Invitation to sign the Memorandum of Understanding on the Joint Baltic Nordic Energy Research programme 2022-2025

Memorandum of Understanding Between Nordic Energy Research, Ministry of Energy of the Republic of Lithuania, Ministry of Economics of the Republic of Latvia and the Ministry of Economic Affairs and Communications, of the Republic of Estonia; Having regard to the Memorandum of Understanding on the establishment of the Joint Baltic- Nordic Energy Research programme 2018-2021, which was financed by Nordic Energy Research, the Ministry of Energy of the Republic of Lithuania, the Ministry of Economics of the Republic of Latvia and the Ministry of Economic Affairs and Communications of the Republic of Estonia; Taking into account the Agreement on Baltic Parliamentary and Governmental Co-operation between the Republic of Estonia, the Republic of Latvia and the Republic of Lithuania and its common priorities for co-operation, which include co-operation in the sphere of energy; Reflecting the priorities highlighted in The Marienborg Declaration to urgent and immediate take action to increase energy resilience by strengthen our energy cooperation and energy resilience while contributing to climate neutrality; Agreeing on the importance to fund energy research in the Baltic states and inspire intra-Baltic and Baltic-Nordic collaboration as well as to promote Baltic-Nordic research; Have reached the following understanding: Article 1.0: The Memorandum of Understanding on the Joint Baltic-Nordic Energy Research Programme 2022-2025 This Memorandum of Understanding (hereafter called the MoU) sets out a legally non-binding framework for the second phase of funding and management of the Joint Baltic-Nordic Energy Research Programme 2022- 2025. The Joint Baltic-Nordic Energy Research Programme was initiated by Nordic Energy Research in 2017 and developed in collaboration with the Ministry of Energy of the Republic of Lithuania, the Ministry of Economics of the Republic of Latvia and the Ministry of Economic Affairs and Communications of the Republic of Estonia. The MoU defines the aims of the Joint Baltic-Nordic Energy Research Programme 2022-2025 (hereinafter called the Programme), describes the Programme´s management structure and outlines thematic research areas within the Programme. The Programme is open to relevant funding organisations willing to comply to this MoU and depending upon approval from the initial Participants. The signatories of the MoU are individually designated as the Participant and collectively as the Participants. Article 2.0: The duration of the Programme The Participants declare their willingness to participate in this Joint Baltic-Nordic Initiative on Energy Research and to freely contribute to the funding of the Programme during the period 2022–2025. 1/7 Article 3.0: The Aims of the Programme The overall aim of the Programme is to promote modern energy research and robust analysis in the Baltic states and inspire intra-Baltic and Baltic-Nordic collaboration as well as to promote Baltic-Nordic Research as a basis for policy development. This is further described in Annex 1: “Programme Memorandum”. Article 4.0: Funding 4.1 The Programme is financed from a fund of contributions provided by the Participants. The Programme is administrated by NER. 4.2 The Participants aim to contribute the Programme as follows: - The Ministry of Economics of the Republic of Latvia 100 000 €/Year, - The Ministry of Energy, Lithuania 100 000 €/Year, - The Ministry of Economic Affairs and Communications, Estonia: The contribution will be specified in a Financial Agreement, - Nordic Energy Research – 3 million NOK/Year. Article 5.0: Funding Procedure 5.1 Funding from the Participants shall be transferred to NER in one of the following ways: - For the whole Programme period (2022-2025) or its part, - On an annual basis in equal amounts of annual contributions. 5.2 Any unused Programme funds may remain at NER for further Programme activities, unless otherwise decided by the Programme Board. If requested by the Participant, any unused Programme funds shall be returned to the Participant according to the original payment ratio. This shall not affect any Actions already in progress unless agreed upon by all other Participants. Article 6.0: Management Structure 6.1 NER is the legal entity administering the Programme and its finances. 