or other advice. Readers should not act upon them without taking relevant professional advice..
Copyright © 2016, Rokas, All rights reserved.
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ENERGY MARKETS
EU: Study on Economic Impact of Competition Policies Enforcement
by Mira Todorovic Symeonides (Athens)
In January 2015 the European Commission, DG for Competition, published a study on “The Economic Impact of Enforcement of
Competition Policies on the Functioning of EU Energy Market”. The objective of the study was to examine whether EU
competition policy enforcement improves competition in European gas and electricity markets and how it affects the prices on
the wholesale and retail level. The study includes a description of the Competition policy enforcement in gas and electricity
markets in the period of the two past decades with reference to some significant cases in which the Commission prohibited
certain mergers which were considered anti-competitive while in others, before approving, the Commission proposed and/or
accepted structural remedies (in which it is required from the merging parties to divest part of their capacity to new entrants and
competitors) and/or behavioral remedies (in which the company temporary releases part of its production/capacities to its
competitors through devices such as auctions or bilateral agreements).
The study comprises important conclusions from the theory such as: a) vertical mergers (between generator and supply
companies) positively affect business by providing hedge against volatile wholesale energy prices, but may adversely affect
competition by reducing liquidity in wholesale markets; b) there may be anticompetitive effects of convergence mergers
(between gas and electricity companies) particularly regarding new entries and cross-border competition; c) vertical relations
between generation and supply in the way of long-term contracts may act as a barrier to market entry or expansion by reducing
liquidity in the wholesale market; and d) ownership unbundling can result in economic losses arising from vertical integration but
there is empirical evidence that it generally results in improved efficiency, although the results may not always be passed on to
the consumers.
A broad econometric analysis shows that in the low-regulated sectors the EU merger control positively affects the competition
and is significantly related to better market outcomes i.e. higher investment and higher total factor productivity. The competition
policy is mostly effective where the competitive process is not influenced by the existence of high levels of regulation.
Therefore, as regulation is lowered over time, competition policy should be strengthened.
The study contains two case studies: a) the antitrust case of E.ON’s alleged abuse of dominant position in the German
wholesale electricity market by withdrawal of part of its available generation capacity in order to increase the wholesale
electricity prices and b) the merger case of Daz de France’s acquisition of Suez in 2006. In the first case, the study concludes,
by using data on peak and off-peak prices from the European Energy Exchange, that E.ON’s application of the agreed
remedies consisting in the sale of various plants to different buyers in 2009, led to a reduction of E.ONs market power which
further lowered wholesale and subsequently retail electricity prices in Germany. In the second case, the study first describes the
competition concerns at all levels of the Belgian gas market and the remedies proposed by the companies which included
relinquishing control of Fluxys (the Belgian network operator), the sale of Distrigas (active in Belgium wholesale and retail gas
market) and the commitment to serious investment projects to increase infrastructure capacity intended to facilitate entry of new
competitors. Further it provides evidence that the remedies were effective in limiting the potential anti-competitive effects of the
merger as they had a downward impact on wholesale prices at the Zeebrugge Hub.
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more news on Energy Markets:
EU: Consultation on Streamlining of Planning and Reporting
Obligations as Part of the Energy Union Governance
by Stefan Pavlovic (Belgrade)
On 11 January 2016, the European Commission launched a
consultation on streamlining of planning and reporting obligations
as part of the energy union governance, inviting interested parties
to provide information which could be used in the context of the
evaluation of the existing planning and reporting obligations of the
EU energy acquis. This consultation follows the presentation of the
Commission's State of the Energy Union on 18 November 2015
which, among others, underlined that in order to track progress in
the development of the Energy Union, a transparent monitoring
system needs to be put in place based on key indicators as well as
on Member States' biannual reports concerning progress made on
their national plans. In the same context, a few months ago the
Commission's Communication on the Energy Union from February
2015 explained that a purpose of the governance process for the
Energy Union is to streamline current planning and reporting
requirements, avoiding unnecessary administrative burden. In this
regard, participants in the consultation are requested to express an
opinion on the possible options to streamline the current framework
in the light of better regulation and reduced administrative burden,
as well as to indicate preferred options for the new governance of
the Energy Union. The invitation is addressed to all relevant
stakeholders, including individual citizens, national public
authorities, private companies, industrial associations, and other
interest group organisations/associations. Responses to a
respective questionnaire should be submitted until 8 April 2016
following the link on DG Energy's webpage.
EU: European Council Conclusions on Energy and Climate
Policy
by Dimitris Nisanakis (Athens)
On 18 December 2015, the European Council released its
conclusions regarding the meeting held on 17 and 18 December
2015. The European Council welcomed the outcome regarding the
Agreement on Climate Change which decided to hold the global
warming under 2oC and to pursue efforts to limit it to 1.5°C.. Having
assessed the progress in building the Energy Union with a forwardlooking climate policy, it called for the quick submission of the
relevant legislative proposals in line with its previous guidance and
the immediate implementation of the legislation deriving from the
recent Directives regarding renewable energy and energy efficiency
in order to meet the 2020 target. It also requested that an integrated
strategy for research, innovation and competitiveness must be
prepared, along with the implementation of projects of common
interest and optimal use of infrastructure for the benefit of a fullyfunctioning and interconnected market and energy security.
EU: ACER Reports First Results of REMIT Implementation
by Stefan Pavlovic (Belgrade)
On 8 January 2016, the Agency for the Cooperation of Energy
Regulators (ACER) published a press release regarding market
monitoring of EU wholesale energy markets, regulated under the
EU Regulation on wholesale energy market integrity and
transparency (REMIT). Three months ago, on 7 October 2015, data
collection under REMIT for the purpose of market monitoring of EU
wholesale energy markets started. By that time, ACER had
approved 33 Registered Reporting Mechanisms (RRMs) and
National Regulatory Authorities (NRAs) had registered nearly 4,000
market participants. According to the press release, ACER is now
receiving more than 1 million data records per day. These records
consist of wholesale energy market transactions, including orders to
trade, executed at organised market places. So far, the total
number of records of transactions received exceeds 60 million.
Meanwhile, ACER has approved 40 RMMs and is preparing,
alongside the NRAs, for the final stage of data collection as of 7
April 2016.
In late 2015, the first two breaches of REMIT, in Estonia and in
Spain, were sanctioned by the competent NRAs, while in December
ACER had 45 cases of potential REMIT breaches under review.
Nevertheless, ACER stresses that, while it is itself responsible for
monitoring the wholesale energy markets under REMIT and
ensuring that NRAs carry out their tasks in a coordinated and
consistent way, it is not responsible for the investigation of potential
breaches of REMIT. Thus, th EU Member States have the
obligation to ensure that their NRAs have the required investigatory
and enforcement powers to meet their responsibilities under
REMIT.
Bulgaria: Energy Exchange Started in January
by Lyubomir Talev (Sofia)
After more than a month in trial mode (since 11 December 11
2015), the Independent Bulgarian Energy Exchange (IBEX) has
been put into operation in real time on 19 January 2016. IBEX has
announced on its website that the first real trading session was
successful. The state-owned Maritsa East 2 EAD thermal plant, the
Kozloduy nuclear plant, and the National Electricity Company (NEK)
are all participants in the trade. Household consumers are expected
to be able to join in April 2016.
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32nd ISSUE
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E L E C T R I C I T Y
Greece: Adoption and Implementation of Interruptibility Scheme
by Mira Todorovic Symeonides (Athens)
On 11 December 2015, the Ministry of Environment and Energy issued decision no. APEHL 184898 (OJ B 2861/28.12.2015) on
interruptibility services, type and content of interruptibility Agreements (Decision), in accordance with article 17 of the law no.
