ROMANIAN ENERGY CENTER ASSOCIATIONs OBJECTIVES AND ROLE IN

ROMANIAN ENERGY CENTER ASSOCIATION’s OBJECTIVES AND ROLE IN RESERVE Dr. Mihai PAUN Vice-President Romanian Energy Center RE-SERVE Project Kick off Meeting Aachen, Germany 18 -19/10/16

CONTENT • Romanian Energy Center (CRE) – Objectives & Activities • EU Projects with CRE’s participation • The Role of CRE in RE-SERVE Project • RE-SERVE WP 6 • NETWORK CODES • Final Remarks

Romanian Energy Center - CRE • The Romanian Energy Center is a non-governamental and non profit Association representing the interest of state-owned and private companies operating in the Romanian Energy Market, in relation with EU and National Institutions; • Active in all relevant areas including: electricity, oil and gas, coal, renewables, energy equipment and services plus R&D&I and Legal assistance; • CRE contributes to the European and National decisionmaking process, promotes infrastructure investments and supports the transition to a decarbonized energy system.

MEMBERS - CRE 16 Members: Public and Private Sector ● ADREM INVEST ● BIOENERGY ● CEZ România ● Complexul Energetic Oltenia ● CONPET ● ELECTRICA ● ECRO ● E. ON România ● ENERGOBIT ● EXIMPROD ● INSTITUTUL DE STUDII SI PROIECTARI ENERGETICE ● ROMGAZ ● TRACTEBEL ENGENEERING – GDF SUEZ ● TRANSELECTRICA ● TRANSGAZ ● ŢUCA ZBARCEA & ASSOCIATES

Romanian Energy Center - CRE Events in Romania and Brussels Position papers to Romanian and European policy consultations Coordinator of the Center for Dialogue and Cooperation 16+1 – China CEEC

ROMANIA ENERGY DAY 2016 “Regional and European Values for Sustainable Energy in Central and Eastern Europe” 5 th Romanian ENERGY DAY, Bruxelles • OBJECTIVE – To Inform the representatives of EU institutions in Bruxelles and to contribute to EU decision making process on energy priorities, projects and programs in Central and South-East Europe and in Romania; – To Facilitate investments in energy infrastructure, to support Energy Market Integration and to increase energy security in the Region; – To proactively contribute to the development of HV electricity, oil and gas corridors and to increase interconnection capacity in the Region; • Extended specialised media coverage e. g. EURACTIV, Calea Europeana, Energynomics. ro, Romanian TV. 6

Romanian Energy Center - CRE

CRE’s Position Papers Romania’s National Energy Strategy MOU Between Romania’s Guvernment and Republic of Moldova Risk Preparedness in the Area of SOS New Energy Market Design Regulation Programe of ANRE 2016 Corporate Guvernance – Law 109/2011 - Position Paper of CRE on the Preparation of the New EC Directive on Renewables after 2020 (Link) - Position Paper of CRE on the Modification of Energy Efficiency Law (Link) 8

CENTER FOR DIALOGUE AND COOPERATION IN ENERGY (CDCDE), 16+1 represents the economic cooperation enhancement format between China and Central and Eastern European Countries Priority Domains/ Committees Investments and Finance Commercial Cooperation Research and Development Legislation and Regulation Renewable Energy Smart Grids Efficiency Sources Coal Nuclear Energy WG WG WG WG WG

ROMANIAN ENERGY STRATEGY 2016 -2013 with an Outlook towards 2050 • 3 KEY OBJECTIVES: • energy security • competitive energy markets • clean energy • 6 STRATEGIC OPERATIONAL OBJECTIVES: • • • diverse and balanced energy mix competitive and regionally integrated energy markets lower energy poverty decarbonization increase energy efficiency better governance

Romanian Energy Center - CRE

CURRENT INVOLVMENT OF CRE IN EU PROJECTS RE-SERVE, SUCCESS, Wise. GRID Renewables in a Stable Electric Grid SUCCESS - Securing Critical Energy Infrastructures Wide scale demonstration of Integrated Solutions and business models for European smart GRID

The Role of CRE in RE-SERVE Project • WP 1 System level work for RES integration [2 pm] • Participant in Tasks 1. 1, 1. 2, 1. 4 and 1. 5 • WP 2 Frequency stability by design [2 pm] • Participant in Tasks 2. 1 and 2. 6 • WP 5 Test beds for validation of research results [5 pm] • Participant in Tasks 5. 1 and 5. 3 • WP 6 Regulatory, Legal, Ethical & Business Models for RES [24 pm] • WP Leader and Leader of Task 6. 1 with Deliverables D 6. 1 and D 6. 2 • WP 7 Creating impact with RE-SERVE [6 pm] • Leader of Task 7. 2 and Participant in Task 7. 3 TOTAL: 39 pm

RE-SERVE WP 6 “A Harmonized Set of Rules to Better Address Governance of Cross Border Electricity Market Flows and Transactions in Europe” THE CHALLENGE One Energy Union, 28 Heterogeneous Energy Markets

Three Pillars for delivering the IEM

What does RES of up to 100% means? Smart metering Smart grids Prosumer NETWORK CODES DSM EVs Balancing markets VPPs

5 Influencing Factors of RES integration up to 100% Technology development Economic viability Political commitment Social acceptance

ENTSO-E DEFINES THE NETWORK CODES

The IEM: meeting Europe’s low carbon target

NETWORK CODES MATTER - They Form The Foundation on which the IEM is Being Built

What is a Network Code?

How are Network Codes Developed?

OVERVIEW Current and Future Network Codes

THE PROCESS of Network Codes Developement

The puzzle of Network Codes

Grid Connection related Network Codes

CHALLENGES: FINAL REMARKS One Energy Union - 28 Heterogeneous Energy Markets Up to 100% RES integration: • • • Hard to believe by TSOs and DSOs Strong push by Environmental Groups Possible blockages by oil & gas giants, e. g. “The New 7 Sisters” (Aramco Saudi, Gazprom Rusia, CNCP China, NIOC Iran, PDVSA Venezuela, Petrobras Brazil, Petronal Malaysia) • Huge Infrastructure Investment Needs SOLUTIONS: • • RE-SERVE Other EU Initiatives • Technical development cheaper, more versatile & widely available • Paradigm shift towards Vertically Integrated Utilities

THANK YOU! Dr. Mihai PAUN Vice-President Romanian Energy Center 37 Square de Meeûs, 4 th Floor, 1000 Brussels, Belgium +3227917531; +32478652803 Mihai. Paun@crenerg. org www. crenerg. org

Romanian Energy Center - CRE