6.2 The Programme Board The Programme Board will be composed of: - One representative appointed by the Ministry of Economics of the Republic of Latvia, - One representative appointed by the Ministry of Energy of the Republic of Lithuania, - One representative appointed by the Ministry of Economic Affairs and Communications, Estonia, - Two representatives appointed by NER, - Observer(s). The task of the Programme Board is to work to fulfil the aims of this MoU and represent the interest of the Participants. 6.3 Programme management, secretariat and administration The NER administration will follow the decisions of Programme Board regarding management of the Programme and its funds. The management structure that applies to this programme is further described in the Terms of Reference. 2/7 4.3 Observer(s) Entities that share the aims of the Programme as defined under Article 3.0 may apply for the status of “observer” to the Programme Board. The status as an observer is granted by the Programme Board. Observers may participate at the Programme Board meetings, while decision rights are reserved for Programme Board members. Article 7.0: Ownership of Project outputs In relation to Participants’ ownership of the Project outputs, including Intellectual property rights and open access issues, will be regulated on the basis of the NER Standard Terms of Contract and the respective agreements. In accordance with this, NER will grant all Participants royalty-free, non-exclusive license and user rights to the Projects outputs. Article 8.0: Status of the MoU This MoU outlines current intentions of the Participants signing this MoU and forms a framework for the Programme. This MoU is not intended to create legally enforceable rights or obligations to its Participants. Any disputes related to the interpretation or application of the MoU will be resolved through negotiations between the Participants and will not be brought to the national or international court or any other third party. This MoU enters into force the day after at least three Participants have signed the MoU. Until the fourth Participant has signed, no financial contribution is expected from this Participant, and they will be granted interim status as an Observer. Article 9.0: Miscellaneous The MoU is drawn up in English and all documents and meetings pertaining to the MoU shall be written/conducted in English. The MoU and its Annexes may only be amended by a document signed by all Participants and identified as an Amendment to this MoU. Each Participant shall have the right to terminate this MoU by giving at least six months’ written notice to other Participants at any time. If the MoU is terminated by a Participant, such termination shall not affect any activity already in progress unless agreed upon by all Participants. This MoU has been enacted in four (4) duplicates, one (1) for each Party. 10.0 Annexes to the MoU: In case of conflict between the MoU and the annexes thereto, the documents shall have the following priority: The MoU Annexes Annexes: Annex 1: Programme Memorandum 3/7 Annex 2: Terms of Reference *** Approval of the MoU The following authorized persons approve the MoU: On behalf of Nordic Energy Research Date .............................................. sign …………………………………………. Name, Title 4/7 On behalf of the Ministry of Economics of the Republic of Latvia Date .............................................. sign …………………………………………. Name, Title 5/7 On behalf of the Ministry of Energy of the Republic of Lithuania Date .............................................. sign …………………………………………. Name, Title 6/7 On behalf of the Ministry of Economic Affairs and Communications, Estonia Date .............................................. sign …………………………………………. Name, Title 7/7  Annex 1: Programme Memorandum Reference for the Joint Baltic-Nordic Energy Research programme 2022-2025 The Aims of the Programme The Aims of the Programme, as defined in “Article 3.0: The Aims of the Programme” in the MoU, will be to: “…promote energy research and analysis in the Baltic States and inspire intra-Baltic and Baltic- Nordic collaboration as well as to promote Baltic-Nordic Research”. The Paris Agreement, the EU’s goal of working towards a European Energy Union, Fit for 55 - The EU's plan for a green transition, rapid changes in energy technology create an international context where the Baltic and Nordic countries face similar challenges regarding the future of their energy systems. The Programme To achieve the Aims of the Programme, the Participants develop frameworks for cooperation that will constitute the pillars of the Programme, formulated as two actions: Action no 1: Promotion of intra-Baltic and Baltic-Nordic research projects with participation of Baltic researchers Due to the current geopolitical context, cooperation on energy security and energy infrastructure is an urgent