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

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Presentation on theme: "Recent and upcoming energy policy initiatives Dr. Tudor Constantinescu Pécs, Hungary 29/04/2011."— Presentation transcript:

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

2 2 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 2020. Energy efficient use can help to cut consumers annual bills by 1000 per household.

3 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.

4 Without action, dependence on energy imports will be a growing challenge Source: European Commission GASOIL 20052008202020302005200820202030 in % 82 % 84 % 93 % 94 % 58 % 62 % 76 % 83 % 100 80 60 40 20 « Business as usual » scenario

5 Energy is also a major source of GHG emissions Source: European Commission & EEA 2010 Share of greenhouse gas emissions in 2008 Energy 79% Agriculture 10% Industry Processes 8% Other 0% Waste 3%

6 Recent gas crises are illustrative > 75 % 50 - 75 % 25 – 50 % < 25% 0% % of missing gas supply – 300 mcm/d for 14 days 6-20 January 2009 Source: European Commission 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.

7 Massive modernisation investment is needed Total investment needs in the electricity and gas sector between 2010-20: over 1 trillion Power generation: ~ 500 bn Transmission and distribution: ~ 600 bn Distribution: ~ 400 bn Transmission: ~ 200 bn Source: Commission calculations Renewables: ~ 310-370 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.

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

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

10 10 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.

11 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.

12 12 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.

13 13 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.

14 14 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.

15 15 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

16 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

17 Thank you

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