Feb 03 2010

More info on NER300 deal

Annex I A II of the draft Decision has been updated to include 4 more new projects in renewable energy adding to the 30 renewable energy or grid integration projects already there. The suggestions from Denmark and Sweden (see post below) are likely to relate to biomass, with at least one of the two projects they added relating to second generation biofuels. France, which was interested last year in funding more photovoltaic energy projects, including BIPV, also negotiated an extra project. [CORRECTION: the project is in ocean thermal energy conversion in Île de la Réunion] Cyprus, Ireland and Portugal jointly proposed a project on concentrating solar power: 25 MW of Dish-Stirling capacity.

A concern felt by many Member States that the “capacity thresholds” (the minimum sizes of the Annex I A II installations) were too high has been addressed at the same time as their reservations on the Commission’s proposed mechanism for guaranteeing “geographical balance”. NER300.com’s understanding of the solution is as follows:

  1. Identify, among all the projects a Member States proposes, which are above the capacity threshold and which fall below.
  2. Identify, for each subcategory, the project among all those received from the Member States that is above the threshold and has the lowest NER300 funding requirement / energy output (or, for CCS stored CO2). The lists that result for the CCS categories and renewable energy / grid integration categories are called the “CCS Group” and “RES Group” respectively.
  3. If a Member State is absent from the RES Group or CCS Group, look, within the MS’s proposed set of projects, for one that is above the threshold.
  4. Kick out a project from the RES Group / CCS Group providing doing so does not kick out another Member State’s only project, replacing it with the “absent” Member State’s project.
  5. If that process would kick out an MS’s only project, and so would all the “absent” Member State’s projects that meet the threshold, then choose a project from below the capacity thresholds in the “absent” Member State’s list and replace an above-threshold project with it.

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