1. Energy Community Secretariat Gabriela Cretu 3 rd RES Workshop Vienna, 10-11 June 2014 Renewable Energy in the Energy Community Gabriela Cretu Electricity and RES Expert

2. Energy Community Secretariat Gabriela Cretu Energy Community Map European Union Contracting Parties Candidate Observers Treaty signed in 2005 – until 2016 Extended until 2026 HL Reflection Group led by Prof. Jerzy Busek

3. Energy Community Secretariat Gabriela Cretu Stable Regulatory and Market Framework Create a regional energy market Attract investment in power generation (including renewable energy) and energy networks Enhance security of energy supply  diversification of the energy mix Improve the environmental situation

4. Energy Community Secretariat Gabriela Cretu The Treaty as a Framework – the acquis  Energy – 3 rd Energy Package adopted in October 2011  Competition  Renewables – Directive 2009/28/EC – adopted in October 2012  Environment – revised in October 2013, EID, LCP, IED (new plants) Directives  Security of Energy Supplies – adopted in 2008  Energy Efficiency – adopted in October 2009, 2010  Energy Statistics – adopted in October 2012  Oil – adopted in October 2012 “…with a view to ensuring high levels of investment security and optimal investments”

5. Energy Community Secretariat Gabriela Cretu Energy Community Strategy 18 October 2012 – Ministerial Council meeting in Montenegro adopted the Regional Energy Strategy 24 October 2013 – Ministerial Council meeting in Belgrade adopted  35 Projects of Energy Community Interest  14 electricity generation projects  9 electricity infrastructure  10 gas infrastructure  2 oil infrastructure http://www.energy- community.org/portal/page/portal/ENC_HOME/INST_AND_MEETINGS?event_reg.c ategory=E13237 * The projects were selected based on a cost benefit analysis methodology, following an extensive public consultation. If a project breaches the Energy Community acquis or national legislation, or an environmental impact assessment has not been performed properly, the PECI label may be removed.

6. Energy Community Secretariat Gabriela Cretu PECI - RES Projects Contracting PartyGeneration capacitites Renewable Energy AlbaniaWind PP Vajc-Velipoje AlbaniaHPP Skavica BiHHPP Dabar BiH + HRHPP Dubrovnik (Phase II) BiH + RS4 HPPs Upper Drina and 3 HPPs Midlle Drina MontenegroHPP Lim Serbia10 HPPs Ibar River Serbia5 HPPs Velika Morava How much investments will be done by 2020 to count towards the targets?

7. Energy Community Secretariat Gabriela Cretu Renewable Energy Acquis 18 October 2012 - Ministerial Council Decision on the adoption of the new RES Directive in the Energy Community – D2012/04/MC-EnC http://www.energy-community.org/pls/portal/docs/1766219.PDF Amending Article 20 of Energy Community Treaty  Implementation of Directive 2009/28/EC in the Contracting Parties  Implementation deadline – 1 January 2014  Submission of NREAP – 30 June 2013 - Serbia, Kosovo*, Moldova - OK - Infringements letters sent to other 5

8. Energy Community Secretariat Gabriela Cretu 2020 RES Targets * Throughout the entire document, this designation is without prejudice to positions on status, and is in line with UNSCR 1244 and ICJ Opinion on the Kosovo declaration of independence.

9. Energy Community Secretariat Gabriela Cretu 2020 RES Targets 27% 11% 25% 16%

10. Energy Community Secretariat Gabriela Cretu RES from 2009 to 2020 WESTERN BALKANS POWER MIX 2009 EnC20092020CAGR GFEC (Mtoe)93.6108 1,31% RES (Mtoe) 8.97 17.28 6,14% RES share9.6%16%

11. Energy Community Secretariat Gabriela Cretu Article 8 – Statistical Transfers from Contracting Parties to Member States of the European Union - Statistical transfer between CPs and EU MS possible under conditions, - A statistical transfer shall not affect the achievement of the national target of the Contracting Party making the transfer. Article 9 - Joint support schemes between Contracting Parties and Member States of the European Union Joint Projects between EU MS and Contracting Parties are governed by Article 9 and 10 of the Directive – it will require the physical transfer of electricity to count for EU MS target MC Decision 2012/04/MC-EnC Legal Adaptations - Cooperation Mechanisms Gabriela Cretu

12. Energy Community Secretariat Gabriela Cretu Article 11 Statistical Transfers and Joint support schemes shall be adopted by a majority of the Members of the Ministerial Council (favourable vote of the European Union) only if all the following conditions are met: a)Contracting Party has fully transposed Directive 2009/28/EC, as adapted by this Decision; b)that the envisaged statistical transfers or distribution rule (as appropriate) are based on reliable and accurate energy statistics that are compiled in accordance with the European Union's methodology on energy statistics, c)and that the Contracting Party is expected to exceed the indicative trajectory and binding target without including potential contributions from joint projects with third countries. Gabriela Cretu MC Decision 2012/04/MC-EnC Legal Adaptations - Cooperation Mechanisms

13. Energy Community Secretariat Gabriela Cretu 2009 RES shares are calculated with revised biomass data based on consumption surveys - Not all the Contracting Parties have incorporated the biomass data in official energy statistics yet In 2012, Ministerial Council decided to incorporate also the rules on energy statistics in the energy acquis [Reg.(EC) 1099/2008 and Dir. 2008/92/EC] - Still energy balances for 2012 do not include the revised biomass figures (BiH, FYR of Macedonia, Moldova, Ukraine) RES Consumption Data

14. Energy Community Secretariat Gabriela Cretu Serbian RES Objectives – NREAP Total installed RES in 2009 2224 MW Total new RES in 2020 1092 MW Wind energy 500 MW HPP (over 10 MW) 250 MW SHPP (up to 10 MW) 188 MW Biomass – CHP plants 100 MW Biogas (manure ) – CHP plants 30 MW Solar energy 10 MW Landfill gas 10 MW Waste 3 MW Geothermal energy 1 MW EnC20092020 GFEC (EE) (ktoe)91509495 RES (ktoe) 1943 2563.6 RES share21,2%27%

15. Energy Community Secretariat Gabriela Cretu Kosovo* RES Objectives – NREAP Kosovo * planned reaching 29,47% RES target in 2020 (25% binding) Total installed RES in 2009 46 MW Total new RES capacity in 2020 719 MW Wind energy 150 MW HPP Zhur 305 MW SHPP (up to 10 MW) 240 MW Biomass – CHP plants 14 MW Solar energy 10 MW Solar thermal70 MWth Heat pumps10 MWth  Risk of not reaching the target – HPP Zhur  Not planned any cooperation mechanisms despite more ambitious voluntary target

16. Energy Community Secretariat Gabriela Cretu Moldovan RES Objectives – NREAP Moldova NREAP is adopted with 20% RES share in 2020 (17% binding) Total new RES capacity in 2009 18 MW Total new RES capacity in 2020 175 MW Wind energy 150 MW Biogas 10 MW  Solar thermal – 8 ktoe in 2020  solid biomass – 334 ktoe in 2020

17. Energy Community Secretariat Gabriela Cretu RES Capacities (1) Out of which 496 MW in Crimeea (407 MW solar and 88 MW wind) Sources: Ministries, NRAs and Energy Agencies

18. Energy Community Secretariat Gabriela Cretu www.energy-community.org Thank you for your attention!