EC Top Brass Visit Bucharest for Co-operation Talks
Senior European Commission (EC) executives and energy ministry officials from 17 European countries visited Romania's capital Bucharest September 28 to discuss ways to improve their regional co-operation and extend it to electricity.
Present were the EC vice-president for the energy union Maros Sefcovic, its commissioner for climate action and energy Miguel Arias Canete and nine energy ministers from within the EU.
The EC launched in 2015 an initiative called Central and South-Eastern European Energy Connectivity (Cesec) in a region that – with the exception of Slovenia – relied on its own production where possible, balanced by Russian imports.
During the meeting the ministers initialed the Connecting Europe Facility grant agreement for the Krk LNG terminal in Croatia and reconfirmed their commitment to complete the remaining gas projects under Cesec. They also adopted an updated action plan on gas market and regulatory aspects setting out progress made since September 2016. In February the EC agreed to fund Krk to the tune of just over €100mn ($118mn).
The Krk LNG terminal remains unbuilt, at a time of proliferating pipeline interconnectors in eastern Europe; further, the threat of high transmission tariffs through the Croatian system also could destroy its economics. The project though has tendered for a floating regas ship provider, with the aim of opening to imports in 2020; the deadline for shipowners to submit offers closes September 29.
Sefcovic said: "Co-operation under the Cesec umbrella has turned into an exemplary success story, proving that solidarity is the solution. Given its rapid accomplishments in the field of gas, we are expanding the scope of the co-operation in the region to electricity, renewables and energy efficiency."
Canete said: “Thanks to the high level political commitment we have witnessed today, and to the smart mobilisation of EU funds, we will continue to complete the energy infrastructure the region needs. By extending Cesec's scope beyond gas, we will ensure effective access to alternative sources of energy, promote competition and lower prices, while also decarbonising the region's economies."
The ministers signed a memorandum of understanding which complements the existing Cesec initiative, including a joint approach on electricity markets, energy efficiency and renewable development. It also incorporates a list of priority projects to build an interconnected regional electricity market, as well as specific actions to boost renewables and investment in energy efficiency in a region with vast growth potential in these areas. National roadmaps for improving trading arrangements in the region were also agreed.
The meeting also saw the launch of two new working groups of the gas transmission system operators: one on the implementation of reverse flow on the Trans-Balkan pipeline system, and the other on the so-called "Vertical Corridor" between Bulgaria, Greece, Romania and Hungary; both to be facilitated by the European Commission.
However it remains unclear how committed Hungary is to EU regional gas integration projects.
William Powell