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40 Years Ago Norway Discovered Oil

40 år siden fant Norge olje! 40 ans depuis la découverte du pétrole en Norvège! Hereafter follows a list of articles remembering the event: Website dedicated to the historic day (by The Norwegian Oil Industry Association, OLF): www.oljenorge40aar.no I år er det 40 år siden Norge ble oljenasjon , OLF . Ekofisk Industrial Heritage website: Kulturminne Ekofisk . Lille julaften 1969 forandret livene våre , DagensNærningsliv . Olje-Norge 40 År , Statoil .

The Legacy of a Two Year Long Negotiation Process: The Copenhagen Accord

Here is the text of the Copenhagen Accord , the potical agreement countries agreed upon and of which the Conference of the Parties "took note". Some official comments all agreeing on the fact that the Copenhagen Accord represents a first step : UNFCCC Press Release , 19.12.2009. " We now have a package to work with and begin immediate action. However, we need to be clear that it is a letter of intent and is not precise about what needs to be done in legal terms. So the challenge is now to turn what we have agreed politically in Copenhagen into soemthing real, measurable and verifiable " said UNFCCC Executive Secretary Yvo de Boer. European Commission and Swedish Presidency of the EU , Cautious Step forward in Copenhagen (text as of 19 December) and press conference video . " Let us speak plainly, I would have liked more. This will not solve the threat of climate change, but it is a first step, an important step " Swedish Prime Minister Reinfeldt. An

Will Shell and its Subsidiary Be Trialed in The Netherlands for Pipeline Leak in Nigeria?

This is the question currently at stake before a Dutch civil tribunal in The Hague. The case relates to a leak from an oil pipeline that occurred in 2005 in Nigeria . It is brought jointly by Friends of the Earth Netherlands and representants from several Nigerian villages that claim reparation for economic losses (agricultural crops and fisheries) and environmental damages (water contamination and soil pollution). The cause of the leak is discussed, being a result of bad maintenance or a sabotage. This case raises from fundamental legal issues regarding liability and territorial jurisdiction . In particular, the competence of the Dutch tribunal to judge the behaviour of a Shell's subsidiary abroad is at stake. There is also a related trial going on in Nigeria. The Dutch tribunal is expected to take decision on its competence by the end of the year.

Small is Beautiful by Design: When Starck Rethinks Small Scale Windmills

On 8 December, Windeo signed a commercial agreement for the distribution in France and Benelux of the small scale windmill designed by Philippe Starck and manufactured by the Italian company PRAMAC . The small appliance is called "PRAMAC by Starck" and was presented at the Milan Design Week 2008: Green Energy Design. It builds on the concept of "Democratic Ecology" . Philippe Starck has been arguing for a long time for the democratisation of design, and now for the democratisation of renewable energy. There will be two models available, from 400 to 1,000 W (1, 3 or 6 meter high). A first bench of the 1KW models were available for installation at so-called Clients Sites Pilotes on 8 December (EUR 7,500 before taxes). The picture above presents the 400W model. Source : Press release , Windeo, 8 December 2009. Picture : PRAMAC.

ACER to Be Located in Ljubljana

Without any surprise, rumors have been confirmed and the seat of the newly created Agency for the Cooperation of Energy Regulators (ACER) has been attributed to Ljubljana (Slovenia). Two other cities were in the run, namely Bucharest (Romania) and Bratislava (Slovakia) (the strongest of the other contestants). In its preparatory documents to the Energy Council of 6-7 December, the Commission expressed its preference for keeping the transitional seat of ACER (the first five year's term of the Director to start in June/July 2010) either in Brussels or Luxemburg. But the Presidency announces an entry into function in Ljubljana already for March 2011 . The latter date is more probably the moment when ACER will function totally. Details of ACER objective and functions to come in a new message. References : Press release from the Swedish Presidency, 7 December 2009; Press release from the European Commission; EUobserver article, 7 December 2009. Legal text : Decision 2009/913/EU taken

Grønn Garanti

Her finner dere et intervju skrevet av Mia Gill Kristiansen for websiden til det juridiske fakultetet om mitt forskningsprosjekt. Mia stilte meg følgende spørsmål: Kan handel med grønne sertifikater gjøre elektrisiteten mer miljøvennlig i Norge ?

