Cover

Title Page

Copyright Page

Contents

Contributors

Biographies

Foreword

Introduction

1 - The energy cooperation in the Mediterranean – overview of the main challenges

2 - Origins of the MEDREG Forum

3 - The key partnership between investments and regulation

4 - Overview of the topics discussed at the Forum and the structure of the book

5 - Concluding remarks

References

Part I - A Roadmap for a Mediterranean Energy Community

Chapter 1 - The Regulatory Framework of the Energy Community in South East Europe: Considerations on the Transferability of...

1 - Introduction

2 - Background of the EC concept

3 - Transferring EU policies and mechanisms to SEE

4 - The regional concept as a precondition

5 - The role of investments in transmission networks

6 - The role of regulatory agencies

7 - Outline of investment incentive schemes

7.1 - Tariff Methodologies

7.2 - Mechanisms for Investment Incentives at the Regional Level

7.2.1 - Regional Investment Plans

7.2.2 - Nondomestic Investment (the Regulatory Gap)

7.2.3 - Negative Incentives

8 - A different approach

9 - Conclusions

References

Documents

Websites

Chapter 2 - Defining Euro-Mediterranean Energy Relations

1 - The EU external energy policy: frameworks of analysis

2 - Euro-Mediterranean energy relations

2.1 - A Short History of Euro-Mediterranean Energy Relations

2.2 - The Mediterranean Solar Plan and Its Demise

2.3 - The Recent Relaunch of Euro-Mediterranean Regional Energy Cooperation

3 - Issue (re)definition in the Mediterranean: the securitization of energy matters

4 - Conclusions

References

EC policy documents

Chapter 3 - Renewable Energy in the Southern and Eastern Mediterranean: Current Trends and Future Developments

1 - Booming energy demand in SEMCs

2 - The crucial role of electricity

3 - Renewable energy potential of the region

3.1 - CSP Potential

3.2 - Photovoltaic Potential

3.3 - Wind Power Potential

4 - The potential benefits of renewable energy in the region

4.1 - Macroeconomic Benefits: Meeting Rising Energy Demand at a Lower Price

4.2 - Socioeconomic Benefits: Creating New Jobs and Alleviating Energy Poverty

4.3 - Environmental Benefits: Lowering the Energy Intensity of SEMCs

4.4 - Cooperation Benefits: Enhancing Both Intra-SEMC and EU–SEMC Cooperation

5 - SEMC national renewable energy plans

6 - Barriers to the development of renewable energy in the region

6.1 - The Commercial Barrier: The Need to Reform Energy Subsidies

6.2 - The Infrastructural Barrier: The Key Role of Med-TSO

6.3 - The National Level

6.4 - The Subregional Level

6.5 - The Regional Level

6.6 - The Regulatory Barrier: The Key Role of medreg

6.7 - The Financial Barrier: The Key Role of Institutional Investors

6.8 - The EIB’s FEMIP

6.9 - The New Role of the EBRD in the Southern and Eastern Mediterranean Region

7 - Conclusions: toward a new Euro-Mediterranean renewable energy platform

References

Chapter 4 - Scaling Up Renewable Energy Deployment in North Africa

1 - Energy systems in need of transformation

2 - Initial steps to support deployment

2.1 - Egypt

2.2 - Tunisia

2.3 - Morocco

2.4 - Algeria

3 - Scaling up is challenging

3.1 - Commitment to a “Green Growth” Agenda

3.2 - Regulatory Framework

3.3 - Energy Prices

3.4 - Access to Financing

3.5 - Private Sector Engagement

3.6 - Regional Perspective

4 - Capitalizing on early steps to transform the energy sector and scale up renewables

References

Chapter 5 - The Renewable Energy Targets of the MENA Countries: Objectives, Achievability, and Relevance for the Mediterran...

1 - Introduction

2 - Background

3 - Analysis

3.1 - Motivation

3.2 - Commitment

3.3 - Achievability

3.4 - Relevance

4 - Transnational perspective

5 - Conclusions

References

Chapter 6 - Toward a New Euro-Mediterranean Energy Roadmap: Setting the Key Milestones

1 - Introduction: energy as a key prerequisite for sustainable regional development

2 - The Euro-Med energy landscape: an overview

2.1 - Energy Consumption and Efficiency

2.2 - Energy Production

3 - The first Euro-Med energy milestone: enhancing hydrocarbon cooperation in the region

4 - The second Euro-Med energy milestone: challenging the persistence of energy subsidies

5 - The third Euro-Med energy milestone: promoting energy efficiency

6 - The fourth Euro-Med energy milestone: unlocking the renewable energy potential

7 - The fifth Euro-Med energy milestone: promoting a new interconnected market

8 - The sixth Euro-Med energy milestone: financing the sustainable energy transition

9 - Conclusions: the need for a new Euro-Mediterranean energy roadmap

References

Chapter 7 - Toward a Mediterranean Energy Community: No Roadmap Without a Narrative

1 - Introduction

2 - Pathways toward a Mediterranean Energy Community

3 - High expectations, harsh realities

4 - Managing interdependency: elements for a Mediterranean Energy Community

4.1 - Homework First

4.2 - Consolidating Energy Relations and Launching New Initiatives in New Domains

4.3 - Focusing on the Good Governance of Energy Resources

4.4 - Addressing Energy-Related Hard Security Threats

5 - Concluding remarks: developing a credible Euro-Mediterranean energy narrative

References

Part II - Challenge of Market-Based Regulation

Chapter 8 - EU Pressures and Institutions for Future Mediterranean Energy Markets: Evidence from a Perception Survey

