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Turkey, Romania and Croatia could face investment gaps in energy by 2040

Turkey, Romania and Croatia will have to invest more in the energy infrastructure if they want to avoid investment gaps in the sector by 2040, the new Global Infrastructure Hub report on infrastructure investment needs and gaps shows.

The GI Hub, established by the G20 to increase the flow and quality of infrastructure investment opportunities in the world, has recently launched Global Infrastructure Outlook, an analysis with Oxford Economics of infrastructure investment needs across 50 countries and 7 sectors to 2040.

The report analyses situation in three countries in the Southeast Europe, namely Turkey, Romania and Croatia.

Energy infrastructure forecasts

According to the report, Turkey needs to invest USD 242 billion (EUR 206 billion) in energy infrastructure by 2040, but it will invest only USD 194 billion (EUR 165 billion) based on the current trends. This colud lead to a gap of USD 48 billion (EUR 40.9 billion).

Romania should invest USD 62 billion (EUR 52.9 billion) in energy infrastructure while the current investment trends show that it is on the path to invest USD 57 billion (EUR 48 billion), which would lead to a gap of USD 5.8 billion (EUR 4.9 billion).

Croatia will, based on the current trends, invest USD 20 billion (EUR 17 billion) while the investments needed amount to 23 billion (EUR 19.6 billion) which means that it could face a gap of USD 2.8 billion (EUR 2.3 billion).

Water infrastructure forecasts

When it comes to the water infrastructure, Romania needs to invest USD 18 billion (EUR 15 billion) which concurs with current investment trends with a gap of USD 3,9 million (EUR 3.3 million).  The report forecasts similar trend Croatia – the current investment trend of 6.3 billion (EUR 5.3 billion) is similar to the investment needs by 2040 with a gap of USD 11 million (EUR 9.3 million).

By 2040, Turkey will need to invest USD 53 billion (EUR 45 billion) in water infrastructure but it will invest 51 billion (EUR 43 billion) based on the current tends leading to gap of USD 2,2 billion (EUR 1.8 billion).

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Final Facilitating multi-level governance for Energy Efficiency (multEE) project conference

 The GIZ Open Regional Fund for South-East Europe – Energy Efficiency (ORF-EE), in collaboration with its Facilitating multi-level governance for Energy Efficiency (multEE) project consortium partners and the Energy Community Secretariat, held the Final multEE Project Conference on June 29 in Vienna.

The conference attracted government officials from nine multEE partner countries, as well as representatives from all Energy Community (EnC) contracting parties. The event served as an interactive forum for exchange and joint learning, rooted in a participatory approach. It officially concluded the implementation of the multEE project by summarizing and reviewing all its achievements and impacts to date, while securing a platform for future cooperation.

The event was organized back-to-back with the triannual meeting of the Energy Efficiency Coordination Group of the Energy Community, which brings together EU countries and its neighbors to contribute to an integrated pan-European energy market.

Dirk Buschle, the Deputy Director of the Energy Community Secretariat, opened the conference with a welcome address in which he explained that the EnC has the ambition to follow the EU on its path to fight climate change and reiterated that the EnC is committed to achieving the transition towards clean energy at the same speed as rest of Europe. Buschle used the opportunity to emphasize that “effective horizontal and vertical governance is key to reaching this goal.”

Representative of the European Commission Energy Policy Coordination Unit of DG Energy, Leonardo Zannier, provided at the conference an overview of the Commission’s proposal on governance of the Energy Union. A special focus of his presentation were the integrated energy and climate plans, which are key elements of the governance proposal envisaged to streamline climate and energy reporting requirements. The conference participants were especially interested in the topic of reporting methodologies and related data requirements. Zannier, hence, also used the opportunity to address the proposed time schedule for submission of the first set of reports due by the end of 2018.

