▶️ Network development: Parties to cooperate, including on interconnectors, but not much detail.
▶️ Security of Supply: Parties to cooperate, again not much detail. Can't see any references to a solidarity principle.
(Articles ENER. 16 and ENER. 17, page 165)
6/
Cooperation between TSOs & Regulators:
- UK TSOs (i.e. National Grid) to cooperate with EU TSOs through cooperation with ENTSO-E and ENTSOG but not membership
- UK regulator (@Ofgem) to cooperate with EU regulators through ACER. Again, no UK membership
(Articles ENER.19+20)
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New cooperation forum between UK and EU on offshore renewable energy.
Looks like UK no longer a member of North Seas Energy Cooperation, so a new forum is needed.
(Article ENER 23, page 169-170).
See summary of our report on Future of North Sea :
If I understand it correctly, new system will produce net flows on the interconnectors, rather than prices.
Creates a risk that interconnectors flow the "wrong way" (i.e. from high prices to low prices).
Algorithm is separate to EU day-ahead market coupling (EUPHEMIA)
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Timeline to develop new system:
▶️ By April 2021: CBA and outline technical proposals
▶️ By November 2021: Technical proposals
▶️ By April 2022: System starts operating
p.785
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Other provisions in the deal:
▶️ New Specialised Committee on Energy to discuss/implement some bits of the energy title and annexes (page 12)
▶️ Commitment to carbon pricing in the section on "level playing field"
[Title XI, Article 7.3, page 202]
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Overall:
▶️ Lots of sensible provisions, much to gain for both sides
▶️ Market coupling will be weaker, even with new system (Apr 2022)
▶️ Welcome focus on North Sea
▶️ Need to understand more on termination provisions
More detail on market coupling (trading on elec interconnectors). Aim to implement new arrangements on price coupling by April'22 (presumably through new market coupling platform)
Implies some loss of efficiency in short term.
2/
Looks like arrangements for gas trading will remain relatively similar to today, with UK industry retaining access to PRISMA platform for trading gas capacity.
Not much detail yet but looks like something on preserving efficient trading on interconnectors, preserving cooperation on nuclear power, and new mechanisms to cooperate on renewables, which is particularly important for offshore wind in the North Sea.
EU view on the consequences of Brexit for UK-EU energy trade.
UK outside of EU IEM, EU ETS and Euratom (as we knew)