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Recent and upcoming energy policy initiatives

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Presentation on theme: "Recent and upcoming energy policy initiatives"— Presentation transcript:

1 Recent and upcoming energy policy initiatives
Dr. Tudor Constantinescu Pécs, Hungary 29/04/2011

2 Why energy policy matters:
Why energy policy matters: The EU pays 2.5% of its annual GDP to import energy: € 270 bn for oil € 40 bn for gas We can do better: A truly integrated EU energy market will lead to: 0.6% - 0.8% increase in GDP Each consumer to save € 100 a year by switching supplier/tariff Achieving renewable and energy efficiency targets could create 5 million more jobs by Energy efficient use can help to cut consumers’ annual bills by €1000 per household. 2

3 Why we need to act now:  Rising challenges:
Dependence on imports of oil and gas is growing. The EU needs to save energy and find new energy alternatives and to produce more of its own energy. The EU committed to cut its greenhouse gas emissions to combat climate change. The energy system must become low-carbon. Massive investment is needed for the modernisation of energy infrastructure. Investments in the order of € 1 trillion are needed by 2020 to replace obsolete capacity. Energy prices are rising. Citizens and businesses are entitled to have access to affordable energy. 3

4 « Business as usual » scenario
Without action, dependence on energy imports will be a growing challenge OIL GAS in % 2005 2008 2020 2030 2005 2008 2020 2030 100 80 60 40 20 82 % 84 % 93 % 94 % 58 % 62 % 76 % 83 % « Business as usual  » scenario Source: European Commission

5 Energy is also a major source of GHG emissions
79% Agriculture 10% Industry Processes 8% Other 0% Waste 3% The EU must adress the global warming issue. Energy is the key sector to decarbonise. Share of greenhouse gas emissions in 2008 Source: European Commission & EEA 2010

6 Recent gas crises are illustrative
> 75 % % 25 – 50 % < 25% 0% % of missing gas supply – 300 mcm/d for 14 days 6-20 January 2009 The January 2009 gas crisis showed the lack of physical interconnections and the poor functioning of the EU internal market, with several Member States facing severe energy shortages for several days. Source: European Commission

7 Massive modernisation investment is needed
Total investment needs in the electricity and gas sector between : over € 1 trillion Power generation: ~ € 500 bn Transmission and distribution: ~ € 600 bn Renewables: ~ € bn Distribution: ~ € 400 bn Transmission: ~ € 200 bn Investments of over € 1 trillion will be needed by 2020 to replace obsolete power plants, to modernise and adapt infrastructure to the latest technologies and to cater for demand for low carbon energy. Source: Commission calculations

8 Meeting our “20-20-20 by 2020” goals
Reduce greenhouse gas levels by 20% Increase share of renewables to 20% Reduce energy consumption by 20% 100% Current trend to 2020 Current trend to 2020 -20% -10% Current trend to 2020 20% 8

9 ENERGY STRATEGY 2020 5 PRIORITIES to achieve our goals
Efficient use of energy Integrated energy market Secure, safe and affordable energy Technological leadership Strong international partnership Competitiveness Security of Supply Sustainability

10 Achievements of European Energy Summit (4 Feb 2011)
Achievements of European Energy Summit (4 Feb 2011) "Europeanisation" of energy policy : Confirms energy at top of political agenda Top level endorsement for key points of Commission's Energy 2020 strategy: completion of internal market, external coordination, more collaboration on both 2020 and 2050 goals. So, at this stage of our strategy, what can we expect for the future? To answer this, let me explain what happened at the European Council Summit on Energy on 4 February. One of the main achievements was to demonstrate a more “European” and less nationalistic approach to energy policy. 10

11 Boost to internal market
Concrete timetable for completing internal market (2014) and integrating networks (no isolated MS by 2015), Endorsement for Commission's proposal for new legal instrument to speed up new infrastructure investments, Recognition of possible public sector support for strategic projects that would be justified from a security of supply/solidarity perspective, but are unable to attract enough market-led investment. On the internal market, the date of 2014 was agreed to complete the internal market. There was also a promise that by 2015 no Member State should be isolated from the European network or have its supply security be threatened by lack of interconnections. The Council also agreed with the need for a new Infrastructure Instrument, and the need to consider public funding where projects do not attract enough market-led investment. 11

12 More attention to energy efficiency
More attention to energy efficiency Deadline of Jan 2012 for EU driven energy efficiency standards in public procurement in buildings and services, EU should consider new measures after 2013 on top of new Energy Efficiency Plan if necessary, All new buildings should be nearly zero-energy buildings by 31 December 2020. Clear plans were laid out to ensure we improve energy efficiency as promised… 12

13 Clear priorities for technology and innovation
Clear priorities for technology and innovation Renewed focus on European Strategic Energy Technology Plan, specifically renewables and "safe and sustainable low carbon technologies" (i.e. including nuclear), Call for new EU initiatives, e.g. smart grids linked to electric vehicles, electricity storage, second-generation biofuels and smart cities. And new efforts will be made to consolidate EU leadership in key sectors. 13

14 A more pro-active approach to external energy policy
A more pro-active approach to external energy policy European Council calls for new proposals on external dimension from Commission, Member States are invited to inform Commission from Jan 2012 of any new and existing bilateral agreements with third countries, Energy security should feature in EU Neighbourhood Policy, EU urged to play a full role in international energy relations and negotiations, Recognition of need for level playing field for EU and non-EU players in international markets, Call for deepening and extending Energy Community, Support for new gas import developments, such as Southern Corridor. External energy policy was a particular f ocus of the summit. The need for greater integration in energy policy externally, in parallel to integration at home, was a theme. 14

15 A longer term strategy towards 2050
A longer term strategy towards 2050 Recognition of need for low-carbon 2050 strategy to deliver 80-95% reduction in greenhouse gas emissions by 2050, Possibility of intermediary stages, Commitment by European Council to keep developments towards 2050 under review And the Council agreed a longer term vision, towards This must assure the longer term perspective which investors need. 15

16  NEXT STEPS Main proposals from the Commission in 2011:
Energy Efficiency Plan, which was adopted on 8 March 2011, Legislative proposal on energy efficiency (22 June 2011), which will provide an enhanced framework for energy efficiency and savings policies of Member States, possibly merging the Energy Services and the Cogeneration Directives Energy Infrastructure Instrument, with list of European priority infrastructure projects, proposal for streamlining permits procedures and possible sources of finance for these projects (autumn) Communication on external dimension of energy policy (autumn), which will present a comprehensive analysis of the external dimension and identify priorities for the EU external energy cooperation 2050 Energy Roadmap (autumn) - complementary to low-carbon and transport Roadmaps So what can we look forward to in 2011: Full implementation of existing legislation is top priority; Speedy adoption of proposals on the table, particularly REMIT; Council has urged Commission to continue work on strategic technologies and on monitoring position of consumers in the internal market; In addition, the Commission will present a number of new initiatives in 2011: Infrastructure Energy efficiency External policy 2050 Roadmap Smart grids 16

17 Thank you

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