The multEE project is led by the GIZ ORF-EE, and implemented together with a consortium of 10 partners from 9 European countries. The consortium integrates various leading institutions working in the field of energy efficiency research, policy formulation and implementation. The multEE project aims at improving the consistency and quality of energy efficiency policy planning and implementation. Main focus is on development and implementation of innovative monitoring and verification (M&V) schemes, and improvement of coordination between different administrative levels in partner countries. The aim is further on concerted planning and projects implementation and active involvement of the civil society, the business sector and various other actors.

ORF-EE developed Monitoring & Verification tool (MVP) finds use in EU

The focus of the conference, among others, was also on the Monitoring & Verification Platform (MVP) – an IT tool for monitoring and calculating energy savings and CO2 emission reduction, which has recently attracted the interest of several EU member states.

Originally developed by the German Government financed Open Regional Fund for South-East Europe – Energy Efficiency for western Balkan countries, the MVP system was enhanced through the GIZ and EU co-financed multEE project, which is implemented as part of the EU Horizon 2020 program. The IT application is based on so called “bottom-up” methodologies determining energy savings from concrete projects without relying on energy statistics (“top-down”), which are quite insufficient in many EU and South-East European countries.

MVP and the bottom-up methodologies proved to be very effective in western Balkan countries for fulfilling the reporting obligations on the implementation of national and local Energy or Climate Action Plans and for improving the information exchange between national and local level. With the possibility to calculate savings by using reference values, it provides a cost-effective alternative to ex-post audits and can also be handled by users with limited technical knowledge.

The MVP is thus currently being implemented in Croatia, Greece, Latvia, Lithuania, FYR Macedonia and Slovakia and presents a good example where smart and innovative solutions, effectively addressing the issues of efficiency, coherence, transparency of monitoring and reporting of energy efficiency measures, also find use in the EU.

Benjamin Struss, GIZ ORF-EE multEE Project Coordinator, on the occasion elaborated the project’s main outputs explaining how MVP and the second pillar of the project – improving horizontal and vertical coordination schemes, can actually contribute towards the full implementation of the Energy Efficiency Directive and the Winter Package “Clean Energy for all Europeans”.

This is also reflected in the conclusions from the Final multEE Conference panel discussion stating that the MVP tool offers EU member states and EnC signatories the opportunity to monitor, evaluate and refine their energy efficiency policies with a standardized, coherent and efficient tool. However, use of the MVP system in the mainstream monitoring process and its legal anchoring, and building of necessary capacities for its use, still lies ahead for most of the countries represented. Referring to this, Struss stressed “the work of multEE, although already quite comprehensive and very effective, is a good basis for implementation of further necessary efforts.”

Furthermore, it was concluded that the political momentum for improved multi-level governance for energy efficiency is currently quite positive regarding the introduction of the Winter Package at EU level.

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Two more 2 MW PV project proposals submitted to Albanian authorities

The Albanian Ministry of Energy and Industry has received two more proposals for PV projects with a capacity of up to 2 MW. The projects, which will likely compete in the country’s solar energy auction that was announced by the government in May, will add to 11 similar proposals for PV and hydropower projects of up to 2 MW that have been filed to date by the ministry.

A first project was submitted by the local company Inside Computer System Sh.P.K. The plant is planned to be located in a former industrial complex near Elbasan district, central Albania. The project’s required investment is estimated at €2.3 million. A second project under review is a 2 MW solar facility planned by Wonderland Sh.P. in Grabnja, in the Lushnjë district, also in central Albania. This project, however, is expected to be much cheaper than the first one, as its estimated cost is, according to the ministry’s document, only €1 million.

In mid-July, the ministry had accepted a similar proposal from Albanian company In Food Sh.P.K. for a project planned for the municipality of Gomsiqja, in the Shkodër County, northern Albania. On top of this, the government is currently examining another 10 similar proposals for PV and hydropower projects of up to 2 MW. These projects will be fast-tracked in order to ensure that this new installed capacity may be operational starting next year.

