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Commission Staff Working Document Impact Assessment Accompanying the Document Communication from the Commission to the European COUNCIL OF Brussels, 21 January 2014 THE EUROPEAN UNION 5526/14 ADD 2 ENER 19 RECH 24 ENV 48 COVER NOTE from: Secretary-General of the European Commission, signed by Mr Jordi AYET PUIGARNAU, Director date of receipt: 20 January 2014 to: Mr Uwe CORSEPIUS, Secretary-General of the Council of the European Union No Cion doc.: SWD(2014) 13 final Subject: Commission Staff Working Document Impact Assessment Accompanying the document Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions Ocean Energy Action needed to deliver on the potential of ocean energy in European seas and oceans by 2020 and beyond Delegations will find attached Commission document SWD(2014) 13 final. ________________________ Encl.: SWD(2014) 13 final 5526/14 ADD 2 JPD/st 1 DG E EN EUROPEAN COMMISSION Brussels, 20.1.2014 SWD(2014) 13 final COMMISSION STAFF WORKING DOCUMENT IMPACT ASSESSMENT Accompanying the document Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions Ocean Energy Action needed to deliver on the potential of ocean energy by 2020 and beyond {COM(2014) 8 final} {SWD(2014) 12 final} EN EN TABLE OF CONTENTS COMMISSION STAFF WORKING DOCUMENT IMPACT ASSESSMENT ......................... 1. Introduction .................................................................................................................. 5 2. Procedural Issues and Consultation of Interested Parties ............................................ 5 2.1 Organization and timing ............................................................................................... 5 2.1. Consultation and expertise ........................................................................................... 5 2.2. Impact Assessment Board ............................................................................................ 6 3. Policy Context, Problem Definition and Subsidiarity .................................................. 6 3.1. Policy Context .............................................................................................................. 6 3.2. The ocean energy sector today ..................................................................................... 9 3.2.1. Ocean energy technologies and state-of-play .............................................................. 9 3.2.2. National policy support overview .............................................................................. 11 3.3. The Ocean Energy growth potential .......................................................................... 11 3.4. Problem Definition ..................................................................................................... 12 3.4.1. Cost, financial and profitability issues ....................................................................... 12 3.4.2. Infrastructure issues ................................................................................................... 13 3.4.3. Administrative & regulatory issues ............................................................................ 14 3.4.4. Environmental issues ................................................................................................. 15 3.5. Business as usual scenario ......................................................................................... 16 3.6. EU's right to act .......................................................................................................... 17 3.7. Who is affected? ......................................................................................................... 17 4. Objectives ................................................................................................................... 17 4.1. General objective ....................................................................................................... 17 4.2. Specific objectives ..................................................................................................... 17 4.3. Operational objectives ................................................................................................ 17 4.4. Consistency with other EU policies ........................................................................... 18 5. Policy Options ............................................................................................................ 18 5.1. Option 1: Current Policy Framework ('business as usual') ........................................ 19 5.2. Option 2: Enhanced political and industry coordination ............................................ 20 5.3. Option 3: Targeted structural actions ......................................................................... 22 6. Analysis of Options .................................................................................................... 23 6.1. Methodology and limitations ..................................................................................... 23 6.2. Analysis of individual measures/sub-options............................................................. 24 6.2.1. Cost reduction, financial and profitability issues ....................................................... 24 6.2.2. Infrastructure .............................................................................................................. 25 EN 2 EN 6.2.3. Administrative barriers ............................................................................................... 26 6.2.4. Environmental issues ................................................................................................. 26 6.3. Economic impacts ...................................................................................................... 27 6.3.1. Levelised cost of electricity (LCoE) .......................................................................... 27 6.3.2. Costs for electricity consumers .................................................................................. 29 6.3.3. Competitive position of the EU in ocean energy ....................................................... 30 6.3.4. Supply chains and ports, regional economic growth and development of clusters ... 31 6.3.5. Synergies with other sectors ....................................................................................... 32 6.3.6. Benefits of energy diversification .............................................................................. 32 6.3.7. Administrative burdens .............................................................................................. 32 6.4. Environmental impacts............................................................................................... 32 6.5. Social impacts ............................................................................................................ 34 7. Comparison of Options .............................................................................................. 37 8. Monitoring and Evaluation ........................................................................................ 39 9. Annex 1: Acronyms & Glossary ................................................................................ 41 10. Annex 2: References .................................................................................................. 43 11. Annex 3: Results of the Public Consultation ............................................................. 48 12. Annex 4: Overview of Recent EU Funded Ocean Energy Projects ........................... 63 13. Annex 5: Detailed Description of Ocean Energy Technologies ................................ 73 14. Annex 6: Resource Location ...................................................................................... 76 15. Annex 7: Current Deployment and Planned Capacity ............................................... 78 16. Annex 8: Policy Overview ......................................................................................... 83 17. Annex 9: Support Schemes and their Impact on the Renewable Energy Market ...... 90 18. Annex 10: Scenario Modelling for Economic, Environmental and Social Impacts .. 94 19. Annex 11: Development of the Offshore Wind Industry ........................................... 99 20. Annex 12: Overview of Emission Factors ............................................................... 101 21. Annex 13: Environmental Impacts........................................................................... 102 22. Annex 14: Job Creation Estimates ........................................................................... 105 23. Annex 15: Supply Chain .......................................................................................... 106 24. Annex 16: Overview of Marine energy technologies and their European potential 107 EN 3 EN COMMISSION STAFF WORKING DOCUMENT IMPACT ASSESSMENT Accompanying the document Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions Ocean Energy Action needed to deliver on the potential of ocean energy by 2020 and beyond Disclaimer: This report commits only the Commission's services involved in its preparation and does not prejudge the final form of any decision to be taken by the Commission. EN 4 EN 1. INTRODUCTION This Impact Assessment (IA) identifies and assesses the EU policy options available to support the growth of Europe's ocean energy sector. Ocean energy is one of the five pillars
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