The book examines the legal guarantees provided under the European Union (EU) and the World Trade Organization (WTO) rules for the development of electricity transmission systems, either by constructing new transmission lines or by increasing transmission capacity. In the context of analysis of trade rules, the book makes the argument that, if long-distance trade in electricity remains a feasible option, the development of electricity transmission projects must be made subject to economic, technological and environmental criteria. It is dealt with in light of specific challenges of electricity trade related to its dependence on networks, storage and balancing. The book offers insights into the scope of the WTO and the EU related to access to and the development of cross-border electricity infrastructure development, connection and integration of abundant renewable energies into the electricity systems. It has criticized the EU's regulations in terms of a lack of technological neutrality, as well as the WTO system in terms of lack of sector-tailored regulations that are necessary to achieve the objectives of the WTO to facilitate trade and transit. The regulatory environment for the development of cross-border electricity transmission projects has been examined based on identified obstacles from the analysis of the major multinational electricity systems in the world.
Dr Karolis Gudas holds PhD degree from the World Trade Institute, University of Bern. At present he is the General Counsel of the project of national significance to Lithuania - Vilnius CHP, a Lecturer in Energy Law at Vilnius University and Center Fellow at the Cambridge Centre for Environment, Energy and Natural Resource Governance, University of Cambridge. Karolis has significant experience in the energy sector having previously worked at the European Commission, as a consultant to the Iceland - UK electricity interconnector project and a legal counsel at the Baltic law firm Motieka & Audzevicius. He has been included in the list of energy experts of the Legal Task Force of the Energy Charter Secretariat.
Acknowledgements
Preface
List of Databases
Abbreviations
Introduction
1 General Background
2 Transmission Projects and RES-e Integration
3 Transmission Projects: Advantages and Disadvantages
4 The Problem
5 Other Network-Bound Industries
6 Objectives and Methodology
7 Structure and Scope of Research
part I Foundations
Chapter 1 Technological Advancements and Regional Electricity Systems
1 Introduction
2 Transmission Technologies and Electricity Trade
2.1 Electricity Transmission Technologies
2.2 Electricity Transmission Means
2.3 Investment in Electricity Transmission Infrastructure
3 Overview of Regional Electricity Systems and Markets
3.1 The IPS/UPS Electricity System
3.2 The Southern African Electricity System
3.3 The Central American Power System
3.4 European Electricity Systems
3.4 Concluding Remarks
Chapter 2 General Overview of the Regulatory Environment in the EU, the WTO and the ECT
1 Introduction
2 General Overview of the EU Legal Environment
3 General Overview of WTO Rules
3.1 Qualification of Electricity Generation and Non-Discrimination Rules of GATT and GATS
3.2 Derogation from Non-Discrimination Standards
4 General Overview of Energy Charter Rules
4.1 Investment Protection
4.2 Trade in Energy Materials
5 Main Differences of WTO and EU Legal Systems
5.1 Legislative Powers
5.2 Enforcement of Laws
5.3 Institutional Planing, Coordination and Monitoring
5.4 Judicial Experience
6 Concluding Remarks
part II Transmission Systems Regulation and Related Access Issues
Chapter 3 Regulation of Transmission Systems under EU and WTO Regimes
1 Introduction
2 Qualification and Regulation of TSOs
2.1 TSOs Regulation in the EU
2.2 TSOs Under GATT and GATS
2.3 TSOs under ECT Rules
3 Authorisation of TSOs
3.1 Unbundling: Origins of EU Rules and Related WTO Issues
3.2 Certification of TSOs and Related WTO Issues
4 Third-Party Access
4.1 Organisation of Third-Party Access under the EU Rules
5 Concluding Summary
Chapter 4 Preferential Treatment of Res-E at the Access, Connection to the Grid Stage
1 Introduction
2 Preferential Treatment of RES-e: the Case of the EU
2.1 Nature and Implementation of Priority Rules in the EU
3 Treatment of Preferential Rules to RES-E under the WTO System
3.1 General Remarks Regarding ‘Likeness’
3.2 Competitive and Directly Substitutable
3.3 Justification of Diferentiated Treatment under WTO
3.4 Lessons from the ECT?
4 Concluding Remarks
part III The Development of Transmission Systems
Chapter 5 The Role of Transit in Cross-Border Electricity Infrastructure Development
1 Introduction
2 Transit and Infrastructure Development after World War I
2.1 The Barcelona Conference
2.2 The Geneva Conference
2.3 The Final General Conference
3 Off-Shore Infrastructure Development under UNCLOS
3.1 General Overview
3.2 Transit and Infrastructure Development
3.3 Environmental Protection
4 Transit and the WTO Framework
4.1 Fixed-Infrastructure and Article V GATT
4.2 Electricity Transit under Article V
4.3 Does Article V GATT Provide a Right to Interconnect?
5 Lessons from the Energy Charter
5.1 Freedom of Transit and the Energy Charter
5.2 Infrastructure Development
6 Concluding Remarks
Chapter 6 Development of Cross-Border Electricity Transmission Infrastructure under WTO and EU Rules
1 Introduction
2 Transmission Projects Development: the WTO Framework
2.1 Right to Interconnect and GATS Rules: Lessons from the Telecommunications Sector
2.2 Right to Interconnect and GATT Non-Discrimination Rules
3 Electricity Systems Development in the EU
3.1 From Origins to Article 171 TFEU
3.2 Projects of Common Interest
3.3 Merchant Exemption Regime
3.4 Interconnectors and EU’s Policy Objectives
3.5 ‘Cap and Floor’ Regime
4 External Dimension of Cross-Border Electricity Infrastructure Planning in the EU
4.1 The Energy Community
4.2 Trade Deals of the EU Governing Electricity Infrasatructure Development
4.3 Russia and the EU: Electricity Networks Integration
5 Transmission Projects Development: Lessons from the ECT Model Agreements
5.1 The Intergovernmental Electricity Model Agreement
5.2 The Host Government Electricity Model Agreement
5.3 The Market and System Inter-Operability Model Agreement
6 Concluding Remarks
Chapter 7 Incentive Regimes and Related WTO Issues
1 Introduction
2 Infrastructure-Related Incentives Provided in the EU
2.1 Projects of Common Interest
2.2 Third-Party Investment Options and Incentives
2.3 Energy Programme for Economic Recovery
2.4 State Aid: General Overview
3 Related Non-Discrimination Issues under GATT and GATS
3.1 General Remarks Related to GATT and GATS Application
3.2 General Overview of WTO Subsidy Rules
4 Concluding Remarks
Epilogue, Summary and Recommendation
1 Epilogue
2 Summary
2.1 The EU Rules
2.2 The WTO Rules (with Insights on the Energy Charter)
3 Recommendation
Bibliography
Tabel of Cases
Legislation
Documents
Appendices