4203/2013, with duration until 15 October 2017. The mechanism compensates certain undertakings, large consumers, located
in the Greek interconnected system that enter into contracts with the Greek electricity Transmission System Operator (ADMIE)
to agree to reduce their electricity consumption (load shedding) for a given period of time and given a stated notice time (Power
Reduction Order). This service, together with other measures, yet to be proposed, aims to support security of electricity supply.
The Interruptibility Scheme has been notified to the European Commission, which in the case no. SA.38711 issued decision
(C[2014]7374 as of 15.10.2014) that this temporary, three years measure and its financing mechanism do not constitute state
aid.
The Ministerial Decision regulates issues such as the requirements which consumers should fulfill in order to participate in the
scheme, the conditions and procedures for determining the amount and for paying remuneration to these consumers,
compulsory provisions of the Interruptibility Agreements, and defines the duties of ADMIE, including determination of the
necessary quantities of electricity and organising of the auctions which should determine the price of the service. The Decision
stipulates that ADMIE may conclude Interruptibility agreements for a total interruptible capacity of up to 1GW per type of
service. Exceptionally, the first auction should not exceed 500MW per type of service while the duration of the agreements in
that case shall be for one month. The duration of
the subsequent agreements shall be determined
by ADMIE in accordance with the respective rules
which will be prepared and published also by
ADMIE. There will be two types of services: (a)
with a prior notice time of 2 hours, a maximum
duration of 48 hours per interruption and a total
duration of 144 hours per year; and (b) with a prior
notice time of 5 minutes, a maximum duration of 1
hour per interruption and a total duration of 24
hours per year. ADMIE should organise auctions
on which the consumers would provide financial
offers for each type of service. In order to
participate, the interested consumers should register in a register held by ADMIE. The necessary financial means for this
measure are secured from the Transitional Levy for Security of Supply (MTEA), a new levy to be paid by all electricity producers
connected to the system, including RES producers. The contribution of the electricity producers is regulated in the Decision
depending on the category of production unit and takes into consideration the effect of each category on the security of supply.
The introduction of this measure has caused reactions by the RES producers, particularly of PV whose contribution is the
highest, who raised doubts about the need to introduce this measure and its effects. They initiated meetings with the main
stakeholders and announced respective legal actions.
In the meantime, ADME has already undertaken activities for implementation of the Decision. On 12 January 2016, ADMIE
published an invitation and respective instructions on its webpage, inviting all interested consumers to submit applications to be
included in the Register of Interruptible Load. On 20 January 2016, ADMIE launched a short-term public consultation on Draft
Auction Rules for Interruptible Load Service, which lasted until 26 January 2016. The Rules contain the conditions for
participation in the auctions, procedural rules, a method for assessment of the offers, as well as a draft Interruptible Load
Agreement. On 28 January 2016, ADMIE published on its webpage information and instructions for interested consumers on
the procedure of registration for participation in the interruptibility auctions.
www.rokas.c om
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Athens
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Bucharest
Kiev
Podgorica
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Sarajevo
Skopje
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Thessaloniki
Tirana
W ar s aw
Zagreb
E n e r g y
N e w s f l a s h
32nd ISSUE
J an u ar y 2 0 1 6
more news on Electricity:
EU: ENTSO-E Stakeholder Consultation on Priority Issues for
Connection Network Codes Implementation Guidance
EU: Study on Options for Future Electricity System Operation
by Tetyana Vyshnevska (Kiev)
In December 2015, the European Commission published a study on
the Options for future European Electricity System Operation. The
study focuses mainly on the fields of system operations and
planning, and options to improve the current European system by
taking into consideration the increasing penetration of renewables
into the market as well as the changes needed in order to achieve
the Internal Energy Market and the efforts necessary for improving
the cooperation among TSOs. The study aims at defining a target
model for system operations implementable in 2020 and planning
by 2025. It is addressed to anyone interested in the future
development of the European electricity sector. The study is divided
into six chapters and includes two appendices. After an introduction
and general information, in chapter 2 the study informs about the
current system planning and operations and in chapter 3 describes
the requirements towards the target of 2025. Moreover, the study
presents in chapter 4 the challenges and obstacles as well as the
prospective of centralisation of functions and its benefits in chapter
5. Finally, in chapter 6 the study concludes on the target model of
2020 by providing implementation steps and further details.
On 17 December 2015, the European Network of Transmission
System Operators for Electricity (ENTSO-E) announced a survey
aiming to gather stakeholders’ views on priority issues concerning
implementation of three connection network codes, i.e. the network
codes on demand connection (NC DCC), on requirements for grid
connection of generators (NC RfG), on requirements for grid
connection of high voltage direct current systems and direct current
connected power park modules (NC HVDC), to be established by
relevant regulations of the European Commission. As of the
moment, the draft connection network codes have been adopted by
the Commission and are awaiting scrutiny by the European
Parliament and the Council. Upon consideration of the
stakeholders’ feedback, the ENTSO-E shall identify and rank the
most important issues, and provide its members and other system
operators with the first non-binding implementation guidance on
elements of Commission regulations requiring national decisions.
The survey closed on 22 January 2016 and will be followed by a
relevant workshop scheduled for 29 February 2016 in Brussels. The
ENTSO-E’s implementation guidance shall be delivered no later
than 6 months after the entry into force of the NC DCC, NC RfG
and NC HVDC, i.e. presumably in the third quarter of 2016.
EU: ACER Calls for Participation in Stakeholder Committee
by Dafni Siopi (Thessaloniki)
On 22 January 2016, ACER (Agency for the Cooperation of Energy
Regulators) launched in close collaboration with ENTSO-E a call for
interest to all interested EU wide electricity associations to
participate in the Grid Connection European Stakeholder
Committee (ESC). The main objectives of the ESC are to contribute
to monitoring progress in the network codes implementation
process at local, regional and pan-European level as an
overarching structure of all network codes, to serve as a platform to
share general views on the network code implementation and to
contribute to a more informed decision-making process for the
methodologies and rules to be developed for the implementation of
the network codes. The Grid Connection ESC is open to all EU
associations, with a stake in the Grid Connection Network Codes
(Grid Connection of Generators, HVDC connected Power Park
Modules, Demand Connection). ACER is committed to consider all
expressions of interest received and decide on the composition of
the Grid Connection ESC in light of them. ACER will endeavour to
form a Grid Connection ESC that represents all parts of the value
chain and ensures geographical diversity to the extent possible.
The expression of interest by interested associations shall be sent
by no later than 19 February 2016.
by Stefania Chatzichristofi (Athens)
Greece: Amendments to the Grid Code and its Rulebooks
by Lazaros Sidiropoulos (Athens)
On 31 December 2015, Decision no. 467/2015 of the Greek energy
regulator RAE was published in the Official Journal (B 3003)
introducing two amendments to the Grid Code: a) providing for
compensation of gas-fired electricity production units for the extra
charges suffered when receiving by the electricity TSO a dispatch
instruction after the closing of the day-ahead dispatch schedule,
which results in a differentiation in the scheduled operation of the
unit at a point of time when the producer may no longer differentiate
its respective declarations towards the gas TSO regarding the
requested gas quantity and the respective booking of capacity
necessary; and b) amending the procedure of approval of the
volume of interconnection capacity to be auctioned on a long-term
basis (from one month to one year) so that the Greek TSO may
now define the volume of such capacity without the need to submit
its proposal to RAE for prior approval, the respective decision being
only thereafter notified to RAE. In the same OJ, also Decision no.
