Energy Union10/03/2015

Energy Union

• Reduce dependence on single suppliers:

– Southern Gas Corridor from Azerbeidjan to Italy

– Strategy for LNG and its storage

– Liquid hubs in Central, Eastern Europe and Spain

• More power and independence for EU regulator ACER

• Align security supply legislation and coordinate capacity

mechanism development

• Energy flows:

– 10% interconnectivity by 2020 (probably 15% by 2030)

– 27% renewable energy by 2030

• Energy efficiency and decarbonisation in buildings and

transport sector

• Market Stability Reserve mechanism to fix EU ETS

Energy flows – How about Belgium?

• Current situation:

– Physical capacity: 6.247 MW

– Commercial capacity: + 3.500 MW

• Current projects:

• Total production capacity 2013: 20 860,2 MW

• Statistics 2013: https://www.febeg.be/statistiek-elektriciteit

Project Border Capacity

(MW)

Commisioning

Stevin North Sea-BE 6.000 Early 2018

Brabo BE-NL 1.000 Late 2018

Alegro BE-DE 950-1.200 Early 2019

Nemo BE-UK 1.000 Early 2019

Creos BE-LU 1.000 2020

EU Emission Trading System

• Installed in 2005 to incentivize green technology investment

• Non-dynamic supply side caused oversupply of emission rights (crisis and industrial lobby) and too low carbon prices (04/03/2015: 7,08 €/t)

• EU aims to fix system through:

– Backloading emission rights to end of trading period (executed in 2013)

– Market Stability Reserve (MSR): central bank system for emissionrights to lift and control carbon price (target price: 30 €/t)• Original proposal: start in 2021 (new trading period)

• Proposal being discussed: start in 2019 (withhold backloaded emission rights)

• Timing new proposal:– Industry committee failed to form positive opinion (non binding)

– Environment committee approved proposal on February 24th 2015

– Council of the EU (member states) unable to find common negotiation position

• Main conclusions:

– No decision on MSR possible as long as member states are unable tofind majority in favor

– Continue with current strategy until decision is taken

Other interesting sources

• Five views on the Energy Union:

http://www.naturalgaseurope.com/five-views-energy-

union-assessment-hurdles-22407

Joke Bruneel

Marketing & Communications Officer

m: +32 56 25 24 25