European ports express trepidation over shore power regulations

Both the Regulation on the deployment of Alternative Fuel Infrastructure (AFIR) – which sets the framework for the deployment of onshore power supply (OPS) in ports – and the Regulation on the use of renewable and low-carbon fuels in maritime transport and amending Directive 2009/16/EC (FuelEU Maritime) – which regulates the use of OPS by ships in EU ports, are set to be voted on this week.

“For ESPO, it is important that for the first time, the strict framework for deployment of OPS is accompanied by an obligation to use the infrastructure,” said Isabelle Ryckbost, secretary general, ESPO. 

“The emissions at berth will only go down if the OPS installations are properly used. We now have to take the legislation to the quay and sit together with all relevant stakeholders including shipping lines and terminal operators to make quick progress ahead of 2030.”

Help to prepare

To assist their members in the process of deploying and using OPS in Europe’s ports, ESPO has been holding workshops.where different challenges relating to deployment and use of OPS have been identified.

Some of the challenges mainly relate to the cost of deploying onshore power supply and the lack of business case, even if all OPEX costs are charged for and a depreciation cost for the infrastructure is borne by the users.

At this stage, there is usually not enough grid capacity to provide several vessels at the same time with OPS.

Where onshore power installations are in place, the price is currently often preventing users to plug in. Moreover, in most of the countries, the port authorities are to pay all year long a fixed cost for a large capacity that they often only need during a few months (e.g. cruise). The pricing system for electricity in most of the countries is not suitable for OPS. A more favourable regime for OPS is in many countries not possible.

In larger ports, an upgrade of the grid network and capacity in the port, requires important additional investments in a service station and the upgrade of cables to the different quays and terminals.

ESPO said that there seems to be an unlevel playing field between Member States as regards the financing. In some Member States the ports can rely on substantial levels of funding, whereas in others the public funding is limited or not existent. Important levels of EU funding will thus be needed.

Throughout the legislative process ESPO has been pleading for a goal-based approach and asked the legislators for the possibility to prioritise the OPS investments where it makes the most sense.

Finally, ESPO has stressed that the huge investments that must be made in ports to meet the new AFIR requirements can only be realised if they come with significant public funding instruments which are fit for purpose.

Installing and providing OPS infrastructure remains a complex and costly exercise, with a limited and slow return on investment for the managing body.

Since the price tag will be an important element in the decision of the shipping lines to use OPS, ESPO also strongly calls for the introduction of an EU-wide permanent tax exemption for shore-side electricity in the reviewed Energy Taxation Directive.