priority for the Baltic and Nordic countries. There is a need to strengthen the resilience of energy systems, and the crisis response capabilities of the electricity and heating sector specifically. Among the areas for joint technology development, highlighted in the 2022 report Baltic-Nordic Roadmap for Co-operation on Clean Energy Technologies, are: demand-side management through digitalisation of the power sector; using hydrogen as an energy carrier of fuel from a systems perspective; integration of carbon capture and storage solutions; rapidly increasing renewable power production (e.g., from offshore wind energy in the Baltic Sea), and associated life-cycle management (including decommissioning renewables sites). The aim of Action no 1 is to strengthen the common Baltic-Nordic knowledge on future challenges and developments in these areas. Drawing on the aforementioned recommendations, the Participants have identified a scope and their key interests in the Programme: The scope of the Programme spans three broad societal challenges: Decarbonation of energy supply; regional energy security, adequacy and sufficiency; and energy efficiency. This can further be specified into three key interests in the Programme: • Regional grid interconnectivity, renewable energy production and digitalisation • Hydrogen, other alternative fuels and gases and carbon capture, utilisation and storage • On- and offshore wind power development • Storage solutions, including batteries Action no 2: Exchange of energy researchers and PhD students between the Baltic and Nordic countries The aim for Action no 2 is to promote exchange of energy researchers and PhD students between the Baltic states and Nordic countries, to deepen intra-Baltic and Baltic-Nordic research collaboration and promote knowledge sharing. The Programme will contribute to dissemination efforts by developing tools, e.g., webinars and digital brochures summarising key takeaways. Other actions may include: joint conferences for PhD students, exchange programs, cover expenses related to overseas courses, include PhD students in projects in Action no 1 or cover travel and accommodation expenses to overseas lectures and facilitate seminars to identify joint research activities.  Annex 2: Terms of Reference for The Baltic- Nordic Energy Research programme 2022-2025 1 BACKGROUND The Baltic-Nordic Energy Research programme 2022-2025 (hereafter called the Programme) is a collaborative effort to improve coeperation in energy research. The overall aims of the programme is to promote energy research in the Baltic states and inspire intra-Baltic and Baltic-Nordic collaboration. A collaboration with the Baltic states was initiated by NER in a formal letter in May 2017. The 26th of October 2018 an agreement between Nordic Energy Research, The Ministry of Energy, Lithuania, The Ministry of Economics Latvia and The Ministry of Economic Affairs and Communications, Estonia came into force and the Joint Baltic-Nordic Energy Research Programme 2018-2021 began, receiving funding for the period 2018-2021 and with activities concluding in 2024. In 2022 the Participants have decided to move forward with the Joint Baltic-Nordic Energy Research Programme 2022-2025. 2 THE PROGRAMME BOARD 2.1 CHAIRING OF THE PROGRAMME BOARD AND SUBORDINATE BODIES OF THE PROGRAMME BOARD The Programme Board Chair will rotate between the Participants on an annual basis. Expert groups may be appointed by the Programme Board if deemed necessary. In order to facilitate scientific and user relevant progress and coherence of the Programme, the Programme Board can appoint a Scientific Advisory Board (SAB). The SAB reports to the Programme Board in intervals decided by the latter. 2.2 MANDATE OF THE PROGRAMME BOARD The task of the Programme Board is to work to fulfil the aims of this Memorandum of Understanding and represent the interests of the Participants. Calls for proposals for funding will be implemented under the Programme. The Programme Board is mandated to: • identify new projects and activities within the Actions, and actively participate in the consultation on the co-funding thereof, • supervise and coordinate initiatives within the Programme. This includes suggesting the thematic scope and instrumentation for new actions, as well as providing/sourcing peers for the evaluation of incoming proposals. Moreover, it includes supervision of Programme activities such as mid-term and final evaluation and dissemination of results, • decide on the thematic areas and funding instruments for the Actions. 