The country’s minister of energy Entela Cipa recently stated solar projects selected in the upcoming auction are expected to reach an installed power capacity between 30 MW and 50 MW.

Although the date of the auction is still unknown, the government is currently being assisted by the European Bank for Reconstruction and Development (EBRD) in setting up the tender rules.

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Albania Builds on PENETRON for First Waste-to-Energy Plant

In June 2017, Albania inaugurated its first waste-to-energy plant in Elbasan, which will almost eliminate the community’s landfill problem. PENETRON ADMIX was used to treat concrete used for the plant’s below-ground structures.

Located on the Shkumbin River in central Albania, Elbasan is one of the country’s largest cities (population 128,000) and also one of its most polluted. The city’s new waste-to-energy plant uses trash as a fuel for generating power, just as other power plants use coal, oil, or natural gas. The burning trash heats water into steam, which drives a turbine to create electricity. Generally, this process can reduce landfill volumes by up to 90% and will extend the lifespan of Elbasan’s landfill to more than 80 years.

The €26 million ($27.9 million) energy plant will generate 2.85 MW of electricity per hour by incinerating trash; the leftover fly ash and granulate, incidentally, can be used in the production of concrete and asphalt.

“Our admixture provides the new structures at Elbasan permanent protection against concrete deterioration caused by chemical attack, freeze-thaw cycles and corrosion,” adds Theodor Mentzikofakis, General Director of PENETRON Hellas.

The project managers specified PENETRON ADMIX for about 2,000 m3 (2,600 cubic yards) of concrete used for all the new below-ground structures at the Elbasan plant, some extending down to a depth of 8 m (26 feet). Over 1,000 m (3,300 feet) of PENEBAR SW-45 waterstops permanently sealed the construction joints, and topical materials (PENECRETE MORTAR and PENETRON) were applied to eliminate any cracks that developed after curing to waterproof all the basement structures.

“The Elbasan plant is yet another large, successful project in Albania that shows the clear advantages of PENETRON integral crystalline products,” concludes Mr. Mentzikofakis. “Both the customer and our team are happy with the results!”

The PENETRON Group is a leading manufacturer of specialty construction products for concrete waterproofing, concrete repairs and floor preparation systems. The Group operates through a global network, offering support to the design and construction community through its regional offices, representatives and distribution channels.

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WB6 electricity report: Slow progress in establishing day-ahead markets

The Western Balkan Six (WB6) countries have been progressing in developing their electricity markets at different pace, while the regional market is still to take shape, the Energy Community Secretariat assessed in its WB6 Electricity Monitoring Report.

Spot Market Development (status 07/2017)

Spot Market Development (status 07/2017)

The report was presented at the WB6 Summit in Trieste on July 12. It analyses progress made at national and regional level in the implementation of energy soft measures since last year’s Summit in Paris.  Those measures were agreed in 2015 within the WB6 initiative which aims to enhance cooperation between the countries in the region. Since then, the Western Balkan countries have implemented more than half of the energy soft measures, the report says.

“To speed up the process, governments will have to adopt decisions that will remove the remaining blocking points, as well as to step up regional cooperation of both Western Balkan 6 parties and EU Member States towards an efficient integration of their day-ahead and balancing markets”, the report concludes.

SEEPEX only functional day-ahead market in region

Cross-border Balancing (status 07/2017)

Cross-border Balancing (status 07/2017)

Western Balkans countries have been still slowly progressing in establishing day-ahead markets and their coupling.

The report states that the power exchange SEEPEX in Serbia remains the only functional day-ahead market in the Western Balkan 6 although other countries have taken activities for starting a day-ahead market. Montenegro stands out in this regard with the establishment of the power exchange company in June 2017.

The report notes that countries have mainly opted for the establishment of national power exchanges in spite of the fact that their markets are small in size, rather than to look for adhering to existing power exchanges.

