MiA+BEAST_Clean energy for all_eero ailio

CLEAN ENERGY FOR ALL EUROPEANS

CLEAN ENERGY FOR ALL

EUROPEANS

Structure of the Package


Unique opportunity to modernise our economy and to

WHY DO WE NEED A NEW LEGAL FRAMEWORK?THE ENERGY SYSTEM OF TOMORROW WILL HAVE TO LOOK DIFFERENT

203050 % of electricity to come from renewables

2050Electricity completely carbon free

We have the most ambitious climate commitments in the world, thanks to the EU

With leadership comes responsibility

create the growth and jobs we needboost competitiveness

2


WHAT ARE OUR GOALS? (1)

CREATING JOBS & GROWTH, BRINGING DOWN GREENHOUSE GAS EMISSIONS, SECURING ENERGY SUPPLY

Demonstrating global leadership

in renewables

Delivering a fair deal for consumers

Putting energy efficiency first

3

Investment needs:extra 177bn EUR euros per year from 2021 (to meet

2030 climate & energy targets)


2020

2030

HOW ARE TARGETS UPGRADED?

4

-20% GHG

EMISSIONS20%

RENEWABLEENERGY

20%ENERGY

EFFICIENCY

10% INTER

CONNECTION

-40%GHG

EMISSIONS27%

RENEWABLEENERGY

30%ENERGY

EFFICIENCY

15%INTER

CONNECTION


New Electricity Market Design(Electricity Directive & Regulation)

HOW DO WE GET THERE? (1)

THE RIGHT REGULATORY FRAMEWORK FOR POST – 2020

Energy Union Governance

" In essence the new package is about tapping our green growth potential across the board"Commissioner Miguel Arias Cañete (2016)

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6

HOW DO WE GET THERE? (2)ENERGY CONSUMERS


FAIR DEAL FOR ALL CONSUMERS (ED)

• Access to fit-for-purpose smart meters

• Certified price comparison tool

• Clearer energy bills

• Entitle individuals and communities to generate, consume, store or sell electricity to the market

• Easier switching conditions• Reward demand-response

• Monitoring of energy poverty (governance)

• Information on alternatives to disconnection

• Secured electricity supplies• Sound data management

BETTER INFORMED EMPOWERED PROTECTED

- Phase out regulated prices (only justified exemptions), allow real price signals- Fair market access for new retailers and service providers (e.g. aggregators)- Flexible network management- Distribution operators become neutral but active market facilitator

COMPETITIVE RETAIL MARKETS


• Attracting private investment for energy efficiency renovations

Extending existing energy saving obligations beyond

2020 (1.5%/year)Strengthening the social

dimension

Improving coherence with the

EPBD

ENERGY SAVINGS (Article 7 EED)

• Lower energy bills for consumers and reduced energy demand

• Requiring MS to consider energy poverty in designing energy efficiency obligations schemes or alternative measures

• Increasing buildings renovation rate

• Simplifying and streamlining


• Creating national energy efficiency platforms in Member States

• Providing reinforced technical support by the EU

Assistance and aggregation De-risking

• Building on EFSI II blending with ESIF funds

• Increasing transparency

• Understanding the risks and benefits for financiers and investors

SMART FINANCE FOR SMART BUILDINGS (EPBD)

LINKING REGULATORY MEASURES WITH FINANCIAL SUPPORT

More effective use of public funds


11 #EnergyUnion

STATE AID RULES

1. Guidelines

2. Case by case notifications to and

assessment by DG COMP

Support to be market-responsive

Visibility for investors (3-

year cycle for tenders)

Gradual and partial open-up to cross-

border participation

Stability of financial support

PROMOTING STABLE FRAMEWORK FOR RENEWABLE ELECTRICITY


12 #EnergyUnion

REMOVING ADMINISTRATIVE BARRIERS

One-stop-shopMaximum timeline for

permitting procedures 3 years

Available information for all (Manual of Procedures)

Simple notification for small electricity installations and

repowering

Current Directive + OECD Best practices


13 #EnergyUnion

EMPOWERING CITIZENS AND COMMUNITIES

Self-consumers including in multifamily houses to be allowed to generate, store, sell and consume their own electricity

Legal recognition for energy communities, a level playing field for active citizens engaging collectively in local generation and supply.