1 - Introduction

2 - Normative diffusion in the energy sector

3 - Perception of rules promotion: results from a semistructured survey

3.1 - Top-Down and Network Pressures for Rules Promotion

3.2 - Bottom-Up Pressures for Rules Promotion

4 - Conclusions

Acknowledgment

References

Chapter 9 - Analysis of Future Common Strategies Between the South and East Mediterranean Area and the EU in the Energy Sector

1 - Introduction

2 - Model description

3 - Scenario description

3.1 - The Current Situation of the SEM Energy System

3.2 - Alternative Energy Strategies for the SEM Region

4 - The Reference Scenario

4.1 - Exogenous Assumptions

4.2 - Energy Demand

4.3 - Power Generation

5 - Alternative EU–SEM strategies

5.1 - Energy Demand

5.2 - Power Generation

5.3 - Carbon Emissions

5.4 - Power Generation Costs

5.5 - Fossil Fuel Trade

6 - Conclusions

References

Chapter 10 - Benefits of Market Coupling in Terms of Social Welfare

1 - Introduction

2 - Day-ahead electricity markets in Europe

3 - Benefits from electricity cross-border trading

4 - Day-ahead market coupling

4.1 - EUPHEMIA Algorithm

5 - Benefits from pan-European market coupling

5.1 - Optimizing the Use of Existing Cross-Border Capacities

5.2 - Cross-Border Electricity Flows in the Right Direction

5.3 - Improving Price Convergence

5.4 - Gross Welfare of Market Coupling and Interconnectors

6 - Some thoughts about cross-border trade between the Iberian electricity market (MIBEL) and Northern Africa

7 - Conclusions

References

Chapter 11 - Power Market Structure and Renewable Energy Deployment Experiences From the MENA Region

1 - Introduction

2 - Unbundling of the power sector

2.1 - On the Reform of the Power Sector

2.2 - Current Unbundling Situation in the MENA Region

3 - Renewable energy and private sector participation

3.1 - Renewable Energy for Utility Supply

3.2 - Renewable Energy for Third-Party Sales

3.3 - Renewable Energy for Direct Export

3.4 - Renewable Energy for Self-Consumption

4 - Renewable energy shares and targets

5 - Conclusion – policy implications

References

Chapter 12 - Northern Perspective: Developing Markets Around the Baltic Sea

1 - Introduction

2 - Political and economic integration in the Baltic Region

3 - Nordic electricity market – a success story

4 - Gas – weakening Russian dominance

5 - Increasing the role of the European Union

6 - Conclusions

References

Part III - Investments for Grids and Generation Projects

Chapter 13 - Private Participation in Energy Infrastructure in MENA Countries: A Global Perspective

1 - Introduction

2 - Global overview

3 - Energy investment

4 - Regional overview – the MENA region

5 - Conclusions

References

Chapter 14 - Investment and Regulation in MENA Countries: The Impact of Regulatory Independence

1 - Introduction

2 - The establishment of regulatory authorities: pitfalls of the institutional endowment of countries

2.1 - Restructuring Utility Industries: The Role of National Regulators

2.2 - The Role of the Institutional Framework

3 - The regulatory and institutional landscape in MENA countries

3.1 - NRAs in MENA Countries

3.2 - Political and Legal Institutions in MENA Countries

4 - Empirical analysis

4.1 - Research Design

4.2 - Data

4.3 - Empirical Results: The Impact of NRAs on Investment in Electricity Capacity

4.4 - Institutional Determinants of NRAs in MENA Countries

4.5 - NRA, Political Institutions, and Investment Capacity

5 - Conclusions

References

Chapter 15 - Financing Mediterranean Electricity Infrastructure: Challenges and Opportunities for an Interconnected Mediter...

1 - Introduction: regional energy context and OME vision

2 - The challenge of financing infrastructure in SEMCs

3 - Toward an interconnected Mediterranean grid: some regulatory perspectives

4 - Policy implications and conclusions

References

Legislation

Chapter 16 - New Regional and International Developments to Boost the Euro-Mediterranean Energy Sector

1 - Introduction

2 - Energy legal reforms in MENA countries

3 - The new Euro-Mediterranean energy platforms

4 - Toward a new European Neighbourhood Policy

5 - The Energy Charter Treaty and the new International Energy Charter

5.1 - The Energy Charter Treaty

5.2 - The International Energy Charter

6 - Conclusions

Disclaimer

References

Chapter 17 - Investing in Infrastructures: What Financial Markets Want

1 - The utilities sector – a historical perspective

1.1 - Are Utilities Safe Investments?

1.1.1 - The Telecom Bonanza and the Multiutility Strategy

1.1.2 - The Restructuring Phase and the Dual-Fuel Strategy

1.1.3 - The Commodity Bonanza

1.1.4 - Postcommodity Bonanza

1.2 - From Necessary Evils to Just “Evils”

1.3 - Takeaways for Regulators/Policy Makers

1.3.1 - Political Risks

1.3.2 - Regulatory Risk

1.3.3 - Management Risk

2 - The role of institutional investors

2.1 - Decision-Making Process and Targets

2.1.1 - Top-Down Analysis

2.1.2 - Bottom-Up Analysis

2.2 - A Very Lively industry

2.3 - Regulatory Regimes

3 - The four key conditions to stimulate investments in infrastructures

3.1 - Attractiveness

3.1.1 - A Common Misconception

3.2 - Transparency

3.3 - Consistency

3.4 - Independence

4 - Conclusions

4.1 - The Use of Long-Term Contracts

4.2 - A Clear “Energy Policy”

4.3 - Country Risk

4.4 - The Four Key Conditions

4.5 - A Typical Trade-Off and the “Usual Temptation”

References

Subject Index

Back Cover