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Clean Energy For All Europeans

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Presentation del Clean Energy Package de la Comisión European en el Winter Seminar de Funseam 2016, organizado por Funseam y Gas Natural Fenosa

Paula Pinho Head of Unit – Energy Policy Coordination European Commission – DG ENERGY

Published in: Environment
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Clean Energy For All Europeans

  1. 1. CLEAN ENERGY FOR ALL EUROPEANS CLEAN ENERGY FOR ALL EUROPEANS Paula Pinho Head of Unit – Energy Policy Coordination European Commission – DG ENERGY
  2. 2. CLEAN ENERGY FOR ALL EUROPEANS Unique opportunity to modernise our economy and to WHY DO WE NEED THIS PACKAGE? THE ENERGY SYSTEM OF TOMORROW WILL LOOK DIFFERENTLY 2030 50% of electricity to come from renewables 2050 Electricity completely carbon free Thanks to the EU - ambitious energy and climate commitments With leadership comes responsibility create the growth and jobs we needboost competitiveness 2
  3. 3. CLEAN ENERGY FOR ALL EUROPEANS 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 3
  4. 4. CLEAN ENERGY FOR ALL EUROPEANS 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 4
  5. 5. CLEAN ENERGY FOR ALL EUROPEANS 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) 5
  6. 6. CLEAN ENERGY FOR ALL EUROPEANS ENERGY EFFICIENCY ACHIEVING THE 30% ENERGY EFFICIENCY TARGET BY 2030 6 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.
  7. 7. CLEAN ENERGY FOR ALL EUROPEANS 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)
  8. 8. CLEAN ENERGY FOR ALL EUROPEANS 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
  9. 9. CLEAN ENERGY FOR ALL EUROPEANS A FAIR DEAL FOR CONSUMERS 9 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 storage Scarcity pricing Increase cross-border trading opportunities over shorter timeframes Create level-playing field among sources (e.g. priority access/dispatch, balancing obligation etc.)
  10. 10. CLEAN ENERGY FOR ALL EUROPEANS 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
  11. 11. CLEAN ENERGY FOR ALL EUROPEANS STRENGTHENING RISK PREPAREDNESS: SAFER TOGETHER ENHANCED COOPERATION COMES FROM COMMON RULES Common risk assessment Risk preparedness plans Monitoring at EU level via ECG Information sharing and transparency Common principles on how to handle crisis
  12. 12. CLEAN ENERGY FOR ALL EUROPEANS 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
  13. 13. CLEAN ENERGY FOR ALL EUROPEANS 13 2030202320212019 Governance (reporting & monitoring) RED II sector specific measures (transport, H&C, support schemes, self-consumers…) Flexible Gap filler If 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 HOW TO MAKE IT HAPPEN: ACHIEVING AT LEAST 27 % RES EU-WIDE
  14. 14. CLEAN ENERGY FOR ALL EUROPEANS 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
  15. 15. CLEAN ENERGY FOR ALL EUROPEANS 15 THANK YOU! Follow us: @Energy4Europe @Pinhopau #CleanEnergyEU

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