Commission Accepts GDF Suez Settlements in Gas Import Capacity Restrictions Case

Investigations started in May 2006 , including on site at GDF premises in France, following the scrutiny exercise of the energy sector competition inquiry , without being related to it. The proceeding against GDF (at that time) was formally opened in May 2008 . European Commission suspected GDF Suez of abusing its dominant position and restricting access for competitors to the French supply gas market . In particular, the Commission claimed the existence of practice contrary to antitrust rules, i.e.: long-term reservation of transport capacity to most import infrastructures into France (pipelines and LNG terminals); network of import agreements; GDF Suez behaviour regarding investments and capacity allocation at two LNG import terminals in France. The legal basis for the Commission's decision is Article 102 of the Treaty on the Functioning of the European Union (TFEU) (former Article 82 ECT) on abuse of a dominant position. During the investigation, infringement to Article 101 TFE

Overgangsordning for elsertifikatmarkedet

Her følger pressemeldingen fra OED om overgangsordningen for elsertifikatmarkedet (26.11.2009) . Den innholder blant annet at: " Overgangsordningen omfatter alle kraftverk med byggestart etter 7.9.2009. I tillegg omfattes vannkraftverk med byggestart etter 1.1.2004, og installert effekt inntil 1 MW (mikro- og minikraftverk), av overgangsordningen. Det antas at volumet for mikro- og minikraftverk utgjør mindre enn 0,3 TWh. Overgangsordningen gir en rett til å delta i det felles elsertifikatmarkedet når det starter opp. Antall driftsår fram til oppstartstidspunkt for sertifikatmarkedet trekkes fra antall år anleggene ordinært kan få sertifikater. De anleggene som faller inn under ordningen og eventuelt mottar investeringsstøtte må betale tilbake denne dersom de ønsker å delta i elsertifikatmarkedet. Det vil i praksis gjelde vindkraftverk og biokraftverk. Nærmere kriterier for overgangsordningen vil bli bestemt i lov og forskrift ."

On the road to Copenhagen

On 7 December 2009 opens the 15th Conference of the Parties to the United Nations Framework Convention on Climate Change ( COP.15 ) (supreme body of the Convention) and the 5th Meeting of the Parties to its Kyoto Protocol ( CMP5 ) (supreme body of the Protocol): the so-called COP15/CMP5. Parallel meetings will also be held for the Subsidiary Body for Scientific and Technological Advice ( SBSTA ) and the Subsidiary Body for Implementation ( SBI ). Here is the logo and the website managed by Denmark as hosting country. The UNFCCC website remains of course the main source of information. I will report during the next weeks on the energy related issues raised during the COP/CMP, and relevant events. Some websites and documents of interest: Key EU objectives for the COP/CMP : MEMO/09/534 .

World Energy Outlook 2009 in a Nutshell

The International Energy Agency (IEA) released on 10 November its 2009 edition of the World Energy Outlook (WEO). All the elements of the sustainable energy paradigm as it is discussed today are present. Similarly, the WEO underlines the same urgency to act towards a energy transition, energy being at the heart of the climate problem and the solution. Some new issues appear, which are summarised below. The effects of the financial crisis - They were "dramatic", and will continue to impact the energy markets for a few years. But all financial and monetary stimulus plans included measures to promote clean energy. Indeed, the WEO argues that the financial crisis opened " an unprecedented, yet relatively narrow, window of opportunity " in favour of low carbon technologies. The recession helped reduce GHG emissions. The question is to know whether it will last. Energy investments - The 2008 WEO already stressed the importance of energy investments. In 2009, the WEO re

The Ex-Ante Analysis of Energy Consumption: "Embodied Energy"

What is embodied energy ? Qu'est-ce que l'énergie grise ? Hva er grå energi ? Short definition - Embodied energy relates to the total quantity of energy which is necessary to the production, transport, manufacturing, and further transport of a good until the place of consumption. Embodied energy can be calculated for any good, from electronic devices, household appliances, car or construction materials. It can be described as the energy counterpart of life cycle analysis resulting in life cycle energy analysis. Where the embodied energy for the production of a certain good or the functioning of certain plants is so high that it overcomes the benefits of the resulting product, one can talk about energy cannibalism . Orientate customers - If embodied energy information is disclosed on the packaging, customers will be able to make their own assessment and orientate their consumption choice towards a less energy demanding product. The same reasoning already apply to the food sec

Forthcoming Book to Review: "EU Russia Energy Relations"