471/2015 of RAE was published introducing further amendments to
the Grid Code aiming to reduce the costs of exporters of electricity
from Greece by exempting them from the obligation to pay some
standard charges to the competent TSO.
Furthermore, on 18 December 2015, RAE Decision no. 404/2015
was published in the Official Journal (B 2773) introducing
amendments to the Grid Code and to a respective Rulebook of the
Grid Code on Network Metering to include provisions regulating
self-supply of electricity; a more extensive regulation of self-supply
is expected to follow upon adoption of the Distribution Network
Code which is still pending. Finally, on 31 December 2015,
Decision no. 468/2015 of RAE was published in the Official Journal
(B 3012) introducing amendments to the Rulebook of the Grid Code
on Market Clearance to adapt to respective amendments to the
Grid Code already introduced on 26 November 2015 by Decision
No. 392/2015 of RAE (OJ B 2552) introducing a revised form of the
so-called cost-recovery mechanism, which from now on shall be
applicable either in cases where a thermal electricity production unit
receives a dispatch instruction by the TSO although it was not
included in the day-ahead dispatch schedule or in cases where
such unit generates within the framework of the day-ahead
schedule solely to fulfill purposes of procurement of reserve power.
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G A S
EU: Lifting of Sanctions against Iran
by Tetyana Vyshnevska (Kiev)
On 16 January 2016, following the release of a report of the International Atomic Energy Association (IAEA) confirming that Iran
has taken measures necessary to start the implementation of the Joint Comprehensive Plan of Action (JCPOA), the Council of
the European Union adopted Decision (CFSP) 2016/37 concerning the date of application of Decision (CFSP) 2015/1863
amending Decision 2010/413/CFSP concerning restrictive measures against Iran (hereafter: Decision 2016/37). On the same
date, Notice No 2016/C 015I/1: Information concerning the date of application of Council Regulation (EU) 2015/1861 of 18
October 2015 amending Regulation (EU) No 267/2012 concerning restrictive measures against Iran and Council Implementing
Regulation (EU) 2015/1862 of 18 October 2015 implementing Regulation (EU) No 267/2012 concerning restrictive measures
against Iran was published in the Official Journal of the European Union. Thereby, the EU legislative package on lifting nuclearrelated sanctions against Iran has come into effect.
By virtue of Decision 2016/37 the following activities in respect of the oil, gas and petrochemical sectors of Iran are permitted
from 16 January 2016: a) import, purchase, swap and transport of crude oil and petroleum products, gas and petrochemical
products from Iran; b) export of relevant equipment or technology and provision of technical assistance to Iran, covering
exploration, production and refining of oil and natural gas, including liquefaction of natural gas; c) investing in the oil, gas and
petrochemical sectors of Iran, including by granting financial loans or credits to, the acquisition or extension of a participation in,
and the creation of any joint venture with any Iranian person that is engaged in the oil, gas and petrochemical sectors in or
outside Iran.
It should be noted that the arms embargo, missile
technology sanctions, restrictions against certain
listed persons and entities remain in force, as well
as EU’s sanctions and restrictions which do not fall
within the scope of the JCPOA, like human rightsand terrorism-related sanctions. Besides, the EU
retains its right to reinstate the lifted sanctions in
case Iran violates its obligations under the JCPOA.
The IAEA will now begin verifying and monitoring
Iran’s nuclear-related commitments under the
JCPOA. In case of successful implementation of
the JCPOA, when the IAEA confirms that Iran
complies with agreed commitments and no
sanctions have been reintroduced, the JCPOA, the
relevant EU legislation as well as the remaining
nuclear-related sanctions are expected to be
terminated in 10 years since the JCPOA Adoption
Day, i.e. presumably in October 2025.
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E n e r g y
N e w s f l a s h
32nd ISSUE
J an u ar y 2 0 1 6
more news on Oil & Gas:
EU: ENTSO-G Publishes Amended Interconnection Agreement
Template and Respective Guidance Document
Ukraine: Recent Regulatory Developments in the Ukrainian
Gas and Fuel Markets
by Stefan Pavlovic (Belgrade)
by Tetyana Vyshnevska (Kiev)
On 16 December 2015, the European Network of Transmission
System Operators for Gas (ENTSO-G) published a modified
version of the Interconnection Agreement Template covering the
default terms and conditions set out in articles 6 to 10 of the
Commission Regulation (EU) 2015/703 of 30 April 2015
establishing a Network Code on Interoperability and Data
Exchange Rules. A first draft was published by ENTSO-G in June
2015. The new version takes into account an opinion of ACER
which was provided on that version in October 2015. Alongside the
final Interconnection Agreement Template, ENTSO-G also
published on the same day on its website a separate document
providing guidance in the application of the default rules contained
in the template. The Guidance is covering following areas: flow
control, measurement principles for gas quantity and quality,
matching process, allocation of gas quantities and communication
procedures in case of exceptional events.
At the end of 2015, the Ukrainian authorities decided on a number
of changes to the regulatory environment of the natural gas market
and the fuel market of Ukraine. These include amendments to the
Tax Code of Ukraine, introduced by the Law no. 909-VIII, effective
as of 1 January 2016; amendments to the Procedure for Creation
of Reserve Stocks of Natural Gas, introduced by the Governmental
Resolution no. 1088-p, effective as of 29 December 2015; Rules for
Security of Natural Gas Supply, approved by the Order no. 686 of
the Ministry of Energy and Coal Industry of Ukraine (Ministry),
effective as of 29 December 2015; and a National Action Plan on
the security of natural gas supply, approved by the Ministerial
Order no. 687, effective as of 18 December 2015. The
aforementioned acts provide for the following changes: a)
significant reduction of rates of rent payable by natural gas
extraction companies for using the ground under the surface for
extraction purposes; b) electronic administration of fuel sales and a
temporary increase of rates of excise tax for trade in oil products,
biodiesel and alternative motor fuel; c) reduction of the volume of
natural gas reserve stocks which gas supplying companies are
required to create in order to operate at the natural gas market and
d) measures to be taken by market participants and authorised
bodies to ensure security of the natural gas supply. In addition, the
National Energy and Utilities Regulatory Commission (NEURC)
issued Resolutions no. 3156-3158, effective as of 1 January 2016,
concerning introduction of an incentive-based regulation for natural
gas transmission by the TSO and transition to the “entry-exit” tariff
model as regards natural gas transmission through interstate
pipelines. The NEURC also announced public consultations
concerning draft amendments to the Natural Gas Transmission
System Code (to introduce provisions on the online auction
procedure for capacity distribution at physical exit and entry points
of interstate connections), and a draft TSO certification procedure.
Comments and proposals are expected by 1 and 5 February 2016
accordingly.
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32nd ISSUE
J an u ar y 2 0 1 6
R E N E W A B L E S
Energy Community: Secretariat Publishes Policy Guidelines on Reform of RES Support Schemes
by Tetyana Vyshnevska (Kiev)
On 21 December 2015, the Energy Community (EnC) Secretariat published the Policy Guidelines on Reform of the Support
Schemes for Promotion of Energy from Renewable Sources (the Guidelines). The purpose of the Guidelines is to assist the
EnC Contracting Parties in the reform of their renewable energy sources (RES) support schemes, bringing them in compliance
with provisions of the EU’s Guidelines on State Aid for Environmental Protection and Energy 2014-2020 while ensuring
fulfilment of commitments under the Renewable Energy Directive 2009/28/EC, i.e. achieving the binding national renewable
energy targets and at least 10% of RES in transport by 2020.
