Energy infrastructure – a kick-start from Brussels.ppt

Why infrastructure? Because it links us to new sources and types of energy, so promoting competition by giving new entrants access to grids, and security by creating diversity and alternative supply. Of low carbon energy, new infrastructure essential to renewables, less so to nuclear. Because the establishment of cross-border infrastructure, sometimes in physical and often in regulatory terms, is what the EU is traditionally all about. In energy infrastructure European Commission proposing in 2011 to extend EU involvement into three new areas – permitting/financing/external policy. Why a kick-start? Not enough is being built. ENTSO-E estimates need for 35,000 km of new lines and 6,900 km of upgraded lines by 2020. Requires doubling of grid extension over next decade. Even with EU’s 3rd package, the market won’t deliver sufficient investment, as OIES has pointed out and the European Commission now realises, following UK U-turn. Closer coordination, at EU and regional level, of regulators and TSOs creates better strategic planning ability. Awkward political context for new EU initiatives. But streamlining of national permitting procedures useful, if politically feasible. A public sector bank like EIB is valuable to countries like UK which don’t have one. Permitting problems Non-delivery of Euros 100bn infrastructure, 40bn due to permitting and 60bn due to financial and regulatory issues. Objections – EWEA says on average 55 months needed to get onshore turbine permit, and 32 months for offshore. Habitats and Birds directives, and Natura network of 26,000 protected sites across the 27 countries = 18 % of all EU territory. Permitting solutions? Selection of 12 priority ‘projects of common interest’ (PCIs) eligible for streamlined national planning process and EU finance. Set up ‘one-stop shop’ authorities in MS to coordinate permitting process or take actual permitting decision. UK got this, East Europeans especially bad (ie.Hung 5 different types of permit fr