To be published in December 2009, this book looks at the political and legal components of the energy relationship between the European Union (EU) and Russia. It analyses the legal framework and instruments in place to deal with EU-Russia energy trade. Of particular interest for lawyers is: Section II on Legal Aspects of EU-Russia Energy Relations; and Section III on Changing the Rules for the EU Natural Gas Markets - From State to Market and Plan to Contract. I look forward to reading and commenting section III as it relates to the manner EC competition rules affect energy trade and gas projects with Russia. Several questions are raised here: the regulation of cross-border gas pipelines, the effect of unbundling rules, the third country clause implications, EC rules on third party access effects on gas agreements with Russia, the legacy and legality of the 2009 recent gas conflict. I guess a review of competition rules of vertical nature in gas supply contracts is also included, suc

What to Expect from the Re-Launch of the Single Market for the Internal Energy Market

Energy is a good subject to the rules of the internal market. Energy is also much more when it comes to the wideness of the sectors it impacts, the strongness of this economic activity, and the political dimension of it. My intention here is not to encompass all these dimensions, but to try to understand which changes may bring the "re-launch of the single market" in the energy sector, as it is proposed by president Barroso in his Political Guidelines for the next Commission . Defining the internal energy market is to that respect a narrower exercise than defining European energy policy. The "EU 2020" vision defended in the Guidelines is enshrined in the values of the internal market and contains two dimensions: " Internally , it is based on a staunch defence of the internal market, and the competition and state aid rules, which provide a level playing field guaranteeing access and opportunity for all, irrespective of size or might - namely consumers and SMEs.

On the Usefulness of Green Certificates

During the last two days, the economic section of the Norwegian newspaper Aftenposten has echoed existing divergences on the usefulness of a green certificates scheme, and ultimately the necessity to introduce it nationally and/or regionally with Sweden (see my previous post). On Monday, Economics professor M. Hoel criticised the scheme for being expensive and ineffective as regards renewable energy (" Grønne sertifikater er dyr og formåløs moro med fornybar energi .") He argues that if the purpose is to reduce greenhouse gases (GHG) emissions, better do it by buying emissions allowances on the European market. The Norwegian minister in charge of energy answered today the criticisms (see picture) in an article that was a release to read. The minister is very right when he recalls that green certificates do not aim to directly reduce greenhouse gas, but to support primarily renewable energy production. Beside any collaboration within Nordic or European countries, there are so

Towards a Common Green Certificates Scheme between Norway and Sweden

On 7 September 2009, the Norwegian and Swedish ministers in charge of energy concluded an agreement on the future establishment of a common green certificates scheme by 2012. This has been enabled by the adoption of Directive 2009/28/EC of 23 April 2009 on the promotion of the use of energy from renewable sources which repeals Directive 2001/77/EC (see Article 11 - Joint support schemes). Here is the article I wrote on the issue recently published in the Bulletins Electroniques : Politiques de soutien aux énergies renouvelables : Norvège et Suède adoptent le principe d'un marché commun de certificats verts pour 2012 http://www.bulletins-electroniques.com/actualites/60678.htm

Liberalisation and Energy Choice for Final Customers: Test Yourself!

The Norwegian newspaper Aftenposten has published today a test entitled " Hvorfor er det billigere å vaske tøyet om natten? " (" Why is that cheaper to wash your clothes at night? ") , which offers readers the opportunity to test their knowledge about the possibility, procedure and conditions to change of energy provider, the tariff structure of the electricity bill or some support scheme to energy savings in favour of the household sector. This test, which certainly focuses on the Norwegian context (but as part of the EEA Agreement, Norway is implementing the EC energy legislation), underlines a very central issue in the opening of the electricity retail market to competition: final customers do not always have a clear understanding of the rights the full liberalisation of the energy market gave them. Public authorities, in particular under the initiative of regulators, are developing information tools, such as in France the website http://www.energie-info.fr/ . Bu

MEP Claude Turmes to address CPUC

On Thursday 24 September, Claude Turmes, Member of the European Parliament (EP), and recognised leader of climate and renewable energy policies at the European assembly, will address the California Public Utilities Commission (CPUC). This blog reported on several works of the CPUC, and I cannot be more glad to see the reflection on experience sharing and best practices in the are of regulation of renewables and energy efficiency be concretised in such a way. So, book your agenda. Here is the flyer . Claude Turmes was in particular rapporteur in the following EP legislative procedures : Directive 2009/28/EC on the promotion of the use of energy from renewable sources; Regulation (EC) 1099/2008 on energy statistics; European Parliament Resolution of 13 March 2008 on Global Energy Efficiency and Renewaeble Energy Fund (GEEREF); EP Resolution of 29 September 2005 on the share of renewable energy in the EU - Proposals for concrete actions; and before that the second (and former) electricty

The Role of Renewable Energy in Climate Change Mitigation: Yet Another Report?

