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Who Should Act for Energy Policy?


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Who Should Act for Energy Policy? The EU, Member States, regulators, companies… ... or, in the case of smart cities, the local authorities?

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Who Should Act for Energy Policy?

  1. 1. Florence School of RegulationWho Should Act for Energy Policy?The EU, Member States, regulators, companies…... or, in the case of smart cities, the local authorities?DG ENERGY Lunch SeminarBrussels, 18 June 2012Jean-Michel GlachantFSR & THINK (
  2. 2. Outline: adding value; adding value_ Whom?• Why EU institutions can provide “added value” in energy policy?• How EU institutions create “added value” in energy policy?• Examples of who should act (from THINK reports recommendations) 2
  3. 3. Why EU institutions can provide added value inenergy policy ? Reason is twofold…1. Assuring commitment. – The transition towards a low-carbon energy system in 2050 requires deep changes while the path is 40 years long and full of uncertainties. – Political commitment is needed throughout EU to give the necessary confidence to investors and appeal to society and citizens.2. Coordinating policies. – National measures often have implications for other Member States, which can be both positive and/or negative. Interactions matter a lot. – As energy markets and grids are increasingly integrated, the EU has to monitor and align Member State interdependencies. 3
  4. 4. Why EU institutions can provide added value inenergy policy? However…• We only look for "European value added" and not for "Europeanization of everything everywhere"• National or local policy makers frequently have better information and knowledge, also more responsive to local needs• Policy experimentation at local level crucial when uncertainty: what we should be targeting for, what good measures are (to reach the targets)• EU institutions can also create added value by monitoring, benchmarking, and spreading good policy practices• EU Value has to be added only when "subsidiarity" does not do the job 4
  5. 5. How EU institutions create added value in energypolicy? Typology: three types of EU involvement1. Effort sharing: EU defines binding targets for Member State action – Examples are the “20-20-20” targets, which can be shared among Member States with national targets that take into account the wealth and potential of each country – With this type of involvement, the EU creates added value by assuring commitment2. Harmonization: EU frames the choice of measures to be taken by Member States – Examples are the rules for cross-border energy exchanges that have been increasingly coordinated with target models to reduce transactions costs and promote exchanges – With this type of involvement, the EU creates added value by coordinating policies3. Level playing field: an EU-wide instrument is designed – Example: EU Emissions Trading Scheme (EU-ETS) ensures that target to reduce greenhouse gas emissions is reached, and that there is a single carbon price in Europe – With this type of involvement, the EU creates added value with strong commitment and coordination 5
  6. 6. How EU institutions create added value? Analytical framework for THINK energy policy recommendations Assuring Coordination Strong alignmentEU added value commitment of choices of commitment and coordination Effort sharing: Harmonization: Level playing defining Intervening in the field: design ofEU role targets for choice of actions a EU-wide member state by member states instrument actionEU involvement 1ST TYPE 2ND TYPE 3RD TYPE 6
  7. 7. Examples of who should act from THINK reportrecommendations - Latest reports, June 2012Refurbishment Storage ofof Buildings Electricity• Is deep change so EU has important • Future RES electricity system needs role to play in assuring commitment much more flexibility (OR: much• Then need to “push” building actors more storage as such??) to refurbish with regulations • Role of the EU is then twofold:• Several instruments can be used, better to leave choice to MS (1) Ensure level-playing field *no distorted internal market• Still, key role for EU to facilitate the **appropriate EU regulation implementation of these instruments … NO very special treatment for storage, by introducing EU energy but avoiding its deployment is impeded performance certificate scheme (harmonization & credibility of (2) Provide coordination to public information and mesurement) support to flexibility research and innovation 7
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  9. 9. Florence School of RegulationThank you very much for your