Implementation challenges and

barriers to RES deployment and

cross-border cooperation
CESEC Electricity and Renewable Energy Plenary and
Working Group
Dr. Andrija Volkanovski
Unit C.4 Infrastructure and Regional Cooperation
13 October 2022 DG Energy
European Commission
Study on the Central and South Eastern Europe energy
connectivity (CESEC) cooperation on electricity grid
development and renewables

March 2022
The study
“Study on the Central and South Eastern Europe energy connectivity (CESEC) cooperation
on electricity grid development and renewables”

1. Highest-potential renewable energy

Objective: To provide significant and practical
contributions towards facilitation of the
integration of renewable energy sources (RES)
in the CESEC region
through
zones with cross-border dimension
2. Infrastructure and interconnection
needs to ensure RES integration in the
CESEC region

Approach: Analysis of studies, data & projects

3. Challenges and barriers to RES
Cross-verification with relevant (national) data
deployment and cross-border
Modelling
Stakeholder consultation cooperation in the CESEC region
Interviews
4. Conclusions & recommendations
Approach for identifying highest-potential renewable energy zones
used in model-based RES analysis:
Both scenarios are replicated to
Scenario definition analyze the impact of Cross-Border
RES cooperation:
Two pairs of scenarios for the RES uptake towards 2050: • Domestic RES target fulfilment
• Reference RES scenarios (RefRES): in accordance with national (-NoCoop):
planning (National Energy and Climate Plans or alternative sources focus on using domestic resources
where not applicable) • With (full) RES cooperation across
• High RES scenarios (HighRES): assessing the feasibility of reaching the CESEC region
a higher level of RES deployment in accordance with (-Coop):
decarbonization needs / European Green Deal perspective a region-wide, least-cost
approach within the CESEC
region.

Reference RES High RES

NoCoop Coop NoCoop Coop

Highest-potential renewable energy zones
Identification of promising CB RES projects in the CESEC region

Insights from the

mapping exercise:
The
aggregated
trend
(hydro + wind + PV)

2020 2050
(Source: Green-X modelling
& own analysis)
 Inventory of challenges - Regulatory

1. Complexity and length of administrative procedures e.g. lack of

information or involvement of a large number of entities in the
permit procedures;
2. Lack of sufficient/insufficient integration of RES in spatial
planning;
3. Design and approval of Power Purchase Agreements (PPAs) ;
4. Lack of coordination of RES regulation between countries (e.g.
support schemes, spatial planning, taxes, market access).
 Inventory of challenges - Financial

1. Lack of investment security for RES projects;

2. Fossil fuel energy subsidies and low energy tariffs that reduce
the competitiveness of renewable energy;
3. Strict financing conditions for RES projects;
4. Funding gap for commercially non-viable cross-border
interconnection.
 Inventory of challenges - Technical
1. Possible grid integration restrictions limit RES uptake;
2. Lack of technical capacity and know-how to accelerate the
integration of RES in the region e.g., skills (technical, academic,
planning and operational, entrepreneurial, policy, etc.);
3. Lack of comprehensive data;
4. Restricted exchange of data between countries;
5. Lack of long-term cross-border interconnector capacity products;
6. Uncertainties of assumptions underlying cost and benefit
analyses of cross-border projects.
 Inventory of challenges - Political

1. Political instability affecting the creation of a transparent and

reliable RES framework;
2. Prioritization of non-RES in the energy mix;
3. Uncertainty and complexity of designing the cooperation model;
4. Difficulties in defining adequate cost-benefit sharing
mechanisms.
 Inventory of challenges - Socio-economic and
environmental

1. Public acceptance in both off-taker and host countries;

2. Low public engagement and lack of public awareness on RES;
3. Environmental concerns, e.g. adverse effects on biodiversity.
General framework for RES
Ranking of the barriers
Importance of the different regulatory barriers
Importance of the different financial barriers
Importance of the different technical barriers
Importance of the different political barriers
Importance of the different socio-economic
and environmental barriers
 Key Findings
• Considerable consensus that cross-border cooperation is favourable and that
countries will benefit from more cross-border integration of electricity grids
and markets.
• The top three highest-ranked barriers to cross-border RES cooperation are:
- complexity and length of administrative procedures
- fossil fuel energy subsidies and/or
- low electricity prices and lack of coordination of RES regulation
between countries.
 Key Findings
• Across countries, regulatory barriers to cross-border RES are assessed as
the most severe (three barriers rated as either severe or highly important by
more than 50%), closely followed by political barriers (four political barriers
rated as either severe or highly important by more than 40% of respondents).
• As for technical and financial barriers, the situation across countries seems
more heterogeneous and for some of those barriers, there is no clear
overarching tendency. This suggests that local circumstances continue to be
diverse.
• Compared to other types of barriers, socio-economic and environmental
barriers are generally ranked lower in terms of severity, but the stakeholder
interviews suggest that those types of challenges exist and need to be
proactively addressed.
 Recommendations
1. Ensure timely implementation of planned infrastructure to address the
accelerated uptake of RES by 2040

2. Prioritise projects which particularly benefit from an integrated

implementation related to design and techno-economic feasibility.

3. Develop a transparent decision framework for project ranking, to prioritise

projects with the highest- and earliest aggregate benefits.

4. Undertake an in-depth analysis of the regional and national differences

and subsequently develop customised approaches to address the main (esp.
technical) barriers.
 (2) Infrastructure and interconnection needs
to ensure RES integration Ranking is based on:
1. Number of (RES) scenarios for which the respective project
Potential ranking of CESEC contributes to RES integration (“no regret” projects)
infrastructure priority projects 2. Earliest year when the project becomes beneficial

Contribution to RES Contribution to RES

integration integration
Project name Border Project name Border
number of earliest number of earliest
scenarios year scenarios year
Prati (IT)- Steinach (AT) AT-IT 4 2030 Transbalkan Corridor ME-RS 3 2030
Reschenpass Interconnector Albania-Kosovo capacity extension AL-XK 3 2040
AT-IT 4 2030
Project New interconnector UA_E-RO RO-UA_E 3 2040
Lienz-Venetto region AT-IT 4 2030 New interconnector UA_W-SK SK-UA_W 3 2040
Albania-Greece capacity extension AL-EL 4 2040 South Balkan Corridor AL-MK 2 2040
CSE4 BG-GR 4 2040
AT-SI 2 2040
Black Sea Corridor BG-RO 4 2040 AT, SI, IT - South-East Alps Project
Refurbishment of the 400kV Meliti Pannonian Corridor HU-RS 2 2040
EL-MK 4 2040
(GR)-Bitola (MK) interconnector Slovenia-Hungary/Croatia
HU-SI 2 2040
Mid Continental East corridor HU-RO 4 2040 interconnection
HU-RO HU-RO 4 2040 Upgrading of existing 220 kV line
BA-HR 1 2050
Romania-Moldova interconnector between HR and BA to 400 kV
MD-RO 4 2040
(Vulcanesti-Chisnau) CSE1 New BA-HR 1 2050
Suceava-Balti new interconnector MD-RO 4 2040 New 400 kV interconnection line
HR-RS 1 2050
Mid Continental East corridor RO-RS 4 2040 between Serbia and Croatia
Remark: Projects in red font are already under construction
Contact

• Andrija.Volkanovski@ec.europa.eu

Publication link:
https://op.europa.eu/s/vWn3
Thank you
Highest-potential renewable energy zones
Identification of promising CB RES projects in the CESEC region

GIS-based analysis
of wind potentials
(onshore & offshore)
(Source: Own analysis)