CLEAN ENERGY FOR ALL EUROPEANS - Minaraad

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CLEAN ENERGY FOR ALL EUROPEANS

CLEAN ENERGY FOR ALL

EUROPEANS

Mechthild WörsdörferDirector for Energy PolicyEuropean Commission – DG ENERGY


Unique opportunity to modernise our economy and to

WHY DO WE NEED THIS PACKAGE?THE ENERGY SYSTEM OF TOMORROW WILL LOOK DIFFERENTLY

203050% of electricity to come from renewables

2050Electricity completely carbon free

Thanks to the EU - ambitious energy and climate commitments

With leadership comes responsibility

create the growth and jobs we needboost competitiveness

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WHAT ARE OUR GOALS?

CREATING JOBS & GROWTH, BRINGING DOWN GREENHOUSE GAS EMISSIONS, SECURING ENERGY SUPPLY

Demonstrating global leadership

in renewables

Delivering a fair deal for consumers

Putting energy efficiency first

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HOW DO WE GET THERE? (1)

THE RIGHT FACILITATING MEASURES

Setting the right incentives for investment in the energy transitionand maximising the use of public funds

Delivering on social concerns and job training to ensure a socially fair energy transition

Driving digitalisationforward to enable new energy technologies

Delivering on keyenergyinfrastructure projects

Acceleratinginnovation to support leadership e.g. in advanced RES

Ensuring multi-stakeholder action

External dimension: Fostering security of supply and promoting clean energy measuresabroad

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New Electricity Market Design(including Risk Preparedness)

HOW DO WE GET THERE (2)?

THE RIGHT REGULATORY FRAMEWORK FOR POST – 2020

Energy Union Governance

" In essence the new package is about tapping our green growth potential across the board"Commissioner Miguel Arias Cañete (2016)

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ENERGY EFFICIENCY

ACHIEVING THE BINDING 30% ENERGY EFFICIENCY TARGET BY 2030

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Energy Efficiency Directive Energy Performance of Buildings

• Clear vision for a decarbonised building stock by 2050;

• Smart & Efficient buildings through use of Information and Communication Technologies and Smart Technologies;

• Smart Finance for Smart Buildings initiative:

o More effective use of public funding

o Aggregation of funds o De-risking

• Protect vulnerable groups & address energy poverty.

Ecodesign Working Plan 2016-2019

• List of new product groups;

• Outline on how ecodesign will contribute to circular economy objectives;

• Specific measures on air conditioning;

• Guidelines on voluntary agreements.

• Binding 30% energy efficiency target for 2030;

• Create 400,000 new jobs;

• Reduce gas imports by 12%;

• Save € 70 billion in fossil fuel imports;

• Empower consumers by granting access to information on their energy consumption.

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Integratednational energy and climate plan

Periodic progress reports

Periodic State of the Energy Union

MS planning MS reporting EC monitoring /reporting

TODAY

NEW GOVERNANCE

Synchronised with the Paris Agreement's review cycle

ENERGY UNION GOVERNANCE

STREAMLINING AND INTEGRATION OF ENERGY AND CLIMATE PLANNING AND REPORTING

National Integrated Energy and Climate Plans (2021 to 2030)(preparation well before 2020)

National progress reports(from 2021, every two years)

European Commission monitoring(State of the Energy Union)


Investment certainty

Cost-effective deployment

Collective target

achievement

Strengthening bioenergy

sustainability

Promoting innovation in

transport

Tapping into heating and

cooling potential

THE REVISED RENEWABLE ENERGY DIRECTIVE – MAIN OBJECTIVES

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2030202320212019

Governance(reporting & monitoring)

RED II sector specific measures(transport, H&C, support schemes, self-consumers…)

Flexible Gap fillerIf gap, MS decide on measures

Incl. voluntary contribution to financing platform (governance)

Enabling framework incl. enhanced use of funds

Governance(planning, reporting and monitoring)

2020 targets as the baseline

Governance

RED II

RENEWABLE ENERGY: HOW TO ACHIEVE AT LEAST 27 % RES EU-WIDE


A FAIR DEAL FOR CONSUMERS

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NEW MARKET DESIGN

• Access to fit-for-purpose smart meters

• Certified price comparison tool

• Clearer energy bills

• Entitle individuals and communities to generate electricity and to consume, store or sell it back to the market

• Easier switching conditions

• Reward demand-response

• Monitoring of energy poverty (governance)

• Information on alternatives to disconnection

• Secured electricity supplies

• Sound data management

BETTER INFORMED EMPOWERED PROTECTED

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MARKETS FIT FOR PURPOSE

LOW EMISSION

NEW MARKET DESIGN

Strengthened short-term markets Level-playing field among sources

Increase cross-border trading opportunities over shorter timeframes (intraday and balancing markets)

Reward flexibility for generation, demand-response and storage

Allow prices to show real value of electricity in terms of time and location (scarcity pricing)

Rules on priority access and dispatch

Curtailment rules

Remuneration on equal terms on market principles

Extended balancing responsibilities

Competitive energy markets are at the heart of a competitive economy

Competitive retail markets

Flexible network management

Regulated prices phased out

Fair market access for new market players such as new service providers

Distribution operators as neutral but active market facilitators

Regional cooperation

Regional Operation Centres (TSOs)

Common rules on crisis prevention

European framework for capacity remuneration

New tasks for ACER


STRENGTHENING RISK PREPAREDNESS: SAFER TOGETHERCOMMON RULES FOR ENHANCED COOPERATION

Common risk identification and assessment

Risk preparedness plans

Common principles on handling crisis

Information sharing and transparency

EU level monitoring

Commonrisk

assessment

Risk preparedness

plans

- Mandatory plans and coordinated measures- Consultation with other Member States and Electricity Coordination Group (ECG)

- Common methodology for:• Identifying electricity crisis• Assessing short-term adequacy

- Identification of crisis scenario

- Solidarity principle and assistance- Ensure market functions as long as possible- Non-market measures only as last resort

Obligation to inform EC and Member States:

• In case of electricity crisis (measures and need for assistance)

• "Early-warning"

- Systematic monitoring via Electricity Coordination Group- Harmonised indicator to monitor- Reporting on electricity crisis events

Monitoring at EU level via Elec. Coord.

Group

Information sharing and

transparency

Common principles on

how to handle crisis

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Key findings

q Wholesale gas, electricity and oil prices have fallen significantly since 2012;

q Retail prices rose: higher network tariffs and taxes and levies countered fuel price reductions;

q Energy costs rose for households: to 5.8% of household energy expenditure.

Key conclusions

q Importance of a more competitive and efficient internal market;

q Need for greater clarity on network, tax and levy components;

q Rising households costs –Importance of energy efficiency;

q Energy intensive industries require particular attention.

REPORT ON ENERGY PRICES AND COSTS

Average EU household expenditure on energy


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THANK YOU!Follow us:

@Energy4Europe @MWorsdorfer#CleanEnergyEU

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CLEAN ENERGY FOR ALL EUROPEANS - Minaraad