According to the Guidelines, in order to successfully
revise the RES support schemes, the EnC Contracting
Parties are required to: i) adopt fixed annual budgets for
promotion of energy from renewable sources, and transfer
pertaining costs to all final consumers/tax payers; ii) prior
to the adoption of RES support schemes, carry out public
consultations with relevant stakeholders and notify draft
proposals to a national state aid enforcement authority as
well as the EnC Secretariat to ensure compliance with the
state aid rules; iii) introduce technology- and locationneutral tendering of RES support with the application of
flour and ceiling prices to ensure selection of the most
competitive bid, as well as simplified tender procedures
for small RES projects; iv) introduce feed-in premiums
instead of existing feed-in tariffs (since the feed-in tariff
based support scheme is no longer compliant with stateaid rules as of the beginning of 2016); v) establish a
separate institution performing management of the RES
support scheme as an exclusive activity at the electricity
market; vi) abolish “deep” connection costs for RES
producers, that is the latter should no longer be charged
with costs for reinforcement or expansion of electricity
network, but pay for connection to the nearest point in the
electricity network only; vii) impose balance responsibility on new medium and large RES projects starting in 2016 (this should
not apply to RES projects with less than 500 kW of installed electricity capacity or demonstration projects, and wind energy
projects of less than 3 MW or 3 generations units); and viii) refrain from disruption of and retroactive changes to existing support
schemes to prevent investor-state disputes and preserve investors’ confidence.
Noteworthy, in October 2015, having considered the Secretariat’s report on the progress in the promotion of renewable energy
in the EnC Contracting Parties, the EnC Ministerial Council established the Renewable Energy Coordination Group (the RECG)
to facilitate implementation of the Renewable Energy Directive 2009/28/EC. Pursuant to the Guidance, the RECG shall start
working on the reform of the support schemes for renewable energy producers in spring 2016, using EU’s best practices in
implementation of market based RES support schemes with due account of particularities of the EnC Contracting Parties.
www.rokas.c om
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N e w s f l a s h
32nd ISSUE
J an u ar y 2 0 1 6
more news on Renewables:
Romania: Regulatory Acts on the Green Certificates Support
Scheme for the year 2016
EU: Commission Procedures on Custom Tax to Chinese PV
by Mira Todorovic Symeonides (Athens)
On 5 December 2015, the European Commission issued two
notices: a) on initiation of an expiry review of the anti-dumping
measures applicable to imports of crystalline silicon photovoltaic
modules and key components (cells) originating in or consigned
from the People’s Republic of China (2015/C 405/08) and b) on
initiation of an expiry review of the anti-subsidy measures for the
same type of goods (2015/C 405/09). These anti-dumping and antisubsidy measures were imposed on 5 December 2013 (Regulation
no. 470/2014 and no. 471/2014 respectively) for the period of 2
years i.e. until 5 December 2015. However, they will remain in force
until the expiry review is finished. In 2013 the Commission accepted
a commitment from some Chinese producers to sell solar cells and
panels to the EU at a price above a Minimum Import Price (MIP)
(2013/707/EU as of 4 December 2013), so that the anti-dumping
and anti-subsidy duties are not charged. These commitments and
the MIP will remain in force until the reviews are finished. In 2015
the Commission withdrew the acceptance of the commitments for 4
exporting producers which were after that obliged to pay antidumping and anti-subsidy duties.
There are several other procedures regarding the import of the
above products from China: a) on 5 December 2015 (2015/C
405/10) the Commission opened an interim review to look at
whether it would be appropriate to change the measures in force as
regards solar cells only. The procedure is still in progress; b) on 5
May 2015 a partial interim review was initiated (205/C 147/03) after
a request of an interested party with the aim to examine if there
were any changes in the benchmark used as reference for the MIP
adaptation mechanism. The investigation was finalised on 6
January 2016 with the conclusion that the existing benchmark still
fulfils its objective; and c) two anti-circumvention investigations,
which were initiated by the Commission (Implementing Regulations
2015/833 and 2015/832 of 28 May 2015) at the request of an
interested party claiming that the measures in force are being
circumvented via Taiwan and Malaysia, are still in progress.
by Corina B diceanu (Bucharest)
Several Romanian regulatory acts on the green certificates support
scheme for the year 2016 were published recently in the Official
Gazette. On 31 December 2015, a Government Decree on the
approval of the mandatory annual quota of electricity produced from
renewable energy sources that benefit from the system of
promotion by means of green certificates for the year 2016 was
published in the Official Gazette under the no. 1015/2015.
According to this Government Decree, for the year 2016, the
mandatory annual quota of electricity produced from renewable
energy sources that benefit from the green certificates support
scheme is established at 12,15% of the gross final consumption of
electricity. On the same day, an Order of the Romanian Energy
Regulatory Authority on the setting of the mandatory quota for the
acquisition of green certificates for the year 2016 was published in
the Official Gazette under the no. 183/2015. According to this
Order, the mandatory quota for the acquisition of green certificates
for the year 2016 is established at 0,317 green certificates/MWh.
Poland: Amendments to the Polish Renewable Sources
Postpone Entry into Force until July 2016
by Piotr Kloc (Warsaw)
On 30 December 2015, the President of Poland signed an
amendment to the Renewable Sources Act of 20 February 2015
(“RES Act”). Pursuant to the amendments, the main provisions of
the RES Act will come into force by 1 July 2016, not by 1 January
2016 as initially expected. The RES Act implements an auction
system for the support of renewable energy, as well as a
mechanism of state aid for the so called “prosumers” (entities being
simultaneously consumers and local producers of energy of low
quantities). The auction system is supposed to replace the 10
years-existing model of “green certificates”. The auction system is
divided in two groups: plants with a capacity of up to 1 MW and
plants with a capacity exceeding 1 MW. The auctions will be
organised by the Energy Authority. The criteria for selection of the
winning bidders will be based only on the price offered. All the RES
producers will compete at these auctions equally, regardless to the
energy source as long as it is RES. The Ministry of Economy
evaluated the average price on 115 euro/MWh (for plants with
capacities up to 1 MW) and 85 euro/MWh (for plants with capacities
over 1 MW). The price agreed as a result of the auction will bound
the succesful bidder for 15 years. Prosumers producing energy
from small power systems (up to 10 kw) will also have to wait for
the guaranteed tariffs for energy. The postponing will strongly affect
small prosumers who invested in installations ready for
reimbursement from state aid, as well as for an attractive guarantee
tariff system.
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E n e r g y
N e w s f l a s h
32nd ISSUE
J an u ar y 2 0 1 6
Albania: Council of Ministers Approves New Development Plan
on Renewable Energy
by Erjola Aliaj (Tirana)
On 20 January 2016, the Albanian Council of Ministers approved a
plan that provides the renewable energy development in the next 5
years. Through this plan, the government plans to protect the
investments for the production of energy from the sun and wind, to
alleviate dependence on hydropower, which today is frequently
affected by weather fluctuations. For the first time, new capacity is
expected through support schemes for wind and photovoltaic
sources, including new projects for which there has been much
interest. As part of the support scheme, Albania will guarantee to
purchase 50 MW from solar photovoltaic resources and 30 MW
from wind resources. Albania produces 100% of its energy from
water sources, but this amount does not satisfy all the needs of
domestic consumption, which is offset through imports. Efforts to
increase sources of energy produced from clean sources have
started earlier. During 2007-2008, the government gave permission
for the construction of several plants that create energy from wind.
