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Click to edit Master text styles Second level Third level Fourth level Fifth level Energy Efficiency: Progress and Way Forward European Climate Change Programme II Stakeholder Meeting Brussels, 24 October 2005 John SCOWCROFT Head of Environment and Sustainable Development European Electricity Industry

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Energy Efficiency: Progress and Way ForwardEnergy Efficiency: Progress and Way Forward

European Climate Change Programme II

Stakeholder MeetingBrussels, 24 October 2005

John SCOWCROFTHead of Environment and Sustainable DevelopmentJohn SCOWCROFTHead of Environment and Sustainable Development

European Electricity IndustryEuropean Electricity Industry

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Representing the electricity industry at expert, strategic and policymaking levels.

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KEY MESSAGESKEY MESSAGES

1. The electricity industry is one of the most active sectors promoting energy efficiency in Europe.

• Investments in high-efficiency generation, transmission & distribution.

• Consistently promoted to its customers the efficient use of energy.

• One of the highest labour productivities in the EU [5.7% - 1995-2001].

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2. The electricity industry achieved, and continues to achieve, greater energy efficiencies.

Source: EURELECTRIC, Synopsis of Eurprog 2002, June 2003

0

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1980 1990 2000 2010

TW

h

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MtC

O2

Electricity Production

CO2 Emissions

The liberalised market and existing legislation (e.g. emissions trading, etc) will drive and accelerate efficiency improvements.

Clear improvements in thermal efficiency: from 36% in 1995 to 40% in 2005; forecast in 2030 = 49%.

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All fuels and technologies should be available and actively improved (i.e. no “winning technologies”).

η = Electricity output

Energy input

Effi

cien

cy (

%)

HydroTidal

CCGT

CoalWind Nuclear

Biomass

PV Geothermal

Source: “Efficiency in Electricity Generation” - EURELECTRIC, VGB

CHP

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3. The potential of electricity to improve energy efficiency is totally ignored by the Green Paper.

• Electricity is one of the most efficient forms of energy and the only energy without CO2 at the point of use.

• Electricity can replace less efficient energies and technologies and therefore improve efficiency, increase competitiveness and reduce pollution.

• With these unique properties, electricity should be seen as the energy to drive greater energy efficiency in the EU.

• The full potential benefits of electricity and electric technologies should be unleashed by the Green Paper and Action Plan.

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4. The Green Paper in unfairly and disproportionately focused on electricity.

• Electricity is asked to deliver most of the energy savings, but represents only 20% of the final energy demand; oil alone is 44%.

• The electricity sector faces an impressive raft of measures: liberalisation, emissions trading, RES, CHP, LCP, etc – not consistent with Lisbon Strategy; potential negative consequences on the economy as a whole.

• Positive that all sectors are included. However, the “Industry” and “Transport” sectors are superficially addressed and the energy savings targets lack ambition.

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5. Encourage an energy savings culture is key.

• It is important to generate a market pull – increasing demand for energy efficiency products and services – by raising awareness and disseminate information to customers/citizens on energy efficiency measures and technologies.

• To boost the demand, public authorities’ procurement procedures should prioritise the purchase of energy efficiency products and services.

• Important to identify the barriers (e.g. demand, financing, information, training) and seek solutions that are market-oriented.

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Programme of Co-operation on Electricity & Sustainable Development

with the European Commission

Efficient lighting campaign to the residential sector [Reached 25 million EU citizens in 2001-2002]

European design competition “Lights of the Future”

Report on active energy services

Public-Private Partnerships can workPublic-Private Partnerships can work

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Energy Wisdom ProgrammeEnergy Wisdom Programme

14 companies [appx. 50% of EU’s installed generation capacity]

250 projects [best practices]

200 MtCO2 saved

14 companies [appx. 50% of EU’s installed generation capacity]

250 projects [best practices]

200 MtCO2 saved

Between 1990 and 2002

Energy efficiency improvements & Greenhouse gas emissions reductions

A voluntary Electricity Industry initiative on Sustainable Development

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At the forefront of the electricity industry.

www.eurelectric.org + 32 2 515 10 41

[email protected]