Euro-Med energy market and independent regulation: the key role of Italy and Russia

Transcription

1 Euro-Med energy market and independent regulation: the key role of Italy and Russia Fabio Tambone Head of external international relations, Autorità per l energia elettrica, il gas e il sistema idrico (AEEGSI) General Coordinator, MEDREG (Mediterranean Energy Regulators) Rome, 30 March 2017, Centro Russo di Scienza e Cultura 1

2 OUTLINE 1. The importance of energy markets regulation 2. Barrier to Investments in Infrastructures 3. Focus on gas sector: Euro-Mediterranean scenario and the key role of Russia 4. AEEGSI and FTS - Federal Tariff Service of Russia 5. Future perspectives for gas markets 2

3 1. The Importance of energy markets regulation 3

4 THE IMPORTANCE TO REGULATE Regulation is a tool for the development and the integration of energy markets, promotion and not discriminatory access to infrastructures It is necessary to implement energy policies and improve security of supply For Investors Ensure the creation of a competitive environment with stable and clear rules, in the medium term For Consumers Thank to market competition more efficient prices, tariff definition for infrastructures and vulnerable consumers protection measures are guaranteed 4

5 PURPOSES AND INSTRUMENTS OF REGULATION Promotion of competition Guarantee efficiency and service quality Cost-effectiveness and profitability of the regulated service Consumer protection Supporting new infrastructures investments and implementing criteria for access to infrastructure and for interconnection to networks Definition of obligations on operators (accounting and administrative unbundling rules, standards of quality and safety standards, etc.) Accountability and monitoring: reports to the Government and Parliament, consultations, enquiries, investigations, sanctions. 5

6 2. Barriers to Investments 6

7 BARRIERS TO INVESTMENTS Political instability and/or lack of clear institutional frameworks Lack of national reforms Insufficient market demand due to the underdevelopment of markets Lack of coordination and/or cooperation (e.g., between TSOs, between TSOs and regulators) Financial feasibility of the project (namely technical and financial feasibility, e.g., adequate revenues) Regulatory and/or legal obstacles (e.g., administration, permitting, licensing, etc.) Lack of interest in interconnection projects from the public sector Technical barriers 7

8 HOW TO OVERCOME BARRIERS Establish a competitive and reliable energy markets Promote deeper harmonization of national regulatory reforms Increase the use of existing interconnections Evaluate the economic benefits of new cross-border infrastructure projects Enhance cooperation between regulators and TSOs, multilateral and bilateral cooperation 8

9 3. Focus on gas sector: Euro-Mediterranean scenario and the key role of Russia 9

10 GAS SUPPLIES BEETWEEN EU AND NON EU-COUNTRIES 10

11 25/06/2001 UC-MEP 11

12 GAS SCENARIO - ITALY In 2016 Italy s imports of natural gas were around 65 bcm 90% of the gross domestic consumption is satisfied by imports while the remaining 10% by domestic production (AEEGSI annual report 2016 source) 12

13 4. AEEGSI and FTS - Federal Tariff Service of Russia 13

14 AEEGSI RELATIONS WITH FTS - THE FEDERAL TARIFF SERIVCE OF RUSSIA AEEGSI and FTS cooperation at bilateral level cooperation discuss about electricity market design and structure electricity prices and renewable energy electricity tariff regulation, vulnerable categories and networks consumer and quality regulation in the electricity sector evolution of the gas regulatory framework 14

15 AEEGSI RELATIONS WITH FTS - FEDERAL TARIFF SERIVICE OF RUSSIA AEEGSI and FTS cooperation at multilateral level FTS and AEEGSI are very active Members in ERRA (Energy Regulators Regional Association) and MEDREG (Mediterranean Energy Regulators). The 2 regulators organizations work a more harmonized regulation at regional level, both on electricity and gas sectors. An MoU will be signed soon. WFER 6: Cooperation for the organization of the 7th Edition of the WFER (World Forum on Energy Regulation) to be held in Mexico in March

16 5.Future perspectives for gas markets 16

17 EUROPEAN LEGISLATION The European Union is heavly dependent on the import of natural gas. Gas consumption constitutes approximately 21% of the EU s energy mix (EC source) In 2016 the EU has imported gas mostly via pipelines and from three producing area: Russia, Norway and North Africa In February 2016 European Commission presented a set of measures «Winter Package»: Revision regulation security of supply (347/2013): definition of a new regional approach to foster security of supply measures Revision intergovernamental agreements: in order to enhance relations at bilateral level and promote more competitive and transparent markets New strategy for LNG and gas storage: promote LNG as a new alternative source 17

18 THE ITALIAN CASE Italy has a crucial role for the energy interconnections towards the Mediterranean, North Europe and South East Europe. Italy will be able to consolidate its role (gas hub?), mainly for gas market 1. If the Mediterranean succeeds in being more and more at the center of EU energy strategy 2. If regional cooperation will be strengthened 3. If our country will keep consolidating the relation with Russia 18

19 ANNEX MEDREG (Mediterranean Energy Regulators) 25/06/

20 MEDREG MEDITERRANEAN ENERGY REGULATORS The Association of the Mediterranean Regulators for Electricity and Gas (MEDREG) is a non profit association of energy regulators of 21 Mediterranean countries, promoted by the Italian regulator and the CEER and supported by the EU MEDREG promotes a transparent, stable and harmonized regulatory framework in the Mediterranean Region fostering market integration and infrastructure investments, as well as aiming to consumer protection and enhanced energy cooperation AEEGSI holds the Permanent Vice-Presidency of the Association and hosts at its headquartes in Milan the MEDREG Secretariat 25/06/

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22 MEDREG ORGANISATION CHART