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‘Massive Investment’ Needed In Europe’s Energy Infrastructure

By Eva Donelli
14 February 2012

14 Feb (NucNet): Massive investment is needed in European energy infrastructure such as new transmission lines and refurbishment of existing lines if Europe is to meet its energy policy and climate goals, a conference heard.

The conference, held last week in Brussels to discuss the European Commission’s Energy Roadmap 2050, heard that much existing infrastructure is obsolete and that the European Union needs to set a clear policy to finance investment projects, developing a more accurate analysis of each project.

A panel of experts at the conference called for the EC to ensure the enforcement of EU policy, showing “more coherence and transparency” on roadmap objectives.

One of the panellists, Konstantin Staschus, secretary-general of the European Network of Transmission System Operators for Electricity (ENTSO-E) told NucNet that ENTSO-E had identified a need for 42,000km of new transmission lines across Europe costing 23-28 billion euro (30-37 billion US dollars) over the first five years and roughly 100 billion euro over the next 10 years.

He said ENTSO-E is preparing to release its 2012 network development plan package and according to preliminary data it will show that the most significant drivers for transmission infrastructure investments remain renewable energy integration, market integration, and ensuring security of supply.

He said another ENTSO-E forecast to be released next month will show that nuclear power generation will continue to increase in Europe for the next 15 years, as countries expect to invest in new reactors or reinvest in existing ones. This forecast takes into account recent decisions by countries such as Germany to phase out nuclear.

“Investments will largely need to go in the construction of new overhead lines, but investments in new subsea cables, in refurbishment of existing lines and in substations are also very considerable,” Mr Staschus said.

He said R&D by transmission system operators (TSOs) is “indispensable” to realise concepts such as smart grids and electricity highways. In December 2011, ENTSO-E released a 2011 R&D plan estimating that TSO-related R&D needed to meet the EU’s 2020 energy objectives will cost some 790 million euro.

Mr Staschus said: “This essential R&D contribution needs to be supported by an appropriate regulatory framework.

“But, apart from a few exceptions, the situation in most ENTSO-E countries today is that the regulated network tariffs do not include a component dedicated to recovering R&D costs, nor are there any specific incentives to promote R&D by transmission system operators.

The Energy Roadmap 2050 was published by the EC on 15 December 2011, and explores five scenarios for achieving the decarbonisation of the EU energy system.

The roadmap says nuclear energy contributes to lower system costs and electricity prices, and as a large scale low-carbon energy option will remain in the EU power generation mix.

The EC says it will continue to “further the nuclear safety and security framework”, helping to set a level playing field for investments in member states willing to keep the nuclear option in their energy mix.

The roadmap says: “The highest (nuclear) safety and security standards need to be ensured in the EU and globally, which can only happen if competence and technology leadership is maintained within the EU.”

The Energy Roadmap 2050 is online: http://ec.europa.eu/energy/energy2020/roadmap/index_en.htm

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