Clean Energy For All Europeans

CLEAN ENERGY FOR ALL EUROPEANS

CLEAN ENERGY FOR ALL

EUROPEANS

Paula PinhoHead of Unit – Energy Policy CoordinationEuropean 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? (2)

THE RIGHT ENABLING ENVIRONMENT

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

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

Driving digitalization forward to enable new energy technologies

Delivering on key energy infrastructure projects

Accelerating research and innovation to support leadership in advanced RES

Ensuring regional cooperation: Making the energy transition a multi-level government and stakeholder project

External dimension: Fostering security of supply and promoting clean energy measures abroad

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New Electricity Market Design(including Risk Preparedness)

HOW DO WE GET THERE?

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 30% ENERGY EFFICIENCY TARGET BY 2030

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Energy Efficiency Directive Energy Performance of Buildings

• Clear vision for a decarbonised building stock;

• 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;

• Cut health-related damage costs by up to €8.3 billion.


Integrated national 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)

(iterative process between Member States and Commission)

National progress reports(from 2021, every two years)

European Commission monitoring(State of the Energy Union)


Stenghthened role

Regulatory oversight

Better information

Protection

Empowerment

Information sharing &

transparency

Common principles

Level-playing field

Liquid, integrated markets

Sharing generation adequacy

Regional Operation Centres

Flexibility

NEW MARKET DESIGN


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

MARKETS FIT FOR PURPOSE

Competitive wholesale market

by enhancing system flexibility

Competitive retail market

Regulated prices phased out

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

Flexible network management

Distribution operators become neutral but active market facilitator

Reward flexibility for generation, demand-response and storageScarcity pricing

Increase cross-border trading opportunities over shorter timeframes

Create level-playing field among sources (e.g. priority access/dispatch, balancing obligation etc.)


MARKETS FIT FOR PURPOSE

LOW EMISSION

Enhancing system

flexibility:

INTEGRATION OF RENEWABLES

MARKET-DRIVEN INVESTMENTS

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 services providers

Distribution operators become neutral but active market facilitator


STRENGTHENING RISK PREPAREDNESS: SAFER TOGETHERENHANCED COOPERATION COMES FROM COMMON RULES

Commonrisk

assessment

Risk preparedness

plansMonitoring at EU level via

ECG

Information sharing and

transparency

Common principles on how to handle

crisis


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


132030202320212019

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 I I

HOW TO MAKE IT HAPPEN: ACHIEVING AT LEAST 27 % RES EU-WIDE


Energy prices and costs - the headlines

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

Prices in regional EU markets have converged Global price gaps with US (-) and Asia (+) have diminished The EU energy import bill fell by 35% since 2013; economic growth was boosted

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

household electricity prices rose 3% pa; gas prices around 2% pa. industry electricity prices rose 2%; gas prices were stable; fell for large consumers

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

for poorer households share rose to 8.6%, a greater increase than for wealthier households Overall industry's energy share of production costs is less than 2% - Data on energy intensive industries shows overall energy cost shares have declined since 2008 - However these shares can be very significant and affect competitiveness in certain sectors


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Clean Energy For All Europeans