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2nd UNI-SET Energy Clustering Event Towards an integrated EU energy system: Policy Context Andreea Strachinescu DG Energy Head of Unit C2 New Energy Technologies, Innovation and Clean Coal Torino, 27 th of September 2016 1 Main Policy

  1. 2nd UNI-SET Energy Clustering Event Towards an integrated EU energy system: Policy Context Andreea Strachinescu DG Energy Head of Unit C2 New Energy Technologies, Innovation and Clean Coal Torino, 27 th of September 2016 1

  2. Main Policy Elements 2030 Climate & Energy Package Energy Union 5 pillars Research, Innovation & Competitiveness pillar Integrated SET-Plan 2

  3. Agreed headline targets 2030 Framework for Climate and Energy -20 % 20% 20 % Energy 10 % 2020 Greenhouse Renewable Efficiency Interconnection Gas Emissions Energy  - 40 %  27% *  27 % 15 % 2030 Greenhouse Gas Renewable Interconnection Energy Efficiency Emissions Energy * To be reviewed by 2020, having in mind an EU level of 30% New governance system + indicators 3

  4. The European Union Energy System Key figures Production and imports (2014) EU 28 (505 million unhabitants in 2013, ~30% of worldwide GDP) - Still a strong reliance on hydrocarbon - Continuously increasing share of RES 4

  5. The European Union Energy System (ii) Diverse and fragmented + 2015: 28 Member States + EU legal framework but national regulations + Different energy production sources + Different histories, INCO relationship, sources of imports and dependencies + Different political priorities (green, shale gas, etc.) + Liberalisation makes good but unequal progress + Missing corridors between countries 5

  6. Major energy challenges in Europe Import dependency 6

  7. Major energy challenges in Europe (ii) Import dependency 7

  8. Major energy challenges in Europe (iii) Decarbonisation 8

  9. Major energy challenges in Europe (iv) Final use of energy by type of energy 9

  10. A "no regrets" scenario for Europe 10

  11. Energy union – 2016 A year of Delivery By the end of 2016 we aim to have in place all legislation necessary to complete the Energy Union to be ready for being implemented of the post-2020 period 11

  12. Transforming Europe's energy system Earlier in 2016… • The Security of Supply package and also 2 EU commitments under the Paris Agreement on climate change: • the Effort Sharing Regulation setting the greenhouse gas emission reduction targets for Member States for 2030 and a proposal on integrating the land use sector into the EU's 2030 climate and energy framework. • Strategy on low-emission mobility setting the course for the development of EU-wide measures on low and zero-emission vehicles and alternative low-emissions fuel 12

  13. Next steps toward completing the Energy Union (1) In October … Energy Efficiency package including: • the revision and update of the Energy Efficiency Directive (EED) and • the Energy Performance of Buildings Directive (EPBD) with the aim of updating the existing energy efficiency policy and legal framework to reflect the new energy efficiency target for 2030. 13

  14. Next steps toward completing the Energy Union (2) Later this year EC will present initiatives: • to ensure a new Market Design for a truly integrated EU electricity market; • a revised Renewable Energy Directive and bioenergy sustainability policy for 2030, focusing on a cost- effective, sustainable and actual delivery of a RES share of at least 27% in the EU in 2030; • a Communication on the most vital energy infrastructures, as well as a revision of the Regulation on security of electricity supply. 14

  15. National RES deployment (2014 and 2020 projections) 15

  16. Next steps toward completing the Energy Union (3) Additional proposals before the end of 2016: • Legislative proposal on the Governance of the Energy Union (preparing the ground for creating Integrated National Energy and Climate Plans for the period of 2021 to 2030). • An Energy Union research, innovation and competitiveness strategy for a low carbon economy. • Second State of the Energy Union 16

  17. The Energy Union 5 th pillar (R, I & C) Research, Innovation and Competitiveness - How to maintain global leadership? Investment in clean energy • Energy Union R&I focus areas: Source: Bloomberg − Number 1 in RES − Consumer – smart grids, smart home appliances, smart cities − Efficient energy systems − More sustainable transport systems And two additional priorities: − A forward-looking approach to CCS and CCU for the power and industrial sectors − Nuclear energy – the use of the highest standards of safety, security, waste management and non-proliferation; 17

  18. Assessing European innovation: Trends in patents 2012 18

  19. Assessing European innovation: Investments 2012 National Corporate R&I Investment breakdown 19 Total Corporate

  20. SET Plan fit for the new challenges (Com. 2015) New impulse to the partnership Principles: Targeted focus, integrated approach, new governance Changes: SET Plan in the Energy Union Widening to new actors More joint actions Transparency, indicators and reporting Monitoring and knowledge sharing 20

  21. Integrated Roadmap, Energy Union and SET Plan 21

  22. Towards an Integrated SET-Plan: 10 Key Actions Number one in RES 1) Technology leadership by developing highly performant renewables technologies and their integration in the system$ 2) Cost efficient key technologies Targets have been set for 5 key RES technologies: Offshore Wind, CSP, Solar, Ocean, Geothermal 22

  23. Towards an Integrated SET Plan Consumer at the centre of the future energy system 3) Energy consumers, Smart cities & communities 4) Resilience, security and smartness of the energy system The consultation on those targets will be concluded later this year 23

  24. The Integrated SET Plan – main actions (III) Efficient energy systems New materials and technologies for energy efficiency solutions for buildings Continue efforts to make EU industry less energy intensive and more competitive Targets have been endorsed on both actions. 24

  25. The Integrated SET Plan – main actions (IV) Sustainable transport Become competitive in the global battery sector Targets have been endorsed Renewable fuels needed for sustainable transport solutions Targets will be endorsed later this year 25

  26. The Integrated SET Plan – additional actions (V) A forward-looking approach to carbon capture and storage (CCS) and carbon capture and use (CCU) Increase safety in the use of nuclear energy Targets soon to be endorsed for both actions 26

  27. Setting targers and implementing the SET PLan • The SET Plan has built strong collaboration and commitment among EC, the MS and research and industrial actors through a highly participatory process. • We are commonly setting R&I priorities with the aim to maintain – or regain in some cases – the EU's global leadership in low- carbon technologies and solutions, and support climate change policies. https://ec.europa.eu/energy/en/news/integrated-set-plan-fit-new-challenges 27

  28. Setting targers and implementing the SET PLan • The research stakeholders well represented in the consultations by European Energy Research Alliance (EERA) and the university association (EUA-EPUA) • Input has been provided for many of Declarations of Intent of the SET Plan actions by EUA-EPUA. • We are looking forward to maintain this strong collaboration in the implementation of the SET Plan actions https://ec.europa.eu/energy/en/news/integrated-set-plan-fit-new-challenges 28

  29. Next steps • Complete the consultation on setting targets for all 10 SET Plan actions Form working Groups for the implementation of the targets, define the participants • An Energy Union Research, innovation and competitiveness strategy for a low carbon economy 29

  30. SET-Plan 2016 - CEE Conference  "Energy Union: Towards a transformed European energy system with the new Integrated Research, Innovation and Competitiveness Strategy"  30/11- 02/12/2016, Bratislava (Slovakia’s EU Council Presidency)  Unique platform to discuss synergic action of EU energy policy and research and innovation policy in transforming the energy system Energy 30 Energy

  31. Thank you for your attention ! Magdalena-Andreea.STRACHINESCU-OLTEANU@ec.europa.eu Energy

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