Transcript Dependence on imports is likely to grow

Recent and upcoming energy
policy initiatives
Dr. Tudor Constantinescu
Pécs, Hungary
29/04/2011
 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.
2
 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.
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Without action, dependence on energy
imports will be a growing challenge
OIL
in %
2005
2008
GAS
2020
100
2030
2005
2008
2020
2030
94 %
93 %
80
82 %
84 %
83 %
76 %
60
62 %
58 %
40
20
« Business as usual » scenario
Source: European Commission
Energy is also a major source of
GHG emissions
Agriculture
10%
Industry
Processes
8%
Waste
3%
Other
0%
Energy
79%
Share of greenhouse gas
emissions in 2008
Source: European Commission & EEA 2010
Recent gas crises are illustrative
% of missing gas supply
– 300 mcm/d for 14 days
6-20 January 2009
> 75 %
50 - 75 %
25 – 50 %
< 25%
0%
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
Massive modernisation
investment is needed
Total investment needs in the electricity and gas sector
between 2010-20: over € 1 trillion
Power generation: ~ € 500 bn
Renewables: ~ € 310-370 bn
Transmission and distribution: ~ € 600 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
Meeting our “20-20-20 by 2020”
goals
Reduce greenhouse
gas levels by 20%
Current
trend
to 2020
Increase share of
renewables to 20%
-20%
Current
trend
to 2020
Reduce energy
consumption by 20%
Current
trend
to 2020
20%
100%
-10%
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
 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.
10
 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.
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 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.
12
 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.
13
 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.
14
 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
15
 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 lowcarbon and transport Roadmaps
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Thank you
[email protected]