Improved Guarantees of Origin for better consumer information

http://rescoop.eu/


-40% CO2

by 2030Adapt

2006 2008 2015

Priority action in the EU Action Plan for Energy Efficiency

Launch of the Covenant of Mayors

New commitments

Launch of Mayors Adapt

2014

Adapt

COVENANT OF MAYORS FOR CLIMATE AND ENERGY


7,200+ signatory cities,

Incl. 540+ signatories to the new Covenant of Mayors for Climate & Energy

ca. 360 regions, provinces, associations, local & regional energy agencies

35+ Associated Partners

5,600+ Action Plans developed

... average CO2-emission

reduction of about 27% by 2020

COVENANT COMMUNITY


SUPPORTING EU CLIMATE AND ENERGY VISION…

Action in cities where 75% of energy is consumed CO2 emitted (IPCC, 2014) and 70% of the population lives

Implementing the EU climate and energy policy at a local level with the objective of -80% to -95% of carbon emissions by 2050

In line with the EU's contribution to the international climate negotiations and the Paris agreement of December 2015 Policy mainstreaming


COVENANT OF MAYORS ON TRACK

Source: CoM monitoring reports 2015


South Mediterranean

2012

Eastern-Europe &

South Caucasus

2011

North America2016/17

Latin America & the Caribbean

2016/17

Sub-Saharan Africa 2016

India

Japan2016

China & South-East

Asia2016/17

Existing offices

Future offices

European Union & EFTA

2008

COVENANT GOING GLOBAL 1(2)


COVENANT OF MAYORS GOING GLOBAL 2(2)


[email protected], [email protected]

#EnergyUnion@Energy4Europe

Our core values – excellence, transparency, integrity

mailto:[email protected]

mailto:[email protected]


MULTI-STAKEHOLDER INVOLVEMENT


As of 2015:

Achievements of signatory cities

x4 share of renewable energy sources in final energy consumption (14%)

-14% energy consumption

x3 local renewable energy production

-23% greenhouse gas emissions


The Covenant step by step


Supporting signatories

Monitoring and evaluation

Implementation

Selecting adaptation options Identifying

adaptation options

Preparing the ground

Assessing risks and vulnerabilities


Capacity-building events:

Webinars Workshops

Supporting signatories

Finance working groups City-twinning programme


EU FUNDING INSTRUMENTS


The package presents a dual opportunity to

speed up decarbonisation and to speed up growth and job

creation.

WHAT CAN WE EXPECT IN TERMS OF RESULTS?

Economic growth*:• 1% increase in GDP• 190bn EUR into the economy • 900,000 new jobs

*Upper end of estimates

2016 2030

Investment: • extra 177bn EUR euros per year

of investment from 2021 to meet 2030 climate & energy targets

• Crucial role for EFSI

Decarbonisation:• Carbon intensity of the economy

57% lower in 2030 than in 2015• 72% share of non-fossil fuels in

electricity generation in 2030

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28 #EnergyUnion


Covenant of Mayors Clubs

Academia

Associated PartnersEuropean federations of companies, NGOs, international networks

SupportersNon-profit organisations, associations, agencies

Signatories Villages, towns, cities, counties

The Covenant Community

Local

Regional

National

European / global

CoordinatorsRegions, Provinces, Ministries, national energy agencies


Signatories now pledge to:

Reduce CO2 (and possibly other GHG) emissions by at least 40% by 2030

Increase their resilience by adapting to the impacts of climate change

Translate their political commitment into local results by developing local action plans and reporting on implementation

Access to clean energy new pillar (energy poverty)

Also, mainstreaming in energy policy

REORIENTATION


ENERGY EFFICIENCY DIRECTIVE (EED)

WHERE WE ARE TODAY OTHER INSTITUTIONS' POSITIONS

WHAT WE SUGGEST

• 2020 Framework: 20% non-binding national target

… at national level

• EUCO Conclusions 2014: at least 27% target for 2030 to be reviewed by 2020 having in mind a 30% target

• EP 2015 Resolution: binding 40% target

… at EU level

• 30% binding target

… at EU level


THE 30% ENERGY EFFICIENCY TARGET (Articles 1 and 3)

Security of supply: avoided oil & gas imports

= €70 billion

Creation of 400,000 more jobs

Lower electricity price for households and energy

intensive industries

Increase in GDP of around 0.4% (€70 billion)

Decarbonisation is cheaper in the long run (2021-2050):

€9 billion/year less

Reduction in pollution control costs & health

damage costs by €4.5 – 8.3 billion

What are the positive impacts compared to a 27% target?

SAVINGS

SUSTAINABLE GROWTH

NOW(b.a.u.)

27% 30%

158€MWh

161€MWh

157€MWh


Level playing fieldImpact assessment: Sections 2.1, 5.1, 7.1, Annex 1.1-1.2; El. Reg. Articles 11 and 12

Priority dispatch Priority access Balancing responsibilty

What is it about? Who has to bid in the market to generate electricity?

Who gets curtailed in case of congestion?

Who pays if he buys/produces less electricity than he sells/ consumes?

Who currently gets priority?

RES-E, CHP, up to 15 % indigenous resources

RES-E, CHP No EU law priority. EEAG requires BR other than for small RES

Commission Proposal

Merit order-based dispatch, exemptions for small RES-E, Micro-CHP, Grandfathering

Voluntary where possible, otherwise clear priority order

All market parties responsible for imbalances caused. Exemptions possible for small RES&CHP and grandfathering


Environment

MiA+BEAST_Clean energy for all_eero ailio