1

Energy

EU TOWARDS A GREEN ECONOMY

Hans van Steen

European Commission,

Directorate-General for Energy

2

Improved energy

efficiency

Promotion of new

technologies, growth

and jobs

Affordable and

competitive prices

Competitiveness

Adequate energy

infrastructures

Grid Stability

Diversification of energy

sources, supply

countries and routes

Security of

energy supply

Development of

alternative energy

sources

Reduction of energy

consumption

Reduction of

emissions

Sustainability

Three overarching objectives of EU energy policy

3

80.0

90.0

100.0

110.0

120.0

130.0

140.0

150.0

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

GHG emissions

Population

Real GDP

Primary energy

GHG emissions are decreasing

Sourc

e:

Euro

pean C

om

mis

sio

n

4

Initial progress towards meeting the 2020 renewables target has been

good, but there is no room for complacency

Renewable sources accounted for 12.7% of the EU's energy consumption in 2010

Sourc

e:

Euro

sta

t

0%

10%

20%

30%

40%

50%

60% RES in 2010

2020 RES Target

2020 target for the EU: 20%

5

EU energy consumption is going down, but 2020 target likely to

be missed with current policies

projections

Sourc

e:

Euro

pean C

om

mis

sio

n

6

Key challenge: level of EU electricity prices compared to US …

OECD Europe, 137.7

USA, 95.9

Japan, 116.2

80

90

100

110

120

130

140

150

2005 2006 2007 2008 2009 2010 2011 Q3 2012

Sourc

e:

IEA, Energ

y P

rices a

nd T

axes, 4th

quart

er

2012

Evolution of end-user electricity prices for industry, taxes excluded (2005 = Index 100)

7

100

80

60

40

20

Key challenge: ensuring security of supply

GAS OIL

2005 2008 2020 2030 2005 2008 2020 2030 in %

82,4%

84,3%

92,7%

94,1%

57,7%

62,3%

75,9%

82,8%

100

80

60

40

20

8

Increasing concern about energy import dependency and rising energy prices

Stability and costs of renewables support schemes, impacts on the internal energy market, on grid stability and on capital allocation

Need for massive investments in energy transmission and distribution infrastructure

Current large surplus of ETS allowances, resulting in a low carbon price and low investment incentives

Challenges in meeting 2020 targets - to be considered in the 2030 framework

9

2050

Roadmaps

2030 Green

Paper

Proposals

for the 2030

framework

for climate

and energy

policies

2011 March 2013 By end 2013

The 2030 framework will build on the 2050 Roadmaps - Concrete proposals by the end of 2013

On-going discussions with Member States, EU institutions and

stakeholders

10

Increased certainty for Member States and reduced regulatory risks for investors

Growth and jobs through demand for efficient and low-

carbon technologies

Definition of EU ambitions in view of a new international climate change agreement

Early agreement on the 2030 framework is essential

11

"No regrets" options from the Energy Roadmap 2050

More Energy Efficiency

Higher

shares of Renewables

Better and smarter Infrastructure

12

• Which targets for 2030 would be most effective in driving the objectives of climate and energy policy?

• At what level should they apply (EU, MS, sectors?), and should they be legally binding?

Targets

• Which are the most appropriate policy instruments to meet potential new targets for the period up to 2030?

• How can Research and Innovation best support the 2030 framework?

Instruments

• How can EU policies take account of international developments? E.g. Climate negotiations

• How can internationally competitive and affordable energy prices be ensured?

Competitiveness & Security of Supply

• How can an equitable distribution of efforts be ensured among Member States?

• How to best consider the different investment capacities of industry sectors and consumer groups?

Effort Sharing

Main issues to be considered for the 2030 framework

13

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

01/2007

Commission

proposal for

2020 climate

and energy

package

12/ 2008

Heads of State

and

Government

reached

agreement on

the package

10/2012

Adoption of the Energy

Efficiency Directive

11/2010

Commission

Communication

"Energy 2020 Strategy"

12/2011

Commission

Communication

"Energy Roadmap 2050"

04/2009

Adoption of the

Renewables Directive

03/2013

2030 Green

Paper

2015

Global Climate Change

Agreement

More concrete

proposals for the

2030 framework

Window of

opportunity

Building on the past towards the future….!

07/2009

Adoption of the

3rd package on

the Liberalization

of electricity and

gas market

11/2012

Commission

Communication "Internal

Energy Market"

03/ 2013

Adoption of the

Energy

Infrastructure

Regulation

= EU legislation = Commission Communications = Council Counclusions

14

Impact Assessment

Jan.

Commission proposals for the 2030 framework

Feb. Mar. Apr. Jun. Jul. Aug Sept. Oct. Nov. Dec. May

22 May

European

Council

Adoption of the Green Paper + consultation procedure

Council meetings

Update of reference scenario

Concrete steps towards the 2030 framework in 2013

2012

Before

end 2013

19- 20 Dec.

Energy

Council

19-20

Sept

Informal

Council

15

Thank you for your attention!

More information available under:

http://ec.europa.eu/energy/green_paper_2030_en.htm