'Unbundling' debate skirts real issues say experts 

The issue of energy-grid accessibility for renewable energies such as PV systems is central to current debates about how the EU will honour its commitments to increase the share of renewable energies in Europe's energy mix to 20% by 2020 (see our LinksDossier).

PV, wind or geothermal electricity producers complain that a lack of technical harmonisation, administrative barriers and anti-competitive behaviour by large energy firms are among the obstacles they face when trying to "feed" into electricity grids.

During the round table, the Commission recognised the problem and argued that ownership unbundling (see our LinksDossier) would create the necessary structural conditions to foster more competition in the energy market, both for small and large energy producers.

But a number of audience participants disagreed, saying that an excessive focus on ownership unbundling distracts attention away from the "real nitty-gritty" issues that block smaller electricity producers from accessing Europe's grids.

Günther Cramer, CEO of SMA Technologies, complained of a lack of technical harmonisation and feed-in requirements across member states, and insisted that rapid, non-bureaucratic and reliable grid access is a "pre-condition" for the development of Europe's PV industry.

Cramer also speculated that his member state - Germany, which has Europe's leading PV market - promotes renewables to demonstrate that a varied energy mix does not require ownership unbundling (a move opposed by large German energy firms and the current German government).

Speaking on behalf of the European Association for the Promotion of Cogeneration (COGEN Europe), Thomas Bouquet argued that better grid access for renewables can be achieved by addressing issues that have little do to with ownership unbundling, such as metering issues, connection charges and excessive bureaucratic delays. 

Karina Veum of the Commission's DG for Transport and Energy acknowledged that "unbundling is not the only problem for PV", and that exisiting EU rules on administrative procedures in the energy sector must be strenghtened. Veum also pointed out that the Commission was hesitant to push for stronger rules on grid access within member states, as this would conflict with the principle of subsidiarity.

Lars Kjolbye of the Commission's DG for Competition also acknowledged that a range of problems exist and that there is no one solution. But Kjolbye insisted that "there is a structural problem we need to fix", and that ownership unbundling would "get the structure right", creating the overall market conditions that could facilitate the resolution of a range of other problems.

MEP Eluned Morgan of the Parliament's Industry (ITRE) Committee acknowledged that a "one-stop shop" was needed, whereby harmonised administrative procedures would allow rapid and safe grid access across the EU. But Morgan also cautioned that the energy market was akin to a giant "jigsaw puzzle", whereby moving any one piece - such as harmonising administrative procedures - could have a knock-on effect.

Concerning ownership unbundling, Morgan confirmed that a majority of MEPs support the move. And the MEP downplayed the ISO option (see EurActiv 30/08/07), saying that this would lead to a "huge amount of policing, a massive bureaucratic burden and too much market intervention".

The European Photovoltaic Industry Association (EPIA) is "urging the Commission to propose clarifications of grid-access rules, cost distribution and transmission fees in its future framework directive on renewable energy sources, due to be presented in December. In addition, the Commission should also include the harmonisation of grid-connection rules in its legislative agenda," the organisation said in a press release.