The Energy Community recommends to the countries to carefully consider financial viability of the future power exchanges and measures that will contribute to boosting their liquidity, including through an efficient market coupling process.

Further steps needed towards balancing cooperation

The Energy Community estimated that truly regional balancing cooperation has still not taken off in the Western Balkans. The countries in the region have been developing models for cross-border exchange of balancing energy, but the activities are limited to bilateral cooperation, or within control blocks, such as trilateral cooperation of transmission system operators of Bosnia and Herzegovina, Croatia and Slovenia.

Serbia still not participate in regional capacity allocation

Regional Capacity Allocation (status 07/2017)

Regional Capacity Allocation (status 07/2017)

The progress in regional capacity allocation has also been slow. The only improvement is the inclusion of the cross-border capacities on the interconnection between Macedonia and Greece into the common regional auctioning performed by SEE CAO.

Serbia remains the only WB6 country that is not allocating any of its cross-border capacities through the regional auction office.

No initiative was taken towards Bulgaria’s membership of SEE CAO, for the purpose of allocation of capacities on the interconnection with Macedonia.

Progress achieved in unbundling

Cross-cutting Measures (status 07/2017)

Cross-cutting Measures (status 07/2017)

The most prominent progress since the Paris Summit was made in the area of price deregulation and unbundling of system operators. In four of the Western Balkan 6 countries, the transmission system operators applied for certification. The process was finalized successfully in Albania, where the transmission system operator was certified and subsequently became a member of ENTSO-E.

The report reminds that Serbian transmission system operator had not fulfilled the unbundling requirements of the Third Package.

Overall Implementation of Soft Measures (status 07/2017)

Overall Implementation of Soft Measures (status 07/2017)

Legal unbundling of the distribution system operator has still not been finalized in Albania and Bosnia and Herzegovina while functional unbundling is not yet complete in Macedonia, Montenegro and Serbia.

In Kosovo, price regulation was terminated for generation prices as well as the supply price for high voltage customers and the price for network losses.

For more information go to full report.

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EnC Contracting Parties in preparation of First Energy Efficiency Annual Reports

The Energy Efficiency Coordination Group Meeting (EECG), which was held on June 28 in Vienna, featured a session on monitoring and reporting on the implementation of obligations arising from the EU Energy Efficiency Directive (2012/27/EU). The Directive is to become obligatory in October 2017 for all Energy Community (EnC) contracting parties.

The session addressed the needs and necessary steps for defining and setting of energy efficiency targets to be achieved by all Energy Community (EnC) contracting parties by 2020. The working session was moderated by GIZ ORF-EE project representatives and included the presentation of the progress monitoring and reporting template. Developed by the GIZ ORF-EE project, the template is to be used by the contracting parties for their First Annual Reports as required under the Energy Efficiency Directive (EDD).

The session, also serving as a mini work-shop, featured provision of advise and recommendations by ORF-EE Expert Armin Teskeredžić on the selection of quality sources and data collection for effective report preparation, including a reflection on major legislative and non-legislative measures important in contributing towards fulfillment of 2020 targets.

The template is laid out as such to include data referring to the level of fulfillment of obligations under each specific article of the EED. It also contains information on implementation progress in the different sectors, including primary and final energy consumption values. The template links reporting elements with the EED targets and the implementation roadmap as to allow for a smooth transition from reporting requirements under the old Energy End-Use Efficiency and Energy Services Directive to requirements under the upcoming Energy Efficiency Directive.

Jasna Sekulović, GIZ ORF-EE Manager stated on the occasion that the template will be used for all future reports which are mandatory for all the EnC contracting parties.

During the EECG meeting it was concluded that the ORF-EE, in the coming period, will also provide  support to the contracting parties from South-East Europe through necessary mentoring support focusing on the preparation of the pending report and other relevant obligations.

This content is produced by BGEN partner:  

GIZ Open Regional Fund for South-East Europe – Energy Efficiency (ORF-EE)