Working Group III (on ‘Mitigation of Climate Change’) of the International Panel on Climate Change (IPCC) is currently preparing a Special Report on ‘Renewable EnergySources and Climate Change Mitigation’ (SRREN) . The latter will be finalised during the second half of 2010, officially adopted in December 2010, and published in 2011. Authors are meeting these days in Oslo (1-4 Sept.), after their first meeting in January in Brazil. According to its mandate, the report should provide a better understandingof: resources availability by region and the effects of climate change; the mitigation potential of renewable energy sources (RES); RES market and technological status; sustainable development goals and RES; relationship to energy security (global, regional and national); options and constraints for integration into the energy supply systems and other markets, including energy storage; costs and benefits; policy options and conditions for effectiveness (!). The scope of the report is

Third Legislative Package on Energy Liberalization Published

Three regulations and two directives implementing the third energy liberalization package were published in the EU Official Journal on 14 August 2009 (L 211). These are: Regulation (EC) No. 713/2009 of 13 July 2009 establishing an Agency for the Cooperation of Energy Regulators; Regulation (EC) No. 714/2009 on conditions for access to the network for cross-border exchanges in electricity (repealing Regulation (EC) No. 1228/2003); Regulation (EC) No. 715/2009 on conditions for access to the natural gas transmission networks (repealing Regulation (EC) No. 1775/2005); Directive 2009/72/EC of 13 July 2009 concerning common rules for the internal market in electricity (repealing Directive 2003/54/EC); Directive 2009/73/EC of 13 July 2009 concerning common rules for the internal market in natural gas (repealing Directive 2003/55/EC). I will comment the main changes brought by these texts in a comming message.

Now Back after a Short Break

After some time dedicated to traveling back from the U.S., teaching, lecturing, writing, etc., the SEL Notebook is now continuing its activities, at the rythm of one or two publications (at least) by week. The most recent energy and legal developments will as before influence my agenda, always with a comparative eye. I look forward to your reactions and comments. Bonne lecture!

Book Review: Cape Wind by W. Williams and R. Whitcomb

After discussing in a previous message the prospects of offshore drilling along the U.S. coasts, I wanted to explore the problematic of offshore wind power development and understand the current barriers to its take-off in the U.S. A good start was Cape Wind by W. Williams and R. Whitcomb which tells the story of "America's first offshore wind mills." (See Cape Wind project website) The book opens on a 2001 public hearing meeting hold on a proposal to build a large electrical-generation project in the so-called "Nantucket Sound" area (Massachusetts, 150 km south Boston). The project is promoted by the company Cape Wind Associates and aims to install wind turbines along the coast of "Cape Cod," the elected area of the American east coast elite. Chapter 1 introduces some key characters: historian David McCullough, one of the strongest opponents to the project (but relatively absent in the rest of the book), and Jim Gordon, president of Cape Wind Associa

Closer look at the U.S. offshore drilling controversy

The Natural Resources Committee of the House of Representatives started on February 11 the first of a series of three hearings on the U.S. offshore oil and gas drilling policy. I summarise hereafter the main elements of the current discussion. Why a ban on offshore drilling? The background for the current discussions is the end of two bans on offshore drilling in most of the U.S. waters. The bans consist of: (1) a presidential ban adopted by President George Bush Senior in 1989, in reaction to the 1989 Exxon Valdez oil spill in Alaska, and lifted by his son G.W. Bush in July 2008; (2) a Congressional ban from 1981, under the form of a moratorium, renewable each September, and which expired in September 2008. These bans restricted areas that could be offered by the Minerals Management Service (MMS) for outer continental shelf (OCS) leasing. The remaining restrictions concern: the “Presidential Withdrawal”, which excludes all marine sanctuaries from oil and gas leasing activities;

"International Law Challenges Facing Obama"

I would like to report here on a seminar I attended this week on the topic in title, at UC Berkeley Law School, where Prof. Oona Hathaway presented brillantly her views. She classifies challenges into three categories: framing, structure and substance. I reproduce hereafter my notes from her presentation. 1. Framing, answering shortcomings of previous administration and attacks. Several U.S. politicians expressed strong criticisms against the international institutions, and in particular the United Nations (U.N.)system and the necessity the defend the country sovereignty. Prof. Hathaway quoted among others Congressman Ron Paul or Pat Buchanan (the latter having said that UNCLOS "represents a permenant loss of national sovereingty"). The previous decades saw the withdrawal of the U.S. from several international treaties, and a switch in public opinion regarding the U.S. role in international politics. Only 35 % of the world population see the U.S. as an important international