Indeed, the campaign included even the tourist areas, as was the
case of the Gulf of Karaburun, which was accompanied with several
protests by environmental associations. But since then, wind
energy project remained on paper and was never realised.
Experts of the Ministry of Energy and Industry declared that have
faced problems during the preparation of this plan regarding the
calculation of the price for remuneration of renewable energy.
Several options have been evaluated in this regard. One of the
options is that under market liberalisation, the producer may sell the
energy produced under market terms and the price difference will
be guaranteed by the state, but without creating the problem of
reflection of the renewable energy purchase costs in the tariffs for
the consumers.
Greece: Decision Introduces Model PPA for Hybrid Power
Plants at the Non-Interconnected Islands
by Stefania Chatzichristofi (Athens)
On
23
December
2015,
a
Ministerial
Decision
(APEHL/A/F1/oik.185028) was published in the Official Journal (B
2832) defining the form and the content of power purchase
agreements (PPA) for the purchase of electricity produced from
hybrid plants at the non-interconnected islands (NII) of Greece.
More precisely, the Decision approves a standard model PPA
between the NII network operator DEDDIE and the respective
electricity producers for a 20 years term, regulating issues such as
metering, remuneration for the energy produced and the avalaible
capacity, monitoring of compliance with the rules of operation of the
plant, provision of auxilliary services, billing and payments, and
other issues regarding the contractual rights and obligations of both
parties. In case of hybrid power plants with special characteristics
which decline from the standard ones which are covered by this
model PPA, particular contractual provisions may be adopted by
the Minister of Environment and Energy upon recommendation of
DEDDIE and following an opinion of the Greek Energy Regulator
RAE. The said Ministerial Decision came into force on the day of its
publication in the Official Journal.
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E n e r g y
N e w s f l a s h
32nd ISSUE
J an u ar y 2 0 1 6
COMPETITION - STATE AID
EU: French Supreme Administrative Court Requests Preliminary Ruling for Capacity Mechanism in the
Electricity Sector
by Victoria Chatzara & Stefania Chatzichristofi (Athens)
On 18 January 2016, a request for a preliminary ruling from the French Supreme Administrative Court Conseil d’État was
published in the Official Journal of the European Union (Case C-543/15). By its decision dated on 9 October 2015 (No. 369417)
the Conseil d’État filed a request for preliminary ruling on 19 October 2015 (C-543/15) to the Court of Justice of the European
Union (CJEU) on compliance with EU law. The said ruling refers to whether the capacity mechanism introduced into the French
electricity market by the decree No. 2012-1405 of 14 December 2012 on the contribution of suppliers to the security of
electricity supply and the establishment of a mechanism for capacity payment obligations in the electricity sector, violates EU
Law. Energy suppliers in France are assigned each year a capacity obligation based on the actual consumption of their
customers. To meet this obligation, suppliers must either rely on their own means (own production plants or demand response
capacity) or purchase capacity guarantees in the capacity market from capacity operators (producers or demand response
operators) or other guarantee holders. The National Association of Retail Energy Companies (ANODE, from the French
“Association Nationale des Opérateurs Détaillants en Énergie”) filed an appeal against the aforementioned decree of the French
Prime Minister & the Minister of Ecology, Sustainable Development and Energy before the Conseil d’État, pointing out, among
others, that the provisions of the decree No.2012-1405 violate the provisions of Articles 34 and 36 of the Treaty on the
Functioning of the EU (TFEU) which, unless exceptions, prohibit quantitative restrictions among Member States (MS), since the
capacity mechanism is applicable only on capacities located within France, excluding as such foreign capacities. In this context,
ANODE put forward several arguments such as: i) that the capacity mechanism would constitute state aid that has not been
notified to the European Commission and that is incompatible with the EU law, ii) that it disregards the requirements of the
principle of proportionality and non-discrimination under the EU Directives applicable on measures taken by Member States in
order to guarantee security of supply, iii) that Electricité de France (EDF), being a dominant local electricity producer, would be
put in a position to abuse its dominant position on the future market of capacity certificates etc.
The Conseil d’État noted that the provisions of Article 34 TFEU may be applicable, but this is also the case for the provisions of
Article 36 TFEU, according to which Member States may impose restrictions for public security reasons and taking the principle
of proportionality into account. In order to rule whether the capacity mechanism provided in the decree in question violates the
EU Law, the Conseil d’État decided to request a respective preliminary ruling from the CJEU.
In the first part, the Conseil d’État inquires whether the provisions of Article 34 TFEU prohibit the adoption of a capacity
mechanism, which remunerates capacities by analogy not to their actual production, but to their availability, due to the fact that
the same mechanism excludes foreign capacities. The Conseil d’État completes its question noting that the takes into
consideration when determining the suppliers’ obligations the effect of interconnections with neighbouring Member States which
relaxes the causal link between the exclusion of foreign capacities from the mechanism, as laid down by the decree, and the
restrictive effect on cross-border electricity trading which could arise therefrom in terms of investors’ resource allocation choices
and suppliers’ procurement choices. The second part of the Conseil d’État’s request refers to the aim of the French capacity
mechanism, which is to ensure the continuous electricity supply in France and, more specifically, to whether the security of
electricity for the inhabitants of a Member State is capable of being covered by the concept of public security provided for in
Article 36 TFEU, which may justify national measures restricting imports. The request for a preliminary ruling of the Conseil
d’État was completed with an inquiry concerning the principle of proportionality: the CJEU was asked to provide the criteria
which shall be used in order to verify whether a decentralised market-based capacity mechanism involving a measure excluding
foreign capacities which is offset by the taking into account of interconnections in the determination of suppliers’ obligations,
complies with the principle of proportionality and, thus, falls into the scope of Article 36 TFEU, taking into account the discretion
provided to the Member States when designing their policies to ensure their security of electricity supplies. The Conseil d’État
suspended its judgement pending the CJEU decision.
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E n e r g y
N e w s f l a s h
32nd ISSUE
J an u ar y 2 0 1 6
Greece: Competition Commission Accepts Commitments of Incumbent Electricity Supplier
by Lazaros Sidiropoulos (Athens)
On 18 January 2016, the Hellenic Competition Commission (HCC) published a press release announcing that it has adopted a
decision accepting commitments proposed by the incumbent electricity producer and supplier PPC S.A. to address competition
concerns with regard to the supply of electricity to Aluminium of Greece S.A., a manufacturer of aluminium, which is the biggest
energy-intensive industrial client of PPC. The commitments were proposed by PPC following a complaint by Aluminium and its
parent group Mytilineos Holdings for alleged abuse of dominance by PPC (article 102 TFEU and art. 2 of the Greek Competition
Act). This decision is the most recent of a series of decisions in a long lasting disagreement between PPC and Aluminium
regarding the pricing of electricity sold to the latter.
In 2012 the Greek energy regulator RAE had issued Decision no. 346/2012, which provisionally ruled in favor of Aluminium by
setting a temporary electricity supply tariff of €42/MWh. In October 2013, Decision 1/2013 of the Permanent Arbitration Tribunal,
which was established by RAE, forced PPC to supply Aluminium with electricity at an even more favorable price of €40,7/MWh,
which – contrary to RAE’s Decision No. 346/2012 - was also inclusive of some additional charges such as for the use of the
transmission system, ancillary services, contributory fees in favor of RAE, TSO and the market operator etc. The Tribunal’s
Decision was then contested by PPC before the European Commission on the grounds that this arbitration decision obliged it to
supply electricity to Aluminium below market prices and even below its costs, thereby granting a selective advantage to
Aluminium threatening to distort competition and affecting trade between Member States. On 20 April 2015, the European
Commission announced that it came to the finding that no illegal state aid was granted by the arbitration decision.
