EnergyEnergy

Tom HowesDG EnergyEuropean Commission

Europe's renewable energy strategy

EnergyEnergy

The European energy strategy overall:

Renewables Directive: mandatory targets, national plans grid rules…

ETS, reflecting a carbon price to achieve the cap.

National (non ETS) emissions reductions strategies and measures

3rd package: unbundling, harmonised grid operation rules, network codes etc.

TEN-E priorities and project support

Infrastructure package: CEF proposal, planning reforms

Smart grids

Energy Efficiency Measures (including ESCOs)

SET plan/R&D/CCS

Institutionally: ENTSOs, ACER, CEER…

Longer term framework: 2050, 2030…

EnergyEnergy

Any pathway to "decarbonisation" requires a renewable energy share of between 55% and 75% by 2050 This compares to 12% today and 30% under "business as usual".

2050 Energy Roadmap: Renewable Energy as "no regrets option"

%

80

70

60

50

40

30

20

10

0

4

•Share of renewable energy (% of total energy use)

2020 national target2009 performance

%

But what needs to happen to get to 2020?

5

Growth by sector in the UK

Development of renewable energy in electricity in the United Kingdom

0

20000

40000

60000

80000

100000

120000

140000

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

year

GW

h

Geothermal Electricity

Solar electricity

Tide, wave, ocean

Hydro

Biomass electricity

Wind

Development of renewable energy in transport in the United Kingdom

0

500

1000

1500

2000

2500

3000

3500

4000

4500

5000

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

year

ktoe

Hydrogen

Other Biofuels

Electricity in transport

Bioethanol

Biodiesel

Development of renewable energy in heating & cooling in the United Kingdom

0

1000

2000

3000

4000

5000

6000

7000

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

year

ktoe

Solar Heat

Geothermal Heat

Heat pumps

Biomass Heat

6

• Easy market entry is good for renewable energy producers

• Regional markets are slowly coming together

Creating the single market:

• The bigger the balancing areas, the easier it is to integrate wind and solar power

7

Cooperation and trade between the EU and with third countries

Increases the European and regional market for renewables and so improves the cost effectiveness of renewables.

Guidance on cooperation

Creating the appropriate legal framework for the Southern Mediterranean

8

The patchwork of support schemes is not optimal:

•Greater consistency, transparency and predictability would improve the investment climate

Guidance on support scheme design and reform will help improve cost effectiveness

9

Technology "push" necessary as well as the market's "pull":

Strategic Energy Technologies (SET) plan to be updated (reflecting on new priorities including ocean technologies, renewable energy integration (incl. storage), advanced materials and manufacturing for renewables

2014-2020 financial framework "green energy" EU funding:

- Cohesion funding of €17 billion to energy efficiency and renewable energy

- Horizon 2020 (R&D): €6.5 billion for "Secure, clean and efficient energy"

Driving technology innovation

10

Renewable energy policy post-2020: business as usual is not an option

Policy options analysed in the impact assessment:

1.Decarbonisation without renewable energy targets

2.Binding national renewable energy targets and coordinated support

3.EU renewable energy target and harmonised measures

A supportive framework post 2020 is needed: structure to be determined

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Next steps. Guidance on support schemes & reforms

. Guidance on the use of the cooperation mechanisms

. Measures to facilitate trade in renewable energy in the Mediterranean

. Autumn Communication on Internal Energy Market to discuss electricity market arrangements

. 2013 Communication on energy technology

. Reports/proposals to further develop the EU's sustainability framework

. Start preparing proposals for a post-2020 renewable policy energy regime

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http://ec.europa.eu/energy/renewables/index_en.htm

Thank you for your attention

Tom HowesDG ENERGY

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Empowering Consumers • Opening of retail markets to ensure consumer choice

• Micro-generation & smart meters creating "consumer-producers"

• reduced dependence on grid electricity/heat/suppliers can enhance acceptance of renewables