Europe's renewable energy strategy Tom Howes DG Energy European Commission Energy 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 3 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… rd Energy 2050 Energy Roadmap: Renewable Energy as "no regrets option" % 80 70 60 50 40 30 20 10 0 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". Energy •Share of renewable energy (% of total energy use) 2009 performance 2020 national target % But what needs to happen to get to 2020? 4 Growth by sector in the UK 7000 ktoe 6000 5000 Solar Heat 4000 Geothermal Heat 3000 Heat pumps 2000 Biomass Heat 1000 Development of renewable energy in transport in the United Kingdom 0 2010 2011 2012 2013 2014 5000 2015 2016 2017 2018 2019 2020 year 4500 4000 3500 3000 Hydrogen 2500 Electricity in transport 2000 1500 Bioethanol Other Biofuels Biodiesel 1000 500 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Development of renewable energy in electricity in the United Kingdom 2020 year 140000 120000 Geothermal Electricity 100000 GWh ktoe Development of renewable energy in heating & cooling in the United Kingdom Solar electricity 80000 Tide, wave, ocean 60000 Hydro Biomass electricity 40000 Wind 20000 0 2010 5 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Creating the single market: • Easy market entry is good for renewable energy producers • Regional markets are slowly coming together • The bigger the balancing areas, the easier it is to integrate wind and solar power 6 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 7 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 8 Driving technology innovation 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" 9 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 10 . . . . . . . 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 11 http://ec.europa.eu/energy/renewables/index_en.htm Thank you for your attention Tom Howes DG ENERGY 12 Empowering Consumers • Opening of retail markets to ensure consumer choice • Micro-generation & smart meters creating "consumerproducers" • reduced dependence on grid electricity/heat/suppliers can enhance acceptance of renewables 13