While the above dispute referred to a previous supply period (from 1 July 2010 to 31 December 2013), PPC and Aluminium
never reached an agreement for the supply tariffs thereafter. As a result of the denial of Aluminium to accept the tariffs offered
by PPC, the latter terminated the supply agreement and required from the Greek TSO ADMIE to discontinue electricity supply to
Aluminium. The commitments now offered by PPC to HHC refer to this exact stage of the dispute. While the decision of HCC
has not been published yet in full text, the content of the commitments, as announced in the press release of HCC, is in
summary as follows:
1. PPC shall immediately withdraw its request to the TSO for discontinuation of power supply to Aluminium and revoke the
termination of the supply agreement with it.
2. It shall continue temporarily to supply Aluminium with electricity on the current terms and conditions.
3. It shall start negotiations with Aluminium to reach an agreement on the supply tariffs and conclude a new supply agreement
on the basis of the pertinent legislation and regulatory framework, to be completed within 3 months.
4. It shall abstain from any unilateral actions until the conclusion of the negotiations or the resolution of the dispute in any other
way, provided that Aluminium continues to fulfill its financial obligations from the current supply agreement.
The HCC also clarified in this regard that it rendered the above commitments binding on PPC without concluding whether or not
there has been an infringement and, in case of non-compliance by PPC, it may impose fines in accordance with the Greek
Competition Act.
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N e w s f l a s h
32nd ISSUE
J an u ar y 2 0 1 6
more news on Competition - State Aid:
Romania: Competition Council Sanctions Hidroelectrica SA
and 10 of its Contractual Partners
by Corina B diceanu (Bucharest)
According to a press release published on 11 January 2016 on the
Romanian Competition Council’s website, the authority sanctioned
Hidroelectrica SA and 10 of its contractual partners with fines of
approximately 37 million Euros, with Hidroelectrica SA, Elsid DA
and Electrocarbon SA admitting their activities and benefiting of
reductions to the applicable fines. Initiated in 2012 ex-officio, the
Romanian Competition Council’s investigation was based on
contracts concluded by Hidroelectrica between 2003 – 2012. During
the investigation, the Romanian Competition Council has analysed
long-term contracts concluded between Hidroelectrica and certain
providers of electricity and eligible consumers on the wholesale
electricity market, taking into consideration the contracts’ scope, the
market conditions, the contracts’ duration, the parties’ positions on
the market, the quantity of electricity involved, the contractual price,
the producers’ impossibility to denounce the contract. The
Romanian Competition Council came to the conclusion that these
contracts had as an effect the impossibility of other providers and
producers of electricity and eligible consumers to participate on the
market, with a direct impact on the hindering of the development
process of the market.
EU: Commission Opens In-depth Investigation into UK’s Public
Support Scheme for Drax Power Plant
by Viktoria Chatzara (Athens)
On 5 January 2016, the European Commission published its
decision to initiate an in-depth investigation according to the
applicable state aid procedural rules, in order to see whether its
concerns regarding the UK public support scheme for the Drax
power plant are justified or not. The investigation concerns one of
the projects included in the Final Investment Decision Enabling for
Renewables (FIDeR) scheme and, more specifically, state support
to convert one of the six units at the Drax plant to operate entirely
on biomass (wood pellets). According to the state measure, if the
average wholesale price of electricity falls bellow a statedetermined “strike price”, the Drax power plant operator would
receive an additional payment. The Commission is concerned that,
taking into consideration the amount of wood pellet the plant will
require according to presented estimations, the project could
significantly distort competition in the biomass market. Another
concern is that the measure’s contribution to achieving the EU 2020
targets for renewable energy could not offset the distortion it would
cause on competition in the biomass market. It should be noted that
the opening of the in-depth investigation does not necessarily mean
that UK will be asked to withdraw the public support scheme in
question.
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E n e r g y
N e w s f l a s h
32nd ISSUE
J an u ar y 2 0 1 6
ENERGY INFRASTRUCTURE
EU: ACER Publishes Recommendation on Cross-Border Cost Allocation for Electricity and Gas Projects of
Common Interest
by Lazaros Sidiropoulos (Athens)
On 18 December 2015, ACER adopted Recommendation No 5/2015 “on good practices for the treatment of the investment
requests, including cross border cost allocation requests, for electricity and gas projects of common interest” replacing ACER’s
first respective Recommendation (No 07/2013) adopted on 25 September 2013 on the same subject matter. This
Recommendation aims to facilitate implementation of Article 12 of Regulation (EU) No 347/2013 on guidelines for transEuropean energy infrastructure (TEN-E Regulation) which regulates procedures of allocation of costs in case of investments in
electricity and gas projects with cross-border impacts.
Article 12 of the TEN-E Regulation allows project promoters, as soon as a project has reached sufficient maturity, to submit to
the concerned NRAs a cross-border cost allocation (CBCA) request regarding the allocation of the efficiently incurred
investment costs related to a project of common interest (PCI) between the TSOs or the project promoters of the Member
States concerned; project promoters must accompany such request with comprehensive information, including a projectspecific cost-benefit analysis consistent with the methodology drawn up pursuant to Article 11 of the Regulation; a business
plan evaluating, among others, the financial viability of the project; and eventually also a substantiated proposal for a crossborder cost allocation. To correspond to such requests, Article 12 of the TEN-E Regulation requires the national regulatory
authorities (NRAs) to take coordinated decisions on the allocation of investment costs taking into account the economic, social
and environmental costs and benefits of the projects in the Member States concerned and seeking, in consultation with the
TSOs concerned, to reach a mutual agreement.
According to the recitals of ACER’s Recommendation No 5/2015, Article 12 of the TEN-E Regulation does not specify the level
of detail of the information to be submitted by the project promoters; because of the importance of CBCA processes for
advancing infrastructure projects of EU-wide relevance, a clarification of the details to be submitted is essential to facilitate a
consistent approach among project promoters and National Regulatory Authorities (NRAs). In this regard, identification of good
practices for NRAs is considered of utmost importance to facilitate treatment of the investment requests. Building upon the
experience gained with the first investment requests submitted in the framework of the first EU list of PCIs, this
Recommendation includes guidelines both to project promoters in regard to submission of investment requests as well as to
NRAs with regard to the treatment of investment requests and deciding on the cost allocation across borders.
In particular, the Recommendation deals with the
following issues: clarifying the content and the
procedure of submission of the information that is
necessary to accompany a CBCA request, including
definition of “sufficient maturity” of a project and
determination of the exact information to be provided
with the investment request (section I); establishing
the principles that NRAs shall apply when handling a
CBCA request, among others, with regard to the
cooperation between NRAs, the assessment of the
completeness of investment requests, the
identification of the costs to be allocated, and the
decision on the allocation of costs (Section II); and
observation of regular reporting requirements to the
NRAs by project promoters (Section III). The Annexes
to the Recommendation include recommendations on
project-specific cost benefit analysis (Annex I),
calculation of national net-impacts (Annex II),
evaluation of impacts on network tariffs (Annex III)
and summary data relevant for investment requests
(Annex IV).
