ec.europa.eu/ellada/pdf/2007_diktya_tanj a_rudolf.ppt

ENERGY FOR ACHANGING WORLD

Towards a new industrial revolution

TANJA RUDOLF, DG ENERGY & TRANSPORT

EUROPEANCOMMISSION

| 2Energy for a Changing World

Energy and climate change: two sides of the same coin

How can we secure competitive and clean energy supply against a backdrop of

climate change, growing global energy demand and future supply uncertainties?

Rudolta


Background

.A common European response is needed to ensure a sustainable, secure and competitve energy future

.January 2007: European Commission presents proposal for integrated European energy policy endorsed by European Council on 9 March 2007


The challenge:


To establish an integrated Energy/climate change policy for Europe to combat

climate change and boost the EU’s energy security and competitiveness

.Sustainability (energy, environment)

.Security of supply

.Competitiveness



THE SUSTAINABILITY CHALLENGE

Sustainability

Energy 59%Transport 21%

Agriculture 9%

Industrial processes 8%

Waste 3%

Energy consumption accounts for 80% of all greenhouse gas (GHG) emissions in the EU

Current energy and transport policies would see EU CO2 emissions increase by around 5% by 2030

The present energy policies within the EU are not sustainable

EU-15 Shares of sectorsin total GHG emissions (2004)

Source: European Environemental Agency Report 2006

Sustainability

Global CO2 Emissions from Energy Consumption

1900

Million tonnes CO2

1945 1970 1975 1985 1990 2000 2005 2010 2015 2020 2030 20501980 1995

45,000

40,000

35,000

30,000

25,000

20,000

15,000

10,000

5,000

0IEA: CO2 emissions from fossil fuel combustion, 2006: from 1975 onwardsCarbon dioxide information analysis center, Oak Ridge National Laboratory,USA: until 1970, growth rates used for linking with IEA dataIEA: World Energy Outlook 2006European Commission, DG RTD, World Energy Technology Outlook - 2050 (growth rates for extending series to 2050 and for missing years in IEA projections)


SECURITY OF SUPPLY

Security of supply

World energy demand (oil & gas)

Mtoe

IEA statistical database 1975 - 2000; World Energy Outlook 2006IEA World Energy Outlook 2006BP Statistical Review of World Energy (without uncommercial energies): growth rates used for extending time series backwards for 1965 and 1970 as well as for the 2005 numberWETO-H2 study (DG RTD): growth rates 2050/2030 used for extending IEA time series to 2050

1950 20501970 1990 1995 2015 20302000 20051960 1980

7,000

6,000

5,000

4,000

3,000

2,000

1,000

0

Gas

Oil

Security of supply

EU-27 Origin of oil and gas (2004)

GasOil

Saudi Arabia9%

Libya8%

Nigeria3%

Algeria3%

Norway13%

EU own production total18%

Others10%Iraq

2%

Iran5%

Russia26%

Kazakhstan3%

Russian Federation29%

EU own production total37%

Qatar1%

Algeria13%

Nigeria1%

Others2%

Norway17%

Billion barrels40.2

AsiaPacific

59.5

NorthAmerica

103.5

South &Central America

114.3

Africa

140.5

Russia & othereurasian countries

742.7

MiddleEast

8.7

EuropeanUnion

Security of supply

Proven oil reserves (end of 2005)

Trillioncubic metres

7.02

South &Central America

7.46

NorthAmerica

14.39

Africa

14.84

AsiaPacific

57.46

Russia & othereurasian countries

72.13

MiddleEast

6.55

EuropeanUnion

Security of supply

Proven gas reserves (end of 2005)

Source: EUROSTAT

Estimated EU-27 energy investmentneeds up to 2030: €1.79 trillion

RES-H,T5%

Generation65%

Transmission8%

Distribution27%

Electricity77%

Oil5%

Gas12%

Coal1%

Security of supply

Investments


THE COMPETITIVENESS CHALLENGE

Competitiveness


The EU is increasingly exposed to price volatility on international

energy markets

• Example: oil price increase to $100/barrel in 2030 every EU citizen pays additional €350 per year

• Very little of this wealth transfer would result

in additional jobs in the EU

An Action Plan for a new industrial revolution

Core energy and climate change objective


A 20% reduction

in EU greenhouse gas emissions by 2020

compared to 1990 levels

Energy policy priorities


• Increase energy efficiency: saving 20% by 2020 sustainability, environment

• Increase renewable energy use: 20% by 2002, 10% biofuel component security of supply, environment, competitiveness

