Transcript Document 7449755

I. OBJECTIVES AND CHALLENGES
Communications of the Commission:
“An Energy Policy for Europe” and
the Energy Package 2007
“Limiting Global Climate Change to 2°C:
The way ahead for the EU and the
World for 2020 and beyond”
Directorate General for Energy and Transport
2
THE THREE CHALLENGES
•Internal Market
•Interconnections (Trans-European networks)
•European electricity and gas network
•Research and innovation
•Clean coal
•Carbon sequestration
•Alternative fuels
•Energy efficiency
•Nuclear
Competitiveness
“LISBON”
FULLY
BALANCED
INTEGRATED
Sustainable
Development
“KYOTO”
•Renewable energy
•Energy efficiency
•Nuclear
•Research and innovation
•Emission trading
Directorate General for Energy and Transport
AND
MUTUALLY REINFORCED
Security of supply
•International Dialogue
•European stock management (oil/gas)
•Refining capacity and energy storage
•Diversification
3
INTEGRATING
ENERGY & ENVIRONMENT
Meeting the 2°c objective and
responsibility of the
developed countries to act in
breaking the international
deadlock for post-2012
Directorate General for Energy and Transport
4
ENERGY FOR A CHANGING WORLD
THE STRATEGIC OBJECTIVE
 20% unilateral EU reduction
of GHG by 2020
 30 % GHG reduction in the
framework of an
international agreement
Directorate General for Energy and Transport
5
THE KEY DRIVERS 3x20% by 2020
By 2020 20% EU GHG
20% by 2020 EFFICIENCY
By 2020
binding 20% RENEWABLES
at EU level
BIO-FUELS
Min 10% binding
E-ELECTRICITY
MS binding
target
HEATING & COOLING
MS binding
target
NATIONAL TARGETS and ACTION PLANS
Directorate General for Energy and Transport
6
II. THE ACTION PLAN
Actions
for a
„post -industrial
revolution“
Directorate General for Energy and Transport
7
1. Internal Energy Market
The Challenges:
 Incomplete and incorrect transposition: 26
infringement cases against 16 MS
 Different powers and competences of
regulators
 Markets are not integrated sufficiently –
national markets concentrated;
 Lack of cross border capacity and need for
interconnections;
 Incompatible market design in some cases
– e.g. balancing, transmission tariff
regimes
 Limited wholesale trading
Directorate General for Energy and Transport
8
Concentration of
national gas markets
Incumbent(s) share of available gas in %
UK
NL
Italy
Germany
Denmark
Austria
Poland
Hungary
France
Belgium
0
Directorate General for Energy and Transport
20
40
60
80
100
9
Concentration in electricity
markets
FRANCE - single dominance
GERMANY - oligopoly
Directorate General for Energy and Transport
SPAIN - duopoly
UK – fairly competitive market
10
Electricity interconnectors are
often chronically congested
Estimated hours of congestion as a percentage of all hours, Jan-May 2005
Hours when requested capacity exceeds
available capacity as a percentage of all hours
100
75
50
25
0
SK HU
FR CH
DE DK
NL BE
FR UK
DE NLNL
(1)
FR ES
CZ DE
NL DEDE
(1)
BE NL
DE FRFR
(1)
CZ AT
DE CZCZ
(1)
UK FR
FR DE
Selection of borders
Directorate General for Energy and Transport
11
Prices for commercial
electricity users
Average industrial electricity prices 2002-2006
Sweden
Finland
Czech Rep
UK
Hungary
Denmark
Germany
Belgium
Italy
0
20
40
60
80
100
Member States with regulated tariffs such as France and Spain are not
representatives
Euro/MWh net of tax
Directorate General for Energy and Transport
12
Internal Market – Policy Actions (1)
 Enhancing the role of national regulators and
reinforcing co-ordination of regulators at EU level
 Options: cooperation between national regulators;
ERGEG+; a new, single Community body
 Interconnection : more co-ordination between
TSO’s


Binding network security standards
Assessment of Investment needs
 Non-discriminatory access to networks through
efficient unbundling
 Options: Ownership unbundling as the most efficient
means/Independent System Operator (ISO) secondbest
Directorate General for Energy and Transport
13
Ownership unbundling :
major points of criticism
 “Trip into unchartered waters”?
 In many Member States already applied successfully (13 MS in
electricity, 6 MS in gas)
 Expropriation?
 increased shareholder value by resolving the conflict of interest and
providing new focus
 Less investment?
 TSO no longer stymied by producer interest, more investment in
UK, NL (LNG) and Northern Europe (Interconnections)
 Weaker position vis-à-vis gas supply countries?
 Today‘s national orientation is weakening the EU („asset swaps“),
ownership unbundling is a means to protect networks.
 More regulation can achieve the same objectives?
 Limitation of entrepreneurial freedoms;
a regulator in each board meeting?
Directorate General for Energy and Transport
14
Internal Market – Policy Actions (2)
 Transparency of the market
 Energy Customers Charter
Directorate General for Energy and Transport
15
Priority Interconnection Plan
Policy Actions for Infrastructure:
 Continuous identification of missing
infrastructure
 European coordinators for 4 priority projects:




Power-Link Germany, Poland Lithuania,
Connections to off-shore wind power Northern Europe,
Electricity interconnections France-Spain,
Nabucco pipeline
 TEN-projects of “European interest” - planning
and approval procedures for maximum 5 years
 Increased funding of Trans European Energy
Networks (TEN-E)
Directorate General for Energy and Transport
16
2. Solidarity in Security of Supply
 A fully functioning internal energy
market is the best guarantee of
supply security.
 Electricity and Gas
Interconnections
 Gas Coordination Group
 Oil Supply Group
 Energy Correspondents Network
 Communication on strategic
stocks
Directorate General for Energy and Transport
17
3. Energy Efficiency (1)
Energy Efficiency Action Plan
(adopted on 19 October 2006)
Saving 20% by 2020 Realising the Potential:
 Improving the efficiency of heat and
electricity generation, tranmission and
distribution
 Transport : fuel efficient cars; better use
of public transport; introduction of
biofuels
 Buildings : improving the energy
performance of the EU’s building stock
 Appliances : tougher standards and
better labelling
Directorate General for Energy and Transport
18
3. Energy Efficiency (2)
 Structural Funds and the EIB/EBRD to
support energy efficiency
 Facilitating investments and financial
incentives for energy efficiency in
cooperation with financial institutions,
including new Member States
 International agreement on energy
efficiency (improved, internationally
agreed minimum energy efficiency
standards for a wide range of products
and equiment and a process for the
gradual raising of these standards) with
IEA countries, Russia, China and India.
Directorate General for Energy and Transport
19
4. Renewable Energy Sources
 Necessary to increase the level of
renewable energy in the EU’s overall
mix
 European Council agreed on a binding
overall 20% target by 2020 and a 10%
minimum binding target for biofuels
 Member States set national targets and
action plans on:
RES in electricity
Heating and cooling
Biofuels
Directorate General for Energy and Transport
20
5. Research and Technology (1)
STRATEGIC PLAN by end 2007
Promotion of technologies to support EPE and the
low-carbon energy economy with 20% 2020 RES
target

Second generation biofuels, photovoltaic,
large-scale offshore-wind, hydrogen fuel
cells,

Generation IV fission power, fusion energy,

Energy efficient transports, appliances and
industrial systems,

Sustainable coal and gas: to make plants
CCS ready by 2020.
Directorate General for Energy and Transport
21
5. Research and Technology (2)
Sustainable Fossil Fuels
 Up to 12 industrial-scale demonstration
facilities of sustainable power generation
from fossil fuel in Europe (“Early mover
incentives”, Technology platform, Pooling
of EU and MS Funds, Joint Undertakings)
 Improvement of the legal framework (CCS
in ETS) and public acceptance
 Clear timeframe for installation of CO2
capture & storage CCS for coal- and gasfired power plants
CCS for new fossil fuel plant after 2020
RETROFITTING of existing plants
Directorate General for Energy and Transport
22
6. Future of Nuclear
 Around 1/3 of the electricity and 15%
of the EU energy mix
 CO2-free source with importance in
low emission scenarios
 Concerns on nuclear waste and
decommissioning
 Phasing-out of nuclear energy =
phasing-in of other C02 free energy
sources
Policy Actions:
Commission proposes to establish an
EU High Level Group on Nuclear Safety
and Security and High Level Group on
Innovative Systems
Directorate General for Energy and Transport
23
7. International Energy Policy (1)
Regional Energy Trends
 Oil
 ¾ of increase (2003-2030) in
developing regions, especially Asia
 China oil demand increased 2.5 times
since 1993, when first became net oil
importer
 Natural Gas
 Growth in every region
 Fastest in India and China
 Coal
 Increase rapidly in China and India (in
2030, both 48% share of world coal
demand), notably for power generation
Directorate General for Energy and Transport
24
7. International Energy Policy (2)
 COOPERATION WITH KEY ENERGY
PRODUCERS, TRANSIT COUNTRIES AND
CONSUMERS:
Through OPEC, GCC, with Central Asia
(e.g. MoU Azerbaijan, Kazakhstan), Baku
Initiative, Latin America, Caribbean, AfricaEurope Partnership
 EU RUSSIA ENERGY COOPERATION:
Energy partnership in the framework of the
post-PCA agreement
Directorate General for Energy and Transport
25
7. International Energy Policy (3)
 ENERGY RELATIONS WITH EU
NEIGHBOURS:
Norway, European Neighbourhood
Policy,Euromed, Mashrek/ Magreb, Turkey,
Energy Community (South-East Europe)
 NEGOTIATIONS & AGREEMENTS
on climate, trade and technology:
Post-2012 climate regime, World Bank Gas
Flaring Reduction Partnership, Extractive
Industries Transparency Initiative, Energy
Charter, extension of ETS to global partners,
energy efficiency agreement.
Directorate General for Energy and Transport
26
III. THE WAY AHEAD
 European Council: 8-9 March 2007
=>Consensus on an Action Plan on An
Energy Policy for Europe
 European Parliament : resolution of 14
December 2006; resolution on Energy
Package expected for July 2007
 Legislative proposals to be tabled by
the Commission after this summer
 UNFCCC & Kyoto Protocol processes
 G-8
Directorate General for Energy and Transport
27
INFORMATION & DOCUMENTATION
All documents on the climate and energy
package are available on:
http://ec.europa.eu/energy/energy_policy
/index_en.htm
Directorate General for Energy and Transport
28