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N e w s f l a s h
32nd ISSUE
J an u ar y 2 0 1 6
more news on Energy Infrastructure:
EU: Member States Agree to Invest €217 million in Key TransEuropean Energy Infrastructure Projects
EnC/Ukraine: Complaint against Nord Stream 2 Project Forwarded to
European Commission
by Dafni Siopi (Thessaloniki)
by Tetyana Vyshnevska (Kiev)
On 19 January 2016, EU Member States agreed on a Commission
proposal to invest €217 million in 15 key trans-European energy
infrastructure projects, mainly in Central and South Eastern
Europe, which were selected within the framework of the second
call for proposals launched in 2015 under the Connecting Europe
Facility (CEF), an EU funding programme for infrastructure. The
scope of this decision is to increase energy security and help end
the isolation of Member States from EU-wide energy networks, so
that a European energy market is completed and renewables are
integrated into the electricity grid. Of the 15 proposals selected for
funding, nine are in the gas sector (financial aid worth €207 million)
and six in electricity sector (€10 million), while 13 relate to studies,
such as environmental impact assessments (€29 million) and two
to construction works (€188 million). Among others, the allocated
grants will cover studies for modernising the Bulgarian gas
transmission network which will improve the possibilities for the
transport of gas in the region, notably for the benefit of Greece,
Romania, the Former Yugoslav Republic of Macedonia and Turkey.
Funding will also be allocated to the interconnector linking gas
networks in Romania, Bulgaria, Austria and Hungary, which will
allow gas from the Caspian region and other potential sources,
including LNG, to reach Central Europe.
On 5 January 2016, the Energy Community (EnC) Secretariat
announced that a complaint submitted by the NJSC Naftogaz of
Ukraine against the so called Nord Stream 2 Project has been
transferred to the European Commission for further consideration.
The project in question envisages construction of two lines of an
offshore natural gas pipeline with total capacity of 55 billion m³ per
year with the purpose of natural gas transmission from Russia to
Germany, and thus may considerably affect Ukraine as the main
transit country for the Russian natural gas supply to the European
Union. The complaint was submitted in accordance with the dispute
settlement procedure established under the EnC Treaty and,
according to the claimant, concerns a potential non-compliance of
the Nord Stream 2 Project with the EnC rules on unbundling and
risks it may pose to competition in the natural gas market of the
EnC. It should be noted that disputes require consideration by the
European Commission in case submitted complaints concern an
alleged violation of the EU legislation by EU Member States.
EnC: Secretariat Announces First Call for Selection of Priority
Infrastructure Projects under TEN-E Regulation
by Dimitris Nisanakis (Greece)
On 21 January 2016, the Energy Community Secretariat
announced the first call for selection of priority infrastructure
projects under the Regulation (EU) 347/2013 on the guidelines for
Trans-European Energy infrastructure (“TEN-E Regulation”) which
was adopted by the Ministerial Council of the Energy Community in
October 2015. The projects selected will benefit from streamlined
permitting processes, improved regulatory conditions, and better
access to financial support. This action targets projects that meet
specific criteria: (a) the project falls in at least one of the following
categories: electricity transmission and storage, gas transmission
and storage, oil, and smart grids deployment; (b) the potential
overall benefits of the project, assessed according to the respective
specific criteria, outweigh its costs, including in the longer term; and
(c) the project involves at least two Contracting Parties or a
Contracting Party and a Member State by directly crossing the
border of two or more Contracting Parties, or of one Contracting
Party and one or more Member States, or the project is located on
the territory of one Contracting Party and has a significant crossborder impact as set out in Annex III.1 of the TEN-E Regulation.
The projects can be submitted online until 22 February 2016, 18:00
(CET).
EnC/Albania: Regulatory Board Issues Opinion on Preliminary
Certification of TAP AG by the Albanian Regulator
by Tetyana Vyshnevska (Kiev)
On 27 January 2016, the Energy Community Regulatory Board
(ECRB) published its Opinion 01/2016 on the Decision of the
Albanian Regulatory Authority, ERE, no. 130 of 31 October 2015
on the preliminary certification of Trans Adriatic Pipeline AG (TAP
AG) company as Independent Transmission Operator of Natural
Gas. The purpose of the Opinion is to assess ERE’s decision as
regards its compatibility with Article 10(2) or Article 11, and Article
9 of Directive 2009/73/EC concerning common rules for the internal
market in natural gas, as applicable in the Energy Community
pursuant to Ministerial Council Decision 2011/02, and provide
relevant recommendations. Having received the Opinion, the ERE
will have to amend its preliminary decision and take into
consideration some recommendations in its final decision on
certification of TAP AG. Among others, ECRB recommends that
ERE assesses in greater detail in its final certification decision the
grounds for a potential deferred implementation of the ITO
requirements and, in particular, whether the regulatory safeguards
in place sufficiently shield against risks of discrimination in relation
to TAP´s ongoing commercial operations. Moreover, amendments
to the preliminary decision are recommended for the reason that
the decision wrongly makes reference to the relevant legal
provisions applicable under the EU acquis communautaire instead
of the Energy Community acquis communautaire and also because
in several provisions it ignores the competence of the Secretariat
and ECRB to issue an Opinion on the Preliminary Certification
Decision and, instead, refers to the related competence of the
European Commission that is, however, not valid for the case of
the Albanian certification decision. The same is the case for the
obligation of ERE to notify its draft certification decision to the
Secretariat, not the European Commission.
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N e w s f l a s h
32nd ISSUE
J an u ar y 2 0 1 6
Greece: Regulator Approves Development Plan for the Natural Gas
System for the Years 2015-2024
by Lazaros Sidiropoulos (Athens)
On 18 December 2015, Decision no. 458/2015 of the Greek energy
regulator RAE was published in the Official Journal (B 2753) in
approval of the Development Plan for the Greek Natural Gas
System for the years 2015-2024 drafted and submitted by the
Greek gas TSO DESFA. Some of the biggest projects included in
the Plan are the following: 2nd upgrade of the LNG terminal on the
island of Revithousa; construction of a compression station in Kipi;
and construction of the Komotini-Thesprotia pipeline. The current
Development Plan does not include any projects for the first time in
relation to the Development Plan for 2014-2023. There are also no
alterations in relation to the draft submitted by DESFA to RAE for
approval in May 2015 , although in the course of the respective
public consultation some additional investments were proposed by
stakeholders, particularly by the incumbent gas supplier DEPA
(such as: the construction of additional infrastructure at the LNG
terminal on the island of Revithousa to accommodate small and
medium ships to promote LNG transfer to regions which are remote
from the natural gas system; the construction of a truck loading
facility; and an upgrade of the gasification rate to 7.500 Nm3/h LNG
instead of up to 2.400 Nm3/h LNG as now planned) but the
proposals were not included in the Plan as they were considered to
be premature.
www.rokas.c om
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Athens
B e lg r a d e
Bucharest
Kiev
Podgorica
Prag ue
Sarajevo
Skopje
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Thessaloniki
Tirana
W ar s aw
Zagreb
E n e r g y
N e w s f l a s h
32nd ISSUE
J an u ar y 2 0 1 6
ENERGY EFFICIENCY
EU: Public Consultation on the Review of Directive 2012/27/EU on Energy Efficiency
by Evridiki Evangelopoulou (Thessaloniki)
On 4 November 2015, the European Commission invited all stakeholders and citizens to public consultation on the review of
Directive 2012/27/EU on energy efficiency, foreseen for the second half of 2016. The consultation focuses on examining
specific aspects of the above Directive, such as the energy efficiency target, the purchasing by public bodies of energy efficient
buildings, goods and services, the energy efficiency obligation schemes, the energy efficiency national fund, the financial and
technical support, as well as the implementation’s reporting and monitoring.