Smart Grid (1)

For those not familiar with the Superbowl, one of the side entertainment to the sport event is the competition for getting the best TV-ad (at the most dramatic moment of course). And it was with interest that we could watch this year a General Electric advertisement featuring smart grid technologies (on the song "If I only had a brain" from the Wizard of Oz). Link: http://www.youtube.com/watch?v=m1XqLPa9BoA I will shortly comment on some aspects of the smart grid in a latter message. But to introduce the theme, "smart grid" technologies aim, among other things, to manage energy more efficienctly in particular at the consumption level, increase energy storage capacity (such as in the transport sector), work on transmission and distribution systems, develop large-scale integration of renewable energy.

Security of Energy Supply Put in Practice: a Massive Energy Recovery Plan for the EU

Facing the urgent challenges of the financial crisis and security of energy supply after the Russia-Ukraine gas dispute, the European Commission is pursuing the foundation of a consistent European energy policy. The plan unveiled on January 28, 2009 by the Commission aims to invest € 3.5 billion in energy projects over at least the next two years . The overall purpose is to “ aid economic recovery by granting Community financial assistance to projects in the field of energy .” In other words, the plan is thought to provide the necessary financial impetus which will not come from elsewhere in a context of financial crisis. This corresponds to the principles of action defined in the European Economic Recovery Plan (COM(2008)800) endorsed by the European Council in December 2008: “ injection of purchasing power into the economy ”, to boost demand and stimulate confidence; “ direct short-term action to reinforce Europe's competitiveness in the long term ”, focusing on "smart&quo

... And what about the U.S. economic recovery bill?

There is here an obvious coordination of strategies and views on the manner to tackle the financial crisis. Both the European Union (EU) and the U.S. new administration see energy security, in all its different components, as a vital sector for the well-being and growth of their economy in the short-term. The so-called “economic stimulus package” under discussion by the two Houses of the U.S. Congress foresees to invest in clean energy and green jobs, for an approximate amount for $145.3 billion. The House of Representatives have already approved $819 billion under the stimulus bill on January 28, 2009. The bill will now be examined by the Senate. Hereafter are summarised some of the actions and corresponding stimulus instruments (See Apollo Alliance for details): towards a modernised and “smart” electricity grid : funding for R&D, pilot projects, and federal matching funds for the Smart Grid Investment Program, loan guarantees for investment and implementation of infrastructure pr

Will U.S. green states lawmakers impose legislation over brown states?

On January 26, 2009, U.S. President Obama directed the Environmental Protection Agency (EPA) to reconsider California’s application to define its own standards on fuel-efficiency and greenhouse gases (GHG) emissions from passenger automotive vehicles and trucks (non-commercial purpose). This announcement comes after several years of judicial battles between, among others, the state of California (CA) and the federal government . The state of California was among the front-runners in the enactment of air quality and climate change abatement policies (see CA Climate Change Portal , in particular the 2005 Executive Order on climate change and the CA Global Warming Solutions Act of 2006). In 2002 was passed the Clean Cars Law ( AB1493 ), for which the CA Air Resources Board set the standards in 2004, and asked the EPA for the necessary waiver to implement them in 2005. The standard would ultimately be applicable to vehicles manufactured upon 2009 models and the years thereafter. Three lan

Confirmation Hearing of Hillary Rodham Clinton: the place of energy and the environment in the future U.S. foreign policy

On January 13, 2009 took place the Senate confirmation hearing nominating Senator Hillary Rodham Clinton as Secretary of State for the next administration. At the heart of her action will be: "principles and pragmatism", designed "global solutions", use of "smart power", in "a time of great dangers and great possibilities" and "interdependence". Some interesting points were made by the Senator on energy (1) and environmental (2) matters, which are reported below. 1. Energy related issues - Preferred energy partnerships with Latin America for less dependency - "Canada and Mexico are […] our biggest suppliers of imported energy. […] We're looking forward to working on many issues during the Summit of the Americas in April and taking up the president-elect's call for a new energy partnership around shared technology and new investments in renewable energy." - Ukraine and Russia gas dispute: also an American concern - &q