EUROPEAN PHOTOVOLTAIC INDUSTRY ASSOCIATION EU Energy Policy – where do we go from here? Frauke Thies, Policy Director EEB Annual Conference Brussels, 18 October 2013 Strange things are happening... EC 2050 Energy Roadmap Dec 2011: No-regrets options: Energy Efficiency, Renewables, Smarter Infrastructure EC on 2050 Roadmap in Sep 2013: No-regrets options: Energy Efficiency, Smarter Infrastructure, Gas Page 2 Renewables opposition raising its voice Page 3 Renewables uptake means changing business Jon Wellinghoff, chairman of the US Federal Energy Regulatory Commission (FERC): “Solar is growing so fast it is going to overtake everything,” “Our markets were made up for a very centralised system, very large plants and plants that were distant from loads. We’re moving to a much more distributed system that also has consumers participating as resources with their load.” Stephen Chu, former US Energy Secretary: “Now, if you’re a utility company, you’re going to be very worried about that. (…) So I’ve been telling them there’s another business model.” Source: REneweconomy Page 4 No doubt that renewables will break through in the end Declining costs Modular character People want it! BUT: PV Parity project : 2012 Without the right regulatory framework and without early technical adaptations of the power system, it will be hard ... and too late for the climate Page 5 Making it happen smoothly and fast Active adaption instead of scaremongering and delay Re-thinking Europe’s energy system 1. A flexible power mix and transmission 2. An active distribution system, energy services & aggregation 3. Service provision by renewables 4. Different market products and rules Page 6 What does it mean for policy? Set a strong and binding renewable energy target An „ETS-only“ approach cannot be enough to drive the structural change! Re-think market rules and regulations to accomodate renewables Refrain from narrowly-focussed capacity mechanisms for fossil fuels Drive flexibilisation of the power system and mix • Network codes, power plant requirements New focus on distribution level: • Energy services and aggregation • New metering and communication strategies Communitybuilders.net Page 7 THANK YOUR FOR YOUR ATTENTION This document was presented by Frauke Thies f.thies@epia.org European Photovoltaic Industry Association Renewable Energy House Rue d’Arlon 63-67, 1040 Brussels - Belgium T +32 (0)2 465 38 84 - F +32 (0)2 400 10 10 info@epia.org - www.epia.org www.epia.org