2.3. WORK PROCEDURES FOR THE PROGRAMME BOARD The Programme Board meets on a regular basis, at least twice a year. The Programme Board has quorum when a majority of its members is present. All decisions shall be made by consensus. The Programme Board should adhere to all relevant guidelines and policies. 3 THE ADMINISTRATION OF THE PROGRAMME NER administers the Programme and its finances. Where appropriate, the NER guidelines, procedures and rules will guide the actions by the Programme Board. NER administers the funds of the initiative, designs and implements call(s) and evaluation procedures and is the contract partner for funded projects. NER is also in charge of follow-up and reporting of project progress and results to the Programme Board. NER will oversee the administration of the Calls for proposals for the Programme, the management of project contracts, the follow up of the projects and reporting to the Programme Board. NER will present a proposal for the practical organisation of the administration at the first or second Programme Board meeting. The administrative costs (travel expenses, salary, etc.) of the Programme should not exceed 10 % of the Programme fund. 4 IMPARTIALITY Programme Board members are subject to NER’s rules for impartiality. They are prohibited from participating in applications for funding from the Programme. Other cases of potential conflicts of interest shall be thoroughly reported by the Programme Board member to NER in advance of Programme Board meetings and ruled on by the NER Director. 5 OTHER If a Programme Board member is prevented from participating actively in the work, a new member shall be nominated by the respective Participant. 6 ATTACHMENTS Guidelines on Impartiality in NER 2  Att. Riina Sikkut, the Minister of Economic Affairs and Infrastructure, Estonia, Ilze Indriksone, the Minister for Economics of the Republic of Latvia, Dainius Kreivys, the Minister of Energy, Lithuania. 8 November 2022 Invitation to sign the Memorandum of Understanding on the Joint Baltic- Nordic Energy Research programme 2022-2025 Dear Colleagues, First, I would like to express my sincere gratitude for the excellent cooperation under the “Joint Baltic-Nordic Energy Research Programme” (JBNERP). Following this fruitful cooperation, and based on in-depth discussions resulting in a positive interest received to our draft presented at the JBNERP-Steering Board meeting on the 26.10.2022, I hereby invite you to sign the Memorandum of Understanding on the Joint Bal- tic-Nordic Energy Research Programme 2022-2025. I would also like to use the opportunity to invite to the first Joint Baltic-Nordic Energy Re- search Programme 2022-2025 Board meeting, tentatively the 25th of May, here in Oslo, Nor- way. Best regards Klaus Skytte CEO, Nordic Energy Research [email protected] Attachments: - Joint Baltic-Nordic Energy Research Programme 2022-2025 - MoU - The Joint Baltic-Nordic Energy Research Programme 2022-2025 Annex 1 - Pro- gramme Memorandum - The Joint Baltic-Nordic Energy Research Programme 2022-2025 Annex 2 - Terms of Reference - Declaration concerning impartiality NER - Guidelines on Impartiality in NER - Financing agreement - Draft Stenberggata 25 – N-0170 Oslo – + 47 47 61 44 00 – nordicenergy.org  Klaus Skytte Nordic Energy Research Stensberggata 25 Our Ref: 25.11.2022 No 17-1/2022/7262-1 NO-0170, Oslo Invitation to sign the Memorandum of Understanding on the Joint Baltic Nordic Energy Research programme 2022-2025 Dear Mr Klaus Skytte, The Ministry of Economic Affairs and Communications welcomes the progress of the Memorandum of Understanding (MoU) on the new period of 2022-2025 for joint Baltic-Nordic Energy Research programme. It is utmost important to sign the MoU as soon as possible. Considering the joint challenges in our energy system and their links with our economies and societies, the MoU should be put into action. However, taking into account different challenges and crisis we are facing, unfortunately at the moment Estonia is not able to continue with the financial contribution to the programme. We would like to continue as an observer to follow the progress of present and future projects within the programme. The Signatory of the MoU on behalf of our ministry will be Mrs Riina Sikkut, Minister of Economic Affairs and Infrastructure. With best regards, (signed digitally) Riina Sikkut Minister of Economic Affairs and Infrastructure Suur-Ameerika 1 / 10122 Tallinn / ESTONIA Phone: +372 625 6342 / Fax: +372 631 3660 / E-mail: [email protected] / http://www.mkm.ee Irje Möldre +372 6256497 [email protected] Copy to Nordic Energy Research Ministry of Energy of the Republic of Lithuania Ministry of Economics of the Republic of Latvia 2 (2)