• Open and competitive internal energy market competitiveness, environment (i.e. better energy efficiency)

• Coherent external energy policy security of supply

• Low CO2 fossil fuel future


Energy efficiency and renewable energies

.Improved energy efficiency has the potential to make the most decisive contribution to achieving sustainability, competitiveness and security of supply

.Energy Efficiency Action Plan: Realising the potential, saving 20% by 2020

.By 2020 the EU would use approximately 13% less energy than today, saving €100 billion

.BUT, this will require significant effort, both in terms of behavioral change and additional investment


Energy efficiency and renewable energies

Key measures

.Using fuel efficient vehicles for transport, making better use of public transport and ensuring that the true costs of transport are faced by consumers

.Tougher standards and better labelling on appliances

.Improving the energy performance of existing buildings and make very low-energy construction the norm for new buildings

.Coherent use of taxation

.Improving the efficiency of heat and electricity generation, transmission and distribution

.A new international agreement


Energy efficiency Key implementation instruments and renewable energies

.Intelligent Energy – Europe Executive Agency

.European commission Work Programme

.Energy Directives (Energy Performance of Buildings; Cogeneration; Eco-Design; Energy Services; Labelling)

.Energy Star Agreement

.Energy End-Use Efficiency

.Industrial agreements/commitments

.MamagEnergy and Sustainable Energy Europe Campaign

.Structural Funds and the EIB/EBRD

.Investments and financial incentives


Renewable energy Proposals of the renewable energy roadmap

.Increase the share of renewables in the EU energy mix from 6.5% today to 20% by 2020

.Set a binding overall renewables target for each Member State

.National Action Plans that set the share of electricity, heating & cooling and biofuels in the energy mix

.Achieve in each Member State a minimum 10% of biofuels in transport fuels


Internal market for gas and electricity

Unbundling, regulation and transparency

.Unbundling: ownership unbundling of a fully independent system operator

.Effective national regulators: harmonisation of powers and independence; tasking with development of the markets

.Cross-border regulation: a European network of independent regulators, strengthening the role of the “European Regulators’ Group for Electricity and Gas”

.Transparency: new legislation and minimum requirements for market players


International energy policy

Priority measures

.A comprehensive Africa-Europe energy partnership

.An international agreement on energy efficiency

.EU-Russia Energy Dialogue

.EU-Caspian dialogues

.Cooperation with OPEC, Gulf Cooperation Council, Norway, etc.


Energy technologies (including nuclear power)

Priorities

.Energy efficiency

.Biofuels

.Large scale offshore wind energy

.Photovoltaic

.Fuel cell and hydrogen technologies

.Sustainable coal and gas technologies, particularly carbon capture and storage

.Fourth generation fission nuclear reactors and future fusion technology


Technology for competitiveness

.The European Union is already the global leader in renewable technologies

» Turnover of € 20 billion and employement of 300 000 people

» In wind energy, EU companies have a 60% share of the global market

» Opportunity for EU to drive the global research agenda


Energy technologies (including nuclear power)

Nuclear energy

. Currently around one third of the electricity and 15% of the energy consumed in the EU comes from nuclear

. Nuclear power is less vulnerable to fuel price changes than coal- or gas-fired generation

. Uranium comes from sources which are suffcient for many decades and widely distributed around the globe

. Nuclear energy is one of the cheapest sources of low-carbon energy that is presently produced in the EU

. Nuclear energy is one way to achieve significant reductions in emissions

. Each Member State must decide for themselves whether to rely on nuclear power

. If the proportion of nuclear energy in the EU’s energy mix declines, then other low-carbon energy sources must fill the gap


A low CO2 fossil fuel future

Priorities

.Stimulate the construction and operation by 2015 of up to 12 large-scale fossil fuel power plants with carbon capture and storage technologies

.Provide a clear perspective for when coal and gas fired plants will need to install CO2 capture and storage technologies

.By 2020 all new coal-fired plants should to be fitted with CO2 capture and storage and existing plants should then progressively follow the same approach


Recent and future activities

• Strategic Energy Technology Plan, November

• United Nations Framework Convention on Climate Change; Bali, December

• Package of post-Kyoto, emission trading, renewable targets, January 2008

THANK YOU!

For further info see:

http://ec.europa.eu/energy/energy_policy/index_en.htm

EUROPEANCOMMISSION

ec.europa.eu/ellada/pdf/2007_diktya_tanj a_rudolf.ppt

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