The Energy Efficiency Directive (EED), which was adopted in December 2012, sets out binding measures in order to help the
EU reach its 20% energy efficiency target by 2020. Moreover, in October 2014, the European Council agreed on an EU
objective of saving at least 27% energy by 2030 and requested the Commission to review the target by 2020 “having in mind an
EU level of 30%”. Given these new objectives and developments, it is of vital importance some of the existing rules on energy
efficiency to be assessed and if necessary, updated.
The planned review of the Directive has a targeted approach and will focus on Articles 1, 3, 6, 7, 9-11, 20 and 24 with the aim to
assess the implementation of these Articles in view of the 2030 energy efficiency target. To this end, a consultation paper was
published by the Commission including questions in particular regarding the above articles. The questions are formulated in a
way to ensure that the results of this consultation are fed into two parallel processes: first, to examine whether the above
measures are efficient, effective and compatible with the existing EU legislative framework, and second, to identify the most
appropriate policy options to be considered for reviewing specific aspects of the EED as part of the impact assessment.
Among others, with regard to Articles 1 and 3, which provide the scope of the EED and set the energy efficiency target, the
consultation paper asks on possible means of updating the existing policy framework to reflect the new EU energy efficiency
target for 2030 and to align it with the overall 2030 Climate and Energy framework. In relation to Article 6 on purchasing by
public bodies of energy efficient buildings, goods and services, the paper asks for the opinion of the stakeholders on the
sufficiency of the existing EU energy efficiency requirements for public procurement to achieve the needed impact of energy
savings. As regards Article 7 on energy efficiency obligation schemes, questions are posed on the efficiency of energy
efficiency measures that have been carried out or are planned in the EU countries by the utilities or third parties in response to
an energy efficiency obligation scheme, and respective barriers identified so far.
As far as Articles 9-11 on metering, billing information and cost of access to metering and billing information are concerned, the
Commission asks on the sufficiency of such provisions to guarantee all consumers easily accessible, sufficiently frequent,
detailed and understandable information on their own consumption of energy. In relation to Article 20 on the energy efficiency
national fund and financing and technical support, stakeholders are requested to submit their views on what should be the most
appropriate financing mechanisms to significantly increase energy efficiency investments in view of the 2030 target. Finally, with
regard to Article 24 on the reporting and monitoring and review of implementation, opinions are sought on whether the existing
reporting and monitoring system under the EED is a useful tool to track developments with regard to energy efficiency in
Member States.
The consultation was open until 29 January 2015, but the Commission already published on its website the preliminary
contributions which were submitted until 25 January 2016.
www.rokas.c om
page 17
Athens
B e lg r a d e
Bucharest
Kiev
Podgorica
Prag ue
Sarajevo
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Sof ia
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W ar s aw
Zagreb
E n e r g y
N e w s f l a s h
32nd ISSUE
J an u ar y 2 0 1 6
more news on Energy Efficiency:
EU: Study Assessing the Employment and Social Impact of
Energy Efficiency
by Paraskevi Charalampidi (Athens)
On 16 December 2015, the European Commission published a new
study on the assessment of the employment and social impact of
energy efficiency. The study points out that the sectors that see the
largest net increase in employment are those that produce
investment goods or are in the supply chains for investment goods,
such as construction, equipments and electronic goods.
Furthermore, the study estimates that, in the forthcoming future,
taking up more on energy efficiency technologies and practices will
create opportunities for new jobs especially in the buildings and
transport sectors, such us in manufacturing of electric or hybrid
cars. The study also points out that investment programmes that
improve the energy efficiency of houses could have redistributive
and poverty alleviating effects. It also identifies that there will be a
demand for new skills in jobs involving auditing, consulting,
organisation and consultation, such as managers of major building
projects; in the construction sector, science, technology,
engineering and mathematics will be key to building a skilled
workforce due to the technological nature of many of the
occupations.
Poland: Energy Efficiency Act in Force for One Further year
by Piotr Kloc (Warsaw)
On 31 December 2015 an amendment to the Energy Efficiency Act
came into force aiming to prolong the existing regulation for another
year. The Energy Regulatory Authority will be entitled to issue so
called “white certificates” until 31 December 2016. The act
transposes the EU Energy Efficiency Directive (2012/27/EU), which
obliges the EU countries to reach a certain level of energy
efficiency within 2014-2020. The act imposes on energy
entrepreneurs a duty to obtain a white certificate or to reimburse a
compensatory payment. White certificates confirm the energy
efficiency of entrepreneurs. They may be obtained by the way of
public auctions organised by the Energy Regulatory Authority. The
bidders shall declare the amount of energy savings deriving from
planned investments. The auctions can be held until the end of
2016. Whereas the Energy Efficiency Act is in force for another
year, the Parliament continues to work on a new Energy Efficiency
Act which shall establish new solutions for the energy efficiency
system.
Serbia: Rulebook on Minimum Energy Efficiency Requirements
in Public Procurement of Goods
by Vuk Stankovic (Belgrade)
On 28 December 2015, the Ministry of Mining and Energy of the
Republic of Serbia passed a Rulebook on minimum energy
efficiency requirements in the public procurement of goods (OG RS
no. 111/2015) which entered into force on 6 January 2016. The aim
of the Rulebook is to comply with Article 69 of the Law on Efficient
Use of Energy (OG RS no. 25/2013) and to set forth minimum
energy efficiency requirements for the procurement of the following
goods: (i) office and IT equipment; (ii) refrigerators and refrigerators
with integrated freezers; (iii) air conditioners; and (iv) internal and
external lighting. In regard to internal and external lighting in public
buildings the application of Article 15 of the Rulebook, which
requires a higher level of energy efficiency concerning lighting
equipment, is suspended until 6 January 2017.
www.rokas.c om
page 18
Athens
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E n e r g y
N e w s f l a s h
32nd ISSUE
J an u ar y 2 0 1 6
for further information, please contact…
Editing authors
Mira Todorovic Symeonides, LL.M.
Dr. Lazaros Sidiropoulos, LL.M.
Partner
Senior Associate
Rokas (Athens)
Rokas (Athens)
E [email protected]
E [email protected]
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30, Tadeusa Koscuskog
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Vuk Stankovic
Associate
Rokas (Belgrade)
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Lyubomir Talev
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Erjola Aliaj
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Corina B diceanu
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IKRP & Partners Belg
30, Tadeusa Koscuskog
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a t h e n s @ r o k a s . c o m
Viktoria Chatzara, LL.M.
Associate
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E [email protected]
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rade
Str.
r b i a
2 6 5
3 4 9
c o m
B e lg r a d e
Bucharest
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Podgorica
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32nd ISSUE
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Authors (cont.)
IKRP Rokas & Partners Ukraine
15, Panasa Lyubchenko Str.
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Stefania Chatzichristofi
Associate
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Evridiki Evangelopoulou
Associate
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I.K. Rokas & Partners Binieda Kancelaria Prawna sp.k.
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Piotr Kloc
Associate
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a t h e n s @ r o k a s . c o m
Paraskevi Charalampidi
Associate
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E [email protected]
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page 20
Athens
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Kiev
Podgorica
Prag ue
Sarajevo
Skopje
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Tirana
W ar s aw
Zagreb